NYSE$NXRT

NexPoint Residential Trust Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

NXRT reported financial results for the second quarter, generating strong returns on rehab program and taming controllable expense growth.

NexPoint Residential Trust reported a net loss of $(4.0) million for the second quarter of 2023, with total revenues of $69.6 million. Same Store NOI increased by 7.6%. The company completed 505 full and partial upgrades and leased 517 upgraded units, achieving an average monthly rent premium of $224 and a 20.9% ROI.

  • 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.
  • Q2 Same Store properties average effective rent, total revenue and NOI increased 7.9%, 7.4% and 7.6%, respectively, and occupancy decreased 60 bps over the prior year period.
  • Second quarter dividend of $0.42 per share of common stock was paid on June 30, 2023.
  • Weighted average effective monthly rent per unit across all 40 properties was $1,497, while physical occupancy was 93.9%.

Headline financials

Total Revenue

$69.6M

Previous: $65.8M+5.8%
EPS (adj)

$0.77

Previous: $0.79-2.5%
Physical Occupancy

93.9%

Previous: 94.5%-0.6%
Avg Monthly Rent

$1.5K

Previous: $1.39K+7.9%
Capital Expenditures

-$39.5M

Previous: -$164M+75.9%
Free Cash Flow

-$43.5M

Previous: -$172M+74.7%
Net Income

-$3.95M

Previous: -$7.8M+49.3%
Operating Income

$10M

Previous: $4.2M+139.3%
Gross Profit

$54.1M

Previous: $49.1M+10.2%
Cash & Equivalents

$10.1M

Previous: $20.5M-50.9%
Total Assets

$2.21B

Previous: $2.24B-1.5%
Stock-Based Comp

$2.5M

Previous: $1.99M+25.4%

Revenue & EPS history

NexPoint Residential · Revenue · Quarterly

$69.6M

Q2 2023+5.8%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

NexPoint Residential · $69.6M total across 2 segments · Q2 2023

  • Rental Income
    $67.8M
  • Other Income
    $1.76M

Forward guidance

NXRT is revising guidance ranges for earnings per diluted share, Core FFO per diluted share, Same Store rental income, Same Store total revenue, Same Store total expenses, Same Store NOI, interest expense and its related components, Acquisitions and Dispositions.

Tailwinds

  • Earnings per diluted share Mid-Point $5.09
  • Core FFO per diluted share Mid-Point $2.98
  • Same Store Rental Income 8.9%
  • Same Store Total Revenue 8.8%
  • Same Store NOI 10.0%

Headwinds

  • Interest Expense on Mortgage Debt $(107.1) million
  • Interest Expense on Revolver $(5.0) million
  • Deferred Financing Cost & Discount Amortization $(2.6) million
  • Mark to Market – Fair Value of Rate Caps $(0.5) million
  • Total Interest Expense $(67.7) million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.1%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.1%

Avg return

30 days after

61%

27 / 44 earnings

Positive

+9.7%

Q2 2018

Best reaction

-10.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%+0.1%+0.7%
Q4 2025-0.2%-5.1%-15.4%
Q3 2025+2.2%+0.4%+4.0%
Q1 2025+2.0%+5.3%-6.5%
Q3 2024-0.7%-5.2%+10.4%
Q2 2024+0.3%+1.6%+8.9%
Q1 2024+2.3%+4.6%+7.5%
Q4 2023-6.5%-5.7%+1.2%
Q3 2023+0.3%+12.0%+13.5%
Q2 2023-10.2%-13.7%-21.7%
Q1 2023-5.0%-2.0%-8.0%
Q4 2022+1.1%+0.2%-17.9%
Q3 2022+9.1%+12.8%+14.1%
Q2 2022-1.6%+5.7%-7.4%
Q1 2022+3.7%-0.4%-19.5%
Q4 2021+9.5%+7.8%+12.1%
Q3 2021+2.4%+5.6%+8.8%
Q2 2021-2.7%-3.5%+0.5%
Q1 2021-1.6%-1.1%+1.9%
Q4 2020-0.2%-2.5%+8.0%
Q3 2020-1.0%+0.2%-2.1%
Q2 2020+7.0%+7.8%+9.7%
Q1 2020+8.4%-2.4%+24.0%
Q4 2019-2.8%-3.4%-28.3%
Q3 2019+3.4%+3.3%+2.1%
Q2 2019+1.0%+3.2%+8.0%
Q1 2019+3.7%+5.9%+8.8%
Q4 2018-2.6%-0.8%-3.5%
Q3 2018+1.7%-4.6%+4.0%
Q2 2018+9.7%+13.2%+16.0%
Q1 2018+1.0%+2.9%+3.5%
Q4 2017-4.3%-2.6%+2.7%
Q3 2017+7.7%+14.7%+20.9%
Q2 2017-4.9%-3.6%-7.1%
Q1 2017+1.1%+0.0%+0.1%
Q4 2016-1.6%+1.0%+7.5%
Q3 2016+3.6%+6.9%+11.7%
Q2 2016+1.9%+3.3%+7.5%
Q1 2016+1.3%
Q4 2015-1.1%
Q3 2015+2.9%
Q4 2014+5.7%
Q2 2015+5.2%
Q1 2015+1.5%
Q3 2014
Q2 2014
Q1 2014

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