Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 104

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 104
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 qualify as a real estate investment trust for U.S. federal income tax purposes under the Code, NHT cannot operate any of its hotels and therefore, each of NHT’s properties are leased to TRSs of NHT (the“TRS Entities”) which have, in turn, engaged eligible independent contractors (as defined in the Code), which are affiliates of the Manager, to manage the day-to-day operations of the hotels.

The Advisor gives NHT access to an experienced management team and extensive network of industry relationships, as well as a management platform with deep knowledge of real estate assets and markets. The Advisor and its affiliates manage approximately $14.8 billion of gross real estate investments as of September 30, 2024. The Advisor’s team has over 100 years of combined experience in real estate acquisitions, dispositions, financing, rehab implementation and specific experience in hospitality, including NHT’s strategy. Since inception in 2012, the Advisor’s team has closed $20.1 billion of U.S. gross real estate transactions across multiple property types including: multifamily, hospitality, single family rental, storage, life sciences, ground leases, office, and retail.

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NHT was formed on December 12, 2018, and began operations on January 8, 2019, when it acquired, directly and indirectly, 11 hotel properties, through the contribution of those properties directly by various contributing unitholders and indirectly by contributions to NHT OP (collectively referred to as the “Formation Transaction”).

On January 8, 2019, through a series of transactions, the hotels were indirectly contributed by four different groups of affiliated parties to NHT OP. The contributed assets and assumed liabilities are currently held by NHT OP through its subsidiaries. Each hotel property is leased to the TRS Entities under a long-term lease arrangement in exchange for the payment of the agreed upon rent amount.

On March 27, 2019, NHT filed a final prospectus with the Ontario Securities Commission, as principal regulator, registering 917,700 Units for distribution to the public and an additional 3,452,014 Units for distribution to non-affiliated parties in consideration for their share of contributions in the Formation Transaction. On March 29, 2019, NHT closed its IPO, issuing 917,700 Units to public unitholders at $5.00 per Unit, raising gross proceeds of approximately $4.6 million. On March 29,