NexPoint Residential Trust, Inc. (NYSE:NXRT) Q1 2023 Earnings Call Transcript

Unidentified Analyst : Okay, thank you for that. And then I also had a quick question on quarter-over-quarter you saw 260 basis point drop in Charlotte occupancy. And then around 170 basis point drop in Atlanta, what drove this market?

Bonner McDermett : So in Atlanta, we had a fire at Rockledge asset so that’s a portion there. Additionally, at The Preserve at Terrell Mill in Atlanta, we’ve been having just a little bit more difficult renewal discussions, I think that we’ve moderated pricing. So those are quarter ending numbers as of 3/31, our revenue management teams working to kind of backfill demand there. Those assets in Charlotte, our Timber Creek asset, it also dealt with a casualty event, and has dealt with a little bit of waning demand. So we’ve been toggling revenue management, making sure that the pricing is dialed in to build that occupancy back up.

Operator: Your next question is Omotayo Okusanya of Credit Suisse.

Omotayo Okusanya: Yes. Just going back to a rent again for the quarter. Taken a look at new rents for some of your markets and I’ve seen in Vegas. It actually turned negative. Just kind of curious what kind of was going on in the market? Is it like a lot of new supply, is it that job growth slowing on the demand side? And kind of what made rent negative in those markets?

Matt McGraner : Yes. Hey, Tayo, it’s Matt. The Phoenix is a supply story. That we’re — there’s a quite a bit of deliveries going on in Phoenix right now. That’s a component. The other component is really tough comp, those rents last year, but really the last first half of last year where we’re seeing 15% to 25% increases. So I think that’s the story in Phoenix. Vegas is seasonality and weaker demand than we expected. There are several assets, particularly in around Bella Solara and Torreyana that are heavily, giving heavy concessions to the market. So we had to buy some occupancy on those two assets.

Operator: There are no further questions at this time. I will now turn the call over to the team for closing remarks.

Kristen Thomas: Yes, appreciate everyone’s time and questions. And feel free to reach out to us, if you have additional questions. Happy to answer them. And until then we’ll see you next quarter. Thank you.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.