NXRT - Earnings call transcript Q1 2020 | NexPoint Residential Trust, Inc.

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Operator

Good day and welcome to the NexPoint Residential Trust, Inc., First Quarter 2020 Conference Call. This call is being recorded.

Now at this time, I would like to turn the conference over to Jackie Graham. Please go ahead.

Jackie Graham

Thank you. welcome company's Residential quarter results XX. and to conference ended everyone, the review for day, to Trust's NexPoint call March Good the first

the President and Vice Investment Officer. Mitts, Officer; On Matt Chief are Chief and Vice and Financial Executive Executive McGraner, today call President Brian

As this being call webcast Web the company's a at www.nexpointliving.com. reminder, site is through

Litigation XXXX the Before call contains conference are everyone that meaning the management's assumptions we of this current begin, of I and would like Reform Private on based beliefs. Securities statements that remind within Act to expectations, forward-looking

assumptions, words Forward-looking its expressions as quarter and statements strategy related can of statements often and be XXXX, and or limited year could are variations those full planned return are are any anticipate, identified the these similar NXRT's results expected rent in including results that net by future risks, to, and but investment, acquisitions subject differ materially the average These asset regarding value to COVID-XX actual forward-looking expressed in such forward-looking change and components include, to the uncertainties, for intend second negatives NXRT's words. projected rent, value-add expect, statements. and guarantees and of programs, not statements assumptions and cause crisis. dispositions on from not They

any publicly or and statements. by NXRT the statements. forward-looking required forward-looking filings the other not should discussion to law, of company's recent affect most company's Annual review update the and risks place and Report undertake not Except a more to the Listeners undue factors Form other encouraged reliance statement on any SEC could that forward-looking are on XX-K for any complete revise with does as obligation

loss all adjusted in used should performance. includes not financial analysis NOI, to from as or funds operating funds which or non-GAAP and This operations accordance FFO, income Core FFO, measures for are be core GAAP. These conference a supplement income measures with operations AFFO or or of funds of net non-GAAP considered substitute from operations and call from net a also of

Core see For earlier company's FFO, release of a more earnings complete AFFO was discussion that the filed and today. FFO, NOI,

I would go Mitts. now Brian Brian. over Please ahead, call turn to to like the

Brian Mitts

Thank you, Jackie.

everyone want I think call Obviously, quarter earnings welcome discuss to of We a the to the here our really First, XXXX. for highlights quarter. strong it's we'll QX. first

people are happened most suspect past interested I what's However, the in more quarter-end.

of had So based forward impact on spend and light going time the on see the done we we'll obviously that. issue on what it's some and we've in us COVID-XX what

start, we'll of markets think benefits major our in have in the that going kind I is I and been underpinning geographies. we the benefit the are of our has second strong we're think housing workforce this the on the we and our before of both resiliency throughout is commentary, time strategy. segment specific ourselves that to in. So those we particularly find two entire themes unprecedented very touch of We One a focus asset of on that

in to XX% in is quarter a And increase as million COVID situation. in million same-store the diluted reported reporting XXXX. or reported net guidance is or X.X% the quarter period same or first we're QX increase or to me loss of million of Let quarter of NOI We our as per XXXX. which share, a to $XX compared with $X.X $XX.X a diluted diluted than generally negative of XXXX first We share, from increase per as QX income an highlights with $X.XX $X.XX net some which which other XXXX. $XX.X share quarter Core FFO or well line of start compared per for million $X.XX the to last of compared consensus,

three sold of gross net $XX.X we proceeds of million. proceeds closing repayment quarter, properties costs million the $XX.X after for total debt and During

multiple a the XX.X% and IRR invested on a capital. realized transaction, we On X.XXx

and QX the an NOI net had and respectively, for XX% was XX%. revenue which were for year-over-year was margins XX% Total $XX.X period with year million we XX% large quarter $XX same million, acquisition last total activity was reflects of which in of in increase line of NOI XXXX. the which

an by value-add XX quarter the to units and rent the XXX XX.X% of $XXX on premium and continue leased, of a average completing with return renovations partial execute We investments. the during being business and full the plan achieving upgraded monthly four

partial XX, a During of the return an and average investment X,XXX XX.X%. quarter, we monthly [indiscernible] to-date full portfolio rent of as March on achieving completed of premium and upgrades across the $XXX

