nxrt-8k_20201027.htm
false 0001620393 0001620393 2020-10-27 2020-10-27

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 27, 2020

NEXPOINT RESIDENTIAL TRUST, INC.

(Exact Name Of Registrant As Specified In Charter)

 

 

 

 

 

 

Maryland

 

001-36663

 

47-1881359

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

300 Crescent Court, Suite 700

Dallas, Texas 75201

(Address of Principal Executive Offices) (Zip Code)

Registrants telephone number, including area code: (972) 628-4100 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.01 per share

 

NXRT

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 


 

Item 2.02. Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, Results of Operations and Financial Condition. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing. In a press release dated October 27, 2020, NexPoint Residential Trust, Inc. (the “Company”) announced financial results for the Companys third quarter ended September 30, 2020. The full text of the press release is furnished herewith as Exhibit 99.1 to this report.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

 

 

 

Exhibit Number

 

Exhibit Description

 

 

99.1

 

Press Release dated October 27, 2020

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)


 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC.

 

 

By:

 

/s/ Brian Mitts

 

 

Name: Brian Mitts

Title: Chief Financial Officer, Executive

VP-Finance, Secretary and Treasurer

 

Date: October 27, 2020

 

nxrt-ex991_6.htm

Exhibit 99.1

 

27 October 2020 | NYSE: NXRT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS SUPPLEMENT: THIRD QUARTER 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC.

300 CRESCENT COURT, SUITE 700

DALLAS, TX 75201

PHONE: 972-628-4100

INVESTOR RELATIONS:

JACKIE GRAHAM - 972-419-6213

 

WWW.NEXPOINTLIVING.COM

 

 

 

 

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

TABLE OF CONTENTS

 

 

 

Earnings Release

1

Cautionary Statement Regarding Forward-Looking Statements

3

Overview

5

Highlights of Recent Activity

6

Financial Summary

7

Components of Net Asset Value

8

Consolidated Balance Sheets

9

Consolidated Statements of Operations

10

Q3 Same Store Results

11

Q3 Same Store Properties Operating Metrics

13

YTD Same Store Results

15

FFO, Core FFO and AFFO

17

Historical Capital Expenditures

18

Value-Add Program Details

19

Outstanding Debt Details

20

Debt Maturity Schedule

22

Historical Acquisition Details

23

Historical Disposition Details

24

Definitions and Reconciliations of Non-GAAP Measures

25

 

 

 

   TORREYANA APARTMENTS: LAS VEGAS, NV

   CLUBHOUSE UPON ACQUISITION

   CLUBHOUSE POST RENOVATION – COMPLETED IN 2020

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

Contact:

Investor Relations

Jackie Graham

JGraham@nexpointadvisors.com

972-419-6213

Media inquiries: MediaRelations@nexpointadvisors.com

 

NEXPOINT RESIDENTIAL TRUST, INC. REPORTS THIRD QUARTER 2020 RESULTS

NXRT Board Approves 9.2% Increase in Quarterly Dividend, Demonstrating Sunbelt Affordable Housing Portfolio Continues to Exhibit Resilience; Returns 5.96x Multiple on Invested Capital on $55.5 million DFW Asset

Dallas, TX, October 27, 2020 – NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the third quarter ended September 30, 2020.

 

Highlights

NXRT1 reported Net Income, FFO2, Core FFO2 and AFFO2 of $29.6M, $17.2M, $13.3M and $15.1M, respectively, attributable to common stockholders for the quarter ended September 30, 2020, compared to Net Income, FFO, Core FFO, and AFFO of $119.1M, $8.6M, $11.5M and $13.3M, respectively, attributable to common stockholders for the quarter ended September 30, 2019.

NXRT reported Net Income, FFO, Core FFO and AFFO of $48.2M, $41.6M, $41.3M and $46.5M, respectively, attributable to common stockholders for the nine months ended September 30, 2020, compared to Net Income, FFO, Core FFO, and AFFO of $112.4M, $30.6M, $33.5M and $38.9M, respectively, attributable to common stockholders for the nine months ended September 30, 2019.

For the three months ended September 30, 2020, Q3 Same Store properties3 average effective rent, total revenue and NOI2 increased 1.8%, 3.3% and 4.5%, respectively, and occupancy increased 170 bps over the prior year period.

For the nine months ended September 30, 2020, YTD Same Store properties3 average effective rent, total revenue and NOI2 increased 1.6%, 4.1% and 4.7%, respectively, and occupancy increased 160 bps over the prior year period.

The weighted average effective monthly rent per unit across all 36 properties held as of September 30, 2020 (the “Portfolio”), consisting of 13,657 units, was $1,122, while physical occupancy was 95.0%.

On September 30, 2020, NXRT disposed of Eagle Crest for a sales price of $55.5 million and net cash proceeds of $25.0 million after repayment of debt and closing costs.

NXRT paid a third quarter dividend of $0.3125 per share of common stock on September 30, 2020.

On October 26, 2020, the Company’s board declared a quarterly dividend of $0.34125 per share, a 9.2% increase from the previous dividend per share. Since inception, NXRT has increased the dividend per share by 65.7%.

During the third quarter, for the properties in our Portfolio, we completed 425 full and partial upgrades and leased 276 upgraded units, achieving an average monthly rent premium of $141 and a 22.5% ROI4. Since inception, for the properties currently in our Portfolio, we have completed 7,584 full and partial upgrades and achieved an average monthly rental increase per unit of $97, equating to a 24.4% ROI on all units leased as of September 30, 2020.

During the nine months ended September 30, 2020, through its at-the-market offering (“ATM program”), NXRT issued approximately 0.8 million shares for approximately $38.1 million in gross proceeds.

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 28 properties encompassing 9,926 units of apartment space in our Same Store pool for the three months ended September 30, 2020 (our “Q3 Same Store”

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

properties) and 24 properties encompassing 9,074 units of apartment space in our Same Store pool for the nine months ended September 30, 2020 (our “YTD Same Store” properties).

4)

We define Return on Investment (“ROI”) as the sum of the actual rent premium divided by the sum of the total cost.

 

During the nine months ended September 30, 2020, NXRT repurchased 1,644,697 shares at a weighted average price of $27.07 per share. Since inception, NXRT has repurchased 2,382,155 shares at a weighted average price of $25.70 per share.

On July 27, 2020, NXRT appointed Catherine Wood as an independent director to the Company’s board of directors (the “Board”). Ms. Wood brings a wealth of knowledge, extensive leadership experience, and a fresh perspective that complements the Company’s mission to diversify NXRT’s Board and management team. Both management and the Board believe the Company will benefit from diversification of viewpoints and experiences. Ms. Wood is Chief Executive Officer and Chief Investment Officer of ARK Investment Management LLC, an investment manager she founded in 2014.

 

Third Quarter 2020 Financial Results

Total revenues were $51.0 million for the third quarter of 2020, compared to $46.8 million for the third quarter of 2019.

Net income for the third quarter of 2020 totaled $29.6 million, or income of $1.19 per diluted share, which included $17.7 million of depreciation and amortization expense. This compared to a net income of $119.1 million, or a income of $4.84 per diluted share, for the third quarter of 2019, which included $17.2 million of depreciation and amortization expense.

The change in our net income of $29.6 million for the three months ended September 30, 2020 as compared to our net income of $119.1 million for the three months ended September 30, 2019 primarily relates to a decrease in gain on sales of real estate, partially offset by an increase in total revenues.

For the third quarter of 2020, NOI was $28.8 million on 36 properties, compared to $26.1 million for the third quarter of 2019 on 37 properties.

For the third quarter of 2020, Q3 Same Store NOI increased 4.5% to $19.4 million, compared to $18.6 million for the third quarter of 2019.

For the third quarter of 2020, FFO totaled $17.2 million, or $0.69 per diluted share, compared to $8.6 million, or $0.35 per diluted share, for the third quarter of 2019.

For the third quarter of 2020, Core FFO totaled $13.3 million, or $0.53 per diluted share, compared to $11.5 million, or $0.47 per diluted share, for the third quarter of 2019.

For the third quarter of 2020, AFFO totaled $15.1 million, or $0.60 per diluted share, compared to $13.3 million, or $0.54 per diluted share, for the third quarter of 2019.

2020 Year to Date Financial Results

Total revenues were $154.3 million for the nine months ended September 30, 2020, compared to $131.4 million for the nine months ended September 30, 2019.

Net income for the nine months ended September 30, 2020 totaled $48.4 million, or income of $1.91 per diluted share, which included a gain on sales of real estate of $69.2 million and $62.5 million of depreciation and amortization expense. This compared to net income of $112.7 million, or income of $4.63 per diluted share, nine months ended September 30, 2019, which included a gain on sales of real estate of $127.7 and $45.7 million of depreciation and amortization expense.

The change in our net income of $48.4 million for the nine months ended September 30, 2020 as compared to our net income of $112.7 million for the nine months ended September 30, 2019 primarily relates to a decrease in gains on sales of real estate and increases in depreciation and total property operating expenses, partially offset by an increase in total revenue.

For the nine months ended September 30, 2020, NOI was $88.0 million on 36 properties, compared to $74.3 million for the nine months ended September 30, 2019 on 37 properties.

For the nine months ended September 30, 2020, Same Store NOI increased 4.7% to $51.5 million, compared to $49.2 million for the nine months ended September 30, 2019.

For the nine months ended September 30, 2020, FFO totaled $41.6 million, or $1.65 per diluted share, compared to $30.6 million, or $1.26 per diluted share, for the nine months ended September 30, 2019.

For the nine months ended September 30, 2020, Core FFO totaled $41.3 million, or $1.64 per diluted share, compared to $33.5 million, or $1.38 per diluted share, for the nine months ended September 30, 2019.

