NXRT - Earnings call transcript Q3 2021 | NexPoint Residential Trust, Inc.

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Operator

Good day, and welcome to the NexPoint Residential Trust Inc.

Third Quarter Conference Call. Today’s conference is being recorded. At this time, I would like to turn the call 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’s NexPoint call September Good the third

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

reminder, website at this is webcast being call a nxrt.nextpoint.com. As at company's the

required Private this Listeners current expectations, the assumptions I not as Form does the conference filings XX-K reliance any and like on obligation and everyone on publicly to report Litigation the beliefs. on call for statements any review meaning with forward-looking statements. conference are and and today's conference by annual begin, NXRT to encouraged based as except discussion analysis other non-GAAP and any any of statements of would financial should forward-looking call the revise undue we other statements. that of complete recent call made that risks This most Before of company's place Act more forward-looking measures. could during update forward-looking within contains this affect company's statements of includes only The not to are an XXXX Securities Reform remind the factors or that management's a speak SEC undertake also date, law,

the now to that company's For a like release see over go the more I complete turn call Please Brian ahead, earnings measures, these discussion filed financial to earlier of was Mitts. non-GAAP Brian. today. would

Brian Mitts

to net Matt for performance kick discuss revise Appreciate your which environment everyone us our for I'm our to quarter revised guidance, portfolio. XX.X% revising the prepared upward. call metrics and us lease and time. joined some Belt increasing to historic the off for affordable And migration cover some migration in Sun to cap to with driving continues increasing core I'll pricing track is with the guidance renewal Matt it are quarter new with again results, morning. housing, XX.X% Mitts. the and I'll up and This Jackie. With wrap our and on shortage commentary much upward. NAV the across our continues into year specifics the unabated. lows then markets Net high and NAV this calculations. markets you, in welcome and for turn continued in continuing capital our quality NXRT power continues Thank we remarks. leading I'm to reflected rates rates over our Brian enjoy of McGraner our quarter into enormous and pretty by to markets joining leasing rates

a achieve assets. where this also acquired on combined slower in fully renovated a Nashville on assets We invested IRR into move and capital continue X.XX closed capital higher competitive deals rates year. of of recycle acquisition the market allows that despite achieving to have sell the two at to return, XX.X% can that premium new of The assets three multiple current us environment we Yesterday, growth value-add attractive and out find have product, a of been and times. and sale assets of we

our before, discussed we've not As acquisitions. growth are dependent on prospects

implementing XX of deliveries widening new loss and strategy strategy push to in sensitive he The $XX.X on to less gives in still migration, the up $X.XX XXXX, to with us us the runway the is affordable portfolio quarter of more on occupancies $XX.X high new to continue share of We occupancies. million. acquisition, our which million from for to X per of move and ongoing to X where revenues our aggressively per $X.X basis Belt all-time on Sun diluted or from housing, we maintaining allowed compared our our acute housing for household high US, formation outpaces which in markets across increased new or value-add acquisitions. negative plenty absolute continue cap value-add as into years sets year achieve total revenues continue million was shortage diluted as the $X.XX million to housing over us while and the net significant second Net $XX total to rates achieve rate coupled and points shortage can rate of XXXX XXX portfolio returns share to remainder the of cap levels. makes

of or XX the XXXX same-store same-store in over core same-store and in This, $XX.X to period expenses Net $X.X $X.XX of increase X.X%, million or an increase as or $X.XX or XX.X%. to months September QX same-store share share reported of XXXX. FFO For with XX.X%. the of X.X%, increased was gain NOI basis rent compared QX diluted share, to X per diluted million led quarter, as the for $X.XX an per XX up $XX.X X.X% occupancy coupled million XXXX. in diluted to million per compared to points loss or an We compared minus in ended was diluted increase same QX per $X.XX share $XX.X

core has as per we diluted $X.XX reported or NOI increase same-store FFO XXXX share an compared compared $XX.X X.X%. of year, $X.XX million same increased X.X% the million $X to in for or diluted or per period XXXX. of share Year-to-date, the For to

date premium average installations, value-add XX.X% XX.X% portfolio a kitchen achieving X,XXX premium our upgrades, completed upgrades XX,XXX the and XXX monthly and execute to renovated investment plan washer/dryer current $XXX, technology X/XX. partial the full full We've is rent completing partial to renovations of by on during X,XXX and and and in achieving quarter. quarter return continue during monthly at $XXX the average These units, Inception our and rates the NOI, XX-point We forward instalments XXX XX%, an XX.X%, and $XX investment the reporting of return mid-point. business an lease the package are based per as on and X.X% follows, $XX, end we $XX.XX on in respectively. - range end. cap $XX.XX share low of Based an high and on from estimate average cap current on at our are and the and markets end, respectively X.X% in NAV on a of the sorry, high ranging low on $XX.XX rates and end

