NexPoint Cuts 2026 Core FFO Midpoint to $2.22 Per Share

NexPoint Residential Trust Inc. lowered its 2026 Core funds from operations (Core FFO) outlook after third-quarter same-store net operating income (NOI) fell 8.2% year over year. The trust released its results Tuesday, Nov. 3, for the quarter ended Sept. 30.

NexPoint now projects full-year Core FFO of $2.17 to $2.27 per diluted share, putting the midpoint at $2.22. Its previous midpoint was $2.45. The company also moved its same-store NOI outlook to a decline of 3.6% to 5.1%, with a 4.3% decline at the midpoint. Its earlier midpoint forecast called for a 1% decrease.

Third-quarter revenue was $64.468 million, up from $62.829 million in the same period a year earlier. Net loss attributable to common stockholders widened to $11.486 million, or $0.45 per diluted share, from $7.790 million, or $0.31 per diluted share.

Funds from operations (FFO) came to $0.46 per diluted share, compared with $0.63 a year earlier. Core FFO was $0.52 per diluted share, down from $0.70. FFO and Core FFO are non-GAAP measures that NexPoint presents alongside its net loss.

Same-store NOI was $35.649 million, down from $38.819 million in the prior-year quarter. Occupancy in those properties was 92.9%, a year-over-year decline of 70 basis points.

NexPoint attributed the wider quarterly loss in part to property operating costs rising $2.0 million and interest costs increasing $2.6 million from a year earlier. Revenue grew by $1.6 million, partly offsetting those increases.

The publicly traded trust focuses on multifamily housing aimed at middle-income renters, with properties concentrated mainly in the Southeastern and Southwestern United States. Its updated estimates cover the full 2026 fiscal year.