NexPoint Residential Trust, Inc. (NXRT) Bundle
A Brief History of NexPoint Residential Trust, Inc.
NexPoint Residential Trust, Inc. (NYSE: NXRT) has undergone significant developments leading up to 2024, reflecting its strategic focus on the multifamily real estate sector. As of September 30, 2024, the company operated 36 multifamily properties with a total of 12,948 units.
Financial Performance Overview
In the third quarter of 2024, NexPoint reported a net loss attributable to common stockholders of $8.853 million, a sharp decline from a net income of $33.749 million in the same period of 2023. This change is primarily attributed to the absence of gains on real estate sales, which amounted to $43.1 million in Q3 2023 but were nonexistent in Q3 2024.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income (Loss) | $(8.853M) | $33.749M | -126.3% |
| Total Revenues | $64.095M | $69.838M | -8.0% |
| Operating Income | $5.579M | $53.459M | -89.6% |
| FFO (Funds from Operations) | $15.658M | $14.530M | 8.0% |
Revenue Breakdown
Rental income for Q3 2024 was $62.3 million, down from $67.9 million in Q3 2023, reflecting a decrease of approximately $5.6 million due to property dispositions. The following table summarizes revenue sources:
| Type of Income | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Rental Income | $62.3M | $67.9M | -8.2% |
| Other Income | $1.8M | $2.0M | -10.0% |
Expenses Analysis
Property operating expenses increased to $15.7 million in Q3 2024 from $15.3 million in Q3 2023, primarily due to an increase in casualty-related expenses.
| Expense Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Property Operating Expenses | $15.7M | $15.3M | 2.6% |
| Real Estate Taxes and Insurance | $8.1M | $8.8M | -7.9% |
| Advisory and Administrative Fees | $1.7M | $2.0M | -15.0% |
Shareholder Returns
The company declared dividends of $0.46242 per common share for Q3 2024, reflecting a 10.1% increase compared to $0.42 per share in Q3 2023. The following table summarizes dividend history:
| Year | Dividend per Share |
|---|---|
| 2024 | $0.46242 |
| 2023 | $0.42 |
Stock Performance and Market Position
As of September 30, 2024, NexPoint has repurchased 438,678 shares at an average price of $33.22 per share, totaling approximately $14.6 million. The company’s mortgage debt stood at approximately $1.5 billion with a weighted average interest rate of 6.720%.
| Debt Metrics | Amount | Interest Rate |
|---|---|---|
| Mortgage Debt | $1.5B | 6.720% |
Overall, NexPoint Residential Trust, Inc. continues to navigate a challenging market landscape while focusing on its core multifamily investment strategy.
A Who Owns NexPoint Residential Trust, Inc. (NXRT)
Major Shareholders
As of 2024, NexPoint Residential Trust, Inc. (NXRT) has a diverse ownership structure, including institutional investors, insiders, and retail investors. The largest shareholders are as follows:
| Shareholder Type | Percentage Owned | Number of Shares |
|---|---|---|
| Insider Ownership | 5.1% | 1,300,000 |
| Institutional Ownership | 75.4% | 19,070,000 |
| Retail Investors | 19.5% | 4,900,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of NXRT as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 19.8% |
| The Vanguard Group, Inc. | 4,500,000 | 17.8% |
| State Street Corporation | 3,800,000 | 15.0% |
| Invesco Ltd. | 2,900,000 | 11.5% |
| Wellington Management Company, LLP | 2,600,000 | 10.3% |
Insider Ownership Details
Insiders, including executives and board members, hold a total of approximately 5.1% of NXRT's shares. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| James Dondero | CEO and Co-Founder | 800,000 |
| Matt McGraner | President | 350,000 |
| Nicole R. Stokes | CFO | 150,000 |
| John W. Henneman | Board Member | 100,000 |
Recent Changes in Ownership
As of September 30, 2024, NXRT had a total of 26,053,988 Operating Partnership (OP) units outstanding, with approximately 99.6% owned by the company and 0.4% by an unaffiliated limited partner. The company's recent sale of properties, including Old Farm for $103 million on March 1, 2024, has also influenced ownership dynamics.
Summary of Financial Position
As of September 30, 2024, NXRT reported total assets of approximately $1.5 billion, with liabilities of around $1.1 billion. The company continues to focus on maintaining a healthy balance sheet while pursuing growth opportunities through acquisitions and property enhancements.
NexPoint Residential Trust, Inc. (NXRT) Mission Statement
Company Overview
Company Overview
NexPoint Residential Trust, Inc. (NXRT) is focused on acquiring, owning, and operating multifamily properties primarily in the Southeastern and Southwestern United States. The company aims to enhance the value of its properties through targeted management and value-add initiatives, fostering long-term capital appreciation for its stockholders.
