NexPoint Residential Trust Inc.

04/26/2022 | Press release | Distributed by Public on 04/26/2022 06:19

EARNINGS SUPPLEMENT: FIRST QUARTER 2022 - Form 8-K

EARNINGS SUPPLEMENT: FIRST QUARTER 2022

NEXPOINT RESIDENTIAL TRUST, INC.

300 CRESCENT COURT, SUITE 700

DALLAS, TX 75201

PHONE: (214) 276-6300

INVESTOR RELATIONS:

JACKIE GRAHAM

NXRT.NEXPOINT.COM

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

TABLE OF CONTENTS

Earnings Release

1

Cautionary Statement Regarding Forward-Looking Statements

2

Overview

4

Highlights of Recent Activity

5

Financial Summary

6

2022 Full Year Guidance

7

Components of Net Asset Value

8

Consolidated Balance Sheets

9

Consolidated Statements of Operations

10

NOI and Same Store NOI

11

Q1 Same Store Results

12

Q1 Same Store Properties Operating Metrics

14

QoQ Same Store Properties Operating Metrics

15

FFO, Core FFO and AFFO

16

Historical Capital Expenditures

17

Value-Add Program Details

18

Outstanding Debt Details

21

Debt Maturity Schedule

23

Historical Acquisition Details

24

Historical Disposition Details

25

Definitions and Reconciliations of Non-GAAP Measures

26

ESTATES ON MARYLAND: PHOENIX, AZ

FURTHER EXPANSION IN TOP PERFORMING PHOENIX MSA

HIGH QUALITY WORKFORCE HOUSING WITH UPSIDE

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

FOR IMMEDIATE RELEASE

Contact:

Investor Relations

Jackie Graham

[email protected]

(214) 276-6300

Media inquiries: [email protected]

NEXPOINT RESIDENTIAL TRUST, INC. REPORTS FIRST QUARTER 2022 RESULTS

NXRT Increases 2022 Full Year Guidance; Continues to See Strong Rental Rate Growth and Execute Value-Add Strategy

Dallas, TX, April 26, 2022 - NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the first quarter ended March 31, 2022.

Highlights

NXRT1 reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(4.7)M, $19.0M, $20.1M and $22.3M, respectively, attributable to common stockholders for the quarter ended March 31, 2022, compared to Net Loss, FFO, Core FFO and AFFO of $(6.9)M, $13.8M, $14.1M and $16.0M, respectively, attributable to common stockholders for the quarter ended March 31, 2021.

For the three months ended March 31, 2022, Q1 Same Store properties3 average effective rent, total revenue and NOI2 increased 15.4%, 11.3% and 16.4%, respectively and occupancy decreased 90 bps from the prior year period.

The weighted average effective monthly rent per unit across all 39 properties held as of March 31, 2022 (the "Portfolio"), consisting of 14,776 units4, was $1,310, while physical occupancy was 94.2%.

NXRT paid a first quarter dividend of $0.38 per share of common stock on March 31, 2022.

During the first quarter, for the properties in our Portfolio, we completed 531 full and partial upgrades and leased 489 upgraded units, achieving an average monthly rent premium of $138 and a 26.3% ROI5.

Since inception, for the properties currently in our Portfolio, we have completed 6,398 full and partial, 4,510 kitchen and laundry appliances and 9,624 technology packages, resulting in a $139, $48 and $43 average monthly rental increase per unit and a 21.8%, 70.8% and 33.5% ROI, respectively.

During the three months ended March 31, 2022, through its at-the-market offering ("ATM program"), NXRT issued 52,091 shares of common stock for approximately $4.3 million in gross proceeds

(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" and "FFO, Core FFO and AFFO" 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 13,456 units of apartment space in our Same Store pool for the three months ended March 31, 2022 (our "Q1 Same Store" properties). The same store unit count excludes 44 units that are currently down due to casualty events (Silverbrook: 16 units, Timber Creek: 15 units, Venue at 8651: 8 units, The Preserve at Terrell Mill: 3 units, Bloom: 1 unit and Old Farm: 1 unit).

(4)

Total number of units owned in our Portfolio as of March 31, 2022 is 14,825, however 49 units are currently down due to casualty events (Silverbrook: 16 units, Timber Creek: 15 units, Venue at 8651: 8 units, Six Forks Station: 5 units, The Preserve at Terrell Mill: 3 units, Bloom: 1 unit and Old Farm: 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.

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

First Quarter 2022 Financial Results

Total revenues were $60.8 million for the first quarter of 2022, compared to $51.8 million for the first quarter of 2021.

Net loss for the first quarter of 2022 totaled $(4.7) million, or loss of $(0.18) per diluted share, which included $23.7 million of depreciation and amortization expense. This compared to net loss of $(6.9) million, or loss of $(0.27) per diluted share, for the first quarter of 2021, which included $20.8 million of depreciation and amortization expense.

The change in our net loss of $(4.7) million for the three months ended March 31, 2022 as compared to our net loss of $(6.9) million for the three months ended March 31, 2021 primarily relates to increases in rental income, partially offset by increases in depreciation and property operating expenses.

For the first quarter of 2022, NOI was $36.6 million on 39 properties, compared to $29.7 million for the first quarter of 2021 on 37 properties.

For the first quarter of 2022, Q1 Same Store NOI increased 16.4% to $33.2 million, compared to $28.5 million for the first quarter of 2021.

For the first quarter of 2022, FFO totaled $19.0 million, or $0.74 per diluted share, compared to $13.8 million, or $0.55 per diluted share, for the first quarter of 2021.

For the first quarter of 2022, Core FFO totaled $20.1 million, or $0.78 per diluted share, compared to $14.1 million, or $0.56 per diluted share, for the first quarter of 2021.

For the first quarter of 2022, AFFO totaled $22.3 million, or $0.87 per diluted share, compared to $16.0 million, or $0.64 per diluted share, for the first quarter of 2021.

First Quarter Earnings Conference Call

NexPoint Residential Trust, Inc., ("NXRT" or the "Company"), (NYSE:NXRT) announced today that the Company is scheduled to host a conference call on Tuesday, April 26, 2022 at 11:00 a.m. ET (10:00 am CT), to discuss first quarter 2022 financial results. The conference call can be accessed live over the phone by dialing 888-220-8451 or, for international callers, + 1 323-794-2588 and using passcode Conference ID: 8614947. A live audio webcast of the call will be available online at the Company's website, 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, May 3, 2022 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 8614947.

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, NXRT's updated 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 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 second 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

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

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.

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC: FIRST QUARTER 2022 OVERVIEW

Company Profile

(share counts in thousands)

Exchange/Ticker

NYSE:NXRT

Share Price (1)

$89.56

Insider Ownership

12.42%

2022 Q2 Dividend Per Share

$0.38

Dividend Yield (1)

1.70%

Shares outstanding - basic (2)

25,620

Shares outstanding - diluted (2)

25,620

(1)

As of the close of market trading on April 25, 2022.

(2)

Weighted average for the three months ended March 31, 2022. If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the calculation of diluted shares outstanding.

Portfolio Composition by Market

Market

% of Units

Dallas/Fort Worth

17.5%

South Florida

13.2%

Phoenix

11.3%

Atlanta

9.8%

Nashville

9.0%

Houston

8.0%

Orlando

7.9%

Las Vegas

7.9%

Charlotte

7.3%

Raleigh

4.2%

Tampa

3.9%

Total

100.0%

Revenue & Average Rent Per Unit

Stock Price Performance (Since Inception; 4/1/2015)

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Highlights of Recent Activity

ACQUISITIONS

Property Name

Location

Date of Acquisition

Purchase Price

Mortgage Debt

# Units

The Adair

Sandy Springs, GA

April 1, 2022

$

65,500

$

35,115

232

Estates on Maryland

Phoenix, AZ

April 1, 2022

77,900

43,157

330

$

143,400

$

78,272

562

NXRT Q1 2022 NEW LEASES & RENEWALS

Market

New Leases

% Increase

Rent Increase

Renewals

% Increase

Rent Increase

DFW

323

24.8%

$

254.27

336

20.7%

$

202.99

HOU

176

15.1%

$

176.55

172

11.0%

$

128.44

CHA

140

17.4%

$

197.06

157

13.4%

$

147.34

NASH

170

24.5%

$

273.76

202

17.0%

$

181.93

ATL

173

18.9%

$

229.60

151

15.7%

$

187.39

ORL

138

36.0%

$

432.33

170

24.6%

$

287.54

TPA

73

33.4%

$

360.64

51

27.0%

$

287.12

South FL

184

36.4%

$

551.93

257

21.4%

$

322.93

PHX

221

27.1%

$

317.87

216

19.2%

$

234.35

LSV

139

18.3%

$

223.24

149

15.5%

$

184.79

RDU

53

6.5%

$

83.32

91

13.5%

$

167.87

TOTAL

1,790

24.3%

$

290.67

1,952

18.2%

$

214.36

ROOM FOR FUTURE RENT GROWTH

(1)

Source: RealPage as of March 31, 2022.