For the nine months ended September 30, 2020, AFFO totaled $46.5 million, or $1.85 per diluted share, compared to $38.9 million, or $1.60 per diluted share, for the nine months ended September 30, 2019.

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Subsequent Events & Operational Trends

 

The Company is providing a summary of select October operating metrics in response to economic challenges and related government actions and regulations as a result of the ongoing novel Coronavirus (“COVID-19”) pandemic:

 

o

As of October 25, 2020, combined, rent cash collections and payment plans under lease amendments signed by residents financially impacted by COVID-19 represented 97.1% of billed rent for October 2020. This compares to 99.5% average cash collections in 2019. Rent cash collections represented 95.0% of billed October 2020 rent and promises to pay by financially impacted residents under lease amendments represented 2.1% of billed October 2020 rent.

 

o

Average Physical Occupancy for the Same Store Portfolio was strong at 94.8% as of October 26, 2020, while resident retention was 52.5%.

COVID-19 has resulted in cessation, severe curtailment, or impairment of business activities in most sectors of the economy in all markets we operate in, due to governmental “stay at home” orders, risk mitigation procedures, closure of businesses not considered to be “essential,” as well as other direct and indirect impacts, including those that may not yet be identified. This has resulted in a rapid and dramatic increase in unemployment in the U.S. We cannot estimate the extent of COVID-19’s future negative impacts or how long the negative impacts of COVID-19 will persist. In addition, it is possible that, even after the initial restrictions due to COVID-19 ease, they could be reinstituted in case of future waves of infection or if additional pandemics occur. As a result of these uncertainties related to COVID-19, the Company continues to withhold its full-year 2020 guidance outlook.

On October 13, 2020, the Company extended the maturity date of the Corporate Credit Facility from January 28, 2021 to January 28, 2022. Upon exercising the option to extend the Corporate Credit Facility, the Company incurred an extension fee of $0.6 million.

Third Quarter Earnings Conference Call

NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today that the Company is scheduled to host a conference call on Tuesday, October 27, 2020 at 11:00 a.m. ET (10:00 am CT), to discuss third 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: 9147899.  A live audio webcast of the call will be available online at the Company's website, http://www.nexpointliving.com (under "Investor Relations").  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, November 3, 2020 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 9147899.

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, www.nexpointliving.com, under the “Investor Relations” 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” 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 2020 adjusted NOI estimate and the related assumptions, the COVID-19 pandemic and its effects on the Company, net asset value and the related components and assumptions, planned value-add programs, including projected average rent, rent change and return on investment and expected acquisitions and dispositions. They are not guarantees of future results and forward-looking statements 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 and our Quarterly Reports on Form 10-Q. 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

 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

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.

 

www.NexPointLiving.com

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

NEXPOINT RESIDENTIAL TRUST, INC: THIRD QUARTER 2020 OVERVIEW

Company Profile

(share counts in thousands)

 

Exchange/Ticker

NYSE: NXRT

Share Price (1)

$44.21

Insider Ownership

13.05%

2020 Q4 Dividend Per Share

$0.34125

Dividend Yield (1)

3.09%

Shares Outstanding - basic (Wtd Avg. 3 mo. ended 09/30/2020)

24,372

Shares Outstanding - diluted (Wtd Avg. 3 mo. ended 09/30/2020)

24,926

(1)

As of the close of market trading on October 26, 2020.

 

Portfolio Composition by Market

 

Market

 

% of Units

Dallas/Fort Worth

 

17.5%

South Florida

 

14.3%

Nashville

 

13.5%

Atlanta

 

10.7%

Phoenix

 

9.7%

Houston

 

8.7%

Orlando

 

8.6%

Las Vegas

 

8.5%

Charlotte

 

4.3%

Tampa

 

4.2%

Total

 

100.0%

 

Revenue & Average Rent Per Unit

 

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

 

 

 

 

 

 

 

 

 

 

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Highlights of Recent Activity

DISPOSITION

Property Name

 

Location

 

Date of Sale

 

Sales Price

 

 

Multiple on

Invested Capital

 

Net Cash Proceeds (1)

 

 

Gain on Sale

of Real Estate

 

Eagle Crest

 

Irving, Texas

 

September 30, 2020

 

$

55,500

 

 

5.96x

 

$

24,974

 

 

$

30,160

 

 

(1)

Represents sales price, net of debt repayment and prepayment penalties.

 

COVID-19 Updates

October Collections Against NMHC Average (dollars in thousands)

 

 

October 2020

 

 

Collection %

 

 

NMHC Avg.

 

 

NXRT vs. NMHC Avg.

Total Tenant Charges

 

$

16,945

 

 

 

 

 

 

 

 

 

 

 

Total Deposits

 

$

16,098

 

 

95.0%

 

 

90.6%

 

 

+ 4.4%

Total Payment Plans

 

$

353

 

 

 

 

 

 

 

 

 

 

 

Total Collections

 

$

16,451

 

 

97.1%

 

 

 

 

 

 

 

*NXRT collections data as of October 25, 2020. NMHC average collections data as of October 20, 2020.

October Occupancy Trends

 

 

October 26,

 

 

2020

 

 

vs. 2019

Occupancy

 

94.6%

 

 

+207 bps

Leased

 

96.9%

 

 

+233 bps

60-Day Trend

 

92.1%

 

 

+141 bps

 

Q3 NXRT Collections by Market

Markets

 

As of September 30, 2020 (1)

 

 

As of October 26, 2020 (1)

 

Las Vegas

 

 

90.0

%

 

 

92.9

%

Charlotte

 

 

94.0

%

 

 

95.2

%

Atlanta

 

 

94.3

%

 

 

96.1

%

South Florida

 

 

94.6

%

 

 

96.7

%

Orlando

 

 

95.3

%

 

 

97.2

%

Houston

 

 

97.0

%

 

 

98.2

%

Dallas

 

 

97.0

%

 

 

98.1

%

Tampa

 

 

97.1

%

 

 

98.3

%

Nashville

 

 

97.5

%

 

 

98.8

%

Phoenix

 

 

98.2

%

 

 

99.1

%

Portfolio

 

 

95.6

%

 

 

97.2

%

 

 

(1)

Represents collected rent as a percentage of charged rent for July, August and September as of the applicable date. NXRT is still pursuing collections on the outstanding balances from these months.

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Financial Summary

 

 

Q3 2020

 

 

Q3 2019

 

 

YTD 2020

 

 

YTD 2019

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Profile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization (as of the last day of the period)

 

$

1,088,000

 

 

$

1,160,000

 

 

 

 

 

 

 

 

 

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

 

$

44.35

 

 

$

46.76

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

24,372

 

 

 

24,088

 

 

 

24,688

 

 

 

23,793

 

Weighted average common shares outstanding - diluted

 

 

24,926

 

 

 

24,557

 

 

 

25,194

 

 

 

24,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Profile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

50,990

 

 

$

46,833

 

 

$

154,252

 

 

$

131,390

 

Net income attributable to common stockholders

 

 

29,552

 

 

 

118,747

 

 

 

48,217

 

 

 

112,406

 

NOI (1)

 

 

28,844

 

 

 

26,100

 

 

 

88,046

 

 

 

74,264

 

Same Store NOI (2)

 

 

19,407

 

 

 

18,575

 

 

 

51,527

 

 

 

49,200

 

Same Store NOI Growth (%) (2)

 

 

4.5

%

 

 

 

 

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Metrics Per Common Share (diluted basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

1.19

 

 

$

4.84

 

 

$

1.91

 

 

$

4.63

 

FFO (1)

 

$

0.69

 

 

$

0.35

 

 

$

1.65

 

 

$

1.26

 

Core FFO (1)

 

$

0.53

 

 

$

0.47

 

 

$

1.64

 

 

$

1.38

 

AFFO (1)

 

$

0.60

 

 

$

0.54

 

 

$

1.85

 

 

$

1.60

 

Dividends declared per common share

 

$

0.3125

 

 

$

0.275

 

 

$

0.938

 

 

$

0.825

 

     FFO Coverage (3)

 

2.20x

 

 

1.27x

 

 

1.76x

 

 

1.53x

 

     Core FFO Coverage (3)

 

1.71x

 

 

1.70x

 

 

1.75x

 

 

1.67x

 

     AFFO Coverage (3)

 

1.94x

 

 

1.97x

 

 

1.97x

 

 

1.94x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Properties

 

 

36

 

 

 

37

 

 

 

 

 

 

 

 

 

Total Units

 

 

13,657

 

 

 

13,757

 

 

 

 

 

 

 

 

 

     Occupancy

 

 

95.0

%

 

 

93.6

%

 

 

 

 

 

 

 

 

     Average Effective Monthly Rent per Unit

 

$

1,122

 

 

$

1,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Portfolio Metrics (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Same Store Properties

 

 

28

 

 

 

28

 

 

 

24

 

 

 

24

 

Total Same Store Units

 

 

9,926

 

 

 

9,926

 

 

 

9,074

 

 

 

9,074

 

     Occupancy

 

 

95.1

%

 

 

93.4

%

 

 

94.9

%

 

 

93.3

%

     Average Effective Monthly Rent per Unit

 

$

1,058

 

 

$

1,039

 

 

$

1,042

 

 

$

1,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-Add Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Rehab Units

 

 

425

 

 

 

756

 

 

 

1,248

 

 

 

1,983

 

Cumulative Completed Rehab Units (4)

 

 

7,584

 

 

 

 

 

 

 

 

 

 

 

 

 

     Average Increase to Effective Monthly Rent

     per Unit (Post-Rehab)

 

$

97

 

 

 

 

 

 

 

 

 

 

 

 

 

     ROI on Post-Rehab Units

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding Debt Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Mortgage Debt

 

$

1,121,805

 

 

$

1,060,948

 

 

 

 

 

 

 

 

 

Credit Facilities

 

 

215,000

 

 

 

107,000

 

 

 

 

 

 

 

 

 

Total Debt Outstanding

 

$

1,336,805

 

 

$

1,167,948

 

 

 

 

 

 

 

 

 

     Leverage Ratio (Net Debt to Enterprise Value) (5)

 

 

54

%

 

 

49

%

 

 

 

 

 

 

 

 

(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 Q3 and YTD Same Store properties, see the “Q3 Same Store Results” and “YTD Same Store Results” section of this release.

