DALLAS, July 30, 2019 /PRNewswire/ -- NexPoint
Residential Trust, Inc. (NYSE:NXRT) reported financial results for
the second quarter ended June 30,
2019.
Highlights
- NXRT1 reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(2.0)M, $11.0M,
$11.0M and $12.9M, respectively, attributable to common
stockholders for the quarter ended June 30,
2019, compared to Net Loss, FFO, Core FFO, and AFFO of
$(1.7)M, $9.3M, $8.7M and
$10.2M, respectively, attributable to
common stockholders for the quarter ended June 30, 2018.
- NXRT reported Net Loss, FFO, Core FFO and AFFO of $(6.3)M, $22.0M,
$22.0M and $25.6M, respectively, attributable to common
stockholders for the six months ended June
30, 2019, compared to Net Income, FFO, Core FFO, and AFFO of
$8.4M, $17.0M, $17.0M and
$19.8M, respectively, attributable to
common stockholders for the six months ended June 30, 2018.
- For the three months ended June 30,
2019, Q2 Same Store properties3 average effective
rent, total revenue and NOI2 increased 4.3%, 4.0% and
5.4%, respectively, and occupancy increased 40 bps over the prior
year period.
- For the six months ended June 30,
2019, YTD Same Store properties3 average
effective rent, total revenue and NOI2 increased 4.3%,
4.3% and 6.2%, respectively, and occupancy increased 40 bps over
the prior year period.
- For the three months ended June 30,
2019, Q2 Same Store properties expenses increased 2.2% over
the prior year period, primarily due to increases in property taxes
of 11.5%.
- During the three months ended June 30,
2019, NXRT acquired Summer's Landing in Fort Worth, TX for a purchase price of
approximately $19.4M.
- The weighted average effective monthly rent per unit across all
39 properties held as of June 30,
2019 (the "Portfolio"), consisting of 13,407 units, was
$1,016, while physical occupancy was
94.4%.
- NXRT paid a second quarter dividend of $0.275 per share of common stock on June 28, 2019.
- During the second quarter, for the properties in our Portfolio,
we completed 475 full and partial upgrades and leased 381 upgraded
units, achieving an average monthly rent premium of $109 and a 27.1% ROI4. Since
inception, for the properties in our Portfolio, we have completed
6,594 full and partial upgrades and achieved an average monthly
rental increase per unit of $97,
equating to a 23.2% ROI on all units leased as of June 30, 2019.
- During the second quarter of 2019, we completed Smart Home
Technology installs on 4,891 units, covering 15 properties.
- On June 25, 2019, NXRT entered
into a sale agreement on six properties (the "Sunbelt Portfolio")
for a total sale price of approximately $289.9 million which will net proceeds of
approximately $145.0 million after
repayment of debt and before closing costs. The sales of the
properties are expected to close on or before August 30, 2019.
- 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 income
(loss), see the "Definitions and Reconciliations of Non-GAAP
Measures" and "FFO, Core FFO and AFFO" 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 32 properties encompassing 11,471 units of apartment space in
our Same Store pool for the three and six months ended June 30, 2019 (our "Q2 Same Store" and "YTD Same
Store" properties).
- We define Return on Investment ("ROI") as the sum of the actual
rent premium divided by the sum of the total cost.
"We are pleased to report strong operating performance for Q2
2019, buoyed by robust demand for workforce housing communities and
the success of our interior upgrade programs. As a result, we are
raising our 2019 earnings guidance to $4.59 per share and 2019 Core FFO guidance by
$0.03 to $1.90 per share," stated NXRT Chairman and
President, Jim Dondero.
Second Quarter 2019 Financial Results
- Total revenues were $43.1 million
for the second quarter of 2019, compared to $35.7 million for the second quarter of
2018.
- Net loss for the second quarter of 2019 totaled $(2.0) million, or a loss of $(0.08) per diluted share, which included
$13.1 million of depreciation and
amortization expense. This compared to net loss of $(1.7) million, or a loss of $(0.08) per diluted share, for the second quarter
of 2018, which included $11.0 million
of depreciation and amortization expense and $0.1 million of loss on extinguishment and debt
modification costs.
- The change in our net loss of $2.0
million for the three months ended June 30, 2019 as compared to our net loss of
$1.7 million for the three months
ended June 30, 2018 primarily relates
to increases in operating expenses, depreciation and amortization
and interest expense, and was partially offset by an increase in
total revenues.
