DALLAS, May 2, 2017 /PRNewswire/ -- NexPoint Residential
Trust, Inc. (NYSE:NXRT) reported financial results for the quarter
ended March 31, 2017.
First Quarter 2017 Highlights
- NXRT paid a first quarter dividend of $0.220 per share of NXRT common stock on
March 31, 2017.
- NXRT reported Net Income (Loss), FFO1, Core
FFO1 and AFFO1 of ($3.6M), $8.0M,
$8.1M and $9.1M, respectively, attributable to common
stockholders.
- Same Store average rent, total revenue and NOI1
increased 5.3%, 7.3%, and 8.4%, respectively.
- During the first quarter of 2017, NXRT acquired Hollister Place, a 260-unit property in
Houston, Texas, for $24.5 million.
- The weighted average effective monthly rent per unit and
physical occupancy across all 40 properties held as of March 31, 2017, consisting of 13,225 units,
improved to $883 and 94.6%,
respectively.
- NXRT completed upgrades on 430 units and leased 353 upgraded
units during the first quarter of 2017, achieving an average
monthly rental increase of $91 and a
21.1% ROI on those units. Since inception, NXRT has completed 4,460
upgrades and achieved an $86 average
monthly rental increase per unit, equating to a 20.7% ROI on all
units leased through March 31,
2017.
- On March 27, 2017, NXRT entered
into an interest rate swap transaction with a notional amount of
$100.0 million, bringing the total
notional amount of NXRT's outstanding interest rate swaps to
$500.0 million. These interest rate
swaps effectively replace one-month LIBOR on $500.0 million, or 68%, of NXRT's floating rate
debt outstanding as of March 31, 2017
with a weighted average interest rate of 1.1879%. See "Subsequent
Events" for more information on an additional $50 million of swaps entered into subsequent to
quarter end.
- On March 13, 2017, NXRT's board
of directors, including the independent directors, unanimously
approved the renewal of the Advisory Agreement with the Adviser for
a one-year term that expires on March 16,
2018.
- FFO, Core FFO, AFFO and NOI are non-GAAP measures. For
reconciliations of FFO, Core FFO, AFFO and NOI to net income, and a
discussion of why we consider these non-GAAP measures useful, see
the "Definitions and Reconciliations" section of this release.
"NXRT had another strong quarter, with the Company's execution
of its value-add strategy producing outsized revenue growth and
20%+ ROIs on upgraded units. We are also pleased to report
continued success with our capital recycling plans, with the recent
completion of four dispositions for aggregate gross sale proceeds
of $83.9 million. The dispositions
yielded a combined levered IRR of approximately 40.7% and a 2.41x
multiple on invested capital," said NXRT Chairman and President,
Jim Dondero. "Looking ahead, we
expect strong U.S. mid-market renter demand to continue in 2017 and
remain focused on driving internal growth through our value-add
programs, while improving the quality of our affordable portfolio
through tax-efficient capital recycling programs."
First Quarter 2017 Financial Results
- Total revenues were up 10.4% to $37.0
million, compared to $33.5
million for the first quarter of 2016.
- Net loss attributable to common stockholders totaled
$3.6 million, or a loss of
$0.17 per diluted share, which
included depreciation and amortization attributable to common
stockholders of $11.6 million. This
compared to a net loss attributable to common stockholders of less
than $0.1 million, or less than
$0.01 per diluted share, for the
first quarter of 2016, which included depreciation and amortization
attributable to common stockholders of $8.7
million. The difference was primarily related to increased
depreciation and amortization costs and increased interest expense
from the $108 million of credit and
bridge financing we obtained to acquire the H2 portfolio and
Hollister Place.
- NOI¹ was up 11.4% to $19.7
million, compared to $17.7
million for the first quarter of 2016.
- FFO¹ totaled $8.0 million, or
$0.38 per diluted share, compared to
$8.6 million, or $0.41 per diluted share, for the first quarter of
2016. The difference was primarily related to increased
interest expense from the $108
million of credit and bridge financing we obtained to
acquire the H2 portfolio and Hollister
Place.
- Core FFO¹ totaled $8.1 million,
or $0.38 per diluted share, compared
to $8.6 million, or $0.41 per diluted share, for the first quarter of
2016.
- AFFO¹ totaled $9.1 million, or
$0.43 per diluted share, compared to
$8.9 million, or $0.42 per diluted share, for the first quarter of
2016.
