NXRT.NEXPOINT.COM

•

NXRT1 reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(3.9)M, $19.3M, $18.6M and $21.0M, respectively, attributable to common stockholders for the quarter ended March 31, 2023, compared to Net Loss, FFO, Core FFO and AFFO of $(4.7)M, $19.0M, $20.1M and $22.3M, respectively, attributable to common stockholders for the quarter ended March 31, 2022.

•

For the three months ended March 31, 2023, Q1 Same Store properties3 average effective rent, total revenue and NOI2 increased 13.3%, 11.1% and 9.4%, respectively and occupancy decreased 30 bps from the prior year period.

•

The weighted average effective monthly rent per unit across all 40 properties held as of March 31, 2023 (the “Portfolio”), consisting of 15,020 units4, was $1,487, while physical occupancy was 94.0%.

•

NXRT paid a first quarter dividend of $0.42 per share of common stock on March 31, 2023.

•

During the first quarter, NXRT refinanced Venue on Camelback and paid down $17.5 million of the corporate credit facility through refinancing proceeds and available cash. As of March 31, 2023, there was $57.0 million in aggregate principal outstanding under our corporate credit facility.

•

During the first quarter, for the properties in our Portfolio, we completed 494 full and partial upgrades and leased 565 upgraded units, achieving an average monthly rent premium of $153 and a 21.2% ROI5.

•

Since inception, for the properties currently in our Portfolio, we have completed 8,127 full and partial, 4,914 kitchen and laundry appliances and 10,423 technology packages, resulting in a $153, $47 and $45 average monthly rental increase per unit and a 21.8%, 65.6% and 37.4% ROI, respectively.

(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 36 properties encompassing 13,534 units of apartment space in our Same Store pool for the three months ended March 31, 2023 (our “Q1 Same Store” properties). The same store unit count excludes 107 units that are currently down due to casualty events (Rockledge: 22 units, Versailles: 17 units, Silverbrook: 16 units, Arbors of Brentwood: 16 units, Six Forks Station: 14 units, Bella Solara: 8 units, Versailles II: 7 units, Summers Landing: 4 units, Parc500: 2 unit and Avant at Pembroke Pines: 1 unit).

(4)

Total number of units owned in our Portfolio as of March 31, 2023 is 15,127, however 107 units are currently down due to casualty events (Rockledge: 22 units, Versailles: 17 units, Silverbrook: 16 units, Arbors of Brentwood: 16 units, Six Forks Station: 14 units, Bella Solara: 8 units, Versailles II: 7 units, Summers Landing: 4 units, Parc500: 2 unit and Avant at Pembroke Pines: 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

Page 1

•

Total revenues were $69.2 million for the first quarter of 2023, compared to $60.8 million for the first quarter of 2022.

•

Net loss for the first quarter of 2023 totaled $(3.9) million, or loss of $(0.15) per diluted share, which included $23.3 million of depreciation and amortization expense. This compared to net loss of $(4.7) million, or loss of $(0.18) per diluted share, for the first quarter of 2022, which included $23.7 million of depreciation and amortization expense.

•

The change in our net loss of $(3.9) million for the three months ended March 31, 2023 as compared to our net loss of $(4.7) million for the three months ended March 31, 2022 primarily relates to increases in rental income, partially offset by increases in depreciation and interest expense.

•

For the first quarter of 2023, NOI was $41.1 million on 40 properties, compared to $36.7 million for the first quarter of 2022 on 39 properties.

•

For the first quarter of 2023, Q1 Same Store NOI increased 9.4% to $37.8 million, compared to $34.5 million for the first quarter of 2022.

•

For the first quarter of 2023, FFO totaled $19.3 million, or $0.74 per diluted share, compared to $19.0 million, or $0.73 per diluted share, for the first quarter of 2022.

•

For the first quarter of 2023, Core FFO totaled $18.6 million, or $0.71 per diluted share, compared to $20.1 million, or $0.77 per diluted share, for the first quarter of 2022.

•

For the first quarter of 2023, AFFO totaled $21.0 million, or $0.81 per diluted share, compared to $22.3 million, or $0.85 per diluted share, for the first quarter of 2022.

