NexPoint Residential Trust, Inc. (NYSE:NXRT) to Issue $0.53 Quarterly Dividend

Key Points

• NexPoint Residential Trust declared a quarterly dividend of $0.53 per share, payable September 30 to shareholders of record on September 15. The annualized dividend implies a 7.9% yield.
• The dividend appears financially strained: the company has a payout ratio of -182.8%, while analysts expect next year’s earnings of $1.85 per share versus an annual dividend of $2.12.
• NXRT shares recently traded at $26.84, near the lower half of their 52-week range, while institutional investors own 76.61% of the stock. The company reported quarterly revenue of $63.54 million and an adjusted loss of $0.27 per share.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) announced a quarterly dividend on Monday, July 27th. Investors of record on Tuesday, September 15th will be paid a dividend of 0.53 per share by the financial services provider on Wednesday, September 30th. This represents a c) annualized dividend and a yield of 7.9%. The ex-dividend date is Tuesday, September 15th.

NexPoint Residential Trust has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 3 consecutive years. NexPoint Residential Trust has a dividend payout ratio of -182.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect NexPoint Residential Trust to earn $1.85 per share next year, which means the company may not be able to cover its $2.12 annual dividend with an expected future payout ratio of 114.6%.

NexPoint Residential Trust Price Performance

NXRT stock traded down $0.07 during trading on Wednesday, hitting $26.84. 2,773 shares of the company's stock traded hands, compared to its average volume of 217,952. NexPoint Residential Trust has a 52 week low of $23.79 and a 52 week high of $34.87. The company has a debt-to-equity ratio of 5.75, a quick ratio of 2.40 and a current ratio of 2.40. The business has a fifty day simple moving average of $27.95 and a 200 day simple moving average of $28.06. The stock has a market capitalization of $684.05 million, a price-to-earnings ratio of -21.20 and a beta of 1.18.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last announced its earnings results on Tuesday, April 28th. The financial services provider reported ($0.27) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.37) by $0.10. NexPoint Residential Trust had a negative net margin of 12.67% and a negative return on equity of 10.30%. The firm had revenue of $63.54 million for the quarter, compared to analysts' expectations of $63.20 million. As a group, research analysts expect that NexPoint Residential Trust will post 2.36 EPS for the current fiscal year.

Hedge Funds Weigh In On NexPoint Residential Trust

A number of institutional investors have recently modified their holdings of NXRT. Tudor Investment Corp ET AL increased its position in NexPoint Residential Trust by 63.0% during the 3rd quarter. Tudor Investment Corp ET AL now owns 129,137 shares of the financial services provider's stock valued at $4,161,000 after purchasing an additional 49,902 shares during the period. UBS Group AG lifted its position in shares of NexPoint Residential Trust by 44.7% in the 4th quarter. UBS Group AG now owns 115,555 shares of the financial services provider's stock worth $3,478,000 after purchasing an additional 35,683 shares during the period. Vanguard Group Inc. lifted its position in shares of NexPoint Residential Trust by 3.0% in the 4th quarter. Vanguard Group Inc. now owns 2,436,034 shares of the financial services provider's stock worth $73,325,000 after purchasing an additional 70,310 shares during the period. Marnell Management LLC bought a new position in shares of NexPoint Residential Trust during the fourth quarter valued at approximately $5,220,000. Finally, Strs Ohio increased its holdings in NexPoint Residential Trust by 24.1% during the fourth quarter. Strs Ohio now owns 146,900 shares of the financial services provider's stock valued at $4,422,000 after buying an additional 28,500 shares during the period. 76.61% of the stock is owned by hedge funds and other institutional investors.

About NexPoint Residential Trust

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single‐family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi‐family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single‐family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.

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