NexPoint Residential Trust Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>NexPoint Residential Trust filed its Q1 2024 10-Q, detailing financial activities and property information.</b>

AI Summary

NexPoint Residential Trust, Inc. (NXRT) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. NexPoint Residential Trust, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business address is 300 Crescent Court, Suite 700, Dallas, TX 75201. The filing includes information related to various debt instruments, including mortgages and debt with floating interest rates. Specific properties mentioned include Residences at Glenview Reserve, Creekside at Matthews, Bloom, Summers Landing, Bella Vista, Fairways at San Marcos 1, and The Enclave.

Why It Matters

For investors and stakeholders tracking NexPoint Residential Trust, Inc., this filing contains several important signals. This 10-Q provides a quarterly update on the financial health and operational status of NexPoint Residential Trust, crucial for investors to assess performance and make informed decisions. The detailed information on debt, properties, and hedging activities offers insights into the company's risk management strategies and its exposure to interest rate fluctuations.

Risk Assessment

Risk Level: — NexPoint Residential Trust, Inc. shows moderate risk based on this filing. The company's exposure to debt with floating interest rates and interest rate swap transactions indicates a medium level of risk related to interest rate fluctuations, as detailed in the filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to understand NexPoint Residential Trust's current financial position and future outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-03 — Filing Date (Filed as of date)

Key Players & Entities

• NexPoint Residential Trust, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-03 (date) — Filed as of date
• 300 Crescent Court, Suite 700, Dallas, TX 75201 (address) — Business address
• KeyBank (company) — Mentioned in relation to interest rate swap transactions
• Truist Bank (company) — Mentioned in relation to interest rate swap transactions

FAQ

Risk Factors

• Debt With Floating Interest Rate [medium — financial]: The company has debt with floating interest rates, which exposes it to fluctuations in interest expenses.
• Interest Rate Swap Transactions [medium — financial]: The company engages in interest rate swap transactions, indicating a strategy to manage interest rate risk.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during the quarter.)

REIT

Real Estate Investment Trust. A company that owns, operates, or finances income-generating real estate. (Indicates the company's business model focused on real estate investments.)

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share NXRT New York Stock Excha

Filing Documents

• nxrt-20240331.htm (10-Q) — 2907KB
• nxrt-ex10_1.htm (EX-10.1) — 75KB
• nxrt-ex10_2.htm (EX-10.2) — 45KB
• nxrt-ex31_1.htm (EX-31.1) — 14KB
• nxrt-ex31_2.htm (EX-31.2) — 14KB
• nxrt-ex32_1.htm (EX-32.1) — 10KB
• 0000950170-24-052406.txt (&nbsp;) — 11569KB
• nxrt-20240331.xsd (EX-101.SCH) — 1662KB
• nxrt-20240331_htm.xml (XML) — 2242KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 1 Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 2 Consolidated Unaudited Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 3 Consolidated Unaudited Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 4 Notes to Consolidated Unaudited Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 40

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Securities 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 43

Signatures

Signatures 44 i Cautionary Statement Regardin g Forward-Looking Statements This quarterly report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to our liquidity and capital resources, the performance of our properties and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including market conditions and demographics) are forward-looking statements. We caution investors that any forward-looking statements presented in this quarterly report are based on management's current beliefs and assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result" and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following: unfavorable changes in market and economic conditions in the United States and globally and in the specific markets where o

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Description of Business NexPoint Residential Trust, Inc. (the "Company," "we," "our") was incorporated in Maryland on September 19, 2014 , and has elected to be taxed as a real estate investment trust ("REIT") and the Company believes the current organization and method of operation will enable it to maintain its status as a REIT. The Company is focused on "value-add" multifamily investments primarily located in the Southeastern and Southwestern United States. Substantially all of the Company's business is conducted through NexPoint Residential Trust Operating Partnership, L.P. (the "OP"), the Company's operating partnership. The Company also consolidates certain variable interest entities ("VIEs") in accordance with Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") 810 Consolidation. The Company controls and consolidates the OP as a VIE. The Company owns its properties (the "Portfolio") through the OP and its wholly owned taxable REIT subsidiary ("TRS"). The OP owns approximately 99.9 % of the Portfolio; the TRS owns approximately 0.1 % of the Portfolio. The Company's wholly owned subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC (the "OP GP"), is the sole general partner of the OP. As of March 31, 2024, there were 26,053,988 common units in the OP ("OP Units") outstanding, of which 25,951,154 , or 99.6 % , were owned by the Company and 102,834 , or 0.4 % , were owned by noncontrolling limited partners (see Note 8). The Company is externally managed by NexPoint Real Estate Advisors, L.P. (the "Adviser"), through an agreement dated March 16, 2015, as amended, and renewed on February 26, 2024 for a one-year term (the "Advisory Agreement"), by and among the Company, the OP and the Adviser. The Adviser conducts substantially all of the Company's operations and provides asset management services for its real estate investments. The Company expe