Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the NexPoint Residential Trust Q1 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star one again. I would like to turn the call over to Kristen Griffith, Investor Relations. Please go ahead. Thank you. Good day, everyone, and welcome to the NexPoint Residential Trust Conference Call to review the company's results for the Q1 ended 31 March 2025. On the call today are Paul Richards, Executive Vice President and Chief Financial Officer; Matt McGraner, Executive Vice President and Chief Investment Officer; and Bonner McDermett, Vice President, Asset and Investment Management. As a reminder, this call is being broadcast through the company's website at nxrt.nexpoint.com. Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions, and beliefs. Listeners should not place a new reliance on any forward-looking statements and are encouraged to review the company's most recent annual report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risk and other factors that could affect any forward-looking statements. The statements made during this conference call speak only as of today's date and, except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAAP financial measures for a more complete discussion of these non-GAAP financial measures. See the company's earnings release that was filed earlier today. I would now like to turn the call over to Paul Richards. Please go ahead, Paul. Thank you, Kristen, and welcome everyone joining us this morning. We appreciate your time. I'm Paul Richards, and I'm joined today by Matt McGraner and Bonner McDermett. I will kick off the call and cover our Q1 results, updated NAV, and guidance outlook for the year, and briefly touch on a few subsequent events. I will then turn it over to Matt to discuss specifics on the leasing environment and metrics driving our performance and guidance. Results for Q1 are as follows: Net loss for the Q1 was $6.9 million, or a loss of $0.27 per diluted share on total revenue of $63.2 million. The $6.9 million net loss for the quarter compares to net income of $26.4 million, or $1 earnings per diluted share for the same period in 2023, on total revenue of $67.6 million. For the Q1 of 2025, NOI was $37.8 million on 35 properties, compared to $41.1 million for the Q1 of 2024 on 37 properties. For the quarter, same-store rent and occupancy decreased 1.3% and 0.3%, respectively. This, coupled with the decrease in same-store revenues of 1%, led to a decrease in same-store NOI of 3.8% as compared to Q1 2024. As compared to Q4 2024, rents for Q1 2025 on the same-store portfolio were up 0.3%, or $4. We reported Q1 core FFO of $19.1 million, or $0.75 per diluted share, compared to $0.74 per diluted share in Q1 2024. During the Q1, for the properties in the portfolio, we completed 210 full and partial upgrades, at least 201 upgraded units, achieving an average monthly rent premium of $62 and a 16.1% return on investment. Since inception, NXRT has completed installation of 8,558 full and partial upgrades, 4,795 kitchen and laundry appliances, and 11,389 technology packages, resulting in $172.50 and $43.00 average monthly rental increase per unit, and 20.7%, 64.5%, and 37.2% return on investment, respectively. NXRT paid a quarterly dividend of $0.51 per share on common stock on 31 March 2025. Since inception, we've increased our dividend 147.6%. For Q1, our dividend was 1.4 times covered by core FFO, with a 68.3% payout ratio of core FFO. Turning to the details of our updated NAV estimate, based on our current estimate of cap rates in our markets and forward NOI, we are reporting a NAV per share range as follows: $44.20 on the low end, $58.20 on the high end, and $51.20 at the midpoint. These are based on average cap rates ranging from 5.25% on the low end to 5.75% at the high end, which remained stable quarter over quarter. Turning to full year 2025 guidance, NXRT is revising 2025 guidance ranges for earnings per diluted share and core FFO per diluted share due to the share buyback program we have initiated in Q2, current interest rate environment, as well as plans to continue to layer in additional swaps. These guidance ranges are as follows: for earnings loss per diluted share, $1.08 at the high end, negative $1.36 at the low end, with a midpoint of negative $1.22, and core FFO per diluted share of $2.89 at the high end, $2.61 at the low end, with a midpoint of $2.75. NXRT is reaffirming same-store rental income, same-store total revenue, same-store total expenses, same-store NOI, and acquisitions and dispositions. Lastly, I would like to take time to discuss a few subsequent events that have occurred over the past few weeks. On 28 April 2025, the company's board approved a quarterly dividend of $0.51 per share payable on 30 