8-K
NexPoint Residential Trust, Inc. (NXRT)
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): May 7, 2020
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: (972) 628-4100
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 May 7, 2020, NexPoint Residential Trust, Inc. (the “Company”) announced financial results for the Company’s first quarter ended March 31, 2020. 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 Number | Exhibit Description |
|---|---|
| 99.1 | Press Release dated May 7, 2020 |
| 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: May 7, 2020
nxrt-ex991_6.htm
Exhibit 99.1
7 May 2020 | NYSE: NXRT
EARNINGS SUPPLEMENT: FIRST QUARTER 2020
NEXPOINT RESIDENTIAL TRUST, INC.
300 CRESCENT COURT, SUITE 700
DALLAS, TX 75201
PHONE: 972-628-4100
INVESTOR RELATIONS:
JACKIE GRAHAM - 972-419-6213
| WWW.NEXPOINTLIVING.COM |
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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 |
| Components of Net Asset Value | 8 |
| Consolidated Balance Sheets | 9 |
| Consolidated Statements of Operations | 10 |
| Q1 Same Store Results | 11 |
| Q1 Same Store Properties Operating Metrics | 13 |
| FFO, Core FFO and AFFO | 14 |
| Historical Capital Expenditures | 15 |
| Value-Add Program Details | 16 |
| Outstanding Debt Details | 17 |
| Debt Maturity Schedule | 19 |
| Historical Acquisition Details | 20 |
| Historical Disposition Details | 21 |
| Definitions and Reconciliations of Non-GAAP Measures | 22 |
| AVANT AT PEMBROKE PINES: NEW EXTERIOR PAINT | |
| --- | |
| LEASING OFFICE: UPON TAKEOVER |
LEASING OFFICE RENDERING: PLANNED 2020 COMPLETION
NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
FOR IMMEDIATE RELEASE
Contact:
Investor Relations
Jackie Graham
JGraham@nexpointadvisors.com
972-419-6213
Media inquiries: MediaRelations@nexpointadvisors.com
NEXPOINT RESIDENTIAL TRUST, INC. REPORTS FIRST QUARTER 2020 RESULTS
NXRT Reports Net Income of $28.0 million; $85.4 million of Capital Recycling Activity and $31.0 million of Share Repurchase Activity; Entire Portfolio Located in Markets Already Open or Expected to Re-open in May
Dallas, TX, May 7, 2020 – NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the first quarter ended March 31, 2020.
Highlights
| • | NXRT^1^ reported Net Income, FFO^2^, Core FFO^2^ and AFFO^2^ of $28.0M, $12.4M, $13.6M and $15.3M, respectively, attributable to common stockholders for the quarter ended March 31, 2020, compared to Net Loss, FFO, Core FFO, and AFFO of $(4.4)M, $11.0M, $11.0M and $12.7M, respectively, attributable to common stockholders for the quarter ended March 31, 2019. |
|---|---|
| • | For the three months ended March 31, 2020, Q1 Same Store properties^3^ average effective rent, total revenue and NOI^2^ increased 2.9%, 5.3% and 5.6%, respectively, and occupancy increased 90 bps over the prior year period. |
| --- | --- |
| • | During the three months ended March 31, 2020, NXRT disposed of three properties, Southpoint Reserve, Willow Grove, and Woodbridge, for a combined sales price of $86.5M and net cash proceeds of $43.4M. |
| --- | --- |
| • | The weighted average effective monthly rent per unit across all 37 properties held as of March 31, 2020 (the “Portfolio”), consisting of 14,104 units, was $1,110, while physical occupancy was 94.2%. |
| --- | --- |
| • | NXRT paid a first quarter dividend of $0.3125 per share of common stock on March 31, 2020. |
| --- | --- |
| • | During the first quarter, for the properties in our Portfolio, we completed 412 full and partial upgrades and leased 215 upgraded units, achieving an average monthly rent premium of $115 and a 23.6% ROI^4^. Since inception, for the properties currently in our Portfolio, we have completed 6,914 full and partial upgrades and achieved an average monthly rental increase per unit of $102, equating to a 24.6% ROI on all units leased as of March 31, 2020. |
| --- | --- |
| • | During the three months ended March 31, 2020, through its at-the-market offering (“ATM program”), NXRT issued approximately 0.6 million shares for approximately $28.0 million in gross proceeds. On March 4, 2020, NXRT entered into a new ATM program for $225.0 million. |
| --- | --- |
| (1) | In this release, “we,” “us,” “our,” the “Company,” “NexPoint Residential Trust,” and “NXRT” each refer to NexPoint Residential Trust, Inc., a Maryland corporation. |
| --- | --- |
| (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 income (loss), see the “Definitions and Reconciliations of Non-GAAP Measures” and “FFO, Core FFO and AFFO” sections of this release. |
| --- | --- |
| (3) | We define “Same Store” properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 25 properties encompassing 9,521 units of apartment space in our Same Store pool for the three months ended March 31, 2020 (our “Q1 Same Store” properties). |
| --- | --- |
| (4) | 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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| www.NexPointLiving.com | Page 1 |
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
First Quarter 2020 Financial Results
| • | Total revenues were $52.6 million for the first quarter of 2020, compared to $41.5 million for the first quarter of 2019. |
|---|---|
| • | Net income for the first quarter of 2020 totaled $28.0 million, or income of $1.08 per diluted share, which included $23.3 million of depreciation and amortization expense. This compared to a net loss of $(4.4) million, or a loss of $(0.19) per diluted share, for the first quarter of 2019, which included $15.4 million of depreciation and amortization expense. |
| --- | --- |
| • | The change in our net income of $28.0 million for the three months ended March 31, 2020 as compared to our net loss of $(4.4) million for the three months ended March 31, 2019 primarily relates to increases in gains on sales of real estate and total revenues, partially offset by increases in depreciation and property operating expenses. |
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| • | For the first quarter of 2020, NOI was $30.0 million on 37 properties, compared to $23.6 million for the first quarter of 2019 on 38 properties. |
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| • | For the first quarter of 2020, Q1 Same Store NOI increased 5.6% to $17.8 million, compared to $16.9 million for the first quarter of 2019. |
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| • | For the first quarter of 2020, FFO totaled $12.4 million, or $0.48 per diluted share, compared to $11.0 million, or $0.46 per diluted share, for the first quarter of 2019. |
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| • | For the first quarter of 2020, Core FFO totaled $13.6 million, or $0.53 per diluted share, compared to $11.0 million, or $0.46 per diluted share, for the first quarter of 2019. |
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| • | For the first quarter of 2020, AFFO totaled $15.3 million, or $0.59 per diluted share, compared to $12.7 million, or $0.53 per diluted share, for the first quarter of 2019. |
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Subsequent Events & Operational Trends
| • | The Company is providing a summary of select April and May (through May 5, 2020) operating metrics in response to economic challenges and related government actions and regulations as a result of the ongoing Novel Coronavirus (COVID-19) pandemic: |
|---|---|
| o | Through April’s accounting month end, combined, rent cash collections and promises to pay under lease amendments signed by residents financially impacted by COVID-19 represented 95.3% of billed rent for April 2020. This compares to 99.8% average cash collections in 2019. Rent cash collections represented 94.1% of billed April 2020 rent and promises to pay by financially impacted residents under lease amendments represented 1.2% of billed April 2020 rent. |
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| o | Through May 5, 2020, combined, rent cash collections and promises to pay under lease amendments signed by residents financially impacted by COVID-19 represented 87.9% of billed rent for May 2020. This compares to 84.8% combined collections of April 2020 rent at the same point in April and 84.8% cash collections of March 2020 rent at the same point in March 2020. Rent cash collections represented 86.0% of billed May 2020 rent and promises to pay by financially impacted residents under lease amendments represented 1.9% of billed May 2020 rent. |
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| o | Average Physical Occupancy for the Same Store Portfolio was strong at 94.5% for April 2020, while resident retention was 65.6% for the month. |
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| • | The COVID Pandemic has resulted in cessation, severe curtailment, or impairment of business activities in most sectors of the economy in all markets we operate in, due to governmental “stay at home” orders, risk mitigation procedures, closure of businesses not considered to be “essential,” as well as other direct and indirect impacts, including those that may not yet be identified. This has resulted in a rapid and dramatic increase in unemployment in the U.S. We cannot estimate the extent of the COVID-19 pandemic’s future negative impacts or how long the negative impacts of the COVID-19 pandemic will persist. In addition, it is possible that, even after the initial restrictions due to the COVID-19 pandemic ease, they could be reinstituted in case of future waves of infection or if additional pandemics occur. As a result of these uncertainties related to the COVID-19 pandemic, the Company has temporarily withdrawn its previously provided full-year 2020 guidance outlook. |
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First Quarter Earnings Conference Call
NXRT will host a call on Thursday, May 7, 2020 at 11:00 a.m. ET to discuss its first quarter financial results and provide updates on the impact of the COVID-19 crisis on operations and rent collections. The conference call can be accessed live over the phone by dialing 888-599-8686 or, for international callers, +1 720-543-0302 and using passcode Conference ID: 9982730. A live audio webcast of the call will be available online at the Company's website, http://www.nexpointliving.com (under "Investor Relations"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
A replay of the conference call will also be available through Thursday, May 14, 2020 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 9982730.
