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NexPoint Residential
(NYSE:NXRT)
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Rating:47Neutral
Price Target:
$24.00
▼(-7.94% Downside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by weak financial quality (recent net losses) and elevated leverage, alongside bearish technicals with the stock trading below key moving averages. A high dividend yield and a generally mixed-but-constructive earnings update (operational improvement offset by interest-driven guidance cuts) provide partial support, but not enough to overcome balance sheet risk and trend weakness.
Positive Factors
Value‑add Renovation Program
NexPoint’s repeatable, capital‑efficient value‑add program has generated durable rent premiums and high cash returns across interior, kitchen/laundry and tech upgrades. Consistent uplift supports NOI expansion, resident retention and scalable margin improvement over multiple quarters.
Negative Factors
Elevated Leverage
Very high leverage materially reduces financial flexibility and amplifies earnings volatility in a higher‑rate environment. Declining equity and negative ROE constrain capital allocation options, limit room for acquisitions or buybacks, and heighten downside risk if cash flows weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Value‑add Renovation Program
NexPoint’s repeatable, capital‑efficient value‑add program has generated durable rent premiums and high cash returns across interior, kitchen/laundry and tech upgrades. Consistent uplift supports NOI expansion, resident retention and scalable margin improvement over multiple quarters.
Read all positive factors
NexPoint Residential (NXRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$626.95M
Dividend Yield8.67%
Average Volume (3M)151.16K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-0.46%
EPS Growth32.70%
CountryUS
Employees1
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-1.31
Shares Outstanding25,549,812
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.50Price Target Upside9.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.51
Revenue Forecast (FY)$255.87M
NexPoint Residential Business Overview & Revenue Model
Company Description
NexPoint Residential Trust (NXRT) is a Real Estate Investment Trust publicly traded on the New York Stock Exchange, specializing in the acquisition, ownership, and operation of well-located apartment communities designed for middle-income resident...
How the Company Makes Money
NXRT makes money primarily by acquiring, owning, leasing, and operating apartment communities and collecting rental income from residents. Its core revenue stream is multifamily rental revenue (contractual rent and other resident-related income su...
NexPoint Residential Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: operating fundamentals showed clear month-to-month improvement (leasing cadence, reduced concessions, expense discipline, strong value-add results and a performing recent acquisition), but the company revised full-year guidance lower primarily due to higher interest expense from an adverse forward rate shift and some concentrated market softness (notably Nashville). Management emphasized that the earnings revision is largely rate-driven rather than broad operational deterioration and highlighted balance sheet flexibility and NAV upside as mitigating factors.Positive Updates
Quarterly FFO Beat
Q2 core FFO of $16.9M or $0.66 per diluted share was $0.01 ahead of consensus, and the first half of 2026 totaled $1.34 per share (Q1 $0.68, Q2 $0.66), each quarter slightly ahead of the Street.
Negative Updates
Revised Full-Year Guidance and FFO Midpoint Cut
Full-year 2026 core FFO guidance lowered to $2.35–$2.54 (midpoint $2.45) from prior midpoint $2.57 — a $0.12 reduction driven primarily by higher interest expense and softer same-store revenue versus prior assumptions.
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Q2-2026 Updates
Positive
Negative
Quarterly FFO Beat
Q2 core FFO of $16.9M or $0.66 per diluted share was $0.01 ahead of consensus, and the first half of 2026 totaled $1.34 per share (Q1 $0.68, Q2 $0.66), each quarter slightly ahead of the Street.
Read all positive updates
Company Guidance
NexPoint trimmed full‑year 2026 core FFO guidance to $2.35–$2.54 per diluted share (midpoint $2.45 vs prior midpoint $2.57) and lowered same‑store NOI guidance to -2.5%–0.5% (mid -1.0% from -0.5 prior); same‑store revenue growth is now modeled at roughly +0.2% at midpoint (down ~90 bps) and same‑store expense growth at ~2.1% at midpoint (improved 140 bps from 3.5%), with the $0.12 per‑share reduction driven largely by higher interest expense (~$0.16/sh, about $14.6M fewer projected swap inflows and full‑year interest expense now ~ $71.2M vs ~$69M prior), partly offset by $0.05 of realized interest income from a bridge lending investment and +$0.02 from favorable G&A; the guidance bridge items are: interest -$0.16, same‑store revenue -$0.09, same‑store expense +$0.06, interest income +$0.05, corporate G&A +$0.02, acquisition/disposition assumptions remain $0–$200M each ($100M midpoint), and available liquidity is ~ $133.5M (cash $14.6M plus $118.9M undrawn facility), with consensus near $2.51 (some estimates ~ $2.40), putting the new midpoint broadly in line.NexPoint Residential Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.99M | 251.28M | 259.70M | 277.53M | 263.95M | 219.24M |
| Gross Profit | 231.60M | 211.72M | 146.47M | 157.58M | 143.89M | 117.05M |
| EBITDA | 370.02M | 124.46M | 202.99M | 250.01M | 138.94M | 137.39M |
| Net Income | -33.46M | -32.03M | 1.11M | 44.26M | -9.26M | 23.04M |
Balance Sheet | ||||||
| Total Assets | 1.88B | 1.89B | 1.91B | 2.11B | 2.23B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 14.63M | 13.70M | 23.15M | 12.37M | 127.84M | 53.24M |
| Total Debt | 1.59B | 1.56B | 1.46B | 1.48B | 1.60B | 1.55B |
| Total Liabilities | 1.63B | 1.59B | 1.49B | 1.61B | 1.70B | 1.59B |
| Stockholders Equity | 247.86M | 295.50M | 410.37M | 494.62M | 519.67M | 469.85M |
Cash Flow | ||||||
| Free Cash Flow | 66.47M | 83.59M | 73.57M | 96.58M | 79.10M | 73.27M |
| Operating Cash Flow | 83.14M | 83.59M | 73.57M | 96.58M | 79.10M | 73.27M |
| Investing Cash Flow | -135.88M | -115.75M | 130.62M | 51.92M | -162.30M | -235.91M |
| Financing Cash Flow | 57.33M | 23.42M | -195.55M | -155.02M | 46.31M | 194.32M |
NexPoint Residential Technical Analysis
Negative
26.07
Price Trends
26.28
Negative
26.91
Negative
27.47
Negative
Market Momentum
-0.60
Negative
39.92
Neutral
56.43
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 26.07 is above the 20-day moving average (MA) of 24.78, below the 50-day MA of 26.28, and below the 200-day MA of 27.47, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 56.43 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 85 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% | |
64 Neutral | $1.41B | 92.56 | 3.47% | 5.79% | 8.37% | -7.09% | |
59 Neutral | $952.74M | 41.43 | 3.03% | 5.53% | 30.53% | ― | |
51 Neutral | $374.71M | 0.64 | 105.03% | 188.64% | -16.20% | 99.72% | |
51 Neutral | $284.53M | -20.84 | -7.46% | 6.98% | 1.18% | -39.73% | |
47 Neutral | $626.95M | -18.48 | -11.75% | 7.98% | -0.46% | 32.70% |
* Real Estate Sector Average
NXRT
NexPoint Residential
24.21
-7.32
-23.22%
AIV
Apartment Investment & Management
2.53
-0.40
-13.68%
UMH
Umh
16.66
1.88
12.72%
CSR
Centerspace
53.42
-2.34
-4.20%
BRT
BRT Apartments
14.59
-0.10
-0.67%
NexPoint Residential Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NexPoint Residential enters key loan acquisition agreement
Positive
Jun 9, 2026
On June 5, 2026, NexPoint Residential Trust’s operating partnership purchased for $27.2 million all of NexBank Capital’s interests in a term loan used to finance Waterford Place, a 240-unit stabilized multifamily property in the Greens...
Executive/Board ChangesShareholder Meetings
NexPoint Residential Shareholders Back Board, Pay and Auditor
Positive
Jun 2, 2026
At its June 2, 2026 annual meeting, NexPoint Residential stockholders elected all nominated directors to terms expiring at the 2027 meeting, with varying levels of support but no contests, confirming the existing board slate. Shareholders also app...
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.