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NexPoint Residential Trust

NYSE:NXRT
Snowflake Description

Second-rate dividend payer and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NXRT
NYSE
$850M
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

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. The last earnings update was 62 days ago. More info.


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NXRT Share Price and Events
7 Day Returns
-2.2%
NYSE:NXRT
-2.9%
US REITs
-0.3%
US Market
1 Year Returns
39.8%
NYSE:NXRT
15.3%
US REITs
7%
US Market
NXRT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NexPoint Residential Trust (NXRT) -2.2% -4.6% -1.3% 39.8% 156.8% -
US REITs -2.9% -1% 7.1% 15.3% 10.3% 25.7%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • NXRT outperformed the REITs industry which returned 15.3% over the past year.
  • NXRT outperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
NXRT
Industry
5yr Volatility vs Market

NXRT Value

 Is NexPoint Residential Trust undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NexPoint Residential Trust to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NexPoint Residential Trust.

NYSE:NXRT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NXRT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.547 (1 + (1- 21%) (98.56%))
0.982
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.982 * 5.96%)
8.58%

Discounted Cash Flow Calculation for NYSE:NXRT using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for NexPoint Residential Trust is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NexPoint Residential Trust is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:NXRT DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 8.58%)
2019 50.48 Analyst x5 46.49
2020 55.76 Analyst x4 47.29
2021 62.00 Est @ 11.2% 48.44
2022 67.37 Est @ 8.66% 48.47
2023 72.01 Est @ 6.88% 47.71
2024 76.07 Est @ 5.64% 46.42
2025 79.69 Est @ 4.76% 44.79
2026 83.00 Est @ 4.15% 42.96
2027 86.09 Est @ 3.73% 41.04
2028 89.04 Est @ 3.43% 39.09
Present value of next 10 years cash flows $452.71
NYSE:NXRT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $89.04 × (1 + 2.73%) ÷ (8.58% – 2.73%)
$1,563.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,563.62 ÷ (1 + 8.58%)10
$686.47
NYSE:NXRT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $452.71 + $686.47
$1,139.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,139.18 / 23.72
$48.03
NYSE:NXRT Discount to Share Price
Calculation Result
Value per share (USD) From above. $48.03
Current discount Discount to share price of $35.85
= -1 x ($35.85 - $48.03) / $48.03
25.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NexPoint Residential Trust is available for.
Intrinsic value
25%
Share price is $35.85 vs Future cash flow value of $48.03
Current Discount Checks
For NexPoint Residential Trust to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NexPoint Residential Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NexPoint Residential Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NexPoint Residential Trust's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NexPoint Residential Trust's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NXRT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.08
NYSE:NXRT Share Price ** NYSE (2019-04-18) in USD $35.85
United States of America REITs Industry PE Ratio Median Figure of 152 Publicly-Listed REITs Companies 31.08x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NexPoint Residential Trust.

NYSE:NXRT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NXRT Share Price ÷ EPS (both in USD)

= 35.85 ÷ -0.08

-472.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NexPoint Residential Trust is loss making, we can't compare its value to the US REITs industry average.
  • NexPoint Residential Trust is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does NexPoint Residential Trust's expected growth come at a high price?
Raw Data
NYSE:NXRT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -472.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-24.7%per year
United States of America REITs Industry PEG Ratio Median Figure of 139 Publicly-Listed REITs Companies -0.1x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for NexPoint Residential Trust, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on NexPoint Residential Trust's assets?
Raw Data
NYSE:NXRT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $12.60
NYSE:NXRT Share Price * NYSE (2019-04-18) in USD $35.85
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
NYSE:NXRT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NXRT Share Price ÷ Book Value per Share (both in USD)

= 35.85 ÷ 12.60

2.85x

* Primary Listing of NexPoint Residential Trust.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NexPoint Residential Trust is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess NexPoint Residential Trust's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. NexPoint Residential Trust has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NXRT Future Performance

