DALLAS, March 31, 2020 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NXRT) - Get Report previously announced that during the last two quarters, it issued 918,614 shares under the Company's ATM program at an average price of $49.12 per share for gross proceeds of $45.12 million. Also, the Company announced today it has repurchased approximately 1.5 million shares of NXRT at an average price of $27.48 per share since the Company announced its updated share repurchase program on March 13, 2020. NXRT's repurchases included shares subject to the Highland Capital Management, L.P. ("HCM") bankruptcy proceedings and shares that may be deemed to be beneficially owned by James Dondero, NXRT's Chairman of the Board and President. The repurchases also included shares that were sold at the direction of financial counterparties in accounts subject to margin calls amid the recent unprecedented market dislocation. The Company believes sales of NXRT shares by insiders are now complete and no further dispositions of NXRT shares by insiders are contemplated for the remainder of the year.
Dispositions of the Company's shares have been reported, as applicable, on SEC Form 4 filings. In addition to the disposition of shares subject to the HCM bankruptcy proceedings, Mr. Dondero's March 31, 2020 Form 4 reports that going forward Mr. Dondero's Section 16 filings will no longer include shares controlled by HCM that were previously deemed to be beneficially owned by Mr. Dondero.
As previously announced, the Company has sold three properties in 2020, for net proceeds of $43 million, which equates to an estimated blended nominal cap rate of 5.0%. Management believes that the capital allocation decisions made in 2020 have strengthened the Company's financial position by creating permanent value by issuing shares at an approximately 8.0% premium to our NAV as of December 31, 2019, and by repurchasing shares at an approximately 45% discount to where the Company issued shares under the ATM four weeks prior.
The Company's strong liquidity position, which has been bolstered by the sale of three assets at pre-crisis pricing and the issuance of equity near an all-time high share price, gives the Company ample liquidity to fund share repurchases at highly accretive levels and remain prepared to weather the COVID-19 crisis.
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "expect," "believe," "intend," "prepared" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding future dispositions of shares of Company common stock by insiders and the Company's liquidity position going forward. Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including risks related to the HCM bankruptcy proceedings and the COVID-19 crisis. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the Company's 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 statement. 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 press release.
Contact: Jackie Graham Investor Relations 972-628-4024 JGraham@nexpointadvisors.com
Media Inquiries MediaRelations@nexpointadvisors.com
SOURCE NexPoint Residential Trust, Inc.