(3)

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

(4)

Inclusive of all full and partial interior upgrades completed through. Cumulative results exclude rehabs completed for properties sold through September 30, 2020.

(5)

For more information and a reconciliation of debt to net debt, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.

 

www.NexPointLiving.com

Page 7

 

 

 

 


 

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

 

13.3%

 

 

4.7%

 

 

5.0%

 

 

$

305,091

 

 

$

333,058

 

Houston

 

7.7%

 

 

5.0%

 

 

5.3%

 

 

 

165,571

 

 

 

180,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charlotte

 

3.8%

 

 

4.7%

 

 

5.0%

 

 

 

87,465

 

 

 

95,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta

 

10.5%

 

 

4.7%

 

 

5.0%

 

 

 

241,408

 

 

 

263,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nashville

 

13.6%

 

 

4.7%

 

 

5.0%

 

 

 

312,113

 

 

 

340,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Orlando

 

9.0%

 

 

5.0%

 

 

5.3%

 

 

 

194,249

 

 

 

211,292

 

Tampa

 

3.5%

 

 

4.7%

 

 

5.0%

 

 

 

79,299

 

 

 

86,568

 

South Florida

 

17.2%

 

 

4.7%

 

 

5.0%

 

 

 

394,250

 

 

 

430,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nevada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Las Vegas

 

10.4%

 

 

5.0%

 

 

5.3%

 

 

 

225,652

 

 

 

245,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix

 

11.0%

 

 

4.7%

 

 

5.0%

 

 

 

255,327

 

 

 

275,945

 

Total / Ave

 

100.0%

 

 

4.8%

 

 

5.1%

 

 

$

2,260,425

 

 

$

2,462,542

 

 

NAV SUMMARY

 

Component

 

Min

 

 

Max

 

Tangible Assets

 

 

 

 

 

 

 

 

Real Estate (2)

 

$

2,260,425

 

 

$

2,462,542

 

Cash (4)

 

70,282

 

Restricted Cash - Renovation Reserves (5)

 

11,918

 

Renovation Expenditures (5)

 

(2,980)

 

Cash Adjustments (6)

 

(773)

 

Fair Market Value of Interest Rate Swaps

 

0

 

Other Assets

 

46,937

 

Value of Assets

 

$

2,385,810

 

 

$

2,587,927

 

 

 

 

 

 

 

 

 

 

Tangible Liabilities

 

 

 

 

 

 

 

 

Credit Facility (7)

 

$215,000

 

Mortgage Debt

 

1,121,805

 

Total Outstanding Debt

 

1,336,805

 

Forward 12-month Principal Payments (7)

 

(773)

 

Total Outstanding Debt (FY 2020 Est.)

 

1,336,032

 

Other Tangible Liabilities (at Book)

 

37,943

 

    Derivative Liability

 

51,077

 

Value of Liabilities

 

$1,425,052

 

Net Leverage (mid-point)

 

57%

 

Net Asset Value

 

$

960,758

 

 

$

1,162,875

 

Shares outstanding - diluted (FY 2020 Est.)

 

25,160

 

Est. NAV / Share

 

$

38.19

 

 

$

46.22

 

NAV / Share (mid-point)

 

$42.20

 

 

NOI ESTIMATE

 

 

 

 

 

 

 

 

 

2Q 2020 NOI Actual

 

29,217

 

3Q 2020 NOI Actual

 

28,844

 

 

 

Low

 

 

High

 

 

 

 

 

 

 

 

 

 

FY 2020 Adjusted NOI Est. (3)

 

$

114,650

 

 

$

117,650

 

IMPLIED VALUATION METRICS

 

 

 

Min

 

Max

Implied Real Estate Value

 

$2,260,425

 

$2,462,542

No. of Units (September 30, 2020) (2)

 

13,853

Implied Value/Apartment Unit

 

$163.2

 

$177.8

Implied Value/Apartment Unit (mid-point)

 

$170.5

 

 

 

(1)

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

(2)

Full Year 2020 Adjusted NOI estimate is presented for the existing portfolio (36 properties as of September 30, 2020).

(3)

Based on Green Street Advisors’ “Residential Sectors” Report dated April 19, 2020. FY 2020 Adjusted NOI estimate does not consider any additional acquisitions or dispositions activity for the remainder of the year.

(4)

Includes approximately $24.3 million of Eagle Crest disposition proceeds currently held at Republic Title of Texas, Inc., the Qualified Intermediary.

(5)

Includes approximately $11.9 million that is held for value-add upgrades; reduced by $3.0 million for estimated fourth quarter 2020 rehab expenditures.

(6)

Includes approximately $0.8 million in forward 12-month principal payments.

(7)

Includes outstanding balance of September 30, 2020.

www.NexPointLiving.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)

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Operating Real Estate Investments

 

 

 

 

 

 

 

 

Land

 

$

312,436

 

 

$

317,886

 

Buildings and improvements

 

 

1,460,793

 

 

 

1,472,319

 

Intangible lease assets

 

 

 

 

 

12,414

 

Construction in progress

 

 

16,425

 

 

 

4,375

 

Furniture, fixtures, and equipment

 

 

91,304

 

 

 

81,038

 

Total Gross Operating Real Estate Investments

 

 

1,880,958

 

 

 

1,888,032

 

Accumulated depreciation and amortization

 

 

(195,800

)

 

 

(152,552

)

Total Net Operating Real Estate Investments

 

 

1,685,158

 

 

 

1,735,480

 

Real estate held for sale, net of accumulated depreciation of $0 and $7,859, respectively

 

 

 

 

 

46,330

 

Total Net Real Estate Investments

 

 

1,685,158

 

 

 

1,781,810

 

Cash and cash equivalents

 

 

70,282

 

 

 

25,671

 

Restricted cash

 

 

38,334

 

 

 

45,511

 

Accounts receivable

 

 

10,770

 

 

 

6,285

 

Prepaid and other assets

 

 

9,751

 

 

 

2,336

 

Fair market value of interest rate swaps

 

 

 

 

 

4,376

 

TOTAL ASSETS

 

$

1,814,295

 

 

$

1,865,989

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgages payable, net

 

$

1,116,573

 

 

$

1,145,371

 

Mortgages payable held for sale, net

 

 

 

 

 

41,176

 

Credit facility, net

 

 

214,540

 

 

 

216,501

 

Accounts payable and other accrued liabilities

 

 

12,503

 

 

 

11,971

 

Accrued real estate taxes payable

 

 

19,049

 

 

 

12,206

 

Accrued interest payable

 

 

2,182

 

 

 

3,691

 

Security deposit liability

 

 

2,726

 

 

 

2,977

 

Prepaid rents

 

 

1,483

 

 

 

1,658

 

Fair market value of interest rate swaps

 

 

51,077

 

 

 

902

 

Total Liabilities

 

 

1,420,133

 

 

 

1,436,453

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests in the Operating Partnership

 

 

3,248

 

 

 

3,295

 

 

 

 

 

 

 

 

 

 

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; 24,541,683 and 25,245,740 shares issued and outstanding, respectively

 

 

244

 

 

 

251

 

Additional paid-in capital

 

 

354,530

 

 

 

359,748

 

Accumulated earnings less dividends

 

 

88,028

 

 

 

63,776

 

Accumulated other comprehensive income (loss)

 

 

(51,888

)

 

 

2,466

 

Total Stockholders' Equity

 

 

390,914

 

 

 

426,241

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,814,295

 

 

$

1,865,989

 

 

 

www.NexPointLiving.com

Page 9

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

(Unaudited)

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

49,578

 

 

$

45,854

 

 

$

149,945

 

 

$

128,270

 

Other income

 

 

1,412

 

 

 

979

 

 

 

4,307

 

 

 

3,120

 

Total revenues

 

 

50,990

 

 

 

46,833

 

 

 

154,252

 

 

 

131,390

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

11,906

 

 

 

11,456

 

 

 

35,591

 

 

 

31,256

 

Real estate taxes and insurance

 

 

7,686

 

 

 

6,731

 

 

 

23,485

 

 

 

18,053

 

Property management fees (1)

 

 

1,489

 

 

 

1,408

 

 

 

4,504

 

 

 

3,939

 

Advisory and administrative fees (2)

 

 

1,976

 

 

 

1,891

 

 

 

5,777

 

 

 

5,613

 

Corporate general and administrative expenses

 

 

2,807

 

 

 

2,339

 

 

 

8,440

 

 

 

7,313

 

Property general and administrative expenses

 

 

1,559

 

 

 

1,547

 

 

 

4,924

 

 

 

4,973

 

Depreciation and amortization

 

 

17,723

 

 

 

17,228

 

 

 

62,479

 

 

 

45,692

 

Total expenses

 

 

45,146

 

 

 

42,600

 

 

 

145,200

 

 

 

116,839

 

Operating income before gain on sales of real estate

 

 

5,844

 

 

 

4,233

 

 

 

9,052

 

 

 

14,551

 

Gain on sales of real estate

 

 

30,160

 

 

 

127,700

 

 

 

69,151

 

 

 

127,700

 

Operating income

 

 

36,004

 

 

 

131,933

 

 

 

78,203

 

 

 

142,251

 

Interest expense

 

 

(11,049

)

 

 

