NexPoint Residential Trust (NXRT) Q3 2024 earnings summary

Executive summary

• Reported a Q3 2024 net loss of $8.9M ($0.35 per diluted share), compared to net income of $33.7M in Q3 2023, mainly due to lower gains on real estate sales and depreciation impacts.

• Portfolio comprised 36 multifamily properties with 13,174 units, 94.8% leased, and average rent of $1,500 as of September 30, 2024.

• Dividend per share increased by 10.3% to $0.51 for Q4 2024, with a 147.6% increase since inception.

• Focus remains on value-add multifamily assets in the Southeastern and Southwestern U.S., maintaining REIT status and distributing at least 90% of taxable income.

• Challenging macroeconomic environment with high interest rates and limited credit availability impacting acquisitions and asset sales.

Financial highlights

• Q3 2024 total revenues were $64.1M, down from $69.8M year-over-year, mainly due to property dispositions.

• Q3 2024 Core FFO was $17.9M ($0.69 per diluted share), flat year-over-year; FFO was $15.7M ($0.60 per share); AFFO was $20.6M ($0.79 per share).

• Q3 2024 NOI was $38.1M on 36 properties, down from $42.1M on 39-40 properties in Q3 2023.

• Same-store revenues increased 1.7% year-over-year, but same-store NOI declined 2.4% due to an 8.2% rise in operating expenses.

• Completed 45 unit upgrades in Q3, achieving a $253 average monthly rent premium and 19.5% ROI.

Outlook and guidance

• 2024 core FFO per diluted share guidance updated to $2.74–$2.82 (midpoint $2.78); earnings per diluted share guidance set at a loss of $0.01 to a gain of $0.07.

• Revenue growth guidance reaffirmed at 1.3%–2.2% (midpoint 1.7%), with same-store NOI guidance at -0.6% to 1.6% (midpoint 0.5%).

• No acquisitions planned for 2024; dispositions guidance at $166.8M–$167M.

• Board approved a new $100M share repurchase authorization expiring October 2026.

• Management expects to meet short-term liquidity needs through operations, cash, and credit facility; long-term needs may require additional debt or equity.