DALLAS, April 16, 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 and provided the results of April rent collections through April 15, 2020.
NXRT's primary focus is on the safety and health of our residents and employees. Our residents now more than ever need a safe, clean and affordable place to live given the shelter-in-place orders issued in all of our markets. To help our residents through potential hardships, NXRT has proactively reached out to residents to offer need-based flexible payment plans. Additionally, NXRT has temporarily ceased processing eviction notices and assessing late fees in compliance with the Coronavirus Aid, Relief, and Economic Security Act (commonly referred to as the "CARES Act").
Although many are experiencing financial hardships during this crisis, we believe our residents are generally well situated to weather this storm. We complete extensive credit underwriting on our residents before offering a lease in order to attract the most creditworthy residents. The average income of our residents based on our underwriting is $4,558 per month, as compared to an average rental rate of $1,112 per month, meaning on average our tenants pay only 24% of their income toward rent. For our residents that have unfortunately lost their jobs, based on our calculations we believe they are eligible to receive $4,204 per month of unemployment on average across our markets (total unemployment benefits vary by state), inclusive of the expanded benefits under the CARES Act of $600 per week or approximately $2,400 per month. Therefore, even if a tenant has lost their job during this crisis, the combination of expanded unemployment benefits and our flexible payment plans, should allow them to meet their rental obligations as they will receive on average 92% of their prior income. In regard to the one-time stimulus payment enacted by the CARES Act, we estimate that 92% of our residents are eligible for 100% of the stimulus of $1,200 per person, $2,400 for joint filers and $500 for each child (full payments phase out between $75,000 and $99,000 for individuals and $150,000 and $199,000 for joint filers).
Operations and Rent Collections Update
The National Multifamily Housing Council ("NMHC") released collection data yesterday for 11.5 million units across the US. According to NMHC, 84% of tenants paid April 2020 rent by the 12th, which was 93% of the collections through the same date in March 2020. NXRT is pleased to report that April rent collections as of April 15th, inclusive of payment plans to pay rent in the month of April, were 93.6% of March 2020 collections and 94.4% of April 2019 collections through March 12, 2020 and April 12, 2019, respectively.
For the safety of our residents and employees, NXRT has closed all leasing offices, closed or limited access to common areas and instituted new protocols regarding interactions with residents. Despite these changes, our operations remain fully functional and we continue to provide the same high quality service and support for our residents as before the crisis. Although we have reduced costs across our operations, we have not sacrificed service to our residents by reducing our staff in an effort to reduce costs. With our leasing offices closed, we have transitioned to virtual tours to limit the risk of exposure of our onsite staff. Despite reduced leasing traffic, NXRT is 95.9% leased across the portfolio, with retention rates for residents with expiring leases reaching strongly elevated levels of 56.8% month-to-date in April, on track to set a new all-time high. Based on 30 and 60-day leasing and renewal trends, we expect to maintain our current occupancy during the second quarter.
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
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 future rent collections, occupancy rates and 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. 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.
SOURCE NexPoint Residential Trust, Inc.