Same Store Properties Operating Results
There are 35 properties encompassing 11,409 units of apartment
space in our same store pool for the first quarter of 2017 (our
"Same Store" properties). For our Same Store properties, we
recorded the following operating metrics for the first quarter of
2017 as compared to the first quarter of 2016:
Operating
Metric
|
|
Q1
2017
|
|
Q1
2016
|
|
% Change
|
Occupancy
|
(1)
|
|
95.0%
|
|
|
94.4%
|
|
|
0.6%
|
Average Effective
Monthly Rent Per Unit
|
(2)
|
$
|
857
|
|
$
|
813
|
|
|
5.3%
|
Rental income (in
thousands)
|
|
$
|
26,979
|
|
$
|
25,537
|
|
|
5.6%
|
Other income (in
thousands)
|
|
$
|
4,371
|
|
$
|
3,672
|
|
|
19.0%
|
NOI (in
thousands)
|
|
$
|
16,847
|
|
$
|
15,540
|
|
|
8.4%
|
|
|
(1)
|
Occupancy is
calculated as the number of units occupied as of March 31 for the
respective year, divided by the total number of units, expressed as
a percentage.
|
(2)
|
Average effective
monthly rent per unit is equal to the average of the contractual
rent for commenced leases as of March 31 for the respective
year minus any tenant concessions over the term of the lease,
divided by the number of units under commenced leases as of March
31 for the respective year.
|
Acquisition of Property
As mentioned above, on February 1,
2017, NXRT acquired Hollister
Place, a 260-unit property in Houston, Texas, for $24.5 million. NXRT drew $14.0 million on its $30.0
million credit facility and used $12.0 million of the proceeds drawn to fund a
portion of the purchase price and planned value-add improvements to
the property. NXRT also placed a first mortgage on the property
with a principal amount of approximately $13.5 million, a floating interest rate of 2.24%
over one-month LIBOR and an 84-month term.
Property
Name
|
|
Location
|
|
Date of
Acquisition
|
|
Purchase
Price
|
|
Debt
|
|
#
Units
|
|
Effective
Ownership
|
Hollister
Place
|
|
Houston,
Texas
|
|
February 1,
2017
|
|
$
|
24,500
|
|
$
|
24,500
|
|
|
260
|
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Following the disposition of Regatta Bay, which we expect to
close in June 2017, we will complete
the reverse 1031 exchange and expect to pay down the $14.0 million previously drawn on the credit
facility.
Value-Add Programs
For the three months ended March 31,
2017, we completed full and partial renovations on 430 units
at an average cost of $5,115 per
renovated unit. Since inception, for the properties in our
portfolio as of March 31, 2017, we
have completed full and partial renovations on 4,460 units at an
average cost of $4,893 per renovated
unit that has been leased as of March 31,
2017. We have achieved average rent growth of 10.6%, or an
$86 average monthly rental increase
per unit, on all units renovated and leased from inception through
March 31, 2017, resulting in a return
on investment on capital expended for interior renovations of
20.7%.
The following table sets forth a summary of our capital
expenditures related to our value-add program for three months
ended March 31, 2017 and 2016 (in
thousands):
|
|
For the Three
Months Ended March 31,
|
|
Rehab
Expenditures
|
|
2017
|
|
|
2016
|
|
Interior
|
(1)
|
$
|
2,446
|
|
|
$
|
2,137
|
|
Exterior and common
area
|
|
|
1,404
|
|
|
|
4,321
|
|
Total rehab
expenditures
|
|
$
|
3,850
|
|
|
$
|
6,458
|
|
|
|
(1)
|
Includes total
capital expenditures during the period on completed and in-progress
interior rehabs.
|
Second Quarter 2017 Dividend
On May 1, 2017, NXRT's board of
directors declared a quarterly dividend of $0.220 per share of NXRT common stock. The
dividend will be paid on June 30,
2017 to stockholders of record on June 15, 2017.
Share Repurchase Program
During the three months ended March 31,
2017, the Company did not purchase any shares of its common
stock. The cost of the shares previously repurchased is included in
common stock held in treasury at cost on the consolidated balance
sheet as of March 31, 2017. As of
March 31, 2017, the Company had
21,293,825 million shares of its common stock issued and 21,043,669
shares outstanding.
