NXRT - Earnings call transcript Q4 2020 | NexPoint Residential Trust, Inc.

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Operator

Good day and welcome to the NexPoint Residential Trust Inc. Fourth Quarter Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jackie Graham. Please go ahead.

Jackie Graham

you. Thank and company's Residential quarter results XX, everyone, to Conference ended to XXXX. the review for welcome day, Trust NexPoint Call December Good the fourth

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

the a As through this an at is call website reminder, nxrt.nexpoint.com. webcast being Company's

Before belief [ph]. and that this we conference's begin, I would like to remind everyone

includes all forward-looking which be non-GAAP undertake NXRT net by debt. This or Form and conference required debt annual and company's as supplement those on from core undue a detail company's that not are by described call should COVID-XX the taken and service in to specifically funds complete well adjusted as form the as effectiveness from and not to those risks funds the be factors of as and the statements made guidance the expressed and the in intend with limited of Listeners XX-K and variations but such and or uncertainties Forward-looking its negatives statements as results related from place XX-K, and to or return investments, strategy any net could guidance statements to loss and units in company, quarterly particularly words from and report reports operating total materially income statements forward-looking COVID-XX a operations or Commission, review programs FFO operations authorities publicly any todays to and and assumptions or more computed severity NOI, can its that statements. on measures and law, and treat and full-year forward-looking the statements, obligation net similar and with subject the related may estimate damaged are regarding They Securities company's risks, analysis pandemic the value, effects encouraged average by quarter words. except numbers, and performance expected FFO, expressions revise described often accordance are add reliance most on these actual report with the greater These any or including outbreak and business for AFFO, guaranteed future assumptions on call expected expect, return statements. filings non-GAAP of total should discussion may for could or a that the pandemic include affect operations impact; of and and are recent and of to including on or in of cause forward-looking These change or XXXX any dispositions. the not differ and rent in for funds to XX-Q. be Exchange projected GAAP. of assumptions. for substitute acquisitions of actions anticipate, of rent, first statements any not are in the measures this related general, in results SEC Form should ultimate filings geographic to NXRT's other industry those NXRT's and identified forward-looking date spread XXXX of value-added a the statements during only planned speak NXRT's The does annual its duration actions other assumptions on debt, contain income update financial conference components, the as used the core forward-looking our net and the taken not governmental

now like was Brian. For net NOI debt, Brian earnings that I the the over ahead, see turn release filed and more AFFO, to company's would FFO, call go core complete discussion Mitts. earlier of to FFO, Please today.

Brian Mitts

Call. Quarter Welcome, Fourth Jackie. Mitts joining NXRT I'm the here McGraner. for you, on XXXX us Thank everyone, and Brian Matt joined Conference with

compared Let year $XX to per as per to $X.XX XXXX. per an income $XX.X or the $XX.X me million as or or revenue in is is is some total NOI equal XXXX X.X% from diluted which XX% NOI reported of XXXX. XXXX XX.X% per margins for the Same-store increases period XXXX diluted and to share, highlights $X.X margins $XXX.X on to for increase million share $XXX.X an XX.X% XXXX. share, over $X.XX as The start Total of was of XXXX is million, were Net a million FFO $X.XX share same increase increase NOI XXXX. XX.X% and of million, diluted million during or was in compared respectively. with for compared core an of basis, XXXX. which which XX.X%,

completed $XX X,XXX average rent to plan Inceptions respectively, ROI. our continue we've X,XXX installs, and and partial completing business premium X,XXX ROI an of of an XX.X% and monthly partial We and technology achieving XX.X% year, an the XX.X% upgrades, value-add date, portfolio execute as December monthly $XX full package X,XXX premium a XX, and upgrades rent by to XX.X%, installs and renovations dryer washer and $XXX respectively. achieving average during kitchen of $XXX, the full

we're range stock update issued in cap for gross Based proceeds. approximately XXXX, NAV as our and During upwards on of X.X $XX.X per follows. million we revising NOI, rates shares million share

the midpoint high XXXX, year-over-year These the of ranging increase. or rates the compares Updated low X.X% $XX.XX, on the cap are $XX.XX. the NAV $XX.XX X.X% on low on the XX, end end of December and X% midpoint from $XX.XX, at end, on high-side. based On

