NexPoint Residential Trust, Inc

Valuation Analysis

About the Company

NexPoint Residential Trust, Inc. is a publicly traded real estate investment trust. With its common stock listed on the New York Stock Exchange and 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. NexPoint Residential Trust, Inc. was established on September 19, 2014 and is based in Dallas, United States.

NexPoint Residential Trust, Inc Stock at a Glance

NexPoint Residential Trust, Inc (NXRT) is currently trading at $27.28 with a market capitalization of $1.4B. The 52-week range spans from $23.79 to $35.08; the current price is 22.2% below the yearly high. Year-over-year revenue growth stands at +0.5%.

💰 Dividend

NexPoint Residential Trust, Inc pays an annual dividend of $2.12 per share, representing a yield of 7.77%. The payout ratio stands at 4743.15%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

5 analysts rate NexPoint Residential Trust, Inc (NXRT) on consensus: None. The average price target is $30.40, implying +11.44% from the current price. Analyst price targets range from $27.00 to $35.00.

NexPoint Residential Trust, Inc: The Investment Case in Detail

NexPoint Residential Trust, Inc (NXRT) operates in the Real Estate — specifically REIT - Residential — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 60.19%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

Revenue growth has slowed to just 0.5%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders. The debt-to-equity ratio of 564.92% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

At a PEG of 26.92, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (5.21%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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