NexPoint Residential Trust Inc. Common Stock (NXRT)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor in the Buffett-Graham tradition, I start with the business and the price. NexPoint Residential Trust owns middle-income apartments in the Southeast and Southwest, a simple enough business. But the filed record is weak. Revenue fell from $277.5 million in FY2023 to $259.7 million in FY2024 and $251.3 million in FY2025. In FY2025 the company reported a net loss of $32.0 million and diluted EPS of -$1.26. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $64.6 million and net loss was $8.6 million, or -$0.34 per diluted share. The losses are not a one-quarter event; fiscal Q1 2026 had a $6.8 million loss and fiscal Q3 2025 had a $7.8 million loss. Since this is a REIT, accounting earnings are distorted by depreciation, and FFO/AFFO are not in the data. So I lean on other signs: the dividend yield is 10.08%, but debt-to-equity is 6.29 and the Altman Z-Score of 0.07 from FairStock's calculations signals financial fragility. The Piotroski F-Score is 2/9. Free cash flow is a positive $83.1 million, a 16.9% FCF yield, which is attractive if sustainable. At the 2026-10-13 close of $19.27, FairStock's P/B is 1.99 and EV/EBITDA is 14.54, so the price is not a bargain on book value. The 52-week range is $18.14 to $32.36. The moat is hard to see: the company is externally advised and reports only one employee, so it depends on an outside manager. FairStock's Lynch category is TURNAROUND, reflecting a loss in the latest year after earlier profits. Without FFO/AFFO I cannot judge REIT valuation fully; the high dividend and low price may compensate for risk, but leverage and negative earnings demand caution.

In plain English: NexPoint Residential Trust owns and runs middle-income apartment communities, mostly in the Southeast and Southwest. The business looks weak right now: revenue has drifted lower over the past few years, recent quarters showed net losses, and debt is high. The stock price is near the low end of its past-year range and pays a big dividend, but compared with its accounting value it does not look clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer