Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 151

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 151
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 that the IRS or any court will agree with this position. U.S. Holders should be aware that the completion of the Transaction is not conditioned on the receipt of an opinion of counsel that the Company Merger (or any other aspect of the Transaction) qualify as tax-free transactions. Neither the REIT, New NHT nor NXDT has requested or will request a ruling from the IRS with respect to any aspect of the U.S. federal income tax treatment of the Transaction.

The treatment of the Company Merger with respect to a Non-U.S. Holder generally is expected to correspond to the treatment of the Restructuring with respect to Non-U.S. Holders as described above. If the Company Merger qualifies as an A Reorg, the treatment of the Company Merger with respect to a Non-U.S. Holder exchanging New NHT Shares for NXDT Common Shares generally is expected to correspond to the treatment of the Restructuring with respect to Non-U.S. Holders exchanging Units for New NHT Shares therein (assuming the Restructuring qualifies as an F Reorg). If the Company Merger does not qualify as an A Reorg, the treatment of the Company Merger with respect to a Non-U.S. Holder exchanging New NHT Shares for NXDT Common Shares generally is expected to correspond to the treatment of the Restructuring with respect to Non-U.S. Holders exchanging Units for New NHT Shares therein (assuming the Restructuring does not qualify as an F Reorg). If the Restructuring fails to qualify as an F Reorg and the Company Merger fails to qualify as an A Reorg, it generally is expected that each of the Restructuring and Company Merger will be treated as a taxable exchange as discussed above, however in such a situation it generally is expected that any additional gain recognized with respect to the Company Merger (after recognition of gain with respect to the Restructuring) would be immaterial.

Non-U.S. Holders should consult their tax advisers regarding the U.S. federal income tax consequences of the Company Merger if it does not qualify as an A Reorg (including the requirement to recognize gain in that event).

Consequences of a Redemption to Non-U.S. Holders

A Redemption generally will be treated under Section 302 of the Code as a distribution (and taxable as a dividend to the extent of the REIT’s current and accumulated earnings and profits) unless the redemption satisfies one of the tests set forth in Section 302(b) of the Code to