Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 112

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 112
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 real estate, including dependence on tenants and compliance with laws and regulations related to ownership of real property; |

| ● | Risks associated with NXDT’s investment in diverse issuers, industries and investment forms and classes, both in real estate and in non-real estate sectors, including common equity, preferred equity, options or other derivatives, short sale contracts, secured loans of securities, reverse repurchase agreements, structured finance securities, below investment grade senior loans, bonds, convertible instruments, joint ventures, and emerging markets; |

| ● | Fluctuations in interest rate and credit spreads could reduce NXDT’s ability to generate income on NXDT’s loans and other investments, which could lead to a significant decrease in NXDT’s results of operations, cash flows and the market value of NXDT’s investments; |

| ● | The use of leverage to finance NXDT’s investments; |

| ● | Risks associated with NXDT’s loans and investments in debt instruments, including senior loans, mezzanine loans, collateralized loan obligations, and structured finance securities; |

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| ● | NXDT’s loans and investments are concentrated in terms of type of interest, geography, asset types, industry and sponsors and may continue to be so in the future; |

| ● | NXDT has a substantial amount of indebtedness which may limit NXDT’s financial and operating activities and may adversely affect NXDT’s ability to incur additional debt to fund future needs; |

| ● | NXDT has limited operating history as a standalone company and may not be able to operate NXDT’s business successfully, find suitable investments, or generate sufficient revenue to make or sustain distributions to NXDT’s shareholders; |

| ● | NXDT may not replicate the historical results achieved by other entities managed or sponsored by affiliates of NexPoint, members of the NXDT Adviser’s management team or their affiliates. |

| ● | NXDT is dependent upon the NXDT Adviser and its affiliates to conduct NXDT’s day-to-day operations; thus, adverse changes in their financial health or NXDT’s relationship with them could cause NXDT’s operations to suffer; |

| ● | The NXDT Adviser and its affiliates face conflicts of interest, including significant conflicts created by the NXDT Adviser’s compensation arrangements with NXDT, including compensation which may be required to be paid to the NXDT Adviser if NXDT’s advisory agreement is terminated, which could result in decisions that are not in the best interests of NXDT’s shareholders;