8-K - NXRT - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 26, 2022

NEXPOINT RESIDENTIAL TRUST, INC.

(Exact Name Of Registrant As Specified In Charter)

Maryland	001-36663	47-1881359
(State or Other Jurisdiction<br><br><br>of Incorporation)	(Commission<br><br><br>File Number)	(IRS Employer<br><br><br>Identification No.)

300 Crescent Court, Suite 700

Dallas, Texas 75201

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (214) 276-6300

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br><br>Symbol(s)	Name of each exchange<br><br><br>on which registered
Common Stock, par value $0.01 per share	NXRT	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing. In a press release dated July 26, 2022, NexPoint Residential Trust, Inc. (the “Company”) announced financial results for the Company’s second quarter ended June 30, 2022. The full text of the press release is furnished herewith as Exhibit 99.1 to this report.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit<br><br><br>Number	Exhibit Description
99.1	Press Release dated July 26, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NEXPOINT RESIDENTIAL TRUST, INC.
By:	/s/ Brian Mitts
	Name: Brian Mitts<br><br><br>Title: Chief Financial Officer, Executive<br><br><br>VP-Finance, Secretary and Treasurer

Date: July 26, 2022

nxrt-ex991_6.htm

Exhibit 99.1

26 July 2022 | NYSE: NXRT

EARNINGS SUPPLEMENT: SECOND QUARTER 2022

NEXPOINT RESIDENTIAL TRUST, INC.

300 CRESCENT COURT, SUITE 700

DALLAS, TX 75201

PHONE: (214) 276-6300

INVESTOR RELATIONS:

JACKIE GRAHAM

NXRT.NEXPOINT.COM

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

TABLE OF CONTENTS

Earnings Release	1
Cautionary Statement Regarding Forward-Looking Statements	3
Overview	4
Highlights of Recent Activity	5
Financial Summary	7
2022 Full Year Guidance	8
Components of Net Asset Value	9
Consolidated Balance Sheets	10
Consolidated Statements of Operations	11
NOI and Same Store NOI	12
Q2 Same Store Results	13
Q2 Same Store Properties Operating Metrics	15
QoQ Same Store Properties Operating Metrics	16
YTD Same Store Results	17
FFO, Core FFO and AFFO	19
Historical Capital Expenditures	20
Value-Add Program Details	21
Outstanding Debt Details	24
Debt Maturity Schedule	26
Historical Acquisition Details	27
Historical Disposition Details	28
Definitions and Reconciliations of Non-GAAP Measures	29
THE AVANT AT PEMBROKE PINES
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FULLY REPOSITIONED AMENITY PACKAGE

TOP-FLIGHT NEW FITNESS AND RECREATION CENTER

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

FOR IMMEDIATE RELEASE

Contact:

Investor Relations

Jackie Graham

JGraham@nexpoint.com

(214) 276-6300

Media inquiries: JGraham@nexpoint.com

NEXPOINT RESIDENTIAL TRUST, INC. REPORTS SECOND QUARTER 2022 RESULTS

NXRT Continues to Experience Strong Revenue Growth; Accelerates Rehab Pace for the Quarter

Dallas, TX, July 26, 2022 – NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the second quarter ended June 30, 2022.

Highlights

•	NXRT^1^ reported Net Loss, FFO^2^, Core FFO^2^ and AFFO^2^ of $(7.8)M, $17.6M, $20.3M and $22.7M, respectively, attributable to common stockholders for the quarter ended June 30, 2022, compared to Net Loss, FFO, Core FFO, and AFFO of $(3.4)M, $16.5M, $14.2M and $16.3M, respectively, attributable to common stockholders for the quarter ended June 30, 2021.
•	NXRT reported Net Loss, FFO, Core FFO and AFFO of $(12.5)M, $36.6M, $40.4M and $45.1M, respectively, attributable to common stockholders for the six months ended June 30, 2022, compared to Net Loss, FFO, Core FFO, and AFFO of $(10.3)M, $30.3M, $28.3M and $32.4M, respectively, attributable to common stockholders for the six months ended June 30, 2021.
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•	For the three months ended June 30, 2022, Q2 Same Store properties^3^ average effective rent, total revenue and NOI^2^ increased 19.2%, 14.2% and 16.4%, respectively, and occupancy decreased 150 bps over the prior year period.
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•	For the six months ended June 30, 2022, YTD Same Store properties^3^ average effective rent, total revenue and NOI^2^ increased 19.2%, 12.7% and 16.4%, respectively, and occupancy decreased 150 bps over the prior year period.
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•	The weighted average effective monthly rent per unit across all 41 properties held as of June 30, 2022 (the “Portfolio”), consisting of 15,387^4^ units, was $1,387, while physical occupancy was 94.5%.
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•	On April 1, 2022, NXRT acquired The Adair located in Sandy Springs, Georgia, and Estates on Maryland located in Phoenix, Arizona for a combined purchase price of $143.4 million.
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•	NXRT paid a second quarter dividend of $0.38 per share of common stock on June 30, 2022.
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•	During the six months ended June 30, 2022, through its at-the-market offering (“ATM program”), NXRT issued 52,091 shares for approximately $4.3 million in gross proceeds.
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•	During the three months ended June 30, 2022, NXRT repurchased and retired 69,567 shares at a weighted average price of $73.82 per share. Since inception, NXRT has repurchased 2,451,722 shares at a weighted average price of $27.07 per share.
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•	During the second quarter, for the properties in our Portfolio, we completed 650 full and partial upgrades and leased 609 upgraded units, achieving an average monthly rent premium of $138 and a 24.9% ROI^5^.
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•	Since inception, for the properties currently in our Portfolio, we have completed 6,834 full and partial upgrades, 4,724 kitchen and laundry appliances, and 9,624 technology packages, resulting in a $142, $48, and $43 average monthly rental increase per unit and a 21.8%, 69.7%, and 33.5% ROI, respectively.
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1)	In this release, “we,” “us,” “our,” the “Company,” “NexPoint Residential Trust,” and “NXRT” each refer to NexPoint Residential Trust, Inc., a Maryland corporation.
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2)	FFO, Core FFO, AFFO and NOI are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of FFO, Core FFO, AFFO and NOI to net loss, see the “Definitions and Reconciliations of Non-GAAP Measures”, “FFO, Core FFO and AFFO” and “NOI and Same Store NOI” sections of this release.
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3)	We define “Same Store” properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 34 properties encompassing 13,433 units of apartment space in our Same Store pool for the three months ended June 30, 2022 (our “Q2 Same Store” properties) and 34 properties encompassing 13,433 units of apartment space in our Same Store pool for the six months ended June 30, 2022 (our “YTD Same Store” properties). The same store unit count excludes 67 units that are currently down due to casualty events (Silverbrook: 16 units, Arbors of
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Brentwood: 16 units, Timber Creek: 15 units, Venue at 8651: 8 units, Hollister Place: 6 units, The Preserve at Terrell Mill: 3 units, Parc500: 2 units, and Bloom: 1 unit).
4)	Total units owned in our Portfolio is 15,387, however 73 units are currently down due to casualty events (Silverbrook: 16 units, Arbors of Brentwood: 16 units, Timber Creek: 15 units, Venue at 8651: 8 units, Hollister Place: 6 units, Six Forks: 6 units, The Preserve at Terrell Mill: 3 units, Parc500: 2 units, and Bloom: 1 unit).
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5)	We define Return on Investment (“ROI”) as the sum of the actual rent premium divided by the sum of the total cost.
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Second Quarter 2022 Financial Results

•	Total revenues were $65.8 million for the second quarter of 2022, compared to $52.6 million for the second quarter of 2021.
•	Net loss for the second quarter of 2022 totaled $(7.8) million, or loss of $(0.30) per diluted share, which included $25.5 million of depreciation and amortization expense. This compared to a net loss of $(3.4) million, or earnings of $(0.14) per diluted share, for the second quarter of 2021, which included $20.0 million of depreciation and amortization expense.
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•	The change in our net loss of $(7.8) million for the three months ended June 30, 2022 as compared to our net loss of $(3.4) million for the three months ended June 30, 2021 primarily relates to a decrease in casualty gains and an increase in depreciation expense, partially offset by an increase in total revenues.
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•	For the second quarter of 2022, NOI was $38.8 million on 41 properties, compared to $30.2 million for the second quarter of 2021 on 39 properties.
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•	For the second quarter of 2022, Q2 Same Store NOI increased 16.4% to $33.7 million, compared to $28.9 million for the second quarter of 2021.
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•	For the second quarter of 2022, FFO totaled $17.6 million, or $0.69 per diluted share, compared to $16.5 million, or $0.66 per diluted share, for the second quarter of 2021.
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•	For the second quarter of 2022, Core FFO totaled $20.3 million, or $0.79 per diluted share, compared to $14.2 million, or $0.56 per diluted share, for the second quarter of 2021.
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•	For the second quarter of 2022, AFFO totaled $22.7 million, or $0.89 per diluted share, compared to $16.3 million, or $0.65 per diluted share, for the second quarter of 2021.
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2022 Year to Date Financial Results

•	Total revenues were $126.6 million for the six months ended June 30, 2022, compared to $104.4 million for the six months ended June 30, 2021.
•	Net loss for the six months ended June 30, 2022 totaled $(12.5) million, or loss of $(0.49) per diluted share, which included $49.3 million of depreciation and amortization expense. This compared to net loss of $(10.3) million, or earnings of $(0.41) per diluted share, for the six months ended June 30, 2021, which included $40.7 million of depreciation and amortization expense.
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•	The change in our net loss of $(12.5) million for the six months ended June 30, 2022 as compared to our net loss of $(10.3) million for the six months ended June 30, 2021 primarily relates to a decrease in casualty gains and an increase in depreciation expense, partially offset by an increase in total revenues.
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•	For the six months ended June 30, 2022, NOI was $75.4 million on 41 properties, compared to $60.0 million for the six months ended June 30, 2021 on 39 properties.
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•	For the six months ended June 30, 2022, Same Store NOI increased 16.4% to $66.9 million, compared to $57.4 million for the six months ended June 30, 2021.
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•	For the six months ended June 30, 2022, FFO totaled $36.6 million, or $1.43 per diluted share, compared to $30.3 million, or $1.21 per diluted share, for the six months ended June 30, 2021.
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•	For the six months ended June 30, 2022, Core FFO totaled $40.4 million, or $1.58 per diluted share, compared to $28.3 million, or $1.13 per diluted share, for the six months ended June 30, 2021.
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•	For the six months ended June 30, 2022, AFFO totaled $45.1 million, or $1.76 per diluted share, compared to $32.4 million, or $1.29 per diluted share, for the six months ended June 30, 2021.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Second Quarter Earnings Conference Call

NXRT will host a conference call on Tuesday, July 26, 2022 at 11:00 a.m. ET (10:00 am CT), to discuss second quarter financial results. The conference call can be accessed live over the phone by dialing 888-220-8474 or, for international callers, + 1 646-828-8193 and using passcode Conference ID: 4498068. A live audio webcast of the call will be available online at the Company's website, https://nxrt.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.