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, www.nexpointliving.com, under the “Investor Relations” 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,” “intend” 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, NXRT’s 2020 adjusted NOI estimate and the related assumptions, the timing of re-openings, net asset value and the related components and assumptions, planned value-add programs, including projected average rent, rent change and return on investment and expected acquisitions and dispositions. They are not guarantees of future results and forward-looking statements 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 geographic spread, duration and severity of the coronavirus (COVID-19) outbreak, 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 specifically 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.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
NEXPOINT RESIDENTIAL TRUST, INC: FIRST QUARTER 2020 OVERVIEW
Company Profile
| (share counts in thousands) | |
|---|---|
| Exchange/Ticker | NYSE: NXRT |
| Share Price (1) | $30.20 |
| Insider Ownership | 15.11% |
| 2020 Q2 Dividend Per Share | $0.3125 |
| Dividend Yield (1) | 4.14% |
| Shares Outstanding - basic (Wtd Avg. 3 mo. ended 03/31/2020) | 25,388 |
| Shares Outstanding - diluted (Wtd Avg. 3 mo. ended 03/31/2020) | 25,851 |
| (1) | As of the close of market trading on May 6, 2020. |
| --- | --- |
Portfolio Composition by Market
| Market | % of Units | |
|---|---|---|
| Dallas/Fort Worth | 20.1% | |
| South Florida | 13.9% | |
| Nashville | 13.1% | |
| Atlanta | 10.4% | |
| Phoenix | 9.4% | |
| Houston | 8.4% | |
| Orlando | 8.3% | |
| Las Vegas | ` | 8.2% |
| Charlotte | 4.1% | |
| Tampa | 4.1% | |
| Total | 100.0% |
| Revenue & Average Rent Per Unit | Stock Price Performance (Since Inception; 4/1/2015) |
|---|---|
| www.NexPointLiving.com | Page 4 |
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Highlights of Recent Activity
COVID-19 Update
NXRT April 2020 Collections
As of April 26, 2019, NXRT collected 93.9% of April rental payments which is 240 bps better than National Multifamily Housing Council’s (NMHC) average. As of April 30, 2020, NXRT collected 95.3% of April rental payments (dollars in thousands):
| April 2020 | Collection % | ||
|---|---|---|---|
| Total Income | $ | 16.9 | |
| Total Deposits | $ | 15.9 | 94.1% |
| Total Payment Plans | $ | 0.6 | |
| Total Collections | $ | 16.1 | 95.3% |
NXRT Occupancy & Trends (as of May 6, 2020 and 2019)
| 2020 | vs. 2019 | |
|---|---|---|
| Occupancy | 94.0% | +42 bps |
| Leased | 96.1% | -11 bps |
| 60 Day Trend | 91.7% | -33 bps |
Status of States Re-opening from COVID-19*
Arizona: Governor extended the state’s stay-at-home order until May 15, 2020.
Florida: Governor announced state will reopen non-essential businesses in a three-phrased approach beginning Monday, May 4, 2020; however restrictions in Miami-Dade, Broward and Palm Beach counties will remain unchanged.
Georgia: Governor announced stay-at-home order expired on April 30, 2020; Governor extended the public health emergency through May 13, 2020.
Nevada: Governor announced stay-at-home order extended to May 15, 2020.
North Carolina: Governor announced stay-at-home order will expire on May 8, 2020 with plans to reopen in phases.
Tennessee: Governor announced stay-at-home order will expire on May 8, 2020 with plans to reopen in phases.
Texas: Stay-at-home order expired on April 30, 2020. Restaurants, retail stores, malls, and movie theatres are all allowed to reopen with 25% occupancy.
*The information is based upon information publicly available as of May 6, 2020, and the definition of “re-opening” varies from state to state.
(1) As of April 26, 2020
(1) As of May 5, 2020 and 2019
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
DISPOSITIONS
| Property Name | Location | Date of Sale | Sales Price | Net Cash Proceeds (1) | Gain on Sale<br><br><br>of Real Estate | |||
|---|---|---|---|---|---|---|---|---|
| Southpoint Reserve at Stoney Creek | Fredericksburg, Virginia | March 20, 2020 | $ | 23,500 | $ | 9,944 | $ | 5,469 |
| Willow Grove | Nashville, Tennessee | March 26, 2020 | 31,300 | 16,039 | 17,513 | |||
| Woodbridge | Nashville, Tennessee | March 26, 2020 | 31,700 | 17,423 | 15,990 | |||
| $ | 86,500 | $ | 43,406 | $ | 38,972 | |||
| (1) | Represents sales price, net of debt repayment and closing costs. | |||||||
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Financial Summary
| Q1 2020 | Q1 2019 | FY 2019 | FY 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except for per share and unit data) | ||||||||||||
| Company Profile | ||||||||||||
| Market Capitalization | $ | 627,000 | $ | 906,000 | $ | 1,136,000 | $ | 824,000 | ||||
| Share Price (as of the last day of the period) | $ | 25.21 | $ | 38.34 | $ | 45.00 | $ | 35.05 | ||||
| Weighted average common shares outstanding - basic | 25,388 | 23,550 | 24,116 | 21,189 | ||||||||
| Weighted average common shares outstanding - diluted | 25,851 | 24,044 | 24,593 | 21,667 | ||||||||
| Earnings Profile | ||||||||||||
| Total revenues | $ | 52,582 | $ | 41,491 | $ | 181,066 | $ | 146,597 | ||||
| Net income (loss) attributable to common stockholders | 27,955 | (4,360 | ) | 99,140 | (1,609 | ) | ||||||
| NOI (1) | 29,985 | 23,587 | 102,591 | 80,175 | ||||||||
| Same Store NOI (2) | 17,847 | 16,906 | 65,961 | 61,795 | ||||||||
| Same Store NOI Growth (%) (2) | 5.6 | % | 6.7 | % | ||||||||
| Earnings Metrics Per Common Share (diluted basis) | ||||||||||||
| Earnings (loss) | $ | 1.08 | $ | (0.19 | ) | $ | 4.03 | $ | (0.08 | ) | ||
| FFO (1) | $ | 0.48 | $ | 0.46 | $ | 1.66 | $ | 1.48 | ||||
| Core FFO (1) | $ | 0.53 | $ | 0.46 | $ | 1.93 | $ | 1.62 | ||||
| AFFO (1) | $ | 0.59 | $ | 0.53 | $ | 2.20 | $ | 1.88 | ||||
| Dividends declared per common share | $ | 0.313 | $ | 0.275 | $ | 1.138 | $ | 1.025 | ||||
| FFO Coverage (3) | 1.53x | 1.66x | 1.46x | 1.44x | ||||||||
| Core FFO Coverage (3) | 1.68x | 1.67x | 1.70x | 1.58x | ||||||||
| AFFO Coverage (3) | 1.89x | 1.92x | 1.94x | 1.84x | ||||||||
| Portfolio | ||||||||||||
| Total Properties | 37 | 38 | 40 | 35 | ||||||||
| Total Units | 14,104 | 13,211 | 14,724 | 12,555 | ||||||||
| Occupancy | 94.2 | % | 93.6 | % | 94.2 | % | 94.6 | % | ||||
| Average Effective Monthly Rent per Unit | $ | 1,110 | $ | 1,007 | $ | 1,103 | $ | 985 | ||||
| Same Store Portfolio Metrics (2) | ||||||||||||
| Total Same Store Properties | 25 | 25 | 25 | 25 | ||||||||
| Total Same Store Units | 9,521 | 9,521 | 9,057 | 9,057 | ||||||||
| Occupancy | 94.5 | % | 93.6 | % | 94.5 | % | 94.8 | % | ||||
| Average Effective Monthly Rent per Unit | $ | 1,035 | $ | 1,006 | $ | 1,038 | $ | 1,002 | ||||
| Value-Add Program | ||||||||||||
| Completed Rehab Units | 412 | 245 | 2,516 | 1,432 | ||||||||
| Cumulative Completed Rehab Units (4) | 6,914 | |||||||||||
