NEXPOINT RESIDENTIAL TRUST, INC. REPORTS FIRST QUARTER 2025 RESULTS
NexPoint Residential Trust (NYSE:NXRT) reported mixed Q1 2025 financial results, with a net loss of $6.9M compared to net income of $26.3M in Q1 2024. The company's total revenue decreased to $63.2M from $67.6M year-over-year.
Key performance metrics showed some challenges: Same Store properties experienced decreases in total revenue (-1.0%), NOI (-3.8%), and average effective rent (-1.3%). The portfolio's weighted average effective monthly rent was $1,495 with 94.4% occupancy across 12,984 units.
Despite headwinds, NXRT maintained its upgrade strategy, completing 210 full and partial upgrades in Q1, achieving a 16.1% ROI with average monthly rent premiums of $62. The company paid a quarterly dividend of $0.51 per share and announced a new five-year $100M SOFR swap with JP Morgan Chase Bank at a 3.489% fixed rate.
NexPoint Residential Trust (NYSE:NXRT) ha riportato risultati finanziari contrastanti nel primo trimestre 2025, con una perdita netta di 6,9 milioni di dollari rispetto a un utile netto di 26,3 milioni nel primo trimestre 2024. I ricavi totali dell'azienda sono diminuiti a 63,2 milioni di dollari rispetto ai 67,6 milioni dell'anno precedente.
Le metriche chiave di performance hanno evidenziato alcune difficoltà: le proprietà Same Store hanno registrato cali nei ricavi totali (-1,0%), nel NOI (-3,8%) e nell'affitto medio effettivo (-1,3%). L'affitto mensile medio effettivo ponderato del portafoglio è stato di 1.495 dollari con un tasso di occupazione del 94,4% su 12.984 unità.
Nonostante le difficoltà, NXRT ha mantenuto la sua strategia di miglioramento, completando 210 aggiornamenti totali e parziali nel primo trimestre, ottenendo un ROI del 16,1% con premi medi sull'affitto mensile di 62 dollari. La società ha distribuito un dividendo trimestrale di 0,51 dollari per azione e ha annunciato un nuovo swap SOFR quinquennale da 100 milioni di dollari con JP Morgan Chase Bank a un tasso fisso del 3,489%.
NexPoint Residential Trust (NYSE:NXRT) reportó resultados financieros mixtos en el primer trimestre de 2025, con una pérdida neta de 6,9 millones de dólares frente a una ganancia neta de 26,3 millones en el primer trimestre de 2024. Los ingresos totales de la compañía disminuyeron a 63,2 millones de dólares desde 67,6 millones año tras año.
Las métricas clave mostraron algunos desafíos: las propiedades Same Store experimentaron disminuciones en ingresos totales (-1,0%), NOI (-3,8%) y renta efectiva promedio (-1,3%). La renta mensual efectiva promedio ponderada de la cartera fue de 1,495 dólares con una ocupación del 94,4% en 12,984 unidades.
A pesar de los vientos en contra, NXRT mantuvo su estrategia de mejoras, completando 210 actualizaciones totales y parciales en el primer trimestre, logrando un ROI del 16,1% con primas promedio de renta mensual de 62 dólares. La compañía pagó un dividendo trimestral de 0,51 dólares por acción y anunció un nuevo swap SOFR a cinco años por 100 millones de dólares con JP Morgan Chase Bank a una tasa fija del 3,489%.
NexPoint Residential Trust (NYSE:NXRT)� 2025� 1분기� 혼재� 재무 실적� 보고했으�, 2024� 1분기 순이� 2,630� 달러� 비해 690� 달러� 순손실을 기록했습니다. 회사� 총수익은 전년 동기 대� 6,760� 달러에서 6,320� 달러� 감소했습니다.
주요 성과 지표는 일부 어려움� 나타냈습니다: Same Store 부동산은 총수�(-1.0%), NOI(-3.8%), 평균 유효 임대�(-1.3%)가 감소했습니다. 포트폴리오의 가� 평균 � 임대료는 1,495달러이며, 12,984� 유닛에서 94.4%� 점유율을 기록했습니다.