June 2025, to stockholders of record on 16 June 2025. Since 1 April 2025, the company has purchased 223,109 shares of its common stock, totaling approximately $7.6 million, at an average price of $34.29 per share, which is a 33% discount to our current NAV midpoint. On 3 April 2025, the company entered into a new five-year $100 million SOFR swap with JPMorgan Chase with a fixed rate of 3.489%. This completes my prepared remarks, so I'll turn it over to Matt for commentary on the portfolio. Thank you, Paul. Let me start by going over our Q1 same-store operational results. Occupancy ended the quarter at 94.4%, and we saw sizable occupancy growth in Nashville and Phoenix, which finished the quarter at 95.4% and 94.6%, respectively. Charlotte, Orlando, South Florida, and Las Vegas remained strong, finishing the quarter at an average occupancy of 95.1%. We are tactically pushing rate increases and accelerating interior renovations into a fundamentally stronger peak leasing season ahead. As of this morning, the portfolio is 95.5% leased, with a healthy 60-day trend of 92%. Q1 same-store NOI was down 3.8%, driven by an 80 basis point decline in rental revenue and a 1% decline in total revenues. Though negative, we were 2% better than our internal forecast and saw an improvement of almost 40% in bad debt year-over-year, and believe same-store NOI will inflect higher over the remainder of the year. Renewal conversions for eligible tenants were 54% for the quarter, achieving a 73 basis point increase in lease renewals. April blended lease growth is expected to finish flat, but there are signs that demand remains strong, leading to positive rent growth later in the quarter and the back half of 2025, consistent with our initial guidance for the year. I'll return to this point in a minute. Operating expense growth finished the quarter at 3.7%, maintaining the moderate growth we have seen over the last several quarters. Repairs and maintenance expense were in line at 4.9%, and turn costs saw a 2% improvement over the prior year quarter. Market conditions in Q1 continued to remain strong. Nationally, over 138,000 units were absorbed, a record Q1 leasing and demand performance. Our markets of Atlanta, Phoenix, and Dallas were top three for absorption, while strong showings from Charlotte and Tampa as well gave us five of the top 10 markets for Q1 absorption. Affordability challenges persist, positioning our assets to capture increased rental demand in an improving operating environment. We have shifted to rent growth initiatives in most of our markets while continuing to balance occupancy maximization, where new deliveries and concessions are still impacting our assets. Through Q1 2025, we have seen new supply, albeit primarily within Class A stock, continue to deliver in our markets. We're encouraged by the placement of our assets relative to the submarkets most directly hit with this new competition, and RealPage forecasts for our submarkets over the next three years project a 1.4% annual rise in available inventory, well below the recent rapid growth we've seen during this historic supply wave. Indeed, RealPage's April data is forecasting a 22% decline in deliveries year-over-year within NXRT submarkets, from 17,636 units to 13,750 units. In the years to follow, the supply picture improves even more dramatically with the lack of new starts in recent years, with an additional 38% decline in new supply in 2026, just 8,494 units, and a staggering 82% drop in 2027 to just 1,513 units in our submarkets. Amidst this improving outlook, we have seen a market acceleration in new lease pricing power in each successive month of 2025 to date. We're pleased to share that effective rents ended the quarter at $1,495, up 30 basis points from the fourth quarter of 2024. Six of our 10 markets showed flat to positive rent growth, with Tampa and Las Vegas showing the strongest growth, with 1.9% and 1.6% rent growth, respectively. South Florida, DFW, Charlotte, and Atlanta witnessed growth between 0% and 1% during the seasonally slower Q1. Moreover, using March as our last full month of data, we saw 17 of 35 properties and four of our 10 markets, South Florida, Charlotte, DFW, and Las Vegas, all shift into positive new lease growth, and that's up from just two properties in Q4. April month to date has seen further improvement to 20 properties out of our 35 properties, with particular strength in Las Vegas, 7%, in Tampa at 4.8%, DFW at 3.5%, and South Florida at 2%. Renewal growth in Q1 was muted as we aimed to reduce exposure to still stagnant new leases while minimizing turn costs, but our defensive occupancy has allowed us to take larger swings at rental increases in the historically stronger Q2 and Q3 seasons. We expect this strategy to be a source of rent