Key Highlights

  • The net loss to common stockholders was USD 11.5 million, or USD 0.45 per share, against USD 7.8 million.
  • Core FFO was USD 13.4 million, or USD 0.52 per share, and AFFO was USD 16.2 million.
  • Same-store NOI fell 8.2% to USD 35.6 million, with occupancy down 70 basis points and rent down 0.7%.
  • The full-year Core FFO guidance midpoint was reset to USD 2.22 per share from USD 2.45.

Operating Income Declines

NexPoint Residential Trust, Inc. (NYSE:NXRT), the Dallas-based apartment landlord, reported a third-quarter 2026 net loss attributable to common stockholders of USD 11.5 million, or USD 0.45 per diluted share, compared with USD 7.8 million, or USD 0.31, a year earlier. Total revenues rose to USD 64.5 million from USD 62.8 million, but property operating expenses and interest expense rose by more, and net Operating Income was USD 36.6 million on 36 properties, against USD 38.8 million on 35 properties.

On a same-store basis, covering 35 properties and 12,980 units, NOI fell 8.2% to USD 35.6 million from USD 38.8 million. Total Revenue declined 0.7%, occupancy fell 70 basis points and average effective rent fell 0.7%. For the nine months, same-store revenue fell 1.2% and NOI fell 4.6% to USD 109.3 million.

Analyst estimates were EPS of negative USD 0.41 against reported EPS of negative USD 0.45, and revenue of USD 64.9 million against reported revenue of USD 64.5 million.

Funds From Operations

FFO was USD 11.7 million, or USD 0.46 per diluted share, versus USD 15.9 million, or USD 0.63. Core FFO was USD 13.4 million, or USD 0.52, versus USD 17.7 million, or USD 0.70, and AFFO was USD 16.2 million, or USD 0.63, versus USD 20.2 million, or USD 0.80. Nine-month Core FFO was USD 47.6 million compared with USD 54.8 million.

The portfolio of 36 properties and 13,305 units had a weighted average effective monthly rent of USD 1,489 per unit and physical occupancy of 92.8% at September 30, 2026. The value-add program continued, with 708 full and partial upgrades completed in the quarter and 425 upgraded units leased at an average monthly rent premium of USD 42.54, a 21.1% return on investment.

Guidance and Leverage

The company revised guidance ranges and midpoints. Loss per diluted share now has a midpoint of negative USD 1.68 versus negative USD 1.54 before, and Core FFO per diluted share has a range of USD 2.17 to USD 2.27 with a midpoint of USD 2.22 versus USD 2.45. Same-store total revenue growth has a midpoint of negative 0.9% against 0.2% before, same-store expense growth is 4.4% against 2.1%, and same-store NOI growth is negative 4.3% against negative 1.0%. Acquisitions have a midpoint of USD 116 million versus USD 100 million, and the disposition midpoint of USD 100 million was reaffirmed.

Total Debt outstanding was USD 1,622.7 million at September 30, 2026 versus USD 1,503.2 million at the prior year end, of which USD 1.6 billion was floating rate debt, with swaps fixing 13% of floating Mortgage debt and an adjusted weighted average Interest Rate of 4.75%. The Leverage ratio of total debt to market Capitalization plus total debt was 77%, up from 65%. The company paid a Dividend of USD 0.53 per share on September 30, 2026, and the board approved the same amount payable on December 31, 2026.

Items to Follow

Same-store expense growth, the floating rate share of debt and execution of the disposition plan are the items to follow.