NexPoint Residential Trust reported second quarter results that topped analyst expectations for revenue and Core Funds from Operations (FFO). Total revenue for the quarter was $64.6 million, while Core FFO came in at $0.66 per diluted share. However, key operational metrics showed some weakness, with Same-Store Net Operating Income (NOI) declining compared to the prior year.
Key Highlights
- Core FFO for the second quarter was $0.66 per share, a decrease from $0.71 per share in the same quarter last year but ahead of analyst expectations of $0.61.
- Second quarter Same-Store NOI decreased by 2.9% year-over-year to $36.9 million, as a 0.6% decline in same-store revenue was compounded by higher property operating expenses.
- Same-store physical occupancy increased by 30 basis points year-over-year to 93.6% at the end of the second quarter.
- The company initiated a new lending program, deploying $22.1 million into a fixed-rate term loan bearing interest at 10.00% per annum.