Nexpoint Diversified Real Estate T Stock price
Is Nexpoint Diversified Real Estate T a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $281.46m | Revenue (TTM) = $78.07m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $548.32m | Revenue (TTM) = $78.07m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Nexpoint Diversified Real Estate T Events
Past Events
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SEP
24
Q2 2026 Earnings Call
11 days ago
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JUN
24
Q1 2026 Earnings Call
3 months ago
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Nexpoint Diversified Real Estate T — Q2 2026 Earnings Call
1. Management Discussion
Hello, everyone. Thank you for joining us and welcome to the NexPoint Diversified Real Estate Trust Second Quarter 2026 Investor Update Call. I will now hand the conference over to Kristen Griffith, Investor Relations. Kristen, please go ahead.
Good day, everyone, and welcome to NexPoint Diversified Real Estate Investor Update Call. On the call today are Matt McGraner, Executive Vice President, Chief Investment Officer; Paul Richards, Executive Vice President and Chief Financial Officer; and John Good, Chief Executive Officer of NexPoint Storage Partners and Chief Executive Officer of VineBrook Homes Trust, Inc.
Before we begin, I would like to remind everyone that this update call and accompanying presentation 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. Listeners should not place undue reliance on any forward-looking statements and are encouraged to review the company's Annual Report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risks and other factors that could affect the forward-looking statements.
The statements made during this conference call speak only as of today's date and as required by law, NXDT does not undertake any obligation to publicly update or revise any forward-looking statements. I would now like to turn the call over to Matt. Please go ahead, Matt.
Thank you, Kristen. And thank you to everyone for joining the call this morning for an update on NXDT's progress in the second quarter. I am joined today by Paul Richards, CFO, and John Good, CEO of our storage and single-family rental businesses. This morning we will discuss NXDT's real estate markets, provide updates on our top holdings, and as always, focus on the steps we are taking to close the gap between our share price and the underlying value of the portfolio. First, I'd like to spend a few minutes on the residential market and the supply picture, and then update you on the continuing progress for our Cityplace office to residential conversion. I'll then turn the call over to John and Paul to cover storage, SFR, and our credit vehicles. I'll close with our efforts to monetize assets, repurchase stock, and narrow our discounts to NAV, remains our key near-term focus.
Turning to the multifamily supply picture. The inflection we described on prior calls is now beginning to show up in the data. Nationally, trailing 12-month absorption has overtaken new deliveries for the first time since early 2022.
It posted its first meaningful decline in over a year, and asking rents have begun to grind positive. We continue to expect our Sunbelt markets to lag the national turn, given the supply still to be absorbed, but the direction is now unmistakable, and it is underpinned by the same four factors we have highlighted. Persistent structural demand, the cost to own a home remains roughly 3 times the cost to rent an apartment in our markets. A steep decline in new deliveries. National completions have fallen from a 2024 peak of roughly 696,000 units to an estimated 421,000 units this year and continue to trend lower. Construction starts running well below their 2022 peak, locking in a multi-year supply trough and finally concession burn off with roughly 40% of units nationally still advertising a discount. The normalization of concessions flows directly through to gross potential rent.
Our Cityplace Uptown submarket specifically the supply picture is almost non-existent with just 232 units delivering in the submarket in 2027 and 0 currently slated for 2028 and beyond. Our redevelopment of the Cityplace apron is now fully defined approximately 460 multifamily units across the roughly 6-acre apron surrounding the tower with a curated ground floor retail program anchored by a boutique grocer and a rooftop amenity oriented to the downtown Dallas skyline.
On the tower itself, residential design and programming continue, phased intentionally behind the apron, and now in the second half of the year, we've turned our attention to tower financing, and we remain bullish on commencing this residential project as submarket supply falls off of a cliff. I would like to turn the call over to John. John?
Thanks, Matt. Welcome, everyone. First, going to occupancy of our self-storage portfolio. At June 30, 2026, our physical occupancy was 94.1%, which was up 240 basis points from December 31, 2025, where occupancy was at 91.7% and was 30 basis points less than the 94.4% occupancy at June 30, 2025.
Our occupancy levels have performed to normal seasonal expectations and our physical occupancy continues to rank among the highest in the self-storage industry. As for rental rates, sector-wide rental rates inched forward as we completed the 2026 rental season, generally outperformed the sector.
Our portfolio's in-place rate on June 30th was $20.54 per foot, up 6.3% from the $19.33 per foot at June 30, 2025, and up 183 basis points from the $20.17 per foot at the beginning of the year. Our average street rate increased 230 basis points from $21.88 at June 30, 2025, to $22.38 at June 30, 2026. Growth in our average web rate, which is the rate charged to customers who find units and rent via the internet, comprising the majority of our customers, was up 330 basis points year over year from $15.73 at June 30, 2025, to $16.25 at June 30, 2026.
We view these rates to be indicative of a return to steady, if slow, rent growth for the entire self-storage sector. Moreover, we expect these rate increases, along with stable occupancy, to support a 5% to 6% increase in our same store revenue for 2026, which is significantly ahead of what the public REITs are forecasting.
