NexPoint Residential Trust, Inc.

Q2 2026 core FFO was $16.9 million, or $0.66 per diluted share, compared with $18.0 million, or $0.71 per share, in Q2 2025. FFO was $15.2 million, or $0.60 per share; AFFO was $19.7 million, or $0.77 per share; total NOI was $37.9 million; and net loss was $8.6 million, or $0.34 per share, versus a net loss of $7.0 million, or $0.28 per share, a year ago. Total revenue was $64.6 million, up from $63.1 million last year. Same-store revenue was $62.4 million, down 0.6%, and same-store NOI was $36.9 million, down 2.9%. Same-store occupancy was 93.6%, up 30 basis points year over year, and average effective rent was $1,487, down 80 basis points. For full-year 2026, management lowered core FFO guidance to $2.35-$2.54 per diluted share, with a midpoint of $2.45, and lowered same-store NOI guidance to negative 2.5% to 0.5%, midpoint negative 1%.

Paul Richards framed the quarter as a case of first-half performance coming in ahead of plan, but with the back half pressured mainly by interest expense and a few softer revenue markets. He emphasized that the guidance reset is a more conservative level management believes it can deliver, rather than relying on offsets, and highlighted improving same-store expense trends and a meaningful discount between the stock price and estimated NAV. His tone was measured and explanatory, with a focus on visibility, discipline, and capital recycling.

Paul Richards said the biggest driver of the guidance cut was higher projected interest expense as forward SOFR moved up, reducing projected swap inflows by about $14.6 million and adding roughly $0.16 per share of interest expense. Full-year interest expense is now projected at about $71.2 million, up from roughly $69 million last quarter and $67 million in the original model, while same-store expense growth guidance was reduced to about 2.1% from 3.5% originally. He also noted $14.6 million in unrestricted cash, $118.9 million of undrawn credit capacity, and approximately $133.5 million of total liquidity, with no scheduled debt maturities until 2028 except a small $33 million fixed-rate loan.

Analysts focused on what management meant by a “clean inflection” in the operating environment, and Matt McGraner clarified that he was referring to positive new lease rates. He said the revised guidance implies new leases will be slightly negative in the third quarter and slightly positive in the fourth quarter, which he sees as the clearest point of improvement. On occupancy, management said there was some giveback as they pushed pricing, with Bonner McDermett saying the quarter-end physical occupancy of 93.6% was down about 40 basis points from earlier in June, but that they are prioritizing rate improvement and are comfortable with mid-93% occupancy for now.