NexPoint Residential Trust, Inc. Reports Third Quarter 2021 Results

Rhea-AI Summary

NexPoint Residential Trust (NYSE:NXRT) reported a third quarter 2021 net loss of $(5.4) million, compared to a net income of $29.6 million in Q3 2020. FFO for Q3 2021 was $16.1 million, down from $17.2 million, while AFFO rose to $18.6 million, compared to $15.1 million a year prior. Total revenues increased to $56.4 million from $51.0 million. Year-to-date, NXRT reported a net loss of $(15.7) million versus $48.2 million in 2020. The company declared a quarterly dividend of $0.38, marking an 11.4% increase. The occupancy rate stood at 95.3% with an average monthly rent of $1,204.

Positive

• Total revenues increased to $56.4 million in Q3 2021, up from $51.0 million in Q3 2020.
• AFFO rose to $18.6 million for Q3 2021, compared to $15.1 million for Q3 2020.
• Achieved average monthly rent of $1,204 across 40 properties.
• Occupancy rate of 95.3%, showing strong demand.
• Quarterly dividend increased by 11.4% to $0.38 per share.

Negative

• Reported a net loss of $(5.4) million in Q3 2021, compared to a net income of $29.6 million in Q3 2020.
• FFO decreased to $16.1 million in Q3 2021 from $17.2 million in Q3 2020.
• Year-to-date, reported a net loss of $(15.7) million compared to a net income of $48.2 million in 2020.

DALLAS, Nov. 2, 2021 NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the third quarter ended September 30, 2021.

Highlights

• NXRT¹ reported Net Loss, FFO², Core FFO² and AFFO² of $(5.4)M, $16.1M, $16.4M and $18.6M, respectively, attributable to common stockholders for the quarter ended September 30, 2021, compared to Net Income, FFO, Core FFO, and AFFO of $29.6M, $17.2M, $13.3M and $15.1M, respectively, attributable to common stockholders for the quarter ended September 30, 2020.
• NXRT reported 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, compared to Net Income, FFO, Core FFO, and AFFO of $48.2M, $41.6M, $41.3M and $46.5M, respectively, attributable to common stockholders for the nine months ended September 30, 2020.
• For the three months ended September 30, 2021, Q3 Same Store properties³ average effective rent, total revenue and NOI² increased 6.8%, 5.3% and 6.6%, respectively, and occupancy increased 40 bps over the prior year period.
• For the nine months ended September 30, 2021, YTD Same Store properties³ average effective rent, total revenue and NOI² increased 6.8%, 3.6% and 2.4%, respectively, and occupancy increased 40 bps over the prior year period.
• The weighted average effective monthly rent per unit across all 40 properties held as of September 30, 2021 (the "Portfolio"), consisting of 15,032⁴ units, was $1,204, while physical occupancy was 95.3%.
• On September 10, 2021, NXRT acquired Six Forks Station located in Raleigh, North Carolina for a gross purchase price of $74.76 million.
• NXRT paid a third quarter dividend of $0.34125 per share of common stock on September 30, 2021.
• On October 29, 2021, the Company's board approved a quarterly dividend of $0.38 per share, an 11.4% increase from the previous dividend per share. Since inception, NXRT has increased the dividend per share by 84.5%.
• During the three months ended September 30, 2021, through its at-the-market offering ("ATM program"), NXRT issued 101,587 shares for approximately $6.7 million in gross proceeds.
• During the third quarter, for the properties in our Portfolio, we completed 290 full and partial upgrades and leased 349 upgraded units, achieving an average monthly rent premium of $172 and a 21.2% ROI⁵.
• Since inception, for the properties currently in our Portfolio, we have completed 5,979 full and partial upgrades, 4,554 kitchen and laundry appliances, and 10,134 technology packages, resulting in a $134, $47, and $43 average monthly rental increase per unit and a 21.5%, 72.7%, and 35.0% 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 income (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 35 properties encompassing 13,576 units of apartment space in our Same Store pool for the three months ended September 30, 2021 (our "Q3 Same Store" properties) and 35 properties encompassing 13,576 units of apartment space in our Same Store pool for the nine months ended September 30, 2021 (our "YTD Same Store" properties). The same store unit count excludes 81 units that are currently down due to fires and winter storm Uri in February 2021 (Hollister Place: 34 units, Atera: 18 units, Timber Creek: 16 units, Venue at 8651: 8 units and Preserve at Terrell Mill: 5 units).
4)	Total units owned in our Portfolio is 15,032, however 89 units are currently down due to fires, a tornado, and winter storm Uri (Hollister Place: 34 units, Atera: 18 units, Timber Creek: 16 units, Cutter's Point: 8 units, Venue at 8651: 8 units and Preserve at Terrell Mill: 5 units).
5)	We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost.

