NXRT Continues to Experience Strong Revenue
Growth; Accelerates Rehab Pace for the Quarter
DALLAS, July 26,
2022 /PRNewswire/ -- NexPoint Residential Trust, Inc.
(NYSE:NXRT) reported financial results for the second quarter ended
June 30, 2022.
Highlights
- NXRT1 reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(7.8)M, $17.6M,
$20.3M and $22.7M, respectively, attributable to common
stockholders for the quarter ended June 30,
2022, compared to Net Loss, FFO, Core FFO, and AFFO of
$(3.4)M, $16.5M, $14.2M and
$16.3M, respectively, attributable to
common stockholders for the quarter ended June 30, 2021.
- NXRT reported Net Loss, FFO, Core FFO and AFFO of $(12.5)M, $36.6M,
$40.4M and $45.1M, respectively, attributable to common
stockholders for the six months ended June
30, 2022, compared to Net Loss, FFO, Core FFO, and AFFO of
$(10.3)M, $30.3M, $28.3M and
$32.4M, respectively, attributable to
common stockholders for the six months ended June 30, 2021.
- For the three months ended June 30,
2022, Q2 Same Store properties3 average effective
rent, total revenue and NOI2 increased 19.2%, 14.2% and
16.4%, respectively, and occupancy decreased 150 bps over the prior
year period.
- For the six months ended June 30,
2022, YTD Same Store properties3 average
effective rent, total revenue and NOI2 increased 19.2%,
12.7% and 16.4%, respectively, and occupancy decreased 150 bps over
the prior year period.
- The weighted average effective monthly rent per unit across all
41 properties held as of June 30,
2022 (the "Portfolio"), consisting of 15,3874
units, was $1,387, while physical
occupancy was 94.5%.
- On April 1, 2022, NXRT acquired
The Adair located in Sandy Springs,
Georgia, and Estates on Maryland located in Phoenix, Arizona for a combined purchase price
of $143.4 million.
- NXRT paid a second quarter dividend of $0.38 per share of common stock on June 30, 2022.
- During the six months ended June 30,
2022, through its at-the-market offering ("ATM program"),
NXRT issued 52,091 shares for approximately $4.3 million in gross proceeds.
- During the three months ended June 30,
2022, NXRT repurchased and retired 69,567 shares at a
weighted average price of $73.82 per
share. Since inception, NXRT has repurchased 2,451,722 shares at a
weighted average price of $27.07 per
share.
- During the second quarter, for the properties in our Portfolio,
we completed 650 full and partial upgrades and leased 609 upgraded
units, achieving an average monthly rent premium of $138 and a 24.9% ROI5.
- Since inception, for the properties currently in our Portfolio,
we have completed 6,834 full and partial upgrades, 4,724 kitchen
and laundry appliances, and 9,624 technology packages, resulting in
a $142, $48, and $43
average monthly rental increase per unit and a 21.8%, 69.7%, and
33.5% ROI, respectively.
1)
|
In this release, "we,"
"us," "our," the "Company," "NexPoint Residential Trust," and
"NXRT" each refer to NexPoint Residential Trust, Inc., a Maryland
corporation.
|
2)
|
FFO, Core FFO, AFFO and
NOI are non-GAAP measures. For a discussion of why we consider
these non-GAAP measures useful and reconciliations of FFO, Core
FFO, AFFO and NOI to net loss, see the "Definitions and
Reconciliations of Non-GAAP Measures", "FFO, Core FFO and AFFO" and
"NOI and Same Store NOI" sections of this release.
|
3)
|
We define "Same Store"
properties as properties that were in our Portfolio for the
entirety of the periods being compared. There are 34 properties
encompassing 13,433 units of apartment space in our Same Store pool
for the three months ended June 30, 2022 (our "Q2 Same Store"
properties) and 34 properties encompassing 13,433 units of
apartment space in our Same Store pool for the six months ended
June 30, 2022 (our "YTD Same Store" properties). The same store
unit count excludes 67 units that are currently down due to
casualty events (Silverbrook: 16 units, Arbors of Brentwood: 16
units, Timber Creek: 15 units, Venue at 8651: 8 units, Hollister
Place: 6 units, The Preserve at Terrell Mill: 3 units, Parc500: 2
units, and Bloom: 1 unit).