A replay of the conference call will also be available through Tuesday, August 2, 2022 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 4498068.

About NXRT

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located, middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience. Our filings with the Securities and Exchange Commission (the “SEC”) are available on our website, nxrt.nexpoint.com, under the “Financials” tab.

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as “expect,” “anticipate,” “estimate,” “may,” “should,” “plan” and similar expressions and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding NXRT’s business and industry in general, room for future rent growth, NXRT’s guidance for financial results for the full year 2022, including earnings per diluted share, Core FFO per diluted share, same store rental income, same store total revenue and same store NOI, and the related assumptions, including expected acquisitions and dispositions, shares outstanding and same store growth projections, NXRT’s net asset value and the related components and assumptions, including anticipated full year and third quarter 2022 net income, acquisitions and dispositions, pro forma adjustments for acquisitions and dispositions, the NOI related to the acquired or disposed of properties, the Cornerstone loan refinancing, estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, NOI guidance for the third quarter 2022 and the related assumptions, planned value-add programs, including projected average rent, rent change and return on investment, expected settlement of interest rate swaps and the effect on the debt maturity schedule, rehab budgets and expected acquisitions and dispositions. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including the ultimate duration and severity of the COVID-19 pandemic and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, as well as those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s most recent Annual Report on Form 10-K and other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements.

NXRT.NEXPOINT.COM	Page 3

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC: SECOND QUARTER 2022 OVERVIEW

Company Profile

(share counts in thousands)
Exchange/Ticker	NYSE: NXRT
Share Price (1)	$62.98
Insider Ownership	12.58%
2022 Q3 Dividend Per Share	$0.38
Dividend Yield (1)	2.41%
Shares Outstanding - basic (2)	25,672
Shares Outstanding - diluted (2)	25,672
(1)	As of the close of market trading on July 25, 2022.
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(2)	Weighted average for the three months ended June 30, 2022. If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the calculation of diluted shares outstanding.
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Portfolio Composition by Market
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Market	% of Units
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Dallas/Fort Worth	16.8%
Phoenix	13.1%
South Florida	12.7%
Atlanta	11.0%
Nashville	8.7%
Houston	7.7%
Orlando	7.6%
Las Vegas	7.6%
Charlotte	7.0%
Raleigh	4.1%
Tampa	3.7%
Total	100.0%

Revenue & Average Rent Per Unit	Stock Price Performance (Since Inception; 4/1/2015)
NXRT.NEXPOINT.COM	Page 4
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Highlights of Recent Activity

ACQUISITIONS

Property Name	Location	Date of<br><br><br>Acquisition	Purchase Price		Mortgage Debt
The Adair	Sandy Springs, Georgia	April 1, 2022	$	65,500	$	35,115	232	100	%
Estates on Maryland	Phoenix, Arizona	April 1, 2022		77,900		43,157	330	100	%
			$	143,400	$	78,272	562

RENT TRADEOUTS

Market		% Increase	Rent Increase			% Increase	Rent Increase
DFW	412	19.6%	$	212.07	335	15.9%	$	167.29
HOU	193	11.7%	$	143.22	170	13.2%	$	155.53
CHA	174	16.7%	$	199.53	129	14.2%	$	159.98
NASH	210	23.8%	$	279.96	208	15.9%	$	184.91
ATL	224	20.1%	$	266.17	223	14.0%	$	180.16
ORL	189	30.6%	$	388.19	131	24.1%	$	305.51
TPA	84	29.5%	$	343.29	74	26.2%	$	301.28
SFL	216	31.6%	$	519.06	292	22.5%	$	354.25
PHX	295	21.4%	$	278.48	268	16.9%	$	212.61
LSV	208	16.8%	$	215.00	144	13.7%	$	173.54
RDU	117	10.8%	$	137.90	138	11.7%	$	151.26
TOTAL/AVERAGE	2,322	21.1%	$	269.37	2,112	16.9%	$	213.24

SAME STORE GROWTH

(In thousands)	Q2 2022		Q2 2021
Rental Revenue	$	56,206	$	49,086	14.5	%
Other Income		1,507		1,469	2.6	%
Total Income		57,713		50,555	14.2	%
Total Expense		24,147		21,779	10.9	%
Miscellaneous income		136		167	-18.6	%
NOI	$	33,702	$	28,943	16.4	%

NXRT.NEXPOINT.COM	Page 5

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

ROOM FOR FUTURE RENT GROWTH

(1)	Source: RealPage as of April 30, 2022. NXRT average rent as of May 31, 2022.
(2)	Source: Average of Invitation Homes and American Homes 4 Rent. Average effective rent per market based on recent public filings.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Financial Summary

	Q2 2022			Q2 2021			YTD 2022			YTD 2021
(in thousands, except for per share and unit data)
Company Profile
Market Capitalization (as of the last day of the period)	$	1,603,000		$	1,383,000
Share Price (as of the last day of the period)	$	62.51		$	54.98
Weighted average common shares outstanding - basic		25,672			25,140			25,646			25,104
Weighted average common shares outstanding - diluted		25,672			25,140			25,646			25,104
Earnings Profile
Total revenues	$	65,766		$	52,563		$	126,552		$	104,359
Net loss attributable to common stockholders		(7,797	)		(3,408	)		(12,450	)		(10,287	)
NOI (1)		38,846			30,227			75,411			59,951
Same Store NOI (2)		33,702			28,943			66,857			57,440
Same Store NOI Growth (%) (2)		16.4	%					16.4	%
Earnings Metrics Per Common Share (diluted basis)
Earnings	$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
FFO (1)	$	0.69		$	0.66		$	1.43		$	1.21
Core FFO (1)	$	0.79		$	0.56		$	1.58		$	1.13
AFFO (1)	$	0.89		$	0.65		$	1.76		$	1.29
Dividends declared per common share	$	0.38		$	0.34		$	0.76		$	0.68
FFO Coverage (3)	1.81x			1.93x			1.88x			1.77x
Core FFO Coverage (3)	2.08x			1.65x			2.08x			1.66x
AFFO Coverage (3)	2.33x			1.90x			2.32x			1.89x
Portfolio
Total Properties		41			39
Total Units (4)		15,387			14,709
Occupancy		94.5	%		96.1	%
Average Effective Monthly Rent per Unit	$	1,387		$	1,159
Same Store Portfolio Metrics (2)
Total Same Store Properties		34			34			34			34
Total Same Store Units		13,433			13,386			13,433			13,386
Occupancy		94.5	%		96.0	%		94.5	%		96.0	%
Average Effective Monthly Rent per Unit	$	1,385		$	1,162		$	1,385		$	1,162
Value-Add Program
Completed Rehab Units		650			336			1,181			621
Cumulative Completed Rehab Units (5)		6,834
Average Increase to Effective Monthly Rent<br><br><br>per Unit (Post-Rehab)	$	142
ROI on Post-Rehab Units		21.8	%
Outstanding Debt Summary
Total Mortgage Debt	$	1,358,675		$	1,234,515
Credit Facilities		335,000			250,000
Total Debt Outstanding	$	1,693,675		$	1,484,515
Leverage Ratio (Net Debt to Enterprise Value) (6)		51	%		50	%
(1)	For more information and reconciliations of NOI, FFO, Core FFO and AFFO, see the “FFO, Core FFO and AFFO”, “NOI and Same Store NOI” and “Definitions and Reconciliations of Non-GAAP Measures” sections of this release.
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(2)	We define “Same Store” properties as properties that were in our Portfolio for the entirety of the periods being compared. For additional information regarding our Q2 and YTD Same Store properties, see the “Q2 Same Store Results” and “YTD Same Store Results” section of this release.
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(3)	Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.
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(4)	Total units owned is 15,387, however 73 units are currently down due to casualty events.
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(5)	Inclusive of all full and partial interior upgrades completed through. Cumulative results exclude rehabs completed for properties sold through June 30, 2022.
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(6)	For more information and a reconciliation of debt to net debt, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.
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NXRT.NEXPOINT.COM	Page 7
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

2022 Full Year Guidance Summary

NXRT is providing updated 2022 guidance ranges for earnings per diluted share, Same Store rental income, Same Store total revenue, Same Store total expenses, and Same Store NOI as follows:

	Guidance Range (1)
	Low-End			Mid-Point			High-End			Prior Mid-Point
Earnings per diluted share (2)	$	3.04		$	3.10		$	3.15		$	4.19
Core FFO per diluted share (2) (3)	$	2.96		$	3.01		$	3.07		$	3.01
Same Store Growth: (4)
Rental Income		12.0	%		12.5	%		13.0	%		11.4	%
Total Revenue		11.5	%		12.0	%		12.4	%		10.8	%
Total Expenses		7.0	%		6.5	%		6.1	%		5.9	%
Same Store NOI (3)		14.7	%		15.8	%		17.0	%		14.3	%
Other Considerations: (5)
Acquisitions	$	150.0		$	225.0		$	300.0		$	225.0
Dispositions	$	150.0		$	225.0		$	300.0		$	225.0
(1)	Full Year 2022 guidance forecast includes Same Store growth projections presented above, which takes into effect the forecast dispositions of Old Farm, Stone Creek at Old Farm and Hollister Place, thereby removing those assets from the Full Year 2022 pro forma Same Store pool.
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(2)	Weighted average diluted share count estimate for full year 2022 is approximately 26.2 million.
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(3)	Same Store NOI and Core FFO are non-GAAP measures. For reconciliations of Full Year 2022 Same Store NOI and Core FFO guidance to net loss guidance and a discussion of why we consider these non-GAAP measures useful, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.
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(4)	Year-over-year growth for the Full Year 2022 pro forma Same Store pool (31 properties).
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(5)	We continue to evaluate our Portfolio for capital recycling opportunities. Transaction volumes presented are incorporated into the EPS and CFFO guidance above. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions, except as required by law.
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Additional information on 2022 financial and earnings guidance is included in the following sections of this release.

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Components of Net Asset Value

(dollar and share amounts in thousands, except per share and per unit data)

REAL ESTATE BY MARKET VALUE	NAV SUMMARY
Property	NOI	Cap Rate Range (1)		Value Range (2)				Component	Min	Max
---	---	---	---	---	---	---	---	---	---	---	---
Market	Contribution	Min	Max	Min		Max		Tangible Assets
Texas								Real Estate (2)		$	4,107,944
Dallas/Fort Worth	13.3%	3.9%	4.2%	$	492,522	$	547,745	Cash	20,463
Houston	5.5%	4.0%	4.3%		201,847		221,472	Restricted Cash - Renovation Reserves (5)	19,333
								Renovation Expenditures (5)	(19,333)
North Carolina								Cash Adjustments (6)	(1,002)
Raleigh	3.3%	3.9%	4.2%		124,092		138,006	Fair Market Value of Interest Rate Swaps	75,461
Charlotte	6.8%	3.9%	4.2%		251,060		279,209	Other Assets	50,428
								Value of Assets		$	4,253,294
Georgia
Atlanta	8.5%	3.9%	4.2%		314,818		350,116	Tangible Liabilities
								Credit Facility (7)	335,000
Tennessee								Mortgage Debt	1,358,675
Nashville	11.1%	3.9%	4.2%		412,535		458,790	Total Outstanding Debt	1,693,675
								Forward 12-month Principal Payments (6)	(1,002)
Florida								Total Outstanding Debt (FY 2022 Est.)	1,692,673
Orlando	7.7%	3.9%	4.2%		284,211		316,078	Other Tangible Liabilities (at Book)	40,689
Tampa	4.2%	3.9%	4.2%		154,230		171,523	Value of Liabilities	1,733,362
South Florida	15.9%	3.9%	4.2%		589,869		656,006	Net Leverage (mid-point)	43%
								Net Asset Value		$	2,519,932
Nevada								Shares outstanding - diluted (FY 2022 Est.)	26,177
Las Vegas	8.1%	4.0%	4.3%		296,430		325,251	Est. NAV / Share		$	96.27
								NAV / Share (mid-point)	88.48
Arizona
Phoenix	15.6%	3.9%	4.2%		578,846		643,748
Total / Ave	100.0%	3.9%	4.2%	$	3,700,460	$	4,107,944

All values are in US Dollars.

NOI ESTIMATE	IMPLIED VAUE VALUATION METRICS
Q1 2022 NOI Actual	36,565					Min	Max
---	---	---	---	---	---	---	---	---
Q2 2022 NOI Actual	38,846				Implied Real Estate Value		$	4,107,944
	Low		High		No. of Units (June 30, 2022) (2)	15,387
Estimated Q3 2022 NOI Guidance (3)	$	39,084	$	40,792	Implied Value/Apartment Unit		$	267.0
2022 Pro Forma NOI Guidance (3)(4)	$	155,668	$	160,756	Implied Value/Apartment Unit (mid-point)	253.7

All values are in US Dollars.

(1)	Management estimates based on independent third-party review of our properties.
(2)	Full Year 2022 NOI Guidance is presented for the existing portfolio (41 properties as of June 30, 2022).
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(3)	The Company anticipates net income (loss) will be in the range between approximately $80.0 million and $82.8 million for the full year 2022 and between ($4.5) million and ($6.3) million for the third quarter of 2022. FY 2022 NOI Guidance considers the completed acquisitions of The Adair and Estates on Maryland and the forecasted dispositions of Hollister Place, Old Farm and Stone Creek at Old Farm and assumes no further acquisition or disposition activity for the remainder of the year.
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(4)	2022 Pro Forma NOI assumes The Adair, Estates on Maryland, Old Farm, Stone Creek and Hollister Place were owned for the full year 2022, which we estimate would have contributed approximately an additional $800, $1,000, $1,900, $500 and $700, respectively, to NOI.
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(5)	Includes approximately $19.3 million that is held for value-add upgrades; reduced by $19.3 million for estimated 2022 rehab expenditures.
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(6)	Includes approximately $1.0 million in forward 12-month principal payments (which excludes the repayment of The Cornerstone loan which we expect to refinance in 2023).
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(7)	Includes outstanding balance of June 30, 2022.
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NXRT.NEXPOINT.COM	Page 9
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

			December 31, 2021

ASSETS
Operating Real Estate Investments
Land	395,813		$	375,857
Buildings and improvements	1,867,841			1,743,866
Intangible lease assets	2,603			2,576
Construction in progress	5,504			6,078
Furniture, fixtures, and equipment	137,603			120,419
Total Gross Operating Real Estate Investments	2,409,364			2,248,796
Accumulated depreciation and amortization	(332,701	)		(287,096	)
Total Net Real Estate Investments	2,076,663			1,961,700
Cash and cash equivalents	20,463			49,450
Restricted cash	45,755			39,246
Accounts receivable, net	11,919			4,844
Prepaid and other assets	12,087			4,701
Fair market value of interest rate swaps	75,461			3,526
TOTAL ASSETS	2,242,348		$	2,063,467
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable, net	1,351,172		$	1,276,285
Credit facility, net	333,203			278,215
Accounts payable and other accrued liabilities	16,673			12,590
Accrued real estate taxes payable	15,124			13,182
Accrued interest payable	4,001			2,491
Security deposit liability	3,119			2,945
Prepaid rents	1,772			1,775
Total Liabilities	1,725,064			1,587,483
Redeemable noncontrolling interests in the Operating Partnership	6,238			6,139
Stockholders' Equity:
Preferred stock, 0.01 par value: 100,000,000 shares authorized; 0 shares issued	—			—
Common stock, 0.01 par value: 500,000,000 shares authorized; 25,647,942 and 25,500,567 shares issued and outstanding, respectively	256			255
Additional paid-in capital	407,436			407,803
Accumulated earnings less dividends	29,071			59,209
Accumulated other comprehensive income	74,283			2,578
Total Stockholders' Equity	511,046			469,845
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,242,348		$	2,063,467

All values are in US Dollars.

NXRT.NEXPOINT.COM	Page 10

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Revenues
Rental income	$	64,152		$	51,047		$	123,449		$	101,387
Other income		1,614			1,516			3,103			2,972
Total revenues		65,766			52,563			126,552			104,359
Expenses
Property operating expenses		16,703			11,173			30,299			22,389
Real estate taxes and insurance		9,531			8,508			18,251			17,230
Property management fees (1)		1,912			1,516			3,669			3,001
Advisory and administrative fees (2)		1,868			1,900			3,711			3,768
Corporate general and administrative expenses		3,812			2,978			7,298			5,918
Property general and administrative expenses		2,193			1,760			4,199			3,319
Depreciation and amortization		25,548			19,986			49,266			40,744
Total expenses		61,567			47,821			116,693			96,369
Operating income		4,199			4,742			9,859			7,990
Interest expense		(12,402	)		(10,683	)		(23,038	)		(21,299	)
Loss on extinguishment of debt and modification costs		—			(328	)		—			(328	)
Casualty gains		229			2,379			357			2,379
Miscellaneous income		147			472			328			940
Net loss		(7,827	)		(3,418	)		(12,494	)		(10,318	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(30	)		(10	)		(44	)		(31	)
Net loss attributable to common stockholders	$	(7,797	)	$	(3,408	)	$	(12,450	)	$	(10,287	)
Other comprehensive income (loss)
Unrealized gains (losses) on interest rate derivatives		17,357			(4,805	)		71,936			26,537
Total comprehensive income (loss)		9,530			(8,223	)		59,442			16,219
Comprehensive income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership		37			(24	)		187			49
Comprehensive income (loss) attributable to common stockholders	$	9,493		$	(8,199	)	$	59,255		$	16,170
Weighted average common stock outstanding - basic		25,672			25,140			25,646			25,104
Weighted average common stock outstanding - diluted		25,672			25,140			25,646			25,104
Loss per share - basic	$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
Loss per share - diluted	$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
(1)	Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Operating Partnership (the “OP”).
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(2)	Fees incurred to the Company’s adviser.
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NXRT.NEXPOINT.COM	Page 11
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NOI and Same Store NOI

