Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 18

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 18
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 may not be able to pay dividends on the Series B Preferred Shares. Furthermore, any new Series A Preferred Shares or other preferred shares on parity with the Series A Preferred Shares and the Series B Preferred Shares will substantially increase the cash required to continue to pay cash dividends at stated levels. Any common shares or preferred shares that may be issued in the future to finance acquisitions, upon redemption of OP Units, upon vesting of equity awards or otherwise, would have a similar effect. In addition, Delaware law and agreements to which we are a party may impose requirements that may restrict our ability to pay dividends on our Series B Preferred Shares.

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Your interests in our Series B Preferred Shares or the rights of the holders of our common shares (which you may become upon conversion of or receipt of redemption payments in common shares for any of your Series B Preferred Shares) could be subordinated and/or diluted by the incurrence of additional debt or the issuance of additional preferred shares or common shares, as applicable, and other transactions.

As of September 30, 2024, our total indebtedness was approximately $367.3 million on a consolidated basis, inclusive of $262.5 million of mortgage indebtedness and $104.8 million of corporate indebtedness. The Series B Preferred Shares and common shares (which you may acquire upon conversion of or receipt of redemption payments in common shares for any of your Series B Preferred Shares) are subordinate, as to distributions and amounts payable upon liquidation, to all of our existing and future debt and liabilities and those of our subsidiaries. Our future debt may include restrictions on our ability to pay dividends to preferred shareholders and common shareholders in the event of a default under the debt facilities or under other circumstances.

In addition, our Declaration currently authorizes the issuance of an unlimited number of shares of beneficial interest, or capital shares, of which 4,800,000 have been classified as Series A Preferred Shares and 16,000,000 have been classified as Series B Preferred Shares. Subject to limitations prescribed by Delaware law and our Declaration, our Board is authorized to issue, from our authorized but unissued shares of beneficial interests, common shares and preferred shares in such classes or series as our Board may determine and to establish from time to time the number of shares to be included in any such class or series. We may issue common shares and additional Series B Preferred Shares as well as Series A Preferred Shares or other preferred shares on parity with the Series B Preferred Shares without the consent of the holders of