| Average Increase to Effective Monthly Rent<br><br><br>per Unit (Post-Rehab) | $ | 102 | ||||||||||
| ROI on Post-Rehab Units | 24.6 | % | ||||||||||
| Outstanding Debt Summary | ||||||||||||
| Total Mortgage Debt | $ | 1,151,683 | $ | 924,463 | ||||||||
| Credit Facilities | 225,000 | 52,500 | ||||||||||
| Total Debt Outstanding | $ | 1,376,683 | $ | 976,963 | ||||||||
| Leverage Ratio (Net Debt to Enterprise Value) (5) | 67 | % | 51 | % | ||||||||
| (1) | For more information and reconciliations of NOI, FFO, Core FFO and AFFO, see the “FFO, Core FFO and AFFO” 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 Q1 Same Store properties, see the “Q1 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) | Inclusive of all full and partial interior upgrades completed through. Cumulative results exclude rehabs completed for properties sold through March 31, 2020. | |||||||||||
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| (5) | 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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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 VALUE BY MARKET
| Property | NOI | Cap Rate Range (1)(3) | Value Range (2) | ||||
|---|---|---|---|---|---|---|---|
| Market | Contribution | Min | Max | Min | Max | ||
| Texas | |||||||
| Dallas/Fort Worth | 15.6% | 4.9% | 5.2% | $ | 343,950 | $ | 374,559 |
| Houston | 7.5% | 5.0% | 5.3% | 162,241 | 176,475 | ||
| North Carolina | |||||||
| Charlotte | 3.7% | 4.9% | 5.2% | 81,578 | 88,838 | ||
| Georgia | |||||||
| Atlanta | 10.2% | 4.9% | 5.2% | 224,890 | 244,904 | ||
| Tennessee | |||||||
| Nashville | 13.2% | 4.8% | 5.1% | 296,741 | 323,538 | ||
| Florida | |||||||
| Orlando | 8.7% | 5.0% | 5.3% | 188,199 | 204,711 | ||
| Tampa | 3.4% | 4.7% | 5.0% | 77,962 | 85,109 | ||
| West Palm Beach | 16.7% | 4.7% | 5.0% | 382,931 | 418,033 | ||
| Nevada | |||||||
| Las Vegas | 10.2% | 5.0% | 5.3% | 220,647 | 240,006 | ||
| Arizona | |||||||
| Phoenix | 10.8% | 4.7% | 5.0% | 250,145 | 270,345 | ||
| Total / Ave | 100.0% | 4.8% | 5.1% | $ | 2,229,284 | $ | 2,426,518 |
NAV SUMMARY
| Component | Min | Max | |
|---|---|---|---|
| Tangible Assets | |||
| Real Estate (2) | $ | 2,426,518 | |
| Cash | 69,540 | ||
| Restricted Cash - Renovation & Green Reserves (4) | 15,356 | ||
| Renovation & Green Capital Expenditures (4) | (15,356) | ||
| Cash Adjustments (5) | (756) | ||
| Fair Market Value of Interest Rate Swaps | 0 | ||
| Other Assets | 27,475 | ||
| Value of Assets | $ | 2,522,777 | |
| Tangible Liabilities | |||
| Credit Facility (6) | 225,000 | ||
| Mortgage Debt | 1,151,683 | ||
| Total Outstanding Debt | 1,376,683 | ||
| Forward 12-month Principal Payments (6) | (756) | ||
| Total Outstanding Debt (FY 2020 Est.) | 1,375,927 | ||
| Other Tangible Liabilities (at Book) | 27,955 | ||
| Derivative Liability | 47,077 | ||
| Value of Liabilities | 1,450,959 | ||
| Net Leverage (mid-point) | 60% | ||
| Net Asset Value | $ | 1,071,818 | |
| Shares outstanding - diluted (FY 2020 Est.) | 25,298 | ||
| Est. NAV / Share | $ | 42.37 | |
| NAV / Share (mid-point) | 38.47 |
All values are in US Dollars.
NOI ESTIMATE
| 4Q 2019 NOI Actual | 28,327 | |||
|---|---|---|---|---|
| 1Q 2020 NOI Actual | 29,985 | |||
| Low | High | |||
| 2020 Adjusted NOI Est. (3) | $ | 114,650 | $ | 117,650 |
IMPLIED VALUATION METRICS
| Min | |
|---|---|
| Implied Real Estate Value | 2,229,284 |
| No. of Units (March 31, 2020 E.) (2) | 14,300 |
| Implied Value/Apartment Unit | 155.9 |
| Implied Value/Apartment Unit (mid-point) | 162.8 |
All values are in US Dollars.
| (1) | Management estimates based on independent third-party review of our properties. |
|---|---|
| (2) | Full Year 2020 Adjusted NOI is presented for the existing portfolio (37 properties at March 31, 2020). |
| --- | --- |
| (3) | Based on Green Street Advisors’ ‘Residential Sectors’ Report dated April 19, 2020. FY 2020 Adjusted NOI does not consider any additional acquisition or disposition activity for the remainder of the year. |
| --- | --- |
| (4) | Includes approximately $15.4 million that is held for value-add upgrades; reduced by $15.4 million for estimated 2020 rehab expenditures. |
| --- | --- |
| (5) | Includes approximately $0.8 million in forward 12-month principal payments. |
| --- | --- |
| (6) | Includes outstanding balance of March 31, 2020. |
| --- | --- |
| www.NexPointLiving.com | Page 8 |
| --- | --- |
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, 2019 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Operating Real Estate Investments | |||||
| Land | 317,886 | $ | 317,886 | ||
| Buildings and improvements | 1,477,664 | 1,472,319 | |||
| Intangible lease assets | 4,211 | 12,414 | |||
| Construction in progress | 9,500 | 4,375 | |||
| Furniture, fixtures, and equipment | 84,947 | 81,038 | |||
| Total Gross Operating Real Estate Investments | 1,894,208 | 1,888,032 | |||
| Accumulated depreciation and amortization | (167,686 | ) | (152,552 | ) | |
| Total Net Operating Real Estate Investments | 1,726,522 | 1,735,480 | |||
| Real estate held for sale, net of accumulated depreciation of 0 and 897, respectively | — | 46,330 | |||
| Total Net Real Estate Investments | 1,726,522 | 1,781,810 | |||
| Cash and cash equivalents | 69,540 | 25,671 | |||
| Restricted cash | 36,041 | 45,511 | |||
| Accounts receivable | 3,095 | 6,285 | |||
| Prepaid and other assets | 3,695 | 2,336 | |||
| Fair market value of interest rate swaps | — | 4,376 | |||
| TOTAL ASSETS | 1,838,893 | $ | 1,865,989 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Liabilities: | |||||
| Mortgages payable, net | 1,145,508 | $ | 1,145,371 | ||
| Mortgages payable held for sale, net | — | 41,176 | |||
| Credit facility, net | 223,850 | 216,501 | |||
| Accounts payable and other accrued liabilities | 13,137 | 11,971 | |||
| Accrued real estate taxes payable | 7,119 | 12,206 | |||
| Accrued interest payable | 3,337 | 3,691 | |||
| Security deposit liability | 2,893 | 2,977 | |||
| Prepaid rents | 1,469 | 1,658 | |||
| Fair market value of interest rate swaps | 47,077 | 902 | |||
| Total Liabilities | 1,444,390 | 1,436,453 | |||
| Redeemable noncontrolling interests in the Operating Partnership | 2,332 | 3,295 | |||
| 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; 24,852,868 and 25,245,740 shares issued and outstanding, respectively | 256 | 251 | |||
| Additional paid-in capital | 378,943 | 359,748 | |||
| Accumulated earnings less dividends | 84,345 | 63,776 | |||
| Accumulated other comprehensive income (loss) | (47,922 | ) | 2,466 | ||
| Common stock held in treasury at cost; 864,681 and 0 shares | (23,451 | ) | — | ||
| Total Stockholders' Equity | 392,171 | 426,241 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,838,893 | $ | 1,865,989 |
All values are in US Dollars.
