NexPoint Residential Trust, Inc.

Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the NextPoint Residential Trust third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by 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 conference over to Kristen Griffith, Investor Relations. You may begin.

Thank you. Good day, everyone, and welcome to Next Point Residential Conference Call to review the company's results for the third quarter ended September 30th, 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 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 meanings of the private securities law. Litigation Reform Act of 1995 that are based on management's current expectations, assumptions, and beliefs. Listeners should not place under 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, NSRT 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'll kick off the call and cover our Q3 results, updated NAB, and guidance outlook for the year. I will then turn it over to Matt to discuss specifics on the leasing environment and metrics driving our performance and guidance. Results for Q3 are as follows. Net loss for the third quarter was $7.8 million for a loss of $0.31 per diluted share on total revenues of $62.8 million. The $7.8 million net loss for the quarter compares to a net loss of $8.9 million or a $0.35 loss per diluted share for the same period in 2024 on total revenue of $64.1 million. For the third quarter of 2025, NOI was $38.8 million on 35 properties compared to $38.1 million for the third quarter of 2024 on 36 properties. For the quarter, same-store rent and occupancy decreased 0.3% and 1.3% respectively. This coupled with a decrease in same-store revenues of 0.6% and same-store expenses of 6.2% led to an increase in same-store NOI of 3.5% as compared to Q3 2024. As compared to Q2 2025, rents for Q3 2025 on the same store portfolio were down 0.2% or $3. We reported Q3 core FFO of 17.7 million or 70 cents per diluted share compared to 69 cents per diluted share in Q3 2024. During the third quarter, for the properties in the portfolio, we completed 365 full and partial upgrades, leased 297 upgraded units, achieving an average monthly rent premium of $72 and a 20.1% return on investment. Since inception, NSRT has completed installation of 9,478 full and partial upgrades, 4,925 kitchen and laundry appliances, and 11,389 tech packages, resulting in $161, $50, and $43 average monthly rental increase per unit, and 20.8%, 64%, and 37.2% return on investment respectively. NXRT paid a third quarter dividend of 51 cents per share of common stock on September 30th, 2025. For Q3, our dividend was 1.37 times covered by core FFO with a 73.2% payout ratio of core FFO. On October 27th, 2025, the company's board approved a quarterly dividend of 53 cents per share, a 3.9% increase from the previous dividend per share, payable on December 31st, 2025, to stockholders of record on December 15th, 2025. Since inception, NSRT has increased the dividend per share by 157.3%. Turning to the details of our updated NAV estimate, based on our current estimate of cap rates in our market and forward NOI, We are reporting a NAV range per share as follows, $43.40 on the low end, $56.24 on the high end, and $49.82 at the midpoint. These are based on average cap rates ranging from 5.25% on the low end and 5.75% on the high end, which remains stable quarter over quarter. Turning to full-year 2025 guidance. NXRT is reaffirming guidance midpoints for loss per diluted share, core FFO per diluted share, same-store rental income, same-store total revenues, same-store total expenses, and same-store NOI, and tightening guidance ranges for acquisitions and dispositions. Loss per share, core FFO ranges are as follows. Loss per diluted share of negative $1.22 at the high end, negative $1.40 at the low end, with a midpoint of negative $1.31 at the low end. And for core FFO for diluted share, $2.84 at the high end, $2.66 at the low end, with affirming the midpoint of $2.75. This completes my prepared remarks, so I'll now turn it over to Matt for commentary on the portfolio.