Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1821

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1821
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0.6) million for the six months ended June 30, 2023, which was a decrease of approximately $(5.5) million. The change in our AFFO between the six months ended June 30, 2024 and the six months ended June 30, 2023 primarily relates to the redemptions of the CLO positions, which reclassified the change in unrealized to realized gains (losses) of approximately $22.8 million.

Liquidity and Capital Resources

Our short-term liquidity requirements consist primarily of funds necessary to pay for debt maturities, operating expenses and other expenditures including:

| • | capital expenditures to continue the ongoing development of Cityplace Tower; |

| • | capital expenditures necessary to maintain the NHT hotel properties; |

| • | interest expense and scheduled principal payments on outstanding indebtedness (see “—Obligations and Commitments” below); |

| • | recurring maintenance necessary to maintain our properties; |

| • | distributions necessary to qualify for taxation as a REIT; |

| • | income taxes for taxable income generated by TRS entities; |

| • | acquisition of additional properties or investments; |

| • | advisory and administrative fees payable to our Adviser; |

| • | general and administrative expenses; |

| • | reimbursements to our Adviser; and |

| • | property management fees. |

We expect to meet our short-term liquidity requirements generally through our investment income, existing cash balance and, if necessary, future debt or equity issuances. As of June 30, 2024, we had $28.4 million of cash available to meet our short-term liquidity requirements. As of June 30, 2024, we also had $34.8 million of restricted cash held in reserve by the lender on the Cityplace debt. These reserves include escrows for property taxes and insurance, reserves for tenant improvements as well as required excess collateral. As of June 30, 2024, we also had $1.0 million of restricted cash held in reserve by the lender on the NexBank Revolver. These reserves are to be used for future interest payments on the

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debt facility. As of June 30, 2024, we also had $10.2 million of restricted cash reserves associated with the NHT segment for brand-mandated Performance Improvement Plan (“PIPs”) and furniture, fixtures and equipment upgrades arising from the