DALLAS, Aug. 13, 2019 /PRNewswire/ -- NexPoint
Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT)
entered into an agreement (the "Agreement") to purchase a
1,520-unit multifamily property located in Pembroke Pines, Florida, a suburb of
Miami (the "Pembroke Apartments"),
from an unaffiliated third party for approximately $322.0 million, subject to prorations and other
adjustments as described in the Agreement. As of July 29, 2019, the Pembroke Apartments were 96.1%
occupied with a weighted average effective monthly rent of
$1,487.
The purchase of the property is subject to customary closing
conditions set forth in the Agreement. The Agreement also contains
customary representations and warranties and covenants of the
parties. The purchase of the Pembroke Apartments is expected to
close on August 30, 2019. There can
be no assurance that the closing conditions will be satisfied or
that the purchase will be consummated.
The Company has also entered into an agreement to purchase a
346-unit multifamily property located in Nashville, Tennessee ("Arbors of Brentwood"), from an unaffiliated third party
for $62.3 million, subject to
prorations and other adjustments.
As a result of these acquisitions, NXRT is increasing its Full
Year 2019 Core FFO Guidance by $0.02
to $1.92 per diluted share at the
midpoint.
A presentation that includes additional information regarding
the purchase of the Pembroke Apartments, Arbors of Brentwood and NXRT's revised full year 2019
guidance can be found under "News & Presentations" in the
Investor Relations section of the Company's website
(www.nexpointliving.com).
About NXRT
NexPoint Residential Trust is a publicly traded REIT, with its
shares listed on the New York Stock Exchange under the symbol
"NXRT," primarily focused on acquiring, owning and operating
well-located middle-income multifamily properties with "value-add"
potential in large cities and suburban submarkets of large cities,
primarily in the Southeastern and Southwestern United States. NXRT is externally
advised by NexPoint Real Estate Advisors, L.P., an affiliate of
Highland Capital Management, L.P., a leading global alternative
asset manager and an SEC-registered investment adviser.
Cautionary Notice Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on management's current expectations, assumptions
and beliefs. Forward-looking statements can often be identified by
words such as "expect," "intend" and similar expressions, and
variations or negatives of these words. These forward-looking
statements include, but are not limited to, statements regarding
the expected closing of the Pembroke Apartments acquisition, if at
all. Forward-looking statements are not guarantees of future
results and are subject to risks, uncertainties and assumptions
that could cause actual results to differ materially from those
expressed in any forward-looking statement. Readers should not
place undue reliance on any forward-looking statements and are
encouraged to review the Company's Annual Report on
Form 10-K for the year ended December 31, 2018 and
the Company's other filings with the Securities and Exchange
Commission for a more complete discussion of the risks and other
factors that could affect any forward-looking statement. Except as
required by law, the Company does not undertake any obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, changing
circumstances or any other reason after the date of this press
release.
Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
so as to be different than the most directly comparable measure
calculated and presented in accordance with GAAP in the statements
of income, balance sheets or statements of cash flows of the
Company. The non-GAAP financial measures used within this
presentation are funds from operations attributable to common
stockholders ("FFO"), FFO per diluted share, Core FFO, Core FFO per
diluted share and adjusted funds from operations attributable to
common stockholders ("AFFO") and AFFO per diluted share. FFO is
defined by the National Association of Real Estate Investment
Trusts ("NAREIT"), as net income (loss) computed in accordance with
GAAP, excluding gains or losses from real estate dispositions, plus
real estate depreciation and amortization and impairment charges.
We compute FFO in accordance with NAREIT's definition. Our
presentation differs slightly in that we begin with net income
(loss) before adjusting for amounts attributable to (1)
noncontrolling interests in consolidated joint ventures and (2)
redeemable noncontrolling interests in NexPoint Residential Trust
Operating Partnership, L.P.; we show the combined amounts
attributable to such noncontrolling interests as an adjustment to
arrive at FFO attributable to common stockholders. Core FFO makes
certain adjustments to FFO, which are either not likely to occur on
a regular basis or are otherwise not representative of the ongoing
operating performance of our portfolio. Core FFO adjusts FFO to
remove items such as acquisition expenses, casualty-related
expenses/(recoveries), losses on extinguishment of debt and
modification costs (includes prepayment penalties incurred and the
write-off of unamortized deferred loan costs related to the
retirement of debt and costs incurred in connection with a debt
modification that are expensed), the amortization of deferred
financing costs incurred in connection with obtaining short-term
debt financing, the ineffective portion of fair value adjustments
on our interest rate derivatives designated as cash flow hedges,
and the noncontrolling interests related to these items. AFFO makes
certain adjustments to Core FFO. There is no industry standard
definition of AFFO and practice is divergent across the industry.
AFFO adjusts Core FFO to remove items such as equity-based
compensation expense and the amortization of deferred financing
costs incurred in connection with obtaining long-term debt
financing, and the noncontrolling interests related to these items.
We believe that the use of FFO, Core FFO and AFFO combined with the
required GAAP presentations improves the understanding of operating
results of Real Estate Investment Trusts ("REITs") among investors
and makes comparisons of operating results among such companies
more meaningful. While FFO, Core FFO and AFFO are relevant and
widely used measures of operating performance, they do not
represent cash flows from operations or net income (loss) as
defined by GAAP and should not be considered an alternative to
those measures in evaluating our liquidity or operating
performance. FFO, Core FFO and AFFO do not purport to be indicative
of cash available to fund our future cash requirements. Our
computation of FFO, Core FFO and AFFO may not be comparable to FFO,
Core FFO and AFFO reported by other REITs. See page 9 of this
presentation and our Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q for reconciliations of our non-GAAP financial
measures.
Revised 2019 Guidance Reconciliation
The following table reconciles our FFO, Core FFO and AFFO
guidance to our net income (the most directly comparable GAAP
financial measure) guidance for the year ended December 31, 2019 (in thousands, except per share
data):
|
|
For the Year
Ended December 31,
2019
|
|
|
|
Mid-Point
|
|
Net income
|
|
$
|
112,331
|
|
Depreciation and
amortization
|
|
|
60,464
|
|
Gain on sales of real
estate
|
|
|
(129,051)
|
|
Adjustment for
noncontrolling interests
|
|
|
(131)
|
|
FFO attributable
to common stockholders
|
|
|
43,613
|
|
FFO per share -
diluted (1)
|
|
$
|
1.80
|
|
|
|
|
|
|
Loss on
extinguishment of debt and modification costs
|
|
|
2,900
|
|
Casualty-related
recoveries
|
|
|
(8)
|
|
Adjustment for
noncontrolling interests
|
|
|
(9)
|
|
Core FFO
attributable to common stockholders
|
|
|
46,496
|
|
Core FFO per share
- diluted (1)
|
|
$
|
1.92
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
2,075
|
|
Equity-based
compensation expense
|
|
|
5,154
|
|
Adjustment for
noncontrolling interests
|
|
|
(22)
|
|
AFFO attributable
to common stockholders
|
|
|
53,703
|
|
AFFO per share -
diluted (1)
|
|
$
|
2.21
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
24,274
|
|
|
|
(1)
|
For purposes of
calculating per share data, we assume a weighted average diluted
share count of approximately 24.3 million for the full year
2019.
|
Contact:
Jackie
Graham
Investor Relations
972-628-4024
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SOURCE NexPoint Residential Trust, Inc.