NexPoint Residential Trust, Inc.

NexPoint Residential Trust, Inc. (NYSE: NXRT) is a real estate investment trust focused on acquiring and operating multifamily apartment communities, primarily in the Southeastern and Southwestern United States. The company conducts substantially all of its business through NexPoint Residential Trust Operating Partnership, L.P., with properties held through the operating partnership and a wholly owned taxable REIT subsidiary.

As of December 31, 2025, NexPoint owns 36 properties representing 13,305 apartment units across seven states, with an occupancy rate of approximately 92.7 percent and a weighted average monthly effective rent of $1,492 per unit. The company operates as a single reportable segment focused on multifamily real estate investments.

NexPoint's business strategy centers on a value-add investment approach, targeting Class B multifamily properties acquired at discounts to replacement cost. The company implements a three-component value-add program consisting of exterior and common area improvements, interior unit renovations, and management and cost improvements. Since inception, the company has completed full and partial renovations on 9,866 units with an average monthly rental increase of $158 per unit and an average cost of $9,115 per renovated unit.

The company is externally managed by NexPoint Real Estate Advisors, L.P., an affiliate of its sponsor, pursuant to an advisory agreement that provides for an annual advisory fee of 1.00 percent of Average Real Estate Assets and an administrative fee of 0.20 percent of Average Real Estate Assets. All properties are managed by BH Management Services, LLC, which operates approximately 92,000 multifamily units across 23 states and provides property management services for approximately 3 percent of gross income.

NexPoint finances its acquisitions using a target leverage strategy of approximately 50 to 60 percent loan-to-value at acquisition, with plans to reduce leverage to 40 to 45 percent loan-to-value over time through property value appreciation and refinancing. The company typically uses floating rate debt with interest rate swaps and caps rather than fixed rate financing to maintain flexibility during its value-add investment period.