Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 25, 2023

NEXPOINT RESIDENTIAL TRUST, INC.

(Exact Name Of Registrant As Specified In Charter)

Maryland

001-36663

47-1881359

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

300 Crescent Court, Suite 700

Dallas, Texas 75201

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (214) 276-6300

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange

on which registered

Common Stock, par value $0.01 per share

NXRT

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing. In a press release dated July 25, 2023, NexPoint Residential Trust, Inc. (the “Company”) announced financial results for the Company’s second quarter ended June 30, 2023. The full text of the press release is furnished herewith as Exhibit 99.1 to this report.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


Exhibit Number		Exhibit Description

99.1		Press Release dated July 25, 2023

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


NEXPOINT RESIDENTIAL TRUST, INC.

By:		/s/ Brian Mitts
		Name: Brian Mitts Title: Chief Financial Officer, Executive VP-Finance, Secretary and Treasurer

Date: July 25, 2023

Exhibit 99.1

25 July 2023 | NYSE: NXRT

EARNINGS SUPPLEMENT: SECOND QUARTER 2023

LOGO

NEXPOINT RESIDENTIAL TRUST, INC.

300 CRESCENT COURT, SUITE 700

DALLAS, TX 75201

INVESTOR RELATIONS:

KRISTEN THOMAS

NXRT.NEXPOINT.COM

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

TABLE OF CONTENTS


Earnings Release		1

Cautionary Statement Regarding Forward-Looking Statements		3
Overview		4

Highlights of Recent Activity		5
Financial Summary		6

2023 Full Year Guidance		7
Components of Net Asset Value		8

Consolidated Balance Sheets		9
Consolidated Statements of Operations		10

NOI and Same Store NOI		11
Q2 Same Store Results		12

Q2 Same Store Properties Operating Metrics		14
QoQ Same Store Properties Operating Metrics		15

YTD Same Store Results		16
FFO, Core FFO and AFFO		18

Historical Capital Expenditures		19
Value-Add Program Details		20

Outstanding Debt Details		23
Debt Maturity Schedule		26

Historical Acquisition Details		27
Historical Disposition Details		28

Definitions and Reconciliations of Non-GAAP Measures		29

LOGO

BLOOM APARTMENT HOMES: LAS VEGAS, NV

LOGO

CLUBHOUSE UPON ACQUISITION

LOGO

UPDATED CLUBHOUSE - POST RENOVATION

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

LOGO

FOR IMMEDIATE RELEASE

Contact:

Investor Relations

Kristen Thomas

IR@nexpoint.com

(214) 276-6300

Media inquiries: Pro-Nexpoint@prosek.com

NEXPOINT RESIDENTIAL TRUST, INC. REPORTS SECOND QUARTER 2023 RESULTS

NXRT Generates Strong Returns on Rehab Program and Tames Controllable Expense Growth

Dallas, TX, July 25, 2023 – NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the second quarter ended June 30, 2023.

Highlights

•

NXRT¹ reported Net Loss, FFO², Core FFO² and AFFO² of $(4.0)M, $19.8M, $20.4M and $23.2M, respectively, attributable to common stockholders for the quarter ended June 30, 2023, compared to Net Loss, FFO, Core FFO, and AFFO of $(7.8)M, $17.6M, $20.3M and $22.7M, respectively, attributable to common stockholders for the quarter ended June 30, 2022.

•

NXRT reported Net Loss, FFO, Core FFO and AFFO of $(7.8)M, $39.1M, $39.0M and $44.2M, respectively, attributable to common stockholders for the six months ended June 30, 2023, compared to Net Loss, FFO, Core FFO, and AFFO of $(12.5)M, $36.6M, $40.4M and $45.1M, respectively, attributable to common stockholders for the six months ended June 30, 2022.

•

For the three months ended June 30, 2023, Q2 Same Store properties³ average effective rent, total revenue and NOI² increased 7.9%, 7.4% and 7.6%, respectively, and occupancy decreased 60 bps over the prior year period.

•

For the six months ended June 30, 2023, YTD Same Store properties³ average effective rent, total revenue and NOI² increased 8.0%, 9.2% and 8.5%, respectively, and occupancy decreased 70 bps over the prior year period.

•

NXRT paid a second quarter dividend of $0.42 per share of common stock on June 30, 2023.

•

The weighted average effective monthly rent per unit across all 40 properties held as of June 30, 2023 (the “Portfolio”), consisting of 15,127⁴ units, was $1,497, while physical occupancy was 93.9%.

•

During the second quarter 2023, for the properties in our Portfolio, we completed 505 full and partial upgrades and leased 517 upgraded units, achieving an average monthly rent premium of $224 and a 20.9% ROI⁵.

•

Since inception, for the properties currently in our Portfolio, we have completed 8,736 full and partial upgrades, 5,091 kitchen and laundry appliances, and 10,753 technology packages, resulting in a $161, $49, and $45 average monthly rental increase per unit and a 21.0%, 66.8%, and 35.3% ROI, respectively.

1)	In this release, “we,” “us,” “our,” the “Company,” “NexPoint Residential Trust,” and “NXRT” each refer to NexPoint Residential Trust, Inc., a Maryland corporation.

FFO, Core FFO, AFFO and NOI are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of FFO, Core FFO, AFFO and NOI to net loss, see the “Definitions and Reconciliations of Non-GAAP Measures,” “FFO, Core FFO and AFFO” and “NOI and Same Store NOI” sections of this release.

We define “Same Store” properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 38 properties encompassing 14,112 units of apartment space in our Same Store pool for the three months ended June 30, 2023 (our “Q2 Same Store” properties) and 36 properties encompassing 13,550 units of apartment space in our Same Store pool for the six months ended June 30, 2023 (our “YTD Same Store” properties). The same store unit count excludes 91 units that are currently down due to casualty events (Rockledge: 20 units, Silverbrook: 16 units, Arbors of Brentwood: 16 units, Six Forks: 14 units, Versailles: 8 units, Bella Solara: 8 units, Versailles II: 7 units, and Parc500: 2 units).

4)	Total units owned in our Portfolio is 15,127, however 91 units are currently down due to casualty events (Rockledge: 20 units, Silverbrook: 16 units, Arbors of Brentwood: 16 units, Six Forks: 14 units, Versailles: 8 units, Bella Solara: 8 units, Versailles II: 7 units, and Parc500: 2 units).

5)	We define Return on Investment (“ROI”) as the sum of the actual rent premium divided by the sum of the total cost.


NXRT.NEXPOINT.COM		Page 1

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Second Quarter 2023 Financial Results

•

Total revenues were $69.6 million for the second quarter of 2023, compared to $65.8 million for the second quarter of 2022.

•

Net loss for the second quarter of 2023 totaled $(4.0) million, or loss of $(0.15) per diluted share, which included $23.9 million of depreciation and amortization expense. This compared to a net loss of $(7.8) million, or loss of $(0.30) per diluted share, for the second quarter of 2022, which included $25.5 million of depreciation and amortization expense.

•

The change in our net loss of $(4.0) million for the three months ended June 30, 2023 as compared to our net loss of $(7.8) million for the three months ended June 30, 2022 primarily relates to an increase in total revenues, partially offset by an increase in interest expense.

•

For the second quarter of 2023, NOI was $42.0 million on 40 properties, compared to $39.0 million for the second quarter of 2022 on 41 properties.

•

For the second quarter of 2023, Q2 Same Store NOI increased 7.6% to $39.7 million, compared to $36.9 million for the second quarter of 2022.

•

For the second quarter of 2023, FFO totaled $19.8 million, or $0.75 per diluted share, compared to $17.6 million, or $0.67 per diluted share, for the second quarter of 2022.

•

For the second quarter of 2023, Core FFO totaled $20.4 million, or $0.77 per diluted share, compared to $20.3 million, or $0.78 per diluted share, for the second quarter of 2022.

•

For the second quarter of 2023, AFFO totaled $23.2 million, or $0.88 per diluted share, compared to $22.7 million, or $0.87 per diluted share, for the second quarter of 2022.

2023 Year to Date Financial Results

•

Total revenues were $138.8 million for the six months ended June 30, 2023, compared to $126.6 million for the six months ended June 30, 2022.

•

Net loss for the six months ended June 30, 2023 totaled $(7.8) million, or loss of $(0.31) per diluted share, which included $47.1 million of depreciation and amortization expense. This compared to net loss of $(12.5) million, or loss of $(0.49) per diluted share, for the six months ended June 30, 2022, which included $49.3 million of depreciation and amortization expense.

•

The change in our net loss of $(7.8) million for the six months ended June 30, 2023 as compared to our net loss of $(12.5) million for the six months ended June 30, 2022 primarily relates to an increase in total revenues, partially offset by an increase in interest expense.

•

For the six months ended June 30, 2023, NOI was $83.1 million on 40 properties, compared to $75.6 million for the six months ended June 30, 2022 on 41 properties.

•

For the six months ended June 30, 2023, Same Store NOI increased 8.5% to $75.5 million, compared to $69.5 million for the six months ended June 30, 2022.

•

For the six months ended June 30, 2023, FFO totaled $39.1 million, or $1.49 per diluted share, compared to $36.6 million, or $1.40 per diluted share, for the six months ended June 30, 2022.

•

For the six months ended June 30, 2023, Core FFO totaled $39.0 million, or $1.49 per diluted share, compared to $40.4 million, or $1.54 per diluted share, for the six months ended June 30, 2022.

•

For the six months ended June 30, 2023, AFFO totaled $44.2 million, or $1.69 per diluted share, compared to $45.1 million, or $1.72 per diluted share, for the six months ended June 30, 2022.


NXRT.NEXPOINT.COM		Page 2

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Second Quarter Earnings Conference Call

NXRT will host a conference call on Tuesday, July 25, 2023, at 11:00 a.m. ET (10:00 am CT), to discuss second quarter financial results. The conference call can be accessed live over the phone by dialing 888-660-4430 or, for international callers, +1 646-960-0537 and using passcode Conference ID: 5001576. A live audio webcast of the call will be available online at the Company’s website, https://nxrt.nexpoint.com (under “Resources”). An online replay will be available shortly after the call on the Company’s website and continue to be available for 60 days.

A replay of the conference call will also be available through Tuesday, August 8, 2023, by dialing 800-770-2030 or, for international callers, +1 647-362-9199 and entering passcode 5001576.

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. Our filings with the Securities and Exchange Commission (the “SEC”) are available on our website, nxrt.nexpoint.com, under the “Financials” tab.

