DALLAS, Sept. 30, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today that the Company's properties did not sustain any material damages as a result of Hurricane Helene. The Company plans to provide additional updates in the event of a material change. About NXRT NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well- ...

Klaus Vedfelt Leverage is one of the most misunderstood concepts in finance. Investors have a tendency to view debt on balance sheets as the sword of Damocles, hanging overhead by a single hair. Negative perceptions of leverage in real estate spawned in the Financial Crisis as dozens of REITs had to turn keys over to banks when debt overwhelmed them. Fear of leverage has persisted and to this day, low-debt REITs trade at substantial premiums over higher-debt REITs. There is certainly truth to the idea that ...

hrabar/iStock via Getty Images Investment Thesis With a market cap of $1.13B, NexPoint Residential Trust (NYSE:NXRT) is a relatively small multifamily residential REIT. A couple of days ago, it released its Q2 results, and updated its guidance for 2024. In this article, we will look at the key takeaways from the latest earnings and the company's overall strategy. Both make NXRT, in my eyes, an attractive pick, although short-term headwinds exist. The Company And Its Strategy NXRT has traded publicly since 2 ...

This quarterly report represents an FFO surprise of 1.27%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.86 per share when it actually produced FFO of $0.86, delivering no surprise. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call. What's Next for NexPoint Residential Trust Inc. NexPoint Residential Trust Inc. (NXRT) came ...

