NexPoint Residential Trust, Inc. Completes the Sale of Silverbrook and Further Paydown of the Corporate Credit Facility

Rhea-AI Summary

NexPoint Residential Trust, Inc. announced the closing of the sale of Silverbrook in Dallas, TX, for $30.4M, delivering a 34.0% levered internal rate of return and a 6.14x equity multiple. Net proceeds were $19.5M, reducing the drawn balance on the facility to $41M, an 88% reduction from September 30, 2022.

Positive

• Successful sale of Silverbrook property with high returns and reduced debt balance.

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• None.

DALLAS, Sept. 25, 2023 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today the closing of the sale of Silverbrook in Dallas, TX, a 642-unit property built in 1982.  The Company acquired the property for $30.4 million on January 31, 2014, and completed an extensive repositioning and value-add initiative, improving the common area amenities and a significant portion of the unit interiors.  As of September 22, 2023, the property was leased at 93.76% with a weighted average effective monthly rent of approximately $1,096.  Net proceeds from the sale were approximately $19.5M, delivering a trailing nominal cap rate of 4.55%, a 34.0% levered internal rate of return and a 6.14x equity multiple, each of which well exceeded expectations.  Management used the net proceeds from the sale to make a $16 million paydown on the Company's corporate credit facility on September 25, 2023, continuing our strategic de-leveraging and balance sheet improvement initiatives. This paydown reduced the drawn balance on the facility to $41 million, an 88% reduction from September 30, 2022.

Additionally, the Company is still on track to sell Old Farm in Houston, TX, with an expected closing in early Q4 2023.

With the completion of these sales, the Company remains committed to paying off the outstanding balance on the corporate credit facility in early Q4.

"NXRT is excited about the closing of Silverbrook and continues executing on our strategic objectives to sell out of our positions in the Houston market, Timber Creek and Radbourne in Charlotte and pay off our most expensive debt capital.  NXRT is committed to unlocking liquidity the Company can use to repurchase shares and/or pay off higher property-level debt that will be accretive to future growth.," said Matt McGraner, Chief Investment Officer.

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 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.

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 "expect," "should," "continue" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the expected closing of the sale of Old Farm, the expected payoff of the corporate credit facility and related timing , continuing to execute on its strategic objectives, and that NXRT is committed to unlocking liquidity which the Company can use to repurchase common stock and/or pay off higher property-level debt that will be accretive to future growth pursue internal and external growth strategies. 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 that the Old Farm sale does not close or  is delayed and those described 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.

Contact:
Kristen Thomas
Investor Relations
IR@nexpoint.com

 

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SOURCE NexPoint Residential Trust, Inc.