growth, allowing us to obtain higher organic rents and/or churn units for varying degrees of renovation opportunities. I want to spend a quick minute on the impacts we are seeing related to tariffs. We and BH Construction are actively monitoring this very fluid situation, but so far, the impact on NXRT is pretty muted. Most vendors we interact with have notified customers of potential increases in supply disruptions related to tariffs. Such vendors germane to NXRT are flooring suppliers like Shaw or appliance suppliers like GE or paint like Sherwin-Williams. So far, these suppliers are generally holding prices flat to signaling a 10% to 20% increase over the term if uncertainty persists. Across the rest of our platforms and multifamily development partners, we are not hearing anything causing material concern. Most lumber and concrete providers, for example, are local to the U.S. and have supply chains already in place. Developers are also pointing to the dearth of new construction starts as a larger offset to normalize demand for construction materials and labor. Obviously, a situation we're monitoring, but as we sit here today, NXRT is not seeing a material impact. We continue on the transaction front. We continue to actively monitor the sales market for opportunities and stay close to any movements on cap rates in our markets. After a pretty noticeable increase in marketed offerings to start the year, most institutional investors are in wait-and-see mode for clarity around the interest rate environment and more recently tariffs. That said, pricing expectations for quality assets in our markets remain strong, and most processes and sellers are expecting to transact at five caps. Indeed, there are several portfolio processes currently underway that should provide real-time transparency to our NAV guide with similar vintages and geographical overlay to NXRT's portfolio. These guides are 5-5.25% cap rate ranges and approximately $200,000-$220,000 per unit values. In closing, we're pleased with the start of 2025 through late April and focused on driving internal growth and recycling capital as supply continues to be absorbed later in the year. In particular, we believe the inflection of new lease growth to be a really positive sign for our assets after many quarters of softness. That's all I have for prepared remarks. I appreciate our teams here at NexPoint and BH for continuing to execute, and now we'd be happy to take any questions. Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press the star one again. If you are called upon to ask your question and listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, please press star one to join the queue. Your first question comes from the line of Kyle Katorincek of Janney. Your line is now open. Hey, good morning, guys. Which of your markets are you seeing enough transactional value where values at the upper end of your cap rate range versus the lower provided in your NAV slide? Sorry, did you say what other geographies where cap rates are softer, basically? Yeah, exactly. Yeah. I'd say that, again, for the transactions that we've seen take place and the processes going on, I'd say out of our markets, probably Atlanta, I would say, is on the weaker side of our NAV guidance and then some DFW, which makes sense given the supply is heavily still delivering in those two markets. I don't know, Bonner, do you have anything to add to that? Yeah, I think it's also a qualitative discussion, right? The bid is really aggressive for well-located suburban B plus assets similar to ours. I think more of the product that's out there is either a broken capital structure or outside the promote, right? The decision to sell into this softness is typically not making a whole lot of money for the general partnership. It just depends, right? For quality assets, those are getting bid up. We were in a process on a deal we liked in Las Vegas. Matt talked about the great rent growth fundamentals there. We put what we thought was a very compelling offer out there and got outbid. That was a five to sub five in place. You look at some other assets and the syndicators that have been out there, the Tides, the other groups like that, some of those assets are a little bit weaker and a little bit lesser demanded. Okay, thank you. Given the mid-point of your NAV range and where the stock's currently trading, can we see you guys hitting the higher end of your disposition range, selling more assets to repurchase stock and close that valuation gap over the next few quarters? Yeah, I think so. I think what we'd like to do is maintain a steady buyback program with the free cash flow that we generate, which is a lot, that at the same time be opportunistic to also not externally grow, but recycle capital. There's some