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 ...

[Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Forward-looking statements are subject to risks and uncertainties, with actual results potentially differing materially - The report contains forward-looking statements subject to risks and uncertainties, including those related to liquidity, capital resources, property performance, and future financial performance[8](index=8&type=chunk) - Actual results may vary materially from projections due to known and unknown risks, trends, uncertainties, and factors beyond the company's control[9](index=9&type=chunk) - Key risks include unfavorable market and economic conditions, macroeconomic trends (inflation, high interest rates), real estate ownership risks, limited asset disposal ability, geographic concentration, and competition[10](index=10&type=chunk) [PART I—FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents unaudited consolidated financial statements and management's discussion of financial condition and results [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Q1 2024, including balance sheets, operations, equity, cash flows, and notes [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202024%20(Unaudited)%20and%20December%2031%2C%202023) This section details the company's financial position, including assets, liabilities, and equity, for Q1 2024 and year-end 2023 Consolidated Balance Sheets | Metric | March 31, 2024 (Unaudited) | December 31, 2023 | | :-------------------------------- | :--------------------------- | :------------------ | | Total Assets (in thousands) | $2,042,686 | $2,107,645 | | Total Liabilities (in thousands) | $1,524,825 | $1,607,775 | | Total Stockholders' Equity (in thousands) | $512,779 | $494,624 | - Total Assets decreased by **$64,959 thousand (3.1%)** from December 31, 2023, to March 31, 2024[17](index=17&type=chunk) - Total Liabilities decreased by **$82,950 thousand (5.2%)** from December 31, 2023, to March 31, 2024[17](index=17&type=chunk) [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=9&type=section&id=Consolidated%20Unaudited%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) This section presents the company's operational performance and comprehensive income (loss) for Q1 2024 and Q1 2023 Consolidated Statements of Operations and Comprehensive Income (Loss) | Metric (in thousands, except per share) | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | Total revenues | $67,577 | $69,227 | $(1,650) | -2.4% | | Total expenses | $58,295 | $56,105 | $2,190 | 3.9% | | Operating income before gain on sales of real estate | $9,282 | $13,122 | $(3,840) | -29.3% | | Gain on sales of real estate | $31,709 | $0 | $31,709 | N/A | | Operating income | $40,991 | $13,122 | $27,869 | 212.4% | | Net income (loss) attributable to common stockholders | $26,298 | $(3,883) | $30,181 | N/M | | Earnings (loss) per share - diluted | $1.00 | $(0.15) | $1.15 | N/M | - Net income attributable to common stockholders significantly improved from a loss of **$(3,883) thousand** in Q1 2023 to a gain of **$26,298 thousand** in Q1 2024, primarily driven by a **$31.7 million** gain on real estate sales[19](index=19&type=chunk)[124](index=124&type=chunk) [Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Consolidated%20Unaudited%20Statements%20of%20Stockholders'%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) This section outlines changes in the company's stockholders' equity for the three months ended March 31, 2024 and 2023 Consolidated Statements of Stockholders' Equity | Metric (in thousands) | December 31, 2023 | March 31, 2024 | | :-------------------------------------- | :------------------ | :------------- | | Total Stockholders' Equity | $494,624 | $512,779 | | Net income attributable to common stockholders | N/A | $26,298 | | Common stock dividends declared | N/A | $(12,280) | | Other comprehensive income | N/A | $2,672 | - Total Stockholders' Equity increased by **$18,155 thousand** from December 31, 2023, to March 31, 2024, primarily due to net income and other comprehensive income, partially offset by common stock dividends declared[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Unaudited%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) This section details the company's cash inflows and outflows from operating, investing, and financing activities for Q1 2024 and Q1 2023 Selected Cash Flow Data | Cash Flow Activity (in thousands) | Q1 2024 | Q1 2023 | Change ($) | | :-------------------------------- | :------ | :------ | :--------- | | Net cash provided by operating activities | $19,687 | $27,923 | $(8,236) | | Net cash provided by (used in) investing activities | $94,169 | $(16,505) | $110,674 | | Net cash used in financing activities | $(90,386) | $(16,142) | $(74,244) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $23,470 | $(4,724) | $28,194 | - Net cash provided by investing activities significantly increased by **$110.7 million** YoY, primarily due to **$102.7 million** in net proceeds from sales of real estate in Q1 2024[25](index=25&type=chunk)[177](index=177&type=chunk) - Net cash used in financing activities increased by **$74.2 million** YoY, mainly due to higher mortgage and credit facility payments[25](index=25&type=chunk)[178](index=178&type=chunk) [Notes to Consolidated Unaudited Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Unaudited%20Financial%20Statements) This section provides detailed explanatory notes supporting the consolidated unaudited financial statements [1. Organization and Description of Business](index=13&type=section&id=1.%20Organization%20and%20Description%20of%20Business) This section describes NexPoint Residential Trust, Inc.'s business, investment focus, and management structure - NexPoint Residential Trust, Inc. (NXRT) is a Maryland REIT focused on "value-add" multifamily investments primarily in the Southeastern and Southwestern United States[29](index=29&type=chunk)[31](index=31&type=chunk) - The company is externally managed by NexPoint Real Estate Advisors, L.P. (the "Adviser") through an Advisory Agreement renewed on February 26, 2024, for a one-year term[30](index=30&type=chunk) - Investment objectives include maximizing cash flow and property value, acquiring properties with growth potential, providing quarterly cash distributions, and achieving long-term capital appreciation[31](index=31&type=chunk) [2. Summary of Significant Accounting Policies](index=13&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the key accounting principles and estimates used in preparing the financial statements - Real estate assets are reviewed for impairment based on estimated future cash flows and liquidation value; no impairment loss was recorded as of March 31, 2024[35](index=35&type=chunk) - Two properties were classified as held for sale as of March 31, 2024, down from three at December 31, 2023[36](index=36&type=chunk) - The company has applied ASC 848 elections for reference rate reform (LIBOR to SOFR transition) and is evaluating ASU 2023-07 on segment reporting[37](index=37&type=chunk)[38](index=38&type=chunk) [3. Real Estate Investments](index=14&type=section&id=3.%20Real%20Estate%20Investments) This section provides details on the company's real estate acquisitions, dispositions, and casualty events - No real estate acquisitions occurred during the three months ended March 31, 2024, or 2023[39](index=39&type=chunk) Property Disposition (Q1 2024) | Property Name | Location | Date of Sale | Sales Price (in thousands) | Net Cash Proceeds (in thousands) | Gain on Sale (in thousands) | | :------------ | :------- | :----------- | :------------------------- | :------------------------------- | :-------------------------- | | Old Farm | Houston, Texas | March 1, 2024 | $103,000 | $102,704 | $31,709 | - The company recognized a **$0.2 million** casualty gain in Q1 2024, compared to a **$0.8 million** casualty loss in Q1 2023, with down units due to casualty events decreasing from 107 to 23[43](index=43&type=chunk)[44](index=44&type=chunk) [4. Debt](index=17&type=section&id=4.