NXRT Boosts Quarterly Dividend by 10.1%;
Returns 6.14x Multiple on Invested Capital on $70 million DFW Asset and Makes $16.0 Million Paydown on Credit Facility
DALLAS, Oct. 31,
2023 /PRNewswire/ -- NexPoint Residential Trust, Inc.
(NYSE:NXRT) reported financial results for the third quarter ended
September 30, 2023.
Highlights
- NXRT1 reported Net Income, FFO2, Core
FFO2 and AFFO2 of $33.7M, $14.5M,
$17.1M and $20.0M, respectively, attributable to common
stockholders for the quarter ended September
30, 2023, compared to Net Loss, FFO, Core FFO, and AFFO of
$(0.6)M, $24.5M, $21.9M and
$24.3M, respectively, attributable to
common stockholders for the quarter ended September 30, 2022.
- NXRT reported Net Income, FFO, Core FFO and AFFO of
$25.9M, $53.7M, $56.1M and
$64.3M, respectively, attributable to
common stockholders for the nine months ended September 30, 2023, compared to Net Loss, FFO,
Core FFO, and AFFO of $(13.0)M,
$61.2M, $62.3M and $69.4M,
respectively, attributable to common stockholders for the nine
months ended September 30, 2022.
- For the three months ended September 30,
2023, Q3 Same Store properties3 average effective
rent, total revenue and NOI2 increased 3.1%, 4.6% and
8.0%, respectively, and occupancy decreased 10 bps over
the prior year period.
- For the nine months ended September 30,
2023, YTD Same Store properties3 average
effective rent, total revenue and NOI2 increased 3.0%,
8.1% and 9.5%, respectively, and occupancy decreased 10 bps over
the prior year period.
- During the third quarter 2023, the Company completed the sale
of Silverbrook for a sales price of $70.0
million, resulting in a gain on sale of real estate of
$43.1 million. Additionally, Timber
Creek was put under contract for $49
million during the quarter with nonrefundable earnest money
and is expected to close by year end.
- During the third quarter 2023, the Company paid down
$16.0 million on its Corporate Credit
Facility. As of September 30, 2023,
the Company had $41.0 million in
principal outstanding on its Corporate Credit Facility.
- NXRT paid a third quarter dividend of $0.42 per share of common stock on September 29, 2023.
- On October 30, 2023, the
Company's board approved a quarterly dividend of $0.46242 per share, a 10.1% increase from the
previous dividend per share. Since inception, NXRT has increased
the dividend per share by 124.5%.
- The weighted average effective monthly rent per unit across all
39 properties held as of September 30,
2023 (the "Portfolio"), consisting of 14,4854
units, was $1,507, while physical
occupancy was 94.0%.
- During the third quarter 2023, for the properties in our
Portfolio, we completed 420 full and partial upgrades and leased
330 upgraded units, achieving an average monthly rent premium of
$215 and a 23.6%
ROI5.
- Since inception, for the properties currently in our Portfolio,
we have completed 8,671 full and partial upgrades, 4,812 kitchen
and laundry appliances, and 12,285 technology packages, resulting
in a $168, $49, and $44
average monthly rental increase per unit and a 21.0%, 65.3%, and
37.8% ROI, respectively.
- In this release, "we," "us," "our," the "Company," "NexPoint
Residential Trust," and "NXRT" each refer to NexPoint Residential
Trust, Inc., a Maryland
corporation.
- 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 loss, see the
"Definitions and Reconciliations of Non-GAAP Measures," "FFO, Core
FFO and AFFO" and "NOI and Same Store NOI" sections of this
release.
- We define "Same Store" properties as properties that were in
our Portfolio for the entirety of the periods being compared. There
are 35 properties encompassing 12,917 units of apartment space in
our Same Store pool for the three months ended September 30, 2023 (our "Q3 Same Store"
properties) and 33 properties encompassing 12,355 units of
apartment space in our Same Store pool for the nine months ended
September 30, 2023 (our "YTD Same
Store" properties). The same store unit count excludes 67 units
that are currently down due to casualty events (Rockledge: 20 units, Arbors of Brentwood: 16 units, Six Forks: 8 units, Bella
Solara: 8 units, Versailles II: 7 units, Versailles: 6 units, and Parc500: 2
units).
