Morgan Stanley (NXDT) drops below 5% ownership in NexPoint Diversified Real Estate Trust

Rhea-AI Filing Summary

Morgan Stanley and Morgan Stanley Smith Barney LLC report their current positions in NexPoint Diversified Real Estate Trust common shares. Morgan Stanley is shown with 2,220,969 shares subject to shared dispositive power, representing 4.3% of the outstanding class, and shared voting power over 49,030 shares. Morgan Stanley Smith Barney LLC is shown with shared dispositive power over 2,171,941 shares and shared voting power over 2 shares, representing 4.2% of the class.

Both entities state that, as of the reporting date, each has ceased to be the beneficial owner of more than five percent of NexPoint’s common shares. Voting and dispositive powers are held on a shared basis, with no sole voting or sole dispositive power reported for either entity.

Key Figures

Morgan Stanley shared voting power: 49,030 shares Morgan Stanley shared dispositive power: 2,220,969 shares Morgan Stanley ownership percentage: 4.3% +3 more

6 metrics

Morgan Stanley shared voting power 49,030 shares Shares with shared voting power for Morgan Stanley

Morgan Stanley shared dispositive power 2,220,969 shares Shares with shared dispositive power for Morgan Stanley

Morgan Stanley ownership percentage 4.3% Percent of NexPoint common share class

MSSB shared voting power 2 shares Shares with shared voting power for Morgan Stanley Smith Barney LLC

MSSB shared dispositive power 2,171,941 shares Shares with shared dispositive power for Morgan Stanley Smith Barney LLC

MSSB ownership percentage 4.2% Percent of NexPoint common share class

Key Terms

beneficial owner, shared voting power, shared dispositive power, dispositive power, +1 more

5 terms

beneficial owner financial

"has ceased to be the beneficial owner of more than five percent"

A beneficial owner is the person who ultimately owns or controls a financial asset or property, even if their name isn't directly on official documents. Think of it like someone who secretly holds the keys to a safe deposit box—others may appear to have access, but the true owner is the one who benefits from what's inside. Identifying beneficial owners helps ensure transparency and prevent illegal activities like money laundering or fraud.

shared voting power financial

"6 | Shared Voting Power 49,030.00"

Shared voting power occurs when two or more parties jointly have the right to vote or decide how a block of company shares is cast, like co-owners who must agree before moving a piece of furniture. Investors care because who controls voting rights affects board elections, major corporate decisions and takeover outcomes, and shared control can alter regulatory disclosures and the practical influence any holder has over a company’s direction and value.

shared dispositive power financial

"8 | Shared Dispositive Power 2,220,969.00"

dispositive power financial

"Sole Dispositive Power 0.00 8 | Shared Dispositive Power 2,220,969.00"

Dispositive power is the authority to decide the final outcome of an asset, legal claim, contract, or corporate action — in effect the power to dispose of or resolve something. For investors it matters because whoever holds that authority can determine who gets paid, who controls an asset or vote, and how risks and returns are allocated; think of it like holding the key that lets you lock in the winner or loser in a deal.

parent holding company financial

"If a parent holding company has filed this schedule"

FAQ

What ownership in NXDT does Morgan Stanley currently report?

Morgan Stanley reports 2,220,969 NexPoint Diversified Real Estate Trust shares with shared dispositive power, representing 4.3% of the common share class, and shared voting power over 49,030 shares as of the reported date.

What stake in NXDT does Morgan Stanley Smith Barney LLC disclose?

Morgan Stanley Smith Barney LLC reports shared dispositive power over 2,171,941 NexPoint Diversified Real Estate Trust shares and shared voting power over 2 shares, representing 4.2% of the common share class at the time of the filing.

Have Morgan Stanley entities fallen below 5% ownership of NXDT?

Yes. Both Morgan Stanley and Morgan Stanley Smith Barney LLC state they have ceased to be beneficial owners of more than five percent of NexPoint Diversified Real Estate Trust’s common share class as of the reporting date.

Does Morgan Stanley report sole voting or dispositive power over NXDT shares?

No. Morgan Stanley reports 0 shares with sole voting power and 0 shares with sole dispositive power in NexPoint Diversified Real Estate Trust, indicating all reported authority is held on a shared basis.

What is the CUSIP and security type for NXDT in this report?

The security is NexPoint Diversified Real Estate Trust Common Shares with CUSIP number 65340G205, as identified in the ownership disclosure for Morgan Stanley and Morgan Stanley Smith Barney LLC.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 08/12/2026 - 05:12 PM Accepted by SEC EDGAR 08/12/2026 - 05:11 PM Learn about SEC filing dates

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G

UNDER THE SECURITIES EXCHANGE ACT OF 1934

(Amendment No. 3)

NEXPOINT DIVERSIFIED REAL ESTATE TRUST

(Name of Issuer)

Common Shares

(Title of Class of Securities)

65340G205

(CUSIP Number)

06/30/2026

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

Rule 13d-1(b)

Rule 13d-1(c)

Rule 13d-1(d)

schemaVersion:

SCHEDULE 13G

CUSIP Number(s): 65340G205

1

Names of Reporting Persons

Morgan Stanley

2

Check the appropriate box if a member of a Group (see instructions)

(a)
(b)

3

Sec Use Only

4

Citizenship or Place of Organization

DELAWARE

Number of Shares Beneficially Owned by Each Reporting Person With:

5	Sole Voting Power 0.00
6	Shared Voting Power 49,030.00
7	Sole Dispositive Power 0.00
8	Shared Dispositive Power 2,220,969.00

9

Aggregate Amount Beneficially Owned by Each Reporting Person

2,220,969.00

10

Check box if the aggregate amount in row (9) excludes certain shares (See Instructions)

11

Percent of class represented by amount in row (9)

4.3 %

12

Type of Reporting Person (See Instructions)

HC, CO

Comment for Type of Reporting Person: As of the date hereof, Morgan Stanley has ceased to be the beneficial owner of more than five percent of the class of securities.

