DALLAS, Aug. 18, 2025 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE: NXRT) ("NXRT") announced today the dual listing of its common stock on NYSE Texas, the newly launched fully electronic equities exchange headquartered in Dallas, Texas, effective August 19, 2025. NXRT will maintain its primary listing on the New York Stock Exchange (NYSE) and continue to trade under the same ticker symbol, "NXRT," on the NYSE and NYSE Texas."The NYSE was integral to NXRT's launch and growth over the past 10 years, ...

[Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements subject to significant risks, including economic conditions, geographic concentration, competition, and REIT status maintenance [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements subject to significant risks, including economic conditions, geographic concentration, competition, and REIT status maintenance - Forward-looking statements are based on current management beliefs and are subject to numerous known and unknown risks and uncertainties that are beyond the company's control[10](index=10&type=chunk)[11](index=11&type=chunk) - Key operational and market risks include: macroeconomic trends like inflation and high interest rates, concentration of properties in the Southeastern and Southwestern U.S., competition for acquisitions and tenants, and risks associated with a value-enhancement strategy[12](index=12&type=chunk) - Significant financial and corporate risks include: risks from substantial indebtedness, dependence on key personnel at the Adviser, conflicts of interest, and the necessity of maintaining REIT status for tax purposes[14](index=14&type=chunk) [PART I—FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements, including balance sheets, income statements, equity, cash flows, and notes, for Q2 and H1 2025 [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$1.86 billion** by June 30, 2025, while liabilities slightly rose and equity declined due to net loss and dividends Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Net Operating Real Estate Investments** | $1,763,255 | $1,793,223 | | **Total Assets** | **$1,857,201** | **$1,907,420** | | **Mortgages payable, net** | $1,466,530 | $1,463,650 | | **Total Liabilities** | **$1,504,147** | **$1,491,270** | | **Total Stockholders' Equity** | $347,890 | $410,368 | | **Total Liabilities and Stockholders' Equity** | **$1,857,201** | **$1,907,420** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=9&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Q2 2025 saw a **$7.1 million net loss**, a shift from 2024's net income, primarily due to the absence of real estate sale gains Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $63,149 | $64,238 | $126,365 | $131,815 | | **Total expenses** | $55,246 | $57,442 | $111,039 | $115,737 | | **Gain on sales of real estate** | $0 | $18,686 | $0 | $50,395 | | **Net income (loss)** | **($7,061)** | **$10,638** | **($13,985)** | **$37,040** | | **Net income (loss) attributable to common stockholders** | ($7,033) | $10,596 | ($13,930) | $36,894 | | **Earnings (loss) per share - diluted** | **($0.28)** | **$0.40** | **($0.55)** | **$1.40** | [Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$347.9 million** by June 30, 2025, due to a **$13.9 million net loss**, **$26.6 million in dividends**, and **$7.7 million in repurchases** - For the six months ended June 30, 2025, key changes to stockholders' equity included a **net loss of $13.9 million**, payment of **$26.6 million in common stock dividends**, and **$7.7 million in common stock repurchases**[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw **$48.2 million** from operations, **$18.7 million** used in investing, and **$35.4 million** used in financing, resulting in a **$5.9 million net cash decrease** Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $48,202 | $39,346 | | **Net cash provided by (used in) investing activities** | ($18,689) | $124,529 | | **Net cash used in financing activities** | ($35,426) | ($154,507) | | **Net increase (decrease) in cash** | ($5,913) | $9,368 | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail REIT organization, accounting policies, 2024 dispositions, **$1.5 billion mortgage debt**, derivatives, repurchases, related-party transactions, and a new **$200 million credit facility** - There were no real estate acquisitions or dispositions during the six months ended June 30, 2025. In the same period of 2024, the company sold two properties for net proceeds of **$141.6 million**, generating a **gain of $50.4 million**[42](index=42&type=chunk)[43](index=43&type=chunk) - As of June 30, 2025, the company had approximately **$1.5 billion in mortgage debt** with a weighted average interest rate of **5.38%**. The company uses interest rate swaps with a notional amount of **$917.5 million** to hedge its floating-rate