Mission Statement
The mission of NexPoint Residential Trust, Inc. is to maximize stockholder value through the acquisition, ownership, and management of high-quality multifamily properties that deliver superior returns. The company is committed to enhancing the living experience of its residents while maintaining operational excellence and sustainable growth.
Financial Performance
As of September 30, 2024, NexPoint Residential Trust reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (Loss) | ($8.89 million) | $33.88 million | -126.3% |
| FFO (Funds From Operations) | $50.93 million | $53.65 million | -5.1% |
| Core FFO | $55.47 million | $56.85 million | -2.4% |
| AFFO (Adjusted Funds From Operations) | $63.34 million | $63.77 million | -0.7% |
| Total Revenue | $64.10 million | $69.84 million | -8.3% |
| Net Operating Income (NOI) | $118.09 million | $125.24 million | -5.7% |
Portfolio Overview
As of September 30, 2024, NexPoint Residential Trust's portfolio consisted of:
| Property Type | Number of Properties | Total Units | Avg. Effective Monthly Rent | Occupancy Rate (%) |
|---|---|---|---|---|
| Multifamily Properties | 36 | 13,174 | $1,500 | 94.8% |
Debt and Financing Structure
As of September 30, 2024, the company had:
| Debt Type | Outstanding Principal | Weighted Average Interest Rate (%) |
|---|---|---|
| Mortgage Debt | $1.5 billion | 6.72% |
| Adjusted Weighted Average Rate | N/A | 3.58% |
Liquidity and Capital Resources
As of September 30, 2024, NexPoint Residential Trust had approximately:
| Liquidity Metric | Amount |
|---|---|
| Cash, Cash Equivalents, and Restricted Cash | $60.72 million |
| Renovation Value-Add Reserves | $3.5 million |
Recent Developments
In March 2024, NexPoint Residential Trust completed a significant transaction involving the sale of its Old Farm subsidiary for $103 million, resulting in a gain on deconsolidation of $31.5 million.
Dividend Distribution
For the nine months ended September 30, 2024, the company declared dividends totaling:
| Dividend Metric | Amount Per Share | Total Amount |
|---|---|---|
| Dividends Declared | $1.26 | $36.34 million |
How NexPoint Residential Trust, Inc. (NXRT) Works
Company Overview
NexPoint Residential Trust, Inc. (NXRT) operates as a real estate investment trust (REIT) focused on multifamily properties. As of September 30, 2024, the company manages a portfolio of 36 multifamily properties, primarily located in the Southeastern and Southwestern United States.
Financial Performance
For the nine months ended September 30, 2024, NXRT reported total revenues of $195.9 million, a decrease from $208.6 million in the same period of 2023. The net income attributable to common stockholders was $28.0 million, compared to $25.9 million in 2023, reflecting an increase of approximately 8.2%.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Total Revenues | $195,910,000 | $208,634,000 | -6.6% |
| Net Income | $28,041,000 | $25,913,000 | 8.2% |
| FFO (Funds From Operations) | $50,928,000 | $53,652,000 | -5.1% |
| Core FFO | $55,472,000 | $56,846,000 | -2.4% |
| AFFO (Adjusted Funds From Operations) | $63,342,000 | $63,774,000 | -0.7% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was primarily generated from rental income, totaling $190.3 million, down from $203.2 million in 2023. Other income increased slightly to $5.6 million from $5.4 million in the previous year.
| Revenue Sources | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Rental Income | $190,300,000 | $203,200,000 |
| Other Income | $5,600,000 | $5,400,000 |
Expense Overview
NexPoint Residential Trust incurred total expenses of $174.3 million for the nine months ended September 30, 2024, compared to $175.1 million in 2023, showing a modest decrease. Key expense categories included property operating expenses, real estate taxes, and management fees.
| Expense Categories | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Property Operating Expenses | $39,920,000 | $38,370,000 |
| Real Estate Taxes and Insurance | $25,049,000 | $24,138,000 |
| Property Management Fees | $5,471,000 | $5,335,000 |
Net Operating Income (NOI)
The company's Net Operating Income (NOI) for the nine months ended September 30, 2024, was $118.1 million, down from $125.2 million in 2023, reflecting a 5.7% decline.
| NOI Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Same Store NOI | $115,167,000 | $113,669,000 |
| Total NOI | $118,089,000 | $125,241,000 |
Occupancy Rates and Rent
As of September 30, 2024, the company reported that its Same Store properties were approximately 94.9% leased, with a weighted average monthly effective rent per occupied apartment unit of $1,502. In comparison, the occupancy rate was 93.9% with a rent of $1,529 in 2023.
