NXRT Supplement Q4 2015_FINAL.xlsx
Transcription
NXRT Supplement Q4 2015_FINAL.xlsx
NYSE: NXRT Supplemental Information 4th Quarter 2015 The Unaudited Reconciliation Tables and Supplemental Disclosure of NexPoint Residential Trust, Inc. ("NXRT" or the "Company") presented herein speak only as of the date or period indicated, and NXRT does not undertake any obligation, and disclaims any duty, to update any of this information except as required by law. NXRT’s future financial performance is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect NXRT's future financial results are discussed more fully in our reports on Form 10, Form 10-Qs and Form 8-Ks filed with the SEC. Readers are advised to refer to these reports for additional information concerning NXRT. Pictures above are illustrative of a typical NXRT value-add rehab execution as shown at Arbors on Forest Ridge in Bedford, Texas. NexPoint Residential Trust, Inc. March 8, 2016 (updated March 9, 2016) 300 Crescent Court Suite 700 Dallas, Texas 75201 Phone: 972-628-4100 www.nexpointliving.com Cautionary Statements Forward Looking Statements This presentation includes forward-looking statements. These statements reflect the current views of the Company’s management with respect to future events and financial performance. These statements include forward-looking statements with respect to the Company’s business and industry in general. Statements that include the words “expect,” “intend,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these statements. For a discussion of the factors that could change these forward-looking statements, see our filings with the SEC. The statements made herein speak only as of the date of this presentation and the Company does not undertake to update this information except as required by law. Past performance does not guarantee future results. Performance during time periods shown is limited and may not reflect the performance in different economic and market cycles. There can be no assurance that similar performance will be experienced. Non-GAAP Financial Measures 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 flow of the Company. The non-GAAP financial measures used within this presentation are funds from operations, or FFO, adjusted funds from operations, or AFFO, and net operating income, or NOI. FFO is defined by NAREIT as net income 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 noncontrolling interest as an adjustment to arrive at FFO. AFFO is calculated by adjusting our FFO by adding back items that do not reflect ongoing property operations, such as acquisition expenses, equitybased compensation expenses and the amortization of deferred loan costs. AFFO will also be adjusted to include any gains (losses) from sales of property to the extent excluded from FFO and exclude relevant noncontrolling interests. We will not have any equity-based compensation expenses unless and until our stockholders approve an amendment to the Company’s charter to remove the 1940 Act compliance requirements. NOI is calculated by adjusting net loss to add back interest, depreciation and amortization, acquisition costs, non-operating fees to affiliates, gains or losses from the sale of operating real estate assets, corporate general and administrative costs and entity level general and administrative costs that are either non-recurring in nature or incurred on behalf of us at the property for expenses such as legal, professional and franchise tax fees. We believe that the use of FFO, AFFO, and NOI, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. While FFO, AFFO, and NOI are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO, AFFO, and NOI do not purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO, AFFO, and NOI may not be comparable to FFO, AFFO, and NOI reported by other REITs. Additional Information For additional information, see our filings with the SEC including our Form 10-K for the year ended December 31, 2015 that will be filed on or before March 30, 2016. More information is also included in the Company’s information statement filed as an exhibit to the Company’s registration statement on Form 10 that was declared effective by the SEC on March 18, 2015. The final information statement is available on our website, www.nexpointliving.com, under the "Investor Relations" tab. Investors are urged to read the Form 10 and our other filings with the SEC, including our Forms 10-Q and Forms 8-K, in their entirety. When filed with the SEC, investors are urged to read in its entirety our Form 10-K for the 2015 fiscal year. 1 www.nexpointliving.com Table of Contents Company Profile 3 Financial Summary 4 Consolidated Statement of Operations 5 Reconciliation of Net Income (Loss) to FFO, AFFO and NOI 6 Balance Sheet 7 Joint Ventures Details 8 Components to Net Asset Value 9 Portfolio Operating Metrics 10 Pro Forma Same-Store Analysis 11 Same-Store Results 12 Historical Capital