10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-36663

NexPoint Residential Trust, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	47-1881359
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

300 Crescent Court, Suite 700, Dallas, Texas (Address of Principal Executive Offices)	75201
	(Zip Code)

(214) 276-6300

(Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	NXRT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of August 2, 2022, the registrant had 25,647,942 shares of its common stock, par value $0.01 per share, outstanding.

NEXPOINT RESIDENTIAL TRUST, INC.

Form 10-Q

Quarter Ended June 30, 2022

INDEX

			Page
Cautionary Statement Regarding Forward-Looking Statements			ii
	PART I—FINANCIAL INFORMATION
Item 1.		Financial Statements
		Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021	1
		Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2022 and 2021	2
		Consolidated Unaudited Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2022 and 2021	3
		Consolidated Unaudited Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	5
		Notes to Consolidated Unaudited Financial Statements	7
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.		Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.		Controls and Procedures	50
	PART II—OTHER INFORMATION
Item 1.		Legal Proceedings	51
Item 1A.		Risk Factors	51
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.		Defaults Upon Senior Securities	51
Item 4.		Mine Safety Disclosures	51
Item 5.		Other Information	51
Item 6.		Exhibits	52
Signatures			53

i

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to our liquidity and capital resources, the performance of our properties and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including market conditions and demographics) are forward-looking statements. We caution investors that any forward-looking statements presented in this quarterly report are based on management’s current beliefs and assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements.

Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

• unfavorable changes in market and economic conditions in the United States and globally and in the specific markets where our properties are located;

• risks associated with the current COVID-19 pandemic, including unpredictable variants, and the future outbreak of other highly infectious or contagious diseases;

• risks associated with ownership of real estate;

• limited ability to dispose of assets because of the relative illiquidity of real estate investments;

• our multifamily properties are concentrated in certain geographic markets in the Southeastern and Southwestern United States, which makes us more susceptible to adverse developments in those markets;

• increased risks associated with our strategy of acquiring value-enhancement multifamily properties rather than more conservative investment strategies;

• failure to succeed in new markets may have adverse consequences on our performance;

• potential reforms to the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”);

• competition could limit our ability to acquire attractive investment opportunities, which could adversely affect our profitability and impede our growth;

• competition and any increased affordability of residential homes could limit our ability to lease our apartments or increase or maintain rents;

• the relatively low residential mortgage rates may result in potential renters purchasing residences rather than leasing them, and as a result, cause a decline in our occupancy rates;

• the risk that we may fail to consummate future property acquisitions;

• failure of acquisitions to yield anticipated results;

• risks associated with increases in interest rates and our ability to issue additional debt or equity securities in the future;

• risks associated with selling apartment communities, which could limit our operational and financial flexibility;

• contingent or unknown liabilities related to properties or businesses that we have acquired or may acquire;

• lack of or insufficient amounts of insurance;

• the risk that our environmental assessments may not identify all potential environmental liabilities and our remediation actions may be insufficient;

• high costs associated with the investigation or remediation of environmental contamination, including asbestos, lead-based paint, chemical vapor, subsurface contamination and mold growth;

• high costs associated with the compliance with various accessibility, environmental, building and health and safety laws and regulations, such as the Americans with Disabilities Act of 1990 and the Fair Housing Act;

• risks associated with limited warranties we may obtain when purchasing properties;

ii

• exposure to decreases in market rents due to our short-term leases;

• risks associated with operating through joint ventures and funds;

• our dependence on information systems;

• risks associated with breaches of our data security;

• costs associated with being a public company, including compliance with securities laws;

• the risk that our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting;

• risks associated with our substantial current indebtedness and indebtedness we may incur in the future;

• risks associated with derivatives or hedging activity;

• risks associated with representations and warranties made by the us in connection with sales of our properties may subject us to liability that could result in losses and could harm our operating results and, therefore, distributions we make to our stockholders;

• loss of key personnel of NexPoint Advisors, L.P. (our “Sponsor”), NexPoint Real Estate Advisors, L.P. (our “Adviser”) and our property manager;

• the risk that we may not replicate the historical results achieved by other entities managed or sponsored by affiliates of our Adviser, members of our Adviser’s management team or by our Sponsor or its affiliates;

• risks associated with our Adviser’s ability to terminate the Advisory Agreement (as defined below);

• our ability to change our major policies, operations and targeted investments without stockholder consent;

• the substantial fees and expenses we pay to our Adviser and its affiliates;

• risks associated with any potential internalization of our management functions;

• conflicts of interest and competing demands for time faced by our Adviser, our Sponsor and their officers and employees;

• the risk that we may compete with other entities affiliated with our Sponsor or property manager for properties and tenants;

• failure to maintain our status as a REIT;

• failure of our operating partnership to be taxable as a partnership for federal income tax purposes, possibly causing us to fail to qualify for or to maintain REIT status;

• compliance with REIT requirements, which may limit our ability to hedge our liabilities effectively and cause us to forgo otherwise attractive opportunities, liquidate certain of our investments or incur tax liabilities;

• risks associated with our ownership of interests in taxable REIT subsidiaries;

• the recognition of taxable gains from the sale of properties as a result of the inability to complete certain like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”);

• the risk that the Internal Revenue Service may consider certain sales of properties to be prohibited transactions, resulting in a 100% penalty tax on any taxable gain;

• the ineligibility of dividends payable by REITs for the reduced tax rates available for some dividends;

• risks associated with the stock ownership restrictions of the Code for REITs and the stock ownership limit imposed by our charter;

• the ability of our board of directors to revoke our REIT qualification without stockholder approval;

• recent and potential legislative or regulatory tax changes or other actions affecting REITs;

• risks associated with the market for our common stock and the general volatility of the capital and credit markets;

• failure to generate sufficient cash flows to service our outstanding indebtedness or pay distributions at expected levels;

• risks associated with limitations of liability for and our indemnification of our directors and officers;

• the risk that legal proceedings we become involved in from time to time could adversely affect our business;

• the risk that acts of violence could decrease the value of our assets and have an adverse effect on our business and results of operations;

iii

• risks associated with the Highland Capital Management, L.P. bankruptcy, including related litigation and potential conflicts of interest; and

• any other risks included under Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on February 18, 2022.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this quarterly report. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by law.

iv

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	June 30, 2022			December 31, 2021
	(Unaudited)
ASSETS
Operating Real Estate Investments
Land	$	395,791		$	375,857
Buildings and improvements		1,867,698			1,743,866
Intangible lease assets		2,603			2,576
Construction in progress		5,504			6,078
Furniture, fixtures, and equipment		137,601			120,419
Total Gross Operating Real Estate Investments		2,409,197			2,248,796
Accumulated depreciation and amortization		(332,701	)		(287,096	)
Total Net Real Estate Investments		2,076,496			1,961,700
Cash and cash equivalents		20,463			49,450
Restricted cash		45,755			39,246
Accounts receivable, net		11,919			4,844
Prepaid and other assets		12,087			4,701
Fair market value of interest rate swaps		75,461			3,526
TOTAL ASSETS	$	2,242,181		$	2,063,467
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable, net	$	1,351,172		$	1,276,285
Credit facility, net		333,203			278,215
Accounts payable and other accrued liabilities		16,673			12,590
Accrued real estate taxes payable		15,124			13,182
Accrued interest payable		4,001			2,491
Security deposit liability		3,119			2,945
Prepaid rents		1,772			1,775
Total Liabilities		1,725,064			1,587,483
Redeemable noncontrolling interests in the Operating Partnership		7,022			6,139
Stockholders' Equity:
Preferred stock, $0.01 par value: 100,000,000 shares authorized; 0 shares issued		—			—
Common stock, $0.01 par value: 500,000,000 shares authorized; 25,647,942 and 25,500,567 shares issued and outstanding, respectively		256			255
Additional paid-in capital		407,436			407,803
Accumulated earnings less dividends		28,120			59,209
Accumulated other comprehensive income		74,283			2,578
Total Stockholders' Equity		510,095			469,845
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,242,181		$	2,063,467

See Notes to Consolidated Financial Statements

1

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share amounts)

(Unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Revenues
Rental income	$	64,152		$	51,047		$	123,449		$	101,387
Other income		1,614			1,516			3,103			2,972
Total revenues		65,766			52,563			126,552			104,359
Expenses
Property operating expenses		16,703			11,173			30,299			22,389
Real estate taxes and insurance		9,531			8,508			18,251			17,230
Property management fees (1)		1,912			1,516			3,669			3,001
Advisory and administrative fees (2)		1,868			1,900			3,711			3,768
Corporate general and administrative expenses		3,812			2,978			7,298			5,918
Property general and administrative expenses		2,193			1,760			4,199			3,319
Depreciation and amortization		25,548			19,986			49,266			40,744
Total expenses		61,567			47,821			116,693			96,369
Operating income		4,199			4,742			9,859			7,990
Interest expense		(12,402	)		(10,683	)		(23,038	)		(21,299	)
Loss on extinguishment of debt and modification costs		—			(328	)		—			(328	)
Casualty gains		229			2,379			357			2,379
Miscellaneous income		147			472			328			940
Net loss		(7,827	)		(3,418	)		(12,494	)		(10,318	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(30	)		(10	)		(44	)		(31	)
Net loss attributable to common stockholders	$	(7,797	)	$	(3,408	)	$	(12,450	)	$	(10,287	)
Other comprehensive income (loss)
Unrealized gains (losses) on interest rate derivatives		17,357			(4,805	)		71,936			26,537
Total comprehensive income (loss)		9,530			(8,223	)		59,442			16,219
Comprehensive income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership		37			(24	)		187			49
Comprehensive income (loss) attributable to common stockholders	$	9,493		$	(8,199	)	$	59,255		$	16,170
Weighted average common stock outstanding - basic		25,672			25,140			25,646			25,104
Weighted average common stock outstanding - diluted		25,672			25,140			25,646			25,104
Loss per share - basic	$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
Loss per share - diluted	$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)

(1) Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Company’s operating partnership (see Note 10).

(2) Fees incurred to the Adviser (see Note 11).

See Notes to Consolidated Financial Statements

2

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(dollars in thousands)

(Unaudited)

	Preferred Stock				Common Stock						Additional			Accumulated Earnings (Loss)			Accumulated Other		Common Stock Held in
Three Months ended June 30, 2022	Number of Shares		Par Value		Number of Shares			Par Value			Paid-in Capital			Less Dividends			Comprehensive Income (Loss)		Treasury at Cost			Total
Balances, March 31, 2022		—	$	—		25,700,190		$	257		$	411,059		$	44,246		$	56,993	$	—		$	512,555
Net loss attributable to common stockholders		—		—		—			—			—			(7,797	)		—		—			(7,797	)
Repurchases of common stock		—		—		—			—			—			—			—		(5,136	)		(5,136	)
Retirement of common stock held in treasury		—		—		(69,567	)		(1	)		(5,135	)		—			—		5,136			—
Vesting of stock-based compensation		—		—		17,319			—			1,634			—			—		—			1,634
Issuance of common stock through at-the-market offering, net of offering costs		—		—		—			—			(70	)		—			—		—			(70	)
Common stock dividends declared ($0.38 per share)		—		—		—			—			—			(9,974	)		—		—			(9,974	)
Other comprehensive income		—		—		—			—			—			—			17,290		—			17,290
Offering costs of the issuance of redeemable noncontrolling interests in the Operating Partnership		—		—		—			—			(52	)		—			—		—			(52	)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership		—		—		—			—			—			1,645			—		—			1,645
Balances, June 30, 2022		—	$	—		25,647,942		$	256		$	407,436		$	28,120		$	74,283	$	—		$	510,095

	Preferred Stock				Common Stock						Additional			Accumulated Earnings (Loss)			Accumulated Other		Common Stock Held in
Six Months ended June 30, 2022	Number of Shares		Par Value		Number of Shares			Par Value			Paid-in Capital			Less Dividends			Comprehensive Income (Loss)		Treasury at Cost			Total
Balances, December 31, 2021		—	$	—		25,500,567		$	255		$	407,803		$	59,209		$	2,578	$	—		$	469,845
Net loss attributable to common stockholders		—		—		—			—			—			(12,450	)		—		—			(12,450	)
Repurchases of common stock						—			—			—								(5,136	)		(5,136	)
Retirement of common stock held in treasury						(69,567	)		(1	)		(5,135	)							5,136			—
Vesting of stock-based compensation		—		—		164,851			1			753			—			—		—			754
Issuance of common stock through at-the-market offering, net of offering costs		—		—		52,091			1			4,067			—			—		—			4,068
Common stock dividends declared ($0.76 per share)		—		—		—			—			—			(19,950	)		—		—			(19,950	)
Other comprehensive income		—		—		—			—			—			—			71,705		—			71,705
Offering costs of the issuance of redeemable noncontrolling interests in the Operating Partnership		—		—		—			—			(52	)		—			—		—			(52	)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership		—		—		—			—			—			1,311			—		—			1,311
Balances, June 30, 2022		—	$	—		25,647,942		$	256		$	407,436		$	28,120		$	74,283		—		$	510,095

See Notes to Consolidated Financial Statements

3

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

(dollars in thousands)

(Unaudited)

	Preferred Stock				Common Stock				Additional			Accumulated Earnings (Loss)			Accumulated Other
Three Months ended June 30, 2021	Number of Shares		Par Value		Number of Shares		Par Value		Paid-in Capital			Less Dividends			Comprehensive Income (Loss)			Total
Balances, March 31, 2021		—	$	—		25,127,141	$	251	$	376,897		$	59,451		$	(13,106	)	$	423,493
Net loss attributable to common stockholders		—		—		—		—		—			(3,408	)		—			(3,408	)
Vesting of stock-based compensation		—		—		22,786		—		1,554			—			—			1,554
Issuance of common shares through at-the-market offering, net of offering costs		—		—		—		—		(86	)		—			—			(86	)
Common stock dividends declared ($0.34125 per share)		—		—		—		—		—			(8,782	)		—			(8,782	)
Other comprehensive loss		—		—		—		—		—			—			(4,791	)		(4,791	)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership		—		—		—		—		—			(710	)		—			(710	)
Balances, June 30, 2021		—	$	—		25,149,927	$	251	$	378,365		$	46,551		$	(17,897	)	$	407,270

	Preferred Stock				Common Stock				Additional			Accumulated Earnings (Loss)			Accumulated Other
Six Months ended June 30, 2021	Number of Shares		Par Value		Number of Shares		Par Value		Paid-in Capital			Less Dividends			Comprehensive Income (Loss)			Total
Balances, December 31, 2020		—	$	—		25,016,957	$	250	$	376,710		$	75,321		$	(44,354	)	$	407,927
Net loss attributable to common stockholders		—		—		—		—		—			(10,287	)		—			(10,287	)
Vesting of stock-based compensation		—		—		132,970		1		1,917			—			—			1,918
Issuance of common shares through at-the-market offering, net of offering costs		—		—		—		—		(262	)		—			—			(262	)
Common stock dividends declared ($0.6825 per share)		—		—		—		—		—			(17,558	)		—			(17,558	)
Other comprehensive income		—		—		—		—		—			—			26,457			26,457
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership		—		—		—		—		—			(925	)		—			(925	)
Balances, June 30, 2021		—	$	—		25,149,927	$	251	$	378,365		$	46,551		$	(17,897	)	$	407,270

See Notes to Consolidated Financial Statements

4

[NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS]

(in thousands)

(Unaudited)

	For the Six Months Ended June 30,
	2022			2021
Cash flows from operating activities
Net loss	$	(12,494	)	$	(10,318	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		49,266			40,744
Amortization/write-off of deferred financing costs		1,298			1,401
Change in fair value on derivative instruments included in interest expense		3,266			7,421
Net cash paid on derivative settlements		(6,630	)		(7,356	)
Amortization/write-off of fair market value adjustment of assumed debt		(101	)		(155	)
Provision for bad debts, net		3,163			1,641
Vesting of stock-based compensation		3,867			3,406
Insurance proceeds received for business interruption		130			257
Casualty gains (loss)		2,505			(3,755	)
Changes in operating assets and liabilities, net of effects of acquisitions:
Operating assets		(7,576	)		(3,599	)
Operating liabilities		1,991			1,263
Net cash provided by operating activities		38,685			30,950
Cash flows from investing activities
Insurance premiums paid for casualty losses		(1,819	)		(1,591	)
Insurance proceeds received from casualty losses		333			5,256
Additions to real estate investments		(22,890	)		(21,394	)
Acquisitions of real estate investments		(141,038	)		(122,035	)
Net cash used in investing activities		(165,414	)		(139,764	)
Cash flows from financing activities
Mortgage proceeds received		78,272			66,825
Mortgage payments		(743	)		(389	)
Credit facilities proceeds received		55,000			250,000
Credit facilities payments		—			(183,000	)
Deferred financing costs paid		(3,851	)		(1,999	)
Interest rate cap fees paid		(10	)		(108	)
Proceeds from the issuance of common stock through at-the-market offering, net of offering costs		4,069			(262	)
Payments for taxes related to net share settlement of stock-based compensation		(3,113	)		(1,489	)
Distributions to redeemable noncontrolling interests in the Operating Partnership		(36	)		—
Repurchase of common stock		(5,137	)		—
Dividends paid to common stockholders		(20,200	)		(17,552	)
Net cash provided by financing activities		104,251			112,026
Net increase (decrease) in cash, cash equivalents and restricted cash		(22,478	)		3,212
Cash, cash equivalents and restricted cash, beginning of period		88,696			57,015
Cash, cash equivalents and restricted cash, end of period	$	66,218		$	60,227

See Notes to Consolidated Financial Statements

5

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

Supplemental Disclosure of Cash Flow Information
Interest paid	$	17,066		$	13,497
Supplemental Disclosure of Noncash Activities
Issuance of operating partnership units for purchase of noncontrolling interests		2,444			—
Capitalized construction costs included in accounts payable and other accrued liabilities		4,824			2,546
Change in fair value on derivative instruments designated as hedges		71,936			26,537
Other assets acquired from acquisitions		168			96
Liabilities assumed from acquisitions		116			97
Increase (decrease) in dividends payable upon vesting of restricted stock units		(250	)		6
Write-off of assets due to casualty losses		4,317			2,028
Write-off of fully amortized in-place leases		2,576			1,675
Write-off of deferred financing costs		—			328

See Notes to Consolidated Financial Statements

6

NEXPOINT RESIDENTIAL TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Description of Business

NexPoint Residential Trust, Inc. (the “Company”, “we”, “our”) was incorporated in Maryland on September 19, 2014, and has elected to be taxed as a real estate investment trust (“REIT”). The Company is focused on “value-add” multifamily investments primarily located in the Southeastern and Southwestern United States. Substantially all of the Company’s business is conducted through NexPoint Residential Trust Operating Partnership, L.P. (the “OP”), the Company’s operating partnership. The Company owns its properties (the “Portfolio”) through the OP and its wholly owned taxable REIT subsidiary (“TRS”). The OP owns approximately 99.9% of the Portfolio; the TRS owns approximately 0.1% of the Portfolio. The Company’s wholly owned subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC (the “OP GP”), is the sole general partner of the OP. As of June 30, 2022, there were 26,050,945 common units in the OP (“OP Units”) outstanding, of which 25,951,154, or 99.6%, were owned by the Company and 99,791, or 0.4%, were owned by noncontrolling limited partners (see Note 10).

