NexPoint Residential ( (NXRT) ) has released its Q4 earnings. Here is a breakdown of the information NexPoint Residential presented to its investors.
NexPoint Residential Trust, Inc. is a publicly traded real estate investment trust (REIT) focused on acquiring, owning, and operating middle-income multifamily properties with value-add potential in the Southeastern and Southwestern United States. The company is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P.
In its latest earnings report, NexPoint Residential Trust announced its financial results for the fourth quarter and full year of 2024. The company reported a net income of $1.1 million for the year, a significant decrease from $44.3 million in 2023. The report highlighted a decrease in total revenues to $259.7 million from $277.5 million in the previous year, alongside a decline in net operating income (NOI) and funds from operations (FFO).
Key financial metrics revealed that the company’s same-store properties experienced a slight increase in total revenue and NOI, with a 2.0% and 0.9% rise, respectively. However, average effective rent decreased by 1.6%, and occupancy remained flat. The company completed the sale of three properties for a total of $166.8 million and repurchased shares at a discount, citing it as an attractive arbitrage opportunity.
Despite the challenges faced in 2024, NexPoint Residential Trust continues to focus on its value-add program, completing numerous upgrades that resulted in significant rent premiums and returns on investment. The company also paid down its corporate credit facility and refinanced mortgage debt for several properties, maintaining a strong capital structure.
Looking ahead, NexPoint Residential Trust’s management has issued guidance for 2025, anticipating modest growth in same-store rental income and NOI. The company remains committed to exploring capital recycling opportunities and enhancing its portfolio through strategic acquisitions and dispositions.