Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 133

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 133
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 of the Tax Act. On such disposition, a Resident Holder will realize a capital gain (or capital loss) equal to the amount by which the Resident Holder’s proceeds of disposition of the Units disposed of on the Redemption, net of any reasonable costs of disposition, exceed (or are exceeded by) the aggregate of the Resident Holder’s adjusted cost base of such Units. The taxation of capital gains and capital losses is discussed below under “Taxation of Capital Gains and Capital Losses”.

A Resident Holder who exchanges Units for New NHT Shares pursuant to the Reorganization will be considered to have disposed of such Units for proceeds of disposition equal to the aggregate of the fair market value, at the time of the disposition, of the New NHT Shares received for such Units. A Resident Holder will realize a capital gain (or capital loss) equal to the amount by which such proceeds of disposition, net of any reasonable costs of disposition, exceed (or are less than) the aggregate adjusted cost base to the Resident Holder of the Units that were exchanged for New NHT Shares. The cost of such New NHT Shares will be the fair market of the Units exchanged for such shares at the time of the exchange. The taxation of capital gains and capital losses is discussed below under “Taxation of Capital Gains and Capital Losses”.

A Resident Holder whose New NHT Shares will be converted to NXDT Common Shares pursuant to the Company Merger will be considered to have disposed of its New NHT Shares for proceeds of disposition equal to the aggregate of the fair market value, at the time of the disposition, of the NXDT Common Shares received by the Resident Holder pursuant to the Company Merger. Such Resident Holders will realize a capital gain (or capital loss) equal to the amount by which such proceeds of disposition, net of any reasonable costs of disposition, exceed (or are less than) the aggregate adjusted cost base to the Resident Holder of their New NHT Shares. The cost of such NXDT Common Shares will be the fair market value of the New NHT Shares. Further, the adjusted cost base of an NXDT Common Share acquired by a Resident Holder pursuant to the Company Merger will be determined by averaging the cost of such NXDT Common Share with the adjusted cost base of all other NXDT Common Shares owned by the Resident Holder as capital property at that time, if any. The taxation of capital gains and capital losses is discussed below under “Taxation of Capital Gains and Capital Losses”.

A Resident Holder generally will be required to include in