%20Debt) This section details the company's mortgage debt, credit facility, and scheduled debt maturities Mortgage Debt Summary | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Mortgages payable, net (in thousands) | $1,454,101 | $1,453,787 | | Weighted average interest rate | 6.874% | 6.900% | | Adjusted weighted average interest rate (with swaps) | 3.470% | N/A | - The company paid down **$24.0 million** on the Corporate Credit Facility during Q1 2024, resulting in **$0.0 million** outstanding as of March 31, 2024, with **$350.0 million** available for borrowing[50](index=50&type=chunk) Scheduled Debt Maturities (in thousands) | Year | Operating Properties | Held For Sale Properties | Credit Facility | Total | | :--- | :------------------- | :----------------------- | :-------------- | :------ | | 2024 | $222 | $15,274 | $0 | $15,496 | | 2025 | $133,386 | $20,000 | $0 | $153,386 | | 2026 | $290,324 | $0 | $0 | $290,324 | [5. Fair Value of Derivatives and Financial Instruments](index=21&type=section&id=5.%20Fair%20Value%20of%20Derivatives%20and%20Financial%20Instruments) This section provides information on the fair value of the company's derivative instruments and other financial instruments Interest Rate Swaps (as of March 31, 2024) | Notional Amount (in thousands) | Weighted Average Fixed Rate | | :----------------------------- | :-------------------------- | | $1,167,500 | 1.0682% | Interest Rate Caps (as of March 31, 2024) | Notional Amount (in thousands) | Weighted Average Strike Rate | | :----------------------------- | :--------------------------- | | $1,340,080 | 5.90% | - Interest rate products designated as hedges recognized a gain of **$15,590 thousand** in OCI and reclassified a gain of **$12,907 thousand** into interest expense for Q1 2024, while non-designated derivatives resulted in a loss of **$(626) thousand** in interest expense[62](index=62&type=chunk) [6. Stockholders' Equity](index=24&type=section&id=6.%20Stockholders'%20Equity) This section details the company's common stock, share repurchase program, and equity-based compensation - As of March 31, 2024, there were **25,774,730 shares** of common stock issued and outstanding[67](index=67&type=chunk) - No share repurchases were made during Q1 2024 or Q1 2023; since inception, **2,550,628 shares** have been repurchased for approximately **$72.4 million** at an average cost of **$28.36 per share**[70](index=70&type=chunk) - Unrecognized compensation expense on restricted awards totaled approximately **$30.0 million** as of March 31, 2024, over a weighted average vesting period of **2.3 years**[74](index=74&type=chunk) [7. Earnings (Loss) Per Share](index=27&type=section&id=7.%20Earnings%20(Loss)%20Per%20Share) This section presents the calculation of basic and diluted earnings (loss) per share for Q1 2024 and Q1 2023 Earnings (Loss) Per Share | Metric | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Net income (loss) attributable to common stockholders (in thousands) | $26,298 | $(3,883) | | Weighted average common shares outstanding - basic (in thousands) | 25,721 | 25,599 | | Earnings (loss) per share - basic | $1.02 | $(0.15) | | Earnings (loss) per share - diluted | $1.00 | $(0.15) | - Diluted EPS improved significantly from a loss of **$(0.15)** in Q1 2023 to a gain of **$1.00** in Q1 2024[80](index=80&type=chunk) [8. Noncontrolling Interests](index=29&type=section&id=8.%20Noncontrolling%20Interests) This section details redeemable noncontrolling interests and fees paid to affiliates for property management and construction supervision Redeemable Noncontrolling Interests in the OP (in thousands) | Metric | December 31, 2023 | March 31, 2024 | | :-------------------------------------- | :------------------ | :------------- | | Redeemable noncontrolling interests in the OP | $5,246 | $5,082 | Fees and Reimbursements to BH and its Affiliates (in thousands) | Metric | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Property management fees | $1,943 | $2,019 | | Construction supervision fees | $159 | $651 | | Payroll and benefits reimbursements | $4,833 | $5,451 | [9. Related Party Transactions](index=30&type=section&id=9.%20Related%20Party%20Transactions) This section outlines transactions with related parties, including advisory fees, property sales, and service expenses Advisory and Administrative Fees (in thousands) | Metric | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Advisory and administrative fees incurred | $1,743 | $1,889 | | Voluntarily waived fees | $5,500 | $5,300 | - The company sold membership interests of NXRTBH Old Farm, LLC to NexBank Capital (a related party) for **$103 million** on March 1, 2024, recognizing a gain on deconsolidation of **$31.7 million**[94](index=94&type=chunk)[95](index=95&type=chunk) - Incurred **$0.7 million** in expenses for fiber internet service from NLMF Leaseco, LLC (an affiliate) in Q1 2024, up from **$0.6 million** in Q1 2023[93](index=93&type=chunk) [10. Commitments and Contingencies](index=34&type=section&id=10.%20Commitments%20and%20Contingencies) This section addresses potential future funding requirements, litigation, environmental liabilities, and self-insurance policies - Potential additional funding requirements for NLMF Holdco, LLC are expected to be no more than **$4.0 million**[98](index=98&type=chunk) - Management is not aware of any material litigation or environmental liabilities as of March 31, 2024[99](index=99&type=chunk)[100](index=100&type=chunk) - The company has a self-insurance policy with a 2023 aggregate amount of **$2.95 million**, with approximately **$2.1 million** allocated to the company, of which **$1.8 million** was prepaid as of March 31, 2024[102](index=102&type=chunk) [11. Subsequent Events](index=34&type=section&id=11.%20Subsequent%20Events) This section reports significant events that occurred after the balance sheet date, including dividends and property sales - A quarterly dividend of **$0.46242 per share** was approved on April 29, 2024, payable on June 28, 2024[103](index=103&type=chunk) - Radbourne Lake was sold on April 30, 2024, for approximately **$39.3 million**[104](index=104&type=chunk) - Since March 31, 2024, the company purchased **269,408 shares** of common stock for approximately **$8.6 million** at an average price of **$31.76 per share**[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, liquidity, and capital resources for Q1 2024 versus Q1 2023 [Overview](index=35&type=section&id=Overview) This section provides a general overview of the company's portfolio, REIT status, and the current macroeconomic environment - As of March 31, 2024, the portfolio consisted of **37 multifamily properties (13,399 units)** in the Southeastern and Southwestern U.S., **94.6% leased**, with a weighted average monthly effective rent of **$1,511 per occupied unit**[108](index=108&type=chunk) - The company has elected to be taxed as a REIT and intends to continue to qualify, requiring distribution of at least **90%** of its REIT taxable income[110](index=110&type=chunk) - The macroeconomic environment remains challenging due to rising interest rates and limited credit availability for commercial real estate, impacting financing for acquisitions and asset sales[111](index=111&type=chunk) [Components of Our Revenues and Expenses](index=36&type=section&id=Components%20of%20Our%20Revenues%20and%20Expenses) This section outlines the primary sources of the company's revenues and the key categories of its operating and non-operating expenses - Primary revenues are rental income from multifamily properties (including utility reimbursements, late fees, pet fees) and other income (non-refundable fees, application fees, laundry, cable TV)[113](index=113&type=chunk)[114](index=114&type=chunk) - Key expenses include property operating expenses, real estate taxes and insurance, property