 How is NexPoint Residential Trust expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-24.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NexPoint Residential Trust expected to grow at an attractive rate?
  • Unable to compare NexPoint Residential Trust's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare NexPoint Residential Trust's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • NexPoint Residential Trust's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NXRT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NXRT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -24.7%
NYSE:NXRT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 8.9%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 1.8%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NXRT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NXRT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 187 1
2020-12-31 179 -5 6
2019-12-31 171 -16 6
NYSE:NXRT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 147 42 -2
2018-09-30 142 40 -1
2018-06-30 143 41 58
2018-03-31 142 33 67
2017-12-31 144 38 53
2017-09-30 142 35 58
2017-06-30 138 32 11
2017-03-31 136 37 18
2016-12-31 133 34 22
2016-09-30 133 44 20
2016-06-30 131 42 11
2016-03-31 126 36 -5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NexPoint Residential Trust is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • NexPoint Residential Trust's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NXRT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from NexPoint Residential Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NXRT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.34 0.34 0.34 1.00
2020-12-31 -0.24 0.12 -0.50 3.00
2019-12-31 -0.68 -0.60 -0.73 3.00
NYSE:NXRT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.08
2018-09-30 -0.06
2018-06-30 2.76
2018-03-31 3.19
2017-12-31 2.53
2017-09-30 2.75
2017-06-30 0.53
2017-03-31 0.86
2016-12-31 1.03
2016-09-30 0.92
2016-06-30 0.54
2016-03-31 -0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NexPoint Residential Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NexPoint Residential Trust's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NexPoint Residential Trust has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NXRT Past Performance

  How has NexPoint Residential Trust performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NexPoint Residential Trust's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NexPoint Residential Trust does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare NexPoint Residential Trust's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare NexPoint Residential Trust's 1-year growth to the US REITs industry average as it is not currently profitable.
Earnings and Revenue History
NexPoint Residential Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NexPoint Residential Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NXRT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 146.60 -1.61 13.94
2018-09-30 142.12 -1.17 13.04
2018-06-30 142.72 57.99 13.05
2018-03-31 142.30 67.05 12.88
2017-12-31 144.24 53.37 12.43
2017-09-30 141.92 57.92 12.37
2017-06-30 137.91 11.10 11.70
2017-03-31 136.33 18.28 10.69
2016-12-31 132.85 21.88 9.89
2016-09-30 133.01 19.55 9.55
2016-06-30 130.54 11.39 9.52
2016-03-31 125.63 -5.45 9.07
2015-12-31 117.66 -10.83 7.86
2015-09-30 105.32 -14.29 6.09
2015-06-30 86.62 -18.97 4.30
2015-03-31 64.71 -18.70 2.42
2014-12-31 43.15 -15.60 2.09
2013-12-31 0.32 -0.17 0.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if NexPoint Residential Trust has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • NexPoint Residential Trust used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • It is difficult to establish if NexPoint Residential Trust improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess NexPoint Residential Trust's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NexPoint Residential Trust has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NXRT Health

 How is NexPoint Residential Trust's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NexPoint Residential Trust's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NexPoint Residential Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NexPoint Residential Trust's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of NexPoint Residential Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NexPoint Residential Trust Company Filings, last reported 3 months ago.

NYSE:NXRT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 298.60 838.02 38.02
2018-09-30 233.92 916.56 47.32
2018-06-30 242.03 778.31 45.15
2018-03-31 249.82 767.01 38.09
2017-12-31 241.58 792.82 32.52
2017-09-30 246.23 810.34 104.45
2017-06-30 195.23 885.03 38.20
2017-03-31 248.31 791.17 41.17
2016-12-31 256.10 763.50 35.12
2016-09-30 249.59 619.82 34.09
2016-06-30 251.74 652.33 28.56
2016-03-31 243.75 704.90 17.39
2015-12-31 248.94 705.13 16.23
2015-09-30 256.43 696.82 19.03
2015-06-30 260.91 623.99 24.36
2015-03-31 267.90 611.12 32.29
2014-12-31 197.52 487.00 13.12
2013-12-31 11.16 0.00 0.19
  • NexPoint Residential Trust's level of debt (280.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (11.4% vs 280.7% today).
  • Debt is not well covered by operating cash flow (5%, less than 20% of total debt).
  • NexPoint Residential Trust is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess NexPoint Residential Trust's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NexPoint Residential Trust has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NXRT Dividends