debt[50](index=50&type=chunk)[51](index=51&type=chunk)[58](index=58&type=chunk) - During the first six months of 2025, the company repurchased **223,109 shares** of common stock for **$7.7 million**. The Adviser voluntarily waived **$10.6 million in advisory and administrative fees** during the same period[71](index=71&type=chunk)[91](index=91&type=chunk) - Subsequent to the quarter end, on July 11, 2025, the company entered into a new **$200.0 million revolving credit facility** maturing in June 2028. A quarterly dividend of **$0.51 per share** was also declared[109](index=109&type=chunk)[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **35-property multifamily portfolio**, Q2 and H1 2025 net losses due to absent property sale gains, **1.1% Same Store NOI decline**, stable Core FFO, and a new **$200 million credit facility** [Overview](index=38&type=section&id=Overview) As of June 30, 2025, the company managed **35 multifamily properties** with **12,984 units**, **93.3% leased**, and an average monthly rent of **$1,500** Portfolio Snapshot as of June 30, 2025 | Metric | Value | | :--- | :--- | | Number of Properties | 35 | | Number of Units | 12,984 | | Occupancy | 93.3% leased | | Avg. Monthly Effective Rent | $1,500 | [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q2 2025 net income declined by **$17.7 million** to a **$7.1 million net loss**, primarily due to the absence of **$18.7 million** in 2024 real estate sale gains Summary of Operating Results (in thousands) | Period | Metric | 2025 | 2024 | $ Change | | :--- | :--- | :--- | :--- | :--- | | **Q2** | **Net income (loss)** | **($7,061)** | **$10,638** | **($17,699)** | | | Gain on sales of real estate | $0 | $18,686 | ($18,686) | | **H1** | **Net income (loss)** | **($13,985)** | **$37,040** | **($51,025)** | | | Gain on sales of real estate | $0 | $50,395 | ($50,395) | [Non-GAAP Measurements](index=46&type=section&id=Non-GAAP%20Measurements) Non-GAAP analysis shows **Same Store NOI decreased 1.1% in Q2 2025**, with Core FFO per diluted share stable at **$0.71** and AFFO per diluted share at **$0.80** Same Store NOI Performance | Period | Same Store NOI (in thousands) | % Change YoY | | :--- | :--- | :--- | | **Q2 2025** | $38,036 | -1.1% | | **H1 2025** | $75,773 | -2.4% | FFO, Core FFO, and AFFO Per Diluted Share | Metric per Diluted Share | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **FFO** | $0.67 | $0.62 | $1.34 | $1.34 | | **Core FFO** | $0.71 | $0.69 | $1.45 | $1.43 | | **AFFO** | $0.80 | $0.79 | $1.64 | $1.62 | [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity relies on operations and credit facilities, with **$48.0 million cash** as of June 30, 2025, and a new **$200 million revolving credit facility** secured in July 2025 - Short-term liquidity is met through net cash from operations and credit facility capacity. Long-term needs are funded by various capital sources including debt, equity issuances, and property dispositions[205](index=205&type=chunk)[206](index=206&type=chunk) - A new **$200 million revolving credit facility** was established on July 11, 2025, maturing in June 2028, which replaces the prior facility that matured on June 30, 2025[226](index=226&type=chunk) Value-Add Program Capital Expenditures (in thousands) | Period | Interior Rehab | Exterior & Common Area | Total | | :--- | :--- | :--- | :--- | | **Q2 2025** | $1,329 | $91 | $1,420 | | **H1 2025** | $1,981 | $149 | $2,130 | [Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate exposure on **$1.5 billion floating-rate debt**, with **62% hedged** by swaps; a **1.00% rate increase** would raise annual interest expense by **$5.5 million** - The company's main market risk is interest rate risk. As of June 30, 2025, **62% of its $1.5 billion in floating-rate debt** was effectively fixed through interest rate swaps[259](index=259&type=chunk) Interest Rate Sensitivity Analysis | Change in Interest Rates | Annual Increase to Interest Expense (in thousands) | | :--- | :--- | | 0.25% | $1,380 | | 0.50% | $2,760 | | 1.00% | $5,520 | [Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the quarter, June 30, 2025[264](index=264&type=chunk) - No material changes to internal control over financial reporting occurred during the second quarter of 2025[266](index=266&type=chunk) [PART II—OTHER INFORMATION](index=70&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to materially adversely affect its financial condition or operations - Management is not aware of any legal proceedings likely to have a material adverse effect on the company[269](index=269&type=chunk) [Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - No material changes to the risk factors previously disclosed in the 2024 Annual Report have occurred[270](index=270&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Securities](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Securities) The company repurchased **223,109 shares** for **$7.7 million** in H1 2025, with **$77.8 million** remaining under the repurchase program Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | April 1 – April 30 | 223,109 | $34.29 | $77.8 | | May 1 – May 31 | — | — | $77.8 | | June 1 – June 30 | — | — | $77.8 | [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the period[273](index=273&type=chunk) [Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations or reporting requirements - This item is not applicable to the company[274](index=274&type=chunk) [Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No other material information is required to be reported for this period - There is no other information to report for this period[275](index=275&type=chunk) [Exhibits](index=72&type=section&id=Item%206.%20Exhibits) Exhibits include the 2025 Long Term Incentive Plan, award agreements, a new Credit Agreement, and CEO/CFO certifications - Key exhibits filed include the new 2025 Long Term Incentive Plan, a new Credit Agreement dated July 11, 2025, and required CEO/CFO certifications[277](index=277&type=chunk)

Core Viewpoint - NexPoint Residential Trust reported a mixed second quarter for 2025, with GAAP earnings per diluted share of ($0.28), beating estimates, but revenue of $63.1 million slightly missed expectations, indicating operational challenges in rents and occupancy despite dividend growth [1][2]. Financial Performance - GAAP earnings per diluted share were ($0.28), exceeding estimates by $0.06, while revenue was $63.1 million, falling short of the $63.19 million forecast [1][2]. - Year-over-year changes included a 170% decline in EPS from $0.40 in Q2 2024, and a 1.7% decrease in revenue from $64.2 million [2]. - Funds from operations (FFO) increased to $16.9 million ($0.67 per diluted share), up from $16.3 million ($0.62 per share) [7]. Operational Highlights - The company upgraded 555 units in Q2 2025, significantly up from 113 in the same quarter last year, achieving an average monthly rent premium of $73 and a 26.0% return on investment for upgraded units [5]. - Same-store average effective rent decreased by 1.3% year-over-year to $1,500, and same-store occupancy fell by 80 basis points to 93.3% [6]. Business Strategy - NexPoint focuses on value-add investments, renovating Class B multifamily properties to enhance value and attract tenants [3][4]. - The company is externally managed and relies on floating-rate debt, with a portion hedged through interest rate swaps to manage risk [4]. Capital Allocation - The company repurchased 223,109 shares at an average price of $34.29, totaling $7.65 million, representing a significant discount to the net asset value per share of $50.31 [9]. - No property acquisitions or dispositions occurred in the quarter, but management remains focused on share buybacks and potential future disposals [9]. Dividend and Guidance - A quarterly dividend of $0.51 per share was paid, resulting in a dividend yield of 6.18%, with AFFO coverage at 1.57 times the current payout [10]. - Management affirmed guidance for core FFO per share at $2.75 and same-store NOI growth at (1.5)% for FY2025, with a revised EPS midpoint guidance of ($1.31) [11].

Financial Data and Key Metrics Changes - The company reported a net loss of $7 million or a loss of $0.28 per diluted share on total revenue of $63.1 million for Q2 2025, compared to a net income of $10.6 million or $0.40 earnings per diluted share on total revenue of $64.2 million for the same period in 2024 [5][6] - Core FFO for Q2 was $18 million or $0.71 per diluted share, an increase from $0.69 per diluted share in Q2 2024 [6][7] - The company paid a second-quarter dividend of $0.51 per share, with a 1.39 times coverage by Core FFO and a payout ratio of 72.2% [7] Business Line Data and Key Metrics Changes - Same store rent and occupancy decreased by 1.3% and 0.8% respectively, leading to a 1.1% decrease in same store NOI compared to Q2 2024 [6][12] - The company completed 555 full and partial upgrades during the quarter, leasing 381 upgraded units with an average monthly rent premium of $73 and a 26% return on investment [6][7] - Since inception, the company has completed 9,113 upgrades, resulting in an average monthly rental increase of $165 and a 20.8% return on investment [6] Market Data and Key Metrics Changes - Same store total revenue was down 20 basis points, with four out of ten markets achieving at least 1% growth, particularly Atlanta and South Florida with 3.6% and 2.3% growth respectively [12][14] - The second quarter same store NOI margin registered at 60.9%, with five out of ten markets achieving year-over-year NOI growth of 1% or greater [13][14] - The national delivery outlook is expected to contract to a GFC level output of just 77,000 units per quarter, supporting the thesis on accelerating fundamentals in 2026, 2027, and 2028 [17] Company Strategy and Development Direction - The