NexPoint Residential Trust (NYSE:NXRT) Posts Earnings Results, Beats Estimates By $0.03 EPS

NexPoint Residential Trust (NYSE:NXRT) posted its quarterly earnings results on Tuesday. The financial services provider reported ($0.34) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.37) by $0.03, FiscalAI reports. The business had revenue of $64.61 million for the quarter, compared to analyst estimates of $63.78 million. NexPoint Residential Trust had a negative return on equity of 10.30% and a negative net margin of 12.67%. NexPoint Residential Trust updated its FY 2026 guidance to 2.450-2.450 EPS.

Here are the key takeaways from NexPoint Residential Trust’s conference call:

• 2026 core FFO guidance was reduced to a midpoint of $2.45 per share from $2.57, primarily due to higher projected interest expense and a slower same-store revenue recovery. Same-store NOI guidance was also lowered to a midpoint decline of 1%.
• Higher forward SOFR assumptions and the expiration of approximately $717.5 million of swap protection in September are expected to increase full-year interest expense to about $71.2 million. Management estimates the rate-related impact at roughly $0.16 per share for the remainder of the year.
• Operating trends improved during the quarter, with same-store revenue deterioration narrowing to 0.6% year over year, occupancy at 93.6%, concessions declining sharply, and bad debt improving. Blended lease trade-outs improved from negative 1.7% in April to positive 0.3% in July, supporting management’s expectation for slightly positive new-lease pricing in the fourth quarter.
• Expense performance is outperforming expectations, prompting management to reduce its full-year same-store expense growth outlook to approximately 2.1% from 3.5%. Lower real estate taxes, insurance costs, and payroll expenses are offsetting higher repairs, maintenance, marketing, and utilities.
• Management highlighted a supportive longer-term Sun Belt outlook as new apartment supply falls and renter demand remains strong, but remaining 2026 deliveries continue to pressure markets including Nashville, North Charlotte, South Las Vegas, and parts of Orlando. The company ended the quarter with approximately $133.5 million of liquidity, no material debt maturities until 2028, and plans to pursue capital recycling, deleveraging, and share repurchases.

NexPoint Residential Trust Stock Performance

Shares of NXRT traded down $0.32 during mid-day trading on Tuesday, reaching $25.59. The company’s stock had a trading volume of 53,199 shares, compared to its average volume of 220,473. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 5.75. The business has a 50-day simple moving average of $27.70 and a two-hundred day simple moving average of $27.94. NexPoint Residential Trust has a 1-year low of $23.79 and a 1-year high of $34.87. The stock has a market cap of $652.42 million, a P/E ratio of -20.15 and a beta of 1.18.

NexPoint Residential Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 8.3%. The ex-dividend date of this dividend is Tuesday, September 15th. NexPoint Residential Trust’s dividend payout ratio (DPR) is presently -166.93%.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft set a $18.00 target price on NexPoint Residential Trust in a research report on Monday, July 20th. Zacks Research raised NexPoint Residential Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 27th. Truist Financial decreased their target price on NexPoint Residential Trust from $27.00 to $26.00 and set a “hold” rating for the company in a research note on Tuesday, June 30th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of NexPoint Residential Trust in a research report on Friday. Finally, Wall Street Zen raised NexPoint Residential Trust from a “sell” rating to a “hold” rating in a research note on Saturday, July 4th. One analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $22.00.

Hedge Funds Weigh In On NexPoint Residential Trust

Several institutional investors and hedge funds have recently made changes to their positions in the company. Marshall Wace LLP acquired a new position in shares of NexPoint Residential Trust during the 4th quarter worth approximately $257,000. Abel Hall LLC acquired a new stake in NexPoint Residential Trust in the third quarter valued at about $347,000. Mercer Global Advisors Inc. ADV acquired a new stake in shares of NexPoint Residential Trust in the 3rd quarter valued at approximately $207,000. BNP Paribas Financial Markets grew its stake in shares of NexPoint Residential Trust by 7.4% during the second quarter. BNP Paribas Financial Markets now owns 10,971 shares of the financial services provider’s stock worth $366,000 after buying an additional 760 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in NexPoint Residential Trust by 4.9% in the second quarter. The Manufacturers Life Insurance Company now owns 8,546 shares of the financial services provider’s stock valued at $285,000 after purchasing an additional 402 shares during the last quarter. Institutional investors and hedge funds own 76.61% of the company’s stock.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single‐family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi‐family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single‐family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.