NexPoint Residential Trust, Inc. Q4 FY2025 earnings call

Paul Richards covered Q4 and full year results, NAV calculation, and 2026 guidance. Matthew Ryan McGraner discussed same store operational results, including effective rents, occupancy, renewal conversions, bad debt, concession utilization, and expense management. Mentioned acquisition of Sedona at Lone Mountain in Las Vegas. Outlined 2026 guidance assumptions for rental income, total revenue, expenses, same store NOI, earnings per diluted share, and Core FFO. Highlighted Sun Belt market outlook, including job growth, net migration, and demographic trends.

For Q4 2025, net loss was $10,300,000 or $0.41 per diluted share on total revenue of $62,100,000. NOI was $37,100,000, a 4.7% decrease from 2024. Same store rental income decreased 2.8%, occupancy was 92.7%, and same store NOI decreased 4.8%. Core FFO was $16,500,000 or $0.65 per diluted share. For full year 2025, net loss was $32,000,000 or $1.26 per diluted share. NOI was $151,700,000, a 3.4% decrease. Same store rental income decreased 1.3%, occupancy was 92.7%, and same store NOI decreased 1.6%. Core FFO was $71,300,000 or $2.79 per diluted share. NAV per share range was $41.43 to $55.72. Dividend was $0.53 per share in Q4. Repurchased 223,109 shares in 2025. Completed 380 renovations in Q4, leased 275 renovated units with $74 average monthly rent premium and 22.2% ROI.

2026 guidance: Rental income low end 0%, midpoint 0.9%, high end 1.9%; total revenue low end 0.1%, midpoint 1.1%, high end 2%; total expenses low end 4.2%, midpoint 3.5%, high end 2.8%; same store NOI low end negative 2.5%, midpoint negative 0.5%, high end 1.5%; earnings per diluted share low end negative $1.54, midpoint negative $1.40, high end negative $1.26; Core FFO per diluted share low end $2.42, midpoint $2.57, high end $2.71. Assumptions include rental income growth, occupancy, bad debt, concession utilization, expense growth, and value-add programs.

Q: About refurbishment and remodeling in 2026.

A: Plan to do 300 full upgrades, 400 partials, and 680 washer/dryer installs, totaling about 1,700 units with potential for more.

Q: Regarding interest rate swap in 2026.

A: Constantly rechecking swap markets as Fed dot plot is divided, holding tight on adding swaps but subject to change.

Q: Updates on January and February trends.

A: January new leases down 7%, renewals 1.6%, blended minus; February new leases down 5.7%, renewals positive 1.7%, blended negative.

Q: CapEx and its drivers.

A: Maintenance CapEx affected by bulk Wi-Fi, capitalized rehab stable, price easing considered, volume of renovation output dependent on pricing power.

Q: Dividend coverage and policy.

A: Dividend covered by cash flow, target ratio 65%-75% of Core FFO.

Q: Occupancy lower than expected.

A: Somewhat intentional, concession utilization increased but abating, first quarter guidance at 93%.

Q: Senior renter population trend.

A: Seeing trend, actively looking to resource portfolio for health and wellness, catering to aging population.

Q: Buybacks in 2026.

A: Still considering buybacks, will do if stock price and opportunities are right.