NexPoint Residential Trust
Market Cap
US$1.1b
Last Updated
2020/11/27 00:26 UTC
Data Sources
Company Financials +
Executive Summary
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 72.5% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Fair value second-rate dividend payer.
Share Price & News
How has NexPoint Residential Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NXRT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NXRT's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-0.4%
NXRT
0.1%
US REITs
2.1%
US Market
1 Year Return
-10.7%
NXRT
-8.6%
US REITs
19.8%
US Market
Return vs Industry: NXRT underperformed the US REITs industry which returned -8.8% over the past year.
Return vs Market: NXRT underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| NXRT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | 0.1% | 2.1% |
| 30 Day | -5.7% | 8.6% | 8.1% |
| 90 Day | 4.6% | 2.6% | 6.0% |
| 1 Year | -7.7%-10.7% | -4.8%-8.6% | 22.5%19.8% |
| 3 Year | 69.6%53.8% | 18.5%4.5% | 46.5%36.8% |
| 5 Year | 312.4%240.3% | 50.7%20.4% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is NexPoint Residential Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 months ago | Simply Wall St
Does Market Volatility Impact NexPoint Residential Trust, Inc.'s (NYSE:NXRT) Share Price?7 months ago | Simply Wall St
The NexPoint Residential Trust (NYSE:NXRT) Share Price Has Gained 74% And Shareholders Are Hoping For MoreValuation
Is NexPoint Residential Trust undervalued compared to its fair value and its price relative to the market?
27.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NXRT ($43.29) is trading below our estimate of fair value ($59.41)
Significantly Below Fair Value: NXRT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NXRT is good value based on its PE Ratio (30.7x) compared to the US REITs industry average (38.3x).
PE vs Market: NXRT is poor value based on its PE Ratio (30.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: NXRT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NXRT is overvalued based on its PB Ratio (2.7x) compared to the US REITs industry average (1.6x).
Next Steps
Future Growth
How is NexPoint Residential Trust forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-72.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NXRT's earnings are forecast to decline over the next 3 years (-72.5% per year).
Earnings vs Market: NXRT's earnings are forecast to decline over the next 3 years (-72.5% per year).
High Growth Earnings: NXRT's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NXRT's revenue (3.6% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: NXRT's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NXRT's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has NexPoint Residential Trust performed over the past 5 years?
42.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NXRT has a large one-off gain of $70.1M impacting its September 30 2020 financial results.
Growing Profit Margin: NXRT's current net profit margins (17.1%) are lower than last year (62.9%).
Past Earnings Growth Analysis
Earnings Trend: NXRT has become profitable over the past 5 years, growing earnings by 42.9% per year.
Accelerating Growth: NXRT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NXRT had negative earnings growth (-67.5%) over the past year, making it difficult to compare to the REITs industry average (2%).
Return on Equity
High ROE: NXRT's Return on Equity (8.9%) is considered low.
Next Steps
Financial Health
How is NexPoint Residential Trust's financial position?
Financial Position Analysis
Short Term Liabilities: NXRT's short term assets ($129.1M) do not cover its short term liabilities ($299.4M).
Long Term Liabilities: NXRT's short term assets ($129.1M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: NXRT's debt to equity ratio (350.7%) is considered high.
Reducing Debt: NXRT's debt to equity ratio has increased from 272% to 350.7% over the past 5 years.
Debt Coverage: NXRT's debt is not well covered by operating cash flow (4.3%).
Interest Coverage: NXRT's interest payments on its debt are not well covered by EBIT (0.2x coverage).
Balance Sheet
Next Steps
Dividend
What is NexPoint Residential Trust current dividend yield, its reliability and sustainability?
3.15%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NXRT's dividend (3.15%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: NXRT's dividend (3.15%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NXRT has been paying a dividend for less than 10 years.
Growing Dividend: NXRT's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.3%), NXRT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NXRT's dividends in 3 years are forecast to be covered by earnings (57.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Jim Dondero (57 yo)
no data
Tenure
US$1,669,500
Compensation
Mr. James David Dondero, also known as Jim, CFA, CMA, CPA, serves as the President at NexPoint Real Estate Advisors VII, L.P. He also serves as President at Nexpoint Insurance Solutions, L.P. Mr. Dondero h...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | US$1.67m | 8.27% $ 88.4m | |
| Executive VP of Finance | 6.17yrs | US$651.00k | 0.27% $ 2.9m | |
| Chief Investment Officer & Executive VP | 5.67yrs | US$2.45m | 0.89% $ 9.5m | |
| Senior Vice President of Investments & Asset Management | 5.67yrs | US$588.00k | 0.32% $ 3.4m | |
| Investor Relations Manager | no data | no data | no data | |
| General Counsel | 0.75yr | no data | 0.0017% $ 18.5k |
5.7yrs
Average Tenure
45yo
Average Age
Experienced Management: NXRT's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | US$1.67m | 8.27% $ 88.4m | |
| Executive VP of Finance | 6.17yrs | US$651.00k | 0.27% $ 2.9m | |
| Independent Director | 5.5yrs | US$140.64k | 0.12% $ 1.3m | |
| Lead Independent Director | no data | US$150.64k | 0.059% $ 634.1k | |
| Independent Director | 0.33yr | no data | 0.0097% $ 104.2k | |
| Independent Director | 5.67yrs | US$148.14k | 0.14% $ 1.5m |
5.5yrs
Average Tenure
59yo
Average Age
Experienced Board: NXRT's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NXRT insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NexPoint Residential Trust, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NexPoint Residential Trust, Inc.
- Ticker: NXRT
- Exchange: NYSE
- Founded:
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$1.068b
- Market Cap: US$1.065b
- Shares outstanding: 24.68m
- Website: https://www.nexpointliving.com
Number of Employees
Location
- NexPoint Residential Trust, Inc.
- 300 Crescent Court
- Suite 700
- Dallas
- Texas
- 75201
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NXRT | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2015 |
Biography
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 00:26 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.