NXRT's December share common stock an by a at of XX. we value March inception of $XX.XX facilities was shareholders XXXX X.X we to per December continued ensure $X.XXXXX stock repurchase have of to thoughtful price our per shares per price a We in stock record for of FFO first our million XX down ratio share. to at significant long-term as $XX.XX average March of specifically for at able dividend year. record XX. to track-record paid payout $XX.XX deleveraging dividend continue XXX,XXX year. Since our of the of aggressively general, For an quarter dividend $XXX NXRT; were an the average provided has the of of pandemic per XX% an million the Overall, date, average X.X average FFO share, challenges, shares $XX.XX stock core price XX of [Indiscernible] shares we our drops the core shareholders. to [ph] earnings, price including share. by and Year-to-date, capital facility declared by we of share [ph] stock have at creating covered to multi-year of pandemic of on at Board as repurchased by table million fourth of end common million Inception back covered share, Yesterday permanent $X.XXXXX for lows, The shares on some dividend on per increased liquidity. of paying issued hit plan shareholders XX%. stocks issued of continue common maximum the common bought X.X per our allocation and X.XXx although stocks the

since FFO. our As for in by million with a million of is Since under the balance core going XX, $XX we've $XX.X April capacity cash dividend liquidity sheet facility X.XXx FFO type $XXX of December XXXX, million covered we and performance public NOI regardless approximately on have cesspool powerful translating REITs core NXRT policies a the performing in we with XXXX. all being combined by allocation among grown and is property of of public April XX% XX%. stocks best in dividend one This REIT went

go Net revenues XXXX diluted specific Despite a compared by original $XXX.X per XX.X% operating $XXX.X results income FFO per for as to through or were basis. an is $XXX.X for $X.XX million share million challenges share, me of Let XXXX, Core increase. was pandemic, as for the million presented XXXX. increase full-year FFO on as share or the at guidance. some XX% increase. the $XXX.X million XXXX our to million XX.X% compared XXXX XXXX diluted million a or in or to the $X.XX compared per in midpoint our represents of came $XX.X to which in of core Total $XX.X

properties pool, of we For XX consisting Same-store our X,XXX units. have

Same-store increase by to occupancy from NOI for declined X.X% $XX.X XX.X%. increased the Same-store X.X%. million. slightly XX.X% XX And year is to million basis points Same-store Our rent $XX.X from

we We're as diluted FFO on pandemic XXXX. on began, the reinstating X.X% for starting guidance end, our per As did low in on this increase. X.X% low all end, of Core increase as full-year $X.XX end, increase peers the our which end, X.X% a of a [ph] with high the $X.XX XXXX X.X% high X.X% reach over the end, the a follows. second in expenses midpoint high basis end, share quarter the the of of $X.XX, percentage. guidance fall in low midpoint estimate of increase we an on increase midpoint on X.X% the will XXXX. Same-store Same-store revenue X.X% in represents the

the Same-store it we X% end, increase comments. to me increase end let For over in that, in have high With NOI, his increase the the Matt a X.X% and low at X.X% midpoint. for turn

