NexPoint Posts $11.5 Million Third-Quarter Loss as Core FFO Falls
Key Facts
NexPoint Residential Trust reported on November 3, 2026, a net loss attributable to common shareholders of $11.5 million, or $0.45 per diluted share, for the third quarter ended September 30. The loss was about $7.8 million, or $0.31 per share, in the year-earlier period. Results came as Core FFO, a measure of performance, declined to $13.4 million, or $0.52 per diluted share. The measure was $17.7 million, or $0.70 per share, in last year's third quarter. The company said higher property operating and interest expenses were the main contributors to the wider quarterly loss.
Total revenue rose to $64.5 million in the third quarter, from $62.8 million in the same period of 2025. But the revenue increase did not fully offset higher expenses, as property operating costs rose $2.0 million year over year. Interest expense also increased $2.6 million over the same period. Revenue growth of $1.6 million partially offset those two factors, according to the earnings release. The company linked these items to the wider quarterly loss, while same-property data showed declines in revenue, rents and net operating income.
Same-property revenue fell 0.7% year over year in the third quarter, and average effective rent declined by the same percentage. Same-property net operating income also fell 8.2% compared with the third quarter of 2025. At the end of September, the portfolio's effective occupancy rate was 92.8%. The portfolio comprised 36 properties with 13,305 units, at an average monthly effective rent of $1,489 per unit. These figures put the decline in same-property income alongside the reported growth in total revenue for the period, as they measure different scopes of activity.
Total debt outstanding was $1.623 billion in the third quarter of 2026, compared with $1.503 billion in the third quarter of 2025. The leverage ratio based on total debt and market capitalization rose to 77%, from 65% a year earlier. This coincided with a $2.6 million year-over-year increase in quarterly interest expense. In the second quarter of 2026, the company reported a net loss of $8.6 million, or $0.34 per diluted share, compared with a loss of $7.0 million, or $0.28 per share, in the second quarter of 2025. Core FFO for the first half of 2026 was $34.2 million, versus $37.0 million in the year-earlier period.
The company's shares, which trade under the ticker NXRT, closed at $18.04 on November 2, according to EL7 daily data. The company approved a quarterly distribution of $0.53 per share, payable on December 31, 2026, to shareholders of record on December 15. The company was scheduled to discuss its third-quarter results on a call on November 3, 2026, at 11:00 a.m. Eastern time. In the second quarter, the company had attributed the larger loss mainly to a $2.1 million increase in property operating expenses and a $0.7 million increase in interest expense, partially offset by a $1.5 million increase in revenue. Same-property revenue had also declined 0.6%, average effective rent 0.9%, and net operating income 2.9% year over year.