Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 22

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 22
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 or otherwise transact in our common shares; |

| ● | changes in general conditions in our industry and in the economy and the financial markets; and |

| ● | departures of key personnel. |

In addition, in recent years, the stock market in general has experienced extreme price and volume fluctuations. This volatility has had a significant effect on the market price of securities issued by many companies for reasons often unrelated to their operating performance. These broad market fluctuations may adversely affect the price of our common shares, regardless of our operating results.

In addition, the Company has 45 calendar days from receipt of a conversion notice or redemption notice by a holder in which to complete the applicable conversion or redemption, during which period the price of our common shares may fluctuate. Fluctuations or declining prices for our common shares during the period between when you deliver a redemption notice and when the Company completes the applicable redemption could result in the issuance of our common shares on the applicable redemption date at a market price that is significantly different than when your redemption notice was delivered and limit your ability sell such common shares when you want or at prices you find attractive. Additionally, because the Series B Preferred Shares are convertible into our common shares based on the 5-day VWAP ending on the trading date immediately preceding the date of delivery of your conversion notice, fluctuations or declining prices for our common shares during the period between when you deliver a conversion notice and when the Company completes the applicable conversion could negatively impact the value of the common shares issued upon conversion and limit your ability to sell such common shares when you want or at prices you find attractive.

Our common shares have historically traded at a discount to NAV, and it is possible that our common shares will continue to do so in the future, limiting the ability of holders of the Series B Preferred Shares to exercise their conversion right.

Holders of Series B Preferred Shares may only exercise their conversion right in the event that the Market Price reaches the Minimum Market Price Trigger, which requires that the 5-day VWAP of our common shares represents a 15% premium to the Applicable NAV. Historically, our common shares have traded at a discount to NAV, and there can be no assurance that in the future our common shares will trade at a premium to Applicable NAV or that they will reach the Minimum Market Price Trigger. If our common shares do not achieve and sustain a price sufficient to achieve the Minimum Market Price Trigger, the holders of Series B Preferred Shares will be unable to exercise their conversion right.

The Minimum Market Price Trigger of the Series B