Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 122

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 122
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lassify Unissued Shares of Beneficial Interest and Issue Additional Common and Preferred Shares

NXDT is authorized to issue an unlimited number of its shares of beneficial interest, or capital shares, in multiple classes and series thereof as determined from time to time by the NXDT Board. The NXDT Board, in its discretion, may from time to time without vote of the shareholders issue shares of beneficial interest, including any preferred shares, in addition to the then issued and outstanding shares of beneficial interest and shares of beneficial interest held in the treasury, subject to the terms of the Statement of Preferences. The NXDT Board may also authorize and issue such other securities of NXDT as it determines to be necessary, desirable or appropriate, having such terms, rights, preferences, privileges, limitations and restrictions as the NXDT Board sees fit, including multiple classes of common shares, preferred interests, debt securities or other senior securities. To the extent the NXDT Board authorizes and issues additional shares of any class or series, the NXDT Board is authorized, without shareholder approval, subject to the terms of the Statement of Preferences, to amend or supplement the NXDT Declaration as it deems necessary or appropriate. The NXDT Board may from time to time divide or combine the shares of beneficial interest into a greater or lesser number without thereby changing the proportionate beneficial interest in such shares.

The NXDT Board may increase the number of authorized preferred shares or cause the issuance of additional shares of any series of preferred shares, including Series A Preferred Shares, subject to the terms of the Statement of Preferences. The Statement of Preferences provides that an increase in the number of authorized preferred shares or the issuance of additional shares of any series of preferred shares, including Series A Preferred Shares, pursuant to the Governing Documents will not in and of itself be considered to adversely affect the rights and preferences of the preferred shares and holders of the Series A Preferred Shares, by virtue of their acquisition of Series A Preferred Shares, will be deemed to have authorized such issuances by the NXDT Board. The Governing Documents do not require the consent of holders of preferred shares, including the Series A Preferred Shares, for the NXDT Board to authorize and issue additional shares ranking junior to the Series A Preferred Shares with respect to distribution rights and rights upon NXDT’s liquidation, dissolution or winding up.

As a result of the above, although the NXDT Board does not currently intend to do so, it could authorize the issuance of shares of beneficial interest with terms and conditions that could have the effect of delaying, deferring