XX Additionally, and partial we installs had washer, across properties technology XXX XXX quarter and in of the all in is the to-date, of dryer Home we've we included the which full completed completed installs XXXX, units in X,XXX quarter. first Smart for

used on gross and raise almost that's a million at Before, $XX proceeds free to And weeks yesterday, $XX of quarter the share of we the an cash shares sheet. million our repurchase the through million used short ended available utilized per revolver. outbreak the of stock at we We $XX few price later, price average balance program with buy X.X pay proceeds share. $XX.XX we average and the saw approximately net COVID repurchase just an of then to ATM per our of to down hit,

and the to cap period have Given over the rates our unprecedented what values outlook NAV cap certainly disruption NOI. based and we've Nevertheless, of we're difficult our an short pretty time, is updating seen on become judge. of unprecedented economy rates in revised

midpoint this discuss at detail, in approximately mid-term March $XX.XX [indiscernible] but our NAV arrived end, quarter determining in quarter-over-quarter, $XX.XXor Now, high-end year-over-year. based on all $XX.XX, decrease low cap of we the a increase revised $XX.XX those how view and our we rates our are NAV, XXXX what on little more will to in at midpoint the on or last it's $XX.XX, for that XX% the compares XX, of X.X%

XX shareholders of on of as dividend share per Today, we XX our covered March of core on shareholders or record For of Board record by is dividend our paid March On to a June first the of payable declared $X.XXXX core share XX. to payout FFO. Monday, our quarter, $X.XXXX our FFO per of XX. June XX% a a dividend X.XXx of ratio on

Just general. comments things to as I for some sector brief and QX before on to we much strong on detail Matt response give came then, this. very our it into turn the us dramatically. changed obviously, over think in But COVID-XX pretty more March started off I

of lockdown. in most really interest the and in Our very around over saw the everything markets, record of lockdown, place, into downward went time markets, movements to period. We real unprecedented pretty much estate markets safe-at-home country short a unemployment market, saw eight six I rates, a equity think a a like claims shelter week in period just

obviously will did through disclosed of everyone. and previously for And took and hardship of all details true on in we safety new our residents just BH, out some Matt drastic give we've with implemented property rolled But employees. this, actions, those. our can verify some is for residents these plans that releases. summary manager, we protocols press as So a payment We

goal sure that drew any had issues, We We of had sheet. increased maximizing communications little on of of stock the in to capacity And sure our to true increased just immediately available and credit non-payment our repurchase then making the just we plenty that, sure earlier. liquidity plan make to bit out in a began helping a need. residents make a were facility collections front our with residents we were use we we balance with immediately or discussed

turn I provides we that on CARES disclosed prior April unemployment residents' to if our average it before over a press expanded provided by benefits been we've previously release about estimated XX% Act this off. they've income in finally, And laid XX, Matt, on the but of the

of April of And that collection CARES Additionally, eligible two and residents us as through we the think have around May. Matt XX% we details XXX% maintain estimated things stimulus a rent across under things the certainly all were considered, collections, the April strong and those pretty our helped Act. the provided given goes May for

year. to increased XX.X% a last of same-store income as Same-store rents, increase. point XX.X% million $XX.X as same-store pool quick million in driven which million, NOI XX XX% from diluted X.X% QX $XX.X was properties highlight basis X,XXX X.X% a or $XX.X increase total that well $X.XX and $X.XX in a quarter revenue million, for diluted $XX.X versus for increase. or XX% $XX.X results, also a $XX per FFO a XX% share Just increase. million is QX share year increase $XX from drove compared a the $XX.X occupancy a NOI per of million XXXX, XX Core effective of to million was versus or increase the X.X% million by this units, of rental was to

pretty withdrawing guidance, the obvious uncertainty the guidance, formally there's it's lot I in peers. line our marketplace, as far with sector As and think of a I are so entire think we in

work done we've lot our we However, around analysis and a rolls, markets. our rent of see in what

compelling, that FFO we stress numbers. strong Matt's scenarios speaking, run have some what some are so produced relatively And think pretty core

for go to year. going but that, we are he's withdrawing our formally So some the guidance into detail on

over the let to of that, around we've outbreak. since what get the into details turn it Matt me With and some COVID seen

Matt McGraner

Thanks, Brian.