역풍에도 불구하고 NXRT� 업그레이� 전략� 유지하며 1분기� � 210건의 전체 � 부� 업그레이드를 완료했고, 평균 � 임대� 프리미엄 62달러� 16.1%� ROI� 달성했습니다. 회사� 주당 0.51달러� 분기 배당금을 지급했으며, JP Morgan Chase Bank와 � 3.489% 고정 이율� 5� 1� 달러 SOFR 스왑 계약� 발표했습니다.
NexPoint Residential Trust (NYSE:NXRT) a publié des résultats financiers mitigés pour le premier trimestre 2025, avec une perte nette de 6,9 millions de dollars contre un bénéfice net de 26,3 millions au premier trimestre 2024. Les revenus totaux de la société ont diminué à 63,2 millions de dollars contre 67,6 millions d'une année sur l'autre.
Les indicateurs clés de performance ont montré quelques difficultés : les propriétés Same Store ont connu des baisses des revenus totaux (-1,0 %), du NOI (-3,8 %) et du loyer effectif moyen (-1,3 %). Le loyer mensuel effectif moyen pondéré du portefeuille était de 1 495 dollars avec un taux d'occupation de 94,4 % sur 12 984 unités.
Malgré des vents contraires, NXRT a maintenu sa stratégie d'amélioration, réalisant 210 rénovations totales et partielles au premier trimestre, obtenant un retour sur investissement de 16,1 % avec des primes de loyer mensuelles moyennes de 62 dollars. La société a versé un dividende trimestriel de 0,51 dollar par action et a annoncé un nouveau swap SOFR de cinq ans de 100 millions de dollars avec JP Morgan Chase Bank à un taux fixe de 3,489 %.
NexPoint Residential Trust (NYSE:NXRT) meldete gemischte Finanzergebnisse für das erste Quartal 2025 mit einem Nettoverlust von 6,9 Mio. USD im Vergleich zu einem Nettogewinn von 26,3 Mio. USD im ersten Quartal 2024. Die Gesamterlöse des Unternehmens sanken von 67,6 Mio. USD auf 63,2 Mio. USD im Jahresvergleich.
Wichtige Leistungskennzahlen zeigten einige Herausforderungen: Same Store Immobilien verzeichneten Rückgänge bei den Gesamterlösen (-1,0 %), dem NOI (-3,8 %) und der durchschnittlichen effektiven Miete (-1,3 %). Die gewichtete durchschnittliche effektive Monatsmiete des Portfolios betrug 1.495 USD bei einer Auslastung von 94,4 % über 12.984 Einheiten.
Trotz Gegenwind hielt NXRT an seiner Aufwertungsstrategie fest und schloss im ersten Quartal 210 vollständige und teilweise Aufwertungen ab, erzielte eine Kapitalrendite von 16,1 % mit durchschnittlichen monatlichen Mietprämien von 62 USD. Das Unternehmen zahlte eine quartalsweise Dividende von 0,51 USD pro Aktie und kündigte einen neuen fünfjährigen SOFR-Swap über 100 Mio. USD mit der JP Morgan Chase Bank zu einem festen Zinssatz von 3,489 % an.
- Increased Core FFO per share to $0.75 in Q1 2025 vs $0.74 in Q1 2024
- Strong ROI of 16.1% on upgraded units with $62 monthly rent premium
- Completed 210 full and partial upgrades in Q1, with 201 units leased
- Historical upgrades showing solid returns: 20.7% ROI on full/partial upgrades, 64.5% ROI on appliances
- Secured new $100M SOFR swap with favorable 3.489% fixed rate
- Active share buyback program with 223,109 shares purchased at $34.29/share
- Net loss of $6.9M in Q1 2025 vs net income of $26.3M in Q1 2024
- Total revenue declined to $63.2M (-6.5% YoY from $67.6M)
- Same Store NOI decreased 3.8% to $37.7M
- Same Store total revenue down 1.0%
- Average effective rent decreased 1.3%
- Occupancy declined 30 basis points
- 36 units currently unavailable due to fire damage
Insights
NexPoint delivers mixed Q1 results with operational challenges but stable Core FFO/AFFO per share; maintains dividend despite revenue/NOI declines.
