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DALLAS, Nov. 27, 2024 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today the closing of 17-property agency mortgage refinancings through J.P. Morgan Chase Bank ("JP Morgan").
With the closing of these 17 loan agreements, and together with the 17 loan agreements previously entered on October 1, 2024, the Company has refinanced 34 loans for total gross proceeds of $1.469 billion, which, in the aggregate, represents approximately 97.8% of the Company's total outstanding debt. Notably, NXRT agreed to refinance at interest rate pricing improved from prior terms. This refinancing activity extends the Company's weighted average debt maturity schedule to approximately 6.82 years (from approximately 5.54 years) – after this refinancing activity, debt maturing through 2028 equates to approximately 2.2% of total debt (down from approximately 33% previously).
Holistically, these refinancings are expected to reduce NXRT's weighted average interest rate on total debt by 48 bps to 5.65% before the impact of interest rate swap contracts. Accounting for the hedging impact of the swaps, NXRT's adjusted weighted average interest rate is expected to be reduced from 3.44% to 2.95%. With the completion of these refinancings, the Company has no meaningful debt maturities until 2028.
"NXRT is pleased to announce the completion of the second half of this significant refinancing initiative, continuing to fortify our balance sheet and strengthen our relationship with JP Morgan. We identified this refinancing opportunity early in the year and we are thrilled to deliver what we believe to be a building block for growth and an excellent result for shareholders." said Matt McGraner, Chief Investment Officer.
| Outstanding Debt Details | | | | | | | | | | | |
| Mortgage Debt | | | | | | | | | | | |
| The following table contains summary information concerning the mortgage debt of the Company as of November 26, 2024 ($ in 000s): | | ||||||||||
| Operating Properties | | Type | | Term | | Outstanding | | Interest Rate (2) | | Maturity Date | |
| Arbors on Forest Ridge | | Floating | | 84 | | $ 17,307 | | 5.68 % | | 12/1/2031 | (3) |
| Cutter's Point | | Floating | | 84 | | 18,994 | | 5.68 % | | 12/1/2031 | (3) |
| The Summit at Sabal Park | | Floating | | 84 | | 26,735 | | 5.68 % | | 12/1/2031 | (3) |
| Courtney Cove | | Floating | | 84 | | 31,596 | | 5.68 % | | 12/1/2031 | (3) |
| The Preserve at Terrell Mill | | Floating | | 84 | | 74,341 | | 5.68 % | | 12/1/2031 | (3) |
| Versailles | | Floating | | 84 | | 26,108 | | 5.68 % | | 12/1/2031 | (3) |
| Seasons 704 Apartments | | Floating | | 84 | | 33,960 | | 5.68 % | | 12/1/2031 | (3) |
| Madera Point | | Floating | | 84 | | 29,676 | | 5.68 % | | 12/1/2031 | (3) |
| Venue at 8651 | | Floating | | 84 | | 24,620 | | 5.68 % | | 12/1/2031 | (3) |
| Parc500 | | Floating | | 84 | | 30,012 | | 5.68 % | | 12/1/2031 | (3) |
| Rockledge Apartments | | Floating | | 84 | | 78,444 | | 5.68 % | | 12/1/2031 | (3) |
| Atera Apartments | | Floating | | 84 | | 38,555 | | 5.68 % | | 12/1/2031 | (3) |
| Torreyana Apartments | | Floating | | 84 | | 43,153 | | 5.68 % | | 12/1/2031 | (3) |
| Bloom | | Floating | | 84 | | 60,848 | | 5.68 % | | 12/1/2031 | (3) |
| Bella Solara | | Floating | | 84 | | 37,772 | | 5.68 % | | 12/1/2031 | (3) |
| Fairways at San Marcos | | Floating | | 84 | | 55,056 | | 5.68 % | | 12/1/2031 | (3) |
| Creekside at Matthews | | Floating | | 84 | | 28,703 | | 5.68 % | | 12/1/2031 | (3) |
| The Venue on Camelback | | Floating | | 84 | | 36,465 | | 5.68 % | | 9/30/2031 | |
| Sabal Palm at Lake Buena Vista | | Floating | | 84 | | 56,220 | | 5.68 % | | 9/30/2031 | |
| Cornerstone | | Floating | | 84 | | 45,815 | | 5.68 % | | 9/30/2031 | |
| Versailles II | | Floating | | 84 | | 15,706 | | 5.68 % | | 9/30/2031 | |
| Brandywine I & II | | Floating | | 84 | | 59,526 | | 5.68 % | | 9/30/2031 | |
| Bella Vista | | Floating | | 84 | | 37,400 | | 5.68 % | | 9/30/2031 | |
| The Enclave | | Floating | | 84 | | 33,440 | | 5.68 % | | 9/30/2031 | |
| The Heritage | | Floating | | 84 | | 29,810 | | 5.68 % | | 9/30/2031 | |
| Summers Landing | | Floating | | 84 | | 14,135 | | 5.68 % | | 9/30/2031 | |
| Residences at Glenview Reserve | | Floating | | 84 | | 33,271 | | 5.68 % | | 9/30/2031 | |
| Avant at Pembroke Pines | | Floating | | 84 | | 248,185 | | 5.68 % | | 9/30/2031 | |
| Arbors of Brentwood | | Floating | | 84 | | 39,977 | | 5.68 % | | 9/30/2031 | |
| The Verandas at Lake Norman | | Floating | | 84 | | 30,113 | | 5.68 % | | 9/30/2031 | |
| Six Forks Station | | Floating | | 84 | | 30,430 | | 5.68 % | | 9/30/2031 | |
| High House at Cary | | Floating | | 84 | | 32,478 | | 5.68 % | | 9/30/2031 | |
| The Adair | | Floating | | 84 | | 33,229 | | 5.68 % | | 9/30/2031 | |
| Estates on Maryland | | Floating | | 84 | | 37,345 | | 5.68 % | | 9/30/2031 | |
| Residences at West Place | | Fixed | | 120 | | 33,817 | | 4.24 % | | 10/1/2028 | |
| | | | | | | $ 1,503,242 | | 5.65 % | | | |
| (1) | Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties. |
| (2) | Interest rate is based on a reference rate plus an applicable margin, except for fixed-rate mortgage debt. 30-Day Average SOFR was 4.69% as of November 25, 2024. |
| (3) | The Company finalized a 7-year term refinance on 17 properties at SOFR plus a 1.09% margin. The refinance closed on November 26, 2024. |
Interest Rate Swap Agreements
As of November 26, 2024, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):