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Same Store NOI for the three and six months ended June 30, 2022 and 2021 to net loss, the most directly comparable GAAP financial measure (in thousands):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)
Adjustments to reconcile net loss to NOI:
Advisory and administrative fees			1,868			1,900			3,711			3,768
Corporate general and administrative expenses			3,812			2,978			7,298			5,918
Casualty-related expenses/(recoveries)	(1)		2,592			(435	)		3,642			(392	)
Casualty gain			(229	)		(2,379	)		(357	)		(2,379	)
Pandemic expense			—			12			—			35
Property general and administrative expenses	(2)		680			572			1,307			948
Depreciation and amortization			25,548			19,986			49,266			40,744
Interest expense			12,402			10,683			23,038			21,299
Loss on extinguishment of debt and modification costs			—			328			—			328
NOI		$	38,846		$	30,227		$	75,411		$	59,951
Less Non-Same Store
Revenues			(8,053	)		(2,008	)		(13,335	)		(3,926	)
Operating expenses			2,920			1,029			4,795			2,060
Operating income			(11	)		(305	)		(14	)		(645	)
Same Store NOI		$	33,702		$	28,943		$	66,857		$	57,440
(1)	Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries).
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(2)	Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
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NXRT.NEXPOINT.COM	Page 12
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Q2 Same Store Results of Operations for the Three Months Ended June 30, 2022 and 2021

There are 34 properties encompassing 13,433 units of apartment space, or approximately 87% of our Portfolio, in our same store pool for the three months ended June 30, 2022 and 2021 (our “Q2 Same Store” properties). Our Q2 Same Store properties exclude the following 7 properties in our Portfolio as of June 30, 2022: Cutter’s Point, The Verandas at Lake Norman, Creekside at Matthews, Six Forks Station, High House at Cary, The Adair, and Estates on Maryland, as well as the 67 units mentioned on page 2 that are currently down.

As of June 30, 2022, our Q2 Same Store properties were approximately 94.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,385, a year-over-year decrease of 150 bps and an increase of $223, respectively.

The following table reflects the revenues, property operating expenses and NOI for the three months ended June 30, 2022 and 2021 for our Q2 Same Store and Non-Same Store properties (dollars in thousands):

	For the Three Months Ended June 30,
	2022		2021		Change		% Change
Revenues
Same Store
Rental income	$	56,206	$	49,086				14.5	%
Other income		1,507		1,469				2.6	%
Same Store revenues		57,713		50,555				14.2	%
Non-Same Store
Rental income		7,946		1,961			N/M
Other income		107		47			N/M
Non-Same Store revenues		8,053		2,008			N/M
Total revenues		65,766		52,563				25.1	%
Operating expenses
Same Store
Property operating expenses (1)		12,583		11,013				14.3	%
Real estate taxes and insurance		8,566		8,191				4.6	%
Property management fees (2)		1,683		1,453				15.8	%
Property general and administrative expenses (3)		1,315		1,122				17.2	%
Same Store operating expenses		24,147		21,779				10.9	%
Non-Same Store
Property operating expenses (4)		1,528		583			N/M
Real estate taxes and insurance		965		317			N/M
Property management fees (2)		229		63			N/M
Property general and administrative expenses (5)		198		66			N/M
Non-Same Store operating expenses		2,920		1,029			N/M
Total operating expenses		27,067		22,808				18.7	%
Operating income
Same Store
Miscellaneous income		136		167		)		-18.6	%
Non-Same Store
Miscellaneous income		11		305		)	N/M
Total operating income		147		472		)		-68.9	%
NOI
Same Store		33,702		28,943				16.4	%
Non-Same Store		5,144		1,284			N/M
Total NOI (6)	$	38,846	$	30,227				28.5	%

All values are in US Dollars.

(1)	For the three months ended June 30, 2022 and 2021, excludes approximately $361,000 and $(425,000), respectively, of casualty-related expenses/(recoveries).
(2)	Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.
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NXRT.NEXPOINT.COM	Page 13
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

(3)	For the three months ended June 30, 2022 and 2021, excludes approximately $578,000 and $491,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
(4)	For the three months ended June 30, 2022 and 2021, excludes approximately $2,231,000 and $2,000, respectively, of casualty-related expenses.
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(5)	For the three months ended June 30, 2022 and 2021, excludes approximately $102,000 and $81,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
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(6)	For additional information regarding NOI, see the “Definitions and Reconciliations of Non-GAAP Measures” and “NOI and Same Store NOI” sections of this release.
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The following table contains additional information about our Q2 Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the three months ended June 30, 2022 and 2021 (dollars in thousands, except for per unit data):

	Q2 2022			Q2 2021
Same Store Total Units		13,433			13,386
Same Store Occupied Units		12,693			12,854
Same Store Ending Occupancy		94.5	%		96.0	%	-1.5	%
Same Store Average Rent per Unit	$	1,385		$	1,162		19.2	%
Same Store Revenues
Same Store Rental Income	$	56,206		$	49,086		14.5	%
Same Store Other Income		1,507			1,469		2.6	%
Total Same Store Revenues		57,713			50,555		14.2	%
Same Store Operating Expenses
Payroll		4,792			4,368		9.7	%
Repairs & Maintenance		5,137			4,277		20.1	%
Utilities		2,654			2,368		12.1	%
Real Estate Taxes		7,188			6,964		3.2	%
Insurance		1,378			1,227		12.3	%
Property Management Fees		1,683			1,453		15.8	%
Office Operations		847			747		13.4	%
Marketing		468			375		24.8	%
Total Same Store Operating Expenses		24,147			21,779		10.9	%
Same Store Operating Income
Miscellaneous income		136			167		-18.6	%
Total Same Store Operating Income		136			167		-18.6	%
Q2 Same Store NOI	$	33,702		$	28,943		16.4	%
NXRT.NEXPOINT.COM	Page 14
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Q2 Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)

Properties by Market (1)	Unit Count	Average Effective Rent			Occupancy			Total Rental Income
	Total	Q2 2022	Q2 2021	% Change	Q2 2022	Q2 2021	bps ∆	Q2 2022	Q2 2021	% Change
Texas
Dallas	2,367	$1,175	$996	18.0%	93.8%	95.9%	-210	$8,631	$7,806	10.6%
Houston	1,178	1,245	1,112	12.0%	95.1%	95.3%	-20	4,513	4,090	10.3%
Average/Total	3,545	1,198	1,034	15.9%	94.2%	95.7%	-150	13,144	11,896	10.5%
North Carolina
Charlotte	562	1,213	1,038	16.9%	95.2%	96.6%	-140	1,972	1,813	8.8%
Average/Total	562	1,213	1,038	16.9%	95.2%	96.6%	-140	1,972	1,813	8.8%
Georgia
Atlanta	1,457	1,367	1,176	16.2%	94.2%	95.5%	-130	5,791	5,020	15.4%
Average/Total	1,457	1,367	1,176	16.2%	94.2%	95.5%	-130	5,791	5,020	15.4%
Tennessee
Nashville	1,322	1,215	1,032	17.7%	96.7%	96.3%	40	5,209	4,422	17.8%
Average/Total	1,322	1,215	1,032	17.7%	96.7%	96.3%	40	5,209	4,422	17.8%
Florida
Orlando	1,172	1,448	1,187	22.0%	95.6%	96.2%	-60	5,096	4,318	18.0%
Tampa	576	1,297	1,020	27.2%	95.0%	97.0%	-200	2,253	1,851	21.7%
South Florida	1,957	1,842	1,510	22.0%	96.0%	96.0%	0	10,959	9,172	19.5%
Average/Total	3,705	1,633	1,332	22.6%	95.7%	96.2%	-50	18,308	15,341	19.3%
Arizona
Phoenix	1,679	1,429	1,169	22.2%	92.5%	96.7%	-420	7,388	6,377	15.9%
Average/Total	1,679	1,429	1,169	22.2%	92.5%	96.7%	-420	7,388	6,377	15.9%
Nevada
Las Vegas	1,163	1,390	1,188	17.0%	91.8%	95.6%	-380	4,394	4,217	4.2%
Average/Total	1,163	1,390	1,188	17.0%	91.8%	95.6%	-380	4,394	4,217	4.2%
Average/Total	13,433	$1,385	$1,162	19.2%	94.5%	96.0%	-150	$56,206	$49,086	14.5%
(1)	This table only includes the 34 properties in our Q2 Same Store pool.
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NXRT.NEXPOINT.COM	Page 15
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

QoQ Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)

Properties by Market (1)	Unit Count	Average Effective Rent			Occupancy			Total Rental Income
	Total	Q2 2022	Q1 2022	% Change	Q2 2022	Q1 2022	bps ∆	Q2 2022	Q1 2022	% Change
Texas
Dallas	2,367	$1,175	$1,122	4.7%	93.8%	93.6%	20	$8,631	$8,492	1.6%
Houston	1,178	1,245	1,203	3.5%	95.1%	93.7%	140	4,513	4,328	4.3%
Average/Total	3,545	1,198	1,149	4.3%	94.2%	93.7%	50	13,144	12,820	2.5%
North Carolina
Charlotte	562	1,213	1,150	5.5%	95.2%	95.2%	0	1,972	1,945	1.4%
Average/Total	562	1,213	1,150	5.5%	95.2%	95.2%	0	1,972	1,945	1.4%
Georgia
Atlanta	1,457	1,367	1,311	4.3%	94.2%	94.6%	-40	5,791	5,520	4.9%
Average/Total	1,457	1,367	1,311	4.3%	94.2%	94.6%	-40	5,791	5,520	4.9%
Tennessee
Nashville	1,322	1,215	1,160	4.7%	96.7%	94.9%	180	5,209	4,931	5.6%
Average/Total	1,322	1,215	1,160	4.7%	96.7%	94.9%	180	5,209	4,931	5.6%
Florida
Orlando	1,172	1,448	1,344	7.7%	95.6%	95.2%	40	5,096	4,828	5.6%
Tampa	576	1,297	1,216	6.7%	95.0%	93.9%	110	2,253	2,096	7.5%
South Florida	1,957	1,842	1,723	6.9%	96.0%	94.9%	110	10,959	10,433	5.0%
Average/Total	3,705	1,633	1,524	7.2%	95.7%	94.9%	80	18,308	17,357	5.5%
Arizona
Phoenix	1,679	1,429	1,335	7.0%	92.5%	95.3%	-280	7,388	7,090	4.2%
Average/Total	1,679	1,429	1,335	7.0%	92.5%	95.3%	-280	7,388	7,090	4.2%
Nevada
Las Vegas	1,163	1,390	1,328	4.7%	91.8%	92.3%	-50	4,394	4,458	-1.4%
Average/Total	1,163	1,390	1,328	4.7%	91.8%	92.3%	-50	4,394	4,458	-1.4%
Average/Total	13,433	$1,385	$1,310	5.7%	94.5%	94.5%	0	$56,206	$54,121	3.9%
(1)	This table only includes the 34 properties in our Q2 Same Store pool.
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NXRT.NEXPOINT.COM	Page 16
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

YTD Same Store Results of Operations for the Six Months Ended June 30, 2022 and 2021

There are 34 properties encompassing 13,433 units of apartment space, or approximately 87% of our Portfolio, in our same store pool for the six months ended June 30, 2022 and 2021 (our “YTD Same Store” properties). Our YTD Same Store properties exclude the following 7 properties in our Portfolio as of June 30, 2022: Cutter’s Point, The Verandas at Lake Norman, Creekside at Matthews, Six Forks Station, High House at Cary, The Adair, and Estates on Maryland, as well as the 67 units mentioned on page 2 that are currently down.

As of June 30, 2022, our YTD Same Store properties were approximately 94.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,385, a year-over-year decrease of 150 bps and an increase of $223, respectively.

The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2022 and 2021 for our YTD Same Store and Non-Same Store properties (dollars in thousands):

	For the Six Months Ended June 30,
	2022		2021		Change		% Change
Revenues
Same Store
Rental income	$	110,328	$	97,521				13.1	%
Other income		2,889		2,912		)		-0.8	%
Same Store revenues		113,217		100,433				12.7	%
Non-Same Store
Rental income		13,121		3,866			N/M
Other income		214		60			N/M
Non-Same Store revenues		13,335		3,926			N/M
Total revenues		126,552		104,359				21.3	%
Operating expenses
Same Store
Property operating expenses (1)		24,152		21,578				11.9	%
Real estate taxes and insurance		16,676		16,597				0.5	%
Property management fees (2)		3,289		2,876				14.4	%
Property general and administrative expenses (3)		2,557		2,237				14.3	%
Same Store operating expenses		46,674		43,288				7.8	%
Non-Same Store
Property operating expenses (4)		2,505		1,168			N/M
Real estate taxes and insurance		1,575		633			N/M
Property management fees (2)		380		125			N/M
Property general and administrative expenses (5)		335		134			N/M
Non-Same Store operating expenses		4,795		2,060			N/M
Total operating expenses		51,469		45,348				13.5	%
Operating income
Same Store
Miscellaneous income		314		295				6.4	%
Non-Same Store
Miscellaneous income		14		645		)	N/M
Total operating income		328		940		)		-65.1	%
NOI
Same Store		66,857		57,440				16.4	%
Non-Same Store		8,554		2,511			N/M
Total NOI (6)	$	75,411	$	59,951				25.8	%

All values are in US Dollars.

(1)	For the six months ended June 30, 2022 and 2021, excludes approximately $1,315,000 and $368,000, respectively, of casualty-related recoveries.
(2)	Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.
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NXRT.NEXPOINT.COM	Page 17
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

(3)	For the six months ended June 30, 2022 and 2021, excludes approximately $1,187,000 and $812,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
(4)	For the six months ended June 30, 2022 and 2021, excludes approximately $(44,000) and $11,000, respectively, of casualty-related expenses/(recoveries).
---	---
(5)	For the six months ended June 30, 2022 and 2021, excludes approximately $120,000 and $136,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
---	---
(6)	For additional information regarding NOI, see the “Definitions and Reconciliations of Non-GAAP Measures” and “NOI and Same Store NOI” sections of this release.
---	---

The following table contains additional information about our YTD Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the six months ended June 30, 2022 and 2021 (dollars in thousands, except for per unit data):

	YTD 2022			YTD 2021
Same Store Total Units		13,433			13,386
Same Store Occupied Units		12,693			12,854
Same Store Ending Occupancy		94.5	%		96.0	%	-1.5	%
Same Store Average Rent per Unit	$	1,385		$	1,162		19.2	%
Same Store Revenues
Same Store Rental Income	$	110,328		$	97,521		13.1	%
Same Store Other Income		2,889			2,912		-0.8	%
Total Same Store Revenues		113,217			100,433		12.7	%
Same Store Operating Expenses
Payroll		9,373			8,644		8.4	%
Repairs & Maintenance		9,553			8,285		15.3	%
Utilities		5,226			4,649		12.4	%
Real Estate Taxes		14,023			14,217		-1.4	%
Insurance		2,653			2,380		11.5	%
Property Management Fees		3,289			2,876		14.4	%
Office Operations		1,647			1,470		12.0	%
Marketing		910			767		18.6	%
Total Same Store Operating Expenses		46,674			43,288		7.8	%
Same Store Operating Income
Miscellaneous income		314			295		6.4	%
Total Same Store Operating Income		314			295		6.4	%
YTD Same Store NOI	$	66,857		$	57,440		16.4	%
NXRT.NEXPOINT.COM	Page 18
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

FFO, Core FFO and AFFO

The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021			% Change (1)
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)		21.1	%
Depreciation and amortization			25,548			19,986			49,266			40,744			20.9	%
Adjustment for noncontrolling interests			(72	)		(50	)		(129	)		(91	)		41.8	%
FFO attributable to common stockholders			17,649			16,518			36,643			30,335			20.8	%
FFO per share - basic		$	0.69		$	0.66		$	1.43		$	1.21			18.2	%
FFO per share - diluted		$	0.69		$	0.66		$	1.43		$	1.21			18.2	%
Loss on extinguishment of debt and modification costs			—			328			—			328		N/M
Casualty-related expenses/(recoveries)			2,592			(435	)		3,642			(392	)	N/M
Casualty gains			(229	)		(2,379	)		(357	)		(2,379	)	N/M
Pandemic expense			—			12			—			35		N/M
Amortization of deferred financing costs - acquisition term notes			326			140			505			349			44.7	%
Adjustment for noncontrolling interests			(10	)		7			(14	)		6		N/M
Core FFO attributable to common stockholders			20,328			14,191			40,419			28,282			42.9	%
Core FFO per share - basic		$	0.79		$	0.56		$	1.58		$	1.13			39.8	%
Core FFO per share - diluted		$	0.79		$	0.56		$	1.58		$	1.13			39.8	%
Amortization of deferred financing costs - long term debt			408			355			794			707			12.3	%
Equity-based compensation expense			2,005			1,796			3,881			3,404			14.0	%
Adjustment for noncontrolling interests			(11	)		(6	)		(17	)		(12	)		41.7	%
AFFO attributable to common stockholders			22,730			16,336			45,077			32,381			39.2	%
AFFO per share - basic		$	0.89		$	0.65		$	1.76		$	1.29			36.4	%
AFFO per share - diluted		$	0.89		$	0.65		$	1.76		$	1.29			36.4	%
Weighted average common stock outstanding - basic			25,672			25,140			25,646			25,104			2.2	%
Weighted average common stock outstanding - diluted			25,672			25,140			25,646			25,104			2.2	%
Dividends declared per common share		$	0.38		$	0.34		$	0.76		$	0.68			11.4	%
FFO Coverage - diluted	(2)	1.81x			1.93x			1.88x			1.77x				6.13	%
Core FFO Coverage - diluted	(2)	2.08x			1.65x			2.08x			1.66x				25.56	%
AFFO Coverage - diluted	(2)	2.33x			1.90x			2.32x			1.89x				22.52	%
(1)	Represents the percentage change for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.
---	---
(2)	Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.
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NXRT.NEXPOINT.COM	Page 19
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Capital Expenditures

		Q2 2021				YTD 2022		YTD 2021
( in thousands)
Capital Expenditures
Acquisition Capital Expenditures	143,400	$	121,500	18.0	%	$	289,510	$	84,480	242.7	%
Capitalized Rehab Expenditures
Interior	5,924		3,027	95.7	%		11,278		10,093	11.7	%
Exterior and common area	2,437		2,321	5.0	%		7,773		20,447	-62.0	%
Capitalized Maintenance Expenditures
Recurring	2,993		2,011	48.8	%		6,191		5,417	14.3	%
Non-Recurring	2,166		1,142	89.7	%		4,891		3,746	30.6	%
Total Capital Expenditures	156,920	$	130,001	20.7	%	$	319,642	$	124,183	157.4	%

All values are in US Dollars.

