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NXRT NexPoint Residential Trust

Filed: 27 Apr 21, 8:07am

Exhibit 99.1

 

27 April 2021 | NYSE: NXRT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS SUPPLEMENT: FIRST QUARTER 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC.

2515 MCKINNEY AVE SUITE 1100

DALLAS, TX 75201

PHONE: 833-463-6697

INVESTOR RELATIONS:

JACKIE GRAHAM

 

NXRT.NEXPOINT.COM

 

 

 

 

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

 

 

Earnings Release

 

1

Cautionary Statement Regarding Forward-Looking Statements

 

2

Overview

 

4

Highlights of Recent Activity

 

5

Financial Summary

 

6

2021 Full Year Guidance

 

7

Components of Net Asset Value

 

8

Consolidated Balance Sheets

 

9

Consolidated Statements of Operations

 

10

Q1 Same Store Results

 

11

Q1 Same Store Properties Operating Metrics

 

13

QoQ Same Store Properties Operating Metrics

 

14

FFO, Core FFO and AFFO

 

15

Historical Capital Expenditures

 

16

Value-Add Program Details

 

17

Outstanding Debt Details

 

20

Debt Maturity Schedule

 

22

Historical Acquisition Details

 

23

Historical Disposition Details

 

24

Definitions and Reconciliations of Non-GAAP Measures

 

25

 

 

 

   AVANT AT PEMBROKE PINES

 

   LEASING OFFICE: CONSTRUCTION COMMENCING Q2 2021

   UPDATED EXTERIOR COMMUNITY AMENITIES

   OPEN AND READY FOR HIGH SEASON

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

Contact:

Investor Relations

Jackie Graham

JGraham@nexpoint.com

833-463-6697

Media inquiries: JGraham@nexpoint.com

 

NEXPOINT RESIDENTIAL TRUST, INC. REPORTS FIRST QUARTER 2021 RESULTS

NXRT Increases 2021 Full Year Guidance; Continues to Execute Value-Add Strategy

Dallas, TX, April 27, 2021 – NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the first quarter ended March 31, 2021.

Highlights

NXRT1 reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(6.9)M, $13.8M, $14.1M and $16.0M, respectively, attributable to common stockholders for the quarter ended March 31, 2021, compared to Net Income, FFO, Core FFO, and AFFO of $28.0M, $12.4M, $13.6M and $15.3M, respectively, attributable to common stockholders for the quarter ended March 31, 2020.

For the three months ended March 31, 2021, Q1 Same Store properties3 average effective rent, total revenue and occupancy increased 1.2%, 2.1% and 110 bps, respectively, and NOI2 decreased (0.3)%4 from the prior year period.

The weighted average effective monthly rent per unit across all 37 properties held as of March 31, 2021 (the “Portfolio”), consisting of 13,976 units5, was $1,130, while physical occupancy was 95.3%.

NXRT paid a first quarter dividend of $0.34125 per share of common stock on March 31, 2021.

During the first quarter, for the properties in our Portfolio, we completed 285 full and partial upgrades and leased 421 upgraded units, achieving an average monthly rent premium of $163 and a 20.7% ROI6.

Since inception, for the properties currently in our Portfolio, we have completed 5,543 full & partial, 4,364 kitchen and laundry appliances, and 9,422 technology packages, resulting in a $129, $48, and $44 average monthly rental increase per unit and a 21.5%, 74.1%, and 33.3% 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 income (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 35 properties encompassing 13,564 units of apartment space in our Same Store pool for the three months ended March 31, 2021 (our “Q1 Same Store” properties). The same store unit count excludes 93 units that are currently down due to fires and winter storm Uri in February 2021 (Atera: 26 units, Hollister Place: 25 units, Venue at 8651: 21 units, Timber Creek: 15 units, Stone Creek: 5 units and Preserve at Terrell Mill: 1 unit).

 

(4)

After excluding revenue and expenses for the units down due to casualty events from the Q1 Same Store pool, SS NOI increased 0.38% quarter over quarter. However, the SS NOI calculation presented herein includes the down units in the prior period calculation.

 

(5)

Total units owned in our Portfolio is 14,205, however 229 units are currently down due to fires, a tornado, and winter storm Uri (Cutter’s Point: 136 units, Atera: 26 units, Hollister Place: 25 units, Venue at 8651: 21 units, Timber Creek: 15 units, Stone Creek: 5 units and Preserve at Terrell Mill: 1 unit).

 

(6)

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

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

First Quarter 2021 Financial Results

Total revenues were $51.8 million for the first quarter of 2021, compared to $52.6 million for the first quarter of 2020.

Net loss for the first quarter of 2021 totaled $(6.9) million, or loss of $(0.27) per diluted share, which included $20.8 million of depreciation and amortization expense. This compared to net income of $28.0 million, or income of $1.08 per diluted share, for the first quarter of 2020, which included $23.3 million of depreciation and amortization expense.

The change in our net loss of $(6.9) million for the three months ended March 31, 2021 as compared to our net income of $28.0 million for the three months ended March 31, 2020 primarily relates to decreases in gains on sales of real estate and total revenues, partially offset by decreases in depreciation, interest, and property operating expenses.

For the first quarter of 2021, NOI was $29.6 million on 37 properties, compared to $30.0 million for the first quarter of 2020 on 37 properties.

For the first quarter of 2021, Q1 Same Store NOI decreased (0.3)% to $28.3 million, compared to $28.4 million for the first quarter of 2020.

For the first quarter of 2021, FFO totaled $13.8 million, or $0.55 per diluted share, compared to $12.4 million, or $0.48 per diluted share, for the first quarter of 2020.

For the first quarter of 2021, Core FFO totaled $14.1 million, or $0.56 per diluted share, compared to $13.6 million, or $0.53 per diluted share, for the first quarter of 2020.

For the first quarter of 2021, AFFO totaled $16.0 million, or $0.64 per diluted share, compared to $15.3 million, or $0.59 per diluted share, for the first quarter of 2020.

First Quarter Earnings Conference Call

NXRT will host a call on Tuesday, April 27, 2021 at 11:00 a.m. ET to discuss its first quarter financial results. The conference call can be accessed live over the phone by dialing 800-367-2403 or, for international callers, +1 334-777-6978 and using passcode Conference ID: 5369761.  A live audio webcast of the call will be available online at the Company's website, nxrt.nexpoint.com. 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, May 4, 2021 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 5369761.

 

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,” “intend,” “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, NXRT’s updated guidance for financial results for the full year 2021 and the related assumptions, including the effects of tornado damage at Cutter’s Point, expected acquisitions and dispositions, shares outstanding and real estate taxes, NXRT’s net asset value and the related components and assumptions, including estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, guidance for the second quarter 2021 and the related assumptions, planned value-add programs, including projected average rent, rent change and return on investment, expected return to service of units at Cutter’s Point damaged by the tornado, expected return to service of units at Timber Creek and Venue 8651 damaged by fires, expected return to service of units at properties impacted by Winter Storm Uri, and expected 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 the ultimate geographic spread, duration and severity of the COVID-19 pandemic, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, as well as those described in greater detail in our filings with the Securities and Exchange Commission, particularly those specifically 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

 

nxrt.nexpoint.com

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

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.

 

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC: FIRST QUARTER 2021 OVERVIEW

Company Profile

(share counts in thousands)

 

Exchange/Ticker

NYSE: NXRT

Share Price (1)

$50.70

Insider Ownership

12.20%

2021 Q2 Dividend Per Share

$0.34125

Dividend Yield (1)

2.69%

Shares outstanding - basic (2)

25,068

Shares outstanding - diluted (2)

25,068

(1)

As of the close of market trading on April 26, 2021.

(2)

Weighted average for the three months ended March 31, 2021. 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.  

 

Portfolio Composition by Market

 

Market

 

% of Units

Dallas/Fort Worth

 

18.2%

South Florida

 

13.8%

Nashville

 

13.0%

Phoenix

 

11.8%

Atlanta

 

10.3%

Houston

 

8.3%

Orlando

 

8.3%

Las Vegas

 

8.1%

Charlotte

 

4.1%

Tampa

 

4.1%

Total

 

100.0%

 

 

 

 

 

Revenue & Average Rent Per Unit

 

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

 

 

 

 

 

 

 

 

 


 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

Highlights of Recent Activity

 

SUNBELT RENT GROWTH OUTPERFORMS COASTS

 

NXRT Q1 2021 NEW LEASES & RENEWALS

 

Market

 

New Leases

 

% Increase

 

Rent Increase

 

 

Renewals

 

% Increase

 

Rent Increase

DFW

 

315

 

3.1%

 

$30.85

 

 

318

 

2.8%

 

$26.22

HOU

 

162

 

-0.2%

 

($2.51)

 

 

155

 

0.5%

 

$5.86

CHA

 

82

 

4.5%

 

$46.51

 

 

89

 

3.0%

 

$30.42

NASH

 

243

 

1.3%

 

$13.89

 

 

297

 

1.7%

 

$17.83

ATL

 

131

 

6.8%

 

$77.26

 

 

208

 

3.7%

 

$40.88

ORL

 

159

 

-1.5%

 

($16.80)

 

 

170

 

0.6%

 

$7.65

TPA

 

76

 

7.8%

 

$78.64

 

 

88

 

3.0%

 

$29.30

South FL

 

199

 

7.5%

 

$111.37

 

 

272

 

1.7%

 

$23.87

PHX

 

238

 

5.9%

 

$64.77

 

 

246

 

2.3%

 

$25.48

LSV

 

159

 

5.0%

 

$57.13

 

 

186

 

3.8%

 

$43.20

TOTAL

 

1,764

 

3.9%

 

$43.42

 

 

2,029

 

2.2%

 

$24.85

 

 

LEASED REHABS

 

 

DIVIDEND GROWTH

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Financial Summary

 

 

Q1 2021

 

 

Q1 2020

 

 

FY 2020

 

 

FY 2019

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Profile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization

 

$

1,158,000

 

 

$

627,000

 

 

$

1,058,000

 

 

$

1,136,000

 

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

 

$

46.09

 

 

$

25.21

 

 

$

42.31

 

 

$

45.00

 

Weighted average common shares outstanding - basic

 

 

25,068

 

 

 

25,388

 

 

 

24,715

 

 

 

24,116

 

Weighted average common shares outstanding - diluted

 

 

25,068

 

 

 

25,851

 

 

 

25,234

 

 

 

24,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Profile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

51,796

 

 

$

52,582

 

 

$

204,800

 

 

$

181,066

 

Net income (loss) attributable to common stockholders

 

 

(6,879

)

 

 

27,955

 

 

 

44,018

 

 

 

99,140

 

NOI (1)

 

 

29,581

 

 

 

29,985

 

 

 

116,092

 

 

 

102,591

 

Same Store NOI (2)

 

 

28,267

 

 

 

28,359

 

 

 

68,150

 

 

 

66,054

 

Same Store NOI Growth (%) (2)

 

 

(0.3

)%

 

 

 

 

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Metrics Per Common Share (diluted basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss)

 

$

(0.27

)

 

$

1.08

 

 

$

1.74

 

 

$

4.03

 

FFO (1)

 

$

0.55

 

 

$

0.48

 

 

$

2.27

 

 

$

1.66

 

Core FFO (1)

 

$

0.56

 

 

$

0.53

 

 

$

2.20

 

 

$

1.93

 

AFFO (1)

 

$

0.64

 

 

$

0.59

 

 

$

2.47

 

 

$

2.20

 

Dividends declared per common share

 

$

0.341

 

 

$

0.313

 

 

$

1.279

 

 

$

1.138

 

     FFO Coverage (3)

 

1.62x

 