(2)

Source: Average of Invitation Homes and American Homes 4 Rent. Average effective rent per market based on recent public filings as of December 31, 2021 and assuming a 5% rent increase.

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Financial Summary

Q1 2022

Q1 2021

FY 2021

FY 2020

(in thousands, except for per share and unit data)

Company Profile

Market Capitalization

$

2,321,000

$

1,158,000

$

2,138,000

$

1,058,000

Share Price (as of the last day of the period)

$

90.31

$

46.09

$

83.83

$

42.31

Weighted average common shares outstanding - basic

25,620

25,068

25,170

24,715

Weighted average common shares outstanding - diluted

25,620

25,068

25,760

25,234

Earnings Profile

Total revenues

$

60,786

$

51,796

$

219,240

$

204,800

Net income (loss) attributable to common stockholders

(4,653

)

(6,879

)

23,037

44,018

NOI (1)

36,565

29,724

128,389

118,396

Same Store NOI (2)

33,155

28,495

115,332

109,286

Same Store NOI Growth (%) (2)

16.4

%

5.5

%

Earnings Metrics Per Common Share (diluted basis)

Earnings (loss)

$

(0.18

)

$

(0.27

)

$

0.89

$

1.74

FFO (1)

$

0.74

$

0.55

$

2.47

$

2.27

Core FFO (1)

$

0.78

$

0.56

$

2.43

$

2.20

AFFO (1)

$

0.87

$

0.64

$

2.75

$

2.47

Dividends declared per common share

$

0.380

$

0.341

$

1.404

$

1.279

FFO Coverage (3)

1.95x

1.62x

1.76x

1.77x

Core FFO Coverage (3)

2.06x

1.65x

1.73x

1.72x

AFFO Coverage (3)

2.30x

1.88x

1.96x

1.94x

Portfolio

Total Properties

39

37

39

37

Total Units (4)

14,776

13,976

14,825

14,205

Occupancy

94.2

%

95.3

%

94.3

%

94.1

%

Average Effective Monthly Rent per Unit

$

1,310

$

1,130

$

1,261

$

1,128

Same Store Portfolio Metrics (2)

Total Same Store Properties

34

34

33

33

Total Same Store Units

13,456

13,406

13,098

13,148

Occupancy

94.4

%

95.3

%

94.2

%

93.9

%

Average Effective Monthly Rent per Unit

$

1,310

$

1,135

$

1,255

$

1,130

Value-Add Program

Completed Full/Partial Interior Rehab Units

531

285

1,264

1,679

Cumulative Completed Rehab Units (5)

6,398

Average Increase to Effective Monthly Rent

per Unit (Post-Rehab)

$

139

ROI on Post-Rehab Units

21.8

%

Outstanding Debt Summary

Total Mortgage Debt

$

1,280,765

$

1,167,880

Credit Facilities

335,000

183,000

Total Debt Outstanding

$

1,615,765

$

1,350,880

Leverage Ratio (Net Debt to Enterprise Value) (6)

39

%

53

%

(1)

For more information and reconciliations of NOI, FFO, Core FFO and AFFO, see the "FFO, Core FFO and AFFO," "NOI and Same Store NOI" and "Definitions and Reconciliations of Non-GAAP Measures" sections of this release.

(2)

We define "Same Store" properties as properties that were in our Portfolio for the entirety of the periods being compared. For additional information regarding our Q1 Same Store properties, see the "Q1 Same Store Results" section of this release.

(3)

Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

(4)

Total units owned as of March 31, 2022 is 14,825, however 49 units are currently excluded due to casualty events.

(5)

Inclusive of all full and partial interior upgrades completed through March 31, 2022. Cumulative results exclude rehabs completed for properties sold through March 31, 2022.

(6)

For more information and a reconciliation of debt to net debt, see the "Definitions and Reconciliations of Non-GAAP Measures" section of this release.

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

2022 Full Year Guidance Summary

NXRT is providing updated 2022 guidance ranges for earnings per diluted share, Core FFO per diluted share, Same Store rental income, Same Store total revenue, Same Store total expenses and Same Store NOI as follows:

Guidance Range (1)

Low-End

Mid-Point

High-End

Prior Mid-Point

Earnings (loss) per diluted share (2)

$

4.11

$

4.19

$

4.28

$

4.15

Core FFO per diluted share (2) (3)

$

2.93

$

3.01

$

3.09

$

2.97

Same Store Growth: (4)

Rental Income

10.7

%

11.4

%

12.2

%

10.9

%

Total Revenue

10.1

%

10.8

%

11.6

%

10.2

%

Total Expenses

6.6

%

5.9

%

5.2

%

6.3

%

Same Store NOI (3)

12.6

%

14.3

%

16.0

%

13.0

%

Other Considerations: (5)

Acquisitions

$

150.0

$

225.0

$

300.0

$

225.0

Dispositions

$

150.0

$

225.0

$

300.0

$

225.0

(1)

Full Year 2022 guidance forecast includes Same Store growth projections presented above, which takes into effect the forecast dispositions of Old Farm, Stone Creek at Old Farm and Hollister Place, thereby removing those assets from the Full Year 2022 pro forma Same Store pool.

(2)

Weighted average diluted share count estimate for full year 2021 is approximately 26.2 million.

(3)

Same Store NOI and Core FFO are non-GAAP measures. For reconciliations of Full Year 2022 Same Store NOI and Core FFO guidance to net loss guidance and a discussion of why we consider these non-GAAP measures useful, see the "Definitions and Reconciliations of Non-GAAP Measures" section of this release.

(4)

Year-over-year growth for the Full Year 2022 pro forma Same Store pool (31 properties).

(5)

We continue to evaluate our Portfolio for capital recycling opportunities. Transaction volumes presented are incorporated into the EPS and CFFO guidance above. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions, except as required by law.

Additional information on 2022 financial and earnings guidance is included in the following sections of this release.

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Components of Net Asset Value

(dollar and share amounts in thousands, except per share and per unit data)

REAL ESTATE VALUE BY MARKET

Property

NOI

Cap Rate Range (1)

Value Range (2)

Market

Contribution

Min

Max

Min

Max

Texas

Dallas/Fort Worth

13.5%

3.5%

3.8%

$

555,577

$

614,942

Houston

5.6%

3.9%

4.2%

$

206,726

$

229,988

North Carolina

Raleigh

4.2%

3.5%

3.8%

172,087

190,475

Charlotte

6.8%

3.5%

3.8%

$

279,675

$

309,560

Georgia

Atlanta

11.0%

3.5%

3.8%

$

451,898

$

500,185

Tennessee

Nashville

8.0%

3.5%

3.8%

$

326,307

$

361,174

Florida

Orlando

7.5%

3.5%

3.8%

$

309,027

$

342,048

Tampa

3.2%

3.5%

3.8%

$

132,892

$

147,092

South Florida

15.7%

3.5%

3.8%

$

642,898

$

711,594

Nevada

Las Vegas

9.0%

3.5%

3.8%

$

367,306

$

406,553

Arizona

Phoenix

15.5%

3.5%

3.8%

$

634,421

$

702,212

Total / Ave

100.0%

3.5%

3.8%

$

4,078,814

$

4,515,823

NAV SUMMARY

Component

Min

Max

Tangible Assets

Real Estate (2)

$

4,078,814

$

4,515,823

Cash

99,538

Restricted Cash - Renovation Reserves (5)

14,057

Renovation Capital Expenditures (5)

(14,057)

Cash Adjustments (6)

(71,981)

Fair Market Value of Interest Rate Swaps

58,104

Other Assets

39,581

Value of Assets

$

4,204,056

$

4,641,065

Tangible Liabilities

Credit Facility (7)

$335,000

Mortgage Debt

1,280,765

New Mortgage Debt - Adair/Estates (4/1/2022) (4)

78,272

Total Outstanding Debt

1,694,037

Forward 12-month Principal Payments

(854)

Total Outstanding Debt (FY 2022 Est.)