SCHEDULE 13G

CUSIP Number(s): 65340G205

1

Names of Reporting Persons

Morgan Stanley Smith Barney LLC

2

Check the appropriate box if a member of a Group (see instructions)

(a)
(b)

3

Sec Use Only

4

Citizenship or Place of Organization

DELAWARE

Number of Shares Beneficially Owned by Each Reporting Person With:

5	Sole Voting Power 0.00
6	Shared Voting Power 2.00
7	Sole Dispositive Power 0.00
8	Shared Dispositive Power 2,171,941.00

9

Aggregate Amount Beneficially Owned by Each Reporting Person

2,171,941.00

10

Check box if the aggregate amount in row (9) excludes certain shares (See Instructions)

11

Percent of class represented by amount in row (9)

4.2 %

12

Type of Reporting Person (See Instructions)

BD, IA, CO

Comment for Type of Reporting Person: As of the date hereof, Morgan Stanley Smith Barney LLC has ceased to be the beneficial owner of more than five percent of the class of securities.

SCHEDULE 13G

Item 1.
(a)	Name of issuer: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
(b)	Address of issuer's principal executive offices: 300 CRESCENT COURT, SUITE 700, DALLAS, TX, 75201
Item 2.
(a)	Name of person filing: 1: Morgan Stanley 2: Morgan Stanley Smith Barney LLC
(b)	Address or principal business office or, if none, residence: 1: 1585 Broadway, New York, NY 10036 ;2: 1585 Broadway, New York, NY 10036
(c)	Citizenship: 1: Delaware 2: Delaware
(d)	Title of class of securities: Common Shares
(e)	CUSIP No.: 65340G205
Item 3.	If this statement is filed pursuant to §§ 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:
(a)	Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o);
(b)	Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c);
(c)	Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c);
(d)	Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8);
(e)	An investment adviser in accordance with § 240.13d-1(b)(1)(ii)(E);
(f)	An employee benefit plan or endowment fund in accordance with § 240.13d-1(b)(1)(ii)(F);
(g)	A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);
(h)	A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);
(i)	A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);
(j)	A non-U.S. institution in accordance with § 240.13d-1(b)(1)(ii)(J). If filing as a non-U.S. institution in accordance with § 240.13d-1(b)(1)(ii)(J), please specify the type of institution:
(k)	Group, in accordance with Rule 240.13d-1(b)(1)(ii)(K).
Item 4.	Ownership
(a)	Amount beneficially owned: See the response(s) to Item 9 on the attached cover page(s).
(b)	Percent of class: 4.3 %
(c)	Number of shares as to which the person has:
	(i) Sole power to vote or to direct the vote: See the response(s) to Item 5 on the attached cover page(s).
	(ii) Shared power to vote or to direct the vote: See the response(s) to Item 6 on the attached cover page(s).
	(iii) Sole power to dispose or to direct the disposition of: See the response(s) to Item 7 on the attached cover page(s).
	(iv) Shared power to dispose or to direct the disposition of: See the response(s) to Item 8 on the attached cover page(s).
Item 5.	Ownership of 5 Percent or Less of a Class.
	Ownership of 5 percent or less of a class
Item 6.	Ownership of more than 5 Percent on Behalf of Another Person.
	Not Applicable
Item 7.	Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company or Control Person.
	If a parent holding company has filed this schedule, pursuant to Rule 13d-1(b)(ii)(G), so indicate under Item 3(g) and attach an exhibit stating the identity and the Item 3 classification of the relevant subsidiary. If a parent holding company has filed this schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d), attach an exhibit stating the identification of the relevant subsidiary. See Exhibit 99.2
Item 8.	Identification and Classification of Members of the Group.
	Not Applicable
Item 9.	Notice of Dissolution of Group.
	Not Applicable

Item 10.

Certifications:

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under § 240.14a-11. * In Accordance with the Securities and Exchange Commission Release No. 34-39538 (January 12, 1998) (the "Release"), this filing reflects the securities beneficially owned, or that may be deemed to be beneficially owned, by certain operating units (collectively, the "MS Reporting Units") of Morgan Stanley and its subsidiaries and affiliates (collectively, "MS"). This filing does not reflect securities, if any, beneficially owned by any operating units of MS whose ownership of securities is disaggregated from that of the MS Reporting Units in accordance with the Release.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Morgan Stanley

Signature:	Claire Gordon
Name/Title:	Authorized Signatory, Morgan Stanley
Date:	08/12/2026

Morgan Stanley Smith Barney LLC

Signature:	David Galasso
Name/Title:	Authorized Signatory, Morgan Stanley Smith Barney LLC
Date:	08/12/2026

Exhibit Information

EXHIBIT NO. EXHIBITS ------------------ ------------------------------------ 99.1 Joint Filing Agreement 99.2 Item 7 Information * Attention. Intentional misstatements or omissions of fact constitute federal criminal violations (see 18 U.S.C. 1001).