Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 11

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 11
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 quarter; and (iii) no more than 20% of the outstanding Series B Preferred Shares will be redeemed per fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 Redemptions pursuant to an optional redemption by the Company or in connection with a Change of Control will not count toward the 2%/5%/20% limits applied to optional redemptions by holders of the Series B Preferred Shares. Optional redemptions following death or qualifying disability of a holder (described below) will count toward the 2%/5%/20% limits but will not be subject to such limits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 If, after applying these redemption limits, a holder would own less than one Series B Preferred Share, all of such holder’s Series B Preferred Shares will be redeemed. Otherwise, all redemption amounts will be rounded down such that after giving effect to any redemption, no holder is left owning a fractional share. For example, if after applying the redemption limits, an investor would own 2.5 shares, we will redeem 0.5 fewer shares from such holder so that the holder is left owning three shares. If, after applying these redemption limits, the number of Series B Preferred Shares to be redeemed is less than the number of Series B Preferred Shares submitted for redemption by a holder, the excess Series B Preferred Shares will remain subject to redemption in future periods until the earlier of (i) all Series B Preferred Shares submitted by such holder for redemption have been redeemed, or (ii) such holder delivers to us a written notice of withdrawal stating the number of withdrawn Series B Preferred Shares and the number of Series B Preferred Shares, if any, which remain subject to redemption. |

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|                                                                          |     | Redemption of the Series B Preferred Shares will be made at the option of the holder upon delivery by the holder of a duly completed notice to the Company or through the procedures of DTC, which will be irrevocable, except upon written consent of the Company, in compliance with the Stated Transfer Procedures. The redemption date for shares to be redeemed at the option of a holder will be a date selected by the Company in its discretion that is within 45 days of the date the Company receives a redemption notice from the holder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 See “Description of Series B Preferred Shares—Redemption at Option of Holders” in this prospectus supplement.