Company: NXDT
Filing Date: 2025-02-14
Form Type: 425
Source: 0001437749-25-004022
Chunk: 3

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-02-14
Form: 425
Chunk 3
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 the value of Units based on historical valuation analysis conducted in connection with the preparation of the REIT’s and NXDT’s financial statements. Such valuation is available to view on SEDAR+ at sedarplus.ca. The Special Committee ultimately decided to recommend the Cash Consideration based on the factors described in the Circular under the heading “Approval of Transaction Resolution”. In particular, based on the work conducted by Doane Grant Thornton LLP, the Special Committee determined that US$0.36 was fair, from a financial point of view, to Unitholders. The Special Committee also ultimately decided, with the assistance of its legal and financial advisors, to recommend the Share Consideration on the basis that Unitholders who receive NXDT Common Shares will have the opportunity to participate in any increase in value of NHT’s assets and the NXDT Common Shares were expected to have much greater liquidity due to higher trading volumes.

Details Regarding the Share Consideration

To the extent that every Unitholder elects to receive Share Consideration (other than NXDT and its subsidiaries whose Units will be cancelled in connection with the terms of the merger agreement entered into in relation to the Transaction) and assuming an NXDT share price of US$5.33, an aggregate of 918,890 NXDT Common Shares would be issuable to such Unitholders under the Transaction. This represents approximately 2.2% of the issued and outstanding common shares in the capital of NXDT.

About NexPoint Hospitality Trust

NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its Units listed on the TSX Venture Exchange under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located real estate assets including, but not limited to, investments in life science and semiconductor manufacturing properties, but mainly focusing on hospitality properties in the United States that offer a high current yield and in many cases are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, expense inefficiencies, and exploiting excess land or underutilized space. NHT owns 7 branded properties sponsored by Marriott, Hilton and Hyatt, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P.

Additional Information and Where to Find It

In connection Transaction, NXDT has filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “Registration Statement”) containing