Cautionary Statement Regarding Forward-Looking Statements

This 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,” “anticipate,” “estimate,” “may,” “should,” “plan” and similar expressions and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding NXRT’s business and industry in general, NXRT’s guidance for financial results for the full year 2023, including earnings per diluted share, Core FFO per diluted share, same store rental income, same store total revenue, same store total expenses and same store NOI, interest expense, and the related components and assumptions, including expected acquisitions and dispositions, expected same store pool, shares outstanding and same store growth projections, NXRT’s net asset value and the related components and assumptions, including estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, net income and NOI guidance for the third quarter and full year 2023 and the related assumptions, planned value-add programs, including projected rent change and return on investment, expected settlement of interest rate swaps and the effect on the debt maturity schedule, rehab budgets and expected acquisitions and dispositions and related timing. 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 statement, including those described in greater detail 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.


NXRT.NEXPOINT.COM		Page 3

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC.: SECOND QUARTER 2023 OVERVIEW

Company Profile


(share counts in thousands)
Exchange/Ticker		NYSE: NXRT
Share Price (1)		$47.62
Insider Ownership		13.24%
2023 Q3 Dividend Per Share		$0.42
Dividend Yield (1)		3.53%
Shares Outstanding - basic (2)		25,667
Shares Outstanding - diluted (2)		26,304

(1)	As of the close of market trading on July 24, 2023.

(2)	Weighted average for the three months ended June 30, 2023.

Portfolio Composition by Market


Market	% of Units
Dallas/Fort Worth		17.1%
Phoenix		13.3%
South Florida		13.0%
Atlanta		11.2%
Nashville		8.8%
Orlando		7.8%
Las Vegas		7.7%
Charlotte		7.1%
Houston		6.1%
Raleigh		4.1%
Tampa		3.8%

Total		100.0%


Revenue & Average Rent Per Unit				Stock Price Performance (Since Inception; 4/1/2015)


NXRT.NEXPOINT.COM		Page 4

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Highlights of Recent Activity

NXRT Q2 2023 NEW LEASES & RENEWALS


By market
	Q2 Same Store Total Revenue Growth	Applications	% Increase	Renewals	% Increase
TPA	12.5%	96	-1.96%	69	4.34%
SFL	12.5%	182	8.59%	303	3.59%
ORL	11.2%	157	2.48%	138	4.78%
PHX	8.0%	293	-0.59%	254	2.24%
RDU	6.8%	77	7.77%	132	6.42%
NASH	6.4%	199	1.00%	215	2.72%
CHA	6.0%	139	3.29%	192	1.93%
LSV	5.8%	127	-5.13%	85	1.33%
DFW	5.0%	364	-2.35%	360	4.68%
ATL	0.0%	230	0.95%	227	3.99%

TOTAL	7.4%	1,864	0.84%	1,975	3.61%

FULL YEAR 2023 GUIDANCE VS PEERS



	Earnings per Share	SS Revenue	SS Expenses	SS NOI

Revised NXRT	$5.09	8.8%	7.0%	10.0%

AIRC	($0.12)	8.0%	5.8%	8.8%
CPT	$1.69	5.7%	6.9%	5.0%
CSR	$2.81	7.0%	5.5%	8.0%
EQR	$1.54	5.3%	4.5%	5.5%
ESS	$6.55	4.0%	5.0%	3.6%
IRT	$0.25	6.4%	6.1%	6.5%
MAA	$6.23	6.3%	6.2%	6.3%

Peer Average	$2.71	6.1%	5.7%	6.2%

(1)	Mid point of guidance, as reported in the first quarter 2023, except NXRT, which is reported herein.


Same Store Operating Expense Comparison by Year

Year	SS Unit	Opex /SS Unit	Annual Change

2016	7,682	$5,051	6.6%

2017	8,871	$5,240	3.7%

2018	10,123	$5,500	5.0%

2019	9,057	$5,816	5.7%

2020	9,074	$5,958	2.4%

2021	13,098	$6,528	9.6%

2022	12,210	$7,134	9.3%

2023 Annualized	14,112	$7,188	0.8%

CAGR			4.5%


NXRT.NEXPOINT.COM		Page 5

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Financial Summary


	Q2 2023			Q2 2022			YTD 2023			YTD 2022
(in thousands, except for per share and unit data)
Company Profile
Market Capitalization (as of the last day of the period)	$	1,168,000		$	1,603,000
Share Price (as of the last day of the period)	$	45.48		$	62.51
Weighted average common shares outstanding - basic		25,667			25,672			25,633			25,646
Weighted average common shares outstanding - diluted		25,667			25,672			25,633			25,646

Earnings Profile
Total revenues	$	69,569		$	65,766		$	138,796		$	126,552
Net loss attributable to common stockholders		(3,953	)		(7,797	)		(7,836	)		(12,450	)
NOI (1)		41,969			38,972			83,099			75,648
Same Store NOI (2)		39,669			36,862			75,459			69,541
Same Store NOI Growth (%) (2)		7.6	%					8.5	%

Earnings Metrics Per Common Share (diluted basis)
Earnings	$	(0.15	)	$	(0.30	)	$	(0.31	)	$	(0.49	)
FFO (1)	$	0.75		$	0.67		$	1.49		$	1.40
Core FFO (1)	$	0.77		$	0.78		$	1.49		$	1.54
AFFO (1)	$	0.88		$	0.87		$	1.69		$	1.72
Dividends declared per common share	$	0.42		$	0.38		$	0.84		$	0.76
Net Income (Loss) Coverage (3)		-0.36x			-0.79x			-0.37x			-0.64x
FFO Coverage (3)		1.79x			1.77x			1.77x			1.84x
Core FFO Coverage (3)		1.84x			2.04x			1.77x			2.03x
AFFO Coverage (3)		2.10x			2.28x			2.01x			2.26x

Portfolio
Total Properties		40			41
Total Units (4)		15,127			15,387
Occupancy		93.9	%		94.5	%
Average Effective Monthly Rent per Unit	$	1,497		$	1,387

Same Store Portfolio Metrics (2)
Total Same Store Properties		38			38			36			36
Total Same Store Units		14,112			14,136			13,550			13,574
Occupancy		93.8	%		94.4	%		93.7	%		94.4	%
Average Effective Monthly Rent per Unit	$	1,510		$	1,399		$	1,504		$	1,393

Value-Add Program
Completed Rehab Units		667			650			1,357			1,181
Cumulative Completed Rehab Units (5)		8,736
Average Increase to Effective Monthly Rent per Unit (Post-Rehab)	$	161
ROI on Post-Rehab Units		21.0	%

Outstanding Debt Summary
Total Mortgage Debt	$	1,621,563		$	1,358,675
Credit Facilities		57,000			335,000

Total Debt Outstanding	$	1,678,563		$	1,693,675

Leverage Ratio (Total Debt to Market Capitalization plus Total Debt)		37	%		34	%
Leverage Ratio (Net Debt to Enterprise Value) (6)		59	%		51	%

(1)	For more information and reconciliations of NOI, FFO, Core FFO and AFFO, see the “FFO, Core FFO and AFFO,” “NOI and Same Store NOI” and “Definitions and Reconciliations of Non-GAAP Measures” sections of this release.

(2)	We define “Same Store” properties as properties that were in our Portfolio for the entirety of the periods being compared. For additional information regarding our Q2 and YTD Same Store properties, see the “Q2 Same Store Results” and “YTD Same Store Results” section of this release.

(3)	Indicates coverage ratio of Net Income (Loss)/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. The Company uses actual diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO.

(4)	Total units owned is 15,127, however 91 units are currently excluded due to fire and water damage.

(5)	Inclusive of all full and partial interior upgrades completed through. Cumulative results exclude rehabs completed for properties sold through June 30, 2023.

(6)	For more information and a reconciliation of debt to net debt, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.


NXRT.NEXPOINT.COM		Page 6

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

2023 Full Year Guidance Summary

NXRT is revising guidance ranges for earnings per diluted share, Core FFO per diluted share, Same Store rental income, Same Store total revenue, Same Store total expenses, Same Store NOI, interest expense and its related components, Acquisitions and Dispositions as follows (dollars in millions, except per share amounts):


	Guidance Range (1)
	Low-End			Mid-Point			High-End			Prior Mid-Point
Earnings per diluted share (2)	$	5.01		$	5.09		$	5.16		$	1.00
Core FFO per diluted share (2) (3)	$	2.90		$	2.98		$	3.05		$	3.06

Same Store Growth: (4)
Rental Income		8.3	%		8.9	%		9.4	%		11.3	%
Total Revenue		8.3	%		8.8	%		9.4	%		10.8	%
Total Expenses (5)		7.3	%		7.0	%		6.8	%		10.6	%
Same Store NOI (3)		9.0	%		10.0	%		11.0	%		11.0	%

Components to Interest Expense:
Interest Expense on Mortgage Debt	$	(105.4	)	$	(107.1	)	$	(108.8	)	$	(102.6	)
Interest Expense on Revolver	$	(4.9	)	$	(5.0	)	$	(5.1	)	$	(2.5	)
Deferred Financing Cost & Discount Amortization	$	(2.6	)	$	(2.6	)	$	(2.6	)	$	(3.0	)
Interest Rate Swap Settlement	$	46.2		$	47.5		$	48.7		$	45.8
Mark to Market – Fair Value of Rate Caps	$	(1.4	)	$	(0.5	)	$	0.5		$	(1.9	)

Total Interest Expense	$	(68.2	)	$	(67.7	)	$	(67.3	)	$	(64.2	)


Other Considerations: (5)
Acquisitions	$	—		$	75.0		$	150.0		$	125.0
Dispositions	$	—		$	175.0		$	350.0		$	125.0

(1)

Full Year 2023 guidance forecast includes Same Store growth projections presented above, which takes into effect the sale of the held for sale properties of Old Farm and Stone Creek at Old Farm, as well as the forecasted dispositions of Timber Creek, Radbourne Lake and Silverbrook, thereby removing those assets from the Full Year 2023 expected Same Store pool.

(2)	Weighted average diluted share count estimate for full year 2023 is approximately 26.2 million.

(3)

Same Store NOI and Core FFO are non-GAAP measures. For reconciliations of Full Year 2023 Same Store NOI and Core FFO guidance to net income guidance and a discussion of why we consider these non-GAAP measures useful, see the “Definitions and Reconciliations of Non-GAAP Measures” section of this release.

(4)	Year-over-year growth for the Full Year 2023 expected Same Store pool (33 properties).