(9,960

)

 

 

(33,704

)

 

 

(26,638

)

Loss on extinguishment of debt and modification costs

 

 

(596

)

 

 

(2,869

)

 

 

(1,470

)

 

 

(2,869

)

Casualty gains

 

 

4,960

 

 

 

 

 

 

3,932

 

 

 

 

Miscellaneous income

 

 

322

 

 

 

 

 

 

1,401

 

 

 

 

Net income

 

 

29,641

 

 

 

119,104

 

 

 

48,362

 

 

 

112,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to redeemable noncontrolling interests in the Operating Partnership

 

 

89

 

 

 

357

 

 

 

145

 

 

 

338

 

Net income attributable to common stockholders

 

$

29,552

 

 

$

118,747

 

 

$

48,217

 

 

$

112,406

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on interest rate derivatives

 

 

4,068

 

 

 

(3,550

)

 

 

(54,518

)

 

 

(20,161

)

Total comprehensive income (loss)

 

 

33,709

 

 

 

115,554

 

 

 

(6,156

)

 

 

92,583

 

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

 

 

101

 

 

 

347

 

 

 

(19

)

 

 

278

 

Comprehensive income (loss) attributable to common stockholders

 

$

33,608

 

 

$

115,207

 

 

$

(6,137

)

 

$

92,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

24,372

 

 

 

24,088

 

 

 

24,688

 

 

 

23,793

 

Weighted average common shares outstanding - diluted

 

 

24,926

 

 

 

24,557

 

 

 

25,194

 

 

 

24,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

1.21

 

 

$

4.93

 

 

$

1.95

 

 

$

4.72

 

Earnings per share - diluted

 

$

1.19

 

 

$

4.84

 

 

$

1.91

 

 

$

4.63

 

(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.

 

 

 

 

 

 

 

www.NexPointLiving.com

Page 10

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Q3 Same Store Results of Operations for the Three Months Ended September 30, 2020 and 2019

There are 28 properties encompassing 9,926 units of apartment space, or approximately 73% of our Portfolio, in our same store pool for the three months ended September 30, 2020 and 2019 (our “Q3 Same Store” properties). Our Q3 Same Store properties exclude the following 8 properties in our Portfolio as of September 30, 2020: Residences at Glenview Reserve, Residences at West Place, Avant at Pembroke Pines, Arbors of Brentwood, Torreyana Apartments, Bloom, Bella Solara and Cutter’s Point.

As of September 30, 2020, our Q3 Same Store properties were approximately 95.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,058, a year-over-year increase of 170 bps and an increase of $19, respectively.

The following table reflects the revenues, property operating expenses and NOI for the three months ended September 30, 2020 and 2019 for our Q3 Same Store and Non-Same Store properties (dollars in thousands):

 

 

For the Three Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

33,468

 

 

$

32,328

 

 

$

1,140

 

 

 

3.5

%

Other income

 

 

586

 

 

 

635

 

 

 

(49

)

 

 

-7.7

%

Same Store revenues

 

 

34,054

 

 

 

32,963

 

 

 

1,091

 

 

 

3.3

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

 

16,110

 

 

 

13,526

 

 

 

2,584

 

 

 

19.1

%

Other income

 

 

826

 

 

 

344

 

 

 

482

 

 

N/M

 

Non-Same Store revenues

 

 

16,936

 

 

 

13,870

 

 

 

3,066

 

 

 

22.1

%

Total revenues

 

 

50,990

 

 

 

46,833

 

 

 

4,157

 

 

 

8.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses (1)

 

 

7,845

 

 

 

7,887

 

 

 

(42

)

 

 

-0.5

%

Real estate taxes and insurance

 

 

4,921

 

 

 

4,644

 

 

 

277

 

 

 

6.0

%

Property management fees (2)

 

 

1,017

 

 

 

983

 

 

 

34

 

 

 

3.5

%

Property general and administrative expenses (3)

 

 

864

 

 

 

874

 

 

 

(10

)

 

 

-1.1

%

Same Store operating expenses

 

 

14,647

 

 

 

14,388

 

 

 

259

 

 

 

1.8

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses (4)

 

 

3,917

 

 

 

3,535

 

 

 

382

 

 

 

10.8

%

Real estate taxes and insurance

 

 

2,765

 

 

 

2,087

 

 

 

678

 

 

 

32.5

%

Property management fees (2)

 

 

472

 

 

 

425

 

 

 

47

 

 

 

11.1

%

Property general and administrative expenses (5)

 

 

345

 

 

 

298

 

 

 

47

 

 

 

15.8

%

Non-Same Store operating expenses

 

 

7,499

 

 

 

6,345

 

 

 

1,154

 

 

 

18.2

%

Total operating expenses

 

 

22,146

 

 

 

20,733

 

 

 

1,413

 

 

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

19,407

 

 

 

18,575

 

 

 

832

 

 

 

4.5

%

Non-Same Store

 

 

9,437

 

 

 

7,525

 

 

 

1,912

 

 

 

25.4

%

Total NOI (6)

 

$

28,844

 

 

$

26,100

 

 

$

2,744

 

 

 

10.5

%

(1)

For the three months ended September 30, 2020 and 2019, excludes approximately $653,000 and $26,000, 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 September 30, 2020 and 2019, excludes approximately $244,000 and $223,000, 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.

(4)

For the three months ended September 30, 2020 and 2019, excludes approximately $(509,000) and $8,000, respectively, of casualty-related expenses/(recoveries).

(5)

For the three months ended September 30, 2020 and 2019, excludes approximately $106,000 and $152,000, 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.

 

 

www.NexPointLiving.com

Page 11

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

The following table contains additional information about our Q3 Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the three months ended September 30, 2020 and 2019 (dollars in thousands, except for per unit data):

 

 

Q3 2020

 

 

Q3 2019

 

 

% Change

 

Same Store Total Units

 

 

9,926

 

 

 

9,926

 

 

 

 

 

Same Store Occupied Units

 

 

9,437

 

 

 

9,274

 

 

 

 

 

Same Store Ending Occupancy

 

 

95.1

%

 

 

93.4

%

 

 

1.7

%

Same Store Average Rent per Unit

 

$

1,058

 

 

$

1,039

 

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Rental Income

 

$

33,468

 

 

$

32,328

 

 

 

3.5

%

Same Store Other Income

 

 

586

 

 

 

635

 

 

 

-7.7

%

Total Same Store Revenues

 

 

34,054

 

 

 

32,963

 

 

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Payroll

 

 

3,277

 

 

 

3,228

 

 

 

1.5

%

Repairs & Maintenance

 

 

2,647

 

 

 

2,847

 

 

 

-7.0

%

Utilities

 

 

1,921

 

 

 

1,812

 

 

 

6.0

%

Real Estate Taxes

 

 

4,260

 

 

 

4,089

 

 

 

4.2

%

Insurance

 

 

661

 

 

 

555

 

 

 

19.1

%

Property Management Fees

 

 

1,017

 

 

 

983

 

 

 

3.5

%

Office Operations

 

 

587

 

 

 

566

 

 

 

3.7

%

Marketing

 

 

277

 

 

 

308

 

 

 

-10.1

%

Total Same Store Operating Expenses

 

 

14,647

 

 

 

14,388

 

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 Same Store NOI

 

$

19,407

 

 

$

18,575

 

 

 

4.5

%

 


 

www.NexPointLiving.com

Page 12

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Q3 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

 

Q3 2020

Q3 2019

% Change

Q3 2020

Q3 2019

bps ∆

Q3 2020

Q3 2019

% Change

Texas

 

 

 

 

 

 

 

 

 

 

 

 

Dallas

 

2,391

 

$970

$950

2.1%

95.6%

93.3%

230

$7,711

$7,388

4.4%

Houston

 

1,184

 

1,108

1,131

-2.0%

94.6%

94.2%

40

4,156

4,144

0.3%

Average/Total

 

3,575

 

1,016

1,010

0.6%

95.3%

93.6%

170

11,867

11,532

2.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

 

 

 

 

 

 

 

 

 

Charlotte

 

577

 

1,016

990

2.6%

96.5%

92.2%

430

1,834

1,722

6.5%

Average/Total

 

577

 

1,016

990

2.6%

96.5%

92.2%

430

1,834

1,722

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta

 

1,460

 

1,114

1,097

1.5%

95.4%

93.6%

180

4,911

4,821

1.9%

Average/Total

 

1,460

 

1,114

1,097

1.5%

95.4%

93.6%

180

4,911

4,821

1.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

 

 

 

 

 

 

 

 

 

Nashville

 

1,142

 

987

981

0.6%

93.7%

93.6%

10

3,650

3,507

4.1%

Average/Total

 

1,142

 

987

981

0.6%

93.7%

93.6%

10

3,650

3,507

4.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

 

 

 

Orlando

 

830

 

1,155

1,162

-0.6%

91.8%

92.7%

-90

2,884

2,955

-2.4%

Tampa

 

576

 

986

943

4.6%

95.7%

94.6%

110

1,757

1,697

3.5%

South Florida

 

439

 

1,255

1,202

4.4%

97.5%

92.0%

550

1,753

1,680

4.3%

Average/Total

 

1,845

 

1,126

1,103

2.1%

94.4%

93.1%

130

6,394

6,332

1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix

 

1,327

 

1,093

1,037

5.4%

95.7%

93.7%

200

4,812

4,414

9.0%

Average/Total

 

1,327

 

1,093

1,037

5.4%

95.7%

93.7%

200

4,812

4,414

9.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average/Total

 

9,926

 

$1,058

$1,039

1.8%

95.1%

93.4%

170

$33,468

$32,328

3.5%

(1)

This table only includes the 28 properties in our Q3 Same Store pool.