company is focused on optimizing maintenance operations and implementing AI technology to drive efficiencies and reduce staffing costs [15][22] - The company plans to maintain a balanced approach by driving occupancy, managing controllable expenses, and supporting steady NOI growth despite transitional operating environments [24] - The company is optimistic about capital recycling in the second half of the year through targeted acquisitions and dispositions [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while bad debt has improved significantly, new supply pressures are expected to be short-term challenges, with stabilization anticipated in late 2025 [20] - The company expects second half 2025 revenue to be more muted than initially thought, with an average occupancy expectation of 94% [21] - Management highlighted that despite decelerating rents, growth is still expected compared to the trough in 2024, supported by stabilizing occupancy and improving collections [21][23] Other Important Information - The company entered into a new five-year $100 million SOFR swap at a fixed rate of 3.489% [8] - A $200 million corporate revolving credit facility was established, with an option to increase by an additional $200 million upon lender consent [10][11] Q&A Session Summary Question: How much of the $8 million in recurring capitalized maintenance expenditures year to date are non-revenue producing? - Management indicated that elevated spending is skewed towards non-revenue generating activities due to refinancing activities and significant projects in Nashville [27][28] Question: What drove the larger increase in the rehab program to over 500 units in Q2? - Management attributed the increase to a focus on identifying opportunities and deploying resources faster than expected [30][31] Question: What is driving the lower churn costs? - Management noted that higher retention rates and targeted upgrades to existing units are contributing to lower churn costs [43][44]

分组1 - NexPoint Residential Trust Inc. reported quarterly funds from operations (FFO) of $0.8 per share, missing the Zacks Consensus Estimate of $0.81 per share, and showing no change from the previous year's FFO of $0.8 per share [1] - The company posted revenues of $63.15 million for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.45% and a decrease from year-ago revenues of $64.24 million [2] - The stock has underperformed, losing approximately 20.9% since the beginning of the year, while the S&P 500 has gained 8.6% [3] 分组2 - The current consensus FFO estimate for the upcoming quarter is $0.80 on revenues of $64.14 million, and for the current fiscal year, it is $3.24 on revenues of $255.47 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The estimate revisions trend for NexPoint Residential Trust Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Earnings Release [Highlights](index=3&type=section&id=Highlights) NexPoint Residential Trust reported a Q2 2025 net loss of $7.0 million, a decline from the prior year's net income, despite slight FFO and AFFO increases, alongside decreased Same Store performance and ongoing value-add and share repurchase activities Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 (M) | Q2 2024 (M) | | :--- | :--- | :--- | | Net Income (Loss) | $(7.0) | $10.6 | | FFO | $16.9 | $16.3 | | Core FFO | $18.0 | $18.1 | | AFFO | $20.3 | $20.8 | * Q2 Same Store properties experienced a year-over-year decline: occupancy decreased by **80 bps**, total revenue by **0.2%**, average effective rent by **1.3%**, and NOI by **1.1%**[5](index=5&type=chunk) * The company paid a Q2 dividend of **$0.51 per share** and repurchased **223,109 shares** for approximately **$7.6 million** at an average price of **$34.29 per share**[5](index=5&type=chunk) * During Q2 2025, the value-add program completed **555 full and partial upgrades**, achieving an average monthly rent premium of **$73** and a **26.0% ROI** on leased upgraded units[5](index=5&type=chunk) [Second Quarter 2025 Financial Results](index=4&type=section&id=Second%20Quarter%202025%20Financial%20Results) For Q2 2025, total revenues decreased to $63.1 million, resulting in a net loss of $7.0 million primarily due to an $18.7 million decrease in real estate sales gains, while Same Store NOI declined by 1.1% and per-share FFO metrics remained stable Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $63.1M | $64.2M | | Net Income (Loss) | $(7.0)M | $10.6M | | Net (Loss) Income per Share | $(0.28) | $0.40 | | Same Store NOI | $38.0M | $38.4M (-1.1%) | * The primary reason for the shift from net income to net loss was a decrease in gain on sales of real estate of **$18.7 million** compared to the same period in 2024[8](index=8&type=chunk) [2025 Year to Date Financial Results](index=4&type=section&id=2025%20Year%20to%20Date%20Financial%20Results) Year-to-date 2025 revenues decreased to $126.4 