NXRT - Earnings call transcript Q2 2022 | NexPoint Residential Trust, Inc.

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Operator

Good day! And welcome to the NexPoint Residential Trust, Q2 2022 Conference Call. This conference is being recorded.

Now at this time I would like to turn the conference over to Jackie Graham, Director of Investor Relations. Please go ahead, ma’am.

Jackie Graham

Thank you. welcome company’s Residential quarter results XXXX. and to conference June everyone, the review for day, to Trust’s NexPoint call XX, Good the second

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 website the company's a www.nxrt.nexpoint.com. reminder, at is through

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

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

Brian Mitts

time. your joining Jackie, morning. and really this appreciate you, to everyone us Thank welcome I

and and contingency so connection hoping the the for revenue. apologize NAV is room loss today. specifics Matt guidance, advance Results $X.X here. year-to-date as the to driving revenue team. kick mention, cover update over loss Jackie it if disruptions. our of million QX have [inaudible] Mitts a is followers: or then I’ll not total QX have $XX.X portfolio. the and a Just to and leasing is share our net I’m the loss on the Brian of in which $X.XX with our the provide and in are CIO backup results, I’ll revenue guidance. good do I'm That’s $X.XX XXXX, on per rest million million. We of up, details metrics call second then $XX.X off I as period quarter same turn the million, a per any joining Net our calculation there compared discuss plans. in a Matt in share quick performance a of I’m for or to in dialed-in, diluted I’m and diluted McGraner was me total and increase and on XX% But heads $X.X environment

NOI quarter on of second properties, compared the million XX for the was NOI. $XX.X a second quarter XX XXXX increase in For properties XX% million to $XX.X on

and on year-over-year rent rent averaged XX.X%. new renewals growth XX.X% leases the year-over-year portfolio quarter the across For growth averaged on

apartments and B single room we where ample there Given believe equivalent rent is outsized Class our future markets rental in rates family are growth. for rental product, for

XXXX, the increase a share reported X.X% diluted second share quarter-over-quarter. FFO XXXX for We of on QX per the on to the an QX increase portfolio occupancy million of basis in of an XXXX. per an $X.XX with as same-store increase coupled For XX.X% XX.X%. occupancy same-store same-store XXX points store This to and to on rate per share rent quarter. to store Rents quarter were focus same for compared the or of up basis. down XX.X% NOI led the same was compared we $XX.X quarter XX.X% in quarter during core diluted This more same in increased XX% expenses than $X.XX

For achieving the unites rent from XXX average prior the XXX and premium renovated monthly quarter quarter renovations completed leased XX% partial an of in increase of and we …

David Willmore

Brian’s Look like Willmore. Brian has lost conclude in prepared and I’ll remarks. is This connection. David hope

X,XXX rent higher XX.X%, technology During XX.X% monthly year, upgrades which in premium have partial we package XXX properties, and kitchen an of respectively, of XX.X%. our in XX% or increase and installations long washer and total XXX average and achieving and which renovations, installs we ROI an million an X,XXX of in year-over-year quarter helped Phoenix and acquired April $XX respectively, in full $XXX XX% drive is each current our other XX.X% rent for achieving Inception-to-date and Sandy to bips $XXX.X by the X of and $XXX, total. average two from higher prior Georgia partial average $XX Springs, X,XXX portfolio we units, located combined and one completed XXX dryer renovated units comprising term quarter than the the On premium monthly full leased the during completed ROI in NOI XXX renovation. an and of the ROI the units, a upgrades XX% of

to Our on net share per of period or for or $XXX.X increase million million per in as $X.XX XXXX XX total net Year-to-date was total NOI the revenue in on in of on the to same million $X.XX of million. or an the XXXX, That’s for $XX.X $XXX.X increase share of million an loss in $XX.X on revenue of diluted losses period XX%. million XX year revenue $XX diluted compared properties for compared was $XX.X XX%. same properties