As for revenue and net operating income, same store revenue for the quarter ended June 30, 2026, was $23.7 million, or 6.1% higher than the $22.4 million recognized in the second quarter of 2025. Net operating income for the second quarter 2026 was $14.9 million or 15.2% higher than the Q2 2025 NOI of $12.9 million.
These results were driven by strong occupancy, good rate growth and strong expense control. Our results continue to lead the publicly traded storage REITs by a large margin as those REITs are forecasting for the year approximately flat NOI growth and 1% to 2% top line growth. Demand in the self-storage sector has typically been led by housing mobility and life events.
The housing market has remained very weak, which has continued to suppress self-storage demand in some areas. However, our portfolio is the youngest portfolio of size in the storage sector, and our facilities are located in large dense urban submarkets where demand is driven more by need and less by mobility.
We believe our exceptional locations and strong demographic profile insulate us to a large degree from the continued slow housing market that is burdening the rest of the sector and has allowed us to substantially outperform our peers. Turning to the supply picture, development remains limited nationwide due to high borrowing costs, land scarcity, significant inflation in materials costs, and permitting challenges, as well as a continued weak housing market that has weighed on self-storage demand.
In other words, anyone who's underwriting a storage development now has a really hard time determining what future rents will be. Most experts in the sector believe this dynamic will continue for the next several quarters, providing a potential tailwind to the storage sector in 2027 and 2028. We continue to believe we have the preeminent urban storage portfolio in the U.S. that will continue to outperform our peers and command a premium valuation upon any liquidity event.
We continue to evaluate strategic alternatives for our storage platform. Now turning to VineBrook Homes. Over the past 2 years, VineBrook's management team has focused on fortifying our balance sheet to reduce our capital cost and effectively eliminate threats from short-term debt maturities, right-sizing our G&A structure with a goal of $15 million of G&A annual savings and beginning a very significant and impactful portfolio repositioning involving exiting underperforming scattered-site homes and markets and redirecting invested capital to newer, better located and easier to manage BTR homes in more dynamic markets.
Our second quarter performance reflects the fruits of our efforts, including some pain mixed with gain. On the positive side, physical occupancy within our stabilized same home set continues to track over 95%, with June 30, 2026, occupancy at 95.2%, up from 94.9% at the beginning of the year. Our stabilized home count was relatively flat during Q2 2026 compared to Q2 2025, with the count being 15,611 for the 2026 quarter versus 15,588 homes for Q1 2025, a 23 home increase. Also, our blended rent growth continues to lead our larger publicly traded peers, second quarter growth of 5.1% on renewal leases and 1% on new leases for a blended 4.2% growth rate.
On the negative side, our net operating income margin dropped 340 basis points for the second quarter compared to the same quarter in 2025 on account of an Intentional focus on improving the quality of homes that turn over to new residents, a strategic decision that has resulted in longer turn times and higher turn costs and repair and maintenance expense, which has negatively impacted margins. We believe this short-term drop in NOI margin was necessary to accomplish a sustainable long-term enhancement of earnings and corporate value.
Over the past 2 and 1/2 years, we have reduced leverage, decreased our interest rate, and extended debt maturities. Our work on the balance sheet has produced a $500 million acquisition line of credit from J.P. Morgan, which we have continued to utilize to fund BTR acquisitions. Moreover, after quarter end on August 14th, VineBrook closed on a $545 million 5-year fixed rate term loan with Barings, a subsidiary of MassMutual. Proceeds were used to repay in full our floating rate syndicated credit facility with J.P. Morgan and other short term debt. In addition, the refinancing resulted in a meaningful net capital inflow for BTR acquisitions and other corporate purposes. We completed this transaction at a 160 basis point spread to the 5-year Treasury note, which is a tightening relative to other similar fixed rate executions that we've completed in the past.
With this transaction, VineBrook's debt maturities are largely extended to the end of the decade with limited near-term maturities. We believe our improvements in the balance sheet have placed us in a strong position to trim underperforming assets and reinvest capital into BTR homes in our core markets where we see the most promising long-term growth.
With respect to the portfolio repositioning, during the quarter ended June 30, we sold an additional 638 homes for approximately $101 million of net proceeds. The proceeds were used to pay down debt and fund new built-to-rent acquisitions. During the quarter, we acquired over 150 units across 3 BTR communities pursuant to forward purchase contracts that we have with developers. We have another $100 million of BTR home purchases under contract and a robust pipeline of potential additional BTR acquisitions. With the adoption of the federal 21st Century ROAD to Housing Act, which allowed for continued institutional investment in built-to-rent new housing, we expect to have significant additional opportunities to add high-quality built-to-rent homes to our portfolio over the coming quarters.
To replace the lower yielding housing inventory that we have disposed of or intend to dispose of. Our net asset value at June 30, 2026, was $52.68 compared to $54.25 at June 30, 2025, a 289 basis point decline. The range of cap rates provided by Green Street Advisors, our third-party valuation firm, expanded.
