Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1800

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1800
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 Profit and loss from equity method investments for which we’ve elected the fair value option are classified in divided income, change in unrealized gains and realized gains as applicable.

Income Tax Expense.Incometax expense is primarily derived from taxable gains from asset sales and other income earned from investments held in NXDT's wholly owned TRSs and NHT's TRSs.

Unrealized Gain (Loss) on Investments. Unrealized gains and losses represent changes in fair value for equity method investments, CLO equity investments, bonds, common stock, convertible notes, LLC interests, LP interests, rights and warrants, and senior loans for which the fair value option has been elected.

Realized Gain (Loss) on Investments. The Company recognizes the excess, or deficiency, of net proceeds received, less the carrying value of such investments, as realized gains or losses, respectively. The Company reverses cumulative, unrealized gains or losses previously reported in its Consolidated Statements of Operations on both the Successor and Predecessor basis with respect to the investment sold at the time of the sale.

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Real Estate Investments Statistics

As of June 30, 2024, the NXDT segment was invested in two retail properties, and one office and hospitality property (excluding investments in undeveloped land), and the NHT segment consisted of eight hotel properties as listed below:

NXDT Segment:

| Property Name     
 White Rock Center |     | Rentable Square 
 Footage         
 (in thousands)  |    82,793 |     | Property Type        
 Retail               |    | Date      
 Acquired  
 6/13/2013 |     | Average Effective Monthly     
 Occupied Rent Per Square Foot 
 (1) as of                     
 June 30,                      
 2024                          | 1.56 |     | % Occupied (2) as of 
 June 30,             
 2024                 | 70.2 |
|:------------------|:----|:----------------|----------:|:----|:---------------------|---:|:----------|:----|:------------------------------|-----:|:----|:---------------------|-----:|
| 5916 W Loop 289   |     |                 |    30,140 |     | Retail               |    | 7/23/2013 |     |                               |    - |     |                      |    — |
| Cityplace Tower   |     |                 | 1,365,