NexPoint Residential Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for Q3 2026 were $64.5 million, compared to $62.8 million in Q3 2025.
• Net loss attributable to common stockholders for Q3 2026 was $11.5 million ($0.45 per diluted share), compared to $7.8 million ($0.31 per diluted share) in Q3 2025.
• Net loss attributable to common stockholders for the nine months ended September 30, 2026, was $26.9 million ($1.05 per diluted share), compared to $21.8 million ($0.86 per diluted share) in the prior year period.
• Net loss increase in Q3 2026 was primarily driven by a $2.0 million increase in property operating expenses and a $2.6 million increase in interest expense, partially offset by a $1.6 million revenue increase.
• Net loss increase for YTD 2026 was primarily driven by a $4.0 million increase in property operating expenses and a $4.3 million increase in interest expense, partially offset by a $3.4 million revenue increase.
• Net Operating Income (NOI) for Q3 2026 was $36.6 million on 36 properties, compared to $38.8 million on 35 properties in Q3 2025.
• Same Store NOI for Q3 2026 decreased 8.2% to $35.6 million, compared to $38.8 million in Q3 2025.
• Same Store NOI for YTD 2026 decreased 4.6% to $109.3 million, compared to $114.6 million in the prior year period.
• FFO for Q3 2026 was $11.7 million ($0.46 per diluted share), compared to $15.9 million ($0.63 per diluted share) in Q3 2025.
• FFO for YTD 2026 was $44.3 million ($1.74 per diluted share), compared to $50.2 million ($1.96 per diluted share) in the prior year period.
• Core FFO for Q3 2026 was $13.4 million ($0.52 per diluted share), compared to $17.7 million ($0.70 per diluted share) in Q3 2025.
• Core FFO for YTD 2026 was $47.6 million ($1.87 per diluted share), compared to $54.8 million ($2.14 per diluted share) in the prior year period.
• AFFO for Q3 2026 was $16.2 million ($0.63 per diluted share), compared to $20.2 million ($0.80 per diluted share) in Q3 2025.
• AFFO for YTD 2026 was $55.4 million ($2.18 per diluted share), compared to $62.1 million ($2.43 per diluted share) in the prior year period.
• Total debt outstanding as of September 30, 2026, was $1.62 billion, including $1.54 billion in mortgage debt and $79.1 million in credit facility debt.
• Leverage ratio (Total Debt to Market Capitalization plus Total Debt) was 77% as of September 30, 2026, compared to 65% in the prior year period.
• Leverage ratio (Net Debt to Enterprise Value) was 76% as of September 30, 2026, compared to 65% in the prior year period.
• Cash and cash equivalents were $15.8 million as of September 30, 2026.
• Restricted cash was $38.8 million as of September 30, 2026.
• Fair market value of interest rate swaps was $4.3 million as of September 30, 2026.

Guidance and Future Outlook:

• NXRT reset full-year 2026 guidance ranges and mid-points for earnings (loss) per diluted share, Core FFO per diluted share, Same Store rental income, Same Store total revenue, Same Store total expense, and Same Store NOI.
• Revised 2026 Earnings (loss) per diluted share guidance mid-point is $(1.68), compared to a prior mid-point of $(1.54).
• Revised 2026 Core FFO per diluted share guidance mid-point is $2.22, compared to a prior mid-point of $2.45.
• Revised 2026 Same Store Rental Income growth guidance mid-point is -1.5%, compared to a prior mid-point of -0.3%.
• Revised 2026 Same Store Total Revenue growth guidance mid-point is -0.9%, compared to a prior mid-point of 0.2%.
• Revised 2026 Same Store Total Expenses growth guidance mid-point is 4.4%, compared to a prior mid-point of 2.1%.
• Revised 2026 Same Store NOI growth guidance mid-point is -4.3%, compared to a prior mid-point of -1.0%.
• 2026 Acquisitions guidance mid-point is $116.0 million, compared to a prior mid-point of $100.0 million.
• 2026 Dispositions guidance mid-point is $100.0 million, reaffirmed from the prior mid-point.
• The Company anticipates net loss for the full year 2026 will be between approximately $44.2 million and $41.8 million.
• The Company anticipates net loss for the fourth quarter of 2026 will be between approximately $17.3 million and $14.8 million.
• 2026 NOI guidance is between $147.8 million and $150.2 million.
• Estimated Q4 2026 NOI guidance is between $35.7 million and $38.1 million.

