NXRT Reports Net Income of $26.4 million; $49.4 million of Capital Recycling Activity and Full Repayment of the Drawn Balance on the Corporate Credit Facility DALLAS, April 30, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the first quarter ended March 31, 2024. Highlights NXRT1 reported Net Income, FFO2, Core FFO2 and AFFO2 of $26.3M, $18.9M, $19.6M and $22.6M, respectively, attributable to common stockholders for the quarter ended March 31, 2024, compared to Net Loss, FFO, Core FFO and AFFO of $(3.9)M, $19.3M, $18.6M and $21.0M, respectively, attributable to common stockholders for the quarter ended March 31, 2023. For the three months ended March 31, 2024, Q1 Same Store properties3 total revenue, NOI2 and occupancy increased 3.6%, 4.0% and 30 bps respectively, and average effective rent decreased 0.4% from the prior year period. The weighted average effective monthly rent per unit across all 37 properties held as of March 31, 2024 (the "Portfolio"), consisting of 13,376 units4, was $1,511, while physical occupancy was 94.6%. NXRT paid a first quarter dividend of $0.46242 per share of common stock on March 28, 2024. During the first quarter, NXRT completed the sale of Old Farm for a sales price of $103.0 million. On March 5, 2024, NXRT fully repaid the remaining drawn balance of $24.0 million on its Corporate Credit Facility. During the first quarter, for the properties in our Portfolio, we completed 59 full and partial upgrades and leased 59 upgraded units, achieving an average monthly rent premium of $240 and a 21.8% ROI5. Since inception, for the properties currently in our Portfolio, we have completed 8,593 full and partial, 4,829 kitchen and laundry appliances and 11,614 technology packages, resulting in a $170, $39 and $43 average monthly rental increase per unit and a 20.9%, 51.4% and 37.4% ROI, respectively. (1) In this release, "we," "us," "our," the "Company," "NexPoint Residential Trust," and "NXRT" each refer to NexPoint Residential Trust, Inc., a Maryland corporation. (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 12,961 units of apartment space in our Same Store pool for the three months ended March 31, 2024 (our "Q1 Same Store" properties). The same store unit count excludes 23 units that are currently down due to casualty events (Rockledge: 20 units, Bella Solara: 1 unit, Bloom: 1 unit and Torreyana: 1 unit). (4) Total number of units owned in our Portfolio as of March 31, 2024 is 13,399, however 23 units that are currently down due to casualty events (Rockledge: 20 units, Bella Solara: 1 unit, Bloom: 1 unit and Torreyana: 1 unit). (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 2024 Financial Results Total revenues were $67.6 million for the first quarter of 2024, compared to $69.2 million for the first quarter of 2023. Net income for the first quarter of 2024 totaled $26.3 million, or income of $1.00 per diluted share, which included $24.3 million of depreciation and amortization expense. This compared to net loss of $(3.9) million, or loss of $(0.15) per diluted share, for the first quarter of 2023, which included $23.3 million of depreciation and amortization expense. The change in our net income of $26.4 million for the three months ended March 31, 2024 as compared to our net loss of $(3.9) million for the three months ended March 31, 2023 primarily relates to an increase in gain on sale of real estate and a decrease in interest expense, partially offset by an increase in depreciation expense. For the first quarter of 2024, NOI was $41.1 million on 37 properties, compared to $41.1 million for the first quarter of 2023 on 40 properties. For the first quarter of 2024, Q1 Same Store NOI increased 4.0% to $39.2 million, compared to $37.7 million for the first quarter of 2023. For the first quarter of 2024, FFO totaled $18.9 million, or $0.72 per diluted share, compared to $19.3 million, or $0.74 per diluted share, for the first quarter of 2023. For the first quarter of 2024, Core FFO totaled $19.6 million, or $0.75 per diluted share, compared to $18.6 million, or $0.71 per diluted share, for the first quarter of 2023. For the first quarter of 2024, AFFO totaled $22.6 million, or $0.86 per diluted share, compared to $21.0 million, or $0.81 per diluted share, for the first quarter of 2023. First Quarter Earnings Conference Call NexPoint Residential Trust, Inc., ("NXRT" or the "Company"), (NYSE:NXRT) will host a call on Tuesday, April 30, 2024, at 11:00 a.m. ET (10:00 a.m. CT), to discuss its first quarter 2024 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, nxrt.nexpoint.com (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 14, 2024, 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 Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience. Our filings with the Securities and Exchange Commission (the "SEC") are available on our website, nxrt.nexpoint.com, under the "Financials" tab. 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," "should," "plan" 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, dispositions in process, including the timing of sale and investment returns, forecasted job creation, forecasted NXRT MSA quarterly deliveries and absorptions, forecasted submarket deliveries, NXRT's guidance for financial results for the full year 2024, including earnings per diluted share, Core FFO per diluted share, same store rental income, same store total revenue and same store NOI, and the related components and assumptions, including expected acquisitions and dispositions, expected same store pool, shares outstanding and same store growth projections, NXRT's net asset value and the related components and assumptions, estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, net income and NOI guidance for the second quarter and full year 2024 and the related assumptions, planned value-add programs, including rehab costs, rent change and return on investment, expected settlement of interest rate swaps and the effect on the debt maturity schedule, rehab budgets and expected acquisitions and dispositions and related timing. 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, 2024 and 2023 (in thousands, except per share amounts): For the Three Months Ended March 31, 2024 2023 % Change Net income (loss) $ 26,402 $ (3,898) N/M Depreciation and amortization 24,323 23,266 4.5 % Gain on sales of real estate (31,709) — 0.0 % Adjustment for noncontrolling interests (75) (73) 2.7 % FFO attributable to common stockholders 18,941 19,295 -1.8 % FFO per share - basic $ 0.74 $ 0.75 -2.3 % FFO per share - diluted $ 0.72 $ 0.74 -2.9 % (Gain) loss on extinguishment of debt and modification costs 546 (122) N/M Casualty-related expenses/(recoveries) 33 (1,706) N/M Casualty losses (gains) (199) 814 N/M Amortization of deferred financing costs - acquisition term notes 330 330 0.0 % Adjustment for noncontrolling interests (2) 2 N/M Core FFO attributable to common stockholders 19,649 18,613 5.6 % Core FFO per share - basic $ 0.76 $ 0.73 5.1 % Core FFO per share - diluted $ 0.75 $ 0.71 4.4 % Amortization of deferred financing costs - long term debt 387 437 -11.4 % Equity-based compensation expense 2,547 1,966 29.6 % Adjustment for noncontrolling interests (12) (9) 33.3 % AFFO attributable to common stockholders 22,571 21,007 7.4 % AFFO per share - basic $ 0.88 $ 0.82 6.9 % AFFO per share - diluted $ 0.86 $ 0.81 6.3 % Weighted average common shares outstanding - basic 25,721 25,599 0.5 % Weighted average common shares outstanding - diluted (1) 26,354 26,075