[Management View]
Net loss for Q3 2025 was $7.8 million, or $0.31 per diluted share, compared to a net loss of $8.9 million, or $0.35 per diluted share, in Q3 2024. Total revenue was $62.8 million, down from $64.1 million in the same period last year. NOI for 2025 was $38.8 million on 35 properties, compared to $38.1 million for 2024 on 36 properties. Core FFO was $17.7 million, or $0.70 per diluted share, compared to $0.59 per diluted share in Q3 2024. The company completed 365 upgrades and leased 297 upgraded units, achieving an average $72 monthly rent premium and a 20.1% return on investment.

[Outlook]
NexPoint reaffirmed its guidance for the full year 2025, with a midpoint net loss per diluted share of negative $1.31 and core FFO per diluted share of $2.75. The company expects declining new multifamily supply deliveries in 2026 and 2027, with 2025 net deliveries forecast at 508,000 units, then falling 49% in 2026 and a further 20% in 2027. NexPoint plans to prioritize stock buybacks and complete the North Las Vegas acquisition, utilizing tax-efficient 1031 reverse exchanges for capital recycling.

[Financial Performance]
- Net loss: $7.8 million, or $0.31 per diluted share (Q3 2025) vs. $8.9 million, or $0.35 per diluted share (Q3 2024)
- Total revenue: $62.8 million (Q3 2025) vs. $64.1 million (Q3 2024)
- NOI: $38.8 million on 35 properties (2025) vs. $38.1 million on 36 properties (2024)
- Core FFO: $17.7 million, or $0.70 per diluted share (Q3 2025) vs. $0.59 per diluted share (Q3 2024)

[Q&A Highlights]
Question 1: On the operating expense side, again, things look like they're going really well. Could you just talk a little bit about whether that is going to be sustainable on a going forward basis? And I just ask that in the context of full year guidance where the midpoint of guidance suggests that FFO in the fourth quarter is $0.61 versus your current $0.70 run rate, which is being helped by better than expected expense control.
Answer: We think that we'll have continued improvement in sustainability on the non-controllable side with insurance. We also feel good about the real estate tax protests that are going on and see potential upside in that number. On the payroll and R&M side, we don't see anything changing materially and expect that to be consistent as well. We are cautiously optimistic that we'll exceed expectations as usual. The total one-time benefit in Q3 was about $808,120.

Question 2: Your self-disclosed NAV, again, you guys whether you're at the low end or the high end, depending on the cap rate you're using, the stock has been persistently trading at kind of a huge discount to NAV. How do you kind of think about what next for NXRT and how you try to create shareholder value if you just kind of get assigned a perpetual large discount to NAV?
Answer: We view the company as a growth company but also set up to transact. Our goal is to hit $170 million of NOI by 2027. We believe that if the discount isn't closed, then we'll close it. We own 16.5% of the company and are highly aligned to do so. We think the portfolio is hard to replace and scale, and we believe that the public markets will change dramatically in 2026 as new lease pricing influx. If not, there's a terminal value and a bid for the company.

Question 3: Did you guys give out the splits on new lease rates, renewals, and the blend for the quarter?
Answer: New leases for the quarter were down 4.06% or $58. Renewals were up 1.94% or $29, almost $30. That's a blended negative 44 basis points. October is trending the same way, with new leases down 3.78% or $54, and renewals up about 70 basis points or $10, for a blended down 1%.

Question 4: On the CapEx, both recurring and nonrecurring, it added to about $9 million in the quarter. Do you see that starting to taper off anytime soon?
Answer: It's a little bit elevated because we haven't been able to recycle as much of the portfolio as we typically do. We are focused more on average $4,000 upgrades, getting a $70 premium. The large refinancing with Freddie Mac dictated some larger nonrecurring CapEx spends. We expect these to moderate going into next year.

Question 5: Why go after a new asset in Vegas at this point when you could buy the existing portfolio probably at an equal or better combined NOI yield and growth rate going forward?
Answer: We don't think they're mutually exclusive. We can do both. We need to show some external growth in terms of capital recycling. The Vegas asset is going in almost a six cap that we believe we can drive to a seven and a half or an eight cap over the course of our three-year value-add campaign. This is a precision-based investment and does not cannibalize our stock buyback program.

[Sentiment Analysis]
Analysts were generally positive, appreciating the company's expense control and strategic capital recycling initiatives. Management maintained a confident and optimistic tone, emphasizing their commitment to shareholder value and long-term growth targets.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|------------------|------------------|
| Net Loss | $7.8 million | $8.9 million |
| Net Loss per Share | $0.31 | $0.35 |
| Total Revenue | $62.8 million | $64.1 million |
| NOI | $38.8 million | $38.1 million |
| Core FFO per Share | $0.70 | $0.59 |

[Risks and Concerns]
- Competitive pressure on new lease pricing
- Potential for continued high maintenance CapEx
- Market volatility affecting NAV discount
- Execution risks in capital recycling and acquisitions

[Final Takeaway]
NexPoint demonstrated strong expense control and strategic capital recycling in Q3 2025, leading to improved core FFO per share. The company remains focused on long-term growth targets, including achieving $170 million of NOI by 2027. While facing competitive pressures on new lease pricing, NexPoint's disciplined approach to capital recycling and stock buybacks positions it well for future growth. Management's confidence in their strategy and market outlook suggests a positive trajectory heading into 2026.