NXRT - Earnings call transcript Q3 2024 | NexPoint Residential Trust, Inc.

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Operator

Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to NXRT Q3 2024 Earnings Call. Today's call is being recorded. [Operator Instructions] I would now like to turn the call over to Kristen of Investor Relations. now is line your open. Kristin,

Kristen Thomas

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

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

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

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

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

Brian Mitts

to year. for amortization. results provide XXXX our environment million, for driving a specifics for $XX.X NAV for the Matt share, of and turn guidance. Results Mitts, as loss the Net totaled outlook includes over to guidance McGraner $X.X quarter the then start our performance share call are Bonner joining today compared Appreciate which Matt McDermett. I'm going the million to I'll it of by welcome and and Thank follows: XXXX, quarter. diluted $XX.X of million included and loss discuss and you, updated Kristen, QX And of morning. this gain third amortization. off by or which diluted the you call. $X.XX on Bonner depreciation $XX.X of per joined Brian to I'm million net to covering the This of and and I'm leasing everybody metrics per quarter or and third the depreciation and income a of $X.XX I'll

of to $XX.X million million For the for $XX.X third compared the properties on third XX 'XX, NOI properties. was XX quarter quarter 'XX on

and coupled to X.X%, decrease, same-store this by X.X% NOI For X.X% occupancy an expenses to revenues quarter, led increase, rent operating QX in to same-store XX.X%. grew a of This, 'XX. X.X%, with same-store same-store decreased offset while and compared increase same-store

per diluted As compared XX.X%. or grew of X.X% XXXX down for to last or quarter share to $XX reported FFO QX points occupancy share same-store $X.XX this XX% were while the compared $XX.X diluted XX quarter to basis rents portfolio core by per million on sequentially, same QX year. for The the

full on $XXX of increases the the on for for inception. $XX monthly $X.XX XX.X%, our technology since a and since stock quarter, inception X,XXX the full in portfolio, properties Since leased on XXX.X% units, per and achieving we've a upgraded appliance package monthly third $XX and September a and ROI, respectively. NXRT and dividend a investment. third $XXX, our currently we've quarter unit kitchen share portfolio, rental the laundry X,XXX partial completed per premium and average XX.X% partial an and a During installs installations, we upgrades paid completed upgrades, resulting rent XXth XX XX of properties increased return XX.X% a in XX,XXX and in dividend average XX.X% and

of quarter, was inception, with which dividend covered For the ratio a represents the a share dividend. payout increase core core FFO XXX.X%. has per of X.XXx from prior a dividend FFO. Yesterday, by of quarterly XX.X% NXRT increased the Since XX% share, dividend the our $X.XX by second board approved per

As $XX.X XXth, credit of had on we available facility. the $XXX and million of liquidity September cash million corporate

weighted XX have of the the company's entered Accounting X basis agreements years. cover on expect On of impact line subcu on November agreements points. XXth me enter loan for the to for to additional happened into Xst, by October a from is interest contracts total Let couple hedging extends the to events X.X to are to quarter. company proceeds pricing that interest which, in. points average a the into Notably, from refinancings activity and refinance weighted adjusted This new swaps, are NXRT aggregate, to to in our expected weighted be XX.X% debt. plus years swap that reduced these debt company's outstanding before terms. approximately of X.X% rates expected NXRT's NXRT's X.XX% Holistically, billion, average maturity schedule of debt refinancing gross $X.XX average prior rate XXX total reduce circa factored improved from rate rates, interest total to impact basis agreed represents interest of Those XX X.XX%. previous the subsequent rate

Xst, multiple a Old in XXXX. the On ] from maturities until were refinancing, the on -- XXXX. company XX.X% [ Houston has proceeds capital. property Stone invested sold a sale in built these which of Farm $X.X -- completion October million, for approximately meaningful delivering X.XXx on also IRR Creek is debt and the XXX-unit Net we With our no at levered

rates our $XX.XX our as low our NOI, range per estimate are in on and forward $XX.XX we share cap end, NAV reporting on activity. state X.XX% a based on market of for low the we These NAV high estimate, based of recent end from on midpoint and are the X.XX% high ranging quarter-over-quarter markets cap average transaction follows: on the current the Turning rates to which a on $XX.XX. end, to intelligence based from helped end,

guidance. our to Going

XXXX We share. are follows: diluted For updating earnings range as per guidance

high We are low $X.XX guiding for to on midpoint on gain end, the a $X.XX loss share. of a $X.XX the per end,

core share, diluted low midpoint, prior the the to $X.XX is the at $X.XX end increase high $X.XX For which $X.XX from and the quarter. from the per an end, on FFO

revenue, high expenses reaffirming NOI were midpoint X.X%. same-store For end, and increase follows: prior for as increase X.X% low the guidance of a the in revenue, on For X.X% end,

