NEXPOINT RESIDENTIAL TRUST, INC. REPORTS SECOND QUARTER 2025 RESULTS

NXRT Reports $100 million SOFR Swap and $7.6 million of Share Repurchase Activity

DALLAS, July 29, 2025 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the second quarter ended June 30, 2025.

Highlights

NXRT1 reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(7.0)M, $16.9M, $18.0M and $20.3M, respectively, attributable to common stockholders for the quarter ended June 30, 2025, compared to Net Income, FFO, Core FFO, and AFFO of $10.6M, $16.3M, $18.1M and $20.8M, respectively, attributable to common stockholders for the quarter ended June 30, 2024.

NXRT reported Net Loss, FFO, Core FFO and AFFO of $(13.9)M, $34.3M, $37.0M and $41.8M, respectively, attributable to common stockholders for the six months ended June 30, 2025, compared to Net Income, FFO, Core FFO, and AFFO of $36.9M, $35.3M, $37.5M and $42.8M, respectively, attributable to common stockholders for the six months ended June 30, 2024.

For the three months ended June 30, 2025, Q2 Same Store properties3, occupancy decreased 80 bps, total revenue decreased 0.2%, and average effective rent and NOI2 decreased 1.3% and 1.1% over the prior year period.

For the six months ended June 30, 2025, YTD Same Store properties3, occupancy decreased 80 bps, total revenue and NOI2 decreased 0.6% and 2.4%, respectively, and average effective rent decreased 1.3% over the prior year period.

NXRT paid a second quarter dividend of $0.51 per share of common stock on June 30, 2025.

During the second quarter, the Company purchased and subsequently retired 223,109 shares of its common stock, totaling approximately $7.6 million at an average price of $34.29 per share.

The weighted average effective monthly rent per unit across all 35 properties held as of June 30, 2025 (the "Portfolio"), consisting of 12,9844 units, was $1,500, while physical occupancy was 93.3%.

During the second quarter 2025, for the properties in the Portfolio, we completed 555 full and partial upgrades and leased 381 upgraded units, achieving an average monthly rent premium of $73 and a 26.0% ROI5.

Since inception, for the properties currently in the Portfolio, we have completed 9,113 full and partial upgrades, 4,870 kitchen and laundry appliances, and 11,199 technology packages, resulting in a $165, $50, and $43 average monthly rental increase per unit and a 20.8%, 64.2%, and 37.2% ROI, respectively.

1)

In this release, "we," "us," "our," the "Company," and "NXRT" each refer to NexPoint Residential Trust, Inc., a Maryland corporation.

2)

FFO, Core FFO, AFFO and NOI are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of FFO, Core FFO, AFFO and NOI to net loss, see the "Definitions and Reconciliations of Non-GAAP Measures," "FFO, Core FFO and AFFO" and "NOI and Same Store NOI" sections of this release.

3)

We define "Same Store" properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 35 properties encompassing 12,946 units of apartment space in our Same Store pool for the three months ended June 30, 2025 (our "Q2 Same Store" properties) and 35 properties encompassing 12,946 units of apartment space in our Same Store pool for the six months ended June 30, 2025 (our "YTD Same Store" properties). The same store unit count excludes 38 units that are currently down due to casualty events (Rockledge: 20 units, Bella Solara: 16 units, Summers Landing: 1 unit, The Avant at Pembroke Pines: 1 unit).

4)

Total units owned in our Portfolio is 12,984, however 38 units are currently down due to casualty events (Rockledge: 20 units, Bella Solara: 16 units, Summers Landing: 1 unit, The Avant at Pembroke Pines: 1 unit).

5)

We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost.

Second Quarter 2025 Financial Results

Total revenues were $63.1 million for the second quarter of 2025, compared to $64.2 million for the second quarter of 2024.

Net loss for the second quarter of 2025 totaled $7.0 million, or loss of $(0.28) per diluted share, which included $24.1 million of depreciation and amortization expense. This compared to net income of $10.6 million, or income of $0.40 per diluted share, for the second quarter of 2024, which included $24.4 million of depreciation and amortization expense.

The change in our net loss of $(7.1) million for the three months ended June 30, 2025 as compared to our net income of $10.6 million for the three months ended June 30, 2024 primarily relates to a decrease in gain on sales of real estate of $18.7 million.

For the second quarter of 2025, NOI was $38.0 million on 35 properties, compared to $38.9 million for the second quarter of 2024 on 36 properties.

For the second quarter of 2025, Q2 Same Store NOI decreased 1.1% to $38.0 million, compared to $38.4 million for the second quarter of 2024.

For the second quarter of 2025, FFO totaled $16.9 million, or $0.67 per diluted share, compared to $16.3 million, or $0.62 per diluted share, for the second quarter of 2024.

For the second quarter of 2025, Core FFO totaled $18.0 million, or $0.71 per diluted share, compared to $18.1 million, or $0.69 per diluted share, for the second quarter of 2024.

