NXRT Raises Full Year 2024 Guidance, Reports
Net Income of $10.6 million,
$39.25 million of Disposition
Activity and $14.6 million of Share
Repurchase Activity
DALLAS,
July 30,
2024 /PRNewswire/ -- NexPoint Residential Trust, Inc.
(NYSE:NXRT) reported financial results for the second quarter ended
June 30, 2024.
Highlights
- NXRT1 reported Net Income, FFO2, Core
FFO2 and AFFO2 of $10.6M, $16.3M,
$17.9M and $20.9M, respectively, attributable to common
stockholders for the quarter ended June 30,
2024, compared to Net Loss, FFO, Core FFO, and AFFO of
$(4.0)M, $19.8M, $20.4M and
$23.2M, respectively, attributable to
common stockholders for the quarter ended June 30, 2023.
- NXRT reported Net Income, FFO, Core FFO and AFFO of
$36.9M, $35.3M, $37.5M and
$43.5M, respectively, attributable to
common stockholders for the six months ended June 30, 2024, compared to Net Loss, FFO, Core
FFO, and AFFO of $(7.8)M,
$39.1M, $39.0M and $44.2M,
respectively, attributable to common stockholders for the six
months ended June 30, 2023.
- For the three months ended June 30,
2024, Q2 Same Store properties3, occupancy was
flat, total revenue and NOI2 increased 2.3% and
2.4%, respectively, and average effective rent decreased 1.0% over
the prior year period.
- For the six months ended June 30,
2024, YTD Same Store properties3, occupancy was
flat, total revenue and NOI2 increased 2.9% and 3.2%,
respectively, and average effective rent decreased 1.0% over the
prior year period.
- During the second quarter 2024, the Company completed the sale
of Radbourne Lake for a sales price of approximately $39.3 million, resulting in a gain on sale of
real estate of $18.8 million.
- During the second quarter 2024, the Company paid off the
mortgage on Stone Creek at Old Farm
of $15.3 million.
- During the second quarter 2024, the Company repurchased and
subsequently retired 438,678 shares at an average price of
$33.19 per share, totaling
approximately $14.6 million of its
common stock.
- NXRT paid a second quarter dividend of $0.46242 per share of common stock on
June 28, 2024.
- The weighted average effective monthly rent per unit across all
36 properties held as of June 30,
2024 (the "Portfolio"), consisting of 13,1744
units, was $1,517, while physical
occupancy was 94.1%.
- During the second quarter 2024, for the properties in our
Portfolio, we completed 59 full and partial upgrades and leased 56
upgraded units, achieving an average monthly rent premium of
$240 and a 20.1%
ROI5.
- Since inception, for the properties currently in our Portfolio,
we have completed 8,271 full and partial upgrades, 4,659 kitchen
and laundry appliances, and 11,389 technology packages, resulting
in a $175, $48, and $43
average monthly rental increase per unit and a 20.8%, 62.0%, and
37.2% 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 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 12,963 units of apartment space in our Same Store pool
for the three months ended June 30, 2024 (our "Q2 Same Store"
properties) and 35 properties encompassing 12,963 units of
apartment space in our Same Store pool for the six months ended
June 30, 2024 (our "YTD Same Store" properties). The same store
unit count excludes 21 units that are currently down due to
casualty events (Rockledge: 20 units, Bella Solara: 1
unit).
|
4)
|
Total units owned in
our Portfolio is 13,174, however 21 units are currently down due to
casualty events (Rockledge: 20 units, Bella Solara: 1
unit).
|
5)
|
We define Return on
Investment ("ROI") as the sum of the actual rent premium divided by
the sum of the total cost.
|
Second Quarter 2024 Financial Results
- Total revenues were $64.2 million
for the second quarter of 2024, compared to $69.6 million for the second quarter of
2023.
- Net income for the second quarter of 2024 totaled $10.6 million, or income of $0.40 per diluted share, which included
$24.4 million of depreciation and
amortization expense. This compared to a net loss of $(4.0) million, or loss of $(0.15) per diluted share, for the second quarter
of 2023, which included $23.9 million
of depreciation and amortization expense.