end, the X.X% of midpoint. of end, high the the for are X.X% increase the X% guiding the low And For midpoint X.X% for expenses same-store a on NOI, on high for negative on end, X.X%. at a low X.X% at end and we

versus are acquisitions prior quarter. guiding for versus we [Indiscernible] at from previously. no million same million the essentially dispositions, acquisitions, $XXX the For $XXX

periods mention wanted costs of I core Finally, before we those related all And it over I making to mark-to-market to financing Matt the financing to for We've reflect disclosures. a noncash as to the an will company's performance solely related ongoing receiving and and historical did. been designated remove investor are to believe after interest expense recast secondly, we for losses better the company deferred these comprehensive operations comparable adjustment the hedges the FFO interest to adjust presentation. turn previously conducting of undertaken rate core this of caps, for quarter. instead account gains feedback FFO these significant amortization have as Bonner, to changes well company. as current conform adjusted to items of debt The to of We purposes. review the short-term or not our Prior removal

for to completes remarks. now Matt that his commentary. over turn it I'll that, with prepared my So

Matthew McGraner

Yes. Thanks, Brian.

rental Let leading respectively. and me over third the going operational with the way markets XX.X% was markets -- X.X% of growth quarter. same-store X% averaging Las Vegas start our at same-store at with and same-store quarter Same-store by X revenue for year-over-year revenue up our revenues least X.X% XX were Raleigh Total growth, X.X% up results.

as average, Third in Volume ] quarter same-store negative [ growth. quarter to X.X%. down the growth NOI Brian XX.X% said, growth XX.X%, was portfolio

Secondly, properties the growth by as of a driven process. adjustments successful tax result

NOI metric. QX positive finish least year well or same-store in XX revenue experienced at with strong positioned the on markets portfolio continued of margin better. are and of remained XXXX our QX growth out at that growth Operationally, achieving XX.X% to X the strong X% Our

is X were at [ me, XX% of Vegas growth. exceeded markets [Indiscernible] all Raleigh, renewal conversions growth X.X%. X.X% with markets rate Charlotte quarter, X.X%, X% eligible of ], Porta at at out and at South are Our Vegas up excuse Renewal the XX% XX Raleigh XX.X%; Las tenants the Charlotte, for or exceeding X.X%, for X and and top at Phoenix, for X.X%, Atlanta least were Las quarter

XX%. the has XX.X% it front, -- occupancy registered as quarter a is as portfolio occupancy close the occupied, the XX.X% the excuse and me, leased XX.X trend of healthy this of morning, of XX.X% On

renovations QX due and the finished higher expenses side, were QX compared when X.X%. expenses XXXX to year. of costs this expense at the lower turn in seasonality by R&M On quarter driven to typical

these and costs end down to so blended year. fourth October X% for moderate were expense expect quarter, averaging growth X% with respectively. expect we a turnover. and be the a the maintain bright positive X%, leases to and be the to new QX in in renewals number higher the We and in to positive less to a a X.X%, the as modest at X.X% spots QX utilities and far, the and slightly leasing X% we to lease for and Marketing occupancy quarter saw line categories quarter in of X.X% is Current in

of to On our XX research out supply. are are intelligence, rents X occupancy NXRT's forecasted X over XX XX own grow XX them, we grow those all the of past our over to the of think and according same expected side, markets the and XX are markets next supply period. of months market to peak out

a constructive next peak the of Thus, and stronger in we Phoenix reach expect performance Florida At the XX-month outlook. likely growth should are South to quarter favor. over operational growth the given XXXX. and final expect shift defensive XXXX. through the X next rent to remain will We quarter more becoming strategy across fundamental our third markets, see X, or This incrementally by but we which our on supply Charlotte, sustain point,

refinancing yesterday. underwrite recommending approved the we rehab as portfolio the expect in dividend management board with addition, to to increase our value-add increase materially. the we for led activities the opportunities XXXX, somewhat outlook, by This coupled In output

the we earnings core November, rate all of floating debt As is $X.XX in will completion forecasted The to the This annually. into going $X.XX XXX company. power from have XXXX. activity especially pushed the refinancing us XXXX Creek and out on you maturing recall, full of provide to portfolio front points of the year rehabs. expected to with from points continue spread cash internal and average ability add to benefit our balance million may the XXX of to to account earnings sheet the new investments buying growth on basis reduced basis $XXX gives the have nearly upon to available sale Stone and a growth accretive

we On NAV, transparent the our as seeing what mentioned, NXRT's market. we're remain view Brian the in of and

rate And at new NOI. X%. a Our $XX.XX our today's share is cap prices, midpoint using XXXX rate X.X% on roughly is per implied revised cap our

done growth. And outsized closing, these past, we're our NOI we'll remarks. discount. In team for here As continue NexPoint to the levels, on buy in work near-term outlook guide free all free our for we extent a use the back and/or we've Brian? and flow the continuing company, just of execute. post for at earnings another and the stay and excited generating the to reiterate to to I at have BH we at core and liquidity look assets our prepared Thanks at cash stock about routinely quarter to to that's that sell us to as to I'll utilize up NAV

Brian Mitts

Thanks, Matt.

for open questions, it Let's up please.

