NXRT Earnings Prediction
The chart below shows how NXRT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NXRT sees a -1.64% change in stock price 10 days leading up to the earnings, and a -2.91% change 10 days following the report. On the earnings day itself, the stock moves by +0.15%. This data can give you a slight idea of what to expect for the next quarter's release.
NXRT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
76.11M
-7.27%
-1.13%
Gross Margin
--
--
--
Operating Margin
24.92%
-9.45%
-2.96%
Net Margin
-11.68%
-128.30%
-184.52%
EPS
-0.35
-127.34%
-187.50%
No Data Available
NXRT Earnings Analysis
NexPoint Residential Trust Inc Corporation (NXRT.N) Earnings Conference Call
Positive
Core FFO Guidance Increase: 1. Increased Core FFO Guidance: The company updated its core FFO guidance to a range of $2.74 to $2.82 per diluted share, reflecting an increase from the previous quarter's guidance of $2.72.
Dividend Growth Announcement: 2. Dividend Increase: NXRT announced a quarterly dividend of $0.51 per share, representing a 10.3% increase from the prior dividend, and has increased its dividend per share by 147.6% since inception.
Same-Store Revenue Increase: 3. Strong Same-Store Revenue Growth: Same-store rental revenue increased by 1.7% year-over-year, with five out of ten markets achieving at least 2.4% growth, particularly in Las Vegas and Raleigh, which saw growth rates of 11.6% and 5.4%, respectively.
Property Upgrade Success: 4. Successful Property Upgrades: The company completed 45 full and partial upgrades during the quarter, achieving an average monthly rent premium of $253 and a 19.5% return on investment.
Debt Restructuring Benefits: 5. Improved Debt Terms: NXRT entered into loan agreements totaling $1.67 billion, reducing its weighted average interest rate on total debt by 48 basis points to 6.21%, and extending the average debt maturity to approximately seven years.
Negative
Net Loss Decline: 1. Significant Net Loss: The company reported a net loss of $8.9 million for Q3 2024, a stark contrast to a net income of $33.7 million in Q3 2023, marking a decline of over $42 million year-over-year.
Same-Store NOI Decline: 2. Declining Same-Store NOI: Same-store NOI decreased by 2.4% compared to Q3 2023, falling from $38.1 million to $42.1 million despite a 1.7% increase in same-store revenues.
Core FFO Guidance Update: 3. Negative Core FFO Guidance: The updated guidance for core FFO per diluted share is projected at a low of $2.74, which is only a slight increase from the previous quarter's guidance of $2.72, indicating minimal growth expectations.
Rental Income Decline: 4. Decreased Rental Revenue: Same-store rent decreased by 1.8% year-over-year, reflecting challenges in maintaining rental income despite a 94.9% occupancy rate.
Conservative Growth Strategy: 5. No Acquisitions Planned: The company has revised its guidance to indicate no acquisitions for the year, down from a previous expectation of $50 million, signaling a more conservative approach to growth.
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NXRT Earning Call Sentiment
NexPoint Residential Trust, Inc. (NXRT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
NXRT.N
1.37%Positive
The earnings call reveals significant financial instability, with a net loss of $8.9 million compared to a net income in the previous year, and a decrease in same-store rent and NOI. Increased operating expenses and market supply risks further contribute to a negative outlook. Despite a dividend increase and refinancing efforts, the financial metrics and cautious future guidance suggest potential challenges. The Q&A section highlights management's vague responses, adding uncertainty. Overall, the negative sentiment outweighs the positives, likely resulting in a stock price decline of -2% to -8%.