NXRT.NEXPOINT.COM

•

NXRT¹ reported Net Loss, FFO², Core FFO² and AFFO² of $(4.7)M, $19.0M, $20.1M and $22.3M, respectively, attributable to common stockholders for the quarter ended March 31, 2022, compared to Net Loss, FFO, Core FFO and AFFO of $(6.9)M, $13.8M, $14.1M and $16.0M, respectively, attributable to common stockholders for the quarter ended March 31, 2021.

•

For the three months ended March 31, 2022, Q1 Same Store properties³ average effective rent, total revenue and NOI² increased 15.4%, 11.3% and 16.4%, respectively and occupancy decreased 90 bps from the prior year period.

•

The weighted average effective monthly rent per unit across all 39 properties held as of March 31, 2022 (the “Portfolio”), consisting of 14,776 units⁴, was $1,310, while physical occupancy was 94.2%.

•

NXRT paid a first quarter dividend of $0.38 per share of common stock on March 31, 2022.

•

During the first quarter, for the properties in our Portfolio, we completed 531 full and partial upgrades and leased 489 upgraded units, achieving an average monthly rent premium of $138 and a 26.3% ROI⁵.

•

Since inception, for the properties currently in our Portfolio, we have completed 6,398 full and partial, 4,510 kitchen and laundry appliances and 9,624 technology packages, resulting in a $139, $48 and $43 average monthly rental increase per unit and a 21.8%, 70.8% and 33.5% ROI, respectively.

•

During the three months ended March 31, 2022, through its at-the-market offering (“ATM program”), NXRT issued 52,091 shares of common stock for approximately $4.3 million in gross proceeds

(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” and “FFO, Core FFO and AFFO” 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 34 properties encompassing 13,456 units of apartment space in our Same Store pool for the three months ended March 31, 2022 (our “Q1 Same Store” properties). The same store unit count excludes 44 units that are currently down due to casualty events (Silverbrook: 16 units, Timber Creek: 15 units, Venue at 8651: 8 units, The Preserve at Terrell Mill: 3 units, Bloom: 1 unit and Old Farm: 1 unit).

(4)

Total number of units owned in our Portfolio as of March 31, 2022 is 14,825, however 49 units are currently down due to casualty events (Silverbrook: 16 units, Timber Creek: 15 units, Venue at 8651: 8 units, Six Forks Station: 5 units, The Preserve at Terrell Mill: 3 units, Bloom: 1 unit and Old Farm: 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.

NXRT.NEXPOINT.COM

Page 1

•

Total revenues were $60.8 million for the first quarter of 2022, compared to $51.8 million for the first quarter of 2021.

•

Net loss for the first quarter of 2022 totaled $(4.7) million, or loss of $(0.18) per diluted share, which included $23.7 million of depreciation and amortization expense. This compared to net loss of $(6.9) million, or loss of $(0.27) per diluted share, for the first quarter of 2021, which included $20.8 million of depreciation and amortization expense.

•

The change in our net loss of $(4.7) million for the three months ended March 31, 2022 as compared to our net loss of $(6.9) million for the three months ended March 31, 2021 primarily relates to increases in rental income, partially offset by increases in depreciation and property operating expenses.

•

For the first quarter of 2022, NOI was $36.6 million on 39 properties, compared to $29.7 million for the first quarter of 2021 on 37 properties.

•

For the first quarter of 2022, Q1 Same Store NOI increased 16.4% to $33.2 million, compared to $28.5 million for the first quarter of 2021.

•

For the first quarter of 2022, FFO totaled $19.0 million, or $0.74 per diluted share, compared to $13.8 million, or $0.55 per diluted share, for the first quarter of 2021.

•

For the first quarter of 2022, Core FFO totaled $20.1 million, or $0.78 per diluted share, compared to $14.1 million, or $0.56 per diluted share, for the first quarter of 2021.

•

For the first quarter of 2022, AFFO totaled $22.3 million, or $0.87 per diluted share, compared to $16.0 million, or $0.64 per diluted share, for the first quarter of 2021.

NXRT.NEXPOINT.COM

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NXRT.NEXPOINT.COM

Page 3

(share counts in thousands)

Exchange/Ticker

NYSE:NXRT

Share Price (1)

$89.56

Insider Ownership

12.42%

2022 Q2 Dividend Per Share

$0.38

Dividend Yield (1)

1.70%

Shares outstanding - basic (2)

25,620

Shares outstanding - diluted (2)

25,620

(1)

As of the close of market trading on April 25, 2022.

