The company’s portfolio, which spans 13,305 units across 36 properties, maintained a physical occupancy rate of 93.5% as of June 30, 2026. While net losses widened from $7.0 million in the second quarter of 2025, the firm remains focused on its value-add strategy. During the quarter, NexPoint completed 459 unit upgrades, yielding an average monthly rent premium of $90.60 and a 23% return on investment.
A significant development in the company's capital deployment strategy was the June 5 funding of the $22.1 million Waterford Loan. This fixed-rate term loan, bearing 10% interest, financed a 240-unit multifamily property in the Greensboro–High Point area of North Carolina. This transaction marks the first deployment under NexPoint’s new DST bridge-lending initiative, designed to capture spreads between the loan’s fixed yield and the company's borrowing costs.
Financial performance metrics for the quarter showed Core FFO at $16.9 million, down from $18.0 million in the prior-year period. Despite the earnings pressure, the company declared a second-quarter dividend of $0.53 per share, paid on June 30. Looking ahead, management remains committed to the value-add program that has historically driven rental increases through kitchen, laundry, and technology upgrades across its apartment portfolio.
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