Business Segments and Product Lines:

• The portfolio consists of 36 properties with 13,305 units as of September 30, 2026.
• Same Store pool includes 35 properties with 12,980 units.
• Weighted average effective monthly rent per unit across the portfolio was $1,489, with physical occupancy at 92.8%.
• Q3 Same Store occupancy decreased 70 basis points to 92.9%, with average effective rent decreasing 0.7% to $1,487.
• YTD Same Store occupancy decreased 70 basis points to 92.9%, with average effective rent decreasing 0.7% to $1,487.
• During Q3 2026, the Company completed 708 full and partial upgrades and leased 425 upgraded units, achieving an average monthly rent premium of $42.54 and a 21.1% ROI.
• Since inception, the Company has completed 11,010 full and partial upgrades, 5,302 kitchen and laundry appliances, and 11,520 technology packages.
• Interior upgrades resulted in an average monthly rental increase of $147 per unit with a 20.7% ROI.
• Kitchen and laundry appliance upgrades resulted in an average monthly rental increase of $51 per unit with a 62.7% ROI.
• Technology package upgrades resulted in an average monthly rental increase of $43 per unit with a 37.2% ROI.
• Total capital expenditures for Q3 2026 were $10.9 million, including $1.5 million in interior capitalized rehab expenditures and $5.5 million in recurring capitalized maintenance.
• Total capital expenditures for YTD 2026 were $29.2 million, including $4.4 million in interior capitalized rehab expenditures and $13.5 million in recurring capitalized maintenance.
• On October 2, 2026, the Company acquired Midtown Crossing in Raleigh, NC, for $32.0 million, consisting of 228 units.

Market and Competitive Landscape:

• Portfolio market composition by units: Phoenix (15.1%), South Florida (14.7%), Dallas/Fort Worth (14.6%), Atlanta (12.7%), Las Vegas (11.2%), Nashville (10.1%), Orlando (8.8%), Raleigh (4.7%), Tampa (4.3%), and Charlotte (3.8%).
• Q3 2026 market-level new lease trade-outs showed negative percentage changes across all markets, ranging from -0.9% in Raleigh to -7.6% in Charlotte.
• Q3 2026 market-level renewal lease trade-outs showed positive percentage changes across all markets, ranging from 0.7% in Charlotte to 10.1% in Las Vegas.
• Forecasted submarket deliveries indicate 2026 deliveries of 10,943 units within a 3-mile radius of NXRT properties, representing 3.5% of the 3-mile inventory.
• 3-year cumulative deliveries (2026-2028) are projected at 25,321 units, representing 3.5% of the 3-mile inventory.
• Implied real estate value per apartment unit ranges from $185.1 to $205.3, with a mid-point of $195.2.
• Estimated real estate value ranges from $2.46 billion to $2.73 billion.

Risks and Challenges:

• Net loss was driven by increases in property operating expenses and interest expense.
• Same Store NOI declined year-over-year due to decreases in revenue and increases in operating expenses.
• Occupancy levels decreased 70 basis points year-over-year for both Q3 and YTD periods.
• Forward-looking statements regarding guidance, acquisitions, dispositions, and value-add programs are subject to risks and uncertainties that could cause actual results to differ materially.
• Risks include forecasted submarket deliveries, debt maturity schedules, rehab budgets, and interest rate swap settlements.

Management Commentary and Tone:

• The Company reported resetting full-year Same Store NOI guidance.
• Management highlighted the completion of 708 upgrades in Q3 2026 with a 21.1% ROI.
• The Company paid a third-quarter dividend of $0.53 per share on September 30, 2026.
• The Board approved a quarterly dividend of $0.53 per share payable on December 31, 2026.
• The Company drew $33.0 million under its revolving credit facility on October 1, 2026.

Other Key Points:

• On October 26, 2026, the Board authorized a share repurchase program for up to $150.0 million over a two-year period expiring October 26, 2028.
• The Company's share price was $18.04 as of November 2, 2026, with a dividend yield of 11.75%.
• Insider ownership was 17.10% as of September 30, 2026.
• Shares outstanding (basic and diluted) were 25,550,000 as of September 30, 2026.
• Total properties increased from 35 in Q3 2025 to 36 in Q3 2026.
• Total units increased from 12,984 in Q3 2025 to 13,305 in Q3 2026.
• 4 units are currently down (3 at Residences at West Place and 1 at Venue at 8651).
• Bad debt as a percentage of gross potential revenue was 0.8% in Q3 2026, unchanged from Q3 2025.
• Resident turnover was 45.7% in Q3 2026, compared to 45.0% in Q3 2025.
• Move-outs to purchase a home decreased to 6.6% in Q3 2026 from 10.4% in Q3 2025.
• Move-outs to rent a home increased to 2.5% in Q3 2026 from 1.9% in Q3 2025.
• The Company's conference call for Q3 2026 results was held on November 3, 2026.