- The change in our net income of $10.6
million for the three months ended June 30, 2024 as compared to our net loss of
$(4.0) million for the three months
ended June 30, 2023 primarily relates
to an increase in gain on sales of real estate of $18.7 million.
- For the second quarter of 2024, NOI was $38.9 million on 36 properties, compared to
$42.0 million for the second quarter
of 2023 on 40 properties.
- For the second quarter of 2024, Q2 Same Store NOI increased
2.4% to $38.4 million, compared to
$37.5 million for the second quarter
of 2023.
- For the second quarter of 2024, FFO totaled $16.3 million, or $0.62 per diluted share, compared to $19.8 million, or $0.75 per diluted share, for the second quarter
of 2023.
- For the second quarter of 2024, Core FFO totaled $17.9 million, or $0.68 per diluted share, compared to $20.4 million, or $0.77 per diluted share, for the second quarter
of 2023.
- For the second quarter of 2024, AFFO totaled $20.9 million, or $0.80 per diluted share, compared to $23.2 million, or $0.88 per diluted share, for the second quarter
of 2023.
2024 Year to Date Financial
Results
- Total revenues were $131.8
million for the six months ended June
30, 2024, compared to $138.8
million for the six months ended June
30, 2023.
- Net income for the six months ended June
30, 2024 totaled $36.9
million, or income of $1.40
per diluted share, which included $48.8
million of depreciation and amortization expense. This
compared to net loss of $(7.8)
million, or loss of $(0.31)
per diluted share, for the six months ended June 30, 2023, which included $47.1 million of depreciation and amortization
expense.
- The change in our net income of $37.0
million for the six months ended June
30, 2024 as compared to our net loss of $(7.9) million for the six months ended
June 30, 2023 primarily relates to an
increase in gain on sales of real estate of $50.4 million.
- For the six months ended June 30,
2024, NOI was $80.0 million on
36 properties, compared to $83.1
million for the six months ended June
30, 2023 on 40 properties.
- For the six months ended June 30,
2024, Same Store NOI increased 3.2% to $77.7 million, compared to $75.2 million for the six months ended
June 30, 2023.
- For the six months ended June 30,
2024, FFO totaled $35.3
million, or $1.34 per diluted
share, compared to $39.1 million, or
$1.49 per diluted share, for the six
months ended June 30, 2023.
- For the six months ended June 30,
2024, Core FFO totaled $37.5
million, or $1.43 per diluted
share, compared to $39.0 million, or
$1.49 per diluted share, for the six
months ended June 30, 2023.
- For the six months ended June 30,
2024, AFFO totaled $43.5
million, or $1.65 per diluted
share, compared to $44.2 million, or
$1.69 per diluted share, for the six
months ended June 30, 2023.
NXRT Path to Growth: 2025-2027
- The Company expects to refinance portfolio-level debt to
current floating rate spreads, aiming to reduce the average SOFR
spread from 158 bps to 100-110 bps. This reduction is estimated to
provide a $0.15-$0.20 per share benefit annually through 2027,
assuming all other factors remain constant. One significant added
benefit to this refinancing initiative, beyond tightening credit
spreads and extending maturities out another seven years, is to
offset the expected impact of our interest rate swaps maturing over
the next three years.
Second Quarter Earnings Conference
Call
NXRT will host a conference call on Tuesday, July 30, 2024, at 11:00 a.m. ET (10:00 am
CT), to discuss second quarter financial results. The
conference call can be accessed live over the phone by dialing
888-660-4430 or, for international callers, +1 646-960-0537 and
using passcode Conference ID: 5001576. A live audio webcast of the
call will be available online at the Company's website,
https://nxrt.nexpoint.com (under "Resources"). 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, August 13,
2024, by dialing 800-770-2030 or, for international callers,
+1 647-362-9199 and entering passcode 5001576.