Matthew McGraner

fourth Same-store Thanks, the the and at fourth in to activity Strength Dallas is Nashville Brian. were revenue in markets quarter for year only Notable continued growth negative, and Even XXXX markets that's XX flat for quarter our in third the six operational out fourth other Phoenix and and ended same-store slightly by at the Orlando were results. X.X%, market quarter the Houston the delivering out of and achieving our fourth at quarter over Fort in South Dallas The Fort conversions X.X%. at recapping out our NOI five being were for Phoenix growth second leaders and at the growth X.X%, during X.X%, of quarter quarters at Nashville X% of the pandemic, Phoenix leasing X% XX.X% markets XX the essentially I'll one at our every black. X.X%. start improve X.X%, with every market Dallas Worth markets at least X.X%, Worth of was X.X%. top at Tampa with five X% were rates Renewal renewal at nine healthy at X.X%, the or at in Tampa black. of and The growth better. at revenue Atlanta and at proven X.X% Florida the with Nashville XX% eight

and XX% occupancy over to report is the On front, well-positioned we're XXXX. occupancy Same-store for QX that remained pleased

portfolio trend morning, of XX.X% healthy and XX-day have and leased As XX.X%. the this the is

each positive generated improved Brian the by plans mentioned, growth only we the XX.X% X.X%, or the April Payments full-year in plans just Tampa XX.X%. X.X% average Orlando XXXX end Florida April portfolio as the The to payment Phoenix the XXX South in Same-store and as are continued better the have year XXXX and Same-store were of our outlier. across markets revenue at to line numbers collective payment XX.X% of decrease at X%, six of at the NOI X.X% as XXX. December for XXXX month-over-month X.X%. revenue plans April X%, are and with five at in our markets respectively. at at entire -- for program markets today strong in portfolios to eight Those least being growing good of since of of through Turning majority growth NOI Same-store a year in rents On growth of mortgage the XXX portfolio performance, plans all markets collections X.X%. payment margin out of held South offering Charlotte NOI with XXXX under and year X.X% XXXX. collected XXXX, nine least down and there started increased and by to XX.X% at XXXX of top Notable XXXX. charges. Florida Operationally in XX% were again Same-store Friday X.X%, achieving Phoenix overall the respectively, were Nashville total at

ROI one an cost acquisitions, upgrade generate Fairways XXX average of as XXXX $XXX in the per approximately at unit of Marcos acquired for at XXXX, four to market we million $XXX Fairways assets units for San Arizona at We Turning DC and asset unit an while Brian plan entirely. and Chandler selling of a $XX,XXX XX.X%. $XX.X premiums with million, exiting to mentioned, and

there smart We as of unit. premiums also monthly every plan in to tech to $XX we packages install a unit expect generate

already. X.X%. Same-store a our ahead or three-year underwritten guidance. XXXX is NOI is result, our growth $XXX,XXX budget Fairways for underwriting XX% asset As average this the of Today, Starting NOI

by we're As can at Brian strength perspective, we in X% expecting from a Same-store we're XXXX the and the particular across said, following grow optimistic NOI markets. geographical least

renovation supply $XXX and rental Atlanta growth, The for at terrible plans low high-teens Terrell Rockledge. rent premiums for demand the and and XX expect due targeting at Preserve We're to We NOI XXX by affordable housing $XXX grow ROIs. Mill Same-store to and at X.X% interior strength units, to over market XXs economic in XXX

Atlanta. result, As a budgeting X.X% growth for we're revenue

X.X%, revenue XX growth high on to X% economic from internally Tampa units NOI by grow surging Same-store this Florida. in Next, and trends both we to growth expect in migration again while net to to over by X% year, roughly market. to upgrade reach the the Also, continuing driven

Florida, by NOI economic X.X%, Next grow expect from again Same-store migration we to is internally surging net South growth by trends. both driven and

low We Creek large more Pembroke comprehensive the at upgrades at units XXs to particularly we at also $XXX Avant many Pines, a Florida, We're for expect and South premium or we the another ROI. renovation at in interior and pipeline amount XXXX. have complete plans for where success in XXX prominent Timber roughly our having see of Avant at tremendous upgrading in area

expect growth, migration Finally, NOI the of X% by economic markets rental Carolina. strength grow again, to North state driven Charlotte in and of Same-store by we net