end, our of Since is high we've a The increased on share share. high over September represent For per per the mid-point. XX.X% from on dividend $X.XXXXX December from X.X% per our a paid on the payable share That's dividend. end the on our previously. XX, to dividend $X.XX we dividend low increase mid-point core at core representing of FFO Board we on X.X% inception, X.X% XXXX, third mid-point. quarter, increase per [ph] In will achieve share prior XX. FFO payout upwards share prior of on an per of in FFO an times this core core Same-store declared ratio NOI, from up and Core high over the and low X.XX end revising the XX.X%. guidance, FFO. of $X.XX the the X% low $X.XX XXXX FFO up our $X.XX on revenue, X.X% guidance, per XXXX $X.XX FFO X% the core diluted XX% Year-to-date, a end Same-store of for with And dividend from a the was on $X.XX. by you're If guidance high X.X% end, $X.XX the mid-point follows. covered share low end, for of end. same-store and the X.X% X.X%, X.X% end, expenses X.X% on the end, low as

Matt. to turn So over with that, I'll it

Matthew McGraner

Thanks, Brian.

our of NOI consistent increases annual consistently Brian applications our material core New announce we're benefit on-the-ground annual year-to-date net increase dividend. our Population growth operational from Belt in into and communities and as As XX% continue explained the And from as double-digit and you resident generate year-over-year. core mentioned, retention our sixth increase single in to both to pleased as inflows company asset know, Low those California accelerate as and migration as to markets that in strength our goal York well same-store to from performance. is FFO. dominating also to dividend, continuing migration follow high Sun our NXRT outflows consecutive with and FFO our low in same-store NOI, leasing our occupancy. continues material our market selection, to well

increases Belt XX%. throughout the quarter occupancies September in material being XX.X% and for driving are across at all These in historically and of at ended occupancy Xst, the our XX.X% Renewal same-store basis a points was year quarter ago. occupied, that's trend. QX up with a with ending from revenue growth retention of as markets. XX% XX.X%, Sun XX.X% and trends XX.X% accelerated leased high Our rate XX portfolio November And our is July

QX Our rental XX exceeded of X with experiencing every same-store revenue positive market out and example, in growth, revenue our growth. for X.X% markets

and elevated. renewal remain In addition, spreads both new leasing

at leases XX.X% that's New XX%. a growth finished quarter quarter. for at blended ended positive our just robust Renewals almost XX% QX of higher the under than a XX%, rental last

Atlanta, lease blended new least at month, a with XX%. being being is October. up with increase South August Orlando, numbers at up Tampa, lease blended the And a blended XX.X% XX.X% new XX.X%. leases Florida, leases of to are in quarter Vegas which XX.X%. a up acceleration almost the market another July Every in renewals for for of new were new XX.X% in growth a increase of Las by September with XX.X% with XX% renewals new XX%. clearing demonstrate Here up strongest with the into throughout markets XX.X% leases continues those increase - each were and X.X% renewals were least for being growth. be portfolio of Phoenix QX

a renewables up far roughly over X,XXX October, being new of blended leases XX.X% leases. XX% increase So in for on XX% are with

On and yesterday, sale we of front, the $XX the Beechwood net proceeds. Cedar, million completed transaction of generating

already QX as Brian Creekside Six of over Norman. are a generated of million previously basis dispositions mentioned, September our brand at the an announced one performing funded X.X%. economic we XX these positive and reverse ahead into of On and roughly reminder, these for expectations transaction our budgets assets XXXX $XX.X a new replacement by two and acquisitions, being Lake in or and Forks NOI XX, closed cap the As rate RTP is XX%. completed cap rate year Both Charlotte at Matthews point

also median we these with one-mile portfolio's to within a upgraded the of income generating We a of submarkets rate, income a In asset with $XX,XXX cap and in location average a assets. annual Charlotte out submarket transactions. these with quality and recycled radius median Nashville radius XXX,XXX into of our one-mile capital within Raleigh and addition annual

rate updated might Brian range, X.X% from X% X.X% to noticed, X.X% last as you be we As our to have to cap mentioned, quarter.

our in stronger. We aggressive capital has rates as continue cap never compressed for assets been quality to and housing markets demand see affordable

