NexPoint Residential Trust Inc (NXRT)
NYSE:NXRT
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NexPoint Residential
(NYSE:NXRT)
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Rating:55Neutral
Price Target:
$29.00
▲(5.34% Upside)
Action:ReiteratedDate:04/30/26
The score is held back primarily by weak profitability and a highly levered balance sheet despite improving revenue and steady operating cash flow. Technicals are modestly supportive and the high dividend yield adds appeal, while the latest earnings call was cautiously positive with reaffirmed guidance but ongoing NOI/interest expense pressure.
Positive Factors
Proven value-add program
The firm’s repeatable value-add execution has driven persistent rent premiums and strong project-level ROI (20.7% inception‑to‑date). This capability supports durable NOI expansion and asset value uplift as renovated units reprice, underpinning long‑term cash flow recovery.
Negative Factors
Elevated leverage
Very high debt-to-equity materially limits financial flexibility and increases refinancing and covenant risk. A thinner equity base amplifies earnings volatility and reduces capacity for opportunistic acquisitions or additional renovation spending without raising costly capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Proven value-add program
The firm’s repeatable value-add execution has driven persistent rent premiums and strong project-level ROI (20.7% inception‑to‑date). This capability supports durable NOI expansion and asset value uplift as renovated units reprice, underpinning long‑term cash flow recovery.
Read all positive factors
NexPoint Residential (NXRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$740.19M
Dividend Yield7.06%
Average Volume (3M)151.16K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-1.46%
EPS Growth0.65%
CountryUS
Employees2
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-1.26
Shares Outstanding25,491,440
10 Day Avg. Volume125,398
30 Day Avg. Volume151,158
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.59
Price to Sales (P/S)3.04
P/FCF Ratio9.14
Enterprise Value/Market Cap3.04
Enterprise Value/Revenue8.93
Enterprise Value/Gross Profit10.56
Enterprise Value/Ebitda5.94
Forecast
1Y Price Target
$30.00Price Target Upside8.97% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-1.53
Revenue Forecast (FY)$255.01M
NexPoint Residential Business Overview & Revenue Model
Company Description
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-ad...
How the Company Makes Money
NXRT makes money primarily by generating rental-related income from its multifamily apartment portfolio. Its key revenue stream is residential rental revenue (monthly rent paid by tenants), which is influenced by occupancy levels, lease rates, and...
NexPoint Residential Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call emphasized stabilizing operations and clear month-to-month improvement driven by technology, expense discipline, insurance savings, and successful value-add execution, while acknowledging a meaningful interest expense headwind, modest same-store revenue/NOI declines, and some one-time expense items. Management reaffirmed full-year guidance, highlighted liquidity and NAV upside, and identified fee-income optionality from the adviser platform to offset rate pressure. Overall, operational positives and forward-looking levers (AI, leasing momentum, hedging optionality, DST fee potential) outweigh the near-term financial headwinds tied to higher interest expense and elevated one-time spending.Positive Updates
Revenue and Net Loss Essentially Flat YoY
Q1 total revenue of $63.5M versus $63.2M in Q1 2025; net loss improved slightly to $6.8M ($0.27 per diluted share) from $6.9M ($0.27) a year ago, signaling stability in top-line results.
