Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 40

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 40
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 to the REIT (see above under “Matters to be Considered at the Meeting–4. Approval of Amendments to COVID Loans - Exemption from Formal Valuation Requirement”).

MI 61-101 requires that a related party transaction be subject to “minority approval” (as defined in MI 61-101) of every class of “affected securities” of the issuer, in each case voting separately as a class. As such, the resolution approving the Amendments to the COVID Loans (the “Amended COVID Loans Resolution”) will require the affirmative vote of at least a majority of the votes cast by the Unitholders (the “Minority Unitholders”), present in person or represented by proxy at the Meeting, excluding the votes attached to the Unitholders that are beneficially owned or over which control or direction is exercised by Mr. Dondero, and any “related party” of the REIT within the meaning of MI 61-101 (subject to the exceptions set out therein) and any person acting jointly or in concert with the foregoing in respect of the Amended COVID Loans Resolution. The full text of the Amended COVID Loans Resolution is set forth in Appendix B to this Information Circular.

For purposes of the minority approval requirements of MI 61-101, to the knowledge of the REIT after reasonable inquiry, the votes attached to the 23,246,795 Units beneficially owned, directly or indirectly, or over which control or direction is exercised by Mr. Dondero, or his “related parties” or “joint actors” (as defined in MI 61-101) (such entities, the “Interested Unitholders”), representing, as of the Record Date, approximately 79.5% of the issued and outstanding Units, will be excluded in determining whether minority approval for the Amended COVID Loans Resolution is obtained.

As of the Record Date, the Units to be excluded for the purposes of minority approval requirement are set out below:

| Unitholder(1)                           |               Number of Units 
 Owned, Controlled or Directed | Percentage of Outstanding Units(2) |
| NexPoint Real Estate Opportunities, LLC |                    15,747,388 | 53.65%                             |
| The Dugaboy Investment Trust            |                     5,394,662 | 18.38%                             |
| NHT Holdco, LLC                         |                     1,045,848 | 3.56%                              |
| Governance RE Ltd.                      |                     1,