Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 16

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 16
---
 requirements; however, participating broker-dealers have to determine the investment is suitable for the investor and may be subject to Regulation Best Interest (“Reg BI”) as discussed in “Plan of Distribution—Compensation of Dealer Manager and Participating Broker-Dealers” and “Plan of Distribution—Settlement Procedures.” |

| ● | No State Review — Investors will not receive an additional level of review and possible protection afforded by the various state regulators. Also, investors will not receive the protections afforded by the substantive requirements of the states with respect to public offerings of non-traded real estate investment trusts. |

<div align='center'>S-11

RISK FACTORS</div>

Investing in our securities involves significant risks. In addition to other information in this prospectus supplement, you should consider the specific risks described in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 14, 2024 and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, filed with the SEC on November 8, 2024, the risk factors described under the caption“Risk Factors,”herein and any risk factors set forth in our other filings with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act before making an investment decision. Each of the risks described in these documents could materially and adversely affect our business, financial condition, results of operations and prospects and could result in a partial or complete loss of your investment. See“Incorporation of Certain Information by Reference.”Some statements in this prospectus supplement, including statements in the following risk factors, constitute forward-looking statements. See“Cautionary Statement Regarding Forward-Looking Statements”in this prospectus supplement.

Risks Related to this Offering

There is currently no public trading market for our Series B Preferred Shares, and one may never exist; therefore, your ability to dispose of your shares will likely be limited.

There is no public market for the Series B Preferred Shares offered in this offering, and we currently have no plan to list the Series B Preferred Shares on a securities exchange or to include such shares for quotation on any national securities market. Additionally, our Declaration contains restrictions on the ownership and transfer of our securities, including our Series B Preferred Shares, and these restrictions may inhibit the ability to sell our Series B Preferred Shares, promptly or at all. If you are able to sell