(5)

We continue to evaluate our Portfolio for capital recycling opportunities. Transaction volumes presented are incorporated into the earnings per share and Core FFO guidance above. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions, except as required by law.

Additional information on 2023 financial and earnings guidance is included in the following sections of this release.


NXRT.NEXPOINT.COM		Page 7

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Components of Net Asset Value

(dollar and share amounts in thousands, except per share and per unit data)


REAL ESTATE BY MARKET VALUE		NAV SUMMARY


Property Market	NOI Contribution	Cap Rate Range (1)		Value Range (2)
Property Market	NOI Contribution	Min	Max	Min		Max

Texas
Dallas/Fort Worth	12.3%	5.0%	5.3%	$	399,057	$	426,714
Houston	4.5%	5.5%	5.7%		135,233		141,190

North Carolina
Raleigh	3.7%	5.0%	5.3%		118,802		127,036
Charlotte	6.5%	5.0%	5.3%		211,007		225,631

Georgia
Atlanta	8.1%	5.0%	5.3%		261,855		280,003

Tennessee
Nashville	10.9%	5.0%	5.3%		355,920		380,587

Florida
Orlando	7.7%	5.0%	5.3%		251,264		268,678
Tampa	4.2%	5.0%	5.3%		136,276		145,721
South Florida	17.6%	5.0%	5.3%		571,649		611,267

Nevada
Las Vegas	8.6%	5.0%	5.3%		278,609		297,918

Arizona
Phoenix	16.0%	5.0%	5.3%		520,132		556,180

Total / Ave	100.0%	5.0%	5.3%	$	3,239,794	$	3,460,925


Component	Min		Max
Tangible Assets
Real Estate (2)	$	3,239,794	$	3,460,925

Cash		10,056
Restricted Cash - Renovation Reserves (4)		4,014
Renovation Expenditures (4)		(4,014)
Cash Adjustments (5)		(281)
Fair Market Value of Interest Rate Swaps		99,364
Other Assets		60,549

Value of Assets	$	3,409,482	$	3,630,613


Tangible Liabilities
Credit Facility (6)		$57,000
Mortgage Debt		1,621,563

Total Outstanding Debt		1,678,563
Forward 12-month Principal Payments (5)		(281)

Total Outstanding Debt (FY 2023 Est.)		1,678,282
Other Tangible Liabilities (at Book)		46,291

Value of Liabilities		$1,724,573

Net Leverage (mid-point)		49%

Net Asset Value	$	1,684,909	$	1,906,040

Shares outstanding - diluted (FY 2023 Est.)		26,300

Est. NAV / Share	$	64.06	$	72.47

NAV / Share (mid-point)		$68.27


NOI ESTIMATE		IMPLIED VAUE VALUATION METRICS


Q1 2023 NOI Actual (3)		41,130					Min		Max
Q2 2023 NOI Actual (3)		41,969			Implied Real Estate Value	$	3,239,794	$	3,460,925

		Low		High	No. of Units (June 30, 2023) (2)		15,127

Estimated Q3 2023 NOI Guidance (3)	$	42,915	$	44,540	Implied Value/Apartment Unit	$	214.2	$	228.8


2023 NAV NOI Guidance (3)	$	170,671	$	173,809	Implied Value/Apartment Unit (mid-point)		$221.5

(1)	Management estimates based on independent third-party review of our properties.

(2)	Estimated value ranges are presented for the existing portfolio (40 properties as of June 30, 2023).

(3)

The Company anticipates net income (loss) will be in the range between approximately $131.5 million and $135.5 million for the full year 2023 and between $(8.7) million and $(6.5) million for the third quarter of 2023. Net income (loss) for the first and second quarters of 2023 was approximately $(3.9) million and $(4.0) million, respectively. FY 2023 NOI Guidance considers the forecast dispositions of Old Farm, Stone Creek at Old Farm, Timber Creek, Radbourne Lake and Silverbrook, and considers a commensurate volume of capital recycling.

(4)	Includes approximately $4.0 million that is held for value-add upgrades; reduced by $4.0 million for estimated 2023 rehab expenditures.

(5)	Includes approximately $0.3 million in forward 12-month principal payments.

(6)	Includes outstanding balance as of June 30, 2023.


NXRT.NEXPOINT.COM		Page 8

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)


	June 30, 2023			December 31, 2022
	(Unaudited)
ASSETS
Operating Real Estate Investments
Land	$	378,412		$	378,438
Buildings and improvements		1,773,090			1,760,782
Construction in progress		15,446			10,622
Furniture, fixtures, and equipment		172,518			152,529

Total Gross Operating Real Estate Investments		2,339,466			2,302,371
Accumulated depreciation and amortization		(396,250	)		(349,276	)

Total Net Operating Real Estate Investments		1,943,216			1,953,095
Real estate held for sale, net of accumulated depreciation of $22,017 and $22,017, respectively		90,065			89,457

Total Net Real Estate Investments		2,033,281			2,042,552
Cash and cash equivalents		10,056			16,762
Restricted cash		32,921			35,037
Accounts receivable, net		15,506			17,121
Prepaid and other assets		16,136			10,425
Fair value of interest rate swaps		99,364			103,440

TOTAL ASSETS	$	2,207,264		$	2,225,337


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgages payable, net	$	1,542,781		$	1,526,828
Mortgages payable held for sale, net		68,064			68,016
Credit facility, net		55,694			72,644
Accounts payable and other accrued liabilities		15,457			12,325
Accrued real estate taxes payable		15,993			7,232
Accrued interest payable		9,478			7,946
Security deposit liability		3,242			3,200
Prepaid rents		2,121			1,849

Total Liabilities		1,712,830			1,700,040

Redeemable noncontrolling interests in the Operating Partnership		6,190			5,631

Stockholders’ Equity:
Preferred stock, $0.01 par value: 100,000,000 shares authorized; 0 shares issued		—			—
Common stock, $0.01 par value: 500,000,000 shares authorized; 25,674,313 and 25,549,319 shares issued and outstanding, respectively		256			255
Additional paid-in capital		408,119			405,376
Accumulated earnings (loss) less dividends		(18,225	)		11,880
Accumulated other comprehensive income		98,094			102,155

Total Stockholders’ Equity		488,244			519,666

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,207,264		$	2,225,337


NXRT.NEXPOINT.COM		Page 9

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

(Unaudited)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Revenues
Rental income	$	67,810		$	64,152		$	135,347		$	123,449
Other income		1,759			1,614			3,449			3,103

Total revenues		69,569			65,766			138,796			126,552

Expenses
Property operating expenses		15,492			16,703			28,758			30,299
Real estate taxes and insurance		9,334			9,531			19,354			18,251
Property management fees (1)		2,031			1,912			4,058			3,669
Advisory and administrative fees (2)		1,927			1,868			3,816			3,711
Corporate general and administrative expenses		4,624			3,812			7,991			7,298
Property general and administrative expenses		2,242			2,193			4,512			4,199
Depreciation and amortization		23,872			25,548			47,138			49,266

Total expenses		59,522			61,567			115,627			116,693

Operating income		10,047			4,199			23,169			9,859
Interest expense		(14,524	)		(12,402	)		(31,263	)		(23,038	)
Gain on extinguishment of debt and modification costs		—			—			122			—
Casualty gains (loss)		(66	)		229			(880	)		357
Gain on forfeited deposits		250			—			250			—
Miscellaneous income		325			147			736			328

Net loss		(3,968	)		(7,827	)		(7,866	)		(12,494	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(15	)		(30	)		(30	)		(44	)

Net loss attributable to common stockholders	$	(3,953	)	$	(7,797	)	$	(7,836	)	$	(12,450	)

Other comprehensive income (loss)
Unrealized gains (losses) on interest rate derivatives		13,130			17,357			(4,076	)		71,936

Total comprehensive income (loss)		9,162			9,530			(11,942	)		59,442
Comprehensive income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership		35			37			(45	)		187

Comprehensive income (loss) attributable to common stockholders	$	9,127		$	9,493		$	(11,897	)	$	59,255


Weighted average common shares outstanding - basic		25,667			25,672			25,633			25,646

Weighted average common shares outstanding - diluted		25,667			25,672			25,633			25,646


Loss per share - basic	$	(0.15	)	$	(0.30	)	$	(0.31	)	$	(0.49	)

Loss per share - diluted	$	(0.15	)	$	(0.30	)	$	(0.31	)	$	(0.49	)

(1)	Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Operating Partnership (the “OP”).

(2)	Fees incurred to the Company’s adviser.


NXRT.NEXPOINT.COM		Page 10

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NOI and Same Store NOI

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Same Store NOI for the three and six months ended June 30, 2023 and 2022 to net loss, the most directly comparable GAAP financial measure (in thousands):


			For the Three Months Ended June 30,						For the Six Months Ended June 30,
			2023			2022			2023			2022
Net loss			$	(3,968	)	$	(7,827	)	$	(7,866	)	$	(12,494	)
Adjustments to reconcile net loss to NOI:
Advisory and administrative fees				1,927			1,868			3,816			3,711
Corporate general and administrative expenses				4,624			3,812			7,991			7,298
Casualty-related expenses/(recoveries)	(1	)		398			2,592			(1,308	)		3,643
Casualty loss (gain)				66			(229	)		880			(357	)
Gain on forfeited deposits				(250	)		—			(250	)		—
Property general and administrative expenses	(2	)		776			806			1,557			1,543
Depreciation and amortization				23,872			25,548			47,138			49,266
Interest expense				14,524			12,402			31,263			23,038
Gain on extinguishment of debt and modification costs				—			—			(122	)		—

NOI			$	41,969		$	38,972		$	83,099		$	75,648

Less Non-Same Store
Revenues				(3,850	)		(4,558	)		(13,351	)		(11,665	)
Operating expenses				1,550			2,448			5,711			5,611
Operating income				—			—			—			(53	)

Same Store NOI			$	39,669		$	36,862		$	75,459		$	69,541

(1)	Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

(2)	Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.


NXRT.NEXPOINT.COM		Page 11

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Q2 Same Store Results of Operations for the Three Months Ended June 30, 2023 and 2022

There are 38 properties encompassing 14,112 units of apartment space, or approximately 93% of our Portfolio, in our same store pool for the three months ended June 30, 2023 and 2022 (our “Q2 Same Store” properties). Our Q2 Same Store properties exclude the following 2 properties in our Portfolio as of June 30, 2023: Old Farm and Stone Creek, as well as the 91 units mentioned on page 2 that are currently down.