NXRT.NEXPOINT.COM

Page 2

(share counts in thousands)

Exchange/Ticker

NYSE:NXRT

Share Price (1)

$43.82

Insider Ownership (2)

13.07%

2023 Q2 Dividend Per Share

$0.42

Dividend Yield (1)

3.83%

Shares outstanding - basic (3)

25,599

Shares outstanding - diluted (3)

25,599

(1)

As of the close of market trading on April 24, 2023.

(2)

As of the close of market trading on March 31, 2023.

(3)

Weighted average for the three months ended March 31, 2023.

Revenue & Average Rent Per Unit

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

NXRT.NEXPOINT.COM

Page 3

Market

New Leases

% Increase

Rent Increase

Renewals

% Increase

Rent Increase

South Florida

286

9.8%

$

188.04

297

6.6%

$

127.33

Atlanta

169

9.7%

$

136.40

203

3.5%

$

51.08

Orlando

184

5.2%

$

76.88

129

5.7%

$

85.50

Tampa

90

3.3%

$

45.80

52

5.8%

$

79.69

Charlotte

151

2.9%

$

34.97

129

3.3%

$

42.34

Raleigh/Durham

61

2.9%

$

38.66

76

7.6%

$

104.91

Nashville

167

2.3%

$

27.67

158

3.2%

$

40.99

Dallas/Fort Worth

329

2.0%

$

78.94

295

7.0%

$

84.36

Phoenix

334

-0.7%

$

(12.34

)

241

3.1%

$

44.77

Houston

138

-2.9%

$

(39.52

)

79

3.0%

$

38.19

Las Vegas

191

-4.5%

$

(62.82

)

136

2.0%

$

27.43

TOTAL

2,100

2.8%

$

53.22

1,795

4.8%

$

70.03

(1)

Source: RealPage as of March 31, 2023.

(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, 2022.

(1)

Source: 2023 RealPage, Inc.; Data as of March 2023.

NXRT.NEXPOINT.COM

Page 5

Q1 2023

Q1 2022

FY 2022

FY 2021

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

Company Profile

Market Capitalization

$

1,120,000

$

2,321,000

$

1,112,000

$

2,138,000

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

$

43.67

$

90.31

$

43.52

$

83.83

Weighted average common shares outstanding - basic

25,599

25,620

25,610

25,170

Weighted average common shares outstanding - diluted

25,599

25,620

25,610

25,760

Earnings Profile

Total revenues

$

69,227

$

60,786

$

263,952

$

219,240

Net income (loss) attributable to common stockholders

(3,883

)

(4,653

)

(9,260

)

23,037

NOI (1)

41,130

36,673

157,424

128,763

Same Store NOI (2)

37,750

34,520

129,279

111,265

Same Store NOI Growth (%) (2)

9.4

%

16.2

%

Earnings Metrics Per Common Share (diluted basis)

Earnings (loss)

$

(0.15

)

$

(0.18

)

$

(0.36

)

$

0.89

FFO (1)

$

0.74

$

0.73

$

2.81

$

2.47

Core FFO (1)

$

0.71

$

0.77

$

3.13

$

2.43

AFFO (1)

$

0.81

$

0.85

$

3.49

$

2.75

Dividends declared per common share

$

0.42

$

0.38

$

1.56

$

1.40

     Net Income (Loss) Coverage (3)

-0.36x

-0.47x

-0.23x

0.63x

     FFO Coverage (3)

1.76x

1.91x

1.80x

1.76x

     Core FFO Coverage (3)

1.70x

2.02x

2.01x

1.73x

     AFFO Coverage (3)

1.92x

2.25x

2.24x

1.96x

Portfolio

Total Properties

40

39

40

39

Total Units (4)

15,020

14,776

15,096

14,825

     Occupancy

94.0

%

94.2

%

94.1

%

94.3

%

     Average Effective Monthly Rent per Unit

$

1,487

$

1,310

$

1,480

$

1,261

Same Store Portfolio Metrics (2)

Total Same Store Properties

36

36

31

31

Total Same Store Units

13,534

13,593

12,210

12,286

     Occupancy

94.0

%

94.3

%

94.1

%

94.3

%

     Average Effective Monthly Rent per Unit

$

1,494

$

1,319

$

1,493

$

1,267

Value-Add Program

Completed Full/Partial Interior Rehab Units

494

531

2,409

1,264

Cumulative Completed Rehab Units (5)

8,127

     Average Increase to Effective Monthly Rent

     per Unit (Post-Rehab)

$

153

     ROI on Post-Rehab Units

21.8

%

Outstanding Debt Summary

Total Mortgage Debt

$

1,621,634

$

1,280,765

Credit Facilities

57,000

335,000

Total Debt Outstanding

$

1,678,634

$

1,615,765

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

60

%

39

%

(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 Net Income (Loss)/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. The Company uses actual diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO.