|
4)
|
Total units owned in
our Portfolio is 15,387, however 73 units are currently down due to
casualty events (Silverbrook: 16 units, Arbors of Brentwood: 16
units, Timber Creek: 15 units, Venue at 8651: 8 units, Hollister
Place: 6 units, Six Forks: 6 units, The Preserve at Terrell Mill: 3
units, Parc500: 2 units, and Bloom: 1 unit).
|
5)
|
We define Return on
Investment ("ROI") as the sum of the actual rent premium divided by
the sum of the total cost.
|
Second Quarter 2022 Financial Results
- Total revenues were $65.8 million
for the second quarter of 2022, compared to $52.6 million for the second quarter of
2021.
- Net loss for the second quarter of 2022 totaled $(7.8) million, or loss of $(0.30) per diluted share, which included
$25.5 million of depreciation and
amortization expense. This compared to a net loss of $(3.4) million, or earnings of $(0.14) per diluted share, for the second quarter
of 2021, which included $20.0 million
of depreciation and amortization expense.
- The change in our net loss of $(7.8)
million for the three months ended June 30, 2022 as compared to our net loss of
$(3.4) million for the three months
ended June 30, 2021 primarily relates
to a decrease in casualty gains and an increase in depreciation
expense, partially offset by an increase in total revenues.
- For the second quarter of 2022, NOI was $38.8 million on 41 properties, compared to
$30.2 million for the second quarter
of 2021 on 39 properties.
- For the second quarter of 2022, Q2 Same Store NOI increased
16.4% to $33.7 million, compared to
$28.9 million for the second quarter
of 2021.
- For the second quarter of 2022, FFO totaled $17.6 million, or $0.69 per diluted share, compared to $16.5 million, or $0.66 per diluted share, for the second quarter
of 2021.
- For the second quarter of 2022, Core FFO totaled $20.3 million, or $0.79 per diluted share, compared to $14.2 million, or $0.56 per diluted share, for the second quarter
of 2021.
- For the second quarter of 2022, AFFO totaled $22.7 million, or $0.89 per diluted share, compared to $16.3 million, or $0.65 per diluted share, for the second quarter
of 2021.
2022 Year to Date Financial Results
- Total revenues were $126.6
million for the six months ended June
30, 2022, compared to $104.4
million for the six months ended June
30, 2021.
- Net loss for the six months ended June
30, 2022 totaled $(12.5)
million, or loss of $(0.49)
per diluted share, which included $49.3
million of depreciation and amortization expense. This
compared to net loss of $(10.3)
million, or earnings of $(0.41) per diluted share, for the six months
ended June 30, 2021, which included
$40.7 million of depreciation and
amortization expense.
- The change in our net loss of $(12.5)
million for the six months ended June
30, 2022 as compared to our net loss of $(10.3) million for the six months ended
June 30, 2021 primarily relates to a
decrease in casualty gains and an increase in depreciation expense,
partially offset by an increase in total revenues.
- For the six months ended June 30,
2022, NOI was $75.4 million on
41 properties, compared to $60.0
million for the six months ended June
30, 2021 on 39 properties.
- For the six months ended June 30,
2022, Same Store NOI increased 16.4% to $66.9 million, compared to $57.4 million for the six months ended
June 30, 2021.
- For the six months ended June 30,
2022, FFO totaled $36.6
million, or $1.43 per diluted
share, compared to $30.3 million, or
$1.21 per diluted share, for the six
months ended June 30, 2021.
- For the six months ended June 30,
2022, Core FFO totaled $40.4
million, or $1.58 per diluted
share, compared to $28.3 million, or
$1.13 per diluted share, for the six
months ended June 30, 2021.
- For the six months ended June 30,
2022, AFFO totaled $45.1
million, or $1.76 per diluted
share, compared to $32.4 million, or
$1.29 per diluted share, for the six
months ended June 30, 2021.
