DALLAS, June 15, 2020 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) provided an update today on its response to the novel coronavirus (COVID-19) crisis, as well as portfolio-wide collections updates.
June Operations Update
Management is pleased to report that as of June 13, 2020, 96.5% of June rent has been collected. NXRT June 2020 collections increased to 97.3% when factoring in payment plans. During the same period last year, 96.8% of rent had been collected. Also, as of June 13, 2020 99.2% of outstanding May 2020 rent has been collected. Payment plans represented only 1.0% of June 2020 rents as of June 13, 2020, compared to 1.9% in May 2020 and 6.8% in April 2020.
In response to the pandemic, Management completed an extensive review of all available resident demographic data through May 26, 2020. In the three markets believed to be most adversely affected by recent events, Houston (8.4% of total unit exposure), Orlando (8.3% of total unit exposure), and Las Vegas (8.2% of total unit exposure), the most common tenant occupations were extremely diverse, with no more than 19.0% concentration in one industry in one market. Also, out of all ten NXRT markets, Houston collections were the highest, with 100.8% of June rent collected as of June 13, 2020.
As of the date of this release, all NXRT markets are through the first phase of reopening. As we enter the traditionally active summer leasing months, our occupancy was 94.7% as of June 13, 2020, with 97.0% of units leased. This is compared to 94.3% and 96.6%, respectively, as of May 17, 2020. Quarter to date, retention levels remain strong, at 56.9% as of June 13, 2020.
Value-Add Initiatives
NXRT's value-add component is a key component of the Company's thesis. As unemployment continues to remain at record levels, we believe now, more than ever, that NXRT properties provide a safe and affordable workforce housing solution. Despite the formal withdrawal of 2020 Guidance, the Company continues to believe in the strength of its rehab program. Quarter to date through June 11, 2020, we have completed 424 rehabs (239 interiors and 185 washer/dryer installs), which is well ahead of the 225 announced on the Company's first quarter 2020 earnings call. Average rent for these units was increased by $95 per month, which equates to an average return on investment of 24.5%.
NXRT's strong liquidity profile allows the Company to continue value-add initiatives and remain prepared to weather any upcoming unforeseen challenges related to the COVID-19 crisis. As of June 12, 2020, the Company reported $67.0 million of total liquidity, which includes unrestricted cash and amounts earmarked for rehab projects.
"We believe the past three months of solid, above-average rent collections are attributable to the resiliency of our tenant base. As our markets continue reopening and gaining some semblance of normalcy, we will continue to support tenants and staff who have been impacted by the crisis," said Chief Investment Officer Matthew McGraner.
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 Notice Regarding Forward-Looking Statements and Non-GAAP Financial Measures
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 "expect," "believe," "intend," "prepared" 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 response to the COVID-19 crisis and ability to weather any unforeseen challenged related to the COVID-19 crisis. Forward-looking statements 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 statement, including risks related to the COVID-19 crisis and other developments that may arise. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the Company's other filings with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statement. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Contact:
Jackie Graham
Investor Relations
972-628-4024
JGraham@nexpointadvisors.com
Media Inquiries
MediaRelations@nexpointadvisors.com
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SOURCE NexPoint Residential Trust, Inc.