NexPoint Residential Trust (NYSE:NXRT) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

NexPoint Residential Trust (NYSE:NXRT) released its quarterly earnings results on Tuesday. The financial services provider reported ($0.45) EPS for the quarter, missing the consensus estimate of ($0.41) by ($0.04), FiscalAI reports. NexPoint Residential Trust had a negative return on equity of 14.29% and a negative net margin of 14.59%. The company had revenue of $64.47 million for the quarter, compared to analysts’ expectations of $64.87 million.

Here are the key takeaways from NexPoint Residential Trust’s conference call:

• Third-quarter results missed expectations: Core FFO was $0.52 per share, $0.07 below consensus, while same-store NOI declined 8.2% as occupancy fell to 92.9% and expenses rose 11.2%.
• Management cut full-year Core FFO guidance to a midpoint of $2.22 per share from $2.45 and lowered same-store NOI guidance to a midpoint decline of 4.3%. Fourth-quarter Core FFO is expected to be about $0.35 per share, below the $0.53 dividend, raising the possibility of a dividend reset in early 2027.
• Higher interest rates are increasing financial pressure: the adjusted weighted-average interest rate rose to 4.75%, net NAV leverage increased to 62% from 57%, and management acknowledged that leverage is too high for the current rate environment.
• Operating trends remain mixed, with October lease occupancy at 94.6%, improved retention and better tour-to-application conversion, but elevated concessions and weak new-lease pricing. Management expects occupancy to improve as supply growth slows, with deliveries in its submarkets down 42% from the 2024 peak and 2028 deliveries projected to be the lowest of the cycle.
• NXRT acquired the 228-unit Midtown Crossing community in Raleigh for $32 million and plans to pair it with dispositions, use proceeds to reduce debt, and potentially repurchase up to $150 million of stock. Management believes the shares trade substantially below estimated NAV of $38.33 per share, versus a market price near $18.

NexPoint Residential Trust Stock Performance

NexPoint Residential Trust stock opened at $17.54 on Thursday. NexPoint Residential Trust has a fifty-two week low of $16.23 and a fifty-two week high of $32.36. The company has a market capitalization of $448.22 million, a price-to-earnings ratio of -11.93, a PEG ratio of 0.29 and a beta of 1.15. The stock has a fifty day moving average of $20.35 and a two-hundred day moving average of $25.73. The company has a debt-to-equity ratio of 7.10, a quick ratio of 1.92 and a current ratio of 1.69.

NexPoint Residential Trust Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 12.1%. The ex-dividend date is Tuesday, December 15th. NexPoint Residential Trust’s dividend payout ratio is -144.22%.

Analyst Upgrades and Downgrades

NXRT has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft set a $23.00 price objective on shares of NexPoint Residential Trust in a research note on Wednesday, September 9th. Citigroup restated a “market perform” rating on shares of NexPoint Residential Trust in a research report on Thursday, August 20th. Truist Financial reduced their price objective on shares of NexPoint Residential Trust from $26.00 to $18.00 and set a “hold” rating for the company in a research report on Tuesday, September 29th. Weiss Ratings raised NexPoint Residential Trust from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, October 27th. Finally, Citizens Jmp reissued a “market perform” rating on shares of NexPoint Residential Trust in a research note on Thursday, August 20th. Three equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $20.50.

Insider Transactions at NexPoint Residential Trust

In other news, insider Matt Mcgraner purchased 5,500 shares of the firm’s stock in a transaction on Monday, October 5th. The shares were bought at an average cost of $18.42 per share, with a total value of $101,310.00. Following the purchase, the insider directly owned 361,605 shares of the company’s stock, valued at approximately $6,660,764.10. This trade represents a 1.54% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 16.63% of the company’s stock.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust, Inc (NYSE: NXRT) is a publicly traded real estate investment trust focused on acquiring, owning, operating and selectively renovating multifamily apartment communities. The company generally targets value-add properties, seeking to improve their operating performance and resident appeal through renovations, property management initiatives and other capital improvements.

NexPoint Residential Trust’s portfolio is concentrated primarily in the Southeastern and Southwestern United States.