- Total units owned in our Portfolio is 14,485, however 67 units
are currently down due to casualty events (Rockledge: 20 units, Arbors of Brentwood: 16 units, Six Forks: 8 units, Bella
Solara: 8 units, Versailles II: 7 units, Versailles: 6 units, and Parc500: 2
units).
- We define Return on Investment ("ROI") as the sum of the actual
rent premium divided by the sum of the total cost.
Third Quarter 2023 Financial Results
- Total revenues were $69.8 million
for the third quarter of 2023, compared to $68.1 million for the third quarter of 2022.
- Net income for the third quarter of 2023 totaled $33.7 million, or income of $1.28 per diluted share, which included
$23.8 million of depreciation and
amortization expense. This compared to a net loss of $(0.6) million, or loss of $(0.02) per diluted share, for the third quarter
of 2022, which included $25.2 million
of depreciation and amortization expense.
- The change in our net income of $33.9
million for the three months ended September 30, 2023 as compared to our net loss of
$(0.6) million for the three months
ended September 30, 2022 primarily
relates to an increase in total revenues and gain on sale of
$43.1 million, partially offset by an
increase in interest expense.
- For the third quarter of 2023, NOI was $42.1 million on 39 properties, compared to
$40.0 million for the third quarter
of 2022 on 41 properties.
- For the third quarter of 2023, Q3 Same Store NOI increased 8.0%
to $38.4 million, compared to
$35.6 million for the third quarter
of 2022.
- For the third quarter of 2023, FFO totaled $14.5 million, or $0.55 per diluted share, compared to $24.5 million, or $0.94 per diluted share, for the third quarter of
2022.
- For the third quarter of 2023, Core FFO totaled $17.1 million, or $0.65 per diluted share, compared to $21.9 million, or $0.84 per diluted share, for the third quarter of
2022.
- For the third quarter of 2023, AFFO totaled $20.0 million, or $0.76 per diluted share, compared to $24.3 million, or $0.93 per diluted share, for the third quarter of
2022.
2023 Year to Date Financial Results
- Total revenues were $208.6
million for the nine months ended September 30, 2023, compared to $194.6 million for the nine months ended
September 30, 2022.
- Net income for the nine months ended September 30, 2023 totaled $25.9 million, or income of $0.99 per diluted share, which included
$70.9 million of depreciation and
amortization expense. This compared to net loss of $(13.0) million, or loss of $(0.51) per diluted share, for the nine months
ended September 30, 2022, which
included $74.5 million of
depreciation and amortization expense.
- The change in our net income of $26.0
million for the nine months ended September 30, 2023 as compared to our net loss of
$(13.1) million for the nine months
ended September 30, 2022 primarily
relates to an increase in total revenues and gain on sale of
$43.1 million, partially offset by an
increase in interest expense.
- For the nine months ended September 30,
2023, NOI was $125.2 million
on 39 properties, compared to $115.7
million for the nine months ended September 30, 2022 on 41 properties.
- For the nine months ended September 30,
2023, Same Store NOI increased 9.5% to $107.9 million, compared to $98.5 million for the nine months ended
September 30, 2022.
- For the nine months ended September 30,
2023, FFO totaled $53.7
million, or $2.05 per diluted
share, compared to $61.2 million, or
$2.34 per diluted share, for the nine
months ended September 30, 2022.
- For the nine months ended September 30,
2023, Core FFO totaled $56.1
million, or $2.14 per diluted
share, compared to $62.3 million, or
$2.38 per diluted share, for the nine
months ended September 30, 2022.
- For the nine months ended September 30,
2023, AFFO totaled $64.3
million, or $2.45 per diluted
share, compared to $69.4 million, or
$2.65 per diluted share, for the nine
months ended September 30, 2022.
Third Quarter Earnings Conference Call
NXRT will host a conference call on Tuesday, October 31, 2023, 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
888-660-4430 or, for international callers, +1 646-960-0537 and
using passcode Conference ID: 5001576. A live audio webcast of the
call will be available online at the Company's website,
https://nxrt.nexpoint.com (under "Resources"). 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 14, 2023, by
dialing 800-770-2030 or, for international callers, +1 647-362-9199
and entering passcode 5001576.