 

1.53x

 

 

1.77x

 

 

1.46x

 

     Core FFO Coverage (3)

 

1.65x

 

 

1.68x

 

 

1.72x

 

 

1.70x

 

     AFFO Coverage (3)

 

1.88x

 

 

1.89x

 

 

1.94x

 

 

1.94x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Properties

 

 

37

 

 

 

37

 

 

 

37

 

 

 

40

 

Total Units (4)

 

 

13,976

 

 

 

14,104

 

 

 

14,205

 

 

 

14,724

 

     Occupancy

 

 

95.3

%

 

 

94.2

%

 

 

94.1

%

 

 

94.2

%

     Average Effective Monthly Rent per Unit

 

$

1,130

 

 

$

1,110

 

 

$

1,128

 

 

$

1,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Portfolio Metrics (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Same Store Properties

 

 

35

 

 

 

35

 

 

 

24

 

 

 

24

 

Total Same Store Units

 

 

13,564

 

 

 

13,657

 

 

 

9,074

 

 

 

9,074

 

     Occupancy

 

 

95.3

%

 

 

94.2

%

 

 

94.2

%

 

 

94.3

%

     Average Effective Monthly Rent per Unit

 

$

1,127

 

 

$

1,114

 

 

$

1,047

 

 

$

1,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-Add Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Full/Partial Interior Rehab Units

 

 

285

 

 

 

412

 

 

 

1,679

 

 

 

2,516

 

Cumulative Completed Rehab Units (5)

 

 

5,543

 

 

 

 

 

 

 

 

 

 

 

 

 

     Average Increase to Effective Monthly Rent

     per Unit (Post-Rehab)

 

$

129

 

 

 

 

 

 

 

 

 

 

 

 

 

     ROI on Post-Rehab Units

 

 

21.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding Debt Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Mortgage Debt

 

$

1,167,880

 

 

$

1,151,683

 

 

 

 

 

 

 

 

 

Credit Facilities

 

 

183,000

 

 

 

225,000

 

 

 

 

 

 

 

 

 

Total Debt Outstanding

 

$

1,350,880

 

 

$

1,376,683

 

 

 

 

 

 

 

 

 

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

 

 

53

%

 

 

67

%

 

 

 

 

 

 

 

 

(1)

For more information and reconciliations of NOI, FFO, Core FFO and AFFO, see the “FFO, Core FFO and AFFO” 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. Total same store units owned is 13,657, however 93 units are currently down due to fires and winter storm Uri in February 2021 (See page 1 for detail).

(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 is 14,205, however 229 units are currently down due to fires, a tornado, and winter storm Uri in February 2021.

(5)

Inclusive of all full and partial interior upgrades completed through March 31, 2021. Cumulative results exclude rehabs completed for properties sold through March 31, 2021.

(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.

 

 

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

2021 Full Year Guidance Summary

NXRT is providing updated 2021 guidance ranges for earnings (loss) per diluted share, Core FFO per diluted share, Same Store rental income, Same Store total revenue, and Same Store NOI as follows:

 

 

Guidance Range (1)

 

 

 

 

 

 

 

Low-End

 

 

Mid-Point

 

 

High-End

 

 

Prior Mid-Point

 

Earnings (loss) per diluted share (2)

 

$

(1.07

)

 

$

(0.99

)

 

$

(0.91

)

 

$

(0.88

)

Core FFO per diluted share (2) (3)

 

$

2.21

 

 

$

2.29

 

 

$

2.37

 

 

$

2.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Growth: (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Income

 

 

4.4

%

 

 

4.9

%

 

 

5.5

%

 

 

4.7

%

Total Revenue

 

 

4.3

%

 

 

4.8

%

 

 

5.4

%

 

 

4.5

%

Total Operating Expenses (5)

 

 

7.7

%

 

 

6.6

%

 

 

5.5

%

 

 

6.6

%

Same Store NOI (3)

 

 

1.8

%

 

 

3.6

%

 

 

5.4

%

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Considerations: (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

100.0

 

 

$

150.0

 

 

$

200.0

 

 

$

150.0

 

Dispositions (7)

 

$

75.0

 

 

$

112.5

 

 

$

150.0

 

 

$

112.5

 

(1)

Full Year 2021 guidance forecast includes Same Store growth projections presented above, which takes into effect the tornado damage at Cutter’s Point, fires at Timber Creek and Venue 8651, units damaged by winter storm Uri and the forecast dispositions of Beechwood Terrace and Cedar Pointe and assumes no further acquisition or disposition activity for the remainder of the year.

(2)

Weighted average diluted share count estimate for full year 2021 is approximately 25.7 million.

(3)

Same Store NOI and Core FFO are non-GAAP measures. For reconciliations of Full Year 2021 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 2021 pro forma Same Store pool (35 properties).

(5)

The largest component to our same store operating expense forecast, real estate tax expense, is largely outside of our ability to control and while we do everything in our power to effectuate reasonable outcomes, we come into the 2021 forecast year amidst the backdrop of a COVID-19 recession that has accentuated state and local municipal budget shortfalls. One expected area of opportunity for such state and local municipalities to make up for any anticipated or actual budget shortfalls is through increased taxation. There is significant uncertainty surrounding potential property value and millage rate increases for 2021, and our forecast reflects a similar variance in potential results. Furthermore, both Davidson and Williamson County, Tennessee operate on a four-year reappraisal cycle, which is set to occur in 2021. As a result, we expect to see significant assessed value inflation across our Nashville portfolio in 2021. Initial indications of value delivered on April 23, 2021 were slightly favorable but generally consistent with our initial 2021 budget and guidance expectations. Across all assets, we expect to take all available action to control real estate tax expense inflation but we do see this as a significant component of full year performance and we highlight it here as such.

(6)

We continue to evaluate our Portfolio for capital recycling opportunities. Transaction volumes presented are not incorporated into the EPS and Core FFO 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.

(7)

Includes the forecast dispositions of Beechwood Terrace and Cedar Pointe.

Additional information on 2021 financial and earnings guidance is included in the following sections of this release.


 

nxrt.nexpoint.com

Page 7

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Components of Net Asset Value

(dollar and share amounts in thousands, except per share and per unit data)

 

REAL ESTATE VALUE BY MARKET

 

Property

 

NOI

 

 

Cap Rate Range (1)

 

 

Value Range (2)

 

Market

 

Contribution

 

 

Min

 

 

Max

 

 

Min

 

 

Max

 

Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dallas/Fort Worth

 

13.2%

 

 

4.4%

 

 

4.8%

 

 

$

330,812

 

 

$

369,494

 

Houston

 

7.1%

 

 

4.7%

 

 

5.0%

 

 

$

168,456

 

 

$

185,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charlotte

 

3.8%

 

 

4.4%

 

 

4.7%

 

 

$

95,986

 

 

$

106,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta

 

10.7%

 

 

4.4%

 

 

4.7%

 

 

$

272,268

 

 

$

300,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nashville

 

11.9%

 

 

4.4%

 

 

4.7%

 

 

$

302,740

 

 

$

334,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Orlando

 

8.0%

 

 

4.7%

 

 

5.0%

 

 

$

191,320

 

 

$

210,580

 

Tampa

 

3.6%

 

 

4.4%

 

 

4.7%

 

 

$

91,030

 

 

$

100,604

 

South Florida

 

17.4%

 

 

4.4%

 

 

4.7%

 

 

$

441,769

 

 

$

488,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

9.7%

 

 

4.7%

 

 

5.0%

 

 

$

231,229

 

 

$

254,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix

 

14.6%

 

 

4.4%

 

 

4.7%

 

 

$

371,251

 

 

$

410,297

 

Total / Ave

 

100.0%

 

 

4.5%

 

 

4.8%

 

 

$

2,496,861

 

 

$

2,760,693

 

 

NAV SUMMARY

 

Component

 

Min

 

 

Max

 

Tangible Assets

 

 

 

 

 

 

 

 

Real Estate (2)

 

$

2,496,861

 

 

$

2,760,693

 

Cash

 

22,706

 

Restricted Cash - Renovation Reserves (4)

 

9,139

 

Renovation Capital Expenditures (4)

 

(9,139)

 

Cash Adjustments (5)

 

(1,077)

 

Fair Market Value of Interest Rate Swaps

 

0

 

Other Assets

 

30,121

 

Value of Assets

 

$

2,548,611

 

 

$

2,812,443

 

 

 

 

 

 

 

 

 

 

Tangible Liabilities

 

 

 

 

 

 

 

 

Credit Facility (6)

 

$183,000

 

Mortgage Debt

 

1,167,880

 

Total Outstanding Debt

 

1,350,880

 

Forward 12-month Principal Payments (5)

 

(1,077)

 

Total Outstanding Debt (FY 2021 Est.)

 

1,349,803

 

Other Tangible Liabilities (at Book)

 

25,652

 

    Derivative Liability

 

12,198

 

Value of Liabilities

 

$1,387,653

 

Net Leverage (mid-point)

 

52%

 

Net Asset Value

 

$

1,160,958

 

 

$

1,424,790

 

Shares outstanding - diluted (FY 2021 Est.)

 

25,759

 

Est. NAV / Share

 

$

45.07

 

 

$

55.31

 

NAV / Share (mid-point)

 

$50.19

 

 

NOI ESTIMATE

 

 

 

 

 

 

 

 

 

Q4 2020 NOI Actual

 

28,417

 

Q1 2021 NOI Actual

 

29,581

 

 

 

Low

 

 

High

 

Estimated Q2 2021 NOI Guidance (3)

 

 

28,936

 

 

 

30,313

 

2021 NOI Guidance (3)

 

$

119,291

 

 

$

123,422

 

IMPLIED VALUATION METRICS

 

 

 

Min

 

Max

Implied Real Estate Value

 

$2,496,861

 

$2,760,693

No. of Units (March 31, 2021) (2)

 

14,205

Implied Value/Apartment Unit

 

$175.8

 

$194.3

Implied Value/Apartment Unit (mid-point)

 

$185.1

 

 

 

(1)

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

(2)

Estimated value ranges are presented for the existing portfolio (37 properties at March 31, 2021).

(3)

The Company anticipates net income will be in the range between approximately ($23.5) million and ($27.7) million for the full year 2021 and between (7.9) million and ($9.2) million for the second quarter of 2021.

(4)

Includes approximately $9.1 million that is held for value-add upgrades; reduced by $9.1 million for estimated 2021 rehab expenditures.

(5)

Includes approximately $1.1 million in forward 12-month principal payments.

(6)

Includes outstanding balance as of March 31, 2021.