NXRT.NEXPOINT.COM	Page 20

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Interiors (Full & Partials)

Property Name (1)	Units			Average Rent<br><br><br>Pre-Rehab		Average Rent<br><br><br>Post-Rehab		Avg. Rehab<br><br><br>Cost<br><br><br>Per Unit (3)
Value-Add Programs In Progress
Arbors of Brentwood		346	81	$	1,214	$	1,381	$	9,094	13.7	%	22.0	%
Arbors on Forest Ridge		210	169		793		894		4,422	12.8	%	27.5	%
Atera Apartments		380	198		1,152		1,300		3,315	12.9	%	53.8	%
Avant at Pembroke Pines		1,520	392		1,681		1,935		14,087	15.1	%	21.6	%
Bella Solara		320	90		1,279		1,440		10,264	12.6	%	18.8	%
Bella Vista		248	149		1,417		1,571		10,564	10.9	%	17.5	%
Bloom		528	72		1,252		1,408		12,088	12.5	%	15.5	%
Brandywine I & II		632	317		1,018		1,173		8,535	15.2	%	21.8	%
Courtney Cove		324	219		903		1,006		4,922	11.4	%	25.1	%
Creekside at Matthews		240	29		1,381		1,544		10,533	11.8	%	18.6	%
Cutter's Point		196	140		956		1,073		5,825	12.3	%	24.2	%
Estates on Maryland		330	3		1,300		1,495		11,099	15.0	%	21.1	%
Fairways of San Marcos		352	82		1,502		1,683		10,643	12.1	%	20.5	%
High House at Cary		302	14		1,568		1,827		9,763	16.5	%	31.9	%
Hollister Place		260	202		904		1,055		7,413	16.7	%	24.4	%
Madera Point		256	239		852		960		4,237	12.7	%	30.6	%
Parc500		217	190		1,242		1,428		14,103	15.0	%	15.9	%
Radbourne Lake		225	323		1,031		1,080		1,374	4.7	%	42.5	%
Residences at Glenview Reserve		360	134		1,116		1,291		11,660	15.7	%	18.0	%
Residences at West Place		342	78		1,415		1,587		9,019	12.1	%	22.8	%
Rockledge Apartments		708	327		1,156		1,353		10,318	17.0	%	22.8	%
Sabal Palm at Lake Buena Vista		400	37		1,529		1,644		1,064	7.5	%	129.8	%
Seasons 704 Apartments		222	206		1,152		1,272		6,348	10.4	%	22.7	%
Silverbrook		642	476		800		886		4,083	10.8	%	25.3	%
Six Forks Station		323	47		1,124		1,353		12,588	20.4	%	21.9	%
Summers Landing		196	20		910		1,076		7,586	18.3	%	26.3	%
Summit at Sabal Park		252	217		961		1,062		5,701	10.6	%	21.4	%
The Adair		232	18		1,562		1,791		11,391	14.6	%	24.1	%
The Cornerstone		430	363		951		1,040		5,365	9.3	%	19.8	%
The Enclave		204	135		1,414		1,596		9,628	12.9	%	22.7	%
The Heritage		204	133		1,351		1,503		10,501	11.2	%	17.3	%
The Preserve at Terrell Mill		752	610		834		988		10,107	18.5	%	18.4	%
The Verandas at Lake Norman		264	23		1,450		1,632		10,365	12.5	%	21.0	%
The Venue on Camelback		415	208		736		989		9,924	34.4	%	30.6	%
Timber Creek		352	232		880		1,022		7,526	16.2	%	22.7	%
Torreyana Apartments		316	33		1,478		1,598		12,205	8.1	%	11.8	%
Venue at 8651		333	272		803		911		6,716	13.4	%	19.3	%
Versailles		388	296		801		899		6,111	12.2	%	19.3	%
Versailles II		242	60		936		1,061		4,712	13.4	%	32.0	%
Total/Weighted Average		14,463	6,834	$	1,029	$	1,171	$	7,784	13.8	%	21.8	%
(1)	We do not plan to upgrade 100% of the units at each of our properties.
---	---
(2)	Inclusive of all full and partial interior upgrades completed through June 30, 2022.
---	---
(3)	Inclusive of all full and partial interior upgrades completed and leased through June 30, 2022.
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NXRT.NEXPOINT.COM	Page 21
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Kitchen & Laundry Appliances

Property Name (1)			Avg. Rehab<br><br><br>Cost<br><br><br>Per Unit (3)
Value-Add Programs In Progress
Arbors of Brentwood	346	291	$	835	71.6	%
Arbors on Forest Ridge	210	115		726	66.7	%
Atera Apartments	380	357		806	59.8	%
Avant at Pembroke Pines	1,520	50		789	58.9	%
Brandywine I & II	632	115		1,061	89.4	%
Creekside at Matthews	240	91		1,086	60.7	%
Cutter's Point	196	132		732	74.9	%
Estates on Maryland	330	24		1,100	38.2	%
Hollister Place	260	227		961	62.4	%
Madera Point	256	156		885	40.2	%
Radbourne Lake	225	224		717	66.9	%
Rockledge Apartments	708	590		807	59.5	%
Sabal Palm at Lake Buena Vista	400	634		599	171.8	%
Silverbrook	642	373		731	79.8	%
Six Forks Station	323	150		1,100	60.0	%
Summers Landing	196	76		801	74.9	%
Summit at Sabal Park	252	235		991	48.5	%
The Adair	232	11		1,100	49.1	%
The Cornerstone	430	17		809	74.2	%
The Verandas at Lake Norman	264	79		1,091	49.5	%
Timber Creek	352	135		758	71.3	%
Venue at 8651	333	224		723	76.5	%
Versailles	388	295		864	68.9	%
Versailles II	242	123		880	37.9	%
Total/Weighted Average	9,357	4,724	$	832	69.7	%

All values are in US Dollars.

(1)	We do not plan to upgrade 100% of the units at each of our properties.
(2)	Inclusive of all kitchen and laundry appliance upgrades completed through June 30, 2022.
---	---
(3)	Inclusive of all kitchen and laundry appliance upgrades completed and leased through June 30, 2022.
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NXRT.NEXPOINT.COM	Page 22
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Smart Home Technology Packages

Property Name (1)			Avg. Rehab<br><br><br>Cost<br><br><br>Per Unit (3)		Post-Rehab<br>Rent<br>Change	ROI (3)
Value-Add Programs In Progress
Arbors of Brentwood	346	346	$	1,419			27.6	%
Arbors on Forest Ridge	210	210		1,416			27.7	%
Atera Apartments	380	380		1,339			33.5	%
Avant at Pembroke Pines	1,520	1,520		1,350			29.0	%
Bella Vista	248	248		970			43.3	%
Brandywine I & II	632	632		1,234			31.7	%
Courtney Cove	324	324		1,238			22.4	%
Cutter's Point	196	196		1,400			28.0	%
Fairways of San Marcos	352	352		901			19.7	%
Hollister Place	260	260		843			47.3	%
Madera Point	256	256		1,283			30.5	%
Old Farm	734	734		928			55.3	%
Radbourne Lake	225	225		630			50.0	%
Residences at Glenview Reserve	360	360		1,017			46.9	%
Sabal Palm at Lake Buena Vista	400	400		1,237			31.7	%
Silverbrook	642	642		1,308			29.9	%
Stone Creek at Old Farm	190	190		909			56.5	%
Summers Landing	196	196		1,449			27.0	%
The Cornerstone	430	430		1,236			31.7	%
The Enclave	204	204		966			43.5	%
The Heritage	204	204		997			42.1	%
Timber Creek	352	352		1,299			30.2	%
Venue at 8651	333	333		1,229			31.9	%
Versailles	388	388		1,080			36.3	%
Versailles II	242	242		1,241			31.6	%
Total/Weighted Average	9,624	9,624	$	1,185			33.5	%
Planned Value-Add Programs					Rent Change & ROI<br>(Projections)
Bella Solara	320	—	TBD		TBD	TBD
Bloom	528	—	TBD		TBD	TBD
Creekside at Matthews	240	—	TBD		TBD	TBD
Residences at West Place	342	—	TBD		TBD	TBD
Rockledge Apartments	708	—	TBD		TBD	TBD
Seasons 704 Apartments	222	—	TBD		TBD	TBD
Six Forks Station	323	—	TBD		TBD	TBD
Summit at Sabal Park	252	—	TBD		TBD	TBD
The Adair	232	—	TBD		TBD	TBD
The Preserve at Terrell Mill	752	—	TBD		TBD	TBD
The Venue on Camelback	415	—	TBD		TBD	TBD
The Verandas at Lake Norman	264	—	TBD		TBD	TBD
Torreyana Apartments	316	—	TBD		TBD	TBD
Total/Weighted Average Planned	4,914	—	TBD		TBD	TBD

All values are in US Dollars.

(1)	We do not plan to upgrade 100% of the units at each of our properties.
(2)	Inclusive of all smart home technology package upgrades completed through June 30, 2022.
---	---
(3)	Inclusive of all smart home technology package upgrades completed and leased through June 30, 2022.
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NXRT.NEXPOINT.COM	Page 23
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Outstanding Debt Details

Mortgage Debt

The following table contains summary information concerning the mortgage debt of the Company as of June 30, 2022 (dollars in thousands):