As of June 30, 2023, our Q2 Same Store properties were approximately 93.8% leased with a weighted average monthly effective rent per occupied apartment unit of $1,510, a year-over-year decrease of 60 bps and an increase of $111, respectively.

The following table reflects the revenues, property operating expenses and NOI for the three months ended June 30, 2023 and 2022 for our Q2 Same Store and Non-Same Store properties (dollars in thousands):


	For the Three Months Ended June 30,
	2023		2022		$ Change			% Change
Revenues
Same Store
Rental income	$	64,148	$	59,638	$	4,510			7.6	%
Other income		1,571		1,570		1			0.1	%

Same Store revenues		65,719		61,208		4,511			7.4	%
Non-Same Store
Rental income		3,662		4,514		(852	)		-18.9	%
Other income		188		44		144			N/M

Non-Same Store revenues		3,850		4,558		(708	)		-15.5	%

Total revenues		69,569		65,766		3,803			5.8	%


Operating expenses
Same Store
Property operating expenses (1)		14,033		13,021		1,012			7.8	%
Real estate taxes and insurance		9,049		8,430		619			7.3	%
Property management fees (2)		1,914		1,778		136			7.6	%
Property general and administrative expenses (3)		1,379		1,264		115			9.1	%

Same Store operating expenses		26,375		24,493		1,882			7.7	%
Non-Same Store
Property operating expenses (4)		1,061		1,091		(30	)		-2.7	%
Real estate taxes and insurance		285		1,101		(816	)		N/M
Property management fees (2)		117		134		(17	)		-12.7	%
Property general and administrative expenses (5)		87		122		(35	)		-28.7	%

Non-Same Store operating expenses		1,550		2,448		(898	)		-36.7	%

Total operating expenses		27,925		26,941		984			3.7	%


Operating income
Same Store
Miscellaneous income		325		147		178			N/M
Non-Same Store
Miscellaneous income		—		—		—			0.0	%

Total operating income		325		147		178			121.1	%


NOI
Same Store		39,669		36,862		2,807			7.6	%
Non-Same Store		2,300		2,110		190			9.0	%

Total NOI (6)	$	41,969	$	38,972	$	2,997			7.7	%

(1)	For the three months ended June 30, 2023 and 2022, excludes approximately $292,000 and $54,000, respectively, of casualty-related expenses.

(2)	Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.

(3)

For the three months ended June 30, 2023 and 2022, excludes approximately $747,000 and $732,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

(4)	For the three months ended June 30, 2023 and 2022, excludes approximately $106,000 and $2,538,000, respectively, of casualty-related expenses.


NXRT.NEXPOINT.COM		Page 12

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

(5)

For the three months ended June 30, 2023 and 2022, excludes approximately $29,000 and $75,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

(6)	For additional information regarding NOI, see the “Definitions and Reconciliations of Non-GAAP Measures” and “NOI and Same Store NOI” sections of this release.

The following table contains additional information about our Q2 Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the three months ended June 30, 2023 and 2022 (dollars in thousands, except for per unit data):


	Q2 2023			Q2 2022			% Change
Same Store Total Units		14,112			14,136
Same Store Occupied Units		13,243			13,350
Same Store Ending Occupancy		93.8	%		94.4	%		-0.6	%
Same Store Average Rent per Unit	$	1,510		$	1,399			7.9	%

Same Store Revenues
Same Store Rental Income	$	64,148		$	59,638			7.6	%
Same Store Other Income		1,571			1,570			0.1	%

Total Same Store Revenues		65,719			61,208			7.4	%

Same Store Operating Expenses
Payroll		5,397			5,048			6.9	%
Repairs & Maintenance		5,791			5,264			10.0	%
Utilities		2,845			2,709			5.0	%
Real Estate Taxes		7,542			6,977			8.1	%
Insurance		1,507			1,453			3.7	%
Property Management Fees		1,914			1,778			7.6	%
Office Operations		979			882			11.0	%
Marketing		400			382			4.7	%

Total Same Store Operating Expenses		26,375			24,493			7.7	%

Same Store Operating Income
Miscellaneous income		325			147			121.1	%

Total Same Store Operating Income		325			147			121.1	%


Q2 Same Store NOI	$	39,669		$	36,862			7.6	%


NXRT.NEXPOINT.COM		Page 13

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Q2 Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)


Properties by Market (1)	Unit Count		Average Effective Rent					Occupancy							Total Rental Income

	Total		Q2 2023		Q2 2022		% Change	Q2 2023			Q2 2022			bps Δ	Q2 2023		Q2 2022		% Change
Texas
Dallas		2,556		$1,263		$1,183	6.8%		92.6	%		93.8	%	-120		$9,953		$9,423	5.6%
Average/Total		2,556		1,263		1,183	6.8%		92.6	%		93.8	%	-120		9,953		9,423	5.6%

North Carolina
Charlotte		1,081		1,338		1,273	5.1%		93.9	%		95.3	%	-140		4,222		4,013	5.2%
Raleigh/Durham		611		1,457		1,373	6.1%		93.3	%		93.5	%	-20		2,625		2,444	7.4%
Average/Total		1,692		1,381		1,310	5.4%		93.7	%		94.7	%	-98		6,847		6,457	6.0%

Georgia
Atlanta		1,672		1,524		1,423	7.1%		91.1	%		94.5	%	-340		7,021		7,031	-0.1%
Average/Total		1,672		1,524		1,423	7.1%		91.1	%		94.5	%	-340		7,021		7,031	-0.1%

Tennessee
Nashville		1,322		1,334		1,215	9.8%		94.0	%		96.7	%	-270		5,547		5,209	6.5%
Average/Total		1,322		1,334		1,215	9.8%		94.0	%		96.7	%	-270		5,547		5,209	6.5%

Florida
Orlando		1,172		1,615		1,448	11.5%		93.8	%		95.6	%	-180		5,659		5,096	11.0%
Tampa		576		1,464		1,297	12.9%		92.7	%		95.0	%	-230		2,528		2,253	12.2%
South Florida		1,957		2,058		1,842	11.7%		96.8	%		96.0	%	80		12,364		10,959	12.8%
Average/Total		3,705		1,826		1,633	11.8%		95.2	%		95.7	%	-50		20,551		18,308	12.3%

Arizona
Phoenix		2,009		1,495		1,419	5.4%		95.6	%		92.7	%	290		9,534		8,816	8.1%
Average/Total		2,009		1,495		1,419	5.4%		95.6	%		92.7	%	290		9,534		8,816	8.1%

Nevada
Las Vegas		1,156		1,400		1,390	0.7%		93.2	%		91.8	%	140		4,695		4,394	6.9%
Average/Total		1,156		1,400		1,390	0.7%		93.2	%		91.8	%	140		4,695		4,394	6.9%

Average/Total		14,112		$1,510		$1,399	7.9%		93.8	%		94.4	%	-60		$64,148		$59,638	7.6%

(1)	This table only includes the 38 properties in our Q2 Same Store pool.


NXRT.NEXPOINT.COM		Page 14

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

QoQ Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)


Properties by Market (1)	Unit Count		Average Effective Rent					Occupancy							Total Rental Income

	Total		Q2 2023		Q1 2023		% Change	Q2 2023			Q1 2023			bps Δ	Q2 2023		Q1 2023		% Change
Texas
Dallas		2,556		$1,263		$1,271	-0.6%		92.6	%		93.1	%	-50		$9,953		$9,966	-0.1%
Average/Total		2,556		1,263		1,271	-0.6%		92.6	%		93.1	%	-50		9,953		9,966	-0.1%

North Carolina
Charlotte		1,081		1,338		1,352	-1.0%		93.9	%		92.0	%	190		4,222		4,257	-0.8%
Raleigh/Durham		611		1,457		1,420	2.6%		93.3	%		94.9	%	-160		2,625		2,576	1.9%
Average/Total		1,692		1,381		1,377	0.3%		93.7	%		93.1	%	59		6,847		6,833	0.2%

Georgia
Atlanta		1,672		1,524		1,516	0.5%		91.1	%		92.4	%	-130		7,021		7,362	-4.6%
Average/Total		1,672		1,524		1,516	0.5%		91.1	%		92.4	%	-130		7,021		7,362	-4.6%

Tennessee
Nashville		1,322		1,334		1,329	0.4%		94.0	%		94.2	%	-20		5,547		5,587	-0.7%
Average/Total		1,322		1,334		1,329	0.4%		94.0	%		94.2	%	-20		5,547		5,587	-0.7%

Florida
Orlando		1,172		1,615		1,578	2.3%		93.8	%		94.9	%	-110		5,659		5,422	4.4%
Tampa		576		1,464		1,430	2.4%		92.7	%		95.5	%	-280		2,528		2,530	-0.1%
South Florida		1,957		2,058		2,013	2.2%		96.8	%		95.4	%	140		12,364		12,009	3.0%
Average/Total		3,705		1,826		1,785	2.3%		95.2	%		95.2	%	0		20,551		19,961	3.0%

Arizona
Phoenix		2,009		1,495		1,488	0.5%		95.6	%		95.3	%	30		9,534		9,529	0.1%
Average/Total		2,009		1,495		1,488	0.5%		95.6	%		95.3	%	30		9,534		9,529	0.1%

Nevada
Las Vegas		1,156		1,400		1,430	-2.1%		93.2	%		93.5	%	-30		4,695		4,693	0.0%
Average/Total		1,156		1,400		1,430	-2.1%		93.2	%		93.5	%	-30		4,695		4,693	0.0%

Average/Total		14,112		$1,510		$1,499	0.7%		93.8	%		93.9	%	-10		$64,148		$63,931	0.3%

(1)	This table only includes the 38 properties in our Q2 Same Store pool.


NXRT.NEXPOINT.COM		Page 15

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

YTD Same Store Results of Operations for the Six Months Ended June 30, 2023 and 2022

There are 36 properties encompassing 13,550 units of apartment space, or approximately 90% of our Portfolio, in our same store pool for the six months ended June 30, 2023 and 2022 (our “YTD Same Store” properties). Our YTD Same Store properties exclude the following 4 properties in our Portfolio as of June 30, 2023: Old Farm, Stone Creek, The Adair and Estates on Maryland, as well as the 91 units mentioned on page 2 that are currently down.

As of June 30, 2023, our YTD Same Store properties were approximately 93.7% leased with a weighted average monthly effective rent per occupied apartment unit of $1,504, a year-over-year decrease of 70 bps and an increase of $111, respectively.

