Q2 2026 NexPoint Residential Trust Inc Earnings Call Transcript
Key Points
- NexPoint Residential Trust Inc (NXRT) reported Q2 2026 core FFO of $0.66 per share, beating consensus estimates by a penny.
- Blended lease trade-outs turned positive in July at +30 basis points, marking the first positive print since early 2025 and showing a clear month-over-month improvement.
- Same-store operating expenses are trending lower, with full-year expense growth guidance improved by 140 basis points to 2.1%, driven by declines in real estate taxes, insurance, and payroll.
- The company's value-add renovation program continues to deliver strong returns, with completed upgrades generating an average monthly rent premium of $89 and a 23% return.
- The supply-demand backdrop is improving significantly, with national deliveries at decade lows and 2/3 of the company's submarkets having less than 2% active annual inventory growth.
- Concession utilization was cut roughly in half from 55.6% in Q1 to 27.7% in Q2, with Florida dropping from 87.6% to just 4.8% utilization.
- NexPoint Residential Trust Inc (NXRT) lowered its full-year 2026 core FFO guidance to a midpoint of $2.45 per share, down $0.12 from the prior midpoint of $2.57.
- Higher interest expense, driven by an upward shift in the forward curve and the roll-off of swap protection in September, is the largest driver of the guidance reduction, costing approximately $0.16 per share.
- Same-store revenue growth guidance was reduced by 90 basis points to roughly 0.2% at the midpoint, with Nashville accounting for about 85% of the same-store NOI reduction.
- Same-store NOI declined 2.9% year-over-year in Q2, with total revenue down 0.6% and average effective rent down 80 basis points.
- Occupancy gave back approximately 40 basis points in June as the company prioritized pricing over occupancy, with physical occupancy closing the quarter at 93.6%.
- Repair and maintenance costs increased 13.9% year-over-year, driven by a fiber build-out in four markets, and marketing expenses rose 38.2% due to increased lead generation at underperforming properties.
Hello, everyone.
Thank you for joining us and welcome to the Next Point Residential Trust Q2 2026 earnings call after today's prepared remarks, we will host a question-and-answer session.
If you would like to ask a question, please press 1 to raise your hand.
To withdraw your question, pressar 1 again.
I will now hand the conference over to Krisin Griffith, Investor Relations.
Kristin, please go ahead.
Thank you.
Good day everyone, and welcome to Next Point Residential Trust conference call to review the company's results for the second quarter in the June 30th, 2026.
On the call today are Paul Richards, executive Vice President and Chief Financial Officer.
Matt McGreer, executive Vice President and Chief Investment Officer and Bonner McDermott, Vice President Asset and Investment Management.
As a reminder, this call is being webcast through the company's website at nxrt.next.com.
Before we begin, I would like to
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