1,693,183

Other Tangible Liabilities (at Book)

28,023

Value of Liabilities

$1,721,206

Net Leverage (mid-point)

39%

Net Asset Value

$

2,482,850

$

2,919,859

Shares outstanding - diluted (FY 2022 Est.)

26,251

Est. NAV / Share

$

94.58

$

111.23

NAV / Share (mid-point)

$102.90

NOI ESTIMATE

Q4 2021 NOI Actual

34,789

Q1 2022 NOI Actual

36,565

Low

High

Estimated Q2 2022 NOI Guidance (3)

36,940

38,540

2022 NOI Pro Forma Guidance (3)(4)

$

153,886

$

158,974

IMPLIED VALUATION METRICS

Min

Max

Implied Real Estate Value

$4,078,814

$4,515,823

No. of Units (April 1, 2022) (2)(4)

15,387

Implied Value/Apartment Unit

$265.1

$293.5

Implied Value/Apartment Unit (mid-point)

$279.3

(1)

Management estimates based on independent third-party review of our properties.

(2)

Full Year 2022 NOI Guidance is presented for the existing portfolio (41 properties as of April 1, 2022).

(3)

The Company anticipates net income will be in the range between approximately $108.2 million and $112.6 million for the full year 2022 and between ($5.0) million and ($6.6) million for the second quarter of 2022. FY 2022 NOI Guidance considers the completed acquisitions of The Adair and Estates on Maryland and the forecasted dispositions of Hollister Place, Old Farm and Stone Creek at Old Farm and assumes no further acquisition or disposition activity for the remainder of the year.

(4)

2022 Pro Forma NOI assumes The Adair, Estates on Maryland, Old Farm, Stone Creek and Hollister Place were owned for the full year 2022, which we estimate would have contributed approximately an additional $800, $1,000, $1,900, $500 and $700, respectively, to NOI. The Adair and Estates on Maryland mortgage debt added to liabilities.

(5)

Includes approximately $14.1 million that is held for value-add upgrades; reduced by $14.1 million for estimated 2022 rehab expenditures.

(6)

Includes approximately $0.9 million in forward 12-month principal payments (which excludes the repayment of The Cornerstone loan which we expect to refinance in 2023) and $71.1 million of cash used to purchase The Adair and Estates on Maryland on April 1, 2022.

(7)

Includes outstanding balance of March 31, 2022.

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

March 31, 2022

December 31, 2021

(Unaudited)

ASSETS

Operating Real Estate Investments

Land

$

375,857

$

375,857

Buildings and improvements

1,745,341

1,743,866

Intangible lease assets

1,376

2,576

Construction in progress

4,529

6,078

Furniture, fixtures and equipment

127,030

120,419

Total Gross Operating Real Estate Investments

2,254,133

2,248,796

Accumulated depreciation and amortization

(309,002

)

(287,096

)

Total Net Real Estate Investments

1,945,131

1,961,700

Cash and cash equivalents

99,538

49,450

Restricted cash

32,586

39,246

Accounts receivable, net

9,421

4,844

Prepaid and other assets

11,631

4,701

Fair market value of interest rate swaps

58,104

3,526

TOTAL ASSETS

$

2,156,411

$

2,063,467

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Mortgages payable, net

$

1,276,240

$

1,276,285

Credit facility, net

332,979

278,215

Accounts payable and other accrued liabilities

12,539

12,590

Accrued real estate taxes payable

7,896

13,182

Accrued interest payable

2,788

2,491

Security deposit liability

2,989

2,945

Prepaid rents

1,811

1,775

Total Liabilities

1,637,242

1,587,483

Redeemable noncontrolling interests in the Operating Partnership

6,614

6,139

Stockholders' Equity:

Preferred stock, $0.01 par value: 100,000,000 shares authorized; 0 shares issued

-

-

Common stock, $0.01 par value: 500,000,000 shares authorized; 25,700,190 and 25,500,567 shares issued and outstanding, respectively

257

255

Additional paid-in capital

411,059

407,803

Accumulated earnings less dividends

44,246

59,209

Accumulated other comprehensive income

56,993

2,578

Total Stockholders' Equity

512,555

469,845

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,156,411

$

2,063,467

NXRT.NEXPOINT.COM

Page9

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share amounts)

(Unaudited)

For the Three Months Ended March 31,

2022

2021

Revenues

Rental income

$

59,297

$

50,340

Other income

1,489

1,456

Total revenues

60,786

51,796

Expenses

Property operating expenses

13,596

11,216

Real estate taxes and insurance

8,720

8,722

Property management fees (1)

1,757

1,485

Advisory and administrative fees (2)

1,843

1,868

Corporate general and administrative expenses

3,486

2,940

Property general and administrative expenses

2,006

1,559

Depreciation and amortization

23,718

20,758

Total expenses

55,126

48,548

Operating income

5,660

3,248

Interest expense

(10,636

)

(10,616

)

Casualty gain

128

-

Miscellaneous income

181

468

Net loss

(4,667

)

(6,900

)

Net loss attributable to redeemable noncontrolling interests in the Operating Partnership

(14

)

(21

)

Net loss attributable to common stockholders

$

(4,653

)

$

(6,879

)

Other comprehensive income

Unrealized gains on interest rate derivatives

54,579

31,342

Total comprehensive income

49,912

24,442

Comprehensive income attributable to redeemable noncontrolling interests in the Operating Partnership

150

73

Comprehensive income attributable to common stockholders

$

49,762

$

24,369

Weighted average common shares outstanding - basic

25,620

25,068

Weighted average common shares outstanding - diluted

25,620

25,068

Loss per share - basic

$

(0.18

)

$

(0.27

)

Loss per share - diluted

$

(0.18

)

$

(0.27

)

(1)

Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Operating Partnership (the "OP").

(2)

Fees incurred to the Company's adviser.

NXRT.NEXPOINT.COM

Page10

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

NOI and Same Store NOI for the Three Months Ended March 31, 2022 and 2021

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our Q1 Same Store NOI for the three months ended March 31, 2022 and 2021 to net loss, the most directly comparable GAAP financial measure (in thousands):

For the Three Months Ended March 31,

2022

2021

Net loss

$

(4,667

)

$

(6,900

)

Adjustments to reconcile net loss to NOI:

Advisory and administrative fees

1,843

1,868

Corporate general and administrative expenses

3,486

2,940

Casualty-related expenses

(1)

1,047

42

Casualty gains

(128

)

-

Pandemic expense

(2)

3

24

Property general and administrative expenses

(3)

627

376

Depreciation and amortization

23,718

20,758

Interest expense

10,636

10,616

NOI

$

36,565

$

29,724

Less Non-Same Store

Revenues

(5,283

)

(1,919

)

Operating expenses

1,876

1,031

Operating income

(3

)

(341

)

Same Store NOI

$

33,155

$

28,495

(1)

Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses.

(2)

Represents additional cleaning, disinfecting and other costs incurred at the properties related to COVID-19.

(3)

Adjustment to net 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.

NXRT.NEXPOINT.COM

Page11

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Q1 Same Store Results of Operations for the Three Months Ended March 31, 2022 and 2021

There are 34 properties encompassing 13,456 units of apartment space, or approximately 90.8% of our Portfolio, in our same store pool for the three months ended March 31, 2022 and 2021 (our "Q1 Same Store" properties). Our Q1 Same Store properties exclude the following 5 properties in our Portfolio as of March 31, 2022: The Verandas at Lake Norman, Creekside at Matthews, Six Forks Station, High House at Cary and Cutter's Point as well as the 44 units mentioned on page 1 that are currently down.

As of March 31, 2022, our Q1 Same Store properties were approximately 94.4% leased with a weighted average monthly effective rent per occupied apartment unit of $1,310, a year-over-year decrease of 90 bps and increase of $175, respectively.

The following table reflects the revenues, property operating expenses and NOI for the three months ended March 31, 2022 and 2021 for our Q1 Same Store and Non-Same Store properties (dollars in thousands):

For the Three Months Ended March 31,

2022

2021

$ Change

% Change

Revenues

Same Store

Rental income

$

54,121

$

48,434

$

5,687

11.7

%

Other income

1,382

1,443

(61

)

-4.2

%

Same Store revenues

55,503

49,877

5,626

11.3

%

Non-Same Store

Rental income

5,176

1,906

3,270

N/M

Other income

107

13

94

N/M

Non-Same Store revenues

5,283

1,919

3,364

N/M

Total revenues

60,786

51,796

8,990

17.4

%

Operating expenses

Same Store

Property operating expenses (1)

11,569

10,565

1,004

9.5

%

Real estate taxes and insurance

8,110

8,407

(297

)

-3.5

%

Property management fees (2)

1,605

1,423

182

12.8

%

Property general and administrative expenses (3)

1,242

1,115

127

11.4

%

Same Store operating expenses

22,526

21,510

1,016

4.7

%

Non-Same Store

Property operating expenses (4)

977

585

392

N/M

Real estate taxes and insurance

610

315

295

N/M

Property management fees (2)

152

62

90

N/M

Property general and administrative expenses (5)

137

69

68

N/M

Non-Same Store operating expenses

1,876

1,031

845

N/M

Total operating expenses

24,402

22,541

1,861

8.3

%

Operating income

Same Store

Miscellaneous income

178

128

50

39.1

%

Non-Same Store

Miscellaneous income

3

341

(338

)

N/M

Total operating income

181

469

(288

)

N/M

NOI

Same Store

33,155

28,495

4,660

16.4

%

Non-Same Store

3,410

1,229

2,181

N/M

Total NOI (6)

$

36,565

$

29,724

$

6,841

23.0

%

(1)

For the three months ended March 31, 2022 and 2021, excludes approximately $(1,676,000) and $58,000, respectively, of casualty-related expenses/(recoveries).

(2)

Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.

NXRT.NEXPOINT.COM

Page12

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

(3)

For the three months ended March 31, 2022 and 2021, excludes approximately $609,000 and $322,000, respectively, of 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.

(4)

For the three months ended March 31, 2022 and 2021, excludes approximately $117,000 and $8,000, respectively, of casualty-related expenses.

(5)

For the three months ended March 31, 2022 and 2021, excludes approximately $18,000 and $54,000, respectively, of 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.

(6)

For additional information regarding NOI, see the "Definitions and Reconciliations of Non-GAAP Measures" and "NOI and Same Store NOI" sections of this release.

The following table contains additional information about our Q1 Same Store properties rent and occupancy metrics, revenues, operating expenses and NOI for the three months ended March 31, 2022 and 2021 (dollars in thousands, except for per unit data):

Q1 2022

Q1 2021

% Change

Same Store Total Units

13,456

13,406

Same Store Occupied Units

12,699

12,781

Same Store Ending Occupancy

94.4

%

95.3

%

-0.9

%

Same Store Average Rent per Unit

$

1,310

$

1,135

15.4

%

Same Store Revenues

Same Store Rental Income

$

54,121

$

48,434

11.7

%

Same Store Other Income

1,382

1,443

-4.2

%

Total Same Store Revenues

55,503

49,877

11.3

%

Same Store Operating Expenses

Payroll

4,581

4,276

7.1

%

Repairs & Maintenance

4,416

4,008

10.2

%

Utilities

2,572

2,281

12.8

%

Real Estate Taxes

6,835

7,253

-5.8

%

Insurance

1,275

1,154

10.5

%

Property Management Fees

1,605

1,423

12.8

%

Office Operations

801

722

10.9

%

Marketing

441

393

12.2

%

Total Same Store Operating Expenses

22,526

21,510

4.7

%

Same Store Operating Income

Miscellaneous income

178

128

39.1

%

Total Same Store Operating Income

178

128

39.1

%

Q1 Same Store NOI

$

33,155

$

28,495

16.4

%

NXRT.NEXPOINT.COM

Page13

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Q1 Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)

Properties by Market (1)

Unit Count

Average Effective Rent

Occupancy

Total Rental Income

Total

Q1 2022

Q1 2021

% Change

Q1 2022

Q1 2021

bps ∆

Q1 2022

Q1 2021

% Change

Texas

Dallas

2,367

$1,122

$973

15.3%

93.6%

95.6%

-200

$8,492

$7,693

10.4%

Houston

1,183

1,203

1,118

7.6%

93.7%

94.5%

-80

4,328

4,072

6.3%

Average/Total

3,550

1,149

1,021

12.5%

93.7%

95.2%

-150

12,820

11,765

9.0%

North Carolina

Charlotte

562

1,150

1,015

13.3%

95.2%

96.4%

-120

1,945

1,817

7.0%

Average/Total

562

1,150

1,015

13.3%

95.2%

96.4%

-120

1,945

1,817

7.0%

Georgia

Atlanta

1,457

1,311

1,135

15.5%

94.6%

95.7%

-110

5,520

5,093

8.4%

Average/Total

1,457

1,311

1,135

15.5%

94.6%

95.7%

-110

5,520

5,093

8.4%

Tennessee

Nashville

1,338

1,160

1,019

13.8%

94.9%

94.6%

30

4,931

4,312

14.4%

Average/Total

1,338

1,160

1,019

13.8%

94.9%

94.6%

30

4,931

4,312

14.4%

Florida

Orlando

1,172

1,344

1,151

16.8%

95.2%

94.5%

70

4,828

4,152

16.3%

Tampa

576

1,216

991

22.7%

93.9%

95.7%

-180

2,096

1,820

15.2%

South Florida

1,959

1,723

1,471

17.1%

94.9%

96.3%

-140

10,434

9,214

13.2%

Average/Total

3,707

1,524

1,295

17.7%

94.9%

95.6%

-70

17,358

15,186

14.3%

Arizona

Phoenix

1,679

1,335

1,136

17.5%

95.3%

96.4%

-110

7,089

6,187

14.6%

Average/Total

1,679

1,335

1,136

17.5%

95.3%

96.4%

-110

7,089

6,187

14.6%

Nevada

Las Vegas

1,163

1,328

1,153

15.2%

92.3%

93.1%

-80

4,458

4,074

9.4%

Average/Total

1,163

1,328

1,153

15.2%

92.3%

93.1%

-80

4,458

4,074

9.4%

Average/Total

13,456

$1,310

$1,135

15.4%

94.4%

95.3%

-90

$54,121

$48,434

11.7%

(1)

This table only includes the 34 properties in our Q1 Same Store pool.

NXRT.NEXPOINT.COM

Page14

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

QoQ Same Store Properties Operating Metrics

(dollars in thousands, except for per unit data)

Properties by Market (1)

Unit Count

Average Effective Rent

Occupancy

Total Rental Income

Total

Q1 2022

Q4 2021

% Change

Q1 2022

Q4 2021

bps ∆

Q1 2022

Q4 2021

% Change

Texas

Dallas

2,367

$

1,122

$

1,068

5.1%

93.6

%

94.8

%

-120

$

8,492

$

8,245

3.0%

Houston

1,183

1,203

1,185

1.5%

93.7

%

94.1

%

-40

4,328

4,309

0.4%

Average/Total

3,550

1,149

1,107

3.8%

93.7

%

94.6

%

-90

12,820

12,554

2.1%

North Carolina

Charlotte

562

1,150

1,109

3.7%

95.2

%

95.4

%

-20

1,945

1,899

2.4%

Average/Total

562

1,150

1,109

3.7%

95.2

%

95.4

%

-20

1,945

1,899

2.4%

Georgia

Atlanta

1,457

1,311

1,281

2.3%

94.6

%

92.4

%

220

5,520

5,320

3.8%

Average/Total

1,457

1,311

1,281

2.3%

94.6

%

92.4

%

220

5,520

5,320

3.8%

Tennessee

Nashville

1,338

1,160

1,108

4.7%

94.9

%

95.4

%

-50

4,931

4,793

2.9%

Average/Total

1,338

1,160

1,108

4.7%

94.9

%

95.4

%

-50

4,931

4,793

2.9%

Florida

Orlando

1,172

1,344

1,285

4.6%

95.2

%

95.6

%

-40

4,828

4,659

3.6%

Tampa

576

1,216

1,161

4.7%

93.9

%

94.8

%

-90

2,096

2,030

3.3%

South Florida

1,959

1,723

1,645

4.7%

94.9

%

94.5

%

40

10,433

9,854

5.9%

Average/Total

3,707

1,524

1,456

4.7%

94.9

%

94.9

%

0

17,357

16,543

4.9%

Arizona

Phoenix

1,679

1,335

1,284

4.0%

95.3

%

94.9

%

40

7,089

6,887

2.9%

Average/Total

1,679

1,335

1,284

4.0%

95.3

%

94.9

%

40

7,089

6,887

2.9%

Nevada

Las Vegas

1,163

1,328

1,293

2.7%

92.3

%

91.0

%

130

4,459

4,380

1.8%

Average/Total

1,163

1,328

1,293

2.7%

92.3

%

91.0

%

130

4,459

4,380

1.8%

Average/Total

13,456

$

1,310

$

1,260

4.0%

94.4

%

94.3

%

10

$

54,121

$

52,376

3.3%

(1)

This table only includes the 34 properties in our Q1 Same Store pool.