Subsequent Events
Sales of Multifamily Properties
The Company sold four properties subsequent to March 31, 2017 for cumulative gross sale proceeds
of $83.9 million, while the combined
returns totaled an IRR of approximately 40.7% and a 2.41x multiple
on invested capital. Additional information regarding these sales
is provided in the table below (thousands) (unaudited):
Property Name
(1)
|
|
Location
|
|
Date of
Sale
|
|
Sales
Price
|
|
Debt Outstanding
(2)
|
|
|
Net Cash Proceeds
(3)
|
|
|
Real Estate Carrying
Value, net
(2)
|
The Miramar Apartments
|
(4)
|
Dallas,
Texas
|
|
April 3,
2017
|
|
$
|
16,550
|
|
$
|
8,400
|
|
|
$
|
16,326
|
|
|
$
|
9,958
|
Toscana
|
(5)
|
Dallas,
Texas
|
|
April 3,
2017
|
|
|
13,250
|
|
|
—
|
|
(6)
|
|
12,949
|
|
|
|
8,756
|
The Grove at
Alban
|
|
Frederick, Maryland
|
|
April 3,
2017
|
|
|
27,500
|
|
|
18,374
|
|
|
|
27,020
|
|
|
|
22,506
|
Twelve 6 Ten at the
Park
|
(4)
|
Dallas,
Texas
|
|
April 27,
2017
|
|
|
26,600
|
|
|
15,711
|
|
|
|
26,350
|
|
|
|
21,379
|
|
|
|
|
|
|
$
|
83,900
|
|
$
|
42,485
|
|
|
$
|
82,645
|
|
(7)
|
$
|
62,599
|
|
|
(1)
|
Properties were
classified as held for sale as of March 31, 2017.
|
(2)
|
As of March 31,
2017.
|
(3)
|
Represents sales
price, net of closing costs.
|
(4)
|
The Company completed
the reverse 1031 Exchange of Old Farm with the sales of The Miramar
Apartments and Twelve 6 Ten at the Park. Legal title to Old Farm
was transferred to the Company on April 27, 2017.
|
(5)
|
The Company completed
the reverse 1031 Exchange of Stone Creek at Old Farm with the sale
of Toscana. Legal title to Stone Creek at Old Farm was transferred
to the Company on April 3, 2017.
|
(6)
|
Toscana was released
from the collateral pool of the $300 Million Credit Facility upon
the sale.
|
(7)
|
The Company used cash
on hand plus its share of the proceeds, net of distributions to
noncontrolling interests, from the sales of these properties to
retire the entire $30.0 million outstanding on its 2016 Bridge
Facility and to pay down $10.0 million of the $29.0 million
outstanding on its $30 Million Credit Facility.
|
Interest Rate Swap Agreement
On April 3, 2017, the Company,
through the OP, entered into an interest rate swap transaction with
KeyBank. The following table contains summary information regarding
the interest rate swap transaction (dollars in thousands):
Trade
Date
|
|
Effective
Date
|
|
Termination
Date
|
|
Notional
Amount
|
|
Fixed
Rate
|
|
|
Floating Rate Option
|
April 3,
2017
|
|
May 1,
2017
|
|
April 1,
2022
|
|
$
|
50,000
|
|
|
1.9610
|
%
|
|
One-month
LIBOR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of May 1, 2017, the Company has
entered into six interest rate swap transactions with a combined
notional amount of $550.0 million,
effectively fixing the interest rate on approximately 84% of its
$655.0 million of total floating rate
debt outstanding as of May 2, 2017.
The interest rate swaps effectively replace the floating interest
rate (one-month LIBOR) with respect to that amount with a weighted
average fixed rate of 1.2582%.
Potential Sale of Multifamily Property
The Company is under contract to sell Regatta Bay in
Seabrook, Texas to an unaffiliated
third party. The total carrying value of Regatta Bay as of
March 31, 2017 was approximately
$17.2 million, representing
approximately 1.8% of the Company's total net real estate assets as
of March 31, 2017. Regatta Bay was
classified as held for sale as of March 31,
2017.