For the second quarter of 2025, AFFO totaled $20.3 million, or $0.80 per diluted share, compared to $20.8 million, or $0.79 per diluted share, for the second quarter of 2024.

2025 Year to Date Financial Results

Total revenues were $126.4 million for the six months ended June 30, 2025, compared to $131.8 million for the six months ended June 30, 2024.

Net loss for the six months ended June 30, 2025 totaled $13.9 million, or loss of $(0.55) per diluted share, which included $48.4 million of depreciation and amortization expense. This compared to net income of $36.9 million, or income of $1.40 per diluted share, for the six months ended June 30, 2024, which included $48.8 million of depreciation and amortization expense.

The change in our net loss of $(14.0) million for the six months ended June 30, 2025 as compared to our net income of $37.0 million for the six months ended June 30, 2024 primarily relates to an decrease in gain on sales of real estate of $50.4 million.

For the six months ended June 30, 2025, NOI was $75.8 million on 35 properties, compared to $80.0 million for the six months ended June 30, 2024 on 36 properties.

For the six months ended June 30, 2025, Same Store NOI decreased 2.4% to $75.8 million, compared to $77.7 million for the six months ended June 30, 2024.

For the six months ended June 30, 2025, FFO totaled $34.3 million, or $1.34 per diluted share, compared to $35.3 million, or $1.34 per diluted share, for the six months ended June 30, 2024.

For the six months ended June 30, 2025, Core FFO totaled $37.0 million, or $1.45 per diluted share, compared to $37.5 million, or $1.43 per diluted share, for the six months ended June 30, 2024.

For the six months ended June 30, 2025, AFFO totaled $41.8 million, or $1.64 per diluted share, compared to $42.8 million, or $1.62 per diluted share, for the six months ended June 30, 2024.

Subsequent Events

On July 28, 2025, the Company's Board approved a quarterly dividend of $0.51 per share, payable on September 30, 2025 to stockholders of record on September 15, 2025.

On July 11, 2025, the Company, through NexPoint Residential Trust Operating Partnership, L.P. (the "OP") entered into a $200.0 million revolving credit facility with J.P. Morgan Chase Bank, N.A. and the lenders thereto from time to time (the "Credit Facility"). The Credit Facility may be increased by up to an additional $200.0 million if the lenders agree to increase their commitments. The Credit Facility will mature on June 30, 2028, unless the Company exercises its option to extend for a one-year term.

Second Quarter Earnings Conference Call

NXRT will host a call on Tuesday, July 29, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss its second quarter 2025 financial results. The conference call can be accessed live over the phone by dialing 888-660-4430 or, for international callers, +1 646-960-0537 and using passcode Conference ID: 5001576. A live audio webcast of the call will be available online at the Company's website, nxrt.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.

A replay of the conference call will also be available through Tuesday, August 12, 2025, by dialing 800-770-2030 or, for international callers, +1 647-362-9199 and entering passcode 5001576.

About NXRT

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located, middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience. Our filings with the Securities and Exchange Commission (the "SEC") are available on our website, nxrt.nexpoint.com, under the "Financials" tab.

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "expect," "anticipate," "estimate," "may," "plan," "believe" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding NXRT's business and industry in general, forecasted submarket deliveries, 2025 full year guidance for earnings per diluted share and Core FFO per diluted share and the related components and assumptions, including acquisitions and dispositions, shares outstanding, and same store growth projections, NXRT's net asset value and the related components and assumptions, including estimated value-add expenditures, debt payments, outstanding debt, and shares outstanding, net income and NOI guidance for the full year and third quarter of 2025 and the related assumptions, planned value-add programs, including projected average rehab costs, rent change and return on investment, and expected settlement of interest rate swaps and the effect on the debt maturity schedule, rehab budgets. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's most recent Annual Report on Form 10-K and other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements.

FFO, Core FFO and AFFO

The following table reconciles our calculations of FFO, Core FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2025

2024

2025

2024

% Change

Net income (loss)

$

(7,061)

$

10,638

$

(13,985)

$

37,040

N/M

Depreciation and amortization

24,059

24,442

48,409

48,765

-0.7

%

Gain on sales of real estate

(1)

—

(18,686)

—

(50,395)

N/M

Adjustment for noncontrolling interests

(67)

(64)

(136)

(139)

-2.2

%

FFO attributable to common stockholders

16,931

16,330

34,288

35,271

-2.8

%

FFO per share - basic

$

0.67

$

0.64

$

1.35

$

1.38

-2.2

%

FFO per share - diluted

$

0.67

$

0.62

$

1.34

$

1.34

0.0

%

Loss on extinguishment of debt and modification costs

—

255

—

801

N/M

Casualty-related expenses/(recoveries)

(792)

232

(1,448)

267

N/M

Casualty loss

5

737

168

538

N/M

Amortization of deferred financing costs

1,628

702

3,272

1,419

N/M

Mark-to-market adjustments of interest rate caps

187

(116)

778

(742)

N/M

Adjustment for noncontrolling interests

(4)