Executive Summary & Highlights [Second Quarter 2024 Overview](index=3&type=section&id=Second%20Quarter%202024%20Overview) NXRT reported $10.6 million net income, raised 2024 guidance, completed a $39.3 million property disposition, and repurchased $14.6 million in stock Q2 2024 Key Financial Metrics vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Income (Loss) | $10.6M | $(4.0)M | | FFO | $16.3M | $19.8M | | Core FFO | $17.9M | $20.4M | | AFFO | $20.9M | $23.2M | - Raised full-year 2024 guidance for Core FFO per diluted share and Same Store NOI[4](index=4&type=chunk)[38](index=38&type=chunk)[63](index=63&type=chunk) - Completed the disposition of Radbourne Lake in Charlotte, NC for approximately **$39.3 million**, generating a gain of **$18.8 million**[13](index=13&type=chunk)[22](index=22&type=chunk) - Repurchased and retired **438,678 shares** of common stock at an average price of **$33.19 per share**, totaling approximately **$14.6 million**[4](index=4&type=chunk)[22](index=22&type=chunk) - Q2 Same Store NOI increased by **2.4%** year-over-year, while YTD Same Store NOI increased by **3.2%**[22](index=22&type=chunk)[7](index=7&type=chunk) Financial Performance [Quarterly and Year-to-Date Results](index=4&type=section&id=Quarterly%20and%20Year-to-Date%20Results) NXRT reported Q2 2024 net income of $10.6 million and YTD net income of $36.9 million, largely driven by real estate sales gains [Second Quarter 2024 Financial Results](index=4&type=section&id=Second%20Quarter%202024%20Financial%20Results) Q2 2024 saw total revenues of $64.2 million and a net income of $10.6 million, a significant improvement year-over-year Q2 2024 vs. Q2 2023 Financial Summary | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total Revenues | $64.2M | $69.6M | | Net Income (Loss) | $10.6M | $(4.0)M | | Net Income (Loss) per Diluted Share | $0.40 | $(0.15) | | NOI | $38.9M | $42.0M | | Core FFO per Diluted Share | $0.68 | $0.77 | | AFFO per Diluted Share | $0.80 | $0.88 | - The significant improvement in net income from a loss in Q2 2023 was primarily driven by an **$18.7 million** increase in gain on sales of real estate[25](index=25&type=chunk) [Year-to-Date 2024 Financial Results](index=4&type=section&id=Year-to-Date%202024%20Financial%20Results) YTD 2024 revenues reached $131.8 million, with net income of $36.9 million, primarily due to real estate sales gains Six Months Ended June 30, 2024 vs. 2023 Financial Summary | Metric | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Total Revenues | $131.8M | $138.8M | | Net Income (Loss) | $36.9M | $(7.8)M | | Net Income (Loss) per Diluted Share | $1.40 | $(0.31) | | NOI | $80.0M | $83.1M | | Core FFO per Diluted Share | $1.43 | $1.49 | | AFFO per Diluted Share | $1.65 | $1.69 | - The primary driver for the **$44.7 million** positive swing in net income for the first six months was a **$50.4 million** increase in gain on sales of real estate compared to the prior year period[7](index=7&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) Consolidated statements show total assets of $1.99 billion and total liabilities of $1.49 billion as of June 30, 2024 [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet highlights total assets of $1.99 billion and total liabilities of $1.49 billion as of June 30, 2024 Balance Sheet Summary | Account | June 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Net Real Estate Investments | $1,845,235 | $1,968,100 | | Cash and cash equivalents | $21,262 | $12,367 | | **Total Assets** | **$1,988,722** | **$2,107,645** | | Mortgages payable, net | $1,454,418 | $1,453,787 | | **Total Liabilities** | **$1,491,959** | **$1,607,775** | | **Total Stockholders' Equity** | **$491,145** | **$494,624** | [Consolidated Statements of Operations](index=13&type=section&id=Consolidated%20Statements%20of%20Operations) The statement of operations shows YTD 2024 total revenues of $131.8 million and net income of $37.0 million Statement of Operations Summary | Account | Q2 2024 (in thousands) | Q2 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $64,238 | $69,569 | $131,815 | $138,796 | | Total Expenses | $57,442 | $59,522 | $115,737 | $115,627 | | Gain on sales of real estate | $18,686 | $0 | $50,395 | $0 | | Interest Expense | $(13,971) | $(14,524) | $(28,362) | $(31,263) | | **Net Income (Loss)** | **$10,638** | **$(3,968)** | **$37,040** | **$(7,866)** | Operational Performance [Same Store Portfolio Performance](index=15&type=section&id=Same%20Store%20Portfolio%20Performance) Same Store portfolio achieved 2.4% Q2 and 3.2% YTD NOI growth, driven by revenue increases and stable occupancy [Q2 2024 Same Store Results](index=15&type=section&id=Q2%202024%20Same%20Store%20Results) Q2 2024 Same Store NOI increased by 2.4%, with revenues up 2.3% and expenses up 1.2% Q2 Same Store Performance vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $62,905K | $61,520K | 2.3% | | Operating Expenses | $24,529K | $24,247K | 1.2% | | **NOI** | **$38,442K** | **$37,532K** | **2.4%** | | Ending Occupancy | 94.1% | 94.1% | 0.0% | | Average Rent per Unit | $1,520 | $1,535 | -1.0% | [YTD 2024 Same Store Results](index=19&type=section&id=YTD%202024%20Same%20Store%20Results) YTD 2024 Same Store NOI grew by 3.2%, with revenues increasing by 2.9% and expenses by 1.5% YTD Same Store Performance vs. YTD 2023 | Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $126,302K | $122,704K | 2.9% | | Operating Expenses | $48,816K | $48,094K | 1.5% | | **NOI** | **$77,660K** | **$75,222K** | **3.2%** | | Ending Occupancy | 94.1% | 94.1% | 0.0% | | Average Rent per Unit | $1,520 | $1,535 | -1.0% | [Value-Add Program](index=23&type=section&id=Value-Add%20Program) The value-add program completed 59 upgrades in Q2 2024 with a **20.1% ROI**, and cumulatively shows strong returns across various initiatives - During Q2 2024, the company completed **59** full and partial upgrades, achieving an average monthly rent premium of **$240** and a **20.1%** Return on Investment (ROI)[22](index=22&type=chunk) Cumulative Value-Add Program Summary (Since Inception) | Program Type | Units Completed | Avg. Monthly Rent Increase | ROI | | :--- | :--- | :--- | :--- | | Interiors (Full & Partial) | 8,271 | $175 | 20.8% | | Kitchen & Laundry Appliances | 4,659 | $48 | 62.0% | | Smart Home Technology | 11,389 | $43 | 37.2% | [Capital Expenditures](index=22&type=section&id=Capital%20Expenditures) Capital expenditures significantly decreased in Q2 2024 to $6.1 million and YTD to $13.0 