| www.NexPointLiving.com | Page 9 |
|---|
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 March 31, | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Revenues | ||||||
| Rental income | $ | 51,115 | $ | 40,451 | ||
| Other income | 1,467 | 1,040 | ||||
| Total revenues | 52,582 | 41,491 | ||||
| Expenses | ||||||
| Property operating expenses | 11,721 | 9,639 | ||||
| Real estate taxes and insurance | 8,023 | 5,758 | ||||
| Property management fees (1) | 1,550 | 1,240 | ||||
| Advisory and administrative fees (2) | 1,865 | 1,850 | ||||
| Corporate general and administrative expenses | 2,701 | 2,233 | ||||
| Property general and administrative expenses | 1,832 | 1,658 | ||||
| Depreciation and amortization | 23,338 | 15,398 | ||||
| Total expenses | 51,030 | 37,776 | ||||
| Operating income before gain on sales of real estate | 1,552 | 3,715 | ||||
| Gain on sales of real estate | 38,972 | — | ||||
| Operating income | 40,524 | 3,715 | ||||
| Interest expense | (11,662 | ) | (8,088 | ) | ||
| Loss on extinguishment of debt and modification costs | (874 | ) | — | |||
| Casualty gains | 51 | — | ||||
| Net income (loss) | 28,039 | (4,373 | ) | |||
| Net income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership | 84 | (13 | ) | |||
| Net income (loss) attributable to common stockholders | $ | 27,955 | $ | (4,360 | ) | |
| Other comprehensive loss | ||||||
| Unrealized losses on interest rate derivatives | (50,540 | ) | (5,665 | ) | ||
| Total comprehensive loss | (22,501 | ) | (10,038 | ) | ||
| Comprehensive loss attributable to redeemable noncontrolling interests in the Operating Partnership | (68 | ) | (30 | ) | ||
| Comprehensive loss attributable to common stockholders | $ | (22,433 | ) | $ | (10,008 | ) |
| Weighted average common shares outstanding - basic | 25,388 | 23,550 | ||||
| Weighted average common shares outstanding - diluted | 25,851 | 24,044 | ||||
| Earnings (loss) per share - basic | $ | 1.10 | $ | (0.19 | ) | |
| Earnings (loss) per share - diluted | $ | 1.08 | $ | (0.19 | ) | |
| (1) | Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Operating Partnership (the “OP”). | |||||
| --- | --- | |||||
| (2) | Fees incurred to the Company’s adviser. | |||||
| --- | --- | |||||
| www.NexPointLiving.com | Page 10 | |||||
| --- | --- |
NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Q1 Same Store Results of Operations for the Three Months Ended March 31, 2020 and 2019
There are 25 properties encompassing 9,521 units of apartment space, or approximately 68% of our Portfolio, in our same store pool for the three months ended March 31, 2020 and 2019 (our “Q1 Same Store” properties). Our Q1 Same Store properties exclude the following 12 properties in our Portfolio as of March 31, 2020: Bella Vista, The Enclave, The Heritage, Summers Landing, Residences at Glenview Reserve, Residences at West Place, Avant at Pembroke Pines, Arbors of Brentwood, Torreyana Apartments, Bloom, Bella Solara and Cutter’s Point (which has suspended operations to undergo reconstruction due to tornado damage).
As of March 31, 2020, our Q1 Same Store properties were approximately 94.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,035, a year-over-year increase of 90 bps and an increase of $29, respectively.
The following table reflects the revenues, property operating expenses and NOI for the three months ended March 31, 2020 and 2019 for our Q1 Same Store and Non-Same Store properties (dollars in thousands):
| For the Three Months Ended March 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | Change | % Change | ||||||
| Revenues | |||||||||
| Same Store | |||||||||
| Rental income | $ | 31,213 | $ | 29,489 | 5.8 | % | |||
| Other income | 587 | 712 | ) | -17.6 | % | ||||
| Same Store revenues | 31,800 | 30,201 | 5.3 | % | |||||
| Non-Same Store | |||||||||
| Rental income | 19,902 | 10,962 | N/M | ||||||
| Other income | 880 | 328 | N/M | ||||||
| Non-Same Store revenues | 20,782 | 11,290 | N/M | ||||||
| Total revenues | 52,582 | 41,491 | 26.7 | % | |||||
| Operating expenses | |||||||||
| Same Store | |||||||||
| Property operating expenses (1) | 7,093 | 6,799 | 4.3 | % | |||||
| Real estate taxes and insurance | 5,040 | 4,669 | 7.9 | % | |||||
| Property management fees (2) | 953 | 903 | 5.5 | % | |||||
| Property general and administrative expenses (3) | 867 | 924 | ) | -6.2 | % | ||||
| Same Store operating expenses | 13,953 | 13,295 | 4.9 | % | |||||
| Non-Same Store | |||||||||
| Property operating expenses (4) | 4,568 | 2,805 | N/M | ||||||
| Real estate taxes and insurance | 2,983 | 1,089 | N/M | ||||||
| Property management fees (2) | 597 | 337 | N/M | ||||||
| Property general and administrative expenses (5) | 496 | 378 | 31.2 | % | |||||
| Non-Same Store operating expenses | 8,644 | 4,609 | N/M | ||||||
| Total operating expenses | 22,597 | 17,904 | 26.2 | % | |||||
| NOI | |||||||||
| Same Store | 17,847 | 16,906 | 5.6 | % | |||||
| Non-Same Store | 12,138 | 6,681 | N/M | ||||||
| Total NOI (6) | $ | 29,985 | $ | 23,587 | 27.1 | % |
All values are in US Dollars.