- For the second quarter of 2019, NOI was $24.6 million on 39 properties, compared to
$19.8 million for the second quarter
of 2018 on 32 properties.
- For the second quarter of 2019, Q2 Same Store NOI increased
5.4% to $20.8 million, compared to
$19.8 million for the second quarter
of 2018.
- For the second quarter of 2019, FFO totaled $11.0 million, or $0.46 per diluted share, compared to $9.3 million, or $0.44 per diluted share, for the second quarter
of 2018.
- For the second quarter of 2019, Core FFO totaled $11.0 million, or $0.45 per diluted share, compared to $8.7 million, or $0.41 per diluted share, for the second quarter
of 2018.
- For the second quarter of 2019, AFFO totaled $12.9 million, or $0.53 per diluted share, compared to $10.2 million, or $0.48 per diluted share, for the second quarter
of 2018.
Second Quarter Earnings Conference Call
NXRT will host a call on Tuesday, July
30, 2019 at 11:00 a.m. ET to
discuss its second quarter financial results. The conference call
can be accessed live over the phone by dialing 800-263-0877 or, for
international callers, 646-828-8143, and using passcode Conference
ID: 1506608. A live audio webcast of the call will be available
online at the Company's website, http://www.nexpointliving.com
(under "Investor Relations"). An online replay will be
available shortly after the call on the Company's website and will
continue to be available for 60 days.
A replay of the conference call will also be available through
Tuesday, August 6, 2019 by dialing
(888) 203-1112 or, for international callers, (719) 457-0820 and
entering passcode 1506608.
About NXRT
NexPoint Residential Trust is a publicly traded REIT, with its
shares listed on the New York Stock Exchange under the symbol
"NXRT," primarily focused on acquiring, owning and operating
well-located middle-income multifamily properties with "value-add"
potential in large cities and suburban submarkets of large cities,
primarily in the Southeastern and Southwestern United States. NXRT is externally
advised by NexPoint Real Estate Advisors, L.P., an affiliate of
Highland Capital Management, L.P., a leading global alternative
asset manager and an SEC-registered investment adviser. Our filings
with the Securities and Exchange Commission (the "SEC") are
available on our website, www.nexpointliving.com, under the
"Investor Relations" 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," "intend" 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 2019 and
the related assumptions, net asset value and the related components
and assumptions, guidance for the third quarter 2019 and the
related assumptions, and expected acquisitions and dispositions.
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. 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:
Investor Relations
Jackie Graham
972-419-6213
FFO, Core FFO and AFFO
The following table reconciles our calculations of FFO, Core FFO
and AFFO to net income (loss), the most directly comparable GAAP
financial measure, for the three and six months ended June 30, 2019 and 2018 (in thousands, except per
share amounts):
|
|
For the Three
Months Ended
June 30,
|
|
|
For the Six Months
Ended
June
30,
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
% Change
(1)
|
|
Net income
(loss)
|
|
$
|
(1,987)
|
|
|
$
|
(1,666)
|
|
|
$
|
(6,360)
|
|
|
$
|
8,428
|
|
|
|
-175.5
|
%
|
Depreciation and
amortization
|
|
|
13,066
|
|
|
|
11,038
|
|
|
|
28,464
|
|
|
|
22,410
|
|
|
|
27.0
|
%
|
Gain on sales of real
estate
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,742)
|
|
|
|
-100.0
|
%
|
Adjustment for
noncontrolling interests
|
|
|
(33)
|
|
|
|
(28)
|
|
|
|
(66)
|
|
|
|
(51)
|
|
|
|
29.4
|
%
|
FFO attributable
to common stockholders
|
|
|
11,046
|
|
|
|
9,344
|
|
|
|
22,038
|
|
|
|
17,045
|
|
|
|
29.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$
|
0.47
|
|
|
$
|
0.45
|
|
|
$
|
0.93
|
|
|
$
|
0.82
|
|
|
|
14.2
|
%
|
FFO per share -
diluted
|
|
$
|
0.46
|
|
|
$
|
0.44
|
|
|
$
|
0.91
|
|
|
$
|
0.80
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt and modification costs
|
|
|
—
|
|
|
|
78
|
|
|
|
—
|
|
|
|
629
|
|
|
|
-100.0
|
%
|
Casualty-related
recoveries
|
|
|
(43)
|
|
|
|
(690)
|
|
|
|
(7)
|
|
|
|
(666)
