NEXPOINT RESIDENTIAL TRUST, INC. REPORTS SECOND QUARTER 2026 RESULTS
Rhea-AI Summary
NexPoint Residential Trust (NYSE:NXRT) reported second quarter 2026 total revenues of $64.6 million, up from $63.1 million a year earlier, with a net loss attributable to common stockholders of $8.6 million, or $0.34 per diluted share, versus a $7.0 million loss, or $0.28 per share, in Q2 2025.
Q2 2026 FFO, Core FFO and AFFO were $15.2 million ($0.60/share), $16.9 million ($0.66/share) and $19.7 million ($0.77/share), all down year over year. Same Store Q2 NOI declined 2.9%, while Same Store occupancy rose 30 bps. The 36-property Portfolio (13,305 units) had average monthly rent of $1,490 and 93.5% physical occupancy. NXRT deployed $22.1 million into a 10.00% fixed-rate term loan under its DST bridge-lending program and paid a quarterly dividend of $0.53 per share, with a further $0.53 dividend approved for payment on September 30, 2026.
Positive
- Q2 2026 revenue $64.6M vs. $63.1M in Q2 2025
- Portfolio metrics: $1,490 average monthly rent, 93.5% physical occupancy on 13,305 units
- Same Store occupancy up 30 bps year over year in Q2 2026
- $22.1M Waterford Loan deployed at 10.00% fixed rate via DST bridge-lending program
- Value-add upgrades in Q2: 459 units, $90.60 average rent premium, 23.0% ROI
- Dividend per share $0.53 in Q2 2026, up from $0.51 year over year
Negative
- Net loss widened to $8.6M in Q2 2026 from $7.0M in Q2 2025
- FFO, Core FFO, AFFO per diluted share down to $0.60, $0.66, $0.77 from $0.67, $0.71, $0.80
- Same Store Q2 NOI declined 2.9% and total revenue fell 0.6% year over year
- YTD Same Store metrics: revenue -1.4%, NOI -2.8%, average effective rent -0.9%
- Higher costs: Q2 2026 property operating expenses and interest expense increased by $2.1M and $0.7M
- Dividend coverage ratios (FFO/Core FFO/AFFO) declined versus prior-year periods
News Explained
NXRT’s
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | First-quarter earnings | Negative | +9.5% | Revenue and Same Store NOI declined, while the quarterly dividend remained unchanged. |
| Feb 24 | Full-year earnings | Negative | -2.6% | Annual results included a net loss and modest Same Store revenue and NOI declines. |
| Oct 28 | Third-quarter earnings | Positive | +2.2% | Same Store NOI increased 3.5% despite a 130-basis-point occupancy decline. |
| Jul 29 | Second-quarter earnings | Negative | +1.3% | Revenue and occupancy declined, although the dividend and credit facility were maintained. |
| Apr 29 | First-quarter earnings | Negative | +2.0% | Revenue, Same Store NOI and average effective rent declined year over year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
NXRT's earnings-specific history showed three divergences and two alignments, with positive reactions following several negative or mixed releases.
