Earnings release
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NEXPOINT RESIDENTIAL TRUST , INC . [ NYSE : NXRT ] NEXPOINT RESIDENTIAL TRUST Contact : Investor Relations Kristen Griffith IR@nexpoint.com ( 214 ) 276-6300 Media inquiries : Comms@nexpoint.com NEXPOINT RESIDENTIAL TRUST , INC . REPORTS SECOND QUARTER 2026 RESULTS NXRT Reports Continued Improvement in Monthly Lease Trade - Outs and Deploys Initial $ 22.1 Million Fixed - Rate Term Loan for DST Bridge - Lending Initiative Dallas , TX , August 4 , 2026 – NexPoint Residential Trust , Inc. ( NYSE : NXRT ) reported financial results for the second quarter ended June 30 , 2026 . Highlights • • • • • • • NXRT¹ reported net loss , FFO² , Core FFO² and AFFO² of $ 8.6M , $ 15.2M , $ 16.9M and $ 19.7M , respectively , attributable to common stockholders for the quarter ended June 30 , 2026 , compared to net loss , FFO , Core FFO , and AFFO of $ 7.0M , $ 16.9M , $ 18.0M and $ 20.3M , respectively , attributable to common stockholders for the quarter ended June 30 , 2025 . NXRT reported net loss , FFO , Core FFO and AFFO of $ 15.4M , $ 32.6M , $ 34.2M and $ 39.3M , respectively , attributable to common stockholders for the six months ended June 30 , 2026 , compared to net loss , FFO , Core FFO , and AFFO of $ 13.9M , $ 34.3M , $ 37.0M and $ 41.8M , respectively , attributable to common stockholders for the six months ended June 30 , 2025 . For the three months ended June 30 , 2026 , Q2 Same Store properties³ , occupancy increased 30 bps , total revenue decreased 0.6 % , and average effective rent and NOI² decreased 0.9 % and 2.9 % over the prior year period . For the six months ended June 30 , 2026 , YTD Same Store properties³ , occupancy increased 30 bps , total revenue and NOI² decreased 1.4 % and 2.8 % , respectively , and average effective rent decreased 0.9 % over the prior year period . NXRT paid a second quarter dividend of $ 0.53 per share of common stock on June 30 , 2026 . The weighted average effective monthly rent per unit across all 36 properties held as of June 30 , 2026 ( the “ Portfolio ” ) , consisting of 13,3054 units , was $ 1,490 , while physical occupancy was 93.5 % . On June 5 , 2026 , the Company deployed $ 22.1 million into a fixed - rate term loan ( the " Waterford Loan " ) , bearing interest at 10.00 % per annum , that financed the acquisition of a 240 - unit stabilized multifamily property in the Greensboro - High Point , North Carolina market . The investment represents the Company's first deployment under its DST bridge - lending program and was funded through the Company's revolving credit facility , capturing a positive spread between the Waterford Loan's 10.00 % fixed rate and the Company's cost of borrowings . During the second quarter 2026 , for the properties in the Portfolio , we completed 459 full and partial upgrades and leased 255 upgraded units , achieving an average monthly rent premium of $ 90.60 and a 23.0 % ROI³ . Since inception , for the properties currently in the Portfolio , we have completed 10,474 full and partial upgrades , 5,130 kitchen and laundry appliances , and 11,199 technology packages , resulting in a $ 152 , $ 51 , and $ 43 average monthly rental increase per unit and a 20.7 % , 63.4 % , and 37.2 % ROI , respectively . ( 1 ) In this release , “ we , ” “ us , ” “ our , " the " Company , ” and “ NXRT ” each refer to NexPoint Residential Trust , Inc. , a Maryland corporation . ( 2 ) FFO , Core FFO , AFFO and NOI are non - GAAP measures . For a discussion of why we consider these non - GAAP measures useful and reconciliations of FFO , Core FFO , AFFO and NOI to net loss , see the " Definitions and Reconciliations of Non - GAAP Measures , " " FFO , Core FFO and AFFO " and " NOI and Same Store NOI " sections of this release . ( 3 ) We define " Same Store " properties as properties that were in our Portfolio for the entirety of the periods being compared . There are 35 properties encompassing 12,984 units of apartment space in our Same Store pool for the three months ended June 30 , 2026 ( our " Q2 Same Store " properties ) and 35 properties encompassing 12,984 units of apartment space in our Same Store pool for the six months ended June 30 , 2026 ( our " YTD Same Store " properties ) . ( 4 ) Total units owned in our Portfolio is 13,305 , however 1 unit is currently down . ( 5 ) We define Return on Investment ( " ROI " ) as the sum of the actual rent premium divided by the sum of the total cost . NXRT.NEXPOINT.COM Page 1
