NexPoint Residential Trust (NYSE:NXRT) reported a narrower fourth-quarter net loss and slightly lower core funds from operations (Core FFO) as same-store revenue softness and lower occupancy weighed on results, partially offset by continued execution of its value-add renovation program and ongoing expense discipline.
Fourth-quarter results and same-store performance
For the fourth quarter ended Dec. 31, 2025, NexPoint Residential Trust posted a net loss of $10.3 million, or $0.41 per diluted share, on total revenue of $62.1 million. That compared with a net loss of $26.9 million, or $1.06 per diluted share, on $63.8 million of revenue in the year-ago period.
Core FFO for the quarter was $16.5 million, or $0.65 per diluted share, compared with $0.68 per diluted share in the fourth quarter of 2024.
Full-year 2025 results and capital allocation
For full-year 2025, NexPoint reported a net loss of $32.0 million, or $1.26 per diluted share, including $95.8 million of depreciation and amortization. The company compared results to 2024 net income of $1.1 million, or $0.04 per diluted share, which included a $54.2 million gain on sale of real estate. Management noted that the company sold its two remaining Houston assets, as well as Radbourne Lake and Charlotte, in 2024.
Full-year NOI totaled $151.7 million across 35 properties, down 3.4% from $157.0 million in 2024. Same-store rental income decreased 1.3% for the year and occupancy ended at 92.7%, while same-store expenses rose 0.1%, driving a 1.6% decline in same-store NOI year over year. Core FFO for 2025 was $71.3 million, or $2.79 per diluted share, matching the per-share Core FFO reported in 2024. Management said the company has generated an 8.54% compounded annual growth rate in Core FFO since inception in 2015.
During 2025, the company repurchased 223,109 shares at a weighted average price of $34.29 per share. Management said that price represented an approximate 29% discount to the midpoint of its updated net asset value (NAV) estimate.
Renovation program metrics and acquisition activity
NexPoint continued its value-add strategy during the quarter, completing 388 full and partial renovations and leasing 275 renovated units. Management said the leased renovated units achieved an average monthly rent premium of $74 and a 22.2% return on investment (ROI).
Since inception, the company said it has completed:
- 9,866 full and partial upgrades, producing a $158 average monthly rent increase per unit and a 20.8% ROI;
- 4,979 kitchen and laundry appliance installations, producing a $50 average monthly rent increase and a 63.7% ROI; and
- 11,199 tech packages, producing a $43 average monthly rent increase and a 37.2% ROI.
On Dec. 11, 2025, the company purchased Sedona at Lone Mountain in Las Vegas for $73.25 million. Management described the deal as an “opportunistic high-growth acquisition” and said the business plan involves improving economic occupancy by approximately 900 basis points over four years, upgrading 182 units and installing smart home technology throughout the community. The company said the plan targets a 7.2% NOI compound annual growth rate through 2029.
Balance sheet, liquidity, and NAV update
Management updated its NAV per share estimate using cap rates in its markets unchanged at 5.25% to 5.75% and its 2026 NOI guidance. The company reported an NAV range of $41.43 to $55.72 per share, with a midpoint of $48.57.
On the capital markets front, NexPoint entered into a $200 million revolving credit facility on July 11, 2025, led by JPMorgan Chase Bank. The facility includes an accordion feature that could increase total commitments by up to an additional $200 million subject to lender agreement. Management said the new facility improved pricing by 15 basis points across leverage tiers, to term SOFR plus 150 to 225 basis points, and matures July 30, 2028, with a one-year extension option.
As of Dec. 31, 2025, the company reported $13.7 million of unrestricted cash and $108.0 million of available undrawn capacity on its unsecured corporate credit facility, for total liquidity of $121.7 million. The company said it has no scheduled debt maturities until 2028. Total indebtedness was $1.6 billion at an adjusted weighted average interest rate of 3.28%, and interest rate swaps effectively fixed the rate on $0.9 billion, or 62%, of its $1.5 billion of floating-rate mortgage debt outstanding.
2026 guidance and early leasing indicators
For 2026, management issued guidance that included same-store NOI growth ranging from a 2.5% decline to a 1.5% increase, with a midpoint of negative 0.5%. Core FFO per diluted share guidance was $2.42 to $2.71, with a midpoint of $2.57. Management said the largest driver from 2025 actuals to the 2026 midpoint is interest expense.
Matt McGraner, the company’s chief investment officer, outlined assumptions underpinning the outlook, including midpoint rental income growth of 0.9% and expectations for 93.4% to 94.1% financial occupancy, with peak occupancy modeled for the third quarter. He also said guidance assumes bad debt stabilizing around 80 basis points and concession utilization remaining “flattish” at about 71 basis points of gross potential rent, weighted to the first half of the year.
On operating trends after year-end, McGraner told analysts that January new leases were down 7% while renewals were up 1.6%, resulting in a blended rate change of roughly negative 2.6% to negative 2.7% (about a $40 trade-out). In February, he said new leases were down 5.7% and renewals were up 1.7%, producing a blended negative 1.8%.
On dividend coverage, management said the dividend is covered by cash flow and reiterated a target payout ratio of 65% to 75% of core AFFO (as stated on the call). For the fourth quarter, the company paid a dividend of $0.53 per share on Dec. 31, and management said the 2025 dividend was 1.35x covered by core FFO with a payout ratio of 73.8% of core FFO.
Management also addressed share repurchases for 2026, saying it would “always consider” buybacks, particularly if the stock price remains depressed, while expressing optimism that fundamentals and stock prices could improve in the second half of the year.
About NexPoint Residential Trust (NYSE:NXRT)
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.
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