NexPoint Residential (NXRT) AI Stock Analysis

• Market Cap: $821.58M
• Dividend Yield: 6.2%
• Average Volume (3M): 176.30K
• Price to Earnings (P/E): 866.2
• Beta (1Y): 0.93
• Revenue Growth: -6.02%
• EPS Growth: -156.44%
• Country: US
• Employees: 2
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -0.28
• Shares Outstanding: 25,364,470
• 10 Day Avg. Volume: 185,180
• 30 Day Avg. Volume: 176,299
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.76
• Enterprise Value/Revenue: 8.93
• Enterprise Value/Gross Profit: 14.28
• Enterprise Value/Ebitda: 19.53
• 1Y Price Target: $36.33
• Price Target Upside: 8.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $33.00 ▼(-1.58% Downside)

NexPoint Residential's overall score is primarily influenced by its financial performance challenges, including declining revenue and high leverage. The technical analysis suggests a neutral trend, while the valuation offers an attractive dividend yield despite a negative P/E ratio. The earnings call provided a balanced sentiment with both positive developments and significant challenges.

Positive Factors

Earnings

The company reported a core FFO number that was three cents higher than consensus estimates.

Financial Performance

The company updated full year 2025 guidance with Core FFO per diluted share now expected between $2.61 and $2.89 up from $2.56-$2.83.

Liquidity Position

NXRT is in a strong liquidity position with approximately $23.7 million of cash and cash equivalents and $350 million free and clear under its credit facility.

Negative Factors

Debt Maturity

The company has no relevant debt maturing until 2031.

Growth Dependency

The company growth is dependent on internal growth, acquisitions and value enhancement to existing apartments.

Interest Rate and Debt

The refinancing reduced the company's weighted average interest rate and extended the weighted average debt maturity, reducing near-term refinancing pressure.

NexPoint Residential Business Overview & Revenue Model

Company Description

NexPoint Residential Trust, Inc. (NXRT) is a real estate investment trust (REIT) that focuses on investing in and managing multifamily residential properties across the United States. The company primarily targets the acquisition and operation of properties in high-demand markets, emphasizing value-add opportunities to enhance property performance and increase rental income. With a portfolio that includes a mix of market-rate and affordable housing, NexPoint aims to provide quality living spaces while generating attractive returns for its investors.

How the Company Makes Money

NexPoint Residential generates revenue primarily through rental income from its multifamily properties. The company acquires residential real estate assets, often implementing strategic renovations and management improvements to increase occupancy rates and rental prices. Additionally, NXRT may realize gains through property sales or refinancing, enhancing its capital structure. Significant partnerships with property management firms and local market experts further contribute to optimizing operations and maximizing rental yields. The company also benefits from favorable market conditions, such as rising demand for rental housing, which can lead to increased revenues from higher rental rates and reduced vacancy levels.

NexPoint Residential Financial Statement Overview

Summary

NexPoint Residential has a mixed financial outlook with stable cash flow but challenges in profitability and high leverage. The negative net profit margin and high debt-to-equity ratio pose financial risks, requiring focus on margin improvement and debt reduction.

Income Statement

NexPoint Residential has experienced fluctuations in revenue and profitability. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 38.1% and a negative net profit margin of -12.6%, which indicates challenges in maintaining profitability. Revenue growth has been inconsistent, and the EBIT and EBITDA margins are moderate, reflecting mixed operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.86 in the TTM, which suggests significant leverage and potential financial risk. The equity ratio stands at 20.2%, indicating a low proportion of assets financed by equity. Return on equity is negative in the TTM, highlighting profitability challenges.

Cash Flow

Cash flow from operations is positive, with an operating cash flow to net income ratio of -2.56 in the TTM, which is concerning due to the negative net income. Free cash flow is stable, with a free cash flow to net income ratio of -2.56, suggesting reliance on cash flow for sustainability despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	254.25M	259.70M	277.53M	263.95M	219.24M	204.80M
Gross Profit	158.88M	219.16M	81.21M	159.07M	124.38M	119.65M
EBITDA	116.19M	127.67M	250.01M	132.66M	105.09M	95.97M
Net Income	-49.71M	1.11M	44.26M	-9.26M	23.04M	44.02M
Balance Sheet
Total Assets	1.86B	1.91B	2.11B	2.23B	2.06B	1.83B
Cash, Cash Equivalents and Short-Term Investments	13.62M	23.15M	12.37M	127.84M	53.24M	24.46M
Total Debt	1.47B	1.46B	1.48B	1.60B	1.55B	1.35B
Total Liabilities	1.50B	1.49B	1.61B	1.70B	1.59B	1.42B
Stockholders Equity	347.89M	410.37M	494.62M	519.67M	469.85M	407.93M
Cash Flow
Free Cash Flow	82.43M	73.57M	96.58M	79.10M	73.27M	57.23M
Operating Cash Flow	82.43M	73.57M	96.58M	79.10M	73.27M	57.23M
Investing Cash Flow	-12.60M	130.62M	51.92M	-162.30M	-235.91M	11.50M
Financing Cash Flow	-76.47M	-195.55M	-155.02M	46.31M	194.32M	-82.90M

NexPoint Residential Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXRT, the sentiment is Neutral. The current price of 33.53 is above the 20-day moving average (MA) of 31.75, above the 50-day MA of 32.97, and below the 200-day MA of 37.32, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXRT.

NexPoint Residential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRT	65 Neutral	$4.17B	144.24	0.81%	3.68%	-1.54%	―
Sector *	63 Neutral	$6.92B	13.18	-0.57%	7.01%	3.62%	-22.63%
CSR	57 Neutral	$1.01B	―	-3.35%	5.38%	-0.63%	-123.59%
NXRT	56 Neutral	$821.58M	866.19	-11.85%	6.20%	-6.02%	-156.44%
CLPR	52 Neutral	$65.07M	―	46.22%	9.05%	7.69%	-251.59%
AIV	50 Neutral	$1.10B	―	-38.53%	7.72%	7.07%	69.54%
BRT	48 Neutral	$293.94M	―	-4.52%	6.26%	2.16%	11.18%

NexPoint Residential Corporate Events

NexPoint Residential Retains Dondero Despite Withheld Votes

At the 2025 annual meeting of stockholders, James Dondero received more ‘withheld’ votes than ‘for’ votes for his re-election as a director of NexPoint Residential Trust, Inc. Despite this, the Board, following a recommendation from the Nominating and Corporate Governance Committee, decided to reject Mr. Dondero’s resignation due to his expertise in investment management, his experience, and his role as Chairman and President, among other factors. Consequently, Mr. Dondero will continue to serve on the Board until the 2026 annual meeting.

NexPoint Residential Secures $200M Credit Facility

On July 11, 2025, NexPoint Residential Trust, Inc. entered into a $200 million corporate revolving credit facility with J.P. Morgan Chase Bank, which may be increased by an additional $200 million subject to lender agreement. This credit facility, maturing on June 30, 2028, is secured by the company’s equity offerings and capital events, and includes various financial covenants and interest rate options, potentially enhancing the company’s financial flexibility and operational capacity.