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 2 Second Quarter 2026 Financial Results Total revenues were $64.6 million for the second qu arter of 2026, compared to $63.1 million for the second quarter of 2025. Net loss for the second quarter of 2026 totaled $8. 6 million, or loss of $0.34 per diluted share, whic h included $23.9 million of depreciation and amortization expense. This compare d to net loss of $7.0 million, or loss of $0.28 per diluted share, for the second quarter of 2025, which included $24.1 million of de preciation and amortization expense. The change in our net loss of $8.6 million for the three months ended June 30, 2026 as compared to our net loss of 7.0 million for the three months ended June 30, 2025 primarily rela tes to an increase in property operating expenses a nd interest expense of $2.1 million and $0.7 million, respectively, offset by a n increase in total revenues of $1.5 million. For the second quarter of 2026, NOI was $37.9 million on 36 properties, compared to $38.0 million for the second quarter of 2025 on 35 properties. For the second quarter of 2026, Q2 Same Store NOI d ecreased 2.9% to $36.9 million, compared to $38.0 m illion for the second quarter of 2025. For the second quarter of 2026, FFO totaled $15.2 m illion, or $0.60 per diluted share, compared to $16 .9 million, or $0.67 per diluted share, for the second quarter of 2025. For the second quarter of 2026, Core FFO totaled $16.9 million, or $0.66 per diluted share, compared to $18.0 million, or $0.71 per diluted share, for the second quarter of 2025. For the second quarter of 2026, AFFO totaled $19.7 million, or $0.77 per diluted share, compared to $2 0.3 million, or $0.80 per diluted share, for the second quarter of 2025. 2026 Year to Date Financial Results Total revenues were $128.2 million for the six mont hs ended June 30, 2026, compared to $126.4 million for the six months ended June 30, 2025. Net loss for the six months ended June 30, 2026 tot aled $15.4 million, or loss of $0.60 per diluted sh are, which included $48.2 million of depreciation and amortization expense. This compared to net loss of $13.9 million, or loss of $0.55 per diluted share, for the six months ended June 30, 2025, which included $48.4 million of depreciation and amortization expe nse. The change in our net loss of $15.4 million for the six months ended June 30, 2026 as compared to our net loss of $13.9 million for the six months ended June 30, 2025 primarily relate s to an increase in interest expense of $1.7 million. For the six months ended June 30, 2026, NOI was $75 .5 million on 36 properties, compared to $75.8 mill ion for the six months ended June 30, 2025 on 35 properties. For the six months ended June 30, 2026, Same Store NOI decreased 2.8% to $73.6 million, compared to $7 5.8 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, FFO totaled $32.6 million, or $1.28 per diluted share, compared to $34.3 million, or $1.34 per diluted share, for the six months ended June 30 , 2025. For the six months ended June 30, 2026, Core FFO totaled $34.2 million, or $1.34 per diluted share, compared to $37.0 million, or $1.45 per diluted share, for the six months ended June 30, 2025. For the six months ended June 30, 2026, AFFO totale d $39.3 million, or $1.54 per diluted share, compar ed to $41.8 million, or $1.64 per diluted share, for the six months ended June 30, 2025. Subsequent Events On July 27, 2026, the Company’s Board approved a qu arterly dividend of $0.53 per share, payable on September 30, 2026 to stockholders of record on September 15, 2026. Second Quarter Earnings Conference Call NXRT will host a call on Tuesday, August 4, 2026, a t 11:00 a.m. ET (10:00 a.m. CT), to discuss its sec ond quarter 2026 financial results. The conference call can be accessed live over the phone by dialing 833-461-5787 or, for international callers, +1 365-657-4084 and using passcode Conference ID: 814362322. A live audio webcast of the call will be available online at the Company's website, nxrt.