NexPoint Residential Trust(US:NXRT)2025-04-29 16:02Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss of $6.9 million, or a loss of $0.27 per diluted share, on total revenue of $63.2 million, compared to a net income of $26.4 million, or $1 earnings per diluted share, for the same period in 2024 on total revenue of $67.6 million [7] - Net Operating Income (NOI) for Q1 2025 was $37.8 million on 35 properties, down from $41.1 million for Q1 2024 on 37 properties, indicating a decrease in same store NOI of 3.8% year-over-year [7][10] - Core Funds from Operations (FFO) for Q1 was $19.1 million, or $0.75 per diluted share, compared to $0.74 per diluted share in Q1 2024 [7] Business Line Data and Key Metrics Changes - Same store rent and occupancy decreased by 1.3% and 0.3% respectively, leading to a 1% decrease in same store revenues [7] - The company completed two full and partial upgrades during the quarter, achieving an average monthly rent premium of $62 and a 16.1% return on investment [8] Market Data and Key Metrics Changes - Occupancy ended the quarter at 94.4%, with significant growth in Nashville and Phoenix, which finished at 95.4% and 96.6% respectively [12] - Nationally, over 38,000 units were absorbed, marking a record first quarter leasing and demand performance [14] Company Strategy and Development Direction - The company is focusing on rent growth initiatives while balancing occupancy maximization, particularly in markets facing new deliveries and concessions [16] - The company is optimistic about the inflection of new lease growth, which is seen as a positive sign for its assets after several quarters of softness [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains strong, with expectations for same store NOI to improve over the remainder of the year [13] - The company is actively monitoring the impacts of tariffs but has not seen a material impact on operations thus far [19][20] Other Important Information - The company reaffirmed its guidance for same store rental income, total revenue, total expenses, and NOI for the year [10] - The company has initiated a share buyback program and purchased 223,109 shares totaling approximately $7.6 million at an average price of $34.29 per share [11] Q&A Session Summary Question: Are there geographies where cap rates are softer? - Management indicated that Atlanta and some areas in DFW are on the weaker side of the NAV guidance due to ongoing supply [25] Question: Could the company sell more assets to repurchase stock? - Management expressed the intention to maintain a steady buyback program while being opportunistic in recycling capital [28] Question: Is the increase in core FFO per share guidance driven by share buybacks and swaps? - Management confirmed that the increase is primarily due to favorable swap rates and share buybacks [34] Question: How does the company view the strength in Las Vegas amidst declining tourism? - Management attributed the strength to the affordable gap in the market, with net migration inflows continuing to support demand [47] Question: What is the CapEx guidance for the year? - Management indicated a stable run rate for recurring and nonrecurring CapEx, with a target of around 300 interior upgrades in Q2 and Q3 [53]