NexPoint Residential Trust's Q1 2025 results present a nuanced picture requiring careful interpretation. The headline net loss of $6.9 million ($0.27 per share) compared to prior year net income of $26.3 million primarily reflects the absence of a one-time $31.7 million gain on property sales in Q1 2024, rather than fundamental operational deterioration.
The more relevant REIT metrics show relative stability: Core FFO per share increased slightly to $0.75 from $0.74 year-over-year, while AFFO per share improved to $0.84 from $0.83. However, operational challenges are evident in same-store metrics with revenue declining 1.0%, NOI dropping 3.8%, average effective rent down 1.3%, and occupancy decreasing 30 basis points to 94.4%.
NexPoint continues executing its value-add strategy, completing 210 unit upgrades with a 16.1% ROI and $62 average monthly rent premium. The company is also actively managing its capital structure, purchasing 223,109 shares post-quarter for approximately $7.6 million and entering a new $100 million fixed-rate swap at 3.489%.
Notably, the company maintained its $0.51 quarterly dividend despite the operational headwinds, suggesting confidence in cash flow sustainability. The title reference to "boosting Core FFO guidance" indicates management expects improved performance ahead, though specific updated guidance figures weren't detailed in the release.
NXRT Accelerates Partial Upgrades and Boosts Core FFO Guidance
Highlights
- NXRT1 reported net loss, FFO2, Core FFO2 and AFFO2 of
,$(6.9)M ,$17.4M and$19.1M , respectively, attributable to common stockholders for the quarter ended March 31, 2025, compared to net income, FFO, Core FFO, and AFFO of$21.6M ,$26.3M ,$18.9M and$19.4M , respectively, attributable to common stockholders for the quarter ended March 31, 2024.$22.0M - For the three months ended March 31, 2025, Q1 Same Store properties3 total revenue, NOI2 , average effective rent, and occupancy decreased
1.0% ,3.8% ,1.3% and 30 bps, respectively, over the prior year period. - The weighted average effective monthly rent per unit across all 35 properties held as of March 31, 2025 (the "Portfolio"), consisting of 12,984 units4, was
, while physical occupancy was$1,495 94.4% . - NXRT paid a first quarter dividend of
per share of common stock on March 31, 2025.$0.51 - During the first quarter, for the properties in the Portfolio,NXRT completed 210 full and partial upgrades, leased 201 upgraded units, achieving an average monthly rent premium of
and a$62 16.1% ROI5. - Since inception,NXRT has completed installation of 8,558 full and partial upgrades, 4,795 kitchen and laundry appliances and 11,389 technology packages, resulting in
,$172 and$50 average monthly rental increase per unit and$43 20.7% ,64.5% and37.2% ROI, respectively.
(1) | In this release, "we," "us," "our," the "Company," and "NXRT" each refer to NexPoint Residential Trust, Inc., a |
(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 income (loss), see the "Definitions and Reconciliations of Non-GAAP Measures" and "FFO, Core FFO and AFFO" 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 12,948 units of apartment space in our Same Store pool for the three months ended March 31, 2025 (our "Q1 Same Store" properties). The same store unit count excludes 36 units that are currently down due to fires ( |
(4) | Total number of units owned as of March 31, 2025 is 12,984, however 36 units are currently down due to fires ( |
(5) | We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost. |
First Quarter 2025 Financial Results
- Total revenues were
for the first quarter of 2025, compared to$63.2 million for the first quarter of 2024.$67.6 million - Net loss attributable to common stockholders for the first quarter of 2025 totaled
, or loss of$(6.9) million per diluted share, which included$(0.27) of depreciation and amortization expense. This compared to net income attributable to common stockholders of$24.4 million , or income of$26.3 million per diluted share, which included a gain on sales of real estate of$1.00 and$31.7 million of depreciation and amortization expense for the first quarter of 2024.$24.3 million - The change in our net loss of
for the three months ended March 31, 2025 as compared to our net income of$(6.9) million for the three months ended March 31, 2024 primarily relates to decreases in gain on sales of real estate of$26.4 million .$31.7 million - For the first quarter of 2025,NOI was