NXRT.NEXPOINT.COM

Page15

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

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 months ended March 31, 2022 and 2021 (in thousands, except per share amounts):

For the Three Months Ended March 31,

2022

2021

% Change

Net loss

$

(4,667

)

$

(6,900

)

32.4

%

Depreciation and amortization

23,718

20,758

14.3

%

Adjustment for noncontrolling interests

(57

)

(41

)

39.0

%

FFO attributable to common stockholders

18,994

13,817

37.5

%

FFO per share - basic

$

0.74

$

0.55

34.5

%

FFO per share - diluted

$

0.74

$

0.55

34.5

%

Casualty-related expenses

1,047

42

N/M

Casualty gain

(128

)

-

0.0

%

Pandemic expense

(1)

3

24

N/M

Amortization of deferred financing costs - acquisition term notes

179

209

(14.4

)%

Adjustment for noncontrolling interests

(4

)

(1

)

N/M

Core FFO attributable to common stockholders

20,091

14,091

42.6

%

Core FFO per share - basic

$

0.78

$

0.56

39.5

%

Core FFO per share - diluted

$

0.78

$

0.56

39.5

%

Amortization of deferred financing costs - long term debt

386

352

9.7

%

Equity-based compensation expense

1,876

1,608

16.7

%

Adjustment for noncontrolling interests

(7

)

(6

)

16.7

%

AFFO attributable to common stockholders

22,346

16,045

39.3

%

AFFO per share - basic

$

0.87

$

0.64

36.3

%

AFFO per share - diluted

$

0.87

$

0.64

36.3

%

Weighted average common shares outstanding - basic

25,620

25,068

2.2

%

Weighted average common shares outstanding - diluted

25,620

25,068

2.2

%

Dividends declared per common share

$

0.380

$

0.341

11.4

%

FFO Coverage - diluted

(2)

1.95x

1.62x

20.8

%

Core FFO Coverage - diluted

(2)

2.06x

1.65x

25.3

%

AFFO Coverage - diluted

(2)

2.30x

1.88x

22.4

%

(1)

Represents additional cleaning, disinfecting and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

(2)

Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

NXRT.NEXPOINT.COM

Page16

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Capital Expenditures

Q1 2022

Q1 2021

% Change

($ in thousands)

Capital Expenditures

Acquisition Capital Expenditures

$

-

$

-

N/A

Capitalized Rehab Expenditures

Interior

4,714

2,332

102.2

%

Exterior and common area

917

2,960

-69.0

%

Capitalized Maintenance Expenditures

Recurring

2,043

1,259

62.3

%

Non-Recurring

1,200

732

63.9

%

Total Capital Expenditures

$

8,874

$

7,283

21.9

%

NXRT.NEXPOINT.COM

Page17

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Interiors (Full & Partials)

Property Name (1)

Units

Rehab Units

Completed (2)

Average Rent

Pre-Rehab

Average Rent

Post-Rehab

Avg. Rehab

Cost

Per Unit (3)

Post-Rehab

Rent

Change %

ROI (3)

Value-Add Programs In Progress

Arbors on Forest Ridge

210

165

$

785

$

885

$

4,429

12.9

%

27.3

%

Cutter's Point

196

140

956

1,073

5,825

12.3

%

24.2

%

Silverbrook

642

469

795

880

4,071

10.8

%

25.3

%

Summit at Sabal Park

252

213

951

1,053

5,669

10.7

%

21.6

%

Courtney Cove

324

211

896

998

4,887

11.4

%

25.1

%

Timber Creek

352

222

869

1,011

7,573

16.3

%

22.5

%

Radbourne Lake

225

315

1,020

1,066

1,110

4.6

%

50.4

%

Sabal Palm at Lake Buena Vista

400

32

1,265

1,365

986

7.9

%

121.8

%

The Cornerstone

430

362

950

1,039

5,359

9.3

%

19.9

%

The Preserve at Terrell Mill

752

606

832

987

10,104

18.5

%

18.3

%

Versailles

388

293

801

899

6,127

12.2

%

19.2

%

Seasons 704 Apartments

222

195

1,119

1,230

6,048

9.9

%

22.0

%

Madera Point

256

234

847

954

4,232

12.6

%

30.3

%

Venue at 8651

333

271

803

911

6,711

13.4

%

19.3

%

Parc500

217

185

1,232

1,418

14,314

15.1

%

15.6

%

The Venue on Camelback

415

194

720

973

10,131

35.2

%

30.0

%

Hollister Place

260

202

904

1,055

7,413

16.7

%

24.4

%

Rockledge Apartments

708

296

1,133

1,326

10,397

17.1

%

22.3

%

Atera Apartments

380

190

1,145

1,294

3,332

13.0

%

53.6

%

Versailles II

242

53

930

1,056

4,851

13.5

%

31.1

%

Brandywine I & II

632

283

990

1,145

8,602

15.7

%

21.6

%

Bella Vista

248

141

1,400

1,557

10,828

11.2

%

17.4

%

The Enclave

204

123

1,393

1,574

9,723

13.0

%

22.3

%

The Heritage

204

121

1,324

1,479

10,829

11.8

%

17.2

%

Summers Landing

196

18

861

1,020

7,612

18.5

%

25.1

%

Residences at Glenview Reserve

360

102

1,054

1,229

11,219

16.6

%

18.7

%

Residences at West Place

342

58

1,330

1,473

7,426

10.7

%

23.0

%

Avant at Pembroke Pines

1,520

358

1,651

1,902

14,023

15.2

%

21.5

%

Arbors of Brentwood

346

71

1,237

1,405

9,155

13.6

%

22.1

%

Torreyana Apartments

316

25

1,455

1,575

11,858

8.3

%

12.2

%

Bloom

528

60

1,231

1,386

11,906

12.6

%

15.7

%

Bella Solara

320

76

1,262

1,425

9,897

12.9

%

19.7

%

Fairways of San Marcos

352

67

1,502

1,679

11,403

11.8

%

18.7

%

The Verandas at Lake Norman

264

14

1,422

1,604

10,070

12.8

%

21.6

%

Creekside at Matthews

240

16

1,310

1,417

5,037

8.2

%

25.5

%

Six Forks Station

323

15

1,084

1,315

10,027

21.4

%

27.7

%

High House at Cary (4)

302

2

N/A

N/A

N/A

N/A

N/A

Total/Weighted Average

13,901

6,398

$

1,006

$

1,145

$

7,648

13.8

%

21.8

%

(1)

We do not plan to upgrade 100% of the units at each of our properties.

(2)

Inclusive of all full and partial interior upgrades completed through March 31, 2022.

(3)

Inclusive of all full and partial interior upgrades completed and leased through March 31, 2022.

(4)

High House at Cary completed two interior rehab units in the first quarter, neither were leased as of March 31, 2022.

NXRT.NEXPOINT.COM

Page18

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Kitchen & Laundry Appliances

Property Name (1)

Units

Rehab Units

Completed (2)

Avg. Rehab

Cost

Per Unit (3)

Post-Rehab

Rent

Change $

ROI (3)

Value-Add Programs In Progress

Arbors on Forest Ridge

210

114

$

721

$

40

66.9

%

Cutter's Point

196

129

717

45

76.1

%

Silverbrook

642

369

726

48

80.2

%

Summit at Sabal Park

252

234

990

40

48.5

%

Timber Creek

352

133

750

45

72.0

%

Radbourne Lake

225

224

717

40

66.9

%

Sabal Palm at Lake Buena Vista

400

634

599

86

171.8

%

The Cornerstone

430

17

809

50

74.2

%

Versailles

388

295

864

50

68.9

%

Madera Point

256

156

885

30

40.2

%

Venue at 8651

333

221

716

46

77.1

%

Hollister Place

260

227

961

50

62.4

%

Rockledge Apartments

708

580

801

40

60.0

%

Atera Apartments

380

356

805

40

59.9

%

Versailles II

242

121

875

27

37.3

%

Brandywine I & II

632

79

1,037

78

90.8

%

Summers Landing

196

76

801

50

74.9

%

Avant at Pembroke Pines

1,520

50

789

39

58.9

%

Arbors of Brentwood

346

282

819

50

73.0

%

The Verandas at Lake Norman

264

57

1,087

45

49.7

%

Creekside at Matthews

240

75

1,083

55

60.9

%

Six Forks Station

323

81

1,100

55

60.0

%

Total/Weighted Average

8,795

4,510

$

812

$

48

70.8

%

(1)

We do not plan to upgrade 100% of the units at each of our properties.