Reaffirmation of 2017 Full Year Guidance
The Company is reaffirming its 2017 guidance range for Revenue,
Net Income, NOI1, FFO1, Core FFO1
and AFFO1 as follows:
|
Low-End
|
Mid-Point
|
High-End
|
% change from
2016 at midpoint
|
|
|
|
|
|
Revenue
|
$142.0M
|
$143.0M
|
$144.0M
|
7.6%
|
Net
Income
|
$26.3M
|
$27.3M
|
$28.3M
|
5.3%
|
NOI
|
$75.0M
|
$76.0M
|
$77.0M
|
9.2%
|
FFO/sh
|
$1.55
|
$1.60
|
$1.64
|
9.6%
|
Core
FFO/sh
|
$1.58
|
$1.62
|
$1.67
|
12.5%
|
AFFO/sh
|
$1.80
|
$1.85
|
$1.89
|
18.6%
|
Acquisitions
(1)
|
$24.5M
|
$24.5M
|
$24.5M
|
N/A
|
Dispositions
|
$100.0M
|
$115.0M
|
$130.0M
|
N/A
|
|
|
(1)
|
On February 1, 2017,
NXRT acquired Hollister Place for $24.5 million. No further
acquisition activity is assumed for the remainder of
2017.
|
See the "Definitions and Reconciliations" section of this press
release for a reconciliation of 2017 Full Year Non-GAAP Guidance to
2017 Full Year net income guidance.
Additional information on first quarter results and 2017
financial and earnings guidance is included in supplemental data
that can be found in the Investor Relations section of the
Company's website at www.nexpointliving.com.
Supplemental Information
Supplemental information to this press release can be found in
the Financial Materials section under Investor Relations on the
Company's website at www.nexpointliving.com.
First Quarter Earnings Conference Call
NXRT will host a call to discuss its first quarter results on
Tuesday, May 2, 2017 at 11:00 a.m. ET. The number to call for this
interactive teleconference is (888) 298-3465, or for international
callers, (719) 325-2111 in each case using passcode 2243429. A live
audio webcast of the call will be available online at the Company's
website, http://www.nexpointliving.com (under "Investor
Relations").
A replay of the call will be available approximately two hours
after the call through Tuesday, May 9,
2017, by dialing (888) 203-1112, or for international
callers, (719) 457-0820 and entering the confirmation number,
2243429.
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
Highland Capital Management, L.P., a leading global alternative
asset manager and an SEC-registered investment adviser. More
information about NXRT is available at
http://www.nexpointliving.com.
Cautionary Notice Regarding Forward-Looking
Statements
This press 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," "intend" and similar
expressions, and variations or negatives of these words. These
forward-looking statements include, but are not limited to,
statements regarding expected property acquisitions and
dispositions and the use of proceeds therefrom, expected
redevelopment of units as part of our value add program, and NXRT's
strategy and guidance for financial results for the full year 2017
and the outlook for the renter's market in 2017. They are not
guarantees of future results and are subject to risks,
uncertainties, assumptions and anticipated sales of properties that
could cause actual results to differ materially from those
expressed in any forward-looking statement. 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 Securities and Exchange
Commission (the "SEC") for a more complete discussion of the risks
and other factors that could affect any forward-looking statements.
Except as required by law, NXRT does not undertake any obligation
to publicly update or revise any forward-looking statements.
Definitions and Reconciliations
This press release includes analysis of funds from operations,
or FFO, core funds from operations, or Core FFO, adjusted funds
from operations, or AFFO, and net operating income, or NOI, all of
which are non-GAAP financial measures of performance. These
non-GAAP measures should be used as a supplement to, and not a
substitute for, net income (loss) computed in accordance with GAAP.
For a more complete discussion of FFO, Core FFO, AFFO, and NOI, see
our most recent Annual Report on Form 10-K and our other filings
with the SEC.
This press release also includes an analysis of our Same Store
properties, which are defined as those that are stabilized and
comparable for both the current and the prior reporting year. Same
Store analysis for the first quarter of 2017 includes 35 properties
totaling 11,409 units, or approximately 86% of the Company's 13,225
units.