million, leading to a net loss of $13.9 million, largely driven by a $50.4 million reduction in real estate sales gains, with Same Store NOI down 2.4% but Core FFO and AFFO per share slightly increasing YTD 2025 Financial Performance | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Total Revenues | $126.4M | $131.8M | | Net Income (Loss) | $(13.9)M | $36.9M | | Same Store NOI | $75.8M | $77.7M (-2.4%) | | Core FFO per Share | $1.45 | $1.43 | | AFFO per Share | $1.64 | $1.62 | * The significant decline in net income year-to-date is primarily attributed to a **$50.4 million** decrease in gains from real estate sales compared to the first six months of 2024[8](index=8&type=chunk) [Subsequent Events](index=4&type=section&id=Subsequent%20Events) Subsequent to Q2, the Board approved a $0.51 per share Q3 dividend, and NXRT secured a new $200.0 million revolving credit facility maturing in June 2028 with an expansion option * A quarterly dividend of **$0.51 per share** was approved, payable on September 30, 2025[8](index=8&type=chunk) * The company secured a new **$200.0 million revolving credit facility** with an option to expand it to **$400.0 million**. The facility matures on **June 30, 2028**[8](index=8&type=chunk) Company and Portfolio Overview [Company Profile and Portfolio Composition](index=6&type=section&id=Company%20Profile%20and%20Portfolio%20Composition) As of July 2025, NXRT's stock traded at $33.01 with a 6.18% dividend yield and nearly 16% insider ownership, while its Sun Belt-focused portfolio has Phoenix, South Florida, and Dallas/Fort Worth as its top three markets Company Profile (as of July 2025) | Metric | Value | | :--- | :--- | | Exchange/Ticker | NYSE: NXRT | | Share Price (Jul 28, 2025) | $33.01 | | Insider Ownership (Jun 30, 2025) | 15.97% | | Q3 2025 Dividend Per Share | $0.51 | | Dividend Yield | 6.18% | Top 5 Markets by Unit Percentage | Market | % of Units | | :--- | :--- | | Phoenix | 15.5% | | South Florida | 15.1% | | Dallas/Fort Worth | 15.0% | | Atlanta | 13.0% | | Nashville | 10.3% | Highlights of Recent Activity [Capital Markets and Leasing Activity](index=7&type=section&id=Capital%20Markets%20and%20Leasing%20Activity) During Q2, NXRT executed a new $100 million SOFR swap and a $200 million revolving credit facility, with leasing activity showing new lease rate decreases and renewal rate increases, alongside continued share repurchases * Entered into a new **$100 million SOFR swap** effective April 2025, fixing the rate at **3.489%** until **April 2030**[21](index=21&type=chunk)[22](index=22&type=chunk) * Secured a new **$200 million revolving credit facility** maturing in **June 2028**, enhancing financial flexibility[23](index=23&type=chunk)[26](index=26&type=chunk) Q2 2025 Leasing Spreads | Lease Type | Count | Average % Increase | | :--- | :--- | :--- | | New Leases | 1,219 | -1.52% | | Renewals | 1,732 | 2.61% | * Repurchased **223,109 shares** at a weighted average cost of **$34.29 per share**, representing a **32% discount** to the Q2 2025 Net Asset Value (NAV)[25](index=25&type=chunk)[26](index=26&type=chunk) [Forecasted Submarket Deliveries](index=8&type=section&id=Forecasted%20Submarket%20Deliveries) The company's portfolio faces a forecasted 4.5% 3-year new supply growth across its submarkets, with specific areas like Huntersville/Cornelius and Southwest Las Vegas expecting significant new deliveries that could impact future rental and occupancy trends * The total portfolio is exposed to a forecasted **3-year new supply growth of 4.5%**, with **26,179 units** expected to be delivered across its submarkets between 2025 and 2027[27](index=27&type=chunk) Submarkets with Highest Forecasted 3-Year Supply Growth | Market | Submarket | Property | 3-Year % Growth | | :--- | :--- | :--- | :--- | | CHA | Huntersville/Cornelius | The Verandas at Lake Norman | 31.6% | | LSV | Southwest Las Vegas | Torreyana | 12.0% | | CHA | Matthews/SE Charlotte | Creekside at Matthews | 9.2% | | ORL | South Orange County | Sabal Palm at Lake Buena Vista | 9.2% | Financials and Guidance [Financial Summary](index=9&type=section&id=Financial%20Summary) Q2 2025 financial summary highlights a year-over-year decline in Same Store NOI, occupancy, and average effective rent, resulting in a net loss per share, despite slight increases in Core FFO and AFFO per share, and an increased leverage ratio Q2 2025 vs. Q2 2024 Financial & Operational Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income per Share | $(0.28) | $0.40 | | Core FFO per Share | $0.71 | $0.69 | | AFFO per Share | $0.80 | $0.79 | | Same Store NOI Growth | -1.1% | N/A | | Portfolio Occupancy | 93.3% | 94.1% | | Avg. Effective Monthly Rent | $1,500 | $1,517 | | Leverage Ratio (Net Debt to EV) | 64% | 59% | * The value-add program accelerated, with **555 rehab units completed** in Q2 2025 compared to 113 in Q2 2024. Cumulatively, **9,113 units** have