(2)

Inclusive of all kitchen and laundry appliance upgrades completed through March 31, 2022.

(3)

Inclusive of all kitchen and laundry appliance upgrades completed and leased through March 31, 2022.

NXRT.NEXPOINT.COM

Page19

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Value-Add Program Details: Smart Home Technology Packages

Property Name (1)

Units

Rehab Units

Completed (2)

Avg. Rehab

Cost

Per Unit (3)

Post-Rehab

Rent

Change $

ROI (3)

Value-Add Programs In Progress

Arbors on Forest Ridge

210

210

$

1,416

$

45

27.7

%

Cutter's Point

196

196

1,400

45

28.0

%

Silverbrook

642

642

1,308

45

29.9

%

Courtney Cove

324

324

1,238

35

22.4

%

Timber Creek

352

352

1,299

45

30.2

%

Radbourne Lake

225

225

630

35

50.0

%

Sabal Palm at Lake Buena Vista

400

400

1,237

45

31.7

%

The Cornerstone

430

430

1,236

45

31.7

%

Versailles

388

388

1,080

45

36.3

%

Madera Point

256

256

1,283

45

30.5

%

Venue at 8651

333

333

1,229

45

31.9

%

Hollister Place

260

260

843

35

47.3

%

Old Farm

734

734

928

45

55.3

%

Stone Creek at Old Farm

190

190

909

45

56.5

%

Atera Apartments

380

380

1,339

50

33.5

%

Versailles II

242

242

1,241

45

31.6

%

Brandywine I & II

632

632

1,234

45

31.7

%

Bella Vista

248

248

970

40

43.3

%

The Enclave

204

204

966

40

43.5

%

The Heritage

204

204

997

40

42.1

%

Summers Landing

196

196

1,449

45

27.0

%

Residences at Glenview Reserve

360

360

1,017

45

46.9

%

Avant at Pembroke Pines

1,520

1,520

1,350

45

29.0

%

Arbors of Brentwood

346

346

1,419

45

27.6

%

Fairways of San Marcos

352

352

901

40

19.7

%

Total/Weighted Average

9,624

9,624

$

1,185

$

43

33.5

%

Planned Value-Add Programs

Rent Change & ROI

(Projections)

Summit at Sabal Park

252

-

TBD

TBD

TBD

The Preserve at Terrell Mill

752

-

TBD

TBD

TBD

Seasons 704 Apartments

222

-

TBD

TBD

TBD

The Venue on Camelback

415

-

TBD

TBD

TBD

Rockledge Apartments

708

-

TBD

TBD

TBD

Residences at West Place

342

-

TBD

TBD

TBD

Torreyana Apartments

316

-

TBD

TBD

TBD

Bloom

528

-

TBD

TBD

TBD

Bella Solara

320

-

TBD

TBD

TBD

The Verandas at Lake Norman

264

-

TBD

TBD

TBD

Creekside at Matthews

240

-

TBD

TBD

TBD

Six Forks Station

323

-

TBD

TBD

TBD

Total/Weighted Average Planned

4,682

-

TBD

TBD

TBD

(1)

We do not plan to upgrade 100% of the units at each of our properties.

(2)

Inclusive of all smart home technology package upgrades completed through March 31, 2022.

(3)

Inclusive of all smart home technology package upgrades completed and leased through March 31, 2022.

NXRT.NEXPOINT.COM

Page20

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Outstanding Debt Details

Mortgage Debt

The following table contains summary information concerning the mortgage debt of the Company as of March 31, 2022 (dollars in thousands):

Operating Properties

Type

Term (months)

Outstanding

Principal (1)

Interest Rate (2)

Maturity Date

Arbors on Forest Ridge

Floating

84

$

13,130

2.13%

7/1/2024

Cutter's Point

Floating

84

16,640

2.13%

7/1/2024

Silverbrook

Floating

84

30,590

2.13%

7/1/2024

The Summit at Sabal Park

Floating

84

13,560

2.07%

7/1/2024

Courtney Cove

Floating

84

13,680

2.07%

7/1/2024

The Preserve at Terrell Mill

Floating

84

42,480

2.07%

7/1/2024

Versailles

Floating

84

23,880

2.07%

7/1/2024

Seasons 704 Apartments

Floating

84

17,460

2.07%

7/1/2024

Madera Point

Floating

84

15,150

2.07%

7/1/2024

Venue at 8651

Floating

84

13,734

2.23%

7/1/2024

The Venue on Camelback

Floating

84

28,093

2.13%

7/1/2024

Old Farm

Floating

84

52,886

2.13%

7/1/2024

Stone Creek at Old Farm

Floating

84

15,274

2.13%

7/1/2024

Timber Creek

Floating

84

24,100

1.71%

10/1/2025

Radbourne Lake

Floating

84

20,000

1.74%

10/1/2025

Sabal Palm at Lake Buena Vista

Floating

84

42,100

1.75%

9/1/2025

Cornerstone

Fixed

120

20,672

4.24%

3/1/2023

Parc500

Fixed

120

14,590

4.49%

8/1/2025

Hollister Place

Floating

84

14,811

1.79%

10/1/2025

Rockledge Apartments

Floating

84

68,100

2.02%

7/1/2024

Atera Apartments

Floating

84

29,500

1.93%

11/1/2024

Versailles II

Floating

84

12,061

1.63%

10/1/2025

Brandywine I & II

Floating

84

43,835

1.63%

10/1/2025

Bella Vista

Floating

84

29,040

1.77%

2/1/2026

The Enclave

Floating

84

25,322

1.77%

2/1/2026

The Heritage

Floating

84

24,625

1.77%

2/1/2026

Summers Landing

Floating

84

10,109

1.63%

10/1/2025

Residences at Glenview Reserve

Floating

84

26,270

1.89%

10/1/2025

Residences at West Place

Fixed

120

33,817

4.24%

10/1/2028

Avant at Pembroke Pines

Floating

84

177,100

1.88%

9/1/2026

Arbors of Brentwood

Floating

84

34,237

1.88%

10/1/2026

Torreyana Apartments

Floating

84

37,400

2.15%

12/1/2026

Bloom

Floating

84

58,850

2.15%

12/1/2026

Bella Solara

Floating

84

36,575

2.15%

12/1/2026

Fairways at San Marcos

Floating

84

46,464

2.29%

12/1/2027

The Verandas at Lake Norman

Floating

84

34,925

2.01%

7/1/2028

Creekside at Matthews

Floating

84

31,900

2.01%

7/1/2028

Six Forks Station

Floating

120

41,180

1.87%

10/1/2031

High House at Cary (3)

Floating

84

46,625

2.17%

1/1/2029

$

1,280,765

Fair market value adjustment

1,009

Deferred financing costs, net of accumulated amortization of $5,433

(5,534

)

$

1,276,240

(1)

Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2)

Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. One-month LIBOR was 0.452% and 30-Day Average SOFR was 0.15934% as of March 31, 2022.

(3)

Formerly known as Hudson High House.

NXRT.NEXPOINT.COM

Page21

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Credit Facility

The following table contains summary information concerning the Company's credit facility as of March 31, 2022 (dollars in thousands):

Type

Term(months)

Outstanding

Principal

Interest Rate (1)

Maturity Date

Corporate Credit Facility

Floating

36

$

335,000

2.80%

6/30/2024

Deferred financing costs, net of accumulated amortization of $461

(2,021

)

$

332,979

(1)

Interest rate is based on Term SOFR plus an applicable margin. Term SOFR as of March 31, 2022 was 0.3024%.