The Company is externally managed by NexPoint Real Estate Advisors, L.P. (the “Adviser”), through an agreement dated March 16, 2015, as amended, and renewed on February 14, 2022 for a one-year term (the “Advisory Agreement”), by and among the Company, the OP and the Adviser. The Adviser conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Advisory Agreement is in effect. All of the Company’s investment decisions are made by the Adviser, subject to general oversight by the Adviser’s investment committee and the Company’s board of directors (the “Board”). The Adviser is wholly owned by NexPoint Advisors, L.P. (the “Sponsor”).

The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a value-add program. Consistent with the Company’s policy to acquire assets for both income and capital gain, the Company intends to hold at least majority interests in its properties for long-term appreciation and to engage in the business of directly or indirectly acquiring, owning, and operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities primarily in the Southeastern and Southwestern United States consistent with its investment objectives. Economic and market conditions may influence the Company to hold properties for different periods of time. From time to time, the Company may sell a property if, among other deciding factors, the sale would be in the best interest of its stockholders.

The Company may allocate up to 30% of the Portfolio to investments in real estate-related debt and securities with the potential for high current income or total returns. These allocations may include first and second mortgages and subordinated, bridge, mezzanine, construction and other loans, as well as debt securities related to or secured by multifamily real estate and common and preferred equity securities, which may include securities of other REITs or real estate companies.

2. Summary of Significant Accounting Policies

Basis of Accounting

The accompanying unaudited consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the six months ended June 30, 2022.

The accompanying unaudited consolidated financial statements have been prepared according to the rules and regulations of the SEC.  Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, all adjustments and eliminations necessary for the fair presentation of the Company’s financial position as of June 30, 2022 and December 31, 2021 and results of operations for the three and six months ended June 30, 2022 and 2021 have been included.  Such adjustments are normal and recurring in nature.  The unaudited information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021 and notes thereto included in its Annual Report on Form 10-K filed with the SEC on February 18, 2022.

Principles of Consolidation

The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries.

7

Revenue Recognition

The Company’s primary operations consist of rental income earned from its residents under lease agreements typically with terms of one year or less. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. The Company records an allowance to reflect revenue that may not be collectable. This is recorded through a provision for bad debts which is included in rental income in the accompanying consolidated statements of operations and comprehensive income (loss). Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, and pets, administrative, application and other fees and are recognized when earned.  

Purchase Price Allocation

Upon acquisition of a property considered to be an asset acquisition, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805.

The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (“ASC 820”) (see Note 7), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the total consideration to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.

Real estate assets, including land, buildings, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

Land	Not depreciated
Buildings	30 years
Improvements	15 years
Furniture, fixtures, and equipment	3 years
Intangible lease assets	6 months

Construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete, the historical cost of the renovation is placed into service in one of the categories above depending on the type of renovation project and is depreciated over the estimated useful lives as described in the table above.

Impairment

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company’s impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment. As of June 30, 2022, the Company has not recorded any impairment on its real estate assets.

Held for Sale

The Company periodically classifies real estate assets as held for sale when certain criteria are met in accordance with GAAP. At that time, the Company presents the net real estate assets and the net debt associated with the real estate held for sale separately in its consolidated balance sheet, and the Company ceases recording depreciation and amortization expense related to that property. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. As of June 30, 2022, there are no properties held for sale.    

8

Income Taxes

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and expects to continue to qualify as a REIT. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its stockholders. As a REIT, the Company will be subject to federal income tax on its undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions it pays with respect to any calendar year are less than the sum of (1) 85% of its ordinary income, (2) 95% of its capital gain net income and (3) 100% of its undistributed income from prior years. The Company intends to operate in such a manner so as to qualify as a REIT, but no assurance can be given that the Company will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. The Company had no significant taxes associated with its TRS for the six months ended June 30, 2022 and 2021.

If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. As of June 30, 2022, the Company believes it is in compliance with all applicable REIT requirements.

The Company evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time.

The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2022. The Company and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The 2021, 2020 and 2019 tax years remain open to examination by tax jurisdictions to which the Company and its subsidiaries are subject. When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions on its consolidated statements of operations and comprehensive income (loss).

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2022, the Company transitioned a portion its debt to one-month term SOFR (“Term SOFR”). The Company has taken the ASC 848 elections needed to allow for the hedged forecasted transactions to transition while not discontinuing the associated hedge accounting designations. Application of these hedged accounting expedients preserves the presentation of derivatives consistent with past presentation.  The Company will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

3. Investments in Subsidiaries

The Company conducts its operations through the OP, which owns properties through single asset limited liability companies that are special purpose entities (“SPEs”). The Company consolidates the SPEs that it controls as well as any VIEs where it is the primary beneficiary. The Company controls and consolidates the OP as a VIE. In connection with its indirect equity investments in the properties acquired, the Company, through the OP and the TRS, directly or indirectly holds 100% of the membership interests in SPEs that directly own the properties. All of the properties the SPEs own are consolidated in the Company’s consolidated financial statements. The assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company.

Additionally, the Company has in the past and may in the future enter into purchase and sale transactions structured as reverse like-kind exchanges (“1031 Exchanges”) under Section 1031 of the Code. For a reverse 1031 Exchange in which the Company purchases a new property prior to selling the property to be matched in the like-kind exchange (the Company refers to the new property being

9

acquired in the 1031 Exchange prior to the sale of the related property as a “Parked Asset”), legal title to the Parked Asset is held by an Exchange Accommodation Titleholder (“EAT”) engaged to execute the 1031 Exchange until the sale transaction and the 1031 Exchange are completed. The Company, through a wholly owned subsidiary, enters into a master lease agreement with the EAT whereby the EAT leases the acquired property and all other rights acquired in connection with the acquisition to the Company. The term of the master lease agreement is the earlier of the completion of the reverse 1031 Exchange or 180 days from the date that the property was acquired. The EAT is classified as a VIE as it does not have sufficient equity investment at risk to finance its activities without additional subordinated financial support. The Company consolidates the EAT as its primary beneficiary because it has the ability to control the activities that most significantly impact the EAT’s economic performance and the Company retains all of the legal and economic benefits and obligations related to the Parked Assets prior to completion of the 1031 Exchange. As such, the Parked Assets are included in the Company’s consolidated financial statements as VIEs until legal title and control is transferred to the Company upon either completion of the 1031 Exchange or termination of the master lease agreement, at which time they will be consolidated as wholly owned subsidiaries.

10

As of June 30, 2022, the Company, through the OP and the wholly owned TRS, owned 41 properties through SPEs. The following table represents the Company’s ownership in each property by virtue of its 100% ownership of the SPEs that directly own the title to each property as of June 30, 2022 and December 31, 2021:

				Effective Ownership Percentage at
Property Name		Location	Year Acquired	June 30, 2022			December 31, 2021
Arbors on Forest Ridge		Bedford, Texas	2014		100	%		100	%
Cutter's Point		Richardson, Texas	2014		100	%		100	%
Silverbrook		Grand Prairie, Texas	2014		100	%		100	%
The Summit at Sabal Park		Tampa, Florida	2014		100	%		100	%
Courtney Cove		Tampa, Florida	2014		100	%		100	%
Radbourne Lake		Charlotte, North Carolina	2014		100	%		100	%
Timber Creek		Charlotte, North Carolina	2014		100	%		100	%
Sabal Palm at Lake Buena Vista		Orlando, Florida	2014		100	%		100	%
Cornerstone		Orlando, Florida	2015		100	%		100	%
The Preserve at Terrell Mill		Marietta, Georgia	2015		100	%		100	%
Versailles		Dallas, Texas	2015		100	%		100	%
Seasons 704 Apartments		West Palm Beach, Florida	2015		100	%		100	%
Madera Point		Mesa, Arizona	2015		100	%		100	%
Venue at 8651		Fort Worth, Texas	2015		100	%		100	%
Parc500		West Palm Beach, Florida	2016		100	%		100	%
The Venue on Camelback		Phoenix, Arizona	2016		100	%		100	%
Old Farm		Houston, Texas	2016		100	%		100	%
Stone Creek at Old Farm		Houston, Texas	2016		100	%		100	%
Hollister Place		Houston, Texas	2017		100	%		100	%
Rockledge Apartments		Marietta, Georgia	2017		100	%		100	%
Atera Apartments		Dallas, Texas	2017		100	%		100	%
Crestmont Reserve		Dallas, Texas	2018		100	%		100	%
Brandywine I & II		Nashville, Tennessee	2018		100	%		100	%
Bella Vista		Phoenix, Arizona	2019		100	%		100	%
The Enclave		Tempe, Arizona	2019		100	%		100	%
The Heritage		Phoenix, Arizona	2019		100	%		100	%
Summers Landing		Fort Worth, Texas	2019		100	%		100	%
Residences at Glenview Reserve		Nashville, Tennessee	2019		100	%		100	%
Residences at West Place		Orlando, Florida	2019		100	%		100	%
Avant at Pembroke Pines		Pembroke Pines, Florida	2019		100	%		100	%
Arbors of Brentwood		Nashville, Tennessee	2019		100	%		100	%
Torreyana Apartments		Las Vegas, Nevada	2019		100	%		100	%
Bloom		Las Vegas, Nevada	2019		100	%		100	%
Bella Solara		Las Vegas, Nevada	2019		100	%		100	%
Fairways at San Marcos		Chandler, Arizona	2020		100	%		100	%
The Verandas at Lake Norman	(1)	Charlotte, North Carolina	2021		100	%		100	%
Creekside at Matthews	(1)	Charlotte, North Carolina	2021		100	%		100	%
Six Forks Station		Raleigh, North Carolina	2021		100	%		100	%
High House at Cary		Cary, North Carolina	2021		100	%		100	%
The Adair		Sandy Springs, Georgia	2022		100	%		—		(2)
Estates on Maryland		Phoenix, Arizona	2022		100	%		—		(2)

(1) The EAT that directly owned The Verandas at Lake Norman and Creekside at Matthews was consolidated as a VIE at June 30, 2021 giving the Company an effective 100% ownership interest. The master lease agreement with the EAT that directly owned these properties terminated on December 28, 2021, at which time legal title and control transferred to the Company. Upon the transfer of title, the EAT that directly owned these properties was no longer considered a VIE.

(2) Properties were acquired in 2022; therefore, no ownership as of December 31, 2021.

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4. Real Estate Investments Statistics

As of June 30, 2022, the Company was invested in a total of 41 multifamily properties, as listed below:

						Average Effective Monthly Rent Per Unit (1) as of					% Occupied (2) as of
Property Name	Rentable Square Footage (in thousands)		Number of Units (3)		Date Acquired	June 30, 2022		December 31, 2021			June 30, 2022			December 31, 2021
Arbors on Forest Ridge		155		210	1/31/2014	$	1,109	$	1,021			96.7	%		96.2	%
Cutter's Point		198		196	1/31/2014		1,278		1,219			94.4	%		95.4	%
Silverbrook		526		642	1/31/2014		1,122		1,043			92.2	%		94.1	%
The Summit at Sabal Park		205		252	8/20/2014		1,340		1,198			94.8	%		96.0	%
Courtney Cove		225		324	8/20/2014		1,263		1,132			95.1	%		93.8	%
Radbourne Lake		247		225	9/30/2014		1,331		1,227			92.9	%		94.2	%
Timber Creek		248		352	9/30/2014		1,138		1,032			96.7	%		96.1	%
Sabal Palm at Lake Buena Vista		371		400	11/5/2014		1,569		1,377			96.3	%		97.8	%
Cornerstone		318		430	1/15/2015		1,306		1,152			96.7	%		95.6	%
The Preserve at Terrell Mill		692		752	2/6/2015		1,234		1,156			93.7	%		90.9	%
Versailles		301		388	2/26/2015		1,189		1,024			92.3	%		96.4	%
Seasons 704 Apartments		217		222	4/15/2015		1,619		1,410			95.5	%		96.8	%
Madera Point		193		256	8/5/2015		1,298		1,140			93.4	%		94.5	%
Venue at 8651		289		333	10/30/2015		1,068		1,006			95.1	%		94.5	%
Parc500		266		217	7/27/2016		1,694		1,543			98.1	%		96.3	%
The Venue on Camelback		256		415	10/11/2016		1,026		915			92.0	%		92.3	%
Old Farm		697		734	12/29/2016		1,271		1,207			93.6	%		93.9	%
Stone Creek at Old Farm		186		190	12/29/2016		1,283		1,248			98.4	%		96.8	%
Hollister Place		246		260	2/1/2017		1,144		1,065			96.9	%		92.5	%
Rockledge Apartments		802		708	6/30/2017		1,506		1,408			94.8	%		93.9	%
Atera Apartments		334		380	10/25/2017		1,434		1,310			95.8	%		93.9	%
Crestmont Reserve		199		242	9/26/2018		1,125		985			92.6	%		95.5	%
Brandywine I & II		414		632	9/26/2018		1,141		1,031			97.2	%		95.6	%
Bella Vista		243		248	1/28/2019		1,673		1,515			90.7	%		96.0	%
The Enclave		194		204	1/28/2019		1,706		1,507			92.2	%		96.6	%
The Heritage		199		204	1/28/2019		1,598		1,432			93.1	%		95.6	%
Summers Landing		139		196	6/7/2019		1,116		1,033			94.4	%		93.9	%
Residences at Glenview Reserve		344		360	7/17/2019		1,172		1,074			96.1	%		95.6	%
Residences at West Place		345		342	7/17/2019		1,486		1,345			93.3	%		93.0	%
Avant at Pembroke Pines		1,442		1,520	8/30/2019		1,896		1,695			95.8	%		93.9	%
Arbors of Brentwood		325		346	9/10/2019		1,405		1,284			96.4	%		95.1	%
Torreyana Apartments		309		316	11/22/2019		1,475		1,365			95.3	%		93.7	%
Bloom		498		528	11/22/2019		1,330		1,238			90.3	%		89.2	%
Bella Solara		271		320	11/22/2019		1,401		1,309			90.9	%		91.3	%
Fairways at San Marcos		340		352	11/2/2020		1,571		1,425			93.5	%		96.3	%
The Verandas at Lake Norman		241		264	6/30/2021		1,277		1,215			95.1	%		93.2	%
Creekside at Matthews		263		240	6/30/2021		1,408		1,350			95.8	%		94.2	%
Six Forks Station		360		323	9/10/2021		1,302		1,228			93.7	%		95.4	%
High House at Cary		293		302	12/7/2021		1,448		1,361			93.4	%		94.7	%
The Adair		328		232	4/1/2022		1,767		—	(4)		96.1	%		—		(4)
Estates on Maryland		324		330	4/1/2022		1,366		—	(4)		93.6	%		—		(4)
		14,043		15,387

(1) Average effective monthly rent per unit is equal to the average of the contractual rent for commenced leases as of June 30, 2022 and December 31, 2021, respectively, minus any tenant concessions over the term of the lease, divided by the number of units under commenced leases as of June 30, 2022 and December 31, 2021, respectively.

(2) Percent occupied is calculated as the number of units occupied as of June 30, 2022 and December 31, 2021, divided by the total number of units, expressed as a percentage.

(3) Includes 73 down units due to casualty events as of June 30, 2022 (see Note 5).

(4) Properties were acquired in 2022.

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5. Real Estate Investments

As of June 30, 2022, the major components of the Company’s investments in multifamily properties were as follows (in thousands):

Operating Properties	Land		Buildings and Improvements			Intangible Lease Assets			Construction in Progress			Furniture, Fixtures and Equipment			Totals
Arbors on Forest Ridge	$	2,330	$	11,767		$	—		$	1		$	1,905		$	16,003
Cutter's Point		3,330		13,133			—			(19	)		7,437			23,881
Silverbrook		4,860		25,729			—			214			5,833			36,636
The Summit at Sabal Park		5,770		13,891			—			—			2,101			21,762
Courtney Cove		5,880		14,543			—			17			2,647			23,087
Radbourne Lake		2,440		22,949			—			7			2,832			28,228
Timber Creek		11,260		13,443			—			1,348			4,114			30,165
Sabal Palm at Lake Buena Vista		7,580		42,478			—			—			3,001			53,059
Cornerstone		1,500		30,917			—			21			3,925			36,363
The Preserve at Terrell Mill		10,170		53,180			—			53			9,814			73,217
Versailles		6,720		21,971			—			—			4,282			32,973
Seasons 704 Apartments		7,480		14,797			—			3			2,610			24,890
Madera Point		4,920		18,260			—			—			2,844			26,024
Venue at 8651		2,350		17,649			—			393			3,988			24,380
Parc500		3,860		21,066			—			4			4,411			29,341
The Venue on Camelback		8,340		38,744			—			—			3,564			50,648
Old Farm		11,078		71,122			—			153			4,252			86,605
Stone Creek at Old Farm		3,493		19,742			—			2			982			24,219
Hollister Place		2,782		22,015			—			80			2,859			27,736
Rockledge Apartments		17,451		97,518			—			497			6,910			122,376
Atera Apartments		22,371		38,767			—			30			2,659			63,827
Crestmont Reserve		4,124		21,082			—			6			1,669			26,881
Brandywine I & II		6,237		73,790			—			—			5,879			85,906
Bella Vista		10,942		37,375			—			14			2,995			51,326
The Enclave		11,046		30,547			—			2			2,711			44,306
The Heritage		6,835		35,169			—			14			2,810			44,828
Summers Landing		1,798		18,494			—			1			870			21,163
Residences at Glenview Reserve		3,367		42,489			—			—			3,033			48,889
Residences at West Place		3,345		52,500			—			6			2,201			58,052
Avant at Pembroke Pines		48,435		277,392			—			1,835			13,183			340,845
Arbors of Brentwood		6,346		54,100			—			3			2,569			63,018
Torreyana Apartments		23,824		43,805			—			—			1,709			69,338
Bloom		23,805		82,673			—			143			3,363			109,984
Bella Solara		12,605		53,504			—			21			2,328			68,458
Fairways at San Marcos		10,993		72,925			—			—			2,627			86,545
The Verandas at Lake Norman		9,510		52,904			—			115			1,061			63,590
Creekside at Matthews		11,515		45,608			—			132			1,355			58,610
Six Forks Station		11,357		62,136			—			183			1,552			75,228
High House at Cary		23,809		67,741			—			51			1,093			92,694
The Adair		8,361		55,519			1,182			173			797			66,032
Estates on Maryland		11,573		64,263			1,421			1			826			78,084
		395,792		1,867,697			2,603			5,504			137,601			2,409,197
Accumulated depreciation and amortization		—		(234,392	)		(1,301	)		—			(97,008	)		(332,701	)
Total Operating Properties	$	395,792	$	1,633,305		$	1,302		$	5,504		$	40,593		$	2,076,496