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, nxrt.nexpoint.com, under the "Financials" 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,"
"plan" 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 guidance for financial results for the full year
2023, including earnings per diluted share, Core FFO per diluted
share, same store rental income, same store total revenue, same
store total expenses and same store NOI, interest expense, and the
related components and assumptions, including expected acquisitions
and dispositions, expected same store pool, shares outstanding and
same store growth projections, NXRT's net asset value and the
related components and assumptions, including estimated value-add
expenditures, debt payments, outstanding debt and shares
outstanding, net income and NOI guidance for the full year 2023 and
the related assumptions, planned value-add programs, including
projected rent change and return on investment, expected settlement
of interest rate swaps and the effect on the debt maturity
schedule, rehab budgets, expected acquisitions and dispositions and
related timing, NAV NOI for the full
year 2023 and estimated 2023 and 2024 net interest rate/expense and
the related assumptions, forecasted submarket deliveries and the
expected closing of the Timber Creek disposition. They are not
guarantees of future results and are subject to risks,
uncertainties and assumptions that could cause actual results to
differ materially from those expressed in any forward-looking
statement, including those described in greater detail in our
filings with the Securities and Exchange Commission, particularly
those described in our Annual Report on Form 10-K. 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 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.
FFO, Core FFO and AFFO
The following table reconciles our calculations of FFO, Core FFO
and AFFO to net income (loss), the most directly comparable GAAP
financial measure, for the three and nine months ended September 30, 2023 and 2022 (in thousands, except
per share amounts):
|
|
For the Three Months
Ended
September 30,
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
% Change
(1)
|
|
|
Net income
(loss)
|
|
$
|
33,878
|
|
|
$
|
(599)
|
|
|
$
|
26,012
|
|
|
$
|
(13,093)
|
|
|
N/M
|
|
|
Depreciation and
amortization
|
|
|
23,797
|
|
|
|
25,224
|
|
|
|
70,935
|
|
|
|
74,490
|
|
|
|
-4.8
|
%
|
|
Gain on sales of real
estate
|
|
|
(43,090)
|
|
|
|
—
|
|
|
|
(43,090)
|
|
|
|
—
|
|
|
|
0.0
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(55)
|
|
|
|
(99)
|
|
|
|
(205)
|
|
|
|
(228)
|
|
|
|
-10.1
|
%
|
|
FFO attributable to
common stockholders
|
|
|
14,530
|
|
|
|
24,526
|
|
|
|
53,652
|
|
|
|
61,169
|
|
|
|
-12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$
|
0.57
|
|
|
$
|
0.96
|
|
|
$
|
2.09
|
|
|
$
|
2.39
|
|
|
|
-12.6
|
%
|
|
FFO per share -
diluted
|
|
$
|
0.55
|
|
|
$
|
0.94
|
|
|
$
|
2.05
|
|
|
$
|
2.34
|
|
|
|
-12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
2,215
|
|
|
|
—
|
|
|
|
2,093
|
|
|
|
—
|
|
|
|
0.0
|
%
|
|
Casualty-related
expenses/(recoveries)
|
|
|
(24)
|
|
|
|
(2,966)
|
|
|
|
(1,332)
|
|
|
|
672
|
|
|
N/M
|
|
|
Casualty losses
(gains)
|
|
|
100
|
|
|
|
—
|
|
|
|
980
|
|
|
|
(357)
|
|
|
N/M
|
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
|
|
—
|
|
|
|
(250)
|
|
|
|
—
|
|
|
|
0.0
|
%
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
330
|
|
|
|
281
|
|
|
|
991
|
|
|
|
786
|
|
|
|
26.1
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(9)
