NexPoint Residential Trust (NYSE:NXRT) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

NexPoint Residential Trust (NYSE:NXRT) released its earnings results on Tuesday. The financial services provider reported ($0.45) earnings per share for the quarter, missing the consensus estimate of ($0.41) by ($0.04), FiscalAI reports. NexPoint Residential Trust had a negative return on equity of 11.75% and a negative net margin of 13.22%. The business had revenue of $64.47 million for the quarter, compared to analysts’ expectations of $64.72 million.

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 Trading Up 6.5%

NXRT traded up $1.06 during trading on Wednesday, hitting $17.54. 630,900 shares of the company’s stock were exchanged, compared to its average volume of 337,490. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 6.41. NexPoint Residential Trust has a 1 year low of $16.23 and a 1 year high of $32.36. The stock has a 50 day moving average price of $20.49 and a 200 day moving average price of $25.80. The firm has a market cap of $448.22 million, a P/E ratio of -13.19, a price-to-earnings-growth ratio of 0.31 and a beta of 1.15.

NexPoint Residential Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 12.1%. The ex-dividend date of this dividend is Tuesday, December 15th. NexPoint Residential Trust’s payout ratio is -159.40%.

More NexPoint Residential Trust News

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 demand for the stock, though the authorization does not guarantee purchases. 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. Core FFO and AFFO also declined year over year; revenue of $64.47 million slightly missed estimates, and the net loss widened to $11.5 million. Article: NexPoint Residential misses Q3 FFO and revenue estimates
• Negative Sentiment: Management forecast 2026 Core FFO of $2.17–$2.27 per share, reflecting a reduced outlook. A Seeking Alpha analysis also warned the roughly 12.5% dividend yield may be unsustainable and said a cut could be imminent. Article: NexPoint Residential yield and outlook analysis
• Negative Sentiment: Sunbelt apartment oversupply, weak occupancy and higher financing costs as interest-rate hedges roll off are adding pressure to results and the dividend outlook. Article: NexPoint Residential cuts 2026 Core FFO outlook

Insider Activity

In other NexPoint Residential Trust news, insider Matt Mcgraner bought 5,500 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were acquired at an average price of $18.42 per share, with a total value of $101,310.00. Following the purchase, the insider owned 361,605 shares in the company, valued at approximately $6,660,764.10. The trade was a 1.54% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 16.63% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

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

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.