Company: NXDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001356115-25-000021
Chunk: 184

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 184
---
 the Company may issue pursuant to the A&R 2023 LTIP. The LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of share options, appreciation rights, restricted shares, restricted share units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common shares or factors that may influence the value of the Company’s common shares, plus cash incentive awards, for the purpose of providing the Company’s trustees, officers and other key employees (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:

30

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 As of June 30, 2025 and December 31, 2024, the Company had 2,483,801 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 six months ended June 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 For