DALLAS, Dec. 18,
2023 /PRNewswire/ -- NexPoint Residential Trust, Inc.
("NXRT" or the "Company") (NYSE: NXRT) announced today the closing
of the sale of Timber Creek in Charlotte,
NC, a 352-unit property built in 1984. The property was
acquired for $22.8 million on
September 30, 2014, and the Company
completed an extensive repositioning and value-add initiative,
improving the common area amenities and a significant portion of
the unit interiors. As of December 13,
2023, the property was 95.17% leased with a weighted average
effective monthly rent of approximately $1,202. Net proceeds from the sale were
approximately $24.5M, delivering a
trailing nominal tax and insurance adjusted cap rate of 5.01%, a
25.80% levered internal rate of return and a 4.45x multiple on
invested capital, each of which well exceeded expectations. The
Company used the net proceeds from the sale to make a $17 million paydown on the Company's corporate
credit facility on December 15, 2023,
continuing the Company's strategic de-leveraging and balance sheet
improvement initiatives. This paydown reduces the drawn balance on
the facility to $24 million, a 92.8%
reduction from September 30,
2022.
"NXRT is pleased to announce another successful 2023
disposition, furthering our strategic objective to exit lower
growth legacy assets in Charlotte,
Dallas and Houston, and pay off our most expensive debt
capital. NXRT remains committed to unlocking liquidity the
Company can use to improve the balance sheet, repurchase shares
and/or pay off higher property-level debt that will be accretive to
future growth. We will seek to continue this approach heading into
2024," said Matt McGraner, Chief
Investment Officer.
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.
Cautionary Statement Regarding Forward-Looking
Statements
This press 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," "should," "continue" and similar
expressions, and variations or negatives of these words. These
forward-looking statements include, but are not limited to,
statements regarding the Company's strategic objectives, the
execution of the strategic objectives, that NXRT is committed to
unlocking liquidity which the Company can use to improve the
balance sheet, repurchase shares and/or pay off higher
property-level debt that will be accretive to future growth and the
Company will seek to continue this approach in 2024. 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
statements described 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.
Contact:
Kristen
Thomas
Investor Relations
IR@nexpoint.com
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SOURCE NexPoint Residential Trust