Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 272

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 272
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 for the three months ended December 31, 2024.

<div align='center'>E-11</div>

Hotel transactions

| 9.10 | In arriving at our valuation conclusions for each hotel, we considered the precedent hotel transactions occurring in the last three years in Texas, Florida and Utah. We assessed each hotel based on location, quality, and considered the implied price per room of hotel transactions compared to NHT’s hotels. The hotel transactions support our valuation conclusions determined under the income capitalization and DCF approach. |

Investment in Life Sciences DST

| 9.11 | On September 11, 2023, NHT acquired $2.5 million worth of beneficial interests in Life Sciences DST. On January 4, 2024, NHT acquired an additional $2.5 million worth of beneficial interests in the investment. The investments represent an effective interest of approximately 6.6% in Life Sciences DST. |

| 9.12 | In order to determine the FMV of the Trust’s interest of Life Science DST, we calculated the fair market value of the real estate it owns through a DCF approach. We applied discount rates of 7.8% to 8.0% and terminal capitalization rates of 5.3% to 5.5%. |

Class B redeemable units

| 9.13 | Class B redeemable units were provided as consideration for the prior acquisition of hotel properties from various unitholders. They are redeemable for cash from NHT at the 10-day volume weighted average price of the units. In the event of redemption, NHT has the option, at its sole discretion, to satisfy the cash redemption by acquiring the Class B Units from the holder in exchange for units of NHT. As at September 30, 2024, 205,597 Class B units were outstanding. |

| 9.14 | We have been advised by Management that the Class B units of NHT OP are considered to be economically equivalent to NHT units and are expected to be entitled to a redemption value equivalent to the offer price of US$0.36 per unit following the Proposed Transaction. In this regard, we determined the fair market value of the Class B units to be based on US$0.36 per unit multiplied by the total Class B units. This amount is deducted as a liability in arriving at the fair market value of the Trust. |

Convertible related party notes

| 9.15 | As of September 30