Core Insights - NexPoint Residential Trust, Inc. (NXRT) reported a net income of $1.1 million for the year ended December 31, 2024, a significant decrease from $44.3 million in 2023, primarily due to lower gains on real estate sales and rental income [5][12] - Total revenues for 2024 were $259.7 million, down from $277.5 million in 2023, reflecting a challenging market environment [12] - The company completed the sale of three properties for a total of $166.8 million during 2024, contributing to its overall financial performance [5] Financial Performance - For the full year 2024, Funds from Operations (FFO) totaled $44.5 million, down from $71.4 million in 2023, while Core FFO was $73.1 million compared to $76.6 million in the previous year [12][15] - The Average Effective Rent per unit across all properties was $1,491, with a physical occupancy rate of 94.7% as of December 31, 2024 [5][12] - The company paid a fourth-quarter dividend of $0.51 per share, marking a 10.3% increase from the previous quarter, and has increased its dividend per share by 147.6% since inception [5][12] Operational Highlights - The Same Store properties experienced a 2.0% increase in total revenue and a 0.9% increase in Net Operating Income (NOI) for 2024 [5][12] - NXRT completed 388 upgrades and installations in 2024, achieving an average monthly rent premium of $153 and a 24.7% return on investment [5] - The company repurchased 438,678 shares at an average price of $33.19 per share, representing a 36% discount to the midpoint of its Q4'24 Net Asset Value [5] Guidance and Future Outlook - For 2025, NXRT anticipates a net loss of approximately $31.5 million, with projected FFO of $64.1 million and Core FFO of $71.1 million [33] - The company expects to maintain its focus on value-add opportunities in middle-income multifamily properties, particularly in the Southeastern and Southwestern United States [13][33]

Core Viewpoint - NexPoint Residential Trust (NXRT) has shown significant upside potential, with a 30% upside identified in its discounted market valuation, despite challenges such as external management and high floating-rate debt [2][3]. Company Performance - NXRT's performance has ranked near the top of the multifamily REIT sector over the past year, attributed to management's successful execution of strategic initiatives, including profitable property sales and debt reduction [3][5]. - The company has effectively recycled capital through property sales, resulting in a total portfolio return of approximately 37.85% [4]. Debt Management - NXRT has refinanced and paid down debt, reducing costs and extending maturities, with total debt amounting to approximately $1.46 billion at a weighted average interest rate of 5.58% [5][6]. Market Positioning - NXRT owns 12,984 apartment units across 10 markets in the Southeastern and Southwestern United States, strategically positioned in high-demand areas [9][11]. - The company has exited Houston but maintains a presence in the top four markets identified by Marcus & Millichap, which are expected to perform well financially in 2025 [11]. Rental Market Dynamics - The disparity in rental prices between Class A and Class B apartments is significant, with a gap of $510 per month, which may drive increased demand for NXRT's Class B+ portfolio [12][13]. - As new supply is absorbed in these markets, both occupancy and rents are expected to rise, benefiting NXRT's operational performance [14]. Valuation Metrics - Despite a nearly 30% increase in share price, NXRT remains significantly discounted compared to its multifamily peers, with a P/AFFO ratio of 13.2, below the sector mean of 17.9 [16][17]. - NXRT's shares are priced at 77% of consensus Net Asset Value (NAV), indicating a valuation advantage compared to the sector average [18][19]. Dividend Growth - NXRT has raised its dividend for the ninth time since its IPO in 2015, indicating a strong commitment to returning value to shareholders [20][21].

