DONDERO JAMES D 4

What Happened
James D. Dondero, President and a reported 10% owner of NexPoint Diversified Real Estate Trust (NXDT), had 36,692 restricted share units (RSUs) vest and convert into common shares on June 10, 2026. The Form 4 shows 36,692 shares as “acquired” via exercise/conversion of a derivative and the same 36,692 shares as “disposed” at $0.00 (derivative). Because the acquired and disposed amounts are equal, there is no net increase in his reported beneficial ownership from this transaction.

Key Details

• Transaction date: 2026-06-10; Form 4 filed: 2026-06-12 (filed timely).
• Reported amounts: 36,692 shares acquired (derivative); 36,692 shares disposed at $0.00 (derivative). Acquired price listed as N/A.
• Net effect: no net change in shares held (acquired and disposed amounts match).
• Relevant footnotes: F1 explains each restricted share unit equals a contingent right to one common share. F8 notes 146,768 RSUs were granted on 6/10/2025 and one-fourth (36,692) vested on 6/10/2026; future vesting dates are listed. Settlement generally occurs within 10 days of vesting and may be cash at the Compensation Committee’s discretion.
• Ownership context: filing includes multiple entities and custodial holdings tied to Mr. Dondero (F3–F7); he disclaims beneficial ownership of certain holdings except to the extent of his pecuniary interest.

Context and investor takeaways

• This was a derivative/vesting event (RSU conversion), not an open-market buy or sale. Such entries often reflect compensation vesting and routine tax/settlement mechanics rather than an expression of buy/sell sentiment.
• The matching acquired and disposed lines at $0.00 are consistent with immediate settlement or netting related to the RSU vesting (the filing notes settlement may be in cash), but the Form 4 does not show a cash amount for any share sale.