was XX.X% with down increase of X.X% points $XX.X store diluted to the an ended same share XX%. or core $X.XX six or compared in expenses year-to-date as same the reported We same period store For basis in months June NOI This compared in an same XX, the increase per of $X.XX to diluted led year in to an same per XXXX. store of increased share FFO million increase coupled and store XXXX of to XX.X%. XXX rent occupancy XX.X%

to our and per the XX an reporting increases X,XXX prior the in high completed to $X.XX are the share mid-point. low end we end, renovations, on our per a rates forward NOI, the share based which interest from These we NAV our partial end cap the end, X.X% $XX basis rates on the last at range from increase on and on per and on per year markets. increased in rates share in rise ranging share has to a average X.X% current and rates as cap cap points observable quarter $XX.XX reflect approximately high from low XX% of in of well $XX.XX are the markets estimate period as Based on XXXX. in full For

our was For the a with Since X.XXx FFO have per $X.XX FFO. by payout core XX. quarter to of dividend covered dividend inception we we dividend paid ratio XX% core of June share our a XX.X%. Year-to-date of increased on

guidance we core store our revising NOI upwards. are reiterating Turning and same FFO guidance, to

same share. on I'll XX.X% are commentary over XX.X%. guidance of At FFO $X.XX estimating on basis a the store of point For per increase high from it NOI Matt XXX guidance the we that, over core The midpoint prior the increase and XXXX for represents turn XXXX XX% midpoint portfolio. our end core FFO With to low at a XX.X% the XX% is end. on

Matt McGraner

Dave. you, Thank

second start me operational over quarter our going same store by Let results.

in Rental XX.X%, prior growth XXX out total year rent QX basis up store points XX showed revenue over Our pack Tampa revenue average same the improved margin period. or markets same to while growth. the Eight store of XX greater year-over-year XX.X% XX.X%. leading of or rental reached nine X.X% effective with growth NOI XX.X% with growth record out our a of achieved markets, higher,

quarter in markets QX, out NOI Second continued growth store NOI the our total was I or QX, XX revenues. growth Operationally greater. nine Eight with accelerating same growth X.X% at with our better. of of portfolio XX achieved with of year-over-year markets least line holding positive achieving out same of growth experience special across the as XX.X% in revenue mentioned, the in an XX.X% growth or portfolio averaging by driven store board, XX.X%

and XX%, at renewal Orlando of the XX% XX.X%, least no and at at of were markets XX.X% XX renewal XX%. XX.X%, were top under growth Phoenix were out Our Florida with at South executing XX.X%. at for five XX.X% were and Nashville Tampa six markets Atlanta conversions rate quarter, at markets QX tied

Tampa occupancy front renovate the at force the healthy achieve at and XX.X%, are was at close akin more to XX.X% leaders our over lease more we robust as XX rents primarily for on portfolio XX.X%, were this Orlando strategy pre-pandemic Florida of pushing the order with goals: Our XX.X%. South QX morning turnover that a on of XX.X%, gap at leased day QX loss at a XX% to occupancy and report in renovation Phoenix occupancy and pleased interiors. closed XX.X%, output, despite The store of strategy was to to two to trend same

lease XX.X%. our the in market. B store was This range, same percentage more in growth about overall rents Our outpace – because XQ is national points RealPage’s X% continue ahead of Class to the growth average loss X

season. outlook Our half this fundamentals and year during growth to initial to to base lease the max case market half, reductions see We saw higher loss QX the the as decline significant in the moderating, digits the start into in the expectations our coming lease loss outperformed remains traffic over rent priorities for and high shift slower with have most second rate year demand the of single and second expect now we constructive. occupancy but actual

investment strategy inception XXX completed company. an average of on return the mentioned, highest since quarter, and led of output As the our occupancy rehab XX% our second Dave generating the during also rehabs the

on a X,XXX will high some strength rest on into in far we single so the low upper renewals going for half our year of new with this expect but traffic XXXX. despite As more mid to and leases. rents you likely digit on growth continued the growth of in place continued and [Inaudible] high strong leases do we rents, teens the record to and blended emphasis temperatures most of XX% roughly enter and markets, strength double moderation see showing of second in will year the occupancy

