# EDGAR Filing Document

**Accession Number:** 0001620393
**File Stem:** 0000950170-25-100309
**Filing Date:** 2025-7
**Character Count:** 255927
**Document Hash:** 286dff8a66ce4f44cff5821d1e1e9412
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-100309.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0000950170-25-100309

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 74

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NexPoint Residential Trust, Inc.
- **CENTRAL INDEX KEY:** 0001620393
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 471181359
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36663
- **FILM NUMBER:** 251167501

**BUSINESS ADDRESS:**
- **STREET 1:** 300 CRESCENT COURT
- **STREET 2:** SUITE 700
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201
- **BUSINESS PHONE:** 214-276-6300

**MAIL ADDRESS:**
- **STREET 1:** 300 CRESCENT COURT
- **STREET 2:** SUITE 700
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201

?xml version='1.0' encoding='ASCII'? 10-Q

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **June 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to** 

**Commission File Number** 001-36663

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NexPoint Residential Trust, Inc.

**(Exact Name of Registrant as Specified in Its Charter)**

------

---

| | |
|:---|:---|
| Maryland | 47-1881359 |
| **(State or other Jurisdiction of**<br>**Incorporation or Organization)** | **(I.R.S. Employer**<br>**Identification No.)** |

---

---

| | |
|:---|:---|
| 300 Crescent Court**,** Suite 700**,** Dallas**,** Texas<br>**(Address of Principal Executive Offices)** | 75201 |
| 300 Crescent Court**,** Suite 700**,** Dallas**,** Texas<br>**(Address of Principal Executive Offices)** | **(Zip Code)** |

---

(214) 276-6300

**(Telephone Number, Including Area Code)**

**Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, par value $0.01 per share | NXRT | New York Stock Exchange |

---

------

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ☒ | Accelerated Filer | ☐ |
| Non-Accelerated Filer | ☐ | Smaller reporting company | ☐ |
| Emerging growth company | ☐ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 30, 2025, the registrant had 25,364,470 shares of its common stock, par value $0.01 per share, outstanding.

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**NEXPOINT RESIDENTIAL TRUST, INC.**

**Form 10-Q**

**Quarter Ended June 30, 2025**

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [<u>Cautionary Statement Regarding Forward-Looking Statements</u>](#cautionary_statement_regarding_forwardlo) | [<u>Cautionary Statement Regarding Forward-Looking Statements</u>](#cautionary_statement_regarding_forwardlo) | ii |
|  | **PART I—FINANCIAL INFORMATION** | **PART I—FINANCIAL INFORMATION** |
| &nbsp;&nbsp;&nbsp;Item 1. | Financial Statements |  |
|  | [<u>Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024</u>](#combined_consolidated_balance_sheets) | 1 |
|  | [<u>Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024</u>](#combined_consolidated_statements_operati) | 2 |
|  | [<u>Consolidated Unaudited Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024</u>](#combined_consolidated_statement_equity) | 3 |
|  | [<u>Consolidated Unaudited Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024</u>](#combined_consolidated_statements_cash_fl) | 5 |
|  | [<u>Notes to Consolidated Unaudited Financial Statements</u>](#notes_to_consolidated_financial_statemen) | 7 |
| &nbsp;&nbsp;&nbsp;Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | 22 |
| &nbsp;&nbsp;&nbsp;Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_7a_quantitative_qualitative_disclos) | 44 |
| &nbsp;&nbsp;&nbsp;Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_procedures) | 45 |
|  | **PART II—OTHER INFORMATION** | **PART II—OTHER INFORMATION** |
| &nbsp;&nbsp;&nbsp;Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 46 |
| &nbsp;&nbsp;&nbsp;Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 46 |
| &nbsp;&nbsp;&nbsp;Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Securities</u>](#item_2_unregistered_sales_equity_securit) | 46 |
| &nbsp;&nbsp;&nbsp;Item 3. | [<u>Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | 46 |
| &nbsp;&nbsp;&nbsp;Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 47 |
| &nbsp;&nbsp;&nbsp;Item 5. | [<u>Other Information</u>](#item_5_or_information) | 47 |
| &nbsp;&nbsp;&nbsp;Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 48 |
| &nbsp;&nbsp;&nbsp;[<u>Signatures</u>](#signatures) |  | 49 |

---

i

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**Cautionary Statement Regarding Forward-Looking Statements**

This quarterly report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to our liquidity and capital resources, the performance of our properties and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including market conditions and demographics) are forward-looking statements. We caution investors that any forward-looking statements presented in this quarterly report are based on management's current beliefs and assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result" and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements.

Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•unfavorable changes in market and economic conditions in the United States and globally and in the specific markets where our properties are located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•macroeconomic trends including inflation and high interest rates may continue to, and other trends such as tariffs may, adversely affect our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the ownership of real estate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•limited ability to dispose of assets because of the relative illiquidity of real estate investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our multifamily properties are concentrated in certain geographic markets in the Southeastern and Southwestern United States, which makes us more susceptible to adverse developments in those markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increased risks associated with our strategy of acquiring value-enhancement multifamily properties rather than more conservative investment strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to succeed in new markets may have adverse consequences on our performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential reforms to the Federal Home Loan Mortgage Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•competition could limit our ability to acquire attractive investment opportunities, which could adversely affect our profitability and impede our growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•competition and any increased affordability of residential homes could limit our ability to lease our apartments or increase or maintain rents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the relatively low residential mortgage rates may result in potential renters purchasing residences rather than leasing them, and as a result, cause a decline in our occupancy rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that we may fail to consummate future property acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure of acquisitions to yield anticipated results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with increases in interest rates and our ability to issue additional debt or equity securities in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with selling apartment communities, which could limit our operational and financial flexibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•contingent or unknown liabilities related to properties or businesses that we have acquired or may acquire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•lack of or insufficient amounts of insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that our environmental assessments may not identify all potential environmental liabilities and our remediation actions may be insufficient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•high costs associated with the investigation or remediation of environmental contamination, including asbestos, lead-based paint, chemical vapor, subsurface contamination and mold growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•high costs associated with the compliance with various accessibility, environmental, building and health and safety laws and regulations, such as the Americans with Disabilities Act of 1990 and the Fair Housing Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with limited warranties we may obtain when purchasing properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•exposure to decreases in market rents due to our short-term leases;

ii

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with operating through joint ventures and funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our dependence on information systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with breaches of our data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs associated with being a public company, including compliance with securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our substantial current indebtedness and indebtedness we may incur in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with derivatives or hedging activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with representations and warranties made by us in connection with sales of our properties may subject us to liability that could result in losses and could harm our operating results and, therefore, distributions we make to our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•loss of key personnel of NexPoint Advisors, L.P. (our "Sponsor"), NexPoint Real Estate Advisors, L.P. (our "Adviser") and our property manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that we may not replicate the historical results achieved by other entities managed or sponsored by affiliates of our Adviser, members of our Adviser's management team or by our Sponsor or its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our Adviser's ability to terminate the Advisory Agreement (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to change our major policies, operations and targeted investments without stockholder consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the substantial fees and expenses we pay to our Adviser and its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with any potential internalization of our management functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•conflicts of interest and competing demands for time faced by our Adviser, our Sponsor and their officers and employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that we may compete with other entities affiliated with our Sponsor or property manager for properties and residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to maintain our status as a real estate investment trust ("REIT");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure of our operating partnership to be taxable as a partnership for U.S. federal income tax purposes, possibly causing us to fail to qualify for or to maintain REIT status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•compliance with REIT requirements, which may limit our ability to hedge our liabilities effectively and cause us to forgo otherwise attractive opportunities, liquidate certain of our investments or incur tax liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our ownership of interests in taxable REIT subsidiaries ("TRSs");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the recognition of taxable gains from the sale of properties as a result of the inability to complete certain like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that the Internal Revenue Service may consider certain sales of properties to be prohibited transactions, resulting in a 100% penalty tax on any taxable gain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that we may be subject to other tax liabilities that may reduce our cash flows and distributions on our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ineligibility of dividends payable by REITs for the reduced tax rates available for some dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the stock ownership restrictions of the Code for REITs and the stock ownership limit imposed by our charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of our board of directors to revoke our REIT qualification without stockholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•recent and potential legislative or regulatory tax changes or other actions affecting REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•foreign investors may be subject to U.S. federal income tax or withholding tax on distributions received from us or on proceeds and the disposition of our current common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the market for our common stock and the general volatility of the capital and credit markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to generate sufficient cash flows to service our outstanding indebtedness or pay distributions at expected levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with limitations of liability for and our indemnification of our directors and officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that legal proceedings we become involved in from time to time could adversely affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the risk that acts of violence could decrease the value of our assets and have an adverse effect on our business and results of operations;

iii

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the Highland Capital Management, L.P. bankruptcy, including related litigation and potential conflicts of interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any other risks included under Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on February 26, 2025 or under Part II, Item 1A, "Risk Factors" of this Quarterly Report on Form 10-Q.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this quarterly report. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by law.

iv

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**NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(in thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | **(Unaudited)** |  |
| **ASSETS** |  |  |
| Operating Real Estate Investments |  |  |
| &nbsp;&nbsp;Land | $359819 | $359819 |
| &nbsp;&nbsp;Buildings and improvements | 1744482 | 1738677 |
| &nbsp;&nbsp;Construction in progress | 4918 | 1267 |
| &nbsp;&nbsp;Furniture, fixtures, and equipment | 211014 | 202029 |
| Total Gross Operating Real Estate Investments | 2320233 | 2301792 |
| &nbsp;&nbsp;Accumulated depreciation and amortization | (556978) | (508569) |
| Total Net Operating Real Estate Investments | 1763255 | 1793223 |
| &nbsp;&nbsp;Cash and cash equivalents | 13623 | 23148 |
| &nbsp;&nbsp;Restricted cash | 34381 | 30769 |
| &nbsp;&nbsp;Accounts receivable, net | 14363 | 12337 |
| &nbsp;&nbsp;Prepaid and other assets | 6004 | 6102 |
| &nbsp;&nbsp;Fair value of interest rate swaps | 25575 | 41841 |
| **TOTAL ASSETS** | $1857201 | $1907420 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;Mortgages payable, net | $1466530 | $1463650 |
| &nbsp;&nbsp;Accounts payable and other accrued liabilities | 13151 | 11351 |
| &nbsp;&nbsp;Accrued real estate taxes payable | 13137 | 4260 |
| &nbsp;&nbsp;Accrued interest payable | 6734 | 7630 |
| &nbsp;&nbsp;Security deposit liability | 2902 | 2954 |
| &nbsp;&nbsp;Prepaid rents | 1269 | 1425 |
| &nbsp;&nbsp;Fair value of interest rate swaps | 424 |  |
| **Total Liabilities** | 1504147 | 1491270 |
| Redeemable noncontrolling interests in the OP | 5164 | 5782 |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;Preferred stock, $0.01 par value: 100,000,000 shares authorized; 0 shares issued |  |  |
| &nbsp;&nbsp;Common stock, $0.01 par value: 500,000,000 shares authorized; 25,364,470 and 25,403,537 shares issued and outstanding, respectively | 254 | 254 |
| &nbsp;&nbsp;Additional paid-in capital | 401622 | 407429 |
| &nbsp;&nbsp;Accumulated earnings less dividends | (78152) | (38030) |
| &nbsp;&nbsp;Accumulated other comprehensive income | 24166 | 40715 |
| **Total Stockholders' Equity** | 347890 | 410368 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $1857201 | $1907420 |

---

See Notes to Consolidated Financial Statements

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**NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**AND COMPREHENSIVE INCOME (LOSS)**

**(in thousands, except per share amounts)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;Rental income | $61230 | $62383 | $122670 | $127981 |
| &nbsp;&nbsp;Other income | 1919 | 1855 | 3695 | 3834 |
| Total revenues | 63149 | 64238 | 126365 | 131815 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses | 12529 | 13776 | 24997 | 27544 |
| &nbsp;&nbsp;Real estate taxes and insurance | 8485 | 8188 | 17487 | 17500 |
| &nbsp;&nbsp;Property management fees (1) | 1806 | 1872 | 3626 | 3830 |
| &nbsp;&nbsp;Advisory and administrative fees (2) | 1725 | 1734 | 3421 | 3477 |
| &nbsp;&nbsp;Corporate general and administrative expenses | 4499 | 4779 | 8956 | 9689 |
| &nbsp;&nbsp;Property general and administrative expenses | 2143 | 2651 | 4143 | 4932 |
| &nbsp;&nbsp;Depreciation and amortization | 24059 | 24442 | 48409 | 48765 |
| Total expenses | 55246 | 57442 | 111039 | 115737 |
| **Operating income before gain on sales of real estate** | 7903 | 6796 | 15326 | 16078 |
| &nbsp;&nbsp;Gain on sales of real estate (3) |  | 18686 |  | 50395 |
| **Operating income** | 7903 | 25482 | 15326 | 66473 |
| &nbsp;&nbsp;Interest expense | (15162) | (13971) | (29543) | (28362) |
| &nbsp;&nbsp;Loss on extinguishment of debt and modification costs |  | (255) |  | (801) |
| &nbsp;&nbsp;Casualty loss | (5) | (737) | (168) | (538) |
| &nbsp;&nbsp;Equity in earnings of affiliate | 59 | 53 | 114 | 91 |
| &nbsp;&nbsp;Miscellaneous income | 144 | 66 | 286 | 177 |
| **Net income (loss)** | (7061) | 10638 | (13985) | 37040 |
| **Net income (loss) attributable to redeemable noncontrolling interests in the OP** | (28) | 42 | (55) | 146 |
| **Net income (loss) attributable to common stockholders** | $(7033) | $10596 | $(13930) | $36894 |
| **Other comprehensive loss** |  |  |  |  |
| &nbsp;&nbsp;Unrealized losses on interest rate derivatives | (6442) | (7488) | (16614) | (4805) |
| **Total comprehensive income (loss)** | (13503) | 3150 | (30599) | 32235 |
| **Comprehensive income (loss) attributable to redeemable noncontrolling interests in the OP** | (53) | 12 | (120) | 127 |
| **Comprehensive income (loss) attributable to common stockholders** | $(13450) | $3138 | $(30479) | $32108 |
| **Weighted average common shares outstanding - basic** | 25384 | 25540 | 25416 | 25630 |
| **Weighted average common shares outstanding - diluted** | 25384 | 26309 | 25416 | 26331 |
| **Earnings (loss) per share - basic** | $(0.28) | $0.41 | $(0.55) | $1.44 |
| **Earnings (loss) per share - diluted** | $(0.28) | $0.40 | $(0.55) | $1.40 |

---

(1)Fees incurred to an affiliate of the noncontrolling limited partner of the Company's OP (see Note 8).

(2)Fees incurred to the Adviser (see Note 9).

(3)$31.5 million with a related party for the six months ended June 30, 2024 (see Note 9).

See Notes to Consolidated Financial Statements

------

**NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(dollars in thousands)**

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional** | **Accumulated<br>Earnings (Loss)** | **Accumulated Other** | **Common<br>Stock<br>Held in** |  |
| **Three Months ended June 30, 2025** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Paid-in<br>Capital** | **Less<br>Dividends** | **Comprehensive<br>Income (Loss)** | **Treasury<br>at Cost** | **Total** |
| **Balances, March 31, 2025** |  | $— | $25570810 | $256 | $407205 | $(58135) | $30583 | $— | $379909 |
| &nbsp;&nbsp;Net loss attributable to common stockholders |  |  |  |  |  | (7033) |  |  | (7033) |
| &nbsp;&nbsp;Vesting of stock-based compensation |  |  | 16769 |  | 2072 |  |  |  | 2072 |
| &nbsp;&nbsp;Repurchases of common stock |  |  |  |  |  |  |  | (7657) | (7657) |
| &nbsp;&nbsp;Retirement of common stock held in treasury |  |  | (223109) | (2) | (7655) |  |  | 7657 |  |
| &nbsp;&nbsp;Common stock dividends declared ($0.51 per share) |  |  |  |  |  | (13334) |  |  | (13334) |
| &nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  |  | (6417) |  | (6417) |
| &nbsp;&nbsp;Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  |  | 350 |  |  | 350 |
| **Balances, June 30, 2025** |  | $— | 25364470 | $254 | $401622 | $(78152) | $24166 | $— | $347890 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional** | **Accumulated<br>Earnings (Loss)** | **Accumulated Other** | **Common<br>Stock<br>Held in** |  |
| **Six Months ended June 30, 2025** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Paid-in<br>Capital** | **Less<br>Dividends** | **Comprehensive<br>Income (Loss)** | **Treasury<br>at Cost** | **Total** |
| **Balances, December 31, 2024** |  | $— | $25403537 | $254 | $407429 | $(38030) | $40715 | $— | $410368 |
| &nbsp;&nbsp;Net loss attributable to common stockholders |  |  |  |  |  | (13930) |  |  | (13930) |
| &nbsp;&nbsp;Vesting of stock-based compensation |  |  | 184042 | 2 | 1848 |  |  |  | 1850 |
| &nbsp;&nbsp;Repurchases of common stock |  |  |  |  |  |  |  | (7657) | (7657) |
| &nbsp;&nbsp;Retirement of common stock held in treasury |  |  | (223109) | (2) | (7655) |  |  | 7657 |  |
| &nbsp;&nbsp;Common stock dividends declared ($1.02 per share) |  |  |  |  |  | (26586) |  |  | (26586) |
| &nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  |  | (16549) |  | (16549) |
| &nbsp;&nbsp;Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  |  | 394 |  |  | 394 |
| **Balances, June 30, 2025** |  | $— | 25364470 | $254 | $401622 | $(78152) | $24166 | $— | $347890 |

---

See Notes to Consolidated Financial Statements

------

**NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Continued)**

**(dollars in thousands)**

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional** | **Accumulated<br>Earnings (Loss)** | **Accumulated Other** | **Common Stock<br>Held in** |  |
| **Three Months ended June 30, 2024** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Paid-in<br>Capital** | **Less<br>Dividends** | **Comprehensive<br>Income (Loss)** | **Treasury<br>at Cost** | **Total** |
| **Balances, March 31, 2024** |  | $— | 25774730 | $257 | $414243 | $25742 | $72537 | $— | $512779 |
| &nbsp;&nbsp;Net income attributable to common stockholders |  |  |  |  |  | 10596 |  |  | 10596 |
| &nbsp;&nbsp;Vesting of stock-based compensation |  |  | 67485 | 1 | 2443 |  |  |  | 2444 |
| &nbsp;&nbsp;Repurchases of common stock |  |  |  |  |  |  |  | (14573) | (14573) |
| &nbsp;&nbsp;Retirement of common stock held in treasury |  |  | (438678) | (4) | (14569) |  |  | 14573 |  |
| &nbsp;&nbsp;Common stock dividends declared ($0.46 per share) |  |  |  |  |  | (12071) |  |  | (12071) |
| &nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  |  | (7458) |  | (7458) |
| &nbsp;&nbsp;Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  |  | (572) |  |  | (572) |
| **Balances, June 30, 2024** |  | $— | 25403537 | $254 | $402117 | $23695 | $65079 | $— | $491145 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional** | **Accumulated<br>Earnings (Loss)** | **Accumulated Other** | **Common Stock<br>Held in** |  |
| **Six Months ended June 30, 2024** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Paid-in<br>Capital** | **Less<br>Dividends** | **Comprehensive<br>Income (Loss)** | **Treasury<br>at Cost** | **Total** |
| **Balances, December 31, 2023** |  | $— | 25674313 | $256 | $413010 | $11493 | $69865 | $— | $494624 |
| &nbsp;&nbsp;Net income attributable to common stockholders |  |  |  |  |  | 36894 |  |  | 36894 |
| &nbsp;&nbsp;Vesting of stock-based compensation |  |  | 167902 | 2 | 3676 |  |  |  | 3678 |
| &nbsp;&nbsp;Repurchases of common stock |  |  |  |  |  |  |  | (14573) | (14573) |
| &nbsp;&nbsp;Retirement of common stock held in treasury |  |  | (438678) | (4) | (14569) |  |  | 14573 |  |
| &nbsp;&nbsp;Common stock dividends declared ($0.92 per share) |  |  |  |  |  | (24351) |  |  | (24351) |
| &nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  |  | (4786) |  | (4786) |
| &nbsp;&nbsp;Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP |  |  |  |  |  | (341) |  |  | (341) |
| **Balances, June 30, 2024** |  | $— | 25403537 | $254 | $402117 | $23695 | $65079 | $— | $491145 |

---

See Notes to Consolidated Financial Statements

------

**NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net income (loss) | $(13985) | $37040 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;Gain on sales of real estate (1) |  | (50395) |
| &nbsp;&nbsp;Depreciation and amortization | 48409 | 48765 |
| &nbsp;&nbsp;Amortization/write-off of deferred financing costs and debt prepayment penalties | 3040 | 2221 |
| &nbsp;&nbsp;Change in fair value on derivative instruments included in interest expense | (14705) | (26276) |
| &nbsp;&nbsp;Net cash received on derivative settlements | 17024 | 28346 |
| &nbsp;&nbsp;Amortization/write-off of fair value adjustment of assumed debt | (53) | (53) |
| &nbsp;&nbsp;Provision for bad debts, net | 675 | 2305 |
| &nbsp;&nbsp;Vesting of stock-based compensation | 4810 | 5231 |
| &nbsp;&nbsp;Insurance proceeds received for business interruption | 324 | 649 |
| &nbsp;&nbsp;Equity in earnings of affiliate | (114) | (91) |
| &nbsp;&nbsp;Casualty (gains) loss | (1836) | 107 |
| Changes in operating assets and liabilities, net of effects of sales and acquisitions: |  |  |
| &nbsp;&nbsp;Accounts receivable | (2402) | (2066) |
| &nbsp;&nbsp;Prepaid and other assets | (963) | (2950) |
| &nbsp;&nbsp;Operating liabilities | (899) | (5872) |
| &nbsp;&nbsp;Real estate taxes payable | 8877 | 2385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 48202 | 39346 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;Net proceeds from sales of real estate |  | 141608 |
| &nbsp;&nbsp;Insurance proceeds received from casualty losses |  | 1227 |
| &nbsp;&nbsp;Additions to real estate investments | (18689) | (18306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (18689) | 124529 |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;Mortgage payments |  | (88300) |
| &nbsp;&nbsp;Credit facilities payments |  | (24000) |
| &nbsp;&nbsp;Interest rate cap fees paid |  | (706) |
| &nbsp;&nbsp;Prepayment penalties on extinguished debt |  | (729) |
| &nbsp;&nbsp;Payments for taxes related to net share settlement of stock-based compensation |  | (1510) |
| &nbsp;&nbsp;Distributions to redeemable noncontrolling interests in the OP | (104) | (96) |
| &nbsp;&nbsp;Cash settlement of stock-based compensation | (519) |  |
| &nbsp;&nbsp;Repurchase of common stock | (7657) | (14573) |
| &nbsp;&nbsp;Dividends paid to common stockholders | (27146) | (24593) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (35426) | (154507) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | (5913) | 9368 |
| Cash, cash equivalents and restricted cash, beginning of period | 53917 | 45279 |
| Cash, cash equivalents and restricted cash, end of period | $48004 | $54647 |

---

(1)$31.5 million with a related party for the six months ended June 30, 2024 (see Note 9).

