PR Newswire | Feb 16, 2021 07:31AM EST

Results

02/16 06:30 CST

NexPoint Residential Trust, Inc. Reports Fourth Quarter And Full Year 2020 ResultsNXRT Recaps Acquisition/Disposition Activity, Value-Add Results and Issues 2021 Full Year Guidance DALLAS, Feb. 16, 2021

DALLAS, Feb. 16, 2021 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the fourth quarter and year ended December 31, 2020.

Highlights

* NXRT1 reported net income, FFO2, Core FFO2 and AFFO2 of $44.0M, $57.2M, $55.5M and $62.4M, respectively, attributable to common stockholders for the year ended December 31, 2020, compared to net income, FFO, Core FFO, and AFFO of $99.1M, $40.7M, $47.6M and $54.2M, respectively, attributable to common stockholders for the year ended December 31, 2019. * For the year ended December 31, 2020, 2019-2020 Same Store properties3 average effective rent, total revenue and NOI2 increased 1.4%, 3.6% and 3.2%, respectively, and occupancy decreased 10 bps over the prior year period. * During the three months ended December 31, 2020, NXRT acquired the Fairways at San Marcos, a 352-unit garden style apartment community in Chandler, Arizona, for a purchase price of approximately $84.5 million. * The weighted average effective monthly rent per unit across all 37 properties held as of December 31, 2020 (the "Portfolio"), consisting of 14,069 units4, was $1,128, while physical occupancy was 94.1%. * NXRT paid a fourth quarter dividend of $0.34125 per share of common stock on December 31, 2020; this cash dividend represented a $0.0288 per share, or 9.2% increase, over the prior quarter's dividend. * During 2020, for the properties in the Portfolio, NXRT completed 1,679 full and partial upgrades, achieving an average monthly rent premium of $131 and a 21.7% ROI5. * Since inception, NXRT has completed installation of 5,355 full & partial upgrades, 4,286 kitchen and laundry appliances and 8,880 technology packages, resulting in $126, $48 and $44 average monthly rental increase per unit and 21.5%, 74.2% and 33.8% ROI, respectively. * During the full year 2020, through its at-the-market offering ("ATM program"), NXRT issued approximately 1.3 million shares of common stock for approximately $59.5 million in gross proceeds.

In this release, "we," "us," "our," the "Company," "NexPoint Residential(1) Trust," and "NXRT" each refer to NexPoint Residential Trust, Inc., a Maryland corporation.

FFO, Core FFO, AFFO and NOI are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of FFO, Core(2) FFO, AFFO and NOI to net income (loss), see the "Definitions and Reconciliations of Non-GAAP Measures" and "FFO, Core FFO and AFFO" sections of this release.

We define "Same Store" properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 24 properties encompassing 9,074 units of apartment space in our Same Store pool for the(3) year ended December 31, 2020 (our "2019-2020" Same Store" properties). There are 32 properties encompassing 12,494 units of apartment space in our Q4 Same Store pool for the three months ended December 31, 2020 (our "Q4 Same Store" properties).

Total number of units owned as of December 31, 2020 is 14,205. Cutter's(4) Point suffered damage from a tornado on October 20, 2019 and 60 of the 196 units were rebuilt and returned to operation as of December 31, 2020.

(5) We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost.

Full Year 2020 Financial Results

* Total revenues were $204.8 million for the full year 2020, compared to $181.1 million for the full year 2019. * Net income for the full year 2020 totaled $44.0 million, or income of $1.74 per diluted share, which included a gain on sales of real estate of $69.2 million and $82.4 million of depreciation and amortization expense. This compared to net income of $99.1 million, or income of $4.03 per diluted share, which included a gain on sales of real estate of $127.7 million and $69.1 million of depreciation and amortization expense for the full year 2019. * The change in our net income of $44.2 million for the year ended December 31, 2020 as compared to our net income of $99.4 million for the year ended December 31, 2019 primarily relates to decreases in gains on sales of real estate and increases in depreciation and total property operating expenses, partially offset by an increase in total revenues. * For the full year 2020, NOI was $116.1 million on 37 properties, compared to $102.6 million for the full year 2019 on 40 properties. * For the full year 2020, Same Store NOI increased 3.2% to $68.2 million, compared to $66.1 million for the full year 2019. * For the full year 2020, FFO totaled $57.2 million, or $2.27 per diluted share, compared to $40.7 million, or $1.66 per diluted share, for the full year 2019. For the full year 2020, Core FFO totaled $55.5 million, or $2.20 per diluted share, compared to $47.6 million, or $1.93 per diluted share, for the full year 2019. For the full year 2020, AFFO totaled $62.4 million, or $2.47 per diluted share, compared to $54.2 million, or $2.20 per diluted share, for the full year 2019.

