NXRT Stock Forecast & Price Target

NexPoint Residential Trust Inc is positioned for positive financial growth with projected 2.4% year-over-year same-store revenue growth in 2026, while managing expenses with a growth rate of 4.0%, leading to a 1.4% increase in same-store net operating income (SSNOI). The company anticipates an average annual normalized funds from operations per share (FFOps) growth of 1.8% from 2025 to 2030, suggesting a steady increase in profitability. Additionally, the focus on acquiring multifamily properties in favorable job growth and household formation markets, particularly in the Southeastern and Southwestern United States, enhances the potential for cash flow expansion and long-term capital appreciation.

NexPoint Residential Trust Inc. is projected to experience flat year-over-year same-store revenue for 2025, alongside a 2.4% increase in expenses, leading to a -1.6% decrease in same-store net operating income (SSNOI), which falls within management's negative guidance range. Furthermore, estimates indicate a slight decline of 0.2% in normalized funds from operations (FFO) for 2025, followed by a more significant decrease of 7.6% in 2026, primarily due to the impact of interest rate swap expirations. Overall, the company has underperformed significantly within the apartment REIT sector, with a year-to-date decline of 26%, contrasting sharply with stable performance in the broader REIT market.