Company: NXDT
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001437749-25-013177
Chunk: 19

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-25
Form: 424B3
Chunk 19
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DT Bylaws contain a number of provisions, the exercise or existence of which could delay, defer or prevent a transaction or a change in control that might involve a premium price for New NXDT’s stockholders or otherwise be in their best interest, including the following:

| ● | The New NXDT Charter Contains Restrictions on the Ownership and Transfer of New NXDT’s Stock. In order for New NXDT to qualify, and elect to be taxed, as a REIT, no more than 50% of the value of outstanding shares of New NXDT’s stock may be owned, beneficially or constructively, by five or fewer individuals at any time during the last half of each taxable year other than the first year for which we elect to be taxed as a REIT. Subject to certain exceptions, the New NXDT Charter prohibits any stockholder from owning beneficially or constructively more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of New NXDT Common Stock, or 9.8% in value of the aggregate of the outstanding shares of all classes or series of New NXDT’s stock. We refer to these restrictions collectively as the “ownership limits.” The constructive ownership rules under the Internal Revenue Code of 1986, as amended (the “Code”) are complex and may cause the outstanding stock owned by a group of related individuals or entities to be deemed to be constructively owned by one individual or entity. As a result, the acquisition of less than 9.8% of the outstanding shares of New NXDT Common Stock or the outstanding shares of all classes or series of New NXDT’s stock by an individual or entity could cause that individual or entity or another individual or entity to own constructively in excess of the relevant ownership limits. The New NXDT Charter also prohibits any person from owning shares of New NXDT’s stock that would result in New NXDT being “closely held” under Section 856(h) of the Code or otherwise cause New NXDT to fail to qualify as a REIT. Any attempt to own or transfer shares of New Common Stock or of any of New NXDT’s other capital stock in violation of these restrictions may result in the shares being automatically transferred to a charitable trust or may be void. These ownership limits may prevent a third party from acquiring control of New NXDT if New NXDT’s board of directors does not grant an exemption from the ownership limits, even if New NXDT’s stockholders believe the change in control