underlined Dave Turning in guidance GPRs and to strength revenues store year, NOI the in with our again as and allowed XX.X% XX% XX.X%. range the and roles midpoint total the increasing to data said have the rent few that to same strength points XXXX time second we're a us this for guidance, informed guidance our that quickly to seeing of market. share a of I’ll

renter room trade-up over to The also rents hard market and B gap resident keep show incomes at little continue between unit, up levels. keep the remain trade see on this intermediate January are to B XXXX. healthy Rent-to-income factors, average credit elevated, our are ours and RealPage’s continue now leaving of tenant’s A likely us options $XX,XXX Class direct of roughly banking system SFR. Two $XXX XX% to rent to and between household out incomes are Class costs Class construction increase to nearly A and our per as to annually. to These our in Both Class delta plus as to First, historically growth. July data volatility due average annual ratios factors incomes up our stress from portfolio over financing growth to or other market constructive term. wide elevated near XX% tests,

XX% our sending fund commercial transaction seen our plans to some well capitulation there pending share. adjusted or transparent loan off positive and to types. activity, We've routinely two in of first owners said, spot as as on is a has the and to namely and this In the will X.XX% at transaction pre-May in rates, the cooled maturity. put underwrite institutional life markets. cap we been has disposition Most Thus a leverage volatility downward to our rates most contract today's call. NAV, from years portfolio company. as cap in here, leverage unless property no this and growth first to buyers until seen At we extent re-trades exceptionally for stock. under sellers rates year, case as three. look in have been Huston but We market strong NAV new we XX% significantly our down and mid-point being closing, negative is X% cap assets, half rate have on our to later able to per the cap earnings X% issue the since $XX to Deals credit implied stay these X% XXXX prices, buyback market recently of levels, at Dave and or our to valuation, of Turning surprise have to north our has of due been the past, of view sell real-estate

remarks. fundamentals our And particularly We that optimism rental middle-market markets, in housing, see to the teams best to have execute. will for prepared NexPoint of XXXX we BH internal that’s And continuing turn to in here are all one like to I call for maintain our over I’d Sunbelt Thanks be growth now our operator at and to for questions. ever. the expecting strength for and years further

Operator

from hear Tayo we’ll Okusanya Credit first And Suisse. Instructions]. [Operator with

Tayo Okusanya

Congrats first suite versus our didn't raise of $X.XX, question I of morning, in quarter! the know everyone! related. but the From good us, Good the on of beat Again, mid-point a the Hi! versus you is your end, $X.XX, about you solid kind guys guess XQ guidance. guidance

about of implies So the just back what about ‘XX. half curious that

David Willmore

bit of and more would little Nothing the timing but assets than a we holding great of operationally. those Houston around It's Tayo, dispositions a the operationally. longer otherwise on have. It’s question nothing

take were I to know at until downturn you those we them credit after put like As the probably Day. right and out, markets you and off recall, said, attempting the Labor

So that’s if “hesitation” that you will, timing of issue. operationally, it's again delay, just nothing but sort a the

Tayo Okusanya

still shouldn’t delay, because a kind help numbers, NOI you coming there’s in? of that that have if but Yeah, the

David Willmore

you are interest the the to know but NOI, offset – It’s also on they expense. basically have you going the held increased have we and Yeah, NOI. you the revolver being

Tayo Okusanya

more the okay, place. two rates. Number have swaps just again again, of keep in you a and think rates kind And that the interest Could us of impact through Okay, your so rising you, got lot you a potential then of backdrop help guys that's was with bit just Again number of rising. one. levered,

kind numbers, given ‘XX lot You just goings that but ends know how up not the ’XX, into impacting of a half swap impacts of of maturities.

