Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 27

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 27
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 to liquidate all or a portion of our portfolio quickly, for example in order to complete a cash redemption of Series B Preferred Shares in connection with a Change of Control, we may realize significantly less than the value at which we have previously recorded our investments.

Holders of the Series B Preferred Shares will be subject to inflation risk.

Inflation is the reduction in the purchasing power of money resulting from the increase in the price of goods and services. Inflation risk is the risk that the inflation-adjusted, or “real,” value of an investment in preferred shares or the income from that investment will be worth less in the future. As inflation occurs, the real value of the Series B Preferred Shares and dividends payable on such shares decline.

Holders of the Series B Preferred Shares have extremely limited voting rights.

The voting rights of holders of Series B Preferred Shares will be extremely limited. Our common shares and Series A Preferred Shares are the only classes or series of our shares carrying full voting rights. Holders of Series B Preferred Shares have certain limited voting rights with respect to amendments to our Declaration and the Series B Statement of Preferences in a manner that materially and adversely affects the rights of the holders of Series B Preferred Shares and with respect to the authorization, creation or increase in the number of shares of any class or series of our beneficial interests expressly designated as ranking senior to the Series B Preferred Shares as to distribution rights and rights upon our liquidation, dissolution, termination, cancellation or winding up. Other than in limited circumstances, holders of Series B Preferred Shares will generally not have voting rights.

The amount of the liquidation preference is fixed and holders of Series B Preferred Shares will have no right to receive any greater payment.

The payment due upon liquidation is fixed at the liquidation preference, which is equal to the $25.00 Stated Value, subject to appropriate adjustment in relation to any recapitalizations, share dividends, share splits, share combinations, reclassifications or other similar events which affect the Series B Preferred Shares, plus an amount equal to accrued but unpaid cash dividends thereon, if any, to but not including the date of payment, whether or not authorized or declared. If, in the case of our liquidation, there are remaining assets to be distributed after payment of this amount, you will have no right to receive or to participate in these amounts.

Our Declaration and the Series B Statement of Preferences contain restrictions upon ownership and transfer of such preferred shares and common shares which may be issued upon the redemption of Series B Preferred Shares, at the Company