been upgraded, yielding an average monthly rent increase of **$165** and a **20.8% ROI**[31](index=31&type=chunk) [2025 Full Year Guidance](index=10&type=section&id=2025%20Full%20Year%20Guidance) NXRT reaffirmed its 2025 mid-point guidance for Core FFO per diluted share and Same Store NOI, while revising earnings per diluted share guidance to a loss and maintaining acquisition and disposition targets 2025 Full Year Guidance (Mid-Point) | Metric | Mid-Point Guidance | Prior Mid-Point | | :--- | :--- | :--- | | Earnings (loss) per diluted share | $(1.31) | $(1.22) | | Core FFO per diluted share | $2.75 | Affirmed | | Same Store NOI Growth | -1.5% | Affirmed | | Same Store Total Revenue Growth | 0.1% | 0.5% | | Acquisitions | $100.0M | Affirmed | | Dispositions | $100.0M | Affirmed | * The guidance is based on an estimated weighted average diluted share count of approximately **25.6 million** for the full year 2025[35](index=35&type=chunk) [Components of Net Asset Value](index=11&type=section&id=Components%20of%20Net%20Asset%20Value) The company estimates its NAV per share at a mid-point of $50.31, derived from an estimated real estate value between $2.6 billion and $2.9 billion, reflecting a significant premium to the current share price after accounting for liabilities NAV Summary (Mid-Point) | Component | Value (in thousands) | | :--- | :--- | | Real Estate Value (mid-point) | $2,767,022 | | **Value of Assets (mid-point)** | **$2,857,648** | | Total Outstanding Debt | $1,503,242 | | Other Liabilities | $37,617 | | **Value of Liabilities** | **$1,540,859** | | **Net Asset Value (mid-point)** | **$1,316,789** | * The estimated NAV per share ranges from **$43.90 to $56.73**, with a mid-point of **$50.31**, based on a diluted share count of **26.171 million**[40](index=40&type=chunk) * The implied value per apartment unit is estimated to be between **$200,200 and $226,000**[40](index=40&type=chunk) [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, NXRT's balance sheet showed total assets of $1.86 billion, a slight decrease from year-end 2024, with total liabilities increasing to $1.504 billion, leading to a decline in total stockholders' equity Selected Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Net Operating Real Estate | $1,763,255 | $1,793,223 | | **TOTAL ASSETS** | **$1,857,201** | **$1,907,420** | | Mortgages payable, net | $1,466,530 | $1,463,650 | | **TOTAL LIABILITIES** | **$1,504,147** | **$1,491,270** | | **TOTAL STOCKHOLDERS' EQUITY** | **$347,890** | **$410,368** | [Consolidated Statements of Operations](index=13&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, NXRT reported total revenues of $63.1 million and a net loss of $7.1 million, a shift from Q2 2024's net income primarily due to the absence of real estate sales gains and increased interest expense Q2 Statement of Operations Summary (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenues | $63,149 | $64,238 | | Total expenses | $55,246 | $57,442 | | Gain on sales of real estate | $— | $18,686 | | Interest expense | $(15,162) | $(13,971) | | **Net income (loss)** | **$(7,061)** | **$10,638** | NOI and Same Store Results [NOI and Same Store NOI Reconciliation](index=14&type=section&id=NOI%20and%20Same%20Store%20NOI%20Reconciliation) Q2 2025 Net Operating Income (NOI) was $38.0 million, reconciled from a net loss by adding back non-property level expenses, with all properties classified as Same Store, resulting in a 1.1% decrease in Same Store NOI from Q2 2024 Reconciliation of Net Income (Loss) to NOI (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $(7,061) | $10,638 | | Adjustments (Depreciation, Interest, Corp G&A, etc.) | $45,097 | $28,229 | | **NOI** | **$38,036** | **$38,867** | | Less Non-Same Store NOI | $— | $(425) | | **Same Store NOI** | **$38,036** | **$38,442** | [Q2 Same Store Results](index=15&type=section&id=Q2%20Same%20Store%20Results) In Q2 2025, Same Store properties experienced a 0.2% revenue decrease and a 1.5% operating expense increase, leading to a 1.1% year-over-year decline in Same Store NOI to $38.0 million and an 80 basis point drop in occupancy Q2 Same Store Performance (YoY % Change) | Metric | % Change | | :--- | :--- | | Total Revenues | -0.2% | | Total Operating Expenses | +1.5% | | **NOI** | **-1.1%** | | Occupancy | -0.8% | | Average Rent per Unit | -1.3% | * Key expense drivers included a **7.7% increase in Real Estate Taxes** and a **3.6% increase in Repairs & Maintenance**, while Insurance costs decreased by **19.5%**[54](index=54&type=chunk) * On a market level, Phoenix and Las Vegas experienced the largest declines in rental income, down **3.5%** and **2.7%** respectively, while Atlanta and South Florida saw modest increases[56](index=56&type=chunk) [QoQ Same Store Properties Operating Metrics](index=18&type=section&id=QoQ%20Same%20Store%20Properties%20Operating%20Metrics) Sequentially from Q1 