 What is NexPoint Residential Trust's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.07%
Current annual income from NexPoint Residential Trust dividends. Estimated to be 3.41% next year.
If you bought $2,000 of NexPoint Residential Trust shares you are expected to receive $61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NexPoint Residential Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • NexPoint Residential Trust's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NXRT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NXRT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.54 1.00
2022-12-31 1.45 1.00
2021-12-31 1.36 1.00
2020-12-31 1.20 5.00
2019-12-31 1.12 6.00
NYSE:NXRT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-19 1.100 2.997
2018-10-30 1.100 3.074
2018-07-31 1.000 3.049
2018-05-01 1.000 3.596
2018-02-13 1.000 3.988
2017-10-31 1.000 3.683
2017-08-01 0.880 3.718
2017-05-02 0.880 3.507
2017-03-08 0.880 3.667
2016-11-10 0.880 3.990
2016-08-09 0.824 4.241
2016-05-10 0.824 4.922
2016-03-08 0.824 6.103
2015-11-10 0.824 6.703
2015-08-11 0.824 6.227

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, NexPoint Residential Trust has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but NexPoint Residential Trust only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of NexPoint Residential Trust's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (41.8x coverage).
X
Income/ dividend checks
We assess NexPoint Residential Trust's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NexPoint Residential Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NexPoint Residential Trust has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NXRT Management

 What is the CEO of NexPoint Residential Trust's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Dondero
COMPENSATION $0
AGE 55
CEO Bio

Mr. James David Dondero, also known as Jim, CFA, CMA, CPA, serves as Chairman of the Board and Chief Executive Officer of Highland Acquisition Corporation. Mr. Dondero has been President and Secretary of Highland Acquisition Corporation since April 25, 2016. He serves as the President, CEO and Chairman and of Board of Directors at NexPoint Hospitality Trust Inc. He is President and Principal Executive Officer at NexPoint Capital, Inc. Mr. Dondero serves as a President, Co- Founder, Managing Partner, and Portfolio Manager at Highland Capital Management, L.P. since 1993. He co-founded Highland Capital Management in 1993 and manages the private equity business. Mr. Dondero is responsible for determining and ensuring execution of Highland Capital's strategic investment and operational initiatives. He serves as President at NexPoint Residential Trust, Inc. and also serves as Chairman since May 13, 2015. Mr. Dondero has been President of NexPoint Multifamily Capital Trust, Inc since November 2013. He is Founder of NexPoint Advisors, L.P. and serves as its President and Portfolio Manager. Mr. Dondero serves as Chief Executive Officer and Chairman of the Board at HCM Acquisition Company. He is a supplier of secure documents, services and systems and Metro-Goldwyn-Mayer Studios Inc. A dedicated philanthropist, he actively supports initiatives in education, veterans' affairs and public policy. Mr. Dondero has vast experience in the credit and equity markets. His portfolio management experience includes mortgage-backed securities, investment grade corporations, and leveraged bank loans, high-yield bonds, emerging market debt, derivatives, preferred stocks and common stocks. He served as Chief Executive Officer and President of Highland Floating Rate Limited Liability Company. Mr. Dondero was Co-Founder of Highland Floating Rate Limited Liability Company and served as its Managing Partner and Portfolio Manager. Previously, he served as the Chief Investment Officer of Protective Life Corporation's Guaranteed Investment Contract, or GIC from 1989 to 1993. From 1985 to 1989, Mr. Dondero was a Corporate Bond Analyst and then Portfolio Manager at American Express. Mr. Dondero began his career in 1984 as an analyst in the Morgan Guaranty Trust Company. He serves as Chairman of the Board of Directors of NexBank Capital, Inc. Mr. Dondero serves as the Chairman of Cornerstone Healthcare Group, Cornerstone Healthcare Group Holding, Inc. and CCS Medical Corporation. He served as the Chairman of Highland Financial Partners, L.P. since February 3, 2006. Mr. Dondero served as Chairman and Director of phy since January 2000. He serves as Chairman and Director of NexBank SSB. Mr. Dondero has been a Director of Highland Acquisition Corporation since April 25, 2016. He has been Independent Director of Jernigan Capital, Inc. since August 2016, NeighborCare, Inc. since October 2, 2001, Safety-Kleen, Inc. since February 2010. Mr. Dondero serves as a Director at MGM Holdings Inc. and Metro-Goldwyn-Mayer Studios Inc. He serves as a Director of Highland Capital Management Europe, Ltd. Mr. Dondero served as a Director of Highland Financial Partners, L.P. He served as Director of Strand Advisors, Inc. Mr. Dondero served as a Director of TerreStar Corporation since July 2002, and Leap Wireless International Inc. from August 2004 to September 10, 2007. He served as a Director of Cricket Communications, LLC. Mr. Dondero graduated from the University of Virginia where he earned highest honors (Beta Gamma Sigma, Beta Alpha Psi) from the McIntire School of Commerce with dual majors in Accounting and Finance. He has received certifications as a Certified Public Accountant (CPA), Certified Management Accountant (CMA), and Chartered Financial Analyst (CFA).