Third Quarter 2021 Financial Results

• Total revenues were $56.4 million for the third quarter of 2021, compared to $51.0 million for the third quarter of 2020.
• Net loss for the third quarter of 2021 totaled $(5.4) million, or loss of $(0.21) per diluted share, which included $21.6 million of depreciation and amortization expense. This compared to a net income of $29.6 million, or earnings of $1.19 per diluted share, for the third quarter of 2020, which included $17.7 million of depreciation and amortization expense.
• The change in our net loss of $(5.4) million for the three months ended September 30, 2021 as compared to our net income of $29.6 million for the three months ended September 30, 2020 primarily relates to decreases in gain on sales of real estate and casualty gains, partially offset by an increase in total revenues.
• For the third quarter of 2021, NOI was $33.6 million on 40 properties, compared to $29.3 million for the third quarter of 2020 on 36 properties.
• For the third quarter of 2021, Q3 Same Store NOI increased 6.6% to $30.3 million, compared to $28.4 million for the third quarter of 2020.
• For the third quarter of 2021, FFO totaled $16.1 million, or $0.64 per diluted share, compared to $17.2 million, or $0.69 per diluted share, for the third quarter of 2020.
• For the third quarter of 2021, Core FFO totaled $16.4 million, or $0.65 per diluted share, compared to $13.3 million, or $0.53 per diluted share, for the third quarter of 2020.
• For the third quarter of 2021, AFFO totaled $18.6 million, or $0.74 per diluted share, compared to $15.1 million, or $0.60 per diluted share, for the third quarter of 2020.

2021 Year to Date Financial Results

• Total revenues were $160.7 million for the nine months ended September 30, 2021, compared to $154.3 million for the nine months ended September 30, 2020.
• Net loss for the nine months ended September 30, 2021 totaled $(15.7) million, or loss of $(0.62) per diluted share, which included $62.3 million of depreciation and amortization expense. This compared to net income of $48.2 million, or earnings of $1.91 per diluted share, for the nine months ended September 30, 2020, which included a gain on sales of real estate of $69.2 million and $62.5 million of depreciation and amortization expense.
• The change in our net loss of $(15.7) million for the nine months ended September 30, 2021 as compared to our net income of $48.4 million for the nine months ended September 30, 2020 primarily relates to decreases in gains on sales of real estate and casualty gains, partially offset by an increase in total revenues.
• For the nine months ended September 30, 2021, NOI was $93.6 million on 40 properties, compared to $89.9 million for the nine months ended September 30, 2020 on 36 properties.
• For the nine months ended September 30, 2021, Same Store NOI increased 2.4% to $87.5 million, compared to $85.5 million for the nine months ended September 30, 2020.
• For the nine months ended September 30, 2021, FFO totaled $46.5 million, or $1.85 per diluted share, compared to $41.6 million, or $1.65 per diluted share, for the nine months ended September 30, 2020.
• For the nine months ended September 30, 2021, Core FFO totaled $44.7 million, or $1.78 per diluted share, compared to $41.3 million, or $1.64 per diluted share, for the nine months ended September 30, 2020.
• For the nine months ended September 30, 2021, AFFO totaled $51.0 million, or $2.03 per diluted share, compared to $46.5 million, or $1.85 per diluted share, for the nine months ended September 30, 2020.

Third Quarter Earnings Conference Call

NXRT will host a conference call on Tuesday, November 2, 2021 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 800-353-6461 or, for international callers, +1 334-323-0501 and using passcode Conference ID: 8698173. A live audio webcast of the call will be available online at the Company's website, http://nxrt.nexpoint.com. 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 9, 2021 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 8698173.

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. Our filings with the Securities and Exchange Commission (the "SEC") are available on our website, nxrt.nexpoint.com, under the "Financials" tab.

Cautionary Statement Regarding Forward-Looking Statements

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 "expect," "anticipate," "estimate," "may," "should," "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, 2021 full year guidance and the related components and assumptions, including the effects of tornado damage, fires and winter storm Uri, acquisitions and dispositions, shares outstanding and operating expenses, including real estate taxes, the expectation that NXRT will meet or exceed its preliminary budgeted expectations for real estate tax expense in 2021, NXRT's net asset value and the related components and assumptions, including pro forma adjustments for acquisitions and dispositions, estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, guidance for the fourth quarter 2021 and the related assumptions, the repayment of $50.0 million of term loans, 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 geographic spread, 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 specifically 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.

