DCF Tool

NXRT

NexPoint Residential Trust Inc – Other Activities Related to Real Estate
NexPoint Residential Trust is a publicly traded REIT, 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.
Analysis Results
Intrinsic Value $44.66
Latest Price $62.29
Relative Value 39% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 0.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 0.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 41.4 39.5
2023 41.8 37.9
2024 42.1 36.5
2025 42.5 35.0
2026 42.9 33.7
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1290 million. This corresponds to a present value of 963 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 183 million. Adding in the terminal value gives a total present value of 1150 million.

There are presently 25.6 million outstanding shares, so the intrinsic value per share is 44.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 62,521,000
Current Cash 49,450,000
Current Liabilities 32,983,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,912,000
Change in NCWC 9,091,000
EBIT 18,208,000
Tax Provision 0
Depreciation and Amortization 86,878,000
Capital Expenditure -43,006,000
Unlevered Free Cash Flow 71,171,000
Current Assets 68,465,000
Current Cash 24,457,000
Current Liabilities 73,011,000
Current Debt 0
Non-Cash Working Capital (NCWC) -29,003,000
Change in NCWC -8,595,000
EBIT 13,564,000
Tax Provision 0
Depreciation and Amortization 82,411,000
Capital Expenditure -49,977,000
Unlevered Free Cash Flow 37,403,000
Current Assets 38,668,000
Current Cash 25,671,000
Current Liabilities 33,405,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,408,000
Change in NCWC -26,352,000
EBIT 14,909,000
Tax Provision 0
Depreciation and Amortization 69,086,000
Capital Expenditure -44,159,000
Unlevered Free Cash Flow 13,484,000
Current Assets 50,403,000
Current Cash 19,864,000
Current Liabilities 24,595,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,944,000
Change in NCWC 5,945,000
EBIT 16,792,000
Tax Provision 0
Depreciation and Amortization 47,470,000
Capital Expenditure -28,481,000
Unlevered Free Cash Flow 41,726,000
Current Assets 37,007,000
Current Cash 16,036,000
Current Liabilities 20,972,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,000
Change in NCWC -1,309,000
EBIT 13,289,000
Tax Provision 0
Depreciation and Amortization 48,752,000
Capital Expenditure -24,443,000
Unlevered Free Cash Flow 36,289,000
Current Assets 39,804,000
Current Cash 22,705,000
Current Liabilities 15,791,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,308,000
Change in NCWC 13,218,000
EBIT 21,845,000
Tax Provision 0
Depreciation and Amortization 35,643,000
Capital Expenditure -24,344,000
Unlevered Free Cash Flow 46,362,000

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