Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1550

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1550
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<div align='center'>I-1214</div>

| 1. | Capital Accounts of the Partners |

A. The Partnership shall maintain for each Partner (and, to the extent necessary to effectuate the provisions of this Agreement, for each Partner’s interest in a specific class or series (or specified group of classes and/or series)) a separate Capital Account in accordance with the rules of Regulations Section 1.704-1(b)(2)(iv). Such Capital Account shall be increased by (i) the amount of all Capital Contributions and any other deemed contributions made by such Partner to the Partnership pursuant to the Agreement (including the amount of any Partnership liabilities assumed by such Partner or that are secured by any property distributed to such Partner), and (ii) all items of Partnership income and gain (including income and gain exempt from tax) computed in accordance with hereof and allocated to such Partner pursuant to Section 6.1(a) of the Agreement and of the Agreement, and decreased by (x) the amount of cash or Agreed Value of all actual and deemed distributions of cash or property made to such Partner pursuant to the Agreement (including the amount of any liabilities of such Partner assumed by the Partnership or that are secured by any property contributed by such Partner to the Partnership (except to the extent already reflected in the amount of such Partner’s Capital Contribution), and (y) all items of Partnership deduction and loss computed in accordance with hereof and allocated to such Partner pursuant to Section 6.1.(b) of the Agreement and hereof. In furtherance of the foregoing and in accordance with Regulations Sections 1.1061-3(c)(3), the Partnership shall (i) determine and calculate separate allocations attributable to (A) the Profits LTIP Units and any other distribution entitlement that is not commensurate with capital contributed to the Partnership and (B) any distribution entitlements of the Partners that are commensurate with capital contributed to (and gains reinvested in or retained by) the Partnership, (ii) determine and calculate such separate allocations in a similar manner with respect to each Partner and (iii) consistently reflect each such allocation in its books and records, in each case, within the meaning of Regulations Section 1.1061-3(c)(3) (taking into account Regulations Section 1.1061-3(c)(3)(iii)) and as reasonably determined by the General Partner.

B. For purposes of computing the amount of any item of income, gain, deduction or