NexPoint Residential Trust Reports Q3 2025 Revenue Decline to $62.8 Million

NexPoint Residential Trust, Inc. reported a total revenue of $62.8 million for the third quarter of 2025, a decrease of 1.97% from $64.1 million in the same period last year. The decline in revenue was primarily attributed to a drop in rental income, which fell to $60.9 million from $62.3 million, reflecting a decrease in occupancy rates. Despite the revenue decline, the company managed to reduce total expenses to $55.4 million from $58.5 million, resulting in an operating income of $7.4 million, up from $5.6 million in the prior year. However, the company reported a net loss of $7.8 million, slightly improved from a loss of $8.9 million in Q3 2024.

For the nine months ending September 30, 2025, NexPoint's total revenue was $189.2 million, down from $195.9 million in the same period of 2024. The decrease was largely due to the absence of property sales, as the company did not dispose of any real estate during the current period, compared to two properties sold in the previous year, which generated a gain of $50.4 million. Operating income before gains on sales of real estate was $22.7 million, an increase from $21.7 million in the prior year. The net loss for the nine months was $21.8 million, a significant decline from a net income of $28.2 million in 2024.

Operationally, NexPoint Residential Trust managed 35 multifamily properties with a total of 12,984 units, achieving an occupancy rate of approximately 93.6% as of September 30, 2025. The weighted average monthly effective rent per occupied unit was reported at $1,497. The company has focused on a value-add strategy, with plans to invest between $4,000 to $10,000 per unit in renovations to enhance property value. As of the end of the reporting period, NexPoint had approximately $3.3 million reserved for these capital expenditures.

In terms of financial strategy, NexPoint has maintained a robust capital structure, with total mortgage debt of approximately $1.5 billion at a weighted average interest rate of 5.37%. The company has entered into interest rate swap agreements to hedge against interest rate fluctuations, effectively covering 62% of its floating rate debt. Additionally, NexPoint has a $200 million revolving credit facility, which provides further liquidity for operational and investment needs. The company anticipates that its available cash, expected operating cash flows, and potential debt or equity financings will be sufficient to meet its short-term liquidity requirements.

Looking ahead, NexPoint Residential Trust remains cautious about the macroeconomic environment, particularly regarding interest rates and market conditions. The company continues to evaluate its operational strategies and investment opportunities while maintaining its commitment to maximizing shareholder value through effective property management and strategic acquisitions.