NexPoint Residential Trust(NXRT)

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NexPoint Residential Trust(NXRT) - 2025 Q1 - Earnings Call Transcript
2025-04-29 16:02
Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss of $6.9 million, or a loss of $0.27 per diluted share, on total revenue of $63.2 million, compared to a net income of $26.4 million, or $1 earnings per diluted share, for the same period in 2024 on total revenue of $67.6 million [7] - Net Operating Income (NOI) for Q1 2025 was $37.8 million on 35 properties, down from $41.1 million for Q1 2024 on 37 properties, indicating a decrease in same store NOI of 3.8% year-over-year [7][10] - Core Funds from Operations (FFO) for Q1 was $19.1 million, or $0.75 per diluted share, compared to $0.74 per diluted share in Q1 2024 [7] Business Line Data and Key Metrics Changes - Same store rent and occupancy decreased by 1.3% and 0.3% respectively, leading to a 1% decrease in same store revenues [7] - The company completed two full and partial upgrades during the quarter, achieving an average monthly rent premium of $62 and a 16.1% return on investment [8] Market Data and Key Metrics Changes - Occupancy ended the quarter at 94.4%, with significant growth in Nashville and Phoenix, which finished at 95.4% and 96.6% respectively [12] - Nationally, over 38,000 units were absorbed, marking a record first quarter leasing and demand performance [14] Company Strategy and Development Direction - The company is focusing on rent growth initiatives while balancing occupancy maximization, particularly in markets facing new deliveries and concessions [16] - The company is optimistic about the inflection of new lease growth, which is seen as a positive sign for its assets after several quarters of softness [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains strong, with expectations for same store NOI to improve over the remainder of the year [13] - The company is actively monitoring the impacts of tariffs but has not seen a material impact on operations thus far [19][20] Other Important Information - The company reaffirmed its guidance for same store rental income, total revenue, total expenses, and NOI for the year [10] - The company has initiated a share buyback program and purchased 223,109 shares totaling approximately $7.6 million at an average price of $34.29 per share [11] Q&A Session Summary Question: Are there geographies where cap rates are softer? - Management indicated that Atlanta and some areas in DFW are on the weaker side of the NAV guidance due to ongoing supply [25] Question: Could the company sell more assets to repurchase stock? - Management expressed the intention to maintain a steady buyback program while being opportunistic in recycling capital [28] Question: Is the increase in core FFO per share guidance driven by share buybacks and swaps? - Management confirmed that the increase is primarily due to favorable swap rates and share buybacks [34] Question: How does the company view the strength in Las Vegas amidst declining tourism? - Management attributed the strength to the affordable gap in the market, with net migration inflows continuing to support demand [47] Question: What is the CapEx guidance for the year? - Management indicated a stable run rate for recurring and nonrecurring CapEx, with a target of around 300 interior upgrades in Q2 and Q3 [53]
NexPoint Residential Trust Inc. (NXRT) Tops Q1 FFO Estimates
ZACKS· 2025-04-29 14:31
Company Performance - NexPoint Residential Trust Inc. reported quarterly funds from operations (FFO) of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, but down from $0.86 per share a year ago, indicating a 2.33% year-over-year decline [1] - The company achieved an FFO surprise of 9.09% for the quarter, while the previous quarter saw an FFO of $0.78, which was below the expected $0.80, resulting in a surprise of -2.50% [1][2] - Over the last four quarters, NexPoint has surpassed consensus FFO estimates three times, but only topped revenue estimates once [2] Revenue Insights - For the quarter ended March 2025, NexPoint reported revenues of $63.22 million, which missed the Zacks Consensus Estimate by 0.93% and decreased from $67.58 million year-over-year, reflecting a decline of approximately 6.98% [2] - The current consensus FFO estimate for the upcoming quarter is $0.78 on revenues of $64.04 million, while for the current fiscal year, the estimate is $3.19 on revenues of $258.09 million [7] Market Context - NexPoint shares have declined about 12.2% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] - The Zacks Industry Rank places the REIT and Equity Trust - Residential sector in the bottom 44% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8]
NexPoint Residential Trust(NXRT) - 2025 Q1 - Quarterly Results
2025-04-29 12:16
Exhibit 99.1 29 April 2025 | NYSE: NXRT EARNINGS SUPPLEMENT: FIRST QUARTER 2025 TABLE OF CONTENTS | Earnings Release | 1 | | --- | --- | | Cautionary Statement Regarding Forward-Looking Statements | 2 | | Overview | 3 | | Highlights of Recent Activity | 4 | | Financial Summary | 6 | | 2025 Full Year Guidance | 7 | | Components of Net Asset Value | 8 | | Consolidated Balance Sheets | 9 | | Consolidated Statements of Operations | 10 | | NOI and Same Store NOI | 11 | | Q1 Same Store Results | 12 | | Q1 Same St ...