See Notes to Consolidated Financial Statements

------

**]NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS]**

**(in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| &nbsp;&nbsp;Interest paid | $42166 | $54068 |
| **Supplemental Disclosure of Noncash Activities** |  |  |
| &nbsp;&nbsp;Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP | 394 | (341) |
| &nbsp;&nbsp;Capitalized construction costs included in accounts payable and other accrued liabilities | 2776 | 3607 |
| &nbsp;&nbsp;Change in fair value on derivative instruments designated as hedges | (16614) | (4805) |
| &nbsp;&nbsp;Decrease in dividends payable upon vesting of restricted stock units | (560) | (242) |
| &nbsp;&nbsp;Write-off of assets due to casualty losses |  | 1 |
| &nbsp;&nbsp;Write-off of deferred financing costs |  | 71 |

---

See Notes to Consolidated Financial Statements

------

**NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1. Organization and Description of Business**

NexPoint Residential Trust, Inc. (the "Company," "we," "our") was incorporated in Maryland on September 19, 2014, and has elected to be taxed as a real estate investment trust ("REIT") and the Company believes the current organization and method of operation will enable it to maintain its status as a REIT. The Company is focused on "value-add" multifamily investments primarily located in the Southeastern and Southwestern United States. Substantially all of the Company's business is conducted through NexPoint Residential Trust Operating Partnership, L.P. (the "OP"), the Company's operating partnership. The Company also consolidates certain variable interest entities ("VIEs") in accordance with Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") 810 Consolidation. The Company controls and consolidates the OP as a VIE. The Company owns its properties (the "Portfolio") through the OP and its wholly owned taxable REIT subsidiary (the "TRS"). The OP owns approximately 99.9% of the Portfolio; the TRS owns approximately 0.1% of the Portfolio. The Company's wholly owned subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC (the "OP GP"), is the sole general partner of the OP. As of June 30, 2025, there were 26,053,988 common units in the OP ("OP Units") outstanding, of which 25,951,154, or 99.6%, were owned by the Company and 102,834, or 0.4%, were owned by noncontrolling limited partners (see Note 8).

The Company is externally managed by NexPoint Real Estate Advisors, L.P. (the "Adviser"), through an agreement dated March 16, 2015, as amended, and renewed on February 24, 2025 for a one-year term (the "Advisory Agreement"), by and among the Company, the OP and the Adviser. The Adviser conducts substantially all of the Company's operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Advisory Agreement is in effect. All of the Company's investment decisions are made by the Adviser, subject to general oversight by the Adviser's investment committee and the Company's board of directors (the "Board"). The Adviser is wholly owned by NexPoint Advisors, L.P. (the "Sponsor").

The Company's investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a value-add program. Consistent with the Company's policy to acquire assets for both income and capital gain, the Company intends to hold at least majority interests in its properties for long-term appreciation and to engage in the business of directly or indirectly acquiring, owning, and operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities primarily in the Southeastern and Southwestern United States consistent with its investment objectives. Economic and market conditions may influence the Company to hold properties for different periods of time. From time to time, the Company may sell a property if, among other deciding factors, the sale would be in the best interest of its stockholders.

The Company may allocate up to 30% of the Portfolio to investments in real estate-related debt and securities with the potential for high current income or total returns. These allocations may include first and second mortgages and subordinated, bridge, mezzanine, construction and other loans, as well as debt securities related to or secured by multifamily real estate and common and preferred equity securities, which may include securities of other REITs or real estate companies.

**2. Summary of Significant Accounting Policies**

Readers of this Quarterly Report on Form 10-Q ("Quarterly Report") should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2024, which are included in our 2024 Annual Report on Form 10-K ("2024 Annual Report"), filed with the United States Securities and Exchange Commission ("SEC") on February 26, 2025 and also available on our website (nxrt.nexpoint.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements in our [<u>2024 Annual Report</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001620393/000095017025027741/nxrt-20241231.htm) for further discussion of our significant accounting policies and estimates. Information contained on, or accessible through, our website is not incorporated by reference into and does not constitute a part of this Quarterly Report or any other report or documents we file or furnish with the SEC.

*Impairment*

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and record an impairment loss if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company's impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment. As of June 30, 2025, the Company had not recorded any impairment on its real estate assets.

------

*Held for Sale*

The Company periodically classifies real estate assets as held for sale when certain criteria are met in accordance with U.S. generally accepted accounting principles ("GAAP"). At that time, the Company presents the net real estate assets and the net mortgage payables associated with the real estate held for sale separately in its consolidated balance sheet, and the Company ceases recording depreciation and amortization expense related to that property. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. As of June 30, 2025 and December 31, 2024, there were no properties classified as held for sale.

*Recent Accounting Pronouncements*

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires disclosures of disaggregated information about certain income statement expense line items on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2026 with early adoption permitted, and should be applied prospectively, with the option to apply retrospectively. The Company is currently evaluating the impact of adopting the amendments on its disclosures.

**3. Real Estate Investments**

*Acquisitions*

There were no acquisitions of real estate during the six months ended June 30, 2025 and 2024.

*Dispositions*

There were no dispositions of real estate during the six months ended June 30, 2025.

The Company sold two properties during the six months ended June 30, 2024, as detailed in the table below (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property Name** |  | **Location** | **Date of Sale** | **Sales Price** | **Net Cash Proceeds (1)** | **Gain on Sale <br>of Real Estate** |
| Old Farm | (2) | Houston, Texas | March 1, 2024 | $103000 | $102704 | $31548 |
| Radbourne Lake |  | Charlotte, North Carolina | April 30, 2024 | 39250 | 38904 | 18847 |
|  |  |  |  | $142250 | $141608 | $50395 |

---

(1)Represents sales price, net of closing costs.

(2)Old Farm was sold to NexBank Capital, Inc. ("NexBank Capital"). A director and officer of the Company, also (i) is the beneficiary of a trust that indirectly owns 100% of the limited partnership interests in the parent of the Adviser and directly owns 100% of the general partnership interests in the parent of the Adviser and (ii) is a director of NexBank Capital, the holding company of NexBank, directly owns a minority of the common stock of NexBank, and is the beneficiary of a trust that directly owns a substantial portion of the common stock of NexBank. See Note 9.

*NXRT Captive*

On July 6, 2023, NexPoint Captive Insurance Company, Inc. ("NexPoint Captive") was authorized to transact business in the State of Montana as a captive insurance company. NexPoint Captive began providing rental insurance coverage to NXRT properties and properties managed by affiliates of the Adviser on August 1, 2023. The OP purchased 100% ownership interest and has the power to direct the activities of NexPoint Captive. NexPoint Captive is required to maintain a cash reserve of $250,000 to fund potential claims, which is classified as restricted cash on the consolidated balance sheet. As of June 30, 2025 and December 31, 2024, the Company had approximately $0.1 million and $0.3 million accrued for case reserves, respectively, which is reflected in accounts payable and other accrued liabilities on the consolidated balance sheets. The Company consolidates NexPoint Captive in its consolidated financial statements.

*Casualty Losses*

The Company experienced certain casualty events during the six months ended June 30, 2025 and 2024. Certain casualty proceeds from insurance are recorded in casualty gains (loss) on the consolidated statements of operations and comprehensive income (loss) in relation to these events. Events that are considered to be small, standard and not extraordinary are recorded through property operating expense. Insurance proceeds received from casualty losses are recognized on the Company's consolidated statements of cash flows as investing activities. The Company differentiates proceeds received from business interruption and casualty gains (losses) in accounting for the transactions. Business interruption proceeds are specifically insurance proceeds to recoup lost rents due to a qualifying event(s)

------

(i.e., fires, floods, storms, water damage, etc.) as determined by the insurance policy and are reflected as operating cash flows in the accompanying consolidated statements of cash flows. Business interruption that has been accrued by the Company is presented in miscellaneous income in the accompanying consolidated statements of operations and comprehensive income (loss). Casualty gains (losses) are distinctly attributable to damage and subsequent write down of the property (loss), and the recoupment of funds from the insurance policy, as it relates to the damage. Such proceeds received from the damage to the property are accounted for as a gain to the Company, and potentially offset losses attributable to net write off of damaged assets.

During the three and six months ended June 30, 2025, the Company recognized $0.0 million and $0.2 million in casualty losses, respectively, and $0.1 million and $0.3 million in business interruption proceeds on the consolidated statement of operations and comprehensive income (loss), due to casualty events, respectively.

During the three and six months ended June 30, 2024, the Company recognized $0.7 million and $0.5 million in casualty losses, respectively, and $0.1 million and $0.2 million in business interruption proceeds on the consolidated statement of operations and comprehensive income (loss), due to casualty events, respectively.

**4. Debt**

*Mortgage Debt*

The following table contains summary information concerning the mortgage debt of the Company as of June 30, 2025 (dollars in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Operating Properties** | **Type** | **Term (months)** | **Outstanding<br>Principal** |  | **Interest Rate (1)** | **Maturity Date** |
| Residences at West Place | Fixed | 120 | $33817 |  | 4.24% | 10/1/2028 |
| Arbors of Brentwood | Floating | 84 | 39977 |  | 5.41% | 10/1/2031 |
| Avant at Pembroke Pines | Floating | 84 | 248185 |  | 5.41% | 10/1/2031 |
| Bella Vista | Floating | 84 | 37400 |  | 5.41% | 10/1/2031 |
| Brandywine I & II | Floating | 84 | 59526 |  | 5.41% | 10/1/2031 |
| Cornerstone | Floating | 84 | 45815 |  | 5.41% | 10/1/2031 |
| Estates on Maryland | Floating | 84 | 37345 |  | 5.41% | 10/1/2031 |
| High House at Cary | Floating | 84 | 32478 |  | 5.41% | 10/1/2031 |
| Residences at Glenview Reserve | Floating | 84 | 33271 |  | 5.41% | 10/1/2031 |
| Sabal Palm at Lake Buena Vista | Floating | 84 | 56220 |  | 5.41% | 10/1/2031 |
| Six Forks Station | Floating | 84 | 30430 |  | 5.41% | 10/1/2031 |
| Summers Landing | Floating | 84 | 14135 |  | 5.41% | 10/1/2031 |
| The Adair | Floating | 84 | 33229 |  | 5.41% | 10/1/2031 |
| The Enclave | Floating | 84 | 33440 |  | 5.41% | 10/1/2031 |
| The Heritage | Floating | 84 | 29810 |  | 5.41% | 10/1/2031 |
| The Venue on Camelback | Floating | 84 | 36465 |  | 5.41% | 10/1/2031 |
| The Verandas at Lake Norman | Floating | 84 | 30113 |  | 5.41% | 10/1/2031 |
| Versailles II | Floating | 84 | 15706 |  | 5.41% | 10/1/2031 |
| Arbors on Forest Ridge | Floating | 84 | 17307 |  | 5.41% | 12/1/2031 |
| Atera Apartments | Floating | 84 | 38555 |  | 5.41% | 12/1/2031 |
| Bella Solara | Floating | 84 | 37772 |  | 5.41% | 12/1/2031 |
| Bloom | Floating | 84 | 60848 |  | 5.41% | 12/1/2031 |
| Courtney Cove | Floating | 84 | 31596 |  | 5.41% | 12/1/2031 |
| Creekside at Matthews | Floating | 84 | 28703 |  | 5.41% | 12/1/2031 |
| Cutter's Point | Floating | 84 | 18994 |  | 5.41% | 12/1/2031 |
| Fairways at San Marcos | Floating | 84 | 55056 |  | 5.41% | 12/1/2031 |
| Madera Point | Floating | 84 | 29676 |  | 5.41% | 12/1/2031 |
| Parc500 | Floating | 84 | 30012 |  | 5.41% | 12/1/2031 |
| Rockledge Apartments | Floating | 84 | 78444 |  | 5.41% | 12/1/2031 |
| Seasons 704 Apartments | Floating | 84 | 33960 |  | 5.41% | 12/1/2031 |
| The Preserve at Terrell Mill | Floating | 84 | 74341 |  | 5.41% | 12/1/2031 |
| The Summit at Sabal Park | Floating | 84 | 26735 |  | 5.41% | 12/1/2031 |
| Torreyana Apartments | Floating | 84 | 43153 |  | 5.41% | 12/1/2031 |
| Venue at 8651 | Floating | 84 | 24620 |  | 5.41% | 12/1/2031 |
| Versailles | Floating | 84 | 26108 |  | 5.41% | 12/1/2031 |
|  |  |  | $1503242 |  |  |  |
| Fair market value adjustment |  |  | 344 | (2) |  |  |
| Deferred financing costs, net of accumulated amortization of $4,046 |  |  | (37056) |  |  |  |
|  |  |  | $1466530 |  |  |  |

---

(1)Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. The reference rate used in our Portfolio is 30-Day Average Secured Overnight Financing Rate ("SOFR"). As of June 30, 2025, SOFR was 4.32%.

------

(2)The Company reflected a valuation adjustment on its fixed rate debt for Residences at West Place to adjust it to fair market value on its respective date of acquisition for the difference between the fair value and the assumed principal amount of debt. The difference is amortized into interest expense over the remaining terms of the mortgages.

The weighted average interest rate of the Company's mortgage indebtedness was 5.38% as of June 30, 2025 and 5.56% as of December 31, 2024. As of June 30, 2025, the adjusted weighted average interest rate of the Company's mortgage indebtedness was 3.51% which excludes the effect of interest rate caps. For purposes of calculating the adjusted weighted average interest rate of the outstanding mortgage indebtedness, the Company includes the weighted average fixed rate of 1.36% for its combined $0.9 billion notional amount of interest rate swap agreements, which effectively fix the interest rate on $0.9 billion of the Company's floating rate mortgage debt (see Note 5).

Each of the Company's mortgages is a non-recourse obligation subject to customary provisions. The loan agreements contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the documents evidencing the loan, defaults in payments under any other security instrument covering any part of the property, whether junior or senior to the loan, and bankruptcy or other insolvency events. As of June 30, 2025 and December 31, 2024, the Company believes it is in compliance with all provisions.

*Credit Facility*

On February 28, 2025, the Company agreed to reduce the available borrowing on the Corporate Credit Facility by $250.0 million. The Corporate Credit Facility matured on June 30, 2025 with respect to the revolving commitments. As of June 30, 2025 and December 31, 2024, the Company had $0.0 million outstanding on the Corporate Credit Facility and $0.0 million and $350.0 million, respectively, available for borrowing under the Corporate Credit Facility.

*Deferred Financing Costs*

The Company defers costs incurred in obtaining financing and amortizes the costs over the terms of the related loans using the straight-line method, which approximates the effective interest method. Deferred financing costs, net of amortization, are recorded as a reduction from the related debt on the Company's consolidated balance sheets. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to loss on extinguishment of debt and modification costs (see "Loss on Extinguishment of Debt and Modification Costs" below). During the three and six months ended June 30, 2025, amortization of deferred financing costs of approximately $1.6 million and $3.3 million, respectively, is included in interest expense on the consolidated statements of operations and comprehensive income (loss). During the three and six months ended June 30, 2024, amortization of deferred financing costs of approximately $0.7 million and $1.4 million, respectively, is included in interest expense on the consolidated statements of operations and comprehensive income (loss).

*Loss on Extinguishment of Debt and Modification Costs*

Loss on extinguishment of debt and modification costs includes prepayment penalties and defeasance costs incurred on the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment. During the three and six months ended June 30, 2025, the Company recognized losses on extinguishment of debt of $0.0 million and $0.0 million, respectively. During the three and six months ended June 30, 2024, the Company recognized losses on extinguishment of debt of $0.3 million and $0.8 million, respectively.

*Schedule of Debt Maturities*

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2025 are as follows (in thousands):

---

| | |
|:---|:---|
|  | **Operating<br>Properties** |
| 2025 | $— |
| 2026 |  |
| 2027 |  |
| 2028 | 33817 |
| 2029 |  |
| Thereafter | 1469425 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1503242 |

---

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**5. Fair Value of Derivatives and Financial Instruments**

*Derivative Financial Instruments and Hedging Activities*

In the normal course of business, our operations are exposed to market risks, including the effect of changes in interest rates. We may enter into derivative financial instruments to offset this underlying market risk. There have been no significant changes in our policy and strategy from what was disclosed in our 2024 Annual Report.

LIBOR ceased publication on June 30, 2023. On July 1, 2023, LIBOR rates were replaced with SOFR as the reference rate for most LIBOR debt and derivative instruments. For the Company's interest rate swaps, the reference transitioned from one-month LIBOR to the daily compounded average of SOFR plus a 0.11448% adjustment ("Adjusted SOFR").

As of June 30, 2025, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Effective Date** | **Termination Date** | **Counterparty** | **Notional Amount** | **Fixed Rate (1)** |  |
| September 1, 2019 | September 1, 2026 | KeyBank | $100000 | 1.462% |  |
| September 1, 2019 | September 1, 2026 | KeyBank | 125000 | 1.302% |  |
| January 3, 2020 | September 1, 2026 | KeyBank | 92500 | 1.609% |  |
| March 4, 2020 | June 1, 2026 | Truist | 100000 | 0.820% |  |
| June 1, 2021 | September 1, 2026 | KeyBank | 200000 | 0.845% |  |
| June 1, 2021 | September 1, 2026 | KeyBank | 200000 | 0.953% |  |
| April 3, 2025 | April 1, 2030 | JPMorgan | 100000 | 3.489% |  |
|  |  |  | $917500 | 1.361% | (2) |

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(1)The floating rate option for the interest rate swaps is Adjusted SOFR other than for the JPMorgan swap which is based on SOFR. As of June 30, 2025, Adjusted SOFR and SOFR were 4.44% and 4.32%, respectively.

(2)Represents the weighted average fixed rate of the interest rate swaps.

As of June 30, 2025, the Company had the following interest rate swap that was designated as a cash flow hedge of interest rate risk with a future effective date (dollars in thousands):

*Future Swaps*

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| | | | | |
|:---|:---|:---|:---|:---|
| **Effective Date** | **Termination Date** | **Counterparty** | **Notional Amount** | **Fixed Rate (1)** |
| September 1, 2026 | January 1, 2027 | KeyBank | $92500 | 1.798% |

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(1)The floating rate option for the interest rate swap is Adjusted SOFR. As of June 30, 2025, Adjusted SOFR was 4.44%.

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Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements but either do not meet the strict requirements to apply hedge accounting in accordance with FASB ASC 815, *Derivatives and Hedging*, or the Company has elected not to designate such derivatives as hedges. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in net income (loss) as interest expense.

