NexPoint Residential continues "at the market" equity offering

NexPoint Residential Trust, Inc. (NYSE:NXRT), a real estate investment trust with a market capitalization of $984 million and currently trading at $38.29, has updated its ongoing "at the market" equity offering, filing a prospectus supplement with the Securities and Exchange Commission (SEC) today. According to InvestingPro data, the company maintains a FAIR financial health score, with liquid assets exceeding short-term obligations. The company has sold 1,120,910 shares of common stock, raising an aggregate purchase price of $62.3 million. The prospectus supplement allows for the issuance of additional shares with an aggregate offering price of up to $162.7 million. This move comes as InvestingPro analysis shows management has been actively managing shareholder value, with a notable dividend yield of 5.33% and a consistent track record of raising dividends for 10 consecutive years.

The equity offering is part of a shelf registration statement filed on March 29, 2024, which became effective immediately. This move is a continuation of the offering previously registered under a different registration statement.

On the same day, NexPoint Residential also terminated its Equity Distribution Agreements with KeyBanc Capital Markets and Truist Securities, Inc., which were involved in facilitating the sales of the company’s common stock.

The company’s common stock will be offered and sold following the prospectus supplement and the base prospectus dated from last year related to the current registration statement. Legal opinions regarding Maryland law and U.S. federal income tax matters related to the common stock have been filed as exhibits with this current report.

The company has clarified that this report does not constitute an offer to sell or a solicitation of an offer to buy the securities mentioned. The securities will be offered only by means of the prospectus supplement and the related base prospectus. For investors seeking deeper insights into NXRT’s valuation and prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its coverage of over 1,400 US equities.

This information is based on a press release statement.

In other recent news, NexPoint Residential Trust Inc. reported a net loss of $26.9 million for the fourth quarter of 2024, which contrasts with the net income of $18.4 million from the same period in the previous year. The company’s earnings per share (EPS) was -$1.06, missing the forecasted -$0.2236, and revenue came in at $63.8 million, slightly below the expected $64.09 million. Despite these financial setbacks, NexPoint’s stock experienced a 6.02% increase in pre-market trading, indicating investor confidence in the company’s strategic direction. The company completed 58 full and partial renovations in the quarter, achieving a return on investment ranging from 20.8% to 64.8%. NexPoint’s core funds from operations (FFO) reached $73.1 million for 2024, demonstrating a compound annual growth rate of 10.8% since the company’s inception. Looking ahead, the company has set its guidance for 2025 with core FFO expected to range between $2.56 and $2.83 per share. Additionally, NexPoint plans to accelerate its value-add program, which is expected to position the company for growth in the coming years. The company also completed refinancing activities that extended its weighted average debt maturity schedule to seven years, reducing the adjusted weighted average interest rate from 3.64% to 2.96%.

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