NexPoint Residential Trust, Inc. (NYSE:NXRT) released its financial results for the first quarter ended March 31, 2025, revealing a mixed performance amid a backdrop of declining revenues and occupancy rates in its multifamily property portfolio.

1. Financial Highlights

NexPoint reported a net loss attributable to common stockholders of $(6.9) million, or $(0.27) per diluted share, as compared to a net income of $26.3 million, or $1.00 per diluted share for the same quarter in 2024. This significant downturn is primarily attributed to a decrease in gains from real estate sales, which fell by $31.7 million year-over-year.

Key Financial Metrics:

Total Revenues: $63.2 million for Q1 2025, down from $67.6 million in Q1 2024.

Funds From Operations (FFO): $17.4 million, or $0.68 per diluted share, compared to $18.9 million, or $0.72 per diluted share in the previous year.

Core FFO: $19.1 million, or $0.75 per diluted share, slightly down from $19.4 million, or $0.74 per diluted share in the same quarter last year.

Adjusted Funds From Operations (AFFO): $21.6 million, or $0.84 per diluted share, compared to $22.0 million, or $0.83 per diluted share in Q1 2024.

2. Operational Performance

The company reported a decline in operational metrics across its Same Store properties, which include 35 properties and 12,948 units. Total revenue for these properties fell by 1.0%, Net Operating Income (NOI) decreased by 3.8%, and average effective rent dropped by 1.3%. The physical occupancy rate also saw a slight decline, dropping 30 basis points to 94.4%.

Portfolio Insights:

Average Effective Monthly Rent: $1,495.

Occupancy Rate: 94.4%.

Number of Upgrades: 210 full and partial upgrades were completed during the quarter, resulting in an average monthly rent premium of $62 and a 16.1% return on investment (ROI).

3. Dividend Declaration

Despite the net loss, NexPoint declared a first-quarter dividend of $0.51 per share on March 31, 2025. The Board has also approved a quarterly dividend of $0.51 per share, payable on June 30, 2025, to stockholders of record on June 16, 2025.

4. Strategic Movements

In a move to bolster its financial position, from April 1 to April 28, 2025, NexPoint repurchased 223,109 shares of its common stock for approximately $7.6 million at an average price of $34.29 per share. Additionally, on April 3, 2025, the company entered into a new five-year $100 million SOFR swap with JP Morgan Chase Bank at a fixed rate of 3.489%.

5. Forward Guidance

In its outlook for 2025, NexPoint anticipates a challenging environment, with a projected net loss of $(31.5) million for the full year. The company's management remains focused on enhancing operational efficiencies and value-add initiatives across its property portfolio to recover from the current downturn.

6. Earnings Conference Call

NexPoint will host an earnings conference call on April 29, 2025, at 11:00 a.m. ET, to discuss the financial results in detail. Investors can access the call via phone or through an online audio webcast available on the company's website.

As NexPoint Residential Trust navigates these mixed financial results, the focus will be on strategic operational adjustments and enhancing the value of its real estate investments to drive recovery in the upcoming quarters.

Original press release