David Willmore

the talking or yeah, mature Yeah, so, really another about mean favorable. until so is the What of are don’t “four near kind term is I swaps we the years” revolver.

a us any we we offset interest guess $X if largely I pretty things could be agencies and talks we’re XX spreads in any that fundamentally next actually get address think looking know million year from on Some million are able the to points to are done, expense, in impending maturities with differential lower and anywhere $X increased – the starting the good is, we potentially we save That feel spread with revolver ‘XX. to about you to it. year about the basis

with active an that un-hedged of we are to piece kind sheet now book. that's talks mitigate of the So maneuver in balance the

Tayo Okusanya

you Got one you. indulge And then more, if I me if could mean again.

kind rates recast, that Just you actually again the higher interest with in higher the sounds like right it the are transaction are rates, markets NAV guys again you now. Again of cap seeing using.

given seeing A but just a multi-family. moving kind about of again are not affordable are rates that traffic, the kind talk again change, the a similar You for kind of it’s type housing confirming of though tier the Could you little cap bit even if Class your markets. on side,

David Willmore

to because at we lower in that Class levered buyer, core definitely growth, B on the underwrite a in you still parity the rates are. leverage there's I or going cap reason growth. why going you're negative and mean is less lower cap have basically with type rate even sure, can Yeah at A

cap as seen irreplaceable into So rates course the well. Class those four asset, also something some the but of or special you really know A, at location it’s we've moving unless range are

Tayo Okusanya

Got you, the into alright. I Thank will now back queue. get you.

David Willmore

Tayo. Thanks

Operator

now with hear Securities. from next Lewis We’ll Truist Michael

Michael Lewis

you. Thank

to like financing to really half it, the longer. it’s you Huston that’s would of that’s fair It the interest imply that. the it core at First but raising Maybe sounds of really first $X.XX on $X.XX to Is a in because FFO? that’s going and the you up in back sounds the keeping rates? it just interest min-point your wash year follow say half raising hold the keep thread just of it on guidance. about I That just the question expense from it’s the expense the is wanted like from

David Willmore

you those change, guidance – the we’ve everyone from I to on remind litigants. comfortable mitigate if and I are to still like and like what sell earlier, a well in of as $X.XX we we to portfolio. and things curve think that as just the and couple of know to initial are Houston to then those it's said, monitor raised some we're strengthen we're then – it's revolver items, with Yeah, I’d really And $X twice, the to is the guidance so able pretty trying change so and $X.XX doing feel

Michael Lewis

understand. I Yeah,

that. to too that I was few that that Is the you due so of anything had sort different. bar handful notable? XX% for communities little – are And quite put question I on just to already a if up Anything shabby, had is that down there a that guess wanted you're right. you then units on. earning of I out wondering was are you isn't event. that service growth event? not to that a thanks about like casualty units of I you casualty. collecting have noticed ask You know normal that, talk know – one to weather a

David Willmore

a I know deal – and fires feel happy seeing. trying possible. of Any to so owned remediating back or that's speak, know up those garden, kind to ever a as is. but you that’s what soon be pain solid you or our and operator We’ve portfolio get from that's communities what assets landlord as that units, a time kitchen that No, and have so the and actively unfortunately down you're to. couple Yeah, some had experience taking of mean fires it’s in we're the time-to-time –

Michael Lewis

then were up a quite you last the in quarter. expenses I me, store Okay, saw know the bit second thanks. for And same

not but much. guidance, the raised too You

I kind or a half. – implies in know in to drove of the down what of come guess what’s second – bit the what and outlook back know then you little guidance second that it’ll quarter the the that kind increase in it’s You

David Willmore

that’s it's and not we a R&M Yes, repairs great a that capital with is maintenance that Yeah, expense ROI in-turn, so because question. of don't capitalize, item most components.

that So the that contract cool was quarter properties we during spike. Yeah, the you a so had lot the but and a close fix on or labor to – second to second we quite is the continue was during honestly heat, where during and HVAC lease the plus like expect don't plus that and to was gap to it I churning we that’s capture said renovate. quarter, accelerate, or what lost are know of

Michael Lewis

you. thank Okay,

David Willmore

You bet.

Operator

onto our will Moving question come which next with Buck from Raymond Horne James.