| (1) | For the three months ended March 31, 2020 and 2019, excludes approximately $50,000 and $27,000, respectively, of casualty-related expenses. |
|---|---|
| (2) | Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP. |
| --- | --- |
| (3) | For the three months ended March 31, 2020 and 2019, excludes approximately $191,000 and $229,000, 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 and franchise tax fees. |
| --- | --- |
| (4) | For the three months ended March 31, 2020 and 2019, excludes approximately $10,000 and $8,000, respectively, of casualty-related expenses. |
| --- | --- |
| (5) | For the three months ended March 31, 2020 and 2019, excludes approximately $278,000 and $127,000, 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 and franchise tax fees. |
| --- | --- |
| (6) | For additional information regarding NOI, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release. |
| --- | --- |
| www.NexPointLiving.com | Page 11 |
| --- | --- |
NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
The following table contains additional information about our Q1 Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the three months ended March 31, 2020 and 2019 (dollars in thousands, except for per unit data):
| Q1 2020 | Q1 2019 | % Change | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Same Store Total Units | 9,521 | 9,521 | |||||||
| Same Store Occupied Units | 8,999 | 8,908 | |||||||
| Same Store Ending Occupancy | 94.5 | % | 93.6 | % | 0.9 | % | |||
| Same Store Average Rent per Unit | $ | 1,035 | $ | 1,006 | 2.9 | % | |||
| Same Store Revenues | |||||||||
| Same Store Rental Income | $ | 31,213 | $ | 29,489 | 5.8 | % | |||
| Same Store Other Income | 587 | 712 | -17.6 | % | |||||
| Total Same Store Revenues | 31,800 | 30,201 | 5.3 | % | |||||
| Same Store Operating Expenses | |||||||||
| Payroll | 3,059 | 2,968 | 3.1 | % | |||||
| Repairs & Maintenance | 2,504 | 2,289 | 9.4 | % | |||||
| Utilities | 1,530 | 1,542 | -0.8 | % | |||||
| Real Estate Taxes | 4,482 | 4,070 | 10.1 | % | |||||
| Insurance | 558 | 599 | -6.8 | % | |||||
| Property Management Fees | 953 | 903 | 5.5 | % | |||||
| Office Operations | 573 | 604 | -5.1 | % | |||||
| Marketing | 294 | 320 | -8.1 | % | |||||
| Total Same Store Operating Expenses | 13,953 | 13,295 | 4.9 | % | |||||
| Q1 Same Store NOI | $ | 17,847 | $ | 16,906 | 5.6 | % | |||
| www.NexPointLiving.com | Page 12 | ||||||||
| --- | --- |
NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Q1 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 | Q1 2020 | Q1 2019 | % Change | Q1 2020 | Q1 2019 | bps ∆ | Q1 2020 | Q1 2019 | % Change | |
| Texas | ||||||||||
| Dallas | 2,642 | $965 | $936 | 3.1% | 94.0% | 93.3% | 70 | $8,327 | $7,929 | 5.0% |
| Houston | 1,184 | 1,123 | 1,134 | -1.0% | 95.7% | 92.5% | 320 | 4,176 | 3,964 | 5.3% |
| Average/Total | 3,826 | 1,014 | 997 | 1.7% | 94.5% | 93.1% | 140 | 12,503 | 11,893 | 5.1% |
| North Carolina | ||||||||||
| Charlotte | 577 | 999 | 950 | 5.2% | 93.9% | 95.1% | -120 | 1,780 | 1,642 | 8.4% |
| Average/Total | 577 | 999 | 950 | 5.2% | 93.9% | 95.1% | -120 | 1,780 | 1,642 | 8.4% |
| Georgia | ||||||||||
| Atlanta | 1,460 | 1,119 | 1,069 | 4.7% | 94.3% | 93.4% | 90 | 4,913 | 4,682 | 4.9% |
| Average/Total | 1,460 | 1,119 | 1,069 | 4.7% | 94.3% | 93.4% | 90 | 4,913 | 4,682 | 4.9% |
| Tennessee | ||||||||||
| Nashville | 1,142 | 985 | 973 | 1.2% | 93.7% | 93.0% | 70 | 3,562 | 3,359 | 6.0% |
| Average/Total | 1,142 | 985 | 973 | 1.2% | 93.7% | 93.0% | 70 | 3,562 | 3,359 | 6.0% |
| Florida | ||||||||||
| Orlando | 830 | 1,170 | 1,143 | 2.4% | 94.5% | 94.5% | 0 | 3,040 | 2,894 | 5.0% |
| Tampa | 576 | 965 | 930 | 3.8% | 94.8% | 93.6% | 120 | 1,753 | 1,618 | 8.3% |
| South Florida | 439 | 1,233 | 1,197 | 3.0% | 95.4% | 95.9% | -50 | 1,729 | 1,641 | 5.4% |
| Average/Total | 1,845 | 1,121 | 1,089 | 2.9% | 94.8% | 94.5% | 30 | 6,522 | 6,153 | 6.0% |
| Arizona | ||||||||||
| Phoenix | 671 | 856 | 788 | 8.6% | 96.0% | 93.7% | 230 | 1,933 | 1,760 | 9.8% |
| Average/Total | 671 | 856 | 788 | 8.6% | 96.0% | 93.7% | 230 | 1,933 | 1,760 | 9.8% |
| Average/Total | 9,521 | $1,035 | $1,006 | 2.9% | 94.5% | 93.6% | 90 | $31,213 | $29,489 | 5.8% |
| (1) | This table only includes the 25 properties in our Q1 Same Store pool. | |||||||||
| --- | --- | |||||||||
| www.NexPointLiving.com | Page 13 | |||||||||
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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 income (loss), the most directly comparable GAAP financial measure, for the three months ended March 31, 2020 and 2019 (in thousands, except per share amounts):
| For the Three Months Ended March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | % Change (1) | ||||||||
| Net income (loss) | $ | 28,039 | $ | (4,373 | ) | N/M | ||||
| Depreciation and amortization | 23,338 | 15,398 | N/M | |||||||
| Gain on sales of real estate | (38,972 | ) | — | 0.0 | % | |||||
| Adjustment for noncontrolling interests | (37 | ) | (33 | ) | 12.1 | % | ||||
| FFO attributable to common stockholders | 12,368 | 10,992 | 12.5 | % | ||||||
| FFO per share - basic | $ | 0.49 | $ | 0.47 | 4.4 | % | ||||
| FFO per share - diluted | $ | 0.48 | $ | 0.46 | 4.7 | % | ||||
| Loss on extinguishment of debt and modification costs | 874 | — | 0.0 | % | ||||||
| Casualty-related expenses | 60 | 35 | N/M | |||||||
| Casualty gains | (51 | ) | — | 0.0 | % | |||||
| Amortization of deferred financing costs - acquisition term notes | 349 | — | 0.0 | % | ||||||
| Adjustment for noncontrolling interests | (4 | ) | — | 0.0 | % | |||||
| Core FFO attributable to common stockholders | 13,596 | 11,027 | 23.3 | % | ||||||
| Core FFO per share - basic | $ | 0.54 | $ | 0.47 | 14.4 | % | ||||
| Core FFO per share - diluted | $ | 0.53 | $ | 0.46 | 14.7 | % | ||||
| Amortization of deferred financing costs - long term debt | 386 | 432 | -10.6 | % | ||||||
| Equity-based compensation expense | 1,300 | 1,235 | 5.3 | % | ||||||
| Adjustment for noncontrolling interests | (5 | ) | (5 | ) | 0.0 | % | ||||
| AFFO attributable to common stockholders | 15,277 | 12,689 | 20.4 | % | ||||||
| AFFO per share - basic | $ | 0.60 | $ | 0.54 | 11.7 | % | ||||
| AFFO per share - diluted | $ | 0.59 | $ | 0.53 | 12.0 | % | ||||
| Weighted average common shares outstanding - basic | 25,388 | 23,550 | 7.8 | % | ||||||
| Weighted average common shares outstanding - diluted | 25,851 | 24,044 | 7.5 | % | ||||||
| Dividends declared per common share | $ | 0.3125 | $ | 0.275 | 14 | % | ||||
| FFO Coverage - diluted | (2) | 1.53x | 1.66x | -7.91 | % | |||||
| Core FFO Coverage - diluted | (2) | 1.68x | 1.67x | 0.92 | % | |||||
| AFFO Coverage - diluted | (2) | 1.89x | 1.92x | -1.46 | % | |||||
| (1) | Represents the percentage change for the three months ended March 31, 2020 compared to the three months ended March 31, 2019. | |||||||||
| --- | --- | |||||||||
| (2) | Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. | |||||||||
| --- | --- | |||||||||
| www.NexPointLiving.com | Page 14 | |||||||||
| --- | --- |
NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Historical Capital Expenditures
| Q1 2019 | % Change | |||||
|---|---|---|---|---|---|---|
| ( in thousands) | ||||||
| Capital Expenditures | ||||||
| Acquisition Capital Expenditures | — | $ | 132,100 | 0.0 | % | |
| Capitalized Rehab Expenditures | ||||||
| Interior | 2,358 | 2,488 | -5.2 | % | ||
| Exterior and common area | 5,619 | 1,785 | 214.8 | % | ||
| Capitalized Maintenance Expenditures | ||||||
| Recurring | 1,444 | 1,081 | 33.6 | % | ||
| Non-Recurring | 1,218 | 864 | 41.0 | % | ||
| Total Capital Expenditures | 10,639 | $ | 138,318 | 92.3 | % |
All values are in US Dollars.