Interest Rate Swap Agreements

As of March 31, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Effective Date

Termination Date

Counterparty

Notional Amount

Fixed Rate (1)

April 1, 2017

April 1, 2022

KeyBank

$

100,000

1.9570

%

May 1, 2017

April 1, 2022

KeyBank

50,000

1.9610

%

July 1, 2017

July 1, 2022

KeyBank

100,000

1.7820

%

June 1, 2019

June 1, 2024

KeyBank

50,000

2.0020

%

June 1, 2019

June 1, 2024

Truist

50,000

2.0020

%

September 1, 2019

September 1, 2026

KeyBank

100,000

1.4620

%

September 1, 2019

September 1, 2026

KeyBank

125,000

1.3020

%

January 3, 2020

September 1, 2026

KeyBank

92,500

1.6090

%

March 4, 2020

June 1, 2026

Truist

100,000

0.8200

%

June 1, 2021

September 1, 2026

KeyBank

200,000

0.8450

%

June 1, 2021

September 1, 2026

KeyBank

200,000

0.9530

%

March 1, 2022

March 1, 2025

Truist

145,000

0.5730

%

March 1, 2022

March 1, 2025

Truist

105,000

0.6140

%

$

1,417,500

1.2128

%

(2)

(1)

The floating rate option for the interest rate swaps is one-month LIBOR. As of March 31, 2022, one-month LIBOR was 0.452%.

(2)

Represents the weighted average fixed rate of the interest rate swaps.

The following table contains summary information regarding our forward interest rate swap (dollars in thousands):

Effective Date

Termination Date

Counterparty

Notional Amount

Fixed Rate (1)

September 1, 2026

January 1, 2027

KeyBank

$

92,500

1.7980

%

(1)

The floating rate option for the interest rate swap is one-month LIBOR. As of March 31, 2022, one-month LIBOR was 0.452%.

(2)

Represents the weighted average fixed rate of the forward interest rate swap.

NXRT.NEXPOINT.COM

Page22

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Debt Maturity Schedule

The following table summarizes our contractual obligations and commitments as of March 31, 2022 for the next five calendar years subsequent to March 31, 2022 and thereafter. We used the applicable reference rates as of March 31, 2022 to calculate interest expense due by period on our floating rate debt and net interest expense due by period on our interest rate swaps.

Payments Due by Period (in thousands)

Total

2022

2023

2024

2025

2026

Thereafter

Operating Properties Mortgage Debt

Principal payments

$

1,280,765

$

1,040

$

21,047

$

394,956

$

205,662

$

423,149

$

234,911

Interest expense

(1)

120,478

27,846

26,532

22,440

16,861

11,213

15,586

Total

$

1,401,243

$

28,886

$

47,579

$

417,396

$

222,523

$

434,362

$

250,497

Credit Facility

Principal payments

$

335,000

$

-

$

-

$

335,000

$

-

$

-

$

-

Interest expense

21,493

7,216

9,544

4,733

-

-

-

Total

$

356,493

$

7,216

$

9,544

$

339,733

$

-

$

-

$

-

Total contractual obligations and commitments

$

1,757,736

$

36,102

$

57,123

$

757,129

$

222,523

$

434,362

$

250,497

(1)

Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of March 31, 2022, we had entered into 13 interest rate swap transactions with a combined notional amount of $1.4 billion. We have allocated the total impact of expected settlements on the $1.4 billion notional amount of interest rate swaps to 'Operating Properties Mortgage Debt.' We used the applicable reference rates as of March 31, 2022 to determine our expected settlements through the terms of the interest rate swaps.

(1)

As of March 31, 2022, we had total indebtedness of $1.6 billion at an adjusted weighted average interest rate of 2.95%, of which $1.5 billion was debt with a floating interest rate. As of March 31, 2022, interest rate swap agreements effectively covered 100% of our $1.2 billion of floating rate mortgage debt outstanding and 61.4% of our $335.0 million floating rate Credit Facility. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.2128% for one-month LIBOR on the $1.4 billion notional amount of interest rate swap agreements that we have entered into as of March 31, 2022, which effectively fix the interest rate on $1.4 billion of our floating rate debt outstanding.

NXRT.NEXPOINT.COM

Page23

NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Acquisition Details

(in thousands, except for unit and per unit amounts)

Property Name (1)

Location

Units

Transaction Date

Purchase Price

Rehab Budget (2)

Total Investment

Per Unit

Arbors on Forest Ridge

Bedford, TX

210

1/31/2014

$12,805

$1,449

$14,254

$67,876

Cutter's Point

Richardson, TX

196

1/31/2014

15,845

1,379

17,224

87,878

Silverbrook

Grand Prairie, TX

642

1/31/2014

30,400

1,662

32,062

49,941

The Summit at Sabal Park

Tampa, FL

252

8/20/2014

19,050

1,655

20,705

82,163

Courtney Cove

Tampa, FL

324

8/20/2014

18,950

1,635

20,585

63,534

Radbourne Lake

Charlotte, NC

225

9/30/2014

24,250

1,437

25,687

114,164

Timber Creek

Charlotte, NC

352

9/30/2014

22,750

3,947

26,697

75,844

Sabal Palm at Lake Buena Vista

Orlando, FL

400

11/5/2014

49,500

1,346

50,846

127,115

Cornerstone

Orlando, FL

430

1/15/2015

31,550

2,610

34,160

79,442

The Preserve at Terrell Mill

Marietta, GA

752

2/6/2015

58,000

6,688

64,688

86,021

Versailles

Dallas, TX

388

2/26/2015

26,165

3,997

30,162

77,737

Seasons 704 Apartments

West Palm Beach, FL

222

4/15/2015

21,000

1,900

22,900

103,153

Madera Point

Mesa, AZ

256

8/5/2015

22,525

1,808

24,333

95,051

Venue at 8651

Fort Worth, TX

333

10/30/2015

19,250

4,626

23,876

71,700

Parc500

West Palm Beach, FL

217

7/27/2016

22,421

5,082

27,503

126,742

The Venue on Camelback

Phoenix, AZ

415

10/11/2016

44,600

6,018

50,618

121,971

Old Farm

Houston, TX

734

12/29/2016

84,721

1,135

85,856

116,970

Stone Creek at Old Farm

Houston, TX

190

12/29/2016

23,332

462

23,794

125,232

Hollister Place

Houston, TX

260

2/1/2017

24,500

2,961

27,461

105,619

Rockledge Apartments

Marietta, GA

708

6/30/2017

113,500

7,685

121,185

171,165

Atera Apartments

Dallas, TX

380

10/25/2017

59,200

3,721

62,921

165,582

Versailles II

Dallas, TX

242

9/26/2018

24,680

2,843

27,523

113,731

Brandywine I & II

Nashville, TN

632

9/26/2018

79,800

7,787

87,587

138,587

Bella Vista

Phoenix, AZ

248

1/28/2019

48,400

3,414

51,814

208,927

The Enclave

Tempe, AZ

204

1/28/2019

41,800

2,608

44,408

217,686

The Heritage

Phoenix, AZ

204

1/28/2019

41,900

2,660

44,560

218,431

Summers Landing

Fort Worth, TX

196

6/7/2019

19,396

2,980

22,376

114,163

Residences at Glenview Reserve

Nashville, TN

360

7/17/2019

45,000

5,695

50,695

140,819

Residences at West Place

Orlando, FL

342

7/17/2019

55,000

4,129

59,129

172,892

Avant at Pembroke Pines

Pembroke Pines, FL

1,520

8/30/2019

322,000

32,583

354,583

233,278

Arbors of Brentwood

Nashville, TN

346

9/10/2019

62,250

4,248

66,498

192,191

Torreyana Apartments

Las Vegas, NV

316

11/22/2019

68,000

2,771

70,771

223,959

Bloom

Las Vegas, NV

528

11/22/2019

106,500

4,786

111,286

210,769

Bella Solara

Las Vegas, NV

320

11/22/2019

66,500

3,642

70,142

219,194

Fairways at San Marcos

Chandler, AZ

352

11/2/2020

84,480

4,366

88,846

252,403

The Verandas at Lake Norman

Charlotte, NC

264

6/30/2021

63,500

4,628

68,128

258,061

Creekside at Matthews

Charlotte, NC

240

6/30/2021

58,000

3,943

61,943

258,096

Six Forks Station

Raleigh, NC

323

9/10/2021

74,760

6,431

81,191

251,365

High House at Cary

Cary, NC

302

12/7/2021

93,250

1,677

94,927

314,328

Total/Weighted Average

14,825

$2,099,530

$164,394

$2,263,924

$152,710

(1)

Only includes properties owned as of March 31, 2022.

(2)

Includes interior and exterior rehab.

