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.