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): October 1, 2024
NEXPOINT RESIDENTIAL TRUST, INC.
(Exact Name Of Registrant As Specified In Charter)
Maryland | | 001-36663 | | 47-1881359 |
(State or Other Jurisdiction of Incorporation) | | (Commission
File Number) | | (IRS Employer
Identification No.) |
300 Crescent Court, Suite 700
Dallas, Texas 75201
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (214) 276-6300
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | 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 Exchange Act:
Title of each class | Trading Symbol(s) | Name of each exchange 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 1.01. | Entry into a Material Definitive Agreement. |
On October 1, 2024, NexPoint Residential Trust, Inc. (the “Company”) refinanced the current outstanding debt on 17 properties (the “Refinancing”) by entering into 17 new loan agreements (the “Loan Agreements”) through J.P. Morgan Chase Bank and the Federal Home Loan Mortgage Corporation.
A summary of the terms of the Loan Agreements are set forth below:
Operating Properties | | Type | | Term
(months) | | Outstanding
Principal (1) | | Interest Rate (2) | | Maturity Date |
| The Venue on Camelback | | Floating | | 84 | | 36,465 | | 6.25% | | 9/30/2031 |
| Sabal Palm at Lake Buena Vista | Floating | | 84 | | 56,220 | | 6.25% | | 9/30/2031 |
| Cornerstone | | Floating | | 84 | | 45,815 | | 6.25% | | 9/30/2031 |
| Versailles II | | Floating | | 84 | | 15,706 | | 6.25% | | 9/30/2031 |
| Brandywine I & II | | Floating | | 84 | | 59,526 | | 6.25% | | 9/30/2031 |
| Bella Vista | | Floating | | 84 | | 37,400 | | 6.25% | | 9/30/2031 |
| The Enclave | | Floating | | 84 | | 33,440 | | 6.25% | | 9/30/2031 |
| The Heritage | | Floating | | 84 | | 29,810 | | 6.25% | | 9/30/2031 |
| Summers Landing | | Floating | | 84 | | 14,135 | | 6.25% | | 9/30/2031 |
| Residences at Glenview Reserve | Floating | | 84 | | 33,271 | | 6.25% | | 9/30/2031 |
| Avant at Pembroke Pines | | Floating | | 84 | | 248,185 | | 6.25% | | 9/30/2031 |
| Arbors of Brentwood | | Floating | | 84 | | 39,977 | | 6.25% | | 9/30/2031 |
| The Verandas at Lake Norman | Floating | | 84 | | 30,113 | | 6.25% | | 9/30/2031 |
| Six Forks Station | | Floating | | 84 | | 30,430 | | 6.25% | | 9/30/2031 |
| High House at Cary | | Floating | | 84 | | 32,478 | | 6.25% | | 9/30/2031 |
| The Adair | | Floating | | 84 | | 33,229 | | 6.25% | | 9/30/2031 |
| Estates on Maryland | | Floating | | 84 | | 37,345 | | 6.25% | | 9/30/2031 |
| | | | | | | $ 813,545 | | | | |
| (1) Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties. |
| (2) Interest rate is based on a reference rate (30-Day Average SOFR) plus an applicable margin (109 basis points), for each new mortgage loan origination. The term for each new loan is 84 months with interest only due for the full term. As a requirement for financing, each loan has an interest rate cap with a maximum strike ranging from 8.16% to 8.91%. 30-Day Average SOFR was 5.16% as of October 1, 2024. |
The Loan Agreements include representations and warranties, affirmative and negative covenants, events of default, and other provisions, customary under the most recent forms required by the Federal Home Loan Mortgage Corporation for multifamily properties. The Loan Agreements are secured by mortgages on each applicable property.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
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 | |
| | Title: Chief Financial Officer, Executive VP-Finance, Secretary and Treasurer | |
Date: October 4, 2024