 

nxrt.nexpoint.com

Page 8

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Operating Real Estate Investments

 

 

 

 

 

 

 

 

Land

 

$

323,429

 

 

$

323,429

 

Buildings and improvements

 

 

1,546,465

 

 

 

1,544,115

 

Intangible lease assets

 

 

1,675

 

 

 

1,675

 

Construction in progress

 

 

11,975

 

 

 

10,796

 

Furniture, fixtures, and equipment

 

 

100,377

 

 

 

96,228

 

Total Gross Operating Real Estate Investments

 

 

1,983,921

 

 

 

1,976,243

 

Accumulated depreciation and amortization

 

 

(235,669

)

 

 

(215,494

)

Total Net Operating Real Estate Investments

 

 

1,748,252

 

 

 

1,760,749

 

Total Net Real Estate Investments

 

 

1,748,252

 

 

 

1,760,749

 

Cash and cash equivalents

 

 

22,706

 

 

 

24,457

 

Restricted cash

 

 

29,925

 

 

 

32,558

 

Accounts receivable, net

 

 

7,757

 

 

 

9,045

 

Prepaid and other assets

 

 

1,578

 

 

 

2,405

 

TOTAL ASSETS

 

$

1,810,218

 

 

$

1,829,214

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgages payable, net

 

$

1,162,969

 

 

$

1,162,855

 

Credit facility, net

 

 

182,531

 

 

 

182,323

 

Accounts payable and other accrued liabilities

 

 

11,022

 

 

 

10,058

 

Accrued real estate taxes payable

 

 

7,876

 

 

 

12,822

 

Accrued interest payable

 

 

2,240

 

 

 

2,274

 

Security deposit liability

 

 

2,670

 

 

 

2,688

 

Prepaid rents

 

 

1,844

 

 

 

1,639

 

Fair market value of interest rate swaps

 

 

12,198

 

 

 

43,530

 

Total Liabilities

 

 

1,383,350

 

 

 

1,418,189

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests in the Operating Partnership

 

 

3,375

 

 

 

3,098

 

 

 

 

 

 

 

 

 

 

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; 25,127,141 and 25,016,957 shares issued and outstanding, respectively

 

 

251

 

 

 

250

 

Additional paid-in capital

 

 

376,897

 

 

 

376,710

 

Accumulated earnings less dividends

 

 

59,451

 

 

 

75,321

 

Accumulated other comprehensive loss

 

 

(13,106

)

 

 

(44,354

)

Total Stockholders' Equity

 

 

423,493

 

 

 

407,927

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,810,218

 

 

$

1,829,214

 

 

 

nxrt.nexpoint.com

Page 9

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share amounts)

(Unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

Rental income

 

$

50,340

 

 

$

51,115

 

Other income

 

 

1,456

 

 

 

1,467

 

Total revenues

 

 

51,796

 

 

 

52,582

 

Expenses

 

 

 

 

 

 

 

 

Property operating expenses

 

 

11,216

 

 

 

11,721

 

Real estate taxes and insurance

 

 

8,722

 

 

 

8,023

 

Property management fees (1)

 

 

1,485

 

 

 

1,550

 

Advisory and administrative fees (2)

 

 

1,868

 

 

 

1,865

 

Corporate general and administrative expenses

 

 

2,940

 

 

 

2,701

 

Property general and administrative expenses

 

 

1,559

 

 

 

1,832

 

Depreciation and amortization

 

 

20,758

 

 

 

23,338

 

Total expenses

 

 

48,548

 

 

 

51,030

 

Operating income before gain on sales of real estate

 

 

3,248

 

 

 

1,552

 

Gain on sales of real estate

 

 

 

 

 

38,972

 

Operating income

 

 

3,248

 

 

 

40,524

 

Interest expense

 

 

(10,616

)

 

 

(11,662

)

Loss on extinguishment of debt and modification costs

 

 

 

 

 

(874

)

Casualty gains

 

 

 

 

 

51

 

Miscellaneous income

 

 

468

 

 

 

 

Net income (loss)

 

 

(6,900

)

 

 

28,039

 

Net income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership

 

 

(21

)

 

 

84

 

Net income (loss) attributable to common stockholders

 

$

(6,879

)

 

$

27,955

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Unrealized gains (losses) on interest rate derivatives

 

 

31,342

 

 

 

(50,540

)

Total comprehensive income (loss)

 

 

24,442

 

 

 

(22,501

)

Comprehensive income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership

 

 

73

 

 

 

(68

)

Comprehensive income (loss) attributable to common stockholders

 

$

24,369

 

 

$

(22,433

)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

25,068

 

 

 

25,388

 

Weighted average common shares outstanding - diluted

 

 

25,068

 

 

 

25,851

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share - basic

 

$

(0.27

)

 

$

1.10

 

Earnings (loss) per share - diluted

 

$

(0.27

)

 

$

1.08

 

(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

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Q1 Same Store Results of Operations for the Three Months Ended March 31, 2021 and 2020

There are 35 properties encompassing 13,564 units of apartment space, or approximately 95.3% of our Portfolio, in our same store pool for the three months ended March 31, 2021 and 2020 (our “Q1 Same Store” properties). Our Q1 Same Store properties exclude Cutter’s Point and Fairways at San Marcos in our Portfolio as of March 31, 2021, as well as the 93 units mentioned on page 1 that are currently down.

As of March 31, 2021, our Q1 Same Store properties were approximately 95.3% leased with a weighted average monthly effective rent per occupied apartment unit of $1,127, a year-over-year increase of 110 bps and $13, respectively.

The following table reflects the revenues, property operating expenses and NOI for the three months ended March 31, 2021 and 2020 for our Q1 Same Store and Non-Same Store properties (dollars in thousands):

 

 

 

For the Three Months Ended March 31,

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

48,811

 

 

$

47,782

 

 

$

1,029

 

 

 

2.2

%

Other income

 

 

1,441

 

 

 

1,426

 

 

 

15

 

 

 

1.1

%

Same Store revenues

 

 

50,252

 

 

 

49,208

 

 

 

1,044

 

 

 

2.1

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

 

1,529

 

 

 

3,333

 

 

 

(1,804

)

 

N/M

 

Other income

 

 

15

 

 

 

41

 

 

 

(26

)

 

 

(63.4

)%

Non-Same Store revenues

 

 

1,544

 

 

 

3,374

 

 

 

(1,830

)

 

N/M

 

Total revenues

 

 

51,796

 

 

 

52,582

 

 

 

(786

)

 

 

(1.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses (1)

 

 

10,833

 

 

 

10,629

 

 

 

204

 

 

 

1.9

%

Real estate taxes and insurance

 

 

8,574

 

 

 

7,507

 

 

 

1,067

 

 

 

14.2

%

Property management fees (2)

 

 

1,436

 

 

 

1,436

 

 

 

 

 

 

0.0

%

Property general and administrative expenses (3)

 

 

1,270

 

 

 

1,277

 

 

 

(7

)

 

 

(0.5

)%

Same Store operating expenses

 

 

22,113

 

 

 

20,849

 

 

 

1,264

 

 

 

6.1

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses (4)

 

 

317

 

 

 

1,032

 

 

 

(715

)

 

N/M

 

Real estate taxes and insurance

 

 

148

 

 

 

516

 

 

 

(368

)

 

 

(71.3

)%

Property management fees (2)

 

 

50

 

 

 

114

 

 

 

(64

)

 

N/M

 

Property general and administrative expenses (5)

 

 

56

 

 

 

86

 

 

 

(30

)

 

 

(34.9

)%

Non-Same Store operating expenses

 

 

571

 

 

 

1,748

 

 

 

(1,177

)

 

N/M

 

Total operating expenses

 

 

22,684

 

 

 

22,597

 

 

 

87

 

 

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Miscellaneous income

 

 

128

 

 

 

 

 

 

128

 

 

 

0.0

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Miscellaneous income

 

 

341

 

 

 

 

 

 

341

 

 

 

0.0

%

Total operating income

 

 

469

 

 

 

 

 

 

469

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

28,267

 

 

 

28,359

 

 

 

(92

)

 

 

(0.3

)%

Non-Same Store

 

 

1,314

 

 

 

1,626

 

 

 

(312

)

 

 

(19.2

)%

Total NOI (6)

 

$

29,581

 

 

$

29,985

 

 

$

(404

)

 

 

(1.3

)%

(1)

For the three months ended March 31, 2021 and 2020, excludes approximately $58,000 and $64,000, respectively, of casualty-related expenses.

(2)

Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.

(3)

For the three months ended March 31, 2021 and 2020, excludes approximately $228,000 and $316,000, respectively, of 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 and franchise tax fees.

 

nxrt.nexpoint.com

Page 11

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

(4)

For the three months ended March 31, 2021 and 2020, excludes approximately $8,000 and $(4,000), respectively, of casualty-related expenses/(recoveries).

(5)

For the three months ended March 31, 2021 and 2020, excludes approximately $5,000 and $153,000, respectively, of 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 and franchise tax fees.

(6)

For additional information regarding NOI, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.

 

The following table contains additional information about our Q1 Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the three months ended March 31, 2021 and 2020 (dollars in thousands, except for per unit data):

 

 

 

Q1 2021

 

 

Q1 2020

 

 

% Change

 

Same Store Total Units

 

 

13,564

 

 

 

13,657

 

 

 

 

 

Same Store Occupied Units

 

 

12,921

 

 

 

12,862

 

 

 

 

 

Same Store Ending Occupancy

 

 

95.3

%

 

 

94.2

%

 

 

1.1

%

Same Store Average Rent per Unit

 

$

1,127

 

 

$

1,114

 

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Rental Income

 

$

48,811

 

 

$

47,782

 

 

 

2.2

%

Same Store Other Income

 

 

1,441

 

 

 

1,426

 

 

 

1.1

%

Total Same Store Revenues

 

 

50,252

 

 

 

49,208

 

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Payroll

 

 

4,324

 

 

 

4,380

 

 

 

(1.3

)%

Repairs & Maintenance

 

 

4,125

 

 

 

3,999

 

 

 

3.2

%

Utilities

 

 

2,384

 

 

 

2,250

 

 

 

6.0

%

Real Estate Taxes

 

 

7,422

 

 

 

6,636

 

 

 

11.8

%

Insurance

 

 

1,152

 

 

 

871

 

 

 

32.3

%

Property Management Fees

 

 

1,436

 

 

 

1,436

 

 

 

0.0

%

Office Operations

 

 

869

 

 

 

853

 

 

 

1.9

%

Marketing

 

 

401

 

 

 

424

 

 

 

(5.4

)%

Total Same Store Operating Expenses

 

 

22,113

 

 

 

20,849

 

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

Miscellaneous income

 

 

128

 

 

 

 

 

 

0.0

%

Total Same Store Operating Income

 

 

128

 

 

 

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 Same Store NOI

 

$

28,267

 

 

$

28,359

 

 

 

(0.3

)%

 

nxrt.nexpoint.com

Page 12

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Q1 Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties by Market (1)

 

Unit Count

 

Average Effective Rent

Occupancy

Total Rental Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

Q1 2021

Q1 2020

% Change

Q1 2021

Q1 2020

bps ∆

Q1 2021

Q1 2020

% Change

Texas

 

 

 

 

 

 

 

 

 

 

 

 

Dallas

 

2,344

 

$973

$961

1.2%

95.6%

93.9%

170

$7,693

$7,499

2.6%

Houston

 

1,154

 

1,118

1,123

(0.4)%

94.5%

95.7%

(120)

4,072

4,176

(2.5)%

Average/Total

 

3,498

 

1,021

1,014

0.7%

95.2%

94.5%

70

11,765

11,675

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

 

 

 

 

 

 

 

 

 

Charlotte

 

562

 

1,015

999

1.6%

96.4%

93.9%

250

1,817

1,780

2.1%

Average/Total

 

562

 

1,015

999

1.6%

96.4%

93.9%

250

1,817

1,780

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta

 

1,459

 

1,135

1,119

1.4%

95.7%

94.3%

140

5,093

4,913

3.7%

Average/Total

 

1,459

 

1,135

1,119

1.4%

95.7%

94.3%

140

5,093

4,913

3.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

 

 

 

 

 

 

 

 

 

Nashville

 

1,848

 

1,016

1,023

(0.7)%

94.2%

94.2%

0

6,011

5,930

1.4%

Average/Total

 

1,848

 

1,016

1,023

(0.7)%

94.2%

94.2%

0

6,011

5,930

1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

 

 

 

Orlando

 

1,172

 

1,151

1,184

(2.8)%

94.5%

94.1%

40

4,152

4,293

(3.3)%

Tampa

 

576

 

991

965

2.7%

95.7%

94.8%

90

1,820

1,753

3.8%

South Florida

 

