NexPoint Residential Trust (NXRT) Reiterated at Market Perform by Citizens Post Guidance Cut

Citizens analyst Aaron Hecht reiterated a Market Perform rating on NexPoint Residential Trust (NYSE: NXRT).

The analyst commented, "In our view, the most significant near-term headwind remains the September expirations of attractively priced interest rate swaps. Based on guidance, we estimate the resulting increase in interest expense will reduce FFO by $0.22 per share in 4Q26 versus 2Q26. Our estimates suggest FAD per share will fall short of covering the current dividend by year-end. As a result, we assume NXRT reduces its quarterly dividend to $0.40 per share in 1Q27 from $0.53 currently. After earnings and the dividend are reset to reflect the post-swap-expiration earnings run rate, we believe the investment narrative should be on firmer footing, as a known overhang will be removed and improving Sunbelt apartment fundamentals can become a more central focus. With shares trading at a 35% discount to our FTM NAV, we believe the swap-related earnings pressure is largely reflected in the valuation, and we view the stock as fairly valued."

For an analyst ratings summary and ratings history on NexPoint Residential Trust click here. For more ratings news on NexPoint Residential Trust click here.

Shares of NexPoint Residential Trust closed at $24.06 yesterday.

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