During the quarter, long-term mortgage rates rose again, contributing to the continuation of the worst housing market in 2 decades. And such rates have continued to rise since the end of the quarter. The shares of our publicly traded peers continue to trade at substantial discounts to their net asset values, reflecting these higher cap rates.
Finally, we remain committed to providing liquidity to VineBrook Common shareholders. Management and the board continue to monitor the macro outlook as well as the performance of our peers. A listing sometime in 2027 is still on the table, but our publicly traded peers continue to trade significantly below NAV, and we are mindful of conducting such listing in a manner where shareholder value is maximized.
Moreover, with capital flowing back into the sector, an exemption now for investor-to-investor transactions under the new Housing Act, there is the possibility of consolidation in the industry, which could provide liquidity opportunities for us after we complete our portfolio transformation.
Management, the board, and NexPoint entities, including NXDT, remain the largest shareholders in the company and we continue to be absolutely aligned with all shareholders in terms of seeking to maximize value. With that, I'll turn it over to Paul to discuss NREF.
Thanks, John. I'll quickly hit on NREF Q2 results and further guidance. As of today, NXDT holds shares and OP Units of NREF worth approximately $108 million of net asset value or approximately $1.71 per NXDT share on a standalone basis. As a reminder, NREF is a publicly traded mortgage REIT focused on originating and/or purchasing credit investments in our key operating verticals of residential, both SFR multi, life science, self-storage, industrial and marina.
NREF reported second quarter net income to common shareholders of $5.4 million or $0.29 per diluted share. Earnings available for distribution were $11.2 million or $0.46 per diluted share, which is up 7% from the first quarter and ahead of our guidance we gave in April. Cash available for distribution was $13.9 million or $0.58 per diluted share.
Moving to the portfolio and book value, book value per diluted share was $18.60, down roughly 2% from $18.96 at the end of the first quarter, driven primarily by small unrealized loss on our stock. The portfolio totals $1.1 billion across 85 investments, 39.4% life science, 37.6% multi and 15.1% single family rental with self-storage industrial and marina.
Credit quality continues to sit at the top of our commercial mortgage REIT peer group, a weighted average LTV of 63.4%, a weighted average DSCR of 1.39 times and 80.3% of our collateral stabilized. Of our collateral stabilized. NREF remains conservatively levered at 0.88 times debt to equity with $836.6 million of debt outstanding at a weighted average cost of 6.3% and a weighted average maturity of 2.6 years, which gives us flexibility and downside protection.
The stock closed at $15.81 on September 23rd, roughly a 15% discount to book value and an implied dividend yield north of 12%, an attractive entry point relative to intrinsic value. Next, a few comments on capital allocation and activity. On the most significant transaction of the year-to date, we closed $375 million drawable term loan facility with Mizuho Capital Markets LLC and used it to repay our $180 million of 5.75% senior unsecured notes at the May 1 maturity.
Concurrently, we entered into a total return swap Mizuho that reduced our net effective interest costs. As of the August earnings call, $362.2 million was outstanding on the facility. The transaction removed the largest near-term liability overhang on our balance sheet, replaced fixed rate unsecured debt with floating rate asset-based financing that better matches our preference for the facility for prepayment flexibility and provides a back-leveraged solution that enhances returns on new investments. On capital structure positioning, combined with $22.6 million we raised in a series C preferred during the quarter, we head into the back half of 2026 with what we believe is one of the cleanest, most flexible capital structures in the commercial mortgage REIT sector. On to new investments.
We funded $42.6 million mezzanine loans secured by a life science property at a 14% coupon, a $20.2 million preferred equity investment in a multifamily property at a 14% coupon, $7.3 million on a loan paying SOFR plus 900 basis points and an additional $31.9 million on existing commitments, more than $70 million of the pipeline we outlined in April at double digit coupons on Alewife.
Our Alewife Life Science Campus is now tracking to 85% lease up from 71% anchored by a long-term lease with Lila Sciences for 245,000 square feet. The sponsor is running a recapitalization process and we would expect a substantial amount of capital back. Essentially in the fourth quarter to redeploy primarily into residential assets. On dividend coverage, we paid a regular dividend of $0.50 per share in the quarter, which was 1.16 times covered by cash available for distribution. The board declared another $0.50 per share for the third quarter payable September 30th. And lastly, our future outlook and guidance.
Looking forward, third quarter guidance Earnings available for distribution of $0.43 per diluted share at the midpoint with CAD at $0.55 per diluted share at the midpoint. Debt to equity ratio 0.88 times. A dividend covered in the second quarter and guided at 1.1 times for the third and residential and life science fundamentals inflecting in our favor.
We believe NREF is well positioned to sustain distribution and create durable shareholder value. Affiliates and long-term investors maintain significant skin in the game alongside our shareholders, a structure we view as a meaningful differentiator. Now I'd like to pass it back to Matt.
Thank you, Paul. Again, we are making operational progress across all of our platforms as we look forward to a more liquid transaction market and waning supply in 2026 and 2027. We also continue running a variety of processes to monetize assets at fair market values in this environment.