1,959

 

1,471

1,438

2.3%

96.3%

95.2%

110

9,215

8,905

3.5%

Average/Total

 

3,707

 

1,295

1,284

0.9%

95.6%

94.8%

80

15,187

14,951

1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix

 

1,327

 

1,101

1,066

3.3%

96.7%

96.0%

70

4,864

4,600

5.7%

Average/Total

 

1,327

 

1,101

1,066

3.3%

96.7%

96.0%

70

4,864

4,600

5.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada

 

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

1,163

 

1,153

1,127

2.3%

93.1%

89.2%

390

4,074

3,933

3.6%

Average/Total

 

1,163

 

1,153

1,127

2.3%

93.1%

89.2%

390

4,074

3,933

3.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average/Total

 

13,564

 

$1,127

$1,114

1.2%

95.3%

94.2%

110

$48,811

$47,782

2.2%

(1)

This table only includes the 35 properties in our Q1 Same Store pool.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nxrt.nexpoint.com

Page 13

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

QoQ Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties by Market (1)

 

Unit Count

 

 

Average Effective Rent

 

Occupancy

 

Total Rental Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Q1 2021

 

Q4 2020

 

% Change

 

Q1 2021

 

Q4 2020

 

bps ∆

 

Q1 2021

 

Q4 2020

 

% Change

 

Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dallas

 

 

2,344

 

 

$

973

 

$

974

 

(0.1)%

 

 

95.6

%

 

94.6

%

 

100

 

$

7,693

 

$

7,713

 

(0.3)%

 

Houston

 

 

1,154

 

 

 

1,118

 

 

1,115

 

0.3%

 

 

94.5

%

 

91.9

%

 

260

 

 

4,072

 

 

4,105

 

(0.8)%

 

Average/Total

 

 

3,498

 

 

 

1,021

 

 

1,021

 

0.0%

 

 

95.2

%

 

93.7

%

 

150

 

 

11,765

 

 

11,818

 

(0.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charlotte

 

 

562

 

 

 

1,015

 

 

1,020

 

(0.5)%

 

 

96.4

%

 

92.0

%

 

440

 

 

1,817

 

 

1,765

 

2.9%

 

Average/Total

 

 

562

 

 

 

1,015

 

 

1,020

 

(0.5)%

 

 

96.4

%

 

92.0

%

 

440

 

 

1,817

 

 

1,765

 

2.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta

 

 

1,459

 

 

 

1,135

 

 

1,130

 

0.4%

 

 

95.7

%

 

95.5

%

 

20

 

 

5,093

 

 

4,999

 

1.9%

 

Average/Total

 

 

1,459

 

 

 

1,135

 

 

1,130

 

0.4%

 

 

95.7

%

 

95.5

%

 

20

 

 

5,093

 

 

4,999

 

1.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nashville

 

 

1,848

 

 

 

1,016

 

 

1,020

 

(0.4)%

 

 

94.2

%

 

93.9

%

 

30

 

 

6,011

 

 

6,032

 

(0.3)%

 

Average/Total

 

 

1,848

 

 

 

1,016

 

 

1,020

 

(0.4)%

 

 

94.2

%

 

93.9

%

 

30

 

 

6,011

 

 

6,032

 

(0.3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Orlando

 

 

1,172

 

 

 

1,151

 

 

1,173

 

(1.9)%

 

 

94.5

%

 

92.2

%

 

230

 

 

4,152

 

 

4,088

 

1.6%

 

Tampa

 

 

576

 

 

 

991

 

 

985

 

0.6%

 

 

95.7

%

 

94.6

%

 

110

 

 

1,820

 

 

1,766

 

3.1%

 

South Florida

 

 

1,959

 

 

 

1,471

 

 

1,459

 

0.8%

 

 

96.3

%

 

95.3

%

 

100

 

 

9,214

 

 

8,955

 

2.9%

 

Average/Total

 

 

3,707

 

 

 

1,295

 

 

1,295

 

0.0%

 

 

95.6

%

 

94.2

%

 

140

 

 

15,186

 

 

14,809

 

2.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix

 

 

1,327

 

 

 

1,101

 

 

1,103

 

(0.2)%

 

 

96.7

%

 

94.7

%

 

200

 

 

4,864

 

 

4,865

 

0.0%

 

Average/Total

 

 

1,327

 

 

 

1,101

 

 

1,103

 

(0.2)%

 

 

96.7

%

 

94.7

%

 

200

 

 

4,864

 

 

4,865

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

 

1,163

 

 

 

1,153

 

 

1,139

 

1.2%

 

 

93.1

%

 

93.1

%

 

0

 

 

4,075

 

 

3,984

 

2.3%

 

Average/Total

 

 

1,163

 

 

 

1,153

 

 

1,139

 

1.2%

 

 

93.1

%

 

93.1

%

 

0

 

 

4,075

 

 

3,984

 

2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average/Total

 

 

13,564

 

 

$

1,127

 

$

1,125

 

0.2%

 

 

95.3

%

 

94.0

%

 

130

 

$

48,811

 

$

48,272

 

1.1%

 

 

(1)

This table only includes the 35 properties in our Q1 Same Store pool.

 


 

nxrt.nexpoint.com

Page 14

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

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 months ended March 31, 2021 and 2020 (in thousands, except per share amounts):

 

 

For the Three Months Ended March 31,

 

 

 

 

 

 

 

2021

 

 

2020

 

 

% Change

 

Net income (loss)

 

$

(6,900

)

 

$

28,039

 

 

N/M

 

Depreciation and amortization

 

 

20,758

 

 

 

23,338

 

 

 

(11.1

)%

Gain on sales of real estate

 

 

 

 

 

(38,972

)

 

N/M

 

Adjustment for noncontrolling interests

 

 

(41

)

 

 

(37

)

 

 

10.8

%

FFO attributable to common stockholders

 

 

13,817

 

 

 

12,368

 

 

 

11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share - basic

 

$

0.55

 

 

$

0.49

 

 

 

13.1

%

FFO per share - diluted

 

$

0.55

 

 

$

0.48

 

 

 

15.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt and modification costs

 

 

 

 

 

874

 

 

N/M

 

Casualty-related expenses

 

 

42

 

 

 

60

 

 

 

(29.6

)%

Casualty gains

 

 

 

 

 

(51

)

 

N/M

 

Pandemic expense

(1)

 

24

 

 

 

 

 

 

0.0

%

Amortization of deferred financing costs - acquisition term notes

 

 

209

 

 

 

349

 

 

 

(40.1

)%

Adjustment for noncontrolling interests

 

 

(1

)

 

 

(4

)

 

N/M

 

Core FFO attributable to common stockholders

 

 

14,091

 

 

 

13,596

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share - basic

 

$

0.56

 

 

$

0.54

 

 

 

5.0

%

Core FFO per share - diluted

 

$

0.56

 

 

$

0.53

 

 

 

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs - long term debt

 

 

352

 

 

 

386

 

 

 

(8.9

)%

Equity-based compensation expense

 

 

1,608

 

 

 

1,300

 

 

 

23.7

%

Adjustment for noncontrolling interests

 

 

(6

)

 

 

(5

)

 

 

20.0

%

AFFO attributable to common stockholders

 

 

16,045

 

 

 

15,277

 

 

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per share - basic

 

$

0.64

 

 

$

0.60

 

 

 

6.4

%

AFFO per share - diluted

 

$

0.64

 

 

$

0.59

 

 

 

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

25,068

 

 

 

25,388

 

 

 

(1.3

)%

Weighted average common shares outstanding - diluted

 

 

25,068

 

 

 

25,851

 

 

 

(3.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.341

 

 

$

0.313

 

 

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO Coverage - diluted

(2)

1.62x

 

 

1.53x

 

 

 

5.5

%

Core FFO Coverage - diluted

(2)

1.65x

 

 

1.68x

 

 

 

(2.1

)%

AFFO Coverage - diluted

(2)

1.88x

 

 

1.89x

 

 

 

(0.8

)%

(1)

Represents additional cleaning, disinfecting, personal protection equipment (“PPE”) and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

(2)

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

 

 

 

 

 

 

 

 

 

nxrt.nexpoint.com

Page 15

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Historical Capital Expenditures

 

 

Q1 2021

 

 

Q1 2020

 

 

% Change

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition Capital Expenditures

 

$

 

 

$

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Rehab Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Interior

 

 

2,332

 

 

 

2,358

 

 

 

(1.1

)%

Exterior and common area

 

 

2,960

 

 

 

5,619

 

 

 

(47.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Maintenance Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

 

1,259

 

 

 

1,444

 

 

 

(12.9

)%

Non-Recurring

 

 

732

 

 

 

1,218

 

 

 

(39.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital Expenditures

 

$

7,283

 

 

$

10,639

 

 

 

(31.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nxrt.nexpoint.com

Page 16

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Value-Add Program Details: Interiors (Full & Partials)

 

Property Name (1)

 

Units

 

 

Rehab Units

Completed (2)

 

 

Average Rent

Pre-Rehab

 

 

Average Rent

Post-Rehab

 

 

Avg. Rehab

Cost

Per Unit (3)

 

 

Post-Rehab

Rent

Change %

 

 

ROI (3)

 

Value-Add Programs In Progress

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arbors of Brentwood

 

 

346

 

 

 

15

 

 

$

1,041

 

 

$

1,204

 

 

$

8,999

 

 

 

15.8

%

 

 

21.9

%

Arbors on Forest Ridge

 

 

210

 

 

 

160

 

 

 

774

 

 

 

874

 

 

 

4,411

 

 

 

13.0

%

 

 

27.3

%

Atera Apartments

 

 

380

 

 

 

172

 

 

 

1,125

 

 

 

1,270

 

 

 

3,276

 

 

 

13.0

%

 

 

53.4

%

Avant at Pembroke Pines

 

 

1,520

 

 

 

182

 

 

 

1,426

 

 

 

1,666

 

 

 

13,767

 

 

 

16.9

%

 

 

21.0

%

Beechwood Terrace

 

 

300

 

 

 

175

 

 

 

829

 

 

 

946

 

 

 

6,952

 

 

 

14.1

%

 

 

20.1

%

Bella Solara

 

 

320

 

 

 

43

 

 

 

1,087

 

 

 

1,243

 

 

 

10,583

 

 

 

14.4

%

 

 

17.7

%

Bella Vista

 

 

248

 

 

 

89

 

 

 

1,253

 

 

 

1,403

 

 

 

11,251

 

 

 

12.0

%

 

 

16.0

%

Bloom

 

 

528

 

 

 

26

 

 

 

1,087

 

 

 

1,237

 

 

 

12,032

 

 

 

13.8

%

 

 

15.0

%

Brandywine I & II

 

 

632

 

 

 

186

 

 

 

906

 

 

 

1,062

 

 

 

8,985

 

 

 

17.2

%

 

 

20.9

%

Cedar Pointe

 

 

210

 

 

 

42

 

 

 

958

 

 

 

1,137

 

 

 

10,156

 

 

 

18.7

%

 

 

21.2

%

Courtney Cove

 

 

324

 

 

 

186

 

 

 

829

 

 

 

931

 

 

 

4,799

 

 

 

12.4

%

 

 

25.7

%

Crestmont Reserve

 

 

242

 

 

 

50

 

 

 

834

 

 

 

958

 

 

 

5,037

 

 

 

15.0

%

 

 

29.7

%

Cutter's Point

 

 

196

 

 

 

140

 

 

 

956

 

 

 

1,073

 

 

 

5,825

 

 

 

12.3

%

 

 

24.2

%

Fairways of San Marcos

 

 

352

 

 

 

7

 

 

 

1,236

 