on 35 properties, compared to$37.8 million for the first quarter of 2024 on 37 properties.$41.1 million - For the first quarter of 2025, Q1 Same StoreNOI decreased -
3.8% to , compared to$37.7 million for the full year 2024.$39.2 million - For the first quarter of 2025,FFO totaled
, or$17.4 million per diluted share, compared to$0.68 , or$18.9 million per diluted share, for first quarter of 2024. For the first quarter of 2025, Core FFO totaled$0.72 , or$19.1 million per diluted share, compared to$0.75 , or$19.4 million per diluted share, for the full year 2024. For the first quarter of 2025, AFFO totaled$0.74 , or$21.6 million per diluted share, compared to$0.84 , or$22.0 million per diluted share, for the first quarter of 2024.$0.83
Subsequent Events
- On April 28, 2025, the Company's Board approved a quarterly dividend of
per share, payable on June 30, 2025 to stockholders of record on June 16, 2024.$0.51 - From April 1, 2025 through April 28, 2025, the Company has purchased 223,109 shares of its common stock, totaling approximately
at an average price of$7.6 million per share.$34.29 - On April 3, 2025, the Company entered into a new five-year
millionSOFR swap with JP Morgan Chase Bank with a fixed rate of$100 3.489% .
First Quarter Earnings Conference Call
NXRT will host a call on Tuesday, April 29, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss its first 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,(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, May 13, 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
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 second 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 months ended March 31, 2025 and 2024 (in thousands, except per share amounts):
For the Three Months Ended March 31, | ||||||||||||
2025 | 2024 | % Change | ||||||||||
Net income (loss) | $ | (6,924) | $ | 26,402 | N/M | |||||||
Depreciation and amortization | 24,350 | 24,323 | 0.1 | % | ||||||||
Gain on sales of real estate | (1) | � | (31,709) | N/M | ||||||||
Adjustment for noncontrolling interests | (69) | (75) | -8.0 | % | ||||||||
FFO attributable to common stockholders | 17,357 | 18,941 | -8.4 | % | ||||||||
FFO per share - basic | $ | 0.68 | $ | 0.74 | -7.4 | % | ||||||
FFO per share - diluted | $ | 0.68 | $ | 0.72 | -5.6 | % | ||||||
Loss on extinguishment of debt and modification costs | � | 546 | N/M | |||||||||
Casualty-related expenses/(recoveries) | (656) | 33 | N/M | |||||||||
Casualty losses (gains) | 163 | (199) | N/M | |||||||||
Amortization of deferred financing costs | 1,644 | 717 | N/M | |||||||||
Mark-to-market adjustments of interest rate caps | 591 | (626) | N/M | |||||||||
Adjustment for noncontrolling interests | (7) | 2 | N/M | |||||||||
Core FFO attributable to common stockholders | 19,092 | 19,414 | -1.7 | % | ||||||||
Core FFO per share - basic | $ | 0.75 | $ | 0.75 | -0.6 | % | ||||||
Core FFO per share - diluted | $ | 0.75 | $ | 0.74 | 1.3 | % | ||||||
Equity-based compensation expense | 2,475 | 2,547 | -2.8 | % | ||||||||
Adjustment for noncontrolling interests | (10) | (9) | 11.1 | % | ||||||||
AFFO attributable to common stockholders | 21,557 | 21,952 | -1.8 | % | ||||||||
AFFO per share - basic | $ | 0.85 | $ | 0.85 | -0.7 | % | ||||||
AFFO per share - diluted | $ | 0.84 | $ | 0.83 | 1.2 | % | ||||||
Weighted average common shares outstanding - basic | 25,448 | 25,721 | -1.1 | % | ||||||||
Weighted average common shares outstanding - diluted | (2) | 25,576 | 26,354 | -3.0 | % | |||||||
Dividends declared per common share | $ | 0.51 | $ | 0.46 | 10.3 | % | ||||||
Net income (loss) Coverage - diluted | (3) | -0.53x | 2.16x | N/M | ||||||||
FFO Coverage - diluted | (3) | 1.33x | 1.55x | -14.4 | % | |||||||
Core FFO Coverage - diluted | (3) | 1.46x | 1.59x | -8.1 | % | |||||||
AFFO Coverage - diluted | (3) | 1.65x | 1.80x | -8.3 | % |
(1) | |
(2) | The Company uses the diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO. |
(3) | Indicates coverage ratio of net income (loss)/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during |
Definitions and Reconciliations of Non-GAAP Measures
Definitions
This presentation contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income (loss), balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are net operating income ("NOI"), funds from operations attributable to common stockholders ("FFO"), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO ("AFFO"), AFFO per diluted share and net debt.
NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) depreciation and amortization expenses, (4) gains or losses from the sale of operating real estate assets that are included in net income (loss) computed in accordance with GAAP, (5) corporate income and corporate general and administrative expenses that are not reflective of operations of the properties, (6) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (7) casualty-related expenses/(recoveries) and casualty gains (losses), (8) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional,centralized leasing service and franchise tax fees and (9) equity in earnings of affiliate. We define "Same Store NOI" as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.
FFO is defined by the National Association of AG˹ٷ Estate Investment Trusts ("NAREIT"), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. We compute FFO in accordance with NAREIT's definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.
Core FFOmakes certain adjustments to FFO, which are not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as loss on extinguishment of debt and modification costs, casualty-related expenses/(recoveries) and losses (gains), the amortization of deferred financing costs, mark-to-market gains or losses related to interest rate cap agreements not designated as hedges for accounting purposes, and the noncontrolling interests (as described above) related to these items. Starting in the third quarter of 2024, the Company has adjusted Core FFO to remove (1) the amortization of all deferred financing costs instead of those solely related to short-term debt financing and (2) mark-to-market gains or losses related to interest rate cap agreements not designated as hedges for accounting purposes. Prior periods have been recast to conform to the current presentation.
AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our portfolio. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the noncontrolling interests related to this item.
Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding.
We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts ("REITs") among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.
Reconciliations
NOI and Same Store NOI
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Q1 Same Store NOI for the three months ended March 31, 2025 and 2024 to net income (loss), the most directly comparable GAAP financial measure (in thousands):
For the Three Months Ended March 31, | |||||||||
2025 | 2024 | ||||||||
Net income (loss) | $ | (6,924) | $ | 26,402 | |||||
Adjustments to reconcile net income (loss) to NOI: | |||||||||
Advisory and administrative fees | 1,696 | 1,743 | |||||||
Corporate general and administrative expenses | 4,457 | 4,910 | |||||||
Corporate income | (442) | (296) | |||||||
Casualty-related expenses/(recoveries) | (1) | (656) | 33 | ||||||
Casualty loss (gain) | 163 | (199) | |||||||
Property general and administrative expenses | (2) | 790 | 988 | ||||||
Depreciation and amortization | 24,350 | 24,323 | |||||||
Interest expense | 14,381 | 14,391 | |||||||
Equity in earnings of affiliate | (55) | (38) | |||||||
Loss on extinguishment of debt and modification costs | � | 546 | |||||||
Gain on sales of real estate | � | (31,709) | |||||||
NOI | $ | 37,760 | $ | 41,094 | |||||
Less Non-Same Store | |||||||||
Revenues | (4) | (3,885) | |||||||
Operating expenses | (22) | 2,015 | |||||||
Operating income | � | (3) | |||||||
Same Store NOI | $ | 37,734 | $ | 39,221 |
(1) | Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries). |
(2) | Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of |
Reconciliation of Debt to Net Debt
(dollar amounts in thousands) | Q1 2025 | Q1 2024 | ||||||
