NexPoint Residential Trust has sold Old Farm in Houston and Silverbrook in Dallas to institutional investors. The two properties should generate approximately $67 million to $69 million of net sales proceeds. Multifamily Dive reports in the process, the REIT will reduce portfolio-level debt by approximately $156 million. 

Investment analyst Robert Stevenson from Janney Montgomery Scott says the sales are a positive for NexPoint, ” “Reducing expensive floating rate debt is a positive, as NexPoint has been the worst performing apartment REIT year to date primarily due to its balance sheet.”

At a recent earnings call, NexPoints CIO Matt McGraner noted that NexPoint began to chip away at its balance sheet issues in November 2022, when it refinanced 22 properties and lowered its weighted average floating rate spreads while pushing out maturities seven plus years. He added all disposition proceeds should be used to reduce expensive debt and repurchase common stock.