Company: NXDT
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001437749-25-013177
Chunk: 74

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-25
Form: 424B3
Chunk 74
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 fees described below. Our Compensation Committee does not make determinations with respect to compensation paid by our Adviser or its affiliates to such officers.

As consideration for the Adviser’s services under the Advisory Agreement, we pay our Adviser an annual advisory fee of 1.00% of Managed Assets (as defined below) (the “Advisory Fee”) and an annual administrative fee of 0.20% of Managed Assets (the “Administrative Fee” and, together with the Advisory Fee, the “Fees”). In addition, Old NXDT is required to reimburse the Adviser for certain expenses incurred in connection with its provision of services under the Advisory Agreement. The Advisory Agreement provides that the Administrative Fee shall be paid in cash and the monthly installment of the Advisory Fee shall be paid one-half in cash and one-half in Old Common Shares. The Old Common Shares issued to the Adviser under the Advisory Agreement (subject to certain exceptions) may not exceed 5% of the number of Old Common Shares or 5% of the voting power of Old NXDT outstanding prior to the first such issuance (the “Share Cap”) and that in no event shall the Old Common Shares issued to the Adviser under the Advisory Agreement exceed 6,000,000 Old Common Shares; provided, however, that the Share Cap will not apply if Old NXDT’s shareholders have approved issuances in excess of the Share Cap. For the year ended December 31, 2024, we paid approximately $13.3 million in fees to our Adviser.

Under the Advisory Agreement, “Managed Assets” means an amount equal to the total assets of Old NXDT, including any form of leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing to purchase or develop real estate or other investments, borrowing through a credit facility or the issuance of debt securities), (ii) the issuance of preferred shares or other preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with Old NXDT’s investment objectives and policies and/or (iv) any other means. In the event Old NXDT holds collateralized mortgage-backed securities (“CMBS”) where Old NXDT holds the controlling tranche of the securitization and is required to consolidate under GAAP all assets and liabilities of a specific CMBS trust, the consolidated assets and liabilities of the consolidated trust will be netted to