CEO Compensation
  • Insufficient data for Jim to compare compensation growth.
  • Jim's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NexPoint Residential Trust management team in years:

4.1
Average Tenure
41
Average Age
  • The tenure for the NexPoint Residential Trust management team is about average.
Management Team

Jim Dondero

TITLE
Chairman
AGE
55

Brian Mitts

TITLE
Executive VP of Finance
AGE
48
TENURE
4.1 yrs

Matt McGraner

TITLE
Chief Investment Officer & Executive VP
AGE
34
TENURE
4.1 yrs

Matt Goetz

TITLE
Senior Vice President of Investments & Asset Management
AGE
32
TENURE
4.1 yrs

Jackie Graham

TITLE
Investor Relations Manager

Marilynn Meek

TITLE
Consultant
Board of Directors Tenure

Average tenure and age of the NexPoint Residential Trust board of directors in years:

4
Average Tenure
57
Average Age
  • The tenure for the NexPoint Residential Trust board of directors is about average.
Board of Directors

Jim Dondero

TITLE
Chairman
AGE
55
TENURE
3.9 yrs

Brian Mitts

TITLE
Executive VP of Finance
AGE
48
TENURE
4.6 yrs

Ed Constantino

TITLE
Director
COMPENSATION
$136K
AGE
71
TENURE
4.1 yrs

Scott Kavanaugh

TITLE
Lead Independent Director
COMPENSATION
$138K
AGE
57

Art Laffer

TITLE
Director
COMPENSATION
$128K
AGE
78
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Nov 18 Buy Matthew McGraner Individual 16. Nov 18 16. Nov 18 9,486 $33.00 $313,038
20. Nov 18 Buy Nexpoint Advisors, L.P. Company 16. Nov 18 16. Nov 18 119,698 $33.00 $3,950,034
20. Nov 18 Buy Highland Capital Management, L.P. Company 16. Nov 18 16. Nov 18 78,788 $33.00 $2,600,004
20. Nov 18 Buy James Dondero Individual 16. Nov 18 16. Nov 18 9,486 $33.00 $313,038
X
Management checks
We assess NexPoint Residential Trust's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NexPoint Residential Trust has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NXRT News

Simply Wall St News

The NexPoint Residential Trust (NYSE:NXRT) Share Price Has Gained 162%, So Why Not Pay It Some Attention?

