NexPoint Residential Trust (NYSE:NXRT) Announces Quarterly Earnings Results, Misses Expectations By $1.13 EPS

NexPoint Residential Trust (NYSE:NXRT) announced its quarterly earnings results on Tuesday. The financial services provider reported ($0.41) earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($1.13), Zacks reports. NexPoint Residential Trust had a negative net margin of 19.23% and a negative return on equity of 13.32%. The company had revenue of $64.01 million during the quarter, compared to the consensus estimate of $62.82 million. NexPoint Residential Trust updated its FY 2026 guidance to 2.570-2.570 EPS.

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

• Q4 same‑store NOI declined ~4.8% year‑over‑year and same‑store occupancy finished at 92.7%, with increased concessions and softer rental income pressuring near‑term operating results.
• 2026 guidance forecasts Core FFO of $2.57 per diluted share (midpoint) while projecting same‑store NOI roughly flat to down 0.5% and EPS remaining negative, signaling steady cash flow but limited near‑term earnings upside.
• Liquidity and leverage profile is solid — $121.7 million available (cash + undrawn capacity), no scheduled debt maturities until 2028, $1.6 billion total indebtedness at a 3.28% average rate, and interest rate swaps hedging 62% of floating mortgage debt.
• Management repurchased 223,109 shares in 2025 at an average $34.29 (~29% discount to the NAV midpoint) and says it will continue opportunistic buybacks if valuations remain attractive.
• Company continues its value‑add strategy — 2026 plan includes ~300 full and 400 partial unit upgrades plus 680 W/D installs with targeted low‑to‑mid‑20% ROIs, and the recent Sedona acquisition in Las Vegas is expected to drive occupancy gains and a ~7.2% NOI CAGR through 2029.

NexPoint Residential Trust Stock Performance

NXRT stock opened at $29.00 on Wednesday. The company has a debt-to-equity ratio of 4.55, a current ratio of 1.49 and a quick ratio of 1.49. The company has a 50 day moving average price of $30.06 and a 200 day moving average price of $31.12. NexPoint Residential Trust has a fifty-two week low of $27.69 and a fifty-two week high of $43.13. The stock has a market capitalization of $735.47 million, a PE ratio of -15.10 and a beta of 1.19.

NexPoint Residential Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 7.3%. NexPoint Residential Trust’s dividend payout ratio (DPR) is currently -110.42%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on NXRT. Zacks Research upgraded shares of NexPoint Residential Trust from a “strong sell” rating to a “hold” rating in a research note on Friday, January 16th. Truist Financial cut their price target on shares of NexPoint Residential Trust from $31.00 to $30.00 and set a “hold” rating for the company in a report on Tuesday, January 20th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of NexPoint Residential Trust in a research note on Thursday, January 22nd. Six analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $39.88.

Insider Buying and Selling

In other NexPoint Residential Trust news, Director Brian Mitts sold 24,296 shares of the stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $28.85, for a total value of $700,939.60. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 15.36% of the company’s stock.

Hedge Funds Weigh In On NexPoint Residential Trust

Several large investors have recently made changes to their positions in NXRT. Royal Bank of Canada raised its holdings in NexPoint Residential Trust by 5.7% during the 1st quarter. Royal Bank of Canada now owns 54,612 shares of the financial services provider’s stock worth $2,159,000 after purchasing an additional 2,942 shares during the last quarter. Jacobs Levy Equity Management Inc. bought a new position in shares of NexPoint Residential Trust in the 1st quarter valued at about $341,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of NexPoint Residential Trust by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,281 shares of the financial services provider’s stock worth $525,000 after buying an additional 573 shares during the period. Millennium Management LLC raised its stake in shares of NexPoint Residential Trust by 15.6% during the first quarter. Millennium Management LLC now owns 328,683 shares of the financial services provider’s stock worth $12,993,000 after buying an additional 44,391 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in NexPoint Residential Trust by 5.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 132,034 shares of the financial services provider’s stock valued at $5,219,000 after buying an additional 7,217 shares during the period. Institutional investors and hedge funds own 76.61% of the company’s stock.

Key NexPoint Residential Trust News

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

• Positive Sentiment: Company issued FY‑2026 EPS guidance well above Street expectations (management set EPS guidance of 2.57 for FY‑2026), signaling confidence in next year’s profitability. NXRT Q4 & FY‑2025 Results (PR Newswire)
• Positive Sentiment: Q4 FFO beat consensus ($0.75 vs. $0.72) and revenue topped estimates ($64.01M vs. $62.82M), showing operational resilience in the quarter. Zacks: Q4 FFO Beat
• Positive Sentiment: Board approved a $0.53 quarterly dividend ( ~7.3% yield annualized), supporting the stock’s income appeal for yield‑focused investors. Ex‑dividend/record/payable dates were announced. Dividend Announcement (PR Newswire)
• Neutral Sentiment: Management set 2026 core FFO guidance in a $2.42–$2.71 range, which helps frame expectations for cash flow but leaves a range of outcomes. MSN: 2026 Core FFO Guidance
• Neutral Sentiment: Full earnings call and transcripts are available (detailed commentary on Sun Belt markets and value‑add plans), useful for investors who want management color on execution risk. Earnings Call Highlights (Yahoo)
• Negative Sentiment: Company reported a full‑year net loss and negative net margin/ROE for 2025, which increases execution and earnings quality concerns despite FFO measures. NXRT Results (PR Newswire)
• Negative Sentiment: High leverage (reported debt/equity and negative margins) raises sensitivity to interest rates and rent trends; this likely explains part of today’s share weakness as the market weighs yield versus balance‑sheet risk. MarketBeat: Earnings Summary

About NexPoint Residential Trust

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.