NexPoint Residential Trust, Inc NXRT

Competitive advantage analysis · real-estate

REIT Specialized
Overall moat score
25/100
Weak

About NexPoint Residential Trust, Inc

NexPoint Residential Trust is a publicly traded real estate investment trust, with its shares listed on the New York Stock Exchange. It primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with value-add potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real … Full NXRT analysis →

Competitive advantage assessment

Key risks

  • Elevated Leverage Risk Leverage is elevated (score 0.08), raising refinancing risk.
  • Weak NOI Margins NOI margins lag peers (score 0.21), indicating weak pricing power.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Rent Pricing Power

Weak
21

Where NXRT ranks in REIT - Residential

NexPoint Residential Trust, Inc ranks #18 of 21 scored companies in REIT - Residential by moat score — the top 86%. The widest moat in the group is Millrose Properties, Inc. (MRP) at 97/100.

Moat scores for companies ranked near NXRT in REIT - Residential
# Company Moat score Rating
13 Elme Communities ELME 40/100 Developing
14 Veris Residential, Inc. VRE 39/100 Developing
15 Independence Realty Trust, Inc. IRT 37/100 Developing
16 D/B/A Centerspace CSR 36/100 Developing
17 Clipper Realty Inc. CLPR 33/100 Developing
18 NexPoint Residential Trust, Inc NXRT 25/100 Weak
19 Apartment Investment and Manage AIV 20/100 Weak
20 BRT Apartments Corp. (MD) BRT 17/100 Weak
21 Bluerock Homes Trust, Inc. BHM 13/100 Weak

See every Real Estate Investment Trusts company ranked by moat score →

How NXRT scores on the REIT Specialized defenses

Rent Pricing Power

Score 21 · 20% of the moat score

For a REIT, pricing power is the ability to raise rents at renewal and still keep the space occupied.

AFFO Strength

Score 39 · 18% of the moat score

AFFO — adjusted funds from operations — is the cash a REIT can actually distribute after the recurring capital spending buildings need in order to stay leasable.

Balance Sheet & Cost of Capital

Score 15 · 20% of the moat score

Real estate is bought with borrowed money, so a REIT's cost of capital is its competitive advantage.

Capital Recycling & Growth

Score 29 · 16% of the moat score

REITs grow by issuing shares and debt to buy more property, which creates value only when the yield on the asset exceeds the cost of the capital raised.

Operational Efficiency

Score 25 · 14% of the moat score

Running property — leasing, maintenance, taxes, management — is the part of the business a REIT genuinely controls.

Portfolio Quality & Diversification

Score 22 · 12% of the moat score

Portfolio quality is really a question about what happens when a tenant fails.

How each REIT Specialized defense is measured, in full →

Understanding NXRT's moat

What is NexPoint Residential Trust, Inc's moat score?

NexPoint Residential Trust, Inc (NXRT) scores 25 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #18 of 21 scored companies in REIT - Residential, the top 86%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 24 companies in REIT - Residential. Its strongest defense is AFFO Strength (39/100) and its weakest is Balance Sheet & Cost of Capital (15/100).

How does NexPoint Residential Trust, Inc compare with other REIT - Residential companies?

NexPoint Residential Trust, Inc ranks #18 of 21 scored companies in REIT - Residential by moat score. The widest moat in REIT - Residential is Millrose Properties, Inc. (MRP) at 97/100. The companies ranked closest are Clipper Realty Inc. (CLPR) at 33 just above it and Apartment Investment and Manage (AIV) at 20 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — REIT Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 24 companies in REIT - Residential. The defenses are then weighted to produce the overall score out of 100.

Why is NexPoint Residential Trust, Inc scored with the REIT Specialized template?

A REIT is a portfolio of buildings financed with debt and required to distribute most of its taxable income. Reported earnings are dominated by depreciation on assets that often appreciate, so net income says very little; the real question is how much cash the properties distribute, and how securely. The REIT template scores what determines that: rent pricing, distributable cash, cost of capital, and the discipline behind growth.

Which competitive defenses are measured for NexPoint Residential Trust, Inc?

The REIT Specialized template measures 6 defenses, and NXRT scores: Rent Pricing Power (21), AFFO Strength (39), Balance Sheet & Cost of Capital (15), Capital Recycling & Growth (29), Operational Efficiency (25), Portfolio Quality & Diversification (22). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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