 

 

1,367

 

 

 

9,161

 

 

 

10.6

%

 

 

17.2

%

Hollister Place

 

 

260

 

 

 

201

 

 

 

898

 

 

 

1,048

 

 

 

7,409

 

 

 

16.8

%

 

 

24.4

%

Madera Point

 

 

256

 

 

 

215

 

 

 

819

 

 

 

918

 

 

 

4,160

 

 

 

12.0

%

 

 

28.4

%

Parc500

 

 

217

 

 

 

171

 

 

 

1,169

 

 

 

1,353

 

 

 

14,638

 

 

 

15.8

%

 

 

15.1

%

Radbourne Lake

 

 

225

 

 

 

308

 

 

 

1,000

 

 

 

1,045

 

 

 

1,033

 

 

 

4.5

%

 

 

52.3

%

Residences at Glenview Reserve

 

 

360

 

 

 

57

 

 

 

930

 

 

 

1,104

 

 

 

10,333

 

 

 

18.7

%

 

 

20.2

%

Residences at West Place

 

 

342

 

 

 

48

 

 

 

1,207

 

 

 

1,323

 

 

 

6,190

 

 

 

9.6

%

 

 

22.4

%

Rockledge Apartments

 

 

708

 

 

 

248

 

 

 

1,087

 

 

 

1,275

 

 

 

10,478

 

 

 

17.4

%

 

 

21.6

%

Sabal Palm at Lake Buena Vista

 

 

400

 

 

 

21

 

 

 

1,187

 

 

 

1,277

 

 

 

986

 

 

 

7.6

%

 

 

109.6

%

Seasons 704 Apartments

 

 

222

 

 

 

176

 

 

 

1,053

 

 

 

1,153

 

 

 

5,724

 

 

 

9.5

%

 

 

21.1

%

Silverbrook

 

 

642

 

 

 

455

 

 

 

783

 

 

 

864

 

 

 

4,067

 

 

 

10.3

%

 

 

23.9

%

Summers Landing

 

 

196

 

 

 

17

 

 

 

859

 

 

 

1,019

 

 

 

8,015

 

 

 

18.7

%

 

 

24.0

%

Summit at Sabal Park

 

 

252

 

 

 

194

 

 

 

893

 

 

 

995

 

 

 

5,659

 

 

 

11.4

%

 

 

21.7

%

The Cornerstone

 

 

430

 

 

 

333

 

 

 

927

 

 

 

1,016

 

 

 

5,390

 

 

 

9.6

%

 

 

19.9

%

The Enclave

 

 

204

 

 

 

86

 

 

 

1,264

 

 

 

1,410

 

 

 

9,974

 

 

 

11.6

%

 

 

17.6

%

The Heritage

 

 

204

 

 

 

81

 

 

 

1,183

 

 

 

1,329

 

 

 

11,177

 

 

 

12.3

%

 

 

15.6

%

The Preserve at Terrell Mill

 

 

752

 

 

 

552

 

 

 

796

 

 

 

946

 

 

 

9,746

 

 

 

18.8

%

 

 

18.4

%

The Venue on Camelback

 

 

415

 

 

 

153

 

 

 

666

 

 

 

923

 

 

 

10,560

 

 

 

38.6

%

 

 

29.2

%

Timber Creek

 

 

352

 

 

 

197

 

 

 

844

 

 

 

985

 

 

 

7,868

 

 

 

16.7

%

 

 

21.5

%

Torreyana Apartments

 

 

315

 

 

 

11

 

 

 

1,163

 

 

 

1,283

 

 

 

11,795

 

 

 

10.4

%

 

 

12.3

%

Venue at 8651

 

 

333

 

 

 

257

 

 

 

800

 

 

 

906

 

 

 

6,699

 

 

 

13.3

%

 

 

19.0

%

Versailles

 

 

388

 

 

 

289

 

 

$

800

 

 

 

898

 

 

 

6,168

 

 

 

12.2

%

 

 

19.0

%

Total/Weighted Average

 

 

13,281

 

 

 

5,543

 

 

$

926

 

 

$

1,055

 

 

$

7,199

 

 

 

13.9

%

 

 

21.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Planned Value-Add Programs

 

 

 

 

 

 

 

 

 

Projected Avg. Rent

 

 

 

 

 

 

Rent Change & ROI

(Projections)

 

Old Farm

 

 

734

 

 

 

 

 

$

1,226

 

 

$

1,316

 

 

TBD

 

 

 

7.3

%

 

TBD

 

Stone Creek at Old Farm

 

 

190

 

 

 

 

 

 

1,261

 

 

 

1,305

 

 

TBD

 

 

 

3.5

%

 

TBD

 

Total/Weighted Average Planned

 

 

924

 

 

 

 

 

$

1,301

 

 

$

1,455

 

 

TBD

 

 

 

11.9

%

 

TBD

 

(1)

We do not plan to upgrade 100% of the units at each of our properties.

(2)

Inclusive of all full and partial interior upgrades completed through March 31, 2021.

(3)

Inclusive of all full and partial interior upgrades completed and leased through March 31, 2021.

 

nxrt.nexpoint.com

Page 17

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Value-Add Program Details: Kitchen & Laundry Appliances

Property Name (1)

 

Units

 

 

Rehab Units

Completed (2)

 

 

Avg. Rehab

Cost

Per Unit (3)

 

 

Post-Rehab

Rent

Change $

 

 

ROI (3)

 

Value-Add Programs In Progress

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arbors of Brentwood

 

 

346

 

 

 

245

 

 

$

807

 

 

$

49

 

 

 

73.4

%

Arbors on Forest Ridge

 

 

210

 

 

 

111

 

 

 

713

 

 

 

40

 

 

 

67.3

%

Atera Apartments

 

 

380

 

 

 

348

 

 

 

730

 

 

 

40

 

 

 

65.8

%

Avant at Pembroke Pines

 

 

1,520

 

 

 

14

 

 

 

730

 

 

 

25

 

 

 

41.1

%

Beechwood Terrace

 

 

300

 

 

 

216

 

 

 

740

 

 

 

46

 

 

 

74.1

%

Brandywine I & II

 

 

632

 

 

 

5

 

 

 

770

 

 

 

50

 

 

 

78.0

%

Cedar Pointe

 

 

210

 

 

 

159

 

 

 

722

 

 

 

50

 

 

 

83.1

%

Crestmont Reserve

 

 

242

 

 

 

120

 

 

 

875

 

 

 

27

 

 

 

37.3

%

Cutter's Point

 

 

196

 

 

 

122

 

 

 

711

 

 

 

45

 

 

 

76.0

%

Hollister Place

 

 

260

 

 

 

193

 

 

 

952

 

 

 

50

 

 

 

63.0

%

Madera Point

 

 

256

 

 

 

156

 

 

 

885

 

 

 

30

 

 

 

40.2

%

Radbourne Lake

 

 

225

 

 

 

216

 

 

 

717

 

 

 

40

 

 

 

66.9

%

Rockledge Apartments

 

 

708

 

 

 

527

 

 

 

781

 

 

 

40

 

 

 

61.5

%

Sabal Palm at Lake Buena Vista

 

 

400

 

 

 

634

 

 

 

599

 

 

 

86

 

 

 

171.8

%

Silverbrook

 

 

642

 

 

 

354

 

 

 

721

 

 

 

48

 

 

 

80.5

%

Summers Landing

 

 

196

 

 

 

71

 

 

 

790

 

 

 

50

 

 

 

75.9

%

Summit at Sabal Park

 

 

252

 

 

 

226

 

 

 

987

 

 

 

40

 

 

 

48.6

%

The Cornerstone

 

 

430

 

 

 

17

 

 

 

809

 

 

 

50

 

 

 

74.2

%

Timber Creek

 

 

352

 

 

 

126

 

 

 

720

 

 

 

45

 

 

 

75.0

%

Venue at 8651

 

 

333

 

 

 

210

 

 

 

711

 

 

 

46

 

 

 

77.4

%

Versailles

 

 

388

 

 

 

294

 

 

 

864

 

 

 

50

 

 

 

68.9

%

Total/Weighted Average

 

 

8,478

 

 

 

4,364

 

 

$

773

 

 

$

48

 

 

 

74.1

%

 

(1)

We do not plan to upgrade 100% of the units at each of our properties.

(2)

Inclusive of all kitchen and laundry appliance upgrades completed through March 31, 2021.

(3)

Inclusive of all kitchen and laundry appliance upgrades completed and leased through March 31, 2021.

 


 

nxrt.nexpoint.com

Page 18

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Value-Add Program Details: Smart Home Technology Packages

Property Name (1)

 

Units

 

 

Rehab Units

Completed (2)

 

 

Avg. Rehab

Cost

Per Unit (3)

 

 

Post-Rehab

Rent

Change $

 

 

ROI (3)

 

Value-Add Programs In Progress

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arbors of Brentwood

 

 

346

 

 

 

346

 

 

$

1,419

 

 

$

45

 

 

 

27.6

%

Arbors on Forest Ridge

 

 

210

 

 

 

210

 

 

 

1,416

 

 

 

45

 

 

 

27.7

%

Atera Apartments

 

 

380

 

 

 

380

 

 

 

1,339

 

 

 

50

 

 

 

33.5

%

Avant at Pembroke Pines

 

 

1,520

 

 

 

1,520

 

 

 

1,350

 

 

 

45

 

 

 

29.0

%

Beechwood Terrace

 

 

300

 

 

 

300

 

 

 

1,291

 

 

 

45

 

 

 

30.3

%

Bella Vista

 

 

248

 

 

 

248

 

 

 

970

 

 

 

40

 

 

 

43.3

%

Brandywine I & II

 

 

632

 

 

 

632

 

 

 

1,234

 

 

 

45

 

 

 

31.7

%

Cedar Pointe

 

 

210

 

 

 

210

 

 

 

1,242

 

 

 

45

 

 

 

31.5

%

Courtney Cove

 

 

324

 

 

 

324

 

 

 

1,238

 

 

 

35

 

 

 

22.4

%

Crestmont Reserve

 

 

242

 

 

 

242

 

 

 

1,241

 

 

 

45

 

 

 

31.6

%

Cutter's Point

 

 

196

 

 

 

196

 

 

 

1,400

 

 

 

45

 

 

 

28.0

%

Hollister Place

 

 

260

 

 

 

260

 

 

 

843

 

 

 

35

 

 

 

47.3

%

Madera Point

 

 

256

 

 

 

256

 

 

 

1,283

 

 

 

45

 

 

 

30.5

%

Old Farm

 

 

734

 

 

 

734

 

 

 

928

 

 

 

45

 

 

 

55.3

%

Radbourne Lake

 

 

225

 

 

 

225

 

 

 

630

 

 

 

35

 

 

 

50.0

%

Sabal Palm at Lake Buena Vista

 

 

400

 

 

 

400

 

 

 

1,237

 

 

 

45

 

 

 

31.7

%

Silverbrook

 

 

642

 

 

 

642

 

 

 

1,308

 

 

 

45

 

 

 

29.9

%

Stone Creek at Old Farm

 

 

190

 

 

 

190

 

 

 

909

 

 

 

45

 

 

 

56.5

%

Summers Landing

 

 

196

 

 

 

196

 

 

 

1,449

 

 

 

45

 

 

 

27.0

%

The Cornerstone

 

 

430

 

 

 

430

 

 

 

1,236

 

 

 

45

 

 

 

31.7

%

The Enclave

 

 

204

 

 

 

204

 

 

 

966

 

 

 

40

 

 

 

43.5

%

The Heritage

 

 

204

 

 

 

204

 

 

 

997

 

 

 

40

 

 

 

42.1

%

Timber Creek

 

 

352

 

 

 

352

 

 

 

1,299

 

 

 

45

 

 

 

30.2

%

Venue at 8651

 

 

333

 

 

 

333

 

 

 

1,229

 

 

 

45

 

 

 

31.9

%

Versailles

 

 

388

 

 

 

388

 

 

 

1,080

 

 

 

45

 

 

 

36.3

%

Total/Weighted Average

 

 

9,422

 

 

 

9,422

 

 

$

1,207

 

 

$

44

 

 

 

33.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Planned Value-Add Programs

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent Change & ROI

(Projections)

 

Bella Solara

 

 

320

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Bloom

 

 

528

 

 

 

 

 

TBD

 

��

TBD

 

 

TBD

 

Fairways of San Marcos

 

 

352

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Residences at Glenview Reserve

 

 

360

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Residences at West Place

 

 

342

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Rockledge Apartments

 

 

708

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Seasons 704 Apartments

 

 

222

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Summit at Sabal Park

 

 

252

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

The Preserve at Terrell Mill

 

 

752

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

The Venue on Camelback

 

 

415

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Torreyana Apartments

 

 

315

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

Total/Weighted Average Planned

 

 

4,566

 

 

 

 

 

TBD

 

 

TBD

 

 

TBD

 

 

(1)

We do not plan to upgrade 100% of the units at each of our properties.

