Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 57

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 57
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 equal to the quotient of $0.36 divided by the volume weighted average price of NXDT Common Shares quoted on the NYSE for the ten (10) trading days prior to closing of the Transaction. Unitholders who receive cash for their Units will immediately realize a fair value for their investment and the payment in cash provides certainty of value for their Units. Unitholders who receive NXDT Common Shares will have the opportunity to participate in any increase in value of the REIT’s assets and the increase in value of the current assets of NXDT and are expected to have much greater liquidity due to higher trading volumes in the NXDT Common Shares. |

| 4. | The Transaction represents the best prospect for maximizing Unitholder value over the short to medium term given current and expected macroeconomic conditions in North America and their potential impact on the REIT. Prior to entering into the Merger Agreement, the Special Committee, with the assistance of its legal and financial advisors, assessed the alternatives reasonably available to the REIT, including pursuing its current business plan in the economic environment facing the REIT. |

| 6. | Prior to entering into the Merger Agreement, the Special Committee, with the assistance of its legal and financial advisors, assessed the alternatives reasonably available to the REIT, including pursuing its current business plan in the economic environment facing the REIT and running a marketed sale process. The Special Committee also discussed the negative impact that initiating a sale process with other potential acquirers would have on NXDT’s proposal, the confidentiality of the discussions and the REIT as a whole. Following this assessment, the Special Committee determined that the Transaction is in the best interests of the REIT and Unitholders, and that it was in the best interests of the REIT and Unitholders to not approach other potential acquirers for the purposes of running a marketed sale process. |

| 7. | Notwithstanding the Special Committee’s determination regarding the low likelihood of other potential acquirers coming forward, under the terms of the Merger Agreement, the REIT retains the ability to consider and respond to unsolicited Superior Proposals on the specific terms and conditions set forth in the Merger Agreement and subject to, if applicable, the payment of a Company Termination Fee. |

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| 8. | The terms and conditions of the Transaction do not prohibit the Board from taking any action that would be consistent with its obligation to properly discharge its fiduciary duties, including changing its recommendation