NexPoint Residential Trust (NYSE:NXRT) Releases Earnings Results, Beats Expectations By $0.93 EPS

NexPoint Residential Trust (NYSE:NXRT) issued its earnings results on Tuesday. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.93, reports. The business had revenue of $64.47 million for the quarter, compared to analyst estimates of $64.72 million. NexPoint Residential Trust had a negative net margin of 13.22% and a negative return on equity of 11.75%.

Here are the key takeaways from NexPoint Residential Trust’s conference call:

• Third-quarter results missed expectations: Core FFO was $0.52 per share, $0.07 below consensus, while same-store NOI declined 8.2% as occupancy fell to 92.9% and expenses rose 11.2%.
• Management cut full-year Core FFO guidance to a midpoint of $2.22 per share from $2.45 and lowered same-store NOI guidance to a midpoint decline of 4.3%. Fourth-quarter Core FFO is expected to be about $0.35 per share, below the $0.53 dividend, raising the possibility of a dividend reset in early 2027.
• Higher interest rates are increasing financial pressure: the adjusted weighted-average interest rate rose to 4.75%, net NAV leverage increased to 62% from 57%, and management acknowledged that leverage is too high for the current rate environment.
• Operating trends remain mixed, with October lease occupancy at 94.6%, improved retention and better tour-to-application conversion, but elevated concessions and weak new-lease pricing. Management expects occupancy to improve as supply growth slows, with deliveries in its submarkets down 42% from the 2024 peak and 2028 deliveries projected to be the lowest of the cycle.
• NXRT acquired the 228-unit Midtown Crossing community in Raleigh for $32 million and plans to pair it with dispositions, use proceeds to reduce debt, and potentially repurchase up to $150 million of stock. Management believes the shares trade substantially below estimated NAV of $38.33 per share, versus a market price near $18.

NexPoint Residential Trust Stock Down 8.9%

Shares of NexPoint Residential Trust stock opened at $16.43 on Wednesday. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 6.41. The business’s 50 day simple moving average is $20.49 and its 200-day simple moving average is $25.80. The stock has a market capitalization of $419.91 million, a price-to-earnings ratio of 6.24, a PEG ratio of 0.31 and a beta of 1.15. NexPoint Residential Trust has a twelve month low of $16.23 and a twelve month high of $32.36.

NexPoint Residential Trust Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $2.12 annualized dividend and a dividend yield of 12.9%. NexPoint Residential Trust’s dividend payout ratio is -159.40%.

Analysts Set New Price Targets

Several brokerages recently weighed in on NXRT. Truist Financial lowered their price objective on NexPoint Residential Trust from $26.00 to $18.00 and set a “hold” rating for the company in a report on Tuesday, September 29th. Deutsche Bank Aktiengesellschaft set a $23.00 target price on NexPoint Residential Trust in a report on Wednesday, September 9th. Citizens Jmp reiterated a “market perform” rating on shares of NexPoint Residential Trust in a research report on Thursday, August 20th. Zacks Research downgraded NexPoint Residential Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 13th. Finally, Weiss Ratings upgraded NexPoint Residential Trust from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, October 27th. Three analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $20.50.

Insider Activity

In related news, insider Matt Mcgraner acquired 5,500 shares of NexPoint Residential Trust stock in a transaction that occurred on Monday, October 5th. The stock was acquired at an average price of $18.42 per share, for a total transaction of $101,310.00. Following the transaction, the insider directly owned 361,605 shares of the company’s stock, valued at $6,660,764.10. This trade represents a 1.54% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 16.63% of the company’s stock.

NexPoint Residential Trust News Summary

Here are the key news stories impacting NexPoint Residential Trust this week:

• Positive Sentiment: NXRT authorized up to $150 million in share repurchases, which could support shareholder returns if the company buys shares at current levels. Article: NexPoint Residential forecasts 2026 core FFO and authorizes buybacks
• Neutral Sentiment: The board is weighing a possible dividend reset. That could help preserve capital, but uncertainty over the payout may concern income-focused investors. Article: NexPoint Residential forecasts 2026 core FFO and weighs dividend reset
• Negative Sentiment: NXRT forecast 2026 Core FFO of $2.17–$2.27 per share and reset full-year same-store NOI guidance. The lower outlook suggests weaker expected property-level performance. Article: NexPoint Residential forecasts 2026 core FFO and authorizes buybacks
• Negative Sentiment: Third-quarter FFO was $0.52 per share, below the $0.54 consensus and down from $0.80 a year earlier. Revenue of $64.47 million also slightly missed estimates, while net loss widened to $11.5 million from $7.8 million a year ago. These results reinforce concerns about slowing performance. Article: NexPoint Residential Trust misses Q3 FFO and revenue estimates

NexPoint Residential Trust Company Profile

NexPoint Residential Trust, Inc (NYSE: NXRT) is a publicly traded real estate investment trust focused on acquiring, owning, operating and selectively renovating multifamily apartment communities. The company generally targets value-add properties, seeking to improve their operating performance and resident appeal through renovations, property management initiatives and other capital improvements.

NexPoint Residential Trust’s portfolio is concentrated primarily in the Southeastern and Southwestern United States.