The H2 Portfolio acquisition was structured as a reverse 1031 exchange to facilitate the Company's 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 Freddie Mac. In connection with the acquisition, the Company expanded its credit facility with Freddie Mac 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 Portfolio's loan-to-value ratio to stabilize at approximately 55%.
This is the Company's first acquisition in Houston since its lone purchase in Houston in November 2014 and opportunistically expands NXRT's footprint in the market to 1,164 units, bringing NXRT's total portfolio to 39 properties consisting of 12,965 units in 10 markets as of January 3, 2017.
Supplemental information on the H2 Portfolio acquisition will be included in an investor presentation that can be found in the Investor Relations section of the Company's website at www.nexpointliving.com. Our filings with the Securities and Exchange Commission are filed under the registrant name of NexPoint Residential Trust, Inc.
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 Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser. More information about NXRT is available at www.nexpointliving.com.
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," "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. 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 Company's Annual Report on Form 10-K for the year ended December 31, 2015 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 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 press release.
In this release, "we," "us," "our," the "Company," "NexPoint Residential Trust," and "NXRT" each refer to NexPoint Residential Trust, Inc., a Maryland corporation.
Financial Relations Board
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SOURCE NexPoint Residential Trust, Inc.