DALLAS - NexPoint Residential Trust, Inc. (NYSE:NXRT) surpassed analyst revenue expectations for the fourth quarter, reporting a total of $68.9 million against the consensus estimate of $68.41 million.
The company's financial results for the quarter and year ended December 31, 2023, reflect a steady performance with net income for the full year totaling $44.3 million, or $1.69 per diluted share, which includes significant gains on sales of real estate.
Comparing the fourth quarter revenue to the same period last year, the company saw a slight decrease from $69.3 million to $68.9 million, a marginal drop that did not deter the positive market response. The company's net income for the fourth quarter was $18.4 million, or $0.70 per diluted share, a substantial increase from the $3.8 million, or $0.15 per diluted share, reported in the fourth quarter of 2022. This increase is primarily attributed to higher gains on sales of real estate, somewhat offset by an increase in interest expense.
The company's Same Store properties experienced a modest average effective rent increase of 0.1%, with total revenue and net operating income (NOI) rising by 7.1% and 8.2%, respectively. Occupancy rates also showed improvement, increasing by 60 basis points over the previous year.
In a statement, NXRT's management highlighted the strategic dispositions completed during the year, which contributed to the company's strong financial position. The sales of Silverbrook and Timber Creek properties were completed for a combined sales price of $119.0 million, and the company paid down $50.5 million of principal on its corporate credit facility.
Looking ahead, NexPoint Residential Trust issued its full year 2024 guidance, projecting continued growth and financial stability. However, specific guidance figures and comparisons to analyst consensus estimates for future periods were not provided in the information available.
The company's stock is flat in premarket trading. NXRT's commitment to delivering value through strategic property upgrades and dispositions, along with consistent dividend growth, remains a cornerstone of their operational strategy, as evidenced by a 10.1% increase in the fourth quarter dividend compared to the previous quarter.
InvestingPro Insights
NexPoint Residential Trust, Inc. (NYSE:NXRT) has recently made headlines with its fourth-quarter revenue surpassing analyst expectations. Delving deeper into the company's financial health and market position, InvestingPro data provides additional context to NXRT's performance and potential. With a market capitalization of $801.15 million, NXRT is operating with a P/E ratio of 26.89, which indicates investors are willing to pay a premium for its earnings. This is reinforced by the company's ability to raise its dividend for 9 consecutive years, a sign of confidence in its financial stability and future prospects.
InvestingPro Tips highlight NXRT's high shareholder yield and consistent dividend growth as attractive features. The company's dividend yield stands at a robust 5.95%, which is a compelling figure for income-focused investors. Additionally, the company's liquid assets surpass short-term obligations, providing a cushion for operational flexibility. However, analysts are cautious, noting a high P/E ratio relative to near-term earnings growth, and they do not anticipate the company to be profitable this year. Despite this, NXRT has been profitable over the last twelve months, which may reassure investors looking at longer-term performance.
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