NexPoint Residential Trust, Inc. Completes Refinancings of 17 Properties
NexPoint Residential Trust (NXRT) has completed refinancing 17 properties through JP Morgan Chase Bank. Combined with previous refinancings, the company has refinanced 34 loans totaling $1.469 billion, representing 97.8% of total outstanding debt. The refinancing improves interest rates and extends weighted average debt maturity to 6.82 years from 5.54 years. The company's weighted average interest rate on total debt reduces by 48 bps to 5.65%, and adjusted for swap contracts, decreases from 3.44% to 2.95%. NXRT now has no significant debt maturities until 2028.
NexPoint Residential Trust (NXRT) ha completato il rifinanziamento di 17 proprietà tramite JP Morgan Chase Bank. Combinato con i precedenti rifinanziamenti, l'azienda ha rifinanziato 34 prestiti per un totale di 1,469 miliardi di dollari, che rappresentano il 97,8% del debito totale in essere. Il rifinanziamento migliora i tassi d'interesse e estende la scadenza media ponderata del debito a 6,82 anni da 5,54 anni. Il tasso d'interesse medio ponderato dell'azienda sul debito totale si riduce di 48 punti base a 5,65%, e, aggiustato per i contratti di swap, diminuisce dal 3,44% al 2,95%. NXRT ora non ha significative scadenze di debito fino al 2028.
NexPoint Residential Trust (NXRT) ha completado el refinanciamiento de 17 propiedades a través de JP Morgan Chase Bank. Combinado con refinanciamientos anteriores, la compañía ha refinanciado 34 préstamos por un total de 1.469 mil millones de dólares, representando el 97.8% de la deuda total pendiente. El refinanciamiento mejora las tasas de interés y extiende el vencimiento promedio ponderado de la deuda a 6.82 años desde 5.54 años. La tasa de interés promedio ponderada de la compañía sobre la deuda total se reduce en 48 puntos básicos a 5.65%, y ajustada por contratos de swaps, disminuye del 3.44% al 2.95%. NXRT ahora no tiene vencimientos de deuda significativos hasta 2028.
NexPoint Residential Trust (NXRT)는 JP Morgan Chase Bank를 통해 17개 부동산의 재융자를 완료했습니다. 이전 재융자와 결합하여 회사는 총 14억 6,900만 달러의 34개의 대출을 재융자했습니다. 이는 전체 미지급 부채의 97.8%를 차지합니다. 재융자는 이자율을 개선하고 가중 평균 채무 만기를 5.54년에서 6.82년으로 연장합니다. 회사의 전체 부채에 대한 가중 평균 이자율은 48bp 낮아져 5.65%가 되며, 스왑 계약을 감안할 경우 3.44%에서 2.95%로 감소합니다. NXRT는 이제 2028년까지 중요한 부채 만기가 없습니다.
NexPoint Residential Trust (NXRT) a complété le refinancement de 17 propriétés via JP Morgan Chase Bank. En combinant avec des refinancements antérieurs, l'entreprise a refinancé 34 prêts pour un total de 1,469 milliard de dollars, représentant 97,8% de la dette totale en cours. Le refinancement améliore les taux d'intérêt et prolonge la maturité moyenne pondérée de la dette à 6,82 ans contre 5,54 ans. Le taux d'intérêt moyen pondéré de l'entreprise sur la dette totale diminue de 48 points de base à 5,65%, et ajusté pour les contrats d'échange, il diminue de 3,44% à 2,95%. NXRT n'a désormais plus d'échéances de dette significatives jusqu'en 2028.
NexPoint Residential Trust (NXRT) hat die Refinanzierung von 17 Immobilien über die JP Morgan Chase Bank abgeschlossen. In Kombination mit früheren Refinanzierungen hat das Unternehmen insgesamt 34 Kredite im Wert von 1,469 Milliarden Dollar refinanziert, was 97,8% der insgesamt ausstehenden Schulden entspricht. Die Refinanzierung verbessert die Zinssätze und verlängert die gewichtete durchschnittliche Laufzeit der Schulden von 5,54 Jahren auf 6,82 Jahre. Der gewichtete durchschnittliche Zinssatz auf die Gesamtschulden des Unternehmens sinkt um 48 Basispunkte auf 5,65%, und, angepasst an Swap-Verträge, sinkt er von 3,44% auf 2,95%. NXRT hat jetzt bis 2028 keine nennenswerten Fälligkeiten von Schulden.
