NXRT Refinances Venue on Camelback, Pays Down
$17.5 million on Credit Facility and
Executes Value-Add Strategy
DALLAS, April 25,
2023 /PRNewswire/ -- NexPoint Residential Trust,
Inc. (NYSE:NXRT) reported financial results for the first quarter
ended March 31, 2023.
Highlights
- NXRT1 reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(3.9)M, $19.3M,
$18.6M and $21.0M, respectively, attributable to common
stockholders for the quarter ended March 31,
2023, compared to Net Loss, FFO, Core FFO and AFFO of
$(4.7)M, $19.0M, $20.1M and
$22.3M, respectively, attributable to
common stockholders for the quarter ended March 31, 2022.
- For the three months ended March 31,
2023, Q1 Same Store properties3 average effective
rent, total revenue and NOI2 increased 13.3%, 11.1% and
9.4%, respectively and occupancy decreased 30 bps from the prior
year period.
- The weighted average effective monthly rent per unit across all
40 properties held as of March 31,
2023 (the "Portfolio"), consisting of 15,020
units4, was $1,487, while
physical occupancy was 94.0%.
- NXRT paid a first quarter dividend of $0.42 per share of common stock on March 31, 2023.
- During the first quarter, NXRT refinanced Venue on Camelback
and paid down $17.5 million of the
corporate credit facility through refinancing proceeds and
available cash. As of March 31, 2023,
there was $57.0 million in aggregate
principal outstanding under our corporate credit facility.
- During the first quarter, for the properties in our Portfolio,
we completed 494 full and partial upgrades and leased 565 upgraded
units, achieving an average monthly rent premium of $153 and a 21.2% ROI5.
- Since inception, for the properties currently in our Portfolio,
we have completed 8,127 full and partial, 4,914 kitchen and laundry
appliances and 10,423 technology packages, resulting in a
$153, $47 and $45 average
monthly rental increase per unit and a 21.8%, 65.6% and 37.4% ROI,
respectively.
- 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" 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 36 properties encompassing 13,534 units of apartment space in
our Same Store pool for the three months ended March 31, 2023 (our "Q1 Same Store" properties).
The same store unit count excludes 107 units that are currently
down due to casualty events (Rockledge: 22 units, Versailles: 17 units, Silverbrook: 16 units,
Arbors of Brentwood: 16 units, Six
Forks Station: 14 units, Bella Solara: 8 units, Versailles II: 7
units, Summers Landing: 4 units, Parc500: 2 unit and Avant at
Pembroke Pines: 1 unit).
- Total number of units owned in our Portfolio as of March 31, 2023 is 15,127, however 107 units are
currently down due to casualty events (Rockledge: 22 units, Versailles: 17 units, Silverbrook: 16 units,
Arbors of Brentwood: 16 units, Six
Forks Station: 14 units, Bella Solara: 8 units, Versailles II: 7
units, Summers Landing: 4 units, Parc500: 2 unit and Avant at
Pembroke Pines: 1 unit).
- We define Return on Investment ("ROI") as the sum of the actual
rent premium divided by the sum of the total cost.
First Quarter 2023 Financial Results
- Total revenues were $69.2 million
for the first quarter of 2023, compared to $60.8 million for the first quarter of 2022.
- Net loss for the first quarter of 2023 totaled $(3.9) million, or loss of $(0.15) per diluted share, which included
$23.3 million of depreciation and
amortization expense. This compared to net loss of $(4.7) million, or loss of $(0.18) per diluted share, for the first quarter
of 2022, which included $23.7 million
of depreciation and amortization expense.
- The change in our net loss of $(3.9)
million for the three months ended March 31, 2023 as compared to our net loss of
$(4.7) million for the three months
ended March 31, 2022 primarily
relates to increases in rental income, partially offset by
increases in depreciation and interest expense.
- For the first quarter of 2023, NOI was $41.1 million on 40 properties, compared to
$36.7 million for the first quarter
of 2022 on 39 properties.
- For the first quarter of 2023, Q1 Same Store NOI increased 9.4%
to $37.8 million, compared to
$34.5 million for the first quarter
of 2022.
- For the first quarter of 2023, FFO totaled $19.3 million, or $0.74 per diluted share, compared to $19.0 million, or $0.73 per diluted share, for the first quarter of
2022.
- For the first quarter of 2023, Core FFO totaled $18.6 million, or $0.71 per diluted share, compared to $20.1 million, or $0.77 per diluted share, for the first quarter of
2022.
- For the first quarter of 2023, AFFO totaled $21.0 million, or $0.81 per diluted share, compared to $22.3 million, or $0.85 per diluted share, for the first quarter of
2022.