Buck Horne

affect guys! I Hey! morning of supply directly A that know investors quarters. question you kind and coming does market what potentially markets about cap next your about but the not pricing could at begin and/or the renters you're from where of I'm price how you lot kind you're level get few you to product asset a properties? looking or know hold know thinking to it rates of to product that may may to that competitive do be in your a away over points, Good digest how it curious as your think

David Willmore

Yeah, good coming in existing were some say I those deals question. would supply online. that There is motion.

the justify to still because some – justify portfolios $XXX and start roughly markets $X,XXX, the example said $XXX, always but X% impact high units, to rent know $X,XXX to generate you to if supply. speak, blowing to is achieve You a and today, are yield it's I for don't new obviously a more the like that’s hard Dallas on development, have to seeing developments on still Phoenix for know but trying it's north headroom prepared like of cost remarks, know in Yes, going, you're I think think something going that new I so on dramatic you build our need so. I to $X,XXX, – some

the enough headroom us I to effective end to think know continuing is still push so, While rent for be year, the competitive. low the XX%, still teams estimation $X,XXX we're so you in a or of rents our and

our you know we underlying that You move think kind fundamentals thesis, etc. to we're moving know it some and outs, expenses, of add so addresses okay.

Buck Horne

seem of that. got of appreciate traffic there. sort it, recession behavior of the in leasing. terms of just you rent it! – you around drumbeat change just Got seen I you or know of know economic as know And out leasing in to or any be fears concerns like kind Have building traffic, you current seeing

know that You know indicators Any to of is unit. per web terms taper traffic. starting of off? level the in I know if don't its walk suggest interest you available kind in might or demand traffic other

David Willmore

for for our, No, BE’s [ph]. not not

Renters are own seeing and you Class-C, of income We you Class-C assets. Class-C, on not a in just know fixed we where have observing know some that basis. that we but more renter are

at in X% plus You know rents are Class-C. growing

of hard know obviously sustain increases. types wage to You that growth is those renter

you as know see and Class-B, we and bad new some debt tick some So in as through far renewals. demand and obviously abatement still leases but that delinquency yet pushing up might space, any seen you haven't great

during the still something. It’s bit is healthy obviously, or still a you good. know traffic summer feels but little know difficult, you in Phoenix everything or Dallas months So

Buck Horne

I Great! guys. Thanks the appreciate color.

David Willmore

Yeah, thanks Buck.

Operator

to be Now we'll will Rob with Jeannie. Stevenson our caller, move and that next

Rob Stevenson

traded Matt, to recently? guys! quality pricing similar morning, seen or yours been that Houston you've how has assets any Good

David Willmore

X.XX, and were and that those bids the know I bids. just unsolicited during got we X.X Old the before We For the market softly in then X.XX come timing, Creek those would was back you quarter but have ball on buyers kind that range. and couldn’t say of you transact Stone Farm know they –

best the that of kind apples-to-apples comparison give I that’s can So you.

level could to. at if transact that wanted we today we So

Rob Stevenson

better you is guys hold where time doesn't want guys sell? about How oil where are are with pricing to the that you XXXX. look the really there isn’t Okay. and you urgency term in you near when prices or they I that your or transact if Houston – into you is know it, I be never to mean from standpoint, mean any you to a forward, thinking there know it going

David Willmore

know to strong that's – with absolutely. year it. the share that, also for a helpful I within know kind is – buyback demand And the and to the were lot our said delever, you within we assets want things with it's We think sell the Oil stock, good we that want We assets we same you Houston the etc. it's also investor, slower, store of optimism NOI those are as Yeah, of you and growth to Houston. you a market. do to do but agree assets the portfolio.

sell a So them. of there's reasons multitude to

Rob Stevenson

were although you Are own in Okay. stock’s high any out that And The sense stocks guys would a is could stock quarter. how that stock; your I guess just XX’s at acquisitions XX XX’s bought you there point, active in the guys down the acquisition versus much low it's higher? NAV. price you market? at mean this see I versus make there under the