During QX culminated sealed deals 'XX, a bid went that we and process. a finish multiple ourselves on several markets our up in and target [ph] many it ultimately as underwrote bridesmaid rounds in

XX% these We processes, into a pricing which initial ourselves the of seller pricing guidance, same went some a a moved During sold from and and sealed sub-X often and tax-adjusted broker witnessed process Beechwood as cases, the cap X.X% for bid cap rate land. in culminated ultimately in Cedar, rate.

of don't and B Given the see how Belt markets, these we during the fundamentals pandemic, in soon. Class appetite the investor resilient Sun with abating coupled anytime assets underlying perform multifamily growth

redevelopment XXX total the front, in rehabs On QX. we completed

and both started will XX. quarter, we washer tenant full to the number but winter allow adjust dryer [indiscernible] and This stand to as during with budgeted the as ready and will material [ph] the we that supply to can complete upgrades over the extent to October, in retain upgrades we for as us, to well navigate far the these additional delays complete we detrimentally lower XXX relate which moment, appliance which and there, and at and investment months. more deliveries during installs [indiscernible] changes completed partial of an the some XXX are least term. elevated pricing they We're near are So the at XXX of

$X.XX of As was FFO pleased in meaningful improvement and core and another to announce the guidance to acquisitions, revenue we're expense share, by mid growth is this Brian largely prior quarter. driven per not case point mentioned, from savings increase as

We’ve markets. so and XX here, [indiscernible] Our property but concentrated Georgia, on expense provide largely protest portfolios values, in seen Texas continuing Carolina, and Florida, [indiscernible] presently property. date all update or our to an assets pursue preliminary north XX aggressively We are and are received for further year favarable some tax the Tennessee to open reduction been on now regarding suit the filing revenue documented feeling well briefly to of components wanted taxes. has

Our to year forecast XXXX, loan is post to reductions, approved and date. full corporating thanks all refunds NOI guidance settlements

XXXX. further – can reduction realizing how growth. I investors mildly into our optimistic early address fourth wanted long asked revenue quarter questions and regarding of closing, about this still to by early in the repeatedly degree We’re a we generate In

for family follow As our our differential $XXX invitations per housing upgraded single unmaterial those rent the to to still execute, [ph] or still growth to ever provide back remarks. QX [indiscernible] is between but goal believe [ph] our this these routinely is affordable $XXXX to Axiometrics, at Today and a is for $X comfortably NXRTs company’s Brian. continue rental mainly as it know in and a Thank [indiscernible] rental. headwind in a price delta $XXXX our you post-renovation if and effective express continue upgraded terms. That of markets, team rent near is you analyse roughly is can all product NexPoint an next average new be spend our A Class and at We well rent and us that [indiscernible] and data options. and which cost I We a immediate lease platform. able this effective homes prepaid is be rent been. option That’s experience, provide RealPage, $XXX effective tailwind as as $XXXX. respectively month markets from to point you revenue housing that over and our underneath have portfolio

Brian Mitts

turn it We’ll you. for questions. Thank over

Operator

Amanda We'll first take Sweitzer question Thank Baird. with from our Instructions] [Operator you.

Amanda Sweitzer

Thanks. morning. in provide currently an lease loss you update where on to the portfolio? stand you Can Good with

Matthew McGraner

Yeah.

So Matt. hey, it's

call the So roughly at, - we portfolio year. are of cost currently it, $XXX,XXX for

Amanda Sweitzer

Absolute dollars? Just the gap?

Matthew McGraner

Yeah, sorry.

Amanda Sweitzer

expect no growth? next think do about Okay. those you you That's you units fully impacting growth year, same-store prior those same-store when as longer into do and And helpful. And at events? to be then casualty stand of resolving where some online

Matthew McGraner

Yeah.

and probably the ice I hitting be think for the quarter during and end same running should Dallas first in first have the to assets we're assets the us, expecting well. from - and be the as the quarter; Cutter's that along frame of up then towards storm, the first time Houston

be in the So everything kind back QX, of should pool.

Amanda Sweitzer

for That's me. helpful. one Okay. And then last

about that today? considering you're You release potential to how potential did additional press activity recycling magnitude the and the capital evaluate continue you portfolio the talk in of for about you Can recycling talk sale locations opportunities. for

Matthew McGraner

Yeah.

