NexPoint Residential Trust(US:NXRT)2026-02-24 17:02Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $10.3 million, or $0.41 per diluted share, on total revenue of $62.1 million, compared to a net loss of $26.9 million, or $1.06 per diluted share, on total revenue of $63.8 million in Q4 2024, indicating an improvement in net loss despite a slight decrease in revenue [4] - The Q4 NOI was $37.1 million, a 4.7% decrease from $38.9 million in Q4 2024, with same-store rental income decreasing by 2.8% and same-store occupancy closing at 92.7% [5] - For the full year 2025, the net loss was $32 million, or $1.26 per diluted share, compared to a net income of $1.1 million, or $0.04 per diluted share, in 2024 [8] Business Line Data and Key Metrics Changes - The company completed 388 full and partial renovations in Q4 2025, leasing 275 renovated units with an average monthly rent premium of $74 and a 22.2% ROI [6] - Since inception, the company has completed 9,866 upgrades, resulting in average monthly rental increases of $158, $50, and $43 for different upgrades, with respective ROIs of 20.8%, 63.7%, and 37.2% [7] Market Data and Key Metrics Changes - Same-store average effective rents closed at $1,489 per unit per month, down 10 basis points year-over-year, with six of ten same-store markets showing positive year-over-year growth [16] - The same-store portfolio closed the year at 92.7% occupancy, down 195 basis points year-over-year, with South Florida leading at 94.5% [16] Company Strategy and Development Direction - The company plans to improve economic occupancy by approximately 900 basis points over four years through targeted upgrades and enhancements [21] - The 2026 guidance includes a projected same-store NOI growth range of -2.5% to 1.5%, with a midpoint of -0.5% [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Sun Belt multifamily market, anticipating an inflection point in lease growth due to reduced new supply and strong job growth [30] - The demographic profile of renters is shifting, with an increasing average age and household income, indicating a potential for higher demand for amenities catering to older populations [66] Other Important Information - The company has a total indebtedness of $1.6 billion with an adjusted weighted average interest rate of 3.28%, and no scheduled debt maturities until 2028 [12] - The company repurchased 223,109 shares at a weighted average price of $34.29 per share during 2025 [6] Q&A Session Summary Question: Refurbishment and remodeling plans for 2026 - The company plans to do 300 full upgrades and 400 partial upgrades, totaling around 1,700 units, similar to 2025 [38] Question: Interest rate swaps and their impact - Management is monitoring the swap market closely and is cautious about layering in additional swaps due to current market conditions [45] Question: January and February leasing trends - January new leases were down 7%, while February showed improvement with new leases down 5.7% [49] Question: Dividend coverage by cash flow - The dividend is covered by cash flow, targeting a ratio of 65%-75% of core AFFO [58] Question: Senior renter population trends - The company is seeing an increase in the average age and income of renters, indicating a shift in demand for amenities catering to older populations [66]