Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 2291

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 2291
---
 |       | 583,687 |     |      | 6,219 |     |       | 1,619,322 |

For the three months ended March 31, 2024, the Company recognized approximately $0.5 million of equity-based compensation expense related to grants of restricted share units. As of March 31, 2024, the Company had recognized a liability of approximately $0.4 million related to dividends earned on restricted share units that are payable in cash upon vesting. As of March 31, 2024, total unrecognized compensation expense on restricted share units was approximately $10.6 million, and the expense is expected to be recognized over a weighted average vesting period of 2.0 years. As of March 31, 2023, there was no compensation expense on restricted share units.

11. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of the Company’s common shares outstanding and excludes any unvested restricted share units issued pursuant to the 2023 LTIP.

Diluted earnings (loss) per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted share units. During periods of net loss, the assumed vesting of restricted share units is anti-dilutive and is not included in the calculation of earnings (loss) per share.

<div align='center'>26

I-1836</div>

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):

| Numerator for loss per share:                         |    | Three Months Ended March 31, 
 2024                         |         |   |     | Three Months Ended March 31, 
 2023                         |         |   |
|:------------------------------------------------------|---:|:-----------------------------|--------:|:--|:----|:-----------------------------|--------:|:--|
| Net income (loss) attributable to common shareholders |    | $                            | (22,703 | ) |     | $                            | (20,676 | ) |
| Denominator for loss per share:                       |    |                              |         |   |     |                              |         |   |
| Weighted average common shares outstanding            |    |                              |  38,572 |   |     |                              |  37,172 |   |
|