SEC Form SC 13G filed by NexPoint Diversified Real Estate Trust

2/11/22 3:33:52 PM ET

Real Estate Investment Trusts

Real Estate

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SC 13G 1 NexpointDiversifiedNXDT.txt MS INITIAL UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No.)* NEXPOINT DIVERSIFIED REAL ESTATE TRUST ----------------------------------------------------- (Name of Issuer) Common Shares of Beneficial Interest ----------------------------------------------------- (Title of Class of Securities) 65340G205 ----------------------------------------------------- (CUSIP Number) December 31, 2021 ----------------------------------------------------- (Date Of Event which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [x] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1745 (3-06) CUSIP No.65340G205 13G Page 2 of 8 Pages -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Morgan Stanley I.R.S. # 36-3145972 -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY: -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware. -------------------------------------------------------------------------------- NUMBER OF 5. SOLE VOTING POWER: SHARES 0 BENEFICIALLY -------------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER: EACH 29,500 REPORTING -------------------------------------------------------------- PERSON 7. SOLE DISPOSITIVE POWER: WITH: 0 -------------------------------------------------------------- 8. SHARED DISPOSITIVE POWER: 2,037,005 -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 2,037,005 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES: [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9): 5.5% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON: HC, CO -------------------------------------------------------------------------------- CUSIP No.65340G205 13G Page 3 of 8 Pages -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Morgan Stanley Smith Barney LLC I.R.S. # 26-4310844 -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC USE ONLY: -------------------------------------------------------------------------------- 4. CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware. -------------------------------------------------------------------------------- NUMBER OF 5. SOLE VOTING POWER: SHARES 0 BENEFICIALLY -------------------------------------------------------------- OWNED BY 6. SHARED VOTING POWER: EACH 0 REPORTING -------------------------------------------------------------- PERSON 7. SOLE DISPOSITIVE POWER: WITH: 0 -------------------------------------------------------------- 8. SHARED DISPOSITIVE POWER: 2,007,505 -------------------------------------------------------------------------------- 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 2,007,505 -------------------------------------------------------------------------------- 10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES: [ ] -------------------------------------------------------------------------------- 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9): 5.4% -------------------------------------------------------------------------------- 12. TYPE OF REPORTING PERSON: BD -------------------------------------------------------------------------------- CUSIP No.65340G205 13G Page 4 of 8 Pages -------------------------------------------------------------------------------- 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 UNITED STATES OF AMERICA -------------------------------------------------------------- Item 2. (a) Name of Person Filing: (1) Morgan Stanley (2) Morgan Stanley Smith Barney LLC -------------------------------------------------------------- (b) Address of 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 of Beneficial Interest -------------------------------------------------------------- (e) CUSIP Number: 65340G205 -------------------------------------------------------------- Item 3. If this statement is filed pursuant to Sections 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a: (a) [x] 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 Sections 240.13d-1(b)(1)(ii)(E); (f) [ ] An employee benefit plan or endowment fund in accordance with Section 240.13d-1(b)(1)(ii)(F); (g) [x] A parent holding company or control person in accordance with Section 240.13d-1(b)(1)(ii)(G); (h) [ ] A savings association 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 section 240.13d-1(b)(1)(ii)(J); (k) [ ] Group, in accordance with sections 240.13d-1(b)(1)(ii)(K). If filing as a non-U.S. institution in accordance with sections 240.13d-1(b)(1)(ii)(J), please specify the type of institution: Not Applicable CUSIP No.65340G205 13G Page 5 of 8 Pages -------------------------------------------------------------------------------- Item 4. Ownership as of December 31, 2021.* (a) Amount beneficially owned: See the response(s) to Item 9 on the attached cover page(s). (b) Percent of Class: See the response(s) to Item 11 on the attached cover page(s). (c) Number of shares as to which such 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 Five Percent or Less of a Class. Not Applicable Item 6. Ownership of More Than Five 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. 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. Certification. (1) 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. * 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. CUSIP No.65340G205 13G Page 6 of 8 Pages -------------------------------------------------------------------------------- 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. Date: February 11, 2022 Signature: /s/ Christopher O'Hara -------------------------------------------------------------------- Name/Title: Christopher O'Hara/Authorized Signatory, Morgan Stanley -------------------------------------------------------------------- MORGAN STANLEY Date: February 11, 2022 Signature: /s/ David Galasso -------------------------------------------------------------------- Name/Title: David Galasso/Authorized Signatory, Morgan Stanley Smith Barney LLC -------------------------------------------------------------------- Morgan Stanley Smith Barney LLC EXHIBIT NO. EXHIBITS PAGE ----------- ---------- ---- 99.1 Joint Filing Agreement 7 99.2 Item 7 Information 8 * Attention. Intentional misstatements or omissions of fact constitute federal criminal violations (see 18 U.S.C. 1001). CUSIP No.65340G205 13G Page 7 of 8 Pages -------------------------------------------------------------------------------- EXHIBIT NO. 99.1 TO SCHEDULE 13G JOINT FILING AGREEMENT --------------------------------------------------- February 11, 2022 --------------------------------------------------- MORGAN STANLEY and Morgan Stanley Smith Barney LLC hereby agree that, unless differentiated, this Schedule 13G is filed on behalf of each of the parties. MORGAN STANLEY BY: /s/ Christopher O'Hara --------------------------------------------------------------------- Christopher O'Hara/Authorized Signatory, Morgan Stanley Morgan Stanley Smith Barney LLC BY: /s/ David Galasso --------------------------------------------------------------------- David Galasso/Authorized Signatory, Morgan Stanley Smith Barney LLC * Attention. Intentional misstatements or omissions of fact constitute federal criminal violations (see 18 U.S.C. 1001). CUSIP No.65340G205 13G Page 8 of 8 Pages -------------------------------------------------------------------------------- EXHIBIT NO. 99.2 ------------------ ITEM 7 INFORMATION The securities being reported on by Morgan Stanley as a parent holding company are owned, or may be deemed to be beneficially owned, by Morgan Stanley Smith Barney LLC, a wholly-owned subsidiary of Morgan Stanley.