Total mortgage debt | $ | 1,503,242 | $ | 1,498,277 | ||||
Total Debt | 1,503,242 | 1,498,277 | ||||||
Adjustments to arrive at net debt: | ||||||||
Cash and cash equivalents | (23,719) | (37,234) | ||||||
Restricted cash held for value-add upgrades and green improvements | (3,170) | (2,907) | ||||||
Net Debt | $ | 1,476,353 | $ | 1,458,136 | ||||
Enterprise Value (1) | $ | 2,487,353 | $ | 2,288,136 | ||||
Leverage Ratio (Total Debt to Market Capitalization plus Total Debt) | 60 | % | 64 | % | ||||
Leverage Ratio (Net Debt to Enterprise Value) | 59 | % | 64 | % |
(1) | Enterprise Value is calculated as Market Capitalization as of the end of the period plus Net Debt. |
Guidance Reconciliations of NOI, Same Store NOI, FFO, Core FFO and AFFO
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our 2025 NOI guidance to our net loss (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2025 and for the three months ended June 30, 2025 (in thousands):
For the Year Ended | For the Three Months Ended | |||||||
Mid-Point (1) | Mid-Point (1) | |||||||
Net loss | $ | (31,547) | $ | (8,857) | ||||
Adjustments to reconcile net loss to NOI: | ||||||||
Advisory and administrative fees | 7,045 | 1,756 | ||||||
Corporate general and administrative expenses | 19,454 | 4,881 | ||||||
Corporate income | (1,709) | (443) | ||||||
Property general and administrative expenses | (2) | 3,316 | 544 | |||||
Depreciation and amortization | 95,937 | 24,662 | ||||||
Interest expense | 59,512 | 15,275 | ||||||
Loss on extinguishment of debt and modification costs | 18 | 18 | ||||||
Equity in earnings of affiliate | (240) | (60) | ||||||
NOI | (3) | $ | 151,786 | $ | 37,776 | |||
Less Non-Same Store | ||||||||
Revenues | (3) | � | ||||||
Operating expenses | (3) | (41) | ||||||
Same Store NOI | (3) | $ | 151,745 |
(1) | Mid-Point estimates shown for full year and second quarter 2025 guidance. Assumptions made for full year and second quarter 2025 NOI guidance |
(2) | Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuingoperations of the |
(3) | Year-over-year growth for the Full Year 2025 pro forma Same Store pool (35 properties). |
The following table reconciles our FFO, Core FFO and AFFO guidance to our net loss (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2025 (in thousands, except per share data):
For the Year Ended December 31, 2025 | ||||
Mid-Point | ||||
Net loss | $ | (31,547) | ||
Depreciation and amortization | 95,937 | |||
Adjustment for noncontrolling interests | (254) | |||
FFO attributable to common stockholders | 64,136 | |||
FFO per share - diluted (1) | $ | 2.48 | ||
Loss on extinguishment of debt and modification costs | 18 | |||
Amortization of deferred financing costs | 6,213 | |||
Mark-to-market adjustments of interest rate caps | 809 | |||
Adjustment for noncontrolling interests | (28) | |||
Core FFO attributable to common stockholders | 71,148 | |||
Core FFO per share - diluted (1) | $ | 2.75 | ||
Equity-based compensation expense | 10,572 | |||
Adjustment for noncontrolling interests | (42) | |||
AFFO attributable to common stockholders | 81,678 | |||
AFFO per share - diluted (1) | $ | 3.16 | ||
Weighted average common shares outstanding - diluted | 25,834 |
(1) | For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 25.8 million for the full year 2025. |
The following table reconciles our NOI to our net income (loss) for the years ended December 31, 2024 and 2023 and the three months ended December 31, 2024 (in thousands):
For the Year Ended December 31, | For the Three Months | ||||||||||||
2024 | 2023 | 2024 | |||||||||||
Net income (loss) | $ | 1,114 | $ | 44,433 | $ | (27,038) | |||||||
Adjustments to reconcile net income (loss) to NOI: | |||||||||||||