management fees, advisory and administrative fees, corporate general and administrative expenses, property general and administrative expenses, and depreciation and amortization[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Other income and expenses include interest expense, gain/loss on extinguishment of debt, casualty gain/loss, miscellaneous income (business interruption proceeds), and gain on sales of real estate[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [Results of Operations for the Three Months Ended March 31, 2024 and 2023](index=38&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) This section analyzes the company's financial performance, including revenues, expenses, and net income, for Q1 2024 compared to Q1 2023 Summary of Operating Results (in thousands) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | Total revenues | $67,577 | $69,227 | $(1,650) | -2.4% | | Total expenses | $58,295 | $56,105 | $2,190 | 3.9% | | Operating income | $40,991 | $13,122 | $27,869 | 212.4% | | Net income (loss) attributable to common stockholders | $26,298 | $(3,883) | $30,181 | N/M | | Interest expense | $(14,391) | $(16,739) | $2,348 | -14.0% | - The significant increase in net income is primarily due to a **$31.7 million** gain on sales of real estate in Q1 2024[124](index=124&type=chunk) - Interest expense decreased by **$2.3 million** YoY, primarily due to interest rate swaps and caps gains offsetting increased interest on debt[135](index=135&type=chunk) [Non-GAAP Measurements](index=40&type=section&id=Non-GAAP%20Measurements) This section defines and reconciles non-GAAP financial measures, including NOI, FFO, Core FFO, and AFFO, providing a supplemental view of performance [Net Operating Income and Same Store Net Operating Income](index=40&type=section&id=Net%20Operating%20Income%20and%20Same%20Store%20Net%20Operating%20Income) This section defines Net Operating Income (NOI) and Same Store NOI as non-GAAP measures for evaluating property performance - NOI is a non-GAAP measure used to evaluate property performance, adjusting net income (loss) by adding back interest expense, advisory and administrative fees, depreciation and amortization, gains/losses from real estate sales, corporate G&A, and other specific gains/losses[139](index=139&type=chunk) - Same Store NOI measures the operating performance of properties owned for the entirety of current and comparable periods, eliminating variations caused by acquisitions or dispositions[143](index=143&type=chunk) [NOI and Same Store NOI for the Three Months Ended March 31, 2024 and 2023](index=41&type=section&id=NOI%20and%20Same%20Store%20NOI%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) This section presents and analyzes the Net Operating Income (NOI) and Same Store NOI for Q1 2024 and Q1 2023 NOI and Same Store NOI (in thousands) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | NOI | $41,089 | $41,130 | $(41) | -0.1% | | Same Store NOI | $39,216 | $37,691 | $1,525 | 4.0% | | Same Store revenues | $63,396 | $61,186 | $2,210 | 3.6% | | Same Store operating expenses | $24,288 | $23,848 | $440 | 1.8% | - Same Store rental income increased by **$2.1 million (3.6%)** YoY, partially offset by a **0.4%** decrease in weighted average monthly effective rent per occupied unit, and a **0.3%** increase in occupancy[153](index=153&type=chunk) [FFO, Core FFO and AFFO](index=45&type=section&id=FFO%2C%20Core%20FFO%20and%20AFFO) This section presents and analyzes the company's Funds From Operations (FFO), Core FFO, and Adjusted Funds From Operations (AFFO) FFO, Core FFO, and AFFO (in thousands, except per share) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | FFO attributable to common stockholders | $18,941 | $19,295 | $(354) | -1.8% | | Core FFO attributable to common stockholders | $19,649 | $18,613 | $1,036 | 5.6% | | AFFO attributable to common stockholders | $22,571 | $21,007 | $1,564 | 7.4% | | Dividends declared per common share | $0.46242 | $0.42 | $0.04242 | 10.1% | - Core FFO increased by **$1.0 million (5.6%)** YoY, primarily due to a decrease in casualty loss[169](index=169&type=chunk) - AFFO increased by **$1.6 million (7.4%)** YoY, driven by an increase in Core FFO and equity-based compensation expense[170](index=170&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet short-term and long-term financial obligations and fund its operations - Short-term liquidity requirements are met through net cash from operations, existing cash balances, and unused capacity on the Corporate Credit Facility, with **$2.9 million** in renovation value-add reserves available[171](index=171&type=chunk) - Long-term liquidity is expected from debt or equity issuances, working capital, operating cash flows, long-term mortgage indebtedness, and property dispositions[172](index=172&type=chunk) - The company must distribute at least **90%** of its REIT taxable income annually to maintain REIT status, limiting retained earnings for capital expenditures and acquisitions[173](index=173&type=chunk) [Cash Flows](index=50&type=section&id=Cash%20Flows) This section analyzes the company's cash flows from operating, investing, and financing activities for Q1 2024 and Q1 2023 Selected Cash Flow Data (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Net cash provided by operating activities | $19,687 | $27,923 | | Net cash provided by (used in) investing activities | $94,169 | $(16,505) | | Net cash used in financing activities | $(90,386) | $(16,142) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $23,470 | $(4,724) | - Net cash provided by investing activities increased significantly by **$110.7 million** YoY, primarily due to an increase in net proceeds from sales of real estate[177](index=177&type=chunk) - Net cash used in financing activities increased by **$74.2 million** YoY, mainly due to a net decrease in debt[178](index=178&type=chunk) [Real Estate Investments Statistics](index=51&type=section&id=Real%20Estate%20Investments%20Statistics) This section provides key statistical data on the company's multifamily property portfolio, including unit count, occupancy, and rent - As of March 31, 2024, the company was invested in **37 multifamily properties** with a total of **13,399 units**[180](index=180&type=chunk)[181](index=181&type=chunk) Portfolio Statistics | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Weighted Average Monthly Effective Rent Per Unit | $1,450 (approx.) | $1,460 (approx.) | | Weighted Average % Occupied | 94.3% (approx.) | 93.5% (approx.) | - The portfolio includes **23 down units** due to casualty events as of March 31, 2024[181](index=181&type=chunk) [Debt, Derivatives and Hedging Activity](index=54&type=section&id=Debt%20%2C%20Derivatives%20and%20Hedging%20Activity) This section details the company's mortgage debt, interest rate derivatives, and hedging strategies to manage interest rate risk - As of March 31, 2024, the company had approximately **$1.5 billion** in mortgage debt outstanding with a weighted average interest rate of **6.874%**, adjusted to **3.470%** with interest rate swaps[183](index=183&type=chunk) - Interest rate swap agreements effectively covered **79.7%** of the floating rate debt outstanding (**$1.2 billion** notional amount) at a weighted average fixed rate of **1.0682%**[184](index=184&type=chunk)[192](index=192&type=chunk) - Interest rate cap agreements covered **$1.3 billion** of floating rate mortgage debt, capping the SOFR rate at a weighted average of **5.905%**[185](index=185&type=chunk) - The Corporate Credit Facility had **$0.0 million** outstanding as of March 31, 2024, with **$309.0 million** available for borrowing, maturing on June 30, 2025[190](index=190&type=chunk) [Obligations and Commitments](index=56&type=section&id=Obligations%20and%20Commitments) This section outlines the company's contractual obligations and commitments, including mortgage debt and advisory agreements Contractual Obligations and Commitments (in