NexPoint Residential Trust, Inc. announced the closing of the sale of Old Farm in Houston, TX, a 734-unit property built in 1996. The property was acquired for $84.7 million on December 29, 2016 and has provided consistent operational and cash flow performance for the portfolio for the last 7+ years. As of March 1, 2024, the property was 91.41% leased with a weighted average effective monthly rent of approximately $1,307.

Net proceeds from the sale were approximately $49.4M, delivering a trailing nominal tax and insurance adjusted cap rate of 5.36%, a 22.14% levered internal rate of return and a 2.98x multiple on invested capital, each of which well exceeded expectations. The Company will use a portion of the net proceeds from the sale to make a $24 million paydown on the Company's corporate credit facility on March 5, 2024, continuing the Company's strategic de-leveraging and balance sheet improvement initiatives. This repayment will take the drawn balance on the facility to $0, leaving $350 million of undrawn and available capacity.