Fourth Quarter 2020 Financial Results

* Total revenues were $50.5 million for the fourth quarter of 2020, compared to $49.7 million for the fourth quarter of 2019. * Net loss for the fourth quarter of 2020 totaled $(4.2) million, or a loss of $(0.17) per diluted share, which included $19.9 million of depreciation and amortization expense and $11.0 million of interest expense. This compared to net loss of $(13.3) million, or a loss of $(0.53) per diluted share, for the fourth quarter of 2019, which included $23.4 million of depreciation and amortization expense and $10.7 million of interest expense. * The change in our net loss between the periods primarily relates to an increase in total revenues, partially offset by increases in interest expense and depreciation and amortization expense. * For the fourth quarter of 2020, NOI was $28.0 million on 37 properties, compared to $28.3 million for the fourth quarter of 2019 on 40 properties. * For the fourth quarter of 2020, Q4 Same Store NOI decreased 1.8% to $24.6 million, compared to $25.1 million for the fourth quarter of 2019, which was impacted by a 21.0% increase in real estate tax accruals. * For the fourth quarter of 2020, FFO totaled $15.7 million, or $0.62 per diluted share, compared to $10.1 million, or $0.39 per diluted share, for the fourth quarter of 2019. For the fourth quarter of 2020, Core FFO totaled $14.2 million, or $0.56 per diluted share, compared to $13.8 million, or $0.54 per diluted share, for the fourth quarter of 2019. For the fourth quarter of 2020, AFFO totaled $15.9 million, or $0.63 per diluted share, compared to $15.0 million, or $0.59 per diluted share, for the fourth quarter of 2019.

Fourth QuarterEarnings Conference Call

NXRT will host a call on Tuesday, February 16, 2021 at 11:00 a.m. ET to discuss its fourth quarter and full year financial results. The conference call can be accessed live over the phone by dialing 800-437-2398 or, for international callers, +1 323-289-6576 and using passcode Conference ID: 7677037. A live audio webcast of the call will be available online at the Company's website, nxrt.nexpoint.com (under "Investor Relations"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.

A replay of the conference call will also be available through Tuesday, February 23, 2021 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 7677037.

About NXRT

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience. Our filings with the Securities and Exchange Commission (the "SEC") are available on our website, nxrt.nexpoint.com, under the "Investor Relations" tab.

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "expect," "anticipate," "estimate," "may," "should," "intend" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding NXRT's business and industry in general, the COVID-19 pandemic and its effects on our business, net asset value and the related components and assumptions, NXRT's guidance for financial results for the full year 2021 and the related assumptions, including the effects of tornado damage at Cutter's Point, expected acquisitions and dispositions, shares outstanding and real estate taxes, net asset value and the related components and assumptions, including estimated value-add expenditures, debt payments, outstanding debt and shares outstanding, guidance for the first quarter 2021 and the related assumptions, planned value-add programs, including projected average rent, rent change and return on investment, expected return to service of units at Cutter's Point damaged by the tornado and expected acquisitions and dispositions. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including the ultimate geographic spread, duration and severity of the COVID-19 pandemic, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, as well as those described in greater detail in our filings with the Securities and Exchange Commission, particularly those specifically described in our Annual Report on Form 10-K. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's most recent Annual Report on Form 10-K and other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements.

FFO, Core FFO and AFFO

The following table reconciles our calculations of FFO, Core FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the years ended December 31, 2020, 2019 and 2018 and for the three months ended December 31, 2020 and 2019 (in thousands, except per share amounts):

For the Three Months For the Year Ended December 31, Ended December 31,

2020 2019 2018 2020 2019

Net income $ 44,150 $ 99,438 $ (1,614) $ (4,212) $ (13,306)(loss)

Depreciation and 82,411 69,086 47,470 19,932 23,394amortization

Gain on sales of (69,151) (127,684) (13,742) - 16real estate

Adjustment fornoncontrolling (172) (122) (96) (47) (30)interests

FFO attributableto common 57,238 40,718 32,018 15,673 10,074stockholders

FFO per share - $ 2.32 $ 1.69 $ 1.51 $ 0.63 $ 0.40basic

FFO per share - $ 2.27 $ 1.66 $ 1.48 $ 0.62 $ 0.39diluted

Loss onextinguishmentof debt and 1,470 2,869 3,576 - -modificationcosts

Casualty-relatedexpenses/ 790 (34) (663) 64 (60)(recoveries)