|
|
|
|
-98.9
|
%
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21
|
|
|
|
-100.0
|
%
|
Adjustment for
noncontrolling interests
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
N/A
|
|
Core FFO
attributable to common stockholders
|
|
|
11,003
|
|
|
|
8,734
|
|
|
|
22,031
|
|
|
|
17,029
|
|
|
|
29.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share
- basic
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
|
$
|
0.93
|
|
|
$
|
0.82
|
|
|
|
14.3
|
%
|
Core FFO per share
- diluted
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
0.91
|
|
|
$
|
0.80
|
|
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
470
|
|
|
|
352
|
|
|
|
902
|
|
|
|
720
|
|
|
|
25.3
|
%
|
Equity-based
compensation expense
|
|
|
1,419
|
|
|
|
1,094
|
|
|
|
2,654
|
|
|
|
2,009
|
|
|
|
32.1
|
%
|
Adjustment for
noncontrolling interests
|
|
|
(5)
|
|
|
|
(4)
|
|
|
|
(11)
|
|
|
|
(8)
|
|
|
|
37.5
|
%
|
AFFO attributable
to common stockholders
|
|
|
12,887
|
|
|
|
10,176
|
|
|
|
25,576
|
|
|
|
19,750
|
|
|
|
29.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share -
basic
|
|
$
|
0.54
|
|
|
$
|
0.49
|
|
|
$
|
1.08
|
|
|
$
|
0.95
|
|
|
|
14.4
|
%
|
AFFO per share -
diluted
|
|
$
|
0.53
|
|
|
$
|
0.48
|
|
|
$
|
1.06
|
|
|
$
|
0.92
|
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
23,736
|
|
|
|
20,780
|
|
|
|
23,643
|
|
|
|
20,883
|
|
|
|
13.2
|
%
|
Weighted average
common shares outstanding - diluted
|
|
|
24,233
|
|
|
|
21,295
|
|
|
|
24,139
|
|
|
|
21,362
|
|
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.275
|
|
|
$
|
0.250
|
|
|
$
|
0.550
|
|
|
$
|
0.500
|
|
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Coverage -
diluted
|
(2)
|
|
1.66x
|
|
|
|
1.76x
|
|
(2)
|
|
1.66x
|
|
|
|
1.60x
|
|
|
|
4.02
|
%
|
Core FFO Coverage
- diluted
|
(2)
|
|
1.65x
|
|
|
|
1.64x
|
|
(2)
|
|
1.66x
|
|
|
|
1.59x
|
|
|
|
4.08
|
%
|
AFFO Coverage -
diluted
|
(2)
|
|
1.93x
|
|
|
|
1.91x
|
|
(2)
|
|
1.93x
|
|
|
|
1.85x
|
|
|
|
4.18
|
%
|
(1)
|
Represents the
percentage change for the six months ended June 30, 2019 compared
to the six months ended June 30, 2018.
|
(2)
|
Indicates coverage
ratio of FFO/Core FFO/AFFO per common share (diluted) over
dividends declared per common share during the period.
|
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) the cost of funds, (2) acquisition costs,
(3) advisory and administrative fees, (4) the impact of
depreciation and amortization expenses as well as gains or losses
from the sale of operating real estate assets that are included in
net income computed in accordance with GAAP, (5) corporate general
and administrative expenses, (6) other gains and losses that are
specific to us, (7) casualty-related expenses/(recoveries), 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 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, plus real estate depreciation and amortization and
impairment charges. We compute FFO in accordance with NAREIT's
definition. Our presentation differs slightly in that we begin with
net income (loss) before adjusting for amounts attributable to (1)
noncontrolling interests in consolidated joint ventures and (2)
redeemable noncontrolling interests in the OP and we show the
combined amounts attributable to such noncontrolling interests as
an adjustment to arrive at FFO attributable to common
stockholders.
Core FFO makes certain adjustments to FFO, which are either not
likely to occur on a regular basis or are otherwise not
representative of the ongoing operating performance of our
Portfolio. Core FFO adjusts FFO to remove items such as losses on
extinguishment of debt and modification costs (includes prepayment
penalties and defeasance costs incurred and the write-off of
unamortized deferred financing costs and fair market value
adjustments of assumed debt related to the retirement of debt and
costs incurred in connection with a debt modification that are
expensed), casualty-related expenses and recoveries, the
amortization of deferred financing costs incurred in connection
with obtaining short-term debt financing, the ineffective portion
of fair value adjustments on our interest rate derivatives
designated as cash flow hedges, and the noncontrolling interests
related to these items.