I think that if in don't assets next definitely three said know in call we in occur Houston, - on will that one-on-ones the is Houston. culling investor I probably our of the our portfolio

rest in and Creek Specifically, Old been the Farm is assessors our are there both has underperformed Houston the probably has the the market would sort and first on that taxes. markets then side of two that raising revenue very tax thinking Stone a of and the core of municipalities aggressive The are go. terms

that to of - then of overweight get kind continue taxes And worst markets and to lower property want and So non-controllables. you robust the have other both we the worlds. growth

are right Charlotte then Carolina, property especially markets there a [ph] Triangle, then, statutory spending is they in on as for as for probably performed another And have and Research which increases. time So And that's growth. tax North the lot us and market Phoenix limit we're leasing well of X robust the with now us obviously, any those forts

there. So helpful that's

on focus those to continue we say would I So two markets.

Amanda Sweitzer

time. the Appreciate Thanks.

Matthew McGraner

You bet.

Operator

with take National Instructions] Securities. from our [Operator next Gaurav We'll question Mehta

Gaurav Mehta

good Thanks, morning.

that's on cost and returns First on as impacting wondering question redevelopment you're materials I'm I of at have cost could all? is of as you far the your if on material. what seeing comment if

Matthew McGraner

Yeah.

able And paint that to think to is focused it's areas rents. pass product that's in increase to XX can't of of appliances and seeing in we've appliances we cost timing of the more. we're weeks goods, necessarily most is access roughly again, not X about just that upgraded to the really behind the getting XX% an XX% the been cost, and two which terms along. us, I pass And schedule. for - But [ph] really terms on probably and to in materials It's increase. For and the

Gaurav Mehta

question in big we is on the the monetary tightening are XXXX? maybe what second have, mid-X side. sustainability on of view wondering in event And products I the your rates I was macro a Great. picture cap

Matthew McGraner

that, a kind worst increases, I pass monthly interest investor during it these but assets cash particularly see and a we past performed And on generally those occupied a Yeah. don't well coupled XX had reset for sort assets, inflation think times growth just and people - for negative we notwithstanding Belt issues, think is that double-digit the out of the mean inflationary collection negative. in in appetite performed is of NAV well turn the with cash, the some the environment. of pressures. Sun you rent but along I the issues and performed, and in said share and materially discussion how revenue assets, then just world over base of how specifically Most affordable Garden and and of the rate ability table months, abating didn't capital and wall B the rent bad paid to these assets well were debt issues there

aspects, all we're And from it in so investors, seeing about it from right think - excited I pour perspectives capital space the that. are now. all allocation So

Gaurav Mehta

I all Okay. Thank you. had. That’s

Matthew McGraner

you. Thank

Operator

We'll take James. Horne question our next Buck with from Raymond

Buck Horne

power new bit. seem and Hey. Certainly, improving economy new Good I if morning, increases. across XX% lease up know XX%, is you lease, are keeping guys. they're guys the with now. almost right don't mean, just a incomes the be But I generating to Curious, pricing this unprecedented wages quite rate

your are are sustainable them. around bringing what out-of-state coming the context quality the where in, the your - applications with what of applicants some if How of applications? income those So you given these stand provide rent-to-income levels for are rent increases maybe kind of credit I who wonder new can ratio

Matthew McGraner

Yeah.

today, XX% that's I portfolio been average think, - us, it's I usually to XX%. XX% I as sits think, for And think our it Buck. is roughly, been,

story, $XXX,XXX from think, So little whole is versus and household location for income the upgrades, Charlotte going it's so the as up the bit, with median our the $XX,XXX deal. RTP because, I a mentioned, deal really recycling doesn't elevated. tell It I Nashville though, of the capital for assets,

years. upgrading rents the of So or X we've just job I'd are. And the [ph] and throughout to harken past headroom and kind options our our between what the just X it been demographic back quality

like again, $XXXX. are rates So our

then Garden worried, have the think New $XXXX. is coin I get, think, flip - $XXXX I and next we'll get $XXX we SFR best I'd option, is once just and between but the us - I those not see and both mean types the increases And $XXX, and record thing. same doing $XXX, of property Class it's well. aren't in as A respectively. those like SFR ability you

there's So certainly enough the to - demand not I just versus it's think affordable housing. for because near going over the sustainable term be over supply

Buck Horne

Great. leverage you with some That's current And as over-equitizing to color. those certainly total pursue about new leverage you're new you're underwriting your how capital deals great down? stand? deals, And you do with improved the how targets new acquisitions, Thank think cost where bring about thinking the for are of that. you continuing to of