Casualty losses (5,886) 3,488 - (1,954) 3,488(gains)

Pandemic expense (1) 510 - - 35 -

Amortization ofdeferredfinancing costs 1,384 553 159 345 269- acquisitionterm notes

Adjustment fornoncontrolling 6 (21) (9) 5 (11)interests

Core FFOattributable to 55,512 47,573 35,081 14,168 13,760commonstockholders

Core FFO per $ 2.25 $ 1.97 $ 1.66 $ 0.57 $ 0.55share - basic

Core FFO per $ 2.20 $ 1.93 $ 1.62 $ 0.56 $ 0.54share - diluted

Amortization ofdeferred 1,453 1,530 1,491 351 87financing costs- long term debt

Equity-basedcompensation 5,504 5,130 4,198 1,434 1,186expense

Adjustment fornoncontrolling (21) (20) (17) (5) (4)interests

AFFOattributable to 62,448 54,213 40,753 15,948 15,029commonstockholders

AFFO per share - $ 2.53 $ 2.25 $ 1.92 $ 0.64 $ 0.60basic

AFFO per share - $ 2.47 $ 2.20 $ 1.88 $ 0.63 $ 0.59diluted

Weighted averagecommon shares 24,715 24,116 21,189 24,797 25,073outstanding -basic

Weighted averagecommon shares 25,234 24,593 21,667 25,350 25,520outstanding -diluted

Dividendsdeclared per $ 1.279 $ 1.138 $ 1.025 $ 0.341 $ 0.313common share

FFO Coverage - (2) 1.77x 1.46x 1.44x 1.81x 1.26xdiluted

Core FFOCoverage - (2) 1.72x 1.70x 1.58x 1.64x 1.73xdiluted

AFFO Coverage - (2) 1.94x 1.94x 1.84x 1.84x 1.88xdiluted

Represents additional cleaning, disinfecting, PPE and other costs incurred(1) at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

(2) Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

Definitions and Reconciliations of Non-GAAP Measures

Definitions

This presentation contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are net operating income ("NOI"), funds from operations attributable to common stockholders ("FFO"), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO ("AFFO"), AFFO per diluted share and net debt.

NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (6) casualty-related expenses/(recoveries) and casualty gains (losses), (7) miscellaneous income derived from recognition of lost rents covered by insurance, (8) pandemic expenses that are not reflective of continuing operations of the properties and (9) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional and franchise tax fees. We define "Same Store NOI" as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.

FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT"), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. We compute FFO in accordance with NAREIT's definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.

Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as losses on extinguishment of debt and modification costs (includes prepayment penalties and defeasance costs incurred and the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt and costs incurred in connection with a debt modification that are expensed), casualty-related expenses/recoveries, casualty gains or losses, pandemic expenses, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing and the noncontrolling interests related to these items.

AFFO makes certain adjustments to Core FFO. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, and the noncontrolling interests related to these items.

Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding.

We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts ("REITs") among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.

Reconciliations

NOI and 2019-2020 Same Store NOI for the Years Ended December 31, 2020 and 2019

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our 2019-2020 Same Store NOI for the years ended December 31, 2020 and 2019 to net income, the most directly comparable GAAP financial measure (in thousands):

For the Year Ended December 31,

2020 2019

Net income $ 44,150 $ 99,438

Adjustments to reconcile net income to NOI:

Advisory and administrative fees 7,670 7,500

Corporate general and administrative expenses 10,035 9,613

Casualty-related expenses/(recoveries) (1) 790 (34)

Casualty losses (gains) (5,886) 3,488

Miscellaneous income (1,772) (587)

Pandemic expense (2) 510 -

Property general and administrative expenses (3) 1,112 1,517

Depreciation and amortization 82,411 69,086

Interest expense 44,753 37,385

Loss on extinguishment of debt and 1,470 2,869modification costs

Gain on sales of real estate (69,151) (127,684)

NOI $ 116,092 $ 102,591

Less Non-Same Store

Revenues (82,585) (63,147)

Operating expenses 34,643 26,610

Same Store NOI $ 68,150 $ 66,054

(1) Adjustment to net income to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

Represents additional cleaning, disinfecting, PPE and other costs incurred(2) at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

Adjustment to net income to exclude certain property general and(3) administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.

