Item 1.01. Entry into a Material Definitive Agreement.
On June 25, 2019, subsidiaries of NexPoint Residential Trust, Inc. (the “Company”) entered into a Purchase and Sale Agreement (the “Agreement”) with an unaffiliated third party (“Buyer”) to sell The Pointe at the Foothills, Belmont at Duck Creek, Abbington Heights, The Ashlar, Heatherstone and Edgewater at Sandy Springs to Buyer for approximately $289.9 million, subject to prorations and other adjustments as described in the Agreement. Buyer made an earnest money deposit of $9.0 million, which is nonrefundable unless the Agreement is terminated by Buyer under a provision in the Agreement that expressly entitles Buyer to a return of the earnest money deposit.
The sale of the properties is subject to customary closing conditions set forth in the Agreement. The Agreement also contains customary representations and warranties and covenants of the parties. The sale of Abbington Heights is expected to close on September 3, 2019, while the sale of the remaining properties is expected to close on August 30, 2019. There can be no assurance that the closing conditions will be satisfied or that the sale will be consummated.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which will be filed with the Company’s Quarterly Report on Form10-Q for the quarter ending June 30, 2019.
A presentation that includes additional information regarding the sale of these properties can be found under “News & Presentations” in the Investor Relations section of the Company’s website (www.nexpointliving.com). Information contained on our website is not incorporated by reference herein.
Cautionary Notice Regarding Forward-Looking Statements
This report 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,” “intend” and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the time frame the parties expect the sales to close, if at all. 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. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s Annual Report on Form10-K for the year ended December 31, 2018 and the Company’s other filings with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this report.
