Boenning & Scattergood analyst Merrill Ross maintained a Hold rating on NexPoint Residential Trust Inc (NXRT) today. The company’s shares closed on Friday at $37.16, close to its 52-week high of $38.17.
“We expect that NXRT will renovate around 60% of the units over time, allowing the property manager to increase rents more rapidly than peers because the renovated units offer an amenities package more commonly found in more expensive units. NXRT financed the $132 million acquisition with $79 million of agency debt from $52.8 million of borrowings on a new revolving credit facility, leaving a very slender slice of equity supporting the transaction. The property was acquired at a 5.33% cap rate and we imagine that it will ultimately be equitized through disposition of mature assets with lower growth prospects or through an equity raise. Even though the leverage on this property is high, at the corporate level, NXRT has considerable flexibility and a relatively valuable currency.”
According to TipRanks.com, Ross is a 1-star analyst with an average return of -0.4% and a 52.3% success rate. Ross covers the Financial sector, focusing on stocks such as Essential Properties Realty Trust Inc, Pennsylvania Real Estate Investment, and Preferred Apartment Communities.
Currently, the analyst consensus on NexPoint Residential Trust Inc is a Strong Buy with an average price target of $39.33.
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Based on NexPoint Residential Trust Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $5.25 million. In comparison, last year the company had a GAAP net loss of $4.33 million.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NXRT in relation to earlier this year.
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NexPoint Residential Trust, Inc. engages in the acquisition, management, and disposition of multifamily assets. It also focuses on providing lifestyle amenities and upgraded living spaces to low and moderate income renters in the Southeastern United States and Texas. The company was founded on September 19, 2014 and is headquartered in Dallas, TX.