Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 2272

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 2272
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 years remain open to examination by tax jurisdictions to which the Company and its subsidiaries are subject. When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions on its consolidated statement of operations and comprehensive income (loss). The Company has not recorded any uncertain tax positions for the three months ended March 31, 2024 and 2023.

A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows (in thousands):

|                                |     | For the Period Ended March 31, |   2024 |   |     |       |   |     |   |   2023 |   |     |       |   |
|:-------------------------------|:----|:-------------------------------|-------:|:--|:----|------:|:--|:----|:--|-------:|:--|:----|------:|:--|
| Expected tax at statutory rate |     | $                              | (4,410 | ) |     |  21.0 | % |     | $ | (3,930 | ) |     |  21.0 | % |
| Non-taxable REIT income        |     |                                |  4,969 |   |     | -23.7 | % |     |   |  4,852 |   |     | -25.9 | % |
| Change in valuation allowance  |     |                                |     (9 | ) |     |     — | % |     |   |   (116 | ) |     |   0.6 | % |
| Total provision                |     | $                              |    550 |   |     |  -2.6 | % |     | $ |    806 |   |     |  -4.3 | % |

3. Investments in Real Estate Subsidiaries

The Company conducts its operations through the OP, which owns several real estate properties through single asset limited liability companies that are special purpose entities (“SPEs”). The Company consolidates the SPEs that it controls as well as any variable interest entities ("VIEs") where it is the primary beneficiary. All of the properties the SPEs own are consolidated in the Company’s consolidated financial statements. The assets of each entity can only be used to settle

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obligations of that particular entity, and the creditors of each entity have no recourse to