NexPoint Residential Trust faces a significant interest expense increase starting September 1, 2026. A $717.5 million block of interest rate swaps covering company debt expired today.
These expired swaps carried fixed rates between 0.845% and 1.609%. Current Secured Overnight Financing Rates (SOFR) hover around 3.64%.
The loss of these hedges pressures earnings and the company’s 8.5% dividend yield. NexPoint stock recently hit a new 52-week low. Analysts maintain a consensus Reduce rating on the shares.