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days. About NXRT NexPoint Residential Trust, Inc. is a publicly traded real estate investment trust (“REIT”), with its common stock listed on the New York Stock Exchange and NYSE Texas, Inc. under the symbol “NXRT,” primarily focused on acquiring, owni ng 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 Unit ed States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-regist ered investment advisor, which has extensive real estate experience. Our filings
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 3 with the Securities and Exchange Commission (the “S EC”) are available on our website, nxrt.nexpoint.com, under the “Financials” tab. Cautionary Statement Regarding Forward-Looking Stat ements This release contains forward-looking statements wi thin the meaning of the Private Securities Litigati on Reform Act of 1995 that are based on management’s current expectations, assumpt ions and beliefs. Forward-looking statements can of ten be identified by words such as “expect,” “anticipate,” “estimate,” “may,” “plan,” “believe” and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are n ot limited to, statements regarding NXRT’s business and industry in general, forecasted submarket deliveries, 2026 full year gui dance for earnings (loss) per diluted share and Cor e FFO per diluted share and the related components and assumptions, including acqui sitions and dispositions, shares outstanding, and s ame store growth projections, NXRT’s net asset value and the related components a nd assumptions, including estimated value-add expen ditures, debt payments, outstanding debt, and shares outstanding, net incom e and NOI guidance for the full year and third quar ter of 2026 and the related assumptions, planned value-add programs, including projected average rehab costs, rent change and return on investment, and expected settlement of interest rate swaps and the effect on the debt maturity schedule and rehab budgets. They are not guarantees of future results and are subject to risks, uncertainties and assumpt ions that could cause actual results to differ mate rially from those expressed in any forward-looking statement, including those describe d in greater detail in our filings with the SEC, pa rticularly those described in our Annual Report on Form 10-K. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s most recent Annual Report on Form 10- K and other filings with the SEC for a more complet e discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undert ake any obligation to publicly update or revise any forward-looking statements.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 4 FFO, Core FFO and AFFO The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2026 an d 2025 (in thousands, except per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 % Change Net loss $ (8,645 ) $ (7,061 ) $ (15,426 ) $ (13,985 ) -10.3 % Depreciation and amortization 23,893 24,059 48,184 48,409 -0.5 % Adjustment for noncontrolling interests (60 ) (67 ) (129 ) (136 ) 5.1 % FFO attributable to common stockholders 15,188 16,931 32,629 34,288 -4.8 % FFO per share - basic $ 0.60 $ 0.67 $ 1.28 $ 1.35 -5.2 % FFO per share - diluted $ 0.60 $ 0.67 $ 1.28 $ 1.34 -4.5 % Casualty -related expenses/(recoveries) 90 (792 ) (1,662 ) (1,448 ) -14.8 % Casualty loss — 5 — 168 N/M Amortization of deferred financing costs 1,684 1,628 3,367 3,272 2.9 % Mark -to -market adjustments of interest rate caps (29 ) 187 (127 ) 778 N/M Adjustment for noncontrolling interests (7 ) (4 ) (6 ) (11 ) 45.5 % Core FFO attributable to common stockholders 16,926 17,955 34,201 37,047 -7.7 % Core FFO per share - basic $ 0.66 $ 0.71 $ 1.34 $ 1.46 -8.2 % Core FFO per share - diluted $ 0.66 $ 0.71 $ 1.34 $ 1.45 -7.6 % Equity -based compensation expense 2,736 2,335 5,098 4,810 6.0 % Adjustment for noncontrolling interests (11 ) (9 ) (20 ) (19 ) -5.3 % AFFO attributable to common stockholders 19,651 20,281 39,279 41,838 -6.1 % AFFO per