NexPoint Residential Trust Files Q3 2024 10-Q

TL;DR

NXRT Q3 10-Q filed. Financials look steady.

AI Summary

NexPoint Residential Trust, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial metrics and disclosures relevant to investors are presented.

Why It Matters

This filing provides investors with the latest financial health and operational performance of NexPoint Residential Trust, crucial for investment decisions.

Risk Assessment

Risk Level: medium — Real estate investment trusts are subject to market fluctuations and interest rate sensitivity.

Key Numbers

• 71 — Public Document Count (Indicates the volume of documents associated with this filing.)
• 1231 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• NexPoint Residential Trust, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — Period end date for the 10-Q filing
• 214-276-6300 (phone_number) — Business phone number for NexPoint Residential Trust
• 001-36663 (company_id) — SEC file number for NexPoint Residential Trust

FAQ

Key Financial Figures

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

Filing Documents

• nxrt-20240930.htm (10-Q) — 3676KB
• nxrt-ex31_1.htm (EX-31.1) — 14KB
• nxrt-ex31_2.htm (EX-31.2) — 14KB
• nxrt-ex32_1.htm (EX-32.1) — 10KB
• 0000950170-24-118609.txt ( ) — 12877KB
• nxrt-20240930.xsd (EX-101.SCH) — 1579KB
• nxrt-20240930_htm.xml (XML) — 2547KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 2 Consolidated Unaudited Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 3 Consolidated Unaudited Statements of Cash Flows for the Nine Months Ended September 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 44 Item 4.

Controls and Procedures

Controls and Procedures 45

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Securities 46 Item 3. Defaults Upon Senior Securities 46 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48

Signatures

Signatures 49 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 September 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 ser