FFO, Core FFO and AFFO

The following table reconciles our calculations of FFO, Core FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share amounts):

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2021				2020				2021				2020				% Change (1)
Net income (loss)		$	(5,407)			$	29,641			$	(15,725)			$	48,362			N/M
Depreciation and amortization			21,591				17,723				62,335				62,479				-0.2	%
Gain on sales of real estate			—				(30,160)				—				(69,151)			N/M
Adjustment for noncontrolling interests			(49)				(52)				(140)				(125)				12.0	%
FFO attributable to common stockholders			16,135				17,152				46,470				41,565				11.8	%
FFO per share - basic		$	0.64			$	0.70			$	1.85			$	1.68				10.1	%
FFO per share - diluted		$	0.64			$	0.69			$	1.85			$	1.65				12.1	%
Loss on extinguishment of debt and modification costs			—				596				328				1,470			N/M
Casualty-related expenses/(recoveries)			120				(47)				(272)				726			N/M
Casualty gains			—				(4,960)				(2,379)				(3,932)				-39.5	%
Pandemic expense	(2)		11				191				46				475			N/M
Amortization of deferred financing costs - acquisition term notes			150				345				499				1,039			N/M
Adjustment for noncontrolling interests			—				11				6				2			N/M
Core FFO attributable to common stockholders			16,416				13,288				44,698				41,345				8.1	%
Core FFO per share - basic		$	0.65			$	0.55			$	1.78			$	1.67				6.6	%
Core FFO per share - diluted		$	0.65			$	0.53			$	1.78			$	1.64				8.5	%
Amortization of deferred financing costs - long term debt			375				357				1,082				1,102				-1.8	%
Equity-based compensation expense			1,807				1,434				5,211				4,069				28.1	%
Adjustment for noncontrolling interests			(7)				(5)				(19)				(15)				26.7	%
AFFO attributable to common stockholders			18,591				15,074				50,972				46,501				9.6	%
AFFO per share - basic		$	0.74			$	0.62			$	2.03			$	1.88				8.0	%
AFFO per share - diluted		$	0.74			$	0.60			$	2.03			$	1.85				9.7	%
Weighted average common shares outstanding - basic			25,175				24,372				25,128				24,688				1.8	%
Weighted average common shares outstanding - diluted			25,175				24,926				25,128				25,194				-0.3	%
Dividends declared per common share		$	0.34125			$	0.3125			$	1.0238			$	0.938				9.1	%
FFO Coverage - diluted	(3)	1.88x				2.20x				1.81x				1.76x					2.73	%
Core FFO Coverage - diluted	(3)	1.91x				1.71x				1.74x				1.75x					-0.55	%
AFFO Coverage - diluted	(3)	2.16x				1.94x				1.98x				1.97x					0.54	%

(1)	Represents the percentage change for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.
(2)	Represents additional cleaning, disinfecting, personal protection equipment ("PPE") and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.
(3)	Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

 

Definitions and Reconciliations of Non-GAAP Measures

Definitions

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, (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, (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 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, 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 combined amounts 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), 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 (as described above) 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.

Reconciliations

NOI and Same Store NOI for the three months ended June 30, 2021

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our Q2 Same Store NOI for the three months ended June 30, 2021 to net loss, the most directly comparable GAAP financial measure (in thousands):

		For the Three Months Ended
		June 30, 2021
Net loss		$(3,418)
Adjustments to reconcile net loss to NOI:
Advisory and administrative fees		1,900
Corporate general and administrative expenses		2,978
Casualty-related recoveries	(1)	(435)
Casualty gain		(2,379)
Pandemic expense	(2)	12
Property general and administrative expenses	(3)	374
Depreciation and amortization		19,986
Interest expense		10,683
Loss on extinguishment of debt and modification costs		328
NOI		$30,029
Less Non-Same Store
Revenues		(1,681)
Operating expenses		620
Operating income		(304)
Same Store NOI		$28,664

(1)	Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses.
(2)	Represents additional cleaning, disinfecting, PPE and other costs incurred at the properties related to COVID-19.
(3)	Adjustment to net 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 and franchise tax fees.

 

NOI and Same Store NOI for the year ended December 31, 2020

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our YTD Same Store NOI for the year ended December 31, 2020 to net income, the most directly comparable GAAP financial measure (in thousands):

		For the Year Ended
		December 31, 2020
Net income		$44,150
Adjustments to reconcile net income to NOI:
Advisory and administrative fees		7,670
Corporate general and administrative expenses		10,035
Casualty-related expenses	(1)	790
Casualty gains		(5,886)
Miscellaneous income		(1,772)
Pandemic expense	(2)	510
Property general and administrative expenses	(3)	1,112
Depreciation and amortization		82,411
Interest expense		44,753
Loss on extinguishment of debt and modification costs		1,470
Gain on sales of real estate		(69,151)
NOI		$116,092
Less Non-Same Store
Revenues		(82,585)
Operating expenses		34,643
Same Store NOI		$68,150

(1)	Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses.
(2)	Represents additional cleaning, disinfecting, PPE and other costs incurred at the properties related to COVID-19.
(3)	Adjustment to net 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 and franchise tax fees.