 


 

www.NexPointLiving.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

 

 

Q3 2020

 

Q2 2020

 

% Change

 

Q3 2020

 

Q2 2020

 

bps ∆

 

Q3 2020

 

Q2 2020

 

% Change

 

Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dallas

 

 

2,391

 

 

$

970

 

$

959

 

1.1%

 

 

95.6

%

 

95.9

%

 

-30

 

$

7,711

 

$

7,651

 

0.8%

 

Houston

 

 

1,184

 

 

 

1,108

 

 

1,137

 

-2.6%

 

 

94.6

%

 

94.6

%

 

0

 

 

4,156

 

 

4,208

 

-1.2%

 

Average/Total

 

 

3,575

 

 

 

1,016

 

 

1,018

 

-0.2%

 

 

95.3

%

 

95.5

%

 

-20

 

 

11,867

 

 

11,859

 

0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Carolina

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charlotte

 

 

577

 

 

 

1,016

 

 

1,000

 

1.6%

 

 

96.5

%

 

97.2

%

 

-70

 

 

1,834

 

 

1,812

 

1.2%

 

Average/Total

 

 

577

 

 

 

1,016

 

 

1,000

 

1.6%

 

 

96.5

%

 

97.2

%

 

-70

 

 

1,834

 

 

1,812

 

1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Georgia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Atlanta

 

 

1,460

 

 

 

1,114

 

 

1,103

 

1.0%

 

 

95.4

%

 

95.2

%

 

20

 

 

4,911

 

 

4,871

 

0.8%

 

Average/Total

 

 

1,460

 

 

 

1,114

 

 

1,103

 

1.0%

 

 

95.4

%

 

95.2

%

 

20

 

 

4,911

 

 

4,871

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nashville

 

 

1,142

 

 

 

987

 

 

979

 

0.8%

 

 

93.7

%

 

95.0

%

 

-130

 

 

3,650

 

 

3,617

 

0.9%

 

Average/Total

 

 

1,142

 

 

 

987

 

 

979

 

0.8%

 

 

93.7

%

 

95.0

%

 

-130

 

 

3,650

 

 

3,617

 

0.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Orlando

 

 

830

 

 

 

1,155

 

 

1,161

 

-0.5%

 

 

91.8

%

 

93.9

%

 

-210

 

 

2,884

 

 

2,933

 

-1.7%

 

Tampa

 

 

576

 

 

 

986

 

 

973

 

1.3%

 

 

95.7

%

 

96.4

%

 

-70

 

 

1,757

 

 

1,753

 

0.2%

 

South Florida

 

 

439

 

 

 

1,255

 

 

1,259

 

-0.3%

 

 

97.5

%

 

97.7

%

 

-20

 

 

1,753

 

 

1,751

 

0.1%

 

Average/Total

 

 

1,845

 

 

 

1,126

 

 

1,126

 

0.0%

 

 

94.4

%

 

95.6

%

 

-120

 

 

6,394

 

 

6,437

 

-0.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix

 

 

1,327

 

 

 

1,093

 

 

1,078

 

1.4%

 

 

95.7

%

 

95.6

%

 

10

 

 

4,812

 

 

4,602

 

4.6%

 

Average/Total

 

 

1,327

 

 

 

1,093

 

 

1,078

 

1.4%

 

 

95.7

%

 

95.6

%

 

10

 

 

4,812

 

 

4,602

 

4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average/Total

 

 

9,926

 

 

$

1,058

 

$

1,053

 

0.5%

 

 

95.1

%

 

95.5

%

 

-40

 

$

33,468

 

$

33,198

 

0.8%

 

 

(1)

This table only includes the 28 properties in our Q3 Same Store pool.

 

 


 

www.NexPointLiving.com

Page 14

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

YTD Same Store Results of Operations for the Nine Months Ended September 30, 2020 and 2019

There are 24 properties encompassing 9,074 units of apartment space, or approximately 66% of our Portfolio, in our same store pool for the nine months ended September 30, 2020 and 2019 (our “YTD Same Store” properties). Our YTD Same Store properties exclude the following 12 properties in our Portfolio as of September 30, 2020: Bella Vista, The Enclave, The Heritage, Summers Landing, Residences at Glenview Reserve, Residences at West Place, Avant at Pembroke Pines, Arbors of Brentwood, Torreyana Apartments, Bloom, Bella Solara and Cutter’s Point.

As of September 30, 2020, our YTD Same Store properties were approximately 94.9% leased with a weighted average monthly effective rent per occupied apartment unit of $1,042, a year-over-year increase of 160 bps and an increase of $16, respectively.

The following table reflects the revenues, property operating expenses and NOI for the nine months ended September 30, 2020 and 2019 for our YTD Same Store and Non-Same Store properties (dollars in thousands):

 

 

For the Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

89,868

 

 

$

85,901

 

 

$

3,967

 

 

 

4.6

%

Other income

 

 

1,671

 

 

 

2,074

 

 

 

(403

)

 

 

-19.4

%

Same Store revenues

 

 

91,539

 

 

 

87,975

 

 

 

3,564

 

 

 

4.1

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

 

60,077

 

 

 

42,369

 

 

 

17,708

 

 

 

41.8

%

Other income

 

 

2,636

 

 

 

1,046

 

 

 

1,590

 

 

N/M

 

Non-Same Store revenues

 

 

62,713

 

 

 

43,415

 

 

 

19,298

 

 

 

44.5

%

Total revenues

 

 

154,252

 

 

 

131,390

 

 

 

22,862

 

 

 

17.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses (1)

 

 

20,624

 

 

 

20,541

 

 

 

83

 

 

 

0.4

%

Real estate taxes and insurance

 

 

14,273

 

 

 

12,966

 

 

 

1,307

 

 

 

10.1

%

Property management fees (2)

 

 

2,725

 

 

 

2,626

 

 

 

99

 

 

 

3.8

%

Property general and administrative expenses (3)

 

 

2,390

 

 

 

2,642

 

 

 

(252

)

 

 

-9.5

%

Same Store operating expenses

 

 

40,012

 

 

 

38,775

 

 

 

1,237

 

 

 

3.2

%

Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses (4)

 

 

13,766

 

 

 

10,689

 

 

 

3,077

 

 

 

28.8

%

Real estate taxes and insurance

 

 

9,212

 

 

 

5,087

 

 

 

4,125

 

 

N/M

 

Property management fees (2)

 

 

1,779

 

 

 

1,313

 

 

 

466

 

 

 

35.5

%

Property general and administrative expenses (5)

 

 

1,437

 

 

 

1,262

 

 

 

175

 

 

 

13.9

%

Non-Same Store operating expenses

 

 

26,194

 

 

 

18,351

 

 

 

7,843

 

 

 

42.7

%

Total operating expenses

 

 

66,206

 

 

 

57,126

 

 

 

9,080

 

 

 

15.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store

 

 

51,527

 

 

 

49,200

 

 

 

2,327

 

 

 

4.7

%

Non-Same Store

 

 

36,519

 

 

 

25,064

 

 

 

11,455

 

 

 

45.7

%

Total NOI (6)

 

$

88,046

 

 

$

74,264

 

 

$

13,782

 

 

 

18.6

%

(1)

For the nine months ended September 30, 2020 and 2019, excludes approximately $61,000 and $(7,000), respectively, of casualty-related expenses/(recoveries).

(2)

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

(3)

For the nine months ended September 30, 2020 and 2019, excludes approximately $596,000 and $663,000, 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.

(4)

For the nine months ended September 30, 2020 and 2019, excludes approximately $140,000 and $33,000, respectively, of casualty-related expenses.

(5)

For the nine months ended September 30, 2020 and 2019, excludes approximately $501,000 and $406,000, 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.

 

www.NexPointLiving.com

Page 15

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

The following table contains additional information about our YTD Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the nine months ended September 30, 2020 and 2019 (dollars in thousands, except for per unit data):

 

 

 

YTD 2020

 

 

YTD 2019

 

 

% Change

 

Same Store Total Units

 

 

9,074

 

 

 

9,074

 

 

 

 

 

Same Store Occupied Units

 

 

8,613

 

 

 

8,469

 

 

 

 

 

Same Store Ending Occupancy

 

 

94.9

%

 

 

93.3

%

 

 

1.6

%

Same Store Average Rent per Unit

 

$

1,042

 

 

$

1,026

 

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Rental Income

 

$

89,868

 

 

$

85,901

 

 

 

4.6

%

Same Store Other Income

 

 

1,671

 

 

 

2,074

 

 

 

-19.4

%

Total Same Store Revenues

 

 

91,539

 

 

 

87,975

 

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Same Store Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Payroll

 

 

8,784

 

 

 

8,692

 

 

 

1.1

%

Repairs & Maintenance

 

 

7,116

 

 

 

7,241

 

 

 

-1.7

%

Utilities

 

 

4,724

 

 

 

4,608

 

 

 

2.5

%

Real Estate Taxes

 

 

12,528

 

 

 

11,391

 

 

 

10.0

%

Insurance

 

 

1,745

 

 

 

1,575

 

 

 

10.8

%

Property Management Fees

 

 

2,725

 

 

 

2,626

 

 

 

3.8

%

Office Operations

 

 

1,598

 

 

 

1,692

 

 

 

-5.6

%

Marketing

 

 

792

 

 

 

950

 

 

 

-16.6

%

Total Same Store Operating Expenses

 

 

40,012

 

 

 

38,775

 

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD Same Store NOI

 

$

51,527

 

 

$

49,200

 

 

 

4.7

%

 


 

www.NexPointLiving.com

Page 16

 

 

 

 


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, the most directly comparable GAAP financial measure, for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share amounts):

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

% Change (1)

 

 

Net income

 

$

29,641

 

 

$

119,104

 

 

$

48,362

 

 

$

112,744

 

 

N/M

 