Second Quarter Earnings Conference Call
NXRT will host a conference call on Tuesday, July 26, 2022 at 11:00 a.m. ET (10:00 am
CT), to discuss second quarter financial results. The
conference call can be accessed live over the phone by dialing
888-220-8474 or, for international callers, + 1 646-828-8193 and
using passcode Conference ID: 4498068. A live audio webcast
of the call will be available online at the Company's website,
https://nxrt.nexpoint.com (under "Resources"). An online
replay will be available shortly after the call on the Company's
website and continue to be available for 60 days.
A replay of the conference call will also be available through
Tuesday, August 2, 2022 by dialing
888-203-1112 or, for international callers, +1 719-457-0820 and
entering passcode 4498068.
About NXRT
NexPoint Residential Trust is a publicly traded REIT, with its
shares listed on the New York Stock Exchange under the symbol
"NXRT," 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. NXRT is externally
advised by NexPoint Real Estate Advisors, L.P., an affiliate of
NexPoint Advisors, L.P., an SEC-registered investment advisor,
which has extensive real estate experience. Our filings with the
Securities and Exchange Commission (the "SEC") are available on our
website, nxrt.nexpoint.com, under the "Financials" tab.
Cautionary Statement Regarding Forward-Looking
Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are based on management's current expectations, assumptions
and beliefs. Forward-looking statements can often be identified by
words such as "expect," "anticipate," "estimate," "may," "should,"
"plan" and similar expressions and variations or negatives of these
words. These forward-looking statements include, but are not
limited to, statements regarding NXRT's business and industry in
general, room for future rent growth, NXRT's guidance for financial
results for the full year 2022, including earnings per diluted
share, Core FFO per diluted share, same store rental income, same
store total revenue and same store NOI, and the related
assumptions, including expected acquisitions and dispositions,
shares outstanding and same store growth projections, NXRT's net
asset value and the related components and assumptions, including
anticipated full year and third quarter 2022 net income,
acquisitions and dispositions, pro forma adjustments for
acquisitions and dispositions, the NOI related to the acquired or
disposed of properties, the Cornerstone loan refinancing, estimated
value-add expenditures, debt payments, outstanding debt and shares
outstanding, NOI guidance for the third quarter 2022 and the
related assumptions, planned value-add programs, including
projected average rent, rent change and return on investment,
expected settlement of interest rate swaps and the effect on the
debt maturity schedule, rehab budgets and expected acquisitions and
dispositions. They are not guarantees of future results and are
subject to risks, uncertainties and assumptions that could cause
actual results to differ materially from those expressed in any
forward-looking statement, including the ultimate duration and
severity of the COVID-19 pandemic and the effectiveness of actions
taken, or actions that may be taken, by governmental authorities to
contain the outbreak or treat its impact, as well as those
described in greater detail in our filings with the Securities and
Exchange Commission, particularly those described in our Annual
Report on Form 10-K. Readers should not place undue reliance on any
forward-looking statements and are encouraged to review the
Company's most recent Annual Report on Form 10-K and other filings
with the SEC for a more complete discussion of the risks and other
factors that could affect any forward-looking statements. The
statements made herein speak only as of the date of this release
and except as required by law, NXRT does not undertake any
obligation to publicly update or revise any forward-looking
statements.
