Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1607

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1607
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 Buildings and improvements                     |     |   |  128,616 |   |
| Construction in progress                       |     |   |    3,613 |   |
| Furniture, fixtures, and equipment             |     |   |   12,722 |   |
| Investments, at fair value                     |     |   |    5,000 |   |
| Cash and cash equivalents                      |     |   |   38,467 |   |
| Restricted cash                                |     |   |    5,065 |   |
| Prepaid and other assets                       |     |   |    4,001 |   |
| Right-of-use asset                             |     |   |    1,465 |   |
| Interest-rate cap                              |     |   |    1,064 |   |
| Mortgages payable                              |     |   | (114,640 | ) |
| Notes payable                                  |     |   |  (70,529 | ) |
| Accounts payable and other accrued liabilities |     |   |  (21,826 | ) |
| Accrued real estate taxes                      |     |   |   (1,233 | ) |
| Identifiable Net Assets Acquired               |     | $ |   14,458 |   |

3. Summary of Significant Accounting Policies

Basis of Accounting

Readers of this Quarterly Report on Form 10-Q ("Quarterly Report") should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2023, which are included in our 2023 Annual Report on Form 10-K ("2023 Annual Report"), filed with the SEC and also available on our website (nxdt.nexpoint.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements in our 2023 Annual Report for further discussion of our significant accounting policies and estimates. Information contained on, or accessible through, our website is not incorporated by reference into and does not constitute a part of this Quarterly Report or any other report or documents we file or furnish with the SEC.

Income Taxes

I.Canadian mutual fund status

NHT is a mutual fund trust pursuant to the Income Tax Act (Canada) (the “Tax Act”). Under current tax legislation, a mutual fund trust that is not a specified