13

As of December 31, 2021, the major components of the Company’s investments in multifamily properties were as follows (in thousands):

Operating Properties	Land		Buildings and Improvements			Intangible Lease Assets			Construction in Progress		Furniture, Fixtures and Equipment			Totals
Arbors on Forest Ridge	$	2,330	$	11,755		$	—		$	—	$	1,821		$	15,906
Cutter's Point		3,330		13,091			—			—		7,379			23,800
Silverbrook		4,860		27,495			—			—		5,566			37,921
The Summit at Sabal Park		5,770		13,882			—			—		1,978			21,630
Courtney Cove		5,880		14,350			—			—		2,444			22,674
Radbourne Lake		2,440		22,744			—			64		2,455			27,703
Timber Creek		11,260		13,310			—			239		3,827			28,636
Sabal Palm at Lake Buena Vista		7,580		42,456			—			2		2,758			52,796
Cornerstone		1,500		30,901			—			21		3,722			36,144
The Preserve at Terrell Mill		10,170		53,080			—			—		8,997			72,247
Versailles		6,720		21,887			—			—		4,075			32,682
Seasons 704 Apartments		7,480		14,644			—			—		2,078			24,202
Madera Point		4,920		18,090			—			48		2,612			25,670
Venue at 8651		2,350		17,495			—			334		3,843			24,022
Parc500		3,860		21,172			—			—		4,147			29,179
The Venue on Camelback		8,340		38,328			—			306		3,248			50,222
Old Farm		11,078		70,993			—			99		3,902			86,072
Stone Creek at Old Farm		3,493		19,714			—			2		899			24,108
Hollister Place		2,782		21,196			—			1,308		2,739			28,025
Rockledge Apartments		17,451		97,374			—			—		5,968			120,793
Atera Apartments		22,371		36,857			—			1,824		2,384			63,436
Crestmont Reserve		4,124		21,067			—			—		1,515			26,706
Brandywine I & II		6,237		73,737			—			—		5,160			85,134
Bella Vista		10,942		37,193			—			51		2,687			50,873
The Enclave		11,046		30,469			—			11		2,403			43,929
The Heritage		6,835		35,011			—			68		2,386			44,300
Summers Landing		1,798		18,433			—			1		790			21,022
Residences at Glenview Reserve		3,367		42,306			—			—		2,366			48,039
Residences at West Place		3,345		52,310			—			—		1,591			57,246
Avant at Pembroke Pines		48,434		275,968			—			1,414		11,611			337,427
Arbors of Brentwood		6,346		56,040			—			—		2,235			64,621
Torreyana Apartments		23,824		43,700			—			25		1,371			68,920
Bloom		23,805		82,545			—			16		2,697			109,063
Bella Solara		12,605		53,415			—			24		1,854			67,898
Fairways at San Marcos		10,993		72,920			—			2		1,989			85,904
The Verandas at Lake Norman		9,510		52,884			—			6		650			63,050
Creekside at Matthews		11,515		45,271			—			18		756			57,560
Six Forks Station		11,357		62,129			1,200			195		748			75,629
High House at Cary		23,809		67,654			1,376			—		768			93,607
		375,857		1,743,866			2,576			6,078		120,419			2,248,796
Accumulated depreciation and amortization		—		(203,125	)		(1,029	)		—		(82,942	)		(287,096	)
Total Operating Properties	$	375,857	$	1,540,741		$	1,547		$	6,078	$	37,477		$	1,961,700

Depreciation expense was $23.8 million and $19.7 million for the three months ended June 30, 2022 and 2021, respectively. Depreciation expense was $46.4 million and $39.6 million for the six months ended June 30, 2022 and 2021, respectively.

Amortization expense related to the Company’s intangible lease assets was $1.8 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively. Amortization expense related to the Company’s intangible lease assets was $2.8 million and $1.1 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense related to the Company’s intangible lease assets for all acquisitions completed through June 30, 2022 is expected to be $1.3 million for the remainder of the year ended December 31, 2022. Due to the six-month useful life attributable to intangible lease assets, the value of intangible lease assets on any acquisition prior to December 31, 2021 has been fully amortized and the assets and related accumulated amortization have been written off as of June 30, 2022.

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Acquisitions

The Company acquired two properties during the six months ended June 30, 2022, as detailed in the table below (dollars in thousands). The Company acquired two properties during the six months ended June 30, 2021 for $121.5 million. The Company entered into new debt agreements for the properties acquired during the six months ended June 30, 2022 and 2021.

Property Name	Location	Date of Acquisition	Purchase Price		Mortgage Debt		# Units		Effective Ownership
The Adair	Sandy Springs, Georgia	April 1, 2022	$	65,500	$	35,115		232		100	%
Estates on Maryland	Phoenix, Arizona	April 1, 2022		77,900		43,157		330		100	%
			$	143,400	$	78,272		562

Dispositions

There were no dispositions of real estate during the six months ended June 30, 2022 and 2021.

Casualty Losses

As of June 30, 2022, nine of the Company’s properties, Silverbrook, Venue at 8651, Bloom, Arbors of Brentwood, Parc500, Timber Creek, Hollister Place, The Preserve at Terrell Mill and Six Forks, suffered significant property damages as a result of fires and flooding. As of June 30, 2022, 73 units were excluded from the Portfolio’s total unit count and 67 units were excluded from all same store pools due to reconstruction. Business interruption proceeds for lost rent are included in miscellaneous income in the accompanying consolidated statements of operations and comprehensive income (loss) in relation to these events.

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6. Debt

Mortgage Debt

The following table contains summary information concerning the mortgage debt of the Company as of June 30, 2022 (dollars in thousands):

Operating Properties		Type	Term (months)		Outstanding Principal (1)				Interest Rate (2)	Maturity Date
Arbors on Forest Ridge	(3)	Floating		84	$	13,130			3.47%	7/1/2024
Cutter's Point	(3)	Floating		84		16,640			3.47%	7/1/2024
Silverbrook	(3)	Floating		84		30,590			3.47%	7/1/2024
The Summit at Sabal Park	(3)	Floating		84		13,560			3.41%	7/1/2024
Courtney Cove	(3)	Floating		84		13,680			3.41%	7/1/2024
The Preserve at Terrell Mill	(3)	Floating		84		42,480			3.41%	7/1/2024
Versailles	(3)	Floating		84		23,880			3.41%	7/1/2024
Seasons 704 Apartments	(3)	Floating		84		17,460			3.41%	7/1/2024
Madera Point	(3)	Floating		84		15,150			3.41%	7/1/2024
Venue at 8651	(3)	Floating		84		13,734			3.57%	7/1/2024
The Venue on Camelback	(3)	Floating		84		28,093			3.47%	7/1/2024
Old Farm	(3)	Floating		84		52,886			3.47%	7/1/2024
Stone Creek at Old Farm	(3)	Floating		84		15,274			3.47%	7/1/2024
Timber Creek	(3)	Floating		84		24,100			3.05%	10/1/2025
Radbourne Lake	(3)	Floating		84		20,000			3.08%	10/1/2025
Sabal Palm at Lake Buena Vista	(3)	Floating		84		42,100			3.09%	9/1/2025
Cornerstone	(4)	Fixed		120		20,545			4.24%	3/1/2023
Parc500	(5)	Fixed		120		14,517			4.49%	8/1/2025
Hollister Place	(3)	Floating		84		14,811			3.13%	10/1/2025
Rockledge Apartments	(3)	Floating		84		68,100			3.36%	7/1/2024
Atera Apartments	(3)	Floating		84		29,500			3.27%	11/1/2024
Crestmont Reserve	(3)	Floating		84		12,061			2.97%	10/1/2025
Brandywine I & II	(3)	Floating		84		43,835			2.97%	10/1/2025
Bella Vista	(3)	Floating		84		29,040			3.11%	2/1/2026
The Enclave	(3)	Floating		84		25,322			3.11%	2/1/2026
The Heritage	(3)	Floating		84		24,625			3.11%	2/1/2026
Summers Landing	(6)	Floating		84		10,109			2.97%	10/1/2025
Residences at Glenview Reserve	(7)	Floating		84		26,108			3.23%	10/1/2025
Residences at West Place	(7)	Fixed		120		33,817			4.24%	10/1/2028
Avant at Pembroke Pines	(3)	Floating		84		177,100			3.22%	9/1/2026
Arbors of Brentwood	(3)	Floating		84		34,237			3.22%	10/1/2026
Torreyana Apartments	(3)	Floating		84		37,400			3.49%	12/1/2026
Bloom	(3)	Floating		84		58,850			3.49%	12/1/2026
Bella Solara	(3)	Floating		84		36,575			3.49%	12/1/2026
Fairways at San Marcos	(3)	Floating		84		46,464			3.22%	12/1/2027
The Verandas at Lake Norman	(8)	Floating		84		34,925			2.94%	7/1/2028
Creekside at Matthews	(8)	Floating		84		31,900			2.94%	7/1/2028
Six Forks Station	(9)	Floating		120		41,180			2.80%	10/1/2031
High House at Cary	(8)	Floating		84		46,625			3.10%	1/1/2029
The Adair	(3)	Floating		84		35,115			3.06%	4/1/2029
Estates on Maryland	(3)	Floating		84		43,157			3.06%	4/1/2029
					$	1,358,675
Fair market value adjustment						958		(10)
Deferred financing costs, net of accumulated amortization of $5,943						(8,461	)
					$	1,351,172

(1) Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2) Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. Reference rates used in our portfolio include one-month LIBOR and 30-Day Average Secured Overnight Financing Rate (“SOFR”). As of June 30, 2022, one-month LIBOR was 1.79% and SOFR was 1.09%.

(3) Loan can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13^th month of the term through the 81^st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

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(4) Debt in the amount of $18.0 million was assumed upon acquisition of this property and recorded at approximated fair value. The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013, and had a term of 120 months with an initial 24 months of interest only. At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months of interest only. The first mortgage is pre-payable and subject to yield maintenance from the 13^th month through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. Concurrently with the acquisition of the property, the Company placed a supplemental second mortgage on the property with a principal amount of approximately $5.8 million, a fixed rate of 4.70%, and with a maturity date that is the same time as the first mortgage. The supplemental second mortgage is pre-payable and subject to yield maintenance from the date of issuance through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. As of June 30, 2022, the total indebtedness secured by the property had a blended interest rate of 4.24%.

(5) Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan is open to pre-payment in the last four months of the term.

(6) Debt was assumed upon acquisition of this property and recorded at approximated fair value.  It can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13^th month of the term through the 81^st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(7) Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan can be prepaid at the greater of par plus 1.00% of the unpaid principal balance or the product obtained by multiplying the present value of the principal being prepaid by the excess of the monthly fixed interest rate of the loan over a daily discount rate. The loan is open to pre-payment in the last three months of the term.  

(8) Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25^th month of the term through the 36^th month of the term, the loan can be pre-paid at par plus 2% of the unpaid principal balance. Starting in the 37^th month of the term, the loan can be pre-paid at par plus 1% of the unpaid principal balance. The loan is open to pre-payment in the last three months of the term.

(9) Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25^th month of the term through the 116^th of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term.

(10) The Company reflected a valuation adjustment on its fixed rate debt for Parc500 and Residences at West Place to adjust it to fair market value on their respective dates of acquisition for the difference between the fair value and the assumed principal amount of debt. The difference is amortized into interest expense over the remaining terms of the mortgages.

The weighted average interest rate of the Company’s mortgage indebtedness was 3.29% as of June 30, 2022 and 1.81% as of December 31, 2021. The increase between the periods is primarily related to a increase in one-month LIBOR of approximately 169 basis points to 1.79% as of June 30, 2022 from 0.10125% as of December 31, 2021. As of June 30, 2022, the adjusted weighted average interest rate of the Company’s mortgage indebtedness was 2.67%. For purposes of calculating the adjusted weighted average interest rate of the outstanding mortgage indebtedness, the Company has included the weighted average fixed rate of 1.1245% for one-month LIBOR on its combined $1.3 billion notional amount of interest rate swap agreements, which effectively fix the interest rate on $1.3 billion of the Company’s floating rate mortgage debt (see Note 7).

Each of the Company’s mortgages is a non-recourse obligation subject to customary provisions. The loan agreements contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the documents evidencing the loan, defaults in payments under any other security instrument covering any part of the property, whether junior or senior to the loan, and bankruptcy or other insolvency events. As of June 30, 2022, the Company believes it is in compliance with all provisions.

Credit Facility

The following table contains summary information concerning the Company’s credit facility as of June 30, 2022 (dollars in thousands):

	Type	Term (months)		Outstanding Principal			Interest Rate (1)	Maturity Date
Corporate Credit Facility	Floating		36	$	335,000		3.94%	6/30/2024
Deferred financing costs, net of accumulated amortization of $685					(1,797	)
				$	333,203

(1) Interest rate is based on Term SOFR plus an applicable margin.  Term SOFR as of June 30, 2022 was 1.60%.

On March 25, 2022, the Company entered into a loan modification agreement by and among the Company, the OP, Truist Bank and the Lenders party thereto, which modified the Company’s existing credit facility, dated as of June 30, 2021 (as modified, amended and supplemented, the “Corporate Credit Facility”). As of June 30, 2022, there was $350.0 million available for borrowing under the Corporate Credit Facility. Subject to conditions provided in the Corporate Credit Facility, the commitments under Corporate Credit

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Facility may be increased up to an additional $150.0 million if the lenders agree to increase their commitments or if the lenders agree for the increase to be funded by any additional lender proposed by the Company, through the OP. The Corporate Credit Facility will mature on June 30, 2024 with respect to the revolving commitments, unless the Company exercises its option to voluntarily and permanently reduce all of the revolving commitments before the maturity date or elects to exercise its right and option to extend the facility with respect to the revolving commitments for a single one-year term. As of June 30, 2022, there was $335.0 million in aggregate principal outstanding under the Corporate Credit Facility.

Advances under the Corporate Credit Facility accrue interest at a per annum rate equal to, at the Company’s election, either Term SOFR plus a margin of 1.90% to 2.40%, depending on the Company’s total leverage ratio and a benchmark replacement adjustment of 0.1%, or a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50%, (c) Term SOFR plus 1.0% or (d) 0.0% plus a margin of 0.90% to 1.40%, depending on the Company’s total leverage ratio. An unused commitment fee at a rate of 0.15% or 0.25%, depending on the outstanding aggregate revolving commitments, applies to unutilized borrowing capacity under the Corporate Credit Facility. Amounts owing under the Corporate Credit Facility may be prepaid at any time without premium or penalty. The Corporate Credit Facility is guaranteed by the Company and the obligations under the Corporate Credit Facility are, subject to some exceptions, secured by a continuing security interest in substantially all of the assets of the Company. The Company is in compliance with all of the covenants required in its Corporate Credit Facility.

Deferred Financing Costs

The Company defers costs incurred in obtaining financing and amortizes the costs over the terms of the related loans using the straight-line method, which approximates the effective interest method. Deferred financing costs, net of amortization, are recorded as a reduction from the related debt on the Company’s consolidated balance sheets. For the three months ended June 30, 2022 and 2021, amortization of deferred financing costs of approximately $0.7 million and $0.5 million, respectively, is included in interest expense on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2022 and 2021, amortization of deferred financing costs of approximately $1.3 million and $1.1 million, respectively, is included in interest expense on the consolidated statements of operations and comprehensive income (loss).

Loss on Extinguishment of Debt and Modification Costs

Loss on extinguishment of debt and modification costs includes prepayment penalties and defeasance costs incurred on the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to loss on extinguishment of debt and modification costs. For the six months ended June 30, 2022 and 2021, the Company wrote-off deferred financing costs of approximately $0.0 million and $0.3 million, respectively, which is included in loss on extinguishment of debt and modification costs on the consolidated statements of operations and comprehensive income (loss).

Schedule of Debt Maturities

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2022 are as follows (in thousands):

	Operating Properties		Credit Facility		Total
2022	$	650	$	—	$	650
2023		21,003		—		21,003
2024		394,952		335,000		729,952
2025		205,738		—		205,738
2026		423,149		—		423,149
Thereafter		313,183		—		313,183
Total	$	1,358,675	$	335,000	$	1,693,675

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7. Fair Value of Derivatives and Financial Instruments

Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy):

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

• Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.

• Level 3 inputs are the unobservable inputs for the asset or liability, which are typically based on an entity’s own assumption, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on input from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company utilizes independent third parties to perform the allocation of value analysis for each property acquisition and to perform the market valuations on its derivative financial instruments and has established policies, as described above, processes and procedures intended to ensure that the valuation methodologies for investments and derivative financial instruments are fair and consistent as of the measurement date.

Derivative Financial Instruments and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash payments principally related to the Company’s borrowings. In order to minimize counterparty credit risk, the Company enters into and expects to enter into hedging arrangements only with major financial institutions that have high credit ratings.

The Company utilizes an independent third party to perform the market valuations on its derivative financial instruments. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both the Company’s own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of the Company’s derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company’s derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of June 30, 2022 and December 31, 2021 were classified as Level 2 of the fair value hierarchy.

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The Company’s main objective in using interest rate derivatives is to add stability to interest expense related to floating rate debt. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The interest rate swaps have terms ranging from four to five years. Interest rate caps involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The interest rate caps have terms ranging from three to four years. During the six months ended June 30, 2022 and 2021, interest rate cap derivatives were used to hedge the variable cash flows associated with a portion of the Company’s floating rate debt. The interest rate cap agreements the Company has entered into effectively cap one-month LIBOR on $537.1 million of the Company’s floating rate mortgage indebtedness at a weighted average rate of 4.66% as of June 30, 2022.

In order to fix a portion of, and mitigate the risk associated with, the Company’s floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), the Company, through the OP, has entered into nine interest rate swap transactions with KeyBank National Association (“KeyBank”) and four with Truist Bank with a combined notional amount of $1.3 billion. The interest rate swaps the Company has entered into effectively replace the floating interest rate with respect to that amount with a weighted average fixed rate of 1.1245%. The Company has designated these interest rate swaps as cash flow hedges of interest rate risk.

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
July 1, 2017	July 1, 2022	KeyBank		100,000		1.7820	%
June 1, 2019	June 1, 2024	KeyBank		50,000		2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000		2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000		1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000		1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500		1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000		0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000		0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000		0.6140	%
			$	1,267,500		1.1245	%	(2)

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

(2) Represents the weighted average fixed rate of the interest rate swaps.

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk with future effective dates (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
September 1, 2026	January 1, 2027	KeyBank	$	92,500		1.7980	%

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements but either do not meet the strict requirements to apply hedge accounting in accordance with FASB ASC 815, Derivatives and Hedging, or the Company has elected not to designate such derivatives as hedges. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in net income (loss) as interest expense.