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, the NXRT Path to Growth: 2025-2027, expected
refinancing of portfolio-level debt, the effects of the
refinancing, forecasted submarket deliveries, NXRT's guidance for
financial results for the full year 2024, including net loss per
diluted share, Core FFO per diluted share, same store rental
income, same store total revenue, same store expense, same store
NOI, and the related components and assumptions, including expected
acquisitions and dispositions, expected same store pool, shares
outstanding and same store growth projections, NXRT's net asset
value and the related components and assumptions, estimated
value-add expenditures, debt payments and outstanding debt, net
loss and NOI guidance for the third quarter and full year 2024 and
the related assumptions, planned value-add programs, including
rehab costs, rent change and return on investment, expected
settlement of interest rate swaps and the effect on the debt
maturity schedule, rehab budgets and 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 those described in greater detail 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.
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 six months
ended June 30, 2024 and 2023 (in
thousands, except per share amounts):
|
|
For the Three Months Ended
June 30,
|
|
|
For the Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
% Change
|
|
|
Net income
(loss)
|
|
$
|
10,638
|
|
|
$
|
(3,968)
|
|
|
$
|
37,040
|
|
|
$
|
(7,866)
|
|
|
N/M
|
|
|
Depreciation and
amortization
|
|
|
24,442
|
|
|
|
23,872
|
|
|
|
48,765
|
|
|
|
47,138
|
|
|
|
3.5
|
%
|
|
Gain on sales of real
estate
|
(1)
|
|
(18,686)
|
|
|
|
—
|
|
|
|
(50,395)
|
|
|
|
—
|
|
|
|
0.0
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(64)
|
|
|
|
(76)
|
|
|
|
(139)
|
|
|
|
(149)
|
|
|
|
-6.7
|
%
|
|
FFO attributable to common
stockholders
|
|
|
16,330
|
|
|
|
19,828
|
|
|
|
35,271
|
|
|
|
39,123
|
|
|
|
-9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share - basic
|
|
$
|
0.64
|
|
|
$
|
0.77
|
|
|
$
|
1.38
|
|
|
$
|
1.53
|
|
|
|
-9.8
|
%
|
|
FFO per share - diluted
|
|
$
|
0.62
|
|
|
$
|
0.75
|
|
|
$
|
1.34
|
|
|
$
|
1.49
|
|
|
|
-10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on
extinguishment of debt and modification costs
|
|
|
255
|
|
|
|
—
|
|
|
|
801
|
|
|
|
(122)
|
|
|
N/M
|
|
|
Casualty-related
expenses/(recoveries)
|
|
|
232
|
|
|
|
398
|
|
|
|
267
|
|
|
|
(1,308)
|
|
|
N/M
|
|
|
Casualty
loss
|
|
|
737
|
|
|
|
66
|
|
|
|
538
|
|
|
|
880
|
|
|
|
-38.9
|
%
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
|
|
(250)
|
|
|
|
—
|
|
|
|
(250)
|
|
|
N/M
|
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
331
|
|
|
|
331
|
|
|
|
661
|
|
|
|
661
|
|
|
|
0.0
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(6)
|
|
|
|
(3)
|
|
|
|
(9)
|
|
|
|
(1)
|
|
|
N/M
|
|
|
Core FFO attributable to common
stockholders
|
|
|
17,879
|
|
|
|
20,370
|
|
|
|
37,529
|
|
|
|
38,983
|
|
|
|
-3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share - basic
|
|
$
|
0.70
|
|
|
$
|
0.79
|
|
|
$
|
1.46
|
|
|
$
|
1.52
|
|
|
|
-3.9
|
%
|
|
Core FFO per share - diluted
|
|
$
|
0.68
|
|
|
$
|
0.77
|
|
|
$
|
1.43
|
|
|
$
|
1.49
|
|
|
|
-4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
372
|
|
|
|
377
|
|
|
|
759
|
|
|
|
814
|
|
|
|
-6.8
|
%
|
|
Equity-based
compensation expense
|
|
|
2,684
|
|
|
|
2,495
|
|
|
|
5,231
|
|
|
|
4,461
|
|
|
|
17.3
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(12)
|
|
|
|
(10)
|
|
|
|
(24)
|
|
|
|
(20)
|
|
|
|
20.0
|
%
|
|
AFFO attributable to common
stockholders
|
|
|
