NexPoint Residential Trust, Inc.

Ladies and gentlemen, please stand by. Good day and welcome to the NextPoint Residential Trust Q1 2022 conference call. This conference is being recorded and now at this time I would like to turn the conference over to Jackie Graham. 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 first quarter ended March 31, 2022. On the call today are Brian Mitts, Executive Vice President and Chief Financial Officer, and Matt McGranner, Executive Vice President and Chief Investment Officer. As a reminder, this call is being broadcast through the company's website at nsrt.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 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. NXRP 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, please see the company's earnings rates that was filed earlier today. I would now like to turn the call over to Brian Mitz. Please go ahead, Brian.

Thank you, Jackie. I appreciate everyone's time this morning. I'm Brian Mitz, and I'm here with Matt McGrainer. I'm going to start the call by going through our Q1 results, talking about our NAV, And then I'll finish up with guidance, which we are revising upward. And then I'll turn it over to Matt to discuss some of the specifics in the portfolio, dig into the leasing numbers and different metrics driving performance this quarter. For T1, net loss was negative 4.7 million or 18 cent loss per diluted share. Total revenue of 60.8 million. That compares to a net loss of $6.9 million or a 27 cent loss for diluted share in the same period in 2021. And that was on a total revenue of $51.8 million. For the corridor, same store rent increased 11.7%. Same store occupancy was down 90 basis points to 94.4%. And we'll discuss a little bit about the occupancy and what's driving that. This coupled with an increase in same-store expenses of 4.7% led to an increase in same-store NOI of 16.4% as compared to Q1 2021. We reported a Q1 core FFO of $20.1 million, or $0.78 per diluted share, compared to $0.56 per diluted share in Q1 of 2021, or an increase of 39.5%. For the quarter, we completed 531 full and partial renovations during the quarter, which was an increase of 50% from the prior quarter, so increasing our velocity there. And leased 489 renovated units during the quarter, achieving an average monthly rent premium of $138 and a 26.3% ROI during the year. which is about 450 basis points higher than our long-term average ROI and rehabs. Inception to date, in the current portfolio, we've completed 6,398 full and partial upgrades, 4,510 kitchen upgrades and washer-dryer installments, and 9,624 technology package installations, achieving an average monthly rent premium of $139, $48, and $44 respectively and an ROI of 21.8 percent, 70.8 percent, and 33.5 percent, respectively. For NAV, based on the current cap rates that we're estimating in our markets and our partial actual NOI as well as our forward NOI for the next two quarters, we're reporting an NAV per share in the following range. $94.58 on the low end, $111.23 on the high end, for a midpoint of $102.90 at the midpoint. These are based on the cap rates that we estimate between 3.5 percent and 3.8 percent, which is unchanged from last quarter. The first quarter, we paid a dividend of 38 cents per share on March 31st, and the board declared a dividend for Q2 in the same amount. Since inception, we've increased our dividend 84.5%, and for the first quarter, our dividend was 2.06 times covered by core FFO, which is a payout ratio of 48.5% of our core FFO. Turning to guidance, as mentioned, we're revising guidance upwards as follows. For core FFO per diluted share, $2.93 on the low end, $3.09 on the high end, for a midpoint of $3.01. That compares to prior guidance of $2.97, or a $0.04 increase. For same-store NOI, we're estimating 12.6% on the low end, 16% on the high end, with a midpoint of 14.3%. That compares to our prior guidance of 13% for 130 basis point increase. At the midpoint of our 2022 core FFO of $3.01, that will represent a 23.9% increase over our 2021 core FFO of $2.43. So with that, let me turn it to Matt.