Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 1015

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 1015
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 on, the Company’s common shares or factors that may influence the value of the Company’s common shares, plus cash incentive awards, for the purpose of providing the Company’s trustees, officers and other key employees (and those of the Adviser and the Company’s subsidiaries), and potentially certain nonemployees who perform employee-type functions, incentives and rewards for performance (the "participants").

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Restricted Share Units. Under the 2023 LTIP, restricted share units may be granted to the participants and typically vest over a three to five-year period for officers, employees and certain key employees of the Adviser and annually for trustees. The most recent grant of restricted share units to officers, employees and certain key employees of the Adviser will vest over a four-year period. Beginning on the date of grant, restricted share units earn dividends that are payable in cash on the vesting date. Compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. Forfeitures are recognized as they occur. The following table includes the number of restricted stock units granted to its directors, officers, employees and certain key employees of the Adviser under the 2023 LTIP:Summary of GrantsMarchAprilTotal2023— 603,482 603,482 20241,033,787 — 1,033,787 Total1,033,787 603,482 1,637,269 As of December 31, 2024 and 2023, the Company had 1,438,049 and 589,906 unvested units under the 2023 LTIP, respectively.The following table includes the number of restricted share units granted, vested, forfeited and outstanding as of and for the year ended December 31, 2024:2024Number of UnitsWeighted AverageGrant Date Fair ValueOutstanding January 1, 2024589,906 $10.45 Granted1,033,787 6.10 Vested (178,859)(1)10.36 Forfeited(6,785)6.10 Outstanding December 31, 20241,438,049 $7.35 (1)Certain key employees of the Adviser elected to net the taxes owed upon the vesting against the shares issued resulting in 145,433 shares being issued as shown on the Consolidated Statement of Stockholders’ Equity.The following table contains information regarding the vesting of restricted share units under the 2023 LT