Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 270

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 270
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 each of NHT’s hotels based on the fair market value we determine under the income capitalization approach and DCF approach to the implied price per room derived from hotel transactions occurring in the last three years. We assessed each hotel based on location and quality. |

| b) | Comparable company analysis: We compared the most relevant publicly traded companies in the U.S. to NHT and considered appropriate ranges of funds from operations (“FFO”) multiples, adjusted funds from operations (“AFFO”) multiples, and price to NAV. |

| c) | Precedent transaction analysis: We compared the most relevant precedent transactions in the United States to NHT occurring in the last seven years and considered appropriate ranges of FFO multiples, AFFO multiples, price to NAV, and takeover premiums. |

Multiples implied by public company comparables and precedent transactions were strictly used to support our conclusions under the NAV approach.

| 8.03 | Our opinion does not consider the legal and tax assessment of the transaction structure. |

| 8.04 | Our financial analysis must be considered as a whole and that selecting portions of our analyses, or the factors considered by us, without considering all analyses and factors together, could create a misleading view of the process underlying this Opinion. |

<div align='center'>E-10</div>

| 9.0 | NAV approach |

| 9.01 | The NAV approach assigns a distinct value to each of the components of NHT’s total assets and liabilities, employing a suitable methodology for each element, and subtracts the total liabilities from the overall asset values. We adopted the fair market value of the assets and liabilities, as set out below. |

Hotel properties

| 9.02 | In assessing the value of the Hotels, Doane Grant Thornton considered an income capitalization approach and a DCF approach. |

Income capitalization approach

| 9.03 | For the income capitalization approach, we capitalized sustainable net operating income (“NOI”) projections (after deducting replacement reserves, for each hotel). We capitalized FY25F NOI for five hotels and FY26F NOI for two hotels to capture the full impact of growth capital expenditures that are expected to be incurred during FY25F. Capitalization rates for each property were determined based on our understanding of each of the hotels, research of publicly available capitalization rate reports, and discussions with Management. Publicly available capitalization rate reports bifurcate capitalization rates by tier, state, and/or type (i.e. full service, limited-service