NEXPOINT DIVERSIFIED REAL ESTATE TRUST 8-K

What Happened
NexPoint Diversified Real Estate Trust (the Company) reported that its operating partnership, NexPoint Diversified Real Estate Trust OP, L.P. (the OP), entered a participation side letter with NexPoint Real Estate Finance Operating Partnership, L.P. (NREF) effective March 30, 2026. Under the Side Letter the OP purchased an undivided participation interest in $962,000 principal of a secured promissory note (the NSP Note) issued to NREF by NexPoint Storage Partners Operating Company, LLC (NSP OC). The NSP Note allows NSP OC to borrow up to $40.0 million ( $22.7 million outstanding as of April 3, 2026) and bears interest at 14% per year payable in kind; it is interest-only and matures January 16, 2031.

Key Details

• OP purchased a $962,000 participation interest in the NSP Note, effective March 30, 2026.
• NSP Note: up to $40.0M aggregate principal; $22.7M outstanding as of April 3, 2026.
• Interest: 14.0% per annum, payable in kind (added to principal), interest-only, maturity January 16, 2031.
• Participation rights: OP, Ohio State Life Insurance Co. (OSL) and other NSP note purchasers (HFRO, HGLB, NRES) may participate in future advances pro rata; NREF must fund any portion not taken by participants.
• Related-party connection: the Company owns ~53.02% of NSP common stock and has guaranteed certain NSP obligations; the other note purchasers and NREF are advised or managed by affiliates of the Company’s external adviser, and OSL may be an affiliate through common beneficial ownership.

Why It Matters
This filing discloses a material financing participation and related-party connections that affect the Company’s exposure to NexPoint Storage Partners. The participation increases the OP’s direct exposure to NSP’s secured debt (a $962k share) and preserves the OP’s right to join future advances. Investors should note the size of outstanding debt on the NSP Note ($22.7M) versus the $40M facility, the high 14% PIK interest rate, the January 2031 maturity, and the Company’s equity ownership and guarantee ties to NSP—facts relevant to assessing counterparty and credit exposure.