Company: NXDT
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001437749-25-013177
Chunk: 10

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-25
Form: 424B3
Chunk 10
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 and each Old Series B Preferred Share will be converted into one share of New NXDT 9.00% Series B Cumulative Redeemable Preferred Stock, par value $0.001 per share, liquidation preference $25.00 per share (“New Series B Preferred Stock” and, together with the New Series A Preferred Stock, the “New Preferred Stock” and the New Preferred Stock, together with the New Common Stock, the “New Stock”).

Reasons for the Conversion

Our Board has determined that the Conversion is in the best interests of our shareholders because (1) the change would make us more comparable to our peers inasmuch as approximately 75% of the public companies that qualify as REITs are currently organized under Maryland law, and (2) in comparison to Delaware, Maryland has a comprehensive regulatory system governing, and courts with extensive expertise in addressing issues pertinent to, corporations operating as REITs. As a result of these considerations, our Board has concluded that the Conversion is advisable and in the best interest of Old NXDT and our shareholders.

Conditions to Completion of the Conversion; Termination of the Plan of Conversion

The completion of the Conversion is subject to the approval by the affirmative vote of a majority of the outstanding Old Voting Shares present or represented by proxy at the Annual Meeting and entitled to vote on the Conversion Proposal.

However, even if the Conversion Proposal is approved by the requisite vote of the shareholders of Old NXDT, the Board may terminate (or defer the implementation of) the Conversion if it determines that the Conversion is no longer advisable and in the best interests of the Old NXDT shareholders. The Board may deem the Conversion to be inadvisable if, among other things, the listing of the shares of the New Common Stock and the New Series A Preferred Stock on the NYSE is not approved. In the event of such termination, the Plan of Conversion will become void and Old NXDT will not have any liability to any other person or entity with respect to such termination (other than the expenses incurred in seeking to implement the same).

The Conversion will take effect at a time to be determined by or at the direction of the Board and set forth in the articles of conversion (the “Articles of Conversion”). The Articles of Conversion, the form of which are included as an exhibit to the Plan of Conversion that is attached as , will be filed with the State Department of Assessments and Taxation of Maryland (the “SDAT”) and will specify the date and time at which the Conversion will become effective