thousands) | Year | Total | Operating Properties Mortgage Debt (Principal) | Operating Properties Mortgage Debt (Interest) | Held For Sale Property Mortgage Debt (Principal) | Held For Sale Property Mortgage Debt (Interest) | Credit Facility (Interest) | | :--- | :---- | :--------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :------------------------- | | 2024 | $42,342 | $222 | $24,907 | $15,274 | $1,271 | $668 | | 2025 | $200,992 | $133,386 | $46,288 | $20,000 | $871 | $447 | | 2026 | $330,414 | $290,324 | $40,090 | $0 | $0 | $0 | - The Advisory Agreement requires an annual advisory and administrative fee of **1.2%** of Average Real Estate Assets, with a **$5.4 million** cap on Contributed Assets[200](index=200&type=chunk) - The agreement with NLMF Holdco, LLC may result in additional funding requirements up to **$4.0 million** for future project costs[201](index=201&type=chunk) [Capital Expenditures and Value-Add Program](index=58&type=section&id=Capital%20Expenditures%20and%20Value-Add%20Program) This section details the company's expenditures on property renovations and its value-add program activities Rehab Expenditures (in thousands) | Type | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Interior | $1,730 | $7,309 | | Exterior and common area | $474 | $4,007 | | Total rehab expenditures | $2,204 | $11,316 | - Total rehab expenditures decreased significantly from **$11.3 million** in Q1 2023 to **$2.2 million** in Q1 2024[202](index=202&type=chunk) - **127 full and partial interior rehabs** were completed in Q1 2024, compared to **690 units** in Q1 2023[202](index=202&type=chunk) [Income Taxes](index=58&type=section&id=Income%20Taxes) This section discusses the company's REIT tax status, distribution requirements, and tax-related disclosures - The company anticipates continuing to qualify as a REIT, requiring distribution of at least **90%** of its annual REIT taxable income to stockholders[203](index=203&type=chunk)[209](index=209&type=chunk) - No significant taxes were associated with the Taxable REIT Subsidiary (TRS) for the three months ended March 31, 2024, and 2023[203](index=203&type=chunk)[219](index=219&type=chunk) - No material unrecognized tax benefit or expense, accrued interest, or penalties were reported as of March 31, 2024[208](index=208&type=chunk) [Dividends](index=60&type=section&id=Dividends) This section outlines the company's dividend policy and recent dividend declarations to common stockholders - The company intends to make regular quarterly dividend payments to common stockholders[209](index=209&type=chunk) - The first quarterly dividend of 2024 was **$0.46242 per share**, declared on February 15, 2024, and paid on March 28, 2024[210](index=210&type=chunk) [Off-Balance Sheet Arrangements](index=60&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of any off-balance sheet arrangements as of the reporting dates - As of March 31, 2024, and December 31, 2023, the company had no off-balance sheet arrangements[211](index=211&type=chunk) [Critical Accounting Policies and Estimates](index=60&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting policies and estimates that require management's judgment and impact financial reporting - Purchase price for asset acquisitions is allocated to land, buildings, improvements, and intangible lease assets based on relative fair value, using Level 3 inputs[214](index=214&type=chunk)[215](index=215&type=chunk) - Real estate assets are reviewed for impairment based on estimated future cash flows and liquidation value; no impairment was recorded as of March 31, 2024[216](index=216&type=chunk) - Inflation is not expected to materially affect results due to short-term leases and protection provisions for utilities, with risks mitigated by fixed interest rate loans and hedges[217](index=217&type=chunk)[218](index=218&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk on its indebtedness and counterparty credit risk on derivatives - Primary market risk exposure is interest rate risk on **$1.5 billion** of floating rate indebtedness and counterparty credit risk on interest rate derivatives[221](index=221&type=chunk) - **79.7%** of floating rate debt (**$1.2 billion** notional) is effectively fixed by interest rate swap agreements at a weighted average fixed rate of **1.0682%**[221](index=221&type=chunk)[223](index=223&type=chunk) - Interest rate cap agreements effectively cap SOFR on **$1.3 billion** of floating rate mortgage debt at a weighted average rate of **5.90%**[222](index=222&type=chunk) Annual Increase to Interest Expense from SOFR Change (in thousands) | Change in Interest Rates | Annual Increase to Interest Expense | | :----------------------- | :---------------------------------- | | 0.25% | $692 | | 0.50% | $1,385 | | 0.75% | $2,077 | | 1.00% | $2,770 | [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and the absence of material changes in internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2024, providing reasonable assurance for timely and accurate reporting[227](index=227&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended March 31, 2024[229](index=229&type=chunk) [PART II—OTHER INFORMATION](index=65&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This part includes information on legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any legal proceedings that are reasonably likely to have a material adverse effect on its operations or financial condition - Management is not aware of any material legal proceedings or threats of litigation that would adversely affect the company's financial condition or results of operations[232](index=232&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K filed on February 27, 2024 - No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K[233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) This section details the company's share repurchase program, noting no repurchases were made during Q1 2024, but providing historical data and remaining authorization - No shares were repurchased under the Share Repurchase Program during the three months ended March 31, 2024[234](index=234&type=chunk) Share Repurchase Program Summary (as of March 31, 2024) | Metric | Value | | :-------------------------------------- | :------ | | Total shares repurchased since inception | 2,550,628 | | Average price paid per share | $28.36 | | Total cost of repurchases | $72.4 million | | Approximate dollar value remaining under authorization | $100.0 million | [Item 3. Defaults Upon Senior Securities](index=65&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[235](index=235&type=chunk) [Item 4. Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[237](index=237&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) The company reported no other information - No other information was reported[238](index=238&type=chunk) [Item 6. Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including forms of restricted stock unit agreements, certifications, and XBRL-related documents - The report includes various exhibits such as Restricted Stock Units Agreements, CEO and CFO certifications (31.1, 31.2, 32.1), and Inline XBRL documents[241](index=241&type=chunk) [Signatures](index=68&type=section&id=Signatures) This section contains the official signatures of the company's authorized officers, attesting to the report's accuracy - The report was signed by Jim Dondero, President and Director, and Brian Mitts, Chief Financial Officer and Director, on May 02, 2024[246](index=246&type=chunk)

DALLAS, May 2, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today the closing of the sale of Radbourne Lake Apartment Homes in Charlotte, NC, a 225-unit property built in 1991.  The property was acquired for $24.3 million on September 30, 2014, and has provided consistent operational and cash flow performance for the portfolio for the last 9+ years.  As of April 30, 2024, the property was 92.4% leased with a weighted average effective monthly rent of ...