Expenditures 13 Debt Maturity Schedule 14 Outstanding Debt Details 15 Acquisition Details 16 Rehabilitation Details 17 Definitions 18 Reconciliation of Guidance 19 ARBORS ON FOREST RIDGE - BEFORE RENOVATION ARBORS ON FOREST RIDGE - AFTER RENOVATION Contact: Marilynn Meek Financial Relations Board Phone: 212.827.3773 Email: [email protected] 2 www.nexpointliving.com Company Profile Company Overview Operating Portfolio by Region (1) NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," and is primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser. Market Exposure (% of Units) Dallas/Fort Worth Atlanta Jacksonville Nashville District of Columbia Orlando Phoenix Charlotte Tampa Houston West Palm Beach Austin Total: We pursue investments in multifamily real property, typically with a value-add component, where we can invest capital to provide "lifestyle" amenties to "work force" and middle-income housing. Our value-add strategies seek to provide both dramatically-improved communities for our residents and outsized returns for our shareholders. As of March 8, 2016, NXRT owned 13,155 units across the U.S. in Texas, Arizona, Georgia, Tennessee, Florida, North Carolina, and the Washington D.C. Metro area. Company Snapshot Recent News • • • On October 30, 2015, NXRT acquired The Place at Vanderbilt, a 333-unit property in Fort Worth, Texas, for $19.25 million. As of December 31, 2015, NXRT owned 42 properties, consisting of 13,155 units and a portfolio occupancy of 93.9%. In Q4 2015, NXRT achieved Same Store NOI growth of 7.3%, upgraded 552 units, and reported FFO and AFFO of $6.9M and $7.4M, respectively. Exchange/Ticker Share Price (1) Insider Ownership 2015 Q4 Dividend Per Share Dividend Yield (1) Revenue & Average Rent Per Unit Revenue ($000s) $40,000 $850 $35,000 $800 $750 $700 $25,000 $650 $20,000 $600 $15,000 NYSE:NXRT $12.40 15.99% $0.206 6.65% Guidance Summary (2016 Full Year) Avg. Rent/Unit $30,000 31% 20% 8% 8% 7% 6% 6% 4% 4% 2% 2% 2% 100% (In thousands, except for per share data) Revenue (2) NOI (2) FFO/Share AFFO/Share G&A Expenses (3) Low-End Mid-Point High-End $134,500 $69,100 $1.49 $1.54 $9,600 $135,500 $70,100 $1.53 $1.58 $10,100 $136,500 $71,100 $1.57 $1.62 $10,600 $550 $10,000 $500 $5,000 $450 $0 $400 (1) As of the close of market trading March 7, 2016 (2) Gross estimates (including NCI) (3) Includes advisory and administrative expenses and other typical G&A expenses 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 3 www.nexpointliving.com Financial Summary Company Profile Q4 2015 Q4 2014 FY 2014 FY 2013 (1) $236,000 21,294 $14.00 $279,000 21,294 $13.09 $236,000 21,294 $14.00 $8,000 21,294 $14.00 $32,602 15,957 16,645 7.3% $20,435 9,749 10,686 $117,658 57,276 60,382 $43,150 21,056 22,094 $316 187 129 Per Share FFO AFFO Dividends $0.33 $0.35 $0.206 $0.21 $0.32 $0.000 $1.20 $1.38 $0.618 $0.17 $0.54 $0.000 ($0.00) $0.01 $0.000 Portfolio Total Properties Total Units 42 13,155 32 9,428 42 13,155 32 9,428 1 314 Market Capitalization (In thousands) Shares Outstanding (In thousands) OP Units Outstanding Share Price (as of the last day of the quarter, respectively) Earnings Profile Revenues (In thousands) Expenses (In thousands) NOI (In thousands) Same-Store NOI Growth (%) Occupancy Average Rent per Unit Completed Rehab Units YTD Completed Rehab Units (2) Debt Summary Total Mortgage Debt Outstanding (In thousands) Bridge Facility (In thousands) Leverage Ratio (Debt to Enterprise Value) $279,000 21,294 $13.09 FY 2015 93.9% $803 552 2,313 93.2% $770 208 330 93.9% $803 2,313 93.2% $770 330 94.3% $443 - $682,050 $29,000 0.69 $486,575 0.63 $682,050 $29,000 0.69 $486,575 0.63 $0 0.00 Capital Expenditures Maintenance Capital Expenditures Expansion Capital Expenditures $0 $0 $0 $0 $0 (1) Miramar was purchased October 31, 2013. "FY 2013" shown above is for November-December 2013 only. (2) Inclusive of all full and partial interior upgrades completed through December 31, 2015. 4 www.nexpointliving.com Consolidated Statement of Operations In thousands, except for per share data Q4 2015 Q4 2014 FY 2015 FY 2014 FY 2013 (1) Revenues: Rental income Other property revenue Total Revenues $28,620 3,982 $32,602 $18,233 2,202 $20,435 $103,804 13,854 $117,658 38,578 4,572 $43,150 $284 32 $316 Operating Expenses: Property operating expenses Acquisition-related expenses Real estate taxes and insurance Property management fees Advisory and administrative fees Corporate general and administrative expenses Property general and administrative expenses Depreciation and amortization Total Operating Expenses $9,453 188 4,501 974 1,395 807 1,623 10,005 $28,947 $5,877 2,287 2,669 602 912 844 10,220 $23,411 $34,252 2,975 15,231 3,501 5,565 2,455 5,401 40,801 $110,181 12,348 8,639 5,743 1,289 1,653 2,091 21,645 $53,408 $122 137 36 13 22 16 142 $488 Operating Income (Loss): Interest income Interest expense Income from continuing operations before income taxes Income tax (expense)/benefit