NexPoint Residential Trust, Inc.

Thank you for standing by. My name is Carly and I will be your conference operator today. At this time, I would like to welcome everyone to the NextPoint Residential Trust Q1 2026 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 1 again. Thank you. I would now like to turn the call over to Kristen Griffith, Investor Relations. Please go ahead.

Thank you. Good day, everyone, and welcome to Next Point Residential Trust's conference call to review the company's results for the first quarter ending March 31, 2026. 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 nsrt.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 play 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 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 of the state's date and except as required by law, NXVT does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes and 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. We're now going 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 cover our Q1 2026 financial results and then walk through a refresher on our full year outlook. Matt will then discuss the operating environment, our technology platform, and AI strategy, as well as portfolio positioning. Q1 2026 results are as follows. Net loss for the first quarter was $6.8 million, or $0.27 per diluted share, on total revenue of $63.5 million. This compares to a net loss of $6.9 million, or $0.27 per diluted share, in Q1 2025 on total revenue of $63.2 million. Total NOI was $37.6 million across 36 properties, including Sedona and Lone Mountain, which we acquired last December. This compares to $37.7 million on 35 properties for Q1 2025. On the same-store basis across our 35 legacy properties and 12,984 units, total income was $61.4 million, down 2.2% year-over-year. Total operating expenses declined 1.6% to $24.8 million, resulting in same-store NOI of $36.7 million, a 2.7% decrease, and an NOI margin of 59.8%. Same-store occupancy closed the quarter at 93.6%. While the year-over-year comparison reflects the tail end of supply-driven pricing reset, our monthly trajectory is improving materially, and Matt will walk you through that cadence on the structural factors driving our confidence in the second half. We reported Q1 core FFO of $17.3 million, or 68 cents per diluted share, three cents better than consensus, compared to 75 cents per diluted share in Q1 2025. The year-over-year decline is primarily driven by interest expense, which I'll address now. We have always been transparent that 2026 carries a meaningful interest expense headwind as certain swap positions fall off. Q1 total interest expense was $15.4 million versus $14.4 million in Q1 2025. with the swap benefit declining from 8.4M to 5.5M. Since we issued initial guidance in February, the forward surfer curve has shifted 7 to 47 basis points higher across the remaining quarters of 26. This adds approximately 2.2M or roughly $0.08 per diluted share of incremental interest expense versus our original assumptions. Q1 came in essentially in line with our prior model. Q2 modestly higher, Q3 steps up as swap positions begin to expire, and Q4 reflects the full run rate impact. Full year 26 interest expense is now projected at $69.3 million versus $67.1 million in our original model. We do not attempt to forecast rates. We manage the risk. The same volatility that has moved the curve against us in recent weeks creates the entry points for our next swap execution. We have visibility into the maturity schedule, the optionality to execute forward starting hedges before September, and we will move when economics are compelling, as we did with the $100 million GPM forward swap last April at 3.49%. We are not waiting for the September 1st. Interest rate swaps currently fixed the rate on $917.5 million, or 62% of floating rate mortgage debt. We continue to evaluate opportunities to layer additional hedges and will act when risk-adjusted economics are compelling. Moving to expense detail. On the expense side, same-store operating expenses improved 1.6% year-over-year. Payroll declined 4.3%, a direct output of centralized operating model and AHAI enhanced leasing platform that Matt will discuss in detail. Real estate taxes decreased 11.2% and insurance declined 23.5%, partially offset by a 15.2% increase in repairs and maintenance, which included bulk fiber service contract costs offset by revenue gains, and a 50.5% increase in marketing spend as we invested in lease-up velocity at properties below target occupancy. The R&M increase reflects two primary drivers. First, we accelerated deferred maintenance at several properties as part of a deliberate portfolio quality initiative. Second, we incurred elevated one-time costs associated with lender-required CapEx at select Florida properties. These are episodic expenses that position the affected units for improved performance and do not reflect a structural change in our cost base. Importantly, our expense outlook is steady relative to our original model. Operating expense is on track, as is corporate G&A. On insurance specifically, we settled rates for our new policy renewal on April 1st, achieving 13.3% reduction year-over-year, better than the strongest end of our originally guided range of 0% to negative 10%. Moving to value-add updates. During the first quarter, NXRT completed 252 full and partial upgrades, at least 225 upgraded units, achieving an average monthly rent premium of $69 and a 19% ROI. Since inception, NXRT has completed over 10,100 full and partial interior upgrades, across the portfolio, generating average monthly premiums of 13.3% and inception-to-date ROIs of 20.7%. In addition, we have completed 5,027 kitchen and laundry appliance upgrades and 11,199 tech packages, generating ROIs of 63.5% and 37.2% respectively. For Q1, we declared a dividend of $0.53 per share, paid March 31, 2026. Since inception, we have increased our dividend 157.3%. We remain fully committed to the current distribution level. At our core FFO guidance midpoint, coverage stands at approximately 1.21 times, and we expect coverage to improve as revenue trends strengthen through peak season into 2027. On the balance sheet and liquidity, on January 30, 2026, the company entered into a 55% LTV, $40.3 million mortgage loan secured by Sedona at Lone Mountain with Newmark. The loan matures on February 1, 2033, with all principal due at maturity, and bears interest rate based on 30-day average SOFR plus a margin of 1.23%. As of March 31, 2026, total indebtedness was approximately $1.6 billion at an adjusted weighted average interest rate of 3.3%, with $18.5 million of unrestricted cash and $143 million of undrawn capacity on our credit facility, providing approximately $161.5 million of available liquidity. We have no scheduled debt maturities until 2028 when our $33.8 million 4.24 fixed rate loan matures at residences at West Place. That loan should be easily refinanced with a new agency senior when the time comes. Nav per share. Our estimated net asset value per quarter at quarter end is $47.70 per diluted share at the midpoint using a blended cap rate of 5.5% across the portfolio. The range spans $40.66 at a 5.75% cap rate to $54.74 at 5.25%. Based on approximately 25.6 million diluted shares outstanding, the closing stock price as of yesterday at $26.36 represents a 44.7% discount to our midpoint NAV. Even at the most conservative end of our range, stock traded at a 27% discount to estimated liquidation value. We believe the disconnect between public market pricing and the underlying real estate value is significant. In the capital recycling initiatives, we will discuss providing a path to validating these values through third-party transactions. 2026 guidance reaffirmed we are reaffirming our full year 2026 core FFO guidance range of $2.42, $2.71 per diluted share as well as our same store NOI range of negative 0.5% at the midpoint. Two months ago we issued initial guidance. Since then we have absorbed two distinct headwinds and realized meaningful offsets that in aggregate fully neutralize the pressure. On the headwind side, a 7 to 47 basis point shift in the forward silver curve adds approximately $0.08 per share of incremental interest expense and a slightly lower than model Q1 leasing environment. On the offset side, a stronger insurance renewal, expense discipline, and strategic fee income from our advisor private capital platform, which Matt will address in a moment, together fully absorb those pressures. Our core FFO and same-store guidance range is unchanged. We're also reaffirming our same-store submetric ranges for the year. To reiterate, our full-year targets, we see the ranges are as follows. Same-store rental income growth of 0% to positive 1.9% with a midpoint of 0.9%. Same-store revenue growth of positive 0.1% to positive 2% with a midpoint of 1.1%. Same-store expense growth of positive 2.8% to positive 4.2% with a midpoint of 3.5%. And lastly, our same-store NOI growth of negative 2.5% to positive 1.5% with a midpoint of negative 0.5%. With that financial overview, let me turn it over to Matt.