NexPoint Residential Trust, Inc. reported a net loss of $6.9 million for the first quarter of 2025, a significant decline from the net income of $26.4 million recorded in the same period of the previous year. The company's total revenues decreased to $63.2 million, down from $67.6 million in the prior year, primarily due to a reduction in rental income, which fell to $61.4 million from $65.6 million. This decline in revenue was attributed to the company's previous property dispositions, which impacted overall rental income and other income streams.
In terms of expenses, NexPoint managed to reduce total expenses to $55.8 million from $58.3 million year-over-year, reflecting a decrease in property operating expenses and real estate taxes. The company reported property operating expenses of $12.5 million, down from $13.8 million, and real estate taxes of $9.0 million, compared to $9.3 million in the prior year. Despite these reductions, the overall operating income before gains on sales of real estate decreased to $7.4 million from $9.3 million, largely due to the absence of significant property sales in the current quarter, contrasting with a $31.7 million gain from a property sale in the first quarter of 2024.
Operationally, NexPoint's portfolio consisted of 35 multifamily properties with a total of 12,984 units, achieving an occupancy rate of approximately 94.4% as of March 31, 2025. The weighted average monthly effective rent per occupied unit was reported at $1,495, a slight decrease from $1,514 in the previous year. The company continues to focus on its value-add strategy, with plans to invest in renovations and improvements across its properties, supported by approximately $3.7 million in renovation reserves.
Looking ahead, NexPoint remains cautious about the macroeconomic environment, particularly regarding rising interest rates and their potential impact on financing and property acquisitions. The company has entered into interest rate swap agreements to mitigate some of the risks associated with its floating rate debt, which totaled approximately $1.5 billion at a weighted average interest rate of 5.40% as of March 31, 2025. The management expressed optimism about future growth opportunities while acknowledging the challenges posed by current market conditions. The company declared a quarterly dividend of $0.51 per share, reflecting its commitment to returning value to shareholders while navigating the evolving economic landscape.
About NexPoint Residential Trust, Inc.
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