Company: NXDT
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001437749-25-013177
Chunk: 146

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-25
Form: 424B3
Chunk 146
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 other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. |

| ● | If New NXDT should fail to satisfy the 75% gross income test or the 95% gross income test, as discussed below under “–Requirements for Qualification–Income Tests,” but has nonetheless maintained New NXDT’s qualification as a REIT because it has satisfied some other requirements, New NXDT will have to pay a 100% tax on an amount equal to (a) the gross income attributable to the greater of (i) 75% of New NXDT’s gross income over the amount of gross income that is qualifying income for purposes of the 75% test, and (ii) 95% of New NXDT’s gross income over the amount of gross income that is qualifying income for purposes of the 95% test, multiplied by (b) a fraction intended to reflect New NXDT’s profitability. |

| ● | If after consideration of New NXDT’s net operating loss carryforwards, New NXDT should fail to distribute during each calendar year at least the sum of (1) 85% of New NXDT’s REIT ordinary income for that year, (2) 95% of New NXDT’s REIT capital gain net income for that year and (3) any undistributed taxable income from prior periods, New NXDT would have to pay a 4% excise tax on the excess of that required distribution over the sum of the amounts actually distributed and retained amounts on which income tax is paid at the corporate level. |

| ● | If New NXDT derives “excess inclusion income” from a residual interest in a real estate mortgage investment conduit, or “REMIC,” or certain interests in a taxable mortgage pool, or “TMP,” New NXDT could be subject to U.S. federal corporate income tax to the extent that such income is allocable to certain types of tax-exempt stockholders that are not subject to unrelated business income tax, such as government entities. |

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| ● | If New NXDT receives non-arm’s-length income from a TRS (as defined under “–Requirements for Qualification–Asset Tests”), or as a result of services provided by a TRS to tenants of New NXDT, New NXDT will be subject to a 100% tax on the amount of New NXDT’s non-arm’s-length income. |

| ● | If New NXDT fails