NYSE$NXRT

NexPoint Residential Trust Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter 2023 results, with NXRT boosting quarterly dividend by 10.1% and returning 6.14x multiple on invested capital on $70 million DFW asset, and making $16.0 million paydown on credit facility.

NexPoint Residential Trust, Inc. reported a net income of $33.7 million for the third quarter ended September 30, 2023, compared to a net loss of $(0.6) million for the same quarter in 2022. The company's Q3 Same Store NOI increased by 8.0%. NXRT also boosted its quarterly dividend by 10.1% and paid down $16.0 million on its Corporate Credit Facility.

  • Net Income, FFO, Core FFO and AFFO attributable to common stockholders for the quarter ended September 30, 2023 were $33.7M, $14.5M, $17.1M and $20.0M, respectively.
  • Q3 Same Store properties average effective rent, total revenue and NOI increased 3.1%, 4.6% and 8.0%, respectively, and occupancy decreased 10 bps over the prior year period.
  • Completed the sale of Silverbrook for a sales price of $70.0 million, resulting in a gain on sale of real estate of $43.1 million.
  • Paid down $16.0 million on its Corporate Credit Facility.

Headline financials

Total Revenue

$69.8M

Previous: $68.1M+2.6%
EPS (adj)

$0.65

Previous: $0.85-23.5%
Avg Monthly Rent

$1.51K

Previous: $1.45K+4.2%
Capital Expenditures

-$56.9M

Previous: -$183M+68.8%
Free Cash Flow

-$23.2M

Previous: -$183M+87.4%
Net Income

$33.7M

Previous: -$597K+5753.1%
Operating Income

$53.5M

Previous: $11M+387.4%
Gross Profit

$54.5M

Previous: $55.7M-2.1%
Cash & Equivalents

$7.53M

Previous: $15.8M-52.2%
Total Assets

$2.18B

Previous: $2.27B-3.9%
Stock-Based Comp

$2.49M

Previous: $2.01M+24.3%

Revenue & EPS history

NexPoint Residential · Revenue · Quarterly

$69.8M

Q3 2023+2.6%vs Q3 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 and Acquisitions.

Tailwinds

  • Earnings per diluted share is expected to be between $3.69 and $3.82.
  • Core FFO per diluted share is expected to be between $2.81 and $2.95.
  • Same Store Rental Income is expected to grow between 7.0% and 7.7%.
  • Same Store Total Revenue is expected to grow between 7.0% and 7.7%.
  • Total Interest Expense is expected to be between $(66.1) million and $(64.9) million.

Headwinds

  • Same Store total expenses are expected to increase between 4.8% and 5.7%.
  • Interest Expense on Mortgage Debt is expected to be between $(105.7) million and $(106.7) million.
  • Interest Expense on Revolver is expected to be $(4.7) million.
  • Deferred Financing Cost & Discount Amortization is expected to be $(2.7) million.
  • Mark to Market – Fair Value of Rate Caps is expected to be between $(0.4) million and $1.0 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 Q3 2023

Historical avgQ3 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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