One example is MidWave Wireless, formerly TerreStar Corporation, which remains one of the largest independent wireless spectrum license holders in the U.S. MidWave holds the entire 1.4 gigahertz band, making it the largest contiguous wide area band not controlled by a national carrier. It also holds an indirect interest in 18 AWS-3 licenses spanning many of the largest U.S.
metropolitan markets. The company continues to explore strategic options to monetize this position, and we are encouraged both by the regulatory and standards work completed over the past 2 years by way of large cap demand that has materially repriced the asset class. Emerging use cases such as direct to device and supplemental coverage from space only deepen that demand.
We believe this backdrop is a positive indicator for value realization over the next 12 months and would note that NXDT's current valuation ascribes very little of this embedded value to the position.
The accretion and our monetization efforts, coupled with the ongoing amortization of our preferred holdings continues to fund our repurchase program and our pace has accelerated meaningfully. During the second quarter, we repurchased approximately 109,000 shares of common stock. Subsequent to quarter end from the beginning of July through late September, we repurchased an additional 1,009,000 shares at an average price of approximately $5.33 by a wide margin, our most aggressive stretch of buying since the program began.
In total, we have now repurchased approximately 2.28 million shares under the program for roughly $10.4 million at a blended average price of about $4.58 per share. We intend to keep repurchasing common for as long as that discount persists and to make real measurable progress on closing it over the balance of 2026.
While we continue the operational work within our key operating verticals. To summarize the near-term catalysts we are focused on, completing the capitalization of the Cityplace apron and advancing tower financing, continuing to progress the monetization processes underway across the portfolio, pursuing value realization on our MidWave spectrum position over the coming year, continuing to repurchase common stock at a discount to NAV, all in service of the demonstrable progress in narrowing our discount.
That's all we have today for our prepared remarks. I'd like to thank everyone again for joining today's call and look forward to providing further updates on our progress next quarter. Thank you and have a good day.
This concludes today's call. Thank you for attending. You may now disconnect.
Nexpoint Diversified Real Estate T — Q2 2026 Earnings Call
NexPoint update: operational momentum in storage and SFR, active asset monetization and buybacks to narrow the NAV discount.
📊 Key Message
- Core thesis: Management is executing a three‑pronged plan — monetize noncore assets, advance Cityplace office→residential conversion, and repurchase stock — to close the gap between market price and net asset value (NAV).
🎯 Strategic Highlights
- Cityplace: Apron redevelopment defined (~460 multifamily units, curated retail); tower residential design progressing and tower financing targeted in H2 as submarket supply tightens.
- Self‑storage: Portfolio occupancy 94.1% (June 30), same‑store revenue +6.1% YoY and NOI +15.2% YoY; management expects 5–6% same‑store revenue growth for 2026.
- VineBrook: Balance sheet strengthened — $545M 5‑yr fixed loan closed (Aug 14) — sold 638 homes for $~101M, redeploying into built‑to‑rent (BTR) acquisitions; listing possible in 2027 but timing depends on market prices.
🔭 New Information
- Share repurchases: Repurchased ~2.28M shares for ~$10.4M (average $4.58); buying accelerated July–Sept (~1.01M shares at $5.33 average).
- MidWave spectrum: Company expects meaningful monetization potential within ~12 months; current valuation assigns little value to this asset.
- NREF exposure: NXDT holds ~$108M of NREF (≈$1.71 per NXDT share); NREF Q2 EAD $0.46 and CAD $0.58 per diluted share, with Q3 EAD guidance midpoint $0.43 and CAD midpoint $0.55.
⚡ Bottom Line
- Implication: Operational outperformance in storage and SFR, a clear asset‑realization agenda, and active buybacks are credible near‑term levers to narrow NXDT’s discount to NAV; key risks remain market liquidity, rising cap rates/interest rates, and timing of large monetizations (MidWave, Cityplace, VineBrook listing).
Nexpoint Diversified Real Estate T — Q1 2026 Earnings Call
1. Management Discussion
Hello and Welcome to the next point. Diversified Real Estate Trust Q1 2026 investor update call. All lines have been placed on mute to prevent any background noise. now like to turn the conference over to Kristen Griffith, Investor Relations. You may begin.
Good day everyone and welcome to NextPoint Diversified Real Estate. investor update call. On the call today are Matt McGrainer, Executive Vice President, Chief Investment Officer, Paul Richards, Executive Vice President and Chief Financial Officer, and John Good, Chief Executive Officer of NextPoint Storage Partners and Chief Executive Officer of Vineburg Homes Trust, Inc. Before we begin, I would like to everyone that this update call in accompanying presentation 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. Listeners should not place undue reliance on any forward looking statements and are encouraged to review report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risks and other factors that could affect the board-looking statement. The statements made during this conference will speak only as of today's date and accept as required by law. NFVT does not undertake any obligation to publicly update or revise any forward looking statements.