to Q2 2025, Same Store total rental income decreased by 0.3%, primarily due to a 120 basis point drop in average occupancy, despite a slight increase in average effective rent, with Phoenix and Las Vegas showing significant occupancy declines Q2 2025 vs. Q1 2025 Same Store Metrics | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Average Effective Rent | $1,500 | $1,495 | +0.3% | | Occupancy | 93.3% | 94.5% | -120 bps | | Total Rental Income | $61,230K | $61,436K | -0.3% | [YTD Same Store Results](index=18&type=section&id=YTD%20Same%20Store%20Results) For the first six months of 2025, Same Store properties saw a 0.6% revenue decline and a 2.6% operating expense increase, mainly from higher real estate taxes and repairs, resulting in a 2.4% decrease in year-to-date Same Store NOI to $75.8 million YTD Same Store Performance (YoY % Change) | Metric | % Change | | :--- | :--- | | Total Revenues | -0.6% | | Total Operating Expenses | +2.6% | | **NOI** | **-2.4%** | * The largest contributors to the **2.6% increase in operating expenses** were a **5.2% rise in Real Estate Taxes** and a **4.1% increase in Repairs & Maintenance costs**[65](index=65&type=chunk) FFO, Core FFO and AFFO [FFO, Core FFO and AFFO Reconciliation](index=21&type=section&id=FFO%2C%20Core%20FFO%20and%20AFFO%20Reconciliation) In Q2 2025, NXRT's FFO attributable to common stockholders increased to $16.9 million, or $0.67 per diluted share, while Core FFO remained flat and AFFO slightly decreased, with the dividend well-covered by both Core FFO and AFFO Q2 2025 Non-GAAP Metrics per Diluted Share (vs. Q2 2024) | Metric per Share | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FFO | $0.67 | $0.62 | | Core FFO | $0.71 | $0.69 | | AFFO | $0.80 | $0.79 | Q2 2025 Dividend Coverage Ratios | Metric | Coverage Ratio | | :--- | :--- | | FFO | 1.31x | | Core FFO | 1.39x | | AFFO | 1.57x | Capital Expenditures and Value-Add Program [Historical Capital Expenditures](index=22&type=section&id=Historical%20Capital%20Expenditures) Total capital expenditures in Q2 2025 increased by 50% year-over-year to $9.2 million, driven by a significant rise in capitalized maintenance expenditures, while rehab spending showed mixed trends Capital Expenditures (in thousands) | Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Capitalized Rehab Expenditures | $1,420 | $1,952 | -27.3% | | Capitalized Maintenance Expenditures | $7,779 | $4,182 | +86.0% | | **Total Capital Expenditures** | **$9,199** | **$6,134** | **+50.0%** | [Value-Add Program Details](index=23&type=section&id=Value-Add%20Program%20Details) NXRT's value-add program continues to generate strong returns, with interior upgrades achieving a 20.8% ROI, kitchen and laundry appliances a 64.2% ROI, and smart home technology a 37.2% ROI across thousands of completed units Value-Add Program Summary (Cumulative) | Program | Units Completed | Avg. Monthly Rent Increase | ROI | | :--- | :--- | :--- | :--- | | Interiors (Full & Partials) | 9,113 | $165 | 20.8% | | Kitchen & Laundry Appliances | 4,870 | $50 | 64.2% | | Smart Home Technology | 11,199 | $43 | 37.2% | Debt and Capital Structure [Outstanding Debt Details](index=26&type=section&id=Outstanding%20Debt%20Details) As of June 30, 2025, NXRT had $1.5 billion in total mortgage debt, predominantly floating-rate, with $917.5 million covered by interest rate swaps at a weighted average fixed rate of 1.361% to manage interest rate risk * Total outstanding mortgage principal as of June 30, 2025, was **$1.503 billion**[77](index=77&type=chunk) * The company has **$917.5 million in notional interest rate swaps**, effectively fixing the rate on a significant portion of its floating-rate debt. The weighted average fixed rate on these swaps is **1.361%**[79](index=79&type=chunk)[80](index=80&type=chunk) * As of June 30, 2025, interest rate swap agreements effectively covered **62%** of the company's **$1.5 billion** of floating-rate mortgage debt[89](index=89&type=chunk) [Debt Maturity Schedule](index=29&type=section&id=Debt%20Maturity%20Schedule) NXRT maintains a well-staggered debt maturity profile with no significant principal payments until 2028, and the majority of its $1.47 billion mortgage debt matures after 2029, with an adjusted weighted average interest rate of 3.51% Principal Payments Due by Period (in thousands) | Period | Principal Payments | | :--- | :--- | | Remainder of 2025 | $— | | 2026 | $— | | 2027 | $— | | 2028 | $33,817 | | 2029 | $— | | Thereafter | $1,469,425 | * The adjusted weighted average interest rate on the total **$1.5 billion of indebtedness** is **3.51%**, factoring in the effect of interest rate swap agreements[89](index=89&type=chunk) Historical Transactions [Historical Acquisition Details](index=30&type=section&id=Historical%20Acquisition%20Details) The current portfolio of 12,984 units was acquired for approximately $2.03 billion, with an additional $162.8 