FFO, Core FFO and AFFO
The following table reconciles our calculations of FFO, Core FFO
and AFFO to net loss, the most directly comparable GAAP financial
measure, for the three and six months ended June 30, 2022 and 2021 (in thousands, except per
share amounts):
|
|
For the Three Months
Ended
June 30,
|
|
|
For the Six Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
% Change
(1)
|
|
|
Net loss
|
|
$
|
(7,827)
|
|
|
$
|
(3,418)
|
|
|
$
|
(12,494)
|
|
|
$
|
(10,318)
|
|
|
|
21.1
|
%
|
|
Depreciation and
amortization
|
|
|
25,548
|
|
|
|
19,986
|
|
|
|
49,266
|
|
|
|
40,744
|
|
|
|
20.9
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(72)
|
|
|
|
(50)
|
|
|
|
(129)
|
|
|
|
(91)
|
|
|
|
41.8
|
%
|
|
FFO attributable to
common stockholders
|
|
|
17,649
|
|
|
|
16,518
|
|
|
|
36,643
|
|
|
|
30,335
|
|
|
|
20.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$
|
0.69
|
|
|
$
|
0.66
|
|
|
$
|
1.43
|
|
|
$
|
1.21
|
|
|
|
18.2
|
%
|
|
FFO per share -
diluted
|
|
$
|
0.69
|
|
|
$
|
0.66
|
|
|
$
|
1.43
|
|
|
$
|
1.21
|
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
—
|
|
|
|
328
|
|
|
|
—
|
|
|
|
328
|
|
|
N/M
|
|
|
Casualty-related
expenses/(recoveries)
|
|
|
2,592
|
|
|
|
(435)
|
|
|
|
3,642
|
|
|
|
(392)
|
|
|
N/M
|
|
|
Casualty
gains
|
|
|
(229)
|
|
|
|
(2,379)
|
|
|
|
(357)
|
|
|
|
(2,379)
|
|
|
N/M
|
|
|
Pandemic
expense
|
|
|
—
|
|
|
|
12
|
|
|
|
—
|
|
|
|
35
|
|
|
N/M
|
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
326
|
|
|
|
140
|
|
|
|
505
|
|
|
|
349
|
|
|
|
44.7
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(10)
|
|
|
|
7
|
|
|
|
(14)
|
|
|
|
6
|
|
|
N/M
|
|
|
Core FFO
attributable to common stockholders
|
|
|
20,328
|
|
|
|
14,191
|
|
|
|
40,419
|
|
|
|
28,282
|
|
|
|
42.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share -
basic
|
|
$
|
0.79
|
|
|
$
|
0.56
|
|
|
$
|
1.58
|
|
|
$
|
1.13
|
|
|
|
39.8
|
%
|
|
Core FFO per share -
diluted
|
|
$
|
0.79
|
|
|
$
|
0.56
|
|
|
$
|
1.58
|
|
|
$
|
1.13
|
|
|
|
39.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
408
|
|
|
|
355
|
|
|
|
794
|
|
|
|
707
|
|
|
|
12.3
|
%
|
|
Equity-based
compensation expense
|
|
|
2,005
|
|
|
|
1,796
|
|
|
|
3,881
|
|
|
|
3,404
|
|
|
|
14.0
|
%
|
|
Adjustment for
noncontrolling interests
|
|
|
(11)
|
|
|
|
(6)
|
|
|
|
(17)
|
|
|
|
(12)
|
|
|
|
41.7
|
%
|
|
AFFO attributable to
common stockholders
|
|
|
22,730
|
|
|
|
16,336
|
|
|
|
45,077
|
|
|
|
32,381
|
|
|
|
39.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share -
basic
|
|
$
|
0.89
|
|
|
$
|
0.65
|
|
|
$
|
1.76
|
|
|
$
|
1.29
|
|
|
|
36.4
|
%
|
|
AFFO per share -
diluted
|
|
$
|
0.89
|
|
|
$
|
0.65
|
|
|
$
|
1.76
|
|
|
$
|
1.29
|
|
|
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common stock outstanding - basic
|
|
|
25,672
|
|
|
|
25,140
|
|
|
|
25,646
|
|
|
|
25,104
|
|
|
|
2.2
|
%
|
|
Weighted average
common stock outstanding - diluted
|
|
|
25,672
|
|
|
|
25,140
|
|
|
|
25,646
|
|
|
|
25,104
|
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
$
|
0.76
|
|
|
$
|
0.68
|
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Coverage -
diluted
|
(2)
|
1.81x
|
|
|
1.93x
|
|
|
1.88x
|
|
|
1.77x
|
|
|
|
6.13
|
%
|
|
Core FFO Coverage -
diluted
|
(2)
|
2.08x
|
|
|
1.65x
|
|
|
2.08x
|
|
|
1.66x
|
|
|
|
25.56
|
%
|
|
AFFO Coverage -
diluted
|
(2)
|
2.33x
|
|
|
1.90x
|
|
|
2.32x
|
|
|
1.89x
|
|
|
|
22.52
|
%
|
|
|
|
(1)
|
Represents the
percentage change for the six months ended June 30, 2022 compared
to the six months ended June 30, 2021.