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Historical Disposition Details

(in thousands, except unit and per unit amounts)

Property Name

Location

Units

Purchase

Price

Sale

Price

Sales Price Per Unit

Sale Date

Net Cash

Proceeds (1)

Gain on

Sale

Meridian

Austin, TX

200

$

12,300

$

17,250

$

86,250

5/10/2016

$

16,981

$

4,786

Park at Regency and Mandarin Reserve

Jacksonville, FL

679

34,500

47,000

69,219

6/6/2016

46,239

11,584

Park at Blanding and Colonial Forest

Jacksonville, FL

291

12,000

14,500

49,828

8/31/2016

14,259

2,007

Willowdale Crossings

Frederick, MD

432

41,000

45,200

104,630

9/15/2016

44,439

5,576

Jade Park

Dayton Beach, FL

144

7,800

10,000

69,444

9/30/2016

9,868

1,979

The Miramar Apartments

Dallas, TX

314

8,875

16,550

52,707

4/3/2017

16,326

6,368

Toscana

Dallas, TX

192

8,875

13,250

69,010

4/3/2017

13,040

4,283

The Grove at Alban

Frederick, MD

290

23,050

27,500

94,828

4/3/2017

27,021

4,514

Twelve 6 Ten at the Park

Dallas, TX

402

20,984

26,600

66,169

4/27/2017

26,349

4,731

Regatta Bay

Seabrook, TX

240

18,200

28,200

117,500

7/14/2017

27,670

10,423

NAVA Portfolio (2)

Atlanta, GA

1,100

66,200

116,000

105,455

9/27/2017

114,010

48,046

Timberglen

Dallas, TX

304

16,950

30,000

98,684

1/31/2018

29,553

13,742

Edgewater at Sandy Springs

Atlanta, GA

760

58,000

101,250

133,224

8/28/2019

100,219

47,329

Belmont at Duck Creek

Garland, TX

240

18,525

29,500

122,917

8/28/2019

29,148

11,985

The Ashlar

Dallas, TX

264

16,235

29,400

111,364

8/28/2019

29,050

13,205

Heatherstone

Dallas, TX

152

9,450

16,275

107,072

8/28/2019

16,054

6,368

The Pointe at the Foothills

Mesa, AZ

528

52,275

85,400

161,742

8/28/2019

84,663

37,925

Abbington Heights

Antioch, TN

274

17,900

28,050

102,372

8/30/2019

27,630

10,888

Southpoint Reserve at Stoney Creek

Fredericksburg, Virginia

156

17,000

23,500

150,641

3/20/2020

23,176

5,469

Willow Grove

Nashville, Tennessee

244

13,750

31,300

128,279

3/26/2020

31,005

17,513

Woodbridge

Nashville, Tennessee

220

16,000

31,700

144,091

3/26/2020

31,237

15,990

Eagle Crest

Irving, Texas

447

27,325

55,500

124,161

9/30/2020

54,779

30,160

Beechwood Terrace

Antioch, Tennessee

300

21,400

53,600

178,667

11/1/2021

53,003

33,960

Cedar Pointe

Antioch, Tennessee

210

26,500

37,650

179,286

11/1/2021

37,231

12,252

Total/Weighted Average

8,383

$

565,094

$

915,175

$

109,170

$

902,950

$

361,083

(1)

Represents sales price, net of closing costs.

(2)

The NAVA Portfolio consists of The Arbors, The Crossings, The Crossings at Holcomb Bridge and The Knolls.

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

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.

NXRT.NEXPOINT.COM

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

Reconciliations

Reconciliation of Debt to Net Debt

(dollar amounts in thousands)

Q1 2022

Q1 2021

Total mortgage debt

$

1,280,765

$

1,167,880

Credit facilities

335,000

183,000

Total Debt

1,615,765

1,350,880

Adjustments to arrive at net debt:

Cash and cash equivalents

(99,538

)

(22,706

)

Restricted cash held for value-add upgrades and green improvements

(14,057

)

(9,139

)

Net Debt

$

1,502,170

$

1,319,035

Enterprise Value (1)

$

3,823,170

$

2,477,035

Leverage Ratio

39

%

53

%

(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 June 30, 2022

Mid-Point (1)

Mid-Point (1)

Net income (loss)

$

110,390

$

(5,821

)

Adjustments to reconcile net income (loss) to NOI:

Advisory and administrative fees

7,634

1,934

Corporate general and administrative expenses

13,900

3,471

Property general and administrative expenses

(2)

2,868

650

Depreciation and amortization

94,259

24,439

Interest expense

49,069

13,066

Casualty-related recoveries

(128

)

-

Loss on extinguishment of debt and modification costs

1,121

-

Gain on sales of real estate

(127,530

)

-

NOI

(3)

$

151,583

$

37,739

Less Non-Same Store

Revenues

(4)

(41,815

)

Operating expenses

(4)

17,092

Same Store NOI

(4)

$

126,860

(1)

Mid-Point estimates shown for full year and second quarter 2022 guidance. Assumptions made for full year and second 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, which we estimate would have contributed approximately an additional $800, $1,000, $1,900, $500 and $700, respectively, to NOI.

(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.

The following table reconciles our NOI to our net income for the years ended December 31, 2021 and 2020 and the three months ended December 31, 2021 (in thousands):

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

For the Year Ended December 31,

For the Three Months Ended December 31,

2021

2020

2021

Net income

$

23,106

$

44,150

$

38,831

Adjustments to reconcile net income to NOI:

Advisory and administrative fees

7,631

7,670

1,925

Corporate general and administrative expenses

11,966

10,035

2,896

Casualty-related expenses/(recoveries)

(1)

(200

)

790

72

Casualty gains

(2,595

)

(5,886

)

(216

)

Pandemic expense

(2)

50

510

4

Property general and administrative expenses

(3)

2,232

1,644

571

Depreciation and amortization

86,878

82,411

24,543

Interest expense

44,623

44,753

11,793

Loss on extinguishment of debt and modification costs

912

1,470

584

Gain on sales of real estate

(46,214

)

(69,151

)

(46,214

)

NOI

$

128,389

$

118,396

$

34,789

(1)

Adjustment to net income to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

(2)

Represents additional cleaning, disinfecting and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

(3)

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.

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

The following table reconciles our FFO, Core FFO and AFFO guidance to our net income (loss) (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

$

110,390

Depreciation and amortization

94,259

Gain on sales of real estate

(127,530

)

Adjustment for noncontrolling interests

(237

)

FFO attributable to common stockholders

76,882

FFO per share - diluted (1)

$

2.93

Loss on extinguishment of debt and modification costs

1,121

Casualty-related expenses

160

Amortization of deferred financing costs - acquisition term notes

852

Pandemic expense

3

Adjustment for noncontrolling interests

(5

)

Core FFO attributable to common stockholders

79,013

Core FFO per share - diluted (1)

$

3.01

Amortization of deferred financing costs - long term debt

1,536

Equity-based compensation expense

7,868

Adjustment for noncontrolling interests

(30

)

AFFO attributable to common stockholders

88,387

AFFO per share - diluted (1)

$

3.37

Weighted average common shares outstanding - diluted

26,237

(1)

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.

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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT]

The following table reconciles our calculations of FFO, Core FFO and AFFO to net income, the most directly comparable GAAP financial measure, for the years ended December 31, 2021 and 2020 (in thousands, except per share amounts):

For the Year Ended December 31,

2021

2020

Net income

$

23,106

$

44,150

Depreciation and amortization

86,878

82,411

Gain on sales of real estate

(46,214

)

(69,151

)

Adjustment for noncontrolling interests

(191

)

(172

)

FFO attributable to common stockholders

63,579

57,238

FFO per share - basic

$

2.53

$

2.32

FFO per share - diluted

$

2.47

$

2.27

Loss on extinguishment of debt and modification costs

912

1,470

Casualty-related expenses/(recoveries)

(200

)

790

Casualty gains

(2,595

)

(5,886

)

Pandemic expense

(1)

50

510

Amortization of deferred financing costs - acquisition term notes

737

1,384

Adjustment for noncontrolling interests

4

6

Core FFO attributable to common stockholders

62,487

55,512

Core FFO per share - basic

$

2.48

$

2.25

Core FFO per share - diluted

$

2.43

$

2.20

Amortization of deferred financing costs - long term debt

1,460

1,453

Equity-based compensation expense

6,997

5,504

Adjustment for noncontrolling interests

(25

)

(21

)

AFFO attributable to common stockholders

70,919

62,448

AFFO per share - basic

$

2.82

$

2.53

AFFO per share - diluted

$

2.75

$

2.47

Weighted average common shares outstanding - basic

25,170

24,715

Weighted average common shares outstanding - diluted

25,760

25,234

(1)

Represents additional cleaning, disinfecting and other costs incurred at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

NXRT.NEXPOINT.COM

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