Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 17

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 17
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 its portfolio of income-producing hotel properties. NHT is externally managed by NexPoint Real Estate Advisors VI, L.P. (the “ Advisor”), which has been formed for the sole purpose of managing NHT and its subsidiaries. NHT has elected to be treated as a real estate investment trust under U.S. tax laws. In general, a real estate investment trust is not subject to any entity level federal income tax provided that it satisfies various organization and operational requirements to continue to qualify as a real estate investment trust under the Code. Even if NHT continues to qualify as a real estate investment trust under the Code, it nonetheless may be subject to certain state and local income, franchise, and property taxes. Substantially all business will be conducted through NHT OP, NHT’s operating partnership, which is a Delaware limited liability company. NHT owns its properties through NHT OP and its subsidiaries. In order for NHT to qualify as a real estate investment trust for U.S. federal income tax purposes under the Code, NHT cannot operate any of its hotels and therefore, each of NHT’s properties are leased to taxable real estate investment trust subsidiaries (“ TRSs”) which have, in turn, engaged eligible independent contractors (as defined in the Code), which are affiliates of Aimbridge Hospitality Holdings, LLC (the “ Manager”), to manage the day-to-day operations of the hotels. The Advisor gives NHT access to an experienced management team and extensive network of industry relationships, as well as a management platform with deep knowledge of real estate assets and markets. The Advisor and its affiliates manage approximately $14.8 billion of gross real estate investments as of September 30, 2024. The Advisor’s team has over 100 years of combined experience in real estate acquisitions, dispositions, financing, rehab implementation and specific experience in hospitality, including NHT’s strategy. Since inception in 2012, the Advisor’s team has closed $20.1 billion of U.S. gross real estate transactions across multiple property types including: multifamily, hospitality, single family rental, storage, life sciences, ground leases, office, and retail. The objectives of NHT are to:

| (a) | provide Unitholders with an opportunity to invest in real estate assets, including, but not limited to, a portfolio of extended-stay, select-service and efficient full-service hotels located in attractive U.S. markets and competitively positioned to outperform the industry as a whole; |

| (b) | potentially acquire non-hospitality real