(2)

Weighted average for the three months ended March 31, 2022. If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the calculation of diluted shares outstanding.  

Revenue & Average Rent Per Unit

Stock Price Performance (Since Inception; 4/1/2015)

NXRT.NEXPOINT.COM

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Property Name

Location

Date of Acquisition

Purchase Price

Mortgage Debt

# Units

The Adair

Sandy Springs, GA

April 1, 2022

$

65,500

$

35,115

232

Estates on Maryland

Phoenix, AZ

April 1, 2022

77,900

43,157

330

$

143,400

$

78,272

562

Market

New Leases

% Increase

Rent Increase

Renewals

% Increase

Rent Increase

DFW

323

24.8%

$

254.27

336

20.7%

$

202.99

HOU

176

15.1%

$

176.55

172

11.0%

$

128.44

CHA

140

17.4%

$

197.06

157

13.4%

$

147.34

NASH

170

24.5%

$

273.76

202

17.0%

$

181.93

ATL

173

18.9%

$

229.60

151

15.7%

$

187.39

ORL

138

36.0%

$

432.33

170

24.6%

$

287.54

TPA

73

33.4%

$

360.64

51

27.0%

$

287.12

South FL

184

36.4%

$

551.93

257

21.4%

$

322.93

PHX

221

27.1%

$

317.87

216

19.2%

$

234.35

LSV

139

18.3%

$

223.24

149

15.5%

$

184.79

RDU

53

6.5%

$

83.32

91

13.5%

$

167.87

TOTAL

1,790

24.3%

$

290.67

1,952

18.2%

$

214.36

(1)

Source: RealPage as of March 31, 2022.

(2)

Source: Average of Invitation Homes and American Homes 4 Rent. Average effective rent per market based on recent public filings as of December 31, 2021 and assuming a 5% rent increase.

Q1 2022

Q1 2021

FY 2021

FY 2020

(in thousands, except for per share and unit data)

Company Profile

Market Capitalization

$

2,321,000

$

1,158,000

$

2,138,000

$

1,058,000

Share Price (as of the last day of the period)

$

90.31

$

46.09

$

83.83

$

42.31

Weighted average common shares outstanding - basic

25,620

25,068

25,170

24,715

Weighted average common shares outstanding - diluted

25,620

25,068

25,760

25,234

Earnings Profile

Total revenues

$

60,786

$

51,796

$

219,240

$

204,800

Net income (loss) attributable to common stockholders

(4,653

)

(6,879

)

23,037

44,018

NOI (1)

36,565

29,724

128,389

118,396

Same Store NOI (2)

33,155

28,495

115,332

109,286

Same Store NOI Growth (%) (2)

16.4

%

5.5

%

Earnings Metrics Per Common Share (diluted basis)

Earnings (loss)

$

(0.18

)

$

(0.27

)

$

0.89

$

1.74

FFO (1)

$

0.74

$

0.55

$

2.47

$

2.27

Core FFO (1)

$

0.78

$

0.56

$

2.43

$

2.20

AFFO (1)

$

0.87

$

0.64

$

2.75

$

2.47

Dividends declared per common share

$

0.380

$

0.341

$

1.404

$

1.279

     FFO Coverage (3)

1.95x

1.62x

1.76x

1.77x

     Core FFO Coverage (3)

2.06x

1.65x

1.73x

1.72x

     AFFO Coverage (3)

2.30x

1.88x

1.96x

1.94x

Portfolio

Total Properties

39

37

39

37

Total Units (4)

14,776

13,976

14,825

14,205

     Occupancy

94.2

%

95.3

%

94.3

%

94.1

%

     Average Effective Monthly Rent per Unit

$

1,310

$

1,130

$

1,261

$

1,128

Same Store Portfolio Metrics (2)

Total Same Store Properties

34

34

33

33

Total Same Store Units

13,456

13,406

13,098

13,148

     Occupancy

94.4

%

95.3

%

94.2

%

93.9

%

     Average Effective Monthly Rent per Unit

$

1,310

$

1,135

$

1,255

$

1,130

Value-Add Program

Completed Full/Partial Interior Rehab Units

531

285

1,264

1,679

Cumulative Completed Rehab Units (5)

6,398

     Average Increase to Effective Monthly Rent

     per Unit (Post-Rehab)

$

139

     ROI on Post-Rehab Units

21.8

%

Outstanding Debt Summary

Total Mortgage Debt

$

1,280,765

$

1,167,880

Credit Facilities

335,000

183,000

Total Debt Outstanding

$

1,615,765

$

1,350,880

     Leverage Ratio (Net Debt to Enterprise Value) (6)

39

%

53

%

(1)

For more information and reconciliations of NOI, FFO, Core FFO and AFFO, see the “FFO, Core FFO and AFFO,” “NOI and Same Store NOI” and “Definitions and Reconciliations of Non-GAAP Measures” sections of this release.

