Company: NXDT
Filing Date: 2025-04-17
Form Type: 8-K
Source: 0001437749-25-012294
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Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-17
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into Material Definitive Agreement.

Closing of Previously Announced NHT Merger

On April 17, 2025, NexPoint Diversified Real Estate Trust (the “ Company”), consummated a merger transaction (the “ Merger Transaction”) pursuant to which NexPoint Hospitality Trust (“ NHT”) and certain of its subsidiaries merged with and into the Company and certain of its subsidiaries, with the Company and its subsidiaries as the surviving entities, in accordance with the terms of the previously announced Agreement and Plan of Merger (the “ Merger Agreement”), dated as of November 22, 2024, by and among the Company, NHT, and certain of their respective subsidiaries. Prior to the consummation of the Merger Transaction, the Company owned 53.65% of the outstanding units of NHT. As consideration for the Merger Transaction, at the effective time of the Merger Transaction, the Company issued 1,084,593 common shares to the former unitholders of NHT and caused NexPoint Diversified Real Estate Trust Operating Partnership, L. P. (the “ Operating Partnership”), the Company’s operating partnership, to issue 227,728.5 profits interest units to certain individuals employed by an affiliate of our investment adviser as replacement awards for profits interest units they were previously granted by NHT and 19,881.2299 limited partnership units to one of the members of NHT’s operating company. Additionally, in order to comply with the rules of the New York Stock Exchange restricting the issuance of greater than one percent of our common shares to certain related parties, the Company issued promissory notes to certain unitholders of NHT that may be deemed affiliates of the Company in an aggregate principal amount of approximately $0.8 million in lieu of common shares they otherwise would have been entitled to receive in consideration for the Merger Transaction. Unitholders of NHT who elected to receive a cash payment for the redemption of their units received aggregate payments of $75,951.64 from NHT in a reorganization transaction consummated prior to the consummation of the Merger Transaction. NHT also paid an aggregate of approximately $0.9 million to redeem certain deferred units held by its trustees prior to the consummation of the Merger Transaction.

The issuance of common shares by the Company to the former unitholders of NHT was registered under the Securities Act of 1933, as amended (the “ Securities Act”), pursuant to