NexPoint Residential Trust, Inc. announced on November 27, 2024, the completion of the second phase of its agency mortgage refinancings, closing 17 additional loan agreements. This brings the total number of refinanced loans to 34, amounting to $1.469 billion in gross proceeds.
This comprehensive refinancing represents approximately 97.8% of the company's total outstanding debt. The initiative has extended NXRT's weighted average debt maturity schedule to approximately 6.82 years from 5.54 years, with no meaningful debt maturities now occurring until 2028.
The refinancings are expected to reduce NXRT's weighted average interest rate on total debt by 48 basis points to 5.65% before interest rate swap contracts, and from 3.44% to 2.95% after accounting for hedging. This significantly strengthens the company's balance sheet and improves its financial flexibility.
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