 

Depreciation and amortization

 

 

17,723

 

 

 

17,228

 

 

 

62,479

 

 

 

45,692

 

 

 

36.7

%

 

Gain on sales of real estate

 

 

(30,160

)

 

 

(127,700

)

 

 

(69,151

)

 

 

(127,700

)

 

 

-45.8

%

 

Adjustment for noncontrolling interests

 

 

(52

)

 

 

(26

)

 

 

(125

)

 

 

(92

)

 

 

35.9

%

 

FFO attributable to common stockholders

 

 

17,152

 

 

 

8,606

 

 

 

41,565

 

 

 

30,644

 

 

 

35.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share - basic

 

$

0.70

 

 

$

0.36

 

 

$

1.68

 

 

$

1.29

 

 

 

30.7

%

 

FFO per share - diluted

 

$

0.69

 

 

$

0.35

 

 

$

1.65

 

 

$

1.26

 

 

 

30.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt and modification costs

 

 

596

 

 

 

2,869

 

 

 

1,470

 

 

 

2,869

 

 

 

-48.8

%

 

Casualty-related expenses/(recoveries)

 

 

(47

)

 

 

34

 

 

 

726

 

 

 

26

 

 

N/M

 

 

Casualty gains

 

 

(4,960

)

 

 

 

 

 

(3,932

)

 

 

 

 

 

0.0

%

 

Pandemic expense

(2)

 

191

 

 

 

 

 

 

475

 

 

 

 

 

 

0.0

%

 

Amortization of deferred financing costs - acquisition term notes

 

 

345

 

 

 

 

 

 

1,039

 

 

 

 

 

 

0.0

%

 

Adjustment for noncontrolling interests

 

 

11

 

 

 

(9

)

 

 

2

 

 

 

(9

)

 

N/M

 

 

Core FFO attributable to common stockholders

 

 

13,288

 

 

 

11,500

 

 

 

41,345

 

 

 

33,530

 

 

 

23.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share - basic

 

$

0.55

 

 

$

0.48

 

 

$

1.67

 

 

$

1.41

 

 

 

18.8

%

 

Core FFO per share - diluted

 

$

0.53

 

 

$

0.47

 

 

$

1.64

 

 

$

1.38

 

 

 

18.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs - long term debt

 

 

357

 

 

 

541

 

 

 

1,102

 

 

 

1,443

 

 

 

-23.7

%

 

Equity-based compensation expense

 

 

1,434

 

 

 

1,291

 

 

 

4,069

 

 

 

3,944

 

 

 

3.2

%

 

Adjustment for noncontrolling interests

 

 

(5

)

 

 

(6

)

 

 

(15

)

 

 

(16

)

 

 

-6.3

%

 

AFFO attributable to common stockholders

 

 

15,074

 

 

 

13,326

 

 

 

46,501

 

 

 

38,901

 

 

 

19.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per share - basic

 

$

0.62

 

 

$

0.55

 

 

$

1.88

 

 

$

1.63

 

 

 

15.2

%

 

AFFO per share - diluted

 

$

0.60

 

 

$

0.54

 

 

$

1.85

 

 

$

1.60

 

 

 

15.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

24,372

 

 

 

24,088

 

 

 

24,688

 

 

 

23,793

 

 

 

3.8

%

 

Weighted average common shares outstanding - diluted

 

 

24,926

 

 

 

24,557

 

 

 

25,194

 

 

 

24,280

 

 

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.3125

 

 

$

0.275

 

 

$

0.938

 

 

$

0.825

 

 

 

13.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO Coverage - diluted

(3)

2.20x

 

 

1.27x

 

 

1.76x

 

 

1.53x

 

 

 

15.03

%

 

Core FFO Coverage - diluted

(3)

1.71x

 

 

1.70x

 

 

1.75x

 

 

1.67x

 

 

 

4.57

%

 

AFFO Coverage - diluted

(3)

1.94x

 

 

1.97x

 

 

1.97x

 

 

1.94x

 

 

 

1.38

%

 

(1)

Represents the percentage change for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019.

(2)

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

(3)

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

 

 

www.NexPointLiving.com

Page 17

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Historical Capital Expenditures

 

 

Q3 2020

 

 

Q3 2019

 

 

% Change

 

 

YTD 2020

 

 

YTD 2019

 

 

% Change

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition Capital Expenditures

 

$

 

 

$

484,250

 

 

N/M

 

 

$

 

 

$

635,746

 

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Rehab Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interior

 

 

2,310

 

 

 

3,322

 

 

 

-30.5

%

 

 

7,433

 

 

 

8,783

 

 

 

-15.4

%

Exterior and common area

 

 

4,474

 

 

 

2,524

 

 

 

77.3

%

 

 

15,432

 

 

 

7,661

 

 

 

101.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Maintenance Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

 

1,545

 

 

 

1,627

 

 

 

-5.0

%

 

 

4,123

 

 

 

4,240

 

 

 

-2.8

%

Non-Recurring

 

 

1,171

 

 

 

1,599

 

 

 

-26.8

%

 

 

3,116

 

 

 

4,026

 

 

 

-22.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital Expenditures

 

$

9,500

 

 

$

493,322

 

 

 

-98.1

%

 

$

30,104

 

 

$

660,456

 

 

 

-95.4

%

 

 

 

 

 

 

 

 

www.NexPointLiving.com

Page 18

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Value-Add Program Details

 

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

 

 

 

153

 

 

 

1,143

 

 

 

1,208

 

 

 

1,986

 

 

 

5.6

%

 

 

38.8

%

Arbors on Forest Ridge

 

 

210

 

 

 

258

 

 

 

824

 

 

 

896

 

 

 

2,739

 

 

 

8.8

%

 

 

31.6

%

Atera Apartments

 

 

380

 

 

 

205

 

 

 

1,131

 

 

 

1,275

 

 

 

3,217

 

 

 

12.7

%

 

 

53.6

%

Avant at Pembroke Pines

 

 

1,520

 

 

 

88

 

 

 

1,433

 

 

 

1,648

 

 

 

11,059

 

 

 

15.0

%

 

 

23.3

%

Beechwood Terrace

 

 

300

 

 

 

354

 

 

 

892

 

 

 

970

 

 

 

3,602

 

 

 

8.8

%

 

 

26.0

%

Bella Solara

 

 

320

 

 

 

23

 

 

 

1,051

 

 

 

1,195

 

 

 

9,598

 

 

 

13.7

%

 

 

18.0

%

Bella Vista

 

 

248

 

 

 

70

 

 

 

1,214

 

 

 

1,364

 

 

 

11,469

 

 

 

12.3

%

 

 

15.7

%

Bloom

 

 

528

 

 

 

14

 

 

 

1,021

 

 

 

1,172

 

 

 

13,703

 

 

 

14.8

%

 

 

13.2

%

Brandywine I & II

 

 

632

 

 

 

164

 

 

 

926

 

 

 

1,080

 

 

 

8,731

 

 

 

16.7

%

 

 

21.2

%

Cedar Pointe

 

 

210

 

 

 

139

 

 

 

1,003

 

 

 

1,092

 

 

 

3,667

 

 

 

8.9

%

 

 

29.2

%

Courtney Cove

 

 

324

 

 

 

175

 

 

 

821

 

 

 

924

 

 

 

4,840

 

 

 

12.5

%

 

 

25.5

%

Crestmont Reserve

 

 

242

 

 

 

127

 

 

 

816

 

 

 

874

 

 

 

2,453

 

 

 

7.1

%

 

 

28.3

%

Cutter's Point

 

 

 

 

 

218

 

 

 

1,026

 

 

 

1,114

 

 

 

3,792

 

 

 

8.6

%

 

 

27.8

%

Hollister Place

 

 

260

 

 

 

419

 

 

 

950

 

 

 

1,044

 

 

 

3,870

 

 

 

9.9

%

 

 

29.1

%

Madera Point

 

 

256

 

 

 

222

 

 

 

827

 

 

 

922

 

 

 

3,924

 

 

 

11.4

%

 

 

29.0

%

Parc500

 

 

217

 

 

 

164

 

 

 

1,162

 

 

 

1,344

 

 

 

14,799

 

 

 

15.6

%

 

 

14.7

%

Radbourne Lake

 

 

225

 

 

 

314

 

 

 

1,031

 

 

 

1,073

 

 

 

893

 

 

 

4.1

%

 

 

56.5

%

Residences at Glenview Reserve

 

 

360

 

 

 

42

 

 

 

932

 

 

 

1,101

 

 

 

10,326

 

 

 

18.2

%

 

 

19.7

%

Residences at West Place

 

 

342

 

 

 

55

 

 

 

1,229

 

 

 

1,348

 

 

 

6,181

 

 

 

9.7

%

 

 

23.2

%

Rockledge Apartments

 

 

708

 

 

 

620

 

 

 

1,169

 

 

 

1,271

 

 

 

4,850

 

 

 

8.7

%

 

 

25.3

%

Sabal Palm at Lake Buena Vista

 

 

400

 

 

 

255

 

 

 

1,136

 

 

 

1,222

 

 

 

597

 

 

 

7.6

%

 

 

172.4

%

Seasons 704 Apartments

 

 

222

 

 

 

165

 

 

 

1,038

 

 

 

1,138

 

 

 

5,818

 

 

 

9.6

%

 

 

20.6

%

Silverbrook

 

 

642

 

 

 

696

 

 

 

833

 

 

 

900

 

 

 

2,635

 

 

 

8.0

%

 

 

30.4

%

Summers Landing

 

 

196

 

 

 

59

 

 

 

927

 

 

 

1,012

 

 

 

3,101

 

 

 

9.2

%

 

 

33.0

%

Summit at Sabal Park

 

 

252

 

 

 

346

 

 

 

939

 