(2)

Inclusive of all smart home technology package upgrades completed through March 31, 2021.

(3)

Inclusive of all smart home technology package upgrades completed and leased through March 31, 2021.


 

nxrt.nexpoint.com

Page 19

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Outstanding Debt Details

Mortgage Debt

The following table contains summary information concerning the mortgage debt of the Company as of March 31, 2021 (dollars in thousands):

Operating Properties

 

Type

 

Term (months)

 

 

Outstanding

Principal (1)

 

 

Interest Rate (2)

 

 

Maturity Date

Arbors on Forest Ridge

 

Floating

 

 

84

 

 

$

13,130

 

 

1.79%

 

 

7/1/2024

Cutter's Point

 

Floating

 

 

84

 

 

 

16,640

 

 

1.79%

 

 

7/1/2024

Silverbrook

 

Floating

 

 

84

 

 

 

30,590

 

 

1.79%

 

 

7/1/2024

Beechwood Terrace

 

Floating

 

 

84

 

 

 

23,365

 

 

1.55%

 

 

9/1/2025

The Summit at Sabal Park

 

Floating

 

 

84

 

 

 

13,560

 

 

1.73%

 

 

7/1/2024

Courtney Cove

 

Floating

 

 

84

 

 

 

13,680

 

 

1.73%

 

 

7/1/2024

The Preserve at Terrell Mill

 

Floating

 

 

84

 

 

 

42,480

 

 

1.73%

 

 

7/1/2024

Versailles

 

Floating

 

 

84

 

 

 

23,880

 

 

1.73%

 

 

7/1/2024

Seasons 704 Apartments

 

Floating

 

 

84

 

 

 

17,460

 

 

1.73%

 

 

7/1/2024

Madera Point

 

Floating

 

 

84

 

 

 

15,150

 

 

1.73%

 

 

7/1/2024

Venue at 8651

 

Floating

 

 

84

 

 

 

13,734

 

 

1.89%

 

 

7/1/2024

The Venue on Camelback

 

Floating

 

 

84

 

 

 

28,093

 

 

1.79%

 

 

7/1/2024

Old Farm

 

Floating

 

 

84

 

 

 

52,886

 

 

1.79%

 

 

7/1/2024

Stone Creek at Old Farm

 

Floating

 

 

84

 

 

 

15,274

 

 

1.79%

 

 

7/1/2024

Timber Creek

 

Floating

 

 

84

 

 

 

24,100

 

 

1.37%

 

 

10/1/2025

Radbourne Lake

 

Floating

 

 

84

 

 

 

20,000

 

 

1.40%

 

 

10/1/2025

Sabal Palm at Lake Buena Vista

 

Floating

 

 

84

 

 

 

42,100

 

 

1.41%

 

 

9/1/2025

Cornerstone

 

Fixed

 

 

120

 

 

 

21,174

 

 

4.24%

 

 

3/1/2023

Parc500

 

Fixed

 

 

120

 

 

 

14,878

 

 

4.49%

 

 

8/1/2025

Hollister Place

 

Floating

 

 

84

 

 

 

14,811

 

 

1.45%

 

 

10/1/2025

Rockledge Apartments

 

Floating

 

 

84

 

 

 

68,100

 

 

1.68%

 

 

7/1/2024

Atera Apartments

 

Floating

 

 

84

 

 

 

29,500

 

 

1.59%

 

 

11/1/2024

Cedar Pointe

 

Floating

 

 

84

 

 

 

17,300

 

 

1.46%

 

 

9/1/2025

Crestmont Reserve

 

Floating

 

 

84

 

 

 

12,061

 

 

1.29%

 

 

10/1/2025

Brandywine I & II

 

Floating

 

 

84

 

 

 

43,835

 

 

1.29%

 

 

10/1/2025

Bella Vista

 

Floating

 

 

84

 

 

 

29,040

 

 

1.43%

 

 

2/1/2026

The Enclave

 

Floating

 

 

84

 

 

 

25,322

 

 

1.43%

 

 

2/1/2026

The Heritage

 

Floating

 

 

84

 

 

 

24,625

 

 

1.43%

 

 

2/1/2026

Summers Landing

 

Floating

 

 

84

 

 

 

10,109

 

 

1.29%

 

 

10/1/2025

Residences at Glenview Reserve

 

Floating

 

 

84

 

 

 

26,560

 

 

1.55%

 

 

10/1/2025

Residences at West Place

 

Fixed

 

 

120

 

 

 

33,817

 

 

4.24%

 

 

10/1/2028

Avant at Pembroke Pines

 

Floating

 

 

84

 

 

 

177,100

 

 

1.54%

 

 

9/1/2026

Arbors of Brentwood

 

Floating

 

 

84

 

 

 

34,237

 

 

1.54%

 

 

10/1/2026

Torreyana Apartments

 

Floating

 

 

84

 

 

 

37,400

 

 

1.81%

 

 

12/1/2026

Bloom

 

Floating

 

 

84

 

 

 

58,850

 

 

1.81%

 

 

12/1/2026

Bella Solara

 

Floating

 

 

84

 

 

 

36,575

 

 

1.81%

 

 

12/1/2026

Fairways at San Marcos

 

Floating

 

 

84

 

 

 

46,464

 

 

2.14%

 

 

12/1/2027

 

 

 

 

 

 

 

 

$

1,167,880

 

 

 

 

 

 

 

Fair market value adjustment

 

 

 

 

 

 

 

 

1,211

 

 

 

 

 

 

 

Deferred financing costs, net of accumulated amortization of $4,068

 

 

 

 

 

 

 

 

(6,122

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,162,969

 

 

 

 

 

 

 

(1)

Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2)

Interest rate is based on one-month LIBOR plus an applicable margin, except for fixed rate mortgage debt. One-month LIBOR as of March 31, 2021 was 0.11113%.

 


 

nxrt.nexpoint.com

Page 20

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Credit Facility

The following table contains summary information concerning the Company’s credit facility as of March 31, 2021 (dollars in thousands):

 

 

Type

 

Term (months)

 

 

Outstanding

Principal

 

 

Interest Rate (1)

 

 

Maturity Date

Corporate Credit Facility

 

Floating

 

 

24

 

 

$

183,000

 

 

2.61%

 

 

1/28/2022

Deferred financing costs, net of accumulated amortization of $2,146

 

 

 

 

 

 

 

 

(469

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

182,531

 

 

 

 

 

 

 

(1)

Interest rate is based on one-month LIBOR plus an applicable margin. One-month LIBOR as of March 31, 2021 was 0.11113%.

 

Interest Rate Swap Agreements

As of March 31, 2021, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

 

Effective Date

 

Termination Date

 

Counterparty

 

Notional Amount

 

 

Fixed Rate (1)

 

 

July 1, 2016

 

June 1, 2021

 

KeyBank

 

$

100,000

 

 

 

1.1055

%

 

July 1, 2016

 

June 1, 2021

 

KeyBank

 

 

100,000

 

 

 

1.0210

%

 

July 1, 2016

 

June 1, 2021

 

KeyBank

 

 

100,000

 

 

 

0.9000

%

 

September 1, 2016

 

June 1, 2021

 

KeyBank

 

 

100,000

 

 

 

0.9560

%

 

April 1, 2017

 

April 1, 2022

 

KeyBank

 

 

100,000

 

 

 

1.9570

%

 

May 1, 2017

 

April 1, 2022

 

KeyBank

 

 

50,000

 

 

 

1.9610

%

 

July 1, 2017

 

July 1, 2022

 

KeyBank

 

 

100,000

 

 

 

1.7820

%

 

June 1, 2019

 

June 1, 2024

 

KeyBank

 

 

50,000

 

 

 

2.0020

%

 

June 1, 2019

 

June 1, 2024

 

Truist

 

 

50,000

 

 

 

2.0020

%

 

September 1, 2019

 

September 1, 2026

 

KeyBank

 

 

100,000

 

 

 

1.4620

%

 

September 1, 2019

 

September 1, 2026

 

KeyBank

 

 

125,000

 

 

 

1.3020

%

 

January 3, 2020

 

September 1, 2026

 

KeyBank

 

 

92,500

 

 

 

1.6090

%

 

March 4, 2020

 

June 1, 2026

 

Truist

 

 

100,000

 

 

 

0.8200

%

 

 

 

 

 

 

 

$

1,167,500

 

 

 

1.3792

%

(2)

(1)

The floating rate option for the interest rate swaps is one-month LIBOR. As of March 31, 2021, one-month LIBOR was 0.11113%.

(2)

Represents the weighted average fixed rate of the interest rate swaps.

 

 

The following table contains summary information regarding our forward interest rate swaps (dollars in thousands):

 

Effective Date

 

Termination Date

 

Counterparty

 

Notional Amount

 

 

Fixed Rate (1)

 

 

June 1, 2021

 

September 1, 2026

 

KeyBank

 

$

200,000

 

 

 

0.8450

%

 

June 1, 2021

 

September 1, 2026

 

KeyBank

 

 

200,000

 

 

 

0.9530

%

 

March 1, 2022

 

March 1, 2025

 

Truist

 

 

145,000

 

 

 

0.5730

%

 

March 1, 2022

 

March 1, 2025

 

Truist

 

 

105,000

 

 

 

0.6140

%

 

September 1, 2026

 

January 1, 2027

 

KeyBank

 

 

92,500

 

 

 

1.7980

%

 

 

 

 

 

 

 

$

742,500

 

 

 

0.9070

%

(2)

 

(1)

  The floating rate option for the interest rate swaps is one-month LIBOR. As of March 31, 2021, one-month LIBOR was 0.11113%.

(2)

  Represents the weighted average fixed rate of the forward interest rate swaps.

