NexPoint Residential Trust, Inc. Q1 FY2026 earnings call

• Macro backdrop: Multifamily deliveries at lowest in 12 years, supply-demand fundamentals favorable. - Operating performance: Leasing cadence improving, occupancy increasing, concessions at 1.9% of GPR vs 5.7% comps. - Technology platform: Two-layer architecture with property operations and intelligence layers, AI-powered leasing platform driving results. - Sedona at Lone Mountain: Occupancy improving, rental and expense income beating budget. - Transaction market: Institutional multifamily sales volume and DST market growth, potential for fee and interest income from DST platform.

Net loss for Q1 2026 was $6.8 million, or $0.27 per diluted share, on total revenue of $63.5 million. Total NOI was $37.6 million across 36 properties. Same-store total income was $61.4 million, down 2.2% year-over-year. Same-store operating expenses declined 1.6% to $24.8 million, resulting in same-store NOI of $36.7 million, a 2.7% decrease, and an NOI margin of 59.8%. Same-store occupancy closed at 93.6%. Core FFO of $17.3 million, or 68 cents per diluted share, was reported. Interest expense increased due to swap positions falling off. Value-add updates: 252 full and partial upgrades in Q1, over 10,100 upgrades since inception with average monthly premiums and ROIs. Dividend of $0.53 per share declared. NAV per share estimated at $47.70 at midpoint with a 44.7% discount to stock price.

• Reaffirmed full year 2026 core FFO guidance range of $2.42 - $2.71 per diluted share and same store NOI range of negative 0.5% at midpoint. - Interest expense now projected at $69.3 million vs original $67.1 million. - Concession utilization expected to decline from Q1 levels with tailwind from supply deceleration and seasonal demand. - Potential for DST platform to add 10-20 cents of core FFO over next 12 months under favorable conditions.

Q: Michael Lewis with Truist Securities asked about narrowing the occupied and leased percentage gap, resident retention upside, occupancy surprise, and interest expense offset from fee income.

A: Discussed opportunities to drive renewals and retention, occupancy improving with operating platform, and fee income from DST platform.

Q: Buckhorn with Raymond James asked about real estate taxes and repairs and maintenance expenses.

A: Talked about stable tax outlook in 3-4% range and R&M stabilizing with some one-time factors