NXRT Reports Continued Strength in Operations, Boosts Quarterly Dividend by 10.5% and Announces Accretive 19-Property Refinancing Transaction, Extending Average Maturity to ~6.4 years
DALLAS, Oct. 25, 2022 /PRNewswire/ — NexPoint Residential Trust, Inc. (NYSE: NXRT) reported financial results for the third quarter ended September 30, 2022.
- NXRT1 reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(0.6)M, $24.5M, $21.8M and $24.3M, respectively, attributable to common stockholders for the quarter ended September 30, 2022, compared to Net Loss, FFO, Core FFO, and AFFO of $(5.4)M, $16.1M, $16.4M and $18.6M, respectively, attributable to common stockholders for the quarter ended September 30, 2021.
- NXRT reported Net Loss, FFO, Core FFO and AFFO of $(13.0)M, $61.2M, $62.3M and $69.4M, respectively, attributable to common stockholders for the nine months ended September 30, 2022, compared to Net Loss, FFO, Core FFO, and AFFO of $(15.7)M, $46.5M, $44.7M and $51.0M, respectively, attributable to common stockholders for the nine months ended September 30, 2021.
- For the three months ended September 30, 2022, Q3 Same Store properties3 average effective rent, total revenue and NOI2 increased 19.4%, 15.0% and 13.1%, respectively, and occupancy decreased 130 bps over the prior year period.
- For the nine months ended September 30, 2022, YTD Same Store properties3 average effective rent, total revenue and NOI2 increased 19.9%, 13.6% and 15.8%, respectively, and occupancy decreased 140 bps over the prior year period.
- NXRT paid a third quarter dividend of $0.38 per share of common stock on September 30, 2022.
- On October 24, 2022, the Company’s board approved a quarterly dividend of $0.42 per share, an 10.5% increase from the previous dividend per share. Since inception, NXRT has increased the dividend per share by 103.9%.
- On October 24, 2022, the Company’s board of directors increased the share repurchase authorization to $100.0 million and extended the authorization to October 24, 2024.
- During the three months ended September 30, 2022, NXRT repurchased and retired 98,906 shares at a weighted average price of $60.57 per share. Since inception, NXRT has repurchased 2,550,628 shares at a weighted average price of $28.37 per share.
- The weighted average effective monthly rent per unit across all 41 properties held as of September 30, 2022 (the “Portfolio”), consisting of 15,3874 units, was $1,446, while physical occupancy was 94.1%.
- During the third quarter 2022, for the properties in our Portfolio, we completed 649 full and partial upgrades and leased 592 upgraded units, achieving an average monthly rent premium of $163 and a 24.3% ROI5.
- Since inception, for the properties currently in our Portfolio, we have completed 7,354 full and partial upgrades, 4,853 kitchen and laundry appliances, and 10,451 technology packages, resulting in a $146, $49, and $44 average monthly rental increase per unit and a 22.0%, 69.3%, and 37.3% 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 loss, see the “Definitions and Reconciliations of Non-GAAP Measures,” “FFO, Core FFO and AFFO” and “NOI and Same Store NOI” 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 36 properties encompassing 13,930 units of apartment space in our Same Store pool for the three months ended September 30, 2022 (our “Q3 Same Store” properties) and 34 properties encompassing 13,426 units of apartment space in our Same Store pool for the nine months ended September 30, 2022 (our “YTD Same Store” properties). The same store unit count excludes 74 units that are currently down due to casualty events (Silverbrook: 16 units, Timber Creek: 16 units, Arbors of Brentwood: 16 units, Venue at 8651: 8 units, Hollister Place: 8 units, Versailles: 5 units, The Preserve at Terrell Mill: 3 units, and Parc500: 2 units). |
|
4) |
Total units owned in our Portfolio is 15,387, however 81 units are currently down due to casualty events (Silverbrook: 16 units, Timber Creek: 16 units, Arbors of Brentwood: 16 units, Venue at 8651: 8 units, Hollister Place: 8 units, Six Forks: 6 units, Versailles: 5 units, The Preserve at Terrell Mill: 3 units, Parc500: 2 units, and High House at Cary: 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. |
- Total revenues were $68.1 million for the third quarter of 2022, compared to $56.4 million for the third quarter of 2021.