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SEC Form SC 13G filed by NexPoint Diversified Real Estate Trust

2/11/22 3:33:52 PM ET

$NXDT

Real Estate Investment Trusts

Real Estate

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SEC Form SC 13G filed by NexPoint Diversified Real Estate Trust

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$NXDT

SEC Form SC 13G filed by NexPoint Diversified Real Estate Trust

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Press Releases

NexPoint Diversified Real Estate Trust Announces Investor Update Call

NexPoint Diversified Real Estate Trust Announces Record Date and Date of 2026 Annual Meeting of Shareholders

NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

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SEC Filings

NexPoint Diversified Real Estate Trust filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation

Amendment: SEC Form SCHEDULE 13G/A filed by NexPoint Diversified Real Estate Trust

Amendment: SEC Form SCHEDULE 13D/A filed by NexPoint Diversified Real Estate Trust

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Insider Trading

Officer Dondero James D was granted 212,863 shares (SEC Form 4)

Director Mitts Brian sold $60,397 worth of shares (14,449 units at $4.18) (SEC Form 4)

Director Laffer Arthur B bought $42,043 worth of shares (15,052 units at $2.79), increasing direct ownership by 9% to 117,793 units (SEC Form 4)

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Insider Purchases

Director Laffer Arthur B bought $42,043 worth of shares (15,052 units at $2.79), increasing direct ownership by 9% to 117,793 units (SEC Form 4)

Director Laffer Arthur B bought $13,976 worth of shares (5,101 units at $2.74), increasing direct ownership by 5% to 107,636 units (SEC Form 4)

Officer Richards Paul bought $13,900 worth of shares (5,000 units at $2.78), increasing direct ownership by 4% to 119,820 units (SEC Form 4)

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Leadership Updates

NexPoint Diversified Real Estate Trust Announces Appointment of Independent Trustees

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Large Ownership Changes

Amendment: SEC Form SC 13D/A filed by NexPoint Diversified Real Estate Trust

SEC Form SC 13G/A filed by NexPoint Diversified Real Estate Trust (Amendment)

SEC Form SC 13G/A filed by NexPoint Diversified Real Estate Trust (Amendment)

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Financials

NexPoint Diversified Real Estate Trust Announces Investor Update Call

NexPoint Diversified Real Estate Trust Announces 2025 Dividend Income Tax Treatment

NexPoint Diversified Real Estate Trust Announces Investor Update Call

SEC Form SC 13G filed by NexPoint Diversified Real Estate Trust

Crush Q1 2026 with the Best AI Superconnector

Recent Analyst Ratings for $NXDT

SEC Form SC 13G filed by NexPoint Diversified Real Estate Trust

Crush Q1 2026 with the Best AI Superconnector

Recent Analyst Ratings for $NXDT

$NXDT Press Releases

NexPoint Diversified Real Estate Trust Announces Investor Update Call

NexPoint Diversified Real Estate Trust Announces Record Date and Date of 2026 Annual Meeting of Shareholders

NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

$NXDT SEC Filings

NexPoint Diversified Real Estate Trust filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation

Amendment: SEC Form SCHEDULE 13G/A filed by NexPoint Diversified Real Estate Trust

Amendment: SEC Form SCHEDULE 13D/A filed by NexPoint Diversified Real Estate Trust

$NXDT Insider Trading

Officer Dondero James D was granted 212,863 shares (SEC Form 4)

Director Mitts Brian sold $60,397 worth of shares (14,449 units at $4.18) (SEC Form 4)

Director Laffer Arthur B bought $42,043 worth of shares (15,052 units at $2.79), increasing direct ownership by 9% to 117,793 units (SEC Form 4)

$NXDT Insider Purchases

Director Laffer Arthur B bought $42,043 worth of shares (15,052 units at $2.79), increasing direct ownership by 9% to 117,793 units (SEC Form 4)

Director Laffer Arthur B bought $13,976 worth of shares (5,101 units at $2.74), increasing direct ownership by 5% to 107,636 units (SEC Form 4)

Officer Richards Paul bought $13,900 worth of shares (5,000 units at $2.78), increasing direct ownership by 4% to 119,820 units (SEC Form 4)

$NXDT Leadership Updates

NexPoint Diversified Real Estate Trust Announces Appointment of Independent Trustees

$NXDT Large Ownership Changes

Amendment: SEC Form SC 13D/A filed by NexPoint Diversified Real Estate Trust

SEC Form SC 13G/A filed by NexPoint Diversified Real Estate Trust (Amendment)

SEC Form SC 13G/A filed by NexPoint Diversified Real Estate Trust (Amendment)

$NXDT Financials

NexPoint Diversified Real Estate Trust Announces Investor Update Call

NexPoint Diversified Real Estate Trust Announces 2025 Dividend Income Tax Treatment

NexPoint Diversified Real Estate Trust Announces Investor Update Call

Recent Analyst Ratings for
$NXDT

Recent Analyst Ratings for
$NXDT

$NXDT
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SEC Filings

$NXDT
Insider Trading

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Insider Purchases

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Leadership Updates

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Large Ownership Changes

$NXDT
Financials