Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 23

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 23
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 Preferred Shares is established based on the Applicable NAV, which is based on a prior period NAV and may not accurately reflect the NAV per common share at the time of issuance of the Series B Preferred Shares, which could make it more difficult to achieve the Minimum Market Price Trigger at which holders of the Series B Preferred Shares can exercise their conversion right.

The Minimum Market Price Trigger of the Series B Preferred Shares is based on the Applicable NAV, or the estimated fair market NAV of the Company per common share as most recently published by the Company at the time of issuance of the applicable Series B Preferred Share. We are not required to publish NAV on a quarterly basis and may change the frequency with which we publish NAV at any time at our discretion, which could affect the Minimum Market Price Trigger by not including, or, if we publish NAV more often than quarterly, by including, recent events which ultimately could affect investors ability to convert. The Company intends to determine NAV on a quarterly basis. The Company’s determination of the Applicable NAV is final and binding.

<div align='center'>S-15</div>

The Applicable NAV in effect on the date on which holders purchase Series B Preferred Shares will equal the most recently published NAV, which is based on a prior period, may not reflect current events and may be significantly different than the actual NAV per common share at the time of issuance of the applicable Series B Preferred Shares. The Company currently intends to publish NAV in connection with its quarterly SEC filings, which could result in a significant period of time passing between the end of the quarter and the publishing of such quarter’s NAV. For example, if a shareholder purchases Series B Preferred Shares on March 1 before the Company has filed its Annual Report on Form 10-K for the most recently ended fiscal year, then the Applicable NAV would be as of September 30 and would not take into account any events that may have occurred since September 30 that could impact the NAV per share. This may result in the Applicable NAV being higher than the actual NAV per common share at the time of purchase of Series B Preferred Shares, in which case the common shares would have to achieve and sustain a higher Minimum Market Price Trigger for a holder of Series B Preferred Shares to be able to exercise their conversion right than would have been required if the Applicable NAV was the actual NAV per common share on the day of purchase of the Series B Preferred Shares.

Our NAV is an estimate of the fair value of our properties and real estate-related assets and may not necessarily reflect realizable value