|
|
|
|
11
|
|
|
|
(11)
|
|
|
|
(3)
|
|
|
N/M
|
|
|
Core FFO
attributable to common stockholders
|
|
|
17,142
|
|
|
|
21,852
|
|
|
|
56,123
|
|
|
|
62,267
|
|
|
|
-9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share -
basic
|
|
$
|
0.67
|
|
|
$
|
0.85
|
|
|
$
|
2.19
|
|
|
$
|
2.43
|
|
|
|
-9.9
|
%
|
|
Core FFO per share -
diluted
|
|
$
|
0.65
|
|
|
$
|
0.84
|
|
|
$
|
2.14
|
|
|
$
|
2.38
|
|
|
|
-10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
408
|
|
|
|
453
|
|
|
|
1,222
|
|
|
|
1,247
|
|
|
|
-2.0
|
%
|
|
Equity-based
compensation expense
|
|
|
2,494
|
|
|
|
2,025
|
|
|
|
6,955
|
|
|
|
5,906
|
|
|
|
17.8
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(11)
|
|
|
|
(10)
|
|
|
|
(31)
|
|
|
|
(27)
|
|
|
|
14.8
|
%
|
|
AFFO attributable to
common stockholders
|
|
|
20,033
|
|
|
|
24,320
|
|
|
|
64,269
|
|
|
|
69,393
|
|
|
|
-7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share -
basic
|
|
$
|
0.78
|
|
|
$
|
0.95
|
|
|
$
|
2.51
|
|
|
$
|
2.71
|
|
|
|
-7.4
|
%
|
|
AFFO per share -
diluted
|
|
$
|
0.76
|
|
|
$
|
0.93
|
|
|
$
|
2.45
|
|
|
$
|
2.65
|
|
|
|
-7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
25,674
|
|
|
|
25,598
|
|
|
|
25,647
|
|
|
|
25,630
|
|
|
|
0.1
|
%
|
|
Weighted average
common shares outstanding - diluted
|
(2)
|
|
26,302
|
|
|
|
26,127
|
|
|
|
26,228
|
|
|
|
26,177
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.42
|
|
|
$
|
0.38
|
|
|
$
|
1.26
|
|
|
$
|
1.14
|
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
Coverage - diluted
|
(3)
|
3.05x
|
|
|
-0.05x
|
|
|
0.79x
|
|
|
-0.45x
|
|
|
|
275.6
|
%
|
|
FFO Coverage -
diluted
|
(3)
|
1.32x
|
|
|
2.47x
|
|
|
1.63x
|
|
|
2.05x
|
|
|
|
-20.7
|
%
|
|
Core FFO Coverage -
diluted
|
(3)
|
1.55x
|
|
|
2.20x
|
|
|
1.70x
|
|
|
2.09x
|
|
|
|
-18.6
|
%
|
|
AFFO Coverage -
diluted
|
(3)
|
1.81x
|
|
|
2.45x
|
|
|
1.94x
|
|
|
2.32x
|
|
|
|
-16.4
|
%
|
|
|
|
(1)
|
Represents the
percentage change for the nine months ended September 30, 2023
compared to the nine months ended September 30, 2022.
|
(2)
|
The Company uses actual
diluted weighted average common shares outstanding when in a
dilutive position for FFO, Core FFO and AFFO.
|
(3)
|
Indicates coverage
ratio of Net Income (Loss)/FFO/Core FFO/AFFO per common share
(diluted) over dividends declared per common share during the
period.
|
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) interest expense (2) advisory and
administrative fees, (3) the impact of depreciation and
amortization expenses, (4) corporate general and administrative
expenses, (5) other gains and losses that are specific to us
including gain (loss) on extinguishment of debt and modification
costs, (6) casualty-related expenses/(recoveries) and casualty
gains (losses), (7) gain on forfeited deposits, (8) equity in
earnings from affiliate, (9) 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, centralized
leasing service and franchise tax fees and (10) gain on sales of
real estate. 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, if applicable, 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
amount 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 gain on
extinguishment of debt and modification costs, casualty-related
expenses/and recoveries and gains (losses), gain on forfeited
deposits, the amortization of deferred financing costs incurred in
connection with obtaining short-term debt financing and the
noncontrolling interests (as described above) 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.