 

 

1,009

 

 

 

3,269

 

 

 

7.5

%

 

 

25.8

%

The Cornerstone

 

 

430

 

 

 

317

 

 

 

938

 

 

 

1,026

 

 

 

5,235

 

 

 

9.4

%

 

 

20.1

%

The Enclave

 

 

204

 

 

 

68

 

 

 

1,256

 

 

 

1,402

 

 

 

10,405

 

 

 

11.7

%

 

 

16.9

%

The Heritage

 

 

204

 

 

 

62

 

 

 

1,171

 

 

 

1,316

 

 

 

11,615

 

 

 

12.5

%

 

 

15.1

%

The Preserve at Terrell Mill

 

 

752

 

 

 

521

 

 

 

789

 

 

 

936

 

 

 

9,476

 

 

 

18.6

%

 

 

18.6

%

The Venue on Camelback

 

 

415

 

 

 

136

 

 

 

667

 

 

 

925

 

 

 

10,641

 

 

 

38.7

%

 

 

29.1

%

Timber Creek

 

 

352

 

 

 

274

 

 

 

901

 

 

 

1,009

 

 

 

5,420

 

 

 

12.0

%

 

 

23.9

%

Torreyana Apartments

 

 

315

 

 

 

8

 

 

 

1,139

 

 

 

1,259

 

 

 

13,826

 

 

 

10.6

%

 

 

10.5

%

Venue at 8651

 

 

333

 

 

 

398

 

 

 

861

 

 

 

944

 

 

 

4,368

 

 

 

9.6

%

 

 

22.7

%

Versailles

 

 

388

 

 

 

455

 

 

 

848

 

 

 

925

 

 

 

3,928

 

 

 

9.0

%

 

 

23.4

%

Total/Weighted Average

 

 

12,733

 

 

 

7,584

 

 

$

948

 

 

$

1,045

 

 

$

4,798

 

 

 

10.3

%

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

$

1,233

 

 

$

1,314

 

 

TBD

 

 

 

6.6

%

 

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 September 30, 2020.

(3)

Inclusive of all full and partial interior upgrades completed and leased through September 30, 2020.


 

www.NexPointLiving.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 September 30, 2020 (dollars in thousands):

Operating Properties

 

Type

 

Term (months)

 

 

Outstanding

Principal (1)

 

 

Interest Rate (2)

 

 

Maturity Date

Arbors on Forest Ridge

 

Floating

 

 

84

 

 

$

13,130

 

 

1.83%

 

 

7/1/2024

Cutter's Point

 

Floating

 

 

84

 

 

 

16,640

 

 

1.83%

 

 

7/1/2024

Silverbrook

 

Floating

 

 

84

 

 

 

30,590

 

 

1.83%

 

 

7/1/2024

Beechwood Terrace

 

Floating

 

 

84

 

 

 

23,365

 

 

1.59%

 

 

9/1/2025

The Summit at Sabal Park

 

Floating

 

 

84

 

 

 

13,560

 

 

1.77%

 

 

7/1/2024

Courtney Cove

 

Floating

 

 

84

 

 

 

13,680

 

 

1.77%

 

 

7/1/2024

The Preserve at Terrell Mill

 

Floating

 

 

84

 

 

 

42,480

 

 

1.77%

 

 

7/1/2024

Versailles

 

Floating

 

 

84

 

 

 

23,880

 

 

1.77%

 

 

7/1/2024

Seasons 704 Apartments

 

Floating

 

 

84

 

 

 

17,460

 

 

1.77%

 

 

7/1/2024

Madera Point

 

Floating

 

 

84

 

 

 

15,150

 

 

1.77%

 

 

7/1/2024

Venue at 8651

 

Floating

 

 

84

 

 

 

13,734

 

 

1.93%

 

 

7/1/2024

The Venue on Camelback

 

Floating

 

 

84

 

 

 

28,093

 

 

1.83%

 

 

7/1/2024

Old Farm

 

Floating

 

 

84

 

 

 

52,886

 

 

1.83%

 

 

7/1/2024

Stone Creek at Old Farm

 

Floating

 

 

84

 

 

 

15,274

 

 

1.83%

 

 

7/1/2024

Timber Creek

 

Floating

 

 

84

 

 

 

24,100

 

 

1.41%

 

 

10/1/2025

Radbourne Lake

 

Floating

 

 

84

 

 

 

20,000

 

 

1.44%

 

 

10/1/2025

Sabal Palm at Lake Buena Vista

 

Floating

 

 

84

 

 

 

42,100

 

 

1.45%

 

 

9/1/2025

Cornerstone

 

Fixed

 

 

120

 

 

 

21,420

 

 

4.24%

 

 

3/1/2023

Parc500

 

Fixed

 

 

120

 

 

 

15,021

 

 

4.49%

 

 

8/1/2025

Hollister Place

 

Floating

 

 

84

 

 

 

14,811

 

 

1.49%

 

 

10/1/2025

Rockledge Apartments

 

Floating

 

 

84

 

 

 

68,100

 

 

1.72%

 

 

7/1/2024

Atera Apartments

 

Floating

 

 

84

 

 

 

29,500

 

 

1.63%

 

 

11/1/2024

Cedar Pointe

 

Floating

 

 

84

 

 

 

17,300

 

 

1.50%

 

 

9/1/2025

Crestmont Reserve

 

Floating

 

 

84

 

 

 

12,061

 

 

1.33%

 

 

10/1/2025

Brandywine I & II

 

Floating

 

 

84

 

 

 

43,835

 

 

1.33%

 

 

10/1/2025

Bella Vista

 

Floating

 

 

84

 

 

 

29,040

 

 

1.47%

 

 

2/1/2026

The Enclave

 

Floating

 

 

84

 

 

 

25,322

 

 

1.47%

 

 

2/1/2026

The Heritage

 

Floating

 

 

84

 

 

 

24,625

 

 

1.47%

 

 

2/1/2026

Summers Landing

 

Floating

 

 

84

 

 

 

10,109

 

 

1.33%

 

 

10/1/2025

Residences at Glenview Reserve

 

Floating

 

 

84

 

 

 

26,560

 

 

1.59%

 

 

10/1/2025

Residences at West Place

 

Fixed

 

 

120

 

 

 

33,817

 

 

4.24%

 

 

10/1/2028

Avant at Pembroke Pines

 

Floating

 

 

84

 

 

 

177,100

 

 

1.58%

 

 

9/1/2026

Arbors of Brentwood

 

Floating

 

 

84

 

 

 

34,237

 

 

1.58%

 

 

10/1/2026

Torreyana Apartments

 

Floating

 

 

84

 

 

 

37,400

 

 

1.85%

 

 

12/1/2026

Bloom

 

Floating

 

 

84

 

 

 

58,850

 

 

1.85%

 

 

12/1/2026

Bella Solara

 

Floating

 

 

84

 

 

 

36,575

 

 

1.85%

 

 

12/1/2026

 

 

 

 

 

 

 

 

$

1,121,805

 

 

 

 

 

 

 

Fair market value adjustment

 

 

 

 

 

 

 

 

1,312

 

 

 

 

 

 

 

Deferred financing costs, net of accumulated amortization of $3,348

 

 

 

 

 

 

 

 

(6,544

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,116,573

 

 

 

 

 

 

 

(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 September 30, 2020 was 0.1483%.

 

Credit Facility

The following table contains summary information concerning the Company’s credit facility as of September 30, 2020 (dollars in thousands):

 

 

Type

 

Term (months)

 

 

Outstanding

Principal

 

 

Interest Rate (1)

 

 

Maturity Date

Corporate Credit Facility

 

Floating

 

 

24

 

 

$

215,000

 

 

2.65%

 

 

1/28/2021

Deferred financing costs, net of accumulated amortization of $1,592

 

 

 

 

 

 

 

 

(460

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

214,540

 

 

 

 

 

 

 

(1)

Interest rate is based on one-month LIBOR plus an applicable margin. One-month LIBOR as of September 30, 2020 was 0.1483%.

 

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Page 20

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Interest Rate Swap Agreements

As of September 30, 2020, 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 September 30, 2020, one-month LIBOR was 0.1483%.

(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

%

 

September 1, 2026

 

January 1, 2027

 

KeyBank

 

 

92,500

 

 

 

1.7980

%

 

 

 

 

 

 

 

$

492,500

 

 

 

1.0678

%

(2)

 

(1)

  The floating rate option for the interest rate swaps is one-month LIBOR. As of September 30, 2020, one-month LIBOR was 0.1483%.

(2)

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

 


 

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Page 21

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Debt Maturity Schedule

 

 

 

Payments Due by Period (in thousands)

 

 

 

 

Total

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

Operating Properties Mortgage Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal payments

 

 

$

1,121,805

 

 

$

191

 

 

$

896

 

 

$

1,513

 

 

$

21,300

 

 

$

395,180

 

 

$

702,725

 

Interest expense

(1)

 

 

147,155

 

 

 

8,875

 

 

 

33,174

 

 

 

28,800

 

 

 

26,533

 

 

 

21,905

 

 

 

27,868

 

Total

 

 

$

1,268,960

 

 

$

9,066

 

 

$

34,070

 

 

$

30,313

 

 

$

47,833

 

 

$

417,085

 

 

$

730,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal payments

(2)

 

$

215,000

 

 

$

 

 

$

215,000

 

 

$

 

 

$

 

 

$

 

 

$

 

Interest expense

 

 

 

1,883

 

 

 

1,456

 

 

 

427

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

$

216,883

 

 

$

1,456

 

 

$

215,427

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total contractual obligations and commitments

 

 

$

1,485,843

 

 

$

10,522

 

 

$

249,497

 

 

$

30,313

 

 

$

47,833

 

 

$

417,085

 

 

$

730,593

 

 

(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 September 30, 2020, 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 September 30, 2020 to determine our expected settlements through the terms of the interest rate swaps.

