Richards Paul 4

What Happened

• Paul Richards, Chief Financial Officer (also EVP-Finance, Treasurer and Assistant Secretary) of NexPoint Diversified Real Estate Trust (NXDT), had restricted share units vest on March 18, 2026. The filing shows a conversion/exercise of derivative awards resulting in 8,989 shares acquired and 5,072 shares withheld to cover tax obligations (withholding price reported at $4.41 per share, totaling $22,368). A separate derivative conversion line for 8,929 shares reported at $0 also appears in the filing (see Key Details for notes on mechanics). This was an award/vesting event (not an open‑market purchase or sale).

Key Details

• Transaction date: March 18, 2026.
• Conversion/acquisition reported: 8,989 shares (exercise/conversion of derivative, code M).
• Tax withholding: 5,072 shares withheld at $4.41 each = $22,368 (code F).
• Additional derivative line: 8,929 shares reported as disposed at $0 (code M) — filing shows both acquisition and a $0 derivative disposition; likely reflects internal conversion/settlement mechanics tied to RSU settlement.
• Net shares added to Richards’ holdings (based on the reported numbers): approximately 3,917 shares (8,989 acquired minus 5,072 withheld).
• Footnotes: Each restricted share unit equals a right to one common share. The 35,714 RSUs granted March 18, 2024 vest one‑fourth each year; settlement generally occurs within 10 days of vesting and may be in cash at the Compensation Committee’s discretion.
• Timeliness: Filing covers the March 18, 2026 vesting and was filed March 20, 2026—no late filing indication.

Context

• This was a routine RSU vesting/settlement and tax‑withholding event, not an open‑market buy or discretionary sale. For derivative/RSU transactions, it’s common to see shares withheld to satisfy tax obligations (a form of disposition). The filing does not provide total shares owned after the transaction; that information was not disclosed in the report.