 

 


 

nxrt.nexpoint.com

Page 21

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Debt Maturity Schedule

 

 

 

Payments Due by Period (in thousands)

 

 

 

 

Total

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

Thereafter

 

Operating Properties Mortgage Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal payments

 

 

$

1,167,880

 

 

$

698

 

 

$

1,502

 

 

$

21,254

 

 

$

395,085

 

 

$

245,910

 

 

$

503,431

 

Interest expense

(1)

 

 

42,231

 

 

 

12,907

 

 

 

8,452

 

 

 

6,920

 

 

 

5,801

 

 

 

5,002

 

 

 

3,149

 

Total

 

 

$

1,210,111

 

 

$

13,605

 

 

$

9,954

 

 

$

28,174

 

 

$

400,886

 

 

$

250,912

 

 

$

506,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal payments

 

 

$

183,000

 

 

$

 

 

$

183,000

 

 

$

 

 

$

 

 

$

 

 

$

 

Interest expense

 

 

 

4,029

 

 

 

3,663

 

 

 

366

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

$

187,029

 

 

$

3,663

 

 

$

183,366

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total contractual obligations and commitments

 

 

$

1,397,140

 

 

$

17,268

 

 

$

193,320

 

 

$

28,174

 

 

$

400,886

 

 

$

250,912

 

 

$

506,580

 

 

(1)

Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of March 31, 2021, we had entered into 13 interest rate swap transactions with a combined notional amount of $1.2 billion. We have allocated the total impact of expected settlements on the $1.2 billion notional amount of interest rate swaps to “Operating Properties Mortgage Debt.” We used one-month LIBOR as of March 31, 2021 to determine our expected settlements through the terms of the interest rate swaps.

 

 

 

(1)

As of March 31, 2021, we had total indebtedness of $1.4 billion at an adjusted weighted average interest rate of 3.07%, of which $1.3 billion was debt with a floating interest rate. As of March 31, 2021, interest rate swap agreements effectively covered 100% of our $1.1 billion of floating rate mortgage debt outstanding and 38.0% of our $183.0 million floating rate Credit Facility. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.3792% for one-month LIBOR on the $1.2 billion notional amount of interest rate swap agreements that we have entered into as of March 31, 2021, which effectively fix the interest rate on $1.2 billion of our floating rate debt outstanding.


 

nxrt.nexpoint.com

Page 22

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Historical Acquisition Details

 

(in thousands, except for unit and per unit amounts)

Property Name (1)

 

Location

 

Units

 

Transaction Date

 

Purchase Price

 

Rehab Budget (2)

 

Total Investment

 

Per Unit

Arbors on Forest Ridge

 

Bedford, TX

 

210

 

1/31/2014

 

$12,805

 

$1,449

 

$14,254

 

$67,876

Cutter's Point

 

Richardson, TX

 

196

 

1/31/2014

 

15,845

 

1,379

 

17,224

 

87,878

Silverbrook

 

Grand Prairie, TX

 

642

 

1/31/2014

 

30,400

 

1,662

 

32,062

 

49,941

Beechwood Terrace

 

Antioch, TN

 

300

 

7/21/2014

 

21,400

 

1,796

 

23,196

 

77,320

The Summit at Sabal Park

 

Tampa, FL

 

252

 

8/20/2014

 

19,050

 

1,655

 

20,705

 

82,163

Courtney Cove

 

Tampa, FL

 

324

 

8/20/2014

 

18,950

 

1,635

 

20,585

 

63,534

Radbourne Lake

 

Charlotte, NC

 

225

 

9/30/2014

 

24,250

 

1,437

 

25,687

 

114,164

Timber Creek

 

Charlotte, NC

 

352

 

9/30/2014

 

22,750

 

3,947

 

26,697

 

75,844

Sabal Palm at Lake Buena Vista

 

Orlando, FL

 

400

 

11/5/2014

 

49,500

 

1,346

 

50,846

 

127,115

Cornerstone

 

Orlando, FL

 

430

 

1/15/2015

 

31,550

 

2,610

 

34,160

 

79,442

The Preserve at Terrell Mill

 

Marietta, GA

 

752

 

2/6/2015

 

58,000

 

6,688

 

64,688

 

86,021

Versailles

 

Dallas, TX

 

388

 

2/26/2015

 

26,165

 

3,997

 

30,162

 

77,737

Seasons 704 Apartments

 

West Palm Beach, FL

 

222

 

4/15/2015

 

21,000

 

1,900

 

22,900

 

103,153

Madera Point

 

Mesa, AZ

 

256

 

8/5/2015

 

22,525

 

1,808

 

24,333

 

95,051

Venue at 8651

 

Fort Worth, TX

 

333

 

10/30/2015

 

19,250

 

4,626

 

23,876

 

71,700

Parc500

 

West Palm Beach, FL

 

217

 

7/27/2016

 

22,421

 

5,082

 

27,503

 

126,742

The Venue on Camelback

 

Phoenix, AZ

 

415

 

10/11/2016

 

44,600

 

6,018

 

50,618

 

121,971

Old Farm

 

Houston, TX

 

734

 

12/29/2016

 

84,721

 

1,135

 

85,856

 

116,970

Stone Creek at Old Farm

 

Houston, TX

 

190

 

12/29/2016

 

23,332

 

462

 

23,794

 

125,232

Hollister Place

 

Houston, TX

 

260

 

2/1/2017

 

24,500

 

2,961

 

27,461

 

105,619

Rockledge Apartments

 

Marietta, GA

 

708

 

6/30/2017

 

113,500

 

7,685

 

121,185

 

171,165

Atera Apartments

 

Dallas, TX

 

380

 

10/25/2017

 

59,200

 

3,721

 

62,921

 

165,582

Cedar Pointe

 

Antioch, TN

 

210

 

8/24/2018

 

26,500

 

2,352

 

28,852

 

137,390

Crestmont Reserve

 

Dallas, TX

 

242

 

9/26/2018

 

24,680

 

2,843

 

27,523

 

113,731

Brandywine I & II

 

Nashville, TN

 

632

 

9/26/2018

 

79,800

 

7,787

 

87,587

 

138,587

Bella Vista

 

Phoenix, AZ

 

248

 

1/28/2019

 

48,400

 

3,414

 

51,814

 

208,927

The Enclave

 

Tempe, AZ

 

204

 

1/28/2019

 

41,800

 

2,608

 

44,408

 

217,686

The Heritage

 

Phoenix, AZ

 

204

 

1/28/2019

 

41,900

 

2,660

 

44,560

 

218,431

Summers Landing

 

Fort Worth, TX

 

196

 

6/7/2019

 

19,396

 

2,980

 

22,376

 

114,163

Residences at Glenview Reserve

 

Nashville, TN

 

360

 

7/17/2019

 

45,000

 

5,695

 

50,695

 

140,819

Residences at West Place

 

Orlando, FL

 

342

 

7/17/2019

 

55,000

 

4,129

 

59,129

 

172,892

Avant at Pembroke Pines

 

Pembroke Pines, FL

 

1,520

 

8/30/2019

 

322,000

 

32,583

 

354,583

 

233,278

Arbors of Brentwood

 

Nashville, TN

 

346

 

9/10/2019

 

62,250

 

4,248

 

66,498

 

192,191

Torreyana Apartments

 

Las Vegas, NV

 

315

 

11/22/2019

 

68,000

 

2,771

 

70,771

 

224,670

Bloom

 

Las Vegas, NV

 

528

 

11/22/2019

 

106,500

 

4,786

 

111,286

 

210,769

Bella Solara

 

Las Vegas, NV

 

320

 

11/22/2019

 

66,500

 

3,642

 

70,142

 

219,194

Fairways at San Marcos

 

Chandler, AZ

 

352

 

11/2/2020

 

84,480

 

2,045

 

86,525

 

245,810

Total/Weighted Average

 

 

 

14,205

 

 

 

$1,857,920

 

$149,542

 

$2,007,462

 

$141,321

(1)

Only includes properties owned as of March 31, 2021.

(2)

Includes interior and exterior rehab.


 

nxrt.nexpoint.com

Page 23

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Historical Disposition Details

(in thousands, except unit and per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Name

 

Location

 

Units

 

 

Purchase

Price

 

 

Sale

Price

 

 

Sales Price Per Unit

 

 

Sale Date

 

Net Cash

Proceeds (1)

 

 

Gain on

Sale

 

Meridian

 

Austin, TX

 

 

200

 

 

$

12,300

 

 

$

17,250

 

 

$

86,250

 

 

5/10/2016

 

$

16,981

 

 

$

4,786

 

Park at Regency and Mandarin Reserve

 

Jacksonville, FL

 

 

679

 

 

 

34,500

 

 

 

47,000

 

 

 

69,219

 

 

6/6/2016

 

 

46,239

 

 

 

11,584

 

Park at Blanding and Colonial Forest

 

Jacksonville, FL

 

 

291

 

 

 

12,000

 

 

 

14,500

 

 

 

49,828

 

 

8/31/2016

 

 

14,259

 

 

 

2,007

 

Willowdale Crossings

 

Frederick, MD

 

 

432

 

 

 

41,000

 

 

 

45,200

 

 

 

104,630

 

 

9/15/2016

 

 

44,439

 

 

 

5,576

 

Jade Park

 

Dayton Beach, FL

 

 

144

 

 

 

7,800

 

 

 

10,000

 

 

 

69,444

 

 

9/30/2016

 

 

9,868

 

 

 

1,979

 

The Miramar Apartments

 

Dallas, TX

 

 

314

 

 

 

8,875

 

 

 

16,550

 

 

 

52,707

 

 

4/3/2017

 

 

16,326

 

 

 

6,368

 

Toscana

 

Dallas, TX

 

 

192

 

 

 

8,875

 

 

 

13,250

 

 

 

69,010

 

 

4/3/2017

 

 

13,040

 

 

 

4,283

 

The Grove at Alban

 

Frederick, MD

 

 

290

 

 

 

23,050

 

 

 

27,500

 

 

 

94,828

 

 

4/3/2017

 

 

27,021

 

 

 

4,514

 

Twelve 6 Ten at the Park

 

Dallas, TX

 

 

402

 

 

 

20,984

 

 

 

26,600

 

 

 

66,169

 

 

4/27/2017

 

 

26,349

 

 

 

4,731

 

Regatta Bay

 

Seabrook, TX

 

 

240

 

 

 

18,200

 

 

 

28,200

 

 

 

117,500

 

 

7/14/2017

 

 

27,670

 

 

 

10,423

 

NAVA Portfolio (2)

 

Atlanta, GA

 

 

1,100

 

 

 

66,200

 

 

 

116,000

 

 

 

105,455

 

 

9/27/2017

 

 

114,010

 

 

 

48,046

 

Timberglen

 

Dallas, TX

 

 

304

 

 

 

16,950

 

 

 

30,000

 

 

 

98,684

 

 

1/31/2018

 

 

29,553

 

 

 

13,742

 

Edgewater at Sandy Springs

 

Atlanta, GA

 

 

760

 

 

 

58,000

 

 

 

101,250

 

 

 

133,224

 

 

8/28/2019

 

 

100,219

 

 

 

47,329

 

Belmont at Duck Creek

 

Garland, TX

 

 

240

 

 

 

18,525

 

 

 

29,500

 

 

 

122,917

 

 

8/28/2019

 

 

29,148

 

 

 

11,985

 

The Ashlar

 

Dallas, TX

 

 

264

 

 

 

16,235

 

 

 

29,400

 

 

 

111,364

 

 

8/28/2019

 

 

29,050

 

 

 

13,205

 

Heatherstone

 

Dallas, TX

 

 

152

 

 

 

9,450

 

 

 

16,275

 

 

 

107,072

 

 

8/28/2019

 

 

16,054

 

 

 

6,368

 

The Pointe at the Foothills

 

Mesa, AZ

 

 

528

 

 

 

52,275

 

 

 

85,400

 

 

 

161,742

 

 

8/28/2019

 

 

84,663

 

 

 

37,925

 

Abbington Heights

 

Antioch, TN

 

 

274

 

 

 

17,900

 

 

 

28,050

 

 

 

102,372

 

 

8/30/2019

 

 

27,630

 

 

 

10,888

 

Southpoint Reserve at Stoney Creek

 

Fredericksburg, Virginia

 

 

156

 

 

 

17,000

 

 

 

23,500

 

 

 

150,641

 

 

3/20/2020

 

 

23,176

 

 

 

5,469

 

Willow Grove

 

Nashville, Tennessee

 

 

244

 

 

 

13,750

 

 

 

31,300

 

 

 

128,279

 

 

3/26/2020

 

 

31,005

 

 

 

17,513

 

Woodbridge

 

Nashville, Tennessee

 

 

220

 

 

 

16,000

 

 

 

31,700

 

 

 

144,091

 

 

3/26/2020

 

 

31,237

 

 

 

15,990

 

Eagle Crest

 

Irving, Texas

 

 

447

 

 

 

27,325

 

 

 

55,500

 

 

 

124,161

 

 

9/30/2020

 

 

54,779

 

 

 

30,160

 

Total/Weighted Average

 

 

 

 

7,873

 

 

$

517,194

 

 

$

823,925

 

 

$

104,652

 

 

 

 

$

812,716

 

 

$

314,871

 

(1)

Represents sales price, net of closing costs.

