Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 142

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 142
---
 Shares or NXDT Common Shares received pursuant to the Transaction (or, solely with respect to the discussion below under the heading “—NXDT Common Share Ownership,” other NXDT Common Shares) that is, for U.S. federal income tax purposes, neither a U.S. Holder nor an entity or arrangement classified as a partnership for U.S. federal income tax purposes.

THIS SUMMARY DOES NOT PURPORT TO BE A COMPREHENSIVE ANALYSIS OR DESCRIPTION OF ALL POTENTIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE TRANSACTION OR OF OWNING NXDT COMMON SHARES. UNITHOLDERS SHOULD CONSULT THEIR TAX ADVISERS REGARDING THE PARTICULAR TAX CONSEQUENCES TO THEM OF THE TRANSACTION OR OWNING NXDT COMMON SHARES, INCLUDING THE APPLICABILITY AND EFFECTS OF U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. TAX LAWS.

The Transaction

Notwithstanding that the REIT is a Canadian trust, solely for U.S. federal income tax purposes the REIT is classified as a U.S. domestic corporation.

Pursuant to the Reorganization, (i) each Unitholder will either (a) contribute all of such Unitholder’s equity interests in the REIT to New NHT in exchange for the New NHT Shares pursuant to the Contributions, or (b) have all of such Unitholder’s equity interests in the REIT redeemed for $0.36 cash per Unit pursuant to the Redemptions and, immediately thereafter, (ii) New NHT will cause the REIT to be wound up and liquidated, distributing its assets and liabilities to New NHT pursuant to the Liquidation. For U.S. federal income tax purposes, the Contributions and the Liquidation are together expected to constitute a single integrated transaction (the “Restructuring”), and the Redemptions are expected to be treated as unrelated, separate transactions from the Restructuring.

<div align='center'>-88-</div>

Consequences of the Transaction to U.S. Holders not Participating in a Redemption

Qualification of the Restructuring as an F Reorg

The Restructuring is expected to be treated as a “reorganization” described in Section 368(a)(1)(F) of the Code (an “F Reorg”). However, there is no assurance that the IRS or any court will agree with this position. U.S. Holders should be aware that the completion of the Transaction is not conditioned on the receipt of an opinion of