million rehab budget, totaling nearly $2.2 billion in investment, or $169,117 per unit Total Portfolio Acquisition Summary | Metric | Value | | :--- | :--- | | Total Units | 12,984 | | Total Purchase Price | $2,032,977,000 | | Total Rehab Budget | $162,834,000 | | **Total Investment** | **$2,195,811,000** | | **Investment Per Unit** | **$169,117** | [Historical Disposition Details](index=31&type=section&id=Historical%20Disposition%20Details) Historically, the company disposed of 10,786 units for approximately $1.24 billion, generating a total gain on sale of $497.9 million and $1.22 billion in net cash proceeds, demonstrating successful capital recycling Total Portfolio Disposition Summary | Metric | Value | | :--- | :--- | | Total Units Sold | 10,786 | | Total Purchase Price | $775,047,000 | | Total Sale Price | $1,237,675,000 | | **Total Gain on Sale** | **$497,939,000** | | **Net Cash Proceeds** | **$1,222,887,000** | Definitions and Reconciliations of Non-GAAP Measures [Definitions](index=32&type=section&id=Definitions) This section defines key non-GAAP financial measures including NOI, FFO, Core FFO, and AFFO, which are used to provide a clearer understanding of the company's operating performance by excluding certain non-cash or non-recurring items * **NOI:** Calculated by adjusting net income for items like interest expense, corporate G&A, depreciation, and casualty-related expenses to evaluate property-level performance[95](index=95&type=chunk) * **FFO:** Follows the NAREIT definition, starting with net income and excluding gains/losses from real estate sales while adding back real estate depreciation and amortization[96](index=96&type=chunk) * **Core FFO:** Adjusts FFO for items not representative of ongoing operations, such as casualty losses, debt extinguishment costs, and amortization of deferred financing costs[97](index=97&type=chunk) * **AFFO:** Further refines Core FFO by removing non-cash items like equity-based compensation expense to provide a more precise measure of operating performance[98](index=98&type=chunk) [Reconciliations](index=33&type=section&id=Reconciliations) This section provides detailed reconciliations for key metrics, including total debt to net debt of $1.49 billion as of Q2 2025, and the 2025 guidance, bridging the projected net loss to Same Store NOI and Core FFO Reconciliation of Debt to Net Debt (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Total mortgage debt | $1,503,242 | | Less: Cash and cash equivalents | $(13,623) | | Less: Restricted cash for upgrades | $(3,320) | | **Net Debt** | **$1,486,299** | FY 2025 Guidance Reconciliation (Mid-Point, in thousands) | Line Item | Amount | | :--- | :--- | | Net loss | $(33,617) | | Depreciation and amortization | $98,259 | | Other adjustments | $(24,455) | | **Core FFO attributable to common stockholders** | **$70,474** |

Core Points - NexPoint Residential Trust, Inc. has successfully refinanced its existing corporate revolving credit facility with major banks, enhancing its financial flexibility [1][2] - The new credit facility has an initial maturity of June 2028, extendable to June 2029, with improved interest rates compared to the previous facility [2] - The facility allows for an increase of up to $200 million, subject to lender agreement, and is secured by equity interests in subsidiaries and proceeds from capital events [2] - The Chief Investment Officer expressed confidence that the new credit agreement will enable the company to capitalize on growth opportunities in improving markets [3] Company Overview - NexPoint Residential Trust is a publicly traded REIT focused on acquiring, owning, and operating middle-income multifamily properties with value-add potential, primarily in the Southeastern and Southwestern United States [4]

Company Overview - NexPoint Residential Trust, Inc. (NXRT) is a publicly traded REIT listed on the New York Stock Exchange, focusing on acquiring, owning, and operating middle-income multifamily properties with "value-add" potential in large cities and suburban areas, primarily in the Southeastern and Southwestern United States [4] Upcoming Conference Call - The company is scheduled to host a conference call on July 29, 2025, at 11:00 a.m. ET to discuss its second quarter 2025 financial results [1] - A live audio webcast of the call will be available on the company's website, and a replay will be accessible shortly after the call for 60 days [2][3] Financial Results Announcement - The company plans to issue a press release with its second quarter 2025 financial results before the market opens on July 29, 2025 [3]

NexPoint Residential Trust Inc. (NXRT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following ...

Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of NexPoint Residential Trust Inc. (NXRT) and Essex Property Trust (ESS) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven ...