NexPoint Residential Trust, Inc. (NXRT) Cash Flow Statement

The payout ratio has frequently sat between 0.77 and 0.90 when AFFO is reported, which implies modest retained cash in good periods. The 2025Q4 reading above 1.0 suggests the dividend was not covered by AFFO that quarter, which investors should monitor for whether it reflects timing or a structural gap. Several quarters lack AFFO data entirely, so coverage cannot be confirmed across the full ten-quarter span.

Operating cash flow has been strongest in quarters with higher FFO, but the relationship breaks down sharply, with 2025Q4 showing $6.1M of OCF against $13.3M of FFO. This divergence may reflect working capital timing or non-cash items rather than underlying earnings power. Investors should treat FFO as the more reliable earnings base only after confirming it is not distorted by one-time adjustments.

The FFO-to-net-income gap is consistent with heavy real estate depreciation, which is standard for apartment REITs and does not by itself signal impairment. However, the magnitude of the gap across most quarters means GAAP net income offers limited insight into distributable economics. The positive net income of $10.6M in 2024Q2 appears to be an outlier relative to the surrounding losses.

Because capex is reported as zero in most recent quarters, FCF is largely equal to operating cash flow, and the consistent dividend outflow of about $13M to $14M per quarter appears large relative to the 2025Q4 FCF of $6.1M. The reported data does not show how the gap is financed, so investors should review balance sheet financing activity before drawing conclusions about external funding dependence.