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NexPoint Residential Trust, Inc. Reports Fourth Quarter And Full Year 2019 Results

NXRT Recaps Acquisition/Disposition Activity, Value-Add Results and Issues 2020 Full Year Guidance

DALLAS, Feb. 18, 2020 /PRNewswire/ -- NexPoint Residential Trust, Inc. (NYSE:NXRT) reported financial results for the fourth quarter and year ended December 31, 2019.

Highlights

  • NXRT1 reported net income, FFO2, Core FFO2 and AFFO2 of $99.1M, $40.7M, $47.6M and $54.2M, respectively, attributable to common stockholders for the year ended December 31, 2019, compared to net loss, FFO, Core FFO, and AFFO of $(1.6)M, $32.0M, $35.1M and $40.8M, respectively, attributable to common stockholders for the year ended December 31, 2018.
  • For the year ended December 31, 2019, 2018-2019 Same Store properties3 average effective rent, total revenue and NOI2 increased 3.6%, 4.3% and 6.7%, respectively, and occupancy decreased 30 bps over the prior year period.
  • During the three months ended December 31, 2019, NXRT acquired three properties in Las Vegas, NV (Torreyana, Bloom and Bella Solara) for a combined purchase price of approximately $241.0M.
  • The weighted average effective monthly rent per unit across all 40 properties held as of December 31, 2019 (the "Portfolio"), consisting of 14,724 units4, was $1,103, while physical occupancy was 94.2%.
  • NXRT paid a fourth quarter dividend of $0.3125 per share of common stock on December 31, 2019; this cash dividend represented a $0.0375 per share, or 13.6% increase, over the prior quarter's dividend.
  • During 2019, for the properties in the Portfolio, NXRT completed 2,516 full and partial upgrades, which includes 1,327 new washer and dryer installs, and leased 1,671 upgraded units, achieving an average monthly rent premium of $106 and a 25.3% ROI5. Since inception, for the properties in the Portfolio, NXRT has completed 6,927 full and partial upgrades and achieved an average monthly rental increase per unit of $101, equating to a 24.5% ROI on all units leased as of December 31, 2019.
  • During the full year 2019, NXRT completed Smart Home Technology installs on 8,546 units, covering 24 properties.
  • During the full year 2019, through its at-the-market offering ("ATM program"), NXRT issued approximately 1.6 million shares for approximately $72.0 million in gross proceeds.
  1. In this release, "we," "us," "our," the "Company," "NexPoint Residential Trust," and "NXRT" each refer to NexPoint Residential Trust, Inc., a Maryland corporation.
  2. FFO, Core FFO, AFFO and NOI are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of FFO, Core FFO, AFFO and NOI to net income (loss), see the "Definitions and Reconciliations of Non-GAAP Measures" and "FFO, Core FFO and AFFO" sections of this release.
  3. We define "Same Store" properties as properties that were in our Portfolio for the entirety of the periods being compared. There are 25 properties encompassing 9,057 units of apartment space in our Same Store pool for the year ended December 31, 2019  (our "2018-2019" Same Store" properties). There are 28 properties encompassing 10,141 units of apartment space in our Q4 Same Store pool for the three months ended December 31, 2019 (our "Q4 Same Store" properties).
  4. Total number of units owned as of December 31, 2019 is 14,920, but all 196 units at Cutter's Point were not operating due to damage caused by a tornado on October 20, 2019.
  5. We define Return on Investment ("ROI") as the sum of the actual rent premium divided by the sum of the total cost.

Full Year 2019 Financial Results

  • Total revenues were $181.1 million for the full year 2019, compared to $146.6 million for the full year 2018.
  • Net income for the full year 2019 totaled $99.4 million, or income of $4.03 per diluted share, which included a gain on sales of real estate of $127.7 million and $69.1 million of depreciation and amortization expense. This compared to net loss of $(1.6) million, or a loss of $(0.08) per diluted share, for the full year 2018, which included $47.5 million of depreciation and amortization expense.
  • The change in our net income of $99.4 million for the year ended December 31, 2019 as compared to our net loss of $(1.6) million for the year ended December 31, 2018 primarily relates to increases in gains on sales of real estate and total revenues, partially offset by increases in depreciation and total property operating expenses.
  • For the full year 2019, NOI was $102.6 million on 40 properties, compared to $80.2 million for the full year 2018 on 35 properties.
  • For the full year 2019, Same Store NOI increased 6.7% to $66.0 million, compared to $61.8 million for the full year 2018.
  • For the full year 2019, FFO totaled $40.7 million, or $1.66 per diluted share, compared to $32.0 million, or $1.48 per diluted share, for the full year 2018. For the full year 2019, Core FFO totaled $47.6 million, or $1.93 per diluted share, compared to $35.1 million, or $1.62 per diluted share, for the full year 2018. For the full year 2019, AFFO totaled $54.2 million, or $2.20 per diluted share, compared to $40.8 million, or $1.88 per diluted share, for the full year 2018.