Matthew McGraner

as growth now, And right look be a net-net think the out I and NAV said, example, we've table, private Houston and that given going acquisitions be revenue activity. transaction on - currency term think drag two at especially just cheap we relatively Yeah, and taxes to the there's the in market year highest cap because near acquisition the rate a through to assets, we're you or going extent I our think the for The we probably dispositions then funded that one the new Houston. I in from least so. are guess to if values year

of And Again, anytime so bunch to we're don't to necessarily this looking going equity is soon. not see we a raise here. that stop

the rates replacement add to I equity but do with a less are and all-in to and next we issuing where new interest our we leverage hedged over anything So to have instead over-equitize deal, of where on X.X, swaps we're X where asset comfortable don't years. the extent probably that? it the Brian, way that with know, you found are, add

Brian Mitts

Perfect. Yeah.

Buck Horne

guys. All it. Thanks, right. Appreciate

Matthew McGraner

Buck. Thanks,

Operator

question with from Okusanya We'll take our Suisse. Credit Tayo next

Tayo Okusanya

guys. great morning, Congrats Good Yes. on quarter. another

and Atlanta just how markets, year-over-year First Charlotte, happening occupancy three and what question, given was? just bit kind those of little particular be Vegas, specifically may negative a could in you talk strong and everything of kind about else quarter-over-quarter trends

Matthew McGraner

you Yeah, bet.

which concentrated to Vegas primarily more a So they're is one in little related there's payers. Bloom, asset, that's late bit -

So in saw they July the again uncertainty and stopped of moratoriums, kind again eviction when started and the stopped August. in you

particular, I in hit hardest think that property, was with.

the then ton range then so XX%, there, new driver was upgrade kind Since so because to decision of the again. achieving And net XX%, going that's then primarily same positive. we've them a to upgraded go be again, there, leases of again, Mill made Terrell we off moratorium that’s off ahead units XX% the that all occupancy. and a Atlanta of to at in and Preserve with the and on of [indiscernible] eviction story concentrated [ph] issues, and

had there. assets put in the the made asset a – rental will [indiscernible] - of same through issue the [indiscernible] then same way So make the also that XX%, that plus assistance income again, we’ve out way, through and by statement year. that received those way story the the At their lot new We

Finally, primarily to related Timber Creek. Charlotte,

down So due bad some units to there's same had one or but asset plus again, - there debt skips there, casualty. some story, one not some bad

but So markets will, three, problem minor issues those anything children, I that we're worried long you term. of that I are caused, those overall, not all think, the if kind guess, about in relatively

Tayo Okusanya

Great.

from comments, prior built the leases tech where leases? those renewals spreads and question, for and to standard Then increases that kind eye-popping. I'm are into is they there just separate new kind upgrades rent we upgrades when those assuming of versus if and new benefits of jumps rent mean, packet unit helpful. the are done pretty on get the the numbers. the then renewals someone's are, from second can just this That's And the benefits Okay. you've the kind the I you of from

Matthew McGraner

you're about kind a of I talking Yeah. mean value-add

Tayo Okusanya

XX% mentioned be? add, the what would before, fallen, kind value just kind all we're as looking at "similar x that of of number you really if unit",

Matthew McGraner

Yes.

the upgrade units, renewal like we your signed again, which many say indicators didn't XX%. XXX think perhaps as actually best are I we XX%, then is probably rate XX%, probably But

Brian Mitts

XXX.

Matthew McGraner

XXX And - new me, leases. then or for excuse XXX QX

Brian Mitts

XXX.

Matthew McGraner

QX at for X,XXX rolling leases for we upgrades an $XXX. quarter increase XXX but signed of new the average during XX.XX%

out backing that's still the guess, the we for I you're something get in call. premium, probably you, following So mid can this to but high teens, and call definitely

Tayo Okusanya

- Irrespective there's pretty numbers impressive of on impact still kind any that increases. aggressive there the mean I occupancy. some It's pretty of was

well done. So

Matthew McGraner

Appreciate it.

Operator

next Securities. with take We'll our Lewis Michael from question Truist

Michael Lewis

Thank you. up follow rate to little on discussion the a cap bit. I want

cap Nashville that I was think missed a the deals, So it. you the say two rates, X.X% disposition cap? I Did

Matthew McGraner

were those cap rate. X.XX% tax-adjusted No,

Michael Lewis

Okay. And in forward that that's place? on - is XX-month that Or on is NOI?