deals that we want to sell, and perhaps we use a portion of the proceeds to recycle into newer assets or new value-add assets where we have an internal growth story, as well as keeping the buyback in place. Obviously, that's share price dependent. If we run a little bit, then we might pause and wait. Awesome. Thanks, guys. Appreciate it. Thanks, Kyle. Your next question comes from the line of Omotayo Okusanya of Deutsche Bank. Please go ahead. Hi, yes. Good morning, everyone. I just wanted to confirm the increase in core FFO per share guidance. That is all being driven by you're expecting more share buybacks and as well as you're taking care of swaps throughout the course of the year, you're locking in fixed rates that are a little bit better than you were anticipating. Is that fair? Hey, Yeah, this is Paul. That's correct. We've seen in the marketplace on the swap side, rates come down precipitously. We were again able to lock in a $100 million notional at sub 3.5. We're actually seeing, I just checked today, a little bit better, a few basis points better than that too if we were to lock in another 5,200 on a five-year swap basis. We're also seeing the curve really retrace down to five to six cuts. That really does help the forward guidance. That's, I would say, the majority of the reason how we've taken up our guidance range up those few pennies this past quarter. Gotcha. Any reason why you have been a little bit more aggressive on the swaps then since you're kind of seeing this happening? Yeah. Over the past week, it was pretty choppy. We were, like I said, about three weeks ago, we did lock in that $100 million. It got pretty volatile and credit charges really did spike. Now you're seeing less of that and you are seeing rates settle. We would be able to lock in a better transaction today than we would have over the past two weeks. We have a keen eye on that right now. I agree with you. Okay. That's helpful. Matt, your comments earlier in regards to just kind of new rent growth and also kind of renewal growth, again, what those stats were in Q1 kind of, X the value-add program? Yeah. Most of what I'm referring to in terms of new lease growth and inflection is organic. It's not driven by any rehab results, which again is kind of like the all, I don't want to say all clear sign for the industry, but the folks both on the buy side and then on an operating performance perspective, that's what we've been waiting for, right? The inflection of these submarkets to start seeing new lease growth again. So pretty positive. Gotcha. That's helpful. For the value-add program, again, accelerated in one Q, how should we kind of think about for the rest of the year how much of that stuff we could potentially get? Yeah. I mean, I'd say that we're maybe hitting a jog as the second half of the year. As I mentioned in my prepared comments, we're holding probably a little bit more units open for rehab opportunities and willing to take some occupancy retracement to push rent in the back half of the year. In markets like South Florida, Las Vegas, as Bonner mentioned, there's a lot of rehab opportunities that we're still continuing to execute because we can get those bumps and have them healthily absorbed by the tenants. So it's a goal for ours to get back to 400 units a quarter in output. I don't think we're going to get there in the next few quarters, but hopefully by second half of the year, we're doing a couple hundred a quarter. Gotcha. That's helpful. One more for me, if you don't mind. How do we think about stock buybacks for the rest of the year with the stock at $36 to 38 versus earlier buybacks at like $32 to 33? Yeah. I mean, I still wear like a 6.6, 6.7 implied cap rate. So we still like it here. Really, we'll take advantage on weekdays and volatile days. I think I like it up to probably 10% off the low end of NAV range or in that 6.25% cap rate range. I think that's kind of our guiding light. Okay. That's helpful. Thank you very much. Thanks. Your next question comes from the line of Buck Horne of Raymond James. Please go ahead. Thanks. Good morning, guys, and congrats. I wonder if you could maybe dive in a little bit further on the comments about Las Vegas, given the strength you're seeing there. It seems a little maybe counterintuitive. I kind of want to unpack it a little bit, just given the signs that tourism-related travel is declining into Vegas, and there seems to be some signs of some layoffs at some of the resorts in that market. Is your portfolio in Vegas, do you view that as kind of countercyclical in times of uncertainty, or how do you attribute the strength you're seeing in Vegas? Yeah. I think for our assets, they're just in an affordable gap, right? I mean, our average unit per effective unit rent is probably $1,200 in that