First Quarter Earnings Conference Call
NexPoint Residential Trust, Inc., ("NXRT" or the "Company"),
(NYSE:NXRT) will host a call on Tuesday,
April 25, 2023, at 11:00 a.m.
ET (10:00 a.m. CT), to discuss
its first quarter 2023 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,
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, May 9, 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 room for future rent growth, forecasted submarket
deliveries, 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 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, estimated value-add expenditures, debt payments,
outstanding debt and shares outstanding, net income and NOI
guidance for the second quarter and full year 2023 and the related
assumptions, planned value-add programs, including projected
average rent, 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.
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 months ended March
31, 2023 and 2022 (in thousands, except per share
amounts):
|
|
For the Three Months
Ended March 31,
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
%
Change
|
|
Net loss
|
|
$
|
(3,898)
|
|
|
$
|
(4,667)
|
|
|
|
16.5
|
%
|
Depreciation and
amortization
|
|
|
23,266
|
|
|
|
23,718
|
|
|
|
-1.9
|
%
|
Adjustment for
noncontrolling interests
|
|
|
(73)
|
|
|
|
(57)
|
|
|
|
28.1
|
%
|
FFO attributable to
common stockholders
|
|
|
19,295
|
|
|
|
18,994
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$
|
0.75
|
|
|
$
|
0.74
|
|
|
|
1.7
|
%
|
FFO per share -
diluted
|
|
$
|
0.74
|
|
|
$
|
0.73
|
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on extinguishment
of debt and modification costs
|
|
|
(122)
|
|
|
|
—
|
|
|
|
0.0
|
%
|
Casualty-related
expenses/(recoveries)
|
|
|
(1,706)
|
|
|
|
1,047
|
|
|
N/M
|
|
Casualty loss
(gain)
|
|
|
814
|
|
|
|
(128)
|
|
|
N/M
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
330
|
|
|
|
182
|
|
|
N/M
|
|
Adjustment for
noncontrolling interests
|
|
|
2
|
|
|
|
(4)
|
|
|
N/M
|
|
Core FFO
attributable to common stockholders
|
|
|
18,613
|
|
|
|
20,091
|
|
|
|
-7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share -
basic
|
|
$
|
0.73
|
|
|
$
|
0.78
|
|
|
|
-7.3
|
%
|
Core FFO per share -
diluted
|
|
$
|
0.71
|
|
|
$
|
0.77
|
|
|
|
-6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
438
|
|
|
|
386
|
|
|
|
13.4
|
%
|
Equity-based
compensation expense
|
|
|
1,966
|
|
|
|
1,876
|
|
|
|
4.8
|
%
|
Adjustment for
noncontrolling interests
|
|
|
(9)
|
|
|
|
(7)
|
|
|
|
28.6
|
%
|
AFFO attributable to
common stockholders
|
|
|
21,008
|
|
|
|
22,346
|
|
|
|
-6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share -
basic
|
|
$
|
0.82
|
|
|
$
|
0.87
|
|
|
|
-5.9
|
%
|
AFFO per share -
diluted
|
|
$
|
0.81
|
|
|
$
|
0.85
|
|
|
|
-5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
25,599
|
|
|
|
25,620
|
|
|
|
-0.1
|
%
|
Weighted average
common shares outstanding - diluted
|
(1)
|
|
26,075
|
|
|
|
26,193
|
|
|
|
-0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.420
|
|
|
$
|
0.380
|
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss Coverage -
diluted
|
(2)
|
-0.36x
|
|
|
-0.47x
|
|
|
|
-24.6
|
%
|
FFO Coverage -
diluted
|
(2)
|
1.76x
|
|
|
1.91x
|
|
|
|
-7.7
|
%
|
Core FFO Coverage -
diluted
|
(2)
|
1.70x
|
|
|
2.02x
|
|
|
|
-15.8
|
%
|
AFFO Coverage -
diluted
|
(2)
|
1.92x
|
|
|
2.25x
|
|
|
|
-14.6
|
%
|
(1)
|
The Company uses actual
diluted weighted average common shares outstanding when in a
dilutive position for FFO, Core FFO and AFFO.
|
(2)
|
Indicates coverage
ratio of Net Loss/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) 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 loss on extinguishment of debt and modification costs,
(6) casualty-related expenses/(recoveries) and casualty gains
(losses) and (7) 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), 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.