(2)

We define “Same Store” properties as properties that were in our Portfolio for the entirety of the periods being compared. For additional information regarding our Q1 Same Store properties, see the “Q1 Same Store Results” section of this release.

(3)

Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

(4)

Total units owned as of March 31, 2022 is 14,825, however 49 units are currently excluded due to casualty events.

(5)

Inclusive of all full and partial interior upgrades completed through March 31, 2022. Cumulative results exclude rehabs completed for properties sold through March 31, 2022.

(6)

For more information and a reconciliation of debt to net debt, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.

NXRT.NEXPOINT.COM

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Guidance Range (1)

Low-End

Mid-Point

High-End

Prior Mid-Point

Earnings (loss) per diluted share (2)

$

4.11

$

4.19

$

4.28

$

4.15

Core FFO per diluted share (2) (3)

$

2.93

$

3.01

$

3.09

$

2.97

Same Store Growth: (4)

Rental Income

10.7

%

11.4

%

12.2

%

10.9

%

Total Revenue

10.1

%

10.8

%

11.6

%

10.2

%

Total Expenses

6.6

%

5.9

%

5.2

%

6.3

%

Same Store NOI (3)

12.6

%

14.3

%

16.0

%

13.0

%

Other Considerations: (5)

Acquisitions

$

150.0

$

225.0

$

300.0

$

225.0

Dispositions

$

150.0

$

225.0

$

300.0

$

225.0

(1)

Full Year 2022 guidance forecast includes Same Store growth projections presented above, which takes into effect the forecast dispositions of Old Farm, Stone Creek at Old Farm and Hollister Place, thereby removing those assets from the Full Year 2022 pro forma Same Store pool.

(2)

Weighted average diluted share count estimate for full year 2021 is approximately 26.2 million.

(3)

Same Store NOI and Core FFO are non-GAAP measures. For reconciliations of Full Year 2022 Same Store NOI and Core FFO guidance to net loss guidance and a discussion of why we consider these non-GAAP measures useful, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.

(4)

Year-over-year growth for the Full Year 2022 pro forma Same Store pool (31 properties).

(5)

We continue to evaluate our Portfolio for capital recycling opportunities. Transaction volumes presented are incorporated into the EPS and CFFO guidance above. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions, except as required by law.

NXRT.NEXPOINT.COM

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(1)

Management estimates based on independent third-party review of our properties.

(2)

Full Year 2022 NOI Guidance is presented for the existing portfolio (41 properties as of April 1, 2022).

(3)

The Company anticipates net income will be in the range between approximately $108.2 million and $112.6 million for the full year 2022 and between ($5.0) million and ($6.6) million for the second quarter of 2022. FY 2022 NOI Guidance considers the completed acquisitions of The Adair and Estates on Maryland and the forecasted dispositions of Hollister Place, Old Farm and Stone Creek at Old Farm and assumes no further acquisition or disposition activity for the remainder of the year.

(4)

2022 Pro Forma NOI assumes The Adair, Estates on Maryland, Old Farm, Stone Creek and Hollister Place were owned for the full year 2022, which we estimate would have contributed approximately an additional $800, $1,000, $1,900, $500 and $700, respectively, to NOI. The Adair and Estates on Maryland mortgage debt added to liabilities.

(5)

Includes approximately $14.1 million that is held for value-add upgrades; reduced by $14.1 million for estimated 2022 rehab expenditures.

(6)

Includes approximately $0.9 million in forward 12-month principal payments (which excludes the repayment of The Cornerstone loan which we expect to refinance in 2023) and $71.1 million of cash used to purchase The Adair and Estates on Maryland on April 1, 2022.

(7)

Includes outstanding balance of March 31, 2022.