market. And then a recurring resident burden is probably somewhere in the 25 to 3,000 per month on a P&I basis. The fact of the matter is, as you well know, Buck, even though you've seen some recent supply in 2021 and 2022, or excuse me, starts in 2022 that hit in the last 18 months, that's a historically undersupplied housing market. With the net migration inflows, which is still occurring today in our affordable kind of price point and in the markets that in the submarkets that we have, there's just not a lot of options. It's been a particular sign of strength for really the last, I'd say, three or four quarters. It is a market that we want to continue to look at for acquisitions given this backdrop. I think we are still very bullish on it. Yeah. No, it's a very encouraging sign. And if you're thinking about just kind of the overall trajectory of new lease growth, I mean, I know you're trying not to project out too far, but if these trends continue through kind of peak leasing season, where do you think your new lease rate growth would kind of peak out this year, maybe by the Q3? Yeah, it's a good question. I looked at this last night. I think that if we can get, let me just give you a little sense of where our guide is. We did $1,482 of net effective rents for the Q1. To get to the top end of our revenue guidance, we only have to get to $1,520 a unit. That's like $35 to 40. On a percentage increase, that's a couple% and not a whole lot of headroom there. I think that our ability to hit $35 or $40 or $50 per unit, given our assets, given the lack of affordability, just given the quality of the locations, I think that we have some potential to hit that upside and achieve that 2%-ish growth for the rest of the year, which would be great. That's great, color. I appreciate the feedback there. One real last quick or quick last one is CapEx guidance. Just wondering if you could maybe help us think through both recurring and non-recurring CapEx needs as you're seeing the year progress. Yeah, Buck, happy to help you with that. You look at page 17 of the supplement, we've got, call it, $6 million of kind of recurring, non-recurring CapEx in the Q1. It's actually down a little bit year- over- year, I think, part of that's just the reduction in the portfolio. That seems like a pretty stable run rate. We've got a little bit of exterior CapEx going on at some of the properties in the Q2 and Q3, but nothing overly material. It's a pretty steady standard year. To Matt's point, I think we're targeting maybe 300 interior upgrades in Q2-Q3 range. You may see a little bit of pickup in interiors, but that's all demand-driven. Nothing overly material in terms of change quarter- over- quarter for CapEx spend. Got it. All right. Thanks, guys. Congrats. Thanks, Paul. Your next question comes from the line of Omotayo Okusanya of Deutsche Bank. Your line is now open. Yes. Thanks for taking the follow-up. When we kind of looked at your actual results versus maybe some of our estimates, it felt like OpEx and as well as property taxes and insurance came in a little bit light. Even OpEx for the quarter at like $12 point something million a quarter, I do not think has been that low in a while. Just curious if there is anything unique going on, if there is a one-time item in there, or how would you kind of think about those numbers as potential run rates for the rest of the year? In terms of our guide for the year, I think Matt mentioned we were a little bit ahead of our kind of internal forecasting, but we've done well. We've worked a lot on centralization for payroll spend. We're ramping more of the podding for maintenance. We're pushing that aggressively. I don't know that you fully realize the opportunity there. I think we'll get more maintenance payroll spend down, hopefully by the first half of 2026, we get to kind of a normalized new run rate there. It's something we're working pretty hard on. Taxes, we're just in the valuation cycle there. There's going to be some fluctuation. We'll fight a lot of those, particularly Texas counties. We've got a couple reval years there, nothing material. We didn't discuss, but we recently renewed our insurance, got a pretty favorable result there. There is going to be a little bit of savings. Has not materialized in the Q1 numbers. That is an April 1 renewal. Everything on the expense front looks pretty good. Going back to Matt's comments on tariffs, we feel good about OpEx for the year. Helpful. Thank you so much. That concludes our Q&A session. I will now turn the conference back over to the management team for the closing remarks. Yeah. Thanks very much for everyone's participation and interest today. I look forward to seeing you guys at NAREIT. Thanks. Bye. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.