As of June 30, 2022 and 2021, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):

As of June 30,	Number of Instruments		Notional Amount
2022		17	$	537,118
2021		15	$	346,542

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The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance Sheet Location	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Interest rate swaps	Fair market value of interest rate swaps	$	75,461	$	11,045	$	—	$	7,519
Derivatives not designated as hedging instruments:
Interest rate caps	Prepaid and other assets		2,374		263		—		—
Total		$	77,835	$	11,308	$	—	$	7,519

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Amount of gain (loss) recognized in OCI					Location of gain (loss) reclassified from accumulated	Amount of gain (loss) reclassified from OCI into income
	2022		2021			OCI into income	2022			2021
Derivatives designated as hedging instruments:
For the three months ended June 30,
Interest rate products	$	16,291	$	(8,551	)	Interest expense	$	(1,066	)	$	(3,746	)
For the six months ended June 30,
Interest rate products	$	67,308	$	19,128		Interest expense	$	(4,628	)	$	(7,409	)

	Location of gain (loss)	Amount of gain (loss) recognized in income
	recognized in income	2022			2021
Derivatives not designated as hedging instruments:
For the three months ended June 30,
Interest rate products	Interest expense	$	(181	)	$	55
For the six months ended June 30,
Interest rate products	Interest expense	$	(1,365	)	$	43

Other Financial Instruments Carried at Fair Value

Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 10). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value.

Financial Instruments Not Carried at Fair Value

At June 30, 2022 and December 31, 2021, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaid and other assets, excluding interest rate caps, accounts payable and other accrued liabilities, accrued real estate taxes payable, accrued interest payable, security deposits and prepaid rent approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts.

Long-term indebtedness is carried at amounts that reasonably approximate their fair value. In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current credit worthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.

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The table below presents the carrying value and estimated fair value of our debt at June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022				December 31, 2021
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Fixed rate debt	$	68,879	$	67,454	$	69,285	$	71,141
Floating rate debt (1)	$	1,624,796	$	1,597,759	$	1,491,861	$	1,525,298

(1) Includes balances outstanding under our Corporate Credit Facility.

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such cases, the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. There can be no assurance that the estimates discussed herein, using Level 3 inputs, are indicative of the amounts the Company could realize on disposition of the real estate asset. For the six months ended June 30, 2022, the Company did not record any impairment charges related to real estate assets.

8. Stockholders’ Equity

Common Stock

During the six months ended June 30, 2022, the Company issued 164,851 shares of common stock pursuant to its long-term incentive plan (see “Long Term Incentive Plan” below) and 52,091 shares pursuant to its at-the-market offering (see “At-the-Market Offering” below).

As of June 30, 2022, the Company had 25,647,942 shares of common stock, par value $0.01 per share, issued and outstanding.

Share Repurchase Program

On June 15, 2016, the Board authorized the Company to repurchase up to $30.0 million of its common stock, par value $0.01 per share, during a two-year period that was set to expire on June 15, 2018 (the “Share Repurchase Program”). On April 30, 2018, the Board increased the Share Repurchase Program from $30.0 million to up to $40.0 million and extended it by an additional two years to June 15, 2020. On March 13, 2020, the Board further increased the Share Repurchase Program from $40.0 million to up to $100.0 million and extended it to March 12, 2023.  The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to net asset value per share. Repurchases under this program may be discontinued at any time. During the six months ended June 30, 2022, the Company repurchased 69,567 shares of its common stock for approximately $5.1 million, or $73.82 per share. During the six months ended June 30, 2021, the Company did not repurchase any shares of its common stock. Since the inception of the Share Repurchase Program through June 30, 2022, the Company has repurchased 2,451,722 shares of its common stock, par value $0.01 per share, at a total cost of approximately $66.4 million, or $27.07 per share.

Treasury Shares

From time to time, in accordance with the Company’s Share Repurchase Program, the Company may repurchase shares of its common stock in the open market. Until any such shares are retired, the cost of the shares is included in common stock held in treasury at cost on the consolidated balance sheet. The number of shares of common stock classified as treasury shares reduces the number of shares of the Company’s common stock outstanding and, accordingly, are considered in the weighted average number of shares outstanding during the period. During the six months ended June 30, 2022 and 2021, the Company retired 69,567 and zero shares of its common stock held in treasury. As of June 30, 2022, the Company did not have any shares of common stock held in treasury.

Long Term Incentive Plan

On June 15, 2016, the Company’s stockholders approved a long-term incentive plan (the “2016 LTIP”) and the Company filed a registration statement on Form S-8 registering 2,100,000 shares of common stock, par value $0.01 per share, which the Company may issue pursuant to the 2016 LTIP. The 2016 LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of stock options, appreciation rights, restricted shares, restricted stock units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common stock or factors that may influence the value of the Company’s common stock, plus cash incentive awards, for the purpose of providing the Company’s directors, officers and other key employees (and those of the Adviser and the Company’s subsidiaries), the Company’s non-employee directors, and potentially certain non-employees who perform employee-type functions, incentives and rewards for performance.

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Restricted Stock Units

Under the 2016 LTIP, restricted stock units may be granted to the Company’s directors, officers and other key employees (and those of the Adviser and the Company’s subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Adviser and annually for directors. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. On February 21, 2019, pursuant to the 2016 LTIP, the Company granted 186,662 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On February 20, 2020, pursuant to the 2016 LTIP, the Company granted 168,183 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On May 11, 2020, pursuant to the 2016 LTIP, the Company granted 116,852 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On February 18, 2021, pursuant to the 2016 LTIP, the Company granted 204,663 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On February 17, 2022, pursuant to the 2016 LTIP, the Company granted 142,159 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of June 30, 2022:

	2022
	Number of Units				Weighted Average Grant Date Fair Value
Outstanding January 1,		589,283			$	39.17
Granted		142,159				83.88
Vested		(202,519	)	(1)		35.34
Outstanding June 30,		528,923			$	52.66

(1) Certain key employees of the Adviser elected to net the taxes owed upon vesting against the shares issued resulting in 164,851 shares being issued as shown on the Consolidated Statement of Stockholders’ Equity.

The following table contains information regarding the vesting of restricted stock units under the 2016 LTIP for the next five calendar years subsequent to June 30, 2022:

	Shares Vesting
	February		May		Total
2023		139,095		22,019		161,114
2024		132,699		22,017		154,716
2025		97,811		22,017		119,828
2026		66,114		—		66,114
2027		27,151		—		27,151
Total		462,870		66,053		528,923

As of June 30, 2022, the Company had issued 857,107 shares of common stock under the 2016 LTIP. For the three months ended June 30, 2022 and 2021, the Company recognized approximately $2.0 million and $1.8 million, respectively, of equity-based compensation expense related to grants of restricted stock units. For the six months ended June 30, 2022 and 2021, the Company recognized approximately $3.9 million and $3.4 million, respectively, of equity-based compensation expense related to grants of restricted stock units.  As of June 30, 2022, the Company had recognized a liability of approximately $1.3 million related to dividends earned on restricted stock units that are payable in cash upon vesting.

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At-the-Market Offering

On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of Jefferies LLC (“Jefferies”), Raymond James & Associates, Inc. (“Raymond James”), KeyBanc Capital Markets Inc. (“KeyBanc”) and Truist Securities (f/k/a SunTrust Robinson Humphrey, Inc., “SunTrust,” and together with Jefferies, Raymond James and KeyBanc, the “ATM Sales Agents”), pursuant to which the Company may issue and sell from time to time shares of the Company’s common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the “2020 ATM Program”).  Sales of shares of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act, including, without limitation, sales made by means of ordinary brokers’ transactions on the New York Stock Exchange, to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.  In addition to the issuance and sale of shares of common stock, the Company may enter into forward sale agreements with each of Jefferies, KeyBanc and Raymond James, or their respective affiliates, through the 2020 ATM Program.  During the six months ended June 30, 2022, the Company issued 52,091 shares of common stock at an average price of $83.16 per share for gross proceeds of $4.3 million under the 2020 ATM Program. The Company paid approximately $0.1 million in fees to the 2020 ATM Sales Agents with respect to such sales and incurred other issuance costs of approximately $0.2 million, both of which were netted against the gross proceeds and recorded in additional paid in capital. The following table contains summary information of the 2020 ATM Program since its inception:

Gross proceeds	$	62,310,967
Common shares issued		1,120,910
Gross average sale price per share	$	55.59
Sales commissions	$	934,665
Offering costs		1,253,360
Net proceeds		60,122,942
Average price per share, net	$	53.64

9. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of the Company’s common stock outstanding, which excludes any unvested restricted stock units issued pursuant to the 2016 LTIP. Diluted earnings (loss) per share is computed by adjusting basic earnings (loss) per share for the dilutive effect of the assumed vesting of restricted stock units. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.

The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted earnings (loss) per share, as they are exchangeable for common stock on a one-for-one basis. The income (loss) allocable to such units is allocated on this same basis and reflected as net income (loss) attributable to redeemable noncontrolling interests in the OP in the accompanying consolidated statements of operations and comprehensive income (loss). As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings (loss) per share. See Note 10 for additional information.

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The following table sets forth the computation of basic and diluted loss per share for the periods presented (in thousands, except per share amounts):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021
Numerator for loss per share:
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership			(30	)		(10	)		(44	)		(31	)
Net loss attributable to common stockholders		$	(7,797	)	$	(3,408	)	$	(12,450	)	$	(10,287	)
Denominator for loss per share:
Weighted average common shares outstanding			25,672			25,140			25,646			25,104
Denominator for basic loss per share			25,672			25,140			25,646			25,104
Weighted average unvested restricted stock units			539			613			556			596
Denominator for diluted earnings per share	(1)		25,672			25,140			25,646			25,104
Loss per weighted average common share:
Basic		$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
Diluted		$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)

(1) If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the diluted earnings per share calculation.

10. Noncontrolling Interests

Redeemable Noncontrolling Interests in the OP

Interests in the OP held by limited partners are represented by OP Units. Net income (loss) is allocated to holders of OP Units based upon net income (loss) attributable to common stockholders and the weighted average number of OP Units outstanding to total common shares plus OP Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to OP Units in accordance with the terms of the partnership agreement of the OP. Each time the OP distributes cash to the Company, outside limited partners of the OP receive their pro-rata share of the distribution. Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP.

On April 1, 2022, the Company acquired The Adair and Estates on Maryland, from investors in a Delaware Statutory Trust managed by an entity affiliated with the Adviser, for total consideration of $143.4 million (the “Purchase Price”). The Purchase Price consisted of 26,558 OP Units (valued at $2.6 million) that were issued on April 1, 2022 and approximately $71.1 million in cash. The fair value of the OP Units was determined based on the April 1, 2022 share price of NXRT as the OP units are convertible to common stock on a one to one basis.

The following table sets forth the redeemable noncontrolling interests in the OP for the six months ended June 30, 2022 (in thousands):

Redeemable noncontrolling interests in the OP, December 31, 2021	$	6,139
Net loss attributable to redeemable noncontrolling interests in the OP		(44	)
Other comprehensive income attributable to redeemable noncontrolling interests in the OP		231
Contributions from redeemable noncontrolling interests in the OP		(562	)
Distributions to redeemable noncontrolling interests in the OP		125
Issuance of operating partnership units for purchase of noncontrolling interests		2,444
Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP		(1,311	)
Redeemable noncontrolling interests in the OP, June 30, 2022	$	7,022

Noncontrolling Interests

Noncontrolling interests have in the past and may in the future be comprised of joint venture partners’ interests in joint ventures the Company consolidates. When applicable, the Company reports its joint venture partners’ interests in its consolidated joint ventures and other subsidiary interests held by third parties as noncontrolling interests. The Company records these noncontrolling interests at their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investment’s net income or loss, equity contributions, return of capital, and distributions. The adjustment to reflect redemption value of redeemable noncontrolling interests in the OP records the OP Units at the greater of their carrying value or their redemption value using the Company’s stock price

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at each balance sheet date. Generally, these noncontrolling interests are not redeemable by the equity holders and are presented as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder based on its economic ownership percentage.

Fees and Reimbursements to BH and its Affiliates

The Company has entered into management agreements with BH Management Services, LLC (“BH”), the Company’s property manager and an independently owned third party, who manages the Company’s properties and supervises the implementation of the Company’s value-add program. BH is an affiliate of BH Equity, who was a noncontrolling interest member of the Company’s joint ventures prior to the BH Buyout on June 30, 2017. Through BH Equity’s noncontrolling interests in such joint ventures, BH Equity was deemed to be a related party. With the completion of the BH Buyout, BH Equity is no longer deemed to be a related party. BH Equity became a noncontrolling limited partner of the OP upon execution of the Amendment. BH and its affiliates do not have common ownership in any joint venture with the Adviser; there is also no common ownership between BH and its affiliates and the Adviser.

The property management fee paid to BH is approximately 3% of the monthly gross income from each property managed. Currently, BH manages all of the Company’s properties. Additionally, the Company may pay BH certain other fees, including: (1) a fee of $15-25 per unit for the one-time setup and inspection of properties, (2) a construction supervision fee of 5-6% of total project costs, which is capitalized, (3) acquisition fees and due diligence costs reimbursements, and (4) other owner approved fees at $55 per hour. BH also acts as a paymaster for the properties and is reimbursed at cost for various operating expenses it pays on behalf of the properties. The following is a summary of fees that the properties incurred to BH and its affiliates, as well as reimbursements paid to BH from the properties for various operating expenses, for the three and six months ended June 30, 2022 and 2021 (in thousands):

		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2022		2021		2022		2021
Fees incurred
Property management fees	(1)	$	1,904	$	1,510	$	3,654	$	2,989
Construction supervision fees	(2)		440		302		765		556
Design fees	(2)		47		24		47		78
Acquisition fees	(3)		231		275		231		275
Aerwave fees	(4)		221		—		346		—
Reimbursements
Payroll and benefits	(4)		5,640		4,819		10,804		9,057
Other reimbursements	(5)		1,134		857		2,161		1,682

(1) Included in property management fees on the consolidated statements of operations and comprehensive income (loss).

(2) Capitalized on the consolidated balance sheets and reflected in buildings and improvements.

(3) Includes due diligence costs. Acquisition fees are capitalized to real estate assets on the consolidated balance sheets.

(4) Included in property operating expenses on the consolidated statements of operations and comprehensive income (loss).

(5) Includes property operating expenses such as repairs and maintenance costs and certain property general and administrative expenses, which are included on the consolidated statements of operations and comprehensive income (loss).

11. Related Party Transactions

Advisory and Administrative Fee

In accordance with the Advisory Agreement, the Company pays the Adviser an advisory fee equal to 1.00% of the Average Real Estate Assets (as defined below). The duties performed by the Company’s Adviser under the terms of the Advisory Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third party service providers, managing the Company’s properties or overseeing the third party property manager, formulating an investment strategy for the Company and selecting suitable properties and investments, managing the Company’s outstanding debt and its interest rate exposure through derivative instruments, determining when to sell assets, and managing the value-add program or overseeing a third party vendor that implements the value-add program. “Average Real Estate Assets” means the average of the aggregate book value of Real Estate Assets before reserves for depreciation or other non-cash reserves, computed by taking the average of the book value of real estate assets at the end of each month (1) for which any fee under the Advisory Agreement is calculated or (2) during the year for which any expense reimbursement under the Advisory Agreement is calculated. “Real Estate Assets” is defined broadly in the Advisory Agreement to include, among other things, investments in real estate-related securities and mortgages and reserves for capital expenditures (the value-add program). The advisory fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the advisory fee in shares of common stock, subject to certain limitations.

In accordance with the Advisory Agreement, the Company also pays the Adviser an administrative fee equal to 0.20% of the Average Real Estate Assets. The administrative fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the administrative fee in shares of common stock, subject to certain limitations.

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The advisory and administrative fees paid to the Adviser on the Contributed Assets (as defined in the Advisory Agreement) are subject to an annual cap of approximately $5.4 million (the “Contributed Assets Cap”) (see “Expense Cap” below).

Pursuant to the terms of the Advisory Agreement, the Company will reimburse the Adviser for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. “Operating Expenses” include legal, accounting, financial and due diligence services performed by the Adviser that outside professionals or outside consultants would otherwise perform, the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Adviser required for the Company’s operations, and compensation expenses under the 2016 LTIP. Operating Expenses do not include expenses for the advisory and administrative services described in the Advisory Agreement. Certain Operating Expenses, such as the Company’s ratable share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses incurred by the Adviser or its affiliates that relate to the operations of the Company, may be billed monthly to the Company under a shared services agreement. “Offering Expenses” include all expenses (other than underwriters’ discounts) in connection with an offering, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the six months ended June 30, 2022 and 2021, the Adviser did not bill any Operating Expenses or Offering Expenses to the Company and any such expenses the Adviser incurred during the periods are considered to be permanently waived.

Expense Cap

Pursuant to the terms of the Advisory Agreement, expenses paid or incurred by the Company for operating expenses and advisory and administrative fees payable to the Adviser and Operating Expenses will not exceed 1.5% of Average Real Estate Assets per calendar year (or part thereof that the Advisory Agreement is in effect (the “Expense Cap”)). The Expense Cap does not limit the reimbursement of expenses related to Offering Expenses. The Expense Cap also does not apply to legal, accounting, financial, due diligence and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation or other events outside the Company’s ordinary course of business or any out-of-pocket acquisitions or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets. Also, advisory and administrative fees are further limited on Contributed Assets to approximately $5.4 million in any calendar year. Contributed Assets refers to all Real Estate Assets contributed to the Company as part of its spin-off. The Contributed Assets Cap is not reduced for dispositions of such assets subsequent to its spin-off. Advisory and administrative fees on New Assets are not subject to the above limitation and are based on an annual rate of 1.2% on Average Real Estate Assets, but are subject to the Expense Cap. New Assets are all Real Estate Assets that are not Contributed Assets.

For the three months ended June 30, 2022 and 2021, the Company incurred advisory and administrative fees of $1.9 million and $1.9 million, respectively. For the three months ended June 30, 2022 and 2021, the Adviser elected to voluntarily waive the advisory and administrative fees of approximately $5.2 million and $4.1 million, respectively. For the six months ended June 30, 2022 and 2021, the Company incurred advisory and administrative fees of $3.7 million and $3.8 million, respectively. For the six months ended June 30, 2022 and 2021, the Adviser elected to voluntarily waive the advisory and administrative fees of $10.1 million and $8.1 million, respectively. The advisory and administrative fees waived by the Adviser are considered to be permanently waived for the periods. The Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion.

Other Related Party Transactions

The Company has in the past, and may in the future, utilize the services of affiliated parties. For the six months ended June 30, 2022 and 2021, the Company paid approximately $0.1 million and $0.0 million, respectively, to NexBank Title, Inc. (“NexBank Title”). NexBank Title is an affiliate of the Adviser through common beneficial ownership. NexBank Title provides title insurance and work related to providing title insurance on properties related to acquisitions, dispositions and refinancing transactions. These amounts are either capitalized as real estate assets or deferred financing costs, expensed as loss on extinguishment of debt and modification costs, or expensed as selling costs when determining gain (loss) on sales of real estate, depending on the appropriate accounting as determined for each specific transaction. The Company holds multiple operating accounts at NexBank Capital, Inc. (“NexBank”), an affiliate of the Adviser through common beneficial ownership.