Income/(loss) from continuing operations Net income/(loss) Net income/(loss) attributable to redeemable non-controlling int (OP units) Net income/(loss) attributable to non-controlling interests Net Income/(Loss) to NXRT $3,655 (5,600) (1,945) (1,945) (1,945) 172 ($2,116) ($2,975) (3,158) (6,134) (6,134) (6,134) (562) ($5,572) $7,477 (18,469) (10,992) (10,992) (10,992) (160) (10,832) ($10,258) (7,274) (17,532) (17,532) (17,532) (1,932) ($15,600) ($172) (172) (172) (172) ($172) Other Comprehensive Income/(Loss): Change in cash flow hedges, net Total Comprehensive Income/(Loss) Comprehensive income/(loss) attributable to non-controlling interests Comprehensive Income/(Loss) to NXRT 117 ($1,828) 285 ($2,113) (244) ($6,377) ($6,377) (391) ($11,383) (93) ($11,290) (306) ($17,838) (1,962) ($15,876) ($172) ($172) 21,294 21,294 21,294 21,294 21,294 21,294 21,294 21,294 Common shares outstanding - basic Common shares outstanding - diluted 21,294 21,294 (1) Miramar was purchased October 31, 2013. "FY 2013" shown above is for November-December 2013 only 5 www.nexpointliving.com Reconciliation of Net Income/(Loss) to FFO, AFFO, and NOI In thousands, except for per share data Q4 2015 Q4 2014 FY 2015 FY 2014 FY 2013 (1) RECONCILIATION OF NET INCOME/(LOSS) TO FFO & AFFO Consolidated Net Income/(Loss) Add: Depreciation and amortization Gain on eminent domain Adjustment for noncontrolling interest FFO Add: Acquisition costs Gain on eminent domain Amortization of deferred loan costs Equity-based compensation expenses Adjustment for noncontrolling interest ($1,945) ($6,134) 10,005 (1,123) 10,220 469 $6,938 $4,556 $188 272 26 $2,287 157 (125) ($10,992) ($17,532) 40,801 (158) (4,012) 21,645 (563) 142 0 $3,550 ($30) 8,639 320 (1,048) 137 - $25,639 $2,975 158 1,081 (365) ($172) AFFO $7,425 $6,874 $29,488 $11,461 $107 Common shares outstanding - Diluted 21,294 21,294 21,294 21,294 21,294 FFO/AFFO per Share - Diluted FFO AFFO $0.33 $0.35 $0.21 $0.32 $1.20 $1.38 $0.17 $0.54 ($0.00) $0.01 Common Stock Dividends FFO Coverage AFFO Coverage $0.206 1.58x 1.69x $0.000 N/A N/A $0.618 1.95x 2.24x $0.000 N/A N/A $0.000 N/A N/A Consolidated Net Income/(Loss) Add: Advisory and administrative fees Corporate general and administrative fees Non-recurring property general and administrative Depreciation and amortization Interest expense Acquisition Costs ($1,945) ($6,134) ($10,992) ($17,532) ($172) 1,395 807 595 10,005 5,600 188 912 243 10,220 3,158 2,287 5,565 2,455 1,109 40,801 18,469 2,975 1,653 415 21,645 7,274 8,639 22 142 137 Net Operating Income (NOI) $16,645 $10,686 $60,382 $22,094 $129 RECONCILIATION OF NET INCOME/(LOSS) TO NOI (1) Miramar was purchased October 31, 2013. "FY 2013" shown above is for November-December 2013 only 6 www.nexpointliving.com Balance Sheet In thousands ASSETS Real estate assets Operating properties, net Construction in progress, including land Land held for development Operating real estate assets held for sale, net Total Real Estate Assets Cash and cash equivalents Accounts receivable Other receivables due to affiliates Restricted cash (2) Goodwill Real estate and escrow deposits Deferred financing costs, net Other assets, net Total Assets LIABILITIES AND EQUITY Liabilities Bridge Facility Mortgage loan payables Accounts payable and accrued liabilities Dividend payable Other payables due to affiliates Acquisition contingent consideration Security deposits, prepaid rent and other liabilities Total Liabilities Equity Common stock Additional paid-in capital Treasury stock Accumulated other comprehensive items, net Accumulated deficit Total Stockholders' Equity Redeemable non-controlling interests Non-controlling interest Total Equity Total Liabilities and Equity Share Count Details Shares Outstanding OP Units Outstanding Dilution Total Share Equivalents Outstanding FY 2015 FY 2014 FY 2013 (1) $897,536 5,346 $902,882 16,226 2,122 46,869 6,213 1,961 $976,273 $621,996 6,530 $628,526 12,662 1,151 47,817 4,632 2,569 $697,357 $8,733 240 $8,973 190 7 2,035 27 $11,232 $29,000 682,342 12,625 3,368 $727,335 486,976 10,532 20 2,305 $499,833 15 3 50 $68 $213 240,625 (697) (18,593) $221,548 27,390 $248,938 $976,273 $176,549 (306) $176,243 21,281 $197,524 $697,357 21,294 21,294 21,294 21,294 $11,163 $11,163 $11,163 $11,232 21,294 21,294 (1) Miramar was purchased October 31, 2013 (2) Includes approximately $24.5M reserved for value-add upgrades as of December 31, 2015 7 www.nexpointliving.com Joint Ventures Details In thousands, except for property and unit data # of Properties # of Units NXRT Ownership Percentage Balance Sheet Information as of 12/31/15 ASSETS Real Estate Assets (Gross) Depreciation & Amortization Real Estate Assets (Net) Cash & Equivalents Other Tangible Assets Other Intangible Assets Total Assets LIABILITIES Bridge Facility Mortgage Debt Outstanding Other Liabilities Total Liabilities Statement of Operations for the Full Year 2015 Total Revenues Total Property Operating Expenses Net