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NexPoint Residential Trust Inc (NXRT)
NYSE:NXRT
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NexPoint Residential
(NYSE:NXRT)
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Select Model
Rating:53Neutral
Price Target:
$33.00
▲(6.18% Upside)
NexPoint Residential's overall stock score reflects significant financial challenges, including declining revenue and high leverage, partially offset by strong cash flow and a high dividend yield. Technical analysis and earnings call sentiment are neutral, indicating a cautious outlook.
Positive Factors
Cash Flow Generation
Strong cash flow growth indicates efficient operations and provides a buffer against operational losses, supporting long-term stability.
Dividend Growth
Consistent dividend growth reflects robust cash generation and management's commitment to returning value to shareholders, enhancing investor confidence.
Successful Unit Upgrades
Unit upgrades with a 26% ROI enhance property value and rental income, indicating effective asset management and potential for revenue growth.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.
Declining Revenue
Declining revenue suggests challenges in maintaining market position and could pressure margins, affecting long-term profitability.
Negative Profit Margins
Negative profit margins indicate operational inefficiencies and financial challenges, potentially hindering the company's ability to sustain growth.
NexPoint Residential (NXRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$786.69M
Dividend Yield6.56%
Average Volume (3M)167.68K
Price to Earnings (P/E)866.2
Beta (1Y)0.88
Revenue Growth-6.02%
EPS Growth-156.44%
CountryUS
Employees2
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.28
Shares Outstanding25,364,470
10 Day Avg. Volume152,316
30 Day Avg. Volume167,675
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.88
Enterprise Value/Revenue8.93
Enterprise Value/Gross Profit14.28
Enterprise Value/Ebitda19.53
Forecast
1Y Price Target
$36.33Price Target Upside16.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 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 Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive aspects such as dividend growth, successful unit upgrades, improved credit facilities, and effective expense management. However, these were counterbalanced by the reported net loss, decline in same-store revenues, and challenges in specific markets due to supply pressures. The sentiment is balanced with noteworthy achievements and significant challenges.Q2-2025 Updates
Positive Updates
Dividend Growth
NXRT paid a second quarter dividend of $0.51 per share and has increased its dividend by 147.6% since inception.
Successful Unit Upgrades
Completed 555 full and partial upgrades, achieving an average monthly rent premium of $73 with a 26% return on investment.
Improved Credit Facilities
Entered into a $200 million corporate revolving credit facility with improvements, including a spread that improved by 15 basis points.
Positive Market Segment Performance
Atlanta and South Florida markets led revenue growth at 3.6% and 2.3%, respectively.
Expense Management
Second quarter same-store operating expenses were up just 1.5% year-over-year, with significant declines in marketing and payroll costs.
Insurance Cost Reduction
Insurance costs down 20% year-over-year, driven by a favorable market environment.
Negative Updates
Net Loss Reported
Reported a net loss of $7 million for Q2 2025, compared to a net income of $10.6 million in Q2 2024.
Same-Store Revenue Decline
Same-store rent and occupancy decreased by 1.3% and 0.8%, respectively, leading to a decrease in same-store NOI of 1.1% compared to Q2 2024.
Challenges in Phoenix Market
Phoenix saw significant occupancy drops due to supply pressures, with new lease rate pressures of negative 8% to negative 10%.
Negative Impact of New Supply in Certain Markets
Markets like South Florida, Orlando, and Atlanta are expected to have weaker performance in the second half of the year due to supply pressures.
Company Guidance
During the NexPoint Residential Trust Q2 2025 earnings call, several key metrics and guidance updates were provided. The company reported a net loss of $7 million, equating to a loss of $0.28 per diluted share, on total revenue of $63.1 million. This contrasts with a net income of $10.6 million and earnings of $0.40 per diluted share for the same period in 2024, with total revenue at $64.2 million. The net operating income (NOI) for Q2 2025 was $38 million, a slight decrease from $38.9 million in Q2 2024. Same-store rent and occupancy saw declines of 1.3% and 0.8%, respectively, leading to a decrease in same-store NOI of 1.1% compared to Q2 2024. However, rents for Q2 2025 on the same-store portfolio increased by 0.3% from Q1 2025. The company achieved a core funds from operations (FFO) of $18 million or $0.71 per diluted share, compared to $0.69 per diluted share in Q2 2024. NXRT also completed 555 full and partial unit upgrades, leasing 381 upgraded units with a $73 average rent premium and a 26% return on investment. Additionally, a $0.51 per share dividend was paid, representing a 1.39x coverage of core FFO and a 72.2% payout ratio. The company has also engaged in share repurchases and financial restructuring, including a new $100 million SOFR swap and a $200 million revolving credit facility. For the full year 2025 guidance, NXRT has revised its ranges for earnings loss per diluted share and core FFO, with a midpoint of $1.31 for earnings loss and $2.75 for core FFO per diluted share, while reaffirming its acquisitions and dispositions guidance.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.45
Neutral
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.40
Negative
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.60
Neutral
| 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
Negative
31.08
Price Trends
32.11
Negative
32.55
Negative
34.85
Negative
Market Momentum
-0.35
Positive
45.42
Neutral
37.11
Neutral
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 31.08 is below the 20-day moving average (MA) of 31.90, below the 50-day MA of 32.11, and below the 200-day MA of 34.85, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 37.11 is Neutral, 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 81 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.20B | 105.53 | 3.64% | 6.19% | 8.39% | ― | |
65 Neutral | $1.03B | ― | -3.35% | 5.21% | -0.63% | -123.59% | |
58 Neutral | $1.35B | ― | -1.91% | 2.19% | 0.26% | 77.82% | |
53 Neutral | $786.69M | 866.19 | -11.85% | 6.56% | -6.02% | -156.44% | |
48 Neutral | $278.06M | ― | -4.52% | 6.77% | 2.16% | 11.18% | |
45 Neutral | $1.10B | ― | -38.53% | 7.79% | 7.07% | 69.54% |
* Real Estate Sector Average
NXRT
NexPoint Residential
31.50
-9.62
-23.39%
AIV
Apartment Investment & Management
7.70
-0.41
-5.06%
VRE
Veris Residential
14.69
-2.35
-13.79%
UMH
Umh
14.48
-3.42
-19.11%
CSR
Centerspace
58.93
-8.63
-12.77%
BRT
BRT Apartments
14.88
-1.82
-10.90%
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.