Key Terms
ffo financial
affo financial
noi financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NXRT Reports Continued Improvement in Monthly Lease Trade-Outs and Deploys Initial
Highlights
- NXRT1 reported net loss, FFO2, Core FFO2 and AFFO2 of
$8.6M $15.2M $16.9M $19.7M $7.0M $16.9M $18.0M $20.3M - NXRT reported net loss, FFO, Core FFO and AFFO of
$15.4M $32.6M $34.2M $39.3M $13.9M $34.3M $37.0M $41.8M - For the three months ended June 30, 2026, Q2 Same Store properties3, occupancy increased 30 bps, total revenue decreased
0.6% , and average effective rent and NOI2 decreased0.9% and2.9% over the prior year period. - For the six months ended June 30, 2026, YTD Same Store properties3, occupancy increased 30 bps, total revenue and NOI2 decreased
1.4% and2.8% , respectively, and average effective rent decreased0.9% over the prior year period. - NXRT paid a second quarter dividend of
$0.53 - The weighted average effective monthly rent per unit across all 36 properties held as of June 30, 2026 (the "Portfolio"), consisting of 13,3054 units, was
$1,490 93.5% . - On June 5, 2026, the Company deployed
$22.1 million 10.00% per annum, that financed the acquisition of a 240-unit stabilized multifamily property in the Greensboro–High Point,North Carolina market. The investment represents the Company's first deployment under its DST bridge-lending program and was funded through the Company's revolving credit facility, capturing a positive spread between the Waterford Loan's10.00% fixed rate and the Company's cost of borrowings. - During the second quarter 2026, for the properties in the Portfolio, we completed 459 full and partial upgrades and leased 255 upgraded units, achieving an average monthly rent premium of
$90.60 23.0% ROI5. - Since inception, for the properties currently in the Portfolio, we have completed 10,474 full and partial upgrades, 5,130 kitchen and laundry appliances, and 11,199 technology packages, resulting in a
$152 $51 $43 20.7% ,63.4% , and37.2% ROI, respectively.
(1) | In this release, "we," "us," "our," the "Company," and "NXRT" each refer to NexPoint Residential Trust, Inc., a |
(2) | FFO, Core FFO, AFFO and NOI are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of FFO, Core FFO, AFFO and NOI to net loss, see the "Definitions and Reconciliations of Non-GAAP Measures," "FFO, Core FFO and AFFO" and "NOI and Same Store NOI" sections of this release. |
(3) | We define "Same Store" properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 35 properties encompassing 12,984 units of apartment space in our Same Store pool for the three months ended June 30, 2026 (our "Q2 Same Store" properties) and 35 properties encompassing 12,984 units of apartment space in our Same Store pool for the six months ended June 30, 2026 (our "YTD Same Store" properties). |
(4) | Total units owned in our Portfolio is 13,305, however 1 unit is currently down. |
(5) | We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost. |
Second Quarter 2026 Financial Results
- Total revenues were
$64.6 million $63.1 million - Net loss for the second quarter of 2026 totaled
$8.6 million $0.34 $23.9 million $7.0 million $0.28 $24.1 million - The change in our net loss of
$8.6 million $2.1 million $0.7 million $1.5 million - For the second quarter of 2026, NOI was
$37.9 million $38.0 million - For the second quarter of 2026, Q2 Same Store NOI decreased
2.9% to$36.9 million $38.0 million - For the second quarter of 2026, FFO totaled
$15.2 million $0.60 $16.9 million $0.67 - For the second quarter of 2026, Core FFO totaled
$16.9 million $0.66 $18.0 million $0.71 - For the second quarter of 2026, AFFO totaled
$19.7 million $0.77 $20.3 million $0.80
2026 Year to Date Financial Results
- Total revenues were
$128.2 million $126.4 million - Net loss for the six months ended June 30, 2026 totaled
$15.4 million $0.60 $48.2 million $13.9 million $0.55 $48.4 million - The change in our net loss of
$15.4 million $13.9 million $1.7 million - For the six months ended June 30, 2026, NOI was
$75.5 million $75.8 million - For the six months ended June 30, 2026, Same Store NOI decreased
2.8% to$73.6 million $75.8 million - For the six months ended June 30, 2026, FFO totaled
$32.6 million $1.28 $34.3 million $1.34 - For the six months ended June 30, 2026, Core FFO totaled
$34.2 million $1.34 $37.0 million $1.45 - For the six months ended June 30, 2026, AFFO totaled
$39.3 million $1.54 $41.8 million $1.64
Subsequent Events
- On July 27, 2026, the Company's Board approved a quarterly dividend of
$0.53
Second Quarter Earnings Conference Call
NXRT will host a call on Tuesday, August 4, 2026, at 11:00 a.m. ET (10:00 a.m. CT), to discuss its second quarter 2026 financial results. The conference call can be accessed live over the phone by dialing 833-461-5787 or, for international callers, +1 365-657-4084 and using passcode Conference ID: 814362322. A live audio webcast of the call will be available online at the Company's website, nxrt.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.