Operator

line Okusanya [Operator Instructions] comes the Bank. from question of Your with Deutsche first Omotayo

Omotayo Okusanya

A my end. of couple from questions

same-store of out kind net XXX revenue doesn't rent But to I wanted the revenue X.X%. bps, to X.X%. quite quarter again, the of First about up rental down occupancy the mass up effective on And all, year-over-year. focus It for X.X%.

just same-store something else number. curious during overall quarter, of revenue it's of maybe bad may else considered you debt growth kind kind that in haven't that just or whether happened have what So the

Bonner McDermett

Yes, this is Bonner.

quarter X the the That driving drive up fourth quarter, think I XX.X, XX.X. that actions occupancy quarter basis year-over-year. were XXX -- points continuing saw about the was we really growth closed things at this financial impactful to we the

for us. financial So then bad debt to about bit off a on on the X.X% quarter, debt, X.X% occupancy third coming last continues a perspective. better a X.X%. over down had little quarter than in last at debt bad forecast. And comp trend That's the year We bad

the drove [Indiscernible] really lines increase X those So in

Omotayo Okusanya

quarters will and again, property But the legal things helpful. what understand services kind on that sustainable to forward? all if then G&A the bit. Okay. all going of And and passed XQ, sorts happened property a know, came to That's just be can I very that lumpy. in are of levels down trying that's quite that's in

Matthew McGraner

it's Tayo, Matt.

We guided having and tours reduced the have AI to add it path. and seems lease you less on-site a continue staff. example sustainable to anything whole here. But be think as utilize We do site waning a if on is Booner, to that

Bonner McDermett

happy Yes, very I with little turned very overall. for growth in market think utilities we're G&A, the genic where property quarter, growth spend, out in little

we've really for ways Obviously, we can controllable expenses leasing on environment, in a think been is really expenses. I focused ton turn important us.

those lines. continuing look and very continued the We're we control continue way at hard 'XX So to into to focus. budgets

Operator

with from next question Lewis Truist [Operator Instructions] the Securities. Michael line of Your comes

Michael Lewis

know don't I I this. Great. missed if

small the core in what FFO So drove guidance. increase

kept some definitional or acquisitions. took this to metrics and the the change FFO, You same-store have out else. something all with of is you core there same Does do the

Matthew McGraner

it's not trouble, Michael, it's then mark-to-market change, Yes, have I removing which include only analysts, but we're debt some Matt. the think, it's refinancings, So the it impact yourself. the right? the all and frankly, redoing of definitional impacts, a

both things the positive $X.X those of So this and refinancing, is X result. out billion the smoothing incrementally the and for year next it year impact

Michael Lewis

Okay. what done, we -- It I it's expense an really interest really all said That's and thought. mean,

Matthew McGraner

Correct.

Michael Lewis

your while, the as spread. And [ or for or Do perspective this expect this all rate these putting 'XX. lot of do? debt, you Okay. is you you you good that, new Got and swaps you a So a you in do and A all off got from a then ] hedging burn write right? of 'XX right? on existing start you. this float hedges little Do down, do SOFA to swap do a coming on what

Matthew McGraner

the X.X, Yes, be got looked little bit I this and some level X.X with that, We, long X% a think the that as really that a done, that gross XXXX. of concurrently layering good in expense a as offsets yesterday, we've start can which our view. holistically And -- us we to expiration was And then me, question. annual thought done same-store kind on then guess, that back bought time And could we when all increased refinancing return interest we compounded good through with excuse at work to swaps. the swaps. on X-year a earn basis due of of this

term with good we number, but So is what that's news do election the the somewhat rates, look in we're the don't going happens -- short these positive. short want materially down layering levels, cannibalize The to obviously, does We return are swaps. interest see to to the that think actively we and come that or here. short we'll end to at

that to is So that's to short the interest we're long-winded environment the extent rate on X look years. answer going of advantage get we The take answer. the to relief

Michael Lewis

and the you. lastly rec then just for share you the spreads And renewal quarter? new for Could me. Got

Matthew McGraner

a On or up leases leases. down new were It's basis, about $XX leases Renewals X,XXX Yes. on on X.XX%. blended were $XX. XXXX X.X% minus

Operator

right. All

So there question I turn back over is closing time. management the this no the for will at further now to remarks. conference

Brian Mitts

you. everybody Thank in everyone's ] appreciate questions. you. a few in weeks. And I time hopefully, see we'll [ Thank NAREIT Yes. and

Operator

today's joining. all call. concludes that for gentlemen, and Ladies Thank you

You may now disconnect.

NexPoint Residential Trust (NXRT) 29 Oct 242024 Q3 Earnings call transcript