Financial Data and Key Metrics Changes - For Q1 2024, net income was $26.3 million or $1 per diluted share on total revenue of $67.5 million, compared to a net loss of $4 million or $0.15 per diluted share in Q1 2023 on total revenue of $69.2 million [4] - Net operating income (NOI) for Q1 2024 was $41.1 million, unchanged from Q1 2023, despite a decrease in the number of properties from 40 to 37 [4] - Same-store rent decreased by 0.4%, while same-store occupancy increased by 0.3% to 94.7% [4] Business Line Data and Key Metrics Changes - The company completed 59 full and partial upgrades in Q1 2024, achieving an average monthly rent premium of $240 and a 21.8% return on investment [37] - Same-store rental revenue increased by 3.6% for the quarter, with 7 out of 10 markets averaging at least 3% growth [42] - Same-store operating expenses increased by only 1.9% year-over-year, indicating moderation in expense growth [42] Market Data and Key Metrics Changes - Five out of ten markets achieved year-over-year NOI growth of at least 5.9%, with Orlando and South Florida leading at 12.3% and 9.9% growth, respectively [9] - The portfolio registered a 94.6% occupancy rate at the end of Q1, which improved to 94.7% shortly after [43] Company Strategy and Development Direction - The company is focusing on maximizing resident retention and reducing turnover costs while maintaining occupancy [43] - A share buyback program was initiated to purchase up to $25 million of shares, with approximately 8.5 million shares bought at an average price of $31.75, representing a 40% discount to the midpoint of the Q1 NAV estimate [39] - The company remains bullish on its Sunbelt market, expecting to outpace northern and coastal cities in terms of population, job, and wage growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter's performance, noting better-than-expected absorption and occupancy rates [25] - The company anticipates modest growth in the second half of the year as supply growth begins to decline [12] - Management is cautious about guidance due to concerns over supply impacting portfolio performance, with a full-year guidance range remaining wide [24] Other Important Information - The company reported a first-quarter dividend of $0.46 per share, with a payout ratio of 56.3% [5][38] - As of March 31, 2024, the company had $37.1 million in cash and $335 million of available liquidity on its corporate credit facility [6] Q&A Session Summary Question: What does concession usage look like across the portfolio? - Concession usage in Q1 was about 24 basis points on gross potential rent, more prevalent in high supply markets [21] Question: Can you discuss the guidance for same-store NOI? - The company is cautious about guidance due to anticipated declines in GPR and is monitoring the market closely [24][25] Question: How far along are you with the various upgrade opportunities within the portfolio? - Approximately 5,000 to 5,500 units remain for upgrades, providing about 1.5 to 2 years of internal growth potential [49] Question: What drove the interest line item to decrease significantly? - Management indicated that fluctuations in interest rates and the impact of swaps contributed to the changes in the interest line item [57]

For the quarter ended March 2024, NexPoint Residential Trust Inc. (NXRT) reported revenue of $67.58 million, down 2.4% over the same period last year. EPS came in at $0.86, compared to -$0.15 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $67.03 million, representing a surprise of +0.82%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.86.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

NexPoint Residential Trust Inc. (NXRT) came out with quarterly funds from operations (FFO) of $0.86 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.81 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $0.88 per share when it actually produced FFO of $0.77, delivering a surprise of -12.50%.Over the last four quarters, the company has not been able to surpass consensu ...

