NexPoint Residential Trust
Market Cap
US$1.3b
Last Updated
2020/02/17 01:13 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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -64.1% per year for the next 3 years
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.2%
NXRT
3.0%
US REITs
1.5%
US Market
1 Year Return
35.5%
NXRT
16.2%
US REITs
20.1%
US Market
Return vs Industry: NXRT exceeded the US REITs industry which returned 16.2% over the past year.
Return vs Market: NXRT exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| NXRT | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 3.0% | 1.5% |
| 30 Day | 10.1% | 4.5% | 1.4% |
| 90 Day | 8.8% | 6.1% | 8.7% |
| 1 Year | 39.3%35.5% | 20.9%16.2% | 22.7%20.1% |
| 3 Year | 144.6%121.6% | 40.7%23.1% | 50.1%40.5% |
| 5 Year | n/a | 57.9%25.3% | 73.1%54.1% |
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
5 days ago | Simply Wall St
What Kind Of Shareholder Owns Most NexPoint Residential Trust, Inc. (NYSE:NXRT) Stock?1 month ago | Simply Wall St
NexPoint Residential Trust (NYSE:NXRT) Shareholders Have Enjoyed An Impressive 101% Share Price Gain2 months ago | Simply Wall St
Can NexPoint Residential Trust, Inc.'s (NYSE:NXRT) ROE Continue To Surpass The Industry Average?Valuation
Is NexPoint Residential Trust undervalued compared to its fair value and its price relative to the market?
14.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NXRT ($52) is trading below our estimate of fair value ($60.79)
Significantly Below Fair Value: NXRT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NXRT is good value based on its PE Ratio (11.3x) compared to the REITs industry average (37.3x).
PE vs Market: NXRT is good value based on its PE Ratio (11.3x) compared to the US market (18.4x).
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 (3.1x) compared to the US REITs industry average (2.1x).
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?
-64.1%
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 (-64.1% per year).
Earnings vs Market: NXRT's earnings are forecast to decline over the next 3 years (-64.1% per year).
High Growth Earnings: NXRT's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NXRT's revenue (7.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: NXRT's revenue (7.1% 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?
43.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NXRT has a large one-off gain of $124.8M impacting its September 30 2019 financial results.
Growing Profit Margin: NXRT became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NXRT has become profitable over the past 5 years, growing earnings by 43.4% per year.
Accelerating Growth: NXRT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NXRT has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (6.9%).
Return on Equity
High ROE: Whilst NXRT's Return on Equity (25.51%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NexPoint Residential Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: NXRT has a high level of physical assets or inventory.
Debt Coverage by Assets: NXRT's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: NXRT's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if NXRT has a sufficient allowance for bad loans.
Low Risk Liabilities: NXRT reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if NXRT has an acceptable proportion of non-loan assets held.
Low Risk Deposits: NXRT has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if NXRT has an appropriate level of bad loans.
Next Steps
Dividend
What is NexPoint Residential Trust's current dividend yield, its reliability and sustainability?
2.40%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NXRT's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: NXRT's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (67.1%), 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 thoroughly covered by earnings (2.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average board tenure
CEO
Jim Dondero (56yo)
Mr. James David Dondero, also known as Jim, CFA, CMA, CPA, is Chairman of the Board and Chief Executive Officer of Highland Acquisition Corporation. Mr. Dondero serves as President & Director at NexPoint R ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0yrs | no data | 8.71% $113.7m | |
| Executive VP of Finance | 5.4yrs | no data | 0.24% $3.1m | |
| Independent Director | 4.8yrs | US$128.24k | 0.11% $1.4m | |
| Lead Independent Director | 0yrs | US$138.24k | 0.046% $604.2k | |
| Independent Director | 4.9yrs | US$135.74k | 0.12% $1.6m |
4.8yrs
Average Tenure
58yo
Average Age
Experienced Board: NXRT's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12%.
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$1.306b
- Market Cap: US$1.302b
- Shares outstanding: 25.11m
- 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-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:13 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.