Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 150

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 150
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 Non-U.S. Holder is a nonresident alien individual who is present in the United States for 183 days or more during the taxable year and certain other conditions are met, in which case the Non-U.S. Holder generally will be subject to a 30% tax on the Non-U.S. Holder’s capital gains (or such lower rate specified by an applicable income tax treaty),which generally may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses. In addition, even if the REIT is a domestically controlled qualified investment entity, upon disposition of Units, a Non-U.S. Holder may be treated as having gain from the sale or other taxable disposition of a USRPI if the Non-U.S. Holder (1) disposes of such Units within a 30-day period preceding the ex-dividend date of a distribution, any portion of which, but for the disposition, would have been treated as gain from the sale or exchange of a USRPI and (2) acquires, or enters into a contract or option to acquire, or is deemed to acquire, other Units during the 61-day period beginning with the first day of the 30-day period described in clause (1), unless such Units are “regularly traded” and the Non-U.S. Holder did not own more than 10% of the stock of the REIT at any time during the one-year period ending on the date of the distribution described in clause (1).

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If gain on the exchange of Units were subject to taxation under FIRPTA, the Non-U.S. Holder would be required to file a U.S. federal income tax return and would be subject to regular U.S. federal income tax with respect to such gain in the same manner as a taxable U.S. Holder (subject to any applicable alternative minimum tax and a special alternative minimum tax in the case of nonresident alien individuals).

Non-U.S. Holders should consult their tax advisers regarding the U.S. federal income tax consequences of the Restructuring if it does not qualify as an F Reorg (including the requirement to recognize gain in that event).

Qualification of the Company Merger as an A Reorg

The Company Merger is expected to be treated as an A Reorg. However, there is no assurance