NexPoint Residential Trust (NYSE:NXRT) Issues Earnings Results

NexPoint Residential Trust (NYSE:NXRT) issued its quarterly earnings data on Tuesday. The financial services provider reported ($0.34) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.37) by $0.03, FiscalAI reports. NexPoint Residential Trust had a negative return on equity of 11.75% and a negative net margin of 13.22%.The firm had revenue of $64.61 million during the quarter, compared to the consensus estimate of $63.78 million. NexPoint Residential Trust updated its FY 2026 guidance to 2.450-2.450 EPS.

Here are the key takeaways from NexPoint Residential Trust’s conference call:

• 2026 core FFO guidance was reduced to a midpoint of $2.45 per share from $2.57, primarily due to higher projected interest expense and a slower same-store revenue recovery. Same-store NOI guidance was also lowered to a midpoint decline of 1%.
• Higher forward SOFR assumptions and the expiration of approximately $717.5 million of swap protection in September are expected to increase full-year interest expense to about $71.2 million. Management estimates the rate-related impact at roughly $0.16 per share for the remainder of the year.
• Operating trends improved during the quarter, with same-store revenue deterioration narrowing to 0.6% year over year, occupancy at 93.6%, concessions declining sharply, and bad debt improving. Blended lease trade-outs improved from negative 1.7% in April to positive 0.3% in July, supporting management’s expectation for slightly positive new-lease pricing in the fourth quarter.
• Expense performance is outperforming expectations, prompting management to reduce its full-year same-store expense growth outlook to approximately 2.1% from 3.5%. Lower real estate taxes, insurance costs, and payroll expenses are offsetting higher repairs, maintenance, marketing, and utilities.
• Management highlighted a supportive longer-term Sun Belt outlook as new apartment supply falls and renter demand remains strong, but remaining 2026 deliveries continue to pressure markets including Nashville, North Charlotte, South Las Vegas, and parts of Orlando. The company ended the quarter with approximately $133.5 million of liquidity, no material debt maturities until 2028, and plans to pursue capital recycling, deleveraging, and share repurchases.

NexPoint Residential Trust Stock Up 1.4%

Shares of NYSE:NXRT opened at $24.77 on Thursday. The firm has a 50 day simple moving average of $27.50 and a 200 day simple moving average of $27.85. The company has a debt-to-equity ratio of 6.41, a quick ratio of 2.40 and a current ratio of 1.92. NexPoint Residential Trust has a 52 week low of $23.79 and a 52 week high of $34.87. The company has a market cap of $631.34 million, a PE ratio of -18.62 and a beta of 1.18.

NexPoint Residential Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 8.6%. The ex-dividend date is Tuesday, September 15th. NexPoint Residential Trust’s payout ratio is presently -166.93%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of NXRT. Marshall Wace LLP bought a new position in NexPoint Residential Trust in the 4th quarter worth $257,000. Abel Hall LLC acquired a new stake in NexPoint Residential Trust in the 3rd quarter worth $347,000. Mercer Global Advisors Inc. ADV acquired a new position in NexPoint Residential Trust in the 3rd quarter valued at approximately $207,000. BNP Paribas Financial Markets raised its stake in shares of NexPoint Residential Trust by 7.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,971 shares of the financial services provider’s stock valued at $366,000 after buying an additional 760 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in NexPoint Residential Trust by 4.9% during the second quarter. The Manufacturers Life Insurance Company now owns 8,546 shares of the financial services provider’s stock worth $285,000 after buying an additional 402 shares during the last quarter. Hedge funds and other institutional investors own 76.61% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Weiss Ratings reissued a “sell (d+)” rating on shares of NexPoint Residential Trust in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $18.00 target price on shares of NexPoint Residential Trust in a research note on Monday, July 20th. Truist Financial lowered their price target on NexPoint Residential Trust from $27.00 to $26.00 and set a “hold” rating for the company in a report on Tuesday, June 30th. Wall Street Zen raised NexPoint Residential Trust from a “sell” rating to a “hold” rating in a research report on Saturday, July 4th. Finally, Zacks Research upgraded NexPoint Residential Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $22.00.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single?family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi?family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single?family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.