Operating Income (NOI) NXRT's Share of NOI (Loss) Corporate G&A Depreciation & Amortization Other Expenses & Income Net Income (Loss) NXRT's Share of Net Income (Loss) 8 Wholly Owned Portfolio NXRT/BH Portfolio NXRT/BH/Other Portfolio Consolidated Total 1 314 100% 38 11,963 90.8% 3 878 80% 42 13,155 90% $10,831 (744) 10,087 277 308 210 $10,882 $849,797 (35,115) 814,682 15,122 46,741 4,709 $881,255 $82,127 (4,014) 78,113 826 3,903 1,295 $84,136 $942,755 (39,873) 902,882 16,226 50,952 6,213 $976,273 $8,400 369 $8,769 $608,822 14,707 $623,529 $65,120 917 $66,037 $29,000 $682,342 15,993 $727,335 $2,248 1,165 $1,083 $1,082.97 $105,396 51,307 $54,089 $49,107.52 $10,014 4,804 $5,210 $4,180.37 $117,658 57,276 $60,382 $54,365.16 ($5) $0 ($141) (37) $900 $900 ($3,517) (11) (19,788) (2,513) $28,261 $25,658 ($24) 0 (1732) (15) $3,439 $2,760 ($3,546) (11) (21,660) (2,565) $32,600 $29,351 www.nexpointliving.com Components to Net Asset Value $ amounts in thousands, except for per share data Est. % NOI Ownership Contribution (%) (1) Texas 90% 28.1% Dallas 90% 2.6% Houston 90% 1.6% Austin Cap Rate Range (2) Min Max Property Value Range (pro rata) (1) Min Max 5.8% 6.3% 6.0% 6.3% 6.8% 6.5% $267,983 $22,516 $14,853 $300,140 $25,057 $16,579 North Carolina Charlotte 90% 4.8% 6.3% 6.8% $41,732 $46,441 Georgia Atlanta 90% 20.1% 6.0% 6.5% $183,295 $204,605 Tennessee Nashville 90% 8.1% 6.0% 6.5% $73,562 $82,114 NAV Summary Component Min Max Tangible Assets (pro rata) Real Estate $927,901 $1,035,822 42,702 Cash(3) 17,546 Other Tangible Assets (at Book) Value of Assets (pro rata) Tangible Liabilities Bridge Facility Mortgage Notes Payable Total Debt Outstanding Other Tangible Liabilities (at Book) Partner's share of liabilities (4) Florida Jacksonville Orlando Tampa West Palm Beach 90% 90% 90% 90% 6.9% 8.7% 4.0% 1.5% 6.0% 5.8% 6.0% 6.3% 6.5% 6.3% 6.5% 6.5% $62,557 $82,443 $36,615 $13,342 $69,830 $92,336 $40,872 $14,297 Washington D.C. Other 80% 8.3% 5.6% 6.0% $72,577 $80,125 Arizona Phoenix 95% 5.4% 5.5% 6.0% $56,426 $63,427 Total / Ave 90% 100.0% 5.9% 6.4% $927,901 $1,035,822 NOI ESTIMATE Estimated 1Q 2016 NOI Range (1) Estimated 1Q 2016 NOI Guidance Annualized (1) $1,096,070 $29,000 682,050 711,050 15,993 72,008 Value of Liabilities (pro rata) Net Leverage (mid-point) $655,035 $655,035 63% Net Asset Value (pro rata) $333,114 Shares Outstanding OP Units Outstanding Dillution Est. NAV / Share $441,035 21,294 0 0 $15.64 $20.71 IMPLIED VALUATION METRICS $927,901 $1,035,822 Implied Real Estate Value (pro rata) 10% Add Back NCI $14,847 $15,700 $16,645 2Q 2015 NOI Actual 3Q 2015 NOI Actual 4Q 2015 NOI Actual $988,149 Low 16,450 High 16,950 $65,800 $67,800 Implied Real Estate Value No of Units (Dec. 31, 2015) Implied Value/Apartment Unit $1,034,630 $1,154,965 13,155 $78.6 $87.8 (1) Assumes we own all properties for the full year 2016 (2) Management estimates based on independent third party review of our properties (3) Includes Cash & cash equivalents and approximately $25.4M that is held for value-add upgrades (4) Partner's share of liabilities excludes Bridge Facility 9 www.nexpointliving.com Portfolio Operating Metrics In thousands, except for unit counts, all numbers @ 100% ownership Owned Properties by Region Ownership Unit Count (%) Portfolio Total Average Rental Rates Q4 2015 Q4 2014 Occupancy % Change Q4 2015 Q4 2014 Q4 2014 (1) -6 bps -292 bps -100 bps -37 bps $8,127 673 460 9,260 $5,011 402 431 5,844 62.2% 67.5% 6.8% 58.5% 92.9% 92.9% 243 bps 243 bps 1,318 1,318 1,236 1,236 6.6% 6.6% 94.6% 94.6% 93.5% 93.5% 109 bps 109 bps 5,613 5,613 3,385 3,385 65.8% 65.8% 6.0% 6.0% 96.1% 96.1% 95.2% 95.2% 87 bps 87 bps 2,315 2,315 2,076 2,076 11.5% 11.5% 679 1,036 728 0 761 6.2% -8.3% 7.5% N/A 8.3% 93.9% 94.6% 94.1% 97.3% 94.4% 94.3% 95.0% 92.2% 0.0% 93.8% -36 bps -42 bps 191 bps N/A 59 bps 2,204 2,122 1,233 579 6,138 2,091 662 1,152 3,905 5.4% 220.7% 7.0% N/A 57.2% 976 976 988 988 -1.2% -1.2% 91.8% 91.8% 86.8% 86.8% 501 bps 501 bps 2,311 2,311 1,788 1,788 29.3% 29.3% 803 803 0 N/A N/A N/A 91.7% 91.7% 0.0% N/A N/A N/A 1,667 1,667 0 0 93.9% 93.2% 75 bps $28,620 $18,233 90.5% 90.0% 90.0% 90.4% 4,084 240 200 4,524 $747 1,010 816 764 $714 936 772 736 4.6% 7.9% 5.7% 3.8% 93.3% 93.3% 94.0% 93.4% 93.4% 96.3% 95.0% 93.7% North Carolina Charlotte Average/Total 90.0% 90.0% 577 577 817 817 794 794 3.0% 3.0% 95.3% 95.3% Georgia Atlanta Average/Total 90.0% 90.0% 2,612 2,612 786 786 738 738 6.4% 6.4% Tennessee Nashville Average/Total 90.0% 90.0% 1,038 1,038 804 804 759 759 Florida Jacksonville Orlando Tampa West Palm Beach Average/Total 90.0% 90.0% 90.0% 90.0% 90.0% 1,114 830 576 222 2,742 721 950 782 980 825 Washington D.C. Other Average/Total 80.2% 80.2% 878 878 Arizona Phoenix Average/Total 95.0% 95.0% 784 784 90% 13,155 bps ∆ Q4 2015 (1) Texas Dallas Houston Austin Average/Total Average/Total: Total Rental Revenue $803 $770 4.2% ` % Change N/A N/A 57.0% (1) Only includes partial months for acquisitions made during the