Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 31

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 31
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, which is an affiliate of the Adviser, based upon the following primary factors at the time of the offering: the economic conditions in and future prospects for the industry in which we compete; our prospects for future earnings; an assessment of our management; the state of our development; the prevailing condition of the equity securities market; the state of the market for non-traded REIT securities distributed through independent broker-dealers and registered investment advisers; and market valuations of public companies considered comparable to us. Because the offering price is not based upon any independent valuation, the offering price is not indicative of the proceeds that an investor in the Series B Preferred Shares would receive upon liquidation.

The dealer manager’s relationship with us and the payment to it of substantial commissions and fees in connection with this offering may cause a conflict of interest and may hinder the dealer manager’s performance of its due diligence obligations.

In connection with this offering, we will enter into a dealer manager agreement with NexPoint Securities, an affiliate of the Adviser, which will receive selling commissions and a dealer manager fee, all or a portion of which it may re-allow to participating broker-dealers. As dealer manager, NexPoint Securities has certain obligations under federal securities laws to undertake a due diligence investigation with respect to the parties involved in this offering. NexPoint Securities’ affiliation with the Adviser and us may cause a conflict of interest for NexPoint Securities in carrying out its due diligence obligations. Thus, you will not have the benefit of an independent review and investigation of the type normally performed by an unaffiliated, independent underwriter in connection with a securities offering. The absence of an independent due diligence review and investigation by NexPoint Securities increases the risk and uncertainty of your investment because NexPoint Securities may not have uncovered facts that would be important to a potential investor in the Series B Preferred Shares. In addition, the payment of substantial commissions and fees to the dealer manager, which is an affiliate of our Adviser, may increase the risk that you will not earn a profit on your investment.

If we fail to pay dividends to holders of our preferred shares or otherwise lose our eligibility to file registration statements on Form S-3 with the SEC, it may impair our ability to raise capital in this offering.

This prospectus supplement and accompanying prospectus are part of a registration statement on Form S-3 that we have filed with the SEC. If we do not pay dividends to holders of our preferred shares or otherwise lose our Form S-3 eligibility, it may impair our ability to raise capital in this