|
(2)
|
Indicates coverage
ratio of FFO/Core FFO/AFFO per common share (diluted) over
dividends declared per common share during the period.
|
Definitions and Reconciliations of Non-GAAP Measures
Definitions
This presentation contains non-GAAP financial measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
so as to be different than the most directly comparable measure
calculated and presented in accordance with GAAP in the statements
of income, balance sheets or statements of cash flows of the
Company. The non-GAAP financial measures used within this
presentation are net operating income ("NOI"), funds from
operations attributable to common stockholders ("FFO"), FFO per
diluted share, Core FFO, Core FFO per diluted share, adjusted FFO
("AFFO"), AFFO per diluted share and net debt.
NOI is used by investors and our management to evaluate and
compare the performance of our properties to other comparable
properties, to determine trends in earnings and to compute the fair
value of our properties. NOI is calculated by adjusting net income
(loss) to add back (1) interest expense (2) advisory and
administrative fees, (3) the impact of depreciation and
amortization expenses as well as gains or losses from the sale of
operating real estate assets that are included in net income
computed in accordance with GAAP, if applicable, (4) corporate
general and administrative expenses, (5) other gains and losses
that are specific to us including loss on extinguishment of debt
and modification costs, if applicable, (6) casualty-related
expenses/(recoveries) and casualty gains (losses), (7) pandemic
expenses that are not reflective of continuing operations of the
properties and (8) property general and administrative expenses
that are not reflective of the continuing operations of the
properties or are incurred on behalf of the Company at the property
for expenses such as legal, professional, centralized leasing
service and franchise tax fees. We define "Same Store NOI" as NOI
for our properties that are comparable between periods. We view
Same Store NOI as an important measure of the operating performance
of our properties because it allows us to compare operating results
of properties owned for the entirety of the current and comparable
periods and therefore eliminates variations caused by acquisitions
or dispositions during the periods.
FFO is defined by the National Association of Real Estate
Investment Trusts ("NAREIT"), as net income (loss) computed in
accordance with GAAP, excluding gains or losses from real estate
dispositions, if applicable, plus real estate depreciation and
amortization. We compute FFO in accordance with NAREIT's
definition. Our presentation differs slightly in that we begin with
net income (loss) before adjusting for amounts attributable to
redeemable noncontrolling interests in the OP and we show the
amount attributable to such noncontrolling interests as an
adjustment to arrive at FFO attributable to common
stockholders.
Core FFO makes certain adjustments to FFO, which are either not
likely to occur on a regular basis or are otherwise not
representative of the ongoing operating performance of our
Portfolio. Core FFO adjusts FFO to remove items such as losses on
extinguishment of debt and modification costs (includes prepayment
penalties and defeasance costs incurred on the early payment of
debt, the write-off of unamortized deferred financing costs and
fair market value adjustments of assumed debt related to the
retirement of debt, costs incurred in connection with a debt
modification that are not capitalized as deferred financing costs
and other costs incurred in a debt extinguishment that are
expensed), if applicable, casualty-related expenses/and recoveries
and gains (losses), pandemic expenses, the amortization of deferred
financing costs incurred in connection with obtaining short-term
debt financing, and the noncontrolling interests (as described
above) related to these items.
AFFO makes certain adjustments to Core FFO. There is no industry
standard definition of AFFO and practice is divergent across the
industry. AFFO adjusts Core FFO to remove items such as
equity-based compensation expense and the amortization of deferred
financing costs incurred in connection with obtaining long-term
debt financing, and the noncontrolling interests related to these
items.
Net debt is calculated by subtracting cash and cash equivalents
and restricted cash held for value-add upgrades and green
improvements from total debt outstanding.