We're now going to turn the call over to Matt. Please go ahead, Matt. Thank you, Kristen, and thank you to everyone for joining the call this morning for updates on NXDT's progress. As Kristen said, I'm joined today by Paul Richards, our CFO of NXCT and John Good, CEO of our storage and single family rental businesses. This morning we will discuss NXCT's real estate markets and provide updates on our top holdings. We'll begin by spending a few minutes discussing the residential market, the supply picture, and progress with our CityPlace project in Uptown Dallas. I'll then turn the call over to John and Paul to discuss our storage, SFR, and credit vehicles. Finally, I'll close with progress on efforts to monetize assets and repurchase stock.
On the residential front, we are now firmly in the supply trough that I've been describing on these calls for several quarters. how this is playing out. We were coming off a record national multifamily cycle deliveries peaked at approximately 695 000 units in in the trailing 12 months ending q4 of 2024. for context that compares to roughly 282 000 units of average annual deliveries since 2001. costar now forecasts 2026 deliveries to fall approximately 49 percent from 2025 levels with another 20% decline forecasted for 2027. 2027 and 2028 forecasts have been revised down meaningfully from prior estimates as well. On the supply side, multifamily construction starts are running approximately 70% below their 2022 peak. That is locking in a multi-year supply drop, particularly in uptown Dallas. Thank you. On the demand side, the structural backstop has not changed. The cost to own a home in our markets remains roughly three times the cost to rent. There is no reasonable mortgage rate scenario that closes that gap quickly.
Our on the ground leasing data is consistent with the inflection thesis. Putting it all together, we believe the second half of 2026 and 2027 will be meaningfully better than 2025 for residential assets. WHILE THE LONGER-TERM EFFECT OF AI ON WHITE-COLLAR EMPLOYMENT REMAINS AN OPEN DEBATE, OUR DEMAND THESIS DOES NOT DEPEND ON THE LABOR MIX. WITH THE COST TO OWN A HOME RUNNING AGAIN THREE TIMES THE COST TO RENT IN OUR MARKETS AND NEW SUPPLY COLLAPSING, THE STRUCTURAL CASE FOR RENTAL DEMAND HOLDS ACROSS A WIDE RANGE OF EMPLOYMENT OUTCOMES. WE WOULD ALSO NOTE A SUPPORT OF of longer-term demographic tailwind as continued gains in health and longevity extend the renter age band and broaden the demand base over time. And again, with respect to the city place, uptown sub market, the supply picture is almost non-existent with just 232 units delivering in the city place sub market in 2027, and then nothing thereafter. We are nearing completion of design and capitalization of the apron project as reflected in the recent state filings.
In addition, we have executed construction financing term sheets at accretive levels and our underwriting remains intact with pro forma yield on costs remaining in the mid 6% range. Integrating new housing on the apron with existing office space, building amenities, and future retail and hospitality offerings will be a significant step in advancing the broader city place redevelopment. And on that front, progress on the tower residential design and programming continues to remain on schedule with an intentional lag behind the apron as we phase the development. We expect to turn our attention to financing the tower in the second half of the year and remain overall bullish on starting this residential project this year as the sub market literally falls off of a cliff. Now I'd like to turn the call over to John.
Thanks, Matt. Welcome, everyone. I'll start out by talking about results at NextPoint Storage Partners and then move on to Vinebrook and then turn the call over to Paul. With respect to NextPoint Storage Partners occupancy trends, at March 31, our fiscal occupancy was 92.3%, which was up 60 basis points from December 31, 2025, which had an occupancy at that date of 91.7%. is identical to the 92.3% that we reflected at March 31 of 2025. Our occupancy levels are performing to normal seasonal expectations, and our physical occupancy continues to rank among the highest in the self storage industry. As of yesterday, our physical occupancy was 93.9%, 160 basis point. gained since march 31 and roughly the same as our occupancy the same time last year As for rental rates, sector-wide rental rates continue to inch forward as we move through rental season. Our portfolios in place rate on March 31, 26 was $20.23 per foot, up 6.7% from the $18.96 that we reflected at March 31 of 2025, and at 30 basis points from the $20.17 that we at the beginning of the year. Our average asking rate remained relatively flat year over year. rising two pennies from nineteen dollars and forty eight at march 31.25 to 19.50 at march 31 26. growth in our average web rate which is the rate charged to customers who find units and rent via the internet which comprises the majority of our customers was up 2.6% year over year from $13.30 at March 31, 25 to $13.64 at March 31, 26. Our properties continue to be subject to aggressive rate increase programs to existing with those rate increases generally kicking in four months after a new customer comes into the facility and those rent increases have been running north of 30% for the last several months.
