Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 550

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 550
---
ks associated with our loans and investments in debt instruments including senior loans, CLOs, and structured finance securities;

•the exposure of our loans and investments to risks similar to real estate investments generally, including the risk of delinquency, dependence on tenants, compliance with laws and regulations related to ownership of real property, and foreclosure and loss in any of our commercial real estate-related investments that are secured, directly or indirectly, by real property;

14

•fluctuations in interest rate and credit spreads that could reduce our ability to generate income on our loans and investments;

•the use of leverage to finance our investments;

•competition for desirable loans and investments;

•the concentration of loans and investments in terms of type of interest, geography, asset types, industry and sponsors;

•the risk of downgrade of any credit ratings assigned to our loans and investments;

•the risk that any distressed loans or investments we may make may subject us to bankruptcy risks;

•our dependence on information systems and risks associated with breaches of our data security;

•costs associated with being a public company, including compliance with securities laws;

•the risk of adverse impact to our business if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting;

•risks associated with pandemics, including the future outbreak of other highly infectious or contagious diseases;

•risks associated with our substantial current indebtedness and indebtedness we may incur in the future;

•risks associated with insurance, derivatives or hedging activity, including counterparty risk;

•risks associated with our limited operating history as a REIT and the possibility that we may not replicate the historical results achieved by other entities managed or sponsored by affiliates of our Sponsor, members of our Adviser’s management team or their affiliates;

•our dependence on our Adviser, its affiliates and personnel to conduct our day-to-day operations and identify and realize returns on our investments within very broad investment guidelines and without fiduciary duties to us or a requirement to seek Board approval;

•risks associated with the Adviser’s ability to terminate the Advisory Agreement and risks associated with any potential internalization of our management functions;

•conflicts of interest and competing demands for time faced by our Adviser, our Sponsor and their respective affiliates, officers and employees, and other significant potential conflicts of interest including in connection with (i) substantial fees and expenses we pay to our Adviser and its affiliates which may increase the risk that you will not earn a profit on your investment and (ii) competition with entities affiliated with our Advis