Market Overview

NexPoint Residential Trust, Inc. Reports First Quarter 2018 Results

Share:

NexPoint Residential Trust, Inc. Reports First Quarter 2018 Results

$10.1 million net income, 5.9% same-store NOI growth;

$5.1 million of shares repurchased in the first quarter, $9.4 million year-to-date through April 30, 2018;

NXRT Board authorized $10 million increase and two-year extension of the Share Repurchase Program

PR Newswire

DALLAS, May 1, 2018 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the first quarter ended March 31, 2018.

Highlights

  • NXRT reported Net Income, FFO1, Core FFO1 and AFFO1 of $10.1M, $7.7M, $8.3M and $9.5M, respectively, attributable to common stockholders for the quarter ended March 31, 2018.
  • For the three months ended March 31, 2018, Same Store properties average effective rent, total revenue and NOI1 increased 3.9%, 3.6% and 5.9%, respectively, over the prior year period.
  • The weighted average effective monthly rent per unit across all 32 properties held as of March 31, 2018 (the "Portfolio"), consisting of 11,471 units, was $958, while physical occupancy was 94.0%.
  • NXRT paid a first quarter dividend of $0.25 per share of common stock on March 29, 2018.
  • During the first quarter, NXRT completed the disposition of Timberglen for gross sales proceeds of $30.0 million.
  • In February 2018, NXRT used $8.6 million of proceeds from the Timberglen sale to pay the remaining outstanding balance on the bridge facility with KeyBank National Association (the "2017 Bridge Facility"), which retired the bridge facility.
  • During the first quarter, for the properties in our Portfolio, NXRT completed 298 full and partial upgrades and leased 167 upgraded units, achieving $95 average monthly rent premiums and a 21.2% ROI2. Since inception, for the properties in our Portfolio, we have completed 4,527 full and partial upgrades and achieved a $90 average monthly rental increase per unit, equating to a 21.2% ROI on all units leased as of March 31, 2018.
  • During the first quarter of 2018, NXRT repurchased 203,953 shares of its common stock at a total cost of approximately $5,058,000, or $24.80 per share. As of March 31, 2018, NXRT had repurchased a total of 558,470 shares of its common stock at a total cost of approximately $12,079,000, or $21.63 per share.
  • On February 12, 2018, NXRT's board of directors, including its independent directors, unanimously approved a renewal of the Advisory Agreement with NexPoint Real Estate Advisors, L.P. (the "Adviser") for a one-year term that expires on March 16, 2019.

"We achieved a strong start for the year in the first quarter, maintaining a steady pace of revenue growth while limiting controllable operating expense inflation. The Company strategically disposed of Timberglen for gross sale proceeds of $30.0 million, retired the 2017 Bridge Facility, and bought back over 200,000 shares at appreciable discounts to our internal Net Asset Value projection," according to NXRT's Chairman and President, Jim Dondero. "Management remains bullish on the fundamentals for well-located workforce housing in the Southeast and Southwest and we will keep working methodically to produce strong financial performance."

First Quarter 2018 Financial Results

  • Total revenues were $35.1 million for the first quarter of 2018, compared to $37.0 million for the first quarter of 2017.
  • Net income for the first quarter of 2018 totaled $10.1 million, or earnings of $0.47 per diluted share, which included $13.7 million of gain on sale of real estate and $11.4 million of depreciation and amortization expense. This compared to a net loss of $(3.6) million, or $(0.17) per diluted share, for the first quarter of 2017, which included $12.4 million of depreciation and amortization expense.
  • The change in our net income (loss) between the periods primarily relates to increases in gain on sale of real estate and same store operating results, and was partially offset by increases in corporate general and administrative expenses and loss on extinguishment of debt and modification costs.
  • For the first quarter of 2018, NOI¹ was $19.1 million on 32 properties, compared to $19.7 million for the first quarter of 2017 on 40 properties.
  • For the first quarter of 2018, Same Store NOI¹ increased 5.9% to $16.5 million, compared to $15.6 million for the first quarter of 2017.
  • For the first quarter of 2018, FFO¹ totaled $7.7 million, or $0.36 per diluted share, compared to $8.0 million, or $0.38 per diluted share, for the first quarter of 2017.
  • For the first quarter of 2018, Core FFO¹ totaled $8.3 million, or $0.39 per diluted share, compared to $8.1 million, or $0.38 per diluted share, for the first quarter of 2017.
  • For the first quarter of 2018, AFFO¹ totaled $9.5 million, or $0.45 per diluted share, compared to $9.1 million, or $0.43 per diluted share, for the first quarter of 2017.

1.

FFO, Core FFO, AFFO and NOI are non-GAAP measures. For reconciliations of FFO, Core FFO, AFFO and NOI to net income, and a discussion of why we consider these non-GAAP measures useful, see the "Definitions and Reconciliations" section of this release.

2.

We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost.

Same Store Results of Operations

There are 29 properties encompassing 10,123 units of apartment space in our same store pool for the three months ended March 31, 2018 (our "Same Store" properties). As of March 31, 2018, our Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $933. As of March 31, 2017, our Same Store properties were approximately 94.6% leased with a weighted average monthly effective rent per occupied apartment unit of $899.

The following table reflects the revenues, property operating expenses and NOI for the three months ended March 31, 2018 and 2017 for our Same Store and Non-Same Store properties (dollars in thousands):


For the Three Months Ended March 31,











2018



2017



$ Change



% Change


Revenues
















Same Store
















Rental income

$

26,167



$

25,183



$

984




3.9

%

Other income


3,996




3,943




53




1.3

%

  Same Store revenues


30,163




29,126




1,037




3.6

%

Non-Same Store
















Rental income


4,406




6,725




View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com