Reconciliations
NOI and Same Store NOI for the Three Months Ended
March 31, 2023 and 2022
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles NOI and our Q1 Same Store
NOI for the three months ended March 31,
2023 and 2022 to net loss, the most directly comparable GAAP
financial measure (in thousands):
|
|
For the Three Months
Ended March 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Net loss
|
|
$
|
(3,898)
|
|
|
$
|
(4,667)
|
|
|
Adjustments to
reconcile net loss to NOI:
|
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,889
|
|
|
|
1,843
|
|
|
Corporate general and
administrative expenses
|
|
|
3,367
|
|
|
|
3,486
|
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
(1,706)
|
|
|
|
1,047
|
|
|
Casualty
gains
|
|
|
814
|
|
|
|
(128)
|
|
|
Property general and
administrative expenses
|
(2)
|
|
781
|
|
|
|
738
|
|
|
Depreciation and
amortization
|
|
|
23,266
|
|
|
|
23,718
|
|
|
Interest
expense
|
|
|
16,739
|
|
|
|
10,636
|
|
|
Gain on extinguishment
of debt and modification costs
|
|
|
(122)
|
|
|
|
—
|
|
|
NOI
|
|
$
|
41,130
|
|
|
$
|
36,673
|
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
(6,579)
|
|
|
|
(4,403)
|
|
|
Operating
expenses
|
|
|
3,199
|
|
|
|
2,302
|
|
|
Operating
income
|
|
|
—
|
|
|
|
(52)
|
|
|
Same Store
NOI
|
|
$
|
37,750
|
|
|
$
|
34,520
|
|
|
(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.
|
Reconciliation of Debt to Net Debt
(dollar amounts in
thousands)
|
|
Q1
2023
|
|
|
Q1
2022
|
|
Total mortgage
debt
|
|
$
|
1,621,634
|
|
|
$
|
1,280,765
|
|
Credit
facilities
|
|
|
57,000
|
|
|
|
335,000
|
|
Total Debt
|
|
|
1,678,634
|
|
|
|
1,615,765
|
|
Adjustments to arrive
at net debt:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
(14,142)
|
|
|
|
(99,538)
|
|
Restricted cash held
for value-add upgrades and green improvements
|
|
|
(6,988)
|
|
|
|
(14,057)
|
|
Net Debt
|
|
$
|
1,657,504
|
|
|
$
|
1,502,170
|
|
Enterprise Value
(1)
|
|
$
|
2,777,504
|
|
|
$
|
3,823,170
|
|
Leverage
Ratio
|
|
|
60
|
%
|
|
|
39
|
%
|
(1)
|
Enterprise Value is
calculated as Market Capitalization plus Net Debt.
|
Guidance Reconciliations of NOI, Same Store NOI, 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,
2023
|
|
|
For the Three Months
Ended
June 30, 2023
|
|
|
|
Mid-Point
(1)
|
|
|
Mid-Point
(1)
|
|
Net income
(loss)
|
|
$
|
26,085
|
|
|
$
|
35,836
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
7,610
|
|
|
|
1,893
|
|
Corporate general and
administrative expenses
|
|
|
16,172
|
|
|
|
4,268
|
|
Property general and
administrative expenses
|
(2)
|
|
1,243
|
|
|
|
757
|
|
Depreciation and
amortization
|
|
|
95,707
|
|
|
|
24,676
|
|
Interest
expense
|
|
|
64,192
|
|
|
|
16,231
|
|
Casualty-related
recoveries
|
|
|
814
|
|
|
|
—
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
672
|
|
|
|
794
|
|
Gain on sales of real
estate
|
|
|
(42,808)
|
|
|
|
(42,808)
|
|
NOI
|
(3)
|
$
|
169,687
|
|
|
$
|
41,647
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
Revenues
|
(4)
|
|
(18,077)
|
|
|
|
|
|
Operating
expenses
|
(4)
|
|
7,738
|
|
|
|
|
|
Same Store
NOI
|
(4)
|
$
|
159,348
|
|
|
|
|
|
(1)
|
Mid-Point estimates
shown for full year and second quarter 2023 guidance. Assumptions
made for full year and second 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 and Stone Creek at
Old Farm, and considers a commensurate volume of capital
recycling.
|
(4)
|
Year-over-year growth
for the Full Year 2023 pro forma Same Store pool (36
properties).
|
The following table reconciles our NOI to our net income (loss)
for the years ended December 31, 2022
and 2021 and the three months ended December
31, 2022 (in thousands):
|
|
For the Year Ended
December 31,
|
|
|
For the Three
Months
Ended December 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
Net income
(loss)
|
|
$
|
(9,291)
|
|
|
$
|
23,106
|
|
|
$
|
3,802
|
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
7,547
|
|
|
|
7,631
|
|
|
|
1,932
|
|
|
Corporate general and
administrative expenses
|
|
|
14,670
|
|
|
|
11,966
|
|
|
|
3,554
|
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
1,119
|
|
|
|
(199)
|
|
|
|
456
|
|
|
Casualty
gains
|
|
|
(2,506)
|
|
|
|
(2,595)
|
|
|
|
(2,149)
|
|
|
Property general and
administrative expenses
|
(2)
|
|
3,600
|
|
|
|
2,655
|
|
|
|
1,191
|
|
|
Depreciation and
amortization
|
|
|
97,648
|
|
|
|
86,878
|
|
|
|
23,158
|
|
|
Interest
expense
|
|
|
50,587
|
|
|
|
44,623
|
|
|
|
15,783
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
8,734
|
|
|
|
912
|
|
|
|
8,734
|
|
|
Gain on sales of real
estate
|
|
|
(14,684)
|
|
|
|
(46,214)
|
|
|
|
(14,684)
|
|
|
NOI
|
|
$
|
157,424
|
|
|
$
|
128,763
|
|
|
$
|
41,777
|
|
|
(1)
|
Adjustment to net
income to exclude certain property operating expenses that are
casualty-related expenses/(recoveries).