quarter 10 www.nexpointliving.com Pro Forma Same-Store Analysis (1) In thousands, except for unit counts Pro Forma Same Store Portfolio Details Total Units Q4 2015 Q4 2014 13,155 13,155 Same Store Rental Revenue Same Store Other Revenue Same Store Revenue $28,843 4,011 $32,854 $27,125 3,262 $30,387 Same Store Property Operating Expenses Pro Forma Same Store NOI 16,300 $16,554 14,993 $15,394 Q4 2015 Property Operating Expenses Detail Property Taxes Payroll Repairs & Maintenance Office Operations Utilities Insurance Marketing Property Management Fee Total Q4 2014 % Change FY 2015 FY 2014 % Change 13,155 13,155 6.3% 23.0% 8.1% $112,527 14,901 $127,428 $107,371 12,691 $120,062 4.8% 17.4% 6.1% 8.7% 7.5% 62,336 $65,092 60,521 $59,541 3.0% 9.3% % Change FY 2015 FY 2014 % Change $3,756 4,073 2,546 810 2,880 795 458 982 $3,030 3,829 2,649 665 2,680 870 346 924 23.9% 6.4% -3.9% 21.8% 7.5% -8.6% 32.4% 6.3% $13,070 15,771 10,186 3,452 11,020 3,269 1,809 3,760 $11,362 15,531 11,001 3,284 10,692 3,257 1,454 3,940 15.0% 1.5% -7.4% 5.1% 3.1% 0.3% 24.4% -4.6% 16,300 14,993 8.7% 62,336 60,521 3.0% (1) The Pro Forma Same Store Analysis combines unaudited financial statements provided by the respective sellers with NXRT's actual unaudited financial statements. The trailing 3 month average was used to estimate performance for months in which we were not provided the financial statements from the sellers. Given the limited amount of time NXRT has operated as a public company, this information is being presented to give representative performance metrics on our entire portfolio. 11 www.nexpointliving.com Same Store Results In thousands, except for unit counts Same Store Portfolio Details Same Store Total Units Same Store Occupied Units Same Store Ending Occupancy Same Store Average Rent per Unit Same Store Rental Revenue Same Store Other Revenue Same Store Revenue Same Store Property Operating Expenses Same Store NOI Q4 2015 (1) 7,532 7,097 94.2% $793 Total 7,532 6,992 92.8% $753 % Change 1.50% 139 bps 5.3% FY 2015 (2) 314 290 92.4% $596 FY 2014 (2) 314 292 93.0% $546 % Change -0.7% -64 bps 9.0% $16,489 2,278 $18,767 $15,327 1,828 $17,156 7.6% 24.6% 9.4% $1,979 263 $2,242 $1,730 214 $1,944 14.4% 22.9% 15.3% 9,576 $9,191 8,589 $8,567 11.5% 7.3% 1,147 $1,096 1,127 $817 1.7% 34.2% Q4 2015 (1) Property Operating Expenses Detail Property Taxes Payroll Repairs & Maintenance Office Operations Utilities Insurance Marketing Property Management Fee Q4 2014 (1) Q4 2014 (1) % Change $2,243 2,295 1,428 523 1,843 461 225 557 $1,781 2,096 1,491 441 1,560 516 195 508 25.9% 9.5% -4.2% 18.6% 18.2% -10.7% 15.6% 9.6% 9,576 8,589 11.5% FY 2015 (2) FY 2014 (2) % Change $176 337 211 81 196 42 27 78 $167 335 196 74 182 82 14 77 5.1% 0.5% 7.8% 9.5% 7.6% -49.1% 93.4% 0.9% 1,147 1,127 2% (1) For the fourth quarter of 2015, our same store pool consisted of 25 properties: Miramar, Arbors on Forest Ridge, Cutter's Point, Eagle Crest, Meridian, Silverbrook, Timberglen, Toscana, The Grove at Alban, Willowdale Crossing, Edgewater at Sandy Springs, Beechwood Terrace, Willow Grove, Woodbridge, Abbington Heights, Colonial Forest, Courtney Cove, Park at Blanding, Park at Regency, The Summit at Sabal Park, Jade Park, Mandarin Reserve, Timber Creek, Belmont at Duck Creek, and Radbourne Lake. (2) Miramar was purchased October 31, 2013 and it is the only property eligible for a full year same-store comparison. 12 www.nexpointliving.com Historical Capital Expenditures Q4 2015 In thousands Capital Expenditures Acquisition Capital Expenditures Rehab Capital Expenditures (1) Total Capital Expenditures Historical Cap Ex Composition (Oct '13 - Dec '15) Q4 2014 % Change FY 2015 FY 2014 % Change $19,250 9,024 $150,900 7,111 -87.2% 26.9% $277,434 35,097 $624,325 13,209 -55.6% 165.7% $28,274 $158,011 -82.1% $312,531 $637,534 -51.0% Capital Expenditures In Millions Acquistion Rehab 5% 95% $285 $151 $148 $162 $75 $9 $41 $0.2 4Q13 $0.6 $0.8 1Q14 2Q14 $4.8 3Q14 $7.1 4Q14 $7.4 1Q15 $21 $19 $8.1 $10.5 $9.0 2Q15 3Q15 4Q15 (1) Includes interior, exterior, and common area capital expenditures 13 www.nexpointliving.com Debt Maturity Schedule Debt Maturities and Principal Payments 2016 In thousands Floating Rate Debt Mortgage Notes Payable Bridge Facility Total Floating Debt Fixed Rate Debt Mortgage Notes Payable Unsecured Notes Total Fixed Debt Total Consolidated Debt Total Debt (Pro-Rata) Weighted Avg. Interest Rates Consolidated - Floating Consolidated - Fixed Total Consolidated 2017 2018 2019 2020 Thereafter $3,830 29,000 32,830 $7,136 7,136 $12,098 12,098 $12,893 12,893 $72,008 72,008 $528,861 528,861 $636,825 29,000 665,825 $789 789 $829 829 $11,593 11,593 $678 678 $702 702 30,634 30,634 $45,225 45,225 $33,619 $33,619 $7,965 $7,965 $23,690 $23,690 $13,571 $13,571 $72,710 $72,710 $559,495 $559,495 $711,050 $711,050 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Debt Composition Debt Maturity Schedule Fixed Rate Debt Floating Rate Debt $559,495 $600,000 6% Total $500,000 $400,000 $300,000 94% $200,000 $100,000 $33,619 $72,710 $7,965 $23,690 $13,571 2017 2018 2019 $0 2016 14 2020 Thereafter www.nexpointliving.com Outstanding Debt Details In thousands and as of December 31, 2015 Property Abbington Heights Belmont at Duck Creek Cornerstone Total/Average Miramar Arbors on Forest Ridge Cutter's Point Eagle Crest Meridian Silverbrook Timberglen Toscana The Grove at Alban Willowdale Crossings Edgewater at Sandy Springs Beechwood Terrace Willow Grove Woodbridge Colonial Forest Courtney Cove Park at Blanding Park at Regency The Summit at Sabal Park Jade Park Mandarin Reserve Timber Creek Radbourne Lake The Arbors The Knolls The Crossings at Holcomb Bridge The Crossings Sabal Palm at Lake Buena Vista Southpoint Reserve at Stoney Creek McMillan Place Barrington Mill Dana Point Heatherstone Versailles Seasons 704 The Place at Vanderbilt Total/Average Madera Point The Pointe at the Foothills Regatta Bay (2) Total/Average Total/Average 15 Principal Int. Rate Fixed Rate First Mortgage Debt 3.79% $10,403 4.68% $11,342 4.24% $23,480 $45,225 4.25% Max Note Rate Maturity Date Recourse / Non-Recourse 3.79% 4.68% 4.24% 4.25% Sep-22 Sep-18 Mar-23 No No No Feb-25 Feb-21 Feb-21 Feb-21 Feb-21 Feb-21 Feb-21 Feb-21 Apr-21 Jun-21 Aug-21 Aug-21 Aug-21 Aug-21 Sep-21 Sep-21 Sep-21 Sep-21 Sep-21 Sep-21 Oct-21 Oct-24 Oct-24 Nov-24 Nov-24 Nov-24 Nov-24 Dec-24 Jan-22 Feb-25 Mar-22 Mar-22 Mar-22 Mar-22 May-22 Jan-22 No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No Sep-20 Sep-20 Nov-20 No No No Variable Rate First Mortgage Debt with Interest Rate Caps $8,400 2.65% 5.75% 3.16% 5.75% $10,244 3.16% 5.75% $12,676 3.16% 5.75% $21,860 3.16% 5.75% $9,840 3.16% 5.75% $24,320 3.16% 5.75% $13,560 3.16% 5.75% $7,100 2.97% 6.50% $18,720 2.70% 5.75% $32,800 2.52% 5.75% $43,550 2.51% 6.00% $17,120 2.54% 6.00% $11,000 2.52% 6.25% $12,800 2.59% 6.25% $4,125 2.51% 5.75% $14,210 2.59% 7.25% $4,875 2.59% 7.01% $6,225 2.51% 5.75% $14,287 2.58% 6.49% $5,850 2.53% 5.50% $19,575 2.25% 5.96% $19,482 2.24% 6.25% $19,213 2.24% 7.11% $5,812 2.24% 7.11% $16,038 2.24% 7.35% $12,450 2.24% 7.21% $15,874 2.24% 6.26% $37,680 2.54% 6.00% $13,600 2.35% 5.92% $15,738 2.39% 5.50% $43,500 2.48% 5.50% $12,176 2.51% 5.50% $7,087 2.46% 5.50% $19,623 2.23% 5.95% $12,660 2.66% 5.75% $13,875 $577,945 2.58% 5.99% Variable Rate First Mortgage Debt without Interest Rate Caps 2.33% $13,515 2.32% $31,365 2.31% $14,000 2.32% $58,880 $682,050 2.67% - Bridge Facility (as of 12/31/2015) (1) Capacity Outstanding Type Letters of Credit Remaining Capacity Interest Rate Spread Interest Rate Maturity Date $29,000 $29,000 Floating N/A $ 4.00% 4.43% Aug-16 (1) The Bridge Facility is recourse to the Company and is secured by the equity interests in Madera Point and The Pointe at the Foothills (2) Regatta Bay loan was refinanced with a 5-year $14M variable rate loan priced at 3-Month LIBOR (subject to 25 bps floor) plus 170 bpsRemaining and 36month interest only period (subject to 2 call options at Lender's discretion 11/1/18, 11/1/19) Interest Ra Interest Ra N/A N/A N/A www.nexpointliving.com Acquisition Details In thousands, excluding unit counts and investment per unit Acquisition History Location Ownership % Units Acquisitions Occupancy at Acquisiton Transaction Date Purchase Price Investment Rehab Budget(1) Total Per Unit Q4 2013 Miramar Richardson, TX 100% 314 95.9% 10/31/2013 $8,875 $2,151 $11,026 $35,115 Q1 2014 Arbors on Forest Ridge Cutter's Point Eagle Crest Meridian Silverbrook Timberglen Toscana The Grove at Alban Bedford, TX Richardson, TX Irving, TX Austin, TX Grand Prairie, TX Dallas, TX Dallas, TX Frederick, MD 90% 90% 90% 90% 90% 90% 90% 76% 210 196 447 200 642 304 192 290 93.8% 93.4% 95.1% 95.5% 93.8% 94.7% 93.8% 93.4% 1/31/2014 1/31/2014 1/31/2014 1/31/2014 1/31/2014 1/31/2014 1/31/2014 3/10/2014 12,805 15,845 27,325 12,300 30,400 16,950 8,875 23,050 1,449 1,357 1,120 1,247 1,661 1,013 1,077 1,704 14,254 17,202 28,445 13,547 32,061 17,963 9,952 24,754 67,877 87,765 63,636 67,737 49,939 59,089 51,835 85,357 Q2 2014 Willowdale Crossing Frederick, MD 80% 432 95.1% 5/15/2014 41,000 2,033 43,033 99,613 Q3 2014 Edgewater at Sandy Spings Beechwood Terrace Willow Grove Woodbridge Abbington Heights Colonial Forest Courtney Cove Park at Blanding Park at Regency The Summit at Sabal Park Jade Park Mandarin Reserve Timber Creek Belmont at Duck Creek Radbourne Lake Atlanta, GA Antioch, TN Nashville, TN Nashville, TN Antioch, TN Jacksonville, FL Tampa, FL Orange Park, FL Jacksonville, FL Tampa, FL Daytona Beach, FL Jacksonville, FL Charlotte, NC Garland, TX Charlotte, NC 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 760 300 244 220 274 174 324 117 159 252 144 520 352 240 225 95.8% 97.3% 96.3% 95.0% 96.4% 91.4% 96.3% 94.9% 96.2% 98.4% 96.5% 95.8% 96.9% 96.3% 93.8% 7/18/2014 7/21/2014 7/21/2014 7/21/2014 8/1/2014 8/20/2014 8/20/2014 8/20/2014 8/20/2014 8/20/2014 8/20/2014 9/15/2014 9/30/2014 