Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 132

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 132
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 rate quoted by the Bank of Canada on the day such amount first arose, or using such other rate of exchange as is acceptable to the Minister of National Revenue (Canada).

Status of the REIT and NXDT

This summary assumes that the REIT has, at all relevant times, qualified and is expected to continue to qualify at all relevant times as a “mutual fund trust”, and has not, at any time, been and is not expected to become a “SIFT trust”, each as defined in the Tax Act. If at any relevant time the REIT were not to qualify as a mutual fund trust, or if the REIT were to become a SIFT trust, the income tax considerations described below would, in some respects, be materially and adversely different.

This summary also assumes that NXDT (i) will not be, and will not be deemed to be, resident in Canada at any relevant time and will be an “exempt foreign trust” at all relevant times, (ii) will not carry on a business in Canada at any relevant time, and (iii) will not be a “SIFT trust” at any relevant time, in each case for purposes of the Tax Act. If NXDT were to at any relevant time be resident (or deemed to be resident) in Canada, not be an exempt foreign trust, carry on business in Canada, or become a SIFT trust, the income tax considerations could be materially and adversely different from those described below.

Taxation of Holders Resident in Canada

The following portion of this summary is generally applicable to a Holder who, at all relevant times, for purposes of the Tax Act, is or is deemed to be resident in Canada (a "Resident Holder"). Certain Resident Holders who might not otherwise be considered to hold their Units as capital property may, in certain circumstances, be entitled to make an irrevocable election in accordance with subsection 39(4) of the Tax Act to have such Units (but not any New NHT Shares or NXDT Common Shares), and any other “Canadian security” (as defined in the Tax Act) owned in the taxation year in which the election is made or in subsequent taxation years, deemed to be capital property. Resident Holders considering making such an election are urged to consult their own legal and tax advisors to determine the applicability and particular tax effects to them of making such an election.

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The Redemption will result in a disposition of Units by a Resident Holder for purposes