- Refinanced 97.8% of total outstanding debt ($1.469 billion)
- Extended weighted average debt maturity to 6.82 years from 5.54 years
- Reduced weighted average interest rate by 48 basis points to 5.65%
- Adjusted weighted average interest rate decreased to 2.95% from 3.44%
- No meaningful debt maturities until 2028
- Total indebtedness remains high at $1.503 billion
- 72.6% of $1.469 billion floating rate debt exposed to interest rate risk
Insights
The comprehensive refinancing of 97.8% of NXRT's debt portfolio, totaling
The floating-rate structure combined with extensive interest rate swap coverage (
This refinancing strengthens NXRT's position in the multifamily REIT sector by improving its debt profile across 34 properties. The reduced interest expense and extended maturity schedule enhance operational flexibility and cash flow stability. The weighted average fixed rate of
With the closing of these 17 loan agreements, and together with the 17 loan agreements previously entered on October 1, 2024, the Company has refinanced 34 loans for total gross proceeds of
Holistically, these refinancings are expected to reduce NXRT's weighted average interest rate on total debt by 48 bps to
"NXRT is pleased to announce the completion of the second half of this significant refinancing initiative, continuing to fortify our balance sheet and strengthen our relationship with JP Morgan. We identified this refinancing opportunity early in the year and we are thrilled to deliver what we believe to be a building block for growth and an excellent result for shareholders." said Matt McGraner, Chief Investment Officer.
Outstanding Debt Details | |||||||||||
Mortgage Debt | |||||||||||
The following table contains summary information concerning the mortgage debt of the Company as of November 26, 2024 ($ in 000s): | |||||||||||
Operating Properties | Type | Term | Outstanding | Interest Rate (2) | Maturity Date | ||||||
Arbors on Forest Ridge | Floating | 84 | $ 17,307 | 5.68 % | 12/1/2031 | (3) | |||||
Cutter's Point | Floating | 84 | 18,994 | 5.68 % | 12/1/2031 | (3) | |||||
The Summit at Sabal Park | Floating | 84 | 26,735 | 5.68 % | 12/1/2031 | (3) | |||||
Courtney Cove | Floating | 84 | 31,596 | 5.68 % | 12/1/2031 | (3) | |||||
The Preserve at Terrell Mill | Floating | 84 | 74,341 | 5.68 % | 12/1/2031 | (3) | |||||
Floating | 84 | 26,108 | 5.68 % | 12/1/2031 | (3) | ||||||
Seasons 704 Apartments | Floating | 84 | 33,960 | 5.68 % | 12/1/2031 | (3) | |||||
Madera Point | Floating | 84 | 29,676 | 5.68 % | 12/1/2031 | (3) | |||||
Venue at 8651 | Floating | 84 | 24,620 | 5.68 % | 12/1/2031 | (3) | |||||
Parc500 | Floating | 84 | 30,012 | 5.68 % | 12/1/2031 | (3) | |||||
Rockledge Apartments | Floating | 84 | 78,444 | 5.68 % | 12/1/2031 | (3) | |||||
Atera Apartments | Floating | 84 | 38,555 | 5.68 % | 12/1/2031 | (3) | |||||
Torreyana Apartments | Floating | 84 | 43,153 | 5.68 % | 12/1/2031 | (3) | |||||
Bloom | Floating | 84 | 60,848 | 5.68 % | 12/1/2031 | (3) | |||||
Bella Solara | Floating | 84 | 37,772 | 5.68 % | 12/1/2031 | (3) | |||||
Fairways at | Floating | 84 | 55,056 | 5.68 % | 12/1/2031 | (3) | |||||
Creekside at Matthews | Floating | 84 | 28,703 | 5.68 % | 12/1/2031 | (3) | |||||
The Venue on Camelback | Floating | 84 | 36,465 | 5.68 % | 9/30/2031 | ||||||
Sabal Palm at Lake Buena Vista | Floating | 84 | 56,220 | 5.68 % | 9/30/2031 | ||||||
Cornerstone | Floating | 84 | 45,815 | 5.68 % | 9/30/2031 | ||||||
Versailles II | Floating | 84 | 15,706 | 5.68 % | 9/30/2031 | ||||||
Brandywine I & II | Floating | 84 | 59,526 | 5.68 % | 9/30/2031 | ||||||
Bella Vista | Floating | 84 | 37,400 | 5.68 % | 9/30/2031 | ||||||
The Enclave | Floating | 84 | 33,440 | 5.68 % | 9/30/2031 | ||||||
The Heritage | Floating | 84 | 29,810 | 5.68 % | 9/30/2031 | ||||||
Summers Landing | Floating | 84 | 14,135 | 5.68 % | 9/30/2031 | ||||||
Residences at Glenview Reserve | Floating | 84 | 33,271 | 5.68 % | 9/30/2031 | ||||||
Avant at Pembroke Pines | Floating | 84 | 248,185 | 5.68 % | 9/30/2031 | ||||||
Arbors of Brentwood | Floating | 84 | 39,977 | 5.68 % | 9/30/2031 | ||||||
The Verandas at Lake Norman | Floating | 84 | 30,113 | 5.68 % | 9/30/2031 | ||||||
Six Forks Station | Floating | 84 | 30,430 | 5.68 % | 9/30/2031 | ||||||
High House at Cary | Floating | 84 | 32,478 | 5.68 % | 9/30/2031 | ||||||
The Adair | Floating | 84 | 33,229 | 5.68 % | 9/30/2031 | ||||||
Estates on | Floating | 84 | 37,345 | 5.68 % | 9/30/2031 | ||||||
Residences at West Place | Fixed | 120 | 33,817 | 4.24 % | 10/1/2028 | ||||||
$ 1,503,242 | 5.65 % | ||||||||||
(1) | Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties. |
(2) | Interest rate is based on a reference rate plus an applicable margin, except for fixed-rate mortgage debt. 30-Day Average SOFR was |
(3) | The Company finalized a 7-year term refinance on 17 properties at SOFR plus a |
Interest Rate Swap Agreements
As of November 26, 2024, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):
Effective Date | Termination Date | Counterparty | Notional Amount | Fixed Rate (1) | |||||||||
September 1, 2019 | September 1, 2026 | KeyBank | 100,000 | 1.4620 | % | ||||||||
September 1, 2019 | September 1, 2026 | KeyBank | 125,000 | 1.3020 | % | ||||||||
January 3, 2020 | September 1, 2026 | KeyBank | 92,500 | 1.6090 | % | ||||||||
March 4, 2020 | June 1, 2026 | Truist | 100,000 | 0.8200 | % | ||||||||
June 1, 2021 | September 1, 2026 | KeyBank | 200,000 | 0.8450 | % | ||||||||
June 1, 2021 | September 1, 2026 | KeyBank | 200,000 | 0.9530 | % | ||||||||
March 1, 2022 | March 1, 2025 | Truist | 145,000 | 0.5730 | % | ||||||||
March 1, 2022 | March 1, 2025 | Truist | 105,000 | 0.6140 | % | ||||||||
1,067,500 | 0.9807 | % | (2) | ||||||||||
(1) | The floating rate option for the interest rate swaps is the daily compounded average of SOFR plus a |
(2) | Represents the weighted average fixed rate of the interest rate swaps. |
As of November 26, 2024 we had total indebtedness of
About NXRT
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
Cautionary Statement Regarding Forward-Looking Statements
This press 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," "continue," "expect," "will," "plan" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the expected reduction in NXRT's weighted average interest rate before and after the effect of interest rate swaps, the belief that the refinancings will continue to fortify our balance sheet and strengthen our relationship with JP Morgan and the belief that the refinancings is a building block for growth. 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 those described in our filings with the Securities and Exchange Commission (the "SEC"), 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.
Contact:
Kristen Griffith
Investor Relations
IR@nexpoint.com
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SOURCE NexPoint Residential Trust, Inc.
FAQ
What is the total value of NXRT's refinancing completed in November 2024?
How did NXRT's debt maturity schedule change after the November 2024 refinancing?
What is NXRT's new weighted average interest rate after the November 2024 refinancing?
