NexPoint Residential Trust Q2 2024 10-Q Filed

TL;DR

**NXRT Q2 10-Q is IN! Check financials for debt & property updates.**

AI Summary

NexPoint Residential Trust, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial data and disclosures relevant to investors are presented, including information on debt, interest expense, and various property-related entities.

Why It Matters

This filing provides investors with crucial financial and operational details for NexPoint Residential Trust, enabling informed investment decisions regarding the real estate investment trust.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including debt and interest expenses, which are critical for assessing the financial health and risks of a real estate investment trust.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20240801 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• NexPoint Residential Trust, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 214-276-6300 (phone_number) — Business phone number
• Bella Solara (company) — Property entity
• Creekside At Matthews (company) — Property entity
• Rockledge Apartments (company) — Property entity

FAQ

Key Financial Figures

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

Filing Documents

• nxrt-20240630.htm (10-Q) — 3549KB
• nxrt-ex31_1.htm (EX-31.1) — 14KB
• nxrt-ex31_2.htm (EX-31.2) — 14KB
• nxrt-ex32_1.htm (EX-32.1) — 10KB
• 0000950170-24-088942.txt ( ) — 12017KB
• nxrt-20240630.xsd (EX-101.SCH) — 1514KB
• nxrt-20240630_htm.xml (XML) — 2332KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 1 Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023 2 Consolidated Unaudited Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 3 Consolidated Unaudited Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 5 Notes to Consolidated Unaudited Financial Statements 7 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 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 44

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 45 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Securities 45 Item 3. Defaults Upon Senior Securities 45 Item 4. Mine Safety Disclosures 46 Item 5. Other Information 46 Item 6. Exhibits 47

Signatures

Signatures 48 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 June 30, 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. Th