NexPoint Residential Trust, Inc. is a company that is in the business of leasing apartment units and residential real estate in the Southwest and Southeastern United States.
With 39 residential properties and 14,485 apartment units in 11 markets, $NXRT-0.6% is proving to be a real estate guru. They manage a diversified portfolio, with an emphasis on the Southwest and Southeast regions.
Of course, as with most REITs, the P/E is quite high at around 30.
From a financial perspective, NexPoint continues to grow. In terms of dividends, NexPoint hands out $0.46 per share and offers an interesting dividend yield of 5.28%. The dividend history and low payout ratio provide some security.
With the stock price recently falling to pandemic levels, questions about undervaluation and future growth are important. The stock price is well below analyst estimates. 🏠💼
But REITs are something to watch out for, as evidenced by today's $MPW+3.2% drop of a whopping 30% after the company announced unpaid rent from its tenant. This brings the total unpaid rent to $50 million!
What's your take on real estate REITs?
I definitely recommend looking at the debt distribution over time here. Make sure there's not a problem year, because the debt doesn't look too healthy.