Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 275

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 275
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 notional purchaser to shelter taxes on operating income earned. In this regard, we added the present value of net operating loss carryforwards to the fair market value of NHT. This was determined by projecting the forecasted net operating income of the hotels to determine the net operating loss carryforwards expected to be utilized in each period. The net operating loss carryforwards were then discounted at a weighted average discount rate. |

Other net assets

| 10.0 | Distinct material benefit |

| 10.01 | We considered whether any distinctive material benefit may accrue to NXDT, or another interested party as a result of the Proposed Transaction. We concluded that there would be a distinctive material benefit from the rationalization of certain corporate overhead costs including non-recurring professional fees, TSXV listing fees, director fees and insurance, stock compensation expense, corporate audit, tax and legal expenses, and consulting fees. We did not include these costs in our determination of capitalized corporate G&A as they reflect synergies that are expected to be realized from the Proposed Transaction. |

<div align='center'>E-13</div>

| 11.0 | Per unit value |

| 11.01 | Considering the foregoing, we determined the net asset value of the Trust by deducting the fair market value of the liabilities from the fair market value of the assets. We then determined the per unit value by dividing the net asset value by the 29,352,055 units outstanding to develop an indicative range of value per unit. |

| 11.02 | We then compared the total Consideration to the per unit value determined based on the NAV approach. A breakdown of the total implied equity value based on the Consideration and relevant metrics are outlined below: |

| 12.0 | Comparable company analysis and precedent transactions |

| 12.01 | As a test of our conclusions, we have reviewed the valuation metrics implied by analysis of comparable public companies and precedent transactions. We note that the selection of comparable companies and transactions is subjective. We also note none of the comparable companies or targets in the precedent transactions are identical to the Trust, some of which may have characteristics that are materially different from the Trust. |

Guideline public company analysis

| 12.02 | For each of the selected comparable companies, we considered the price / FFO, price / AFFO, price / NBV, and price to NAV. |

| 12.03 | The selected guideline companies were as follows: |

<div align='center'>E-