NexPoint Residential Trust, Inc. (NYSE:NXRT), a prominent player in the real estate investment trust (REIT) sector focused on middle-income multifamily properties, has released its financial results for the first quarter ended March 31, 2026. Despite a challenging environment, the company has shown resilience in its operations as it continues to manage its diverse portfolio.

1. Financial Highlights

The quarter ended with some significant metrics that underline both the challenges and the achievements of the company:

Net Loss: NexPoint reported a net loss of $6.8 million for Q1 2026, slightly improved from a loss of $6.9 million in the same quarter of the previous year.

Funds from Operations (FFO): The FFO remained stable at $17.4 million, translating to $0.69 per diluted share, unchanged from the previous year.

Core FFO: The Core FFO decreased to $17.3 million or $0.68 per diluted share, down from $19.1 million or $0.75 per diluted share in Q1 2025.

Adjusted Funds from Operations (AFFO): AFFO dropped to $19.6 million or $0.77 per diluted share, compared to $21.6 million or $0.84 per diluted share in the prior year.

2. Operational Performance

NexPoint's operational metrics displayed a mixed performance. The total revenue for the first quarter was reported at $63.5 million, a slight increase from $63.2 million in Q1 2025. However, the Same Store properties saw a decline across several key metrics:

Total Revenue: Same Store properties reported a decrease of 2.2% in total revenue.

Net Operating Income (NOI): NOI fell by 2.7% to $36.7 million.

Average Effective Rent: The average effective rent per unit decreased by 0.9%, settling at $1,485.

Occupancy Rate: Physical occupancy was reported at 93.5%, down by 80 basis points from the previous year.

Despite these challenges, NexPoint completed 300 upgrades across its properties during the first quarter, leasing 225 upgraded units and achieving an average monthly rent premium of $69 with a robust 19% return on investment.

3. Capital Management

NexPoint has taken proactive steps to manage its capital structure effectively. The company has utilized proceeds from a new mortgage note secured by Sedona at Lone Mountain to reduce its outstanding principal balance on its credit facility by $33 million.

Additionally, the board has approved a quarterly dividend of $0.53 per share, payable on June 30, 2026, reflecting a commitment to returning value to its shareholders, with a 3.9% increase from the previous dividend of $0.51.

4. Future Outlook

As part of its ongoing strategy, NexPoint has been focused on enhancing the value of its properties through targeted upgrades and improvements. Since its inception, the company has achieved significant upgrades, installing over 10,000 upgrades and technology packages, which have contributed to substantial average monthly rental increases.

Looking ahead, NexPoint is optimistic about stabilizing its operations and improving its financial metrics, as indicated by its ongoing investment in its portfolio. The company will provide further insights during its earnings conference call scheduled for April 28, 2026.

5. Conclusion

NexPoint Residential Trust Inc. continues to navigate a challenging market landscape while focusing on operational efficiency and property enhancements. The company’s commitment to delivering value to its shareholders through prudent financial management and strategic upgrades positions it well for future growth. Investors and stakeholders will be keenly watching the developments following the upcoming conference call, where further details on strategic initiatives and market outlook will be discussed.

Original press release