AFFO makes certain adjustments to Core FFO. There is no industry
standard definition of AFFO and practice is divergent across the
industry. AFFO adjusts Core FFO to remove items such as
equity-based compensation expense and the amortization of deferred
financing costs incurred in connection with obtaining long-term
debt financing, and the noncontrolling interests related to these
items.
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.
Reconciliations
NOI and Same Store NOI for the three and six months ended
June 30, 2019 and 2018
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles NOI and our Q2 and YTD Same
Store NOI for the three and six months ended June 30, 2019 and 2018 to net income (loss), the
most directly comparable GAAP financial measure (in thousands):
|
|
For the Three
Months Ended
June
30,
|
|
|
For the Six Months
Ended
June
30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
Net income
(loss)
|
|
$
|
(1,987)
|
|
|
$
|
(1,666)
|
|
|
$
|
(6,360)
|
|
|
$
|
8,428
|
Adjustments to
reconcile net loss to NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,872
|
|
|
|
1,863
|
|
|
|
3,722
|
|
|
|
3,701
|
Corporate general and
administrative expenses
|
|
|
2,741
|
|
|
|
1,986
|
|
|
|
4,974
|
|
|
|
3,799
|
Casualty-related
recoveries
|
(1)
|
|
(43)
|
|
|
|
(690)
|
|
|
|
(7)
|
|
|
|
(666)
|
Property general and
administrative expenses
|
(2)
|
|
339
|
|
|
|
406
|
|
|
|
696
|
|
|
|
786
|
Depreciation and
amortization
|
|
|
13,066
|
|
|
|
11,038
|
|
|
|
28,464
|
|
|
|
22,410
|
Interest
expense
|
|
|
8,590
|
|
|
|
6,823
|
|
|
|
16,678
|
|
|
|
13,620
|
Loss on extinguishment
of debt and modification costs
|
|
|
—
|
|
|
|
78
|
|
|
|
—
|
|
|
|
629
|
Gain on sales of real
estate
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,742)
|
NOI
|
|
$
|
24,578
|
|
|
$
|
19,838
|
|
|
$
|
48,167
|
|
|
$
|
38,965
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
(3)
|
|
(6,004)
|
|
|
|
(13)
|
|
|
|
(11,017)
|
|
|
|
(232)
|
Operating
expenses
|
(3)
|
|
2,263
|
|
|
|
(51)
|
|
|
|
4,103
|
|
|
|
125
|
Same Store
NOI
|
(3)
|
$
|
20,837
|
|
|
$
|
19,774
|
|
|
$
|
41,253
|
|
|
$
|
38,858
|
NOI and Same Store NOI for the year ended December 31, 2018
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles our NOI and our 2017-2018
Same Store NOI for the year ended December
31, 2018 to net loss, the most directly comparable GAAP
financial measure (in thousands):
|
|
For the Year Ended
December 31, 2018
|
Net loss
|
|
$
|
(1,614)
|
Adjustments to
reconcile net loss to NOI:
|
|
|
|
Advisory
and administrative fees
|
|
|
7,474
|
Corporate
general and administrative expenses
|
|
|
7,808
|
Casualty-related recoveries
|
(1)
|
|
(663)
|
Property
general and administrative expenses
|
(2)
|
|
1,294
|
Depreciation and amortization
|
|
|
47,470
|
Interest
expense
|
|
|
28,572
|
Loss on
extinguishment of debt and modification costs
|
|
|
3,576
|
Gain on
sales of real estate
|
|
|
(13,742)
|
NOI
|
|
$
|
80,175
|
Less Non-Same
Store
|
|
|
|
Revenues
|
(3)
|
|
(23,012)
|
Operating
expenses
|
(3)
|
|
10,744
|
Same Store
NOI
|
(3)
|
$
|
67,907
|
(1)
|
Adjustment to net
income (loss) to exclude certain property operating expenses that
are casualty-related recoveries.
|
(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 and franchise tax
fees.
|
(3)
|
Amounts for the three
months ended June 30, 2019 and 2018 are derived from the operations
of our Q2 Same Store and Non-Same Store properties; amounts for the
six months ended June 30, 2019 and 2018 are derived from the
operations of our YTD Same Store and Non-Same Store properties;
amounts for the year ended December 31, 2018 is derived from the
operations of our 2017-2018 Same Store and Non-Same Store
properties.
