Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 269

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 269
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 units of $0.015 on the TSXV on November 22, 2024. |

| 7.0 | The Proposed Transaction |

| 7.01 | Pursuant to the Merger Agreement, the existing Unitholders of NHT would, at their election, exchange each trust unit of NHT for either US$0.36 cash or one (1) common share of New NHT. Following the Reorganization, each common share of New NHT issued pursuant to the transactions described above, will be exchanged for a portion of a common unit of NXDT with a value of US$0.36. |

| 8.0 | Fairness Opinion criteria |

| 8.01 | For the purposes of the Opinion, we considered that the Proposed Transaction would be fair, from a financial point of view, to the Unitholders, if the FMV of the Consideration being paid is greater than or equal to the FMV of the Trust at the Opinion Date. In this regard, we assessed the fairness of the total Consideration being paid for the Trust as a combined entity, rather than on an individual asset by asset basis. |

Approach to fairness

| 8.02 | In considering the fairness of the Consideration, from a financial point of view, to the Unitholders, we considered factors including, but not limited to, the following: |

<div align='center'>E-9</div>

| I) | Income capitalization approach: Involves estimating the enterprise value of each hotel by determining a maintainable net operating income and dividing by a capitalization rate which reflects the risks of generating the adopted level of net operating income on a prospective basis. |

| II) | Discounted Cash flow (“DCF”) approach: Involves forecasting the annual net operating income anticipated to be generated by the hotels for a period of time and discounting the projected net operating income at a rate of return that reflects the risk of achieving the same. An estimate is then made of the value of the net operating income beyond the discrete forecast period, which is referred to as the terminal value. The terminal value is determined by applying a terminal capitalization rate to the expected annual net operating income to be generated beyond the discrete forecast period. The sum of the present value of the net operating income for the discrete forecast period plus the present value of the terminal value net operating income represents the enterprise value of the hotels. |

| III) | Hotel transactions: We compared the implied price per room for