 

Reconciliation of Debt to Net Debt

(dollar amounts in thousands)		Q3 2021				Q3 2020
Total mortgage debt		$	1,275,501			$	1,121,805
Credit facilities			275,000				215,000
Total debt outstanding			1,550,501				1,336,805
Adjustments to arrive at net debt:
Cash and cash equivalents			(18,413)				(70,282)
Restricted cash held for value-add upgrades and green improvements			(14,506)				(11,918)
Net Debt		$	1,517,582			$	1,254,605
Enterprise Value (1)		$	3,080,582			$	2,342,605
Leverage Ratio			49	%			54	%

(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, 2021				For the Three Months Ended December 31, 2021
		Mid-Point (1)				Mid-Point (1)
Net income		$	21,255			$	36,982
Adjustments to reconcile net income to NOI:
Advisory and administrative fees			7,607				1,901
Corporate general and administrative expenses			12,298				3,228
Property general and administrative expenses	(2)		1,435				—
Depreciation and amortization			87,829				25,494
Interest expense			44,549				11,719
Casualty-related recoveries			(2,379)				—
Loss on extinguishment of debt and modification costs			503				175
Gain on sales of real estate			(46,157)				(46,157)
NOI	(3)	$	126,940			$	33,342
Less Non-Same Store
Revenues	(4)		(18,583)
Operating expenses	(4)		6,706
Operating income	(4)		(907)
Same Store NOI		$	114,156

(1)	Mid-Point estimates shown for full year and fourth quarter 2021 guidance. Assumptions made for full year and fourth quarter 2021 NOI guidance include the Same Store operating growth projections included in the "2021 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 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 and franchise tax fees.
(3)	2021 Pro Forma NOI Guidance takes into effect the acquisitions of Creekside at Matthews, The Verandas at Lake Norman and Six Forks Station as if they were purchased on January 1, 2021, which we estimate would have contributed approximately an additional $1,100, $1,000 and $2,300, respectively, to NOI. Additionally, 2021 Pro Forma NOI Guidance takes into effect the dispositions of Beechwood Terrace and Cedar Pointe as if they were disposed of on December 31, 2021 which we estimate would have contributed approximately an additional $600 to NOI.
(4)	Amounts are derived from the results of operations of our pro forma Full Year 2021 Same Store properties and Non-Same Store properties. There are 33 properties in our pro forma Full Year 2021 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, 2021 (in thousands, except per share data):

		For the Year Ended December 31, 2021
		Mid-Point
Net income		$	21,255
Depreciation and amortization			87,829
Gain on sales of real estate			(46,157)
Adjustment for noncontrolling interests			(185)
FFO attributable to common stockholders			62,742
FFO per share - diluted (2)		$	2.44
Loss on extinguishment of debt and modification costs			503
Casualty-related recoveries			(2,606)
Amortization of deferred financing costs - acquisition term notes			650
Pandemic expense (1)			46
Adjustment for noncontrolling interests			6
Core FFO attributable to common stockholders			61,341
Core FFO per share - diluted (2)		$	2.38
Amortization of deferred financing costs - long term debt			1,457
Equity-based compensation expense			6,990
Adjustment for noncontrolling interests			(26)
AFFO attributable to common stockholders			69,762
AFFO per share - diluted (2)		$	2.71
Weighted average common shares outstanding - diluted			25,750

(1)	Represents additional cleaning, disinfecting, PPE and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties
(2)	For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 25.8 million for the full year 2021.

 

Contact:
Investor Relations
Jackie Graham
JGraham@nexpoint.com
(214) 276-6300
Media inquiries: JGraham@nexpoint.com 

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SOURCE NexPoint Residential Trust, Inc.

FAQ

What were the financial highlights for NXRT in Q3 2021?

NexPoint Residential Trust reported a net loss of $(5.4) million, FFO of $16.1 million, AFFO of $18.6 million, and total revenues of $56.4 million.

How did NXRT's occupancy rate perform in Q3 2021?

NXRT's occupancy rate was 95.3% in Q3 2021.

What recent dividend increase did NXRT announce?

NXRT announced a quarterly dividend of $0.38 per share, an increase of 11.4%.

How much was NXRT's average monthly rent per unit as of September 30, 2021?

The average monthly rent per unit across NXRT's portfolio was $1,204.

What was the net loss reported by NXRT for the nine months ended September 30, 2021?

For the nine months ended September 30, 2021, NXRT reported a net loss of $(15.7) million.