share - basic $ 0.77 $ 0.80 $ 1.54 $ 1.65 -6.7 % AFFO per share - diluted $ 0.77 $ 0.80 $ 1.54 $ 1.64 -6.1 % Weighted average common shares outstanding - basic 25,517 25,384 25,458 25,416 0.2 % Weighted average common shares outstanding - diluted (1) 25,517 25,404 25,491 25,540 -0.2 % Dividends declared per common share $ 0.53 $ 0.51 $ 1.06 $ 1.02 3.9 % Net loss Coverage - diluted (2) -0.64x -0.55x -0.57x -0.54x 5.0 % FFO Coverage - diluted (2) 1.12x 1.31x 1.21x 1.31x -8.1 % Core FFO Coverage - diluted (2) 1.25x 1.39x 1.26x 1.42x -11.1 % AFFO Coverage - diluted (2) 1.45x 1.57x 1.45x 1.61x -9.6 % (1) The Company uses diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO. For periods in which potential common shares are anti-dilutive, diluted weighted-average shares outstanding are eq ual to basic weighted-average shares outstanding. (2) Indicates coverage ratio of net loss/FFO/Core FFO/A FFO per common share (diluted) over dividends decla red per common share during the period.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 5 Definitions and Reconciliations of Non-GAAP Measure s Definitions This presentation contains non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amo unts so as to be different than the most directly c omparable measure calculated and presented in accordance with GAAP in the statements of income (loss), balance sheets or statements of cash flows of the Company. The non- GAAP financial measures used within this presentati on are net operating income (“NOI”), funds from ope rations attributable to common stockholders (“FFO”), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO (“AFFO”), AFFO per diluted share and net debt. NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, t o determine trends in earnings and to compute the f air value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory and administrative fees, (3) depreciation and amortization expenses, (4) corporate income and corporate genera l and administrative expenses that are not reflecti ve of operations of the properties, (5) casualty-related expenses/(recoveries) and casualty loss, (6) property general and administrative expe nses that are not reflective of the continuing operations of the properties or are incu rred on behalf of the Company at the property for e xpenses such as legal, professional, centralized leasing service and franchise tax fees and (7) equity in earnings of affiliate. We define “Same Store NOI” as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of proper ties owned for the entirety of the current and comp arable periods and therefore eliminates variations caused by acquisitions or dispositions d uring the periods. FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate di spositions, plus real estate depreciation and amort ization. We compute FFO in accordance with NAREIT’s definition. Our presentation differs slightly in that we begin with net income (loss) be fore adjusting for amounts attributable to redeemable noncontrolling interests in the OP an d we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders. Core FFO makes certain adjustments to FFO, which ar e not representative of the ongoing operating perfo rmance of our Portfolio. Core FFO adjusts FFO to remove items such as loss on extingu ishment of debt and modification costs, casualty-re lated expenses/(recoveries) and loss (gain), the amortization of deferred financing cost s, mark-to-market gains or losses related to intere st rate cap agreements not designated as hedges for accounting purposes, and the noncontroll ing interests (as described above) related to these items. AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our portfolio. There is no industry standard definition of AFFO and prac tice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the related n oncontrolling interests (as described above) related to this item. Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding. We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP pres entations, improves the understanding of operating results and debt levels of REITs among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Cor e FFO, AFFO and net debt are relevant and widely us ed measures of operating performance and debt levels of REITs, they do not r epresent cash flows from operations, net income (lo ss) or total debt as defined by GAAP and should not be considered an alternative or subs titute to those measures in evaluating our liquidit y, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be in dicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a bett er understanding of our leverage ratio. Net debt sh ould not be considered an alternative or substitute to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Cor e FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent An nual Report on Form 10-K and our other filings with the SEC.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 6 Reconciliations NOI and Same Store NOI The following table, which has not been adjusted fo r the effects of noncontrolling interests, reconcil es NOI and our Same Store NOI for the three and six months ended June 30, 2026 and 2025 t o net loss, the most directly comparable GAAP financial measure (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Net loss $ (8,645 ) $ (7,061 ) $ (15,426 ) $ (13,985 ) Adjustments to reconcile net loss to NOI: Advisory and administrative fees 1,798 1,725 3,569 3,421 Corporate general and administrative expenses 4,711 4,499 9,184 8,956 Corporate income (765 ) (370 ) (1,355 ) (812 ) Casualty -related expenses/(recoveries) (1) 90 (792 ) (1,662 ) (1,448 ) Casualty loss — 5 — 168 Property general and administrative expenses (2) 1,088 868 1,939 1,658 Depreciation and amortization 23,893 24,059 48,184 48,409 Interest expense 15,829 15,162 31,271 29,543 Equity in earnings of affiliate (105 ) (59 ) (173 ) (114 ) NOI $ 37,894 $ 38,036 $ 75,531 $ 75,796 Less Non -Same Store Revenues (1,443 ) — (3,000 ) (4 ) Operating expenses 479 — 1,102 (19 ) Same Store NOI $ 36,930 $ 38,036 $ 73,633 $ 75,773 (1) Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries). (2) Adjustment to net loss to exclude certain property general and administrative expenses that are not re flective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. Reconciliation of Debt to Net Debt (dollar amounts in thousands) Q2 2026 Q2 2025 Total mortgage debt $ 1,543,529 $ 1,503,242 Total credit facility 79,145 — Total debt outstanding 1,622,674 1,503,242 Adjustments to arrive at net debt: Cash and cash equivalents (14,626 ) (13,623 ) Restricted cash held for value -add upgrades and green improvements (6,564 ) (3,320 ) Net Debt $ 1,601,484 $ 1,486,299 Enterprise Value (1) $ 2,314,484 $ 2,331,299 Leverage Ratio (Total Debt to Market Capitalization plus Total Debt) 69 % 64 % Leverage Ratio (Net Debt to Enterprise Value) 69 % 64 % (1) Enterprise Value is calculated as Market Capitalization plus net debt.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 7 Guidance Reconciliations of NOI, Same Store NOI, FF O, Core FFO and AFFO The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our 2026 NOI guidance to net loss (the most directly comparable GAAP financial measure) gu idance for the periods presented below (in thousands): For the Year Ended December 31, 2026 For the Three Months Ended September 30, 2026 Mid -Point (1) Mid -Point (1) Net loss $ (39,517 ) $ (11,015 ) Adjustments to reconcile net loss to NOI: Advisory and administrative fees 7,197 1,813 Corporate general and administrative expenses 19,039 4,928 Corporate income (3,267 ) (978 ) Property general and administrative expenses (2) 4,009 1,003 Depreciation and amortization 97,423 24,888 Interest expense 71,246 18,285 Casualty -related recoveries (1,677 ) — Equity in earnings of affiliate (333 ) (80 ) NOI $ 154,120 $ 38,844 Less Non -Same Store Revenues (3) (6,229 ) Operating expenses (3) 2,175 Same Store NOI (3) $ 150,066 (1) Mid-Point estimates shown for full year and third q uarter 2026 guidance. Assumptions made for full yea r and third quarter 2026 NOI guidance include the Same Store operating growth projections included in the “2026 Full Year Guidance Summary” section of this release and the effect of the dispositions throughout the fiscal year. (2) Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. (3) Amounts are derived from the results of operations of our YTD Same Store properties and Non-Same Store properties. There are 35 properties in our YTD Same Store pool.