|
(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, centralized leasing service
and franchise tax fees.
|
The following table reconciles our FFO, Core FFO and AFFO
guidance to our net income (loss) (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
|
|
$
|
26,085
|
|
Depreciation and
amortization
|
|
|
95,707
|
|
Gain on sales of real
estate
|
|
|
(42,808)
|
|
Adjustment for
noncontrolling interests
|
|
|
(255)
|
|
FFO attributable to
common stockholders
|
|
|
78,729
|
|
FFO per share -
diluted (1)
|
|
$
|
3.02
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
672
|
|
Casualty-related
recoveries
|
|
|
(892)
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
1,279
|
|
Core FFO
attributable to common stockholders
|
|
|
79,788
|
|
Core FFO per share -
diluted (1)
|
|
$
|
3.06
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
1,829
|
|
Equity-based
compensation expense
|
|
|
9,438
|
|
Adjustment for
noncontrolling interests
|
|
|
(38)
|
|
AFFO attributable to
common stockholders
|
|
|
91,017
|
|
AFFO per share -
diluted (1)
|
|
$
|
3.49
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
26,109
|
|
(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.
|
The following table reconciles our calculations of FFO, Core FFO
and AFFO to net income, the most directly comparable GAAP financial
measure, for the years ended December 31,
2022 and 2021 (in thousands, except per share amounts):
|
|
For the Year Ended
December 31,
|
|
|
2022
|
|
|
2021
|
|
|
Net income
(loss)
|
|
$
|
(9,291)
|
|
|
$
|
23,106
|
|
|
Depreciation and
amortization
|
|
|
97,648
|
|
|
|
86,878
|
|
|
Gain on sales of real
estate
|
|
|
(14,684)
|
|
|
|
(46,214)
|
|
|
Adjustment for
noncontrolling interests
|
|
|
(276)
|
|
|
|
(191)
|
|
|
FFO attributable to
common stockholders
|
|
|
73,397
|
|
|
|
63,579
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$
|
2.87
|
|
|
$
|
2.53
|
|
|
FFO per share -
diluted
|
|
$
|
2.81
|
|
|
$
|
2.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
8,734
|
|
|
|
912
|
|
|
Casualty-related
expenses/(recoveries)
|
|
|
1,119
|
|
|
|
(200)
|
|
|
Casualty
gains
|
|
|
(2,506)
|
|
|
|
(2,595)
|
|
|
Pandemic
expense
|
(1)
|
|
4
|
|
|
|
50
|
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
1,083
|
|
|
|
737
|
|
|
Adjustment for
noncontrolling interests
|
|
|
(31)
|
|
|
|
4
|
|
|
Core FFO
attributable to common stockholders
|
|
|
81,800
|
|
|
|
62,487
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share -
basic
|
|
$
|
3.19
|
|
|
$
|
2.48
|
|
|
Core FFO per share -
diluted
|
|
$
|
3.13
|
|
|
$
|
2.43
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
1,696
|
|
|
|
1,460
|
|
|
Equity-based
compensation expense
|
|
|
7,911
|
|
|
|
6,997
|
|
|
Adjustment for
noncontrolling interests
|
|
|
(37)
|
|
|
|
(25)
|
|
|
AFFO attributable to
common stockholders
|
|
|
91,370
|
|
|
|
70,919
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share -
basic
|
|
$
|
3.57
|
|
|
$
|
2.82
|
|
|
AFFO per share -
diluted
|
|
$
|
3.49
|
|
|
$
|
2.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
|
25,610
|
|
|
|
25,170
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
26,152
|
|
|
|
25,760
|
|
|
(1)
|
Represents additional
cleaning, disinfecting and other costs incurred at the properties
related to COVID-19 that are not reflective of the continuing
operations of the properties.
|
Contact:
Investor Relations
Kristen Thomas
IR@nexpoint.com
(214) 276-6300
Media inquiries: Pro-NexPoint@prosek.com
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SOURCE NexPoint Residential Trust, Inc.