(2)

The NAVA Portfolio consists of The Arbors, The Crossings, The Crossings at Holcomb Bridge and The Knolls.

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

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 depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (6) casualty-related expenses/(recoveries) and casualty gains (losses), (7) pandemic expenses that are not reflective of continuing operations of the properties and (8) 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 and franchise tax fees. 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, 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 combined amounts 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 losses on extinguishment of debt and modification costs (includes prepayment penalties and defeasance costs incurred on the early payment of debt, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt, costs incurred in connection with a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment that are expensed), casualty-related expenses/and recoveries and gains or losses, pandemic expenses, 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 (as described above) 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.

 

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Reconciliations

NOI and Same Store NOI for the Three Months Ended March 31, 2021 and 2020

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Q1 Same Store NOI for the three months ended March 31, 2021 and 2020 to net income (loss), the most directly comparable GAAP financial measure (in thousands):

 

 

For the Three Months Ended March 31,

 

 

 

 

2021

 

 

2020

 

 

Net income (loss)

 

$

(6,900

)

 

$

28,039

 

 

Adjustments to reconcile net income (loss) to NOI:

 

 

 

 

 

 

 

 

 

Advisory and administrative fees

 

 

1,868

 

 

 

1,865

 

 

Corporate general and administrative expenses

 

 

2,940

 

 

 

2,701

 

 

Casualty-related expenses

(1)

 

42

 

 

 

60

 

 

Casualty gains

 

 

 

 

 

(51

)

 

Pandemic expense

(2)

 

24

 

 

 

 

 

Property general and administrative expenses

(3)

 

233

 

 

 

469

 

 

Depreciation and amortization

 

 

20,758

 

 

 

23,338

 

 

Interest expense

 

 

10,616

 

 

 

11,662

 

 

Loss on extinguishment of debt and modification costs

 

 

 

 

 

874

 

 

Gain on sales of real estate

 

 

 

 

 

(38,972

)

 

NOI

 

$

29,581

 

 

$

29,985

 

 

Less Non-Same Store

 

 

 

 

 

 

 

 

 

Revenues

 

 

(1,544

)

 

 

(3,374

)

 

Operating expenses

 

 

571

 

 

 

1,748

 

 

Operating income

 

 

(341

)

 

 

 

 

Same Store NOI

 

$

28,267

 

 

$

28,359

 

 

(1)

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

(2)

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

(3)

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 and franchise tax fees.


 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

NOI for the years ended December 31, 2020, and 2019 and the three months ended December 31, 2020

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI for the years ended December 31, 2020, and 2019 and the three months ended December 31, 2020 to net income (loss), the most directly comparable GAAP financial measure (in thousands):

 

 

For the Year Ended December 31,

 

 

For the Three Months Ended December 31,

 

 

 

 

2020

 

 

2019

 

 

2020

 

 

Net income

 

$

44,150

 

 

$

99,438

 

 

$

(4,212

)

 

Adjustments to reconcile net income to NOI:

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory and administrative fees

 

 

7,670

 

 

 

7,500

 

 

 

1,893

 

 

Corporate general and administrative expenses

 

 

10,035

 

 

 

9,613

 

 

 

1,595

 

 

Casualty-related expenses/(recoveries)

(1)

 

790

 

 

 

(34

)

 

 

64

 

 

Casualty losses (gains)

 

 

(5,886

)

 

 

3,488

 

 

 

(1,954

)

 

Pandemic expense

(2)

 

510

 

 

 

 

 

 

35

 

 

Property general and administrative expenses

(3)

 

1,112

 

 

 

1,517

 

 

 

15

 

 

Depreciation and amortization

 

 

82,411

 

 

 

69,086

 

 

 

19,932

 

 

Interest expense

 

 

44,753

 

 

 

37,385

 

 

 

11,049

 

 

Loss on extinguishment of debt and modification costs

 

 

1,470

 

 

 

2,869

 

 

 

 

 

Gain on sales of real estate

 

 

(69,151

)

 

 

(127,684

)

 

 

 

 

NOI

 

$

117,864

 

 

$

103,178

 

 

$

28,417

 

 

 

(1)

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

(2)

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

(3)

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 and franchise tax fees.

 

 

Reconciliation of Debt to Net Debt

(dollar amounts in thousands)

 

Q1 2021

 

 

Q1 2020

 

Total mortgage debt

 

$

1,167,880

 

 

$

1,151,683

 

Credit facilities

 

 

183,000

 

 

 

225,000

 

Total Debt

 

 

1,350,880

 

 

 

1,376,683

 

Adjustments to arrive at net debt:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

(22,706

)

 

 

(69,540

)

Restricted cash held for value-add upgrades and green improvements

 

 

(9,139

)

 

 

(15,356

)

Net Debt

 

$

1,319,035

 

 

$

1,291,787

 

Enterprise Value (1)

 

$

2,477,035

 

 

$

1,918,787

 

Leverage Ratio

 

 

53

%

 

 

67

%

(1)

Enterprise Value is calculated as Market Capitalization plus Net Debt.

 

 

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Guidance Reconciliations of NOI, Same Store NOI, 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 (loss) (the most directly comparable GAAP financial measure) for the periods presented below (in thousands):

 

 

For the Year Ended

December 31, 2021

 

 

For the Three Months Ended June 30, 2021

 

 

 

 

Mid-Point (1)

 

 

Mid-Point (1)

 

 

Net loss

 

$

(25,599

)

 

$

(8,548

)

 

Adjustments to reconcile net loss to NOI:

 

 

 

 

 

 

 

 

 

Advisory and administrative fees

 

 

7,564

 

 

 

1,885

 

 

Corporate general and administrative expenses

 

 

12,641

 

 

 

3,247

 

 

Property general and administrative expenses

(2)

 

299

 

 

 

 

 

Depreciation and amortization

 

 

83,894

 

 

 

22,428

 

 

Interest expense

 

 

42,557

 

 

 

10,613

 

 

Casualty-related recoveries

 

 

 

 

 

 

 

Loss on extinguishment of debt and modification costs

 

 

 

 

 

 

 

Gain on sales of real estate

 

 

 

 

 

 

 

NOI

 

$

121,356

 

 

$

29,625

 

 

Less Non-Same Store

 

 

 

 

 

 

 

 

 

Revenues

(3)

 

(5,557

)

 

 

 

 

 

Operating expenses

(3)

 

1,728

 

 

 

 

 

 

Miscellaneous income

(3)

 

(948

)

 

 

 

 

 

Same Store NOI

(3)

$

116,579

 

 

 

 

 

 

(1)

Mid-Point estimates shown for full year and second quarter 2021 guidance. Assumptions made for full year and second quarter 2021 NOI guidance include the Same Store operating growth projections included in the “2021 Full Year Guidance Summary” section of this release and the effect of the acquisition and dispositions throughout the fiscal year.

(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 and franchise tax fees.

(3)

Amounts are derived from the results of operations of our pro forma Full Year 2021 Same Store properties and Non-Same Store properties. There are 35 properties in our pro forma Full Year 2021 Same Store pool.

 

 

 

 

 

 

 

 

 

 

 

 

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

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, 2021 (in thousands, except per share data):

 

 

For the Year Ended December 31, 2021

 

 

 

Mid-Point

 

Net loss

 

$

(25,599

)

Depreciation and amortization

 

 

83,894

 

Gain on sales of real estate

 

 

 

Adjustment for noncontrolling interests

 

 

(166

)

FFO attributable to common stockholders

 

 

58,129

 

FFO per share - diluted (1)

 

$

2.26

 

 

 

 

 

 

Loss on extinguishment of debt and modification costs

 

 

 

Casualty-related expenses

 

 

177

 

Pandemic expense

 

 

24

 

Amortization of deferred financing costs - acquisition term notes

 

 

631

 

Adjustment for noncontrolling interests

 

 

(1

)

Core FFO attributable to common stockholders

 

 

58,960

 

Core FFO per share - diluted (1)

 

$

2.29

 

 

 

 

 

 

Amortization of deferred financing costs - long term debt

 

 

1,426

 

Equity-based compensation expense

 

 

6,962

 

Adjustment for noncontrolling interests

 

 

(27

)

AFFO attributable to common stockholders

 

 

67,321

 

AFFO per share - diluted (1)

 

$

2.62

 

 

 

 

 

 

Weighted average common shares outstanding - diluted

 

 

25,732

 

(1)

For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 25.7 million for the full year 2021.


 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

The following table reconciles our calculations of FFO, Core FFO and AFFO to net income, the most directly comparable GAAP financial measure, for the years ended December 31, 2020 and 2019 (in thousands, except per share amounts):

 

 

For the Year Ended December 31,

 

 

2020

 

 

2019

 

 

Net income (loss)

 

$

44,150

 

 

$

99,438

 

 

Depreciation and amortization

 

 

82,411

 

 

 

69,086

 

 

Gain on sales of real estate

 

 

(69,151

)

 

 

(127,684

)

 

Adjustment for noncontrolling interests

 

 

(172

)

 

 

(122

)

 

FFO attributable to common stockholders

 

 

57,238

 

 

 

40,718

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share - basic

 

$

2.32

 

 

$

1.69

 

 

FFO per share - diluted

 

$

2.27

 

 

$

1.66

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt and modification costs

 

 

1,470

 

 

 

2,869

 

 

Casualty-related expenses/(recoveries)

 

 

790

 

 

 

(34

)

 

Casualty losses (gains)

 

 

(5,886

)

 

 

3,488

 

 

Pandemic expense

(1)

 

510

 

 

 

 

 

Amortization of deferred financing costs - acquisition term notes

 

 

1,384

 

 

 

553

 

 

Adjustment for noncontrolling interests

 

 

6

 

 

 

(21

)

 

Core FFO attributable to common stockholders

 

 

55,512

 

 

 

47,573

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share - basic

 

$

2.25

 

 

$

1.97

 

 

Core FFO per share - diluted

 

$

2.20

 

 

$

1.93

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs - long term debt

 

 

1,453

 

 

 

1,530

 

 

Equity-based compensation expense

 

 

5,504

 

 

 

5,130

 

 

Adjustment for noncontrolling interests

 

 

(21

)

 

 

(20

)

 

AFFO attributable to common stockholders

 

 

62,448

 

 

 

54,213

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per share - basic

 

$

2.53

 

 

$

2.25

 

 

AFFO per share - diluted

 

$

2.47

 

 

$

2.20

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

24,715

 

 

 

24,116

 

 

Weighted average common shares outstanding - diluted

 

 

25,234

 

 

 

24,593

 

 

(1)

Represents additional cleaning, disinfecting, PPE and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

 

 

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