20,923
|
|
|
|
23,232
|
|
|
|
43,495
|
|
|
|
44,238
|
|
|
|
-1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share - basic
|
|
$
|
0.82
|
|
|
$
|
0.91
|
|
|
$
|
1.70
|
|
|
$
|
1.73
|
|
|
|
-1.7
|
%
|
|
AFFO per share - diluted
|
|
$
|
0.80
|
|
|
$
|
0.88
|
|
|
$
|
1.65
|
|
|
$
|
1.69
|
|
|
|
-2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding -
basic
|
|
|
25,540
|
|
|
|
25,667
|
|
|
|
25,630
|
|
|
|
25,633
|
|
|
|
0.0
|
%
|
|
Weighted average common shares outstanding -
diluted
|
(2)
|
|
26,309
|
|
|
|
26,304
|
|
|
|
26,331
|
|
|
|
26,190
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share
|
|
$
|
0.46242
|
|
|
$
|
0.42
|
|
|
$
|
0.92484
|
|
|
$
|
0.84
|
|
|
|
10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) Coverage -
diluted
|
(3)
|
0.87x
|
|
|
-0.36x
|
|
|
1.51x
|
|
|
-0.37x
|
|
|
|
510.2
|
%
|
|
FFO Coverage - diluted
|
(3)
|
1.34x
|
|
|
1.79x
|
|
|
1.45x
|
|
|
1.77x
|
|
|
|
-18.3
|
%
|
|
Core FFO Coverage - diluted
|
(3)
|
1.47x
|
|
|
1.84x
|
|
|
1.55x
|
|
|
1.77x
|
|
|
|
-12.8
|
%
|
|
AFFO Coverage - diluted
|
(3)
|
1.72x
|
|
|
2.10x
|
|
|
1.78x
|
|
|
2.01x
|
|
|
|
-11.3
|
%
|
|
|
|
(1)
|
$31.5 million with a
related party for the six months ended June 30, 2024.
|
(2)
|
The Company uses actual
diluted weighted average common shares outstanding when in a
dilutive position for FFO, Core FFO and AFFO.
|
(3)
|
Indicates coverage
ratio of Net Income (Loss)/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: (a)
depreciation and amortization expenses and (b) gains or losses from
the sale of operating real estate assets that are included in net
income (loss) computed in accordance with GAAP, (5) corporate
income that is not reflective of operations of the properties (6)
other gains and losses that are specific to us including loss on
extinguishment of debt and modification costs, (7) casualty-related
expenses/(recoveries) and casualty gains (losses), (8) gain (loss)
on extinguishment of debt and modification costs that are not
reflective of continuing operations of the properties, (9) gain on
forfeited deposits, (10) 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, centralized
leasing service and franchise tax fees and (11) equity in
earnings of affiliate. 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, if applicable, 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 amount 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 gain
(loss) on extinguishment of debt and modification costs, gain on
forfeited deposits, casualty-related expenses/and recoveries and
gains (losses), 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 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
The following table, which has not been adjusted
for the effects of noncontrolling interests, reconciles NOI and our
Same Store NOI for the three and six months ended June 30, 2024 and 2023 to net income (loss), the
most directly comparable GAAP financial measure (in thousands):
|
|
For the Three Months Ended
June 30,
|
|
|
For the Six Months Ended
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Net income
(loss)
|
|
$
|
10,638
|
|
|
$
|
(3,968)
|
|
|
$
|
37,040
|
|
|
$
|
(7,866)
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,734
|
|
|
|
1,927
|
|
|
|
3,477
|
|
|
|
3,816
|
|
Corporate general and
administrative expenses
|
|
|
4,779
|
|
|
|
4,624
|
|
|
|
9,689
|
|
|
|
7,991
|
|
Corporate
income
|
|
|
(516)
|
|
|
|
—
|
|
|
|
(812)
|
|
|
|
—
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
232
|
|
|
|
398
|
|
|
|
267
|
|
|
|
(1,308)
|
|
Casualty
loss
|
|
|
737
|
|
|
|
66
|
|
|
|
538
|
|
|