Core Viewpoint - NexPoint Residential Trust, Inc. has announced the final income allocations for its 2024 dividend distributions on common stock, detailing the taxable and non-taxable components of the dividends [1][2]. Dividend Distribution Summary - The total dividend distribution for 2024 amounts to $1.89726 per share, with $1.28868 classified as taxable ordinary income and $0.60858 as return of capital [1]. - The breakdown of the dividends per share for each quarter is as follows: - Q1: $0.46242 ordinary income, $0.31409 unrecaptured Section 1250 gain, $0.19558 return of capital - Q2: $0.46242 ordinary income, $0.31409 unrecaptured Section 1250 gain, $0.19558 return of capital - Q3: $0.46242 ordinary income, $0.31409 unrecaptured Section 1250 gain, $0.19558 return of capital - Q4: $0.51000 ordinary income, $0.34641 unrecaptured Section 1250 gain, $0.21571 return of capital [1]. - 100% of the taxable ordinary income is treated as a qualified REIT dividend for Section 199A purposes [1]. Company Overview - NexPoint Residential Trust is a publicly traded Real Estate Investment Trust (REIT) focused on acquiring, owning, and operating middle-income multifamily properties with value-add potential in major urban and suburban markets, primarily in the Southeastern and Southwestern United States [3]. - The company is externally advised by NexPoint Real Estate Advisors, L.P., which is affiliated with NexPoint Advisors, L.P., an SEC-registered investment advisor with extensive real estate experience [3].

Company Announcement - NexPoint Residential Trust Inc (NXRT) will host a conference call on February 25 2025 at 11:00 am ET to discuss Q4 and full year 2024 financial results [1] - The conference call can be accessed live via phone or webcast with a replay available for 60 days on the company website [2][3] - A press release with Q4 and full year 2024 financial results will be issued before market open on February 25 2025 [3] Company Overview - NexPoint Residential Trust is a publicly traded REIT listed on the NYSE under the symbol NXRT [4] - The company focuses on acquiring owning and operating middle-income multifamily properties with value-add potential in large cities and suburban submarkets primarily in the Southeastern and Southwestern United States [4] - NXRT is externally advised by NexPoint Real Estate Advisors LP an affiliate of NexPoint Advisors LP an SEC-registered investment advisor with extensive real estate experience [4]

Core Viewpoint - NexPoint Residential Trust, Inc. has successfully closed 17-property agency mortgage refinancings, significantly improving its debt profile and extending its debt maturity schedule [1][2][4]. Debt Refinancing Summary - The company has refinanced a total of 34 loans, resulting in gross proceeds of $1.469 billion, which accounts for approximately 97.8% of its total outstanding debt [2]. - The refinancing has improved the interest rate pricing compared to prior terms, reducing the weighted average interest rate on total debt by 48 basis points to 5.65% before the impact of interest rate swaps [3]. - After accounting for interest rate swaps, the adjusted weighted average interest rate is expected to decrease from 3.44% to 2.95% [3]. - The refinancing extends the company's weighted average debt maturity to approximately 6.82 years, with only about 2.2% of total debt maturing through 2028, down from approximately 33% [2][3]. Financial Position and Strategy - The company has total indebtedness of $1.503 billion at an adjusted weighted average interest rate of 5.65%, with $1.469 billion of this being floating rate debt [8]. - Interest rate swap agreements cover 72.6% of the floating rate mortgage debt, effectively managing interest rate risk [8]. - The completion of this refinancing initiative is viewed as a strategic move to fortify the company's balance sheet and support future growth [4][9].

Group 1 - NexPoint Residential Trust, Inc. (NXRT) will participate in Nareit's REITworld: 2024 Annual Conference from November 18-21, 2024, in Las Vegas [1] - Key executives attending the conference include Brian Mitts (CFO), Matthew McGraner (CIO), Bonner McDermett (VP, Asset Management), and Sean Jacobson (VP, Asset Management) [1] - Meeting materials will be available on NXRT's website on the morning of November 18, 2024 [2] Group 2 - NXRT is a publicly traded Real Estate Investment Trust (REIT) listed on the NYSE under the symbol "NXRT" [3] - The company focuses on acquiring, owning, and operating middle-income multifamily properties with value-add potential, primarily in the Southeastern and Southwestern United States [3] - NXRT is externally advised by NexPoint Real Estate Advisors, L.P., which has extensive real estate experience [3]

Multifamily operator and REIT, NexPoint Residential Trust (NYSE: NXRT ) reported positive Q3 results which included a dividend increase and revised guidance. Already near the top end of its 52-week range, however, shares remained little changed following the release. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinio ...