- Net loss for the third quarter of 2022 totaled $(0.6) million, or loss of $(0.02) per diluted share, which included $25.2 million of depreciation and amortization expense. This compared to a net loss of $(5.4) million, or loss of $(0.21) per diluted share, for the third quarter of 2021, which included $21.6 million of depreciation and amortization expense.
- The change in our net loss of $(0.6) million for the three months ended September 30, 2022 as compared to our net loss of $(5.4) million for the three months ended September 30, 2021 primarily relates to an increase in total revenues, partially offset by an increase in depreciation expense.
- For the third quarter of 2022, NOI was $39.9 million on 41 properties, compared to $33.6 million for the third quarter of 2021 on 40 properties.
- For the third quarter of 2022, Q3 Same Store NOI increased 13.1% to $36.1 million, compared to $31.9 million for the third quarter of 2021.
- For the third quarter of 2022, FFO totaled $24.5 million, or $0.96 per diluted share, compared to $16.1 million, or $0.64 per diluted share, for the third quarter of 2021.
- For the third quarter of 2022, Core FFO totaled $21.8 million, or $0.85 per diluted share, compared to $16.4 million, or $0.65 per diluted share, for the third quarter of 2021.
- For the third quarter of 2022, AFFO totaled $24.3 million, or $0.95 per diluted share, compared to $18.6 million, or $0.74 per diluted share, for the third quarter of 2021.
- Total revenues were $194.6 million for the nine months ended September 30, 2022, compared to $160.7 million for the nine months ended September 30, 2021.
- Net loss for the nine months ended September 30, 2022 totaled $(13.0) million, or loss of $(0.51) per diluted share, which included $74.5 million of depreciation and amortization expense. This compared to net loss of $(15.7) million, or loss of $(0.62) per diluted share, for the nine months ended September 30, 2021, which included $62.3 million of depreciation and amortization expense.
- The change in our net loss of $(13.0) million for the nine months ended September 30, 2022 as compared to our net loss of $(15.7) million for the nine months ended September 30, 2021 primarily relates to an increase in total revenues, partially offset by a decrease in casualty gains and an increase in depreciation expense.
- For the nine months ended September 30, 2022, NOI was $115.3 million on 41 properties, compared to $93.6 million for the nine months ended September 30, 2021 on 40 properties.
- For the nine months ended September 30, 2022, Same Store NOI increased 15.8% to $101.5 million, compared to $87.7 million for the nine months ended September 30, 2021.
- For the nine months ended September 30, 2022, FFO totaled $61.2 million, or $2.39 per diluted share, compared to $46.5 million, or $1.85 per diluted share, for the nine months ended September 30, 2021.
- For the nine months ended September 30, 2022, Core FFO totaled $62.3 million, or $2.43 per diluted share, compared to $44.7 million, or $1.78 per diluted share, for the nine months ended September 30, 2021.
- For the nine months ended September 30, 2022, AFFO totaled $69.4 million, or $2.71 per diluted share, compared to $51.0 million, or $2.03 per diluted share, for the nine months ended September 30, 2021.
NXRT will host a conference call on Tuesday, October 25, 2022 at 11:00 a.m. ET (10:00 am CT), to discuss third quarter financial results. The conference call can be accessed live over the phone by dialing 888-882-4478 or, for international callers, +1 646-828-8193 and using passcode Conference ID: 7733315. A live audio webcast of the call will be available online at the Company’s website, https://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, November 1, 2022, by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 7733315.
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.