As of June 30, 2025, the Company had the following interest rate caps outstanding that were not designated as cash flow hedges of interest rate risk (dollars in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Properties** | **Type** | **Maturity Date** | **Notional** | **Strike Rate** |
| Rockledge Apartments | Floating | 12/1/2025 | $93129 | 6.45% |
| The Preserve at Terrell Mill | Floating | 12/1/2025 | 71098 | 6.45% |
| Fairways at San Marcos | Floating | 12/1/2025 | 60228 | 6.70% |
| Bloom | Floating | 12/1/2025 | 59830 | 6.70% |
| Torreyana Apartments | Floating | 12/1/2025 | 50580 | 6.70% |
| Cornerstone | Floating | 12/1/2025 | 46804 | 6.66% |
| Atera Apartments | Floating | 12/1/2025 | 46198 | 6.45% |
| Silverbrook | Floating | 12/1/2025 | 46088 | 6.45% |
| Bella Solara | Floating | 12/1/2025 | 40328 | 6.70% |
| Versailles | Floating | 12/1/2025 | 40247 | 6.45% |
| Courtney Cove | Floating | 12/1/2025 | 36146 | 6.70% |
| Madera Point | Floating | 12/1/2025 | 34457 | 6.70% |
| Seasons 704 Apartments | Floating | 12/1/2025 | 33132 | 6.70% |
| The Summit at Sabal Park | Floating | 12/1/2025 | 30826 | 6.70% |
| Creekside at Matthews | Floating | 12/1/2025 | 29648 | 6.45% |
| Parc500 | Floating | 12/1/2025 | 29416 | 6.45% |
| Cutter's Point | Floating | 12/1/2025 | 21524 | 6.45% |
| Arbors on Forest Ridge | Floating | 12/1/2025 | 19184 | 6.70% |
| Venue at 8651 | Floating | 12/1/2025 | 18690 | 6.45% |
| The Venue on Camelback | Floating | 2/1/2026 | 42788 | 6.07% |
| Avant at Pembroke Pines | Floating | 10/1/2027 | 248185 | 8.16% |
| Brandywine I & II | Floating | 10/1/2027 | 59526 | 8.16% |
| Sabal Palm at Lake Buena Vista | Floating | 10/1/2027 | 56220 | 8.41% |
| Cornerstone | Floating | 10/1/2027 | 45815 | 8.66% |
| Arbors of Brentwood | Floating | 10/1/2027 | 39977 | 8.16% |
| Bella Vista | Floating | 10/1/2027 | 37400 | 8.91% |
| Estates on Maryland | Floating | 10/1/2027 | 37345 | 8.91% |
| The Venue on Camelback | Floating | 10/1/2027 | 36465 | 8.16% |
| The Enclave | Floating | 10/1/2027 | 33440 | 8.66% |
| Residences at Glenview Reserve | Floating | 10/1/2027 | 33271 | 8.16% |
| The Adair | Floating | 10/1/2027 | 33229 | 8.16% |
| High House at Cary | Floating | 10/1/2027 | 32478 | 8.16% |
| Six Forks Station | Floating | 10/1/2027 | 30430 | 8.16% |
| The Verandas at Lake Norman | Floating | 10/1/2027 | 30113 | 8.16% |
| The Heritage | Floating | 10/1/2027 | 29810 | 8.91% |
| Versailles II | Floating | 10/1/2027 | 15706 | 8.16% |
| Summers Landing | Floating | 10/1/2027 | 14135 | 8.66% |
| Rockledge Apartments | Floating | 12/1/2027 | 78444 | 7.66% |
| The Preserve at Terrell Mill | Floating | 12/1/2027 | 74341 | 7.66% |
| Bloom | Floating | 12/1/2027 | 60848 | 7.66% |
| Fairways at San Marcos | Floating | 12/1/2027 | 55056 | 7.66% |
| Torreyana Apartments | Floating | 12/1/2027 | 43153 | 7.66% |
| Atera Apartments | Floating | 12/1/2027 | 38555 | 7.66% |
| Bella Solara | Floating | 12/1/2027 | 37772 | 7.66% |
| Seasons 704 Apartments | Floating | 12/1/2027 | 33960 | 7.66% |
| Courtney Cove | Floating | 12/1/2027 | 31596 | 7.66% |
| Parc500 | Floating | 12/1/2027 | 30012 | 7.66% |
| Madera Point | Floating | 12/1/2027 | 29676 | 7.66% |
| Creekside at Matthews | Floating | 12/1/2027 | 28703 | 7.66% |
| The Summit at Sabal Park | Floating | 12/1/2027 | 26735 | 7.66% |
| Versailles | Floating | 12/1/2027 | 26108 | 7.66% |
| Venue at 8651 | Floating | 12/1/2027 | 24620 | 7.66% |
| Cutter's Point | Floating | 12/1/2027 | 18994 | 7.66% |
| Arbors on Forest Ridge | Floating | 12/1/2027 | 17307 | 7.66% |
|  |  |  | $2319766 | 7.49% |

---

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As of June 30, 2025, the Company had the following interest rate cap outstanding that was designated as a cash flow hedge of interest rate risk (dollars in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Property** | **Type** | **Maturity Date** | **Notional** | **Strike Rate** |
| The Verandas at Lake Norman | Floating | 7/1/2025 | $34925 | 3.40% |

---

The table below presents the fair value of the Company's derivative financial instruments, which use level 2 inputs, as well as their classification on the consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
|  | **Balance Sheet Location** | **June 30, 2025** | **December 31, 2024** | **June 30, 2025** | **December 31, 2024** |
| Derivatives designated as hedging instruments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | Fair market value of interest rate swaps | $25575 | $41841 | $424 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps | Prepaid and other assets |  | 156 |  |  |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps | Prepaid and other assets | 199 | 1073 |  |  |
| Total |  | $25774 | $43070 | $424 | $— |

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The tables below present the effect of the Company's derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Amount of gain (loss)<br>recognized in OCI** | **Amount of gain (loss)<br>recognized in OCI** | **Location of gain<br>(loss) reclassified <br>from accumulated** | **Amount of gain (loss)<br>reclassified from<br>OCI into income** | **Amount of gain (loss)<br>reclassified from<br>OCI into income** |
|  | **2025** | **2024** | **OCI into income** | **2025** | **2024** |
| Derivatives designated as hedging instruments: |  |  |  |  |  |
| For the three months ended June 30, |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $643 | $5139 | Interest expense | $7110 | $12627 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps | $107 | $— | Interest expense | $82 | $— |
| For the six months ended June 30, |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $(1144) | $20729 | Interest expense | $15546 | $25534 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps | $246 | $— | Interest expense | $170 | $— |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Location of gain<br>(loss)** | **Amount of gain (loss) <br>recognized in income** | **Amount of gain (loss) <br>recognized in income** |
|  | **recognized in<br>income** | **2025** | **2024** |
| Derivatives not designated as hedging instruments: |  |  |  |
| For the three months ended June 30, |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps | Interest expense | $(187) | $(116) |
| For the six months ended June 30, |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps | Interest expense | $(778) | $(742) |

---

*Other Financial Instruments Carried at Fair Value*

Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 8). The redemption value is based on the fair value of the Company's common stock at the redemption date, and therefore, is calculated based on the fair value of the Company's common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value.

*Financial Instruments Not Carried at Fair Value*

As of June 30, 2025 and December 31, 2024, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaid and other assets, excluding interest rate caps, accounts payable and other accrued liabilities, accrued real estate taxes payable, accrued interest payable, security deposits and prepaid rent approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market

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information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts.

Long-term indebtedness is carried at amounts that reasonably approximate their fair value. In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current credit worthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.

These financial instruments utilize Level 2 inputs. The table below presents the outstanding principal balance and estimated fair values of our debt as of June 30, 2025 and December 31, 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Outstanding Principal Balance** | **Estimated <br>Fair Value** | **Outstanding Principal Balance** | **Estimated <br>Fair Value** |
| Fixed rate debt | $33817 | $32877 | $33817 | $32073 |
| Floating rate debt | $1469425 | $1431725 | $1469425 | $1396265 |

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**6. Stockholders' Equity**

*Common Stock*

During the six months ended June 30, 2025 and 2024, the Company issued 184,042 and 167,902 shares of common stock, respectively, pursuant to its long-term incentive plan (see "Long Term Incentive Plan" below).

As of June 30, 2025 and December 31, 2024, the Company had 25,364,470 and 25,403,537 shares of common stock, par value $0.01 per share, respectively, issued and outstanding.

*Share Repurchase Program*

On October 24, 2022, the Board authorized the Company to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $100.0 million during a two-year period that expired on October 24, 2024. On October 28, 2024, the Board authorized the Company to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $100.0 million during a two-year period that will expire on October 28, 2026 (together with prior authorizations, the "Share Repurchase Program"). This authorization replaced the Board's prior share repurchase authorization. The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company's common stock is trading at a significant discount to net asset value per share. Repurchases under this program may be discontinued at any time.

During the three and six months ended June 30, 2025, the Company repurchased 0 and 223,109 shares of its common stock at a total cost of approximately $7.7 million, or $34.29 per share on average. During the three and six months ended June 30, 2024, the Company repurchased 0 and 438,678 shares of its common stock, par value of $0.01 per share, at a total cost of approximately $14.6 million, or $33.19 per share on average. Since the inception of the Share Repurchase Program through June 30, 2025, the Company had repurchased 3,212,415 shares of its common stock, par value $0.01 per share, at a total cost of approximately $94.6 million, or $29.44 per share on average.

*Long Term Incentive Plan*

On May 20, 2025, the Company's stockholders approved the NexPoint Residential Trust, Inc. 2025 Long Term Incentive Plan (the "2025 LTIP") and on May 20, 2025, the Company filed a registration statement on Form S-8 registering 976,000 shares of common stock, par value $0.01 per share, which the Company may issue pursuant to the 2025 LTIP. Under the 2025 LTIP, restricted stock units may be granted to the Company's directors, officers and other key employees (and those of the Adviser and the Company's subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Adviser and annually for directors. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. Under the 2025 LTIP, the Company is authorized to issue up to 976,000 restricted stock units. As of the date of adoption of the 2025 LTIP, no further awards can be made under the NexPoint Residential Trust, Inc. 2016 Long Term Incentive Plan (the "2016 LTIP").

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Under the 2016 LTIP, the Company was authorized to issue up to 2,100,000 shares of common stock.

As of June 30, 2025, the Company had granted 2,096,095 and 314,297 restricted stock units under the 2016 LTIP and 2025 LTIP, respectively. The following table includes the number of restricted stock units granted to its directors, officers, employees and certain key employees of the Adviser under the 2016 LTIP and 2025 LTIP:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Summary of Grants** | **Summary of Grants** | **Summary of Grants** |  |
|  | **February** | **March** | **May** | **Total** |
| 2021 | 204663 |  |  | 204663 |
| 2022 | 142519 |  |  | 142519 |
| 2023 |  | 260709 |  | 260709 |
| 2024 |  | 355475 |  | 355475 |
| 2025 |  |  | 314297 | 314297 |
| Total | 347182 | 616184 | 314297 | 1277663 |

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As of June 30, 2025 and December 31, 2024, the Company had 492,140 and 754,329, respectively, unvested restricted stock units outstanding under the 2016 LTIP. As of June 30, 2025, the Company had 314,297 unvested restricted stock units outstanding under the 2025 LTIP.

The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** |
|  | **Number of Units** |  | **Weighted Average<br>Grant Date Fair Value** |
| Outstanding January 1, | 754329 |  | $40.51 |
| Granted | 314297 |  | 30.89 |
| Vested | (258531) | (1) | 41.94 |
| Forfeited | (3658) |  | 38.41 |
| Outstanding June 30, | 806437 |  | $37.51 |

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(1)Certain key employees of the Adviser elected to net the taxes owed upon vesting against the shares issued and certain awards, including 19,200 restricted stock units, were cash settled resulting in 184,042 shares being issued as shown on the Consolidated Statement of Stockholders' Equity.

The following table contains information regarding the vesting of restricted stock units under the 2016 LTIP and 2025 LTIP for the next five calendar years subsequent to June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Vesting** | **Shares Vesting** | **Shares Vesting** |  |
|  | **February** | **March** | **May** | **Total** |
| 2026 | 62885 | 112627 | 79325 | 254837 |
| 2027 | 84502 | 112627 |  | 197129 |
| 2028 | 58746 | 112622 |  | 171368 |
| 2029 | 117480 | 65623 |  | 183103 |
| Total | 323613 | 403499 | 79325 | 806437 |

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As of June 30, 2025 and December 31, 2024, the Company had issued 1,334,148 and 1,150,106 shares of common stock under the 2016 LTIP, respectively. For the three months ended June 30, 2025 and 2024, the Company recognized approximately $2.3 million and $2.7 million, respectively, of equity-based compensation expense related to grants of restricted stock units. For the six months ended June 30, 2025 and 2024, the Company recognized approximately $4.8 million and $5.2 million, respectively, of equity-based compensation expense related to grants of restricted stock units. As of June 30, 2025 and December 31, 2024, the Company had recognized a liability of approximately $2.0 million and $2.6 million, respectively, related to dividends earned on restricted stock units that are payable in cash upon vesting, which is included in accounts payable and other accrued liabilities on the consolidated balance sheets. Forfeitures are recognized as they occur.

As of June 30, 2025 and December 31, 2024, the Company had total unrecognized compensation expense on restricted stock units of approximately $27.5 million and $21.9 million over a weighted average vesting period of 2.0 and 1.6 years, respectively.

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*At-the-Market Offering*

On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of Jefferies LLC ("Jefferies"), Raymond James & Associates, Inc. ("Raymond James"), KeyBanc Capital Markets Inc. ("KeyBanc") and Truist Securities (f/k/a SunTrust Robinson Humphrey, Inc., "SunTrust," and together with Jefferies, Raymond James and KeyBanc, the "ATM Sales Agents"), pursuant to which the Company could issue and sell from time to time when an effective registration statement was available shares of the Company's common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the "2020 ATM Program"). Sales of shares of common stock, if any, could be made in transactions that were deemed to be "at the market" offerings, as defined in Rule 415 under the Securities Act, including, without limitation, sales made by means of ordinary brokers' transactions on the New York Stock Exchange, to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices. In addition to the issuance and sale of shares of common stock, the Company could enter into forward sale agreements with each of Jefferies, KeyBanc and Raymond James, or their respective affiliates, through the 2020 ATM Program. On March 20, 2025, the equity distribution agreements with each of KeyBanc and SunTrust were terminated. During the six months ended June 30, 2025 and 2024, no shares were issued under the 2020 ATM Program. The following table contains summary information of the 2020 ATM Program since its inception:

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| | |
|:---|:---|
| Gross proceeds | $62310967 |
| Common shares issued | 1120910 |
| Gross average sale price per share | $55.59 |
| Sales commissions | $934665 |
| Offering costs | 1353015 |
| Net proceeds | $60023287 |
| Average price per share, net | $53.55 |

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**7. Earnings (Loss) Per Share**

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of the Company's common stock outstanding, which excludes any unvested restricted stock units issued pursuant to the 2016 LTIP and 2025 LTIP. Diluted earnings (loss) per share is computed by adjusting basic income (loss) per share for the dilutive effect of the assumed vesting of restricted stock units. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.

The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted earnings (loss) per share as the assumed conversion of these units would have no net impact on the determination of diluted earnings (loss) per share. See Note 8 for additional information.

The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods presented (in thousands, except per share amounts):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  |  | **2025** | **2024** | **2025** | **2024** |
| **Numerator for earnings (loss) per share:** |  |  |  |  |  |
| Net income (loss) |  | $(7061) | $10638 | $(13985) | $37040 |
| Net income (loss) attributable to redeemable noncontrolling interests in the OP |  | (28) | 42 | (55) | 146 |
| &nbsp;&nbsp;**Net income (loss) attributable to common stockholders** |  | $(7033) | $10596 | $(13930) | $36894 |
| **Denominator for earnings (loss) per share:** |  |  |  |  |  |
| Weighted average common shares outstanding |  | 25384 | 25540 | 25416 | 25630 |
| &nbsp;&nbsp;Denominator for basic earnings (loss) per share |  | 25384 | 25540 | 25416 | 25630 |
| Weighted average unvested restricted stock units |  | 20 | 769 | 124 | 701 |
| &nbsp;&nbsp;Denominator for diluted earnings (loss) per share | (1) | 25384 | 26309 | 25416 | 26331 |
| **Earnings (loss) per weighted average common share:** |  |  |  |  |  |
| &nbsp;&nbsp;Basic |  | $(0.28) | $0.41 | $(0.55) | $1.44 |
| &nbsp;&nbsp;Diluted |  | $(0.28) | $0.40 | $(0.55) | $1.40 |

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(1)If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the diluted earnings per share calculation.

**8. Noncontrolling Interests**

*Redeemable Noncontrolling Interests in the OP*

The following table sets forth the redeemable noncontrolling interests in the OP for the six months ended June 30, 2025 (in thousands):

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| | |
|:---|:---|
| **Redeemable noncontrolling interests in the OP, December 31, 2024** | $5782 |
| Net loss attributable to redeemable noncontrolling interests in the OP | (55) |
| Other comprehensive loss attributable to redeemable noncontrolling interests in the OP | (65) |
| Distributions to redeemable noncontrolling interests in the OP | (104) |
| Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP | (394) |
| **Redeemable noncontrolling interests in the OP, June 30, 2025** | $5164 |

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*Fees and Reimbursements to BH and its Affiliates*

The Company has entered into management agreements with BH Management Services, LLC ("BH"), the Company's property manager and an independently owned third party, who manages the Company's properties and supervises the implementation of the Company's value-add program. BH is an affiliate of BH Equities, LLC and its affiliates (collectively, "BH Equity"), who was a noncontrolling interest member of the Company's joint ventures prior to the purchase by the Company of 100% of the joint venture interests in the Portfolio owned by BH Equity, representing approximately 8.4% ownership in the Portfolio (the "BH Buyout") on June 30, 2017. Through BH Equity's noncontrolling interests in such joint ventures, BH Equity was deemed to be a related party. With the completion of the BH Buyout, the Company and the OP amended the partnership agreement of the OP (the "Amendment"). BH Equity became a noncontrolling limited partner of the OP upon execution of the Amendment and BH Equity was no longer deemed to be a related party. BH and its affiliates do not have common ownership in any joint venture with the Adviser and there is no common ownership between BH and its affiliates and the Adviser.

The property management fee paid to BH is approximately 3% of the monthly gross income from each property managed. Currently, BH manages all of the Company's properties. Additionally, the Company may pay BH certain other fees, including: (1) a fee of $15-25 per unit for the one-time setup and inspection of properties, (2) a construction supervision fee of 5-6% of total project costs, which is capitalized, (3) acquisition fees and due diligence costs reimbursements, and (4) other owner approved fees at $55 per hour. BH also acts as a paymaster for the properties and is reimbursed at cost for various operating expenses it pays on behalf of the properties. The following is a summary of fees that the properties incurred to BH and its affiliates, as well as reimbursements paid to BH from the properties for various operating expenses, for the three and six months ended June 30, 2025 and 2024 (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  |  | **2025** | **2024** | **2025** | **2024** |
| **Fees incurred** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property management fees | (1) | $1798 | $1864 | $3611 | $3807 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction supervision fees | (2) | 243 | 270 | 383 | 429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Design fees | (2) |  | 11 |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition fees | (3) |  |  |  |  |
| **Reimbursements** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payroll and benefits | (4) | 4463 | 4766 | 9128 | 9599 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reimbursements | (5) | 765 | 746 | 1394 | 1883 |

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(1)Included in property management fees on the consolidated statements of operations and comprehensive income (loss).

(2)Capitalized on the consolidated balance sheets and reflected in buildings and improvements.

(3)Includes due diligence costs. Acquisition fees are capitalized to real estate assets on the consolidated balance sheets.

(4)Included in property operating expenses on the consolidated statements of operations and comprehensive income (loss).

(5)Includes property operating expenses such as repairs and maintenance costs and certain property general and administrative expenses, which are included on the consolidated statements of operations and comprehensive income (loss).

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**9. Related Party Transactions**

*Advisory and Administrative Fee*

In accordance with the Advisory Agreement, the Company pays the Adviser an advisory fee equal to 1.00% of the Average Real Estate Assets (as defined below). The duties performed by the Company's Adviser under the terms of the Advisory Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third party service providers, managing the Company's properties or overseeing the third party property manager, formulating an investment strategy for the Company and selecting suitable properties and investments, managing the Company's outstanding debt and its interest rate exposure through derivative instruments, determining when to sell assets, and managing the value-add program or overseeing a third party vendor that implements the value-add program. "Average Real Estate Assets" means the average of the aggregate book value of Real Estate Assets before reserves for depreciation or other non-cash reserves, computed by taking the average of the book value of real estate assets at the end of each month (1) for which any fee under the Advisory Agreement is calculated or (2) during the year for which any expense reimbursement under the Advisory Agreement is calculated. "Real Estate Assets" is defined broadly in the Advisory Agreement to include, among other things, investments in real estate-related securities and mortgages and reserves for capital expenditures (the value-add program). The advisory fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the advisory fee in shares of common stock, subject to certain limitations.

In accordance with the Advisory Agreement, the Company also pays the Adviser an administrative fee equal to 0.20% of the Average Real Estate Assets. The administrative fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the administrative fee in shares of common stock, subject to certain limitations.

The advisory and administrative fees paid to the Adviser on the Contributed Assets (as defined in the Advisory Agreement) are subject to an annual cap of approximately $5.4 million (the "Contributed Assets Cap") (see "Expense Cap" below).

Pursuant to the terms of the Advisory Agreement, the Company will reimburse the Adviser for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. "Operating Expenses" include legal, accounting, financial and due diligence services performed by the Adviser that outside professionals or outside consultants would otherwise perform, the Company's pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Adviser required for the Company's operations, and compensation expenses under the 2016 LTIP and 2025 LTIP. Operating Expenses do not include expenses for the advisory and administrative services described in the Advisory Agreement. Certain Operating Expenses, such as the Company's ratable share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses incurred by the Adviser or its affiliates that relate to the operations of the Company, may be billed monthly to the Company under a shared services agreement. "Offering Expenses" include all expenses (other than underwriters' discounts) in connection with an offering, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the three and six months ended June 30, 2025 and 2024, the Adviser did not bill any Operating Expenses or Offering Expenses to the Company and any such expenses the Adviser incurred during the periods are considered to be permanently waived.

