DALLAS, March 31, 2020 /PRNewswire/ -- NexPoint
Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT)
previously announced that during the last two quarters, it issued
918,614 shares under the Company's ATM program at an average price
of $49.12 per share for gross
proceeds of $45.12 million.
Also, the Company announced today it has repurchased approximately
1.5 million shares of NXRT at an average price of $27.48 per share since the Company announced its
updated share repurchase program on March
13, 2020. NXRT's repurchases included shares subject
to the Highland Capital Management, L.P. ("HCM") bankruptcy
proceedings and shares that may be deemed to be beneficially owned
by James Dondero, NXRT's Chairman of
the Board and President. The repurchases also included shares
that were sold at the direction of financial counterparties in
accounts subject to margin calls amid the recent unprecedented
market dislocation. The Company believes sales of NXRT shares
by insiders are now complete and no further dispositions of NXRT
shares by insiders are contemplated for the remainder of the
year.
Dispositions of the Company's shares have been reported, as
applicable, on SEC Form 4 filings. In addition to the
disposition of shares subject to the HCM bankruptcy proceedings,
Mr. Dondero's March 31, 2020 Form 4
reports that going forward Mr. Dondero's Section 16 filings will no
longer include shares controlled by HCM that were previously deemed
to be beneficially owned by Mr. Dondero.
As previously announced, the Company has sold three properties
in 2020, for net proceeds of $43
million, which equates to an estimated blended nominal cap
rate of 5.0%. Management believes that the capital allocation
decisions made in 2020 have strengthened the Company's financial
position by creating permanent value by issuing shares at an
approximately 8.0% premium to our NAV as of December 31, 2019, and by repurchasing shares at
an approximately 45% discount to where the Company issued shares
under the ATM four weeks prior.
The Company's strong liquidity position, which has been
bolstered by the sale of three assets at pre-crisis pricing and the
issuance of equity near an all-time high share price, gives the
Company ample liquidity to fund share repurchases at highly
accretive levels and remain prepared to weather the COVID-19
crisis.
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
NexPoint Advisors, L.P., an SEC-registered investment advisor,
which has extensive real estate experience.
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," "believe," "intend," "prepared" and similar
expressions, and variations or negatives of these words. These
forward-looking statements include, but are not limited to,
statements regarding future dispositions of shares of Company
common stock by insiders and the Company's liquidity position going
forward. 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, including risks related
to the HCM bankruptcy proceedings and the COVID-19 crisis. 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,
2019 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.
Contact:
Jackie
Graham
Investor Relations
972-628-4024
JGraham@nexpointadvisors.com
Media Inquiries
MediaRelations@nexpointadvisors.com
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SOURCE NexPoint Residential Trust, Inc.