NexPoint Real Estate Finance, Inc.

And ladies and gentlemen, please stand by. Good day and welcome to the NextPoint Residential Trust Q2 2022 conference call. Today's conference is being recorded. Now at this time, I would like to turn the conference over to Jackie Graham, Director of Investor Relations. Please go ahead, ma'am.

Thank you. Good day, everyone, and welcome to NextPoint Residential Trust conference call to review the company's results for the second quarter, June 30th, 2022. On the call today are Brian Mitz, Executive Vice President and Chief Financial Officer, and Matt McGrainer, Executive Vice President and Chief Investment Officer. As a reminder, this call is being webcast through the company's website at nxrt.nextpoint.com. Before we begin, I would like to remind everyone that this conference call 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. Listeners 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 the company's other filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statements. The statements made during this conference call speak only as of today's date and, except as required by law, NSRC does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAAP financial measures. For a more complete discussion of these non-GAAP financial measures, see the company's earnings release that was filed earlier today. I would now like to turn the call over to Brian Mintz. Please go ahead, Brian.

Thank you, Jackie, and welcome to everyone joining us this morning. I really appreciate your time. Just a quick heads up, I'm not in the room with the rest of the team. I'm dialed in, so hoping slash praying that we get a connection here. I apologize in advance if there's any disruptions to the backup contingency plan. But as Jackie mentioned, I'm Brian Mitz, and Matt McGrain, our CIO, is joining me today. I'll kick off the call and cover our Q2 and year-to-date results, update our NAV calculation, and then provide guidance. I'll then turn it over to Matt to discuss specifics on the leasing environment and metrics driving our performance and guidance and details on the portfolio. Results for Q2 are as follows. Net loss for the second quarter was $7.8 million. or a 30 cent loss per diluted share on total revenue of 65.8 million as compared to a net loss of 3.4 million or 14 cent loss per diluted share in the same period in 2021 on total revenue of 52.6 million, which is a 25% increase in revenue. For the second quarter, NOI was 38.8 million on 41 properties compared to 30.2 million for the second quarter of 2021 on 39 properties. a 29% increase in NOI. For the quarter, year-over-year rent growth on renewals averaged 16.9% across the portfolio, and year-over-year rent growth on new lease has averaged 21.1%. Given where rental rates are in our markets for Class B apartments and equivalent single-family rental product, we believe there is ample room for future outsized rent growth. For the quarter, same-store rent increased 19.2%, and same-store occupancy was down 150 basis points to 94.5%, as we focused more on rate than occupancy during the quarter. This, coupled with an increase in same-store expenses of 10.9%, led to an increase in same-store NOI of 16.4% as compared to Q2 of 2021. Rents for the second quarter of 2022 on the same-store portfolio were up 5.6% quarter-over-quarter. We reported Q2 core FFO of $20.3 million, or $0.79 per diluted share, compared to $0.56 per diluted share in the same quarter of 2021 for an increase of 40% on a per share basis. In the quarter, we completed 650 full and partial renovations, an increase of 22% from the prior quarter, and leased 609 renovated units, achieving an average monthly rent premium of $150.