(2)

On October 13, 2020, the Company extended the maturity date of the Corporate Credit Facility from January 28, 2021 to January 28, 2022.

 

 

 

(1)

As of September 30, 2020, we had total indebtedness of $1.3 billion at an adjusted weighted average interest rate of 3.08%, of which $1.3 billion was debt with a floating interest rate. As of September 30, 2020, interest rate swap agreements effectively covered 100% of our $1.1 billion of floating rate mortgage debt outstanding and 53.9% of our $215.0 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 September 30, 2020, which effectively fix the interest rate on $1.2 billion of our floating rate debt outstanding.


 

www.NexPointLiving.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 (3)

 

Richardson, TX

 

 

1/31/2014

 

15,845

 

1,357

 

17,202

 

Silverbrook

 

Grand Prairie, TX

 

642

 

1/31/2014

 

30,400

 

1,661

 

32,061

 

49,939

Beechwood Terrace

 

Antioch, TN

 

300

 

7/21/2014

 

21,400

 

1,815

 

23,215

 

77,383

The Summit at Sabal Park

 

Tampa, FL

 

252

 

8/20/2014

 

19,050

 

1,656

 

20,706

 

82,167

Courtney Cove

 

Tampa, FL

 

324

 

8/20/2014

 

18,950

 

1,691

 

20,641

 

63,707

Radbourne Lake

 

Charlotte, NC

 

225

 

9/30/2014

 

24,250

 

1,438

 

25,688

 

114,169

Timber Creek

 

Charlotte, NC

 

352

 

9/30/2014

 

22,750

 

4,334

 

27,084

 

76,943

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

 

2,662

 

34,212

 

79,563

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

 

3,917

 

30,082

 

77,531

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

 

4,592

 

23,842

 

71,598

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

 

456

 

23,788

 

125,200

Hollister Place

 

Houston, TX

 

260

 

2/1/2017

 

24,500

 

2,952

 

27,452

 

105,585

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

 

2,252

 

28,752

 

136,914

Crestmont Reserve

 

Dallas, TX

 

242

 

9/26/2018

 

24,680

 

2,797

 

27,477

 

113,541

Brandywine I & II

 

Nashville, TN

 

632

 

9/26/2018

 

79,800

 

7,762

 

87,562

 

138,547

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

Total/Weighted Average

 

 

 

13,657

 

 

 

$1,773,440

 

$147,690

 

$1,921,130

 

$140,670

(1)

Only includes properties owned as of September 30, 2020.

(2)

Includes interior and exterior rehab.

(3)

Cutter’s Point had 23 occupied units and 60 units available as of September 30, 2020. The remaining 136 units are still undergoing construction as a result of tornado damage sustained in 2019. The Company has decided to exclude all 196 units from the unit count until the majority of the units are available for rent.


 

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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

 

 

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.

 

www.NexPointLiving.com

Page 24

 

 

 

 


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) the cost of funds, (2) acquisition costs, (3) advisory and administrative fees, (4) 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, (5) corporate general and administrative expenses, (6) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (7) casualty-related expenses/(recoveries) and casualty gain (loss), (8) miscellaneous income derived from recognition of lost rents covered by insurance, (9) pandemic expenses that are not reflective of continuing operations of the properties and (10) 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 and the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt and costs incurred in connection with a debt modification that are expensed), casualty-related expenses/recoveries, casualty gains or losses, pandemic expenses, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing and the noncontrolling interests 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 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.

 

 

www.NexPointLiving.com

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

Reconciliations

NOI and Same Store NOI for the three and nine months ended September 30, 2020 and 2019

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 nine months ended September 30, 2020 and 2019 to net income, the most directly comparable GAAP financial measure (in thousands):

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

Net income

 

$

29,641

 

 

$

119,104

 

 

$

48,362

 

 

$

112,744

 

 

Adjustments to reconcile net income to NOI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory and administrative fees

 

 

1,976

 

 

 

1,891

 

 

 

5,777

 

 

 

5,613

 

 

Corporate general and administrative expenses

 

 

2,807

 

 

 

2,339

 

 

 

8,440

 

 

 

7,313

 

 

Casualty-related expenses/(recoveries)

(1)

 

(47

)

 

 

34

 

 

 

726

 

 

 

26

 

 

Casualty gains

 

 

(4,960

)

 

 

 

 

 

(3,932

)

 

 

 

 

Miscellaneous income

 

 

(322

)

 

 

 

 

 

(1,401

)

 

 

 

 

Pandemic expense

(2)

 

191

 

 

 

 

 

 

475

 

 

 

 

 

Property general and administrative expenses

(3)

 

350

 

 

 

375

 

 

 

1,097

 

 

 

1,069

 

 

Depreciation and amortization

 

 

17,723

 

 

 

17,228

 

 

 

62,479

 

 

 

45,692

 

 

Interest expense

 

 

11,049

 

 

 

9,960

 

 

 

33,704

 

 

 

26,638

 

 

Loss on extinguishment of debt and modification costs

 

 

596

 

 

 

2,869

 

 

 

1,470

 

 

 

2,869

 

 

Gain on sales of real estate

 

 

(30,160

)

 

 

(127,700

)

 

 

(69,151

)

 

 

(127,700

)

 

NOI

 

$

28,844

 

 

$

26,100

 

 

$

88,046

 

 

$

74,264

 

 

Less Non-Same Store

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

(16,936

)

 

 

(13,870

)

 

 

(62,713

)

 

 

(43,415

)

 

Operating expenses

 

 

7,499

 

 

 

6,345

 

 

 

26,194

 

 

 

18,351

 

 

Same Store NOI

 

$

19,407

 

 

$

18,575

 

 

$

51,527

 

 

$

49,200

 

 

(1)

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

(2)

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

(3)

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.

 


 

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

NOI and Same Store NOI for the Three Months Ended June 30, 2020

 

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Same Store NOI for the three months ended June 30, 2020 to net loss, the most directly comparable GAAP financial measure (in thousands):

 

 

 

For the Three Months Ended June 30, 2020

 

Net loss

 

$

(9,318

)

Adjustments to reconcile net income to NOI:

 

 

 

 

Advisory and administrative fees

 

 

1,936

 

Corporate general and administrative expenses

 

 

2,932

 

Casualty-related recoveries

 

 

723

 

Casualty gains

 

 

1,079

 

Miscellaneous income

 

 

(1,079

)

Pandemic expense

 

 

274

 

Property general and administrative expenses

 

 

278

 

Depreciation and amortization

 

 

21,418

 

Interest expense

 

 

10,993

 

Loss on extinguishment of debt and modification costs

 

 

 

Gain on sales of real estate

 

 

(19

)

NOI

 

$

29,217

 

Less Non-Same Store

 

 

 

 

Revenues

 

 

(16,036

)

Operating expenses

 

 

6,985

 

Same Store NOI

 

$

20,166

 

 

Reconciliation of Debt to Net Debt

(dollar amounts in thousands)

 

Q3 2020

 

 

Q3 2019

 

Total mortgage debt

 

$

1,121,805

 

 

$

1,060,948

 

Credit facilities

 

 

215,000

 

 

 

107,000

 

Total debt outstanding

 

 

1,336,805

 

 

 

1,167,948

 

 

 

 

 

 

 

 

 

 

Adjustments to arrive at net debt:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

(70,282

)

 

 

(20,373

)

Restricted cash held for value-add upgrades and green improvements

 

 

(11,918

)

 

 

(16,535

)

Net Debt

 

$

1,254,605

 

 

$

1,131,040

 

Enterprise Value (1)

 

$

2,342,605

 

 

$

2,291,040

 

Leverage Ratio

 

 

54

%

 

 

49

%

(1)

Enterprise Value is calculated as Market Capitalization plus Net Debt.

 

www.NexPointLiving.com

Page 27

 

 

 

 


NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

 

 

 

Reconciliation of 2020 Adjusted NOI Estimate

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our adjusted NOI estimate to estimated net income (loss) (the most directly comparable GAAP financial measure) for the periods presented below (in thousands):

 

 

For the Year Ended

December 31, 2020

 

 

 

Estimate (1)

 

Net income

 

$

32,753

 

Adjustments to reconcile net income to NOI:

 

 

 

 

Advisory and administrative fees

 

 

7,609

 

Corporate general and administrative expenses

 

 

11,941

 

Property general and administrative expenses

 

 

1,563

 

Depreciation and amortization

 

 

86,766

 

Total Loss on Debt Extinguishment

 

 

1,476

 

Interest expense

 

 

44,231

 

Casualty-related expenses/(recoveries)

 

 

(483

)

Casualty losses

 

 

1,028

 

Miscellaneous income

 

 

(1,079

)

Gain on sales of real estate

 

 

(69,655

)

NOI

 

$

116,150

 

(1)

Based on Green Street Advisors’ “Residential Sectors” Report dated April 19, 2020. FY 2020 Adjusted NOI estimate does not consider any additional acquisition or disposition activity for the remainder of the year.

 

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Page 28

 

 

 

 

v3.20.2
Document and Entity Information
Oct. 27, 2020
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 27, 2020
Entity Registrant Name NEXPOINT RESIDENTIAL TRUST, INC.
Entity Central Index Key 0001620393
Entity Emerging Growth Company false
Entity File Number 001-36663
Entity Incorporation, State or Country Code MD
Entity Tax Identification Number 47-1881359
Entity Address, Address Line One 300 Crescent Court
Entity Address, Address Line Two Suite 700
Entity Address, City or Town Dallas
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75201
City Area Code 972
Local Phone Number 628-4100
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, par value $0.01 per share
Trading Symbol NXRT
Security Exchange Name NYSE