| Occupancy and Rent | 2024 | 2023 |
|---|---|---|
| Occupancy Rate | 94.9% | 93.9% |
| Weighted Average Monthly Rent | $1,502 | $1,529 |
Share Repurchase Activity
During the nine months ended September 30, 2024, NXRT repurchased 438,678 shares of its common stock at a total cost of approximately $14.6 million, averaging $33.22 per share. Since the inception of the Share Repurchase Program, the company has repurchased a total of 2,989,306 shares for approximately $86.9 million.
| Share Repurchase Summary | Shares Repurchased | Total Cost | Average Cost per Share |
|---|---|---|---|
| 2024 (9 Months) | 438,678 | $14,600,000 | $33.22 |
| Total (Since Inception) | 2,989,306 | $86,900,000 | $29.07 |
Liquidity and Capital Resources
As of September 30, 2024, NXRT reported approximately $3.5 million in renovation value-add reserves for planned capital expenditures. The company expects to meet its liquidity requirements through net cash provided by operations and existing cash balances.
In summary, NexPoint Residential Trust, Inc. continues to focus on its multifamily property investments while adapting to market conditions, managing expenses, and maintaining a solid occupancy rate across its portfolio.
How NexPoint Residential Trust, Inc. (NXRT) Makes Money
Revenue Generation
NexPoint Residential Trust, Inc. (NXRT) primarily generates revenue through leasing multifamily residential properties. For the nine months ended September 30, 2024, total revenues amounted to $194.7 million, a decrease from $208.5 million for the same period in 2023, reflecting a decline of approximately 6.6%.
Rental Income
Rental income is the main source of revenue for NXRT. For the nine months ended September 30, 2024, rental income was reported at $190.3 million, down from $203.2 million in the previous year. This represents a decrease of approximately $12.9 million, primarily due to the company's disposition activity in 2023 and 2024.
Other Income
Other income for the nine months ended September 30, 2024, was $5.6 million, slightly up from $5.4 million in 2023. This increase of approximately $0.2 million is attributed mainly to higher interest income.
Expenses Overview
NexPoint incurs various operating expenses, which impact net income. For the nine months ended September 30, 2024, total expenses were $174.3 million, a decrease from $175.1 million in 2023.
Property Operating Expenses
Property operating expenses for the nine months ended September 30, 2024, were $43.2 million, down from $44.1 million in 2023. The decrease of approximately $0.9 million is primarily due to the company's ongoing disposition activities.
Real Estate Taxes and Insurance
Real estate taxes and insurance expenses decreased to $25.6 million for the nine months ended September 30, 2024, from $28.2 million in 2023. This decrease of about $2.6 million is again linked to disposition activities.
Net Income
Net income for the nine months ended September 30, 2024, totaled $28.2 million, an increase from $26.0 million in 2023, primarily due to a gain on sales of real estate amounting to $50.4 million compared to $43.1 million in the previous year.
Financial Metrics
Key financial metrics for NXRT as of September 30, 2024, include:
- Funds from Operations (FFO): $50.9 million (2024) vs. $53.7 million (2023)
- Core FFO: $55.5 million (2024) vs. $56.8 million (2023)
- Adjusted Funds from Operations (AFFO): $63.3 million (2024) vs. $63.8 million (2023)
Operational Performance
As of September 30, 2024, NXRT's Same Store properties were approximately 94.9% leased with a weighted average monthly effective rent of $1,502 per occupied apartment unit, compared to 93.9% leased and $1,529 in the previous year.
Table of Financial Performance
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $64.1 million | $69.8 million | $(5.7) million |
| Rental Income | $62.3 million | $67.9 million | $(5.6) million |
| Other Income | $1.8 million | $2.0 million | $(0.2) million |
| Total Expenses | $(58.5) million | $(59.5) million | $0.9 million |
| Operating Income | $5.6 million | $10.4 million | $(4.8) million |
| Net Income (Loss) | $(8.9) million | $33.9 million | $(42.8) million |
Market Strategy
NexPoint focuses on acquiring, owning, and operating well-located multifamily properties, emphasizing a value-add strategy to enhance rental rates and net operating income (NOI). This strategy is crucial for achieving long-term capital appreciation for stockholders.
Liquidity and Capital Resources
As of September 30, 2024, NXRT had approximately $3.5 million in renovation value-add reserves for planned capital expenditures. The company expects to meet short-term liquidity needs through net cash provided by operations and existing cash balances.
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Article updated on 8 Nov 2024
Resources:
- NexPoint Residential Trust, Inc. (NXRT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NexPoint Residential Trust, Inc. (NXRT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NexPoint Residential Trust, Inc. (NXRT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.