NexPoint Residential Trust, Inc. Reports First Quarter Results (5/10/16)
DALLAS, May 10, 2016 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE: NXRT) reported financial results for the quarter ended March 31, 2016.
First Quarter 2016 Highlights
• NXRT paid a first quarter dividend of $0.206 per share of NXRT common stock on March 31, 2016. On May 9, 2016, NXRT's board of directors approved a quarterly dividend of $0.206 per share of NXRT common stock, payable on June 30, 2016 to stockholders of record on June 15, 2016
• Net income totaled $0.3 million, or $0.01 per common share; includes depreciation and amortization of $9.6 million, compared to a net loss of $(1.9) million, or $(0.10) per common share, for the fourth quarter of 2015
• AFFO¹ totaled $8.9 million, or $0.42 per common share, compared to $7.4 million, or $0.35 per common share, for the fourth quarter of 2015
• FFO¹ totaled $8.6 million, or $0.41 per common share, compared to $6.9 million, or $0.33 per common share, for the fourth quarter of 2015
• NOI¹ was $17.7 million for the first quarter of 2016, compared to $16.6 million for the fourth quarter of 2015
• Rental revenue increased to $29.4 million for the quarter, compared to $28.6 million for the fourth quarter of 2015
• As of March 31, 2016, weighted average effective monthly rent per unit across all 42 properties, consisting of 13,155 units, was $811, while physical occupancy was 94.5%
• NXRT completed upgrades on 387 units during the first quarter of 2016. Since inception, we have completed 3,030 upgrades and achieved a $87 average monthly rental increase per unit, equating to 21.1% ROI on all units leased through March 31, 2016 • Same Store rental revenue, NOI and occupancy increased 8.4%, 13.9%, and 95 basis points to 94.6%, respectively, as compared to the first quarter of 2015
• During the quarter, NXRT contracted to sell three assets, two in Jacksonville, FL – Mandarin Reserve and The Park at Regency and its sole asset in Austin, TX – The Meridian. These sales are anticipated to close in the second quarter and generate gross proceeds of approximately $64.25 million.
1 AFFO, FFO and NOI are non-GAAP measures. For reconciliations of AFFO, FFO and NOI to net income and a discussion of why we consider these non-GAAP measures useful, see the "Definitions and Reconciliations" section of this release.
Jim Dondero, Chairman and President of NXRT, said, "NXRT got off to a great start for the year with first quarter earnings exceeding guidance across the board, while delivering double digit Same Store Other Income and NOI growth, at 18.2% and 13.9%, respectively. Management continues to substantiate the value creation strategy identified at the outset of our public listing, and we remain confident that our strategic portfolio of well-located Class B properties in thriving Southeastern and Southwestern markets will continue to outperform the multifamily and broader real estate markets."
First Quarter Financial Results
The Company recorded net income in the first quarter of 2016 of $0.3 million, which included depreciation and amortization of $9.6 million. This is compared to a net (loss) of $(5.9) million for the first quarter of 2015, which included depreciation and amortization of $11.6 million.
For the quarter ended March 31, 2016, AFFO attributable to common shareholders was $8.9 million, or $0.42 per common share, and FFO was $8.6 million, or $0.41 per common share.
The changes in the Company's net income/(loss), AFFO and FFO for the quarter ended March 31, 2016 as compared to the quarter ended March 31, 2015, primarily relate to the Company acquiring, owning and operating an additional 4 properties for a total of 42 properties as of March 31, 2016, as compared to acquiring, owning and operating 38 properties as of March 31, 2015.
Same Store Properties Operating Results
The Company's Same Store property pool at March 31, 2016 included 32 properties totaling 9,428 units, or approximately 72% of the Company's 13,155 units. These Same Store properties represented approximately 71% of NXRT's NOI for the quarter ended March 31, 2016.
Same Store rental revenue, NOI, and occupancy increased 8.4%, 13.9%, and 95 basis points to 94.6%, respectively, in the first quarter of 2016, compared to the first quarter of 2015.
Disposition of Assets
During the first quarter, NXRT contracted to sell three assets, two in Jacksonville, FL – Mandarin Reserve and The Park at Regency and its sole asset in Austin, TX – The Meridian. These sales are anticipated to close in the second quarter with total gross proceeds estimated to be $64.25 million.
Value-Add Programs
In the first quarter, rehab capital expenditures, which includes interior, exterior and common area improvements, totaled $7.6 million.
First Quarter 2016 Dividend
On March 7, 2016, the Company declared their fourth consecutive quarterly dividend of $0.206 per share of NXRT common stock, which was paid on March 31, 2016 to stockholders of record on March 18, 2016.
Reaffirmation of 2016 Full Year Guidance
At this time, the Company reaffirms full year 2016 guidance for NOI, FFO, and AFFO as follows:
•NOI: $69.1 million - $71.1 million
•FFO: $1.49 - $1.57 per share
•AFFO: $1.54 – $1.62 per share
Additional information on first quarter results and 2016 financial and earnings guidance is included in supplemental data that can be found in the Investor Relations section of the Company's website at www.nexpointliving.com.
Supplemental Information
Supplemental information to this press release can be found in the Investor Relations section of the Company's website at www.nexpointliving.com. Our filings with the Securities and Exchange Commission are filed under the registrant name of NexPoint Residential Trust, Inc.
First Quarter Earnings Conference Call
NXRT will host a call to discuss its first quarter results on Tuesday, May 10, 2016 at 11:00 a.m. ET. The number to call for this interactive teleconference is (800) 344-6491, or for international callers, (785) 830-7988, in each case using passcode 1737479. A live audio webcast of the call will be available online at the Company's website, http://www.nexpointliving.com (under "Investor Relations").
A replay of the call will be available approximately two hours after the call through Tuesday, May 17, 2016, by dialing (888) 203-1112, or for international callers, (719) 457-0820 and entering the confirmation number, 1737479.
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 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.
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