NOI and2018-2020Same Store NOI for theYears Ended December 31, 2020, 2019 and 2018

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our 2018-2020 Same Store NOI for the years ended December 31, 2020, 2019 and 2018 to net income (loss), the most directly comparable GAAP financial measure (in thousands):

For the Year Ended December 31,

2020 2019 2018

Net income (loss) $ 44,150 $ 99,438 $ (1,614)

Adjustments to reconcile net income toNOI:

Advisory and administrative fees 7,670 7,500 7,474

Corporate general and administrative 10,035 9,613 7,808expenses

Casualty-related expenses/(recoveries) (1) 790 (34) (663)

Casualty losses (gains) (5,886) 3,488 -

Miscellaneous income (1,772) (587) -

Pandemic expense (2) 510 - -

Property general and administrative (3) 1,112 1,517 1,294expenses

Depreciation and amortization 82,411 69,086 47,470

Interest expense 44,753 37,385 28,572

Loss on extinguishment of debt and 1,470 2,869 3,576modification costs

Gain on sales of real estate (69,151) (127,684) (13,742)

NOI $ 116,092 $ 102,591 $ 80,175

Less Non-Same Store

Revenues (96,358) (76,367) (46,008)

Operating expenses 40,364 31,896 20,236

Same Store NOI $ 60,098 $ 58,120 $ 54,403

(1) Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

Represents additional cleaning, disinfecting, PPE and other costs incurred(2) at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

Adjustment to net income (loss) to exclude certain property general and(3) administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.

NOI and Q4 Same Store NOI for the Three Months EndedDecember 31, 2020 and 2019

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our Q4 Same Store NOI for the three months ended December 31, 2020 and 2019 to net loss, the most directly comparable GAAP financial measure (in thousands):

For the Three Months Ended December 31,

2020 2019

Net loss $ (4,212) $ (13,306)

Adjustments to reconcile net loss to NOI:

Advisory and administrative fees 1,893 1,887

Corporate general and administrative 1,595 2,300expenses

Casualty-related expenses/(recoveries) (1) 64 (60)

Casualty losses (gains) (1,954) 3,488

Miscellaneous income (371) (587)

Pandemic expense (2) 35 -

Property general and administrative (3) 15 448expenses

Depreciation and amortization 19,932 23,394

Interest expense 11,049 10,747

Loss on extinguishment of debt and - -modification costs

Gain on sales of real estate - 16

NOI $ 28,046 $ 28,327

Less Non-Same Store

Revenues (4) (5,408) (5,695)

Operating expenses (4) 1,989 2,446

Same Store NOI (4) $ 24,627 $ 25,078

(1) Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

Represents additional cleaning, disinfecting, PPE and other costs incurred(2) at the properties related to COVID-19 that are not reflective of the continuing operations of the properties.

Adjustment to net loss to exclude certain property general and(3) administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.

(4) Amounts for the three months ended December 31, 2020 and 2019 are derived from the operations of our Q4 Same Store and Non-Same Store properties.

Reconciliation of Debt to Net Debt

(dollar amounts in thousands) FY 2020 FY 2019 FY 2018

Total mortgage debt $ 1,168,078 $ 1,193,528 $ 845,713

Credit facilities 183,000 218,000 -

Total Debt 1,351,078 1,411,528 845,713

Adjustments to arrive at net debt:

Cash and cash equivalents (24,457) (25,671) (19,864)

Restricted cash held for value-add (10,614) (21,903) (5,209)upgrades and green improvements

Net Debt $ 1,316,007 $ 1,363,954 $ 820,640

Enterprise Value (1) $ 2,374,007 $ 2,499,954 $ 1,644,640

Leverage Ratio 55 % 55 % 50 %

(1) Enterprise Value is calculated as Market Capitalization as of December 31, 2020 plus Net Debt.

Guidance Reconciliations of NOI, Same Store NOI, NOI, FFO, Core FFO and AFFO

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our 2021 NOI guidance to our net loss (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2021 and for the three months ended March 31, 2021 (in thousands):

For the Year Ended For the Three Months Ended March 31, 2021 December 31, 2021

Mid-Point (1) Mid-Point (1)

Net loss $ (22,633) $ (8,726)

Adjustments to reconcilenet loss to NOI:

Advisory and 7,570 1,867administrative fees

Corporate general and 12,479 3,009administrative expenses

Property general and (2) 10 10administrative expenses

Depreciation and 81,127 22,533amortization

Interest expense 42,063 10,440

Casualty-related (1,016) (408)recoveries

Loss on extinguishment ofdebt and modification - -costs

Gain on sales of real - -estate

NOI $ 119,600 $ 28,725

Less Non-Same Store

Revenues (3) (5,501)

Operating expenses (3) 1,793

Same Store NOI (3) $ 115,892

Mid-Point estimates shown for full year and first quarter 2021 guidance. Assumptions made for full year and first quarter 2021 NOI guidance include(1) the Same Store operating growth projections included in the "2021 Full Year Guidance Summary" section of this release and the effect of the acquisition and dispositions throughout the fiscal year.