Phoenix of during six NOI quarter We mentioned, Phoenix, to going saw results, as for were by Tampa. and XX across but NOI they time out markets Houston, entire XX.X%, on growing strength our as portfolio were the ton Notable Nashville, in QX Charlotte, with respectively. the first Orlando not growth X.X%, usual, at markets quarter, NOI and by including Brian of spend I'm XX.X% X.X%. same-store strong, first Tampa and growing the strength a same-store

lease activity overall high rates at On growth rent and top the being QX and and XX the X.X% points operational for portfolio, for with portfolio front, blended us at new QX historically better occupancy Tampa, year-over-year were relatively growth finished our revenue growth. and improved X% or strong basis renewal and South markets of Overall Atlanta, XX.X%. X.X% Florida, for a Phoenix the leasing posting

were norms XX.X% with quarter First in collections rent. historical line billed at rent of

occupancy for XXX portfolio-wide same-store record as of performance X.X% each Rent April X.XX%; April at Renewal XXX our XX.X% at for renewals We over collections the metrics for For a follows: signed X% to portfolio, new of XX%. month leases up a QX from the was operating XX.X% month our the preliminary and XX%. for leases, in and April just the down growth. month X,XXX finished April; company. totaled total are retention

close Our XX% time data up last the month of at business X% month. so collections today XX trends sits XX-day this at totaled Rent far XX.X% with May, and for follows: respectively. same yesterday preliminary and the is XX.X%, as as of occupancy from XX% Physical

May, at signed a So far rate XXX X.XX% have in leases we total of increase. blended of a

May XX%. to for retention increase or renewal of We remain expect north

For our base QX upgrades, and partials rehab upgrades, incremental pipeline, temporarily halting complete is exclusively case XXX to we're new almost full our as additions.

units turned continue full have to to sense We to expect rehab classic that to financial make turn upgrade and status.

we of at April, these XX premium for approximately and XX%. For rental XX.X% completed least XX and of upgrades, a ROIs

still in many assumes are XX slightly complete a the better upgrades for bullish May. as XX to believe renovate May, in second more quarter scenario. we For scheduled is and units reopening units, to base under we reason our do case as There XXX total we June, that could than

bearish the an assuming we XXX additional do upgrades, June. side, in we'll XX On think

mentioned, prepared remarks, our Brian of we apartment portfolio the on through line. health market walk of to to and view rest like our my markets you conducted have some tests, the stress For as I'd

unpack some operating a worst-case is a near-term, number environment range moment. we but of challenging scenarios, over a we one, to and view a leasing in Here have the be health I'll on expect also which sure, observations:

view, macro affordable to of a a our have yet residential we assets in fortunate from the Second, are high-quality constructed located is view portfolio Sunbelt.

in economic markets, obligations. Brian curtail than regulations resume of by may collect apartment ability satisfy in the REIT the reopened more our have earlier as and a reopening of our that be of the to enacted economic immune This to government to our May. underlying said, perhaps universe of markets rent landlord's and will will own be most means end or activity already All process

or Furthermore, our demand. number Georgia, temperate one, pre-COVID, coastal affordable migration view housing is in Texas, and be the markets of will and net that, Arizona. lower-tax, climates Carolina, warm beneficiaries business Tennessee Florida, always are two, North outward And from gateway number of the

even that more is reverse trends them investors demographic these does who get belief power access asset portfolio making accelerate deflationary but may, to flows fact, in to positive Our and to trying in NXRT's COVID an not near-term environment. relevant otherwise pricing are

and baseline our a metrics. certain a operational assumptions added resiliency stressed as to GFC downside said, the scenario portfolio's I we using As few a case more provide to draconian

sell-off accelerated some the on since provide and Given wanted and performance hotel we base NXRT's stock negative that REITs some had even in assets to some apartment underlying March that our closed own and underperformed EBITDA, literally resiliency February portfolio. of color tenant our the

literally We to down were have the on stressed conducted debt current status XX asset job tenant's portfolio-wide. $XXX,XXX with We history, The each roughly a basis bad XXXX by finished income, results asset, to portfolio, expense by deep submarket, dive portfolio. submarket points the of and encouraging.