The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2023 and 2022 for our YTD Same Store and Non-Same Store properties (dollars in thousands):


	For the Six Months Ended June 30,
	2023		2022		$ Change			% Change
Revenues
Same Store
Rental income	$	122,412	$	111,933	$	10,479			9.4	%
Other income		3,033		2,954		79			2.7	%

Same Store revenues		125,445		114,887		10,558			9.2	%
Non-Same Store
Rental income		12,935		11,516		1,419			12.3	%
Other income		416		149		267			N/M

Non-Same Store revenues		13,351		11,665		1,686			14.5	%

Total revenues		138,796		126,552		12,244			9.7	%


Operating expenses
Same Store
Property operating expenses (1)		26,892		24,162		2,730			11.3	%
Real estate taxes and insurance		17,524		15,764		1,760			11.2	%
Property management fees (2)		3,660		3,331		329			9.9	%
Property general and administrative expenses (3)		2,646		2,364		282			11.9	%

Same Store operating expenses		50,722		45,621		5,101			11.2	%
Non-Same Store
Property operating expenses (4)		3,174		2,495		679			27.2	%
Real estate taxes and insurance		1,830		2,487		(657	)		-26.4	%
Property management fees (2)		398		338		60			17.8	%
Property general and administrative expenses (5)		309		291		18			6.2	%

Non-Same Store operating expenses		5,711		5,611		100			1.8	%

Total operating expenses		56,433		51,232		5,201			10.2	%


Operating income
Same Store
Miscellaneous income		736		275		461			N/M
Non-Same Store
Miscellaneous income		-		53		(53	)		N/M

Total operating income		736		328		408			124.4	%


NOI
Same Store		75,459		69,541		5,918			8.5	%
Non-Same Store		7,640		6,107		1,533			25.1	%

Total NOI (6)	$	83,099	$	75,648	$	7,451			9.8	%

(1)	For the six months ended June 30, 2023 and 2022, excludes approximately $1,420,000 and $1,508,000, respectively, of casualty-related recoveries.

(2)	Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.


NXRT.NEXPOINT.COM		Page 16

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

(3)

For the six months ended June 30, 2023 and 2022, excludes approximately $1,357,000 and $1,358,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

(4)	For the six months ended June 30, 2023 and 2022, excludes approximately $112,000 and $149,000, respectively, of casualty-related expenses.

(5)

For the six months ended June 30, 2023 and 2022, excludes approximately $200,000 and $185,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

(6)	For additional information regarding NOI, see the “Definitions and Reconciliations of Non-GAAP Measures” and “NOI and Same Store NOI” sections of this release.

The following table contains additional information about our YTD Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the six months ended June 30, 2023 and 2022 (dollars in thousands, except for per unit data):


	YTD 2023			YTD 2022			% Change
Same Store Total Units		13,550			13,574
Same Store Occupied Units		12,703			12,818
Same Store Ending Occupancy		93.7	%		94.4	%		-0.7	%
Same Store Average Rent per Unit	$	1,504		$	1,393			8.0	%

Same Store Revenues
Same Store Rental Income	$	122,412		$	111,933			9.4	%
Same Store Other Income		3,033			2,954			2.7	%

Total Same Store Revenues		125,445			114,887			9.2	%

Same Store Operating Expenses
Payroll		10,522			9,504			10.7	%
Repairs & Maintenance		10,917			9,437			15.7	%
Utilities		5,453			5,221			4.4	%
Real Estate Taxes		14,653			13,083			12.0	%
Insurance		2,871			2,681			7.1	%
Property Management Fees		3,660			3,331			9.9	%
Office Operations		1,898			1,643			15.5	%
Marketing		748			721			3.7	%

Total Same Store Operating Expenses		50,722			45,621			11.2	%

Same Store Operating Income
Miscellaneous income		736			275			167.6	%

Total Same Store Operating Income		736			275			167.6	%


YTD Same Store NOI	$	75,459		$	69,541			8.5	%


NXRT.NEXPOINT.COM		Page 17

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

FFO, Core FFO and AFFO

The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share amounts):


			For the Three Months Ended June 30,						For the Six Months Ended June 30,
			2023			2022			2023			2022			% Change (1)
Net loss			$	(3,968	)	$	(7,827	)	$	(7,866	)	$	(12,494	)		-37.0	%
Depreciation and amortization				23,872			25,548			47,138			49,266			-4.3	%
Adjustment for noncontrolling interests				(76	)		(72	)		(149	)		(129	)		15.5	%

FFO attributable to common stockholders				19,828			17,649			39,123			36,643			6.8	%


FFO per share - basic			$	0.77		$	0.69		$	1.53		$	1.43			7.0	%

FFO per share - diluted			$	0.75		$	0.67		$	1.49		$	1.40			6.4	%


Gain on extinguishment of debt and modification costs				—			—			(122	)		—			0.0	%
Casualty-related expenses/(recoveries)				398			2,592			(1,308	)		3,643			N/M
Casualty losses (gains)				66			(229	)		880			(357	)		N/M
Gain on forfeited deposits				(250	)		—			(250	)		—			0.0	%
Amortization of deferred financing costs - acquisition term notes				331			326			661			505			30.9	%
Adjustment for noncontrolling interests				(3	)		(10	)		(1	)		(14	)		N/M

Core FFO attributable to common stockholders				20,370			20,328			38,983			40,420			-3.6	%


Core FFO per share - basic			$	0.79		$	0.79		$	1.52		$	1.58			-3.8	%

Core FFO per share - diluted			$	0.77		$	0.78		$	1.49		$	1.54			-3.2	%


Amortization of deferred financing costs - long term debt				377			408			814			794			2.5	%
Equity-based compensation expense				2,495			2,005			4,461			3,881			14.9	%
Adjustment for noncontrolling interests				(10	)		(11	)		(20	)		(17	)		17.6	%

AFFO attributable to common stockholders				23,232			22,730			44,238			45,078			-1.9	%


AFFO per share - basic			$	0.91		$	0.89		$	1.73		$	1.76			-1.7	%

AFFO per share - diluted			$	0.88		$	0.87		$	1.69		$	1.72			-1.7	%


Weighted average common shares outstanding - basic				25,667			25,672			25,633			25,646			-0.1	%

Weighted average common shares outstanding - diluted	(2	)		26,304			26,211			26,190			26,202			0.0	%


Dividends declared per common share			$	0.42		$	0.38		$	0.84		$	0.76			10.5	%

Net loss Coverage - diluted	(3	)		-0.36x			-0.79x			-0.37x			-0.64x			-42.76	%
FFO Coverage - diluted	(3	)		1.79x			1.77x			1.77x			1.84x			-3.71	%
Core FFO Coverage - diluted	(3	)		1.84x			2.04x			1.77x			2.03x			-12.46	%
AFFO Coverage - diluted	(3	)		2.10x			2.28x			2.01x			2.26x			-11.10	%

(1)	Represents the percentage change for the six months ended June 30, 2023 compared to the six months ended June 30, 2022.

(2)	The Company uses actual diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO.

(3)	Indicates coverage ratio of Net Income (Loss)/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.


NXRT.NEXPOINT.COM		Page 18

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Capital Expenditures


	Q2 2023		Q2 2022		% Change			YTD 2023		YTD 2022		% Change
($ in thousands)
Capital Expenditures
Acquisition Capital Expenditures	$	—	$	143,400		-100.0	%	$	—	$	143,400		-100.0	%

Capitalized Rehab Expenditures
Interior		7,344		5,924		24.0	%		14,652		10,638		37.7	%
Exterior and common area		4,578		2,437		87.8	%		8,585		3,355		155.9	%

Capitalized Maintenance Expenditures
Recurring		3,540		2,993		18.3	%		6,220		5,036		23.5	%
Non-Recurring		3,418		2,166		57.8	%		5,712		3,366		69.7	%


Total Capital Expenditures	$	18,880	$	156,920		-88.0	%	$	35,169	$	165,794		-78.8	%

LOGO


NXRT.NEXPOINT.COM		Page 19

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Interiors (Full & Partials)


Property Name (1)	Units		Rehab Units Completed (2)		Average Rent Pre-Rehab		Average Rent Post-Rehab		Avg. Rehab Cost Per Unit (3)		Post-Rehab Rent Change %			ROI (3)
Value-Add Programs In Progress
Arbors of Brentwood		346		138	$	1,227	$	1,439	$	10,375		17.3	%		24.6	%
Arbors on Forest Ridge		210		179		812		914		4,372		12.6	%		28.0	%
Atera Apartments		380		231		1,204		1,353		3,427		12.4	%		52.4	%
Avant at Pembroke Pines		1,520		560		1,815		2,067		16,915		13.9	%		17.9	%
Bella Solara		320		122		1,297		1,462		11,355		12.7	%		17.4	%
Bella Vista		248		196		1,458		1,603		10,567		9.9	%		16.4	%
Bloom		528		149		1,250		1,416		14,751		13.4	%		13.6	%
Brandywine I & II		632		494		1,036		1,217		10,589		17.4	%		20.5	%
Courtney Cove		324		276		987		1,097		4,657		11.2	%		28.5	%
Creekside at Matthews		240		68		1,317		1,517		12,578		15.2	%		19.1	%
Cutter’s Point		196		152		993		1,121		6,712		13.0	%		23.0	%
Estates on Maryland		330		91		1,284		1,473		13,385		14.8	%		17.0	%
Fairways of San Marcos		352		133		1,511		1,701		13,576		12.6	%		16.8	%
High House at Cary		302		76		1,369		1,617		14,495		18.1	%		20.5	%
Madera Point		256		257		870		981		4,520		12.8	%		29.5	%
Parc500		217		213		1,298		1,487		14,775		14.6	%		15.4	%
Radbourne Lake		225		380		1,079		1,149		2,821		6.5	%		30.0	%
Residences at Glenview Reserve		360		220		1,126		1,337		13,247		18.7	%		19.1	%
Residences at West Place		342		150		1,503		1,709		11,975		13.7	%		20.7	%
Rockledge Apartments		708		452		1,233		1,439		10,917		16.7	%		22.7	%
Sabal Palm at Lake Buena Vista		400		84		1,628		1,859		12,608		14.2	%		22.0	%
Seasons 704 Apartments		222		228		1,222		1,362		7,602		11.4	%		22.1	%
Silverbrook		642		485		807		894		4,102		10.9	%		25.6	%
Six Forks Station		323		118		1,142		1,431		13,658		25.3	%		25.4	%
Summers Landing		196		43		1,083		1,307		10,323		20.6	%		26.0	%
Summit at Sabal Park		252		235		998		1,099		5,834		10.2	%		20.9	%
The Adair		232		101		1,758		2,045		12,084		16.3	%		28.5	%
The Cornerstone		430		506		1,057		1,151		4,861		8.8	%		23.0	%
The Enclave		204		168		1,461		1,647		10,298		12.7	%		21.6	%
The Heritage		204		172		1,403		1,539		9,685		9.7	%		16.9	%
The Preserve at Terrell Mill		752		749		891		1,068		11,259		19.9	%		18.9	%
The Verandas at Lake Norman		264		70		1,361		1,577		10,998		15.9	%		23.6	%
The Venue on Camelback		415		264		774		1,027		10,329		32.6	%		29.3	%
Timber Creek		352		247		900		1,044		7,453		16.0	%		23.2	%
Torreyana Apartments		316		51		1,494		1,627		13,438		8.9	%		11.9	%
Venue at 8651		333		296		821		932		6,962		13.5	%		19.1	%
Versailles		388		308		815		916		6,168		12.4	%		19.6	%
Versailles II		242		74		910		1,038		4,991		14.1	%		30.8	%

Total/Weighted Average		14,203		8,736	$	1,131	$	1,292	$	9,207		14.3	%		21.0	%

(1)	We do not plan to upgrade 100% of the units at each of our properties.