Reconciliations
NOI and Same Store NOI
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, 2023 and 2022 to net income
(loss), the most directly comparable GAAP financial measure (in
thousands):
|
|
For the Three Months
Ended
September 30,
|
|
|
For the Nine Months
Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net income
(loss)
|
|
$
|
33,878
|
|
|
$
|
(599)
|
|
|
$
|
26,012
|
|
|
$
|
(13,093)
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,966
|
|
|
|
1,904
|
|
|
|
5,782
|
|
|
|
5,615
|
|
Corporate general and
administrative expenses
|
|
|
4,752
|
|
|
|
3,818
|
|
|
|
12,743
|
|
|
|
11,116
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
(24)
|
|
|
|
(2,966)
|
|
|
|
(1,332)
|
|
|
|
672
|
|
Casualty loss
(gain)
|
|
|
100
|
|
|
|
—
|
|
|
|
980
|
|
|
|
(357)
|
|
Gain on forfeited
deposits
|
|
|
—
|
|
|
|
—
|
|
|
|
(250)
|
|
|
|
—
|
|
Property general and
administrative expenses
|
(2)
|
|
1,139
|
|
|
|
867
|
|
|
|
2,696
|
|
|
|
2,410
|
|
Depreciation and
amortization
|
|
|
23,797
|
|
|
|
25,224
|
|
|
|
70,935
|
|
|
|
74,490
|
|
Interest
expense
|
|
|
17,587
|
|
|
|
11,766
|
|
|
|
48,850
|
|
|
|
34,804
|
|
Equity in earnings of
affiliate
|
|
|
(177)
|
|
|
|
—
|
|
|
|
(177)
|
|
|
|
—
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
2,215
|
|
|
|
—
|
|
|
|
2,093
|
|
|
|
—
|
|
Gain on sales of real
estate
|
|
|
(43,090)
|
|
|
|
—
|
|
|
|
(43,090)
|
|
|
|
—
|
|
NOI
|
|
$
|
42,143
|
|
|
$
|
40,014
|
|
|
$
|
125,242
|
|
|
$
|
115,657
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
(7,920)
|
|
|
|
(9,025)
|
|
|
|
(32,626)
|
|
|
|
(31,913)
|
|
Operating
expenses
|
|
|
4,230
|
|
|
|
4,705
|
|
|
|
15,401
|
|
|
|
15,084
|
|
Operating
income
|
|
|
(5)
|
|
|
|
(110)
|
|
|
|
(129)
|
|
|
|
(327)
|
|
Same Store
NOI
|
|
$
|
38,448
|
|
|
$
|
35,584
|
|
|
$
|
107,888
|
|
|
$
|
98,501
|
|
|
|
(1)
|
Adjustment to net
income (loss) to exclude certain property operating expenses that
are casualty-related expenses/(recoveries).
|
(2)
|
Adjustment to net
income (loss) 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, centralized
leasing service and franchise tax fees.
|
Reconciliation of Debt to Net Debt
(dollar amounts in
thousands)
|
|
Q3
2023
|
|
|
Q3
2022
|
|
Total mortgage
debt
|
|
$
|
1,575,406
|
|
|
$
|
1,358,343
|
|
Credit
facilities
|
|
|
41,000
|
|
|
|
335,000
|
|
Total debt
outstanding
|
|
|
1,616,406
|
|
|
|
1,693,343
|
|
|
|
|
|
|
|
|
|
|
Adjustments to arrive
at net debt:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
(7,531)
|
|
|
|
(15,771)
|
|
Restricted cash held
for value-add upgrades and green improvements
|
|
|
(2,737)
|
|
|
|
(15,347)
|
|
Net Debt
|
|
$
|
1,606,138
|
|
|
$
|
1,662,225
|
|
Enterprise Value
(1)
|
|
$
|
2,432,138
|
|
|
$
|
2,843,225
|
|
Leverage
Ratio
|
|
|
66
|
%
|
|
|
58
|
%
|
|
|
(1)
|
Enterprise Value is
calculated as Market Capitalization plus Net Debt.
|
Guidance Reconciliations of NOI, Same Store NOI, FFO,
Core FFO and AFFO
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles NOI to net income (the most
directly comparable GAAP financial measure) for the periods
presented below (in thousands):
|
|
For the Year
Ended
December 31,
2023
|
|
|
|
Mid-Point
(1)
|
|
Net income
|
|
$
|
98,872
|
|
Adjustments to
reconcile net income to NOI:
|
|
|
|
|
Advisory and
administrative fees
|
|
|
7,707
|
|
Corporate general and
administrative expenses
|
|
|
17,123
|
|
Property general and
administrative expenses
|
(2)
|
|
2,043
|
|
Depreciation and
amortization
|
|
|
96,547
|
|
Interest
expense
|
|
|
65,485
|
|
Casualty-related
recoveries
|
|
|
980
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
3,889
|
|
Gain on forfeited
deposits
|
|
|
(250)
|
|
Equity in earnings of
affiliate
|
|
|
(238)
|
|
Gain on sales of real
estate
|
|
|
(124,034)
|
|
NOI
|
|
$
|
168,124
|
|
Less Non-Same
Store
|
|
|
|
|
Revenues
|
(3)
|
|
(41,925)
|
|
Operating
expenses
|
(3)
|
|
19,449
|
|
Same Store
NOI
|
(3)
|
$
|
145,648
|
|
|
|
(1)
|
Mid-Point estimates
shown for full year 2023 guidance. Assumptions made for full year
2023 NOI guidance include the Same Store operating growth
projections included in the "2023 Full Year Guidance Summary"
section of this release and the effect of the dispositions
throughout the fiscal year.