9/30/2014 9/30/2014 58,000 21,400 13,750 16,000 17,900 5,500 18,950 6,500 8,300 19,050 7,800 26,200 22,750 18,525 24,250 5,281 1,815 2,116 1,641 1,617 888 1,691 898 923 1,656 935 3,319 4,334 1,174 1,438 63,281 23,215 15,866 17,641 19,517 6,388 20,641 7,398 9,223 20,706 8,735 29,519 27,084 19,699 25,688 83,264 77,382 65,024 80,188 71,231 36,713 63,708 63,231 58,007 82,165 60,656 56,767 76,942 82,079 114,167 Q4 2014 The Arbors The Knolls The Crossings at Holcomb Bridge The Crossings Regatta Bay Sabal Palm at Lake Buena Vista Southpoint Reserve at Stoney Creek Tucker, GA Marietta, GA Roswell, GA Marietta, GA Seabrook, TX Orlando, FL Fredericksburg, VA 90% 90% 90% 90% 90% 90% 85% 140 312 268 380 240 400 156 94.3% 94.9% 94.0% 96.8% 88.8% 95.3% 93.6% 10/16/2014 10/16/2014 10/16/2014 10/16/2014 11/4/2014 11/5/2014 12/18/2014 7,800 21,200 16,000 21,200 18,200 49,500 17,000 1,340 2,059 2,220 2,220 1,987 1,346 1,737 9,140 23,259 18,220 23,420 20,187 50,846 18,737 65,285 74,549 67,986 61,632 84,112 127,114 120,110 Q1 2015 Cornerstone McMillan Place Barrington Mill Dana Point Heatherstone Versailles Orlando, FL Dallas, TX Marietta, GA Dallas, TX Dallas, TX Dallas, TX 90% 90% 90% 90% 90% 90% 430 402 752 264 152 388 95.3% 93.5% 94.0% 92.8% 95.4% 92.8% 1/15/2015 1/15/2015 2/6/2015 2/26/2015 2/26/2015 2/26/2015 31,550 20,984 58,000 16,235 9,450 26,165 2,662 3,011 6,688 2,165 1,648 3,917 34,212 23,995 64,688 18,400 11,098 30,082 79,562 59,688 86,021 69,698 73,015 77,530 Q2 2015 Seasons 704 West Palm Beach, FL 90% 222 98.2% 4/15/2015 21,000 1,900 22,900 103,154 Q3 2015 Madera Point Pointe at the Foothills Mesa, AZ Phoenix, AZ 95% 95% 256 528 96.9% 96.4% 8/5/2015 8/5/2015 22,525 52,275 1,808 1,372 24,333 53,647 95,049 101,604 Q4 2015 The Place at Vanderbilt Fort Worth, TX 95% 333 91.6% 10/30/2015 90% 13,155 95.0% Total/Wtd. Avg. 19,250 4,592 23,842 $910,634 $87,208 $997,842 71,598 $75,853 (1) Includes interior and exterior rehab 16 www.nexpointliving.com Rehabilitation Details In thousands, excluding unit counts Rehabs In Process Rehabilitation Projects In Process Abbington Heights Arbors on Forest Ridge Barrington Mill Beechwood Terrace Belmont at Duck Creek Colonial Forest Cornerstone Courtney Cove Cutter's Point Dana Point Eagle Crest Edgewater at Sandy Springs Heatherstone Jade Park Mandarin Reserve Meridian Miramar Park at Blanding Park at Regency Radbourne Lake Regatta Bay Silverbrook Southpoint Reserve at Stoney Creek The Arbors The Crossings The Crossings at Holcomb Bridge The Grove at Alban The Knolls The Summit at Sabal Park Timber Creek Timberglen Toscana Versailles Willow Grove Willowdale Crossing Woodbridge McMillan Place Sabal Palm at Lake Buena Vista Seasons 704 Madera Point Location Antioch, Tennessee Bedford, Texas Marietta, Georgia Antioch, Tennessee Dallas, Texas Jacksonville, Florida Orlando, Florida Tampa, Florida Richardson, Texas Dallas, Texas Irving, Texas Atlanta, Georgia Dallas, Texas Daytona Beach, Florida Jacksonville, Florida Austin, Texas Richardson, Texas Orange Park, Florida Jacksonville, Florida Charlotte, North Carolina Seabrook, Texas Grand Prairie, Texas Fredericksburg, Virginia Tucker, Georgia Marietta, Georgia Roswell, Georgia Frederick, Maryland Marietta, Georgia Tampa, Florida Charlotte, North Carolina Dallas, Texas Dallas, Texas Dallas, Texas Nashville, Tennessee Frederick, Maryland Nashville, Tennessee Dallas, Texas Orlando, Florida West Palm Beach, Florida Mesa, Arizona Total/Wtd. Avg. Rehabilitation Projects Planned Location Rehab Units: Avg. Rent Pre-Rehab Post-Rehab Rehab Returns Rent % Change ROI (3) Ownership % Units (1) Units Completed (2) 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 100% 90% 90% 90% 90% 90% 85% 90% 90% 90% 76% 90% 90% 90% 90% 90% 90% 90% 80% 90% 90% 90% 90% 95% 274 210 752 300 240 174 430 324 196 264 447 760 152 144 520 200 314 117 159 225 240 642 156 140 380 268 290 312 252 352 304 192 388 244 432 220 402 400 222 256 75 61 105 52 73 52 57 63 76 71 58 174 56 36 90 85 43 29 56 132 85 119 28 40 95 97 50 98 80 34 73 66 55 49 31 46 56 19 22 56 737 774 738 775 872 623 830 715 874 726 772 808 749 742 720 765 601 753 625 901 979 700 923 831 762 750 948 786 817 747 705 590 554 716 911 831 625 1083 998 625 824 856 889 861 976 670 921 807 989 796 850 908 823 843 808 823 652 832 705 962 1094 768 1081 914 821 826 1005 884 896 876 785 667 637 842 982 940 705 1160 1088 705 11.8% 10.6% 20.6% 11.2% 12.0% 7.5% 10.9% 12.9% 13.2% 9.6% 10.1% 12.4% 10.0% 13.7% 12.2% 7.6% 8.4% 10.5% 12.9% 6.8% 11.8% 9.8% 17.1% 10.0% 7.7% 10.1% 6.1% 12.5% 9.7% 17.4% 11.3% 13.1% 15.1% 17.6% 7.8% 13.0% 12.9% 7.1% 9.1% 12.9% 18.4% 21.8% 20.6% 15.6% 40.6% 25.0% 25.0% 24.6% 25.9% 16.4% 29.7% 19.9% 18.1% 24.7% 23.6% 20.9% 18.0% 18.4% 15.2% 66.2% 28.7% 20.8% 25.9% 19.1% 17.1% 16.2% 16.4% 19.4% 21.4% 30.5% 20.1% 22.6% 12.9% 25.3% 14.1% 16.3% 15.2% 68.2% 19.8% 15.2% 5,419 4,389 8,280 6,215 3,176 2,163 4,425 4,352 4,989 4,901 3,276 6,013 4,661 4,943 4,507 3,301 