Sunbelt material in We to of expect X% X.X% due for cap we Phoenix and unit a On Vegas NOI to expect Las markets, witnessing historical the Same-store below product, particularly units X% in X% high market, front $XXX a At candidates strength grow couple upgrade pay revenue assumptions in just imbalance revenue in style we roughly our to in upgrades Phoenix programs. to five the attractive $XXX debt lows. down and box to income the extremely Class demand the some XXXX; an in continue X% growth our internal remain market, XXXX. acquisition being value for driving the opportunities in with middle the $XXX likely million likely With that million and and range we've guidance competitive over business our of past company over growth B both in growth generated and to market assets acquisition XXX years. our that in regarding [ph] last, properties and acquire to growth Las and XX of XXX Vegas. tremendous an plans and continued to to of [ph] XXXX this end, and remaining million rental the evaluating to we X% value-add to financing, rates with completed think core. Notwithstanding at we Nashville, fit following be million To $XX We internal that we a disposition where we could said are in -- includes active would dispositions, $XXX do acquisitions supply year. XXX our generate million most expect

XX% in $XX,XXX cost X,XXX complete and roughly roughly to are as and the approximately same roughly to be at expect expect least We interior or full the average XXXX, monthly per premium upgrades unit ROIs. $XXX generating average

and monthly generate premium or We per unit ROIs. of partial cost [ph] expect in at to $XX average complete XX% approximate an interior XX $X,XXX upgrades average

upgrades. minor of We to other complete roughly interior expect XXX

back generate [indiscernible] name appliance We $X,XXX over think will For few. and to in bespoke or average example, per roughly slashes, $XX monthly unit average XX% upgrades upgrades ROIs. a these and premium new

add generate We XXX expect per and to home cost we additional at $XX monthly And which roughly $XX $XX finally, premium at dryer the XX% XXX expect tech approximately profit sets an an XX% average of margin. or washer in packages, premium install to generate ROI. $XXX average average and monthly smart will unit to

exceed across leasing showing January portfolio. renewals far is Combined lease and February, XXXX, X% off of of continue entirety good signs to activity growth over January, we're start XXXX new the the X% and a in and up So February in to improvement.

about that Brian. their and [ph]. continued Back I to another I'll work closing, our earnings just I for excited NOI in remarks. we'll So outsized execution. shareholders growth of work reiterate hard you, BH and we're XXXX That's NexPoint for for team's prepared have to generate year appreciate at all and

Brian Mitts

Thanks, Matt.

We over for will questions. turn it now

Operator

question from Buck James. We'll ahead. It take time. first this from the go Instructions] at Raymond comes [Operator Horne Please

Buck Horne

the taxes morning, impacts It begin let's XXXX guidance. Good estate that certainly guess is that for of and guys. the with with biggest variable. your just to kind that thanks. like outlook start real how I seems Hey,

we is So, conservatism What to assessments to that guess come to of know the I curious know degree assessments of volatile to with ranges? estimates, Tennessee coming we going get be what degree best these part amount to trying seems degree what going is these in work the are the what relative guidance? range to guess to component on up I'm in elevated but up to sense this are your at come and most your know I here? the a

Matthew McGraner

Hey, the million increase in drivers a Buck. market rental our in case It's base were roughly XX and taxes. case, property and $X.X Matt. reduction revenue, Good the in basis questions. guidance significant Between points and two roughly basically of the outside that's rent

And We so, two or municipality Tennessee represents the a fairly the in millage to X% includes the think increases together rent and which add a shore plus [ph] XXXX budgets. get in that. that implemented growth with range, ROI rate you you those midpoint up uncertainty the conservative

the that million expect base zero that don't there's to we and optimistic between and us some So, that case $X.X number upside allow we're would that case. level to taxes reach property exceed

Buck Horne

million. you what Okay, sound income, good. that the what's total $X.X some income could line? repeatable or in But is income a miscellaneous there And of color sort is other fee the line for item noting you. quick was add to year one I think any for represented? One miscellaneous There about that

Matthew McGraner

XXXX, collected their lifts the that particularly that year historical were I we levels. were think again, after nonetheless, can is that fees CDC be this It's and monetary collect fees able [ph]. in from But they just down late which admin to

Buck Horne

you. I got

Okay, you. over great. the next analyst to I'll Thank will and later. up turn the call follow

Brian Mitts

Thanks, Buck.