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 8 The following table reconciles our FFO, Core FFO and AFFO guidance to our net loss (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2026 (in t housands, except per share data): For the Year Ended December 31, 2026 Mid-Point Net loss $ (39,517 ) Depreciation and amortization 97,423 Adjustment for noncontrolling interests (229 ) FFO attributable to common stockholders 57,677 FFO per share - diluted (1) $ 2.25 Casualty -related recoveries (1,677 ) Amortization of deferred financing costs 6,585 Mark -to -market adjustments of interest rate caps 23 Adjustment for noncontrolling interests (19 ) Core FFO attributable to common stockholders 62,589 Core FFO per share - diluted (1) $ 2.45 Equity -based compensation expense 10,722 Adjustment for noncontrolling interests (42 ) AFFO attributable to common stockholders 73,269 AFFO per share - diluted (1) $ 2.86 Weighted average common shares outstanding - dilute d 25,593 (1) For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 25.6 million for the full year 2026. NOI The following table, which has not been adjusted fo r the effects of noncontrolling interests, reconcil es NOI for the three months ended March 31, 2026 and the year ended December 31, 2025 to ne t loss, the most directly comparable GAAP financial measure (in thousands): For the Three Months Ended March 31, 2026 For the Year Ended December 31, 2025 Net loss $ (6,781 ) $ (32,154 ) Adjustments to reconcile net loss to NOI: Advisory and administrative fees 1,771 6,941 Corporate general and administrative expenses 4,473 17,945 Corporate income (590 ) (1,666 ) Casualty -related expenses (1) (1,753 ) 264 Casualty loss — 167 Property general and administrative expenses (2) 851 4,010 Depreciation and amortization 24,291 95,752 Interest expense 15,442 60,735 Equity in earnings of affiliate (68 ) (257 ) NOI $ 37,636 $ 151,737 (1) Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses. (2) Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.
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NEXPOINT RESIDENTIAL TRUST, INC. [NYSE:NXRT] NXRT.NEXPOINT.COM Page 9 The following table, reconciles FFO, Core FFO and AFFO for the three months ended March 31, 2026 and the year ended December 31, 2025 to net loss, the most directly comparable GAAP fina ncial measure (in thousands): For the Three Months Ended March 31, 2026 For the Year Ended December 31, 2025 Net loss $ (6,781 ) $ (32,154 ) Depreciation and amortization 24,291 95,752 Adjustment for noncontrolling interests (69 ) (251 ) FFO attributable to common stockholders 17,441 63,347 FFO per share - basic $ 0.69 $ 2.49 FFO per share - diluted $ 0.69 $ 2.48 Casualty -related expenses (recoveries) (1,753 ) 264 Casualty losses — 167 Amortization of deferred financing costs 1,683 6,585 Mark -to -market adjustments of interest rate caps (98 ) 961 Adjustment for noncontrolling interests 1 (31 ) Core FFO attributable to common stockholders 17,274 71,293 Core FFO per share - basic $ 0.68 $ 2.81 Core FFO per share - diluted $ 0.68 $ 2.79 Equity -based compensation expense 2,362 9,883 Adjustment for noncontrolling interests (9 ) (39 ) AFFO attributable to common stockholders 19,627 81,137 AFFO per share - basic $ 0.77 $ 3.20 AFFO per share - diluted $ 0.77 $ 3.18 Weighted average common shares outstanding - basic 25,398 25,390 Weighted average common shares outstanding - dilute d (1) 25,398 25,554 Dividends declared per common share $ 0.53 $ 2.06 Net income (loss) Coverage - diluted (2) -0.51x -0.61x FFO Coverage - diluted (2) 1.30x 1.20x Core FFO Coverage - diluted (2) 1.28x 1.35x AFFO Coverage - diluted (2) 1.46x 1.54x (1) The Company uses diluted weighted average common sh ares outstanding when in a dilutive position for FF O, Core FFO and AFFO. For periods in which potential common shares are anti-dilutive, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding. (1) Indicates coverage ratio of net loss/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.