On July 30, 2021, three of our property-owning subsidiaries entered into agreements with NLMF Holdco, LLC, an entity under common control with our Adviser and in which we own a 10% equity interest. As of June 30, 2022, the Company has funded approximately $0.3 million to NLMF Holdco, LLC which is included in prepaid and other assets on the consolidated balance sheet of the Company. For the six months ended June 30, 2022, the Company incurred expenses of $0.1 million for fiber internet service which is included in property operating expenses on the consolidated statement of operations and comprehensive loss.  Additionally, on July 30, 2021, we entered into agreements with NLMF Leaseco, LLC, which is controlled by Matt McGraner, one of our officers. We expect that these actions will provide faster, more reliable and lower cost internet to our residents.

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On April 1, 2022, the Company acquired The Adair and Estates on Maryland, from investors in a Delaware Statutory Trust managed by an entity affiliated with the Adviser, for total consideration of $143.4 million (the “Purchase Price”). The Purchase Price consisted of 26,558 OP Units (valued at $2.6 million) that were issued on April 1, 2022 and approximately $71.1 million in cash. The fair value of the OP Units was determined based on the April 1, 2022 share price of NXRT as the OP units are convertible to common stock on a one to one basis.

12. Commitments and Contingencies

Commitments

In the normal course of business, the Company enters into various rehabilitation construction related purchase commitments with parties that provide these goods and services. In the event the Company were to terminate rehabilitation construction services prior to the completion of projects, the Company could potentially be committed to satisfy outstanding or uncompleted purchase orders with such parties. As of June 30, 2022, management does not anticipate any material deviations from schedule or budget related to rehabilitation projects currently in process.

The Company’s agreement with NLMF Holdco, LLC may result in additional funding requirements to cover future project costs. The maximum exposure of potential commitments is expected to be no more than $4.0 million. As of June 30, 2022, the Company has funded approximately $0.3 million to NLMF Holdco, LLC which is included in prepaid and other assets on the consolidated balance sheet of the Company.

Contingencies

In the normal course of business, the Company is subject to claims, lawsuits, and legal proceedings. While it is not possible to ascertain the ultimate outcome of all such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated balance sheets or consolidated statements of operations and comprehensive income (loss) of the Company. The Company is not involved in any material litigation nor, to management’s knowledge, is any material litigation currently threatened against the Company or its properties or subsidiaries.

Environmental liabilities could have a material adverse effect on the Company’s business, assets, cash flows or results of operations. As of June 30, 2022, the Company was not aware of any environmental liabilities. There can be no assurance that material environmental liabilities do not exist.

Self-Insurance Program

On March 1, 2021, the Adviser entered into a self-insurance policy resulting in an aggregate amount of $2,468,750 (the “2021 Aggregate Amount”) which is allocated across properties managed by the Adviser with approximately $1.6 million being allocated to the Company. As of December 31, 2021, all of the $1.6 million of the 2021 Aggregate Amount allocated to the Company has been prepaid. Under ASC 450-20 “Loss Contingencies”, the Company does not reserve for the 2021 Aggregate Amount or any portion thereof until a claim is made and the amount of the claim and the timing of payment on the claim can be reasonably estimated.  For the period from March 1, 2021 to February 28, 2022, the Company incurred claims related to its entire allocated 2021 Aggregate Amount at Old Farm and Silverbrook.

On March 1, 2022, the Adviser entered into a new policy resulting in a new aggregate amount of $2,497,500 (the “2022 Aggregate Amount”) which is allocated across properties managed by the Adviser with approximately $1.8 million being allocated to the Company. Under ASC 450-20 “Loss Contingencies”, the Company does not reserve for the 2021 Aggregate Amount or any portion thereof until a claim is made and the amount of the claim and the timing of payment on the claim can be reasonably estimated.  For the period from March 1, 2022 to June 30, 2022, the Company incurred claims at Six Forks Station, Parc500, Hollister Place and Arbors of Brentwood totaling approximately $2.1 million.

13. Subsequent Events

Dividends Declared

On July 25, 2022, the Company’s Board approved a quarterly dividend of $0.38 per share, payable on September 30, 2022 to stockholders of record on September 15, 2022.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion and analysis of our financial condition and our historical results of operations. The following should be read in conjunction with our financial statements and accompanying notes included herein and with our annual report on Form 10-K for the year ended December 31, 2021 (our “Annual Report”), filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2022. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those projected, forecasted, or expected in these forward-looking statements as a result of various factors, including, but not limited to, those discussed below and elsewhere in this quarterly report. See “Cautionary Statement Regarding Forward-Looking Statements” in this report, and “Risk Factors” in Part I, Item 1A, “Risk Factors” of our Annual Report.

Overview

As of June 30, 2022, our Portfolio consisted of 41 multifamily properties primarily located in the Southeastern and Southwestern United States encompassing 15,387 units of apartment space that was approximately 94.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,387. Substantially all of our business is conducted through the OP. We own the Portfolio through the OP and our TRS. The OP owns approximately 99.9% of the Portfolio; our TRS owns approximately 0.1% of the Portfolio. The OP GP is the sole general partner of the OP. As of June 30, 2022, there were 26,050,945 OP Units outstanding, of which 25,951,154, or 99.6%, were owned by us, and 99,791, or 0.4%, owned by unaffiliated limited partners (see Note 10 to our consolidated financial statements).

We are primarily focused on directly or indirectly acquiring, owning, and operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. We generate revenue primarily by leasing our multifamily properties. We intend to employ targeted management and a value-add program at a majority of our properties in an attempt to improve rental rates and the net operating income (“NOI”) at our properties and achieve long-term capital appreciation for our stockholders. We are externally managed by the Adviser through the Advisory Agreement, by and among the OP, the Adviser and us. The Advisory Agreement was renewed on February 14, 2022 for a one-year term. The Adviser is wholly owned by NexPoint Advisors, L.P.

On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of Jefferies LLC (“Jefferies”), Raymond James & Associates, Inc. (“Raymond James”), KeyBanc Capital Markets Inc. (“KeyBanc”) and Truist Securities (f/k/a SunTrust Robinson Humphrey, Inc., “SunTrust,” and together with Jefferies, Raymond James and KeyBanc, the “ATM Sales Agents”), pursuant to which the Company may issue and sell from time to time shares of the Company’s common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the “2020 ATM Program”).  Sales of shares of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act, including, without limitation, sales made by means of ordinary brokers’ transactions on the New York Stock Exchange, to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.  In addition to the issuance and sale of shares of common stock, the Company may enter into forward sale agreements with each of Jefferies, KeyBanc and Raymond James, or their respective affiliates, through the 2020 ATM Program.  During the six months ended June 30, 2022, the Company issued 52,091 shares of common stock at an average price of $83.16 per share for gross proceeds of $4.3 million under the 2020 ATM Program. The Company paid approximately $0.1 million in fees to the ATM Sales Agents with respect to such sales and incurred other issuance costs of approximately $0.2 million, both of which were netted against the gross proceeds and recorded in additional paid in capital (see Note 8 to our consolidated financial statements).

We have elected to be taxed as a REIT under Sections 856 through 860 of the Code, and expect to continue to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we will be subject to federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2022 and 2021.

On October 15, 2021, a lawsuit was filed by a trust set up in connection with the Highland bankruptcy in the United States Bankruptcy Court for the Northern District of Texas. The lawsuit makes claims against a number of entities, including our Sponsor and James Dondero. The lawsuit does not include claims related to our business or our assets or operations. Our Sponsor and Mr. Dondero have informed us they believe the lawsuit has no merit and they intend to vigorously defend against the claims. We do not expect the lawsuit will have a material effect on our business, results of operations or financial condition.

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Components of Our Revenues and Expenses

Revenues

Rental income. Our earnings are primarily attributable to the rental revenue from our multifamily properties. We anticipate that the leases we enter into for our multifamily properties will typically be for one year or less on average. Also included are utility reimbursements, late fees, pet fees, and other rental fees charged to tenants.

Other income. Other income includes ancillary income earned from tenants such as non-refundable fees, application fees, laundry fees, cable TV income, and other miscellaneous fees charged to tenants.

Expenses

Property operating expenses. Property operating expenses include property maintenance costs, salary and employee benefit costs, utilities, casualty-related expenses and recoveries and other property operating costs.

Real estate taxes and insurance. Real estate taxes include the property taxes assessed by local and state authorities depending on the location of each property. Insurance includes the cost of commercial, general liability, and other needed insurance for each property.

Property management fees. Property management fees include fees paid to BH, our property manager, or other third party management companies for managing each property (see Note 10 to our consolidated financial statements).

Advisory and administrative fees. Advisory and administrative fees include the fees paid to our Adviser pursuant to the Advisory Agreement (see Note 11 to our consolidated financial statements).

Corporate general and administrative expenses. Corporate general and administrative expenses include, but are not limited to, audit fees, legal fees, listing fees, board of director fees, equity-based compensation expense, investor relations costs and payments of reimbursements to our Adviser for operating expenses. Corporate general and administrative expenses and the advisory and administrative fees paid to our Adviser (including advisory and administrative fees on properties defined in the Advisory Agreement as New Assets) will not exceed 1.5% of Average Real Estate Assets per calendar year (or part thereof that the Advisory Agreement is in effect), calculated in accordance with the Advisory Agreement, or the Expense Cap. The Expense Cap does not limit the reimbursement by us of expenses related to securities offerings paid by our Adviser. The Expense Cap also does not apply to legal, accounting, financial, due diligence, and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation, or other events outside our ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets.  Additionally, in the sole discretion of the Adviser, the Adviser may elect to waive certain advisory and administrative fees otherwise due.  If advisory and administrative fees are waived in a period, the waived fees for that period are considered to be waived permanently and the Adviser may not be reimbursed in the future.

Property general and administrative expenses. Property general and administrative expenses include the costs of marketing, professional fees, general office supplies, and other administrative related costs of each property.

Depreciation and amortization. Depreciation and amortization costs primarily include depreciation of our multifamily properties and amortization of acquired in-place leases.

Other Income and Expense

Interest expense. Interest expense primarily includes the cost of interest expense on debt, the amortization of deferred financing costs and the related impact of interest rate derivatives used to manage our interest rate risk.

Loss on extinguishment of debt and modification costs. Loss on extinguishment of debt and modification costs includes prepayment penalties and defeasance costs, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment.

Casualty losses. Casualty losses include expenses resulting from damages from an unexpected and unusual event such as a natural disaster. Expenses can include additional payments on insurance premiums, impairment recognized on a property, and other abnormal expenses arising from the related event.  

Miscellaneous income. Miscellaneous income includes proceeds received from insurance for business interruption involving the loss of rental income at a property that has temporarily suspended operations due to an unexpected and unusual event.

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Gain on sales of real estate. Gain on sales of real estate includes the gain recognized upon sales of properties. Gain on sales of real estate is calculated by deducting the carrying value of the real estate and costs incurred to sell the properties from the sales prices of the properties.

Results of Operations for the Three and Six Months Ended June 30, 2022 and 2021

The three months ended June 30, 2022 as compared to the three months ended June 30, 2021

The following table sets forth a summary of our operating results for the three months ended June 30, 2022 and 2021 (in thousands):

	For the Three Months Ended June 30,
	2022			2021			$ Change
Total revenues	$	65,766		$	52,563		$	13,203
Total expenses		(61,567	)		(47,821	)		(13,746	)
Operating income		4,199			4,742			(543	)
Interest expense		(12,402	)		(10,683	)		(1,719	)
Casualty gains		229			2,379			(2,150	)
Miscellaneous income		147			472			(325	)
Loss on extinguishment of debt and modification costs		—			(328	)		328
Net loss		(7,827	)		(3,418	)		(4,409	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(30	)		(10	)		(20	)
Net loss attributable to common stockholders	$	(7,797	)	$	(3,408	)	$	(4,389	)

The change in our net loss for the three months ended June 30, 2022 as compared to our net loss for the three months ended June 30, 2021 primarily relates to a decrease in casualty gains and increases in operating expenses and interest expense, partially offset by an increase in total revenues.

Revenues

Rental income. Rental income was $64.2 million for the three months ended June 30, 2022 compared to $51.0 million for the three months ended June 30, 2021, which was an increase of approximately $13.2 million. The increase between the periods was primarily due to a 23.6% increase in the weighted average monthly effective rent per occupied apartment unit in our Portfolio to $1,387 as of June 30, 2022 from $1,122 as of June 30, 2021. The increase in effective rent was primarily driven by the value-add program that we have implemented, organic growth in rents, and our acquisition activity in 2022 and 2021 and the timing of the transactions.

Other income. Other income was $1.6 million for the three months ended June 30, 2022 compared to $1.5 million for the three months ended June 30, 2021, which was an increase of approximately $0.1 million. The increase between the periods was primarily due to an increase in non-refundable fees of approximately $0.1 million.

Expenses

Property operating expenses. Property operating expenses was $16.7 million for the three months ended June 30, 2022 compared to $11.2 million for the three months ended June 30, 2021, which was an increase of approximately $5.5 million. The increase between periods was primarily due to a $3.0 million increase in casualty losses and a $0.3 million increase in water and sewage expense.

Real estate taxes and insurance. Real estate taxes and insurance costs were $9.5 million for the three months ended June 30, 2022 compared to $8.5 million for the three months ended June 30, 2021, which was an increase of approximately $1.0 million. The increase between the periods was primarily due to our acquisition activity in 2022 and 2021 and the timing of the transactions. The increase between the periods was also due to a $0.5 million, or 6.2%, increase in property taxes and a $0.3 million, or 26.3%, increase in property insurance. Property taxes incurred in the first year of ownership may be significantly less than subsequent years since the purchase price of the property may trigger a significant increase in assessed value by the taxing authority in subsequent years, increasing the costs of real estate taxes.

Property management fees. Property management fees were $1.9 million for the three months ended June 30, 2022 compared to $1.5 million for the three months ended June 30, 2021 which was an increase of $0.4 million. Property management fees are primarily based on total revenues.

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Advisory and administrative fees. Advisory and administrative fees were $1.9 million for the three months ended June 30, 2022 compared to $1.9 million for the three months ended June 30, 2021. For the three months ended June 30, 2022 and 2021, our Adviser elected to voluntarily waive the advisory and administrative fees of approximately $5.2 million and $4.1 million. Our Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion. Advisory and administrative fees may increase in future periods as we acquire additional properties, which will be classified as New Assets.

Corporate general and administrative expenses. Corporate general and administrative expenses were $3.8 million for the three months ended June 30, 2022 compared to $3.0 million for the three months ended June 30, 2021, which was an increase of approximately $0.8 million. The increase between the periods was primarily due to increases of $0.2 million in stock compensation expense and a $0.2 million increase in other professional fees.

Property general and administrative expenses. Property general and administrative expenses were $2.2 million for the three months ended June 30, 2022 compared to $1.8 million for the three months ended June 30, 2021, which was an increase of approximately $0.4 million. The increase between the periods was primarily due to a $0.2 million increase in professional fees and a $0.1 million increase in eviction fees.

Depreciation and amortization. Depreciation and amortization costs were $25.5 million for the three months ended June 30, 2022 compared to $20.0 million for the three months ended June 30, 2021, which was an increase of approximately $5.5 million.  The increase between the periods was primarily due to an increase of $1.5 million in amortization of intangible lease assets and an increase in depreciation expense of approximately $4.1 million, which was primarily due to our acquisition activity in 2022 and 2021 and the timing of the transactions. The amortization of intangible lease assets over a six-month period from the date of acquisition is expected to increase the amortization expense during the initial year of operations for each property.

Other Income and Expense

Interest expense. Interest expense was $12.4 million for the three months ended June 30, 2022 compared to $10.7 million for the three months ended June 30, 2021, which was an increase of approximately $1.7 million. The increase between the periods was primarily due to an increase in interest on debt of approximately $4.4 million, partially offset by a decrease in interest rate swap expense of approximately $2.7 million. The following table details the various costs included in interest expense for the three months ended June 30, 2022 and 2021 (in thousands):

	For the Three Months Ended June 30,
	2022			2021		$ Change
Interest on debt	$	10,786		$	6,388	$	4,398
Amortization of deferred financing costs		734			495		239
Interest rate swap expense		1,066			3,745		(2,679	)
Interest rate caps expense		(184	)		55		(239	)
Total	$	12,402		$	10,683	$	1,719

The six months ended June 30, 2022 as compared to the six months ended June 30, 2021

The following table sets forth a summary of our operating results for the six months ended June 30, 2022 and 2021 (in thousands):

	For the Six Months Ended June 30,
	2022			2021			$ Change
Total revenues	$	126,552		$	104,359		$	22,193
Total expenses		(116,693	)		(96,369	)		(20,324	)
Operating income		9,859			7,990			1,869
Interest expense		(23,038	)		(21,299	)		(1,739	)
Casualty gains		357			2,379			(2,022	)
Miscellaneous income		328			940			(612	)
Loss on extinguishment of debt and modification costs		—			(328	)		328
Net loss		(12,494	)		(10,318	)		(2,176	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(44	)		(31	)		(13	)
Net loss attributable to common stockholders	$	(12,450	)	$	(10,287	)	$	(2,163	)

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The change in our net loss for the six months ended June 30, 2022 as compared to the net loss for the six months ended June 30, 2021 primarily relates to a decrease in casualty gains and increases in operating expenses and interest expense, partially offset by an increase in total revenues.

Revenues

Rental income. Rental income was $123.4 million for the six months ended June 30, 2022 compared to $101.4 million for the six months ended June 30, 2021, which was an increase of approximately $22.0 million. The increase between the periods was primarily due to a 23.6% increase in the weighted average monthly effective rent per occupied apartment unit in our Portfolio to $1,387 as of June 30, 2022 from $1,122 as of June 30, 2021. The increase in effective rent was primarily driven by the value-add program that we have implemented and organic growth in rents in the markets where our properties are located.

Other income. Other income was $3.1 million for the six months ended June 30, 2022 compared to $3.0 million for the six months ended June 30, 2021, which was an increase of approximately $0.1 million. The increase between the periods was primarily due to a $0.3 million increase in internet and tech income.

Expenses

Property operating expenses. Property operating expenses were $30.3 million for the six months ended June 30, 2022 compared to $22.4 million for the six months ended June 30, 2021, which was an increase of approximately $7.9 million. The increase between the periods was primarily due to our acquisition activity in 2022 and 2021 and the timing of the transactions. The increase between the periods was also due to a $4.0 million increase in casualty losses.

Real estate taxes and insurance. Real estate taxes and insurance costs were $18.3 million for the six months ended June 30, 2022 compared to $17.2 million for the six months ended June 30, 2021, which was an increase of approximately $1.1 million. The increase between the periods was primarily due to a $0.7 million, or 4.6%, increase in property taxes and a $0.4 million, or 23.0%, increase in property insurance. Property taxes incurred in the first year of ownership may be significantly less than subsequent years since the purchase price of the property may trigger a significant increase in assessed value by the taxing authority in subsequent years, increasing the cost of real estate taxes.

