NexPoint Residential Trust, Inc.

followed by the number 1 on your telephone keypad. And if you would like to withdraw your question, press the star 1 again. And now I would like to turn the call over to Kristen Griffith, Investor Relations. Please go ahead.

Thank you. Good day, everyone, and welcome to the National Residential Trust conference call to review the company's results for the first quarter in its March 31, 2025. On the call today are Paul Richards, Executive Vice President and Chief Financial Officer, Matt McGrainer, Executive Vice President and Chief Investment Officer, and Bonner McDermott, Vice President, Asset and Investment Management. As a reminder, this call is being webcrafted to 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 meanings of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions, and beliefs. Listeners should not place a new 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 risk 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, NXRT 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 Paul Richards. Please go ahead, Paul.

Thank you, Kristen, and welcome everyone joining us this morning. We appreciate your time. I'm Paul Richards, and I'm joined today by Matt McGrainer and Bonner McDermott. I will kick off the call and cover our Q1 results, updated NAV, and guidance outlook for the year, and briefly touch on a few subsequent events. I will then turn it over to Matt to discuss specifics on the leasing environment and metrics driving our performance and guidance. Results for Q1 are as follows. Net loss for the first quarter was $6.9 million or loss of 27 cents per diluted share on total revenue of $63.2 million. The $6.9 million net loss for the quarter compares to net income of $26.4 million or $1 earnings per diluted share for the same period in 2024 on total revenue of $67.6 million. For the first quarter of 2025, NOI was $37.8 million on 35 properties compared to $41.1 million for the first quarter of 2024 on 37 properties. For the quarter, same-store rent and occupancy decreased 1.3% and 0.3% respectively. This coupled with the decrease in same-store revenues of 1% led to a decrease in same-store NOI of 3.8% as compared to Q1 2024. As compared to Q4 2024, rents for Q1 2025 on the same-store portfolio were up 0.3% or $4. We reported Q1 core FFO of $19.1 million, or $0.75 per diluted share, compared to $0.74 per diluted share in Q1 2024. During the first quarter, for the properties in the portfolio, we completed 210 full and partial upgrades, at least 201 upgraded units, achieving an average monthly rent premium of $62 and a 16.1% return on investments. Since conception, NXRT has completed installation of 8,558 full and partial upgrades, 4,795 kitchen and laundry appliances, and 11,389 technology packages, resulting in $172, $50, and $43 average monthly rental increase per unit, and 20.7%, 64.5%, and 37.2% return on investment, respectively. NXRT paid a quarter dividend of 51 cents per share of common stock on March 31st, 2025. Since inception, we've increased our dividend 147.6%. For Q1, our dividend was 1.4 times covered by core FFO with a 68.3% payout ratio of core FFO. Turning to the details of our updated NAV estimate. Based on our current estimate of cap rates in our markets and forward NOI, we are reporting a NAB per share range as follows. $44.20 on the low end, $58.20 on the high end, and $51.20 at the midpoint. These are based on average cap rates ranging from 5.25% on the low end to 5.75% at the high end, which remains stable quarter over quarter. Turning to full year 2025 guidance. NXRT is revising 2025 guidance ranges for earnings per diluted share and core FFO per diluted share. Due to the share buyback program we initiated in Q2, earned interest rate environment, as well as plans to continue to layer in additional swaps. These guidance ranges are as follows. For earnings loss per diluted share, $1.08 at the high end, negative $1.36 at the low end, with a midpoint of negative $1.22. and core FFO per diluted share of $2.89 at the high end, $2.61 at the low end, with a midpoint of $2.75. NSRT is reaffirming same-store rental income, same-store total revenue, same-store total expenses, same-store NOI, and acquisitions and dispositions. Lastly, I would like to take time to discuss a few subsequent events that have occurred over the past few weeks. On April 28, 2025, the company's board approved a quarterly dividend of 51 cents per share, payable on June 30, 2025, to stockholders of record on June 16, 2025. Since April 1, 2025, the company has purchased 223,109 shares of its common stock, totaling approximately $7.6 million and an average price of $34.29 per share, which is a 33% discount to our current NAV midpoint. On April 3, 2025, the company entered into a new five-year $100 million super swap with JPMorgan Chase with a fixed rate of 3.489%. This completes my prepared remarks, so I'll turn it over to Matt for commentary on the portfolio.