Company: NXDT
Filing Date: 2025-04-11
Form Type: S-4
Source: 0001437749-25-011826
Chunk: 20

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-11
Form: S-4
Chunk 20
---
; |

| ● | The use of leverage to finance our investments; |

| ● | Risks associated with our loans and investments in debt instruments including, senior loans, mezzanine loans, collateralized loan obligations (“CLOs”) and structured finance securities; |

| ● | Our loans and investments are concentrated in terms of type of interest, geography, asset types, industry and sponsors and may continue to be so in the future; |

<div align='center'>10</div>

| ● | We have a substantial amount of indebtedness which may limit our financial and operating activities and may adversely affect our ability to incur additional debt to fund future needs; |

| ● | We have limited operating history as a standalone company and may not be able to operate our business successfully, find suitable investments or generate sufficient revenue to make or sustain distributions to our shareholders; |

| ● | We may not replicate the historical results achieved by other entities managed or sponsored by affiliates of NexPoint Advisors, L.P. (“NexPoint” or our “Sponsor”), members of the Adviser management team or their affiliates. |

| ● | We are dependent upon our Adviser and its affiliates to conduct our day-to-day operations; thus, adverse changes in their financial health or our relationship with them could cause our operations to suffer; |

| ● | Our Adviser and its affiliates face conflicts of interest, including significant conflicts created by our Adviser’s compensation arrangements with us, including compensation which may be required to be paid to our Adviser if our advisory agreement is terminated, which could result in decisions that are not in the best interests of our shareholders; |

| ● | We pay substantial fees and expenses to our Adviser and its affiliates, which payments increase the risk that you will not earn a profit on your investment; |

| ● | If we fail to qualify as a REIT for U.S. federal income tax purposes, cash available for distributions to be paid to our shareholders could decrease materially, which would limit our ability to make distributions to our shareholders; and |

| ● | Any other risks included under the heading “Risk Factors” in this proxy statement/prospectus or the 2024 Annual Report. |

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this proxy statement/prospectus. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or