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NexPoint Residential Trust Inc (NXRT)
NYSE:NXRT
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NexPoint Residential
(NYSE:NXRT)
Rating:55Neutral
Price Target:
$38.00
▲( 14.11% Upside)
Positive Factors
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
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
Dependence on Growth Strategies
The company growth is dependent on internal growth, acquisitions and value enhancement to existing apartments.
NexPoint Residential (NXRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$845.40M
Dividend Yield5.84%
Average Volume (3M)123.95K
Price to Earnings (P/E)866.2
Beta (1Y)0.98
Revenue Growth-7.44%
EPS Growth-143.64%
CountryUS
Employees2
SectorReal Estate
Sector Strength63
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.27
Shares Outstanding25,284,700
10 Day Avg. Volume131,375
30 Day Avg. Volume123,952
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.52
Price to Sales (P/S)0.00
P/FCF Ratio17.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$42.50Price Target Upside27.63% Upside
Rating ConsensusHold
Number of Analyst Covering7
NexPoint Residential Business Overview & Revenue Model
Company DescriptionNexPoint 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.
How the Company Makes MoneyNexPoint Residential makes money through rental income generated from its portfolio of multifamily properties. The company focuses on acquiring undervalued properties where it can implement value-add strategies such as renovations and operational improvements to increase occupancy rates and rental income. By enhancing the properties, NXRT can charge higher rents, thereby boosting its overall revenue. Additionally, the company may engage in strategic property sales when market conditions are favorable, realizing capital gains that contribute to its earnings. NXRT's revenue model is heavily reliant on effective property management and maintaining high occupancy levels to ensure a steady stream of rental income.
NexPoint Residential Financial Statement Overview
Summary
NexPoint Residential shows operational efficiency with strong gross profit margins and no debt burden. However, inconsistent profitability, low net income, and weak cash flow management present concerns. The company's equity position is strong, but cash flow challenges can pose risks if sustained.Income Statement
NexPoint Residential has shown inconsistent revenue growth, with a slight decline in 2024, following growth in previous years. The gross profit margin in 2024 was strong at approximately 84.41%, but the net profit margin was low due to significantly reduced net income. Additionally, the EBIT and EBITDA margins were reasonable, indicating operational efficiency, although net income fluctuations point to volatility in profitability.65
Positive
Balance Sheet
The company maintains a relatively strong equity position with a debt-to-equity ratio of 0 for 2024, indicating no debt burden, which is positive. However, the equity ratio decreased to about 21.51%, reflecting potential vulnerability to asset value fluctuations. The return on equity is low due to minimal net income, suggesting limited profitability relative to equity.70
Positive
Cash Flow
NexPoint Residential's cash flow statement indicates challenges, with zero operating and free cash flow in 2024, a significant drop from previous years. This raises concerns about cash management and operational cash generation. Historical free cash flow to net income ratios were omitted due to zero values, highlighting potential short-term liquidity issues.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 255.34M | 259.70M | 277.53M | 263.95M | 219.24M | 204.80M | Gross Profit |
| 97.40M | 146.47M | 167.13M | 159.07M | 131.02M | 119.65M | EBIT |
| 31.42M | 83.56M | 113.18M | 32.84M | 19.83M | 15.34M | EBITDA |
| 134.16M | 181.32M | 250.01M | 130.49M | 151.30M | 165.13M | Net Income Common Stockholders |
| -32.09M | 1.11M | 44.26M | -64.80M | -23.21M | -2.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.94M | 23.15M | 12.37M | 16.76M | 49.45M | 24.46M | Total Assets |
| 1.03B | 1.91B | 2.11B | 2.23B | 2.06B | 1.83B | Total Debt |
| 753.54M | 1.46B | 1.48B | 1.60B | 1.55B | 1.35B | Net Debt |
| 739.61M | 1.44B | 1.46B | 1.58B | 1.51B | 1.32B | Total Liabilities |
| 781.81M | 1.49B | 1.61B | 1.70B | 1.59B | 1.42B | Stockholders Equity |
| 247.72M | 410.37M | 494.62M | 519.67M | 469.85M | 407.93M |
| Cash Flow | Free Cash Flow | ||||
| 53.89M | 73.57M | 96.58M | 79.10M | 73.27M | 57.23M | Operating Cash Flow |
| 53.89M | 73.57M | 96.58M | 79.10M | 73.27M | 57.23M | Investing Cash Flow |
| 36.45M | 130.62M | 51.92M | -162.30M | -235.91M | 11.50M | Financing Cash Flow |
| -105.17M | -195.55M | -155.02M | 46.31M | 194.32M | -82.90M |
NexPoint Residential Technical Analysis
Negative
33.30
Price Trends
36.97
Negative
38.13
Negative
40.81
Negative
Market Momentum
-0.71
Positive
31.59
Neutral
6.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXRT, the sentiment is Negative. The current price of 33.3 is below the 20-day moving average (MA) of 36.62, below the 50-day MA of 36.97, and below the 200-day MA of 40.81, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 31.59 is Neutral, neither overbought nor oversold. The STOCH value of 6.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXRT.