*Expense Cap*

Pursuant to the terms of the Advisory Agreement, expenses paid or incurred by the Company for operating expenses and advisory and administrative fees payable to the Adviser and Operating Expenses will not exceed 1.5% of Average Real Estate Assets per calendar year (or part thereof that the Advisory Agreement is in effect (the "Expense Cap")). The Expense Cap does not limit the reimbursement of expenses related to Offering Expenses. The Expense Cap also does not apply to legal, accounting, financial, due diligence and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation or other events outside the Company's ordinary course of business or any out-of-pocket acquisitions or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets. Also, advisory and administrative fees are further limited on Contributed Assets to approximately $5.4 million in any calendar year. Contributed Assets refers to all Real Estate Assets contributed to the Company as part of its spin-off. The Contributed Assets Cap is not reduced for dispositions of such assets subsequent to its spin-off. Advisory and administrative fees on New Assets (as defined in the Advisory Agreement) are not subject to the above limitation and are based on an annual rate of 1.2% on Average Real Estate Assets, but are subject to the Expense Cap. New Assets are all Real Estate Assets that are not Contributed Assets.

For the three months ended June 30, 2025 and 2024, the Company incurred advisory and administrative fees of $1.7 million and $1.7 million, respectively. For the three months ended June 30, 2025 and 2024, the Adviser elected to voluntarily waive advisory and administrative fees of approximately $5.3 million and $5.2 million, respectively. For the six months ended June 30, 2025 and 2024, the Company incurred advisory and administrative fees of $3.4 million and $3.5 million, respectively. For the six months ended June 30, 2025 and 2024, the Adviser elected to voluntarily waive advisory and administrative fees of $10.6 million and $10.7 million, respectively. The advisory and administrative fees waived by the Adviser are considered to be permanently waived for the periods. The Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion.

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*Other Related Party Transactions*

The Company has in the past, and may in the future, utilize the services of affiliated parties. The Company holds multiple operating accounts at NexBank.

On July 30, 2021, three of our property-owning subsidiaries entered into agreements with NLMF Holdco, LLC, an entity under common control with our Adviser and in which we own a 10% equity interest, to provide faster, more reliable and lower cost internet to our residents. The lease of the fiber facilities and easement is between NLMF Holdco, LLC and NLMF Leaseco, LLC, which is wholly and separately owned by NLMF Leaseco Owner, LLC, which is controlled by Matt McGraner, one of our officers. The fiber management and internet services agreement is managed by NLMF Leaseco, LLC. The Company accounts for its interest in NLMF Holdco, LLC using the equity method of accounting. As of June 30, 2025 and December 31, 2024, the Company had an investment of approximately $0.8 million and $0.7 million, respectively, in NLMF Holdco, LLC which is included in prepaid and other assets on the consolidated balance sheet of the Company. During the three months ended June 30, 2025 and 2024, the Company included approximately $0.1 million and $0.1 million, respectively, of net income of NLMF Holdco, LLC in equity in earnings of affiliate. During the six months ended June 30, 2025 and 2024, the Company included $0.1 million and $0.1 million, respectively, of net income of NLMF Holdco, LLC in equity in earnings of affiliate on the consolidated statement of operations and comprehensive income (loss). During the three months ended June 30, 2025 and 2024, the Company incurred expenses of $0.7 million and $0.7 million for fiber internet service, respectively. During the six months ended June 30, 2025 and 2024, the Company incurred expenses of $1.4 million and $1.4 million for fiber internet service, respectively. Expenses incurred to NLMF Leaseco, LLC for fiber internet service are included in property operating expenses on the consolidated statement of operations and comprehensive income (loss).

*NXRTBH Old Farm, LLC*

On August 16, 2023, the Company entered into a Membership Interest Purchase Agreement (as amended, the "MIPA") between NXRTBH McMillan, LLC (a wholly owned subsidiary of the Company, the "Seller") and NexBank Capital to sell all the membership interests of NXRTBH Old Farm, LLC ("Old Farm subsidiary"). On March 1, 2024 (the "closing date"), in accordance with the MIPA, the Seller sold the membership interests of the Old Farm subsidiary to NexBank Capital for $103 million. Substantially all of the fair value of the disposed membership interests is concentrated in the property that is wholly owned by the Old Farm subsidiary at the closing date. As such, the Company determined the Old Farm subsidiary is not a business, and the membership interests represent an in-substance nonfinancial asset consistent with ASC 610-20, *Gains and Losses from the Derecognition of Nonfinancial Assets*.

The membership interests sold represented 100% of the outstanding equity interests. Following the sale, the Company determined it no longer holds a controlling financial interest in the Old Farm subsidiary and is no longer the primary beneficiary. The Company deconsolidated the Old Farm subsidiary (including the property) as of March 1, 2024. Simultaneously with the sale, the Seller, NexBank Capital and the Old Farm subsidiary entered into an Agreement Regarding Ownership of Bank Accounts, which retained the bank account and its retained balance, along with all its respective rights, titles and interest in, to, and under, at the Seller. Therefore, the $1.0 million retained cash balance as of the closing date was not deconsolidated along with the sale. During the six months ended June 30, 2024, the Company recognized a gain on deconsolidation of $31.5 million which was recognized in gain on sales of real estate in the consolidated statement of operation and comprehensive income (loss).

A director and officer of the Company also (i) is the beneficiary of a trust that indirectly owns 100% of the limited partnership interests in the parent of the Adviser and directly owns 100% of the general partnership interests in the parent of the Adviser and (ii) is a director of NexBank Capital, the holding company of NexBank, directly owns a minority of the common stock of NexBank, and is the beneficiary of a trust that directly owns a substantial portion of the common stock of NexBank.

**10. Commitments and Contingencies**

*Commitments*

In the normal course of business, the Company enters into various rehabilitation construction related purchase commitments with parties that provide these goods and services. In the event the Company were to terminate rehabilitation construction services prior to the completion of projects, the Company could potentially be committed to satisfy outstanding or uncompleted purchase orders with such parties. As of June 30, 2025 and December 31, 2024, management does not anticipate any material deviations from schedule or budget related to rehabilitation projects currently in process.

The Company's agreement with NLMF Holdco, LLC may result in additional funding requirements to cover future project costs. The maximum exposure of potential commitments is expected to be no more than $4.0 million.

*Contingencies*

In the normal course of business, the Company is subject to claims, lawsuits, and legal proceedings. While it is not possible to ascertain the ultimate outcome of all such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated balance sheets or consolidated

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statements of operations and comprehensive income (loss) of the Company. The Company is not involved in any material litigation nor, to management's knowledge, is any material litigation currently threatened against the Company or its properties or subsidiaries.

Environmental liabilities could have a material adverse effect on the Company's business, assets, cash flows or results of operations. As of June 30, 2025 and December 31, 2024, the Company was not aware of any environmental liabilities. There can be no assurance that material environmental liabilities do not exist.

*Self-Insurance Program*

On April 1, 2024, the Adviser entered into a new self-insurance policy resulting in a new aggregate amount of $2,950,000 (the "2024 Aggregate Amount") which is allocated across properties managed by the Adviser with approximately $2.1 million being allocated to the Company.

On April 1, 2025, the Adviser entered into a new property insurance agreement that has an aggregate amount of $4,000,000 which is allocated across properties managed by the Adviser with approximately $2.6 million being allocated to the Company.

As of June 30, 2025 and December 31, 2024, the Company had fully funded its 2024 Aggregate Amount due and zero remained in prepaid and other assets on the consolidated balance sheet. During the three and six months ended June 30, 2025, the Company did not incur any self-insurance expenses which are normally included in property operating expenses on the consolidated statement of operations and comprehensive income (loss). During the three and six months ended June 30, 2024, the Company did not incur any self-insurance expenses.

**11. Segment Reporting**

We have one reportable segment: NXRT. For a description of the types of products and services from which this single reportable segment derives its revenues, see Notes 1 and 2. The accounting policies of the NXRT segment are the same as those described in the Summary of Significant Accounting Policies. The chief operating decision maker assesses performance for the NXRT segment and decides how to allocate resources based on net income that also is reported on the consolidated statements of operations and comprehensive income (loss). The measure of segment assets is reported on the consolidated balance sheets as total assets. The chief operating decision maker uses net income to evaluate profitability generated from the segment's portfolio in deciding whether to reinvest profits into new or existing investments or into other parts of the entity, such as for dividend amounts, or deciding which investments to dispose. The chief operating decision maker manages the business on a consolidated basis, and therefore the Company has identified NXRT as the one operating segment and the reportable segment. The Company's chief operating decision maker is the chief investment officer.

The significant segment expenses are computed in accordance with GAAP and are consistent with the financial information presented in the consolidated statements of operations and comprehensive income (loss).

**12. Subsequent Events**

*Dividends Declared*

On July 28, 2025, the Company's Board approved a quarterly dividend of $0.51 per share, payable on September 30, 2025 to stockholders of record on September 15, 2025.

*Corporate Revolving Credit Facility*

On July 11, 2025, the Company, though the OP, entered into a $200.0 million revolving credit facility with J.P. Morgan Chase Bank, N.A. and the lenders thereto from time to time (the "Credit Facility"). The Credit Facility may be increased by up to an additional $200.0 million if the lenders agree to increase their commitments. The Credit Facility will mature on June 30, 2028, unless the Company exercises its option to extend for a one-year term upon satisfaction of certain criteria and payment of an extension fee of 0.15% of the aggregate amount outstanding under the Credit Facility.

The Credit Facility is guaranteed by the Company and the obligations under the Credit Facility are, subject to some exceptions, secured by a security interest in the proceeds of all equity offerings and other capital events by the Company, the OP or their subsidiaries and an equity pledge of each subsidiary of the OP that owns an interest in a mortgaged property.

Advances under the Credit Facility accrue interest at a per annum rate equal to, at the Company's election, either (i) the daily SOFR plus a margin of 1.50% to 2.25%, depending on the Company's total leverage ratio in the immediately preceding quarter, (ii)

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the term SOFR for the interest period plus a margin of 1.50% to 2.25%, depending on the Company's total leverage ratio in the immediately preceding quarter, or (iii) a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.5%, or (c) the one month term SOFR plus 1.0%, plus a margin of 0.50% to 1.25%, depending on the Company's total leverage ratio in the immediately preceding quarter.

A commitment fee at a rate of 0.20% or 0.30%, depending on the average daily revolving commitment utilization percentage for the calendar quarter, applies to unutilized borrowing capacity under the Credit Facility.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following is a discussion and analysis of our financial condition and our historical results of operations. The following should be read in conjunction with our financial statements and accompanying notes included herein and with our 2024 Annual Report, filed with the Securities and Exchange Commission (the "SEC") on February 26, 2025. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those projected, forecasted, or expected in these forward-looking statements as a result of various factors, including, but not limited to, those discussed below and elsewhere in this quarterly report. See "Cautionary Statement Regarding Forward-Looking Statements" in this report, and "Risk Factors" in Part I, Item 1A, "Risk Factors" of our 2024 Annual Report.*

**Overview**

As of June 30, 2025, our Portfolio consisted of 35 multifamily properties primarily located in the Southeastern and Southwestern United States encompassing 12,984 units of apartment space that was approximately 93.3% leased with a weighted average monthly effective rent per occupied apartment unit of $1,500. Substantially all of our business is conducted through the OP. We own the Portfolio through the OP and our TRS. The OP owns approximately 99.9% of the Portfolio; our TRS owns approximately 0.1% of the Portfolio. The OP GP is the sole general partner of the OP. As of June 30, 2025, there were 26,053,988 OP Units outstanding, of which 25,951,154, or 99.6%, were owned by us, and 102,834, or 0.4%, were owned by unaffiliated limited partners (see Note 8 to our consolidated financial statements).

We are primarily focused on directly or indirectly acquiring, owning, and operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. We generate revenue primarily by leasing our multifamily properties. We intend to employ targeted management and a value-add program at a majority of our properties in an attempt to improve rental rates and the net operating income ("NOI") at our properties and achieve long-term capital appreciation for our stockholders. We are externally managed by the Adviser through the Advisory Agreement, by and among the OP, the Adviser and us. The Advisory Agreement was renewed on February 24, 2025 for a one-year term. The Adviser is wholly owned by NexPoint Advisors, L.P.

We have elected to be taxed as a REIT under Sections 856 through 860 of the Code, and expect to continue to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2025 and 2024.

The macroeconomic environment remains challenging. Less available and more expensive debt capital has had pronounced effects on the capital markets, making property acquisitions and other investments harder to finance. Similar factors also impact the timing of and proceeds generated from asset sales and our ability to obtain debt capital. Additionally, the U.S. government recently announced a comprehensive set of tariffs. Since then, the U.S. government has paused implementation for some of these tariffs. In addition, the U.S. government has announced additional tariffs on major trading partners of the U.S., which are expected to become effective on August 1. Although certain tariffs have gone into effect, the timing and scope of other tariffs is still currently uncertain. Such tariffs could impact our results of operations by increasing the costs of various goods, including construction materials. The impact of such tariffs is subject to uncertainties regarding the timing of their implementation, the magnitude of such tariffs and possible exemption for certain goods, among other unknowns.

On October 16, 2019, Highland, a former affiliate of our Sponsor, filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the District of Delaware (the "Highland Bankruptcy"). On October 15, 2021, Marc S. Kirschner, as litigation trustee of a litigation subtrust formed pursuant to Highland's plan of reorganization and disclosure statement which became effective on August 11, 2021, filed a lawsuit (the "Bankruptcy Trust Lawsuit") against various persons and entities, including our Sponsor and James Dondero. On March 24, 2023, the litigation trustee filed a motion for leave to stay the Bankruptcy Trust Lawsuit, which was granted by the bankruptcy court on April 4, 2023. Per the court's order, the Bankruptcy Trust Lawsuit is stayed until any party provides 30 days' notice of the intent to resume the adversary proceeding, with all pending deadlines extended for a period of time commensurate with the length of the stay. As of the date of this filing, the Bankruptcy Trust Lawsuit continues to be stayed. In addition, on February 8, 2023, UBS Securities LLC and UBS AG London (collectively, "UBS") filed a lawsuit in the Supreme Court of the State of New York, County of New York related to a default that occurred in 2009 on a warehouse facility between UBS and funds affiliated with Highland. The lawsuit makes claims against several persons and entities seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the "UBS Lawsuit"). On March 7, 2023, the matter was removed to the United States District Court for the Southern District of New York. On April 6, 2023, UBS moved to have the case remanded to New York state court. The federal court remanded the state-law causes of action and retained and stayed the federal cause of action. On February 26, 2024, several of the respondents, including Mr.Dondero, filed motions in state court to dismiss the UBS Lawsuit on various grounds. A hearing was held on July 8, 2024. The court dismissed the claims against one respondent, CLO HoldCo, Ltd., for lack of personal jurisdiction in a

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July 12, 2024 order. On March 26, 2025, the court entered an order denying the remaining motions to dismiss and directed the respondents to file an answer to the UBS Lawsuit within 20 days, which they did. Mr. Dondero is appealing the denial of the motion to dismiss to the Appellate Division of the Supreme Court of the State of New York. Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.

Our website is located at nxrt.nexpoint.com. From time to time, we may use our website as a distribution channel for material company information.

**Components of Our Revenues and Expenses**

***Revenues***

*Rental income*. Our earnings are primarily attributable to the rental revenue from our multifamily properties. We anticipate that the leases we enter into for our multifamily properties will typically be for one year or less on average. Also included are utility reimbursements, late fees, pet fees, and other rental fees charged to tenants.

*Other income.* Other income includes ancillary income earned from tenants such as non-refundable fees, application fees, laundry fees, cable TV income, and other miscellaneous fees charged to tenants.

***Expenses***

*Property operating expenses.* Property operating expenses include property maintenance costs, salary and employee benefit costs, utilities, casualty-related expenses and recoveries and other property operating costs.

*Real estate taxes and insurance.* Real estate taxes include the property taxes assessed by local and state authorities depending on the location of each property. Insurance includes the cost of commercial, general liability, and other needed insurance for each property.

*Property management fees.* Property management fees include fees paid to BH, our property manager, or other third party management companies for managing each property (see Note 8 to our consolidated financial statements).

*Advisory and administrative fees.* Advisory and administrative fees include the fees paid to our Adviser pursuant to the Advisory Agreement (see Note 9 to our consolidated financial statements).

*Corporate general and administrative expenses.* Corporate general and administrative expenses include, but are not limited to, audit fees, legal fees, listing fees, board of director fees, equity-based compensation expense, investor relations costs and payments of reimbursements to our Adviser for operating expenses. Corporate general and administrative expenses and the advisory and administrative fees paid to our Adviser (including advisory and administrative fees on properties defined in the Advisory Agreement as New Assets) will not exceed 1.5% of Average Real Estate Assets per calendar year (or part thereof that the Advisory Agreement is in effect), calculated in accordance with the Advisory Agreement, or the Expense Cap. The Expense Cap does not limit the reimbursement by us of expenses related to securities offerings paid by our Adviser. The Expense Cap also does not apply to legal, accounting, financial, due diligence, and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation, or other events outside our ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets. Additionally, in the sole discretion of the Adviser, the Adviser may elect to waive certain advisory and administrative fees otherwise due. If advisory and administrative fees are waived in a period, the waived fees for that period are considered to be waived permanently and the Adviser may not be reimbursed in the future. . On April 4, 2025, the compensation committee of the Board recommended that the Board approve the 2025 LTIP, and the Board unanimously approved and determined that the 2025 LTIP was advisable and in the best interests of the Company and the Company's stockholders. The Board subsequently directed that approval of the 2025 LTIP be submitted for consideration by our stockholders at our annual meeting. On May 20, 2025, the Company's stockholders approved the 2025 LTIP at our annual meeting of stockholders.

*Property general and administrative expenses.* Property general and administrative expenses include the costs of marketing, professional fees, general office supplies, and other administrative related costs of each property.

*Depreciation and amortization.* Depreciation and amortization costs primarily include depreciation of our multifamily properties and amortization of acquired in-place leases.

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***Other Income and Expense***

*Interest expense.* Interest expense primarily includes the cost of interest expense on debt, the amortization of deferred financing costs and the related impact of interest rate derivatives used to manage our interest rate risk.

*Loss on extinguishment of debt and modification costs.* Loss on extinguishment of debt and modification costs includes prepayment penalties and defeasance costs, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment.

*Casualty loss*. Casualty loss include expenses resulting from damages from an unexpected and unusual event such as a natural disaster. Expenses can include additional payments on insurance premiums, impairment recognized on a property, and other abnormal expenses arising from the related event.

*Miscellaneous income*. Miscellaneous income includes proceeds received from insurance for business interruption involving the loss of rental income at a property that has temporarily suspended operations due to an unexpected and unusual event.

*Gain on sales of real estate.* Gain on sales of real estate includes the gain recognized upon sales of properties. Gain on sales of real estate is calculated by deducting the carrying value of the real estate and costs incurred to sell the properties from the sales prices of the properties.

**Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024**

***The three months ended June 30, 2025 as compared to the three months ended June 30, 2024***

The following table sets forth a summary of our operating results for the three months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** |  |
|  | **2025** | **2024** | **$ Change** |
| Total revenues | $63149 | $64238 | $(1089) |
| Total expenses | (55246) | (57442) | 2196 |
| Operating income before gain on sales of real estate | 7903 | 6796 | 1107 |
| Gain on sales of real estate |  | 18686 | (18686) |
| Operating income | 7903 | 25482 | (17579) |
| Interest expense | (15162) | (13971) | (1191) |
| Casualty loss | (5) | (737) | 732 |
| Equity in earnings of affiliate | 59 | 53 | 6 |
| Miscellaneous income | 144 | 66 | 78 |
| Loss on extinguishment of debt and modification costs |  | (255) | 255 |
| Net income (loss) | (7061) | 10638 | (17699) |
| Net income (loss) attributable to redeemable noncontrolling interests in the OP | (28) | 42 | (70) |
| Net income (loss) attributable to common stockholders | $(7033) | $10596 | $(17629) |

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The change in our net loss for the three months ended June 30, 2025 as compared to our net income for the three months ended June 30, 2024 primarily relates to the change in gain on sales of real estate of $18.7 million.

***Revenues***

*Rental income*. Rental income was $61.2 million for the three months ended June 30, 2025 compared to $62.4 million for the three months ended June 30, 2024, which was a decrease of approximately $1.2 million. The decrease between the periods was primarily due our disposition activity in 2024.

*Other income.* Other income was $1.9 million for the three months ended June 30, 2025 compared to $1.9 million for the three months ended June 30, 2024, which was flat.

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***Expenses***

*Property operating expenses.* Property operating expenses were $12.5 million for the three months ended June 30, 2025 compared to $13.8 million for the three months ended June 30, 2024, which was a decrease of approximately $1.3 million. The decrease between the periods was primarily due to a decrease in casualty-related expenses of $1.0 million.

*Real estate taxes and insurance.* Real estate taxes and insurance costs were $8.5 million for the three months ended June 30, 2025 compared to $8.2 million for the three months ended June 30, 2024, which was an increase of approximately $0.3 million. The increase between the periods was primarily due to an increase in real estate taxes of $0.5 million, partially offset by a decrease in insurance of $0.3 million.

*Property management fees.* Property management fees were $1.8 million for the three months ended June 30, 2025 compared to $1.9 million for the three months ended June 30, 2024 which was a decrease of $0.1 million. Property management fees are primarily based on total revenues which decreased between periods.

