NexPoint Residential Trust (NYSE:NXRT) Posts Earnings Results, Beats Expectations 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, beating 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

NXRT stock opened at $24.61 on Wednesday. The company has a 50-day simple moving average of $27.60 and a 200 day simple moving average of $27.90. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 5.75. The company has a market capitalization of $627.33 million, a P/E ratio of -19.38 and a beta of 1.18. NexPoint Residential Trust has a fifty-two week low of $23.79 and a fifty-two week high of $34.87.

NexPoint Residential Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.12 annualized dividend and a yield of 8.6%. NexPoint Residential Trust’s dividend payout ratio is presently -166.93%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Federation des caisses Desjardins du Quebec boosted its position in shares of NexPoint Residential Trust by 27.4% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,796 shares of the financial services provider’s stock valued at $54,000 after purchasing an additional 386 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of NexPoint Residential Trust by 121.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the financial services provider’s stock valued at $88,000 after purchasing an additional 1,455 shares during the period. Kestra Advisory Services LLC purchased a new position in shares of NexPoint Residential Trust in the fourth quarter worth approximately $118,000. Strs Ohio purchased a new position in NexPoint Residential Trust during the 1st quarter worth approximately $158,000. Finally, Van ECK Associates Corp grew its holdings in shares of NexPoint Residential Trust by 10.8% during the third quarter. Van ECK Associates Corp now owns 5,472 shares of the financial services provider’s stock valued at $176,000 after buying an additional 535 shares in the last quarter. Institutional investors own 76.61% of the company’s stock.

NexPoint Residential Trust News Roundup

Here are the key news stories impacting NexPoint Residential Trust this week:

• Positive Sentiment: NXRT reported second-quarter revenue of $64.61 million, above the $63.78 million analyst consensus, while adjusted EPS of negative $0.34 was better than the expected negative $0.37. NexPoint Residential Trust Q2 Earnings Snapshot
• Positive Sentiment: Quarterly FFO was $0.66 per share, exceeding the $0.61 consensus estimate. NXRT also reported continued improvement in monthly lease trade-outs, suggesting better rental pricing momentum. NXRT Q2 FFO and Revenues Beat Estimates
• Positive Sentiment: Management issued 2026 EPS guidance of $2.45, substantially above the $2.16 analyst consensus. NXRT also deployed an initial $22.1 million fixed-rate term loan for its DST bridge-lending initiative, creating a potential new source of fee and interest income. NXRT Reports Second Quarter 2026 Results
• Neutral Sentiment: The company posted FFO of $15.2 million, Core FFO of $16.9 million and AFFO of $19.7 million, compared with $16.9 million, $18.0 million and $20.3 million, respectively, in the prior-year quarter. NXRT Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite the adjusted earnings beat, NXRT recorded a $8.6 million net loss, compared with a $7.0 million loss a year earlier. Its negative net margin and high debt-to-equity ratio of 5.75 may have amplified investor concerns about profitability and financial leverage.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on NXRT shares. Truist Financial lowered their price objective on shares of NexPoint Residential Trust from $27.00 to $26.00 and set a “hold” rating for the company in a research report on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft set a $18.00 target price on NexPoint Residential Trust in a report on Monday, July 20th. Weiss Ratings reiterated a “sell (d+)” rating on shares of NexPoint Residential Trust in a research report on Friday. Zacks Research raised NexPoint Residential Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. Finally, Wall Street Zen upgraded 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 issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, NexPoint Residential Trust currently has an average rating of “Hold” and a consensus price target of $22.00.

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.