(4)

Total units owned as of March 31, 2023 is 15,127, however 107 units are currently excluded due to fires and water damage.

(5)

Inclusive of all full and partial interior upgrades completed through March 31, 2023. Cumulative results exclude rehabs completed for properties sold through March 31, 2023.

(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

Page 6

Guidance Range (1)

Low-End

Mid-Point

High-End

Prior Mid-Point

Earnings (loss) per diluted share (2)

$

0.86

$

1.00

$

1.14

$

1.08

Core FFO per diluted share (2) (3)

$

2.92

$

3.06

$

3.20

$

3.09

Same Store Growth: (4)

Rental Income

10.5

%

11.3

%

12.1

%

11.5

%

Total Revenue

10.1

%

10.8

%

11.6

%

10.9

%

Total Expenses (5)

11.4

%

10.6

%

9.9

%

10.7

%

Same Store NOI (3)

9.2

%

11.0

%

12.8

%

11.0

%

Components to Interest Expense:

Interest Expense on Mortgage Debt

$

(100.0

)

$

(102.6

)

$

(105.1

)

$

(103.8

)

Interest Expense on Revolver

$

(2.5

)

$

(2.5

)

$

(2.5

)

$

(2.1

)

Deferred Financing Cost & Discount Amortization

$

(3.0

)

$

(3.0

)

$

(3.0

)

$

(3.0

)

Interest Rate Swap Settlement

$

43.9

$

45.8

$

47.7

$

46.6

Mark to Market – Fair Value of Rate Caps

$

(3.5

)

$

(1.9

)

$

(0.3

)

$

1.4

Total Interest Expense

$

(65.1

)

$

(64.2

)

$

(63.2

)

$

(60.9

)

Other Considerations: (5)

Acquisitions

$

—

$

125.0

$

250.0

$

125.0

Dispositions

$

—

$

125.0

$

250.0

$

125.0

(1)

Full Year 2023 guidance forecast includes Same Store growth projections presented above, which takes into effect the held for sale properties of Old Farm and Stone Creek at Old Farm, thereby removing those assets from the Full Year 2023 expected Same Store pool.

(2)

Weighted average diluted share count estimate for full year 2023 is approximately 26.3 million.

(3)

Same Store NOI and Core FFO are non-GAAP measures. For reconciliations of Full Year 2023 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 2023 expected Same Store pool (36 properties).

(5)

We continue to evaluate our Portfolio for capital recycling opportunities. Transaction volumes presented are incorporated into the earnings per share and Core FFO 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.

NXRT.NEXPOINT.COM

Page 7

(1)

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

(2)

Estimated value ranges are presented for the existing portfolio (40 properties as of as of March 31, 2023).

(3)

The Company anticipates net income will be in the range between approximately $22.4 million and $29.8 million for the full year 2023 and between $33.8 million and 37.8 million for the second quarter of 2023. FY 2023 NOI Guidance considers the forecast dispositions of Old Farm and Stone Creek at Old Farm and considers a commensurate volume of capital recycling.

(4)

Includes approximately $7.0 million that is held for value-add upgrades; reduced by $7.0 million for estimated 2023 rehab expenditures.

(5)

Includes approximately $0.3 million in forward 12-month principal payments.

(6)

Old Farm and Stone Creek at Old Farm are under a binding sales contract and expected to close in the first half of the year.

(7)

Includes outstanding balance of March 31, 2023.