David Willmore

all. at not No,

Rob Stevenson

Alright, then last one me. and for

or Is XX-X So store comps in if third second you up get quarter the first is to you're the it to going can the revenue the to I likelihood quarter because on aggregate then the law year-over-year and your there XX-X, guys in growth quarter. and get XX-ish, in down. guidance at of its big the even surprisingly just any same year-over-year the is third the quarter mid-point their numbers that. really high you look revenue see half first and and high in the the of way then comps guidance growth, you that so were store same end in down, so is the start jumped of is know come XX-X suggesting XX’s the when you of the XX coming XX-X at only maintain growth toughest But

David Willmore

right. you're good a again that’s No, question,

first one we’re The that yeah, comp we you see, is you third it's now teens, but July know so. – to the that revenue month, high – in mean quarter we’re our tougher right but know of be going kind I one

quarter here as the I think and through You XX% to you I and it's but teams I through push in change, think could we and know sustainable we XX% go today sit occupancy QX. things know obviously XX% XX%, third could as maybe do

least. that's So what at forecasting we’re

You and our to is can QX. QX we know XX% of that do kind kind forecasts we of really XX% for think income

Rob Stevenson

And one know or I costs pressure material guess last you material Okay. do on and are labor seeing release you me incremental to the for upgrades? any then,

David Willmore

material on the costs. Not

supply bit, In caused greater durable be costs, able the little washers time are to kind you the there to so like from was know has reduce the days, dryers. goods loosened on we chain to XX, that a has terms us of pandemic, than renovations and less XX. XX which Like having to accessibility turn of

improvement, I seeing So goods the, we're you guess labor elevated. still where contract that's best still the but is know and pricing

Rob Stevenson

Okay. a I it ton. appreciate Thanks guys,

David Willmore

You Rob. Thanks bet.

Operator

We’ll now hear from Michael Gorman, BTIG.

Michael Gorman

income, seeing the kind decline happened a in what what there. just Could the you growth. and and happened rent a walk you're thanks market? like and what seems in know it The you quarter-over-quarter points there, us pretty but up basis don't though talk kind what rental Yes, I Matt. decent there. of market Vegas with XX are Vegas the occupancy about minute against Can you was just negative of only it spend seeing the market I quarter-over-quarter noticed

David Willmore

forward. the Yeah, notorious asset, of late skips to a Michael. we’ve and if courts payers wash that, really payers open try one as going there clear in is and XXX renovate to bit the and those and which that those It’s out you thanks was But XX isolated had were evictions a to push out area, Bloom, throughout that we hopefully kind again delinquent the and many the resident of are won’t and of and evictions, through it of to able these largely of the range turn that we demographic and renters able asset. profile quite late see were to lot of pandemic

Michael Gorman

decline. clear if units, I’m Okay, numbers, guess, out X.X% rent figure there rental the because change. guess trying with effective X% anything same be – for ballpark numbers just I'm occupancy I the helpful. and just like pair quite increase I can and not those Atlanta then quarter-over-quarter Vegas could but in the saw I But higher in ballpark that, drove rent a growth, were to would saw are you income for add Atlanta they what same I'm just Vegas and

David Willmore

tenet. particular assets Vegas Yeah, I a mean market, it's I the might dollar – whole same and are Las more job rent, Atlanta it think be as because asset different little oranges less in or a bit have of the basis a These asset your different much as diversified there. market’s Atlanta apples while to that job leisure, diversified, there, this doesn't other

I – think demographic think the like to one I just asset it’s profile. attributable it’s changing I said, and this

Michael Gorman

more Okay, just And housing we going helpful. look there's the board deeper at kind or every any Obviously you rents the in are Have of you great, leave portfolio and into your move change see outs going when get in the they then product with holistically of they where the as pressure that's across renewals, the maybe cycle. terms type. up almost properties? non-conversion where