| www.NexPointLiving.com | Page 15 |
|---|
NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Value-Add Program Details
| Property Name (1) | Units | Rehab Units<br><br><br>Completed (2) | 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) | Post-Rehab<br><br><br>Rent<br><br><br>Change % | ROI (3) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value-Add Programs In Progress | ||||||||||||||||
| Arbors of Brentwood | 346 | 86 | 1,109 | 1,159 | 807 | 4.5 | % | 74.0 | % | |||||||
| Arbors on Forest Ridge | 210 | 252 | 811 | 889 | 3,098 | 9.6 | % | 30.1 | % | |||||||
| Atera Apartments | 380 | 198 | 1,130 | 1,275 | 3,051 | 12.8 | % | 57.1 | % | |||||||
| Avant at Pembroke Pines | 1,520 | 25 | 1,434 | 1,658 | 7,720 | 15.6 | % | 34.8 | % | |||||||
| Beechwood Terrace | 300 | 322 | 867 | 957 | 4,542 | 10.4 | % | 23.6 | % | |||||||
| Bella Solara | 320 | 4 | 960 | 1,135 | 5,366 | 18.2 | % | 39.1 | % | |||||||
| Bella Vista | 248 | 43 | 1,178 | 1,327 | 10,792 | 12.6 | % | 16.5 | % | |||||||
| Bloom | 528 | 4 | N/A | N/A | N/A | N/A | N/A | |||||||||
| Brandywine I & II | 632 | 111 | 954 | 1,111 | 8,929 | 16.5 | % | 21.0 | % | |||||||
| Cedar Pointe | 210 | 115 | 983 | 1,119 | 4,751 | 13.8 | % | 34.3 | % | |||||||
| Courtney Cove | 324 | 158 | 815 | 918 | 4,869 | 12.6 | % | 25.4 | % | |||||||
| Crestmont Reserve | 242 | 105 | 825 | 932 | 6,218 | 13.0 | % | 20.6 | % | |||||||
| Cutter's Point | — | 216 | 1,004 | 1,100 | 4,428 | 9.6 | % | 26.1 | % | |||||||
| Eagle Crest | 447 | 161 | 851 | 911 | 1,939 | 7.1 | % | 37.4 | % | |||||||
| Hollister Place | 260 | 382 | 935 | 1,048 | 4,413 | 12.1 | % | 30.7 | % | |||||||
| Madera Point | 256 | 201 | 807 | 906 | 3,974 | 12.3 | % | 29.8 | % | |||||||
| Parc500 | 217 | 148 | 1,157 | 1,334 | 14,648 | 15.3 | % | 14.5 | % | |||||||
| Radbourne Lake | 225 | 298 | 996 | 1,041 | 929 | 4.5 | % | 58.5 | % | |||||||
| Residences at Glenview Reserve | 360 | 12 | 960 | 1,106 | 9,914 | 15.2 | % | 17.7 | % | |||||||
| Residences at West Place | 342 | 44 | 1,195 | 1,305 | 4,944 | 9.2 | % | 26.8 | % | |||||||
| Rockledge Apartments | 708 | 521 | 1,161 | 1,286 | 6,420 | 10.8 | % | 23.4 | % | |||||||
| Sabal Palm at Lake Buena Vista | 400 | 234 | 1,136 | 1,221 | 599 | 7.5 | % | 171.8 | % | |||||||
| Seasons 704 Apartments | 222 | 157 | 1,035 | 1,134 | 5,884 | 9.6 | % | 20.2 | % | |||||||
| Silverbrook | 642 | 659 | 818 | 885 | 2,794 | 8.2 | % | 28.8 | % | |||||||
| Summers Landing | 196 | 50 | 955 | 1,014 | 1,216 | 6.2 | % | 57.9 | % | |||||||
| Summit at Sabal Park | 252 | 326 | 886 | 966 | 4,197 | 9.0 | % | 22.8 | % | |||||||
| The Cornerstone | 430 | 306 | 926 | 1,016 | 5,443 | 9.7 | % | 19.8 | % | |||||||
| The Enclave | 204 | 38 | 1,220 | 1,366 | 9,814 | 12.0 | % | 17.9 | % | |||||||
| The Heritage | 204 | 39 | 1,132 | 1,277 | 11,405 | 12.8 | % | 15.2 | % | |||||||
| The Preserve at Terrell Mill | 752 | 497 | 785 | 929 | 9,252 | 18.3 | % | 18.7 | % | |||||||
| The Venue on Camelback | 415 | 116 | 661 | 917 | 10,667 | 38.7 | % | 28.8 | % | |||||||
| Timber Creek | 352 | 239 | 890 | 1,003 | 5,848 | 12.7 | % | 23.0 | % | |||||||
| Torreyana Apartments | 315 | 4 | 1,215 | 1,340 | 10,178 | 10.3 | % | 14.7 | % | |||||||
| Venue at 8651 | 333 | 389 | 841 | 924 | 4,579 | 9.9 | % | 21.6 | % | |||||||
| Versailles | 388 | 454 | 820 | 896 | 4,148 | 9.3 | % | 22.1 | % | |||||||
| Total/Weighted Average | 13,180 | 6,914 | $ | 918 | $ | 1,020 | $ | 4,956 | 11.1 | % | 24.6 | % | ||||
| Planned Value-Add Programs | Projected Avg. Rent | Rent Change & ROI<br><br><br>(Projections) | ||||||||||||||
| Old Farm | 734 | — | $ | 1,226 | $ | 1,316 | TBD | 7.3 | % | TBD | ||||||
| Stone Creek at Old Farm | 190 | — | 1,261 | 1,305 | TBD | 3.5 | % | TBD | ||||||||
| Total/Weighted Average Planned | 924 | — | $ | 1,233 | $ | 1,314 | TBD | 6.6 | % | TBD | ||||||
| (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 March 31, 2020. | |||||||||||||||
| --- | --- | |||||||||||||||
| (3) | Inclusive of all full and partial interior upgrades completed and leased through March 31, 2020. | |||||||||||||||
| --- | --- | |||||||||||||||
| (4) | Properties were classified as held for sale as of March 31, 2020. | |||||||||||||||
| --- | --- | |||||||||||||||
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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 March 31, 2020 (dollars in thousands):
| Operating Properties | Term (months) | Outstanding<br><br><br>Principal (1) | Interest Rate (2) | Maturity Date | |||
|---|---|---|---|---|---|---|---|
| Arbors on Forest Ridge | 84 | $ | 13,130 | 2.67% | 7/1/2024 | ||
| Cutter's Point | 84 | 16,640 | 2.67% | 7/1/2024 | |||
| Eagle Crest | 84 | 29,510 | 2.67% | 7/1/2024 | |||
| Silverbrook | 84 | 30,590 | 2.67% | 7/1/2024 | |||
| Beechwood Terrace | 84 | 23,365 | 2.43% | 9/1/2025 | |||
| The Summit at Sabal Park | 84 | 13,560 | 2.61% | 7/1/2024 | |||
| Courtney Cove | 84 | 13,680 | 2.61% | 7/1/2024 | |||
| The Preserve at Terrell Mill | 84 | 42,480 | 2.61% | 7/1/2024 | |||
| Versailles | 84 | 23,880 | 2.61% | 7/1/2024 | |||
| Seasons 704 Apartments | 84 | 17,460 | 2.61% | 7/1/2024 | |||
| Madera Point | 84 | 15,150 | 2.61% | 7/1/2024 | |||
| Venue at 8651 | 84 | 13,734 | 2.77% | 7/1/2024 | |||
| The Venue on Camelback | 84 | 28,093 | 2.67% | 7/1/2024 | |||
| Old Farm | 84 | 52,886 | 2.67% | 7/1/2024 | |||
| Stone Creek at Old Farm | 84 | 15,274 | 2.67% | 7/1/2024 | |||
| Timber Creek | 84 | 24,100 | 2.25% | 10/1/2025 | |||
| Radbourne Lake | 84 | 20,000 | 2.28% | 10/1/2025 | |||
| Sabal Palm at Lake Buena Vista | 84 | 42,100 | 2.29% | 9/1/2025 | |||
| Cornerstone | 120 | 21,654 | 4.24% | 3/1/2023 | |||
| Parc500 | 120 | 15,154 | 4.49% | 8/1/2025 | |||
| Hollister Place | 84 | 14,811 | 2.33% | 10/1/2025 | |||
| Rockledge Apartments | 84 | 68,100 | 2.56% | 7/1/2024 | |||
| Atera Apartments | 84 | 29,500 | 2.47% | 11/1/2024 | |||
| Cedar Pointe | 84 | 17,300 | 2.34% | 9/1/2025 | |||
| Crestmont Reserve | 84 | 12,061 | 2.17% | 10/1/2025 | |||
| Brandywine I & II | 84 | 43,835 | 2.17% | 10/1/2025 | |||
| Bella Vista | 84 | 29,040 | 2.31% | 2/1/2026 | |||
| The Enclave | 84 | 25,322 | 2.31% | 2/1/2026 | |||
| The Heritage | 84 | 24,625 | 2.31% | 2/1/2026 | |||
| Summers Landing | 84 | 10,109 | 2.17% | 10/1/2025 | |||
| Residences at Glenview Reserve | 84 | 26,560 | 2.43% | 10/1/2025 | |||
| Residences at West Place | 120 | 33,817 | 4.24% | 10/1/2028 | |||
| Avant at Pembroke Pines | 84 | 177,100 | 2.42% | 9/1/2026 | |||
| Arbors of Brentwood | 84 | 34,237 | 2.42% | 10/1/2026 | |||
| Torreyana Apartments | 84 | 37,400 | 2.69% | 12/1/2026 | |||
| Bloom | 84 | 58,850 | 2.69% | 12/1/2026 | |||
| Bella Solara | 84 | 36,576 | 2.69% | 12/1/2026 | |||
| $ | 1,151,683 | ||||||
| Fair market value adjustment | 1,413 | ||||||
| Deferred financing costs, net of accumulated amortization of 2,867 | (7,588 | ) | |||||
| $ | 1,145,508 |
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 one-month LIBOR plus an applicable margin, except for fixed rate mortgage debt. One-month LIBOR as of March 31, 2020 was 0.9929%. |
| --- | --- |
| www.NexPointLiving.com | Page 17 |
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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 March 31, 2020 (dollars in thousands):
| Term (months) | Outstanding<br><br><br>Principal | Interest Rate (1) | Maturity Date | ||||
|---|---|---|---|---|---|---|---|
| Corporate Credit Facility | 24 | $ | 41,700 | 3.24% | 1/28/2021 | ||
| Corporate Credit Facility | 24 | 19,000 | 3.27% | 1/28/2021 | |||
| Corporate Credit Facility | 24 | 18,300 | 3.05% | 1/28/2021 | |||
| Corporate Credit Facility | 24 | 111,000 | 3.17% | 1/28/2021 | |||
| Corporate Credit Facility | 24 | 35,000 | 3.05% | 1/28/2021 | |||
| Deferred financing costs, net of accumulated amortization of 902 | (1,150 | ) | |||||
| $ | 223,850 |
All values are in US Dollars.
