Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 63

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 63
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, price / AFFO, and price / NBV multiples did not provide a meaningful data point as the REIT had negative LTM FFO, LTM AFFO and NBV as of September 30, 2024. The price to NAV implied by Doane Grant Thornton’s valuation was above the range of comparable public companies and supported Doane Grant Thornton’s fairness conclusions.

Precedent Transaction Analysis

Doane Grant Thornton reviewed publicly available information of the purchase prices and transaction multiples of precedent public market M&A transactions that Doane Grant Thornton considered relevant. For each of the selected transactions, Doane Grant Thornton considered the price / FFO, price / AFFO, price / NBV, and price to NAV, and derived the minimum, median, average, and maximum metrics for each relevant transaction. Doane Grant Thornton then compared each metric to the REIT. Based on Doane Grant Thornton’s review, the price / LTM FFO, price / AFFO, and price / NBV multiples did not provide a meaningful data point as the REIT had negative LTM FFO, LTM AFFO and NBV as of September 30, 2024. The price to NAV implied by Doane Grant Thornton’s valuation was in excess of the range implied by precedent transactions and supported Doane Grant Thornton’s fairness conclusions.

The Fairness Opinion states that, based upon and subject to their analysis, limitations and assumptions set out in the Fairness Opinion, Doane Grant Thornton is of the opinion that the consideration to be received by the Unitholders in connection with the Transaction is fair from a financial point of view to the Unitholders.

The terms of the engagement letter between Doane Grant Thornton and the REIT provide that Doane Grant Thornton will receive a fee for rendering the Fairness Opinion, which will be based on the professional time required for Doane Grant Thornton to render the Fairness Opinion. Such compensation is not contingent on the result of, or use of, the Fairness Opinion. Furthermore, the REIT has agreed to indemnify Doane Grant Thornton, in certain circumstances, against certain liabilities that might arise out of its engagement.

The full text of the Fairness Opinion, which states, among other things, the assumptions made, procedures followed, factors considered and limitations on the review undertaken, is attached as Appendix E to this Information Circular. Unitholders are encouraged to read the Fairness Opinion carefully in its entirety. The Fairness Opinion was provided to the Board in connection with its evaluation of the consideration