NexPoint Residential Trust

NXRT employs a value-add component in a majority of its acquisitions in an attempt to improve rental rates and the net operating income at its properties. Our value-add program is implemented by BH Management Services, LLC (“BH”), our property manager, at the direction and supervision of NexPoint Real Estate Advisors, L.P. (“Adviser”). We own and operate multifamily properties in areas that have:

  • Major employment centers, parks and schools nearby;
  • A stable work force, combined with positive net population growth;
  • Well-paying jobs provided by a diverse mix of employers;
  • A favorable cost of living;
  • Reduced competition from larger multifamily REITs and large institutional real estate investors who tend to focus on select coastal and gateway markets; and
  • A limited supply of new affordable housing.

Delivering Value To Our Investors

NXRT invests in multifamily properties with a value-add component in markets with some of the strongest population and employment growth in the United States. We target undercapitalized or mismanaged multifamily real property where we can invest capital and asset management resources to deliver same store NOI growth that is historically atypical of publicly-traded multifamily REITs. We believe our strategy provides investors with development-like total returns without taking development risk.

Delivering Value To Our Residents

Our value-add programs seek to provide “life-style” amenities to “workforce” housing while maintaining a reasonable cost of living for our residents. Typical upgrades at each of our properties include interior improvements such as black or stainless steel appliances, new kitchen cabinets and lighting fixtures, and faux-wood floors throughout living areas. We also invest a significant amount of capital improving community amenities such as: renovating and updating the leasing office and clubhouse, adding or upgrading fitness centers, building dog parks, and updating pool areas.

Our Adviser

Under the Advisory Agreement, we are externally managed by our Adviser, which conducts substantially all of our operations and provides asset management for our real estate investments.

All investment decisions are made by the Adviser, subject to general oversight by the Adviser’s investment committee and the Board of Directors of NXRT (the “NXRT Board”). The members of the Adviser’s management team are James Dondero, Brian Mitts, Matt McGraner, Matthew Goetz and Dennis Charles "D.C." Sauter. The management team has significant experience across real estate investing, private lending and private equity. See “Our Adviser, Resources, Senior Management and Our Property Manager” for more information on the members of the management team and their backgrounds. The NXRT Board, which is comprised of a majority of directors who are independent for NYSE purposes and who would not constitute “interested persons” as defined by the Investment Company Act of 1940, will oversee and monitor the investment performance of NXRT. Our Adviser is responsible for sourcing potential investments, conducting research and diligence on prospective investments, analyzing investment opportunities, structuring our investments and monitoring our investments on an ongoing basis.

Our Property Manager

We have entered into management agreements with BH Management Services, LLC (“BH”), the Company’s property manager, who manages the Company’s properties and supervises the implementation of the Company’s value-add program. BH is an affiliate of the noncontrolling interest member of the Company by virtue of ownership in certain variable interest entities ("VIEs") through BH’s affiliates. The property management fee is approximately 3% of the monthly gross income from each property managed. Currently BH manages all of our properties. Additionally, the Company may pay BH certain other fees, including one-time setup and inspection fees and construction supervision fees. See latest filings for additional information on fees paid to our property manager.

BH has significant experience operating and leasing multifamily properties, having begun business in 1993 and currently operating and leasing approximately 60,000 multifamily units across the country.

Our Sponsor

NexPoint is a leading alternative investment platform. The NexPoint platform is comprised investment advisers NexPoint Advisors, L.P. and NexPoint Real Estate Advisors, L.P., a member FINRA/SIPC broker dealer, NexPoint Securities, Inc., and a suite of related investment vehicles. The platform provides differentiated access to alternatives through a range of investment offerings, including publicly traded real estate investment trusts (REITs), 1031 exchanges, closed-end funds, interval funds, and a business development company (BDC). NexPoint is based in Dallas, Texas.