NexPoint Residential Trust, Inc. Reports Financial Results for 2024's Fourth Quarter and Entire Year

NexPoint Residential Trust Announces 2024 Results

On February 25, 2025, NexPoint Residential Trust, Inc. (NYSE:NXRT) released its financial outcomes for the fourth quarter and the entire year ending December 31, 2024. These results provide an overview of the company's performance and underline critical operational metrics.

Financial Highlights

NexPoint reported a net income of $1.1 million for the year 2024, which marks a decline compared to the net income of $44.3 million recorded in 2023. This equals an income per diluted share of $0.04 for 2024 versus $1.69 in the previous year. The noted decrease was attributed to lower gains on real estate sales and a downturn in rental income.

Funds from Operations (FFO) for the fiscal year totaled $44.5 million, while Core FFO amounted to $73.1 million. In contrast, the previous year had FFO of $71.4 million and Core FFO of $76.6 million. Adjusted funds from operations (AFFO) were $83.6 million for 2024, compared to $85.9 million in 2023.

Revenue and Occupancy Trends

The total revenue for 2024 decreased to $259.7 million from $277.5 million in 2023. Furthermore, NexPoint's Same Store properties experienced a revenue growth of 2.0%, yet net operating income (NOI) saw only a slight increase of 0.9%. The average effective rent across their holdings declined by 1.6%, while the occupancy levels remained stable at 94.7%.

In terms of property performance, NexPoint completed significant sales, including the Old Farm, Radbourne Lake, and Stone Creek at Old Farm, totaling a sales price of $166.8 million.

Upgrade and Investment Activities

Throughout 2024, NexPoint proceeded with upgrades across its portfolio, achieving 388 full or partial upgrades and benefiting from an average rent premium of $153 per unit. This renovation effort resulted in a notable ROI of 24.7%. To date, NexPoint has successfully implemented improvements across 8,348 units, including substantial upgrades to kitchens and laundry facilities.

The company also repurchased 438,678 shares averaging $33.19, capitalizing on the disparity between private and public market valuations.

Dividend Increase

In a show of confidence in their business model, NexPoint declared a fourth-quarter dividend of $0.51 per share, reflecting a 10.3% increase from the prior quarter. Since its inception, the company has raised its dividends per share by a remarkable 147.6%.

Challenges Ahead

Looking ahead, NexPoint faces challenges including reduced gains on property sales and fluctuating rental incomes. The company anticipates a net loss of $31.5 million for 2025, indicating the need for careful strategic planning as they navigate these hurdles.

Upcoming Conference Call

Additionally, a conference call is scheduled for Tuesday, February 25, 2025, where the company will further discuss its 2024 financial results. Investors will have an opportunity to gain deeper insights into the company's direction and operational strategies.

With a focus on middle-income multifamily properties, NexPoint aims to leverage its experience in managing and enhancing property values, continuing its commitment to shareholder returns and strategic growth in its portfolio.