We believe that the use of NOI, FFO, Core FFO, AFFO and net
debt, combined with the required GAAP presentations, improves the
understanding of operating results and debt levels of real estate
investment trusts ("REITs") among investors and makes comparisons
of operating results and debt levels among such companies more
meaningful. While NOI, FFO, Core FFO, AFFO and net debt are
relevant and widely used measures of operating performance and debt
levels of REITs, they do not represent cash flows from operations,
net income (loss) or total debt as defined by GAAP and should not
be considered an alternative to those measures in evaluating our
liquidity, operating performance and debt levels. NOI, FFO, Core
FFO and AFFO do not purport to be indicative of cash available to
fund our future cash requirements. We present net debt because we
believe it provides our investors a better understanding of our
leverage ratio. Net debt should not be considered an alternative to
total debt, as we may not always be able to use our available cash
to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net
debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt
reported by other REITs. For a more complete discussion of NOI,
FFO, Core FFO and AFFO, see our most recent Annual Report on Form
10-K and our other filings with the SEC.
Reconciliations
NOI and Same Store NOI
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles NOI and our Same Store NOI
for the three months ended March 31,
2022 and the year ended December 31,
2021 to net income (loss), the most directly comparable GAAP
financial measure (in thousands):
|
|
For
the
Three Months
Ended
March 31,
2022
|
|
|
For
the
Year
Ended
December 31,
2021
|
|
Net income
(loss)
|
|
$
|
(4,667)
|
|
|
$
|
23,106
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,843
|
|
|
|
7,631
|
|
Corporate general and
administrative expenses
|
|
|
3,486
|
|
|
|
11,966
|
|
Casualty-related
expenses/(recoveries)
|
(1)
|
|
1,047
|
|
|
|
(200)
|
|
Casualty
gains
|
|
|
(128)
|
|
|
|
(2,595)
|
|
Pandemic
expense
|
|
|
3
|
|
|
|
50
|
|
Property general and
administrative expenses
|
(2)
|
|
627
|
|
|
|
2,232
|
|
Depreciation and
amortization
|
|
|
23,718
|
|
|
|
86,878
|
|
Interest
expense
|
|
|
10,636
|
|
|
|
44,623
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
—
|
|
|
|
912
|
|
Gain on sales of real
estate
|
|
|
—
|
|
|
|
(46,214)
|
|
NOI
|
|
$
|
36,565
|
|
|
$
|
128,389
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
(5,283)
|
|
|
|
(19,157)
|
|
Operating
expenses
|
|
|
1,876
|
|
|
|
6,971
|
|
Operating
income
|
|
|
(3)
|
|
|
|
(871)
|
|
Same Store
NOI
|
|
$
|
33,155
|
|
|
$
|
115,332
|
|
|
|
(1)
|
Adjustment to net
income (loss) to exclude certain property operating expenses that
are casualty-related
expenses/(recoveries).
|
(2)
|
Adjustment to net
income (loss) to exclude certain property general and
administrative expenses that are
not reflective of the continuing operations of the properties or
are incurred on our behalf at the property for
expenses such as legal, professional, centralized leasing service
and franchise tax fees.
|
Reconciliation of Debt to Net Debt
(dollar amounts in
thousands)
|
|
Q2
2022
|
|
|
Q2
2021
|
|
Total mortgage
debt
|
|
$
|
1,358,675
|
|
|
$
|
1,234,515
|
|
Credit
facilities
|
|
|
335,000
|
|
|
|
250,000
|
|
Total debt
outstanding
|
|
|
1,693,675
|
|
|
|
1,484,515
|
|
|
|
|
|
|
|
|
|
|
Adjustments to arrive
at net debt:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
(20,463)
|
|
|
|
(70,282)
|
|
Restricted cash held
for value-add upgrades and green improvements
|
|
|
(19,333)
|
|
|
|
(11,918)
|
|
Net Debt
|
|
$
|
1,653,879
|
|
|
$
|
1,402,315
|
|
Enterprise Value
(1)
|
|
$
|
3,256,879
|
|
|
$
|
2,785,315
|
|
Leverage
Ratio
|
|
|
51
|
%
|
|
|
50
|
%
|
|
|
(1)
|
Enterprise Value is
calculated as Market Capitalization plus Net Debt.
