NexPoint Residential Trust, Inc. (NYSE:NXRT) reported significant changes in its executive team, according to a recent SEC filing. Brian Mitts, who has served as the Chief Financial Officer, Executive VP-Finance, Secretary, and Treasurer, will step down from his executive roles effective 11:59 p.m. Central Time on December 31, 2024, while retaining his position on the Board of Directors.
Concurrently, the company has appointed Paul Richards as the new Chief Financial Officer, Executive VP-Finance, Treasurer, and Assistant Secretary, effective 12:00 a.m. Central Time on January 1, 2025. Mr. Richards, 36, brings experience from his current roles within NexPoint Real Estate Advisors and other related entities.
David Willmore has been named the new Chief Accounting Officer, Assistant Treasurer, and Assistant Secretary, effective at the same time as Mr. Richards. Mr. Willmore, 39, has been with the company since 2020 and has a background in accounting and financial reporting.
The filing detailed a separation agreement with Mr. Mitts, outlining two separation payments totaling $400,000, COBRA premium subsidies for a year, and amendments to his restricted stock units' vesting conditions. The agreement includes non-disparagement provisions and a mutual release of claims.
The changes come as part of the company's ongoing management restructuring. NexPoint Residential Trust, Inc., based in Dallas, Texas, operates within the real estate investment trusts industry. This report is based on the company's SEC filing and no further details have been disclosed at this time.
In other recent news, NexPoint Residential Trust Inc. (NXRT) reported a net loss of $8.9 million in their Q3 2024 earnings call, in contrast to the net income of $33.7 million in the same quarter of the previous year. Despite a decrease in same-store rent and net operating income, the company highlighted an improvement in occupancy rates and an increase in the quarterly dividend. NXRT also refinanced $1.67 billion of debt, extending the weighted average maturity to approximately seven years. These recent developments have led the company to remain optimistic about its future growth.
Michael Lewis (JO:LEWJ) from Truist Securities queried about the increase in core FFO guidance, which Matt McGraner attributed to a definitional change and the positive impact of the refinancing. With a strategic focus on refinancing and an optimistic outlook on market conditions, NXRT is positioning itself for potential growth.
InvestingPro Insights
As NexPoint Residential Trust, Inc. (NYSE:NXRT) undergoes significant changes in its executive team, it's worth examining some key financial metrics and insights from InvestingPro to provide context for investors.
Despite the management shake-up, NXRT has demonstrated strong financial performance. According to InvestingPro data, the company's stock has shown impressive returns, with a 56.01% total return over the past year and a 31.46% return in the last six months. This positive momentum is further supported by the fact that NXRT is trading near its 52-week high, at 93.22% of that peak.
InvestingPro Tips highlight that NXRT has raised its dividend for 10 consecutive years, which may be reassuring for income-focused investors during this transition period. The current dividend yield stands at 4.43%, with a notable dividend growth of 21.43% over the last twelve months.
It's also worth noting that management has been aggressively buying back shares, which could signal confidence in the company's future prospects despite the leadership changes. This, combined with the company's profitability over the last twelve months and analysts' predictions of continued profitability this year, suggests a potentially stable foundation as the new executive team takes the helm.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for NXRT, providing a deeper understanding of the company's financial health and market position.
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