Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 55

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 55
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 Series B Preferred Share held by such holder. If the holders of our Series B Preferred Share and any other class or series of our Parity Shares, including our Series A Preferred Shares, are entitled to vote together as a single class on any matter, such holders of the Series B Preferred Shares and the shares of the other class or series of our Parity Shares, including the Series A Preferred Shares, will have one vote for each $25.00 of Stated Value, subject to appropriate adjustment in relation to any recapitalizations, share dividends, share splits, share combinations, reclassifications or other similar events which affect the Series B Preferred Shares.

Liquidity Events

The purchase of our Series B Preferred Shares is intended to be a long term investment. There is currently no public trading market for our Series B Preferred Shares, and one may never exist. As a result, our Series B Preferred Shares should be considered as having only limited liquidity and may be illiquid. If you sell your shares, any such sales may be made at a loss.

Exchange Listing

We do not plan on making an application to list our Series B Preferred Shares on the NYSE, any other national securities exchange or any other nationally recognized trading system.

Restrictions on Ownership and Transfer

For information regarding restrictions on ownership and transfer of the Series B Preferred Shares, see “Description of Capital Shares—Restrictions on Ownership and Transfer” in the accompanying prospectus.

The Series B Statement of Preferences provides that the ownership and transfer limitations described in “Description of Capital Shares-Restrictions on Ownership and Transfer” in the accompanying prospectus apply to ownership and transfer of Series B Preferred Shares pursuant to Article XII of our Declaration, under which, among other things, Series B Preferred Shares owned by a shareholder in excess of an ownership limit will be transferred to a charitable trust and may be purchased by us under certain circumstances. Our Board may, in its sole discretion, except a person from an ownership limit, as described in “Description of Capital Shares—Restrictions on Ownership and Transfer” in the accompanying prospectus.

Ownership limits also apply to our common shares. See “Description of Capital Shares—Restrictions on Ownership and Transfer” in the accompanying prospectus. Notwithstanding any other provision of the Series B Preferred Shares, no holder of shares of the Series B Preferred Shares is entitled to receive our common shares upon the conversion or redemption of the holder’s Series B Preferred Shares to the extent that receipt of our common shares would cause such holder or any other person to exceed the ownership limits contained