NexPoint Residential Trust, Inc.

during this time, simply press star followed with the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Kristin Griffith, Investor Relations, so please go ahead.

Thank you. Good day everyone and welcome to Next Minute Residential Trust Conference Call to review the company's results for its second quarter into June 30th, 2025. On the call today are Paul Brichard, Executive Vice President and Chief Financial Officer, Matt McGraner, Executive Vice President and Chief Investment Officer, and Bonner McDermott, Vice President Asset and Investment Management. As a reminder, this call is being webcast through the company's website at .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 Security Litigation Reform Act of 1995 that are based on management, 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 10K and the company's other families 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, NSRT does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAP financial measures. For a more complete discussion of these non-GAP financial measures, see the company's earnings release that was filed earlier today. I would now like to turn the call over to Paul Brichard. Please go ahead, Paul.

Thank you, Kristen, and welcome everyone joining us this morning. We appreciate your time. I'll kick off the call and cover our Q2 results, updated NAB and guidance outlook for the year and briefly touch on a few subsequent events. I will then turn over to Matt to discuss specifics on leasing environment and metrics driving our performance and guidance. Results for Q2 are as follows. Net loss for the first quarter was $7 million, or a loss of 28 cents per diluted share on total revenue of $63.1 million. The $7 million net loss for the quarter compares to net income of $10.6 million, or 40 cents earnings per diluted share for the same period in 2024 on total revenue of $64.2 million. For the second quarter of 2025, NOI was $38 million on 35 properties compared to $38.9 million for the second quarter of 2024 on 36 properties. For the quarter, same store rent and occupancy decreased .3% and .8% respectively. This coupled with the decrease in same store revenues of .2% led to a decrease in same store NOI of .1% as compared to Q2 2024. As compared to Q1 2025, rents for Q2 2025 on the same store portfolio were up .3% or $4. We reported Q2 core FFO of $18 million or 71 cents per diluted share compared to 69 cents per diluted share in Q2 2024. During the second quarter for the properties in the portfolio, we completed 555 full and partial upgrades, leased 381 upgraded units achieving an average monthly rent premium of $73 and a 26% return on investment. Since inception, NXRT has completed installation of 9,113 full and partial upgrades, 4,870 kitchen and laundry appliances, and 11,199 tech packages, resulting in $165, $50, and $43 average monthly rental increase per unit and 20.8%, 64.2%, and .2% return on investment respectively. NXRT paid a second quarter dividend of 51 cents per share of common stock on June 30, 2025. Since inception, we've increased our dividend 147.6%. For Q2, our dividend was 1.39 times covered by core FFO with the .2% payout ratio of core FFO. During the second quarter, the company repurchased 223,109 shares of its common stock, totaling approximately 7.6 million at an average price of 34.29 per share. During the second quarter, the company entered into a new five-year 100 million sofa swap with JP Morgan Chase with a fixed rate of 3.489%. Turning to the details of our updated NAV estimate. Based on our current estimate of cap rates in our markets and forward NOI, we're reporting a NAV per share range as follows. $43.90 on the low end, $56.73 on the high end, and $50.31 at the midpoint. These are based on average cap rates ranging from five and a quarter at the low end to five and three quarters at the high end, which remains stable quarter over quarter. Turning to full year 2025 guidance. NXRT is tightening 2025 guidance ranges for core FFO per diluted share and same store NOI while affirming the midpoint. NXRT is revising 2025 guidance ranges for earnings lost per diluted share, same store rental income, same store total revenue, and same store total expenses. Loss per share and core FFO ranges are as follows. For earnings lost per diluted share, $1.22 at the high end, $1.40 at the low end with a midpoint of $1.31 and core FFO per diluted share, $2.84 at the high end, $2.66 at the low end with affirming the midpoint of $2.75. NXRT is also reaffirming acquisitions and disposition guidance. Lastly, I would like to take the time to discuss a few subsequent events which have occurred over the 2025. The company entered into a $200 million corporate revolving credit facility with JP Morgan Chase Bank, Raymond James Bank, RBC, and Sanobis. The credit facility may be increased by up to an additional $200 million upon lender consent. The credit facility will mature on June 30, 2028 unless the company exercises its option to extend for an additional one-year term. The new credit facility spread has improved by 15 basis points compared to the prior corporate facility. On July 28, 2025, the company's board approved a quarterly dividend of $0.51 per share payable on September 30, 2025 to stockholders of record on September 15, 2025. This completes my prepared remarks, so I'll now turn it over to Matt for commentary on the portfolio. Thank