Property management fees. Property management fees were $3.7 million for the six months ended June 30, 2022 and $3.0 million for the six months ended June 30, 2021. Property management fees are primarily based on total revenues.

Advisory and administrative fees. Advisory and administrative fees were $3.7 million for the six months ended June 30, 2022 and $3.8 million for the six months ended June 30, 2021 which was a decrease of approximately $0.1 million. For the six months ended June 30, 2022 and 2021, our Adviser elected to voluntarily waive the advisory and administrative fees of approximately $10.1 million and $8.1 million. Our Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion. Advisory and administrative fees may increase in future periods as we acquire additional properties, which will be classified as New Assets.

Corporate general and administrative expenses. Corporate general and administrative expenses were $7.3 million for the six months ended June 30, 2022 compared to $5.9 million for the six months ended June 30, 2021, which was an increase of approximately $1.4 million. The increase was primarily due to increases in other professional fees of $0.2 million and stock compensation expense of $0.5 million.

Property general and administrative expenses. Property general and administrative expenses were $4.2 million for the six months ended June 30, 2022 compared to $3.3 million for the six months ended June 30, 2021, which was an increase of approximately $0.9 million. The increase was primarily due to an increase in professional fees of $0.4 million.

Depreciation and amortization. Depreciation and amortization costs were $49.3 million for the six months ended June 30, 2022 compared to $40.7 million for the six months ended June 30, 2021, which was an increase of approximately $8.6 million. The increase between the periods was primarily due a decrease in amortization of intangible lease assets of $1.7 million, partially offset by an increase of $6.8 million in depreciation expense, which was primarily due to our acquisition activity in 2022 and 2021 and the timing of the transactions. The amortization of intangible lease assets over a six-month period from the date of acquisition is expected to increase the amortization expense during the initial year of operations for each property.

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Other Income and Expense

Interest expense. Interest expense was $23.0 million for the six months ended June 30, 2022 compared to $21.3 million for the six months ended June 30, 2021, which was an increase of approximately $1.7 million. The increase between the periods was primarily due an increase in interest on debt of $5.7 million, partially offset by decreases in interest rate swap expense of approximately $2.8 million. The following table details the various costs included in interest expense for the six months ended June 30, 2022 and 2021 (in thousands):

	For the Six Months Ended June 30,
	2022			2021		$ Change
Interest on debt	$	18,475		$	12,791	$	5,684
Amortization of deferred financing costs		1,299			1,056		243
Interest rate swap expense		4,628			7,409		(2,781	)
Interest rate caps expense		(1,364	)		43		(1,407	)
Total	$	23,038		$	21,299	$	1,739

Loss on extinguishment of debt and modification costs.  There were no loss on extinguishment of debt and modification costs for the six months ended June 30, 2022 compared to a $0.3 million loss for the six months ended June 30, 2021, which was a decrease of approximately $0.3 million. The decrease between the periods was due to a decrease in write-off of deferred financing costs of approximately $0.3 million. The following table details the various costs included in loss on extinguishment of debt and modification costs for the six months ended June 30, 2022 and 2021 (in thousands):

	For the Six Months Ended June 30,
	2022		2021		$ Change
Prepayment penalties and defeasance costs	$	—	$	—	$	—
Write-off of deferred financing costs		—		328		(328	)
Debt modification and other extinguishment costs		—		—		—
Total	$	—	$	328	$	(328	)

Non-GAAP Measurements

Net Operating Income and Same Store Net Operating Income

NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (6) casualty-related expenses/(recoveries) and casualty gains (losses), and (7) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

The cost of funds is eliminated from net income (loss) because it is specific to our particular financing capabilities and constraints. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital, which may have changed or may change in the future. Corporate general and administrative expenses, pandemic expense, and non-operating fees to affiliates are eliminated because they do not reflect continuing operating costs of the property owner. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our multifamily properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale, which will usually change from period to period. Casualty-related expenses and recoveries, casualty gains and losses, and losses of extinguished debt and modification costs are excluded because they do not reflect continuing operating costs of the property owner. Entity level general and administrative expenses incurred at the properties and pandemic expenses are eliminated as they are specific to the way in which we have chosen to hold our properties and are the result of our ownership structuring. Also, expenses that are incurred upon acquisition of a property do not reflect continuing operating costs of the property owner. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales. We believe that eliminating these items from net income is useful because the resulting measure captures the actual ongoing revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

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However, the usefulness of NOI is limited because it excludes corporate general and administrative expenses, interest expense, loss on extinguishment of debt and modification costs, acquisition costs, certain fees to affiliates such as advisory and administrative fees, depreciation and amortization expense and gains or losses from the sale of properties, pandemic expenses, and other gains and losses as determined under GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income, which further limits its usefulness.

NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP and discussions elsewhere in “—Results of Operations” regarding the components of net income (loss) that are eliminated in the calculation of NOI. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

We define “Same Store NOI” as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.

NOI and Same Store NOI for the Three and Six Months Ended June 30, 2022 and 2021

The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our Same Store NOI for the three and six months ended June 30, 2022 and 2021 to net loss, the most directly comparable GAAP financial measure (in thousands):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)
Adjustments to reconcile net loss to NOI:
Advisory and administrative fees			1,868			1,900			3,711			3,768
Corporate general and administrative expenses			3,812			2,978			7,298			5,918
Casualty-related expenses/(recoveries)	(1)		2,592			(435	)		3,642			(392	)
Casualty gain			(229	)		(2,379	)		(357	)		(2,379	)
Pandemic expense			—			12			—			35
Property general and administrative expenses	(2)		680			572			1,307			948
Depreciation and amortization			25,548			19,986			49,266			40,744
Interest expense			12,402			10,683			23,038			21,299
Loss on extinguishment of debt and modification costs			—			328			—			328
NOI		$	38,846		$	30,227		$	75,411		$	59,951
Less Non-Same Store
Revenues			(8,053	)		(2,008	)		(13,335	)		(3,926	)
Operating expenses			2,920			1,029			4,795			2,060
Operating income			(11	)		(305	)		(14	)		(645	)
Same Store NOI		$	33,702		$	28,943		$	66,857		$	57,440

(1) Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries).

(2) Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

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Net Operating Income for Our Q2 Same Store and Non-Same Store Properties for the Three Months Ended June 30, 2022 and 2021

There are 34 properties encompassing 13,433 units of apartment space in our same store pool for the three months ended June 30, 2022 and 2021 (our “Q2 Same Store” properties). Our Q2 Same Store properties exclude the following seven properties in our Portfolio as of June 30, 2022: Cutter’s Point, The Verandas at Lake Norman, Creekside at Matthews, Six Forks Station, High House at Cary, The Adair and Estates on Maryland as well as the 67 units that are currently down (see Note 5).

The following table reflects the revenues, property operating expenses and NOI for the three months ended June 30, 2022 and 2021 for our Q2 Same Store and Non-Same Store properties (dollars in thousands):

	For the Three Months Ended June 30,
	2022		2021		$ Change			% Change
Revenues
Same Store
Rental income	$	56,206	$	49,086	$	7,120			14.5	%
Other income		1,507		1,469		38			2.6	%
Same Store revenues		57,713		50,555		7,158			14.2	%
Non-Same Store
Rental income		7,946		1,961		5,985		N/M
Other income		107		47		60		N/M
Non-Same Store revenues		8,053		2,008		6,045		N/M
Total revenues		65,766		52,563		13,203			25.1	%
Operating expenses
Same Store
Property operating expenses (1)		12,583		11,013		1,570			14.3	%
Real estate taxes and insurance		8,566		8,191		375			4.6	%
Property management fees (2)		1,683		1,453		230			15.8	%
Property general and administrative expenses (3)		1,315		1,122		193			17.2	%
Same Store operating expenses		24,147		21,779		2,368			10.9	%
Non-Same Store
Property operating expenses (4)		1,528		583		945		N/M
Real estate taxes and insurance		965		317		648		N/M
Property management fees (2)		229		63		166		N/M
Property general and administrative expenses (5)		198		66		132		N/M
Non-Same Store operating expenses		2,920		1,029		1,891		N/M
Total operating expenses		27,067		22,808		4,259			18.7	%
Operating income
Same Store
Miscellaneous income		136		167		(31	)		-18.6	%
Non-Same Store
Miscellaneous income		11		305		(294	)	N/M
Total operating income		147		472		(325	)		-68.9	%
NOI
Same Store		33,702		28,943		4,759			16.4	%
Non-Same Store		5,144		1,284		3,860			300.6	%
Total NOI	$	38,846	$	30,227	$	8,619			28.5	%

(1) For the three months ended June 30, 2022 and 2021, excludes approximately $361,000 and $(425,000), respectively, of casualty-related expenses/(recoveries).

(2) Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.

(3) For the three months ended June 30, 2022 and 2021, excludes approximately $578,000 and $491,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

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(4) For the three months ended June 30, 2022 and 2021, excludes approximately $2,231,000 and $2,000, respectively, of casualty-related expenses.

(5) For the three months ended June 30, 2022 and 2021, excludes approximately $102,000 and $81,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

See reconciliation of net loss to NOI above under “NOI and Same Store NOI for the Three and Six Months Ended June 30, 2022 and 2021.”

Q2 Same Store Results of Operations for the Three Months Ended June 30, 2022 and 2021

As of June 30, 2022, our Q2 Same Store properties were approximately 94.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,385. As of June 30, 2021, our Q2 Same Store properties were approximately 96.0% leased with a weighted average monthly effective rent per occupied apartment unit of $1,162. For our Q2 Same Store properties, we recorded the following operating results for the three months ended June 30, 2022 as compared to the three months ended June 30, 2021:

Revenues

Rental income. Rental income was $56.2 million for the three months ended June 30, 2022 compared to $49.1 million for the three months ended June 30, 2021, which was an increase of approximately $7.1 million, or 14.5%. The majority of the increase is related to a 19.2% increase in the weighted average monthly effective rent per occupied apartment unit to $1,385 as of June 30, 2022 from $1,162 as of June 30, 2021, partially offset by a 1.5% decrease in occupancy.

Other income. Other income was $1.5 million for the three months ended June 30, 2022, compared to $1.5 million for the three months ended June 30, 2021.

Expenses

Property operating expenses. Property operating expenses were $12.6 million for the three months ended June 30, 2022 compared to $11.0 million for the three months ended June 30, 2021, which was an increase of $1.6 million, or 14.3%. The majority of the increase is related to a $0.9 million, or 20.1% increase in repair and maintenance costs and a $0.4 million, or 9.7% increase in payroll costs.

Real estate taxes and insurance. Real estate taxes and insurance costs were $8.6 million for the three months ended June 30, 2022 compared to $8.2 million for the three months ended June 30, 2021, which was an increase of approximately $0.4 million, or 4.6%. The increase is primarily related to a $0.2 million, or 3.2%, increase in property taxes.

Property management fees. Property management fees were $1.7 million for the three months ended June 30, 2022 compared to $1.5 million for the three months ended June 30, 2021, which was an increase of approximately $0.2 million. The increase between the periods was primarily due to an increase in revenues, which the fee is primarily based on.

Property general and administrative expenses. Property general and administrative expenses were $1.3 million for the three months ended June 30, 2022 compared to $1.1 million for the three months ended June 30, 2021, which was an increase of approximately $0.2 million. The majority of the increase is related to a $0.1 million increase in office operation expenses.

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Net Operating Income for Our Same Store and Non-Same Store Properties for the Six Months Ended June 30, 2022 and 2021

There are 34 properties encompassing 13,433 units of apartment space in our same store pool for the six months ended June 30, 2022 and 2021 (our “Same Store” properties). Our Same Store properties exclude the following seven properties in our Portfolio as of June 30, 2022: Cutter’s Point, The Verandas at Lake Norman, Creekside at Matthews, Six Forks Station, High House at Cary, The Adair and Estates on Maryland as well as the 67 units that are currently down (see Note 5).

The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2022 and 2021 for our Same Store and Non-Same Store properties (dollars in thousands):

	For the Six Months Ended June 30,
	2022		2021		$ Change			% Change
Revenues
Same Store
Rental income	$	110,328	$	97,521	$	12,807			13.1	%
Other income		2,889		2,912		(23	)		-0.8	%
Same Store revenues		113,217		100,433		12,784			12.7	%
Non-Same Store
Rental income		13,121		3,866		9,255		N/M
Other income		214		60		154		N/M
Non-Same Store revenues		13,335		3,926		9,409		N/M
Total revenues		126,552		104,359		22,193			21.3	%
Operating expenses
Same Store
Property operating expenses (1)		24,152		21,578		2,574			11.9	%
Real estate taxes and insurance		16,676		16,597		79			0.5	%
Property management fees (2)		3,289		2,876		413			14.4	%
Property general and administrative expenses (3)		2,557		2,237		320			14.3	%
Same Store operating expenses		46,674		43,288		3,386			7.8	%
Non-Same Store
Property operating expenses (4)		2,505		1,168		1,337		N/M
Real estate taxes and insurance		1,575		633		942		N/M
Property management fees (2)		380		125		255		N/M
Property general and administrative expenses (5)		335		134		201		N/M
Non-Same Store operating expenses		4,795		2,060		2,735		N/M
Total operating expenses		51,469		45,348		6,121			13.5	%
Operating income
Same Store
Miscellaneous income		314		295		19			6.4	%
Non-Same Store
Miscellaneous income		14		645		(631	)	N/M
Total operating income		328		940		(612	)		-65.1	%
NOI
Same Store		66,857		57,440		9,417			16.4	%
Non-Same Store		8,554		2,511		6,043		N/M
Total NOI	$	75,411	$	59,951	$	15,460			25.8	%

(1) For the six months ended June 30, 2022 and 2021, excludes approximately $1,315,000 and $368,000, respectively, of casualty-related recoveries.

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(2) Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP.

(3) For the six months ended June 30, 2022 and 2021, excludes approximately $1,187,000 and $812,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees.

(4) For the six months ended June 30, 2022 and 2021, excludes approximately $(44,000) and $11,000, respectively, of casualty-related expenses.  

(5) For the six months ended June 30, 2022 and 2021, excludes approximately $120,000 and $136,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees.

See reconciliation of net loss to NOI above under “NOI and Same Store NOI for the Three and Six Months Ended June 30, 2022 and 2021.”

Same Store Results of Operations for the Six Months Ended June 30, 2022 and 2021

As of June 30, 2022, our Same Store properties were approximately 94.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,385. As of June 30, 2021, our Same Store properties were approximately 96.0% leased with a weighted average monthly effective rent per occupied apartment unit of $1,162. For our Same Store properties, we recorded the following operating results for the six months ended June 30, 2022 as compared to the six months ended June 30, 2021:

Revenues

Rental income. Rental income was $110.3 million for the six months ended June 30, 2022 compared to $97.5 million for the six months ended June 30, 2021, which was an increase of approximately $12.8 million, or 13.1%. The majority of the increase is related to a 19.2% increase in the weighted average monthly effective rent per occupied apartment unit to $1,385 as of June 30, 2022 from $1,162 as of June 30, 2021, partially offset by a 1.5% decrease in occupancy.

Other income. Other income was $2.9 million for the six months ended June 30, 2022 compared to $2.9 million for the six months ended June 30, 2021.

Expenses

Property operating expenses. Property operating expenses were $24.2 million for the six months ended June 30, 2022 compared to $21.6 million for the six months ended June 30, 2021, which was an increase of approximately $2.6 million, or 11.9%. The majority of the increase is related to a $1.3 million, or 15.3%, increase in repairs and maintenance and a $0.7 million, or 9.7%, increase in payroll.

Real estate taxes and insurance. Real estate taxes and insurance costs were $16.7 million for the six months ended June 30, 2022 compared to $16.6 million for the six months ended June 30, 2021, which was an increase of approximately $0.1 million, or 0.5%. The majority of the increase is related to a $0.3 million, or 11.5%, increase in insurance.

Property management fees. Property management fees were $3.3 million for the six months ended June 30, 2022 compared to $2.9 million for the six months ended June 30, 2021, which was an increase of approximately $0.4 million, or 14.4%. The majority of the increase is related to a $12.8 million, or 13.1%, increase in rental income, which the fee is primarily based on.

Property general and administrative expenses. Property general and administrative expenses were $2.6 million for the six months ended June 30, 2022 compared to $2.2 million for the six months ended June 30, 2021, which was an increase of approximately $0.4 million. The majority of the increase is related to a $0.2 million increase in office operation expenses.  

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FFO, Core FFO and AFFO

We believe that net income, as defined by GAAP, is the most appropriate earnings measure. We also believe that funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), core funds from operations (“Core FFO”) and adjusted funds from operations (“AFFO”) are important non-GAAP supplemental measures of operating performance for a REIT.

Since the historical cost accounting convention used for real estate assets requires depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined by NAREIT as net income computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization. We compute FFO attributable to common stockholders in accordance with NAREIT’s definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to noncontrolling interests and we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders.

Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the ongoing operating performance of our portfolio. Core FFO adjusts FFO to remove items such as losses on extinguishment of debt and modification costs (including prepayment penalties and defeasance costs incurred on the early repayment of debt, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment), casualty-related expenses and recoveries and gains or losses, pandemic expenses, the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing, and the noncontrolling interests (as described above) related to these items. We believe Core FFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities.

AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our Portfolio. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, and the noncontrolling interests (as described above) related to these items. We believe AFFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities.

The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted FFO, Core FFO and AFFO per share, as they are exchangeable for common stock on a one-for-one basis. The FFO, Core FFO and AFFO allocable to such units is allocated on this same basis and reflected in the adjustments for noncontrolling interests in the table below. As such, the assumed conversion of these units would have no net impact on the determination of diluted FFO, Core FFO and AFFO per share. See Note 10 to our consolidated financial statements for additional information.

We believe that the use of FFO, Core FFO and AFFO, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. While FFO, Core FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income (loss) as defined by GAAP and should not be considered as an alternative or substitute to those measures in evaluating our liquidity or operating performance. FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO, Core FFO and AFFO may not be comparable to FFO, Core FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define Core FFO or AFFO differently than we do.