Financial Data and Key Metrics - Net loss for Q3 2024 totaled $8.9 million, or a loss of $0.35 per diluted share, compared to net income of $33.7 million, or a gain of $1.28 per diluted share for Q3 2023 [6] - Q3 2024 NOI was $38.1 million on 36 properties, down from $42.1 million for Q3 2023 on 40 properties [6] - Same-store rent decreased 1.8%, while same-store occupancy grew to 94.9% [6] - Same-store NOI decreased by 2.4% compared to Q3 2023, driven by an 8.2% increase in same-store operating expenses [7] - Core FFO for Q3 2024 was $17.9 million, or $0.69 per diluted share, compared to $0.69 per diluted share for the same quarter last year [7] Business Line Data and Key Metrics - Completed 45 full and partial upgrades and leased 39 upgraded units in Q3, achieving an average monthly rent premium of $253 and a 19.5% ROI [8] - Since inception, the company has completed 8,316 full and partial upgrades, 4,704 kitchen and laundry appliance installs, and 11,389 technology package installations, resulting in significant rental increases and ROIs [8] - Dividend increased by 10.3% to $0.51 per share, with a payout ratio of 68% of core FFO [9] Market Data and Key Metrics - Same-store rental revenue increased by 2%, with Las Vegas and Raleigh markets leading growth at 11.6% and 5.4%, respectively [15] - Occupancy closed at 94.9% for Q3, with 96.2% leased as of the call date [17] - Seven out of ten markets are past peak supply, with nine markets forecasted to grow occupancy and all ten expected to grow rents over the next 12 months [19] Company Strategy and Industry Competition - The company expects to reach peak supply in Charlotte, Phoenix, and South Florida by Q3 2025, leading to a fundamental shift in favor of sustained growth through 2027 [19] - Refinancing activities have extended the weighted average debt maturity to approximately seven years and reduced the weighted average interest rate by 48 basis points to 6.21% [10] - The company plans to increase rehab output materially in 2025, focusing on value-add opportunities [19] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the near-term outlook, expecting stronger performance through 2027 due to favorable market conditions and refinancing benefits [20] - The company has $100 million of buying power for accretive investments in 2025, supported by the sale of Stone Creek and available cash [20] Other Important Information - The company adjusted core FFO to remove the amortization of deferred financing costs and mark-to-market gains or losses related to interest rate caps, aiming to better reflect ongoing operations [14] - NAV per share is estimated at a midpoint of $54.33, based on cap rates ranging from 5.25% to 5.75% [12] Q&A Session Question: What drove the 1.7% same-store revenue growth despite a 1.8% decrease in net effective rent? - The increase was driven by a 1.4% year-over-year growth in financial occupancy and a reduction in bad debt from 3.1% to 1.3% [25] Question: What caused the decrease in property G&A expenses, and is it sustainable? - The decrease was due to the use of AI and reduced on-site leasing staff, which is expected to be sustainable [26][27] Question: What drove the increase in core FFO guidance? - The increase was due to the impact of refinancing activities and the removal of mark-to-market impacts, which smoothed out core FFO calculations [29] Question: What are the company's plans for hedging new debt? - The company plans to layer in swaps as interest rates potentially decrease, aiming to take advantage of the interest rate environment [31] Question: What were the new and renewal rent spreads for the quarter? - New leases were down 6.43%, while renewals were up 2.2% [32]

Core Insights - NexPoint Residential Trust Inc. reported $64.1 million in revenue for Q3 2024, reflecting an 8.2% year-over-year decline and an EPS of $0.79 compared to $1.28 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $64.69 million, resulting in a surprise of -0.92%, while the EPS exceeded the consensus estimate of $0.76 by 3.95% [1] Revenue Breakdown - Rental income was reported at $62.31 million, slightly below the average estimate of $62.53 million from two analysts, marking an 8.2% decrease year-over-year [3] - Other income amounted to $1.78 million, compared to the estimated $1.89 million, representing a 9.4% decline from the previous year [3] Earnings Performance - The diluted net earnings per share were reported at -$0.35, which was worse than the estimated -$0.26 from four analysts [3] Stock Performance - Over the past month, shares of NexPoint Residential Trust Inc. have returned -2.3%, contrasting with the Zacks S&P 500 composite's +1.7% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

NexPoint Residential Trust Inc. (NXRT) came out with quarterly funds from operations (FFO) of $0.79 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to FFO of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 3.95%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.79 per share when it actually produced FFO of $0.80, delivering a surprise of 1.27%.Over th ...