NexPoint Residential Trust (NXRT) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw a net loss of $26.9M ($1.06/share) on $63.8M revenue, compared to net income of $18.4M ($0.70/share) on $68.9M revenue in Q4 2023.

• Full year 2024 net income was $1.1M ($0.04/share), down from $44.3M ($1.59/share) in 2023, primarily due to lower gains on sales, reduced rental income, and higher debt extinguishment costs.

• Core FFO for Q4 2024 was $17.7M ($0.68/share), down from $0.75/share in Q4 2023; full year Core FFO was $73.1M ($2.79/share), down from $2.92/share in 2023.

• Dividend per share increased 147.6% since inception; Q4 2024 dividend was $0.51/share, up 10.3% sequentially, with a 68% payout ratio.

• Completed dispositions of three properties in 2024 for $166.8M, supporting capital recycling strategy.

Financial highlights

• 2024 total revenues were $259.7M, down from $277.5M in 2023; Q4 NOI was $38.9M on 35 properties, down 7.6% from $42.2M on 38 properties in Q4 2023.

• Full year NOI was $157M (35 properties), down 6.2% from $167.4M (38 properties) in 2023; Same Store NOI increased 0.9% to $154.1M.

• Same-store rental income rose 0.9% year-over-year in Q4; full year same-store rental income up 2.3%; average effective rent per unit decreased 1.6%, occupancy stable at 94.7%.

• NAV per share estimated at $44.56–$58.52, midpoint $51.54, based on cap rates of 5.25%–5.75%.

• 2024 capital expenditures totaled $29.7M, down 46.9% from 2023.

Outlook and guidance

• 2025 Core FFO per share guidance: $2.56–$2.83, midpoint $2.70.

• 2025 same-store revenue guidance: -0.5% to +1.3%, midpoint +0.5%; same-store NOI guidance: -3.5% to +0.5%, midpoint -1.5%.

• 2025 earnings per diluted share guidance: ($1.33) to ($1.05).

• Value-add program targets 425 full upgrades ($18K/unit, $269 premium), 36 partial upgrades ($5.2K/unit, $86 premium), and 661 washer/dryer installs ($1K/unit, $53 premium, 64% ROI); 388 upgrades in 2024 delivered $153 average premium and 24.7% ROI.

• Anticipates $100M–$200M in both acquisitions and dispositions for 2025.