NXRT.NEXPOINT.COM

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March 31, 2022

December 31, 2021

(Unaudited)

ASSETS

Operating Real Estate Investments

Land

$

375,857

$

375,857

Buildings and improvements

1,745,341

1,743,866

Intangible lease assets

1,376

2,576

Construction in progress

4,529

6,078

Furniture, fixtures and equipment

127,030

120,419

Total Gross Operating Real Estate Investments

2,254,133

2,248,796

Accumulated depreciation and amortization

(309,002

)

(287,096

)

Total Net Real Estate Investments

1,945,131

1,961,700

Cash and cash equivalents

99,538

49,450

Restricted cash

32,586

39,246

Accounts receivable, net

9,421

4,844

Prepaid and other assets

11,631

4,701

Fair market value of interest rate swaps

58,104

3,526

TOTAL ASSETS

$

2,156,411

$

2,063,467

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Mortgages payable, net

$

1,276,240

$

1,276,285

Credit facility, net

332,979

278,215

Accounts payable and other accrued liabilities

12,539

12,590

Accrued real estate taxes payable

7,896

13,182

Accrued interest payable

2,788

2,491

Security deposit liability

2,989

2,945

Prepaid rents

1,811

1,775

Total Liabilities

1,637,242

1,587,483

Redeemable noncontrolling interests in the Operating Partnership

6,614

6,139

Stockholders' Equity:

Preferred stock, $0.01 par value: 100,000,000 shares authorized; 0 shares issued

—

—

Common stock, $0.01 par value: 500,000,000 shares authorized; 25,700,190 and 25,500,567 shares issued and outstanding, respectively

257

255

Additional paid-in capital

411,059

407,803

Accumulated earnings less dividends

44,246

59,209

Accumulated other comprehensive income

56,993

2,578

Total Stockholders' Equity

512,555

469,845

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,156,411

$

2,063,467

NXRT.NEXPOINT.COM

Page 9

For the Three Months Ended March 31,

2022

2021

Revenues

Rental income

$

59,297

$

50,340

Other income

1,489

1,456

Total revenues

60,786

51,796

Expenses

Property operating expenses

13,596

11,216

Real estate taxes and insurance

8,720

8,722

Property management fees (1)

1,757

1,485

Advisory and administrative fees (2)

1,843

1,868

Corporate general and administrative expenses

3,486

2,940

Property general and administrative expenses

2,006

1,559

Depreciation and amortization

23,718

20,758

Total expenses

55,126

48,548

Operating income

5,660

3,248

Interest expense

(10,636

)

(10,616

)

Casualty gain

128

—

Miscellaneous income

181

468

Net loss

(4,667

)

(6,900

)

Net loss attributable to redeemable noncontrolling interests in the Operating Partnership

(14

)

(21

)

Net loss attributable to common stockholders

$

(4,653

)

$

(6,879

)

Other comprehensive income

Unrealized gains on interest rate derivatives

54,579

31,342

Total comprehensive income

49,912

24,442

Comprehensive income attributable to redeemable noncontrolling interests in the Operating Partnership

150

73

Comprehensive income attributable to common stockholders

$

49,762

$

24,369

Weighted average common shares outstanding - basic

25,620

25,068

Weighted average common shares outstanding - diluted

25,620

25,068

Loss per share - basic

$

(0.18

)

$

(0.27

)

Loss per share - diluted

$

(0.18

)

$

(0.27

)

(1)

Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Operating Partnership (the “OP”).

(2)

Fees incurred to the Company’s adviser.

NXRT.NEXPOINT.COM

Page 10

For the Three Months Ended March 31,

2022

2021

Net loss

$

(4,667

)

$

(6,900

)

Adjustments to reconcile net loss to NOI:

Advisory and administrative fees

1,843

1,868

Corporate general and administrative expenses

3,486

2,940

Casualty-related expenses

(1)

1,047

42

Casualty gains

(128

)

—

Pandemic expense

(2)

3

24

Property general and administrative expenses

(3)

627

376

Depreciation and amortization

23,718

20,758

Interest expense

10,636

10,616

NOI

$

36,565

$

29,724

Less Non-Same Store

Revenues

(5,283

)

(1,919

)

Operating expenses

1,876

1,031

Operating income

(3

)

(341

)

Same Store NOI

$

33,155

$

28,495

(1)

Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses.

(2)

Represents additional cleaning, disinfecting and other costs incurred at the properties related to COVID-19.

(3)

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.

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For the Three Months Ended March 31,

2022

2021

$ Change

% Change

Revenues

Same Store

Rental income

$

54,121

$

48,434

$

5,687

11.7

%

Other income

1,382

1,443

(61

)

-4.2

%

Same Store revenues

55,503

49,877

5,626

11.3

%

Non-Same Store

Rental income

5,176

1,906

3,270

N/M

Other income

107

13

94

N/M

Non-Same Store revenues

5,283

1,919

3,364

N/M

Total revenues

60,786

51,796

8,990

17.4

%