Operator

Stevenson Instructions] Please next Our from ahead. Rob go from [Operator question Janney. comes

Rob Stevenson

Matt, that numbers you XXX at you year-end? up? say Or I did XXX guys. morning, did had mixed those Good get plans versus payment

Matthew McGraner

to… We out roughly about Yes. in down with That's April, started right. [indiscernible]

Brian Mitts

Ninety-eight.

Matthew McGraner

XX in February. We're at Yes, to XXX down year-end. at

Rob Stevenson

Okay, it's just not so increase, XX, It's decrease? XXX? a continued an not

Matthew McGraner

right. right. That's That's

Rob Stevenson

was perfect? did right. yet? I And January Thank hear give Okay, XXXX percentage collection you just up? didn't why wondering you. then was going I that

Matthew McGraner

Yes.

It the We have just is it. XX%.

Rob Stevenson

improvement? characterize or in XX how And point, that weaker? this How that? sort compare you bit versus an at would does December quo? days is November Little of Status

Matthew McGraner

-- it's But kind in it compare in-line year to and points behind you of last for it's behind. now. XX about could basis about but Yes, so points and XXXX trend seems caught up basis it's XX it's

Rob Stevenson

substantial prepayment differential and versus anything And penalties anticipating big any FFO to per else come likely calculated what through? would no that of be that's Okay. you're then core day as NAREIT or

Brian Mitts

No.

prepayment we're our penalties. with think those has think we I that's NAREIT. Matt If factored But in-line indicated, that some sold we properties would into guidance.

Rob Stevenson

And guys metrics. for Okay. last market-by-market, you gave quarter-over-quarter me, then one the the operating same-store

Difficulty] of of revenue with jump fees that something big total rental that occupancy I outsized Can in drove rental we're sort down income slightly? effect paid [Technical flat was a and occupancy, of and you revenue Nashville up rent slightly Because numbers that to rate those how some a -- think it's you Nashville XX%. that? negative, negative rental get total in walk includes average maybe the XX or rental the through had sequentially in but flat how supplemental. me

Brian Mitts

Hold second, Rob. on one

Rob Stevenson

-- both jump Nashville negative South effect negative stuck rent changes both XX.X% out? in Florida, have slightly of and really Okay. are occupancy that and quarter-over-quarter but But and positive, Tampa

Brian Mitts

it might think added the pool. being include the additional to Argus just [ph] property Yes, I

Rob Stevenson

it. all Okay, guys. right. Appreciate Thanks,

Brian Mitts

Thanks, Rob.

Operator

go that ahead. question next from the comes Amanda take from Please Sweitzer We'll Baird.

Amanda Sweitzer

quarter Thanks. on for basis main from sequential the quarter? Good was or your XX decline And your renovated what the off occupancy? deviated driver in the results, expectations demand that, the units guys. morning, points fourth On of non-renovated during

Brian Mitts

asset today, that market There We XX% deviate. Houston issues: and now upgrade recovered. with one a basically replaced other that occupied in the one, an was would what didn't evictions experienced are one back that we demand other Timber had is deal the specific the holt Creek I couple Yes, It's But thought small about main we were Charlotte, occupancy. the an today right percent drivers [ph] some asset the and issue, we in And Charlotte for of [ph]. XX in then, some now in we're those same fire those to a said, plus that like have assets. decline had did.