We expect these rate increases, along with stable occupancy, to support a 5 to 6% increase in same store revenue for 2026. Moving to revenue and net operating income, same store revenue for the quarter ended March 31, 2026 was $23.1 million, or 6.4% higher than the $21.7 million recognized in the first quarter of 2025. net operating income for the first quarter of 26 was $14 million or 10.2% higher than Q1 2025 NOI of $12.7 million. These results continue to lead the publicly traded self-storage REITs by a large margin. margin as they reported first quarter same store revenue growth of an average of less than 2% and negative same store NOI growth. demand in the self-storage sector has typically been led by housing mobility and life events and the historically weak housing market experienced over the past three years has softened self-storage demand Our publicly listed self storage repairs continue to operate a large portion of their respective portfolios, subject to the slowness in demand. resulting in flat to negative revenue growth and negative NOI growth. However, our portfolio is the youngest portfolio of size in the storage sector and our location in large dense urban sub markets provides a consistent demand funnel made up of people who have to rent storage because they don't have of space. This makes us somewhat immune from the continued slow housing market that is burdening the rest of the sector and has allowed us to substantially outperform our peers. Moving to supply, development remains limited in self-storage due to high borrowing costs, land scarcity, significant inflation in materials costs, permitting challenges, and the continued weakness in the demand for self-storage. caused by the weak housing market. The expected new supply for 2026 and 2027 is well below the 3% threshold needed for equilibrium and projected to fall even lower into 2027, likely renewing pricing power in the sector and allowing for stronger rate growth over the next couple of years.
We We continue to believe we have the preeminent urban storage portfolio in the United States that will continue to outperform our peers and command a premium valuation upon any liquidity event. Now moving to Vinebrook. We began a transformation of Vinebrook homes beginning in the second half of 2025 when we partnered with Evergreen Residential to manage our over 20,000 home portfolio and began to aggressively sell approximately 4,000 homes that comprise our lowest performing 20% and redeploy proceeds in the higher yielding built around communities. The externalization of management to evergreen is expected to save us over $15 million per year in GNA expense, And the repositioning of the bottom tier of our portfolio is expected to produce yields of 50 to 100 basis points ahead of our average yield for the entire portfolio, and 75 to 150 basis points ahead of the yields on the disposed of homes. The enhanced yields from replacing older high maintenance housing stock with new lower maintenance, easier to manage, and higher yielding built-to-rent homes should over time be highly accretive to Vinebrook's net operating income and share value as those built-to-rent communities stabilize. To execute this strategy during the first quarter, we removed 1,670 homes from the rented pool in order to make those homes ready for disposition. We sold 289 homes during the first quarter and we acquired 181 built to rent homes during the quarter. As we execute this repositioning of our company, revenue will lag for a few quarters as existing homes are pulled out of the rental pool and sold.
And as we acquire and lease up our built-to-rent homes. Once we complete this repositioning during 2027, revenue grows should be strong and the value of our company should be significantly enhanced. Our first quarter performance was solid. Physical occupancy within our stabilized same home set actually ticked up to 95.3% from 94.9% at year end 2025. Our stabilized home count was relatively flat during the first quarter compared to to the first quarter of 2025 with count being 15,765 homes for Q1 26 versus 15,747 homes for Q1 25 and 18 home increase or about one 10th of 1%. Our net operating income margin on our same home portfolio was 63.9% for the quarter, a 60 basis point improvement over the same quarter in 2025 and consistent with our peers. In the first quarter, our rental rates on renewal leases increased 5.5% and rental rates on new leases were essentially flat, resulting in a blended rental rate increase of 4.5% for the first quarter, more than double the blended growth rates reported by our larger publicly traded peers.
Same home net operating income for Q1 increased 1.3% over Q1 2025. Over the past two and a half years, we have fortified the Vinebrook balance sheet, reducing leverage, decreasing our interest rate, and extending maturities until the end of the decade. As part of that fortification, we were able to procure a $500 million acquisition line of credit from J.P. Morgan to fund built-to-rent acquisitions. The intent is to pay down the acquisition line through the sale of homes to which I just referred, making our BTR strategy leverage neutral to leverage positive. positive. Today we have purchased three stabilized BTR communities and have funded a portion of two forward sale BTR communities, investing approximately $100 million in these built-to-rent communities. Built-to-rent homes are higher yielding assets in higher growth markets that are easier to manage. We have invested in built-to-rent communities in two of our better performing legacy markets, Indianapolis and Kansas City, as well as in new markets such as Nashville and Raleigh.
As many of you are probably aware just from watching the news or reading the press, in early January of this year, the President challenged Congress to adopt legislation to make housing more affordable. Included in his challenge was a call for Congress to curb growth of what he called corporate ownership of single family rental housing through a ban on additional purchases by institutional investors. After months of competing bills and negotiation between the House and the Senate, as of last night, both houses had passed the 21st Century Road to Housing Act. We were deeply involved over the past six months lobbying for a bill that would not restrict capital flows into our sector and would allow us to do business as usual. While most of the bill is designed to provide incentives to the private sector and states and cities to increase supply and make home loans more available in smaller communities. Title 10, Section 1001 of the bill imposes on large institutional investors, which are defined as any entity or group of related entities that own more than 350 homes, a ban on future acquisitions of single-family homes for rent. are a number of important exceptions to the ban newly constructed homes purpose built to rent homes homes purchased and renovated to meet local occupancy codes, homes placed in a rent-to-own program, and purchases from institutional investors. We believe the bill allows us to continue operating in our current manner and in accordance with our current business plan, and experts believe that the bill as passed will renew capital flow. into the sector over the past two years we have fortified vinebrook's balance sheet created capital to allocate to build torrent opportunities we have an active pipeline and ability to move very quickly to close on good opportunities and now the legislation allows us to continue to do so Finally, a few comments about net asset value and liquidity.