Operating Properties		Outstanding<br><br><br>Principal (1)			Interest Rate (2)	Maturity Date
Arbors on Forest Ridge	84	$	13,130		3.47%	7/1/2024
Cutter's Point	84		16,640		3.47%	7/1/2024
Silverbrook	84		30,590		3.47%	7/1/2024
The Summit at Sabal Park	84		13,560		3.41%	7/1/2024
Courtney Cove	84		13,680		3.41%	7/1/2024
The Preserve at Terrell Mill	84		42,480		3.41%	7/1/2024
Versailles	84		23,880		3.41%	7/1/2024
Seasons 704 Apartments	84		17,460		3.41%	7/1/2024
Madera Point	84		15,150		3.41%	7/1/2024
Venue at 8651	84		13,734		3.57%	7/1/2024
The Venue on Camelback	84		28,093		3.47%	7/1/2024
Old Farm	84		52,886		3.47%	7/1/2024
Stone Creek at Old Farm	84		15,274		3.47%	7/1/2024
Timber Creek	84		24,100		3.05%	10/1/2025
Radbourne Lake	84		20,000		3.08%	10/1/2025
Sabal Palm at Lake Buena Vista	84		42,100		3.09%	9/1/2025
Cornerstone	120		20,545		4.24%	3/1/2023
Parc500	120		14,517		4.49%	8/1/2025
Hollister Place	84		14,811		3.13%	10/1/2025
Rockledge Apartments	84		68,100		3.36%	7/1/2024
Atera Apartments	84		29,500		3.27%	11/1/2024
Crestmont Reserve	84		12,061		2.97%	10/1/2025
Brandywine I & II	84		43,835		2.97%	10/1/2025
Bella Vista	84		29,040		3.11%	2/1/2026
The Enclave	84		25,322		3.11%	2/1/2026
The Heritage	84		24,625		3.11%	2/1/2026
Summers Landing	84		10,109		2.97%	10/1/2025
Residences at Glenview Reserve	84		26,108		3.23%	10/1/2025
Residences at West Place	120		33,817		4.24%	10/1/2028
Avant at Pembroke Pines	84		177,100		3.22%	9/1/2026
Arbors of Brentwood	84		34,237		3.22%	10/1/2026
Torreyana Apartments	84		37,400		3.49%	12/1/2026
Bloom	84		58,850		3.49%	12/1/2026
Bella Solara	84		36,575		3.49%	12/1/2026
Fairways at San Marcos	84		46,464		3.22%	12/1/2027
The Verandas at Lake Norman	84		34,925		2.94%	7/1/2028
Creekside at Matthews	84		31,900		2.94%	7/1/2028
Six Forks Station	120		41,180		2.80%	10/1/2031
High House at Cary	84		46,625		3.10%	1/1/2029
The Adair	84		35,115		3.06%	4/1/2029
Estates on Maryland	84		43,157		3.06%	4/1/2029
		$	1,358,675
Fair market value adjustment			958
Deferred financing costs, net of accumulated amortization of 5,943			(8,461	)
		$	1,351,172

All values are in US Dollars.

(1)	Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.
(2)	Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. One-month LIBOR was 1.79% and 30-Day Average SOFR was 1.09% as of June 30, 2022.
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NXRT.NEXPOINT.COM	Page 24
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Credit Facility

The following table contains summary information concerning the Company’s credit facility as of June 30, 2022 (dollars in thousands):

		Outstanding<br><br><br>Principal			Interest Rate (1)	Maturity Date
Corporate Credit Facility	36	$	335,000		3.94%	6/30/2024
Deferred financing costs, net of accumulated amortization of 685			(1,797	)
		$	333,203

All values are in US Dollars.

(1)	Interest rate is based on Term SOFR plus an applicable margin. Term SOFR as of June 30, 2022 was 1.69%.

Interest Rate Swap Agreements

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount
July 1, 2017	July 1, 2022	KeyBank		100,000	1.7820	%
June 1, 2019	June 1, 2024	KeyBank		50,000	2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000	2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000	1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000	1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500	1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000	0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000	0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000	0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000	0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000	0.6140	%
			$	1,267,500	1.1245	%	(2)
(1)	The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.
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(2)	Represents the weighted average fixed rate of the interest rate swaps.
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The following table contains summary information regarding our forward interest rate swap (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount
September 1, 2026	January 1, 2027	KeyBank	$	92,500	1.7980	%
(1)	The floating rate option for the interest rate swap is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.
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NXRT.NEXPOINT.COM	Page 25
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Debt Maturity Schedule

The following table summarizes our contractual obligations and commitments as of June 30, 2022 for the next five calendar years subsequent to June 30, 2022 and thereafter. We used the applicable reference rates as of June 30, 2022 to calculate interest expense due by period on our floating rate debt and net interest expense due by period on our interest rate swaps.

		Payments Due by Period (in thousands)
		Total		2022		2023		2024		2025		2026		Thereafter
Operating Properties Mortgage Debt
Principal payments		$	1,358,675	$	650	$	21,003	$	394,952	$	205,738	$	423,149	$	313,183
Interest expense	(1)		143,022		18,539		36,018		29,288		22,626		15,672		20,879
Total		$	1,501,697	$	19,189	$	57,021	$	424,240	$	228,364	$	438,821	$	334,062
Credit Facility
Principal payments		$	335,000	$	—	$	—	$	335,000	$	—	$	—	$	—
Interest expense			28,436		7,148		14,231		7,057		—		—		—
Total		$	363,436	$	7,148	$	14,231	$	342,057	$	—	$	—	$	—
Total contractual obligations and commitments		$	1,865,133	$	26,337	$	71,252	$	766,297	$	228,364	$	438,821	$	334,062
(1)	Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of June 30, 2022, we had entered into 11 interest rate swap transactions with a combined notional amount of $1.3 billion. We have allocated the total impact of expected settlements on the $1.3 billion notional amount of interest rate swaps to ‘Operating Properties Mortgage Debt.’ We used the applicable reference rates as of June 30, 2022 to determine our expected settlements through the terms of the interest rate swaps.
---	---

(1)

As of June 30, 2022, we had total indebtedness of $1.7 billion at an adjusted weighted average interest rate of 2.90%, of which $1.6 billion was debt with a floating interest rate. As of June 30, 2022, interest rate swap agreements effectively covered 98% of our $1.3 billion of floating rate mortgage debt outstanding. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.1245% for one-month LIBOR on the $1.3 billion notional amount of interest rate swap agreements that we have entered into as of June 30, 2022.

NXRT.NEXPOINT.COM

Page 26

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Acquisition Details

(in thousands, except for unit and per unit amounts)
Property Name (1)	Location	Units	Transaction Date	Purchase Price	Rehab Budget (2)	Total Investment	Per Unit
Arbors on Forest Ridge	Bedford, TX	210	1/31/2014	$12,805	$1,449	$14,254	$67,876
Cutter's Point	Richardson, TX	196	1/31/2014	15,845	1,357	17,202	87,765
Silverbrook	Grand Prairie, TX	642	1/31/2014	30,400	1,661	32,061	49,939
The Summit at Sabal Park	Tampa, FL	252	8/20/2014	19,050	1,656	20,706	82,167
Courtney Cove	Tampa, FL	324	8/20/2014	18,950	1,691	20,641	63,707
Radbourne Lake	Charlotte, NC	225	9/30/2014	24,250	1,438	25,688	114,169
Timber Creek	Charlotte, NC	352	9/30/2014	22,750	4,334	27,084	76,943
Sabal Palm at Lake Buena Vista	Orlando, FL	400	11/5/2014	49,500	1,346	50,846	127,115
Cornerstone	Orlando, FL	430	1/15/2015	31,550	2,662	34,212	79,563
The Preserve at Terrell Mill	Marietta, GA	752	2/6/2015	58,000	6,688	64,688	86,021
Versailles	Dallas, TX	388	2/26/2015	26,165	3,917	30,082	77,531
Seasons 704 Apartments	West Palm Beach, FL	222	4/15/2015	21,000	1,900	22,900	103,153
Madera Point	Mesa, AZ	256	8/5/2015	22,525	1,808	24,333	95,051
Venue at 8651	Fort Worth, TX	333	10/30/2015	19,250	4,592	23,842	71,598
Parc500	West Palm Beach, FL	217	7/27/2016	22,421	5,082	27,503	126,742
The Venue on Camelback	Phoenix, AZ	415	10/11/2016	44,600	6,018	50,618	121,971
Old Farm	Houston, TX	734	12/29/2016	84,721	1,135	85,856	116,970
Stone Creek at Old Farm	Houston, TX	190	12/29/2016	23,332	456	23,788	125,200
Hollister Place	Houston, TX	260	2/1/2017	24,500	2,952	27,452	105,585
Rockledge Apartments	Marietta, GA	708	6/30/2017	113,500	7,685	121,185	171,165
Atera Apartments	Dallas, TX	380	10/25/2017	59,200	3,721	62,921	165,582
Crestmont Reserve	Dallas, TX	242	9/26/2018	24,680	2,797	27,477	113,541
Brandywine I & II	Nashville, TN	632	9/26/2018	79,800	7,762	87,562	138,547
Bella Vista	Phoenix, AZ	248	1/28/2019	48,400	3,414	51,814	208,927
The Enclave	Tempe, AZ	204	1/28/2019	41,800	2,608	44,408	217,686
The Heritage	Phoenix, AZ	204	1/28/2019	41,900	2,660	44,560	218,431
Summers Landing	Fort Worth, TX	196	6/7/2019	19,396	2,980	22,376	114,163
Residences at Glenview Reserve	Nashville, TN	360	7/17/2019	45,000	5,695	50,695	140,819
Residences at West Place	Orlando, FL	342	7/17/2019	55,000	4,129	59,129	172,892
Avant at Pembroke Pines	Pembroke Pines, FL	1,520	8/30/2019	322,000	32,583	354,583	233,278
Arbors of Brentwood	Nashville, TN	346	9/10/2019	62,250	4,248	66,498	192,191
Torreyana Apartments	Las Vegas, NV	316	11/22/2019	68,000	2,771	70,771	223,959
Bloom	Las Vegas, NV	528	11/22/2019	106,500	4,786	111,286	210,769
Bella Solara	Las Vegas, NV	320	11/22/2019	66,500	3,642	70,142	219,194
Fairways at San Marcos	Chandler, AZ	352	11/2/2020	84,480	4,482	88,962	252,733
The Verandas at Lake Norman	Cornelius, NC	264	6/30/2021	63,500	4,628	68,128	258,061
Creekside at Matthews	Matthews, NC	240	6/30/2021	58,000	3,943	61,943	258,096
Six Forks Station	Raleigh, NC	323	9/10/2021	74,760	6,431	81,191	251,365
High House at Cary	Cary, NC	302	12/7/2021	93,250	1,677	94,927	314,328
The Adair	Sandy Springs, GA	232	4/1/2022	65,500	5,390	70,890	305,560
Estates on Maryland	Phoenix, AZ	330	4/1/2022	77,900	4,636	82,536	250,109
Total/Weighted Average		15,387		$2,242,930	$174,810	$2,417,740	$157,129
(1)	Only includes properties owned as of June 30, 2022.
---	---
(2)	Includes interior and exterior rehab.
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NXRT.NEXPOINT.COM	Page 27
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Disposition Details