Advisory and administrative fees | 6,899 | 7,645 | 1,720 | ||||||||||
Corporate general and administrative expenses | 19,399 | 17,146 | 4,875 | ||||||||||
Corporate income | (2,215) | (483) | (959) | ||||||||||
Casualty-related expenses/(recoveries) | (1) | 1,389 | (2,214) | (249) | |||||||||
Casualty gains | 626 | 856 | 88 | ||||||||||
Gain on forfeited deposits | � | (250) | � | ||||||||||
Property general and administrative expenses | (2) | 3,998 | 3,701 | 1,277 | |||||||||
Depreciation and amortization | 97,762 | 95,186 | 24,389 | ||||||||||
Interest expense | 58,477 | 67,106 | 15,521 | ||||||||||
Equity in earnings of affiliate | (172) | (205) | (28) | ||||||||||
Loss on extinguishment of debt and modification costs | 24,004 | 2,409 | 23,203 | ||||||||||
Gain on sales of real estate | (54,246) | (67,926) | (3,851) | ||||||||||
NOI | $ | 157,035 | $ | 167,404 | $ | 38,948 |
The following table reconciles our NOI to our FFO, Core FFO and AFFO to net income, the most directly comparable GAAP financial measure, for the years ended December 31, 2024 and 2023 (in thousands):
For the Year Ended December 31, | ||||||||||||
2024 | 2023 | % Change 2024 | ||||||||||
Net income | $ | 1,114 | $ | 44,433 | N/M | |||||||
Depreciation and amortization | 97,762 | 95,186 | 2.7 | % | ||||||||
Gain on sales of real estate | (54,246) | (67,926) | -20.1 | % | ||||||||
Adjustment for noncontrolling interests | (176) | (273) | -35.5 | % | ||||||||
FFO attributable to common stockholders | 44,454 | 71,420 | -37.8 | % | ||||||||
FFO per share - basic | $ | 1.74 | $ | 2.78 | -37.3 | % | ||||||
FFO per share - diluted | $ | 1.69 | $ | 2.72 | -37.8 | % | ||||||
Loss on extinguishment of debt and modification costs | 24,004 | 2,409 | N/M | |||||||||
Casualty-related expenses/(recoveries) | 1,389 | (2,214) | N/M | |||||||||
Casualty losses (gains) | 626 | 856 | -26.9 | % | ||||||||
Gain on forfeited deposits | � | (250) | N/M | |||||||||
Amortization of deferred financing costs | 3,364 | 2,945 | 14.2 | % | ||||||||
Mark-to-market adjustments of interest rate caps | (593) | 1,484 | N/M | |||||||||
Adjustment for noncontrolling interests | (114) | (20) | N/M | |||||||||
Core FFO attributable to common stockholders | 73,130 | 76,630 | -4.6 | % | ||||||||
Core FFO per share - basic | $ | 2.87 | $ | 2.99 | -4.1 | % | ||||||
Core FFO per share - diluted | $ | 2.79 | $ | 2.92 | -4.6 | % | ||||||
Equity-based compensation expense | 10,543 | 9,287 | 13.5 | % | ||||||||
Adjustment for noncontrolling interests | (42) | (35) | 20.0 | % | ||||||||
AFFO attributable to common stockholders | 83,631 | 85,882 | -2.6 | % | ||||||||
AFFO per share - basic | $ | 3.28 | $ | 3.35 | -2.1 | % | ||||||
AFFO per share - diluted | $ | 3.19 | $ | 3.27 | -2.6 | % | ||||||
Weighted average common shares outstanding - basic | 25,516 | 25,654 | -0.5 | % | ||||||||
Weighted average common shares outstanding - diluted | (1) | 26,246 | 26,245 | 0.0 | % | |||||||
Dividends declared per common share | $ | 1.90 | $ | 1.72 | 10.2 | % | ||||||
Net income Coverage - diluted | (2) | 0.02x | 0.98x | N/M | ||||||||
FFO Coverage - diluted | (2) | 0.89x | 1.58x | -43.5 | % | |||||||
Core FFO Coverage - diluted | (2) | 1.47x | 1.70x | -13.4 | % | |||||||
AFFO Coverage - diluted | (2) | 1.68x | 1.90x | -11.6 | % |
(1) | The Company uses the diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO. |
(2) | Indicates coverage ratio of net income/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. |
Contact:
Investor Relations
Kristen (Thomas) Griffith
[email protected]
(214) 276-6300
Media inquiries: [email protected]
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SOURCE NexPoint Residential Trust, Inc.