|
Guidance Reconciliations of NOI, Same Store NOI, NOI,
FFO, Core FFO and AFFO
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles NOI to net income (loss)
(the most directly comparable GAAP financial measure) for the
periods presented below (in thousands):
|
|
For
the
Year
Ended
December 31,
2022
|
|
|
For
the
Three Months
Ended
September 30,
2022
|
|
|
|
Mid-Point
(1)
|
|
|
Mid-Point
(1)
|
|
Net income
(loss)
|
|
$
|
81,399
|
|
|
$
|
(5,403)
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
7,652
|
|
|
|
1,984
|
|
Corporate general and
administrative expenses
|
|
|
14,240
|
|
|
|
3,471
|
|
Property general and
administrative expenses
|
(2)
|
|
6,249
|
|
|
|
650
|
|
Depreciation and
amortization
|
|
|
97,367
|
|
|
|
24,606
|
|
Interest
expense
|
|
|
53,114
|
|
|
|
14,629
|
|
Casualty-related
recoveries
|
|
|
(357)
|
|
|
|
—
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
940
|
|
|
|
—
|
|
Gain on sales of real
estate
|
|
|
(104,909)
|
|
|
|
—
|
|
NOI
|
(3)
|
$
|
155,695
|
|
|
$
|
39,937
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
Revenues
|
(4)
|
|
(46,637)
|
|
|
|
|
|
Operating
expenses
|
(4)
|
|
19,479
|
|
|
|
|
|
Same Store
NOI
|
(4)
|
$
|
128,537
|
|
|
|
|
|
|
|
(1)
|
Mid-Point estimates
shown for full year and third quarter 2022 guidance. Assumptions
made for full year and
third quarter 2022 NOI guidance include the Same Store operating
growth projections included in the "2022
Full Year Guidance Summary" section of this release and the effect
of the acquisition and dispositions throughout
the fiscal year.
|
(2)
|
Adjustment to net
income (loss) to exclude certain property general and
administrative expenses that are not
reflective of the continuing operations of the properties or are
incurred on our behalf at the property for expenses
such as legal, professional, centralized leasing service and
franchise tax fees.
|
(3)
|
2022 Pro Forma NOI
assumes The Adair, Estates on Maryland, Old Farm, Stone Creek and
Hollister Place were
owned for the full year 2022.
|
(4)
|
Amounts are derived
from the results of operations of our pro forma Full Year 2022 Same
Store properties and
Non-Same Store properties. There are 31 properties in our pro forma
Full Year 2022 Same Store pool.
|
(1)
|
Adjustment to net
income to exclude certain property general and administrative
expenses that are not reflective
of the continuing operations of the properties or are incurred on
our behalf at the property for expenses such as
legal, professional, centralized leasing service and franchise tax
fees.
|
The following table reconciles our FFO, Core FFO and AFFO
guidance to our net income (the most directly comparable GAAP
financial measure) guidance for the year ended December 31, 2022 (in thousands, except per share
data):
|
|
For the Year
Ended
December 31,
2022
|
|
|
|
Mid-Point
|
|
Net income
|
|
$
|
81,399
|
|
Depreciation and
amortization
|
|
|
97,367
|
|
Gain on sales of real
estate
|
|
|
(104,909)
|
|
Adjustment for
noncontrolling interests
|
|
|
(243)
|
|
FFO attributable to
common stockholders
|
|
|
73,614
|
|
FFO per share -
diluted (1)
|
|
$
|
2.81
|
|
|
|
|
|
|
Loss on extinguishment
of debt and modification costs
|
|
|
940
|
|
Casualty-related
recoveries
|
|
|
3,281
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
1,011
|
|
Pandemic
expense
|
|
|
3
|
|
Adjustment for
noncontrolling interests
|
|
|
(17)
|
|
Core FFO
attributable to common stockholders
|
|
|
78,833
|
|
Core FFO per share -
diluted (1)
|
|
$
|
3.01
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
1,593
|
|
Equity-based
compensation expense
|
|
|
7,876
|
|
Adjustment for
noncontrolling interests
|
|
|
(34)
|
|
AFFO attributable to
common stockholders
|
|
|
88,268
|
|
AFFO per share -
diluted (1)
|
|
$
|
3.37
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
|
|
26,189
|
|
For purposes of calculating per share data, we assume a weighted
average diluted share count of approximately 26.2 million for the
full year 2022.
Contact:
Investor Relations
Jackie Graham
JGraham@nexpoint.com
(214) 276-6300
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SOURCE NexPoint Residential Trust, Inc.