NexPoint Residential Trust, Inc. Completes the Sale of Radbourne Lake Apartment Homes
DALLAS, May 2, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today the closing of the sale of Radbourne Lake Apartment Homes in Charlotte, NC, a 225-unit property built in 1991. The property was acquired for $24.3 million on September 30, 2014, and has provided consistent operational and cash flow performance for the portfolio for the last 9+ years. As of April 30, 2024, the property was 92.4% leased with a weighted average effective monthly rent of approximately $1,420, which is 58.5%, or $524, higher than it was upon takeover. Net proceeds from the sale were approximately $18.6M, delivering a trailing nominal tax and insurance adjusted cap rate of 5.18%, a 19.24% levered internal rate of return and a 3.64x multiple on invested capital, each of which well exceeded expectations.
"NXRT is pleased to announce another successful 2024 disposition, as highlighted during the first quarter 2024 earnings call. Moving forward, NXRT will continue to diligently monitor the transaction and capital markets, seeking opportunities to unlock liquidity that the Company can utilize to enhance the balance sheet, repurchase shares, and/or pay off higher property-level debt, all of which would be conducive to future growth," said Matt McGraner, Chief Investment Officer.
About NXRT
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor which has extensive real estate experience.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "should," "continue," "will," "seek" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the Company's strategic objectives, the execution of the strategic objectives, that NXRT will continue to diligently monitor the transaction and capital market activity, seeking opportunities to unlock liquidity which the Company can use to enhance the balance sheet, repurchase shares and/or pay off higher property-level debt that will be conducive to future growth and that the Company remains committed to prioritizing share repurchases. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements described in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's most recent Annual Report on Form 10-K and other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. The statements made herein speak only as of the date of this release and except as required by law, NXRT does not undertake any obligation to publicly update or revise any forward-looking statements.
Contact:
Kristen Thomas
Investor Relations
IR@nexpoint.com
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SOURCE NexPoint Residential Trust, Inc.
