NXRT Reports First Quarter Results (5/15/15)
DALLAS--(BUSINESS WIRE)--NexPoint Residential Trust, Inc., or NXRT, (NYSE: NXRT) today announced operating results for the quarter ended March 31, 2015 (“Q1 2015”).
NexPoint Residential Trust is pleased to announce quarterly results for the first time as a public company. Strong operating performance was driven by acquisition of six properties (2,388 units), as well as continued implementation of significant value-add strategies across the portfolio.
“After acquiring 9,428 units in 2014, we were pleased to grow an additional 20% in the first quarter of 2015,” said Jim Dondero, President of NXRT. “The results of our value-add programs provide our residents with dramatically improved living spaces. We expect these programs and strong market fundamentals to continue to drive our top-line growth, improve resident retention and create value for our shareholders.”
Quarterly Common Dividend Declared
Our Board of Directors declared its first quarterly common dividend at a quarterly rate of $0.206 per common share, which will be paid on June 30, 2015 to holders of record on June 15, 2015.
Net Income (Loss)
For the quarter ended March 31, 2015, net loss attributable to common shareholders was $5,398,853, which included depreciation and amortization of $11,610,290.
Net Operating Income (NOI)
For the quarter ended March 31, 2015, NOI was $12,934,878, which included partial months for the six properties acquired during the quarter.
Funds from Operations (FFO); Guidance
For the quarter ended March 31, 2015, FFO, was $4,979,741, or $0.23 per common share. NXRT is reaffirming prior guidance for full year FFO projected to be in a range of $1.22 to $1.29 per common share. NXRT will reevaluate its full-year 2015 FFO and same store growth assumptions with its second quarter 2015 earnings report. Additional information on our 2015 financial and earnings guidance is included in the supplemental data that can be found on the “Investor Relations” tab of our website at www.nexpointliving.com.
Financial & Business Highlights
• Rental income was $22,690,537 for the three months ended March 31, 2015 compared to $3,560,203 for the three months ended March 31, 2014, which was an increase of $19,130,334. This change primarily relates to the Company acquiring, owning and operating an additional 29 properties for a total of 38 properties as of March 31, 2015 as compared to nine properties as of March 31, 2014.
• Quarter-end average effective monthly rent per unit was $771 across all properties, while physical occupancy ended at 93.7%
• Through March 31, 2015, NXRT completed upgrades on 610 units and achieved average rent increase of 11.9% on leased units, which correlated to an average ROI 24.6%
• Although only attributable to our longest-held property, Miramar, Q1 2015 same store rental income, NOI and occupancy increased 17%, 41.5% and 382 basis points to 96%, respectively, over Q1 2014
• NXRT acquired six multifamily apartment communities totaling 2,388 units, for a combined purchase price of $162 million and expanded its presence in Dallas, Orlando and Atlanta. NXRT has budgeted and reserved approximately $20 million in capex to implement its value-add programs at these properties.
Total rehab capital expenditures for the portfolio during the first quarter were $7,407,793.
On April 15, 2015, NXRT acquired Bayberry Apartments, a 222-unit Class B multifamily community built in 1986/1987 and located in West Palm Beach, Florida.
The property was purchased for $21 million and financed through a $12.66 million Freddie Mac Standard Delivery CME Adjustable Rate Mortgage Loan, at 60% loan to purchase price. The purchase price was approximately 55% below replacement cost for the market. NXRT plans to implement its value-add programs to achieve outsized resident satisfaction and same-store NOI growth.
Supplemental Material and Conference Call
Supplemental data to this press release can be found on the "Investor Relations" tab of our website at www.nexpointliving.com. NXRT will commence conference calls to further discuss quarterly results beginning with its second quarterly earnings release. Our filings with the Securities and Exchange Commission are filed under the registrant name of NexPoint Residential Trust, Inc.
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 Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser. More information about NXRT is available at http://www.NexPointLiving.com