| (1) | Interest rate is based on one-month LIBOR plus an applicable margin. One-month LIBOR as of March 31, 2020 was 0.9929%. |
|---|
Interest Rate Swap Agreements
As of March 31, 2020, 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 | Fixed Rate (1) | ||||
|---|---|---|---|---|---|---|---|---|
| July 1, 2016 | June 1, 2021 | KeyBank | $ | 100,000 | 1.1055 | % | ||
| July 1, 2016 | June 1, 2021 | KeyBank | 100,000 | 1.0210 | % | |||
| July 1, 2016 | June 1, 2021 | KeyBank | 100,000 | 0.9000 | % | |||
| September 1, 2016 | June 1, 2021 | KeyBank | 100,000 | 0.9560 | % | |||
| April 1, 2017 | April 1, 2022 | KeyBank | 100,000 | 1.9570 | % | |||
| May 1, 2017 | April 1, 2022 | KeyBank | 50,000 | 1.9610 | % | |||
| 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 | SunTrust | 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 | SunTrust | 100,000 | 0.8200 | % | |||
| $ | 1,167,500 | 1.3792 | % | (2) | ||||
| (1) | The floating rate option for the interest rate swaps is one-month LIBOR. As of March 31, 2020, one-month LIBOR was 0.9929%. | |||||||
| --- | --- | |||||||
| (2) | Represents the weighted average fixed rate of the interest rate swaps. | |||||||
| --- | --- | |||||||
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Debt Maturity Schedule
| Payments Due by Period (in thousands) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||
| Operating Properties Mortgage Debt | |||||||||||||||
| Principal payments | $ | 1,151,683 | $ | 559 | $ | 894 | $ | 1,492 | $ | 21,271 | $ | 424,663 | $ | 702,804 | |
| Interest expense | (1) | 181,982 | 26,389 | 34,989 | 33,428 | 31,897 | 25,771 | 29,508 | |||||||
| Total | $ | 1,333,665 | $ | 26,948 | $ | 35,883 | $ | 34,920 | $ | 53,168 | $ | 450,434 | $ | 732,312 | |
| Credit Facility | |||||||||||||||
| Principal payments | (2) | $ | 225,000 | $ | — | $ | 225,000 | $ | — | $ | — | $ | — | $ | — |
| Interest expense | 6,132 | 5,584 | 548 | — | — | — | — | ||||||||
| Total | $ | 231,132 | $ | 5,584 | $ | 225,548 | $ | — | $ | — | $ | — | $ | — | |
| Total contractual obligations and commitments | $ | 1,564,797 | $ | 32,532 | $ | 261,431 | $ | 34,920 | $ | 53,168 | $ | 450,434 | $ | 732,312 | |
| (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 March 31, 2020, we had entered into 13 interest rate swap transactions with a combined notional amount of $1.2 billion. We have allocated the total impact of expected settlements on the $1.2 billion notional amount of interest rate swaps to ‘Operating Properties Mortgage Debt.’ We used one-month LIBOR as of March 31, 2020 to determine our expected settlements through the terms of the interest rate swaps. | ||||||||||||||
| --- | --- | ||||||||||||||
| (2) | The Company has the option to extend the maturity date of the Corporate Credit Facility to January 28, 2022, subject to satisfaction of certain extension conditions. As of March 31, 2020, the Company believes it was in compliance with each of the conditions required to be satisfied for extending the maturity date of the revolver. | ||||||||||||||
| --- | --- |
| (1) | As of March 31, 2020, we had total indebtedness of $1.4 billion at an adjusted weighted average interest rate of 3.05%, of which $1.3 billion was debt with a floating interest rate. As of March 31, 2020, interest rate swap agreements effectively covered 100% of our $1.1 billion of floating rate mortgage debt outstanding and 38.4% of our $225.0 million floating rate Credit Facility. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.3792% for one-month LIBOR on the $1.2 billion notional amount of interest rate swap agreements that we have entered into as of March 31, 2020, which effectively fix the interest rate on $1.2 billion of our floating rate debt outstanding. |
|---|---|
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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 (3) | Richardson, TX | — | 1/31/2014 | 15,845 | 1,379 | 17,224 | N/A |
| Eagle Crest | Irving, TX | 447 | 1/31/2014 | 27,325 | 1,120 | 28,445 | 63,635 |
| Silverbrook | Grand Prairie, TX | 642 | 1/31/2014 | 30,400 | 1,661 | 32,061 | 49,939 |
| Beechwood Terrace | Antioch, TN | 300 | 7/21/2014 | 21,400 | 1,815 | 23,215 | 77,383 |
| 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 |
| Cedar Pointe | Antioch, TN | 210 | 8/24/2018 | 26,500 | 2,252 | 28,752 | 136,914 |
| 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 | 315 | 11/22/2019 | 68,000 | 2,771 | 70,771 | 224,670 |
| 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 |
| Total/Weighted Average | 14,104 | $1,800,765 | $148,832 | $1,949,597 | $138,230 | ||
| (1) | Only includes properties owned as of March 31, 2020. | ||||||
| --- | --- | ||||||
| (2) | Includes interior and exterior rehab. | ||||||
| --- | --- | ||||||
| (3) | All 196 units at Cutter’s Point are currently not operating, and are therefore excluded from the unit count. | ||||||
| --- | --- | ||||||
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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, Virginia | 156 | 17,000 | 23,500 | 150,641 | 3/20/2020 | 23,176 | 5,469 | ||||||
| Willow Grove | Nashville, Tennessee | 244 | 13,750 | 31,300 | 128,279 | 3/26/2020 | 31,005 | 17,513 | ||||||
| Woodbridge | Nashville, Tennessee | 220 | 16,000 | 31,700 | 144,091 | 3/26/2020 | 31,237 | 15,990 | ||||||
| Total/Weighted Average | 7,426 | $ | 489,869 | $ | 768,425 | $ | 103,478 | $ | 757,937 | $ | 284,711 | |||
| (1) | Represents sales price, net of closing costs. | |||||||||||||
| --- | --- | |||||||||||||
| (2) | The NAVA Portfolio consists of The Arbors, The Crossings, The Crossings at Holcomb Bridge and The Knolls. | |||||||||||||
| --- | --- | |||||||||||||
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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) the cost of funds, (2) acquisition costs, (3) advisory and administrative fees, (4) 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, (5) corporate general and administrative expenses, (6) other gains and losses that are specific to us, (7) casualty-related expenses/(recoveries) and casualty gain (loss), 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 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, 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 combined amounts 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 and the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt and costs incurred in connection with a debt modification that are expensed), casualty-related expenses, casualty gains or losses, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing and the noncontrolling interests 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.