NXRT.NEXPOINT.COM

Page 8

March 31, 2023

December 31, 2022

(Unaudited)

ASSETS

Operating Real Estate Investments

Land

$

378,417

$

378,438

Buildings and improvements

1,764,796

1,760,782

Construction in progress

13,174

10,622

Furniture, fixtures and equipment

162,048

152,529

Total Gross Operating Real Estate Investments

2,318,435

2,302,371

Accumulated depreciation and amortization

(372,378

)

(349,276

)

Total Net Operating Real Estate Investments

1,946,057

1,953,095

Real estate held for sale, net of accumulated depreciation of $22,017 and $22,017, respectively

89,848

89,457

Total Net Real Estate Investments

2,035,905

2,042,552

Cash and cash equivalents

14,142

16,762

Restricted cash

32,933

35,037

Accounts receivable, net

18,522

17,121

Prepaid and other assets

8,113

10,425

Fair value of interest rate swaps

86,234

103,440

TOTAL ASSETS

$

2,195,849

$

2,225,337

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Mortgages payable, net

$

1,541,531

$

1,526,828

Mortgages payable held for sale, net

68,040

68,016

Credit facility, net

55,419

72,644

Accounts payable and other accrued liabilities

13,722

12,325

Accrued real estate taxes payable

8,655

7,232

Accrued interest payable

9,049

7,946

Security deposit liability

3,202

3,200

Prepaid rents

2,140

1,849

Total Liabilities

1,701,758

1,700,040

Redeemable noncontrolling interests in the Operating Partnership

6,058

5,631

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; 25,657,723 and 25,549,319 shares issued and outstanding, respectively

256

255

Additional paid-in capital

405,847

405,376

Accumulated earnings less dividends

(3,084

)

11,880

Accumulated other comprehensive income

85,014

102,155

Total Stockholders' Equity

488,033

519,666

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,195,849

$

2,225,337

NXRT.NEXPOINT.COM

Page 9

For the Three Months Ended March 31,

2023

2022

Revenues

Rental income

$

67,537

$

59,297

Other income

1,690

1,489

Total revenues

69,227

60,786

Expenses

Property operating expenses

13,266

13,596

Real estate taxes and insurance

10,020

8,720

Property management fees (1)

2,027

1,757

Advisory and administrative fees (2)

1,889

1,843

Corporate general and administrative expenses

3,367

3,486

Property general and administrative expenses

2,270

2,006

Depreciation and amortization

23,266

23,718

Total expenses

56,105

55,126

Operating income

13,122

5,660

Interest expense

(16,739

)

(10,636

)

Gain on extinguishment of debt and modification costs

122

—

Casualty gain (loss)

(814

)

128

Miscellaneous income

411

181

Net loss

(3,898

)

(4,667

)

Net loss attributable to redeemable noncontrolling interests in the Operating Partnership

(15

)

(14

)

Net loss attributable to common stockholders

$

(3,883

)

$

(4,653

)

Other comprehensive income (loss)

Unrealized gains (losses) on interest rate derivatives

(17,206

)

54,579

Total comprehensive income (loss)

(21,104

)

49,912

Comprehensive income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership

(80

)

150

Comprehensive income (loss) attributable to common stockholders

$

(21,024

)

$

49,762

Weighted average common shares outstanding - basic

25,599

25,620

Weighted average common shares outstanding - diluted

25,599

25,620

Loss per share - basic

$

(0.15

)

$

(0.18

)

Loss per share - diluted

$

(0.15

)

$

(0.18

)

(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

Page 10

For the Three Months Ended March 31,

2023

2022

Net loss

$

(3,898

)

$

(4,667

)

Adjustments to reconcile net loss to NOI:

Advisory and administrative fees

1,889

1,843

Corporate general and administrative expenses

3,367

3,486

Casualty-related expenses/(recoveries)

(1)

(1,706

)

1,047

Casualty gains

814

(128

)

Property general and administrative expenses

(2)

781

738

Depreciation and amortization

23,266

23,718

Interest expense

16,739

10,636

Gain on extinguishment of debt and modification costs

(122

)

—

NOI

$

41,130

$

36,673

Less Non-Same Store

Revenues

(6,579

)

(4,403

)

Operating expenses

3,199

2,302

Operating income

—

(52

)

Same Store NOI

$

37,750

$

34,520

(1)

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

(2)

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

Page 11

For the Three Months Ended March 31,

2023

2022

$ Change

% Change

Revenues

Same Store

Rental income

$

61,149

$

54,963

$

6,186

11.3

%

Other income

1,499

1,420

79

5.6

%

Same Store revenues

62,648

56,383

6,265

11.1

%

Non-Same Store