|
880
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
|
|
(250)
|
|
|
|
—
|
|
|
|
(250)
|
|
Property general and
administrative expenses
|
(2)
|
|
1,334
|
|
|
|
776
|
|
|
|
2,317
|
|
|
|
1,557
|
|
Depreciation and
amortization
|
|
|
24,442
|
|
|
|
23,872
|
|
|
|
48,765
|
|
|
|
47,138
|
|
Interest
expense
|
|
|
13,971
|
|
|
|
14,524
|
|
|
|
28,362
|
|
|
|
31,263
|
|
Equity in earnings of
affiliate
|
|
|
(53)
|
|
|
|
—
|
|
|
|
(91)
|
|
|
|
—
|
|
Loss (gain) on
extinguishment of debt and modification costs
|
|
|
255
|
|
|
|
—
|
|
|
|
801
|
|
|
|
(122)
|
|
Gain on sales of real
estate
|
(3)
|
|
(18,686)
|
|
|
|
—
|
|
|
|
(50,395)
|
|
|
|
—
|
|
NOI
|
|
$
|
38,867
|
|
|
$
|
41,969
|
|
|
$
|
79,958
|
|
|
$
|
83,099
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
(818)
|
|
|
|
(8,049)
|
|
|
|
(4,702)
|
|
|
|
(16,092)
|
|
Operating
expenses
|
|
|
393
|
|
|
|
3,678
|
|
|
|
2,407
|
|
|
|
8,339
|
|
Operating
income
|
|
|
—
|
|
|
|
(66)
|
|
|
|
(3)
|
|
|
|
(124)
|
|
Same Store
NOI
|
|
$
|
38,442
|
|
|
$
|
37,532
|
|
|
$
|
77,660
|
|
|
$
|
75,222
|
|
|
|
(1)
|
Adjustment to net
income (loss) to exclude certain property operating expenses that
are casualty-related expenses/(recoveries).
|
(2)
|
Adjustment to net
income (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, centralized
leasing service and franchise tax fees.
|
(3)
|
$31.5 million with a
related party for the six months ended June 30, 2024.
|
Reconciliation of Debt to Net Debt
(dollar amounts in
thousands)
|
|
Q2 2024
|
|
|
Q2 2023
|
|
Total mortgage
debt
|
|
$
|
1,462,935
|
|
|
$
|
1,621,563
|
|
Credit
facilities
|
|
|
—
|
|
|
|
57,000
|
|
Total debt
outstanding
|
|
|
1,462,935
|
|
|
|
1,678,563
|
|
|
|
|
|
|
|
|
|
|
Adjustments to arrive
at net debt:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
(21,262)
|
|
|
|
(10,056)
|
|
Restricted cash held
for value-add upgrades and green improvements
|
|
|
(4,219)
|
|
|
|
32,921
|
|
Net Debt
|
|
$
|
1,437,454
|
|
|
$
|
1,701,428
|
|
Enterprise Value
(1)
|
|
$
|
2,441,454
|
|
|
$
|
2,869,428
|
|
Leverage
Ratio
|
|
|
59
|
%
|
|
|
59
|
%
|
|
|
(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, 2024
|
|
|
For the Three Months Ended
September 30, 2024
|
|
|
|
Mid-Point (1)
|
|
|
Mid-Point (1)
|
|
Net loss
|
|
$
|
(30,170)
|
|
|
$
|
(8,683)
|
|
Adjustments to
reconcile net income to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
7,092
|
|
|
|
1,808
|
|
Corporate general and
administrative expenses
|
|
|
20,161
|
|
|
|
5,341
|
|
Corporate
income
|
|
|
(1,662)
|
|
|
|
(425)
|
|
Property general and
administrative expenses
|
(2)
|
|
5,033
|
|
|
|
1,203
|
|
Depreciation and
amortization
|
|
|
97,741
|
|
|
|
24,506
|
|
Interest
expense
|
|
|
55,380
|
|
|
|
14,311
|
|
Casualty-related
recoveries
|
|
|
538
|
|
|
|
—
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
52,973
|
|
|
|
—
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
|
|
—
|
|
Equity in earnings of
affiliate
|
|
|
(211)
|
|
|
|
(60)
|
|
Gain on sales of real
estate
|
|
|
(50,395)
|
|
|
|
—
|
|
NOI
|
|
$
|
156,480
|
|
|
$
|
38,001
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
Revenues
|
(3)
|
|
(6,386)
|
|
|
|
|
|
Operating
expenses
|
(3)
|
|
3,360
|
|
|
|
|
|
Same Store
NOI
|
(3)
|
$
|
153,454
|
|
|
|
|
|
|
|
(1)
|
Mid-Point estimates
shown for full year and third quarter 2024 guidance. Assumptions
made for full year and third quarter 2024 NOI guidance include the
Same Store operating growth projections included in the "2024 Full
Year Guidance Summary" section of this release and the effect of
the dispositions throughout the fiscal year.