*Advisory and administrative fees.* Advisory and administrative fees were $1.7 million for the three months ended June 30, 2025 and $1.7 million for the three months ended June 30, 2024. For the three months ended June 30, 2025 and 2024, our Adviser elected to voluntarily waive advisory and administrative fees of approximately $5.3 million and $5.2 million, respectively, and are considered permanently waived. Our Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion. Advisory and administrative fees may increase in future periods as we acquire additional properties, which will be classified as New Assets.

*Corporate general and administrative expenses.* Corporate general and administrative expenses were $4.5 million for the three months ended June 30, 2025 compared to $4.8 million for the three months ended June 30, 2024, which was a decrease of approximately $0.3 million. The decrease was primarily due to decreases in professional fees and stock compensation expense for a total of $0.4 million.

*Property general and administrative expenses.* Property general and administrative expenses were $2.1 million for the three months ended June 30, 2025 compared to $2.7 million for the three months ended June 30, 2024, which was a decrease of $0.6 million. The decrease between the periods was primarily due to a decrease of $0.1 million in centralized services and a decrease in all other property general and administrative expenses of $0.5 million.

*Depreciation and amortization.* Depreciation and amortization costs were $24.1 million for the three months ended June 30, 2025 compared to $24.4 million for the three months ended June 30, 2024, which was a decrease of approximately $0.3 million, which was attributable to a decrease in our value-add activities over the prior periods.

***Other Income and Expense***

*Interest expense.* Interest expense was $15.2 million for the three months ended June 30, 2025 compared to $14.0 million for the three months ended June 30, 2024, which was an increase of approximately $1.2 million. The increase in interest expense between the periods is primarily attributable to a decrease in interest on debt of approximately $5.5 million, offset by increases in effective interest rate swap expense and amortization of deferred financing costs of $5.5 million and $0.9 million, respectively. The following table details the various costs included in interest expense for the three months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** |  |
|  | **2025** | **2024** | **$ Change** |
| Interest on debt | $20539 | $26012 | $(5473) |
| Amortization of deferred financing costs | 1628 | 702 | 926 |
| Interest rate swaps | (7110) | (12627) | 5517 |
| Interest rate caps | (82) |  | (82) |
| Interest rate caps mark-to-market | 187 | (116) | 303 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $15162 | $13971 | $1191 |

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*Casualty loss*. Casualty loss was a $0.0 million loss compared to $0.7 million loss for the three months ended June 30, 2025 and 2024, respectively. The decrease in casualty loss between periods of $0.7 million is attributable to the Company's casualty events and the timing.

*Miscellaneous income.* Miscellaneous income was $0.1 million compared to $0.1 million for the three months ended June 30, 2025 and 2024, respectively, which was flat.

*Gain on sale of real estate.* Gain on sale of real estate was $0.0 million compared to $18.7 million for the three months ended June 30, 2025 and 2024, respectively. The decrease between periods is attributable to no dispositions during the three months ended June 30, 2025 compared to one disposition during the three months ended June 30, 2024.

***The six months ended June 30, 2025 as compared to the six months ended June 30, 2024***

The following table sets forth a summary of our operating results for the six months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |  |
|  | **2025** | **2024** | **$ Change** |
| Total revenues | $126365 | $131815 | $(5450) |
| Total expenses | (111039) | (115737) | 4698 |
| Operating income before gain on sales of real estate | 15326 | 16078 | (752) |
| Gain on sales of real estate |  | 50395 | (50395) |
| Operating income | 15326 | 66473 | (51147) |
| Interest expense | (29543) | (28362) | (1181) |
| Casualty loss | (168) | (538) | 370 |
| Equity in earnings of affiliate | 114 | 91 | 23 |
| Miscellaneous income | 286 | 177 | 109 |
| Loss on extinguishment of debt and modification costs |  | (801) | 801 |
| Net income (loss) | (13985) | 37040 | (51025) |
| Net income (loss) attributable to redeemable noncontrolling interests in the OP | (55) | 146 | (201) |
| Net income (loss) attributable to common stockholders | $(13930) | $36894 | $(50824) |

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The change in our net loss for the six months ended June 30, 2025 as compared to the net income for the six months ended June 30, 2024 primarily relates to the decrease in gain on sales of real estate of $50.4 million.

***Revenues*** 

*Rental income*. Rental income was $122.7 million for the six months ended June 30, 2025 compared to $128.0 million for the six months ended June 30, 2024, which was a decrease of approximately $5.3 million. The decrease between the periods was primarily due to a our disposition activity in 2024.

*Other income.* Other income was $3.7 million for the six months ended June 30, 2025 compared to $3.8 million for the six months ended June 30, 2024, which was a decrease of approximately $0.1 million. The decrease between the periods was primarily due to a decrease in application fees.

***Expenses***

*Property operating expenses.* Property operating expenses were $25.0 million for the six months ended June 30, 2025 compared to $27.5 million for the six months ended June 30, 2024, which was a decrease of approximately $2.5 million. The decrease between the periods was primarily due to our disposition activity in 2024.

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*Real estate taxes and insurance.* Real estate taxes and insurance costs were $17.5 million for the six months ended June 30, 2025 compared to $17.5 million for the six months ended June 30, 2024, which was flat.

*Property management fees.* Property management fees were $3.6 million for the six months ended June 30, 2025 and $3.8 million for the six months ended June 30, 2024, which was a decrease of approximately $0.2 million. Property management fees are primarily based on total revenues.

*Advisory and administrative fees.* Advisory and administrative fees were $3.4 million for the six months ended June 30, 2025 and $3.5 million for the six months ended June 30, 2024 which was a decrease of approximately $0.1 million. For the six months ended June 30, 2025 and 2024, our Adviser elected to voluntarily waive advisory and administrative fees of approximately $10.6 million and $10.7 million and are considered permanently waived. Our Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion. Advisory and administrative fees may increase in future periods as we acquire additional properties, which will be classified as New Assets.

*Corporate general and administrative expenses.* Corporate general and administrative expenses were $9.0 million for the six months ended June 30, 2025 compared to $9.7 million for the six months ended June 30, 2024, which was a decrease of approximately $0.7 million. The decrease was primarily due to a decrease in stock compensation expense of $0.4 million.

*Property general and administrative expenses.* Property general and administrative expenses were $4.1 million for the six months ended June 30, 2025 compared to $4.9 million for the six months ended June 30, 2024, which was a decrease of approximately $0.8 million. The decrease was primarily due to our disposition activity in 2024.

*Depreciation and amortization.* Depreciation and amortization costs were $48.4 million for the six months ended June 30, 2025 compared to $48.8 million for the six months ended June 30, 2024, which was a decrease of approximately $0.4 million. The decrease between the periods was primarily due to a decrease of $0.4 million in depreciation expense, which was primarily due to a decrease in our value-add activities over the prior periods.

***Other Income and Expense***

*Interest expense.* Interest expense was $29.5 million for the six months ended June 30, 2025 compared to $28.4 million for the six months ended June 30, 2024, which was an increase of approximately $1.1 million. The increase between the periods was primarily due to a decrease in interest on debt of $12.0 million, offset by a decrease in benefit from interest rate swaps and increase in amortization of deferred financing costs of $10.0 million and $1.9 million, respectively. The following table details the various costs included in interest expense for the six months ended June 30, 2025 and 2024 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |  |
|  | **2025** | **2024** | **$ Change** |
| Interest on debt | $41217 | $53219 | $(12002) |
| Amortization of deferred financing costs | 3272 | 1419 | 1853 |
| Interest rate swaps | (15554) | (25534) | 9980 |
| Interest rate caps | (170) |  | (170) |
| Interest rate caps mark-to-market | 778 | (742) | 1520 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $29543 | $28362 | $1181 |

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*Casualty loss*. Casualty loss was $0.2 million and a $0.5 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in casualty loss between periods of $0.3 million is attributable to the Company's casualty events and the timing.

*Miscellaneous income.* Miscellaneous income was $0.3 million compared to $0.2 million for the six months ended June 30, 2025 and 2024, respectively. The increase between periods is attributable to an increase in business interruption proceeds.

*Gain on sale of real estate.* Gain on sale of real estate was $0.0 million compared to $50.4 million for the six months ended June 30, 2025 and 2024, respectively. The decrease between periods is attributable to no dispositions during the six months ended June 30, 2025 compared to two during the six months ended June 30, 2024.

**Non-GAAP Measurements**

***Net Operating Income and Same Store Net Operating Income***

NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory and administrative fees, (3) depreciation and amortization expenses, (4) gains or losses from the sale of operating real estate assets that are included in net income (loss) computed in accordance with GAAP, (5) corporate income and corporate general and administrative expenses that are not reflective of operations and properties, (6) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (7) casualty-related expenses/(recoveries) and casualty gains (losses), (8) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees and (9) equity in earnings of affiliates.

The cost of funds is eliminated from net income (loss) because it is specific to our particular financing capabilities and constraints. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital, which may have changed or may change in the future. Advisory and administrative fees and corporate general and administrative expenses are eliminated because they do not reflect continuing operating costs of the property owner. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our multifamily properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale, which will usually change from period to period. Casualty-related expenses and recoveries, casualty losses, and losses on the extinguishment of debt and modification costs are excluded because they do not reflect continuing operating costs of the property owner. Entity level general and administrative expenses incurred at the properties are eliminated as they are specific to the way in which we have chosen to hold our properties and are the result of our ownership structuring. Equity in earnings of affiliates is excluded as its not part of our core operations for the properties. These items can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales. We believe that eliminating these items from net income (loss) is useful because the resulting measure captures the actual ongoing revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

However, the usefulness of NOI is limited because it excludes the items noted above, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income, which further limits its usefulness.

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NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP and discussions elsewhere in "—Results of Operations" regarding the components of net income (loss) that are eliminated in the calculation of NOI. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

We define "Same Store NOI" as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.

***NOI and Same Store NOI for the Three and Six Months Ended June 30, 2025 and 2024***

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our Same Store NOI for the three and six months ended June 30, 2025 and 2024 to net income (loss), the most directly comparable GAAP financial measure (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  |  | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) |  | $(7061) | $10638 | $(13985) | $37040 |
| &nbsp;&nbsp;Adjustments to reconcile net income (loss) to NOI: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advisory and administrative fees |  | 1725 | 1734 | 3421 | 3477 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate general and administrative expenses |  | 4499 | 4779 | 8956 | 9689 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate income |  | (370) | (516) | (812) | (812) |
| &nbsp;&nbsp;&nbsp;&nbsp;Casualty-related expenses/(recoveries) | (1) | (792) | 232 | (1448) | 267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Casualty loss |  | 5 | 737 | 168 | 538 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property general and administrative expenses | (2) | 868 | 1334 | 1658 | 2317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 24059 | 24442 | 48409 | 48765 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  | 15162 | 13971 | 29543 | 28362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings of affiliate |  | (59) | (53) | (114) | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt and modification costs |  |  | 255 |  | 801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sales of real estate | (3) |  | (18686) |  | (50395) |
| NOI |  | $38036 | $38867 | $75796 | $79958 |
| &nbsp;&nbsp;Less Non-Same Store |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenues |  |  | (818) | (4) | (4702) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses |  |  | 393 | (19) | 2407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income |  |  |  |  | (3) |
| Same Store NOI |  | $38036 | $38442 | $75773 | $77660 |

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(1)Adjustment to net income (loss) to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

(2)Adjustment to net income (loss) to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

(3)$31.5 million with a related party for the six months ended June 30, 2024.

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**Net Operating Income for Our Q2 Same Store and Non-Same Store Properties for the Three Months Ended June 30, 2025 and 2024**

There are 35 properties encompassing 12,946 units of apartment space in our same store pool for the three months ended June 30, 2025 and 2024 (our "Q2 Same Store" properties). Our Q2 Same Store properties exclude the 38 units that are currently down (see Note 3).

The following table reflects the revenues, property operating expenses and NOI for the three months ended June 30, 2025 and 2024 for our Q2 Same Store and Non-Same Store properties (dollars in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** |  |  |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenues** |  |  |  |  |
| Same Store |  |  |  |  |
| &nbsp;&nbsp;Rental income | $61230 | $61615 | $(385) | -0.6% |
| &nbsp;&nbsp;Other income | 1549 | 1290 | 259 | 20.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Store revenues | 62779 | 62905 | (126) | -0.2% |
| Non-Same Store |  |  |  |  |
| &nbsp;&nbsp;Rental income |  | 768 | (768) | N/M |
| &nbsp;&nbsp;Other income |  | 50 | (50) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Store revenues |  | 818 | (818) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 62779 | 63723 | (944) | -1.5% |
| **Operating expenses** |  |  |  |  |
| Same Store |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (1) | 13322 | 13150 | 172 | 1.3% |
| &nbsp;&nbsp;Real estate taxes and insurance | 8485 | 8281 | 204 | 2.5% |
| &nbsp;&nbsp;Property management fees (2) | 1806 | 1831 | (25) | -1.4% |
| &nbsp;&nbsp;Property general and administrative expenses (3) | 1274 | 1267 | 7 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Store operating expenses | 24887 | 24529 | 358 | 1.5% |
| Non-Same Store |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses |  | 395 | (395) | N/M |
| &nbsp;&nbsp;Real estate taxes and insurance |  | (93) | 93 | N/M |
| &nbsp;&nbsp;Property management fees (2) |  | 41 | (41) | N/M |
| &nbsp;&nbsp;Property general and administrative expenses (4) |  | 50 | (50) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Store operating expenses |  | 393 | (393) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 24887 | 24922 | (35) | -0.1% |
| **Operating income** |  |  |  |  |
| Same Store |  |  |  |  |
| &nbsp;&nbsp;Miscellaneous income | 144 | 66 | 78 | N/M |
| Non-Same Store |  |  |  |  |
| &nbsp;&nbsp;Miscellaneous income |  |  |  | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating income | 144 | 66 | 78 | 118.2% |
| **NOI** |  |  |  |  |
| &nbsp;&nbsp;Same Store | 38036 | 38442 | (406) | -1.1% |
| &nbsp;&nbsp;Non-Same Store |  | 425 | (425) | -100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total NOI** | $38036 | $38867 | $(831) | -2.1% |

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(1)For the three months ended June 30, 2025 and 2024, excludes approximately $(792,000) and $231,000, respectively, of casualty-related expenses/(recoveries).

(2)Fees incurred to an affiliate of the noncontrolling limited partner of the OP.

(3)For the three months ended June 30, 2025 and 2024, excludes approximately $835,000 and $1,151,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

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(4)For the three months ended June 30, 2025 and 2024, excludes approximately $34,000 and $183,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

See reconciliation of net income (loss) to NOI above under "NOI and Same Store NOI for the Three and Six Months Ended June 30, 2025 and 2024."

***Q2 Same Store Results of Operations for the Three Months Ended June 30, 2025 and 2024***

As of June 30, 2025, our Q2 Same Store properties were approximately 93.3% leased with a weighted average monthly effective rent per occupied apartment unit of $1,500. As of June 30, 2024, our Q2 Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,520. For our Q2 Same Store properties, we recorded the following operating results for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024:

***Revenues***

*Rental income*. Rental income was $61.2 million for the three months ended June 30, 2025 compared to $61.6 million for the three months ended June 30, 2024, which was a decrease of approximately $0.4 million, or 0.6%. The decrease is attributable to a decrease in weighted average occupancy during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

*Other income.* Other income was $1.5 million for the three months ended June 30, 2025, compared to $1.3 million for the three months ended June 30, 2024, which was an increase of $0.2 million. The majority of the increase is related to a $0.1 million increase in interest income.

***Expenses***

*Property operating expenses.* Property operating expenses were $13.3 million for the three months ended June 30, 2025 compared to $13.2 million for the three months ended June 30, 2024, which was an increase of $0.1 million, or 1.3%. The majority of the increase is related to utilities expense increases of $0.1 million.

*Real estate taxes and insurance.* Real estate taxes and insurance costs were $8.5 million for the three months ended June 30, 2025 compared to $8.3 million for the three months ended June 30, 2024, which is an increase of $0.2 million. The increase between periods was primarily due to an increase in real estate taxes of $0.5 million, partially offset by a decrease in insurance expenses of $0.3 million.

*Property management fees.* Property management fees were $1.8 million for the three months ended June 30, 2025 compared to $1.8 million for the three months ended June 30, 2024, which was flat.

*Property general and administrative expenses.* Property general and administrative expenses were $1.3 million for the three months ended June 30, 2025 compared to $1.3 million for the three months ended June 30, 2024, which was flat.

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**Net Operating Income for Our Same Store and Non-Same Store Properties for the Six Months Ended June 30, 2025 and 2024**

There are 35 properties encompassing 12,946 units of apartment space in our same store pool for the six months ended June 30, 2025 and 2024 (our "Same Store" properties). Our Same Store properties exclude 38 units that are currently down (see Note 3).

The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2025 and 2024 for our Same Store and Non-Same Store properties (dollars in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |  |  |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenues** |  |  |  |  |
| Same Store |  |  |  |  |
| &nbsp;&nbsp;Rental income | $122666 | $123526 | $(860) | -0.7% |
| &nbsp;&nbsp;Other income | 2883 | 2776 | 107 | 3.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Store revenues | 125549 | 126302 | (753) | -0.6% |
| Non-Same Store |  |  |  |  |
| &nbsp;&nbsp;Rental income | 4 | 4455 | (4451) | N/M |
| &nbsp;&nbsp;Other income |  | 247 | (247) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Store revenues | 4 | 4702 | (4698) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 125553 | 131004 | (5451) | -4.2% |
| **Operating expenses** |  |  |  |  |
| Same Store |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (1) | 26443 | 25854 | 589 | 2.3% |
| &nbsp;&nbsp;Real estate taxes and insurance | 17510 | 16837 | 673 | 4.0% |
| &nbsp;&nbsp;Property management fees (2) | 3626 | 3653 | (27) | -0.7% |
| &nbsp;&nbsp;Property general and administrative expenses (3) | 2483 | 2472 | 11 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Store operating expenses | 50062 | 48816 | 1246 | 2.6% |
| Non-Same Store |  |  |  |  |
| &nbsp;&nbsp;Property operating expenses (4) | 1 | 1424 | (1423) | N/M |
| &nbsp;&nbsp;Real estate taxes and insurance | (23) | 663 | (686) | N/M |
| &nbsp;&nbsp;Property management fees (2) |  | 177 | (177) | N/M |
| &nbsp;&nbsp;Property general and administrative expenses (5) | 3 | 143 | (140) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Same Store operating expenses | (19) | 2407 | (2426) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 50043 | 51223 | (1180) | -2.3% |
| **Operating income** |  |  |  |  |
| Same Store |  |  |  |  |
| &nbsp;&nbsp;Miscellaneous income | 286 | 174 | 112 | N/M |
| Non-Same Store |  |  |  |  |
| &nbsp;&nbsp;Miscellaneous income |  | 3 | (3) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating income | 286 | 177 | 109 | 61.6% |
| **NOI** |  |  |  |  |
| &nbsp;&nbsp;Same Store | 75773 | 77660 | (1887) | -2.4% |
| &nbsp;&nbsp;Non-Same Store | 23 | 2298 | (2275) | N/M |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total NOI** | $75796 | $79958 | $(4162) | -5.2% |

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(1)For the six months ended June 30, 2025 and 2024, excludes approximately $(1,449,000) and $263,000, respectively, of casualty-related expenses/(recoveries).

(2)Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.

(3)For the six months ended June 30, 2025 and 2024, excludes approximately $1,626,000 and $2,064,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.

(4)For the six months ended June 30, 2025 and 2024, excludes approximately $2,000 and $1,000, respectively, of casualty-related expenses.

(5)For the six months ended June 30, 2025 and 2024, excludes approximately $32,000 and $252,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

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See reconciliation of net loss to NOI above under "NOI and Same Store NOI for the Three and Six Months Ended June 30, 2025 and 2024."

***Same Store Results of Operations for the Six Months Ended June 30, 2025 and 2024***

As of June 30, 2025, our Same Store properties were approximately 93.3% leased with a weighted average monthly effective rent per occupied apartment unit of $1,500. As of June 30, 2024, our Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,520. For our Same Store properties, we recorded the following operating results for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024:

***Revenues***

*Rental income*. Rental income was $122.7 million for the six months ended June 30, 2025 compared to $123.5 million for the six months ended June 30, 2024, which was a decrease of approximately $0.8 million, or 0.7%. The decrease in rental income between the periods was primarily attributable to a decrease in weighted average occupancy for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

*Other income.* Other income was $2.9 million for the six months ended June 30, 2025 compared to $2.8 million for the six months ended June 30, 2024, which was an increase of approximately $0.1 million, or 3.9%. The majority of the increase is related to a $0.1 million increase in interest income.

***Expenses***

*Property operating expenses.* Property operating expenses were $26.4 million for the six months ended June 30, 2025 compared to $25.9 million for the six months ended June 30, 2024, which was an increase of approximately $0.5 million, or 2.3%. The majority of the increase is related to an increase of approximately $0.4 million in repairs and maintenance.

*Real estate taxes and insurance.* Real estate taxes and insurance costs were $17.5 million for the six months ended June 30, 2025 compared to $16.8 million for the six months ended June 30, 2024, which was an increase of approximately $0.7 million. The majority of the increase is related to an increase in real estate taxes of $0.7 million.

*Property management fees.* Property management fees were $3.6 million for the six months ended June 30, 2025 compared to $3.7 million for the six months ended June 30, 2024, which was a decrease of approximately $0.1 million. The majority of the decrease is related to a $0.1 million, or 0.7%, decrease in rental income, which the fee is primarily based on.