for GFC deal debt the of wider nearly deal, is year XXX wide basis and by bad to over increased over Green Going bad X% the year which points the revenues Street we've basis XXX of eightfold trough. stressed for -- estimates $X.X points eightfold than or debt million,

as for their our portfolio's and has to "hardest relates the the to base hit" exposure underlying following leisure Houston energy tenant were sectors. on sector, Nashville and Las hospitality We gruesome exposure even and Orlando though it Vegas, COVID's particularly

XX identified to hospitality the Las In just Vegas, or or residents residents have XX% within Orlando, In Orlando of our and residents roll. X.XX% our with just resident Houston, our our of portfolio we we In to X.X% XXX exposure rent XX that roll. direct or exposure rent to strip. gas of have industry broad direct and identified oil service industry the exposure base

and this assets our draconian and information ratio plans a payment income average GFC, bad the rent and back stressed XX%. roll the related BH's goes particularly date approach approved dating activity to Given and approximately delinquency our too was on given not to we back of portfolio feel rent forgetting debt, that that hopefully history is to its operating our collection pre-COVID B to to to C XXXX within portfolio, in

rates for stress year. in side, rent On XX.X% the flat XX.X%. through to implying September reductions following these occupancy prior almost the negative year, April be of off occupancy of Collectively economic million. also to remainder assume decline of would we is to modestly go and the Physical $XX revenue market assumed the for our scenarios, projected revenue

comp seen we side, the expenses also scenario, have with non-controllable and across In flat our expense the through we this these savings April. told, XXXX per positive a estate draconian prior tax assumptions, assumptions increase share. which if scenario, $X.X in yield compared approximately controllable keeping portfolio. X.XX% a from to you'd of $X.XX On XXXX. have All still applied remember real we're This include amazingly million these approximately Core trends FFO

put share Vegas, cap we NAV outperform midpoint, trade at at Class basis the XX% Street side, XXX assumptions, they than Green Green assumptions on and by Class a per Houston XXXX They still applied NAV for NOI coverage on the in the their believe, today. have points sector we $XX.XX cutting On a will are Street's by Las as revised increase does an modestly in wider do, in in B they which midpoint at apartment discount of way, XX that but particularly their we rates, that A universe broader April arrive out we implying communities. in communities

I to teams importantly, at BH work NexPoint difficult just the our and this want for So hard all period. during thank

turn back your it forward to to I and over Brian questions. look answering

Brian Mitts

appreciate I Matt. Yes. it,

Let's go questions. over ahead it turn and to

Operator

will We hear Instructions] Raymond first with James. Horne from Buck [Operator

Buck Horne

encouraging results Congratulations so far. on the

How differentiations knowing approach to in your incoming in some that holding of How do do whether one renewals or your think seeing I still to think forward? pricing in you June, your want do going going of for handle approach with like renewals asking or want that demand will how to of you you're you how what are strategy? and start up, is to moderate pricing, that August. terms Let's your seems it's you July strategies out it

Matt McGraner

flat. most seen the of I think part just keeping universe a any as approach just We've Yes. you've increasing of everyone broad taken mentioned, and seen of rates, the has not

of grow point that given is markets. when particularly there roughly can our Our we view, in price $X,XXX our demand rents, is still

depending So trend but the the health taken in that resident April it of upon the approach, site, have have at sort site-by-site resumed halted we a base. approach, of the

and strength, while a trying resident their we're is we Las to that rents, increase Tampa, and Houston, mid-XXs a in can taking We've at modestly and still ratio. where maintaining approach. XX% our we retention Orlando such obviously, where a So to X%, retention is possibly think But for almost we -- different underlying to a as certainly we're to X% for think May Vegas Phoenix XX% going scenarios and close June. to markets have run in

really fits all is one site and So approach, size site. a it it's not by

Buck Horne

maybe or Phoenix, little these could a whether put extra you where about color be you least differential insensitive where And more were gas, or and great. those hospitality holding may Nashville, employment toward you' markets markets it's patterns oil talking at major there any are up are impacted? on the Houston, have Okay, markets some where Orlando, markets? there drill and greater down on able diversified versus degree Were How been rent of sensitivity. think disproportionately in collection to discern these

