NexPoint Residential Trust (NXRT) Q1 2025 earnings summary

Executive summary

• Q1 2025 reported a net loss of $6.9 million ($0.27 per diluted share) on $63.2 million in revenue, compared to net income of $26.3–$26.4 million ($1.00 per share) on $67.6 million in Q1 2024, mainly due to a $31.7 million gain on sale in the prior year.

• Portfolio comprised 35 multifamily properties with 12,984 units, 94.4% leased, and average monthly rent of $1,495 as of March 31, 2025.

• Core FFO was $19.1 million ($0.75 per share), up from $0.74 per share in Q1 2024; FFO was $17.4 million ($0.68/share), and AFFO was $21.6 million ($0.84–$0.85/share), both slightly down year-over-year.

• Paid a quarterly dividend of $0.51 per share, a 10.3% increase from Q1 2024, with a 68.3% payout ratio of core FFO and 1.4x–1.46x coverage.

• 210 unit upgrades completed in Q1, achieving a $62 average monthly rent premium and 16.1% ROI; value-add program has upgraded 8,558 units since inception with a $172 average rent increase and 20.7% ROI.

Financial highlights

• Total revenues for Q1 2025 were $63.2 million, down from $67.6 million in Q1 2024, mainly due to prior year property dispositions.

• NOI for Q1 was $37.8 million, down from $41.1 million in Q1 2024; Same Store NOI was $37.7 million, down 3.8% year-over-year.

• Same-store rent and occupancy decreased 1.3% and 0.3% year-over-year, with same-store NOI down 3.8%.

• AFFO was $21.6 million ($0.84–$0.85/share), down 1.8% year-over-year.

• Dividend yield was 5.57% as of April 28, 2025.

Outlook and guidance

• 2025 guidance revised: loss per diluted share between -$1.36 and -$1.08 (midpoint -$1.22); core FFO per share between $2.61 and $2.89 (midpoint $2.75); NOI guidance $148.7M to $154.9M.

• Same Store NOI growth guidance: -3.5% to 0.5% for 2025.

• Guidance revision driven by share buybacks, interest rate environment, and additional swaps; acquisition/disposition guidance $100M to $200M each.

• Management expects to meet short-term liquidity needs through operations, cash, and credit; long-term liquidity will rely on debt/equity financing and property sales.

• REIT status and dividend policy reaffirmed; no material changes to risk factors.