|
Reconciliation of Debt to Net Debt
(dollar amounts
in thousands)
|
|
Q2
2019
|
|
|
Q2
2018
|
|
Total mortgage
debt
|
|
$
|
934,345
|
|
|
$
|
750,693
|
|
Credit
facilities
|
|
|
52,500
|
|
|
|
35,000
|
|
|
|
|
|
|
|
|
|
|
Adjustments to arrive
at net debt:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
(16,892)
|
|
|
|
(18,312)
|
|
Restricted cash held
for value-add upgrades and green improvements
|
|
|
(8,210)
|
|
|
|
(3,702)
|
|
Net Debt
|
|
$
|
961,743
|
|
|
$
|
763,679
|
|
Enterprise Value
(1)
|
|
$
|
1,950,743
|
|
|
$
|
1,353,679
|
|
Leverage
Ratio
|
|
|
49
|
%
|
|
|
56
|
%
|
(1)
|
Enterprise Value is
calculated as Market Capitalization plus Net Debt.
|
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 (loss)
(the most directly comparable GAAP financial measure) for the
periods presented below (in thousands):
|
|
For the Year
Ended
December 31,
2019
|
|
|
For the Three
Months Ended
September 30,
2019
|
|
|
Guidance
(1)
|
|
|
Guidance
(1)
|
Net income
|
|
$
|
111,856
|
|
|
$
|
121,854
|
Adjustments to
reconcile net loss to NOI:
|
|
|
|
|
|
|
|
Advisory
and administrative fees
|
|
|
7,500
|
|
|
|
1,875
|
Corporate
general and administrative expenses
|
|
|
9,434
|
|
|
|
2,212
|
Property
general and administrative expenses
|
(2)
|
|
1,300
|
|
|
|
325
|
Depreciation and amortization
|
|
|
60,464
|
|
|
|
16,000
|
Interest
expense
|
|
|
34,948
|
|
|
|
9,430
|
Loss on
extinguishment of debt and modification costs
|
|
|
2,900
|
|
|
|
2,900
|
Gain on
sales of real estate
|
|
|
(129,051)
|
|
|
|
(129,051)
|
NOI
|
|
$
|
99,351
|
|
|
$
|
25,545
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
Revenues
|
(3)
|
|
(53,624)
|
|
|
|
|
Operating
expenses
|
(3)
|
|
21,822
|
|
|
|
|
Same Store
NOI
|
(3)
|
$
|
67,549
|
|
|
|
|
(1)
|
Estimates shown for
full year and third quarter 2019 guidance. Assumptions made for
full year and third quarter 2019 NOI guidance include the Same
Store operating growth projections included in the "2019 Full Year
Guidance Summary" section of this release, the effect of the
acquisition of the Phoenix Portfolio, Summer's Landing, and the
other acquisition and disposition assumptions presented under "2019
Full Year Guidance Summary."
|
(2)
|
Adjustment to net
income 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 and franchise tax
fees.
|
(3)
|
Amounts are derived
from the results of operations of our pro forma Full Year 2019 Same
Store properties and Non-Same Store properties. There are 26
properties in our pro forma Full Year 2019 Same Store
pool.
|
The following table reconciles our FFO, Core FFO and AFFO
guidance to our net loss (the most directly comparable GAAP
financial measure) guidance for the year ended December 31, 2019 (in thousands, except per share
data):
|
|
For the Year
Ended
December 31,
2019
|
|
|
Mid-Point
|
Net income
|
|
$
|
111,856
|
Depreciation and
amortization
|
|
|
60,464
|
Gain on sales of real
estate
|
|
|
(129,051)
|
Adjustment for
noncontrolling interests
|
|
|
(130)
|
FFO attributable
to common stockholders
|
|
|
43,139
|
FFO per share -
diluted (1)
|
|
$
|
1.78
|
|
|
|
|
Loss on
extinguishment of debt and modification costs
|
|
|
2,900
|
Casualty-related
recoveries
|
|
|
(8)
|
Adjustment for
noncontrolling interests
|
|
|
(9)
|
Core FFO
attributable to common stockholders
|
|
|
46,022
|
Core FFO per share
- diluted (1)
|
|
$
|
1.90
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
1,981
|
Equity-based
compensation expense
|
|
|
5,154
|
Adjustment for
noncontrolling interests
|
|
|
(21)
|
AFFO attributable
to common stockholders
|
|
|
53,136
|
AFFO per share -
diluted (1)
|
|
$
|
2.19
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
24,274
|
(1)
|
For purposes of
calculating per share data, we assume a weighted average diluted
share count of approximately 24.3 million for the full year
2019.
|
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SOURCE NexPoint Residential Trust, Inc.