million, driven by reduced rehab and maintenance spending Capital Expenditures Summary | Category | Q2 2024 (in thousands) | Q2 2023 (in thousands) | % Change | YTD 2024 (in thousands) | YTD 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Capitalized Rehab | $1,952 | $11,922 | -83.6% | $4,157 | $23,237 | -82.1% | | Capitalized Maintenance | $4,182 | $6,958 | -39.9% | $8,877 | $11,932 | -25.6% | | **Total Capital Expenditures** | **$6,134** | **$18,880** | **-67.5%** | **$13,034** | **$35,169** | **-62.9%** | Portfolio & Debt Management [Property Portfolio Overview](index=6&type=section&id=Property%20Portfolio%20Overview) NXRT's portfolio comprises 36 properties in the Sun Belt, with key markets like Phoenix and South Florida, facing average 5.6% new supply growth Portfolio Composition by Market (% of Units) | Market | % of Units | | :--- | :--- | | Phoenix | 15.2% | | South Florida | 15.0% | | Dallas/Fort Worth | 14.9% | | Atlanta | 12.7% | | Nashville | 10.2% | | Orlando | 8.9% | | Las Vegas | 8.8% | | Other | 14.3% | - The company's portfolio faces an average 3-year new supply growth of **5.6%** in its submarkets, with notable markets like Huntersville/Cornelius (CHA) at **37.5%** and Far North Raleigh (RDU) at **12.1%**[16](index=16&type=chunk) [Debt & Leverage](index=26&type=section&id=Debt%20%26%20Leverage) Total outstanding debt was $1.46 billion with a 59% leverage ratio, featuring a staggered maturity schedule and predominantly floating-rate debt Debt Summary (as of June 30, 2024) | Metric | Amount (in thousands) | | :--- | :--- | | Total Mortgage Debt | $1,462,935 | | Credit Facilities | $0 | | **Total Debt Outstanding** | **$1,462,935** | | Leverage Ratio | 59% | Debt Maturity Schedule (Principal Payments) | Period | Principal Due (in thousands) | | :--- | :--- | | Remainder of 2024 | $147 | | 2025 | $133,392 | | 2026 | $290,324 | | 2027 | $0 | | 2028 | $81,042 | | Thereafter | $958,030 | - As of June 30, 2024, the company's total indebtedness of **$1.5 billion** had an adjusted weighted average interest rate of **3.55%**, with **75%** of its **$1.4 billion** in floating rate debt effectively covered by interest rate swaps[100](index=100&type=chunk) [Hedging Activities](index=26&type=section&id=Hedging%20Activities) NXRT manages interest rate risk with $1.0675 billion in interest rate swaps at a 0.9807% fixed rate and various interest rate caps - The company has interest rate swap agreements with a total notional amount of **$1.0675 billion**, effectively fixing the interest rate on a significant portion of its floating-rate debt, with a weighted average fixed rate of **0.9807%**[111](index=111&type=chunk) - A forward interest rate swap is in place with an effective date of September 1, 2026, for a notional amount of **$92.5 million** at a fixed rate of **1.7980%**[97](index=97&type=chunk)[111](index=111&type=chunk) - NXRT holds numerous interest rate cap agreements on individual property mortgages to limit exposure to rising interest rates, with strike rates ranging from **2.74%** to **6.82%**[112](index=112&type=chunk) Full Year 2024 Guidance & Outlook [2024 Full Year Guidance](index=10&type=section&id=2024%20Full%20Year%20Guidance) NXRT revised its 2024 guidance, projecting Core FFO per diluted share of $2.66-$2.79 and Same Store NOI growth of -0.6% to 1.6% Revised Full Year 2024 Guidance Summary | Metric | Low-End | Mid-Point | High-End | | :--- | :--- | :--- | :--- | | Earnings (loss) per diluted share | $(1.22) | $(1.15) | $(1.08) | | Core FFO per diluted share | $2.66 | $2.72 | $2.79 | | Same Store NOI Growth | -0.6% | 0.5% | 1.6% | | Dispositions (in millions) | $150.0 | $175.0 | $200.0 | | Acquisitions (in millions) | $0 | $50.0 | $100.0 | [Strategic Outlook and Net Asset Value](index=11&type=section&id=Strategic%20Outlook%20and%20Net%20Asset%20Value) NXRT's 'Path to Growth' strategy aims to enhance EPS through debt refinancing, with an estimated NAV per share of $49.77 to $61.97 - The 'NXRT Path to Growth: 2025-2027' strategy includes refinancing debt to lower the average SOFR spread from **158 bps** to **100-110 bps**, which is estimated to benefit EPS by **$0.15-$0.20** annually[6](index=6&type=chunk)[26](index=26&type=chunk) Net Asset Value (NAV) Summary | Component | Value Range (Min) | Value Range (Max) | | :--- | :--- | :--- | | Real Estate Value | $2,663,332K | $2,982,345K | | Total Value of Assets | $2,802,280K | $3,121,293K | | Total Value of Liabilities | $1,500,156K | $1,500,156K | | **Net Asset Value** | **$1,302,124K** | **$1,621,137K** | | **Est. NAV / Share** | **$49.77** | **$61.97** | Appendix [Non-GAAP Reconciliations](index=21&type=section&id=Non-GAAP%20Reconciliations) Detailed reconciliations of non-GAAP financial measures, including FFO, Core FFO, AFFO, NOI, and Same Store NOI, are presented Reconciliation of Net Income (Loss) to FFO, Core FFO, and AFFO (Q2 2024) | Metric | Amount (in thousands) | | :--- | :--- | | Net income (loss) | $10,638 | | Depreciation and amortization | $24,442 | | Gain on sales of real estate | $(18,686) | | **FFO attributable to common stockholders** | **$16,330** | | Adjustments (casualty loss, etc.) | $1,549 | | **Core FFO attributable to common stockholders** | **$17,879** | | Adjustments (equity comp, etc.) | $3,044 | | **AFFO attributable to common stockholders** | **$20,923** | Reconciliation of Net Income (Loss) to NOI (Q2 2024) | Metric | Amount (in thousands) | | :--- | :--- | | Net income (loss) | $10,638 | | Adjustments (Interest, D&A, G&A, etc.) | $28,229 | | **NOI** | **$38,867** | | Less Non-Same Store NOI | $(425) | | **Same Store NOI** | **$38,442** | [Definitions](index=32&type=section&id=Definitions) Key non-GAAP financial measures such as NOI, FFO, Core FFO, and AFFO are defined to clarify their application in performance analysis - **NOI (Net Operating Income):** Calculated by adjusting net income for interest expense, corporate expenses, depreciation, gains/losses on sales, and other non-property specific items to evaluate property performance[121](index=121&type=chunk) - **FFO (Funds from Operations):** Defined by NAREIT as net income excluding gains/losses from real estate dispositions plus real estate depreciation and amortization[121](index=121&type=chunk) - **Core FFO & AFFO (Adjusted FFO):** Core FFO adjusts FFO for non-recurring items like casualty losses or debt extinguishment costs, while AFFO further adjusts Core FFO for non-cash items like equity-based compensation[121](index=121&type=chunk)