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The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021			% Change (1)
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)		21.1	%
Depreciation and amortization			25,548			19,986			49,266			40,744			20.9	%
Adjustment for noncontrolling interests			(72	)		(50	)		(129	)		(91	)		41.8	%
FFO attributable to common stockholders			17,649			16,518			36,643			30,335			20.8	%
FFO per share - basic		$	0.69		$	0.66		$	1.43		$	1.21			18.2	%
FFO per share - diluted		$	0.69		$	0.66		$	1.43		$	1.21			18.2	%
Loss on extinguishment of debt and modification costs			—			328			—			328		N/M
Casualty-related expenses/(recoveries)			2,592			(435	)		3,642			(392	)	N/M
Casualty gains			(229	)		(2,379	)		(357	)		(2,379	)	N/M
Pandemic expense			—			12			—			35		N/M
Amortization of deferred financing costs - acquisition term notes			326			140			505			349			44.7	%
Adjustment for noncontrolling interests			(10	)		7			(14	)		6		N/M
Core FFO attributable to common stockholders			20,328			14,191			40,419			28,282			42.9	%
Core FFO per share - basic		$	0.79		$	0.56		$	1.58		$	1.13			39.8	%
Core FFO per share - diluted		$	0.79		$	0.56		$	1.58		$	1.13			39.8	%
Amortization of deferred financing costs - long term debt			408			355			794			707			12.3	%
Equity-based compensation expense			2,005			1,796			3,881			3,404			14.0	%
Adjustment for noncontrolling interests			(11	)		(6	)		(17	)		(12	)		41.7	%
AFFO attributable to common stockholders			22,730			16,336			45,077			32,381			39.2	%
AFFO per share - basic		$	0.89		$	0.65		$	1.76		$	1.29			36.4	%
AFFO per share - diluted		$	0.89		$	0.65		$	1.76		$	1.29			36.4	%
Weighted average common stock outstanding - basic			25,672			25,140			25,646			25,104			2.2	%
Weighted average common stock outstanding - diluted			25,672			25,140			25,646			25,104			2.2	%
Dividends declared per common share		$	0.38		$	0.34		$	0.76		$	0.68			11.4	%
FFO Coverage - diluted	(2)	1.81x			1.93x			1.88x			1.77x				6.13	%
Core FFO Coverage - diluted	(2)	2.08x			1.65x			2.08x			1.66x				25.56	%
AFFO Coverage - diluted	(2)	2.33x			1.90x			2.32x			1.89x				22.52	%

(1) Represents the percentage change for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

(2) Indicates coverage ratio of FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period.

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The three months ended June 30, 2022 as compared to the three months ended June 30, 2021

FFO was $17.6 million for the three months ended June 30, 2022 compared to $16.5 million for the three months ended June 30, 2021, which was an increase of approximately $1.1 million. The change in our FFO between the periods primarily relates to an increase in total revenues of $13.2 million, partially offset by increases in operating expenses.

Core FFO was $20.3 million for the three months ended June 30, 2022 compared to $14.2 million for the three months ended June 30, 2021, which was an increase of approximately $6.1 million. The change in our Core FFO between the periods primarily relates to an increase in FFO and a decrease in casualty gains of $2.2 million.

AFFO was $22.7 million for the three months ended June 30, 2022 compared to $16.3 million for the three months ended June 30, 2021, which was an increase of approximately $6.4 million. The change in our AFFO between the periods primarily relates to an increase in Core FFO and an increase in equity-based compensation expense of $0.2 million.

The six months ended June 30, 2022 as compared to the six months ended June 30, 2021

FFO was $36.6 million for the six months ended June 30, 2022 compared to $30.3 million for the six months ended June 30, 2021, which was an increase of approximately $6.3 million. The change in our FFO between the periods primarily relates to an increase in total revenues of $22.2 million, partially offset by an increase in operating expenses.

Core FFO was $40.4 million for the six months ended June 30, 2022 compared to $28.3 million for the six months ended June 30, 2021, which was an increase of approximately $12.1 million. The change in our Core FFO between the periods primarily relates to an increase in FFO and an increase in casualty related expenses of $4.0 million, partially offset by a decrease in loss on extinguishment of debt and modification costs of $0.3 million.

AFFO was $45.1 million for the six months ended June 30, 2022 compared to $32.4 million for the six months ended June 30, 2021, which was an increase of approximately $12.7 million. The change in our AFFO between the periods primarily relates to an increase in Core FFO and an increase of equity-based compensation expense of $0.5 million.

Liquidity and Capital Resources

Our short-term liquidity requirements consist primarily of funds necessary to pay for debt maturities, operating expenses and other expenditures directly associated with our multifamily properties, including:

• capital expenditures to continue our value-add program and to improve the quality and performance of our multifamily properties;

• interest expense and scheduled principal payments on outstanding indebtedness (see “—Obligations and Commitments” below);

• recurring maintenance necessary to maintain our multifamily properties;

• distributions necessary to qualify for taxation as a REIT;

• acquisition of additional properties;

• advisory and administrative fees payable to our Adviser;

• general and administrative expenses;

• reimbursements to our Adviser; and

• property management fees payable to BH.

We expect to meet our short-term liquidity requirements generally through net cash provided by operations and existing cash balances and any unused capacity on the Corporate Credit Facility. As of June 30, 2022, we had approximately $19.3 million of renovation value-add reserves for our planned capital expenditures to implement our value-add program. Renovation value-add reserves are not required to be held in escrow by a third party. We may reallocate these funds, at our discretion, to pursue other investment opportunities or meet our short-term liquidity requirements.

Our long-term liquidity requirements consist primarily of funds necessary to pay for the costs of acquiring additional multifamily properties, renovations and other capital expenditures to improve our multifamily properties and scheduled debt payments and distributions. We expect to meet our long-term liquidity requirements through various sources of capital, which may include a revolving credit facility and future debt or equity issuances, existing working capital, net cash provided by operations, long-term mortgage indebtedness and other secured and unsecured borrowings, and property dispositions. However, there are a number of factors that may have a material adverse effect on our ability to access these capital sources, including the state of overall equity and credit markets, our degree of leverage, our unencumbered asset base and borrowing restrictions imposed by lenders (including as a result of any failure to comply with financial covenants in our existing and future indebtedness), general market conditions for REITs, our operating

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performance and liquidity, market perceptions about us and restrictions on sales of properties under the Code. The Company continues to monitor the impact on COVID-19 and its impact on future rent collections, valuation of real estate investments, impact on cash flow and ability to refinance or repay debt. The success of our business strategy will depend, in part, on our ability to access these various capital sources.

In addition to our value-add program, our multifamily properties will require periodic capital expenditures and renovation to remain competitive. Also, acquisitions, redevelopments, or expansions of our multifamily properties will require significant capital outlays. Long-term, we may not be able to fund such capital improvements solely from net cash provided by operations because we must distribute annually at least 90% of our REIT taxable income, determined without regard to the deductions for dividends paid and excluding net capital gains, to qualify and maintain our qualification as a REIT, and we are subject to tax on any retained income and gains. As a result, our ability to fund capital expenditures, acquisitions, or redevelopment through retained earnings long-term is limited. Consequently, we expect to rely heavily upon the availability of debt or equity capital for these purposes. If we are unable to obtain the necessary capital on favorable terms, or at all, our financial condition, liquidity, results of operations, and prospects could be materially and adversely affected.

On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of the ATM Sales Agents, pursuant to which the Company may issue and sell from time to time shares of the Company’s common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the “2020 ATM Program”).  Sales of shares of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act, including, without limitation, sales made by means of ordinary brokers’ transactions on the New York Stock Exchange, to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.  In addition to the issuance and sale of shares of common stock, the Company may enter into forward sale agreements with each of Jefferies, KeyBanc and Raymond James, or their respective affiliates, through the 2020 ATM Program.  During the six months ended June 30, 2022, the Company issued 52,091 shares of common stock at an average price of $83.16 per share for gross proceeds of $4.3 million under the 2020 ATM Program. The Company paid approximately $0.1 million in fees to the 2020 ATM Sales Agents with respect to such sales and incurred other issuance costs of approximately $0.2 million, both of which were netted against the gross proceeds and recorded in additional paid in capital (see Note 8 to our consolidated financial statements).

We believe that our available cash, expected operating cash flows, and potential debt or equity financings will provide sufficient funds for our operations, anticipated scheduled debt service payments and dividend requirements for the twelve-month period following June 30, 2022.

Cash Flows

The following table presents selected data from our consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 (in thousands):

	For the Six Months Ended June 30,
	2022			2021
Net cash provided by operating activities	$	38,685		$	30,950
Net cash used in investing activities		(165,414	)		(139,764	)
Net cash provided by financing activities		104,251			112,026
Net increase (decrease) in cash, cash equivalents and restricted cash		(22,478	)		3,212
Cash, cash equivalents and restricted cash, beginning of period		88,696			57,015
Cash, cash equivalents and restricted cash, end of period	$	66,218		$	60,227

Cash flows from operating activities. During the six months ended June 30, 2022, net cash provided by operating activities was $38.7 million compared to net cash provided by operating activities of $31.0 million for the six months ended June 30, 2021. The change in cash flows from operating activities was mainly due to an increase in total revenues.

Cash flows from investing activities. During the six months ended June 30, 2022, net cash used in investing activities was $165.4 million compared to net cash used in investing activities of $139.8 million for the six months ended June 30, 2021. The change in cash flows from investing activities was mainly due to our acquisition activity in 2022 and 2021 and disposition activity in 2020 and a decrease in insurance proceeds received from casualty losses.

Cash flows from financing activities. During the six months ended June 30, 2022, net cash provided by financing activities was $104.3 million compared to net cash provided by financing activities of $112.0 million for the six months ended June 30, 2021. The change in cash flows from financing activities was mainly due to an increase in repurchases of common stock of $5.1 million.

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Debt, Derivatives and Hedging Activity

Mortgage Debt

As of June 30, 2022, our subsidiaries had aggregate mortgage debt outstanding to third parties of approximately $1.4 billion at a weighted average interest rate of 3.29% and an adjusted weighted average interest rate of 2.67%. For purposes of calculating the adjusted weighted average interest rate of our mortgage debt outstanding, we have included the weighted average fixed rate of 1.1245% for one-month LIBOR on our combined $1.3 billion notional amount of interest rate swap agreements, which effectively fix the interest rate on $1.3 billion of our floating rate mortgage debt. See Notes 6 and 7 to our consolidated financial statements for additional information.

We have entered into and expect to continue to enter into interest rate swap and cap agreements with various third parties to fix or cap the floating interest rates on a majority of our floating rate mortgage debt outstanding. The interest rate swap agreements generally have a term of four to five years and effectively establish a fixed interest rate on debt on the underlying notional amounts. The interest rate swap agreements involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2022, interest rate swap agreements effectively covered 98% of our $1.3 billion of floating rate mortgage debt outstanding.

The interest rate cap agreements generally have a term of three to four years, cover the outstanding principal amount of the underlying debt and are generally required by our lenders. Under the interest rate cap agreements, we pay a fixed fee in exchange for the counterparty to pay any interest above a maximum rate. As of June 30, 2022, interest rate cap agreements covered $537.1 million of our $1.3 billion of floating rate mortgage debt outstanding. These interest rate cap agreements effectively cap one-month LIBOR on $537.1 million of our floating rate mortgage debt at a weighted average rate of 4.66%.

We intend to invest in additional multifamily properties as suitable opportunities arise and adequate sources of equity and debt financing are available. We expect that future investments in properties, including any improvements or renovations of current or newly acquired properties, will depend on and will be financed by, in whole or in part, our existing cash, future borrowings and the proceeds from additional issuances of common stock or other securities or property dispositions.

Although we expect to be subject to restrictions on our ability to incur indebtedness, we expect that we will be able to refinance existing indebtedness or incur additional indebtedness for acquisitions or other purposes, if needed. However, there can be no assurance that we will be able to refinance our indebtedness, incur additional indebtedness or access additional sources of capital, such as by issuing common stock or other debt or equity securities, on terms that are acceptable to us or at all.

Furthermore, following the completion of our value-add and capital expenditures programs and depending on the interest rate environment at the applicable time, we may seek to refinance our floating rate debt into longer-term fixed rate debt at lower leverage levels.

Corporate Credit Facility

On March 25, 2022, the Company entered into a loan modification agreement by and among the Company, the OP, Truist Bank and the Lenders party thereto, which modified the Company’s existing credit agreement, dated as of June 30, 2021 (as amended and supplemented, the “Corporate Credit Facility”). As of June 30, 2022, there was $350.0 million available for borrowing under the Corporate Credit Facility. Subject to conditions provided in the Corporate Credit Facility, the commitments under Corporate Credit Facility may be increased up to an additional $150.0 million if the lenders agree to increase their commitments or if the lenders agree for the increase to be funded by any additional lender proposed by the Company, through the OP. The Corporate Credit Facility will mature on June 30, 2024 with respect to the revolving commitments, unless the Company exercises its option to voluntarily and permanently reduce all of the revolving commitments before the maturity date or elects to exercise its right and option to extend the facility with respect to the revolving commitments for a single one-year term. As of June 30, 2022, there was $335.0 million in aggregate principal outstanding under the Corporate Credit Facility.

The Corporate Credit Facility is a non-recourse obligation and contains customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the document evidencing the loan, defaults in payments under any other security instrument, and bankruptcy or other insolvency events. As of June 30, 2022, the Company believes it is compliant with all provisions. For additional information regarding our Corporate Credit Facility, see Note 6.

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Interest Rate Swap Agreements

In order to fix a portion of, and mitigate the risk associated with, our floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), we, through the OP, have entered into eleven interest rate swap transactions with KeyBank and two with Truist (collectively the “Counterparties”) with a combined notional amount of $1.3 billion. As of June 30, 2022, the interest rate swaps we have entered into effectively replace the floating interest rate (one-month LIBOR) with respect to $1.3 billion of our floating rate debt outstanding with a weighted average fixed rate of 1.1245%. During the term of these interest rate swap agreements, we are required to make monthly fixed rate payments of 1.1245%, on a weighted average basis, on the notional amounts, while the Counterparties are obligated to make monthly floating rate payments based on one-month LIBOR to us referencing the same notional amounts. For purposes of hedge accounting under FASB ASC 815, Derivatives and Hedging, we have designated these interest rate swaps as cash flow hedges of interest rate risk. See Notes 6 and 7 to our consolidated financial statements for additional information.

The following table contains summary information regarding our outstanding interest rate swaps (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
July 1, 2017	July 1, 2022	KeyBank		100,000		1.7820	%
June 1, 2019	June 1, 2024	KeyBank		50,000		2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000		2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000		1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000		1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500		1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000		0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000		0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000		0.6140	%
			$	1,267,500		1.1245	%	(2)

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

(2) Represents the weighted average fixed rate of the interest rate swaps.

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk with future effective dates (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
September 1, 2026	January 1, 2027	KeyBank	$	92,500		1.7980	%

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

Obligations and Commitments

The following table summarizes our contractual obligations and commitments as of June 30, 2022 for the next five calendar years subsequent to June 30, 2022. We used one-month LIBOR as of June 30, 2022 to calculate interest expense due by period on our floating rate debt and net interest expense due by period on our interest rate swaps.

		Payments Due by Period (in thousands)
		Total		2022		2023		2024		2025		2026		Thereafter
Operating Properties Mortgage Debt
Principal payments		$	1,358,675	$	650	$	21,003	$	394,952	$	205,738	$	423,149	$	313,183
Interest expense	(1)		143,022		18,539		36,018		29,288		22,626		15,672		20,879
Total		$	1,501,697	$	19,189	$	57,021	$	424,240	$	228,364	$	438,821	$	334,062
Credit Facility
Principal payments		$	335,000	$	—	$	—	$	335,000	$	—	$	—	$	—
Interest expense			28,436		7,148		14,231		7,057		—		—		—
Total		$	363,436	$	7,148	$	14,231	$	342,057	$	—	$	—	$	—
Total contractual obligations and commitments		$	1,865,133	$	26,337	$	71,252	$	766,297	$	228,364	$	438,821	$	334,062

(1) Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of June 30, 2022, we had entered into eleven interest rate swap transactions with a combined notional amount of $1.3 billion. We have allocated the total impact of

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expected settlements on the $1.3 billion notional amount of interest rate swaps to ‘Operating Properties Mortgage Debt.’ We used one-month LIBOR as of June 30, 2022 to determine our expected settlements through the terms of the interest rate swaps.

Corporate Credit Facility

The Corporate Credit Facility will mature on June 30, 2024 with respect to the revolving commitments, unless the Company exercises its option to voluntarily and permanently reduce all of the revolving commitments before the maturity date or elects to exercise its right and option to extend the facility with respect to the revolving commitments for a single one-year term.

Advisory Agreement

Our Advisory Agreement requires that we pay our Adviser an annual advisory and administrative fee of 1.2%. The advisory and administrative fees paid to the Adviser on the Contributed Assets (as defined in the Advisory Agreement) are subject to an annual cap of approximately $5.4 million. For the three months ended June 30, 2022 and 2021, the Company incurred advisory and administrative fees of $1.9 million and $1.9 million, respectively. For the six months ended June 30, 2022 and 2021, advisory and administrative fees were $3.7 million and $3.8 million, respectively.

NLMF Holdco, LLC

The Company’s agreement with NLMF Holdco, LLC may result in additional funding requirements to cover future project costs. The maximum exposure of potential commitments is expected to be no more than $4.0 million. We expect that these actions will provide faster, more reliable and lower cost internet to our residents. We expect to roll out this service to our other properties in the future. As of June 30, 2022, the Company has funded approximately $0.3 million to NLMF Holdco, LLC which is included in prepaid and other assets on the consolidated balance sheet of the Company. For the six months ended June 30, 2022, the Company incurred expenses of $0.1 million for fiber internet service which is included in property operating expenses on the consolidated statement of operations and comprehensive income (loss).

Capital Expenditures and Value-Add Program

We anticipate incurring average annual repairs and maintenance expense of $575 to $725 per apartment unit in connection with the ongoing operations of our business. These expenditures are expensed as incurred. In addition, we reserve, on average, approximately $250 to $350 per apartment unit for non-recurring capital expenditures and/or lender required replacement reserves. When incurred, these expenditures are either capitalized or expensed, in accordance with GAAP, depending on the type of the expenditure. Although we will continuously monitor the adequacy of this average, we believe these figures to be sufficient to maintain the properties at a high level in the markets in which we operate. A majority of the properties in our Portfolio were underwritten and acquired with the premise that we would invest $4,000 to $10,000 per unit in the first 36 months of ownership, in an effort to add value to the asset’s exterior and interiors. In many cases, we reserve cash at the closing of each acquisition to fund these planned capital expenditures and value-add improvements. As of June 30, 2022, we had approximately $19.3 million of renovation value-add reserves for our planned capital expenditures and other expenses to implement our value-add program. The following table sets forth a summary of our capital expenditures related to our value-add program for the three and six months ended June 30, 2022 and 2021 (in thousands):

		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Rehab Expenditures		2022		2021		2022		2021
Interior	(1)	$	5,924	$	3,027	$	10,638	$	5,359
Exterior and common area			2,437		2,321		3,354		5,281
Total rehab expenditures		$	8,361	$	5,348	$	13,992	$	10,640

(1) Includes total capital expenditures during the period on completed and in-progress interior rehabs. For the six months ended June 30, 2022 and 2021, we completed full and partial interior rehabs on 1,181 and 621 units, respectively.  

Income Taxes

We anticipate that we will continue to qualify to be taxed as a REIT for U.S. federal income tax purposes, and we intend to continue to be organized and to operate in a manner that will permit us to qualify as a REIT. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders. As a REIT, we will be subject to federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2022 and 2021.