NexPoint Residential Trust Inc. (NXRT) Surges 7.6%: Is This an Indication of Further Gains?
ZACKS· 2025-04-10 15:20
NexPoint Residential Trust Inc. (NXRT) shares soared 7.6% in the last trading session to close at $34.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.7% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This real estate investment trust is expected to post quarterly fu ...
NexPoint Residential Trust, Inc. Announces First Quarter 2025 Earnings Conference Call
Prnewswire· 2025-04-03 13:00
DALLAS, April 3, 2025 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today that the Company is scheduled to host a conference call on Tuesday, April 29, 2025, at 11:00 a.m. ET (10:00 am CT), to discuss first quarter 2025 financial results. The conference call can be accessed live over the phone by dialing 888-660-4430 or, for international callers, +1 646-960-0537 and using passcode Conference ID: 5001576. A live audio webcast of the call will be availabl ...
NexPoint Residential Trust(NXRT) - 2024 Q4 - Annual Report
2025-02-26 21:11
Financial Performance - Net income decreased primarily due to a reduction in gains on sales of real estate by $13.7 million and rental income by $18.2 million, alongside an increase in loss on extinguishment of debt and modification costs of $21.6 million[30]. - As of December 31, 2024, the company had total indebtedness of $1.5 billion at a weighted average interest rate of 5.56%[404]. - 73% of the company's floating rate mortgage debt is effectively fixed through interest rate swap agreements, resulting in an adjusted weighted average interest rate of 2.90%[404]. - The company has entered into interest rate cap agreements that effectively cap SOFR on $2.6 billion of floating rate mortgage debt at a weighted average rate of 6.31%[405]. - A quarter point change in SOFR results in an approximate increase to annual interest expense costs of $1,000 for floating rate indebtedness[407]. - An increase of 0.50% in interest rates would lead to an annual increase in interest expense of $2,000[407]. - A 0.75% increase in interest rates would result in an annual increase to interest expense of $3,000[407]. - A 1.00% increase in interest rates would cause an annual increase in interest expense of $4,000[407]. Real Estate Portfolio - As of December 31, 2024, the real estate portfolio consisted of 35 properties with 12,984 units, approximately 94.7% occupancy, and a weighted average monthly effective rent of $1,491 per occupied unit[31]. - The company completed full and partial renovations on 8,348 units, resulting in an average monthly rental increase of $175 per unit and an average renovation cost of $10,123 per unit[41]. - The average effective monthly rent per unit is calculated as the average contractual rent for commenced leases minus tenant concessions, divided by the number of units under commenced leases[33]. - The company intends to acquire primarily Class B multifamily properties at discounts to replacement costs, targeting markets with strong job growth and household formation[34]. - The company plans to hold multifamily properties for at least three years, with potential early sales if market conditions are favorable[43]. Cash Position and Financial Strategy - The company had a cash position of $53.9 million as of December 31, 2024, with $3.2 million reserved for future renovations and $27.6 million for lender-required escrows and security deposits[33]. - The company aims to reduce leverage to 40-45% loan-to-value over time by increasing property values and refinancing long-term holdings[35]. Management and Advisory Fees - The company is externally managed by an adviser that has a fiduciary responsibility to maximize long-term stockholder value[50]. - The advisory fee on Contributed Assets is capped at $4.5 million per calendar year to limit fees post Spin-Off[54]. - The administrative fee on Contributed Assets is capped at $890,000 per calendar year, while New Assets are not subject to this cap[58]. - The Expense Cap for reimbursement of Adviser Operating Expenses and fees is set at 1.5% of Average Real Estate Assets per calendar year[62]. - The Advisory Agreement has a one-year term and was unanimously renewed by the Board on February 24, 2025[63]. - BH operates and leases properties for the company, charging a management fee of approximately 3% of monthly gross income from each property[71]. - The management fee calculation includes all receipts from property operations, excluding insurance or condemnation awards[76]. - BH receives a construction supervision fee of 5-6% of total project costs if it performs these services[76]. - The company is required to indemnify its Adviser and reimburse reasonable expenses in certain proceedings[68]. - The Adviser is obligated to provide sufficient resources to manage the company's operations despite engaging in other business ventures[69]. - The Advisory Agreement may be terminated with 30 to 60 days' written notice by either party[64]. Risk Management - The company expects to manage exposure to interest rate risk by maintaining a mix of fixed and floating rates for its indebtedness[405]. - The company is exposed to credit risk in derivative financial instruments due to potential failure of counterparties to perform[408]. - Credit risk arises when the fair value of a derivative financial instrument is positive, indicating that counterparties owe the company[408]. - The company aims to minimize credit risk by transacting with major financial institutions that have high credit ratings[408]. Compliance and Operations - The company believes it operates its properties in substantial compliance with the Fair Housing Act, which prohibits discrimination in housing[84]. - The company has conducted Phase I Environmental Site Assessments at all properties, with no known past or present contamination identified that would materially affect business operations[88]. - The company maintains comprehensive general liability coverage on its properties, with limits customary within the industry[92]. - The company competes with numerous housing alternatives, including rental apartments, condominiums, and single-family homes, affecting its ability to lease units and set rental rates[94]. - The company has two employees as of December 31, 2024, and maintains a workplace free from discrimination or harassment[96].