(in thousands, except unit and per unit amounts)
Property Name	Location	Units		Purchase<br><br><br>Price		Sale<br><br><br>Price		Per Unit		Sale Date	Net Cash<br><br><br>Proceeds (1)		Gain on<br><br><br>Sale
Meridian	Austin, TX		200	$	12,300	$	17,250	$	86,250	5/10/2016	$	16,981	$	4,786
Park at Regency and Mandarin Reserve	Jacksonville, FL		679		34,500		47,000		69,219	6/6/2016		46,239		11,584
Park at Blanding and Colonial Forest	Jacksonville, FL		291		12,000		14,500		49,828	8/31/2016		14,259		2,007
Willowdale Crossings	Frederick, MD		432		41,000		45,200		104,630	9/15/2016		44,439		5,576
Jade Park	Dayton Beach, FL		144		7,800		10,000		69,444	9/30/2016		9,868		1,979
The Miramar Apartments	Dallas, TX		314		8,875		16,550		52,707	4/3/2017		16,326		6,368
Toscana	Dallas, TX		192		8,875		13,250		69,010	4/3/2017		13,040		4,283
The Grove at Alban	Frederick, MD		290		23,050		27,500		94,828	4/3/2017		27,021		4,514
Twelve 6 Ten at the Park	Dallas, TX		402		20,984		26,600		66,169	4/27/2017		26,349		4,731
Regatta Bay	Seabrook, TX		240		18,200		28,200		117,500	7/14/2017		27,670		10,423
NAVA Portfolio (2)	Atlanta, GA		1,100		66,200		116,000		105,455	9/27/2017		114,010		48,046
Timberglen	Dallas, TX		304		16,950		30,000		98,684	1/31/2018		29,553		13,742
Edgewater at Sandy Springs	Atlanta, GA		760		58,000		101,250		133,224	8/28/2019		100,219		47,329
Belmont at Duck Creek	Garland, TX		240		18,525		29,500		122,917	8/28/2019		29,148		11,985
The Ashlar	Dallas, TX		264		16,235		29,400		111,364	8/28/2019		29,050		13,205
Heatherstone	Dallas, TX		152		9,450		16,275		107,072	8/28/2019		16,054		6,368
The Pointe at the Foothills	Mesa, AZ		528		52,275		85,400		161,742	8/28/2019		84,663		37,925
Abbington Heights	Antioch, TN		274		17,900		28,050		102,372	8/30/2019		27,630		10,888
Southpoint Reserve at Stoney Creek	Fredericksburg, VA		156		17,000		23,500		150,641	3/20/2020		23,176		5,469
Willow Grove	Nashville, TN		244		13,750		31,300		128,279	3/26/2020		31,005		17,513
Woodbridge	Nashville, TN		220		16,000		31,700		144,091	3/26/2020		31,237		15,990
Eagle Crest	Irving, TX		447		27,325		55,500		124,161	9/30/2020		54,779		30,160
Beechwood Terrace	Antioch, TN		300		21,400		53,600		178,667	11/1/2021		53,003		33,960
Cedar Pointe	Antioch, TN		210		26,500		37,650		179,286	11/1/2021		37,231		12,252
Total/Weighted Average			8,383	$	565,094	$	915,175	$	109,170		$	902,950	$	361,083
(1)	Represents sales price, net of closing costs.
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(2)	The NAVA Portfolio consists of The Arbors, The Crossings, The Crossings at Holcomb Bridge and The Knolls.
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NXRT.NEXPOINT.COM	Page 28
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Definitions and Reconciliations of Non-GAAP Measures

Definitions

This presentation contains non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are net operating income (“NOI”), funds from operations attributable to common stockholders (“FFO”), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO (“AFFO”), AFFO per diluted share and net debt.

NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, if applicable, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, if applicable, (6) casualty-related expenses/(recoveries) and casualty gains (losses), (7) pandemic expenses that are not reflective of continuing operations of the properties and (8) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. We define “Same Store NOI” as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.

FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, if applicable, plus real estate depreciation and amortization. We compute FFO in accordance with NAREIT’s definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the amount attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.

Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as losses on extinguishment of debt and modification costs (includes prepayment penalties and defeasance costs incurred on the early payment of debt, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt, costs incurred in connection with a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment that are expensed), if applicable, casualty-related expenses/and recoveries and gains (losses), pandemic expenses, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing, and the noncontrolling interests (as described above) related to these items.

AFFO makes certain adjustments to Core FFO. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, and the noncontrolling interests related to these items.

Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding.

We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts (“REITs”) among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.

NXRT.NEXPOINT.COM	Page 29

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Reconciliations

Reconciliation of Debt to Net Debt

(dollar amounts in thousands)	Q2 2022			Q2 2021
Total mortgage debt	$	1,358,675		$	1,234,515
Credit facilities		335,000			250,000
Total debt outstanding		1,693,675			1,484,515
Adjustments to arrive at net debt:
Cash and cash equivalents		(20,463	)		(70,282	)
Restricted cash held for value-add upgrades and green improvements		(19,333	)		(11,918	)
Net Debt	$	1,653,879		$	1,402,315
Enterprise Value (1)	$	3,256,879		$	2,785,315
Leverage Ratio		51	%		50	%
(1)	Enterprise Value is calculated as Market Capitalization plus Net Debt.
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Guidance Reconciliations of NOI, Same Store NOI, FFO, Core FFO and AFFO

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI to net income (loss) (the most directly comparable GAAP financial measure) for the periods presented below (in thousands):

		For the<br><br><br>Year Ended<br><br><br>December 31, 2022			For the<br><br><br>Three Months Ended<br><br><br>September 30, 2022
		Mid-Point (1)			Mid-Point (1)
Net income (loss)		$	81,399		$	(5,403	)
Adjustments to reconcile net income (loss) to NOI:
Advisory and administrative fees			7,652			1,984
Corporate general and administrative expenses			14,240			3,471
Property general and administrative expenses	(2)		6,249			650
Depreciation and amortization			97,367			24,606
Interest expense			53,114			14,629
Casualty-related recoveries			(357	)		—
Loss on extinguishment of debt and modification costs			940			—
Gain on sales of real estate			(104,909	)		—
NOI	(3)	$	155,695		$	39,937
Less Non-Same Store
Revenues	(4)		(46,637	)
Operating expenses	(4)		19,479
Same Store NOI	(4)	$	128,537
(1)	Mid-Point estimates shown for full year and third quarter 2022 guidance. Assumptions made for full year and third quarter 2022 NOI guidance include the Same Store operating growth projections included in the “2022 Full Year Guidance Summary” section of this release and the effect of the acquisition and dispositions throughout the fiscal year.
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(2)	Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
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(3)	2022 Pro Forma NOI assumes The Adair, Estates on Maryland, Old Farm, Stone Creek and Hollister Place were owned for the full year 2022.
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(4)	Amounts are derived from the results of operations of our pro forma Full Year 2022 Same Store properties and Non-Same Store properties. There are 31 properties in our pro forma Full Year 2022 Same Store pool.
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NXRT.NEXPOINT.COM	Page 30
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

The following table reconciles our FFO, Core FFO and AFFO guidance to our net income (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2022 (in thousands, except per share data):

	For the Year Ended<br><br><br>December 31, 2022
	Mid-Point
Net income	$	81,399
Depreciation and amortization		97,367
Gain on sales of real estate		(104,909	)
Adjustment for noncontrolling interests		(243	)
FFO attributable to common stockholders		73,614
FFO per share - diluted (1)	$	2.81
Loss on extinguishment of debt and modification costs		940
Casualty-related recoveries		3,281
Amortization of deferred financing costs - acquisition term notes		1,011
Pandemic expense		3
Adjustment for noncontrolling interests		(17	)
Core FFO attributable to common stockholders		78,833
Core FFO per share - diluted (1)	$	3.01
Amortization of deferred financing costs - long term debt		1,593
Equity-based compensation expense		7,876
Adjustment for noncontrolling interests		(34	)
AFFO attributable to common stockholders		88,268
AFFO per share - diluted (1)	$	3.37
Weighted average common shares outstanding - diluted		26,189
(1)	For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 26.2 million for the full year 2022.
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NXRT.NEXPOINT.COM	Page 31
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NOI and Same Store NOI

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Same Store NOI for the three months ended March 31, 2022 and the year ended December 31, 2021 to net income (loss), the most directly comparable GAAP financial measure (in thousands):

		For the<br><br><br>Three Months Ended<br><br><br>March 31, 2022			For the<br><br><br>Year Ended<br><br><br>December 31, 2021
Net income (loss)		$	(4,667	)	$	23,106
Adjustments to reconcile net income (loss) to NOI:
Advisory and administrative fees			1,843			7,631
Corporate general and administrative expenses			3,486			11,966
Casualty-related expenses/(recoveries)	(1)		1,047			(200	)
Casualty gains			(128	)		(2,595	)
Pandemic expense			3			50
Property general and administrative expenses	(2)		627			2,232
Depreciation and amortization			23,718			86,878
Interest expense			10,636			44,623
Loss on extinguishment of debt and modification costs			—			912
Gain on sales of real estate			—			(46,214	)
NOI		$	36,565		$	128,389
Less Non-Same Store
Revenues			(5,283	)		(19,157	)
Operating expenses			1,876			6,971
Operating income			(3	)		(871	)
Same Store NOI		$	33,155		$	115,332
(1)	Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries).
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(2)	Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
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NXRT.NEXPOINT.COM	Page 32
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