|
(2)
|
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, centralized leasing service
and franchise tax fees.
|
(3)
|
Amounts are derived
from the results of operations of our Full Year 2023 Same Store
properties and Non-Same Store properties. There are 33 properties
in our Full Year 2023 Same Store pool.
|
The following table reconciles our FFO, Core FFO and AFFO
guidance to our net income (the most directly comparable GAAP
financial measure) guidance for the year ended December 31, 2023 (in thousands, except per share
data):
|
|
For the Year
Ended
December 31,
2023
|
|
|
|
Mid-Point
|
|
Net income
|
|
$
|
98,872
|
|
Depreciation and
amortization
|
|
|
96,547
|
|
Gain on sales of real
estate
|
|
|
(124,034)
|
|
Adjustment for
noncontrolling interests
|
|
|
(256)
|
|
FFO attributable to
common stockholders
|
|
|
71,129
|
|
FFO per share -
diluted (1)
|
|
$
|
2.71
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
3,889
|
|
Casualty-related
recoveries
|
|
|
(352)
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
1,138
|
|
Gain on forfeited
deposits
|
|
|
(250)
|
|
Adjustment for
noncontrolling interests
|
|
|
(15)
|
|
Core FFO
attributable to common stockholders
|
|
|
75,539
|
|
Core FFO per share -
diluted (1)
|
|
$
|
2.88
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
1,669
|
|
Equity-based
compensation expense
|
|
|
9,446
|
|
Adjustment for
noncontrolling interests
|
|
|
(40)
|
|
AFFO attributable to
common stockholders
|
|
|
86,614
|
|
AFFO per share -
diluted (1)
|
|
$
|
3.30
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
26,247
|
|
|
|
(1)
|
For purposes of
calculating per share data, we assume a weighted average diluted
share count of approximately 26.2 million for the full year
2023.
|
NOI
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles NOI for the three months
ended June 30, 2023 and the year
ended December 31, 2022 to net loss,
the most directly comparable GAAP financial measure (in
thousands):
|
|
For the Three
Months
Ended June 30, 2023
|
|
|
For the Year
Ended
December 31, 2022
|
|
Net loss
|
|
$
|
(3,968)
|
|
|
$
|
(9,291)
|
|
Adjustments to
reconcile net loss to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,927
|
|
|
|
7,547
|
|
Corporate general and
administrative expenses
|
|
|
4,624
|
|
|
|
14,670
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
398
|
|
|
|
1,119
|
|
Casualty loss
(gain)
|
|
|
66
|
|
|
|
(2,506)
|
|
Gain on forfeited
deposits
|
|
|
(250)
|
|
|
|
—
|
|
Property general and
administrative expenses
|
(2)
|
|
776
|
|
|
|
3,600
|
|
Depreciation and
amortization
|
|
|
23,872
|
|
|
|
97,648
|
|
Interest
expense
|
|
|
14,524
|
|
|
|
50,587
|
|
Loss (gain) on
extinguishment of debt and modification costs
|
|
|
—
|
|
|
|
8,734
|
|
Gain on sales of real
estate
|
|
|
—
|
|
|
|
(14,684)
|
|
NOI
|
|
$
|
41,969
|
|
|
$
|
157,424
|
|
|
|
(1)
|
Adjustment to net loss
to exclude certain property operating expenses that are
casualty-related expenses/(recoveries).
|
(2)
|
Adjustment to net loss
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, centralized leasing service
and franchise tax fees.
|
Contact:
Investor Relations
Kristen Thomas
IR@nexpoint.com
(214) 276-6300
Media inquiries: Pro-Nexpoint@prosek.com
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SOURCE NexPoint Residential Trust, Inc.