At a glance
Nexpoint Residential Trust Inc is worth $455.6M. Revenue fell 3.2% to $251.3M in fiscal 2025, at a loss; over 5 years it has grown 4.2% a year. It pays a 11.89% dividend yield, raised every year for at least 9 years, and returned $257.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −38.0% over the past year with dividends reinvested and −20.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 50.1% in the 2020 crash (S&P 500: 33.7%) and 57.3% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
NexPoint Residential Trust is a real estate investment trust (REIT). A REIT is a company that owns income-producing property and must pay out most of its taxable income as dividends. NexPoint buys older, mid-tier apartment complexes, called Class B properties, in large cities and their suburbs. Most are in the Southeastern and Southwestern United States. As of December 31, 2025, it owned 36 properties with 13,305 units in seven states. They were about 92.7% occupied, with average rent after discounts of $1,492 a month per occupied unit. It aims to serve low- and moderate-income renters.
Almost all revenue comes from rent. Total revenue was $251.3 million in 2025, down 3.2% from 2024. Its "value-add" plan is to buy buildings that earlier owners underinvested in, renovate the units and raise rents. As of December 31, 2025, it had renovated 9,866 units since it started, at an average cost of $9,115 each. Rents on those units rose by an average of $158 a month, or 13.5%.
It reports one business segment and gives no revenue breakdown by region. It is externally managed. An adviser owned by its sponsor makes all investment decisions and runs nearly all operations, so the company expects to have just one accounting employee of its own. In December 2025 it bought Sedona at Lone Mountain, a 321-unit property in Las Vegas, for $73.25 million.
Price history
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NXRT -38.0% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $64.6M, up 2.3% from a year earlier, and net income was $-8.6M.
- For fiscal 2025, revenue was $251.3M (-3.2% year over year; +4.2% a year from FY2020 to FY2025) with a -12.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.2% watch |
|---|---|
| Operating margin | 11.1% watch |
| Return on equity (FY2025) | -10.8% weak |
| Return on assets (FY2025) | -1.7% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $204.8M | $44.0M | — |
| FY2021 | $219.2M | $23.0M | — |
| FY2022 | $264.0M | $-9.3M | — |
| FY2023 | $277.5M | $44.3M | — |
| FY2024 | $259.7M | $1.1M | — |
| FY2025 | $251.3M | $-32.0M | — |
Valuation snapshot
| Market value | $455.6M |
|---|---|
| P/E ratio | — |
| Dividend yield | 11.89% |
Rank among 1514 US companies
Market value at each year end
Nexpoint Residential Trust’s market value went from $470.5M at the end of 2016 to $455.6M on Oct 28, 2026, down 3%; since the end of 2025 it is down 40%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $455.6M | -40.3% |
| 2025 | $763.5M | -28.0% |
| 2024 | $1.06B | +20.0% |
| 2023 | $884.0M | -20.5% |
| 2022 | $1.11B | -47.5% |
| 2021 | $2.12B | +103.3% |
| 2020 | $1.04B | -7.6% |
| 2019 | $1.13B | +54.5% |
| 2018 | $728.9M | +23.9% |
| 2017 | $588.4M | +25.1% |
| 2016 | $470.5M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NXRT price data to Oct 28, 2026 | -36.9% | -38.0% | -7.0% | -20.2% | +3.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -36.9% |
| 2025 | -23.3% |
| 2024 | +27.3% |
| 2023 | -17.4% |
| 2022 | -46.7% |
| 2021 | +102.9% |
| 2020 | -2.9% |
| 2019 | +32.0% |
| 2018 | +29.9% |
| 2017 | +29.8% |
| 2016 | +79.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 50.1% over that stretch · deepest drop along the way 50.1%, back to its old high 12.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 50.1% over that stretch · deepest drop along the way 57.3%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 2 open-market purchases ($201K) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 5, 2026 | Matt McGraner See Remarks | buy | $101K |
| Oct 1, 2026 | Matt McGraner See Remarks | buy | $100K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 8% | Sep 30, 2026 |
| STATE STREET CORPORATION | 4.3% | Jun 30, 2026 |
| Vanguard Portfolio Management | 4.04% | Sep 30, 2026 |
ETFs with the most weight in NXRT
| HAUS Residential REIT ETF | 4.27% |
| RDOG ALPS REIT Dividend Dogs ETF | 2.21% |
| TXSS Texas Capital Texas Small Cap Equity Index ETF | 1.61% |
| BLDG Cambria Global Real Estate ETF | 1.08% |
| SMDV ProShares Russell 2000 Dividend Growers ETF | 0.95% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.72% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 0.36% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.24% |
What could go wrong
- Legal troubles tied to Highland and Dondero. The 10-K warns that the Chapter 11 bankruptcy of Highland Capital Management (a court-supervised restructuring) and litigation against James Dondero and others could seriously harm the business and its results.