3,163 5,097 6,236 1,044 4,179 4,034 5,890 4,707 4,122 5,521 4,745 5,946 4,282 4,912 4,837 4,188 8,076 5,903 5,900 7,546 6,236 1,254 5,445 6,236 90% 12,294 2,643 $769 $863 11.4% 21.5% $4,728 Rehabs Planned Ownership % Units Units Completed Projected Avg. Rent (4) Pre-Rehab Post-Rehab Projected Rehab Returns (4) Rent % Change ROI Rehab Cost (3) Avg. $/Unit Rehab Cost Avg. $/Unit 95% 95% 528 333 - 810 748 860 792 6.2% 5.9% TBD TBD TBD TBD Total/Wtd. Avg. 95% 861 - $786 $834 6.0% TBD TBD Total/Wtd. Avg. 90% 13,155 2,643 $770 $861 11.0% TBD TBD The Pointe at the Foothills The Place at Vanderbilt Phoenix, Arizona Fort Worth, Texas (1) We do not plan to upgrade 100% of the units at each of our properties (2) Inclusive of all full and partial interior upgrades completed through December 31, 2015 (3) Inclusive of all full and partial interior upgrades completed and leased through December 31, 2015 (4) Year 1 estimates 17 www.nexpointliving.com Definitions Funds from Operations (FFO): Funds From Operations, or FFO, is defined in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) attributable to common shareholders (computed in accordance with Generally Accepted Accounting Principles), excluding real estate related depreciation and amortization, excluding gains and losses from the cumulative effects of accounting changes, extraordinary items and sales of properties, and including adjustments for non-controlling interests. Adjusted Funds from Operations (AFFO): AFFO is calculated by adjusting our FFO by adding back items that do not reflect ongoing property operations, such as acquisition expenses, equity-based compensation expenses and the amortization of deferred loan costs. AFFO will also be adjusted to include any gains (losses) from sales of property to the extent excluded from FFO and exclude relevant noncontrolling interests. Net Operating Income: Net Operating Income, or NOI, is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties, to determine trends in earnings and to compute the fair value of our properties as it is not affected by (1) the cost of funds, (2) acquisition costs, (3) non-operating fees to affiliates, (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 or (5) corporate general and administrative expenses and other gains and losses that are specific to us and (6) entity level general and administrative expenses that are either non-recurring in nature or incurred on behalf of us at the property for expenses such as legal, professional and franchise tax fees. Same Store: We define “same store” properties as properties that were in our portfolio on October 1st, 2014 and December 31, 2015. There are twenty-five properties meeting this definition as of December 31, 2015: Miramar, Arbors on Forest Ridge, Cutter's Point, Eagle Crest, Meridian, Silverbrook, Timberglen, Toscana, The Grove at Alban, Willowdale Crossing, Edgewater at Sandy Springs, Beechwood Terrace, Willow Grove, Woodbridge, Abbington Heights, Colonial Forest, Courtney Cove, Park at Blanding, Park at Regency, The Summit at Sabal Park, Jade Park, Mandarin Reserve, Timber Creek, Belmont at Duck Creek, and Radbourne Lake. 18 www.nexpointliving.com Reconciliation of Guidance Reconciliation of Guidance for 2016 NOI, FFO, and AFFO The Company anticipates that net loss will be in the range between $2.0 million to $4.0 million for the full year and between $(0.9) million to $(1.3) million for the first quarter of 2016. The difference between net loss and FFO is depreciation and amortization, which is anticipated to be $35.0 million to $36.0 million for the full year 2016. The difference between FFO and AFFO is deferred loan costs to the extent excluded from FFO, which are anticipated to total approximately $1.1 million for the full year 2016. The difference between net loss and NOI is depreciation and amortization, interest expense, the advisory and administrative fees and the reimbursement of adviser expenses, which are anticipated to total approximately $72.0 million to $74.0 million for the full year and $17.6 million to $18.0 million for the first quarter of 2016. Our guidance assumes we own all properties for the full year 2016. The Company expects approximately 21,293,825 shares to be outstanding during 2016. RECONCILIATION OF NET INCOME/(LOSS) TO NOI Consolidated Net Income/(Loss) Add: Management and administrative fees Corporate general and administrative fees Non-recurring property general and administrative Depreciation and amortization Interest expense Acquisition Costs Net Operating Income (NOI) 19 Q1 2015 Unaudited ($5,893) Q2 2015 Unaudited ($2,265) 1,277 0 255 11,610 4,009 1,932 1,439 831 315 10,050 4,239 238 $13,190 $14,847 Q3 2015 Unaudited ($890) 1,454 817 (56) 9,135 4,622 618 $15,700 Q4 2015 Unaudited ($1,945) FY 2015 ($10,992) 1,395 807 595 10,005 5,600 188 5,565 2,455 1,109 40,801 18,469 2,975 $16,645 $60,382 www.nexpointliving.com
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