Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 81

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 81
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 under this prospectus as set forth in the applicable prospectus supplement.

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DESCRIPTION OF CAPITAL SHARES</div>

The following description summarizes the material provisions of the common shares and preferred shares we may offer. This description is not complete and is subject to, and is qualified in its entirety by reference to, our restated certificate of trust, the Declaration, statement of preferences (the“Statement of Preferences”and, together with the Declaration, the“Governing Instrument”) designating the Series A Preferred Shares and bylaws (together with the Governing Instrument, the“Governing Documents”) and applicable provisions of Delaware law, including the Delaware Statutory Trust Act (the“DSTA”). The specific terms of any series of preferred shares will be described in the applicable prospectus supplement. Any series of preferred shares we issue will be governed by our Declaration, and any statement of preferences related to that series. We will file the statement of preferences with the SEC and incorporate it by reference as an exhibit to our registration statement at or before the time we issue any preferred shares of that series of authorized preferred shares.

Authorized Beneficial Interests

The Company is authorized to issue an unlimited number of its shares of beneficial interest, or capital shares, in multiple classes and series thereof as determined from time to time by the Board. The Company’s authorized shares of beneficial interest consist of an unlimited number of its common shares, par value $0.001 per share, and an unlimited number of its preferred shares, par value $0.001 per share. The Board has designated a series of up to 4,800,000 preferred shares, par value $0.001 per share, liquidation preference $25.00 per share (the “Liquidation Preference”), as the Series A Preferred Shares. As of June 30, 2024, there were 40,650,119 common shares and 3,359,593 Series A Preferred Shares issued and outstanding. All the outstanding common shares and Series A Preferred Shares are fully paid and nonassessable.

Subject to the terms of the Statement of Preferences, the Board, in its discretion, may from time to time without vote of the shareholders issue shares of beneficial interest, including any preferred shares, in addition to the then issued and outstanding shares of beneficial interest and shares of beneficial interest held in the treasury. The Board may also authorize and issue such other securities of the Company as it determines to be necessary, desirable or appropriate, having such terms, rights, preferences,