Matt McGraner

Yes. question. No, great

We have on something we focused dramatically.

bear lot Vegas "worst-performing" detail. April at give you really well, XX.X%, were with it. a that's but at collections, at then XX.X%. the Houston some XX%, me, And Las So Orlando markets I'll of

payment plans an are kind they increase. XX%, are So were those and of through seeing today, of of XXs. kind kind we so of to three XX% payments low -- With all those are made

Orlando, But XX%. doing is the is by bit Nashville the which as at Vegas XX.X%; collections have Houston time way at dramatically those been up a In today at XX%; good. X%. better April we've XX%, little the same from is stated, by Brian really May, mentioned, and markets, as almost in right same

they the have were and were know. stood DFW. those collections is where So The it's as every you so those Really, and the are weakest. Atlanta, May market kind to were good, Phoenix, Tampa, April for of diversity, helpful strongest other

Operator

from Baird. We'll Kubicek with Alex now hear

Alex Kubicek

if Real Vegases assumed curious guys is helpful repriced and Orlandos color oil industry attractively be that cap just hospitality markets. the there things to opportune you rates of rising? be and of time drop thinking. on could pain the an opportunities sale, with kind your acquire it of Do are Feels some what you exposure could the really to temporary, some believe on those there world out like

Matt McGraner

Yes.

force I think, sellers that great to I a early, of is then not transaction agencies loan And it's ton not constructive a in there's because think too to and for or think the there's to year. near-term maturity a been wall be ton the going opportunities if pattern I it's don't this there just crack. by whether is, market the of deal the with even extension. forbearance there's just

think we've of best the owners weak to weak there's don't selling. will I owners. assets. to necessarily be and markets, But pick tried inferior of in own submarket tertiary So more most -- going forced tertiary any these be There the locations kind

as and going they're on-sale to be the appear in it's some not focus. can't ground the concessions and in of with don't are see market rolls, but see in at of space, that year. will that the out big in liquidity supply transaction be apartment will value-add our our have get and markets, the challenged it coming markets, somewhat much new a rent negative traffic you don't I this do I assets. deals I Yes, that that lease-up least think for

think, coming more of housing out this, affordable than do be ever. is going I to relevant

to beneficiaries with affordable demand when won't in for affordable any apartment And your still garden-style, you our be at to there density housing you pick pricing side. at sure can where but market, in We you supply where I find is, rental on single-family all housing to supply, a new least view here. And the is particularly will the positive it lower estate that unemployment need you jobs and create going on think got be to power. real be net points while. try and think deflation the look demand

Alex Kubicek

you how active options? as one versus a the Obviously, That's to going trade And for you rank just helpful. curious were as methodology your capital deployment is you curious quick but one stock stock then guys of published NAV. material guys continues me, guys discount repurchasing to at to just if more other be late,

Matt McGraner

always we've mean, discount. been of I at a Yes. stock, particularly supporters the massive

in of and I X.X%, shareholders. us not doesn't think raise made capital quite going for to look pay if We're history it our acquiring or stock, money deploy down for we've you time, at our to capital some debt, first mature then so were it's our X% even to not that. in stressed And in active of NOI that trading early number, an cap April, interested we implied quarter when north and rate, a X.X%. during at are stock, our the doing we at

and that portfolio we So we see things our know it. don't think we'll as again and normalize adore

a So some I focus out is there the up if great rank be the at buyback transaction versus there we going that's think look pretty do to ours Putting of always going market. high. but continued in aside, it, opportunity, we'll

Operator

And hear with from we'll Abramowitz now Jefferies. Peter

Peter Abramowitz

thoughts your to of the wanted to increased at the ask expire claims that is set unemployment about end Just July. on

So there's potentially about extending that. legislation some

wanted if on you depending any the potential what Just outcomes know different thoughts collections there. and on happens have to

