Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 24

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 24
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. In addition, our valuation techniques and fair value policies and procedures may be changed at any time.

The determination of estimated NAV involves significant judgment and estimation of the value of our properties and real estate related assets and is subject to certain risks and uncertainties, including that valuations may not incorporate all material information concerning value or necessarily represent the price at which an asset would sell, since market prices of assets can only be determined by negotiation between a willing buyer and seller. In addition, some of the valuation techniques and calculations require assumptions that may be inaccurate or do not capture recent market trends, or to the extent that the Company is not able to negotiate a sales price equal to or in excess of the estimated valuation, the difference between the estimated valuation and sale price could be material. There will be no retroactive adjustment in the valuation of such assets to the extent such valuations prove to not accurately reflect the realizable value of our assets.

Under our current fair value policies and procedures, the fair value positions are typically assessed annually by independent third-party valuation specialists and if the fair value method of accounting is elected for any asset, also subject to independent audit. Under our advisory agreement, the Adviser is generally responsible for determining the quarterly valuation of our assets, including our NAV, valuation techniques and related assumptions, and may change such valuation techniques or fair value policies and procedures in its sole discretion at any time.

NAV calculations are not governed by governmental or independent securities, financial or accounting rules or standards.

Our calculation of NAV and the components thereof, including valuation techniques and fair value policies and procedures, are not prescribed by rules of the SEC or any other regulatory agency. Furthermore, there are no accounting rules or standards that prescribe which components should be used in calculating NAV, and our NAV is not audited by our independent registered public accounting firm. We calculate NAV solely for purposes of estimating the fair value of our properties and real estate related assets, and our shareholders should not view our NAV as a measure of our historical or future financial condition or performance. The components and methodology used in calculating our NAV may differ from those used by other companies now or in the future. In addition, calculations of our NAV, to the extent that they incorporate valuations of our assets and liabilities, are not necessarily prepared in accordance with generally accepted accounting principles. These valuations may differ from actual values that could be realized in the event that we were forced to sell assets. Further, our calculation of NAV and the components thereof, including valuation techniques and fair value policies and procedures may be changed at any time