NexPoint Residential Trust(US:NXRT)2025-10-29 12:30Financial Performance - Total revenues for the three months ended September 30, 2025, were $62.829 million, a decrease of $1.266 million compared to $64.095 million in the same period of 2024 [133]. - Total expenses for the three months ended September 30, 2025, were $55.410 million, a decrease of $3.106 million from $58.516 million in the same period of 2024 [133]. - Rental income for the three months ended September 30, 2025, was $60.9 million, down approximately $1.4 million from $62.3 million in the same period of 2024 [134]. - The net loss for the three months ended September 30, 2025, was $7.821 million, an improvement of $1.067 million compared to a net loss of $8.888 million in the same period of 2024 [133]. - Total revenues for the nine months ended September 30, 2025 were $189.2 million, down from $195.9 million in 2024, a decrease of $6.7 million [145]. - Net income (loss) for the nine months ended September 30, 2025 was $(21.8) million, a decrease of $49.9 million compared to a net income of $28.2 million in 2024 [145]. Operating Expenses - Property operating expenses decreased to $13.4 million for the three months ended September 30, 2025, from $15.7 million in the same period of 2024, a decrease of approximately $2.3 million [136]. - Real estate taxes and insurance costs were $7.3 million for the three months ended September 30, 2025, down from $8.1 million in the same period of 2024, a decrease of approximately $0.8 million [137]. - Total expenses for the nine months ended September 30, 2025 were $166.4 million, compared to $174.3 million in 2024, a decrease of $7.8 million [145]. - Property operating expenses decreased to $38.4 million for the nine months ended September 30, 2025 from $43.2 million in 2024, a reduction of approximately $4.8 million [147]. Income Metrics - Same Store NOI for Q3 2025 was $38,819 thousand, a 3.5% increase from $37,509 thousand in Q3 2024 [166]. - For the three months ended September 30, 2025, net income was $(7,821) thousand, compared to $(8,888) thousand for the same period in 2024, reflecting an improvement of 12.1% [163]. - Same Store NOI for the nine months ended September 30, 2025, was $114.59 million, a decrease of $0.58 million or 0.5% from $115.17 million in 2024 [178]. Debt and Financing - The company had approximately $1.5 billion in aggregate mortgage debt outstanding at a weighted average interest rate of 5.37% as of September 30, 2025 [215]. - Interest rate swap agreements effectively covered 62% of the company's floating rate mortgage debt, amounting to $0.9 billion, with a weighted average fixed rate of 1.36% [216]. - The company entered into a Credit Facility on July 11, 2025, with $198 million available for borrowing and $0 million outstanding as of September 30, 2025 [223]. - The Company has a total operating properties mortgage debt of $1,885,021,000, with principal payments of $1,503,242,000 and interest expenses of $381,779,000 as of September 30, 2025 [230]. Property Management and Operations - As of September 30, 2025, the portfolio consisted of 35 multifamily properties with 12,984 units, approximately 93.6% leased, and a weighted average monthly effective rent of $1,497 per occupied unit [114]. - The overall occupancy rate across the properties was 92.4% as of September 30, 2025, compared to 95.0% on December 31, 2024, indicating a decline of 2.6 percentage points [217]. - The company continues to focus on acquiring and operating multifamily properties with a value-add component in large cities and suburban markets, primarily in the Southeastern and Southwestern United States [115]. Capital Expenditures and Renovations - The Company completed full and partial interior rehabs on 1,130 units in the nine months ended September 30, 2025, compared to 330 units in the same period of 2024 [237]. - For the three months ended September 30, 2025, total rehab expenditures amounted to $2,077,000, compared to $1,626,000 for the same period in 2024 [237]. - The average annual repairs and maintenance expense is anticipated to be between $575 to $725 per apartment unit, with non-recurring capital expenditures reserved at approximately $250 to $350 per unit [237]. Cash Flow and Dividends - Net cash provided by operating activities for the nine months ended September 30, 2025, was $77.5 million, compared to $67.1 million in 2024, primarily due to an increase in real estate taxes payable of $6.5 million [210]. - The third quarterly dividend of 2025 was declared at $0.51 per share, paid on September 30, 2025, funded from cash flows from operations [244]. Risk Management - Credit risk is present in derivative financial instruments, with the company minimizing this risk by dealing with major financial institutions with high credit ratings [256]. - The company has a strategy to manage interest rate risks through interest rate cap and swap agreements [253].