Company: NXDT
Filing Date: 2025-08-22
Form Type: S-3
Source: 0001437749-25-027604
Chunk: 12

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-08-22
Form: S-3
Chunk 12
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 its discretion and at any time, waive its right to reimbursement for eligible out-of-pocket expenses paid on the Company’s behalf. Once waived, these expenses are considered permanently waived and become non-recoupable in the future.

Under the terms of the Advisory Agreement, our Adviser will, among other things:

| ● | identify, evaluate and negotiate the structure of our investments (including performing due diligence); |

| ● | find, present and recommend investment opportunities consistent with our investment policies and objectives; |

| ● | structure the terms and conditions of our investments; |

| ● | review and analyze financial information for each investment in our overall portfolio; |

| ● | close, monitor and administer our investments; and |

| ● | identify debt and equity capital needs and procure the necessary capital. |

As consideration for the Adviser’s services under the Advisory Agreement, we pay our Adviser an annual fee (the “Advisory Fee”) of 1.00% of Managed Assets (as defined below) and an annual fee (the “Administrative Fee” and, together with the Advisory Fee, the “Fees”) of 0.20% of the Company’s Managed Assets. The monthly installment of the Administrative Fee is paid in cash. The monthly installment of the Advisory Fee is paid one-half in cash and one-half in common shares, subject to certain restrictions including that the common shares issued to the Adviser under the Advisory Agreement shall not exceed 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 the Advisory Agreement.

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Under the Advisory Agreement, “Managed Assets” means an amount equal to the total assets of the Company, including any form of leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing to purchase or develop real estate or other investments, borrowing through a credit facility, or the issuance of debt securities),