DONDERO JAMES D 4

What Happened

• James D. Dondero, President and reported 10% owner of NexPoint Diversified Real Estate Trust (NXDT), had 73,125 derivative units converted into common shares on March 18, 2026 (transaction code M — exercise/conversion of derivative). The filing also reports the disposition of 73,125 shares on the same date at $0.00 per share (proceeds $0). The Form 4 was filed March 20, 2026.

Key Details

• Transaction date: March 18, 2026; Form 4 filed: March 20, 2026 (timely filing).
• Transaction type: M = exercise/conversion of derivative (restricted share units per footnote F1).
• Shares converted/acquired: 73,125; shares disposed: 73,125 at $0.00 (proceeds $0).
• Shares owned after transaction: not specified on the summary provided (see full filing/footnotes for detailed holdings).
• Relevant footnotes: F1 describes that each restricted share unit (RSU) represents a right to one common share; F8 notes a 292,500 RSU grant on March 18, 2024 with staggered vesting (one-fourth vested March 18, 2026). Other footnotes (F3–F7) list indirect holdings and disclaimers regarding beneficial ownership through related entities and trusts.

Context

• This was a conversion/settlement of restricted share units (derivative-to-share conversion). The filing reports an immediate disposition of the same number of shares at $0.00; the Form 4 does not explain the mechanism or reason for the $0.00 disposition (e.g., net settlement, transfer, or other administrative action). As a 10% owner and company insider, Dondero’s holdings include both direct and indirect positions listed in the footnotes; these disclosures are common for executives with ownership through related entities or trusts.