| www.NexPointLiving.com | Page 22 |
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Reconciliations
NOI and Same Store NOI for the three months ended March 31, 2020 and 2019
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Q1 Same Store NOI for the three months ended March 31, 2020 and 2019 to net income (loss), the most directly comparable GAAP financial measure (in thousands):
| For the Three Months Ended March 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2019 | ||||||
| Net income (loss) | $ | 28,039 | $ | (4,373 | ) | ||
| Adjustments to reconcile net income (loss) to NOI: | |||||||
| Advisory and administrative fees | 1,865 | 1,850 | |||||
| Corporate general and administrative expenses | 2,701 | 2,233 | |||||
| Casualty-related expenses | (1) | 60 | 35 | ||||
| Casualty gains | (51 | ) | — | ||||
| Property general and administrative expenses | (2) | 469 | 356 | ||||
| Depreciation and amortization | 23,338 | 15,398 | |||||
| Interest expense | 11,662 | 8,088 | |||||
| Loss on extinguishment of debt and modification costs | 874 | — | |||||
| Gain on sales of real estate | (38,972 | ) | — | ||||
| NOI | $ | 29,985 | $ | 23,587 | |||
| Less Non-Same Store | |||||||
| Revenues | (20,782 | ) | (11,290 | ) | |||
| Operating expenses | 8,644 | 4,609 | |||||
| Same Store NOI | $ | 17,847 | $ | 16,906 | |||
| (1) | Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses. | ||||||
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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 and franchise tax fees. | ||||||
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NOI and 2018-2019 Same Store NOI for the years ended December 31, 2019 and 2018, and NOI and Same Store NOI for the three months ended December 31, 2019
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our 2018-2019 Same Store NOI for the years ended December 31, 2019 and 2018, and NOI and our Same Store NOI for the three months ended December 31, 2019 to net income (loss), the most directly comparable GAAP financial measure (in thousands):
| For the Year Ended December 31, | For the Three Months Ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | ||||||||
| Net income (loss) | $ | 99,438 | $ | (1,614 | ) | $ | (13,306 | ) | ||
| Adjustments to reconcile net income (loss) to NOI: | ||||||||||
| Advisory and administrative fees | 7,500 | 7,474 | 1,887 | |||||||
| Corporate general and administrative expenses | 9,613 | 7,808 | 2,300 | |||||||
| Casualty-related recoveries | (1) | (34 | ) | (663 | ) | (60 | ) | |||
| Casualty losses | 3,488 | — | 3,488 | |||||||
| Miscellaneous income | (587 | ) | — | (587 | ) | |||||
| Property general and administrative expenses | (2) | 1,517 | 1,294 | 448 | ||||||
| Depreciation and amortization | 69,086 | 47,470 | 23,394 | |||||||
| Interest expense | 37,385 | 28,572 | 10,747 | |||||||
| Loss on extinguishment of debt and modification costs | 2,869 | 3,576 | — | |||||||
| Gain on sales of real estate | (127,684 | ) | (13,742 | ) | 16 | |||||
| NOI | $ | 102,591 | $ | 80,175 | $ | 28,327 | ||||
| Less Non-Same Store | ||||||||||
| Revenues | (62,429 | ) | (32,871 | ) | (16,158 | ) | ||||
| Operating expenses | 25,799 | 14,491 | 6,649 | |||||||
| Same Store NOI | (3) | $ | 65,961 | $ | 61,795 | $ | 18,818 | |||
| www.NexPointLiving.com | Page 23 | |||||||||
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
| (1) | Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related recoveries. |
|---|---|
| (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 and franchise tax fees. |
| --- | --- |
| (3) | Our 2018-2019 and Q4 2019 same store pools consisted of 25 and 28 properties, respectively. |
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The following table reconciles our FFO, Core FFO and AFFO to our net income (loss) for the years ended December 31, 2019 and 2018, and for the three months ended March 31, 2020 (in thousands, except per share data):
| For the Year Ended December 31, | For the Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2020 | |||||||
| Net income (loss) | $ | 99,438 | $ | (1,614 | ) | $ | 28,039 | ||
| Depreciation and amortization | 69,086 | 47,470 | 23,338 | ||||||
| Gain on sales of real estate | (127,684 | ) | (13,742 | ) | (38,972 | ) | |||
| Adjustment for noncontrolling interests | (122 | ) | (96 | ) | (37 | ) | |||
| FFO attributable to common stockholders | 40,718 | 32,018 | 12,368 | ||||||
| FFO per share - diluted | $ | 1.66 | $ | 1.48 | $ | 0.48 | |||
| Loss on extinguishment of debt and modification costs | 2,869 | 3,576 | 874 | ||||||
| Casualty-related expenses/(recoveries) | (34 | ) | (663 | ) | 60 | ||||
| Casualty gain (loss) | 3,488 | — | (51 | ) | |||||
| Amortization of deferred financing costs - acquisition term notes | 553 | 159 | 349 | ||||||
| Adjustment for noncontrolling interests | (21 | ) | (9 | ) | (4 | ) | |||
| Core FFO attributable to common stockholders | 47,573 | 35,081 | 13,596 | ||||||
| Core FFO per share - diluted | $ | 1.93 | $ | 1.62 | $ | 0.53 | |||
| Amortization of deferred financing costs - long term debt | 1,530 | 1,491 | 386 | ||||||
| Equity-based compensation expense | 5,130 | 4,198 | 1,300 | ||||||
| Adjustment for noncontrolling interests | (20 | ) | (17 | ) | (5 | ) | |||
| AFFO attributable to common stockholders | 54,213 | 40,753 | 15,277 | ||||||
| AFFO per share - diluted | $ | 2.20 | $ | 1.88 | $ | 0.59 |
Reconciliation of Debt to Net Debt
| (dollar amounts in thousands) | Q1 2020 | Q1 2019 | ||||
|---|---|---|---|---|---|---|
| Total mortgage debt | $ | 1,151,683 | $ | 924,463 | ||
| Credit facilities | 225,000 | 52,500 | ||||
| Adjustments to arrive at net debt: | ||||||
| Cash and cash equivalents | (69,540 | ) | (20,536 | ) | ||
| Restricted cash held for value-add upgrades and green improvements | (15,356 | ) | (8,863 | ) | ||
| Net Debt | $ | 1,291,787 | $ | 947,564 | ||
| Enterprise Value (1) | $ | 1,918,787 | $ | 1,853,564 | ||
| Leverage Ratio | 67 | % | 51 | % | ||
| (1) | Enterprise Value is calculated as Market Capitalization plus Net Debt. | |||||
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| www.NexPointLiving.com | Page 24 | |||||
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]
Reconciliation of 2020 Adjusted NOI Estimate
The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our adjusted NOI estimate to estimated net income (the most directly comparable GAAP financial measure) for the periods presented below (in thousands):
| For the Year Ended<br><br><br>December 31, 2020 | ||||
|---|---|---|---|---|
| Net income | $ | 5,969 | ||
| Adjustments to reconcile net gain to NOI: | ||||
| Advisory and administrative fees | 7,500 | |||
| Corporate general and administrative expenses | 9,932 | |||
| Property general and administrative expenses | (1) | 1,500 | ||
| Depreciation and amortization | 85,000 | |||
| Gain on Dispositions | (38,972 | ) | ||
| Total Loss on Debt Extinguishment | 874 | |||
| Interest Expense | 44,697 | |||
| NOI | $ | 116,500 | ||
| (1) | Adjustment to net income 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 and franchise tax fees. | |||
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| www.NexPointLiving.com | Page 25 | |||
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