Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 138

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 138
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 fund”, “registered education savings plan”, “registered disability savings plan”, “tax-free savings account”, “first home savings account”, or a “deferred profit sharing plan” (collectively, the “Registered Plans”), each as defined in the Tax Act. Registered Plans and/or the holders, annuitants or subscribers thereof, as the case may be, will be subject to a penalty tax in respect of New NHT Shares held by such plans, and other negative tax consequences may result. Resident Holders that hold Units in a Registered Plan should consult with their own tax advisors regarding the Reorganization, including whether to elect for a Redemption with respect to their Units to avoid penalty taxes and other potential negative tax consequences resulting from a Registered Plan acquiring New NHT Shares.

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Taxation of Holders Not Resident in Canada

The following portion of this summary is generally applicable to a Holder who, for purposes of the Tax Act and any applicable income tax treaty or convention, and at all relevant times, (i) is not, and is not deemed to be, a resident of Canada, (ii) does not use or hold, and is not deemed to use or hold, Units in connection with carrying on a business in Canada (a "Non-Resident Holder"). Special rules, not discussed in this summary, may apply to a Non-Resident Holder that is an insurer carrying on business in Canada and elsewhere. Such Non-Resident Holders should consult their own tax advisors.

This summary assumes that none of the Units, the New NHT Shares or the NXDT Shares (the “Securities”) are or will at any time be “taxable Canadian property” for purposes of the Tax Act. A Security will not be “taxable Canadian property” at a particular time, unless at any particular time during the 60-month period that ends at that time more than 50% of the fair market value of the Security was derived, directly or indirectly, from one or any combination of (i) real or immovable property situated in Canada, (ii) Canadian resource properties (as defined in the Tax Act), (iii) timber resource properties (as defined in the Tax Act) or (iv) options or interests in respect of property described in (i) to (iii), whether or not such property exists. None of NHT, New NHT or NXDT own, and management of NHT and NXDT do not currently expect that NHT, New NHT or N