Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 131

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 131
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” for any purpose of the Tax Act. Such Holders should consult their own tax advisors to determine the tax consequences to them of the Reorganization and the Company Merger. This summary assumes that the REIT and NXDT will each qualify as a “domestically controlled qualified investment entity” at all relevant times (See “Certain U.S. Federal Income Tax Considerations”), however no assurance can be given in this regard. Holders should consult their own tax advisors to determine the tax consequences to them if the REIT or NXDT fail to qualify as a domestically controlled qualified investment entity at any relevant time.

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This summary is based on the current provisions of the Tax Act and the Canada-U.S. Income Tax Convention (the “Treaty”), all specific proposals to amend the Tax Act publicly announced by or on behalf of the Minister of Finance (Canada) before the date hereof (“Proposed Amendments”), counsel’s understanding of the current published administrative policies and practices of the Canada Revenue Agency (the “CRA”), and a certificate as to certain factual matters from an executive officer of each of the REIT and NXDT. Except for Proposed Amendments, this summary does not take into account or anticipate any changes in law, whether by legislative, governmental or judicial action, nor does it take into account other federal or any provincial, territorial or foreign tax legislation or considerations. No assurance can be given that the Proposed Amendments will be enacted in the form proposed or at all.

This summary does not address any tax consequences to holders of Deferred Units, any awards under the Omnibus Plan or any other awards received in connection with employment. Such holders should consult their own tax advisors.

This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular holder of Units. This summary is not exhaustive of all Canadian federal income tax considerations. Consequently, Unitholders are urged to consult their own tax advisors to determine the particular tax effects to them of the Transaction and any other consequences to them in connection with the Transaction under Canadian federal, provincial, territorial or local tax laws and under foreign tax laws, having regard to their own particular circumstances.

The Tax Act requires all taxpayers to compute their “Canadian tax results” (as defined in the Tax Act) in Canadian currency. Where an amount that is relevant in computing a taxpayer’s Canadian tax results is expressed in a currency other than Canadian currency, such amount must be converted to Canadian currency using the