*Property general and administrative expenses.* Property general and administrative expenses were $2.5 million for the six months ended June 30, 2025 compared to $2.5 million for the six months ended June 30, 2024, which was flat.

***FFO, Core FFO and AFFO***

We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measure. We also believe that funds from operations ("FFO"), as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), core funds from operations ("Core FFO") and adjusted funds from operations ("AFFO") are important non-GAAP supplemental measures of operating performance for a REIT.

Since the historical cost accounting convention used for real estate assets requires depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income (loss), as defined by GAAP. FFO is defined by NAREIT as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. We compute FFO attributable to common stockholders in accordance with NAREIT's definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.

Core FFO makes certain adjustments to FFO, not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such casualty-related expenses and recoveries and gains or losses, gain (loss) on extinguishment of debt and modification costs that are not reflective of continuing operations of the properties, the amortization of deferred financing costs, mark-to-market gains or losses related to interest rate cap agreements not designated as hedges for accounting purposes, and the noncontrolling interests (as described above) related to these items. We believe Core FFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities. Starting in the third quarter of 2024, the Company adjusted Core FFO to remove (1) the amortization of all deferred financing costs instead of those solely related to short-term debt financing and (2) mark-to-market gains or losses related to

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interest rate cap agreements not designated as hedges for accounting purposes. Prior periods have been recast to conform to the current presentation.

AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our Portfolio. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense, and the related noncontrolling interests (as described above) related to these items. We believe AFFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities.

The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted FFO, Core FFO and AFFO per share, as they are exchangeable for common stock on a one-for-one basis. The FFO, Core FFO and AFFO allocable to such units is allocated on this same basis and reflected in the adjustments for noncontrolling interests in the table below. As such, the assumed conversion of these units would have no net impact on the determination of diluted FFO, Core FFO and AFFO per share. See Note 8 to our consolidated financial statements for additional information.

We believe that the use of FFO, Core FFO and AFFO, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. While FFO, Core FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income (loss) as defined by GAAP and should not be considered as an alternative or substitute to those measures in evaluating our liquidity or operating performance. FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO, Core FFO and AFFO may not be comparable to FFO, Core FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define Core FFO or AFFO differently than we do.

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The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |  |
|  |  | **2025** | **2024** | **2025** | **2024** | **% Change** |
| Net income (loss) |  | $(7061) | $10638 | $(13985) | $37040 | N/M |
| Depreciation and amortization |  | 24059 | 24442 | 48409 | 48765 | -0.7% |
| Gain on sales of real estate | (1) |  | (18686) |  | (50395) | N/M |
| Adjustment for noncontrolling interests |  | (67) | (64) | (136) | (139) | -2.2% |
| **FFO attributable to common stockholders** |  | 16931 | 16330 | 34288 | 35271 | -2.8% |
| **FFO per share - basic** |  | $0.67 | $0.64 | $1.35 | $1.38 | -2.2% |
| **FFO per share - diluted** |  | $0.67 | $0.62 | $1.34 | $1.34 | 0.0% |
| Loss on extinguishment of debt and modification costs |  |  | 255 |  | 801 | N/M |
| Casualty-related expenses/(recoveries) |  | (792) | 232 | (1448) | 267 | N/M |
| Casualty loss |  | 5 | 737 | 168 | 538 | N/M |
| Amortization of deferred financing costs |  | 1628 | 702 | 3272 | 1419 | N/M |
| Mark-to-market adjustments of interest rate caps |  | 187 | (116) | 778 | (742) | N/M |
| Adjustment for noncontrolling interests |  | (4) | (7) | (11) | (9) | 22.2% |
| **Core FFO attributable to common stockholders** |  | 17955 | 18133 | 37047 | 37545 | -1.3% |
| **Core FFO per share - basic** |  | $0.71 | $0.71 | $1.46 | $1.46 | 0.0% |
| **Core FFO per share - diluted** |  | $0.71 | $0.69 | $1.45 | $1.43 | 1.4% |
| Equity-based compensation expense |  | 2335 | 2684 | 4810 | 5231 | -8.0% |
| Adjustment for noncontrolling interests |  | (9) | (11) | (19) | (21) | -9.5% |
| **AFFO attributable to common stockholders** |  | 20281 | 20806 | 41838 | 42755 | -2.1% |
| **AFFO per share - basic** |  | $0.80 | $0.81 | $1.65 | $1.67 | -1.2% |
| **AFFO per share - diluted** |  | $0.80 | $0.79 | $1.64 | $1.62 | 1.2% |
| **Weighted average common shares outstanding - basic** |  | 25384 | 25540 | 25416 | 25630 | -0.8% |
| **Weighted average common shares outstanding - diluted** | (2) | 25404 | 26309 | 25540 | 26331 | -3.0% |
| **Dividends declared per common share** |  | $0.51 | $0.46 | $1.02 | $0.92 | 10.3% |
| **Net income (loss) Coverage - diluted** | (3) | -0.55x | 0.87x | -0.54x | 1.51x | N/M |
| **FFO Coverage - diluted** | (3) | 1.31x | 1.34x | 1.31x | 1.45x | -9.3% |
| **Core FFO Coverage - diluted** | (3) | 1.39x | 1.49x | 1.42x | 1.55x | -8.1% |
| **AFFO Coverage - diluted** | (3) | 1.57x | 1.71x | 1.61x | 1.75x | -8.2% |

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(1)The Company uses actual diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO.

(2)Indicates coverage ratio of net income (loss)/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

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*The three months ended June 30, 2025 as compared to the three months ended June 30, 2024*

FFO was $16.9 million for the three months ended June 30, 2025 compared to $16.3 million for the three months ended June 30, 2024, which was an increase of approximately $0.6 million. The change in our FFO between the periods primarily relates to a decrease in total revenues of $1.1 million, offset by decreases in property operating expenses and property general and administrative expenses of $1.3 million and $0.6 million, respectively.

Core FFO was $18.0 million for the three months ended June 30, 2025 compared to $18.1 million for the three months ended June 30, 2024, which was a decrease of $0.1 million. The change in Core FFO was attributable to an increase in FFO and a decrease in casualty-related expenses of $1.0 million offset by an increase in mark-to-market adjustments related to interest rate caps and amortization of deferred financing costs of $0.3 million and $0.9 million, respectively.

AFFO was $20.3 million for the three months ended June 30, 2025 compared to $20.8 million for the three months ended June 30, 2024, which was a decrease of $0.5 million. The change in our AFFO between the periods primarily relates to a decrease in Core FFO and a decrease in equity based compensation expense of $0.3 million.

*The six months ended June 30, 2025 as compared to the six months ended June 30, 2024*

FFO was $34.3 million for the six months ended June 30, 2025 compared to $35.3 million for the six months ended June 30, 2024, which was a decrease of approximately $1.0 million. The change in our FFO between the periods primarily relates to a decrease in total revenues of $5.5 million, offset by a decrease in interest expense and property operating expenses of $1.2 million and $3.6 million, respectively.

Core FFO was $37.0 million for the six months ended June 30, 2025 compared to $37.5 million for the six months ended June 30, 2024, which was a decrease of approximately $0.5 million. The change in our Core FFO between the periods primarily relates to a decrease in FFO and an increase in casualty-related recoveries of $1.7 million, partially offset by an increase in amortization of deferred financing costs of $1.9 million.

AFFO was $41.8 million for the six months ended June 30, 2025 compared to $42.8 million for the six months ended June 30, 2024, which was a decrease of approximately $1.0 million. The change in our AFFO between the periods primarily relates to a decrease in Core FFO and a decrease of equity-based compensation expense of $0.4 million.

**Liquidity and Capital Resources**

Our short-term liquidity requirements consist primarily of funds necessary to pay for operating expenses and other expenditures directly associated with our multifamily properties, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•capital expenditures to continue our value-add program and to improve the quality and performance of our multifamily properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•interest expense and scheduled principal payments on outstanding indebtedness, if any (see "—Obligations and Commitments" below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•recurring maintenance necessary to maintain our multifamily properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•distributions necessary to qualify for taxation as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquisition of additional properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•advisory and administrative fees payable to our Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general and administrative expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reimbursements to our Adviser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•property management fees payable to BH.

We expect to meet our short-term liquidity requirements generally through net cash provided by operations and existing cash balances and any unused capacity on the Credit Facility. As of June 30, 2025, we had approximately $3.3 million of renovation value-add reserves for our planned capital expenditures to implement our value-add program. Renovation value-add reserves are not required to be held in escrow by a third party. We may reallocate these funds, at our discretion, to pursue other investment opportunities or meet our short-term liquidity requirements.

Our long-term liquidity requirements consist primarily of funds necessary to pay for the costs of acquiring additional multifamily properties, renovations and other capital expenditures to improve our multifamily properties and scheduled debt payments and distributions. We expect to meet our long-term liquidity requirements through various sources of capital, which may include a revolving credit facility and future debt or equity issuances, existing working capital, net cash provided by operations, long-term mortgage indebtedness and other secured and unsecured borrowings, and property dispositions. However, there are a number of factors that may

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have a material adverse effect on our ability to access these capital sources, including the state of overall equity and credit markets, our degree of leverage, our unencumbered asset base and borrowing restrictions imposed by lenders (including as a result of any failure to comply with financial covenants in our existing and future indebtedness), general market conditions for REITs, our operating performance and liquidity, market perceptions about us and restrictions on sales of properties under the Code. The success of our business strategy will depend, in part, on our ability to access these various capital sources.

In addition to our value-add program, our multifamily properties will require periodic capital expenditures and renovation to remain competitive. Also, acquisitions, redevelopments, or expansions of our multifamily properties will require significant capital outlays. Long-term, we may not be able to fund such capital improvements solely from net cash provided by operations because we must distribute annually at least 90% of our REIT taxable income, determined without regard to the deductions for dividends paid and excluding net capital gains, to qualify and maintain our qualification as a REIT, and we are subject to tax on any retained income and gains. As a result, our ability to fund capital expenditures, acquisitions, or redevelopment through retained earnings long-term is limited. Consequently, we expect to rely heavily upon the availability of debt or equity capital for these purposes. If we are unable to obtain the necessary capital on favorable terms, or at all, our financial condition, liquidity, results of operations, and prospects could be materially and adversely affected.

On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of the ATM Sales Agents, pursuant to which the Company could issue and sell from time to time when an effective registration statement was available shares of the Company's common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the "2020 ATM Program"). On March 20, 2025, the equity distribution agreements with each of KeyBanc and SunTrust were terminated. The 2020 ATM Program may be terminated by the Company at any time and expires automatically once aggregate sales under the 2020 ATM Program reach $225,000,000 (see Note 6 to our consolidated financial statements).

We believe that our available cash, expected operating cash flows, and potential debt or equity financings will provide sufficient funds for our operations, anticipated scheduled debt service payments and dividend requirements for the twelve-month period following June 30, 2025.

***Cash Flows***

The following table presents selected data from our consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Net cash provided by operating activities | $48202 | $39346 |
| Net cash provided by (used in) investing activities | (18689) | 124529 |
| Net cash used in financing activities | (35426) | (154507) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | (5913) | 9368 |
| Cash, cash equivalents and restricted cash, beginning of period | 53917 | 45279 |
| Cash, cash equivalents and restricted cash, end of period | $48004 | $54647 |

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*Cash flows from operating activities.* During the six months ended June 30, 2025, net cash provided by operating activities was $48.2 million compared to net cash provided by operating activities of $39.3 million for the six months ended June 30, 2024. The change in cash flows from operating activities was mainly due to an increase in real estate taxes payable of $6.5 million.

*Cash flows from investing activities.* During the six months ended June 30, 2025, net cash used in investing activities was $18.7 million compared to net cash provided by investing activities of $124.5 million for the six months ended June 30, 2024. The change in cash flows from investing activities was mainly due to no dispositions during the six months ended June 30, 2025 compared to two dispositions for the six months ended June 30, 2024.

*Cash flows from financing activities.* During the six months ended June 30, 2025, net cash used in financing activities was $35.4 million compared to net cash used in financing activities of $154.5 million for the six months ended June 30, 2024. The change in cash flows from financing activities was mainly due to a net decrease in mortgage payments and credit facilities payments of $112.3 million for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

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***Real Estate Investments Statistics***

As of June 30, 2025, the Company was invested in a total of 35 multifamily properties, as listed below:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Average Effective Monthly<br>Rent Per Unit<br>(1) as of** | **Average Effective Monthly<br>Rent Per Unit<br>(1) as of** | **% Occupied (2) as of** | **% Occupied (2) as of** |
| **Property Name** | **Rentable Square<br>Footage<br>(in thousands)** | **Number <br>of<br>Units (3)** | **Date <br>Acquired** | **June 30, 2025** | **December 31, 2024** | **June 30, 2025** | **December 31, 2024** |
| Arbors on Forest Ridge | 155 | 210 | 1/31/2014 | $1159 | $1121 | 95.7% | 98.6% |
| Cutter's Point | 198 | 196 | 1/31/2014 | 1409 | 1370 | 94.9% | 98.5% |
| The Summit at Sabal Park | 205 | 252 | 8/20/2014 | 1353 | 1370 | 95.2% | 94.4% |
| Courtney Cove | 225 | 324 | 8/20/2014 | 1306 | 1249 | 93.5% | 92.9% |
| Sabal Palm at Lake Buena Vista | 371 | 400 | 11/5/2014 | 1658 | 1671 | 95.8% | 94.0% |
| Cornerstone | 318 | 430 | 1/15/2015 | 1429 | 1435 | 93.0% | 94.4% |
| The Preserve at Terrell Mill | 692 | 752 | 2/6/2015 | 1285 | 1282 | 93.2% | 94.3% |
| Versailles | 301 | 388 | 2/26/2015 | 1122 | 1130 | 92.0% | 96.1% |
| Seasons 704 Apartments | 217 | 222 | 4/15/2015 | 1814 | 1818 | 95.5% | 95.0% |
| Madera Point | 193 | 256 | 8/5/2015 | 1293 | 1311 | 96.1% | 93.8% |
| Venue at 8651 | 289 | 333 | 10/30/2015 | 1163 | 1160 | 93.7% | 95.5% |
| Parc500 | 266 | 217 | 7/27/2016 | 1936 | 1879 | 93.5% | 96.3% |
| The Venue on Camelback | 256 | 415 | 10/11/2016 | 970 | 981 | 93.7% | 92.8% |
| Rockledge Apartments | 802 | 708 | 6/30/2017 | 1494 | 1488 | 93.5% | 94.3% |
| Atera Apartments | 334 | 380 | 10/25/2017 | 1494 | 1487 | 91.3% | 95.0% |
| Versailles II | 199 | 242 | 9/26/2018 | 1071 | 1064 | 93.4% | 96.7% |
| Brandywine I & II | 414 | 632 | 9/26/2018 | 1188 | 1204 | 95.3% | 94.6% |
| Bella Vista | 243 | 248 | 1/28/2019 | 1706 | 1712 | 96.4% | 89.9% |
| The Enclave | 194 | 204 | 1/28/2019 | 1757 | 1782 | 92.6% | 93.6% |
| The Heritage | 199 | 204 | 1/28/2019 | 1688 | 1676 | 96.1% | 94.6% |
| Summers Landing | 139 | 196 | 6/7/2019 | 1202 | 1198 | 94.4% | 95.4% |
| Residences at Glenview Reserve | 344 | 360 | 7/17/2019 | 1239 | 1248 | 94.2% | 95.3% |
| Residences at West Place | 345 | 342 | 7/17/2019 | 1582 | 1586 | 95.3% | 95.0% |
| Avant at Pembroke Pines | 1442 | 1520 | 8/30/2019 | 2218 | 2199 | 95.7% | 95.3% |
| Arbors of Brentwood | 325 | 346 | 9/10/2019 | 1431 | 1458 | 97.1% | 93.1% |
| Torreyana Apartments | 309 | 316 | 11/22/2019 | 1473 | 1444 | 96.2% | 95.9% |
| Bloom | 498 | 528 | 11/22/2019 | 1300 | 1276 | 95.1% | 94.7% |
| Bella Solara | 271 | 320 | 11/22/2019 | 1332 | 1328 | 93.8% | 93.1% |
| Fairways at San Marcos | 340 | 352 | 11/2/2020 | 1592 | 1574 | 93.5% | 95.7% |
| The Verandas at Lake Norman | 241 | 264 | 6/30/2021 | 1352 | 1343 | 93.9% | 98.1% |
| Creekside at Matthews | 263 | 240 | 6/30/2021 | 1428 | 1423 | 96.7% | 95.8% |
| Six Forks Station | 360 | 323 | 9/10/2021 | 1356 | 1359 | 90.4% | 93.2% |
| High House at Cary | 293 | 302 | 12/7/2021 | 1463 | 1498 | 94.0% | 92.1% |
| The Adair | 328 | 232 | 4/1/2022 | 1933 | 1995 | 96.6% | 91.4% |
| Estates on Maryland | 324 | 330 | 4/1/2022 | 1403 | 1430 | 94.5% | 95.5% |
|  | 11893 | 12984 |  |  |  |  |  |

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(1)Average effective monthly rent per unit is equal to the average of the contractual rent for commenced leases as of June 30, 2025 and December 31, 2024, respectively, minus any tenant concessions over the term of the lease, divided by the number of units under commenced leases as of June 30, 2025 and December 31, 2024, respectively.

(2)Percent occupied is calculated as the number of units occupied as of June 30, 2025 and December 31, 2024, divided by the total number of units, expressed as a percentage.

(3)Includes 38 down units due to casualty events as of June 30, 2025 (see Note 3).

**Debt, Derivatives and Hedging Activity**

***Mortgage Debt***

As of June 30, 2025, our subsidiaries had aggregate mortgage debt outstanding to third parties of approximately $1.5 billion at a weighted average interest rate of 5.38% and an adjusted weighted average interest rate of 3.51%. For purposes of calculating the adjusted weighted average interest rate of our mortgage debt outstanding, we have included the weighted average fixed rate of 1.36% Adjusted SOFR on our combined $0.9 billion notional amount of interest rate swap agreements, which effectively fixes the interest rate on $0.9 billion of our floating rate debt. See Notes 4 and 5 to our consolidated financial statements for additional information.

We have entered into and expect to continue to enter into interest rate swap and cap agreements with various third parties to fix or cap the floating interest rates on a majority of our floating rate mortgage debt outstanding. The interest rate swap agreements generally have a term of four to five years and effectively establish a fixed interest rate on debt on the underlying notional amounts. The interest rate swap agreements involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2025, interest rate swap agreements effectively covered 62% of our $1.5 billion of floating rate mortgage debt outstanding.

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The interest rate cap agreements generally have a term of three to four years, cover the outstanding principal amount of the underlying debt and are generally required by our lenders. Under the interest rate cap agreements, we pay a fixed fee in exchange for the counterparty to pay any interest above a maximum rate. As of June 30, 2025, the Company had interest rate cap agreements with a notional value of $1.5 billion outstanding.

LIBOR ceased publication on June 30, 2023. On July 1, 2023, LIBOR rates were replaced with SOFR as the reference rate for most LIBOR debt and derivative instruments. For the Company's interest rate swaps that were entered into before the transition, the reference transitioned from one-month LIBOR to Adjusted SOFR.

We intend to invest in additional multifamily properties as suitable opportunities arise and adequate sources of equity and debt financing are available. We expect that future investments in properties, including any improvements or renovations of current or newly acquired properties, will depend on and will be financed by, in whole or in part, our existing cash, future borrowings and the proceeds from additional issuances of common stock or other securities or property dispositions.

Although we expect to be subject to restrictions on our ability to incur indebtedness, we expect that we will be able to refinance existing indebtedness or incur additional indebtedness for acquisitions or other purposes, if needed. However, there can be no assurance that we will be able to refinance our indebtedness, incur additional indebtedness or access additional sources of capital, such as by issuing common stock or other debt or equity securities, on terms that are acceptable to us or at all.

Furthermore, following the completion of our value-add and capital expenditures programs and depending on the interest rate environment at the applicable time, we may seek to refinance our floating rate debt into longer-term fixed rate debt at lower leverage levels.

***Credit Facility***

On March 25, 2022, the Company entered into a loan modification agreement by and among the Company, the OP, Truist Bank and the Lenders party thereto, which modified the Company's credit agreement, dated as of June 30, 2021 (as amended and supplemented, the "Corporate Credit Facility"). On October 24, 2022, the Company exercised its option to extend the Corporate Credit Facility with respect to the revolving commitments for a single one-year term resulting in a maturity date of June 30, 2025. On February, 28, 2025, the Company agreed to reduce the available borrowing on the Corporate Credit facility by $250.0 million. The Corporate Credit Facility matured on June 30, 2025 with respect to the revolving commitments. As of June 30, 2025 and December 31, 2024, the Company had $0.0 million outstanding on the Corporate Credit Facility and $0.0 million and $350.0 million, respectively, available for borrowing under the Corporate Credit Facility.

On July 11, 2025, the Company, though the OP, entered into a $200.0 million revolving credit facility with J.P. Morgan Chase Bank, N.A. and the lenders thereto from time to time (the "Credit Facility"). The Credit Facility may be increased by up to an additional $200.0 million if the lenders agree to increase their commitments. The Credit Facility will mature on June 30, 2028, unless the Company exercises its option to extend for a one-year term upon satisfaction of certain criteria and payment of an extension fee of 0.15% of the aggregate amount outstanding under the Credit Facility.