|
(2)
|
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, centralized leasing service
and franchise tax fees.
|
(3)
|
Amounts are derived
from the results of operations of our Full Year 2024 Same Store
properties and Non-Same Store properties. There are 35 properties
in our Full Year 2024 Same Store pool.
|
The following table reconciles our FFO, Core FFO
and AFFO guidance to our net loss (the most directly comparable
GAAP financial measure) guidance for the year ended December 31, 2024 (in thousands, except per share
data):
|
|
For the Year Ended
December 31, 2024
|
|
|
|
Mid-Point
|
|
Net loss
|
|
$
|
(30,170)
|
|
Depreciation and
amortization
|
|
|
97,741
|
|
Gain on sales of real
estate
|
|
|
(50,395)
|
|
Adjustment for
noncontrolling interests
|
|
|
(99)
|
|
FFO attributable to common
stockholders
|
|
|
17,077
|
|
FFO per share - diluted (1)
|
|
$
|
0.65
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
52,973
|
|
Casualty-related
expenses
|
|
|
802
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
872
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
Adjustment for
noncontrolling interests
|
|
|
(207)
|
|
Core FFO attributable to common
stockholders
|
|
|
71,517
|
|
Core FFO per share - diluted
(1)
|
|
$
|
2.72
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
1,359
|
|
Equity-based
compensation expense
|
|
|
10,601
|
|
Adjustment for
noncontrolling interests
|
|
|
(46)
|
|
AFFO attributable to common
stockholders
|
|
|
83,431
|
|
AFFO per share - diluted (1)
|
|
$
|
3.18
|
|
|
|
|
|
|
Weighted average common shares outstanding -
diluted
|
|
|
26,246
|
|
|
|
(1)
|
For purposes of
calculating per share data, we assume a weighted average diluted
share count of approximately 26.2 million for the full year
2024.
|
NOI
The following table, which has not been adjusted
for the effects of noncontrolling interests, reconciles NOI for the
three months ended March 31, 2024 and
the year ended December 31, 2023 to
net income, the most directly comparable GAAP financial measure (in
thousands):
|
|
For the Three Months Ended
March 31, 2024
|
|
|
For the Year Ended
December 31, 2023
|
|
Net income
|
|
$
|
26,402
|
|
|
$
|
44,433
|
|
Adjustments to
reconcile net income to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,743
|
|
|
|
7,645
|
|
Corporate general and
administrative expenses
|
|
|
4,614
|
|
|
|
16,663
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
33
|
|
|
|
(2,214)
|
|
Casualty loss
(gain)
|
|
|
(199)
|
|
|
|
856
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
|
|
(250)
|
|
Property general and
administrative expenses
|
(2)
|
|
983
|
|
|
|
3,701
|
|
Depreciation and
amortization
|
|
|
24,323
|
|
|
|
95,186
|
|
Interest
expense
|
|
|
14,391
|
|
|
|
67,106
|
|
Equity in earnings of
affiliate
|
|
|
(38)
|
|
|
|
(205)
|
|
Loss (gain) on
extinguishment of debt and modification costs
|
|
|
546
|
|
|
|
2,409
|
|
Gain on sales of real
estate
|
|
|
(31,709)
|
|
|
|
(67,926)
|
|
NOI
|
|
$
|
41,089
|
|
|
$
|
167,404
|
|
|
|
(1)
|
Adjustment to net
income to exclude certain property operating expenses that are
casualty-related expenses/(recoveries).
|
(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, centralized leasing service
and franchise tax fees.
|
|
|
Contact:
Investor Relations
Kristen Thomas
IR@nexpoint.com
(214) 276-6300
Media inquiries: Pro-Nexpoint@prosek.com
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SOURCE NexPoint Residential Trust, Inc.