NXRT Raises Full Year 2024 Guidance, Reports Net Income of $10.6 million, $39.25 million of Disposition Activity and $14.6 million of Share Repurchase Activity DALLAS, July 30, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the second quarter ended June 30, 2024. Highlights NEXPOINT View PDF NXRT Q2 2024 Earnings Supplement NXRT1 reported Net Income, FFO2, Core FFO2 and AFFO2 of $10.6M, $16.3M, $17.9M and $20.9M, respectively, attributable to common stockhol ...

Company Overview - NexPoint Residential Trust, Inc. (NYSE: NXRT) is a publicly traded Real Estate Investment Trust (REIT) focused 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 [2]. Dividend Announcement - The board of directors of NexPoint Residential Trust approved a dividend of $0.46242 per share of NXRT common stock, which is payable on September 30, 2024, to stockholders of record on September 13, 2024 [1].

Core Viewpoint - NexPoint Residential Trust, Inc. is set to host a conference call on July 30, 2024, to discuss its second quarter 2024 financial results [1]. Group 1: Conference Call Details - The conference call will take place at 11:00 a.m. ET (10:00 a.m. CT) [1]. - Access to the call can be made via phone at 888-660-4430 for domestic callers and +1 646-960-0537 for international callers, using passcode Conference ID: 5001576 [2]. - A live audio webcast will be available on the Company's website, and a replay will be accessible for 60 days post-call [2][3]. Group 2: Financial Results Announcement - The Company plans to issue a press release with its second quarter 2024 financial results before the market opens on July 30, 2024 [3]. Group 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 areas, primarily in the Southeastern and Southwestern United States [4]. - NexPoint Residential Trust is externally advised by NexPoint Real Estate Advisors, L.P., which has extensive real estate experience [4].

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered inve ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36663 NexPoint Residential Trust, Inc. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-1881359 (State or othe ...