NexPoint Residential Trust (NYSE:NXRT – Get Free Report) announced its quarterly earnings results on Tuesday. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.93, Zacks reports. NexPoint Residential Trust had a negative net margin of 13.22% and a negative return on equity of 11.75%. The firm had revenue of $64.47 million for the quarter, compared to the consensus estimate of $64.72 million.
Here are the key takeaways from NexPoint Residential Trust’s conference call:
- Third-quarter results missed expectations: Core FFO was $0.52 per share, $0.07 below consensus, while same-store NOI declined 8.2% as occupancy fell to 92.9% and expenses rose 11.2%.
- Management cut full-year Core FFO guidance to a midpoint of $2.22 per share from $2.45 and lowered same-store NOI guidance to a midpoint decline of 4.3%. Fourth-quarter Core FFO is expected to be about $0.35 per share, below the $0.53 dividend, raising the possibility of a dividend reset in early 2027.
- Higher interest rates are increasing financial pressure: the adjusted weighted-average interest rate rose to 4.75%, net NAV leverage increased to 62% from 57%, and management acknowledged that leverage is too high for the current rate environment.
- Operating trends remain mixed, with October lease occupancy at 94.6%, improved retention and better tour-to-application conversion, but elevated concessions and weak new-lease pricing. Management expects occupancy to improve as supply growth slows, with deliveries in its submarkets down 42% from the 2024 peak and 2028 deliveries projected to be the lowest of the cycle.
- NXRT acquired the 228-unit Midtown Crossing community in Raleigh for $32 million and plans to pair it with dispositions, use proceeds to reduce debt, and potentially repurchase up to $150 million of stock. Management believes the shares trade substantially below estimated NAV of $38.33 per share, versus a market price near $18.
NexPoint Residential Trust Price Performance
Shares of NYSE:NXRT opened at $16.43 on Wednesday. The firm’s 50 day moving average price is $20.49 and its 200-day moving average price is $25.80. NexPoint Residential Trust has a twelve month low of $16.23 and a twelve month high of $32.36. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 6.41. The stock has a market capitalization of $419.91 million, a PE ratio of 6.24, a price-to-earnings-growth ratio of 0.31 and a beta of 1.15.
NexPoint Residential Trust Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 12.9%. The ex-dividend date is Tuesday, December 15th. NexPoint Residential Trust’s dividend payout ratio is -159.40%.
Insider Activity
In related news, insider Matt Mcgraner bought 5,500 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The shares were bought at an average cost of $18.42 per share, with a total value of $101,310.00. Following the acquisition, the insider owned 361,605 shares in the company, valued at $6,660,764.10. This trade represents a 1.54% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 16.63% of the company’s stock.
NexPoint Residential Trust News Roundup
Here are the key news stories impacting NexPoint Residential Trust this week:
- Positive Sentiment: NXRT authorized up to $150 million in share buybacks, which could support shareholder returns. Article: NexPoint Residential forecasts 2026 core FFO, weighs dividend reset and authorizes buybacks
- Negative Sentiment: The company reported a third-quarter net loss of $11.5 million, wider than the $7.8 million loss a year earlier. Core FFO fell to $13.4 million from $17.7 million. Article: NexPoint Residential Trust reports third-quarter 2026 results
- Negative Sentiment: Per-share FFO of $0.52 missed the $0.54 consensus and was down from $0.80 a year earlier. Revenue also came in slightly below analyst expectations. Article: NexPoint Residential Trust misses Q3 FFO and revenue estimates
- Negative Sentiment: NXRT forecast 2026 Core FFO of $2.17–$2.27 per share and reset its full-year same-store NOI guidance. The board is also weighing a dividend reset, raising the possibility of a reduced payout. Article: NexPoint Residential forecasts 2026 core FFO, weighs dividend reset and authorizes buybacks
Analyst Ratings Changes
NXRT has been the topic of several research reports. Truist Financial dropped their target price on shares of NexPoint Residential Trust from $26.00 to $18.00 and set a “hold” rating on the stock in a report on Tuesday, September 29th. Deutsche Bank Aktiengesellschaft set a $23.00 target price on shares of NexPoint Residential Trust in a research note on Wednesday, September 9th. Weiss Ratings raised NexPoint Residential Trust from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, October 27th. Zacks Research cut NexPoint Residential Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 13th. Finally, Citizens Jmp restated a “market perform” rating on shares of NexPoint Residential Trust in a research note on Thursday, August 20th. Three research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $20.50.
View Our Latest Analysis on NXRT
About NexPoint Residential Trust
NexPoint Residential Trust, Inc (NYSE: NXRT) is a publicly traded real estate investment trust focused on acquiring, owning, operating and selectively renovating multifamily apartment communities. The company generally targets value-add properties, seeking to improve their operating performance and resident appeal through renovations, property management initiatives and other capital improvements.
NexPoint Residential Trust’s portfolio is concentrated primarily in the Southeastern and Southwestern United States.
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