[Earnings Release](index=3&type=section&id=Earnings%20Release) [Highlights](index=3&type=section&id=Highlights) NXRT achieved a net income of **$26.3 million** in Q1 2024, a significant turnaround from a prior year loss, driven by property sales and growth in Core FFO, AFFO, and Same Store NOI Q1 2024 vs Q1 2023 Key Financial Metrics (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (Loss) | $26.3 | $(3.9) | | FFO | $18.9 | $19.3 | | Core FFO | $19.6 | $18.6 | | AFFO | $22.6 | $21.0 | - Q1 Same Store properties saw positive year-over-year performance with total revenue increasing **3.6%**, NOI growing **4.0%**, and occupancy rising by **30 basis points**[5](index=5&type=chunk) - Strategic capital activities in the first quarter included the sale of the Old Farm property for **$103.0 million** and the full repayment of the **$24.0 million** drawn balance on the Corporate Credit Facility[5](index=5&type=chunk) - The value-add program continued with **59** full and partial unit upgrades completed during the quarter, achieving an average monthly rent premium of **$240** and a **21.8% ROI**[5](index=5&type=chunk) [First Quarter 2024 Financial Results](index=4&type=section&id=First%20Quarter%202024%20Financial%20Results) Q1 2024 total revenues were **$67.6 million**, with net income reaching **$26.3 million** due to property sales, while Core FFO and AFFO per share increased to **$0.75** and **$0.86** respectively Q1 2024 vs Q1 2023 Financial Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $67.6M | $69.2M | | Net Income (Loss) | $26.3M | $(3.9)M | | Earnings (Loss) per Diluted Share | $1.00 | $(0.15) | | Core FFO per Diluted Share | $0.75 | $0.71 | | AFFO per Diluted Share | $0.86 | $0.81 | - The primary drivers for the **$30.3 million** increase in net income year-over-year were an increase in gain on the sale of real estate and a decrease in interest expense[11](index=11&type=chunk) [Company Overview](index=5&type=section&id=Overview) [Company Profile and Portfolio Composition](index=5&type=section&id=Company%20Profile%20and%20Portfolio%20Composition) As of Q1 2024, NXRT (NYSE:NXRT) has nearly **14% insider ownership** and a portfolio concentrated in the Southeastern and Southwestern US, with Phoenix, South Florida, and Dallas/Fort Worth as top markets Company Profile (as of Q1 2024) | Metric | Value | | :--- | :--- | | Exchange/Ticker | NYSE:NXRT | | Share Price (Apr 29, 2024) | $33.31 | | Insider Ownership (Mar 31, 2024) | 13.98% | | Q2 2024 Dividend Per Share | $0.46242 | | Dividend Yield | 5.55% | Portfolio Composition by Market (% of Units) | Market | % of Units | | :--- | :--- | | Phoenix | 15.0% | | South Florida | 14.6% | | Dallas/Fort Worth | 14.5% | | Atlanta | 12.6% | | Nashville | 10.0% | | Other | 33.3% | [Highlights of Recent Activity](index=6&type=section&id=Highlights%20of%20Recent%20Activity) [Capital Recycling and Market Trends](index=6&type=section&id=Capital%20Recycling%20and%20Market%20Trends) NXRT executed capital recycling with the **$103 million** Old Farm property sale, achieving a **22.1% IRR**, and anticipates stronger job growth in its markets despite potential new supply pressures Q1 2024 Completed Disposition | Property Name | Location | Sales Price | IRR | Multiple on Invested Capital | Net Cash Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Old Farm | Houston, TX | $103.0M | 22.1% | 2.98x | $49.4M | - The Radbourne Lake property in Charlotte, NC is under contract for sale for **$39.25 million**, with the disposition expected to be completed in **Q2 2024**[19](index=19&type=chunk)[23](index=23&type=chunk) - Job growth in NXRT's markets is forecasted to outpace other major MSAs, with NXRT markets projected to account for **50.3%** of total job creation among the top 80 MSAs by 2027[21](index=21&type=chunk) [Financial Summary](index=8&type=section&id=Financial%20Summary) [Comparative Financial and Operating Metrics](index=8&type=section&id=Comparative%20Financial%20and%20Operating%20Metrics) Q1 Same Store NOI increased **4.0%** year-over-year, AFFO per diluted share rose to **$0.86**, portfolio occupancy improved to **94.6%**, and total debt decreased to **$1.5 billion**, supported by successful value-add initiatives Q1 2024 vs Q1 2023 Performance Snapshot | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (Loss) Attributable to Common Stockholders | $26.3M | $(3.9)M | | Same Store NOI Growth | 4.0% | N/A | | AFFO per Common Share (diluted) | $0.86 | $0.81 | | Dividends Declared per Common Share | $0.46 | $0.42 | | Portfolio Occupancy | 94.6% | 94.0% | | Total Debt Outstanding | $1,498.3M | $1,678.6M | - The cumulative value-add program has completed **8,593** full/partial interior rehab units, achieving an average monthly rent increase of **$170** per unit and a **20.9% ROI**[27](index=27&type=chunk) [2024 Full Year Guidance](index=9&type=section&id=2024%20Full%20Year%20Guidance) [Full Year 2024 Outlook](index=9&type=section&id=Full%20Year%202024%20Outlook) NXRT reaffirmed its 2024 guidance, projecting Core FFO per diluted share at a midpoint of **$2.72** and Same Store NOI growth at **0.0%**, while planning **$150 million to $300 million** in dispositions and up to **$200 million** in acquisitions 2024 Full Year Guidance Summary | Metric | Mid-Point | Low-End | High-End | | :--- | :--- | :--- | :--- | | Earnings per diluted share | $0.72 | $0.59 | $0.85 | | Core FFO per diluted share | $2.72 | $2.60 | $2.85 | | Same Store NOI Growth | 0.0% | -2.0% | 2.0% | | Dispositions | $225.0M | $150.0M | $300.0M | | Acquisitions | $100.0M | $0 | $200.0M | - The guidance is based on an estimated weighted average diluted share count of approximately **25.6 million** for the full year[32](index=32&type=chunk) [Components of Net Asset Value](index=10&type=section&id=Components%20of%20Net%20Asset%20Value) [NAV Estimation](index=10&type=section&id=NAV%20Estimation) As of March 31, 2024, NXRT's estimated NAV per diluted share is **$52.44** at the midpoint, derived from a real estate valuation of **$2.56 billion to $2.90 billion** using cap rates between **5.5% and 6.0%** Estimated NAV per Share Summary | Metric | Value | | :--- | :--- | | Est. NAV / Share (Min) | $45.91 | | Est. NAV / Share (Max) | $58.97 | | NAV / Share (Mid-point) | $52.44 | - The real estate valuation is based on applying a cap rate range of **5.5% to 6.0%** to the portfolio's Net Operating Income (NOI)[35](index=35&type=chunk) Implied Valuation Metrics | Metric | Mid-point Value | | :--- | :--- | | Implied Value/Apartment Unit | $203,800 | [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to **$2.04 billion** from **$2.11 billion**, while total liabilities reduced to **$1.52 billion**, leading to an increase in stockholders' equity to **$512.8 million** Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Net Real Estate Investments | $1,880,274 | $1,968,100 | | Cash and cash equivalents | $37,234 | $12,367 | | **TOTAL ASSETS** | **$2,042,686** | **$2,107,645** | | Mortgages payable, net (incl. held for sale) | $1,489,305 | $1,541,831 | | Credit facility, net | $0 | $23,243 | | **Total Liabilities** | **$1,524,825** | **$1,607,775** | | **Total Stockholders' Equity** | **$512,779** | **$494,624** | [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 saw total revenues of **$67.6 million** and a net income of **$26.4 million**, a significant turnaround from Q1 2023's net loss, primarily driven by a **$31.7 million** gain on real estate sales Statement of Operations Summary (in thousands) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $67,577 | $69,227 | | Total expenses | $58,295 | $56,105 | | Gain on sales of real estate | $31,709 | $0 | | Interest expense | $(14,391) | $(16,739) | | **Net income (loss)** | **$26,402** | **$(3,898)** | | **Net income (loss) attributable to common stockholders** | **$26,298** | **$(3,883)** | [NOI and Same Store NOI](index=13&type=section&id=NOI%20and%20Same%20Store%20NOI) [NOI and Same Store NOI Reconciliation](index=13&type=section&id=NOI%20and%20Same%20Store%20NOI%20Reconciliation) Q1 2024 net income of **$26.4 million** reconciled to a total NOI of **$41.1 million**, with Same Store NOI reaching **$39.2 million**, demonstrating year-over-year growth Reconciliation of Net Income (Loss) to NOI (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $26,402 | $(3,898) | | Adjustments (Depreciation, Interest, G&A, etc.) | $14,687 | $45,028 | | **NOI** | **$41,089** | **$41,130** | | Less: Non-Same Store NOI | $(1,873) | $(3,439) | | **Same Store NOI** | **$39,216** | **$37,691** | [Q1 Same Store Results](index=14&type=section&id=Q1%20Same%20Store%20Results) The Q1 2024 Same Store portfolio of **35 properties** achieved a **4.0%** year-over-year NOI increase to **$39.2 million**, driven by **3.6%** revenue growth outpacing **1.8%** expense increases Q1 Same Store Performance (YoY % Change) | Metric | % Change | | :--- | :--- | | Total Same Store Revenues | 3.6% | | Total Same Store Operating Expenses | 1.8% | | **Q1 Same Store NOI** | **4.0%** | - Same Store occupancy increased by **30 basis points** to **94.7%**, while average rent per unit saw a slight decrease of **0.4%** to **$1,514**[49](index=49&type=chunk)[51](index=51&type=chunk) [Q1 Same Store Properties Operating Metrics (YoY)](index=16&type=section&id=Q1%20Same%20Store%20Properties%20Operating%20Metrics) Q1 year-over-year Same Store performance varied by market, with South Florida showing **7.6%** rental income growth, while the overall portfolio's average effective rent decreased by **0.4%** Q1 Same Store Performance by Market (YoY) | Market | Avg. Effective Rent % Change | Occupancy bps Δ | Total Rental Income % Change | | :--- | :--- | :--- | :--- | | South Florida | 4.8% | -20 | 7.6% | | Atlanta | -2.4% | 370 | 4.6% | | Las Vegas | -5.7% | 120 | 6.4% | | Dallas | -1.3% | -200 | 0.2% | | **Average/Total** | **-0.4%** | **30** | **3.6%** | [QoQ Same Store Properties Operating Metrics](index=17&type=section&id=QoQ%20Same%20Store%20Properties%20Operating%20Metrics) Q1 2024 Same Store portfolio showed sequential stability with a negligible **0.1%** decrease in average effective rent and flat occupancy, while total rental income grew **1.4%**, led by Florida markets Q1 2024 Same Store Performance by Market (QoQ) | Market | Avg. Effective Rent % Change | Occupancy bps Δ | Total Rental Income % Change | | :--- | :--- | :--- | :--- | | Florida (Blended) | 0.6% | -20 | 3.0% | | Atlanta | -0.4% | -10 | 1.2% | | Nashville | -1.9% | 160 | 0.4% | | Dallas | -1.1% | -20 | 0.3% | | **Average/Total** | **-0.1%** | **0** | **1.4%** | [FFO, Core FFO and AFFO](index=18&type=section&id=FFO%2C%20Core%20FFO%20and%20AFFO) [Reconciliation of FFO, Core FFO and AFFO](index=18&type=section&id=Reconciliation%20of%20FFO%2C%20Core%20FFO%20and%20AFFO) Q1 2024 Core FFO grew **5.6%** to **$19.6 million** (**$0.75** per share), and AFFO increased **7.4%** to **$22.6 million** (**$0.86** per share), reflecting strong operational performance and healthy dividend coverage FFO, Core FFO, and AFFO Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Net income (loss) | $26,402 | $(3,898) | N/M | | FFO attributable to common stockholders | $18,941 | $19,295 | -1.8% | | Core FFO attributable to common stockholders | $19,649 | $18,613 | 5.6% | | AFFO attributable to common stockholders | $22,571 | $21,007 | 7.4% | Per Share Metrics and Dividend Coverage | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Core FFO per share - diluted | $0.75 | $0.71 | | AFFO per share - diluted | $0.86 | $0.81 | | Core FFO Coverage - diluted | 1.61x | 1.70x | | AFFO Coverage - diluted | 1.85x | 1.92x | [Historical Capital Expenditures](index=19&type=section&id=Historical%20Capital%20Expenditures) [Capital Expenditures Summary](index=19&type=section&id=Capital%20Expenditures%20Summary) Q1 2024 total capital expenditures decreased **57.6%** to **$6.9 million**, primarily due to an **80.5%** reduction in capitalized rehab expenditures, while maintenance capital increased **8.9%** Capital Expenditures Comparison (in thousands) | Category | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Capitalized Rehab Expenditures | $2,204 | $11,316 | -80.5% | | Capitalized Maintenance Expenditures | $4,695 | $4,974 | -5.6% | | **Total Capital Expenditures** | **$6,899** | **$16,290** | **-57.6%** | [Value-Add Program Details](index=20&type=section&id=Value-Add%20Program%20Details) [Interiors (Full & Partials)](index=20&type=section&id=Interiors%20%28Full%20%26%20Partials%29) As of March 31, 2024, **8,593** interior rehabs generated an average monthly rent increase of **$170** per unit, achieving a **20.9% ROI** on an average cost of **$9,746** Interior Value-Add Program Summary | Metric | Value | | :--- | :--- | | Units Completed | 8,593 | | Average Cost Per Unit | $9,746 | | Average Post-Rehab Monthly Rent Increase | $170 | | Weighted Average ROI | 20.9% | [Kitchen & Laundry Appliances](index=21&type=section&id=Kitchen%20%26%20Laundry%20Appliances) As of Q1 2024, **4,829** appliance upgrades generated an average monthly rent premium of **$39** per unit, achieving a **51.4% ROI** on an average cost of **$911** Appliance Value-Add Program Summary | Metric | Value | | :--- | :--- | | Units Completed | 4,829 | | Average Cost Per Unit | $911 | | Average Post-Rehab Monthly Rent Increase | $39 | | Weighted Average