The Credit Facility is guaranteed by the Company and the obligations under the Credit Facility are, subject to some exceptions, secured by a security interest in the proceeds of all equity offerings and other capital events by the Company, the OP or their subsidiaries and an equity pledge of each subsidiary of the OP that owns an interest in a mortgaged property.

Advances under the Credit Facility accrue interest at a per annum rate equal to, at the Company's election, either (i) the daily SOFR plus a margin of 1.50% to 2.25%, depending on the Company's total leverage ratio in the immediately preceding quarter, (ii) the term SOFR for the interest period plus a margin of 1.50% to 2.25%, depending on the Company's total leverage ratio in the immediately preceding quarter, or (iii) a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.5%, or (c) the one month term SOFR plus 1.0%, plus a margin of 0.50% to 1.25%, depending on the Company's total leverage ratio in the immediately preceding quarter.

A commitment fee at a rate of 0.20% or 0.30%, depending on the average daily revolving commitment utilization percentage for the calendar quarter, applies to unutilized borrowing capacity under the Credit Facility.

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***Interest Rate Swap Agreements***

In order to fix a portion of, and mitigate the risk associated with, our floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), we, through the OP, have entered into five interest rate swap transactions with KeyBank, one with JPMorgan and one with SunTrust Bank (collectively the "Counterparties") with a combined notional amount of $0.9 billion. As of June 30, 2025, the interest rate swaps we have entered into effectively replace the floating interest rate (Adjusted SOFR or SOFR) with respect to $0.9 billion of our floating rate debt outstanding with a weighted average fixed rate of 1.36%. During the term of these interest rate swap agreements, we are required to make monthly fixed rate payments of 1.36%, on a weighted average basis, on the notional amounts, while the Counterparties are obligated to make monthly floating rate payments based on Adjusted SOFR, other than for the JPMorgan swap which is based on SOFR to us referencing the same notional amounts. For purposes of hedge accounting under FASB ASC 815, *Derivatives and Hedging,* we have designated these interest rate swaps as cash flow hedges of interest rate risk. See Notes 4 and 5 to our consolidated financial statements for additional information.

The following table contains summary information regarding our outstanding interest rate swaps (dollars in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Effective Date** | **Termination Date** | **Counterparty** | **Notional Amount** | **Fixed Rate (1)** |  |
| September 1, 2019 | September 1, 2026 | KeyBank | $100000 | 1.462% |  |
| September 1, 2019 | September 1, 2026 | KeyBank | 125000 | 1.302% |  |
| January 3, 2020 | September 1, 2026 | KeyBank | 92500 | 1.609% |  |
| March 4, 2020 | June 1, 2026 | Truist | 100000 | 0.820% |  |
| June 1, 2021 | September 1, 2026 | KeyBank | 200000 | 0.845% |  |
| June 1, 2021 | September 1, 2026 | KeyBank | 200000 | 0.953% |  |
| April 3, 2025 | April 1, 2030 | JPMorgan | 100000 | 3.489% |  |
|  |  |  | $917500 | 1.361% | (2) |

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(1)The floating rate option for the interest rate swaps is Adjusted SOFR and SOFR. As of June 30, 2025, Adjusted SOFR and SOFR were 4.44% and 4.32%, respectively.

(2)Represents the weighted average fixed rate of the interest rate swaps.

**Obligations and Commitments**

The following table summarizes our contractual obligations and commitments as of June 30, 2025 for the next five calendar years subsequent to June 30, 2025. We used Adjusted SOFR as of June 30, 2025 to calculate interest expense due by period on our floating rate debt and net interest expense due by period on our interest rate swaps.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Payments Due by Period (in thousands)** | **Payments Due by Period (in thousands)** | **Payments Due by Period (in thousands)** | **Payments Due by Period (in thousands)** | **Payments Due by Period (in thousands)** | **Payments Due by Period (in thousands)** | **Payments Due by Period (in thousands)** |
|  |  | **Total** | **Remainder of 2025** | **2026** | **2027** | **2028** | **2029** | **Thereafter** |
| **Operating Properties Mortgage Debt** |  |  |  |  |  |  |  |  |
| Principal payments |  | $1503242 | $— | $— | $— | $33817 | $— | $1469425 |
| Interest expense | (1) | 397909 | 26601 | 49030 | 62449 | 64854 | 66115 | 128860 |
| **Total** |  | $1901151 | $26601 | $49030 | $62449 | $98671 | $66115 | $1598285 |

---

(1)Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of June 30, 2025, we had entered into eight interest rate swap transactions with a combined notional amount of $0.9 billion. We have allocated the total impact of expected settlements on the $0.9 billion notional amount of interest rate swaps to 'Operating Properties Mortgage Debt.' We used Adjusted SOFR and SOFR as of June 30, 2025 to determine our expected settlements through the terms of the interest rate swaps.

*Corporate Credit Facility*

The Corporate Credit Facility matured on June 30, 2025 with respect to the revolving commitments.

*Credit Facility*

On July 11, 2025, the Company, though the OP, entered into a $200.0 million revolving credit facility with J.P. Morgan Chase Bank, N.A. and the lenders thereto from time to time (the "Credit Facility"). The Credit Facility may be increased by up to an additional $200.0 million if the lenders agree to increase their commitments. The Credit Facility will mature on June 30, 2028, unless the Company exercises its option to extend for a one-year term upon satisfaction of certain criteria and payment of an extension fee of 0.15% of the aggregate amount outstanding under the Credit Facility.

------

The Credit Facility is guaranteed by the Company and the obligations under the Credit Facility are, subject to some exceptions, secured by a security interest in the proceeds of all equity offerings and other capital events by the Company, the OP or their subsidiaries and an equity pledge of each subsidiary of the OP that owns an interest in a mortgaged property.

Advances under the Credit Facility accrue interest at a per annum rate equal to, at the Company's election, either (i) the daily SOFR plus a margin of 1.50% to 2.25%, depending on the Company's total leverage ratio in the immediately preceding quarter, (ii) the term SOFR for the interest period plus a margin of 1.50% to 2.25%, depending on the Company's total leverage ratio in the immediately preceding quarter, or (iii) a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.5%, or (c) the one month term SOFR plus 1.0%, plus a margin of 0.50% to 1.25%, depending on the Company's total leverage ratio in the immediately preceding quarter.

A commitment fee at a rate of 0.20% or 0.30%, depending on the average daily revolving commitment utilization percentage for the calendar quarter, applies to unutilized borrowing capacity under the Credit Facility.

*Advisory Agreement*

Our Advisory Agreement requires that we pay our Adviser an annual advisory and administrative fee of 1.2%. The advisory and administrative fees paid to the Adviser on the Contributed Assets (as defined in the Advisory Agreement) are subject to an annual cap of approximately $5.4 million. For the three months ended June 30, 2025 and 2024, the Company incurred advisory and administrative fees of $1.7 million and $1.7 million, respectively. For the six months ended June 30, 2025 and 2024, advisory and administrative fees were $3.4 million and $3.5 million, respectively.

*NLMF Holdco, LLC*

The Company's agreement with NLMF Holdco, LLC may result in additional funding requirements to cover future project costs. The maximum exposure of potential commitments is expected to be no more than $4.0 million. We expect that these actions will provide faster, more reliable and lower cost internet to our residents. We expect to roll out this service to our other properties in the future.

**Capital Expenditures and Value-Add Program**

We anticipate incurring average annual repairs and maintenance expense of $575 to $725 per apartment unit in connection with the ongoing operations of our business. These expenditures are expensed as incurred. In addition, we reserve, on average, approximately $250 to $350 per apartment unit for non-recurring capital expenditures and/or lender required replacement reserves. When incurred, these expenditures are either capitalized or expensed, in accordance with GAAP, depending on the type of the expenditure. Although we will continuously monitor the adequacy of this average, we believe these figures to be sufficient to maintain the properties at a high level in the markets in which we operate. A majority of the properties in our Portfolio were underwritten and acquired with the premise that we would invest $4,000 to $10,000 per unit in the first 36 months of ownership, in an effort to add value to the asset's exterior and interiors. In many cases, we reserve cash at the closing of each acquisition to fund these planned capital expenditures and value-add improvements. As of June 30, 2025, we had approximately $3.3 million of renovation value-add reserves for our planned capital expenditures and other expenses to implement our value-add program, which will provide further funding for our interior and exterior rehab initiatives at several properties. The following table sets forth a summary of our capital expenditures related to our value-add program for the three and six months ended June 30, 2025 and 2024 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| **Rehab Expenditures** |  | **2025** | **2024** | **2025** | **2024** |
| Interior | (1) | $1329 | $1063 | $1981 | $2794 |
| Exterior and common area |  | 91 | 889 | 149 | 1363 |
| &nbsp;&nbsp;Total rehab expenditures |  | $1420 | $1952 | $2130 | $4157 |

---

(1)Includes total capital expenditures during the period on completed and in-progress interior rehabs. For the six months ended June 30, 2025 and 2024, we completed full and partial interior rehabs on 765 and 240 units, respectively.

**Income Taxes**

We anticipate that we will continue to qualify to be taxed as a REIT for U.S. federal income tax purposes, and we intend to continue to be organized and to operate in a manner that will permit us to qualify as a REIT. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2025 and 2024.

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If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at corporate income tax rates, and dividends paid to our stockholders would not be deductible by us in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect our net income and net cash available for distribution to stockholders. Unless we were entitled to relief under certain Code provisions, we also would be disqualified from re-electing to be taxed as a REIT for the four taxable years following the year in which we failed to qualify to be taxed as a REIT.

We evaluate the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are "more-likely-than-not" (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. We have no examinations in progress and none are expected at this time.

We recognize our tax positions and evaluate them using a two-step process. First, we determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, we will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

We had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2025. We and our subsidiaries are subject to U.S. federal income tax as well as income tax of various state and local jurisdictions. The 2024, 2023 and 2022 tax years remain open to examination by tax jurisdictions to which our subsidiaries and we are subject. When applicable, we recognize interest and/or penalties related to uncertain tax positions on our consolidated statements of operations and comprehensive income (loss).

**Dividends**

We intend to make regular quarterly dividend payments to holders of our common stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We intend to make regular quarterly dividend payments of all or substantially all of our taxable income to holders of our common stock out of assets legally available for this purpose, if and to the extent authorized by our Board. Before we make any dividend payments, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and debt service on our debt payable. If our cash available for distribution is less than our taxable income, we could be required to sell assets, borrow funds or raise additional capital to make cash dividends or we may make a portion of the required dividend in the form of a taxable distribution of stock or debt securities.

We will make dividend payments based on our estimate of taxable earnings per share of common stock, but not earnings calculated pursuant to GAAP. Our dividends and taxable income and GAAP earnings will typically differ due to items such as depreciation and amortization, fair value adjustments, differences in premium amortization and discount accretion, and non-deductible general and administrative expenses. Our quarterly dividends per share may be substantially different than our quarterly taxable earnings and GAAP earnings per share. Our Board declared our second quarterly dividend of 2025 of $0.51 per share on April 28, 2025 which was paid on June 30, 2025 and funded out of cash flows from operations.

**Off-Balance Sheet Arrangements**

As of June 30, 2025 and December 31, 2024, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

**Critical Accounting Policies and Estimates**

Management's discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these judgments, assumptions and estimates for changes that would affect the reported amounts. These estimates are based on management's historical industry experience and on various other judgments and assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these judgments, assumptions and estimates. Below is a discussion of the accounting policies that we consider critical to understanding our financial condition or results of operations where there is uncertainty or where significant judgment is required. A discussion of recent accounting pronouncements and our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2 "Summary of Significant Accounting Policies" to our consolidated financial statements included in this quarterly report.

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*Purchase Price Allocation*

Upon acquisition of a property considered to be an asset acquisition, the purchase price and related acquisition costs ("total consideration") are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets based on relative fair value in accordance with FASB ASC 805, *Business Combinations.* Acquisition costs are capitalized in accordance with FASB ASC 805.

The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, *Fair Value Measurement and Disclosures* (see Note 5 to our consolidated financial statements), is based on management's estimate of the property's "as-if" vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.

*Impairment*

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, we will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company's impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment.

**Inflation**

The real estate market has not been directly affected by inflation in the past several years due to increases in rents nationwide. The majority of our lease terms are for a period of one year or less and reset to market if renewed. The majority of our leases also contain protection provisions applicable to reimbursement billings for utilities. Due to the short-term nature of our leases, we do not believe our results will be materially affected.

**REIT Tax Election**

We have elected to be taxed as a REIT under Sections 856 through 860 of the Code and expect to continue to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our "REIT taxable income," as defined by the Code, to our stockholders. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2025 and 2024. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT.

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**Item 3. Quantitative and Qualita** **tive Disclosures About Market Risk**

Market risk is the adverse effect on the value of assets and liabilities that results from a change in market conditions. Our primary market risk exposure is interest rate risk with respect to our indebtedness and counterparty credit risk with respect to our interest rate derivatives. In order to minimize counterparty credit risk, we enter into and expect to enter into hedging arrangements only with major financial institutions that have high credit ratings. As of June 30, 2025, we had total indebtedness of $1.5 billion at a weighted average interest rate of 5.38%, of which $1.5 billion was debt with a floating interest rate. As of June 30, 2025, interest rate swap agreements effectively covered 62% of our $1.5 billion of floating rate debt outstanding. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.36% for the floating interest rate on the $0.9 billion notional amount of interest rate swap agreements that we have entered into as of June 30, 2025, which effectively fix the interest rate on $0.9 billion of our floating rate mortgage debt outstanding.

An increase in interest rates could make the financing of any acquisition by us more costly. Rising or high interest rates could also limit our ability to refinance our debt when it matures or cause us to pay higher interest rates upon refinancing and increase interest expense on refinanced indebtedness. We may manage, or hedge, interest rate risks related to our borrowings by means of interest rate cap and interest rate swap agreements. As of June 30, 2025, the interest rate cap agreements we have entered into effectively cap SOFR on our floating rate mortgage debt at a weighted average rate of 7.43% for the term of the agreements, which is generally three to four years. We also expect to manage our exposure to interest rate risk by maintaining a mix of fixed and floating rates for our indebtedness.

In order to fix a portion of, and mitigate the risk associated with, our floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), we, through the OP, have entered into seven interest rate swap transactions with the Counterparties with a combined notional amount of $0.9 billion. The interest rate swaps we have entered into effectively replace the floating interest rate (Adjusted SOFR or SOFR) with respect to that amount with a weighted average fixed rate of 1.36%. During the term of these interest rate swap agreements, we are required to make monthly fixed rate payments of 1.36%, on a weighted average basis, on the notional amounts, while the Counterparties are obligated to make monthly floating rate payments based on Adjusted SOFR or SOFR to us referencing the same notional amounts. We have designated these interest rate swaps as cash flow hedges of interest rate risk.

Until our interest rates reach the caps provided by our interest rate cap agreements, each quarter point change in SOFR would result in an approximate increase to annual interest expense costs on our floating rate indebtedness, reduced by any payments due from the Counterparties under the terms of the interest rate swap agreements we had entered into as of June 30, 2025, of the amounts illustrated in the table below for our indebtedness as of June 30, 2025 (dollars in thousands):

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| | |
|:---|:---|
| **Change in Interest Rates** | **Annual Increase to Interest Expense** |
| 0.25% | $1380 |
| 0.50% | 2760 |
| 0.75% | 4140 |
| 1.00% | 5520 |

---

There is no assurance that we would realize such expense as such changes in interest rates could alter our liability positions or strategies in response to such changes.

We may also be exposed to credit risk in the derivative financial instruments we use. Credit risk is the failure of the Counterparties to perform under the terms of the derivative financial instruments. If the fair value of a derivative financial instrument is positive, the Counterparties will owe us, which creates credit risk for us. If the fair value of a derivative financial instrument is negative, we will owe the Counterparties and, therefore, do not have credit risk. We seek to minimize the credit risk in derivative financial instruments by entering into transactions with major financial institutions that have high credit ratings.

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**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

As required by Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, our management, including our President and Chief Financial Officer, evaluated, as of June 30, 2025, the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e) and Rule 15d-15(e). Based on that evaluation, our President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025, to provide reasonable assurance that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Exchange Act and is accumulated and communicated to management, including the President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

We believe, however, that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud or error, if any, within a company have been detected.

**Changes in Internal Control over Financial Reporting**

There has been no change in internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by government agencies.

**Item 1A. Risk Factors**

There have been no material changes to the risk factors previously disclosed under Part I, Item 1A, "Risk Factors" in our 2024 Annual Report, filed with the SEC on February 26, 2025.

**Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.**

*Repurchase of Shares*

On October 25, 2022, we announced that our Board authorized us to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $100.0 million during a two-year period that expired on October 24, 2024. On October 29, 2024, we announced that our Board authorized us to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $100.0 million during a two-year period that will expire on October 28, 2026 (together with the prior authorizations, the "Share Repurchase Program"). This authorization replaced the Board's prior share repurchase authorization. During the six months ended June 30, 2025, the Company repurchased 223,109 shares of its common stock, par value of $0.01 per share, at a total cost of approximately $7.7 million, or $34.29 per share on average. Since the inception of the Share Repurchase Program through June 30, 2025, the Company had repurchased 3,212,415 shares of its common stock, par value $0.01 per share, at a total cost of approximately $94.6 million, or $29.44 per share.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number <br>of Shares Purchased** | **Average Price <br>Paid Per Share** | **Total Number of Shares <br>Purchased as Part of <br>Publicly Announced<br>Plans or Programs** | **Approximate Dollar Value <br>of Shares that may yet be <br>Purchased under the <br>Plans or Programs (in<br>millions)** |
| Beginning Total | 2989306 | $29.07 | 2989306 | $85.5 |
| April 1 – April 30 | 223109 | 34.29 | 223109 | 77.8 |
| May 1 – May 31 |  |  |  | 77.8 |
| June 1 – June 30 |  |  |  | 77.8 |
| **Total as of June 30, 2025** | 3212415 | $29.44 | 3212415 | $77.8 |

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**Item 3. Defaults Upon Senior Securities**

None.

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**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

None.

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**Item 6. Exhibits**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 10.1 | [<u>NexPoint Residential Trust, Inc. 2025 Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed with the SEC on May 20, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1620393/000143774925017826/ex_821187.htm) |
| 10.2\* | [<u>Form of Restricted Stock Units Agreement (Employee) for award agreements entered into in 2025 and after</u>](nxrt-ex10_2.htm) |
| 10.3\* | [<u>Form of Restricted Stock Units Agreement (Director) for award agreements entered into in 2025 and after</u>](nxrt-ex10_3.htm) |
| 10.4 | [<u>Credit Agreement, by and among NexPoint Residential Trust Operating Partnership, L.P., as borrower, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent, dated as of July 11, 2025 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on July 16, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1620393/000143774925022767/ex_838160.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.1\* | [<u>Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](nxrt-ex31_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.2\* | [<u>Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](nxrt-ex31_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.1<sup>+</sup> | [<u>Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002</u>](nxrt-ex32_1.htm) |
| 101.INS\* | Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document) |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

------

\* Filed herewith.

