NexPoint Residential Trust, Inc. (NYSE:NXRT) has reported its financial results for the first quarter ended March 31, 2024, showcasing significant improvements compared to the same period in the previous year.
In the first quarter of 2024, NXRT reported net income, Funds from Operations (FFO), Core FFO, and Adjusted Funds from Operations (AFFO) of $26.3 million, $18.9 million, $19.6 million, and $22.6 million, respectively, attributable to common stockholders. This is a substantial improvement from the net loss and other metrics reported for the first quarter of 2023, which were $(3.9) million, $19.3 million, $18.6 million, and $21.0 million, respectively.
The company's Q1 same store properties saw a 3.6% increase in total revenue, a 4.0% increase in Net Operating Income (NOI), and a 30 basis points increase in occupancy compared to the same period last year. However, the average effective rent decreased by 0.4% from the prior year period.
The weighted average effective monthly rent per unit across all 37 properties held as of March 31, 2024, was $1,511, with a 94.6% physical occupancy rate.
During the first quarter, NXRT completed the sale of Old Farm for a sales price of $103.0 million and fully repaid the remaining drawn balance of $24.0 million on its corporate credit facility on March 5, 2024.
Furthermore, the company completed 59 full and partial upgrades and leased 59 upgraded units for the properties in its portfolio during the first quarter, achieving an average monthly rent premium of $240 and a 21.8% return on investment.
In terms of financial performance, total revenues were $67.6 million for the first quarter of 2024, compared to $69.2 million for the first quarter of 2023. However, net income for the first quarter of 2024 totaled $26.3 million, compared to a net loss of $(3.9) million for the first quarter of 2023.
NOI for the first quarter of 2024 was $41.1 million on 37 properties, compared to $41.1 million for the first quarter of 2023 on 40 properties. Additionally, Q1 same store NOI increased by 4.0% to $39.2 million, compared to $37.7 million for the first quarter of 2023.
The company will host a call on Tuesday, April 30, 2024, at 11:00 a.m. ET to discuss its first quarter 2024 financial results, which can be accessed through various means as mentioned in the press release.
NexPoint Residential Trust, Inc. is a publicly traded REIT 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. As a result of these announcements, the company's shares have moved 2.7% on the market, and are now trading at a price of $34.21. For the full picture, make sure to review NexPoint Residential Trust's 8-K report.
