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NexPoint Residential Trust Inc

NexPoint Residential Trust Inc

NXRT
$24.70USD↑+0.82%+0.20 today

MARKET CAP

633.6M

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$24 – $25

52W RANGE

$23
$35

AI Summary

Stalk
Buy NowMedium

NXRT is exhibiting an early repair phase with a Bullish Pivot Point pattern and price holding above rising 9EMA/21EMA, offering a buyable setup on a pullback into the EMA and 50-day SMA confluence. The medium-term bias is bullish despite a longer-term downtrend, so we recommend immediate participation via pullback interaction with moderate confidence.

  • ↑Sunbelt focus boosts same-store occupancy 30bps YoY to 93.6%.
  • ↑Dividend yield ~8.5% on $0.53/share payout, up 157% since inception.
  • ↓Q2 net loss widened to $8.6M vs $7.0M year-ago loss.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

NexPoint Residential Trust, Inc. (NYSE: NXRT) specializes in the acquisition and management of single-family rental homes, primarily concentrated in the rapidly growing Sunbelt states. The company is part of the real estate investment trust (REIT) sector and particularly leverages favorable demographic trends and housing market dynamics. While it is seeking to enhance its portfolio through value-add upgrades and technology integration, it faces challenges including rising interest rates and revenue growth pressures.

Bull says

  • ↑Sunbelt focus boosts same-store occupancy 30bps YoY to 93.6%.
  • ↑Dividend yield ~8.5% on $0.53/share payout, up 157% since inception.
  • ↑Management plans capital recycling and buybacks to close valuation gap.
  • ↑Tech improvements lift efficiency: self-guided tours now 26.2% of showings.
  • ↑Book-to-price ratio near 1.0 and high dividend yield suggest undervaluation.
  • ↑Demographic tailwinds: each 50bps homeownership decline creates 675k new renters.

Bear says

  • ↓Q2 net loss widened to $8.6M vs $7.0M year-ago loss.
  • ↓Core FFO fell to $0.66/share from $0.70/share in Q2 2025.
  • ↓Full-year FFO guidance cut to ~$2.45/share midpoint.
  • ↓Elevated leverage risk with major debt maturing in September.
  • ↓Negative profitability factors and interest-rate sensitivity weigh on returns.
  • ↓Same-store revenue growth guided to ~0.2%, signaling sluggish recovery.

Investment themes with NXRT

Residential REITs↑ +0.00%

Stable income from diversified rental housing portfolios

WELL · PSA · VTR

Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 04-30-2025bullish

Transcript signals

Bull points

  • Same-store rental revenue was 3.6% for the quarter, with 7 out of our 10 markets averaging at least 3% growth with our Charlotte and South Florida assets leading the way at 8.6% and 7.6% growth, respectively.
  • We're also pleased to report some continued moderation in expense growth for the quarter. First quarter same-store operating expenses were up just 1.9% year-over-year. Of note, marketing and payroll declined 8.4% and 6.2% respectively in year-over-year.
  • We're basically done with the tech packages... we go in an audit on an annual basis, what kind of bespoke upgrades we can do.

Bear points

  • We feel good with how the first quarter came in. Absorption was better than we thought. Bad debt was, as I said, 90 basis points better than we thought and occupancy was better than we thought. And obviously, renewal rates are -- and on the new lease side, we're negative 5%, 6%. As we get into the second and third quarter, we're underwriting still almost a gain to lease, and the GPR, we're underwriting a GPR down another 90 basis points in the second quarter and then another 40 basis points sequentially into the third quarter and another 90 basis points into the fourth quarter.
Read full transcript analysis ›