(2)	Inclusive of all full and partial interior upgrades completed through June 30, 2023.

(3)	Inclusive of all full and partial interior upgrades completed and leased through June 30, 2023.


NXRT.NEXPOINT.COM		Page 20

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Kitchen & Laundry Appliances


Property Name (1)	Units		Rehab Units Completed (2)		Avg. Rehab Cost Per Unit (3)		Post-Rehab Rent Change $		ROI (3)
Value-Add Programs In Progress
Arbors of Brentwood		346		308	$	851	$	50		70.2	%
Arbors on Forest Ridge		210		129		767		41		64.9	%
Atera Apartments		380		366		810		40		59.7	%
Avant at Pembroke Pines		1,520		273		1,408		48		41.2	%
Brandywine I & II		632		180		1,031		70		81.6	%
Creekside at Matthews		240		146		1,085		45		49.8	%
Cutter’s Point		196		137		740		46		74.2	%
Estates on Maryland		330		14		1,083		35		38.8	%
Madera Point		256		157		885		30		40.2	%
Radbourne Lake		225		224		717		40		66.9	%
Rockledge Apartments		708		615		816		40		58.8	%
Sabal Palm at Lake Buena Vista		400		634		599		86		171.8	%
Silverbrook		642		377		734		49		79.5	%
Six Forks Station		323		195		1,087		55		60.7	%
Summers Landing		196		96		828		50		72.4	%
Summit at Sabal Park		252		249		994		40		48.3	%
The Adair		232		11		1,083		84		92.8	%
The Cornerstone		430		17		809		50		74.2	%
The Verandas at Lake Norman		264		132		1,083		55		60.9	%
Timber Creek		352		136		750		45		72.0	%
Venue at 8651		333		253		754		46		73.9	%
Versailles		388		304		866		50		68.7	%
Versailles II		242		138		885		28		38.4	%

Total/Weighted Average		9,097		5,091	$	876	$	49		66.8	%

(1)	We do not plan to upgrade 100% of the units at each of our properties.

(2)	Inclusive of all kitchen and laundry appliance upgrades completed through June 30, 2023.

(3)	Inclusive of all kitchen and laundry appliance upgrades completed and leased through June 30, 2023.


NXRT.NEXPOINT.COM		Page 21

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Smart Home Technology Packages


Property Name (1)	Units		Rehab Units Completed (2)		Avg. Rehab Cost Per Unit (3)		Post-Rehab Rent Change $		ROI (3)
Value-Add Programs In Progress
Arbors of Brentwood		346		346	$	1,419	$	45		30.9	%
Arbors on Forest Ridge		210		210		1,416		45		30.9	%
Atera Apartments		380		380		1,339		50		37.0	%
Avant at Pembroke Pines		1,520		1,520		1,350		45		32.4	%
Bella Vista		248		248		970		40		39.3	%
Brandywine I & II		632		632		1,234		45		35.5	%
Courtney Cove		324		324		1,238		35		26.2	%
Creekside at Matthews		240		240		913		65		72.9	%
Cutter’s Point		196		196		1,400		45		31.3	%
Estates on Maryland		330		330		913		45		48.0	%
Fairways of San Marcos		352		352		901		40		42.3	%
Madera Point		256		256		1,283		45		34.1	%
Old Farm		734		734		928		45		47.2	%
Radbourne Lake		225		225		630		35		51.4	%
Residences at Glenview Reserve		360		360		1,017		45		43.1	%
Sabal Palm at Lake Buena Vista		400		400		1,237		45		35.4	%
Silverbrook		642		642		1,308		45		33.5	%
Six Forks Station		323		323		844		35		38.4	%
Stone Creek at Old Farm		190		190		909		45		48.2	%
Summers Landing		196		196		1,449		45		30.2	%
The Adair		232		232		913		45		48.0	%
The Cornerstone		430		430		1,236		45		35.4	%
The Enclave		204		204		966		40		39.4	%
The Heritage		204		204		997		40		38.2	%
The Verandas at Lake Norman		264		264		954		65		69.8	%
Timber Creek		352		352		1,299		45		33.7	%
Venue at 8651		333		333		1,229		45		35.6	%
Versailles		388		388		1,080		45		40.6	%
Versailles II		242		242		1,241		45		35.3	%

Total/Weighted Average		10,753		10,753	$	32,774	$	45		35.3	%


Planned Value-Add Programs								Rent Change & ROI (Projections)
Bella Solara		320		—		TBD		TBD		TBD
Bloom		528		—		TBD		TBD		TBD
Hight House at Cary		302		—		TBD		TBD		TBD
Residences at West Place		342		—		TBD		TBD		TBD
Rockledge Apartments		708		—		TBD		TBD		TBD
Seasons 704 Apartments		222		—		TBD		TBD		TBD
Summit at Sabal Park		252		—		TBD		TBD		TBD
The Preserve at Terrell Mill		752		—		TBD		TBD		TBD
The Venue on Camelback		415		—		TBD		TBD		TBD
Torreyana Apartments		316		—		TBD		TBD		TBD

Total/Weighted Average Planned		4,157		—		TBD		TBD		TBD

(1)	We do not plan to upgrade 100% of the units at each of our properties.

(2)	Inclusive of all smart home technology package upgrades completed through June 30, 2023.

(3)	Inclusive of all smart home technology package upgrades completed and leased through June 30, 2023.


NXRT.NEXPOINT.COM		Page 22

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Outstanding Debt Details

Mortgage Debt

The following table contains summary information concerning the mortgage debt of the Company as of June 30, 2023 (dollars in thousands):


Operating Properties	Type	Term (months)	Outstanding Principal (1)			Interest Rate (2)	Maturity Date
Arbors on Forest Ridge	Floating	120	$	19,184		6.62%	12/1/2032
Cutter’s Point	Floating	120		21,524		6.62%	12/1/2032
Silverbrook	Floating	120		46,088		6.62%	12/1/2032
The Summit at Sabal Park	Floating	120		30,826		6.62%	12/1/2032
Courtney Cove	Floating	120		36,146		6.62%	12/1/2032
The Preserve at Terrell Mill	Floating	120		71,098		6.62%	12/1/2032
Versailles	Floating	120		40,247		6.62%	12/1/2032
Seasons 704 Apartments	Floating	120		33,132		6.62%	12/1/2032
Madera Point	Floating	120		34,457		6.62%	12/1/2032
Venue at 8651	Floating	120		18,690		6.62%	12/1/2032
The Venue on Camelback	Floating	120		42,788		7.25%	2/1/2033
Timber Creek	Floating	84		24,100		6.48%	10/1/2025
Radbourne Lake	Floating	84		20,000		6.51%	10/1/2025
Sabal Palm at Lake Buena Vista	Floating	84		42,100		6.52%	9/1/2025
Cornerstone	Floating	120		46,804		7.16%	12/1/2032
Parc500	Floating	120		29,416		6.62%	12/1/2032
Rockledge Apartments	Floating	120		93,129		6.62%	12/1/2032
Atera Apartments	Floating	120		46,198		6.62%	12/1/2032
Versailles II	Floating	84		12,061		6.40%	10/1/2025
Brandywine I & II	Floating	84		43,835		6.40%	10/1/2025
Bella Vista	Floating	84		29,040		6.54%	2/1/2026
The Enclave	Floating	84		25,322		6.54%	2/1/2026
The Heritage	Floating	84		24,625		6.54%	2/1/2026
Summers Landing	Floating	84		10,109		6.40%	10/1/2025
Residences at Glenview Reserve	Floating	84		25,713		6.66%	10/1/2025
Residences at West Place	Fixed	120		33,817		4.24%	10/1/2028
Avant at Pembroke Pines	Floating	84		177,101		6.65%	9/1/2026
Arbors of Brentwood	Floating	84		34,237		6.65%	10/1/2026
Torreyana Apartments	Floating	120		50,580		6.62%	12/1/2032
Bloom	Floating	120		59,830		6.62%	12/1/2032
Bella Solara	Floating	120		40,328		6.62%	12/1/2032
Fairways at San Marcos	Floating	120		60,228		6.62%	12/1/2032
The Verandas at Lake Norman	Floating	84		34,925		6.92%	7/1/2028
Creekside at Matthews	Floating	120		29,648		6.62%	12/1/2032
Six Forks Station	Floating	120		41,180		6.78%	10/1/2031
High House at Cary	Floating	84		46,625		7.08%	1/1/2029
The Adair	Floating	84		35,115		7.04%	4/1/2029
Estates on Maryland	Floating	84		43,157		7.04%	4/1/2029

				1,553,403
Fair market value adjustment				556
Deferred financing costs, net of accumulated amortization of $3,346				(11,178	)

			$	1,542,781


Held For Sale Properties
Old Farm	Floating	84		52,886		6.90%	7/1/2024
Stone Creek at Old Farm	Floating	84		15,274		6.90%	7/1/2024

				68,160
Deferred financing costs, net of accumulated amortization of $576				(96	)

			$	68,064

(1)	Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2)	Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. One-month LIBOR was 5.22% and 30-Day Average SOFR was 5.07% as of June 30, 2023.