FFO, Core FFO and AFFO
We believe that net income, as defined by GAAP, is the most
appropriate earnings measure. We also believe that funds from
operations, or FFO, as defined by the National Association of Real
Estate Investment Trusts ("NAREIT"), core funds from operations, or
Core FFO, and adjusted funds from operations, or AFFO, are
important non-GAAP supplemental measures of operating
performance for a REIT. Because the historical cost accounting
convention used for real estate assets requires depreciation except
on land, such accounting presentation implies that the value of
real estate assets diminishes predictably over time. However, since
real estate values have historically risen or fallen with market
and other conditions, presentations of operating results for a REIT
that use historical cost accounting for depreciation could be less
informative. Thus, NAREIT created FFO as a supplemental measure of
operating performance for REITs that excludes historical cost
depreciation and amortization, among other items, from net income,
as defined by GAAP. FFO is defined by NAREIT as net income computed
in accordance with GAAP, excluding gains or losses from real estate
dispositions, plus real estate depreciation and amortization and
impairment charges. We compute FFO attributable to common
stockholders in accordance with NAREIT's definition. Our
presentation differs slightly in that we begin with net income
(loss) loss before adjusting for noncontrolling interests and show
the noncontrolling interests as an adjustment to arrive at FFO
attributable to common stockholders. Core FFO is calculated
by adjusting our FFO by adding back items that do not reflect
ongoing property operations, such as acquisition expenses,
prepayment penalties on the early retirement of debt, the
amortization of deferred financing costs incurred in connection
with obtaining short-term financing, the ineffective portion of
fair value adjustments on our interest rate derivatives designated
as cash flow hedges, and the noncontrolling interests related to
these items. AFFO is calculated by adjusting our Core FFO in
order to arrive at a more refined measure of operating performance
by adding back items such as equity-based compensation expense and
the amortization of deferred financing costs incurred with
connection with obtaining long-term debt financing, and the
noncontrolling interests related to these items.
We believe that the use of FFO, Core FFO and AFFO, combined with
the required GAAP presentations, improves the understanding of
operating results of REITs among investors and makes comparisons of
operating results among such companies more meaningful.
The following table reconciles our calculations of FFO, Core FFO
and AFFO to net income (loss), the most directly comparable GAAP
financial measure, for the three months ended March 31, 2017 and 2016 (in thousands, except per
share amounts):
|
|
For the Three
Months Ended March 31,
|
|
|
|
2017
|
|
|
2016
|
|
Net income
(loss)
|
|
$
|
(3,304)
|
|
|
$
|
291
|
|
Depreciation and
amortization
|
|
|
12,443
|
|
|
|
9,612
|
|
Adjustment for
noncontrolling interests
|
|
|
(1,123)
|
|
|
|
(1,260)
|
|
FFO attributable
to common stockholders
|
|
|
8,016
|
|
|
|
8,643
|
|
|
|
|
|
|
|
|
|
|
FFO per share -
basic
|
|
$
|
0.38
|
|
|
$
|
0.41
|
|
FFO per share -
diluted
|
|
$
|
0.38
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
on derivative instruments - ineffective portion
|
|
|
20
|
|
|
|
—
|
|
Amortization of
deferred financing costs - acquisition term notes
|
|
|
94
|
|
|
|
—
|
|
Adjustment for
noncontrolling interests
|
|
|
(2)
|
|
|
|
—
|
|
Core FFO
attributable to common stockholders
|
|
|
8,128
|
|
|
|
8,643
|
|
|
|
|
|
|
|
|
|
|
Core FFO per share
- basic
|
|
$
|
0.39
|
|
|
$
|
0.41
|
|
Core FFO per share
- diluted
|
|
$
|
0.38
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Amortization of
deferred financing costs - long term debt
|
|
|
438
|
|
|
|
324
|
|
Equity-based
compensation expense
|
|
|
608
|
|
|
|
—
|
|
Adjustment for
noncontrolling interests
|
|
|
(33)
|
|
|
|
(25)
|
|
AFFO attributable
to common stockholders
|
|
|
9,141
|
|
|
|
8,942
|
|
|
|
|
|
|
|
|
|
|
AFFO per share -
basic
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
AFFO per share -
diluted
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.220
|
|
|
$
|
0.206
|
|
|
|
|
|
|
|
|
|
|
FFO Coverage -
diluted
|
|
1.71x
|
|
|
1.97x
|
|
Core FFO Coverage
- diluted
|
|
1.74x
|
|
|
1.97x
|
|
AFFO Coverage -
diluted
|
|
1.95x
|
|
|
2.04x
|
|
Net Operating Income
NOI is a non-GAAP financial measure of performance. 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 as NOI is not affected by (1) the cost of funds, (2)
acquisition costs, (3) non-operating fees to affiliates, (4) 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, (5)
corporate general and administrative expenses, (6) other gains and
losses that are specific to us, and (7) expenses that are not
reflective of the ongoing operations of the properties or incurred
on behalf of the Company at the property level for expenses such as
legal, professional and franchise tax fees.
