NexPoint Residential Trust reported weaker third-quarter operating results, with same-store net operating income falling 8.2% from a year earlier. The apartment REIT also said it reset its full-year same-store NOI guidance, though the revised range is not included in the material provided.
Quarterly revenue rose, but funds from operations and other operating measures declined. The results also show continued investment in apartment upgrades, which NXRT says are generating higher rents.
Key details
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Third-quarter results weakened year over year. Net loss attributable to common stockholders widened to $11.5 million from $7.8 million a year earlier. Funds from operations (FFO) fell to $11.7 million from $15.9 million; core FFO declined to $13.4 million from $17.7 million; and adjusted FFO (AFFO) decreased to $16.2 million from $20.2 million. These are company-reported non-GAAP measures.
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Revenue increased, while same-store performance declined. Total revenue was $64.5 million, compared with $62.8 million in the third quarter of 2025. Across the 35 same-store properties, occupancy fell 0.7 percentage point, revenue decreased 0.7%, average effective rent dropped 0.7%, and NOI declined 8.2% year over year.
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Nine-month results also trailed the prior year. For the first nine months of 2026, net loss attributable to common stockholders was $26.9 million, versus $21.8 million in the same period of 2025. FFO was $44.3 million, core FFO was $47.6 million and AFFO was $55.4 million, down from $50.2 million, $54.8 million and $62.1 million, respectively.
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Same-store trends were weaker year to date. Through September, same-store occupancy was down 0.7 percentage point, revenue declined 1.2%, average effective rent fell 0.7% and NOI decreased 4.6% from the first nine months of 2025.
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NXRT paid a $0.53-per-share third-quarter dividend on September 30.
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The portfolio had 36 properties and 13,305 units at September 30. Its weighted-average effective monthly rent was $1,489 per unit, and physical occupancy was 92.8%. The same-store group comprised 35 properties and 12,980 units.
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Renovation work continued. During the quarter, NXRT completed 708 full or partial unit upgrades and leased 425 upgraded units. Those leased units generated an average monthly rent premium of $42.54, with a reported 21.1% return on investment.
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The company also reported cumulative results for its improvement programs at properties currently in the portfolio: 11,010 full or partial upgrades, 5,302 kitchen and laundry appliance installations and 11,520 technology packages. NXRT reported average monthly rent increases of $147, $51 and $43 per unit, respectively, with returns on investment of 20.7%, 62.7% and 37.2%.
Plain-English implications
NXRT’s total quarterly revenue rose even as revenue, rents and NOI weakened across its same-store properties. The deterioration in same-store NOI was sharper than the decline in same-store revenue, while FFO, core FFO and AFFO were all lower than a year ago. The release says full-year same-store NOI guidance was reset, but the revised figures are not present in the material provided.