Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 53

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 53
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 are hedged against interest rate or currency risks or that are part of a straddle or conversion transaction; |

| ● | persons that purchase or sell Old Shares or New Stock, as applicable, as part of a wash sale for tax purposes; and |

| ● | U.S. shareholders whose functional currency is not the U.S. dollar. |

No ruling on the U.S. federal, state or local tax considerations relevant to the Conversion, our operation or to the purchase, ownership or disposition of New Stock, has been requested from the IRS or other tax authority. No assurance can be given that the IRS would not assert, or that a court would not sustain a position contrary to any of the tax consequences described below.

This summary is based on the Code, existing temporary, proposed and final Treasury regulations promulgated thereunder, current administrative interpretations, practices and rulings, and judicial decisions, all as currently in effect and all of which are subject to differing interpretations. In addition, no assurance can be given that future legislative, judicial or administrative actions or decisions, which may be retroactive in effect, will not affect the accuracy of any statements in this prospectus with respect to the transactions entered into or contemplated prior to the effective date of such changes. No assurance can be given that the IRS would not assert, or that a court of competent jurisdiction would not sustain, a position contrary to any tax consequences described below.

If a partnership or other entity treated as a partnership for U.S. federal income tax purposes holds Old Shares or shares of New Stock, as applicable, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and the tax treatment of the partnership. A partner in a partnership holding Old Shares or shares of New Stock, as applicable, should consult such partner’s tax advisor with regard to the U.S. federal income tax treatment of an investment in the Old Shares or shares of New Stock, as applicable.

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We urge you to consult with your own tax advisors regarding the U.S. federal, state, local and foreign tax consequences to you of the Conversion, owning and selling the Old Shares or shares of New Stock, as applicable, the tax treatment of a REIT, and potential changes in applicable tax laws.

As used in this section, the term “U.S. shareholder” means a holder of Old Shares or New Stock, as applicable, who, for U.S. federal income tax purposes, is:

| ● | a citizen or resident of the