About NXRT
NexPoint Residential Trust, Inc. is a publicly traded real estate investment trust ("REIT"), with its common stock listed on the New York Stock Exchange and NYSE Texas, Inc. 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," "plan," "believe" 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, forecasted submarket deliveries, 2026 full year guidance for earnings (loss) per diluted share and Core FFO per diluted share and the related components and assumptions, including acquisitions and dispositions, shares outstanding, and same store growth projections, NXRT's net asset value and the related components and assumptions, including estimated value-add expenditures, debt payments, outstanding debt, and shares outstanding, net income and NOI guidance for the full year and third quarter of 2026 and the related assumptions, planned value-add programs, including projected average rehab costs, rent change and return on investment, and expected settlement of interest rate swaps and the effect on the debt maturity schedule and rehab budgets. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including those described in greater detail in our filings with the SEC, particularly those described in our Annual Report on Form 10-K. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's most recent Annual Report on Form 10-K and other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements.
FFO, Core FFO and AFFO
The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share amounts):
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||
2026 | 2025 | 2026 | 2025 | % Change | ||||||||||||||||
Net loss | $ | (8,645) | $ | (7,061) | $ | (15,426) | $ | (13,985) | -10.3 | % | ||||||||||
Depreciation and amortization | 23,893 | 24,059 | 48,184 | 48,409 | -0.5 | % | ||||||||||||||
Adjustment for noncontrolling interests | (60) | (67) | (129) | (136) | 5.1 | % | ||||||||||||||
FFO attributable to common stockholders | 15,188 | 16,931 | 32,629 | 34,288 | -4.8 | % | ||||||||||||||
FFO per share - basic | $ | 0.60 | $ | 0.67 | $ | 1.28 | $ | 1.35 | -5.2 | % | ||||||||||
FFO per share - diluted | $ | 0.60 | $ | 0.67 | $ | 1.28 | $ | 1.34 | -4.5 | % | ||||||||||
Casualty-related expenses/(recoveries) | 90 | (792) | (1,662) | (1,448) | -14.8 | % | ||||||||||||||
Casualty loss | — | 5 | — | 168 | N/M | |||||||||||||||
Amortization of deferred financing costs | 1,684 | 1,628 | 3,367 | 3,272 | 2.9 | % | ||||||||||||||
Mark-to-market adjustments of interest rate caps | (29) | 187 | (127) | 778 | N/M | |||||||||||||||
Adjustment for noncontrolling interests | (7) | (4) | (6) | (11) | 45.5 | % | ||||||||||||||
Core FFO attributable to common stockholders | 16,926 | 17,955 | 34,201 | 37,047 | -7.7 | % | ||||||||||||||
Core FFO per share - basic | $ | 0.66 | $ | 0.71 | $ | 1.34 | $ | 1.46 | -8.2 | % | ||||||||||
Core FFO per share - diluted | $ | 0.66 | $ | 0.71 | $ | 1.34 | $ | 1.45 | -7.6 | % | ||||||||||
Equity-based compensation expense | 2,736 | 2,335 | 5,098 | 4,810 | 6.0 | % | ||||||||||||||
Adjustment for noncontrolling interests | (11) | (9) | (20) | (19) | -5.3 | % | ||||||||||||||
AFFO attributable to common stockholders | 19,651 | 20,281 | 39,279 | 41,838 | -6.1 | % | ||||||||||||||
AFFO per share - basic | $ | 0.77 | $ | 0.80 | $ | 1.54 | $ | 1.65 | -6.7 | % | ||||||||||
AFFO per share - diluted | $ | 0.77 | $ | 0.80 | $ | 1.54 | $ | 1.64 | -6.1 | % | ||||||||||
Weighted average common shares outstanding - basic | 25,517 | 25,384 | 25,458 | 25,416 | 0.2 | % | ||||||||||||||
Weighted average common shares outstanding - diluted | (1) | 25,517 | 25,404 | 25,491 | 25,540 | -0.2 | % | |||||||||||||
Dividends declared per common share | $ | 0.53 | $ | 0.51 | $ | 1.06 | $ | 1.02 | 3.9 | % | ||||||||||
