NexPoint Residential Trust(US:NXRT)2025-10-28 12:16Financial Performance - For Q3 2025, NexPoint Residential Trust reported a net loss of $7.8 million, compared to a net loss of $8.9 million in Q3 2024, reflecting a decrease in total expenses by approximately $3.1 million[6]. - Total revenues for Q3 2025 were $62.8 million, down from $64.1 million in Q3 2024, while NOI increased by 3.5% to $38.8 million[10]. - For the nine months ended September 30, 2025, FFO totaled $50.2 million, or $1.96 per diluted share, compared to $50.9 million, or $1.94 per diluted share, for the same period in 2024[10]. - The company reported a total net loss of $21.7 million for the nine months ended September 30, 2025, compared to a net income of $28.0 million for the same period in 2024[10]. - Core FFO per diluted share for YTD 2025 was $2.14, compared to $2.11 for YTD 2024, indicating a growth of 1.42%[30]. - The company reaffirmed its guidance for Core FFO per diluted share for the full year 2025, ranging from $2.66 to $2.84[34]. - The company anticipates a net loss between approximately $35.9 million and $31.3 million for the full year 2025, and between $14.1 million and $9.5 million for Q4 2025[40]. - For Q3 2025, the net loss was $7.821 million, an improvement from a net loss of $8.888 million in Q3 2024[65]. - FFO attributable to common stockholders for Q3 2025 was $15.899 million, slightly up from $15.658 million in Q3 2024, resulting in FFO per share - diluted of $0.63, compared to $0.60 in Q3 2024[65]. - Core FFO attributable to common stockholders for Q3 2025 was $17.715 million, down from $17.928 million in Q3 2024, with Core FFO per share - diluted increasing to $0.70 from $0.69[65]. - AFFO attributable to common stockholders for Q3 2025 was $20.232 million, a decrease from $20.587 million in Q3 2024, with AFFO per share - diluted at $0.80, compared to $0.79 in Q3 2024[65]. - Total revenues for the nine months ended September 30, 2025, were $187,990,000, down 3.4% from $194,654,000 in 2024[60]. - The YTD Same Store NOI for the nine months ended September 30, 2025, was $114,590,000, down 0.5% from $115,167,000 in 2024[64]. Revenue and Occupancy - The weighted average effective monthly rent per unit across all properties was $1,497, with physical occupancy at 93.6% as of September 30, 2025[6]. - Average effective rent decreased by 0.3% year-over-year for both Q3 and year-to-date periods[6]. - Same Store rental income decreased by 1.0% to $60,899,000 from $61,510,000 year-over-year[53]. - Same Store NOI for Q3 2025 was $38.819 million, an increase from $37.509 million in Q3 2024, reflecting a growth of 3.5%[48]. - As of September 30, 2025, Q3 Same Store properties were approximately 93.6% leased, a year-over-year decrease of 130 basis points[51]. - The total number of Same Store units was 12,946, with 12,115 units occupied as of September 30, 2025[64]. Capital Expenditures and Investments - The company completed 365 upgrades in Q3 2025, achieving an average monthly rent premium of $89 and a 21.3% ROI[6]. - Total capital expenditures for YTD 2025 were $26.186 million, an increase of 13.3% from $23.117 million in YTD 2024[67]. - Capitalized rehab expenditures for Q3 2025 were $2.017 million for interior improvements, a 76.8% increase from $1.141 million in Q3 2024[67]. - The company has completed upgrades on 4,925 units across various properties, with an average cost of $945 per unit and an overall ROI of 64.0%[72]. - The average rent increase post-rehab for the total weighted average of units was $1,334, reflecting a 13.7% increase from the pre-rehab average rent of $1,173[70]. - The total rehab budget for acquired properties amounted to $162,834,000, indicating a significant investment in property improvements[90]. Debt and Financing - The company entered into a $200 million revolving credit facility with J.P. Morgan on July 11, 2025[6]. - Total mortgage debt increased from $1,462,865 in Q3 2024 to $1,503,242 in Q3 2025, reflecting a rise of 2.74%[30]. - The leverage ratio (Total Debt to Market Capitalization plus Total Debt) increased from 57% in Q3 2024 to 65% in Q3 2025[30]. - The company’s total outstanding mortgage debt is $1,503,242,000, with a weighted average interest rate of 5.40%[76]. - The company has several interest rate swap agreements totaling a notional amount of $917,500,000, with a weighted average fixed rate of 1.361%[78]. - The company has a debt maturity schedule that outlines principal payments of $1,503,242 due in 2026 and thereafter[84]. - The company expects interest expense obligations to include the impact of expected settlements on interest rate swaps, with total expected settlements through the terms of the swaps[84]. Market and Job Growth - NXRT has a total of 12,984 units across various markets, with a national average job growth rate of 5.07% projected by August 2025[22]. - The Raleigh-Cary market shows a job growth rate of 7.78%, with 625 NXRT units and 761.5 jobs added[22]. - The Orlando-Kissimmee-Sanford market has 1,172 NXRT units and a job growth rate of 7.18%, adding 101.4 jobs[22]. - The projected job growth in the Charlotte-Concord-Gastonia market is 7.10%, with 504 NXRT units and 93.6 jobs added[22]. - The Dallas-Fort Worth-Arlington market has 1,945 NXRT units and a job growth rate of 4.12%, adding 170 jobs[22]. - The Miami-Fort Lauderdale-West Palm Beach market has 1,959 NXRT units and a job growth rate of 5.43%, with 153.4 jobs added[22]. - The Phoenix-Mesa-Chandler market shows a job growth rate of 5.13%, with 2,009 NXRT units and 119.4 jobs added[22]. - The company forecasts a total of 29,077 jobs added across its markets, with an overall job growth rate of 5.0%[26]. - The Nashville-Davidson-Murfreesboro-Franklin market has 1,338 NXRT units and a job growth rate of 5.54%, adding 63 jobs[22]. Dividends - The board approved a quarterly dividend of $0.53 per share, a 3.9% increase from the previous dividend, marking a 157.3% increase since inception[6]. - The company declared dividends of $0.51 per common share in Q3 2025, up 10.3% from $0.46 in Q3 2024[65].