DALLAS, March 5,
2024 /PRNewswire/ -- NexPoint Residential Trust, Inc.
("NXRT" or the "Company") (NYSE: NXRT) announced today the closing
of the sale of Old Farm in Houston,
TX, a 734-unit property built in 1996. The property was
acquired for $84.7 million on
December 29, 2016 and has provided
consistent operational and cash flow performance for the portfolio
for the last 7+ years. As of March 1,
2024, the property was 91.41% leased with a weighted average
effective monthly rent of approximately $1,307. Net proceeds from the sale were
approximately $49.4M, delivering a
trailing nominal tax and insurance adjusted cap rate of 5.36%, a
22.14% levered internal rate of return and a 2.98x multiple on
invested capital, each of which well exceeded expectations. The
Company will use a portion of the net proceeds from the sale to
make a $24 million paydown on
the Company's corporate credit facility on March 5, 2024, continuing the Company's strategic
de-leveraging and balance sheet improvement initiatives. This
repayment will take the drawn balance on the facility to
$0, leaving $350 million of undrawn and available
capacity.
"NXRT is pleased to announce the closing of Old Farm, which
allows us to deliver a strong return on a 7-year investment,
creates almost $50 million of
liquidity for the Company and pays off our most expensive debt
capital, a long-stated goal. NXRT remains committed to unlocking
liquidity the Company can use to improve the balance sheet,
repurchase shares and/or pay off higher property-level debt that
will be accretive to future growth. We will seek to continue this
approach throughout 2024," said Matt
McGraner, Chief Investment Officer.
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 Statement 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 "should," "continue," "will," "seek" and similar
expressions, and variations or negatives of these words. These
forward-looking statements include, but are not limited to,
statements regarding the Company's strategic objectives, the
execution of the strategic objectives, the use of proceeds from the
sale of Old Farm to pay down the Company's corporate credit
facility, that NXRT is committed to unlocking liquidity which
the Company can use to improve the balance sheet, repurchase shares
and/or pay off higher property-level debt that will be accretive to
future growth and the Company will seek to continue this approach
in 2024. They 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 statements described in our filings with the
Securities and Exchange Commission, particularly those described in
our Annual Report on Form 10-K. Readers should not place undue
reliance on any forward-looking statements and are encouraged to
review the Company's most recent Annual Report on Form 10-K and
other filings with the SEC for a more complete discussion of the
risks and other factors that could affect any forward-looking
statements. The statements made herein speak only as of the date of
this release and except as required by law, NXRT does not undertake
any obligation to publicly update or revise any forward-looking
statements.
Contact:
Kristen Thomas
Investor Relations
IR@nexpoint.com
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SOURCE NexPoint Residential Trust, Inc.