Fourth Quarter 2019 Financial Results

  • Total revenues were $49.7 million for the fourth quarter of 2019, compared to $39.4 million for the fourth quarter of 2018.
  • Net loss for the fourth quarter of 2019 totaled $(13.3) million, or a loss of $(0.53) per diluted share, which included $23.4 million of depreciation and amortization expense and $10.7 million of interest expense. This compared to net loss of $(4.8) million, or a loss of $(0.21) per diluted share, for the fourth quarter of 2018, which included $13.8 million of depreciation and amortization expense and $7.8 million of interest expense.
  • The change in our net loss between the periods primarily relates to increases in interest expense and depreciation and amortization expense, partially offset by an increase in total revenues.
  • For the fourth quarter of 2019, NOI was $28.3 million on 40 properties, compared to $21.3 million for the fourth quarter of 2018 on 35 properties.
  • For the fourth quarter of 2019, Q4 Same Store NOI1 increased 9.3% to $18.8 million, compared to $17.2 million for the fourth quarter of 2018, which was impacted by a 10.3% decrease in real estate taxes.
  • For the fourth quarter of 2019, FFO totaled $10.1 million, or $0.39 per diluted share, compared to $9.0 million, or $0.40 per diluted share, for the fourth quarter of 2018. For the fourth quarter of 2019, Core FFO totaled $13.8 million, or $0.54 per diluted share, compared to $9.2 million, or $0.41 per diluted share, for the fourth quarter of 2018. For the fourth quarter of 2019, AFFO totaled $15.0 million, or $0.59 per diluted share, compared to $10.7 million, or $0.47 per diluted share, for the fourth quarter of 2018.

Fourth Quarter Earnings Conference Call

NXRT will host a call on Tuesday, February 18, 2020 at 11:00 a.m. ET to discuss its fourth quarter and full year financial results. The conference call can be accessed live over the phone by dialing 800-353-6461 or, for international callers, +1 334-323-0501, and using passcode Conference ID: 3863655.  A live audio webcast of the call will be available online at the Company's website, http://www.nexpointliving.com (under "Investor Relations").  An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.

A replay of the conference call will also be available through Tuesday, February 25, 2020, by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 3863655.

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. Our filings with the Securities and Exchange Commission (the "SEC") are available on our website, www.nexpointliving.com, under the "Investor Relations" tab.

Cautionary Statement Regarding Forward-Looking Statements

This 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," "anticipate," "estimate," "may," "should," "intend" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding NXRT's business and industry in general, new business metrics relating to the Las Vegas Portfolio, NXRT's guidance for financial results for the full year 2020 and the related assumptions, net asset value and the related components and assumptions, guidance for the first quarter 2020 and the related assumptions, planned value-add programs, including projected average rent, rent change and return on investment and expected acquisitions and dispositions. They are no 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. 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:
Investor Relations
Jackie Graham
JGraham@nexpointadvisors.com
972-419-6213
Media inquiries: MediaRelations@nexpointadvisors.com

FFO, Core FFO and AFFO

The following table reconciles our calculations of FFO, Core FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the years ended December 31, 2019, 2018 and 2017 and for the three months ended December 31, 2019 and 2018 (in thousands, except per share amounts):



For the Year Ended December 31,


For the Three Months Ended
December 31,



2019



2018



2017


2019



2018

Net income (loss)


$

99,438



$

(1,614)



$

56,359


$

(13,306)



$

(4,782)

Depreciation and amortization



69,086




47,470




48,752



23,394




13,832

Gain on sales of real estate



(127,684)




(13,742)




(78,365)



16




Adjustment for noncontrolling interests



(122)




(96)




(1,695)



(30)




(26)