- Outside adviser with conflicts of interest. An adviser owned by its sponsor makes all investment decisions and collects substantial fees. The 10-K flags conflicts of interest in that fee structure, and the adviser can resign on 30 days' notice.
- Value-add strategy carries extra risk. The 10-K says renovating underinvested buildings is riskier than more conservative strategies. Upgrades may cost more or lift rents less than planned, and it expects such deals to get harder to find.
- Concentrated in apartments in two regions. As of December 31, 2025, all 36 properties were apartments, mostly in the Southeastern and Southwestern US. A local downturn, more competing apartments or cheaper home buying there could cut occupancy and rents.
- Heavy debt and interest-rate exposure. The 10-K calls its debt substantial. As of June 30, 2026, equity was $248 million against $1.88 billion of assets. Floating-rate loans cost more when rates rise, and refinancing may come on worse terms.
- Short leases and slipping occupancy. Short leases mean falling market rents hit income fast. At properties owned in both 2024 and 2025, year-end occupancy fell to 92.7% from 94.7%, and average rent after discounts was flat at $1,489.
Recent events
- Quarterly results released
- Major agreement signed
- Shareholder vote results
- Quarterly results released
- Quarterly results released
For income and retirement investors
NXRT's dividend per share rose every year from 2016 to 2025. That is at least nine straight increases. It climbed from $1.28 in 2020 to $2.06 in 2025, about 10% a year. The company lost $1.26 per share in 2025, so earnings did not cover the payout. AFFO (adjusted funds from operations, a REIT measure of cash earnings) was $81.1 million, against $53.8 million of dividends declared. Buybacks totaled $33.4 million over 2021–2025, yet the share count rose 1.2% from November 2021 to August 2026. The yield was 11.89% as of October 28, 2026. A 38% drop in the share price over the prior year pushed it up.
The stock has fallen hard in downturns. It dropped 50.1% in the 2020 COVID crash and took about 12.7 months to recover. From April to October 2022 it fell 57.3%, and as of October 28, 2026, it had not regained that peak. Single stocks carry more risk than diversified funds.
Questions investors ask
How does NexPoint Residential Trust make money?
NexPoint Residential Trust makes money by renting apartments. It buys older, mid-tier Class B complexes, mainly in the Southeastern and Southwestern US, renovates units and raises rents. As of December 31, 2025, it owned 36 properties with 13,305 units in seven states. As of that date, renovated units rented for an average of $158 more per month, a 13.5% increase. Revenue was $251.3 million in 2025, nearly all of it rent.
Does NXRT raise its dividend every year?
Yes, through 2025. NXRT's dividend per share rose every year from 2016 through 2025, at least nine straight annual increases. It declared $2.06 per share for 2025, up from $1.28 in 2020, or about 10% growth a year. In the fourth quarter of 2025 it raised the quarterly dividend 3.9% to $0.53. That was its eighth increase since listing on the New York Stock Exchange. Past increases do not guarantee future ones, and the company posted a net loss in 2025.
Why is NXRT's dividend yield so high?
Mainly because the share price fell. The yield was 11.89% as of October 28, 2026. On the $30.10 closing price on December 31, 2025, it was 7.0%. A yield is the annual dividend divided by the share price, so when the price drops, the yield rises. The shares fell 36.9% between the start of 2026 and October 28, 2026. A yield this high can reflect market worries about the business, its debt or the dividend's future.
Why does NXRT pay a dividend when it lost money?
Because net income is not the main yardstick for a REIT's dividend. Net income subtracts depreciation, a large non-cash charge for property owners. NXRT lost about $32 million in 2025, mainly because gains from property sales fell by $54.2 million from 2024. Its adjusted funds from operations (AFFO), a REIT measure of cash earnings, was $81.1 million, down 3.0%. Dividends declared were $53.8 million. AFFO is not a standard accounting measure and the company defines it, so it is worth reading alongside net income.
Who manages NexPoint Residential Trust?
An outside adviser does. NXRT is externally managed. An adviser wholly owned by its sponsor makes all investment decisions and runs nearly all operations. The agreement was renewed on February 23, 2026, for one year. The company pays substantial fees to the adviser and its affiliates, and the 10-K flags conflicts of interest. The adviser can resign on 30 days' notice. The 10-K also lists the Highland Capital Management bankruptcy and litigation against James Dondero as risks.