NexPoint Residential Trust Inc. (NXRT) reported a net loss of $32.0 million for the year ended December 31, 2025, a sharp reversal from the $1.1 million net income recorded in 2024. The loss was driven largely by a $54.2 million decline in gains on real‑estate sales and a $8.2 million drop in rental income, partially offset by a $24.0 million reduction in the loss on extinguishment of debt and modification costs.
For the full year, total revenue fell to $251.3 million from $259.7 million in 2024, while net operating income (NOI) slipped to $151.7 million from $157.0 million. In the fourth quarter, the company posted a $10.3 million loss versus a $26.9 million loss in Q4 2024, and revenue declined to $62.1 million from $63.8 million. Same‑store NOI dropped 4.8 % in Q4, reflecting a 2.8 % decline in same‑store rental income and a 1.1 % rise in same‑store expenses.
The company’s earnings per share beat expectations by $0.75 versus a consensus estimate of a $0.35 loss. The beat was largely attributable to one‑time gains and disciplined cost management that preserved margins despite the revenue shortfall. Revenue, however, missed the consensus estimate of $64.07 million, underscoring a modest top‑line slowdown that investors are monitoring closely.
Management guided for 2026 with a diluted EPS loss between $(1.54) and $(1.26), core FFO per share of $2.42–$2.71, and Same‑Store NOI growth between –2.5 % and 1.5 %. The guidance signals a cautious outlook, with management anticipating a flattish to mildly pressured operating environment while still targeting modest NOI growth.
Investors reacted with mixed sentiment. The EPS beat generated initial enthusiasm, but the revenue miss and conservative 2026 guidance tempered overall optimism, leading to a balanced market response.
Strategically, NexPoint continues to execute its value‑add renovation program, completing 1,767 upgrades in 2025 that generated an average monthly rent premium of $60 and a 21.8 % return on investment. The company also acquired a 321‑unit property in Las Vegas for $73.25 million early in 2026, repurchased 223,109 shares at a discount to NAV, and raised its quarterly dividend to $0.53 per share, reflecting a commitment to shareholder returns amid elevated leverage of 68 % and a debt maturity profile that extends beyond 2028.
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