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 “believe,” “assume,” “expect,” “anticipate,” “estimate,” “may,” “should,” “could,” “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, the expected refinancing and related timing of 19 property-level mortgages, improved pricing on refinancings, expected use of cash out refinancing proceeds to pay down the corporate credit facility, the refinancing is expected to extend the weighted average debt maturity schedule and the debt maturing through 2024 after the expected refinancing, the expected reduction to the weighted average interest rate on total debt before and after interest rate swaps, the results of the refinancing and extension of maturities, the pro forma debt maturity schedule, analysis of the potential impact of rising rates on future years’ growth, including principal debt balances, weighted average notional swap amount, hedged/fixed rate debt percentage, floating rate principal percentage, swap rate, weighted average forward curve, weighted average forward rate, weighted average spread, all in hedge rate, unhedged blended portfolio rate and spread to all in rate for 2023, 2024 and 2025 and the related assumptions, including the 19 property level refinancing, the use of cash out refinancing to pay down debt, the sale of the Houston properties, the expected use of proceeds to pay down debt, the sale and amount of proceeds from the sale, maturing debt balances between 2023 and 2025 remain the same and are refinanced at the same spread achieved on the current 19 assets being refinanced plus the forward SOFR curve, NXRT’s guidance for financial results for the full year 2022, including earnings per diluted share, Core FFO per diluted share, same store rental income, same store total revenue, same store total expenses and same store NOI, and the related assumptions, including expected acquisitions and dispositions, shares outstanding and same store growth projections, NXRT’s net asset value and the related components and assumptions, including anticipated full year and fourth quarter 2022 net income and NOI, acquisitions and dispositions, pro forma adjustments for acquisitions and dispositions, the NOI related to the acquired or disposed of properties, the Cornerstone loan refinancing, estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, NOI guidance for the fourth quarter 2022 and the related assumptions, planned value-add programs, including projected average rent, 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. 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 the ultimate duration and severity of the COVID-19 pandemic and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, as well as 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.
The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and nine months ended September 30, 2022 and 2021 (in thousands, except per share amounts):
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
% Change (1) |
|||||||||||||||||
|
Net loss |
$ |
(599) |
$ |
(5,407) |
$ |
(13,093) |
$ |
(15,725) |
-16.7 |
% |
|||||||||||
|
Depreciation and amortization |
25,224 |
21,591 |
74,490 |
62,335 |
19.5 |
% |
|||||||||||||||
|
Adjustment for noncontrolling interests |
(99) |
(49) |
(228) |
(140) |
N/M |
||||||||||||||||
|
FFO attributable to common stockholders |
24,526 |
16,135 |
61,169 |
46,470 |
31.6 |
% |
|||||||||||||||
|
FFO per share – basic |
$ |
0.96 |
$ |
0.64 |
$ |
2.39 |
$ |
1.85 |
29.2 |
% |
|||||||||||
|
FFO per share – diluted |
$ |
0.96 |
$ |
0.64 |
$ |
2.39 |
$ |
1.85 |
29.2 |
% |
|||||||||||
|
Loss on extinguishment of debt and modification costs |
— |
— |
— |
328 |
N/M |
||||||||||||||||
|
Casualty-related expenses/(recoveries) |
(2,976) |
120 |
666 |
(272) |
N/M |
||||||||||||||||
|
Casualty gains |
— |
— |
(357) |
(2,379) |
N/M |
||||||||||||||||
|
Pandemic expense |
— |
11 |
— |
46 |
N/M |
||||||||||||||||
|
Amortization of deferred financing costs – acquisition term notes |
281 |
150 |
786 |
499 |
N/M |
||||||||||||||||
|
Adjustment for noncontrolling interests |
11 |
— |
(3) |
6 |
N/M |
||||||||||||||||
|
Core FFO attributable to common stockholders |
21,842 |
16,416 |
62,261 |
44,698 |
39.3 |
% |
|||||||||||||||
|
Core FFO per share – basic |
$ |
0.85 |
$ |
0.65 |
$ |
2.43 |
$ |
1.78 |
36.5 |
% |
|||||||||||
|
Core FFO per share – diluted |
$ |
0.85 |
$ |
0.65 |
$ |
2.43 |
$ |
1.78 |
36.5 |
% |
|||||||||||
|
Amortization of deferred financing costs – long term debt |
453 |
375 |
1,247 |
1,082 |
15.2 |
% |
|||||||||||||||
|
Equity-based compensation expense |
2,025 |
1,807 |
5,906 |
5,211 |
13.3 |
% |
|||||||||||||||
|
Adjustment for noncontrolling interests |
(10) |
(7) |
(27) |
(19) |
42.1 |
% |
|||||||||||||||
|
AFFO attributable to common stockholders |
24,310 |
18,591 |
69,387 |
50,972 |
36.1 |
% |
|||||||||||||||
|
AFFO per share – basic |
$ |
0.95 |
$ |
0.74 |
$ |
2.71 |
$ |
2.03 |
33.5 |
% |
|||||||||||
|
AFFO per share – diluted |
$ |
0.95 |
$ |
0.74 |
$ |
2.71 |
$ |
2.03 |
33.5 |
% |
|||||||||||
|
Weighted average common stock outstanding – basic |
25,598 |
25,175 |
25,630 |
25,128 |
2.0 |
% |
|||||||||||||||
|
Weighted average common stock outstanding – diluted |
25,598 |
25,175 |
25,630 |
25,128 |
2.0 |
% |
|||||||||||||||
|
Dividends declared per common share |
$ |
0.38 |
$ |
0.34 |
$ |
1.14 |
$ |
1.02 |
11.4 |
% |
|||||||||||
|
FFO Coverage – diluted |
(2) |
2.52x |
1.88x |
2.10x |
1.81x |
16.02 |
% |
||||||||||||||
|
Core FFO Coverage – diluted |
(2) |
2.25x |
1.91x |
2.13x |
1.74x |
22.60 |
% |
||||||||||||||
|
AFFO Coverage – diluted |
(2) |
2.50x |
2.16x |
2.38x |
1.98x |
19.88 |
% |
||||||||||||||
|
(1) |
Represents the percentage change for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. |
|
(2) |
Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. |
This presentation contains non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are net operating income (“NOI”), funds from operations attributable to common stockholders (“FFO”), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO (“AFFO”), AFFO per diluted share and net debt.
NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, if applicable, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, if applicable, (6) casualty-related expenses/(recoveries) and casualty gains (losses), (7) pandemic expenses that are not reflective of continuing operations of the properties and (8) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. We define “Same Store NOI” as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.
FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, if applicable, plus real estate depreciation and amortization. We compute FFO in accordance with NAREIT’s definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the amount attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.
Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as losses on extinguishment of debt and modification costs (includes prepayment penalties and defeasance costs incurred on the early payment of debt, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt, costs incurred in connection with a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment that are expensed), if applicable, casualty-related expenses/and recoveries and gains (losses), pandemic expenses, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing, and the noncontrolling interests (as described above) related to these items.
AFFO makes certain adjustments to Core FFO. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, and the noncontrolling interests related to these items.
Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding.
We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts (“REITs”) among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.
NOI and Same Store NOI
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Same Store NOI for the three months ended June 30, 2022 and the year ended December 31, 2021 to net income (loss), the most directly comparable GAAP financial measure (in thousands):
|
For the Three Months Ended June 30, 2022 |
For the Year Ended December 31, 2021 |
|||||||
|
Net income (loss) |
$ |
(7,827) |
$ |
23,106 |
||||
|
Adjustments to reconcile net income (loss) to NOI: |
||||||||
|
Advisory and administrative fees |
1,868 |
7,631 |
||||||
|
Corporate general and administrative expenses |
3,812 |
11,966 |
||||||
|
Casualty-related expenses/(recoveries) |
(1) |
2,592 |
(200) |
|||||
|
Casualty gains |
(229) |
(2,595) |
||||||
|
Pandemic expense |
— |
50 |
||||||
|
Property general and administrative expenses |
(2) |
680 |
2,232 |
|||||
|
Depreciation and amortization |
25,548 |
86,878 |
||||||
|
Interest expense |
12,402 |
44,623 |
||||||
|
Loss on extinguishment of debt and modification costs |
— |
912 |
||||||
|
Gain on sales of real estate |
— |
(46,214) |
||||||
|
NOI |
$ |
38,846 |
$ |
128,389 |
||||
|
Less Non-Same Store |
||||||||
|
Revenues |
(8,053) |
(19,157) |
||||||
|
Operating expenses |
2,920 |
6,971 |
||||||
|
Operating income |
(11) |
(871) |
||||||
|
Same Store NOI |
$ |
33,702 |
$ |
115,332 |
||||
|
(1) |
Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries). |
|
(2) |
Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. |
Reconciliation of Debt to Net Debt
|
(dollar amounts in thousands) |
Q3 2022 |
Q3 2021 |
||||||
|
Total mortgage debt |
$ |
1,358,343 |
$ |
1,275,501 |
||||
|
Credit facilities |
335,000 |
275,000 |
||||||
|
Total debt outstanding |
1,693,343 |
1,550,501 |
||||||
|
Adjustments to arrive at net debt: |
||||||||
|
Cash and cash equivalents |
(15,771) |
(18,413) |
||||||
|
Restricted cash held for value-add upgrades and green improvements |
(15,347) |
(14,506) |
||||||
|
Net Debt |
$ |
1,662,225 |
$ |
1,517,582 |
||||
|
Enterprise Value (1) |
$ |
2,843,225 |
$ |
3,080,582 |
||||
|
Leverage Ratio |
58 |
% |
49 |
% |
||||
|
(1) |
Enterprise Value is calculated as Market Capitalization plus Net Debt. |
Guidance Reconciliations of NOI, Same Store NOI, FFO, Core FFO and AFFO
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI to net income (the most directly comparable GAAP financial measure) for the periods presented below (in thousands):
|
For the Year Ended December 31, 2022 |
For the Three Months Ended December 31, 2022 |
|||||||
|
Mid-Point (1) |
Mid-Point (1) |
|||||||
|
Net income (loss) |
$ |
34,879 |
$ |
47,974 |
||||
|
Adjustments to reconcile net income (loss) to NOI: |
||||||||
|
Advisory and administrative fees |
7,577 |
1,961 |
||||||
|
Corporate general and administrative expenses |
14,587 |
3,471 |
||||||
|
Property general and administrative expenses |
(2) |
3,351 |
650 |
|||||
|
Depreciation and amortization |
98,651 |
24,161 |
||||||
|
Interest expense |
52,766 |
17,962 |
||||||
|
Casualty-related recoveries |
(357) |
— |
||||||
|
Loss on extinguishment of debt and modification costs |
12,669 |
12,669 |
||||||
|
Gain on sales of real estate |
(66,716) |
(66,716) |
||||||
|
NOI |
(3) |
$ |
157,407 |
$ |
42,132 |
|||
|
Less Non-Same Store |
||||||||
|
Revenues |
(4) |
(30,228) |
||||||
|
Operating expenses |
(4) |
10,869 |
||||||
|
Same Store NOI |
(4) |
$ |
138,048 |
|||||
|
(1) |
Mid-Point estimates shown for full year and fourth quarter 2022 guidance. Assumptions made for full year and fourth quarter 2022 NOI guidance include the Same Store operating growth projections included in the “2022 Full Year Guidance Summary” section of this release and the effect of the acquisition and dispositions throughout the fiscal year. |
|
(2) |
Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. |
|
(3) |
2022 Pro Forma NOI assumes The Adair and Estates on Maryland were owned for the full year 2022, which we estimate would have contributed approximately an additional $800 and $1,000, respectively, to NOI. |
|
(4) |
Amounts are derived from the results of operations of our pro forma Full Year 2022 Same Store properties and Non-Same Store properties. There are 31 properties in our pro forma Full Year 2022 Same Store pool. |
The following table reconciles our FFO, Core FFO and AFFO guidance to our net income (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2022 (in thousands, except per share data):
|
For the Year Ended December 31, 2022 |
||||
|
Mid-Point |
||||
|
Net income |
$ |
34,879 |
||
|
Depreciation and amortization |
98,651 |
|||
|
Gain on sales of real estate |
(66,716) |
|||
|
Adjustment for noncontrolling interests |
(248) |
|||
|
FFO attributable to common stockholders |
66,566 |
|||
|
FFO per share – diluted (1) |
$ |
2.55 |
||
|
Loss on extinguishment of debt and modification costs |
12,669 |
|||
|
Casualty-related recoveries |
305 |
|||
|
Amortization of deferred financing costs – acquisition term notes |
1,010 |
|||
|
Pandemic expense |
3 |
|||
|
Adjustment for noncontrolling interests |
(41) |
|||
|
Core FFO attributable to common stockholders |
80,512 |
|||
|
Core FFO per share – diluted (1) |
$ |
3.08 |
||
|
Amortization of deferred financing costs – long term debt |
1,699 |
|||
|
Equity-based compensation expense |
7,903 |
|||
|
Adjustment for noncontrolling interests |
(36) |
|||
|
AFFO attributable to common stockholders |
90,078 |
|||
|
AFFO per share – diluted (1) |
$ |
3.44 |
||
|
Weighted average common shares outstanding – diluted |
26,152 |
|||
|
(1) |
For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 26.2 million for the full year 2022. |
CONTACTS
Investor Relations
Kristen Thomas
IR@nexpoint.com
Media Relations
Prosek Partners for NexPoint
Pro-nexpoint@prosek.com
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SOURCE NexPoint Residential Trust, Inc.
