NexPoint Residential Trust, Inc. Q1 FY2025 earnings call

• Paul Richards discussed Q1 results, updated NAV ($44.20 - $58.20 per share), revised 2025 guidance for earnings and core FFO, and mentioned a share buyback program. - Matt McGraner talked about same-store operational results (occupancy, rent growth, market conditions), supply forecasts (RealPage projections showing declining deliveries), tariff impacts (muted impact so far), and transaction activity (quality assets getting bid up). - Bonner McDermett added qualitative discussion on transactional value for quality assets vs other product types.

Net loss for Q1 2025 was $6.9 million or $0.27 per diluted share on total revenue of $63.2 million. Compared to Q1 2024, net income was $26.4 million on $67.6 million revenue. NOI for Q1 2025 was $37.8 million on 35 properties vs $41.1 million on 37 properties in Q1 2024. Same-store rent, occupancy, and revenues decreased. Core FFO was $19.1 million or $0.75 per diluted share. NAV per share range was $44.20 on the low end, $58.20 on the high end, and $51.20 at the midpoint based on average cap rates from 5.25% to 5.75%.

• Revised 2025 guidance for earnings per diluted share: high end $1.08, low end negative $1.36, midpoint negative $1.22. - Core FFO per diluted share: high end $2.89, low end $2.61, midpoint $2.75. - Reaffirmed same-store rental income, total revenue, total expenses, NOI, and acquisitions/dispositions.

• Tariffs monitored as a potential risk, though impact so far is muted. - Market supply and demand factors, including new supply in some markets and affordability challenges.

Q: Of your markets, are there geographies where cap rates are softer?

A: Atlanta and parts of DFW are on the weaker side of NAV guidance due to supply. For quality assets, well-located suburban B/B+ assets are in demand but some product is in weaker positions.

Q: Given NAV midpoint and stock price, could you hit higher disposition range to repurchase stock?

A: Yes, aiming to maintain steady buyback with free cash flow and be opportunistic with recycling capital.

Q: Reason for not being more aggressive on swaps?

A: Market was choppy earlier, but rates have settled; currently a better transaction can be done now than a few weeks ago.

Q: Fast wear in new rent growth excluding value-add?

A: New lease growth inflection is organic, not driven by rehab results, a positive sign for the industry.

Q: CapEx guidance for rest of year?

A: Recurring nonrecurring CapEx is stable, with potential pickup in interiors for around 300 upgrades in Q2/Q3, but nothing overly material.

Q: OpEx and property taxes/insurance light?

A: Due to centralization of payroll, ramping maintenance potting, and favorable insurance renewal, but taxes have fluctuation; overall OpEx looks good.