NXRT.NEXPOINT.COM		Page 23

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Credit Facility

The following table contains summary information concerning the Company’s credit facility as of June 30, 2023 (dollars in thousands):


	Type		Term (months)		Outstanding Principal		Interest Rate (1)		Maturity Date
Corporate Credit Facility		Floating		36	$	57,000		7.39%		6/30/2025
Deferred financing costs, net of accumulated amortization of $1,701						(1,306)

					$	55,694

(1)	Interest rate is based on Term SOFR plus an applicable margin. Term SOFR as of June 30, 2023 was 5.14%.

Interest Rate Swap Agreements

As of June 30, 2023, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):


Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
June 1, 2019	June 1, 2024	KeyBank	$	50,000		2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000		2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000		1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000		1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500		1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000		0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000		0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000		0.6140	%

			$	1,167,500		1.0682	%(2)

(1)	The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2023, one-month LIBOR was 5.22%.

(2)	Represents the weighted average fixed rate of the interest rate swaps.

The following table contains summary information regarding our forward interest rate swap (dollars in thousands):

Effective Date

Termination Date

Counterparty

Notional Amount

Fixed Rate (1)

September 1, 2026

January 1, 2027

KeyBank

92,500

1.7980

(1)	The floating rate option for the interest rate swap is one-month LIBOR. As of June 30, 2023, one-month LIBOR was 5.22%.


NXRT.NEXPOINT.COM		Page 24

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Interest Rate Cap Agreements

As of June 30, 2023, the Company had the following interest rate caps outstanding that are not designated as cash flow hedges of interest rate risk (dollars in thousands):


Properties	Type	Maturity Date		Notional		Strike Rate

Sabal Palm at Lake Buena Vista	Floating		9/1/2023	$	42,100		6.20%

Residences at Glenview Reserve	Floating		10/1/2023		25,977		4.81%	(1)

Timber Creek	Floating		10/1/2023		24,100		4.99%	(1)

Brandywine I & II	Floating		10/1/2023		43,835		6.82%

Radbourne Lake	Floating		10/1/2023		20,000		6.46%

Summers Landing	Floating		10/1/2023		10,109		6.07%

Versailles II	Floating		10/1/2023		12,061		6.82%

Fairways at San Marcos	Floating		12/1/2023		46,464		3.37%	(1)

The Verandas at Lake Norman	Floating		7/1/2024		34,925		3.40%	(1)

Creekside at Matthews	Floating		7/1/2024		31,900		4.40%	(1)

Six Forks Station	Floating		10/1/2024		41,180		4.00%	(1)

High House at Cary	Floating		1/1/2025		46,625		2.74%	(1)

Estates on Maryland	Floating		4/1/2025		43,157		3.91%	(1)

The Adair	Floating		4/1/2025		35,115		3.91%	(1)

Rockledge Apartments	Floating		12/1/2025		93,129		6.45%

The Preserve at Terrell Mill	Floating		12/1/2025		71,098		6.45%

Fairways at San Marcos	Floating		12/1/2025		60,228		6.70%

Bloom	Floating		12/1/2025		59,830		6.70%

Atera Apartments	Floating		12/1/2025		46,198		6.45%

Silverbrook	Floating		12/1/2025		46,088		6.45%

Torreyana Apartments	Floating		12/1/2025		50,580		6.70%

Cornerstone	Floating		12/1/2025		46,804		6.66%

Versailles	Floating		12/1/2025		40,247		6.45%

Bella Solara	Floating		12/1/2025		40,328		6.70%

Courtney Cove	Floating		12/1/2025		36,146		6.70%

Madera Point	Floating		12/1/2025		34,457		6.70%

Creekside at Matthews	Floating		12/1/2025		29,648		6.45%

Parc500	Floating		12/1/2025		29,416		6.45%

Seasons 704 Apartments	Floating		12/1/2025		33,132		6.70%

The Summit at Sabal Park	Floating		12/1/2025		30,826		6.70%

Cutter’s Point	Floating		12/1/2025		21,524		6.45%

Venue at 8651	Floating		12/1/2025		18,690		6.45%

The Heritage	Floating		2/1/2023		24,625		5.18%

The Enclave	Floating		2/1/2023		25,322		5.18%

Bella Vista	Floating		2/1/2023		29,040		5.18%

Arbors on Forest Ridge	Floating		12/1/2025		19,184		6.70%

Venue on Camelback	Floating		2/1/2026		42,788		6.07%



				$	1,386,876		5.82%

(1)	As of June 30, 2023, these properties have rate caps that are below the 30-Day Average SOFR rate of 5.07% or the one-month LIBOR rate of 5.22%.


NXRT.NEXPOINT.COM		Page 25

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Debt Maturity Schedule

The following table summarizes our contractual obligations and commitments as of June 30, 2023 for the next five calendar years subsequent to June 30, 2023 and thereafter. We used the applicable reference rates as of June 30, 2023 to calculate interest expense due by period on our floating rate debt and net interest expense due by period on our interest rate swaps.


			Payments Due by Period (in thousands)
			Total		Remainder of 2023		2024		2025		2026		2027		Thereafter
Operating Properties Mortgage Debt
Principal payments			$	1,553,403	$	138	$	314	$	177,466	$	290,324	$	-	$	1,085,161
Interest expense	(1	)		572,421		27,866		57,453		65,177		61,743		73,225		286,957

Total			$	2,125,824	$	28,004	$	57,767	$	242,643	$	352,067	$	73,225	$	1,372,118


Held For Sale Property Mortgage Debt
Principal payments			$	68,160	$	—	$	68,160	$	—	$	—	$	—	$	—
Interest expense				4,780		2,403		2,377		—		—		—		—

Total			$	72,940	$	2,403	$	70,537	$	—	$	—	$	—	$	—

Credit Facility
Principal payments			$	57,000	$	—	$	—	$	57,000	$	—	$	—	$	—
Interest expense				8,904		2,507		4,288		2,109		—		—		—

Total			$	65,904	$	2,507	$	4,288	$	59,109	$	—	$	—	$	—


Total contractual obligations and commitments			$	2,264,668	$	32,914	$	132,592	$	301,752	$	352,067	$	73,225	$	1,372,118

(1)

Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of June 30, 2023, we had entered into 10 interest rate swap transactions with a combined notional amount of $1.2 billion. We have allocated the total impact of expected settlements on the $1.2 billion notional amount of interest rate swaps to ‘Operating Properties Mortgage Debt.’ We used the applicable reference rates as of June 30, 2023 to determine our expected settlements through the terms of the interest rate swaps.

(2)

As of June 30, 2023, we had total indebtedness of $1.7 billion at an adjusted weighted average interest rate of 3.54% of which $1.6 billion was debt with a floating interest rate. As of June 30, 2023, interest rate swap agreements effectively covered 74% of our $1.6 billion of floating rate mortgage debt outstanding and rate caps agreements effectively covered 17% of our $1.6 billion of floating rate mortgage debt. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.0682% for one-month LIBOR on the $1.2 billion notional amount of interest rate swap agreements that we have entered into as of June 30, 2023.


NXRT.NEXPOINT.COM		Page 26

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Acquisition Details


(in thousands, except for unit and per unit amounts)
Property Name (1)	Location	Units		Transaction Date	Purchase Price		Rehab Budget (2)		Total Investment		Per Unit
Arbors on Forest Ridge	Bedford, TX		210	1/31/2014		$12,805		$1,449		$14,254		$67,876
Cutter’s Point	Richardson, TX		196	1/31/2014		15,845		1,357		17,202		87,765
Silverbrook	Grand Prairie, TX		642	1/31/2014		30,400		1,661		32,061		49,939
The Summit at Sabal Park	Tampa, FL		252	8/20/2014		19,050		1,656		20,706		82,167
Courtney Cove	Tampa, FL		324	8/20/2014		18,950		1,691		20,641		63,707
Radbourne Lake	Charlotte, NC		225	9/30/2014		24,250		1,438		25,688		114,169
Timber Creek	Charlotte, NC		352	9/30/2014		22,750		4,334		27,084		76,943
Sabal Palm at Lake Buena Vista	Orlando, FL		400	11/5/2014		49,500		1,346		50,846		127,115
Cornerstone	Orlando, FL		430	1/15/2015		31,550		2,662		34,212		79,563
The Preserve at Terrell Mill	Marietta, GA		752	2/6/2015		58,000		6,688		64,688		86,021
Versailles	Dallas, TX		388	2/26/2015		26,165		3,917		30,082		77,531
Seasons 704 Apartments	West Palm Beach, FL		222	4/15/2015		21,000		1,900		22,900		103,153
Madera Point	Mesa, AZ		256	8/5/2015		22,525		1,808		24,333		95,051
Venue at 8651	Fort Worth, TX		333	10/30/2015		19,250		4,592		23,842		71,598
Parc500	West Palm Beach, FL		217	7/27/2016		22,421		5,082		27,503		126,742
The Venue on Camelback	Phoenix, AZ		415	10/11/2016		44,600		6,018		50,618		121,971
Old Farm	Houston, TX		734	12/29/2016		84,721		1,135		85,856		116,970
Stone Creek at Old Farm	Houston, TX		190	12/29/2016		23,332		456		23,788		125,200
Rockledge Apartments	Marietta, GA		708	6/30/2017		113,500		7,685		121,185		171,165
Atera Apartments	Dallas, TX		380	10/25/2017		59,200		3,721		62,921		165,582
Versailles II	Dallas, TX		242	9/26/2018		24,680		2,797		27,477		113,541
Brandywine I & II	Nashville, TN		632	9/26/2018		79,800		7,762		87,562		138,547
Bella Vista	Phoenix, AZ		248	1/28/2019		48,400		3,414		51,814		208,927
The Enclave	Tempe, AZ		204	1/28/2019		41,800		2,608		44,408		217,686
The Heritage	Phoenix, AZ		204	1/28/2019		41,900		2,660		44,560		218,431
Summers Landing	Fort Worth, TX		196	6/7/2019		19,396		2,980		22,376		114,163
Residences at Glenview Reserve	Nashville, TN		360	7/17/2019		45,000		5,695		50,695		140,819
Residences at West Place	Orlando, FL		342	7/17/2019		55,000		4,129		59,129		172,892
Avant at Pembroke Pines	Pembroke Pines, FL		1,520	8/30/2019		322,000		32,583		354,583		233,278
Arbors of Brentwood	Nashville, TN		346	9/10/2019		62,250		4,248		66,498		192,191
Torreyana Apartments	Las Vegas, NV		316	11/22/2019		68,000		2,771		70,771		223,959
Bloom	Las Vegas, NV		528	11/22/2019		106,500		4,786		111,286		210,769
Bella Solara	Las Vegas, NV		320	11/22/2019		66,500		3,642		70,142		219,194
Fairways at San Marcos	Chandler, AZ		352	11/2/2020		84,480		4,482		88,962		252,733
The Verandas at Lake Norman	Cornelius, NC		264	6/30/2021		63,500		4,628		68,128		258,061
Creekside at Matthews	Matthews, NC		240	6/30/2021		58,000		3,943		61,943		258,096
Six Forks Station	Raleigh, NC		323	9/10/2021		74,760		6,431		81,191		251,365
High House at Cary	Cary, NC		302	12/7/2021		93,250		1,677		94,927		314,328
The Adair	Sandy Springs, GA		232	4/1/2022		65,500		5,390		70,890		305,560
Estates on Maryland	Phoenix, AZ		330	4/1/2022		77,900		4,636		82,536		250,109

Total/Weighted Average			15,127			$2,218,430		$171,858		$2,390,288		$158,015

(1)	Only includes properties owned as of June 30, 2023.