Negative Updates
Same-Store Revenue and NOI Declines
Same-store total income declined 2.2% YoY to $61.4M; same-store NOI declined 2.7% to $36.7M with an NOI margin of 59.8%, reflecting near-term top-line pressure from a supply-driven pricing reset.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Net Loss Essentially Flat YoY
Q1 total revenue of $63.5M versus $63.2M in Q1 2025; net loss improved slightly to $6.8M ($0.27 per diluted share) from $6.9M ($0.27) a year ago, signaling stability in top-line results.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance with core FFO of $2.42–$2.71 per diluted share and same‑store NOI guidance with a midpoint of -0.5% (same‑store rental income +0.0% to +1.9%, midpoint +0.9%; same‑store revenue +0.1% to +2.0%, midpoint +1.1%; same‑store expense +2.8% to +4.2%, midpoint +3.5%; same‑store NOI -2.5% to +1.5%, midpoint -0.5%); updated full‑year interest expense is $69.3M (vs. $67.1M prior model) after a 7–47 bps forward SOFR shift that adds ~ $2.2M (~$0.08 per share), with Q1 interest expense $15.4M (Q1 2025: $14.4M) and swaps fixing $917.5M (62%) of floating debt; at the guidance midpoint core FFO coverage is ~1.21x, Q1 dividend was $0.53 (dividend increase since inception 157.3%), insurance renewal beat expectations with a 13.3% YoY reduction, and management expects concessions to fall from Q1’s ~2% of GPR to ~1% in Q2, 0.5% in Q3 and 0.4% in Q4 while financial occupancy moves from 92.8% in Q1 to 94.0% in Q2 and 94.1% in Q3 (same‑store physical occupancy closed Q1 at 93.6%); they say the SOFR and Q1 leasing headwinds have been fully offset by the insurance win, expense discipline and strategic fee income (potential incremental core FFO of $0.10–$0.20 from DST activity), so guidance ranges remain unchanged.NexPoint Residential Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
28
Negative
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 251.61M | 251.28M | 259.70M | 277.53M | 263.95M | 219.24M |
| Gross Profit | 212.78M | 211.72M | 146.47M | 157.58M | 143.89M | 117.05M |
| EBITDA | 378.14M | 124.46M | 202.99M | 250.01M | 138.94M | 137.39M |
| Net Income | -31.88M | -32.03M | 1.11M | 44.26M | -9.26M | 23.04M |
Balance Sheet | ||||||
| Total Assets | 1.87B | 1.89B | 1.91B | 2.11B | 2.23B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 52.78M | 13.70M | 23.15M | 12.37M | 127.84M | 53.24M |
| Total Debt | 1.57B | 1.56B | 1.46B | 1.48B | 1.60B | 1.55B |
| Total Liabilities | 1.60B | 1.59B | 1.49B | 1.61B | 1.70B | 1.59B |
| Stockholders Equity | 272.43M | 295.50M | 410.37M | 494.62M | 519.67M | 469.85M |
Cash Flow | ||||||
| Free Cash Flow | 78.60M | 83.59M | 73.57M | 96.58M | 79.10M | 73.27M |
| Operating Cash Flow | 78.60M | 83.59M | 73.57M | 96.58M | 79.10M | 73.27M |
| Investing Cash Flow | -114.48M | -115.75M | 130.62M | 51.92M | -162.30M | -235.91M |
| Financing Cash Flow | 29.84M | 23.42M | -195.55M | -155.02M | 46.31M | 194.32M |
NexPoint Residential Technical Analysis
Neutral
27.53
Price Trends
26.84
Positive
28.12
Negative
29.47
Negative
Market Momentum
0.06
Negative
67.95
Neutral
93.12
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 27.53 is above the 20-day moving average (MA) of 25.33, above the 50-day MA of 26.84, and below the 200-day MA of 29.47, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 93.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXRT.
NexPoint Residential Risk Analysis
NexPoint Residential disclosed 84 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 0 New Risks
NexPoint Residential Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.34B | ― | 2.88% | 5.66% | 9.12% | -7.55% | |
68 Neutral | $1.78B | -31.52 | 6.36% | 2.17% | 7.11% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $740.19M | -23.50 | -10.30% | 7.06% | -1.46% | 0.65% | |
55 Neutral | $1.21B | 63.46 | -4.93% | 4.58% | 35.61% | ― | |
52 Neutral | $270.48M | -22.16 | -6.33% | 6.98% | 1.46% | -19.84% | |
45 Neutral | $612.89M | 0.70 | 299.94% | 7.42% | -16.20% | 99.72% |
* Real Estate Sector Average
NXRT
NexPoint Residential
28.92
-6.71
-18.83%
AIV
Apartment Investment & Management
4.26
-0.07
-1.55%
VRE
Veris Residential
18.96
3.38
21.69%
UMH
Umh
15.74
-0.61
-3.73%
CSR
Centerspace
68.38
10.35
17.83%
BRT
BRT Apartments
14.37
-0.06
-0.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.