NexPoint Residential Trust(NXRT) - 2024 Q4 - Earnings Call Transcript
2025-02-25 19:53
Financial Data and Key Metrics Changes - For Q4 2024, the company reported a net loss of $26.9 million or $1.06 per diluted share on total revenue of $63.8 million, compared to a net income of $18.4 million or $0.70 per diluted share on total revenue of $68.9 million in Q4 2023, indicating a significant decline in profitability [13] - Net operating income (NOI) for Q4 2024 was $38.9 million, down 7.6% from $42.2 million in Q4 2023 [13] - Core FFO for Q4 2024 was $17.7 million or $0.68 per diluted share, compared to $0.75 per diluted share in Q4 2023 [15] - For the full year 2024, net income was $1.1 million or $0.04 per diluted share, down from $44.3 million or $1.59 per diluted share in 2023 [16] Business Line Data and Key Metrics Changes - Same-store rental income increased by 90 basis points, while same-store occupancy remained stable at 94.7% [14] - The company completed 58 renovations in Q4 2024, achieving an average monthly rent premium of $150 and a 19.2% return on investment [15] - For the full year, same-store rental income increased by 2.3% and same-store NOI improved by 90 basis points despite rising expenses [17] Market Data and Key Metrics Changes - Occupancy rates in key markets showed growth, with DFW and Charlotte finishing at 96.3% and 97% respectively [28] - Notable growth markets included Las Vegas at 8.6%, Orlando at 6.8%, and Raleigh at 5.2% [32] - The company expects top-performing revenue markets in 2025 to be South Florida, Las Vegas, Raleigh, Nashville, and Atlanta, with growth projections of 2% to 4% [36] Company Strategy and Development Direction - The company plans to continue its value-add strategy, targeting 15% to 20% returns on investment for renovations [39] - In 2025, the company anticipates completing 425 full interior upgrades at an average cost of $18,000 per unit, generating a $269 average monthly premium [40] - The company is focused on margin expansion and increased resident satisfaction, with expectations for a transition year leading to growth in 2026 and 2027 [44] Management's Comments on Operating Environment and Future Outlook - Management noted that bad debt has improved, with expectations of further reductions in 2025 [49] - The company is being conservative in its guidance, factoring in potential interest rate changes and market conditions [64] - The management expressed confidence in the Raleigh market despite current pressures, anticipating improvements in the second half of the year [52] Other Important Information - The company reported a NAV per share range of $44.56 to $58.52, with a midpoint of $51.54, reflecting stability in capital markets [19] - The company has $373 million of available liquidity as it heads into 2025, with plans to finalize a recasting of the corporate credit facility [43] - The board declared a quarterly dividend of $0.51 per share, payable on March 31, 2025 [25] Q&A Session Summary Question: What drove the positive rental income result in Atlanta despite occupancy declines? - Management indicated that higher options and the rollout of bulk WiFi contributed to total revenue growth, offsetting some occupancy losses [48] Question: What caused the decrease in occupancy in the Raleigh-Durham market? - Management attributed the decline to supply pressures and personnel changes, but remains optimistic about the market's future [51] Question: Are there any changes to the renovation plans based on current market conditions? - Management confirmed that renovations are prioritized in markets where rates can still be pushed, with plans to double the output compared to the previous year [55] Question: How will swap expirations affect interest expenses in 2025? - Management noted that expiring swaps and a decline in spreads would provide a benefit, reducing total interest expenses [63]
NexPoint Residential Trust(NXRT) - 2024 Q4 - Earnings Call Transcript
2025-02-25 17:00
Financial Data and Key Metrics Changes - The net loss for Q4 2024 was $26.9 million or $1.06 per diluted share, compared to a net income of $18.4 million or $0.70 per diluted share in Q4 2023, reflecting a significant decline in profitability [8] - Total revenue for Q4 2024 was $63.8 million, down from $68.9 million in the same period in 2023 [8] - For the full year 2024, net income was $1.1 million or $0.04 per diluted share, compared to $44.3 million or $1.59 per diluted share in 2023 [10] - Core FFO for Q4 2024 was $17.7 million or $0.68 per diluted share, down from $0.75 per diluted share in Q4 2023 [9] - The company reported a NAV per share range of $44.56 to $58.52, with a midpoint of $51.54, reflecting stability in capital markets [11] Business Line Data and Key Metrics Changes - Net operating income (NOI) for Q4 2024 was $38.9 million on 35 properties, down from $42.2 million on 38 properties in Q4 2023, marking a 7.6% decrease [8] - Same store rental income increased by 