Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 58

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 58
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 to Unitholders regarding the Transaction. |

| 9. | Given NXDT’s confirmation that it is not prepared to pursue any alternative transactions that would result in the selling of its interest in the REIT or the acquisition by a third party of the Units that NXDT does not already own, it is highly unlikely that a competing offer for equal or greater consideration could emerge. |

| 10. | NXDT is obligated to pay to the REIT the NXDT Termination Amount in certain circumstances, including in connection with certain breaches by the NXDT Parties that would cause certain conditions precedent to be incapable of being satisfied by the Outside Date. |

| 11. | The likelihood (subject to minority Unitholder approval), that the Transaction will be completed, given the limited number of conditions, including the absence of any financing condition. |

| 12. | The Transaction generally will be taxable to Unitholders for both Canadian and U.S. federal income tax purposes.  Furthermore, the proceeds received by Unitholders for their Units generally will not be subject to U.S. or Canadian withholding tax. See “Certain Canadian Federal Income Tax Considerations” and “Certain U.S. Federal Income Tax Considerations”. |

| (iv) | Procedural Safeguards |

The Special Committee also believes that adequate procedural safeguards were and are present to ensure the fairness of the Transaction to the REIT and Unitholders, including:

| 1. | The Transaction Resolution must be approved by (a) the affirmative vote of not less than 66 2/3% of the votes cast by Unitholders; and (b) in accordance with MI 61-101, the affirmative vote of a majority of the votes cast by Unitholders other than by Mr. Dondero and certain entities affiliated with Mr. Dondero including his joint actors, in each case present in person or represented by proxy at the Meeting. |

| 2. | The fact that the process was conducted by, and under the oversight of, the Special Committee, which was comprised solely of Independent Trustees, and advised by experienced, qualified and independent financial and legal advisors. |

| 3. | The Special Committee and its legal and financial advisors engaged in extensive analysis and believe the Transaction is fair to the REIT and its Unitholders. |

| 4. | The terms and conditions of the Merger Agreement, including the covenants of the REIT and conditions to completion are, in the judgement of the Special Committee,