+ Furnished herewith.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

**NEXPOINT RESIDENTIAL TRUST, INC.**

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| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ James Dondero | President and Director | July 30, 2025 |
| James Dondero | (Principal Executive Officer) |  |
| /s/ Paul Richards | Chief Financial Officer | July 30, 2025 |
| Paul Richards | (Principal Financial Officer and Principal Accounting Officer) |  |

---

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## Exhibit 10.2

**Exhibit 10.2**

**NEXPOINT RESIDENTIAL TRUST, INC.**

**<u>Form of Restricted Shares Units Agreement (Employee)</u>**

This RESTRICTED SHARES UNITS AGREEMENT (this "***Agreement***") is made as of ______, 20__, by and between NexPoint Residential Trust, Inc., a Maryland corporation (the "***Company***"), and [•] (the "***Participant***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**<u>Certain Definitions</u>**. Capitalized terms used, but not otherwise defined, in this Agreement will have the meanings given to such terms in the Company's 2025 Long Term Incentive Plan (the "***Plan***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**<u>Grant of RSUs</u>**. Subject to and upon the terms, conditions and restrictions set forth in this Agreement and in the Plan, the Company has granted to the Participant as of _____, 20__ (the "***Date of Grant***") [•] Restricted Shares Units ("***RSUs***"). Each RSU shall represent the right of the Participant to receive one Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**<u>Restrictions on Transfer of RSUs</u>**. Subject to Section 16 of the Plan, neither the RSUs evidenced hereby nor any interest therein or in the Shares underlying such RSUs shall be transferable prior to payment to the Participant pursuant to **<u>Section 5</u>** hereof other than (i) by transfer by the Participant for no consideration to Immediate Family Members or to a bona fide trust, partnership or other entity controlled by and for the benefit of one or more Immediate Family Members, or (ii) by will or pursuant to the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**<u>Vesting of RSUs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>General</u>. The RSUs covered by this Agreement shall become nonforfeitable and payable to the Participant pursuant to **<u>Section 5</u>** hereof ("***Vest***" or similar terms) as provided in this Section 4(a). The RSUs covered by this Agreement shall Vest as follows, in each case, conditioned upon the Participant's Continuous Service through each such date (the period from the Date of Grant until the final Vesting date, the "***Vesting Period***"):

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| | |
|:---|:---|
| &nbsp;&nbsp;**Portion of RSU Vesting** | &nbsp;&nbsp;**Vesting Date** |
| &nbsp;&nbsp;1/__ | &nbsp;&nbsp;1<sup>st</sup> anniversary of the Date of Grant |
| &nbsp;&nbsp;[1/__ | &nbsp;&nbsp;February 15, 202_] |
| &nbsp;&nbsp;[1/__ | &nbsp;&nbsp;February 15, 202_] |
| &nbsp;&nbsp;[1/__ | &nbsp;&nbsp;February 15, 202_] |
| &nbsp;&nbsp;[1/__ | &nbsp;&nbsp;February 15, 202_] |

---

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Any RSUs that do not so Vest will be forfeited, including, except as provided in **<u>Section 4(b)</u>**, **<u>Section 4(c)</u>** or **<u>Section 4(d)</u>** below, if the Participant ceases to be in Continuous Service prior to the end of the Vesting Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Vesting due to Death or Disability</u>. Notwithstanding **<u>Section 4(a)</u>** above, the RSUs shall Vest (to the extent the RSUs have not previously become Vested or been forfeited) prior to the end of the Vesting Period upon the date of Participant's termination of Continuous Service due to the Participant's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Vesting due to a Termination without Cause</u>. Notwithstanding **<u>Section 4(a)</u>** above, upon the Participant's termination of Continuous Service without Cause, the portion of the RSUs that would have Vested based on the Participant's Continuous Service in the 12-month period immediately following such termination shall Vest on the 55<sup>th</sup> day following such termination, provided that by such 55<sup>th</sup> day the Participant has (i) executed a general release of claims in a form prescribed by the Company (the "***Release***") within 21 days (or such longer number of days as is necessary to comply with applicable law) following such termination and (ii) the period of time during which the Participant could revoke the executed release has lapsed and the Release has become effective and nonrevocable. If the Release is not executed, or if it is executed but is subsequently revoked, such that no effective Release exists on the 55<sup>th</sup> day following such termination of Continuous Service without Cause, the RSUs that could have Vested shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Treatment on a Change in Control</u>. Notwithstanding **<u>Section 4(a)</u>** above, in the event of a Change in Control that occurs prior to the end of the Vesting Period and provided that the Participant is still in Continuous Service on the date of the Change in Control, the RSUs shall Vest (to the extent the RSUs have not previously become Vested or been forfeited) or be converted into Replacement Awards eligible for accelerated vesting on a Qualifying Termination, as prescribed in Section 13 of the Plan. Provided the RSUs are exempt from Code Section 409A, the definition of Change in Control for purposes of this Agreement shall include, in addition to the events listed under the Plan, the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any Person becomes a Beneficial Owner (as such term is defined in the Rule 13d-3 of the General Rules and Regulations under the Exchange Act), directly or indirectly, of either (A) 50% or more of the then-outstanding general or limited partnership interests of the Advisor ("***Advisor Interests***"), (B) 50% or more of the then-outstanding membership interests of NexPoint Real Estate Advisors GP, LLC (the "***Advisor GP***") ("***Advisor GP Interests***"), (C) 50% or more of the then outstanding general or limited partnership interests of NexPoint Advisors, L.P. (the "***Advisor Parent***") ("***Advisor Parent Interests***") or (D) 50% or more of the then-outstanding membership interests of NexPoint Advisors GP, LLC (the "***Advisor Parent GP***") ("***Advisor Parent GP Interests***"); provided, however, that for purposes of this subsection (i), the following acquisitions of Advisor Interests, Advisor GP Interests, Advisor Parent Interests or Advisor Parent GP Interests shall not constitute a Change in Control: (W) an acquisition

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directly from the Advisor, the Advisor GP, the Advisor Parent or the Advisor Parent GP, respectively, (X) an acquisition by the Advisor or an Advisor Affiliate, (Y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Advisor or any Advisor Affiliate, or (Z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (ii) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Advisor, the Advisor GP, the Advisor Parent or the Advisor GP (an "***Advisor Reorganization***"), or the sale or other disposition of all or substantially all of the Advisor's, the Advisor GP's, the Advisor Parent's or the Advisor GP's assets (an "***Advisor Sale***") or the acquisition of assets or stock of another corporation or other entity (an "***Advisor Acquisition***"), unless immediately following such Advisor Reorganization, Advisor Sale or Advisor Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the Advisor Interests, Advisor GP Interests, Advisor Parent Interests or Advisor Parent GP Interests, as applicable, immediately prior to such Advisor Reorganization, Advisor Sale or Advisor Acquisition beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding equity and the combined voting power of the then outstanding voting securities entitled to vote generally, as the case may be, of the entity resulting from such Advisor Reorganization, Advisor Sale or Advisor Acquisition (including, without limitation, an entity which as a result of such transaction owns the Advisor, the Advisor GP, the Advisor Parent or the Advisor Parent GP, as applicable, or all or substantially all of the Advisor's, the Advisor GP's, the Advisor Parent's or the Advisor Parent GP's, as applicable, assets or stock either directly or through one or more subsidiaries) (the "***Advisor Surviving Entity***") in substantially the same proportions as their ownership, immediately prior to such Advisor Reorganization, Advisor Sale or Advisor Acquisition, of the outstanding Advisor Interests, Advisor GP Interests, Advisor Parent Interests or Advisor Parent GP Interests, as the case may be, and (B) no Person (other than (X) the Advisor or any Advisor Affiliate, (Y) the Advisor Surviving Entity or its ultimate parent entity, or (Z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 50% or more of the total equity or 50% or more of the total voting power of the outstanding voting securities of the Advisor Surviving Entity (any Advisor Reorganization, Advisor Sale or Advisor Acquisition which satisfies all of the criteria specified in (A) and (B) above shall be deemed to be a "***Non-Qualifying Transaction***"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)approval by the partners or members, as applicable, of the Advisor, the Advisor GP, Advisor Parent, or the Advisor Parent GP of a complete liquidation or dissolution of the Advisor, Advisor GP, Advisor Parent or Advisor Parent GP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**<u>Form and Time of Payment of RSUs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>General</u>. Subject to **<u>Section 4</u>** and **<u>Section 5</u>**, payment for Vested RSUs will be made in Shares within 10 days following the Vesting dates specified in **<u>Section 4(a)</u>**, **<u>4(b)</u>** and **<u>4(c)</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Other Payment Events</u>. Notwithstanding **<u>Section 5(a)</u>**, to the extent that the RSUs are Vested on the dates set forth below, payment with respect to the RSUs will be made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Change in Control</u>. Upon a Change in Control, and if no Replacement Award is granted, the Participant is entitled to receive payment for Vested RSUs in Shares on the date of the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Qualifying Termination Following Change in Control</u>. With respect to Replacement Awards, within 10 days following the Participant's Qualifying Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except to the extent permitted by Section 409A of the Code and the Committee, no Shares may be issued to the Participant at a time earlier than otherwise expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Committee may also determine to pay for Vested RSUs in cash based on the market value of the Shares on the date of settlement. The Company's obligations to the Participant with respect to the RSUs will be satisfied in full upon the issuance of Shares corresponding to such RSUs or upon a cash payment corresponding to such RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**<u>Dividend Equivalents; Other Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Participant shall have no rights of ownership in the Shares underlying the RSUs and no right to vote the Shares underlying the RSUs until the date on which the Shares underlying the RSUs are issued or transferred to the Participant pursuant to **<u>Section 5</u>** above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)From and after the Date of Grant and until the earlier of (i) the time when the RSUs become Vested and are paid in accordance with **<u>Section 5</u>** hereof or (ii) the time when the Participant's right to receive Shares in payment of the RSUs is forfeited in accordance with **<u>Section 4</u>** hereof, on the date that the Company pays a cash dividend (if any) to holders of Shares generally, the Participant shall be credited with cash per RSU equal to the amount of such dividend. Any amounts credited pursuant to the immediately preceding sentence shall be subject to the same applicable terms and conditions (including Vesting, payment and forfeitability) as apply to the RSUs in respect of which the dividend equivalents were credited, and such amounts shall be paid in cash at the same time as the RSUs to which they relate are paid in Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The obligations of the Company under this Agreement will be merely that of an unfunded and unsecured promise of the Company to deliver Shares in the future, and the rights of the Participant will be no greater than that of an unsecured general creditor. No assets of the Company will be held or set aside as security for the obligations of the Company under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**<u>Adjustments</u>**. The number of Shares issuable for each RSU and the other terms and conditions of the grant evidenced by this Agreement are subject to adjustment as provided in Section 12 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**<u>Withholding Taxes</u>**. To the extent that the Company is required to withhold federal, state, local or foreign taxes in connection with the delivery to the Participant of Shares or any other payment to the Participant or any other payment or Vesting event under this Agreement, and the amounts available to the Company for such withholding are insufficient, it shall be a condition to the obligation of the Company to make any such delivery or payment that the Participant make arrangements satisfactory to the Company for payment of the balance of such taxes required to be withheld. The Participant may elect that all or any part of such withholding requirement be satisfied by retention by the Company of a portion of the Shares to be delivered to the Participant or by delivering to the Company other Shares held by the Participant. If such election is made, the Shares so retained shall be credited against such withholding requirement at the market value of such Shares on the date of such delivery. In no event will the market value of the Shares to be withheld and/or delivered pursuant to this **<u>Section 8</u>** to satisfy applicable withholding taxes exceed the minimum amount of taxes required to be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**<u>Compliance With Law</u>**. The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; <u>provided</u>, <u>however</u>, notwithstanding any other provision of the Plan and this Agreement, the Company shall not be obligated to issue any Shares pursuant to this Agreement if the issuance thereof would result in a violation of any such law. Notwithstanding any other provision of the Plan and this Agreement, the Company shall not be obligated to issue Shares or make any payments pursuant to this Agreement if the issuance or payment thereof could impair the Company's status as a REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.**<u>Compliance With Section 409A of the Code</u>**. To the extent applicable, it is intended that this Agreement and the Plan comply with or be exempt from the provisions of Section 409A of the Code. This Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause this Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force or effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Company without the consent of the Participant). Any reference in this Agreement to Section 409A of the Code will also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.**<u>No Right to Future Awards or Employment</u>**. The grant of the RSUs under this Agreement to the Participant is a voluntary, discretionary award being made on a one-time basis, and it does not constitute a commitment to make any future awards. The grant of the RSUs and any payments made hereunder will not be considered salary or other compensation for purposes

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of any severance pay or similar allowance, except as otherwise required by law. Nothing contained in this Agreement shall confer upon the Participant any right to be employed or remain employed by any Company Group Member, nor limit or affect in any manner the right of any Company Group Member to terminate the employment or adjust the compensation of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.**<u>Relation to Other Benefits</u>**. Any economic or other benefit to the Participant under this Agreement or the Plan shall not be taken into account in determining any benefits to which the Participant may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by the Company Group and shall not affect the amount of any life insurance coverage in respect of the Participant under any life insurance plan covering employees of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.**<u>Amendments</u>**. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; <u>provided</u>, <u>however</u>, that (a) no amendment shall adversely affect the rights of the Participant under this Agreement without the Participant's written consent, and (b) the Participant's consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code or Section 10D of the Exchange Act or to prevent impairment of the Company's status as a REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.**<u>Severability</u>**. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.**<u>Relation to Plan</u>**. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern. The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein or in the Plan, have the right to determine any questions which arise in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.**<u>Clawback</u>**. Any award granted under this Agreement shall be subject to any clawback or recoupment policy currently in effect or as may be adopted by the Company, in each case, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.**<u>Electronic Delivery</u>**. The Company may, in its sole discretion, deliver any documents related to the RSUs and the Participant's participation in the Plan, or future awards that may be granted under the Plan, by electronic means or request the Participant's consent to participate in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.**<u>Governing Law</u>**. This Agreement shall be governed by and construed in accordance with the internal substantive laws of the state of incorporation or formation of the Company, without giving effect to any principle of law that would result in the application of the law of any other jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.**<u>Successors and Assigns</u>**. Without limiting **<u>Section 3</u>** hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Participant, and the successors and assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.**<u>Acknowledgement</u>**. The Participant acknowledges that the Participant (a) has received a copy of the Plan, (b) has had an opportunity to review the terms of this Agreement and the Plan, (c) understands the terms and conditions of this Agreement and the Plan and (d) agrees to such terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.**<u>Counterparts</u>**. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same agreement.

**[SIGNATURES ON FOLLOWING PAGE]**

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**NEXPOINT RESIDENTIAL TRUST, INC.**

By:

Name: [___]<br>Title: [____]

**Participant Acknowledgment and Acceptance** 

By:

Name:

[Signature Page to NXRT RSU Award Agreement]

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## Exhibit 10.3

**Exhibit 10.3**

**NEXPOINT RESIDENTIAL TRUST, INC.**

**<u>Form of Restricted Shares Units Agreement (Director)</u>**

This RESTRICTED SHARES UNITS AGREEMENT (this "<u>Agreement</u>") is made as of _______, 20__, by and between NexPoint Residential Trust, Inc., a Maryland corporation (the "<u>Company</u>"), and [•] (the "<u>Participant</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**<u>Certain Definitions</u>**. Capitalized terms used, but not otherwise defined, in this Agreement will have the meanings given to such terms in the Company's 2025 Long Term Incentive Plan (the "<u>Plan</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**<u>Grant of RSUs</u>**. Subject to and upon the terms, conditions and restrictions set forth in this Agreement and in the Plan, the Company has granted to the Participant as of ______, 20__ (the "<u>Date of Grant</u>") [•] Restricted Shares Units ("<u>RSUs</u>"). Each RSU shall represent the right of the Participant to receive one Share subject to and upon the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**<u>Restrictions on Transfer of RSUs</u>**. Subject to Section 16 of the Plan, neither the RSUs evidenced hereby nor any interest therein or in the Shares underlying such RSUs shall be transferable prior to payment to the Participant pursuant to <u>Section 5</u> hereof other than (i) by transfer by the Participant for no consideration to Immediate Family Members or to a bona fide trust, partnership or other entity controlled by and for the benefit of one or more Immediate Family Members, or (ii) by will or pursuant to the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**<u>Vesting of RSUs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>General</u>. The RSUs covered by this Agreement shall become nonforfeitable and payable to the Participant pursuant to <u>Section 5</u> hereof ("<u>Vest</u>," or similar terms) on the first anniversary of the Date of Grant, conditioned upon the Participant's Continuous Service on the Board through such date (the period from the Date of Grant until the first anniversary of the Date of Grant, the "<u>Vesting Period</u>"). Any RSUs that do not so Vest will be forfeited, including, except as provided in <u>Section 4(b)</u> or <u>Section 4(c)</u> below, if the Participant ceases to be in Continuous Service prior to the end of the Vesting Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Vesting due to Death or Disability</u>. Notwithstanding <u>Section 4(a)</u> above, the RSUs shall Vest (to the extent the RSUs have not previously become Vested or been forfeited) prior to the end of the Vesting Period upon the date of Participant's termination of Continuous Service due to the Participant's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Treatment on a Change in Control</u>. Notwithstanding <u>Section 4(a)</u> above, in the event of a Change in Control that occurs prior to the end of the Vesting Period and provided that the Participant is still in Continuous Service on the date of the Change in Control, the RSUs shall Vest (to the extent the RSUs have not previously become Vested or been forfeited) on the date of the Change in Control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**<u>Form and Time of Payment of RSUs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Payment for the RSUs, after and to the extent they have become Vested, shall be made in the form of Shares. Payment shall be made as soon as administratively practicable following (but no later than thirty (30) days following) the date that the RSUs become Vested pursuant to <u>Section 4(a)</u>, <u>4(b)</u> and <u>4(c)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except to the extent permitted by Section 409A of the Code and the Committee, no Shares may be issued to the Participant at a time earlier than otherwise expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Committee may also determine to pay for Vested RSUs in cash based on the market value of the Shares on the date of settlement. The Company's obligations to the Participant with respect to the RSUs will be satisfied in full upon the issuance of Shares corresponding to such RSUs or upon a cash payment corresponding to such RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**<u>Dividend Equivalents; Other Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Participant shall have no rights of ownership in the Shares underlying the RSUs and no right to vote the Shares underlying the RSUs until the date on which the Shares underlying the RSUs are issued or transferred to the Participant pursuant to <u>Section 5</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)From and after the Date of Grant and until the earlier of (i) the time when the RSUs become Vested and are paid in accordance with <u>Section 5</u> hereof or (ii) the time when the Participant's right to receive Shares in payment of the RSUs is forfeited in accordance with <u>Section 4</u> hereof, on the date that the Company pays a cash dividend (if any) to holders of Shares generally, the Participant shall be credited with cash per RSU equal to the amount of such dividend. Any amounts credited pursuant to the immediately preceding sentence shall be subject to the same applicable terms and conditions (including Vesting, payment and forfeitability) as apply to the RSUs in respect of which the dividend equivalents were credited, and such amounts shall be paid in cash at the same time as the RSUs to which they relate are paid in Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The obligations of the Company under this Agreement will be merely that of an unfunded and unsecured promise of the Company to deliver Shares in the future, and the rights of the Participant will be no greater than that of an unsecured general creditor. No assets of the Company will be held or set aside as security for the obligations of the Company under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**<u>Adjustments</u>**. The number of Shares issuable for each RSU and the other terms and conditions of the grant evidenced by this Agreement are subject to adjustment as provided in Section 12 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**<u>Taxes</u>**. The Participant will be solely responsible for the payment of all taxes that arise with respect to the granting and payment of the RSUs, including the payment of any Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**<u>Compliance With Law</u>**. The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; <u>provided</u>, <u>however</u>, notwithstanding any other provision of the Plan and this Agreement, the Company shall not be obligated to issue any Shares pursuant to this Agreement if the issuance thereof would result in a violation of any such law. Notwithstanding any other provision of the Plan and this Agreement, the Company shall not be obligated to issue Shares or make any payments pursuant to this Agreement if the issuance or payment thereof could impair the Company's status as a REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.**<u>Compliance With Section 409A of the Code</u>**. To the extent applicable, it is intended that this Agreement and the Plan comply with or be exempt from the provisions of Section 409A of the Code. This Agreement and the Plan shall be administered in a manner consistent with this intent, and any provision that would cause this Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force or effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Company without the consent of the Participant). Any reference in this Agreement to Section 409A of the Code will also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.**<u>No Right to Future Awards or Board Membership</u>**. The grant of the RSUs under this Agreement to the Participant is a voluntary, discretionary award being made on a one-time basis, and it does not constitute a commitment to make any future awards. Nothing contained in this Agreement shall confer upon the Participant any right to continued service as a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.**<u>Amendments</u>**. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; <u>provided</u>, <u>however</u>, that (a) no amendment shall adversely affect the rights of the Participant under this Agreement without the Participant's written consent, and (b) the Participant's consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with Section 409A of the Code or Section 10D of the Exchange Act or to prevent impairment of the Company's status as a REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.**<u>Severability</u>**. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.**<u>Relation to Plan</u>**. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan,

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the Plan shall govern. The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein or in the Plan, have the right to determine any questions which arise in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.**<u>Clawback</u>**. Any award granted under this Agreement shall be subject to any clawback or recoupment policy currently in effect or as may be adopted by the Company, in each case, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.**<u>Electronic Delivery</u>**. The Company may, in its sole discretion, deliver any documents related to the RSUs and the Participant's participation in the Plan, or future awards that may be granted under the Plan, by electronic means or request the Participant's consent to participate in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.**<u>Governing Law</u>**. This Agreement shall be governed by and construed in accordance with the internal substantive laws of the state of incorporation or formation of the Company, without giving effect to any principle of law that would result in the application of the law of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.**<u>Successors and Assigns</u>**. Without limiting <u>Section 3</u> hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Participant, and the successors and assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.**<u>Acknowledgement</u>**. The Participant acknowledges that the Participant (a) has received a copy of the Plan, (b) has had an opportunity to review the terms of this Agreement and the Plan, (c) understands the terms and conditions of this Agreement and the Plan and (d) agrees to such terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.**<u>Counterparts</u>**. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same agreement.

**[SIGNATURES ON FOLLOWING PAGE]**

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**NEXPOINT RESIDENTIAL TRUST, INC.**

By:

Name: [___]<br>Title: [_____]

**Participant Acknowledgment and Acceptance** 

By:

Name:

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, James Dondero, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NexPoint Residential Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2025

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| |
|:---|
| &nbsp;&nbsp;/s/ James Dondero |
| &nbsp;&nbsp;James Dondero |
| &nbsp;&nbsp;President |
| &nbsp;&nbsp;(Principal Executive Officer) |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Paul Richards, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NexPoint Residential Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2025

---

| |
|:---|
| &nbsp;&nbsp;/s/ Paul Richards |
| &nbsp;&nbsp;Paul Richards |
| &nbsp;&nbsp;Chief Financial Officer, Executive VP-Finance, Treasurer and Assistant Secretary |
| &nbsp;&nbsp;(Principal Financial Officer) |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO SECTION 906 OF** 

**THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report on Form 10-Q of NexPoint Residential Trust, Inc. (the "Company") for the period ending June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, James Dondero, President of the Company, and Paul Richards, Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: July 30, 2025 | /s/ James Dondero |
|  | James Dondero<br>President<br>*(Principal Executive Officer)* |
| Dated: July 30, 2025 | /s/ Paul Richards |
|  | Paul Richards<br>Chief Financial Officer, Executive VP-Finance, Treasurer and Assistant Secretary<br>*(Principal Financial Officer)* |

---

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