NexPoint Cuts 2026 Same-Store NOI Outlook After Steeper Drop

The Tip Desk · November 10, 2026 · 4 min read

Third-quarter same-store NOI fell 8.2% to $35.6 million as the REIT reset full-year Core FFO guidance to a $2.22 midpoint.

NexPoint Residential Trust, Inc. (NXRT) reported that same-store net operating income for the third quarter ended September 30, 2026, fell 8.2% from a year earlier to $35.6 million, a steeper year-over-year decline than the 2.9% drop in the second quarter and the 2.7% drop in the first quarter.

The publicly traded REIT, which focuses on middle-income multifamily properties with value-add potential in the Southeast and Southwest, said the third-quarter same-store pool of 35 properties and 12,980 units also saw occupancy fall 70 basis points from a year earlier, returning to a year-over-year decline after a 30-basis-point increase in the second quarter; first-quarter occupancy had fallen 80 basis points. Same-store average effective rent declined 0.7% and same-store total revenue declined 0.7%.

Total revenues for the quarter were $64.5 million, compared with $62.8 million a year earlier. Net loss attributable to common stockholders was $11.5 million, or $0.45 a share, versus a $7.8 million loss, or $0.31 a share, a year earlier. The company said the wider loss related primarily to increases in property operating expenses of $2.0 million and interest expense of $2.6 million, offset by a $1.6 million increase in total revenues.

FFO was $11.7 million, or $0.46 a share, compared with $15.9 million, or $0.63 a share, a year earlier. Core FFO was $13.4 million, or $0.52 a share, versus $17.7 million, or $0.70 a share. AFFO was $16.2 million, or $0.63 a share, versus $20.2 million, or $0.80 a share. NOI on 36 properties was $36.6 million, compared with $38.8 million on 35 properties a year earlier.

The company paid a third-quarter dividend of $0.53 a share on September 30. Across all 36 properties and 13,305 units held at quarter-end, the weighted average effective monthly rent was $1,489 and physical occupancy was 92.8%.

During the quarter the company completed 708 full and partial upgrades and leased 425 upgraded units, achieving an average monthly rent premium of $42.54 and a 21.1% return on investment.

NexPoint reset its 2026 full-year guidance. The midpoint for same-store NOI growth was cut to a 4.3% decline from a 1.0% decline, with a range of 5.1% to 3.6%. Core FFO per diluted share guidance midpoint was cut to $2.22 from $2.45, with a range of $2.17 to $2.27. Earnings (loss) per diluted share guidance midpoint was cut to a $1.68 loss from a $1.54 loss, with a range of $(1.72) to $(1.63). Same-store rental income guidance midpoint was cut to a 1.5% decline from a 0.3% decline. Same-store total revenue guidance midpoint was cut to a 0.9% decline from a 0.2% increase. Same-store total expense guidance midpoint was raised to a 4.4% increase from a 2.1% increase. Acquisitions guidance midpoint was raised to $116.0 million from $100.0 million, with a range of $32.0 million to $200.0 million; the dispositions midpoint of $100.0 million was reaffirmed.

On October 1, 2026, the company drew $33.0 million under its revolving credit facility. As of that date it had $112.1 million in aggregate principal outstanding and a $2.0 million letter of credit outstanding under the facility. Total debt outstanding at quarter-end was $1,622.7 million, including $1,543.5 million of mortgage debt and $79.1 million on the credit facility, versus $1,503.2 million of mortgage debt a year earlier.

On October 2, 2026, the company acquired Midtown Crossing in Raleigh, North Carolina, a 228-unit property, for $32.0 million at 100% effective ownership. On October 26, the board authorized repurchases of up to $150.0 million of common stock over a two-year period expiring October 26, 2028, and approved a fourth-quarter dividend of $0.53 a share, payable December 31, 2026.