NexPoint Residential Trust Reports Mixed Results for Q4 and Full Year 2025

For the fiscal year 2025, NexPoint reported a net loss of $32.0 million, translating to a loss of $1.26 per diluted share. This stands in stark contrast to a net income of $1.1 million or $0.04 per diluted share reported for the year 2024. The decline was attributed primarily to a decrease in gain on sales of real estate and a drop in rental income, which fell by $54.2 million and $8.2 million, respectively. The company’s total revenues decreased to $251.3 million, down from $259.7 million in the previous year.

In Q4 2025, NexPoint experienced a net loss of $10.3 million, or $0.41 per diluted share, compared to a net loss of $26.9 million for the same period in 2024. Total revenues for the quarter were reported at $62.1 million, a decrease from $63.8 million in Q4 2024. Notably, the company saw some improvement in its loss figures due to a decrease in loss on extinguishment of debt and modification costs.

NexPoint reported that its 2024-2025 Same Store properties experienced a decline in total revenue, net operating income (NOI), average effective rent, and occupancy rates. Specifically, revenue fell by 1.0%, NOI by 1.6%, and occupancy dropped by 195 basis points compared to the previous year.

The company made a strategic acquisition during 2025, purchasing Sedona at Lone Mountain, a 321-unit property for $73.25 million. As of December 31, 2025, the weighted average effective monthly rent across all 36 properties was reported at $1,492, with a physical occupancy rate of 92.7%.

NexPoint has prioritized returning value to shareholders, evidenced by a fourth quarter dividend of $0.53 per share, a 3.9% increase from the previous quarter. Since its inception, the company has raised its dividend by 157.3%.

During 2025, NexPoint completed 1,767 upgrades and installations across its properties, yielding an average monthly rent premium of $60 and a substantial 21.8% return on investment (ROI). The company has completed over 9,866 upgrades since inception, significantly enhancing its revenue-generating capabilities.

In a move to enhance shareholder value, NexPoint repurchased and retired 223,109 shares at an average price of $34.29 per share, representing a 29% discount to the midpoint of the company's Q4 NAV.

On January 30, 2026, NexPoint secured a $40.3 million mortgage loan for the Sedona acquisition, maturing in January 2033. Additionally, the company reduced its outstanding principal balance on its credit facility with JPMorgan Chase Bank by $33.0 million shortly after year-end.

NexPoint Residential Trust is set to host a conference call on February 24, 2026, to discuss these results in detail. Investors and analysts will be keen to hear management's insights and projections as the company navigates a landscape marked by fluctuations in real estate performance and broader economic factors.

In summary, while NexPoint Residential Trust faces challenges reflected in its financial results for 2025, its commitment to strategic growth, shareholder returns, and operational improvements position it well for future opportunities in the multifamily housing sector.