Our net asset value at March 31, 26 was $54.24 compared to $54.56 at March 31, 2025, a 60 basis point decline as the range of cap rates Street Advisors, our third party valuation firm, expanded. This is the worst housing market in two decades, characterized by low inventory, low construction starts, and high mortgage tax and insurance rates, as well as political headwinds in Washington, DC. The shares of our publicly traded peers continued to trade at substantial discounts to their net asset values reflecting these higher cap rates. Our NAV continues to be supported by our home sales, and we are pleased that the NAV has remained in a tight range over the past two years, despite a stubbornly weak housing market, rising costs, and volatility in the SFR REIT sector. We remain committed to providing some limited liquidity sometime in the second half of the year, the amount of which continues to be discussed by management and the Board, as we continue to monitor the macro outlook and execute on our portfolio reposition. A listing during the next four quarters is still still on the table, but our publicly traded peers continue to trade significantly below NAB, and we are mindful of conducting such listing in a manner where shareholder value is maximized to the extent possible. The board and NextPoint entities remain the largest shareholders in the company, and we continue to be absolutely aligned with all shareholders in terms of seeking to maximize value.
With those remarks, I'll turn it over to Paul to comment on NREF.
Thanks, John. As of today, NXCT holds shares of the OP units of NextPoint Real Estate Finance worth approximately $94 million of net asset value, or approximately $1.59 per NXCT share on a standalone basis. As a reminder, NREF is our publicly traded mortgage REIT focused on originating and or purchasing credit investments in our key operating vertical. of residential, both SFR multifamily, self-storage and life science. NRF reported first quarter net income to common shareholders of 10 million or 42 cents per share. Cash available for distribution, plus 13.5 million or 58 cents per share. Moving to our portfolio and book value. Book value shares, book value per share fell slightly to $18 and 96 cents, reflecting sustained strong performance on our underlying assets. The portfolio totals approximately 1.1 billion across 90 investments, diversified across multi single family rentals and life sciences.
Importantly, NREF remains one of the lowest levered mortgage rates in the space at just about 0.7 times debt to equity, which provides us flexibility and downside protection. The stock is trading at 30% discounted book value, creating an attractive entry point relative to intrinsic value. Next, Just a few comments on capital activity. On the most significant transaction of the quarter, we have successfully we successfully refinanced 180 million of our senior unsecured notes that were maturing May 1st. We replaced those with 5.75% fixed rate notes with a new $242.5 million total return swap facility priced at SOFR plus 375 basis points with three year term and a one year extension option. Next, on the capital structuring positioning. Combined with the $21.1 million we raised and are seriously preferred in the re-REMIC execution, we head back into the back half of 26 with one of the cleanest, most flexible capital structures in the commercial mortgage rate sector.
On to the re-REMIC execution. We sold our BPs to Mizuho at 92.7, having purchased the at 68.69 uh 68.69 in 2021 we and reinvested into an hrr tranche of the new structure at an 18.5 yield that single transaction generated 46 percent uh share per book value appreciation reduced repo financing by 75 million and is expected to drive approximately 34 cents per share of annual CAD accretion going forward. Next, the dividend coverage. We paid a regular dividend of 50 cents per share in the first quarter, which was 1.16 times covered by cash available for distribution. And lastly, our future outlook and guidance. Looking forward, we expect earnings available for distribution of 43 cents per share in Q2 with CAD at 54 cents per share with a debt to equity ratio of 0.7 to 0.7. AND A DIVIDEND COVERAGE OF 1.16 BY CAD, AND A DIVIDEND COVERAGE OF 1.16 BY CAD, WE BELIEVE NREF IS WELL-POSITIONED WE BELIEVE NREF IS WELL-POSITIONED TO SUSTAINED sustain its distribution and create durable shareholder value. Our affiliates and long-term investors maintain significant skin in the game alongside our shareholders. A structured review is a meaningful differentiator.
Now I'd like to pass it back to Matt.
All right, thanks, Paul. As you can tell by John and Paul's updates, we continue to make operational progress across all of our platforms in spite of broader geopolitical and capital market noise. As I stated last quarter, certain monetization efforts continue to progress on several fronts. One example is MidWave Wireless, formerly TerraStar Corporation, which remains one of the largest independent wireless spectrum license holders in the United States. The company continues to explore strategic options as it seeks to monetize its investment. We continue to see activity in the sector with Spectrum licenses actively trading in the market, which we believe is a positive indicator for potential value realization over the next 12 months. By way of reference, recent public transactions underscore the depth of this market. AT&T agreed to acquire roughly 50 megahertz of Echo Star Spectrum for approximately $23 an implied value of about $1.40 per megahertz pop, while SpaceX acquired Echo Star's spectrum across two transactions, totaling nearly 20 billion, with Verizon and T-Mobile both reporting to be evaluating the remaining licenses.
