Financial Data and Key Metrics Changes - The net loss for Q4 2024 was $26.9 million or $1.06 per diluted share, compared to a net income of $18.4 million or $0.70 per diluted share in Q4 2023, reflecting a significant decline in profitability [8] - Total revenue for Q4 2024 was $63.8 million, down from $68.9 million in the same period in 2023 [8] - For the full year 2024, net income was $1.1 million or $0.04 per diluted share, compared to $44.3 million or $1.59 per diluted share in 2023 [10] - Core FFO for Q4 2024 was $17.7 million or $0.68 per diluted share, down from $0.75 per diluted share in Q4 2023 [9] - The company reported a NAV per share range of $44.56 to $58.52, with a midpoint of $51.54, reflecting stability in capital markets [11] Business Line Data and Key Metrics Changes - Net operating income (NOI) for Q4 2024 was $38.9 million on 35 properties, down from $42.2 million on 38 properties in Q4 2023, marking a 7.6% decrease [8] - Same store rental income increased by 2.3% for the full year, while same store occupancy remained stable at 98.7% [10] - The company completed 58 renovations in Q4 2024, achieving an average monthly rent premium of $150 and a 19.2% return on investment [9] Market Data and Key Metrics Changes - Occupancy rates in the DFW and Charlotte markets showed significant growth, finishing the year at 96.4% [17] - The same store NOI margin for the full year 2024 was 61.61%, with five of the ten same store markets growing NOI by at least 3% [20] Company Strategy and Development Direction - The company plans to continue its value-add business strategy, focusing on renovations and upgrades to drive rent growth [9][24] - Guidance for 2025 includes expectations for same store NOI growth to range from a 3.5% decline to a 50 basis point increase, with a midpoint projecting a 1.5% reduction year over year [21] - The company is prioritizing renovations in markets where it can push rates, particularly in South Florida and Raleigh [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in 2026 and 2027, particularly in the second half of the year [26] - The company noted a positive trend in bad debt, expecting improvement in 2025 [30] - Management acknowledged challenges in certain markets, such as Raleigh, but remains confident in the long-term outlook [31] Other Important Information - The company paid a dividend of $0.51 per share on December 31, 2024, with a payout ratio of 68% of core FFO [12] - NXRT has $373 million of available liquidity as it heads into 2025, providing flexibility for future investments [25] Q&A Session Summary Question: What drove the positive rental income result in Atlanta despite occupancy declines? - Management indicated that higher occupancy and the rollout of bulk WiFi contributed to total revenue growth in Atlanta [28][29] Question: Can you explain the decrease in occupancy in the Raleigh-Durham market? - Management noted that increased supply and personnel changes affected occupancy, but they remain optimistic about the market's recovery [30][31] Question: Any updates on the full interior upgrades plan? - Management confirmed that they are prioritizing renovations in markets with potential for rate increases and expect to double the output compared to last year [32][33] Question: How will interest expense be affected in 2025? - Management highlighted a $0.12 benefit from swap expirations and a reduction in total interest expense due to improved terms [36][38]