DALLAS, Sept. 25,
2023 /PRNewswire/ -- NexPoint Residential Trust, Inc.
("NXRT" or the "Company") (NYSE: NXRT) announced today the closing
of the sale of Silverbrook in Dallas,
TX, a 642-unit property built in 1982. The Company
acquired the property for $30.4
million on January 31, 2014,
and completed an extensive repositioning and value-add initiative,
improving the common area amenities and a significant portion of
the unit interiors. As of September
22, 2023, the property was leased at 93.76% with a weighted
average effective monthly rent of approximately $1,096. Net proceeds from the sale were
approximately $19.5M, delivering a
trailing nominal cap rate of 4.55%, a 34.0% levered internal rate
of return and a 6.14x equity multiple, each of which well exceeded
expectations. Management used the net proceeds from the sale
to make a $16 million paydown on the
Company's corporate credit facility on September 25, 2023, continuing our strategic
de-leveraging and balance sheet improvement initiatives. This
paydown reduced the drawn balance on the facility to $41 million, an 88% reduction from September 30, 2022.
Additionally, the Company is still on track to sell Old Farm in
Houston, TX, with an expected
closing in early Q4 2023.
With the completion of these sales, the Company remains
committed to paying off the outstanding balance on the corporate
credit facility in early Q4.
"NXRT is excited about the closing of Silverbrook and continues
executing on our strategic objectives to sell out of our positions
in the Houston market, Timber
Creek and Radbourne in Charlotte
and pay off our most expensive debt capital. NXRT is
committed to unlocking liquidity the Company can use to repurchase
shares and/or pay off higher property-level debt that will be
accretive to future growth.," said Matt
McGraner, Chief Investment Officer.
About NXRT
NexPoint Residential Trust is a publicly traded REIT, with its
shares listed on the New York Stock Exchange under the symbol
"NXRT," primarily focused on acquiring, owning and operating
well-located middle-income multifamily properties with "value-add"
potential in large cities and suburban submarkets of large cities,
primarily in the Southeastern and Southwestern United States. NXRT is externally
advised by NexPoint Real Estate Advisors, L.P., an affiliate of
NexPoint Advisors, L.P., an SEC-registered investment advisor which
has extensive real estate experience.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on management's current expectations, assumptions
and beliefs. Forward-looking statements can often be identified by
words such as "expect," "should," "continue" and similar
expressions, and variations or negatives of these words. These
forward-looking statements include, but are not limited to,
statements regarding the expected closing of the sale of Old Farm,
the expected payoff of the corporate credit facility and related
timing , continuing to execute on its strategic objectives, and
that NXRT is committed to unlocking liquidity which the Company can
use to repurchase common stock and/or pay off higher property-level
debt that will be accretive to future growth pursue internal and
external growth strategies. 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 that the Old
Farm sale does not close or is delayed and those described in
our filings with the Securities and Exchange Commission,
particularly those described in our Annual Report on Form 10-K.
Readers should not place undue reliance on any forward-looking
statements and are encouraged to review the Company's most recent
Annual Report on Form 10-K and other filings with the SEC for a
more complete discussion of the risks and other factors that could
affect any forward-looking statements. The statements made herein
speak only as of the date of this release and except as required by
law, NXRT does not undertake any obligation to publicly update or
revise any forward-looking statements.
Contact:
Kristen
Thomas
Investor
Relations
IR@nexpoint.com
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SOURCE NexPoint Residential Trust, Inc.