Company: NXDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052132
Chunk: 192

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 192
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 (and those of the Adviser and the Company’s subsidiaries), and potentially certain nonemployees who perform employee-type functions, incentives and rewards for performance (the "participants").Restricted Share Units. Under the LTIP, restricted share units may be granted to the participants and typically vest over a three to five-year period for officers, employees and certain key employees of the Adviser and annually for trustees. The most recent grant of restricted share units to officers, employees and certain key employees of the Adviser will vest over a four-year period. Beginning on the date of grant, restricted share units earn distributions that are payable in cash on the vesting date. Compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. Forfeitures are recognized as they occur. The following table includes the number of restricted share units granted to its trustees, officers, employees and certain key employees of the Adviser under the LTIP:Summary of GrantsMarchAprilJuneTotal2023— 603,482 — 603,482 20241,033,787 — — 1,033,787 2025— 937,643 572,592 1,510,235 Total1,033,787 1,541,125 572,592 3,147,504 

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As of September 30, 2025 and December 31, 2024, the Company had 2,463,802 and 1,438,049 unvested units under the LTIP, respectively.The following table includes the number of restricted share units granted, vested, forfeited and outstanding as of and for the nine months ended September 30, 2025:2025Number of UnitsWeighted AverageGrant Date Fair ValueOutstanding January 1, 20251,438,049 $7.35 Granted1,510,235 3.73 Vested (449,024)(1)3.76 Forfeited(35,458)5.90 Outstanding September 30, 20252,463,802 $5.81 (1)Certain key employees of the Adviser elected to net the taxes owed upon the vesting against the shares issued resulting in 358,173 shares being issued as shown on the Consolidated Statement of Equity.The following table contains information regarding the vesting of restricted share units under the LTIP as of September 30, 2025:Shares VestingFebruaryMarchAprilJune