We view this level of large cap buyer demand as SUPPORTIVE OF THE VALUE EMBEDDED IN OUR HOLDINGS. THIS ACTIVITY COUPLED WITH OUR ONGOING IMMUNIZATION OF PREFERRED STOCK HOLDINGS WILL CONTINUE TO FUEL AGGRESSIVE STOCK BUYBACKS OVER THE NEAR TERM. AS OF THE CLOSE OF BUSINESS YESTERDAY WE HAD REPURCHASED OVER 1.1 MILLION SHARES OF COMMON STOCK AT AN AVERAGE STOCK PRICE OF $3.83 PER SHARE. YOU SHOULD EXPECT We expect this buyback activity will continue over the near term. In addition to stock buybacks, management and the board are keenly focused on improving disclosure and evaluating share issuances while we continue to make operational progress within our key operating verticals. That's all we have today for our prepared remarks. I'd like to thank everyone for joining today's call and look forward to providing further updates on our next progress next quarter.
Thank you very much and good day. This concludes today's conference call. Thank you for joining. You may now disconnect.
[Call has ended.]
Nexpoint Diversified Real Estate T — Q1 2026 Earnings Call
NXDT is leaning into a multifamily supply trough to develop CityPlace while storage and a SFR-to-BTR shift bolster cash flow, NAV and buybacks.
🎯 Key Message
- Takeaway: A multi-year collapse in new multifamily supply, especially in Uptown Dallas, creates a timing window to build and lease CityPlace residential projects. Concurrently, high-performing urban self‑storage and a strategic pivot in the single‑family rental portfolio toward built‑to‑rent (BTR) aim to stabilize cash flow and support NAV.
📌 Strategic Highlights
- CityPlace: Apron design and capitalization nearing completion; construction financing term sheets executed; pro‑forma yield on cost ~mid‑6%; tower financing planned in H2 2026 with phased starts.
- Storage: NextPoint Storage occupancy ~92–94% (seasonal), in‑place rent $20.23/ft (+6.7% YoY); company expects 5–6% same‑store revenue growth in 2026 and strong NOI outperformance.
- SFR & Capital: Vinebrook partnered with Evergreen, selling low‑performing homes and buying BTR assets (289 sold, 181 acquired in Q1); $500M JP Morgan acquisition line and ~$100M invested in BTR so far.
🔭 New Information
- Legislation: The 21st Century Road to Housing Act passed but includes exceptions (newly built, rehabbed, rent‑to‑own, purchases from institutions) that management says permit continued strategy.
- Capital Moves: NREF re‑REMIC trade produced meaningful book appreciation and ~\$0.34 per share CAD accretion; refinanced \$180M notes and added SOFR+375bp facility; NXDT repurchased >1.1M shares at \$3.83 average.
⚡ Bottom Line
- Implication: NXDT is executing a multi‑pronged plan: capture outsized residential returns as supply evaporates, monetize high‑quality storage and spectrum assets, and improve capital structure while returning cash via buybacks. Execution risk remains on project financing, sales timing and market re‑rating, but operational data and capital actions reduce near‑term downside.
Financial data from Nexpoint Diversified Real Estate T
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 78 78 |
21%
21%
100%
|
|
| - Direct Costs | 14 14 |
31%
31%
18%
|
|
| Gross Profit | 64 64 |
18%
18%
82%
|
|
| - Selling and Administrative Expenses | 26 26 |
2%
2%
34%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 16 16 |
37%
37%
21%
|
|
| - Depreciation and Amortization | 17 17 |
2%
2%
22%
|
|
| EBIT (Operating Income) EBIT | -0.64 -0.64 |
107%
107%
-1%
|
|
| Net Profit | -74 -74 |
25%
25%
-94%
|
|
In millions USD.
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Company Profile
NexPoint Diversified Real Estate Trust is a real estate investment trust, which engages in the business of acquisition, asset management, development, and disposition of opportunistic, value-add investments in real estate properties. The company is headquartered in Dallas, Texas. The company went IPO on 2006-06-26. The firm is focused on the acquisition, asset management, development, and disposition of opportunistic, value-added investments in real estate properties throughout the United States. The Company’s segments include NXDT and NHT. The firm focuses primarily on investing in various commercial real estate property types and across the capital structure, including but not limited to equity, mortgage debt, mezzanine debt and preferred equity. The firm focuses on opportunistic investments in real estate properties with a value-add component and real estate credit with an objective to increase the cash flow and value of its properties, acquire properties with cash flow growth potential and achieve capital appreciation for shareholders through a value-add program. The firm is externally managed by NexPoint Real Estate Advisors X, L.P. (the Advisor).
StocksGuide Premium
| Head office | United States |
| Website | nxdt.nexpoint.com |