Brian Mitts

we economy. benefits, certainly, mean, our reopen if seems is that lot first massive and extend not represent of markets but large to still front lot like haven't the would newly to given or that a we've it last make And the that wrong, It of they've be that seems mean seems like in they're the in a said -- economy been a what had massive like into things seen the has to states good I the the physical movers, accommodating economy, pump of been pretty of a stimulus reopening going unemployed very totally there pump seen use are they're could in this, unemployment in into that, near-term. government be slower. the stimulus unemployed we seems going trying but they economy. I think sense that of around which the it it's two that's to months, number to markets like going I

So I that. that do would think extend they'd

Operator

with We'll hear National Gaurav Securities. from Mehta

Gaurav Mehta

on of have guys Following on you residents unemployed rent? to payments do your meet dependent an unemployment, of what unemployment idea up their percentage I and are guess

Matt McGraner

Yes.

not I going and yours. question So then to apartments. that answer aren't Peter's these guess I'd C back It's

on-average, year $XX,XXX And average household for is rent a income to is, an of $XX,XXX so the rent $X,XXX. roll

Just out little almost plan about units XXX of people than requested of XX,XXX payment financial for which a a requested X%. north hardship, is less of kind

lost in is So their maybe their that XX% our job. kind view lost XX%, those payment numbers, half think at probably Again, of sort the be so those job. We're just of tenant half folks XX%, XX%, undergoing some currently of of base I our but it's that not unemployment. XX%, like X% it's of may plans, requested

Gaurav Mehta

you Okay. about in cash April. tenant what are seeing base? some see that, better what color collections Can being on, And talked you guys than and what from saw rent you your guys guess, you I provide do what's guess you I driving

Matt McGraner

and feel little they'd better at or But and that's you're folks non-discretionary, look view large, Yes, feel about think the sure, stimulus I about actual if it's because consumer is again that's to mean, reopening. think to a it's think going Dallas our you're get jobs. going in see to to starting and that are personal bit driver, I driver markets I the think one road. And spending, but investors of personally. My people is seeing not that's the other open their our by and increase, it's more number and the better equity why the some checks, reopenings that people states markets the traffic, reopening I resume. models various are themselves. numbers when help anticipate And on just foot I up of the to in going did economy traffic discretionary and

signs markets. So good it's think our I and encouraging, for its

Gaurav Mehta

Okay. and renovations. talked about you the you underwriting has And you're full changed? further Are of some your full or upgrades continuing the similar adding still pre-COVID underwriting that on lastly, returns upgrades

Matt McGraner

in pretty April, I rent. Like said, a got we in same. increase the That's actually sizable

still Sometimes, the XX% We XX% got we're ROI. in XX%. XX% increases was XX% and rents, to to place

particularly open can as So demand two are and we are markets that well those still that in performing Florida it Phoenix deals is that feel like South and examples. our there, and absorb

continue. not those now, And we're going right pursue But see still of capital. don't, good they we think to we use for So when a that's them.

Operator

Michael question now Lewis SunTrust. with We'll Instructions] [Operator take from a

Michael Lewis

execution As you really equity good you and about, repurchased. the you on issued have talked

nice headed now carrying got loan while economic cash you just to like sheet than It have balance the you're until if I and about maturing on line that, your elevated for to balance early the a a get downturn. XXXX. cash we're but looks a high here? It you don't trying anything to be really be other dated might You've you'll into to balance Do management and think ask maturities. particularly just liquidity prolonged thinking for wanted how leverage, a downturn.

Brian Mitts

Yes.

there's I more definitely, higher until we'll liquidity. and keep we that clarity certainty, think

a concerned may debt to versus cost said raising given lot and to maturities, down the it want we're clearly, on be we're of of kind on or X% liquidity lot when higher in about at we're repurchases. maintain cautious all environment very to We'll of Matt a normal. the capital where we'll longer-term stock given think so acquisitions as not it's going capital I a than our spending whether And some new equity be been we before, think capital, be is rehabs, about as raised, in. our be. And not others at about cautious I where new just historically of pay As leverage an has there's rate where

Matt McGraner

described. debt profile pretty our bad cash down that, free even add scenario $XX million, flow X% under is compelling just I'll to that the I

some You're maybe a that our FFO number, dividends, core out fact, a that still share, versus for XX% payout cut a their target which ratio based north dividend people supports, in to juicing example. on have of increase $X

we pretty free the smart it. be good we'll said, about feel the So but be Brian as cash we'll about profile, position, cash flow