FFO attributable to common stockholders



40,718




32,018




25,051



10,074




9,024




















FFO per share - basic


$

1.69



$

1.51



$

1.19


$

0.40



$

0.41

FFO per share - diluted


$

1.66



$

1.48



$

1.17


$

0.39



$

0.40




















Loss on extinguishment of debt and modification costs



2,869




3,576




5,719






Casualty-related expenses/(recoveries)



(34)




(663)




(287)



(60)




39

Casualty losses



3,488









3,488




Change in fair value on derivative instruments - ineffective portion









(309)






Amortization of deferred financing costs - acquisition term notes



553




159




403



269




138

Adjustment for noncontrolling interests



(21)




(9)




(430)



(11)




Core FFO attributable to common stockholders



47,573




35,081




30,147



13,760




9,201




















Core FFO per share - basic


$

1.97



$

1.66



$

1.43


$

0.55



$

0.41

Core FFO per share - diluted


$

1.93



$

1.62



$

1.41


$

0.54



$

0.41




















Amortization of deferred financing costs - long term debt



1,530




1,491




1,592



87




430

Equity-based compensation expense



5,130




4,198




3,109



1,186




1,095

Adjustment for noncontrolling interests



(20)




(17)




(76)



(4)




(5)

AFFO attributable to common stockholders



54,213




40,753




34,772



15,029




10,721




















AFFO per share - basic


$

2.25



$

1.92



$

1.65


$

0.60



$

0.48

AFFO per share - diluted


$

2.20



$

1.88



$

1.62


$

0.59



$

0.47




















Weighted average common shares outstanding - basic



24,116




21,189




21,057



25,073




22,207

Weighted average common shares outstanding - diluted



24,593




21,667




21,399



25,520




22,672




















Dividends declared per common share


$

1.138



$

1.025



$

0.910


$

0.313



$

0.275




















FFO Coverage - diluted

(1)

1.46x



1.44x



1.29x


1.26x



1.45x

Core FFO Coverage - diluted

(1)

1.70x



1.58x



1.55x


1.73x



1.48x

AFFO Coverage - diluted

(1)

1.94x



1.84x



1.79x


1.88x



1.72x



(1)

Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

Definitions and Reconciliations of Non-GAAP Measures

Definitions

This presentation contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are net operating income ("NOI"), funds from operations attributable to common stockholders ("FFO"), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO ("AFFO"), AFFO per diluted share and net debt.

NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) the cost of funds, (2) acquisition costs, (3) advisory and administrative fees, (4) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP and gains or losses on extinguishment of debt and modification costs, (5) corporate general and administrative expenses, (6) other gains and losses that are specific to us, (7) casualty-related expenses/(recoveries) and casualty losses, (8) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional and franchise tax fees and (9) miscellaneous income. We define "Same Store NOI" as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.

FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT"), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization and impairment charges. We compute FFO in accordance with NAREIT's definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.

Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as losses on extinguishment of debt and modification costs (includes prepayment penalties and defeasance costs incurred and the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the retirement of debt and costs incurred in connection with a debt modification that are expensed), casualty-related expenses and recoveries and casualty losses, changes in fair value on derivative instruments – ineffective portion, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing and the noncontrolling interests related to these items.

AFFO makes certain adjustments to Core FFO. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, and the noncontrolling interests related to these items.

Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding.

We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts ("REITs") among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.

Reconciliations

NOI and 2018-2019 Same Store NOI for the Years Ended December 31, 2019 and 2018

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles NOI and our 2018-2019 Same Store NOI for the years ended December 31, 2019 and 2018 to net income (loss), the most directly comparable GAAP financial measure (in thousands):



For the Year Ended December 31,



2019


2018

Net income (loss)


$

99,438


$

(1,614)

Adjustments to reconcile net income (loss) to NOI:







  Advisory and administrative fees



7,500



7,474

  Corporate general and administrative expenses



9,613



7,808

  Casualty-related recoveries

(1)


(34)



(663)

  Casualty losses



3,488



  Miscellaneous income



(587)



  Property general and administrative expenses

(2)


1,517



1,294

  Depreciation and amortization



69,086



47,470

  Interest expense



37,385



28,572

  Loss on extinguishment of debt and modification costs



2,869



3,576

  Gain on sales of real estate



(127,684)



(13,742)

NOI


$

102,591


$

80,175

Less Non-Same Store







  Revenues



(62,429)



(32,871)

  Operating expenses



25,799



14,491

Same Store NOI


$

65,961


$

61,795



(1)

Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries).



(2)

Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.



NOI and 2017-2019 Same Store NOI for the Years Ended December 31, 2019, 2018 and 2017

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our 2017-2019 Same Store NOI for the years ended December 31, 2019, 2018 and 2017 to net income (loss), the most directly comparable GAAP financial measure (in thousands):



For the Year Ended December 31,



2019


2018


2017

Net income (loss)


$

99,438


$

(1,614)


$

56,359

Adjustments to reconcile net income (loss) to NOI:










  Advisory and administrative fees



7,500



7,474



7,419

  Corporate general and administrative expenses



9,613



7,808



6,275

  Casualty-related recoveries

(1)


(34)



(663)



(287)

  Casualty losses



3,488





  Miscellaneous income



(587)





  Property general and administrative expenses

(2)


1,517



1,294



1,130

  Depreciation and amortization



69,086



47,470



48,752

  Interest expense



37,385



28,572



29,576

  Loss on extinguishment of debt and modification costs



2,869



3,576



5,719

  Gain on sales of real estate



(127,684)



(13,742)



(78,365)

NOI


$

102,591


$

80,175


$

76,578

Less Non-Same Store










  Revenues



(82,360)



(51,987)



(53,811)

  Operating expenses



34,756



23,702



25,437

Same Store NOI


$

54,987


$

51,890


$

48,204



(1)

Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries).



(2)

Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.



NOI and Q4 Same Store NOI for the Three Months Ended December 31, 2019 and 2018

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our Q4 Same Store NOI for the three months ended December 31, 2019 and 2018 to net loss, the most directly comparable GAAP financial measure (in thousands):



For the Three Months Ended December 31,



2019


2018

Net loss


$

(13,306)


$

(4,782)

Adjustments to reconcile net loss to NOI:







  Advisory and administrative fees



1,887



1,888

  Corporate general and administrative expenses



2,300



2,077

  Casualty-related expenses/(recoveries)

(1)


(60)



39

  Casualty losses



3,488



  Miscellaneous income



(587)



  Property general and administrative expenses

(2)


448



364

  Depreciation and amortization



23,394



13,832

  Interest expense



10,747



7,833

  Loss on extinguishment of debt and modification costs





  Gain on sales of real estate



16



NOI


$

28,327


$

21,251

Less Non-Same Store







  Revenues

(3)


(16,158)



(7,305)

  Operating expenses

(3)


6,649



3,268

Same Store NOI

(3)

$

18,818


$

17,214



(1)

Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses.



(2)

Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.



(3)

Amounts for the three months ended December 31, 2019 and 2018 are derived from the operations of our Q4 Same Store and Non-Same Store properties.



Reconciliation of Debt to Net Debt

 (dollar amounts in thousands)

FY 2019



FY 2018



FY 2017


Total mortgage debt

$

1,193,528



$

845,713



$

762,404


Credit facilities


218,000







30,000


Bridge facility








8,597


  Adjustments to arrive at net debt:












Cash and cash equivalents


(25,671)




(19,864)




(16,036)


Restricted cash held for value-add upgrades and green improvements


(21,903)




(5,209)




(9,052)


Net Debt

$

1,363,954



$

820,640



$

775,913


Enterprise Value (1)

$

2,499,954



$

1,644,640



$

1,363,913


Leverage Ratio


55

%



50

%



57

%



(1)

Enterprise Value is calculated as Market Capitalization as of December 31, 2019 plus Net Debt.



Guidance Reconciliations of NOI, Same Store NOI, Pro Forma NOI, FFO, Core FFO and AFFO

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our 2020 NOI guidance to our net income (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2020 and for the three months ended March 31, 2020 (in thousands):



For the Year Ended

December 31, 2020


For the Three Months Ended
March 31, 2020



Mid-Point (1)


Mid-Point (1)

Net income


$

20,806


$

27,333

Adjustments to reconcile net loss to NOI:







  Advisory and administrative fees



7,500



1,875

  Corporate general and administrative expenses



9,534



2,384

  Property general and administrative expenses

(2)


1,500



375

  Depreciation and amortization



75,000



18,750

  Interest expense



46,734



12,097

  Loss on extinguishment of debt and modification costs



871



701

  Gain on sales of real estate



(39,695)



(33,918)

NOI


$

122,250


$

29,597

Less Non-Same Store







  Revenues

(3)


(83,269)




  Operating expenses

(3)


34,335




Same Store NOI

(3)

$

73,316






(1)

Mid-Point estimates shown for full year and first quarter 2020 guidance. Assumptions made for full year and first quarter 2020 NOI guidance include the Same Store operating growth projections included in the "2020 Full Year Guidance Summary" section of this release and the effect of the acquisition and dispositions throughout the fiscal year.