Net loss Coverage - diluted | (2) | -0.64x | -0.55x | -0.57x | -0.54x | 5.0 | % | |||||||||||||
FFO Coverage - diluted | (2) | 1.12x | 1.31x | 1.21x | 1.31x | -8.1 | % | |||||||||||||
Core FFO Coverage - diluted | (2) | 1.25x | 1.39x | 1.26x | 1.42x | -11.1 | % | |||||||||||||
AFFO Coverage - diluted | (2) | 1.45x | 1.57x | 1.45x | 1.61x | -9.6 | % | |||||||||||||
(1) | The Company uses diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO. For periods in which potential common shares are anti‑dilutive, diluted weighted‑average shares outstanding are equal to basic weighted‑average shares outstanding. |
(2) | Indicates coverage ratio of net loss/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. |
Definitions and Reconciliations of Non-GAAP Measures
Definitions
This presentation contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income (loss), 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 a non-GAAP financial measure of performance. 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 as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory and administrative fees, (3) depreciation and amortization expenses, (4) corporate income and corporate general and administrative expenses that are not reflective of operations of the properties, (5) casualty-related expenses/(recoveries) and casualty loss, (6) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees and (7) equity in earnings of affiliate. We define "Same Store NOI" as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.
FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT"), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, 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 not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as loss on extinguishment of debt and modification costs, casualty-related expenses/(recoveries) and loss (gain), the amortization of deferred financing costs, mark-to-market gains or losses related to interest rate cap agreements not designated as hedges for accounting purposes, and the noncontrolling interests (as described above) related to these items.
AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our portfolio. 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 related noncontrolling interests (as described above) related to this item.
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 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 or substitute 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 or substitute to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.
Reconciliations
NOI and Same Store NOI
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Same Store NOI for the three and six months ended June 30, 2026 and 2025 to net loss, the most directly comparable GAAP financial measure (in thousands):
For the Three Months | For the Six Months | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Net loss | $ | (8,645) | $ | (7,061) | $ | (15,426) | $ | (13,985) | ||||||||
Adjustments to reconcile net loss to NOI: | ||||||||||||||||
Advisory and administrative fees | 1,798 | 1,725 | 3,569 | 3,421 | ||||||||||||
Corporate general and administrative expenses | 4,711 | 4,499 | 9,184 | 8,956 | ||||||||||||
Corporate income | (765) | (370) | (1,355) | (812) | ||||||||||||
Casualty-related expenses/(recoveries) | (1) | 90 | (792) | (1,662) | (1,448) | |||||||||||
Casualty loss | — | 5 | — | 168 | ||||||||||||
Property general and administrative expenses | (2) | 1,088 | 868 | 1,939 | 1,658 | |||||||||||
Depreciation and amortization | 23,893 | 24,059 | 48,184 | 48,409 | ||||||||||||
Interest expense | 15,829 | 15,162 | 31,271 | 29,543 | ||||||||||||
Equity in earnings of affiliate | (105) | (59) | (173) | (114) | ||||||||||||
