Company: NXDT
Filing Date: 2025-08-22
Form Type: S-3
Source: 0001437749-25-027604
Chunk: 9

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-08-22
Form: S-3
Chunk 9
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 Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 31, 2025, the risk factors described under the caption “Risk Factors” in any applicable prospectus supplement and any risk factors set forth in our other filings with the SEC, before making an investment decision. Each of the risks described in these documents could materially and adversely affect our business, financial condition, results of operations and prospects, and could result in a partial or complete loss of your investment. See “Where You Can Find More Information” and “Incorporation of Certain Information by Reference.”

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USE OF PROCEEDS</div>

The common shares offered hereby are being registered for the account of the selling shareholders identified in this prospectus. See “Selling Shareholders.” All net proceeds from the sale of the common shares will go to the selling shareholders. We will not receive any part of the proceeds from such sale of our common shares.

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SELLING SHAREHOLDERS</div>

Beneficial Ownership

This prospectus covers the resale from time to time by the selling shareholders of common shares of the Company that have been issued to our Adviser as payment for fees earned under our Advisory Agreement. Pursuant to the terms of the Advisory Agreement, subject to the overall supervision of our Board, the Adviser manages the day-to-day operations of the Company, and provides investment management services. As consideration for the Adviser’s services under the Advisory Agreement, we pay our Adviser administrative and advisory fees. Each monthly installment of the advisory fees is paid one-half in cash and one-half in our common shares, subject to certain restrictions including that the common shares issued to the Adviser under the Advisory Agreement shall not exceed five percent of the number of common shares or five percent of the voting power of the Company outstanding prior to the first such issuance (the “Share Cap”) and that in no event shall the common shares issued to the Adviser under the Advisory Agreement exceed 6,000,000 common shares; provided, however, that the Share Cap will not apply if the Company’s shareholders have approved issuances in excess of the Share Cap. At the Company’s 2025 annual meeting of shareholders, the Company’s shareholders approved issuances in excess of the Share Cap. As of August 22, 2025, the Company has issued 1,569,682.49 common shares to the Adviser as payment of the fees under