Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 21

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 21
---
 as holders of common shares until they convert their Series B Preferred Shares into common shares or receive redemption payments in common shares for any of their Series B Preferred Shares, but will be subject to all changes made with respect to our common shares.

Holders of the Series B Preferred Shares will have no rights with respect to the common shares unless their Series B Preferred Shares are converted into common shares or they receive redemption payments in common shares for any of their Series B Preferred Shares, including the voting rights of holders of common shares, rights to respond to tender offers, and rights to receive any dividends or other distributions on our common shares. Ownership of our Series B Preferred Shares will not give you the rights of holders of our common shares. Until and unless you receive common shares upon conversion or redemption, you will have only those rights applicable to holders of our Series B Preferred Shares.

Your investment in the Series B Preferred Shares may be negatively affected by any matters that affect our common shares. Upon conversion of the Series B Preferred Shares or receipt of redemption payments in common shares for the Series B Preferred Shares, you will be entitled to exercise the rights of a holder of common shares only as to matters for which the record date occurs on or after the applicable conversion or redemption date, although you will be subject to any changes in the powers, rights or privileges of common shares that may occur as a result of any shareholder action taken before the conversion or redemption of your Series B Preferred Shares.

The price of our common shares may fluctuate significantly, making it difficult for you to resell common shares issuable upon conversion of the Series B Preferred Shares or received as redemption payments in common shares for the Series B Preferred Shares when you want or at prices you find attractive.

The price of our common shares on the NYSE has historically fluctuated significantly. We expect that the market price of our common shares will continue to fluctuate.

The price of our common shares may fluctuate as a result of a variety of factors, many of which are beyond our control. These factors include:

| ● | quarterly variations in our investment results; |

<div align='center'>S-14</div>

| ● | operating results that vary from the expectations of management, securities analysts and investors; |

| ● | changes in expectations as to our future financial performance; |

| ● | the operating and securities price performance of other companies that investors believe are comparable to us; |

| ● | future sales of our equity or equity related securities; |

| ● | the rate at which investors purchase, sell, short sell