Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 26

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 26
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, our leverage ratios and future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been. We may not be able to pay dividends in the future.

We intend to use the net proceeds from the offering of the Series B Preferred Shares to fund future investments and for other general corporate purposes, but the offering will not be conditioned upon the closing of pending investments and we will have broad discretion to determine alternative uses of proceeds.

We intend to use the net proceeds from the offering to fund future investments and for other general corporate purposes. However, the offering will not be conditioned upon the closing of pending investments. We will have broad discretion in the application of the net proceeds from the offering, and holders of our Series B Preferred Shares will not have the opportunity as part of their investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of proceeds from the offering, their ultimate use may vary substantially from their currently intended use, and result in investments that are not accretive to our results from operations.

The Series B Preferred Shares will bear a risk of early redemption by us.

We may voluntarily redeem some or all of the Series B Preferred Shares, for cash or equal value of our common shares, beginning on the first day of the first quarter following the second anniversary of the issuance date. Any such redemptions may occur at a time that is unfavorable to holders of such preferred shares. We may have an incentive to voluntarily redeem Series B Preferred Shares, if market conditions allow us to issue other preferred shares or debt securities at an interest or distribution rate that is lower than the distribution rate on the Series B Preferred Shares. Given the potential for early redemption of the Series B Preferred Shares, holders of such shares may face an increased reinvestment risk, which is the risk that the return on an investment purchased with proceeds from the sale or redemption of the Series B Preferred Shares may be lower than the return previously obtained from the investment in such shares. The trading price of the common shares, for which the Series B Preferred Shares may be redeemed may be volatile and may expose investors to additional volatility risk.

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There is a no guarantee we will exercise our option to redeem all or a portion of the Series B Preferred Shares in connection with a Change of Control.

A majority of the investments we presently hold and the investments we expect to acquire in the future are, and will be, illiquid. If we were to determine