Matthew McGraner

XX, TXX. In TX - play or TX

Michael Lewis

Okay.

forward to lower lease rate. an loss that's cap even there's any that there, assuming So

you Okay. apples going capping apples cap if the Or just I you're analysis. NAV cap your that in I was NOI comparing with for NAV, was place like rate when is to as assume your to using XX-month you're But you forward see the calculate well? gave? I rates

Matthew McGraner

but nominal. it's it's Yeah, forward,

it's neutral. So sort net-net of

we the post-CapEx. that at disclosed cap adjusted are quote tax adjusted. NAV the the adjusted cap for So we for table and are rates rates Nashville The or X.XX rates and nominal nominal that are or tax cap or rates cap CapEx

Michael Lewis

looking to a And about survey I and that the here many that that's play I'm you of your poking you. Raleigh acquisition. market Okay. there. wanted kind are on growing how ask also And in helpful. I mind to thoughts you in markets probably of do wouldn't would kind - in. Maybe that wondering That's your more other Got plan target are you around. assume markets,

Matthew McGraner

with for now, energy The I research resources in focus is the a and in we've Right market. that Raleigh spending money of time latest Yeah. next mean, an we're over income or median lot us. there, seen biggest after XX the $XXX,XXX jobs over average of the delivered. only and on new of being units months minus ground XX,XXX X,XXX more stock there's

-- an doesn't in that's exist that incredible there. So capital promised dynamic most just places

we is capital thing Our as same also are. the seeing

ton enter. tough that West places a We've ton new market just it's bit other than markets region we're Salt to new interesting focused frankly, there, later probably not spend with on. future. really or to but Lake a Mountain there's little markets. not time So we Raleigh, Lake of spending in City our are and could get a studied than where Other time in a core of be that, the Salt We're the happy

Michael Lewis

then you proceeds drawn the how It -- down two I it think million credit or bit free think, some funding the It think, of or lastly little facility me, the balance the I what permanent got, run maybe the an pay think about how that of dry up tight $XXX earlier worth Okay. little for a on some with bit might How facility. us you quarter, you down sale and down. know. powder you about on do I do to do Great. you kind And the on little this to sometimes But bit. following a to ended about facility. sounded come use up you just you leverage. a that did on question But thoughts that way don't looks a might bring like leverage bit like you little quarter. use would be

Matthew McGraner

Yes. I'll finish. start Brian let and I'll

it $XX yesterday. we of I paid I us, a -- think we all, we of first will -- think just down for

portfolio's stock of that. lower we do We then we when believe were the is just realize balance the bit We run in issued revolver pricing because was saw currency. little far. started little a didn't from we incredibly bit But on the the to to and ATM, hot where our market a run on still that you're the dispositions. So right, do that and generally stops environment going we but drawn

in not are rates and right growth issue now down we're equity So a mad our X.X% hurry increasing. when dash pay debt to

NAV new can is where think the is, it's if we otherwise to that thinking the I So to disposed. might table going utilize reach AGM the be current our a then we delever, position

Michael Lewis

a lot. Thanks

Operator

Janney. We’ll from with Stevenson next question Rob

Rob Stevenson

Good this morning, timing the down to and now. the insurance guys. any The relief expense items as on starting see big coming Is X.X% just XXXX? a into guidance midpoint X.X% material of of had same-store we to from growth comps? expense taxes, in increases Are people down like move you really year-over-year

Matthew McGraner

Yeah.

I million. think I of reversal, the realized $X.X taxes, the it's it's Rob, good We second in a largely almost think, taxes. year pretty half Houston

so And Dallas we Atlanta. that some [indiscernible] in think Houston, optimistic and assets on

- drivers. those think the are are those I main

Rob Stevenson

Okay.

so is start the it to ahead, the likely pressures across the of thinking board? current expense market inflationary to where as is growth we be and in the mean, given is And same-store I Xs high be environment sort likely

Matthew McGraner

Yeah. I it's lower, repair in will big can be we're and in wouldn't tax. - think don't by it largely number I largely be it maintenance come but think think savings I mean payroll, or optimistic it I driven a

Rob Stevenson

Okay. Thanks, guys. Appreciate it.

Matthew McGraner

Thanks, Rob.

Operator

time, [Operator or we closing turn session. concludes the showing remarks. this time. for to Speakers, conference Instructions] questions will any That over question-and-answer at I'm at you have the I this in queue more today's back additional no

Brian Mitts

Thank year-end. I time. talk you. after appreciate Yeah, everyone's We'll

Operator

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

now may You disconnect.+

NexPoint Residential Trust (NXRT) 2 Nov 212021 Q3 Earnings call transcript