NOI | $ | 37,894 | $ | 38,036 | $ | 75,531 | $ | 75,796 | ||||||||
Less Non-Same Store | ||||||||||||||||
Revenues | (1,443) | — | (3,000) | (4) | ||||||||||||
Operating expenses | 479 | — | 1,102 | (19) | ||||||||||||
Same Store NOI | $ | 36,930 | $ | 38,036 | $ | 73,633 | $ | 75,773 | ||||||||
(1) | Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries). |
(2) | Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. |
Reconciliation of Debt to Net Debt
(dollar amounts in thousands) | Q2 2026 | Q2 2025 | ||||||
Total mortgage debt | $ | 1,543,529 | $ | 1,503,242 | ||||
Total credit facility | 79,145 | — | ||||||
Total debt outstanding | 1,622,674 | 1,503,242 | ||||||
Adjustments to arrive at net debt: | ||||||||
Cash and cash equivalents | (14,626) | (13,623) | ||||||
Restricted cash held for value-add upgrades and green improvements | (6,564) | (3,320) | ||||||
Net Debt | $ | 1,601,484 | $ | 1,486,299 | ||||
Enterprise Value (1) | $ | 2,314,484 | $ | 2,331,299 | ||||
Leverage Ratio (Total Debt to Market Capitalization plus Total Debt) | 69 | % | 64 | % | ||||
Leverage Ratio (Net Debt to Enterprise Value) | 69 | % | 64 | % | ||||
(1) | Enterprise Value is calculated as Market Capitalization plus net debt. |
Guidance Reconciliations of NOI, Same Store NOI, FFO, Core FFO and AFFO
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our 2026 NOI guidance to net loss (the most directly comparable GAAP financial measure) guidance for the periods presented below (in thousands):
For the Year Ended | For the Three Months Ended | |||||||
Mid-Point (1) | Mid-Point (1) | |||||||
Net loss | $ | (39,517) | $ | (11,015) | ||||
Adjustments to reconcile net loss to NOI: | ||||||||
Advisory and administrative fees | 7,197 | 1,813 | ||||||
Corporate general and administrative expenses | 19,039 | 4,928 | ||||||
Corporate income | (3,267) | (978) | ||||||
Property general and administrative expenses | (2) | 4,009 | 1,003 | |||||
Depreciation and amortization | 97,423 | 24,888 | ||||||
Interest expense | 71,246 | 18,285 | ||||||
Casualty-related recoveries | (1,677) | — | ||||||
Equity in earnings of affiliate | (333) | (80) | ||||||
NOI | $ | 154,120 | $ | 38,844 | ||||
Less Non-Same Store | ||||||||
Revenues | (3) | (6,229) | ||||||
Operating expenses | (3) | 2,175 | ||||||
Same Store NOI | (3) | $ | 150,066 | |||||
(1) | Mid-Point estimates shown for full year and third quarter 2026 guidance. Assumptions made for full year and third quarter 2026 NOI guidance include the Same Store operating growth projections included in the "2026 Full Year Guidance Summary" section of this release and the effect of the dispositions throughout the fiscal year. |
(2) | Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. |
(3) | Amounts are derived from the results of operations of our YTD Same Store properties and Non-Same Store properties. There are 35 properties in our YTD Same Store pool. |
The following table reconciles our FFO, Core FFO and AFFO guidance to our net loss (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2026 (in thousands, except per share data):
For the Year Ended | ||||
Mid-Point | ||||
Net loss | $ | (39,517) | ||
Depreciation and amortization | 97,423 | |||
Adjustment for noncontrolling interests | (229) | |||
FFO attributable to common stockholders | 57,677 | |||
FFO per share - diluted (1) | $ | 2.25 | ||
Casualty-related recoveries | (1,677) | |||
Amortization of deferred financing costs | 6,585 | |||
Mark-to-market adjustments of interest rate caps | 23 | |||
Adjustment for noncontrolling interests | (19) | |||
Core FFO attributable to common stockholders | 62,589 | |||
Core FFO per share - diluted (1) | $ | 2.45 | ||
Equity-based compensation expense | 10,722 | |||
