NexPoint Residential Trust (NXRT) Q2 2025 earnings summary

Executive summary

• Q2 2025 reported a net loss of $7 million ($0.28 per diluted share) on $63.1 million in revenue, compared to net income of $10.6 million ($0.40 per share) on $64.2 million in Q2 2024, mainly due to lower gains on real estate sales.

• Portfolio comprised 35 multifamily properties with 12,984 units, 93.3% leased, and average monthly rent of $1,500 as of June 30, 2025.

• Core FFO for Q2 was $18 million ($0.71 per share), flat year-over-year; AFFO was $20.3 million ($0.80 per share).

• 555 unit upgrades completed and 381 upgraded units leased, achieving a $73 average rent premium and 26% ROI.

• Focus remains on value-add multifamily assets in the Southeastern and Southwestern U.S., with REIT status maintained.

Financial highlights

• Same-store rent and occupancy decreased 1.3% and 0.8% year-over-year; same-store NOI down 1.1% to $38 million.

• Dividend of $0.51 per share paid in Q2, 1.39x covered by core FFO, with a 72.2% payout ratio.

• 223,109 shares repurchased for $7.6 million at $34.29 per share average.

• Entered a new $100 million SOFR swap at 3.489% fixed rate.

• Market capitalization at quarter-end was $845 million, with a share price of $33.32.

Outlook and guidance

• NAV per share estimated at $43.90–$56.73, midpoint $50.31, with stable cap rates quarter-over-quarter.

• 2025 guidance tightened for core FFO and same-store NOI, with midpoints affirmed; loss per share guidance: $1.22–$1.40 (midpoint $1.31); core FFO per share: $2.66–$2.84 (midpoint $2.75).

• Management expects continued challenges from higher interest rates and capital market volatility.

• New $200 million revolving credit facility secured in July 2025 to support liquidity and growth.

• Reaffirmed acquisition and disposition guidance.