NexPoint Residential Risk Analysis
NexPoint Residential disclosed 80 risk factors in its most recent earnings report. NexPoint Residential reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Changes in accounting rules and other policy or regulatory changes could occur at any time and could impact us in significantly negative ways that we are unable to predict or protect against. Q4, 2024
2.
Our business could be harmed if we are unable to effectively integrate and use artificial intelligence. Q4, 2024
NexPoint Residential Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.08B | ― | -1.55% | 4.94% | -1.81% | -33.33% | |
61 Neutral | $4.31B | 136.08 | 0.87% | 3.56% | -2.94% | ― | |
61 Neutral | $63.62M | ― | 46.22% | 9.64% | 8.64% | -213.95% | |
60 Neutral | $2.76B | 10.59 | 0.51% | 8507.90% | 5.51% | -19.44% | |
55 Neutral | $845.40M | 866.19 | -7.19% | 5.84% | -7.44% | -143.64% | |
54 Neutral | $288.46M | ― | -4.28% | 6.55% | 2.39% | -407.57% | |
48 Neutral | $1.11B | ― | -48.27% | ― | 9.28% | 34.42% |
* Real Estate Sector Average
Performance Comparison
NXRT
NexPoint Residential
33.89
-0.72
-2.08%
AIV
Apartment Investment & Management
7.80
0.37
4.98%
CSR
Centerspace
61.16
-2.87
-4.48%
IRT
Independence Realty
17.99
2.39
15.32%
BRT
BRT Apartments
15.26
-0.86
-5.33%
CLPR
Clipper Realty
3.92
0.45
12.97%
NexPoint Residential Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -9.12%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were positive developments in core FFO growth, dividend increases, and strategic stock repurchases, significant challenges were evident with a reported net loss, decreased revenue, and negative earnings guidance.Q1-2025 Updates
Positive Updates
Core FFO Growth
Core FFO per diluted share increased to $0.75 in Q1 2025 from $0.74 in Q1 2024.
Dividend Increase
Quarterly dividend increased to $0.51 per share, marking a 147.6% increase since inception.
Successful Lease Upgrades
Completed 210 full and partial upgrades, leased 201 upgraded units with a 16.1% ROI.
Stock Repurchase Program
Purchased 223,109 shares at a 33% discount to NAV midpoint, valued at $7.6 million.
Decreased Supply Forecast
RealPage forecasts a 22% decline in deliveries in 2025 within key submarkets.
Negative Updates
Net Loss Reported
Net loss of $6.9 million or $0.27 per diluted share for the first quarter.
Decrease in Revenue and NOI
Total revenue decreased to $63.2 million, with NOI down to $37.8 million from $41.1 million.
Same-store Revenue Decline
Same-store rent and occupancy decreased by 1.3% and 0.3%, leading to a 3.8% decrease in same-store NOI.
Negative Earnings Per Share Guidance
Full-year 2025 guidance for earnings per diluted share revised to a midpoint of negative $1.22.
Company Guidance
During the first quarter of 2025 earnings call, NexPoint Residential Trust, Inc. provided updated guidance for the year. The company reported a net loss of $6.9 million, or $0.27 per diluted share, on revenue of $63.2 million, compared to a net income of $26.4 million or $1.00 earnings per diluted share on $67.6 million in revenue for the same period in 2024. The guidance for 2025 includes an earnings loss per diluted share between $1.08 and negative $1.36, with a midpoint of negative $1.22. The core FFO per diluted share is projected between $2.89 and $2.61, with a midpoint of $2.75. The company completed 210 unit upgrades in Q1, resulting in a $62 monthly rent premium and a 16.1% return on investment. NexPoint reaffirmed its same-store rental income and NOI guidance, while also announcing a quarterly dividend of $0.51 per share. The company engaged in a share buyback program, repurchasing approximately $7.6 million worth of common stock at an average price of $34.29 per share. Additionally, NexPoint entered into a new five-year $100 million SOFR swap with a fixed rate of 3.489%.NexPoint Residential Corporate Events
Executive/Board ChangesShareholder Meetings
NexPoint Residential Holds Annual Stockholders Meeting
Neutral
May 20, 2025
On May 20, 2025, NexPoint Residential Trust, Inc. held its Annual Meeting of Stockholders where several key decisions were made. The stockholders approved the 2025 Long Term Incentive Plan aimed at attracting and retaining talent, elected directors for terms expiring in 2026, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for 2025. Notably, James Dondero, a director, tendered his resignation after receiving more withheld votes than votes for his election, pending the board’s decision on acceptance.
The most recent analyst rating on (NXRT) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on NexPoint Residential stock, see the NXRT Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.