Amanda Sweitzer

how helpful. assistance Good, XXXX those is, much much realize until question benefit a the then rental of you from some state-issued how up bonds guidance? in fourth quarter? pulling And are bad earlier then assuming in that's you debt the did of And

Matthew McGraner

the assumptions, XXX basis roughly this from Bad band points case were I And Yes. the question think for the debt base to the in your in XXXX. case. is band, upside

think an better in cause XXXX. about upside, to on further that number XXXX said to bad in first We're more it time. like often I that I but to payment increase basis be debt already will that Rob's can on the decrease XX plans. in seeing than rent And question, points the decrease with payment

Amanda Sweitzer

ahead. Go

Brian Mitts

to answer and million dollars packages. going various aid -- $X local of offered across Yes, particularly, collected our from aid aids markets of outside everything being that's we've around stimulus the I was the

Amanda Sweitzer

helpful, received all? that? would guidance at incremental you and if that's expecting your in aid be Or you additional then, that Okay, are ranges

Matthew McGraner

at county from states, it'd all And level. $X that billion the our that's available aid, incremental. $XX not Yes, of out I in underwriting million mean, we're there's all be the available markets, over guidance. the of

Amanda Sweitzer

on capital the your expected allocation, last then total like just alternative opportunities, is their And you cap me, external given is right, but it's exploring are to growth question rates, capital sense any how thanks. today? the grading for given market transaction competitive Okay, guidance,

Matthew McGraner

million the deviation We're and tied internal focused from not which think and at X.X; XXXX, million the -- we'll to first capital. multifamily, cap value venture we outside and we're and that. core continue And did trying other on for I sold any then, that. like we plus recycling of Not implied Brian [ph] $XX foremost can [ph] to and I orb of a mentioned, at in do $XX our in moment X.X think bought terms the any buying growth property our of we stock

Amanda Sweitzer

it Thanks. for That's me.

Operator

Massocca from Thalmann, question next please Ladenburg comes from ahead. go The John

John Massocca

Good midpoint morning. at if were NOI of all they the some NOI heard total expectations. remarks, In above or growth I mentioned market-specific prepared you But correctly, the expectations.

counterbalancing making are So stronger relative markets? they those why underperformers? And what markets the are

Matthew McGraner

three the or X% either under should for markets, are at Nashville. Fort largest Yes, if to provide attractors, the above case in has markets Dallas, upside the the news X%, of tax will both for good be our it The those come upside the are, and or Worth and those guidance. markets midpoint,

-- So it's texture. it's entirely largely almost

John Massocca

Understood. uplift think And what QX if have rate from that exclude you about as rental you then, same-store rehab projects? change, been would

Matthew McGraner

under -- organic Actually, it, points. call basis XX so have we probably just X%,

John Massocca

you rate? as terms next of for you well of ceiling is then, on uplift as about a the in the total Or current year, rental levels are expectation of And potential kind if maybe particularly NOI the occupancy, there versus seeing think XQ? occupancy

Matthew McGraner

occupancy, -- Yes, going I I have of across… will think of first, then rates there's it's growth and think I to think stabilization driver in the once you a lot uplift primary a be

John Massocca

feeling I even go at or we when kind the higher? think out you Because end month. shakes the the everything XX.X% of it a get to of could today you're was kind

Matthew McGraner

pushed XX%, -- to -- X.X% occupancy. up we've historically run so and interest another instead I for of around mean, X.X% rates Yes, in

if be surprised I'd higher pushed So, in do than think that. I XX%. we continue to we'll

John Massocca

from Okay, that's me. it

Operator

James. go a The from ahead. Raymond from follow next Please Buck question Horne up question is

Buck Horne

just quick one up Yes, follow me. for

whether residents application are in of migration, some far, be data, playing Sunbelt you and you're So or or some migration you it's in the that your economic markets, early continued I'm seeing can seem of there out. forecasts applications coming outlooks population trends that tangible wondering, to mentioned out-of-state quarter that your of fourth that so part just facts into net got you that plus, February numbers strength quantify? continued from NOI some January, effect in there out-of-market lease in any the is uptick

Matthew McGraner

absolutely. Yes,

markets the and California, January York, XX% markets until is data moving leading send then markets, So it -- Same X% Majority migration the roughly New of to X.X% it January into into enter have that XXXX. they was XX.X%, markets, numbers, is California X%, XXXX markets from January XXXX after net we January to Illinois is January from of you for net as here our our was call, migration XX% NXRT to XX.X%. Ohio above XX% X%. later we those but you and California so increase numbers, can to to almost XX% just in give to in our to from January.