For instance the NexPoint Residential Trust, Inc. … Given that NexPoint Residential Trust didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … NexPoint Residential Trust's revenue trended up 5.8% each year over three years.

Simply Wall St -

You May Have Been Looking At NexPoint Residential Trust, Inc. (NYSE:NXRT) All Wrong

NexPoint Residential Trust, Inc. … real estate investment trust (REIT) based in Dallas, United States. … REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential.

Simply Wall St -

Have Insiders Been Buying NexPoint Residential Trust, Inc. (NYSE:NXRT) Shares?

So before you buy or sell NexPoint Residential Trust, Inc. … Check out our latest analysis for NexPoint Residential Trust. … The Last 12 Months Of Insider Transactions At NexPoint Residential Trust.

Simply Wall St -

Investing In NexPoint Residential Trust, Inc. (NYSE:NXRT): What You Need To Know

NexPoint Residential Trust, Inc. … Check out our latest analysis for NexPoint Residential Trust … FFO is a cleaner and more representative figure of how much NXRT actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation

Simply Wall St -

Could NexPoint Residential Trust Inc's (NYSE:NXRT) Investor Composition Influence The Stock Price?

If you want to know who really controls NexPoint Residential Trust Inc (NYSE:NXRT), then you'll have to look at the makeup of its share registry. … NexPoint Residential Trust is not a large company by global standards. … See our latest analysis for NexPoint Residential Trust

Simply Wall St -

Should You Invest In NexPoint Residential Trust Inc (NYSE:NXRT)?

NexPoint Residential Trust Inc is a US$675.8m. … real estate investment trust (REIT) based in Dallas, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company.

Simply Wall St -

Who Owns Most Of NexPoint Residential Trust Inc (NYSE:NXRT)?

In this article, I will take a quick look at NexPoint Residential Trust Inc’s (NYSE:NXRT) recent ownership structure – an unconventional investing subject, but an important one. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … NYSE:NXRT Ownership Summary July 16th 18

Simply Wall St -

Income Investors Should Steer Clear of NexPoint Residential Trust Inc (NYSE:NXRT)

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … In the past 3 years NexPoint Residential Trust Inc (NYSE:NXRT) has returned an average of 4.00% per year to investors in the form of dividend payouts. … Does NexPoint Residential Trust tick all the boxes of a great dividend stock?

Simply Wall St -

Is Buying NexPoint Residential Trust Inc (NYSE:NXRT) For Its Upcoming US$00.25 Dividend A Good Choice?

To qualify for the dividend check of $0.25 per share, investors must have owned the shares prior to 14 June 2018, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine NexPoint Residential Trust's latest financial data to analyse its dividend characteristics. … Here's how I find good dividend stocks.

Simply Wall St -

NexPoint Residential Trust Inc (NYSE:NXRT): Is Now The Time To Bet On Real Estate?

NexPoint Residential Trust Inc (NYSE:NXRT), a US$538.33M small-cap, is a real estate company operating in an industry which is the most prevalent industry in the global economy, and as an asset class, it has continued to play a crucial role in the portfolios of various investors. … In this article, I’ll take you through the real estate sector growth expectations, as well as evaluate whether NexPoint Residential Trust is lagging or leading its competitors in the industry. … Next Steps: NexPoint Residential Trust is a REIT industry laggard in terms of its future growth outlook.

Simply Wall St -

NXRT Company Info

Description

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 Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser.

Details
Name: NexPoint Residential Trust, Inc.
NXRT
Exchange: NYSE
Founded:
$850,236,883
$847,611,480
23,716,510
Website: http://www.nexpointliving.com
Address: NexPoint Residential Trust, Inc.
300 Crescent Court,
Suite 700,
Dallas,
Texas, 75201,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NXRT Common Stock New York Stock Exchange US USD 20. Mar 2015
Number of employees
Current staff
Staff numbers
2
NexPoint Residential Trust employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 00:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/12
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.