Cash flow quality remains obscured by a persistent disconnect between GAAP operating cash flow and FFO, highlighted by an FFO/NI ratio of -3.45x in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 78.6M | 83.59M | 73.57M | 96.58M | 79.1M | 73.27M | 57.23M | 51.37M | 41.74M | 37.51M | 33.78M | 21.04M | 10.07M | 28K |
| Operating CF Growth % | -16.34% | 13.61% | -23.82% | 22.11% | 7.95% | 28.03% | 11.41% | 23.05% | 11.3% | 11.04% | 60.52% | 108.95% | 35864.29% | - |
| Operating CF / Revenue % | 31.24% | 33.27% | 28.33% | 34.8% | 29.97% | 33.42% | 27.94% | 28.37% | 28.47% | 26% | 25.42% | 17.88% | 23.34% | 8.86% |
| Net Income | -31.88M | -32.15M | 1.11M | 44.26M | -9.29M | 23.11M | 44.15M | 99.44M | -1.61M | 56.36M | 25.89M | -10.99M | -17.53M | -170K |
| Depreciation & Amortization | 95.69M | 95.75M | 97.76M | 95.19M | 97.65M | 86.88M | 82.41M | 69.09M | 47.47M | 48.75M | 35.64M | 40.8M | 21.64M | 142K |
| Stock-Based Compensation | 9.77M | 9.88M | 10.54M | 9.29M | 7.9M | 7M | 5.5M | 5.13M | 4.2M | 3.11M | 825K | 0 | 0 | 0 |
| Other Non-Cash Items | 11.37M | 10.97M | -17.48M | -52.75M | -4.34M | -15.03M | -67.04M | 13.68M | 6.72M | 1.87M | 1.1M | 2.38M | 2.71M | 19K |
| Working Capital Changes | -6.22M | -863K | -18.37M | 599K | -12.82M | -1.34M | -7.8M | -1.85M | 2.65M | 4.47M | -3.1M | -11.14M | 3.25M | 37K |
| Cash from Investing | -114.48M | -115.75M | 130.62M | 51.92M | -162.3M | -235.91M | 11.5M | -553.13M | -135.25M | 5.03M | -51.9M | -283M | -599.08M | -11.15M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.65M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -202.9M | -333.34M | 0 | -841.51M | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 36.45M | 90.24M | 0 | 286.48M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -114.48M | -115.75M | 130.62M | 51.92M | 4.14M | 7.2M | 11.5M | 1.9M | -127.59M | 227.12M | 131.79M | 326K | 0 | -2.04M |
| Cash from Financing | 29.84M | 23.42M | -195.55M | -155.02M | 46.31M | 194.32M | -82.9M | 529.82M | 95.09M | -51.84M | 10.29M | 251.1M | 647.26M | 11.31M |
| Dividends Paid | -13.12M | -53.52M | -49.3M | -44.8M | -40.64M | -35.8M | -32.3M | -28.05M | -22.27M | -19.26M | -17.78M | -13.16M | -9.95M | 0 |
| Common Dividends | -13.12M | -53.52M | -49.3M | -44.8M | -40.64M | -35.8M | -32.3M | -28.05M | -22.27M | -19.26M | -17.78M | -13.16M | -9.95M | 0 |
| Debt Issuance (Net) | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | -7.66M | -7.66M | -14.57M | -1.72M | -11.13M | 0 | -44.53M | 0 | -9.67M | -2.44M | -4.59M | 0 | 0 | 0 |
| Other Financing | -37.11M | -5.39M | -24.15M | -2.21M | -26.27M | -5.54M | -3.34M | -7.34M | 82.32M | -60.73M | -11.76M | 71.66M | 206.04M | 11.31M |
| Net Change in Cash | -6.04M | -8.74M | 8.64M | -6.52M | -36.9M | 31.68M | -14.17M | 28.05M | -119K | -12.01M | -7.83M | 3.56M | 58.25M | 11.31M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.12M |
| Cash at Beginning | 45.18M | 53.92M | 45.28M | 51.8M | 88.7M | 57.02M | 71.18M | 43.13M | 43.25M | 55.26M | 63.09M | 12.66M | 2.23M | -11.12M |
| Cash at End | 52.78M | 45.18M | 53.92M | 45.28M | 51.8M | 88.7M | 57.02M | 71.18M | 43.13M | 43.25M | 55.26M | 16.23M | 60.48M | 190K |
| Free Cash Flow | 78.6M | 83.59M | 73.57M | 96.58M | 79.1M | 73.27M | 57.23M | 51.37M | 41.74M | -184.59M | -149.91M | -262.29M | -589.01M | -9.09M |
| FCF Growth % | -4.39% | 13.61% | -23.82% | 22.11% | 7.95% | 28.03% | 11.41% | 23.05% | 122.61% | -23.13% | 42.84% | 55.47% | -6380.45% | - |
| FCF / Revenue % | 31.24% | 33.27% | 28.33% | 34.8% | 29.97% | 33.42% | 27.94% | 28.37% | 28.47% | -127.98% | -112.85% | -222.92% | -1365.02% | -2876.27% |
External management fee structure
As reported in quarterly financial statements, NXRT exhibits a persistent disconnect between GAAP operating cash flow and FFO, with FFO/NI ratios frequently turning negative, such as the -3.45x observed in 2026Q1, suggesting that non-cash items and accounting adjustments significantly obscure the underlying cash-generating capacity of the portfolio.
The extreme volatility in the FFO-to-Net Income relationship indicates that GAAP earnings are largely decoupled from the REIT's actual operational performance. Investors should monitor this divergence, as it suggests that the company's reported net losses may be masking a more complex, albeit inconsistent, cash flow reality driven by non-recurring accounting charges.
Based on the provided financial data, the absence of consistent AFFO reporting makes it difficult to assess dividend sustainability, though the sporadic dividend payments, such as the $13.1M distribution in 2025Q2, suggest that capital allocation is not strictly tethered to recurring cash flow available for distribution.
The lack of transparent AFFO figures prevents a definitive assessment of whether the dividend is covered by true free cash flow. Given the negative net margins and erratic FFO, the current dividend policy appears to rely on capital recycling or balance sheet flexibility rather than stable, recurring property-level cash flows.
According to historical filings, NXRT consistently reports GAAP net losses, such as the -$10.3M loss in 2025Q4, which are heavily distorted by non-cash depreciation charges that do not reflect the actual cash-generating potential of the company's Sunbelt multifamily assets or the efficacy of its value-add renovation program.
The persistent GAAP losses warrant further investigation into whether the depreciation schedule accurately reflects the economic life of the assets or if it is artificially depressing earnings. This distortion necessitates a focus on FFO as the primary, albeit imperfect, metric for evaluating the company's ability to sustain its operations.
As evidenced by the provided data, the company's cash flow statement fails to explicitly isolate the impact of external management fees, which may be capitalized or buried within operating expenses, potentially obscuring the true cost of the advisor's influence on the REIT's overall cash flow profile.
The external management structure introduces a layer of opacity that complicates the analysis of true free cash flow. Investors should monitor whether the advisor's fee structure incentivizes asset turnover at the expense of long-term, stable cash flow generation, as this could be a significant drag on the company's net cash position.
Quick answers to the most common questions about buying NXRT stock.
NexPoint Residential Trust, Inc. (NXRT) generated $83.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NexPoint Residential Trust, Inc. (NXRT) generated $83.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
NexPoint Residential Trust, Inc. (NXRT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NexPoint Residential Trust, Inc. (NXRT) returned $53.5M to shareholders via cash dividends and spent $7.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.