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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 None 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 other ...

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ 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 other Jurisdiction of Incorporation or Organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

Portfolio Overview - As of June 30, 2023, the Portfolio consisted of 40 multifamily properties with 15,127 units, approximately 93.9% leased, and a weighted average monthly effective rent of $1,497 per occupied unit, a 24.3% increase from $1,204 in June 2022[145][163]. - As of June 30, 2023, the company had a total of 40 multifamily properties with an average effective monthly rent per unit of $1,337, reflecting a 1.5% increase from $1,313 as of December 31, 2022[242]. - The overall occupancy rate across the properties was 93.1% as of June 30, 2023, compared to 94.4% as of December 31, 2022, indicating a decline of 1.3 percentage points[243]. Financial Performance - Total revenues for the three months ended June 30, 2023, were $69.6 million, an increase of $3.8 million compared to $65.8 million in the same period of 2022[162]. - Total revenues for the six months ended June 30, 2023, were $138.8 million, up from $126.6 million in 2022, representing an increase of approximately $12.2 million[173]. - Total revenues for Q2 2023 increased to $69.569 million, a 5.8% rise from $65.766 million in Q2 2022[196]. Rental Income - Rental income was $67.8 million for the three months ended June 30, 2023, up from $64.2 million in 2022, primarily due to the increase in effective rent[163]. - Rental income rose to $135.3 million for the six months ended June 30, 2023, from $123.4 million in 2022, an increase of approximately $11.9 million, driven by a 24.3% increase in the weighted average monthly effective rent per occupied apartment unit to $1,497[174]. - Same Store rental income increased to $122.4 million, up $10.5 million or 9.4% from $111.9 million in the prior year, driven by an 8.0% increase in the weighted average monthly effective rent per occupied apartment unit to $1,504[208]. Expenses and Operating Income - Total expenses decreased to $59.5 million for the three months ended June 30, 2023, from $61.6 million in 2022, resulting in an operating income of $10.0 million, up from $4.2 million[162]. - Property operating expenses decreased to $15.5 million for the three months ended June 30, 2023, from $16.7 million in 2022, mainly due to a $2.2 million decrease in casualty losses[165]. - Total operating expenses for the six months ended June 30, 2023, were $56.4 million, an increase of $5.2 million or 10.2% from $51.2 million in 2022[206]. Net Loss - Net loss for the three months ended June 30, 2023, was $3.97 million, a reduction from a net loss of $7.83 million in the same period of 2022[162]. - Net loss for the six months ended June 30, 2023, was $7.9 million, an improvement from a net loss of $12.5 million in 2022, reflecting a decrease of approximately $4.6 million[173]. - Net loss for Q2 2023 was $3.968 million, an improvement from a net loss of $7.827 million in Q2 2022, representing a 49.3% reduction[192]. NOI and Same Store Performance - Same Store NOI for Q2 2023 was $39.669 million, up 7.6% from $36.862 million in Q2 2022[196]. - Total NOI for Q2 2023 was $41.969 million, an increase of 7.7% from $38.972 million in Q2 2022[196]. - Total NOI for the six months ended June 30, 2023, was $83.1 million, an increase of $7.5 million or 9.8% compared to $75.6 million in 2022[206]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the first half of 2023 was $53.9 million, compared to $38.7 million in the same period of 2022, driven by increased total revenues[238]. - Net cash used in investing activities for the first half of 2023 was $36.4 million, significantly lower than $165.4 million in the first half of 2022, due to no acquisitions in 2023[239]. - The company had approximately $4.0 million in renovation value-add reserves for planned capital expenditures as of June 30, 2023[230]. Debt and Interest Rates - The company had approximately $1.6 billion in aggregate mortgage debt outstanding at a weighted average interest rate of 6.64% as of June 30, 2023[244]. - Interest rate swap agreements effectively covered 74% of the company's floating rate debt, amounting to $1.2 billion, with a fixed rate of 1.0682%[247]. - An increase of 0.25% in interest rates would result in an approximate annual increase to interest expense of $1,190,000[283]. Dividends - The second quarterly dividend of 2023 was declared at $0.42 per share and paid on June 30, 2023, funded from cash flows from operations[271]. Future Plans and Market Conditions - The company continues to focus on acquiring and operating multifamily properties with a value-add component in major cities, aiming for long-term capital appreciation for stockholders[146]. - The company plans to invest in additional multifamily properties as opportunities arise, depending on available equity and debt financing[250]. - The real estate market has not been significantly affected by inflation due to short-term lease terms that reset to market rates[277].

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, 2023 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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) (State or other Jurisdiction of Incorpor ...

Financial Data and Key Metrics Changes - For the year 2022, net operating income (NOI) was $157.4 million across 40 properties, up 22.3% from $128.8 million across 39 properties in 2021 [23] - Core funds from operations (FFO) for 2022 were $81.8 million or $3.13 per diluted share, a 28.9% increase from $2.43 per diluted share in 2021 [23] - The fourth quarter net income was $3.8 million or $0.15 per diluted share on total revenue of $69.3 million, compared to $38.8 million or $1.50 per diluted share on total revenue of $58.5 million in Q4 2021 [33] Business Line Data and Key Metrics Changes - Same-store rent increased by 17.3% in Q4 2022, while same-store occupancy decreased by 20 basis points to 94.1% [33] - The company completed 481 full and partial renovations in Q4 2022, achieving an average monthly rent premium of $184, representing a 23.1% return on investment (ROI) [27] - Same-store NOI growth for the full year was 16.2%, driven by a 17.8% increase in same-store rates and an 11.1% increase in same-store expenses [23] Market Data and Key Metrics Changes - Effective rent growth in Q4 2022 was 11.5% across all markets, with Tampa leading at 23.3% [38] - The company expects Tampa to grow same-store NOI by approximately 15.5% to 17.5%, driven by budgeted revenue growth of 13% to 15% [42] - The average effective rent growth in top markets like Phoenix, Dallas, and Nashville reached 19.7% [38] Company Strategy and Development Direction - The company is focused on internal growth and capital recycling, emphasizing value-add programs and renovations to enhance property performance [56] - The 2023 guidance includes a same-store revenue growth forecast of 10.9% at the midpoint, with expectations of continued strength in middle-market rental housing [50] - The company plans to complete 1,370 full interior upgrades in 2023, targeting an average monthly premium of $214 per unit [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, anticipating continued strength and resilience in the middle-market rental housing sector [30] - The company is monitoring economic conditions and believes it is well-positioned to withstand potential downturns while still poised for growth [30] - Management noted that the current economic environment is expected to impact interest expenses, but they remain confident in achieving their revenue growth targets [73] Other Important Information - The company completed a cash-out refinance on 19 properties, reducing the spread on 17 previously variable-rate properties by an average of 14 basis points [28] - The company sold Hollister Place for a 13.5% levered IRR and is under contract to sell Old Farm and Stone Creek for $135 million, expected to generate a 24.8% levered IRR [29] - The NAV per share is estimated between $67.46 and $78.15, reflecting an increase in cap rates due to rising interest rates [34] Q&A Session Summary Question: What is driving the high same-store growth guidance? - Management indicated that the unit upgrade program is a significant contributor to same-store revenue growth, alongside strong leasing activity [6] Question: Can you comment on the transaction environment? - Management noted a significant decrease in transaction volumes, down 60% to 70% year-over-year, and expects some capitulation from sellers in Q2 [10] Question: How are you addressing the impact of rising interest rates? - Management emphasized the importance of flexible debt structures to maintain value and reduce transaction costs, while also hedging near-term interest rates [95]