Adjustment for noncontrolling interests | (42) | |||
AFFO attributable to common stockholders | 73,269 | |||
AFFO per share - diluted (1) | $ | 2.86 | ||
Weighted average common shares outstanding - diluted | 25,593 | |||
(1) | For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 25.6 million for the full year 2026. |
NOI
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI for the three months ended March 31, 2026 and the year ended December 31, 2025 to net loss, the most directly comparable GAAP financial measure (in thousands):
For the Three Months Ended | For the Year Ended | |||||||
Net loss | $ | (6,781) | $ | (32,154) | ||||
Adjustments to reconcile net loss to NOI: | ||||||||
Advisory and administrative fees | 1,771 | 6,941 | ||||||
Corporate general and administrative expenses | 4,473 | 17,945 | ||||||
Corporate income | (590) | (1,666) | ||||||
Casualty-related expenses | (1) | (1,753) | 264 | |||||
Casualty loss | — | 167 | ||||||
Property general and administrative expenses | (2) | 851 | 4,010 | |||||
Depreciation and amortization | 24,291 | 95,752 | ||||||
Interest expense | 15,442 | 60,735 | ||||||
Equity in earnings of affiliate | (68) | (257) | ||||||
NOI | $ | 37,636 | $ | 151,737 | ||||
(1) | Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses. |
(2) | Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. |
The following table, reconciles FFO, Core FFO and AFFO for the three months ended March 31, 2026 and the year ended December 31, 2025 to net loss, the most directly comparable GAAP financial measure (in thousands):
For the Three Months Ended | For the Year Ended | |||||||
Net loss | $ | (6,781) | $ | (32,154) | ||||
Depreciation and amortization | 24,291 | 95,752 | ||||||
Adjustment for noncontrolling interests | (69) | (251) | ||||||
FFO attributable to common stockholders | 17,441 | 63,347 | ||||||
FFO per share - basic | $ | 0.69 | $ | 2.49 | ||||
FFO per share - diluted | $ | 0.69 | $ | 2.48 | ||||
Casualty-related expenses (recoveries) | (1,753) | 264 | ||||||
Casualty losses | — | 167 | ||||||
Amortization of deferred financing costs | 1,683 | 6,585 | ||||||
Mark-to-market adjustments of interest rate caps | (98) | 961 | ||||||
Adjustment for noncontrolling interests | 1 | (31) | ||||||
Core FFO attributable to common stockholders | 17,274 | 71,293 | ||||||
Core FFO per share - basic | $ | 0.68 | $ | 2.81 | ||||
Core FFO per share - diluted | $ | 0.68 | $ | 2.79 | ||||
Equity-based compensation expense | 2,362 | 9,883 | ||||||
Adjustment for noncontrolling interests | (9) | (39) | ||||||
AFFO attributable to common stockholders | 19,627 | 81,137 | ||||||
AFFO per share - basic | $ | 0.77 | $ | 3.20 | ||||
AFFO per share - diluted | $ | 0.77 | $ | 3.18 | ||||
Weighted average common shares outstanding - basic | 25,398 | 25,390 | ||||||
Weighted average common shares outstanding - diluted | (1) | 25,398 | 25,554 | |||||
Dividends declared per common share | $ | 0.53 | $ | 2.06 | ||||
Net income (loss) Coverage - diluted | (2) | -0.51x | -0.61x | |||||
FFO Coverage - diluted | (2) | 1.30x | 1.20x | |||||
Core FFO Coverage - diluted | (2) | 1.28x | 1.35x | |||||
AFFO Coverage - diluted | (2) | 1.46x | 1.54x | |||||
(1) | The Company uses diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO. For periods in which potential common shares are anti‑dilutive, diluted weighted‑average shares outstanding are equal to basic weighted‑average shares outstanding. |
(2) | Indicates coverage ratio of net loss/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. |
Contact:
Investor Relations
Kristen Griffith
IR@nexpoint.com
(214) 276-6300
Media inquiries: Comms@nexpoint.com
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SOURCE NexPoint Residential Trust, Inc.