ROI | 51.4% | [Smart Home Technology Packages](index=22&type=section&id=Smart%20Home%20Technology%20Packages) By Q1 2024, **11,614** smart home tech packages generated an average monthly rent increase of **$43** per unit, achieving a **37.4% ROI** on an average cost of **$1,104** Smart Home Tech Program Summary | Metric | Value | | :--- | :--- | | Units Completed | 11,614 | | Average Cost Per Unit | $1,104 | | Average Post-Rehab Monthly Rent Increase | $43 | | Weighted Average ROI | 37.4% | [Outstanding Debt Details](index=23&type=section&id=Outstanding%20Debt%20Details) [Mortgage Debt](index=23&type=section&id=Mortgage%20Debt) As of March 31, 2024, total outstanding mortgage principal was approximately **$1.5 billion**, predominantly floating-rate and benchmarked to 30-Day Average SOFR Mortgage Debt Summary (as of March 31, 2024) | Category | Outstanding Principal (in thousands) | | :--- | :--- | | Operating Properties | $1,463,003 | | Held For Sale Properties | $35,274 | | **Total Mortgage Debt** | **$1,498,277** | - The majority of the mortgage debt is floating-rate, with interest based on a reference rate (SOFR) plus an applicable margin[69](index=69&type=chunk) [Credit Facility and Interest Rate Agreements](index=24&type=section&id=Credit%20Facility%20and%20Interest%20Rate%20Agreements) As of March 31, 2024, the corporate credit facility had a **zero balance**, and NXRT uses interest rate swaps with a **$1.17 billion** notional amount to fix a weighted average rate of **1.0682%** on floating-rate debt - The Corporate Credit Facility had an outstanding principal of **$0** as of March 31, 2024[70](index=70&type=chunk) Interest Rate Swap Summary | Metric | Value | | :--- | :--- | | Total Notional Amount | $1,167,500,000 | | Weighted Average Fixed Rate | 1.0682% | [Interest Rate Cap Agreements](index=25&type=section&id=Interest%20Rate%20Cap%20Agreements) NXRT holds interest rate cap agreements with a notional amount exceeding **$1.34 billion** and a weighted average strike rate of **5.90%** to mitigate rising interest rate risks - The company holds interest rate caps with a total notional value of **$1.34 billion** and a weighted average strike rate of **5.90%** to hedge against rising interest rates[75](index=75&type=chunk) [Debt Maturity Schedule](index=26&type=section&id=Debt%20Maturity%20Schedule) NXRT's debt maturity is staggered, with **no significant maturities in 2024**, and **80%** of its **$1.5 billion** floating-rate mortgage debt is hedged by interest rate swaps, resulting in a **3.39%** adjusted weighted average interest rate Mortgage Debt Principal Payments Due by Period (in thousands) | Period | Principal Payments | | :--- | :--- | | 2024 | $15,496 | | 2025 | $153,386 | | 2026 | $290,324 | | 2027 | $0 | | 2028 | $81,041 | | Thereafter | $958,030 | - As of March 31, 2024, interest rate swaps effectively covered **80%** of the company's **$1.5 billion** of floating-rate mortgage debt[79](index=79&type=chunk) [Historical Portfolio Activity](index=27&type=section&id=Historical%20Portfolio%20Activity) [Historical Acquisition Details](index=27&type=section&id=Historical%20Acquisition%20Details) As of March 31, 2024, the portfolio comprises **13,399 units** with a total investment of **$2.24 billion**, including rehab budgets, representing a weighted average cost of **$167,427** per unit Acquisition Summary for Current Portfolio (in thousands) | Metric | Value | | :--- | :--- | | Total Units | 13,399 | | Total Purchase Price | $2,078,559 | | Total Rehab Budget | $164,796 | | **Total Investment** | **$2,243,355** | | **Weighted Average Investment Per Unit** | **$167,427** | [Historical Disposition Details](index=28&type=section&id=Historical%20Disposition%20Details) NXRT has successfully recycled capital by selling **10,371 units** for over **$1.17 billion**, generating a cumulative gain on sale of **$475.4 million**, including the recent **$103 million** Old Farm property sale Cumulative Disposition Summary (in thousands) | Metric | Value | | :--- | :--- | | Total Units Sold | 10,371 | | Total Purchase Price | $727,465 | | Total Sale Price | $1,173,925 | | **Total Gain on Sale** | **$475,402** | [Definitions and Reconciliations of Non-GAAP Measures](index=29&type=section&id=Definitions%20and%20Reconciliations%20of%20Non-GAAP%20Measures) [Definitions](index=29&type=section&id=Definitions) This section defines key non-GAAP financial measures like NOI, FFO, Core FFO, and AFFO, which provide investors with a clearer understanding of the company's operating results and ongoing profitability - NOI (Net Operating Income) is used to evaluate and compare property performance by adjusting net income for items like interest, depreciation, and corporate G&A[86](index=86&type=chunk) - FFO (Funds from Operations) is calculated per NAREIT's definition, starting with GAAP net income and excluding gains/losses from real estate sales and adding back real estate depreciation[87](index=87&type=chunk) - Core FFO adjusts FFO for non-recurring or non-representative items like debt extinguishment costs and casualty-related expenses to better reflect ongoing operating performance[88](index=88&type=chunk) - AFFO (Adjusted FFO) further adjusts Core FFO for items such as equity-based compensation and amortization of deferred financing costs[89](index=89&type=chunk) [Reconciliations](index=30&type=section&id=Reconciliations) This section provides detailed reconciliations of non-GAAP measures to GAAP equivalents, including total debt to net debt of **$1.46 billion** and 2024 full-year net income guidance to Core FFO guidance of **$69.6 million** Reconciliation of Debt to Net Debt (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Debt | $1,498,277 | $1,678,634 | | Less: Cash and certain restricted cash | $(40,141) | $(21,130) | | **Net Debt** | **$1,458,136** | **$1,657,504** | Reconciliation of 2024 Guidance: Net Income to Core FFO (Mid-Point, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $18,524 | | Depreciation and amortization | $99,127 | | Gain on sales of real estate | $(49,427) | | Other adjustments | $1,370 | | **Core FFO attributable to common stockholders** | **$69,604** |

NXRT Reports Net Income of $26.4 million; $49.4 million of Capital Recycling Activity and Full Repayment of the Drawn Balance on the Corporate Credit FacilityDALLAS, April 30, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE: NXRT) reported financial results for the first quarter ended March 31, 2024.Highlights NXRT1 reported Net Income, FFO2, Core FFO2 and AFFO2 of $26.3M, $18.9M, $19.6M and $22.6M, respectively, attributable to common stockholders for the quarter ended March 31, 2024, compar ...