NYSE:NXRT

Stock Analysis Report

NexPoint Residential Trust

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.


Snowflake Analysis

Good 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

NXRT

20.4%

US REITs

12.5%

US Market


1 Year Return

-29.9%

NXRT

-19.8%

US REITs

-12.7%

US Market

Return vs Industry: NXRT underperformed the US REITs industry which returned -19.8% over the past year.

Return vs Market: NXRT underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

NXRTIndustryMarket
7 Day6.6%20.4%12.5%
30 Day-40.1%-19.3%-14.7%
90 Day-40.8%-24.5%-21.5%
1 Year-27.8%-29.9%-16.8%-19.8%-10.9%-12.7%
3 Year22.4%10.9%-0.8%-12.9%12.6%5.4%
5 Year124.5%83.0%12.1%-10.8%31.9%17.5%

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

Valuation

Is NexPoint Residential Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NXRT ($26.65) is trading below our estimate of fair value ($55.33)

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 (6.5x) compared to the REITs industry average (24.1x).

PE vs Market: NXRT is good value based on its PE Ratio (6.5x) compared to the US market (13x).


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 (1.6x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

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

-89.7%

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 (-89.7% per year).

Earnings vs Market: NXRT's earnings are forecast to decline over the next 3 years (-89.7% per year).

High Growth Earnings: NXRT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NXRT's revenue (6.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NXRT's revenue (6.3% 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?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXRT has a large one-off gain of $121.9M impacting its December 31 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 47.5% 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 (5%).


Return on Equity

High ROE: Whilst NXRT's Return on Equity (23.15%) is high, this metric is skewed due to their high level of debt.


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?

4.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NXRT's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: NXRT's dividend (4.69%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (68.9%), 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 (1.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average board tenure


CEO

Jim Dondero (56yo)

no data

Tenure

Mr. James David Dondero, also known as Jim, CFA, CMA, CPA, is President and Portfolio Manager of NexPoint Advisors, L.P. Mr. Dondero is Founder of the firm and is responsible for an alternative asset manag ...


Board Members

NamePositionTenureCompensationOwnership
James Dondero
Chairmanno datano data8.24% $55.7m
Brian Mitts
Executive VP of Finance5.5yrsno data0.26% $1.7m
Arthur Laffer
Independent Director4.83yrsUS$128.24k0.12% $791.2k
Scott Kavanaugh
Lead Independent Directorno dataUS$138.24k0.058% $390.3k
Edward Constantino
Independent Director5yrsUS$135.74k0.13% $909.4k

4.9yrs

Average Tenure

58yo

Average Age

Experienced Board: NXRT's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NXRT insiders have sold more shares than they have bought 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 13.8%.


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$676.112m
  • Market Cap: US$674.161m
  • Shares outstanding: 25.37m
  • Website: https://www.nexpointliving.com

Number of Employees


Location

  • NexPoint Residential Trust, Inc.
  • 300 Crescent Court
  • Suite 700
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXRTNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:50
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.