NexPoint Residential Trust, Inc. announced on October 3, 2024, the closing of 17-property mortgage refinancings through J.P. Morgan Chase Bank and Freddie Mac. These refinancings, along with 17 additional agreements expected to close on November 29, 2024, will total $1.466 billion, representing approximately 97.7% of the company's total outstanding debt.
This strategic financial move is expected to reduce NXRT's weighted average interest rate on total debt by 48 basis points to 6.21% before interest rate swap contracts, and from 3.64% to 3.16% after accounting for hedging. The refinancing also extends the weighted average debt maturity schedule to approximately 7.0 years from 5.69 years, with no meaningful maturities until 2028.
Concurrently, NXRT completed the sale of Stone Creek at Old Farm, a 190-unit property in Houston, TX, acquired for $23.3 million in December 2016. The sale generated approximately $23.7 million in net proceeds, delivering a 2.19x multiple on invested capital and completing the company's stated goal of exiting the Houston market.
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