David Willmore

kind I most likely. I I Yeah, deal for another it's, garden competitive it's mean think think of

is what is and – know lot for this you haven't the news good getting We with yesterday while we you're Gateway of a time spent – RealPage and at. our maybe market

of in San other traffic Gateway the accelerating places market. expense not rents at coming New and York and that, Francisco like While are the it's Sunbelt and

moving they home, are but reasons, So a to is likely or buy we like to some doubling obviously back What speak. flight a job, are option we're kind either new now of a roommate not seeing is so just personal more to in a cases with not up seeing. York the job, that for that we're seeing had people New know you relocation a

it’s So that's where really going.

from also. XX% California – that's seeing plus see and We that positive, you're that’s data, you I migration are inflows that's trend think Illinois, But we're to know continuing otherwise net a the very so story. still

Michael Gorman

We rent the cost when attribute growth. that's as buyers just noticed Sunbelt. briefly, at Yeah, Is it on the due think disruption underwriting just touched the their the expense almost helpful. that you the capital. you're of having, markets the do much on you the pricing you an or me, trend, but future rate seeing having question on is can coast the think improvements impact how that same about not versus, I to change cap of capital the to not are from of well for it coming shifts, entirely you Last thinking in

David Willmore

the it’s yesterday We large that system some – credit the quite And had brokerage it’s too as it's banks so its the balance well with seem houses largely from capital. cost meetings know think was more they find, the I are and and shock whether agencies frankly born Yeah, sheet the you investors. [ph] the to a to K warehousing demand Securitizations good that know the Freddie bond of for quick. just and are lenders, they to with spreads to market you or can't charging

So, and while to all to calm a that place and sit, settle is trying just and happened a for place it hasn't a find it yet.

plus that [inaudible] of top on cap So It’s rate know kind where are, that's spreads – the leverage. you of negative kind leveraged normal of your XXX, we know for highly costs, buyers. floating

rate So have a story didn’t rate X.XX% a you work and it know cap the obviously so fixed X.XX%, underwriting, have Fixed just you and unless doesn't that X.X% term buyers, growth range in, the unless growth, to XX% and know is, growth. compare you all you in that's right buy now. work rate hold then long in plus, a X.X%

market liking seems hopefully it and bit, but is assets yeah, think same be the to little to you does. know So constructive, down and everyone waiting settle are have a they a I hopefully, credit

Michael Gorman

the time. Great! for thanks

David Willmore

Michael! Thanks

Operator

[Operator Instructions].

have We Okusanya Credit Suisse. with a from follow Tayo

Tayo Okusanya

you quarter, improvement What you. can to expect we it be NOI drove start thank margins PropTech you and range? low Yes, what to that more to in just longer let's margin to just relative Hi! comping again as with guys bit little as again your peer group, about guys and peer XX% the NOI during have margins group mid talk again. a The term, turns to do a where NOI the

David Willmore

it. do right Yeah, we continuing aspiration been our I mean that’s and to are

this the half was quarter the largely the non-controllable the first and on think year really I improvement of side.

few on we on gotten – will. taxes you insurance. consultants in gotten years hammered those better several, non-controllable the recall, – in control The the we’ve if we've know better and property both expenses fronts honed team we’ve over have you of If you on past and just changed has

leasing are and the the I’d sites. agent we REITs and yeah, gateway front, employees those leasing in are you're of that of lead in taking terms say categories the of operators on So a on-site the having and call-center at also couple payroll we another of the instead see. some leasing virtual of maybe having a

and to those same would see so you improvement we margin category the efficient will cost staffing to I primary think on management drivers more be NOI side, to hope down the on. that are continue property of execute and come that store I say two continue So

Tayo Okusanya

Got you. Thank you.

David Willmore

You bet.

Operator

questions host over turn your time remarks. our this any or back for the I'll no in there additional closing to is additional queue. And call

David Willmore

thank Bye-bye! dialing the a in next and good Thank today Yes, have rest forward of the appreciate to I everyone look day. you. you. and quarter,

Operator

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

NexPoint Residential Trust (NXRT) 26 Jul 222022 Q2 Earnings call transcript