NEXPOINT RESIDENTIAL TRUST, INC. (NYSE:NXRT) Files An 8-K Completion of Acquisition or Disposition of Assets
Item2.01.
|
Completion of Acquisition or Disposition of Assets. |
On December29, 2016, NexPoint Residential Trust, Inc. (the
Company), through its operating partnership, NexPoint Residential
Trust Operating Partnership, L.P., acquired a two-property
portfolio in Houston, Texas for approximately $108 million. The
properties, Old Farm Apartment Homes, a 734-unit apartment
property built in 1998, and Stone Creek at Old Farm Apartments, a
190-unit apartment property built in 1999 (collectively, the H2
Portfolio), are situated on 35.1 acres of contiguous land.
The H2 Portfolio acquisition was structured as a reverse 1031
exchange to facilitate the Companys continued plan to recycle
capital from dispositions of assets from non-core markets into
well-located, covered-land assets in longer-term target markets.
The Company funded the purchase price with borrowings of
approximately $108 million under its credit facilities with
KeyBank National Association and the Federal Home Loan Mortgage
Corporation (Freddie Mac). In connection with the acquisition, on
December29, 2016, the Company expanded its credit facility with
Freddie Mac, originally entered into on June6, 2016, to $300.0
million under the previously disclosed terms of the credit
agreement. Following the completion of the reverse 1031
exchanges, management expects the H2 Portfolios loan-to-value
ratio to stabilize at approximately 55%.
Item2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item2.01 of this Current Report
is incorporated into this Item2.03 by this reference.
Item9.01. |
Financial Statements and Exhibits. |
(a) Financial Statements. The financial information
relating to the H2 Portfolio required under Rule3-14 of
Regulation S-X will be filed by an amendment to this report no
later than March17, 2017, which is 71 calendar days from the date
that this report must be filed.
(b) Pro Forma Financial Information. The pro forma
financial information required under Article 11 of Regulation S-X
will be filed by an amendment to this report no later than
March17, 2017, which is 71 calendar days from the date that this
report must be filed.
(d) Exhibits. None.
Cautionary Notice Regarding Forward-Looking
Statements
This report contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are based on managements current expectations, assumptions
and beliefs. Forward-looking statements can often be identified
by words such as expect, intend and similar expressions, and
variations or negatives of these words. These forward-looking
statements include, but are not limited to, statements regarding
expected loan-to-value ratio and dispositions of properties. They
are not guarantees of future results and are subject to risks,
uncertainties, assumptions and anticipated sales of properties
that could cause actual results to differ materially from those
expressed in any forward-looking statement. Readers should not
place undue reliance on any forward-looking statements and are
encouraged to review the Companys Annual Report on Form 10-K for
the year ended December31, 2015 and the Companys other filings
with the Securities and Exchange Commission for a more complete
discussion of the risks and other factors that could affect any
forward-looking statements. Except as required by law, the
Company does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, changing circumstances or any other
reason after the date of this report.
About NEXPOINT RESIDENTIAL TRUST, INC. (NYSE:NXRT)
NexPoint Residential Trust, Inc. is an externally managed real estate investment trust (REIT). The Company is focused on multifamily investments primarily located in the Southeastern and Southwestern United States. All of the Company’s business operations are conducted through NexPoint Residential Trust Operating Partnership, L.P. (the Operating Partnership). The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a capex value-add program. The Company owns approximately 40 properties representing over 13,155 units in over eight states. The Company’s properties include The Miramar Apartments, Arbors on Forest Ridge, Cutter’s Point, Eagle Crest, Meridian, Silverbrook, Timberglen, Toscana, The Grove at Alban, McMillan Place and Dana Point. NEXPOINT RESIDENTIAL TRUST, INC. (NYSE:NXRT) Recent Trading Information
NEXPOINT RESIDENTIAL TRUST, INC. (NYSE:NXRT) closed its last trading session 00.00 at 22.41 with 189,259 shares trading hands.