XX%, definitely so and a York, way, X% year-over-year; and seeing is impact, about number that in up New in Florida. an big Phoenix, specifically both Texas,

Brian Mitts

Hey, Brian. it's

want miscellaneous from follow your I just So to question about earlier income.

the business of face cutters XXXX. talking basically the which was destroyed October that received of interruption You completely about we we actual the mostly on income in what the on financial, were miscellaneous property, is so misunderstood question, but that insurance million $X.XX

rebuilding getting this So and we've income insurance. year it been that from

Buck Horne

There That's helpful, it. appreciate I we go.

Brian Mitts

Once that's be out will operational flip the and up that'll income. NOI again, the miscellaneous

Buck Horne

Thanks. it. Got

Operator

Jon from ahead. comes Petersen question Please next from go The Jefferies.

Jon Petersen

specifically migration Thanks. I Orlando have as as just same your characterize, maybe more that at if I you into then underwriting properties certain And out looking Vegas, places some mean, uplift, you migration of it, help and of leisure there I and we about more think travel how if exposure; are significant can markets, specifically expect affecting us some If positioned of guidance, that you the turning about, mean, reopen? the in talking like on other migration leisure see things it's your you trends unwinding we side travel? some were and

Matthew McGraner

that perform by asset property got impacted if are question of in on issues, one of weak or leisure we a would which particularly because the Obviously, your as travel really, back in net come to all saw other XXXX, we'll the on those it getting leisure-related what will and it's like I hand, were have a much particularly, theme the and positive, kind lot I the like thought basis. year the seen Yes, we're from we asset. think, I that better and a be. that the offset that first development. on California of really some don't say helped a down trends can the the Orlando in we some migration vaccine optimistic XXXX. that closure own jobs markets. we in that mind parks it or him which the of we furloughed. really we XX% cases all Vegas, directly of that wasn't to year hadn't told, really comes closed one occupancy, we was in markets call chin, -- other believe see took Vegas, down flat as can and from us through since lost -- and was these But In reverse a and good ended us pretty and That into since year-over-year know district migration think

they XX I think that years at ago, [ph] were cities a cities affordable are offer these of Argus amenities other and an they lifestyle lot cost.

continue return stays a and these don't I that's belief. the located Sunbelt comes other think or millennial soon. our new personal in will we're applicants once anytime we think in to and grow, markets, and they'll But While that jobs

Brian Mitts

working-class going They follow people return to back to that this companies. that the jobs And turn is in these are escaping go that things more cities, to yes, jobs, Especially made move are a cohort, -- our then and companies there, to the aren't in likely lot and or permanently not and moved once people they're of they're renter around normal. that were back.

Jon Petersen

the Appreciate you. Thank color.

Operator

from The that Michael next comes question Securities. Please go Truist from Lewis ahead.

Michael Lewis

cap calculation; down I you looks across cap rate rate about in wanted the like to NAV the you. all thank Great, assumption the points took XX basis the markets. about it ask

color right a you transactions that I the to transactions it's or seeing more little was the that rates you interest give rates cap on in that of on blanket those And, could if each and wondering coincidence just So you're a the of just all same? in some now? markets, have they're more Or, confidence is -- due alternatively, based assumption? level

Matthew McGraner

a seen X%; cap supreme sub in now. X% the main the end, haven't tightening Yes, several were rate drivers cap years there at and high rates, was I

