Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1766

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1766
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 |  18.00 | %  |     |   |      — |   |     |       |  28.00 | %  |     |         |  (22.80 | )% |     |            |         |
|                   |     | Market Approach                |     | Capitalization Rate                                   |     |                   |   5.00 | %  |     |   |      — |   |     |       |   5.50 | %  |     |         |   (5.22 | )% |     |            |         |
|                   |     | Recent Transaction             |     | Price per Share                                       |     |                   |        |    |     | $ |  21.59 |   |     |       |        |    |     |         |         |    |     |            |         |
| Preferred Shares  |     | Recent Transaction             |     | Price per Share                                       |     |                   |        |    |     | $ |  1,000 |   |     |       |        |    |     |         |         |    |     |            |  66,268 |
| Senior Loan       |     | Discounted Cash Flow           |     | Discount Rate                                         |     |                   |  12.30 | %  |     |   |      — |   |     |       |  20.00 | %  |     |         |  (16.15 | )% |     |            |  46,353 |

<div align='center'>28

I-1394</div>

| Total |     | $ | 567,640 |

Derivative Financial Instruments and Hedging Activities

The NHT segment manages interest rate risks primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments.

The NHT segment performs market valuations on its derivative financial instruments. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are