Michael Lewis

of a of talked of your in on gave you you renters hospitality for overall high-risk then sector your harder And work I of some you hospitality, bit many And oil portfolio? and in retail, apartment this their also exposure, detail how Do low Houston from now. little kind be wondering, home the was markets. tenants might high-tourism or Okay. working your surprisingly know out those tenants many know those some of about the are then in the jobs restaurants, how answer, working to if

Matthew McGraner

Yes.

through to service, think of retail the but categorized and XX% and to retail whole what that of rent about and we have is exposure the a CVS. gone hospitality We include can portfolio add those at and pharmacist up buckets sort the and three

not metric but data, you. a for it's So it is great

The home, we that questions surveyed last opportunity this apartment we We point, to folks about, WeWork an of is our some are seen that or management year with create something but talk for some or I've an work teams from at other already acquisitions. new REITs on trend complex. haven't started

opportunity, And but anecdotally the don't I'm so be we an figures. that sure but have could it's happening, just

Michael Lewis

And me, to just lastly going where still I taxes. for That's with question. ask was about That's then helpful. wanted the I property

guess estate, curious sense with of any have over to real your risk it's all but the kind going thoughts. values do estate that for need I to money down, of taxes battle I be think some get too after don't go, in of be might how might kind all but this. I real So you know maybe if so of governments of are early,

Matt McGraner

when going topic that this in at be XX% up is, billed enforce a to in approach underlying about you XX%, Tarrant it's should on landlords, argue the taxes can't income. going still year-over-year. accounting impose evictions in to passionate have view increase is which rates time Dallas been very because I'm should be a property collections, municipality hard moratorium value for County their up and My and Yes. or same ruthless

So there's think that arguments I going be that. against to

either. Our "experts" that probably think of any tax we analysis this materially relief nothing get but won't goes that up, out necessarily

So sure I'm a answer, that's not but great --

Michael Lewis

my for all question. taking right. sounds That Thanks

Brian Mitts

the any our tax on Yes. get that going I'd say assumptions into it's baked to tax massive we're relief not of property that side.

Operator

question to moving with Villard Now Thalmann. a James from Ladenburg

James Villard

but one, any pandemic? too in, a idea in Houston to jobs test return this your not that stress say, got might little and It's guys. have into this morning, the so Vegas for Good far, be you thought early Las the post put

Matt McGraner

did, global crisis. Yes. economic the in We the in plus-plus we the which Vegas, we an to bad financial stress mid-XXs, was you which in crisis a occupancy trough global when financial in did, debt which

So we took in Vegas.

So we XX%. down took Vegas

is scenarios, we're view those north Our maybe that's draconian in somewhat a perhaps of a And core. appropriate. share $X even but

much diversified than a is Houston Vegas. more economy

now Houston, Houston price of feel frankly, bit about And in the quite the that it at assets but folks. assets as our there little some us we don't largest performance portfolio, a So other of better the the as are best might point. particularly our concern much

James Villard

layoffs, guess, my mean, guess that of a be built and with you to a I one? gas the oil Is more estimates, on in lag any kind industry. there Do of lag any I your it to compared I more, models would have the lag into hospitality

MattMcGraner

that quarter for all take year. mean, first Houston mean, up of we and I letting until I there's just beat matter no like I them XXXX. Vegas until Yes. just and mean yes, up relentlessly We take

Operator

no with to additional your And closing call questions remarks. in the our Instructions] queue, [Operator turn I'll host for back

Brian Mitts

May where talking have. up that you weeks and in the we've it meetings few already got continue to whatever of got REIT topics a directly us here and with Yes, Nothing say obviously to look And from on will they forward things thank some communicate investors we've moving other scheduled to relevant to coming than information we further virtual happens. quickly are you. as then

for So thank your you time.

Operator

and ladies We conference disconnect. conclude this that now for and participation thank with you you today. for your And do your may gentlemen, will

NexPoint Residential Trust (NXRT) 9 May 202020 Q1 Earnings call transcript