Update shared on05 Sep 2025
Fair value Decreased 3.31%Analysts cite NexPoint Residential Trust's year-to-date underperformance, high leverage, stagnant earnings outlook, and expiring interest rate swaps as key concerns weighing on its outlook, resulting in an unchanged consensus price target of $36.71.
Analyst Commentary
- Bearish analysts note NexPoint Residential is the worst-performing apartment REIT in their coverage year-to-date.
- Expectations for stagnant earnings and cash flow growth for both the current and following year.
- Expiring interest rate swaps are likely to negatively impact financial performance.
- The company's financial leverage remains notably high compared to sector peers.
- Persistent concerns regarding the firm's ability to manage debt and funding costs amid its current capital structure.
What's in the News
- NexPoint Residential Trust provided updated earnings guidance for 2025, expecting a loss per diluted share between $1.22 and $1.40, with revenue in the second half projected to be more muted than initially anticipated.
- The company completed the repurchase of 3,212,415 shares (13.28% of outstanding shares) for $94.5 million under its ongoing buyback program.
- NexPoint Residential Trust was added to multiple Russell growth indexes, including the Russell 2000 Growth, 2500 Growth, 3000 Growth, 3000E Growth, Small Cap Comp Growth, and corresponding defensive and benchmark indices.
Valuation Changes
Summary of Valuation Changes for NexPoint Residential Trust
- The Consensus Analyst Price Target remained effectively unchanged, at $36.71.
- The Discount Rate for NexPoint Residential Trust remained effectively unchanged, moving only marginally from 9.33% to 9.34%.
- The Future P/E for NexPoint Residential Trust remained effectively unchanged, moving only marginally from 23.05x to 23.06x.
Disclaimer
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