2.3% for the full year, while same store occupancy remained stable at 98.7% [10] - The company completed 58 renovations in Q4 2024, achieving an average monthly rent premium of $150 and a 19.2% return on investment [9] Market Data and Key Metrics Changes - Occupancy rates in the DFW and Charlotte markets showed significant growth, finishing the year at 96.4% [17] - The same store NOI margin for the full year 2024 was 61.61%, with five of the ten same store markets growing NOI by at least 3% [20] Company Strategy and Development Direction - The company plans to continue its value-add business strategy, focusing on renovations and upgrades to drive rent growth [9][24] - Guidance for 2025 includes expectations for same store NOI growth to range from a 3.5% decline to a 50 basis point increase, with a midpoint projecting a 1.5% reduction year over year [21] - The company is prioritizing renovations in markets where it can push rates, particularly in South Florida and Raleigh [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in 2026 and 2027, particularly in the second half of the year [26] - The company noted a positive trend in bad debt, expecting improvement in 2025 [30] - Management acknowledged challenges in certain markets, such as Raleigh, but remains confident in the long-term outlook [31] Other Important Information - The company paid a dividend of $0.51 per share on December 31, 2024, with a payout ratio of 68% of core FFO [12] - NXRT has $373 million of available liquidity as it heads into 2025, providing flexibility for future investments [25] Q&A Session Summary Question: What drove the positive rental income result in Atlanta despite occupancy declines? - Management indicated that higher occupancy and the rollout of bulk WiFi contributed to total revenue growth in Atlanta [28][29] Question: Can you explain the decrease in occupancy in the Raleigh-Durham market? - Management noted that increased supply and personnel changes affected occupancy, but they remain optimistic about the market's recovery [30][31] Question: Any updates on the full interior upgrades plan? - Management confirmed that they are prioritizing renovations in markets with potential for rate increases and expect to double the output compared to last year [32][33] Question: How will interest expense be affected in 2025? - Management highlighted a $0.12 benefit from swap expirations and a reduction in total interest expense due to improved terms [36][38]
Here's What Key Metrics Tell Us About NexPoint Residential Trust Inc. (NXRT) Q4 Earnings
ZACKS· 2025-02-25 16:30
Core Viewpoint - NexPoint Residential Trust Inc. reported a decline in revenue for the quarter ended December 2024, with a slight earnings surprise but a negative EPS surprise compared to analyst expectations [1]. Financial Performance - Revenue for the quarter was $63.79 million, down 7% year-over-year, and exceeded the Zacks Consensus Estimate by 0.31% [1]. - Earnings per share (EPS) was $0.78, compared to $0.70 in the same quarter last year, but fell short of the consensus estimate of $0.80 by 2.50% [1]. - Rental income was reported at $61.57 million, which was below the two-analyst average estimate of $63.15 million, reflecting a year-over-year decline of 7.9% [4]. - Other income was $1.26 million, also below the two-analyst average estimate of $1.86 million, marking a year-over-year decrease of 25.8% [4]. - The diluted net earnings per share was reported at -$1.06, compared to the four-analyst average estimate of -$0.61 [4]. Market Performance - Shares of NexPoint Residential Trust Inc. have returned -1.2% over the past month, slightly outperforming the Zacks S&P 500 composite's -1.8% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3].
NexPoint Residential Trust Inc. (NXRT) Q4 FFO Lag Estimates
ZACKS· 2025-02-25 15:45
Financial Performance - NexPoint Residential Trust Inc. reported quarterly funds from operations (FFO) of $0.78 per share, missing the Zacks Consensus Estimate of $0.80 per share, but showing an increase from $0.77 per share a year ago, resulting in an FFO surprise of -2.50% [1] - The company posted revenues of $63.79 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.31%, although this is a decrease from year-ago revenues of $68.56 million [2] - The current consensus FFO estimate for the coming quarter is $0.78 on revenues of $64.15 million, and for the current fiscal year, it is $3.19 on revenues of $260.08 million [7] Market Performance - NexPoint Residential Trust Inc. shares have lost approximately 6.7% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The company has surpassed consensus FFO estimates two times over the last four quarters [2] Industry Outlook - The REIT and Equity Trust - Residential industry, to which NexPoint belongs, is currently in the bottom 25% of the Zacks industry rankings, indicating potential challenges ahead [8] - The outlook for the industry can significantly impact the performance of NexPoint's stock [8]