The following table, which has not been adjusted for the effects
of noncontrolling interests, reconciles our NOI and Same Store NOI
for the three months ended March 31,
2017 and 2016 to net income (loss), the most directly
comparable GAAP financial measure (in thousands):
|
|
For the Three
Months Ended March 31,
|
|
|
|
2017
|
|
|
2016
|
|
Net income
(loss)
|
|
$
|
(3,304)
|
|
|
$
|
291
|
|
Adjustments to
reconcile net income (loss) to NOI:
|
|
|
|
|
|
|
|
|
Advisory and
administrative fees
|
|
|
1,825
|
|
|
|
1,616
|
|
Corporate general and
administrative expenses
|
|
|
1,333
|
|
|
|
782
|
|
Property general and
administrative expenses
|
(1)
|
|
231
|
|
|
|
151
|
|
Depreciation and
amortization
|
|
|
12,443
|
|
|
|
9,612
|
|
Interest
expense
|
|
|
7,159
|
|
|
|
5,226
|
|
NOI
|
|
$
|
19,687
|
|
|
$
|
17,678
|
|
Less Non-Same
Store
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
(5,641)
|
|
|
|
(4,302)
|
|
Operating
expenses
|
|
|
2,801
|
|
|
|
2,164
|
|
Same Store
NOI
|
|
$
|
16,847
|
|
|
$
|
15,540
|
|
|
|
(1)
|
Adjustment to net
income (loss) to exclude expenses that are not reflective of the
ongoing operations of the properties or incurred on behalf of the
Company at the property for expenses such as legal, professional
and franchise tax fees.
|
Same Store Properties
We review our stabilized multifamily communities on a comparable
basis between periods. Our Same Store properties are defined as
those that are stabilized and comparable for both the current
period and the same period for the prior reporting year.
There are 35 properties meeting this definition for the first
quarter of 2017: Miramar, Arbors on Forest
Ridge, Cutter's Point, Eagle Crest, Silverbrook, Timberglen,
Toscana, The Grove at Alban, Edgewater at Sandy Springs, Beechwood
Terrace, Willow Grove, Woodbridge,
Abbington Heights, Courtney Cove,
The Summit at Sabal Park, Timber Creek, Belmont at Duck Creek,
Radbourne Lake, The Arbors, The Knolls, The Crossings at Holcomb
Bridge, The Crossings, Regatta Bay, Sabal Palm at Lake Buena Vista,
Southpoint Reserve at Stoney Creek, Twelve 6 Ten at the Park,
Cornerstone, The Preserve at Terrell Mill, The Ashlar,
Heatherstone, Versailles, Seasons
704, Madera Point, The Pointe at the
Foothills, and Venue at 8651.
Reconciliation of Guidance for 2017 NOI, FFO, Core FFO and
AFFO
The Company anticipates that net income will be in the range
between $26.3 million to $28.3
million for the full year. The difference between net income
and FFO is depreciation and amortization, which is anticipated to
be $39.0 million to $41.0 million for
the full year 2017, and gain on sales of real estate which is
anticipated to be approximately $31.0
million for the full year 2017. The difference between FFO
and Core FFO is prepayment penalties, which are anticipated to
total approximately $0.6 million for
the full year 2017, amortization of deferred financing costs on
short term financing, to the extent excluded from FFO, which is
anticipated to total approximately $0.1
million for the full year 2017. The difference between Core
FFO and AFFO is amortization of deferred financing costs on
long-term debt financing, to the extent excluded from FFO and Core
FFO, which is anticipated to total approximately $1.4 million for the full year 2017, and
equity-based compensation expenses, which is anticipated to total
approximately $2.8 million for the
full year 2017. The difference between net income and NOI is
advisory and administrative fees, corporate general and
administrative expenses, certain property general and
administrative expenses, depreciation and amortization, interest
expense, and gain on sales of real estate, which are anticipated to
total approximately $47.7 million to $49.7
million for the full year 2017. 2017 Full Year
Guidance assumes $24.5 million of
acquisition activity and $115 million
of disposition activity for the full year 2017. For purposes of
calculating per share data, the Company assumes a weighted average
diluted share count of 21.40 million for the full year 2017.
In this release, "we," "us," "our," the "Company," "NexPoint
Residential Trust," and "NXRT" each refer to NexPoint Residential
Trust, Inc., a Maryland
corporation.
Contact:
Marilynn
Meek
Financial Relations Board
212-827-3773
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nexpoint-residential-trust-inc-reports-first-quarter-2017-results-300449455.html
SOURCE NexPoint Residential Trust, Inc.