(2)	Includes interior and exterior rehab.


NXRT.NEXPOINT.COM		Page 27

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Disposition Details


(in thousands, except unit and per unit amounts)

Property Name	Location	Units		Purchase Price		Sale Price		Per Unit		Sale Date	Net Cash Proceeds (1)		Gain on Sale
Meridian	Austin, TX		200	$	12,300	$	17,250	$	86,250	5/10/2016	$	16,981	$	4,786
Park at Regency and Mandarin Reserve	Jacksonville, FL		679		34,500		47,000		69,219	6/6/2016		46,239		11,584
Park at Blanding and Colonial Forest	Jacksonville, FL		291		12,000		14,500		49,828	8/31/2016		14,259		2,007
Willowdale Crossings	Frederick, MD		432		41,000		45,200		104,630	9/15/2016		44,439		5,576
Jade Park	Dayton Beach, FL		144		7,800		10,000		69,444	9/30/2016		9,868		1,979
The Miramar Apartments	Dallas, TX		314		8,875		16,550		52,707	4/3/2017		16,326		6,368
Toscana	Dallas, TX		192		8,875		13,250		69,010	4/3/2017		13,040		4,283
The Grove at Alban	Frederick, MD		290		23,050		27,500		94,828	4/3/2017		27,021		4,514
Twelve 6 Ten at the Park	Dallas, TX		402		20,984		26,600		66,169	4/27/2017		26,349		4,731
Regatta Bay	Seabrook, TX		240		18,200		28,200		117,500	7/14/2017		27,670		10,423
NAVA Portfolio (2)	Atlanta, GA		1,100		66,200		116,000		105,455	9/27/2017		114,010		48,046
Timberglen	Dallas, TX		304		16,950		30,000		98,684	1/31/2018		29,553		13,742
Edgewater at Sandy Springs	Atlanta, GA		760		58,000		101,250		133,224	8/28/2019		100,219		47,329
Belmont at Duck Creek	Garland, TX		240		18,525		29,500		122,917	8/28/2019		29,148		11,985
The Ashlar	Dallas, TX		264		16,235		29,400		111,364	8/28/2019		29,050		13,205
Heatherstone	Dallas, TX		152		9,450		16,275		107,072	8/28/2019		16,054		6,368
The Pointe at the Foothills	Mesa, AZ		528		52,275		85,400		161,742	8/28/2019		84,663		37,925
Abbington Heights	Antioch, TN		274		17,900		28,050		102,372	8/30/2019		27,630		10,888
Southpoint Reserve at Stoney Creek	Fredericksburg, VA		156		17,000		23,500		150,641	3/20/2020		23,176		5,469
Willow Grove	Nashville, TN		244		13,750		31,300		128,279	3/26/2020		31,005		17,513
Woodbridge	Nashville, TN		220		16,000		31,700		144,091	3/26/2020		31,237		15,990
Eagle Crest	Irving, TX		447		27,325		55,500		124,161	9/30/2020		54,779		30,160
Beechwood Terrace	Antioch, TN		300		21,400		53,600		178,667	11/1/2021		53,003		33,960
Cedar Pointe	Antioch, TN		210		26,500		37,650		179,286	11/1/2021		37,231		12,252
Hollister Place	Houston, TX		260		24,500		36,750		141,346	12/29/2022		36,455		14,684

Total/Weighted Average			8,643	$	589,594	$	951,925	$	110,138		$	939,405	$	375,767

(1)	Represents sales price, net of closing costs.

(2)	The NAVA Portfolio consists of The Arbors, The Crossings, The Crossings at Holcomb Bridge and The Knolls.


NXRT.NEXPOINT.COM		Page 28

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Definitions and Reconciliations of Non-GAAP Measures

Definitions

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 net operating income (“NOI”), funds from operations attributable to common stockholders (“FFO”), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO (“AFFO”), AFFO per diluted share and net debt.

NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) the impact of depreciation and amortization expenses, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including gain (loss) on extinguishment of debt and modification costs, (6) casualty-related expenses/(recoveries) and casualty gains (losses) (7) gain on forfeited deposits and (8) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. We define “Same Store NOI” as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.

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, if applicable, plus real estate depreciation and amortization. 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 redeemable noncontrolling interests in the OP and we show the amount 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 gain on extinguishment of debt and modification costs, casualty-related expenses/and recoveries and gains (losses), gain on forfeited deposits, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing and the noncontrolling interests (as described above) 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.

Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding.

We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts (“REITs”) among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.


NXRT.NEXPOINT.COM		Page 29

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Reconciliations

Reconciliation of Debt to Net Debt


(dollar amounts in thousands)	Q2 2023			Q2 2022
Total mortgage debt	$	1,621,563		$	1,358,675
Credit facilities		57,000			335,000

Total debt outstanding		1,678,563			1,693,675

Adjustments to arrive at net debt:
Cash and cash equivalents		(10,056	)		(20,463	)
Restricted cash held for value-add upgrades and green improvements		(4,014	)		(19,333	)

Net Debt	$	1,664,493		$	1,653,879

Enterprise Value (1)	$	2,832,493		$	3,256,879
Leverage Ratio		59	%		51	%

(1)	Enterprise Value is calculated as Market Capitalization plus Net Debt.

Guidance Reconciliations of NOI, Same Store NOI, FFO, Core FFO and AFFO

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI to net income (the most directly comparable GAAP financial measure) for the periods presented below (in thousands):


		For the Year Ended December 31, 2023			For the Three Months Ended September 30, 2023
		Mid-Point (1)			Mid-Point (1)
Net income (loss)		$	133,518		$	(7,592	)
Adjustments to reconcile net income (loss) to NOI:
Advisory and administrative fees			7,652			1,918
Corporate general and administrative expenses			16,752			4,380
Property general and administrative expenses	(2)		1,628			743
Depreciation and amortization			98,423			26,093
Interest expense			67,736			18,186
Casualty-related recoveries			880			—
Loss on extinguishment of debt and modification costs			2,498			—
Gain on forfeited deposits			(250	)		—
Gain on sales of real estate			(156,597	)		—

NOI	(3)	$	172,240		$	43,728

Less Non-Same Store
Revenues	(4)		(45,821	)
Operating expenses	(4)		21,017

Same Store NOI	(4)	$	147,435

(1)

Mid-Point estimates shown for full year and third quarter 2023 guidance. Assumptions made for full year and third quarter 2023 NOI guidance include the Same Store operating growth projections included in the “2023 Full Year Guidance Summary” section of this release and the effect of the acquisition and dispositions throughout the fiscal year.

(2)

Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

(3)	FY 2023 NOI Guidance considers the forecast dispositions of Old Farm, Stone Creek at Old Farm, Timber Creek, Radbourne Lake and Silverbrook, and considers a commensurate volume of capital recycling.

(4)	Amounts are derived from the results of operations of our Full Year 2023 Same Store properties and Non-Same Store properties. There are 33 properties in our Full Year 2023 Same Store pool.


NXRT.NEXPOINT.COM		Page 30

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

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, 2023 (in thousands, except per share data):


	For the Year Ended December 31, 2023
	Mid-Point
Net income	$	133,518
Depreciation and amortization		98,423
Gain on sales of real estate		(156,597	)
Adjustment for noncontrolling interests		(261	)

FFO attributable to common stockholders		75,083

FFO per share - diluted (1)	$	2.87


Loss on extinguishment of debt and modification costs		2,498
Casualty-related recoveries		(428	)
Amortization of deferred financing costs - acquisition term notes		987
Gain on forfeited deposits		(250	)
Adjustment for noncontrolling interests		(9	)

Core FFO attributable to common stockholders		77,880

Core FFO per share - diluted (1)	$	2.98


Amortization of deferred financing costs - long term debt		1,729
Equity-based compensation expense		9,442
Adjustment for noncontrolling interests		(39	)

AFFO attributable to common stockholders		89,013

AFFO per share - diluted (1)	$	3.40


Weighted average common shares outstanding - diluted		26,178

(1)	For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 26.2 million for the full year 2023.


NXRT.NEXPOINT.COM		Page 31

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NOI

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI for the three months ended March 31, 2023 and the year ended December 31, 2022 to net loss, the most directly comparable GAAP financial measure (in thousands):


		For the Three Months Ended March 31, 2023		For the Year Ended December 31, 2022
Net loss		$	(3,898)	$	(9,291)
Adjustments to reconcile net loss to NOI:
Advisory and administrative fees			1,889		7,547
Corporate general and administrative expenses			3,367		14,670
Casualty-related expenses/(recoveries)	(1)		(1,706)		1,119
Casualty gains			814		(2,506)
Property general and administrative expenses	(2)		781		3,600
Depreciation and amortization			23,266		97,648
Interest expense			16,739		50,587
Loss (gain) on extinguishment of debt and modification costs			(122)		8,734
Gain on sales of real estate			—		(14,684)

NOI		$	41,130	$	157,424

(1)	Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

(2)	Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.


NXRT.NEXPOINT.COM		Page 32

Document and Entity Information	Jul. 25, 2023
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001620393
Document Type	8-K
Document Period End Date	Jul. 25, 2023
Entity Registrant Name	NEXPOINT RESIDENTIAL TRUST, INC.
Entity Incorporation State Country Code	MD
Entity File Number	001-36663
Entity Tax Identification Number	47-1881359
Entity Address, Address Line One	300 Crescent Court
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
City Area Code	(214)
Local Phone Number	276-6300
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	NXRT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false