Adjustment to net income to exclude certain property general and(2) administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.

Amounts are derived from the results of operations of our pro forma Full(3) Year 2021 Same Store properties and Non-Same Store properties. There are 35 properties in our pro forma Full Year 2021 Same Store pool.

The following table reconciles our FFO, Core FFO and AFFO guidance to our net loss (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2021 (in thousands, except per share data):

For the Year Ended December 31, 2021

Mid-Point

Net loss $ (22,633)

Depreciation and amortization 81,127

Gain on sales of real estate -

Adjustment for noncontrolling interests (165)

FFO attributable to common stockholders 58,329

FFO per share - diluted (1) $ 2.27

Loss on extinguishment of debt and modification -costs

Casualty-related recoveries (1,016)

Amortization of deferred financing costs - 625acquisition term notes

Adjustment for noncontrolling interests -

Core FFO attributable to common stockholders 57,938

Core FFO per share - diluted (1) $ 2.25

Amortization of deferred financing costs - long 1,432term debt

Equity-based compensation expense 6,687

Adjustment for noncontrolling interests (26)

AFFO attributable to common stockholders 66,031

AFFO per share - diluted (1) $ 2.57

Weighted average common shares outstanding - 25,705diluted

(1) For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 25.7 million for the full year 2021.

The following table reconciles our NOI to our net income (loss) for the years ended December 31, 2017, 2016 and 2015 (in thousands):

For the Year Ended December 31,

2017 2016 2015

Net income (loss) $ 56,359 $ 25,888 $ (10,992)

Adjustments to reconcile net income (loss)to NOI:

Advisory and administrative fees 7,419 6,802 5,565

Corporate general and administrative 6,275 4,014 2,455expenses

Casualty-related expenses/(recoveries) (287) 151 25

Property general and administrative 1,130 879 1,109expenses

Depreciation and amortization 48,752 35,643 40,801

Interest expense 29,576 20,167 17,817

Loss on extinguishment of debt and 5,719 1,722 652modification costs

Gain on sales of real estate (78,365) (25,932) -

Acquisition costs - 386 2,975

NOI $ 76,578 $ 69,720 $ 60,407

The following table reconciles our FFO, Core FFO and AFFO to our net income (loss) for the years ended December 31, 2017, 2016 and 2015 (in thousands):

For the Year Ended December 31,

2017 2016 2015

Net income (loss) $ 56,359 $ 25,888 $ (10,992)

Depreciation and amortization 48,752 35,643 40,801

Gain on sales of real estate (78,365) (25,932) -

Adjustment for noncontrolling interests (1,695) (4,583) (4,170)

FFO attributable to common stockholders 25,051 31,016 25,639

FFO per share - basic $ 1.19 $ 1.46 $ 1.20

FFO per share - diluted $ 1.17 $ 1.46 $ 1.20

Acquisition costs - 386 2,975

Loss on extinguishment of debt and 5,719 1,722 652modification costs

Change in fair value on derivative (309) (1,683) -instruments - ineffective portion

Amortization of deferred financing costs - 403 - -acquisition term notes

Adjustment for noncontrolling interests (429) (94) (322)

Core FFO attributable to common 30,435 31,347 28,944stockholders

Core FFO per share - basic $ 1.45 $ 1.48 $ 1.36

Core FFO per share - diluted $ 1.42 $ 1.47 $ 1.36

Amortization of deferred financing costs - 1,592 1,423 1,081long term debt

Equity-based compensation expense 3,108 825 -

Adjustment for noncontrolling interests (76) (140) (92)

AFFO attributable to common stockholders 35,059 33,455 29,933

AFFO per share - basic $ 1.66 $ 1.58 $ 1.41

AFFO per share - diluted $ 1.64 $ 1.57 $ 1.41

Weighted average common shares outstanding 21,057 21,232 21,294- basic

Weighted average common shares outstanding 21,399 21,314 21,294- diluted

Contact: Investor Relations Jackie GrahamJGraham@nexpoint.com972-419-6213 Media inquiries: JGraham@nexpoint.com

View original content to download multimedia: http://www.prnewswire.com/news-releases/nexpoint-residential-trust-inc-reports-fourth-quarter-and-full-year-2020-results-301228773.html

SOURCE NexPoint Residential Trust, Inc.