NexPoint Residential Trust(US:NXRT)2023-07-27 22:53Portfolio 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].