Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 632

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 632
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, which in turn could reduce our share price or prevent our shareholders from realizing a premium over our share price.

Broad market fluctuations could negatively impact the market price of our common shares. 

The market price of our common shares may be volatile. In addition, the trading volume in our common shares may fluctuate and cause significant price variations to occur. We cannot assure you that the market price of our common shares will not fluctuate or decline significantly in the future. Some of the factors that could affect our share price or result in fluctuations in the price or trading volume of our common shares include:

•actual or anticipated variations in our quarterly operating results, financial condition, cash flow and liquidity, or changes in investment strategy or prospects;

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•changes in our operations or earnings estimates or publication of research reports about us or the real estate industry;

•loss of a major funding source or inability to obtain new favorable funding sources in the future;

•our financing strategy and leverage;

•actual or anticipated accounting problems;

•changes in market valuations of similar companies;

•increases in or high interest rates that lead purchasers of our shares to demand a higher yield;

•adverse market reaction to any increased indebtedness we incur in the future;

•additions or departures of key management personnel;

•actions by institutional shareholders;

•speculation in the press or investment community;

•the realization of any of the other risk factors presented in this Annual Report;

•the extent of investor interest in our securities; 

•the general reputation of REITs and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies;

•our underlying asset value;

•investor confidence and price and volume fluctuations in the shares and bond markets, generally;

•changes in laws, regulatory policies or tax guidelines, or interpretations thereof, particularly with respect to REITs;

•future equity issuances by us, or share resales by our shareholders, or the perception that such issuances or resales may occur;

•failure to meet income estimates;

•failure to meet and maintain REIT qualifications or exclusion from Investment Company Act regulations or listing on the NYSE; and

•general market and economic conditions.

In the past, class-action litigation has often been instituted against companies following periods of volatility in the price of their common shares. This type of litigation could result in substantial costs and divert our management’s attention and resources, which could have an adverse effect on our financial condition, results of operations, cash flow and trading price of