(2)

Adjustment to net income to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.



(3)

Amounts are derived from the results of operations of our pro forma Full Year 2020 Same Store properties and Non-Same Store properties. There are 25 properties in our pro forma Full Year 2020 Same Store pool.



The following table reconciles our 2020 NOI guidance to our 2020 Pro Forma NOI guidance (in thousands):


For the Year Ended

December 31, 2020


Mid-Point

2020 NOI guidance

$

122,250

Adjustments to reconcile Guidance NOI to Pro Forma NOI:



  NOI lost on forecast assets for sale


3,310

  Pro Forma Cutter's Point NOI


1,200

  NOI gained on forecast acquisitions


(1,840)

2020 Pro Forma NOI guidance

$

124,920

The following table reconciles our FFO, Core FFO and AFFO guidance to our net income (the most directly comparable GAAP financial measure) guidance for the year ended December 31, 2020 (in thousands, except per share data):


For the Year Ended December 31, 2020


Mid-Point

Net income

$

20,806

Depreciation and amortization


75,000

Gain on sales of real estate


(39,695)

Adjustment for noncontrolling interests


(168)

FFO attributable to common stockholders


55,943

FFO per share - diluted (1)

$

2.11




Loss on extinguishment of debt and modification costs


871

Amortization of deferred financing costs - acquisition term notes


1,573

Adjustment for noncontrolling interests


(7)

Core FFO attributable to common stockholders


58,380

Core FFO per share - diluted (1)

$

2.21




Amortization of deferred financing costs - long term debt


1,584

Equity-based compensation expense


4,934

Adjustment for noncontrolling interests


(20)

AFFO attributable to common stockholders


64,878

AFFO per share - diluted (1)

$

2.45




Weighted average common shares outstanding - diluted


26,463



(1)

For purposes of calculating per share data, we assume a weighted average diluted share count of approximately 26.5 million for the full year 2020.



The following table reconciles our NOI to our net income (loss) for the years ended December 31, 2016 and 2015 (in thousands):


For the Year Ended December 31,


2016



2015

Net income (loss)

$

25,888



$

(10,992)

Adjustments to reconcile net income (loss) to NOI:







  Advisory and administrative fees


6,802




5,565

  Corporate general and administrative expenses


4,014




2,455

  Casualty-related expenses/(recoveries)


151




25

  Property general and administrative expenses


879




1,109

  Depreciation and amortization


35,643




40,801

  Interest expense


20,167




17,817

  Loss on extinguishment of debt and modification costs


1,722




652

  Gain on sales of real estate


(25,932)




  Acquisition costs


386




2,975

NOI

$

69,720



$

60,407

The following table reconciles our FFO to our net income (loss) for the years ended December 31, 2016 and 2015 (in thousands):


For the Year Ended December 31,


2016


2015

Net income (loss)

$

25,888


$

(10,992)

Depreciation and amortization


35,643



40,801

Gain on sales of real estate


(25,932)



Adjustment for noncontrolling interests


(4,583)



(4,170)

FFO attributable to common stockholders


31,016



25,639







FFO per share - basic

$

1.46


$

1.20

FFO per share - diluted

$

1.46


$

1.20







Acquisition costs


386



2,975

Loss on extinguishment of debt and modification costs


1,722



652

Change in fair value on derivative instruments - ineffective portion


(1,683)



Amortization of deferred financing costs - acquisition term notes




Adjustment for noncontrolling interests


(94)



(322)

Core FFO attributable to common stockholders


31,347



28,944







Core FFO per share - basic

$

1.48


$

1.36

Core FFO per share - diluted

$

1.47


$

1.36







Amortization of deferred financing costs - long term debt


1,423



1,081

Equity-based compensation expense


825



Adjustment for noncontrolling interests


(140)



(92)

AFFO attributable to common stockholders


33,455



29,933







AFFO per share - basic

$

1.58


$

1.41

AFFO per share - diluted

$

1.57


$

1.41







Weighted average common shares outstanding - basic


21,232



21,294

Weighted average common shares outstanding - diluted


21,314



21,294

 

Cision

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SOURCE NexPoint Residential Trust, Inc.