And came real than And from CVRE a in so, perspective the in number that a [ph], lower recently surveyed acquisition Green and around most what on and And and we bidding we're are. offered holding -- intent, Tampa when marketing transactional page I frankly, rates. that Street seen and from back, these X%. X.X%, they gone our X.X% notice bidding have have assets, we Charlotte, sub in haven't for think cap

driving material out an mean demand So there balance this financing, the a I type capital Sunbelt. point, amount for in to in of And there debt it's is lot product of in supply is sub-figures well. as your just incredible there of

Michael Lewis

or portfolio, are any company you or there advantages the or do the of general, like markets? do of are new think growth now? to kind in mentioned modest Matt, is Thanks. you Nordics like about Core acquisition of this get you this internal XXXX you you Do you into have in activity Or, company, the size an where units, [ph], XX,XXX growth guidance. the going diversifying you just

Matthew McGraner

like Research are we were like We properties any saying that's property venture of types other Yes, able care be and over great we acquisition there. and the market like us, in that been some for that's XX Triangle years that for. is what a at the never going been by new but it interesting into like the the Raleigh, want cap searching the question first next XX,XXX, [Indiscernible] And doing. We about, intrigued speed, we've basically and a And bit a we've XXXX. we public we've And the and units. the stock that capital. price made up demand could since or life own there. few what of getting went were there. we XX,XXX lot. for in to XXX,XXX Durham. public growth in we foremost, but sciences -- we're And than comfortable market private made We don't by drivers recycling looking part we're company to had we're space, little a quadruple We some That's that, and to stockholders. debated

Michael Lewis

TNA Sounds sequentially number of or When about to a next I down through unique year lower? well. That for looks look a going corporate amount lastly, the it good. over Income guidance up. I'm that Was in we kind the at in me, Statement, And just year-over-year. anything the line there that fair looked line like draws it goes then as should was for that -- ask back item that

Brian Mitts

Yes.

getting kind they're thought being conservative averaged corporate think pandemic. less maybe drop flushed transfer but immaterial in to where minimal out really our auto it's certainly But I -- and we G&A, would yes, on those overhead; material pretty are stuff, in and expect the the expenses, back think some guidance, we increase travel and through cheese now, cost we guidance in they historically. but of I for of be don't you it a the it except

Operator

question Next Please Ladenburg Massocca; John it's ahead. follow-up the go from Thalmann. question, comes from

John Massocca

you're transactions, share about be capital dilutive largely, you I the timing what cap Just one is today, recycling. of think you can basis, a would given alive can a on? the you would and that think take equal and what one quick rate one dynamics on seeing today? on as do that dispose be day per it understanding versus you a Or bespoke potentially guess, on day

Matthew McGraner

Certainly, manner. reverse a we've it done in

-- probably, disposition. And could could by So we've [ph]. buy likely be, cash settled point, property accretive. that $X.X that's that's cash your rate stabilized the you our where will basis before $X.XX, on But, we've deals to cap depending the acquired more than beat dilutive. the on would But --

a XX generate in years. Our to in point to point goal post-rehab whitelist XXX is basis basis three

that the accretion that So, cap about be point would it. way kind would we at deliver second half, -- of think year, -- second rate year

Brian Mitts

rehab older has We on that's typically process. recycle something through gone the and

there cheaper the upside to new the NOI on as with much that's the of accretive I point, ultimately, putting deal then is current what or as financing much, cost that in think was; too so, that deal deal refinancing new -- that not and core And and new Matt's deal for debt burning not focus and FFO but to core FFRO.

John Massocca

Thank you.

Operator

question session back to you answer and ends to any That for turn and I'd for remarks. today, it closing like the over

Brian Mitts

of future. XXXX. Yes, some XXXX the and I thought pretty no, a to appreciate going year good. overall I in. good But think well tougher a we definitely Look came participation, we're have was out we for good well-positioned prospects forward questions. and than lot

you thank everybody's So, for participation.

Operator

your This call. participation. Thank for concludes today's you

You may disconnect. now

NexPoint Residential Trust (NXRT) 16 Feb 212020 Q4 Earnings call transcript