NexPoint Residential Trust, Inc.

and welcome to the NextPoint Residential Trust, Inc. fourth quarter conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jackie Graham. Please go ahead.

Thank you. Good day, everyone, and welcome to NextPoint Residential Trust's conference call to review the company's results for the fourth quarter ended December 31, 2020. On the call today are Brian Mitts, Executive Vice President and Chief Financial Officer, and Matt McGraner, 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 is in belief. 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 Companies, NXRT's Strategy and Guidance for the Full Year 2021, and the Related Assumptions Guidance for the First Quarter of 2021 and Related Assumptions. NXRT's Net Value Adds and its Related Components Assumptions and Planned Value Add Programs, including Projected Average Rent, Rent Change, and Return on Investment. The expected return to service of damaged units and expected acquisitions and dispositions. They are not guaranteed the future results and forward-looking statements 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 of the Securities and Exchange Commission, particularly those specifically described in the company's annual report on Form 10-K and quarterly reports on Form 10-Q. 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 titles of 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 accept as required by law, and SRT does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call includes analysis of funds from operations, or SFO, core funds from operations, or core SFO, adjusted funds from operations, or ASFO, net operating income, or NOI, and net debt, all of which are non-GAAP financial measures of performance or total debt. These non-GAAP measures should be used as a supplement to and not a substitute for net income loss and total debt computed in accordance with GAAP. For a more complete discussion of FFO, Core FFO, AFFO, NOI, and NetDeck, see the company's earnings release that was filed earlier today. I would now like to turn the call over to Brian Mitt. Please go ahead, Brian.

Thank you, Jackie. Welcome to everyone for joining us on the NHRT 2020 Fourth Quarter Conference Call. I'm Brian Mitt and joined here with Matt McGraner. Let me start with some highlights from 2020. That income for the year was $44 million or $1.74 per diluted share as compared to $99.1 million or $4.03 per diluted share in 2019. Same-store NOI increase was $2.1 million or an increase of 3.2% as compared to 2019. We reported 2020 core FFO of $55.5 million or $2.20 per diluted share which is an increase of 14% on a per share basis as compared to 2019. Total revenue for 2020 was $204.8 million and total NOI was $116.1 million which was an increase over 2019 of 13.1% and 13.2% respectively. NOI margins for 2020 were 56.7% which was equal to margins of 56.7% during the same period in 2019. We continue to execute our value-add business plan by completing 1,679 full and partial renovations during the year, achieving an average monthly rent premium of $131 and a 21.7% ROI. Exceptions to date, the portfolio as of 12-31, we've completed 5,355 full and partial upgrades 4,286 kitchen upgrades and washer-dryer installs, and 8,880 technology package installs, achieving an average monthly written premium of $126, $48, and $44 respectively, and an ROI of 21.5%, 74.2%, and 33.8% respectively. During 2020, we issued 1.3 million shares of stock for approximately 59.5 million gross proceeds. Based on updates and cap rates in NOI, we're revising our NAV per share range upward as follows. On the low end, $42.83. On the high end, $52.94. The midpoint of $47.88. These are based on cap rates ranging from 4.4% on the low end and 5% on the high side. The updated NAV compares the midpoint of $46.31 The fourth quarter, we paid a dividend of 34.125 cents per share on December 31st to shareholders of record as of December 15th. Yesterday, the Board declared a dividend per share of 34.125 cents payable on March 31st to shareholders of record on March 15th. Since inception, we've increased our dividend 66% The year to date, our dividend was 1.72 times covered by core FFO with a payout ratio of 58% of core FFO for the year. Overall, although 2020 provided some early challenges, we continued our track record of thoughtful capital allocation and earnings growth. As the pandemic first hit and stocks in general and NSRT specifically dropped from multi-year lows, we aggressively bought back stock by 1.6 million shares of common stock at an average price of $27.07 per share. The stocks recovered, including NXRT. We issued 718,000 shares of common stock at an average price of $43.92 per share, creating significant permanent value for shareholders. Inception to date, we've issued 2.8 million shares of common stock at an average price of $47.14 per share. We've repurchased 2.4 million shares of common stock and an average repurchase price of $25.70 per share. Despite fully drawing our facility at the beginning of the pandemic to ensure maximum liquidity, we were able to continue our long-term deleveraging plan by paying our facility down to $183 million by the end of the year. As of 12-31, we had $57.1 million cash on the balance sheet and $42 million in capacity under our facility for approximately $100 million of successful liquidity and our dividend is 1.72 times covered by core FFO. Since going public in April 2015, we've grown core FFO 62% and NOI by 92%. This performance combined with the thoughtful, powerful allocation of dividend policies is translating NXRT being one of the best performing REIT stocks among all REITs regardless of property type since we went public in April 2015. Let me go through some of the specific results for full year 2020. Total revenues were $204.8 million, which compared to $181.1 million in 2019, or a 13.1% increase. Net operating income for 2020 is $116.1 million, which compared to $102.6 million for 2019, or a 13.2% increase. Core FFO listed at $5.5 million, or $2.20 per deleted share, as compared to $47.6 million, or $1.93 per deleted share in 2019, which represents an increase of 14% on a per share basis. Despite the challenges presented by the pandemic, our Core FFO came in at the midpoint of our original 2020 guidance. For our same store pool, we had 24 properties, assisting in 9,074 units. Our same-store rent increase is 1.4%. Same-store occupancy declined slightly by 10 basis points from 94.3% to 94.2%. And same-store NOI increased 3.2% for the year from 66.1 million to 68.2 million. As the pandemic began, we, as did all of our peers, withdrew guidance starting the second quarter of 2020. We are on this fall reinstating guidance for the full year 2021 as follows. Core FFO on a per annum share basis, $2.16 in the low end, $2.35 on the high end, with a midpoint of $2.25, which represents an increase of 2.3% over 2020. Same sort of revenue, 3.9% increase in the low end, 5.2% increase in the high end, the midpoint of 4.5% increase. Same-store expenses, the estimate will increase 7.9%. On the low end, 5.3% on the high end, 6.6% in the midpoint. And for same-store NOI, we have a 0.9% increase in the low end, 5.1% increase in the high end, a 3% increase at the midpoint. So with that, let me turn it over to Matt for his comments.