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If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates, and dividends paid to our stockholders would not be deductible by us in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect our net income (loss) and net cash available for distribution to stockholders. Unless we were entitled to relief under certain Code provisions, we also would be disqualified from re-electing to be taxed as a REIT for the four taxable years following the year in which we failed to qualify to be taxed as a REIT.

We evaluate the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. We have no examinations in progress and none are expected at this time.

We recognize our tax positions and evaluate them using a two-step process. First, we determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, we will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

We had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2022. We and our subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The 2021, 2020 and 2019 tax years remain open to examination by tax jurisdictions to which our subsidiaries and we are subject. When applicable, we recognize interest and/or penalties related to uncertain tax positions on our consolidated statements of operations and comprehensive income (loss).

Dividends

We intend to make regular quarterly dividend payments to holders of our common stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains. As a REIT, we will be subject to federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We intend to make regular quarterly dividend payments of all or substantially all of our taxable income to holders of our common stock out of assets legally available for this purpose, if and to the extent authorized by our Board. Before we make any dividend payments, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and debt service on our debt payable. If our cash available for distribution is less than our taxable income, we could be required to sell assets, borrow funds or raise additional capital to make cash dividends or we may make a portion of the required dividend in the form of a taxable distribution of stock or debt securities.

We will make dividend payments based on our estimate of taxable earnings per share of common stock, but not earnings calculated pursuant to GAAP. Our dividends and taxable income and GAAP earnings will typically differ due to items such as depreciation and amortization, fair value adjustments, differences in premium amortization and discount accretion, and non-deductible general and administrative expenses. Our quarterly dividends per share may be substantially different than our quarterly taxable earnings and GAAP earnings per share. Our Board declared our second quarterly dividend of 2022 of $0.38 per share on April 25, 2022 which was paid on June 30, 2022 and funded out of cash flows from operations.

Off-Balance Sheet Arrangements

As of June 30, 2022 and December 31, 2021, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these judgments, assumptions and estimates for changes that would affect the reported amounts. These estimates are based on management’s historical industry experience and on various other judgments and assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these judgments, assumptions and estimates. Below is a discussion of the accounting policies that we consider critical to understanding our financial condition or results of operations where there is uncertainty or where significant judgment is required. A discussion of recent accounting pronouncements and our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2 “Summary of Significant Accounting Policies” to our consolidated financial statements included in this quarterly report.

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Purchase Price Allocation

Upon acquisition of a property considered to be an asset acquisition, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets based on relative fair value in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805.

The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (see Note 7 to our consolidated financial statements), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.

Impairment

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, we will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company’s impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment.

Inflation

The real estate market has not been affected significantly by inflation in the past several years due to increases in rents nationwide. The majority of our lease terms are for a period of one year or less and reset to market if renewed. The majority of our leases also contain protection provisions applicable to reimbursement billings for utilities. Due to the short-term nature of our leases, we do not believe our results will be materially affected.

Inflation may also affect the overall cost of debt, as the implied cost of capital increases. Currently, the Federal Reserve is raising interest rates in response to or in anticipation of continued inflation concerns. We intend to mitigate these risks through long-term fixed interest rate loans and interest rate hedges, which to date have included interest rate cap and interest rate swap agreements.

REIT Tax Election

We have elected to be taxed as a REIT under Sections 856 through 860 of the Code and expect to continue to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our “REIT taxable income,” as defined by the Code, to our stockholders. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2022 and 2021. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the adverse effect on the value of assets and liabilities that results from a change in market conditions. Our primary market risk exposure is interest rate risk with respect to our indebtedness and counterparty credit risk with respect to our interest rate derivatives. In order to minimize counterparty credit risk, we enter into and expect to enter into hedging arrangements only with major financial institutions that have high credit ratings. As of June 30, 2022, we had total indebtedness of $1.7 billion at a weighted average interest rate of 3.42%, of which $1.6 billion was debt with a floating interest rate. As of June 30, 2022, interest rate swap agreements effectively covered 98% of our $1.3 billion of floating rate mortgage debt outstanding and 0.0% of our $335.0 million floating rate Credit Facility. For purposes of calculating the adjusted weighted average interest rate of the total indebtedness, we have included the weighted average fixed rate of 1.1245% for one-month LIBOR on the $1.3 billion notional amount of interest rate swap agreements that we have entered into as of June 30, 2022.

An increase in interest rates could make the financing of any acquisition by us more costly. Rising interest rates could also limit our ability to refinance our debt when it matures or cause us to pay higher interest rates upon refinancing and increase interest expense on refinanced indebtedness. We may manage, or hedge, interest rate risks related to our borrowings by means of interest rate cap and interest rate swap agreements. As of June 30, 2022, the interest rate cap agreements we have entered into effectively cap one-month LIBOR on $537.1 million of our floating rate mortgage debt at a weighted average rate of 4.66% for the term of the agreements, which is generally three to four years. We also expect to manage our exposure to interest rate risk by maintaining a mix of fixed and floating rates for our indebtedness.

In order to fix a portion of, and mitigate the risk associated with, our floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), we, through the OP, have entered into thirteen interest rate swap transactions with the Counterparties with a combined notional amount of $1.3 billion. The interest rate swaps we have entered into effectively replace the floating interest rate (one-month LIBOR) with respect to that amount with a weighted average fixed rate of 1.1245%. During the term of these interest rate swap agreements, we are required to make monthly fixed rate payments of 1.1245%, on a weighted average basis, on the notional amounts, while the Counterparties are obligated to make monthly floating rate payments based on one-month LIBOR to us referencing the same notional amounts. We have designated these interest rate swaps as cash flow hedges of interest rate risk.

Until our interest rates reach the caps provided by our interest rate cap agreements, each quarter point change in reference rates would result in an approximate increase to annual interest expense costs on our floating rate indebtedness, reduced by any payments due from the Counterparties under the terms of the interest rate swap agreements we had entered into as of June 30, 2022, of the amounts illustrated in the table below for our indebtedness as of June 30, 2022 (dollars in thousands):

Change in Interest Rates	Annual Increase to Interest Expense
0.25%	$	890
0.50%		1,780
0.75%		2,670
1.00%		3,560

There is no assurance that we would realize such expense as such changes in interest rates could alter our liability positions or strategies in response to such changes.

We may also be exposed to credit risk in the derivative financial instruments we use. Credit risk is the failure of the Counterparties to perform under the terms of the derivative financial instruments. If the fair value of a derivative financial instrument is positive, the Counterparties will owe us, which creates credit risk for us. If the fair value of a derivative financial instrument is negative, we will owe the Counterparties and, therefore, do not have credit risk. We seek to minimize the credit risk in derivative financial instruments by entering into transactions with major financial institutions that have high credit ratings.

In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee (“ARRC”) has proposed that the Secured Overnight Financing Rate (“SOFR”) is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. ARRC has proposed a paced market transition plan to SOFR from USD-LIBOR and organizations are currently working on industry wide and company specific transition plans as it relates to derivatives and cash markets exposed to USD-LIBOR. We have material contracts that are indexed to USD-LIBOR and are monitoring this activity and evaluating the related risks.

49

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, our management, including our President and Chief Financial Officer, evaluated, as of June 30, 2022, the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e) and Rule 15d-15(e). Based on that evaluation, our President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2022, to provide reasonable assurance that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Exchange Act and is accumulated and communicated to management, including the President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

We believe, however, that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud or error, if any, within a company have been detected.

Changes in Internal Control over Financial Reporting

There has been no change in internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

50

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by government agencies.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed under Part I, Item 1A, “Risk Factors” in our Annual Report, filed with the SEC on February 18, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Repurchase of Shares

On June 15, 2016, we announced that our Board authorized us to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $30.0 million during a two-year period that was set to expire on June 15, 2018 (the “Share Repurchase Program”).  On April 30, 2018, our Board increased the Share Repurchase Program from $30.0 million to up to $40.0 million and extended it by an additional two years to June 15, 2020. On March 13, 2020, the Board increased the Share Repurchase Program from $40.0 million to up to $100.0 million and extended it to March 12, 2023. During the six months ended June 30, 2022, the Company repurchased 69,567 shares of its common stock. During the six months ended June 30, 2021, the Company repurchased 1,644,697 shares of its common stock. Since the inception of the Share Repurchase Program through June 30, 2022, the Company had repurchased 2,451,722 shares of its common stock, par value $0.01 per share, at a total cost of approximately $66.4 million, or $27.07 per share as shown in the table below:

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that may yet be Purchased under the Plans or Programs (in millions)
Beginning Total		2,382,155	$	25.70		2,382,155	$	38.8
April 1 – April 30		—		—		—		38.8
May 1 – May 31		69,567		73.82		69,567		33.6
June 1 – June 30		—		—		—		33.6
Total as of June 30, 2022		2,451,722	$	27.07		2,451,722	$	33.6

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

51

Item 6. Exhibits

EXHIBIT INDEX

Exhibit Number	Description
31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1+	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002
101.INS*	Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document)
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

+ Furnished herewith.

52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEXPOINT RESIDENTIAL TRUST, INC.

Signature	Title	Date
/s/ Jim Dondero	President and Director	August 2, 2022
Jim Dondero	(Principal Executive Officer)
/s/ Brian Mitts	Chief Financial Officer and Director	August 2, 2022
Brian Mitts	(Principal Financial Officer and Principal Accounting Officer)

53

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jim Dondero, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NexPoint Residential Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2022

/s/ Jim Dondero

Jim Dondero

President

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian Mitts, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NexPoint Residential Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2022

/s/ Brian Mitts

Brian Mitts

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of NexPoint Residential Trust, Inc. (the “Company”) for the period ending June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Jim Dondero, President of the Company, and Brian Mitts, Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.  

Dated: August 2, 2022	/s/ Jim Dondero
	Jim Dondero President (Principal Executive Officer)
Dated: August 2, 2022	/s/ Brian Mitts
	Brian Mitts Chief Financial Officer (Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 02, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	NXRT
Entity Registrant Name	NexPoint Residential Trust, Inc.
Entity Central Index Key	0001620393
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		25,647,942
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-36663
Entity Tax Identification Number	47-1881359
Entity Address, Address Line One	300 Crescent Court
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
City Area Code	(214)
Local Phone Number	276-6300
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	MD
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NYSE

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating Real Estate Investments
Land	$ 395,791	$ 375,857
Buildings and improvements	1,867,698	1,743,866
Intangible lease assets	2,603	2,576
Construction in progress	5,504	6,078
Furniture, fixtures, and equipment	137,601	120,419
Total Gross Operating Real Estate Investments	2,409,197	2,248,796
Accumulated depreciation and amortization	(332,701)	(287,096)
Total Net Real Estate Investments	2,076,496	1,961,700
Cash and cash equivalents	20,463	49,450
Restricted cash	45,755	39,246
Accounts receivable, net	11,919	4,844
Prepaid and other assets	12,087	4,701
Fair market value of interest rate swaps	75,461	3,526
TOTAL ASSETS	2,242,181	2,063,467
Liabilities:
Mortgages payable, net	1,351,172	1,276,285
Credit facility, net	333,203	278,215
Accounts payable and other accrued liabilities	16,673	12,590
Accrued real estate taxes payable	15,124	13,182
Accrued interest payable	4,001	2,491
Security deposit liability	3,119	2,945
Prepaid rents	1,772	1,775
Total Liabilities	1,725,064	1,587,483
Redeemable noncontrolling interests in the Operating Partnership	7,022	6,139
Stockholders' Equity:
Preferred stock, $0.01 par value: 100,000,000 shares authorized; 0 shares issued
Common stock, $0.01 par value: 500,000,000 shares authorized; 25,647,942 and 25,500,567 shares issued and outstanding, respectively	256	255
Additional paid-in capital	407,436	407,803
Accumulated earnings less dividends	28,120	59,209
Accumulated other comprehensive income	74,283	2,578
Total Stockholders' Equity	510,095	469,845
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,242,181	$ 2,063,467

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares, issued	25,647,942	25,500,567
Common stock, shares, outstanding	25,647,942	25,500,567
Common stock, par value	$ 0.01	$ 0.01

XML

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Rental income		$ 64,152	$ 51,047	$ 123,449	$ 101,387
Other income		1,614	1,516	3,103	2,972
Total revenues		65,766	52,563	126,552	104,359
Expenses
Property operating expenses		16,703	11,173	30,299	22,389
Real estate taxes and insurance		9,531	8,508	18,251	17,230
Property management fees	[1]	1,912	1,516	3,669	3,001
Advisory and administrative fees	[2]	1,868	1,900	3,711	3,768
Corporate general and administrative expenses		3,812	2,978	7,298	5,918
Property general and administrative expenses		2,193	1,760	4,199	3,319
Depreciation and amortization		25,548	19,986	49,266	40,744
Total expenses		61,567	47,821	116,693	96,369
Operating income		4,199	4,742	9,859	7,990
Interest expense		(12,402)	(10,683)	(23,038)	(21,299)
Loss on extinguishment of debt and modification costs			(328)		(328)
Casualty gains		229	2,379	357	2,379
Miscellaneous income		147	472	328	940
Net loss		(7,827)	(3,418)	(12,494)	(10,318)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(30)	(10)	(44)	(31)
Net loss attributable to common stockholders		(7,797)	(3,408)	(12,450)	(10,287)
Other comprehensive income (loss)
Unrealized gains (losses) on interest rate derivatives		17,357	(4,805)	71,936	26,537
Total comprehensive income (loss)		9,530	(8,223)	59,442	16,219
Comprehensive income (loss) attributable to redeemable noncontrolling interests in the Operating Partnership		37	(24)	187	49
Comprehensive income (loss) attributable to common stockholders		$ 9,493	$ (8,199)	$ 59,255	$ 16,170
Weighted average common stock outstanding - basic		25,672	25,140	25,646	25,104
Weighted average common stock outstanding - diluted	[3]	25,672	25,140	25,646	25,104
Loss per share - basic		$ (0.30)	$ (0.14)	$ (0.49)	$ (0.41)
Loss per share - diluted		$ (0.30)	$ (0.14)	$ (0.49)	$ (0.41)

[1] Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Company’s operating partnership (see Note 10).

[2] Fees incurred to the Adviser (see Note 11).

[3] If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the diluted earnings per share calculation.

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings (Loss) Less Dividends	Accumulated Other Comprehensive Income (Loss)	Common Stock Held in Treasury at Cost
Beginning Balance, Values at Dec. 31, 2020	$ 407,927	$ 250	$ 376,710	$ 75,321	$ (44,354)
Beginning Balance, Shares at Dec. 31, 2020		25,016,957
Net income (loss) attributable to common stockholders	$ (10,287)			(10,287)
Retirement of common stock held in treasury, Shares	0
Vesting of stock-based compensation	$ 1,918	$ 1	1,917
Vesting of stock-based compensation, Shares		132,970
Issuance of common stock through at-the-market offering, net of offering costs	(262)		(262)
Common stock dividends declared	(17,558)			(17,558)
Other comprehensive income (loss)	26,457				26,457
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership	(925)			(925)
Ending Balance, Values at Jun. 30, 2021	407,270	$ 251	378,365	46,551	(17,897)
Ending Balance, Shares at Jun. 30, 2021		25,149,927
Beginning Balance, Values at Mar. 31, 2021	423,493	$ 251	376,897	59,451	(13,106)
Beginning Balance, Shares at Mar. 31, 2021		25,127,141
Net income (loss) attributable to common stockholders	(3,408)			(3,408)
Vesting of stock-based compensation	1,554		1,554
Vesting of stock-based compensation, Shares		22,786
Issuance of common stock through at-the-market offering, net of offering costs	(86)		(86)
Common stock dividends declared	(8,782)			(8,782)
Other comprehensive income (loss)	(4,791)				(4,791)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership	(710)			(710)
Ending Balance, Values at Jun. 30, 2021	407,270	$ 251	378,365	46,551	(17,897)
Ending Balance, Shares at Jun. 30, 2021		25,149,927
Beginning Balance, Values at Dec. 31, 2021	$ 469,845	$ 255	407,803	59,209	2,578
Beginning Balance, Shares at Dec. 31, 2021	25,500,567	25,500,567
Net income (loss) attributable to common stockholders	$ (12,450)			(12,450)
Repurchases of common stock	$ (5,136)					$ (5,136)
Retirement of common stock held in treasury		$ (1)	(5,135)			5,136
Retirement of common stock held in treasury, Shares	(69,567)	(69,567)
Vesting of stock-based compensation	$ 754	$ 1	753
Vesting of stock-based compensation, Shares		164,851
Issuance of common stock through at-the-market offering, net of offering costs	4,068	$ 1	4,067
Issuance of common stock through at-the-market offering, net of offering costs, Shares		52,091
Common stock dividends declared	(19,950)			(19,950)
Other comprehensive income (loss)	71,705				71,705
Offering costs of the issuance of redeemable noncontrolling interests in the Operating Partnership	(52)		(52)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership	1,311			1,311
Ending Balance, Values at Jun. 30, 2022	$ 510,095	$ 256	407,436	28,120	74,283
Ending Balance, Shares at Jun. 30, 2022	25,647,942	25,647,942
Beginning Balance, Values at Mar. 31, 2022	$ 512,555	$ 257	411,059	44,246	56,993
Beginning Balance, Shares at Mar. 31, 2022		25,700,190
Net income (loss) attributable to common stockholders	(7,797)			(7,797)
Repurchases of common stock	(5,136)					(5,136)
Retirement of common stock held in treasury		$ (1)	(5,135)			$ 5,136
Retirement of common stock held in treasury, Shares		(69,567,000)
Vesting of stock-based compensation	1,634		1,634
Vesting of stock-based compensation, Shares		17,319
Issuance of common stock through at-the-market offering, net of offering costs	(70)		(70)
Common stock dividends declared	(9,974)			(9,974)
Other comprehensive income (loss)	17,290				17,290
Offering costs of the issuance of redeemable noncontrolling interests in the Operating Partnership	(52)		(52)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the Operating Partnership	1,645			1,645
Ending Balance, Values at Jun. 30, 2022	$ 510,095	$ 256	$ 407,436	$ 28,120	$ 74,283
Ending Balance, Shares at Jun. 30, 2022	25,647,942	25,647,942

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement Of Stockholders Equity [Abstract]
Common stock, dividend per share declared	$ 0.38	$ 0.34125	$ 0.76	$ 0.6825

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net loss	$ (12,494)	$ (10,318)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	49,266	40,744
Amortization/write-off of deferred financing costs	1,298	1,401
Change in fair value on derivative instruments included in interest expense	3,266	7,421
Net cash paid on derivative settlements	(6,630)	(7,356)
Amortization/write-off of fair market value adjustment of assumed debt	(101)	(155)
Provision for bad debts, net	3,163	1,641
Vesting of stock-based compensation	3,867	3,406
Insurance proceeds received for business interruption	130	257
Casualty gains (loss)	2,505	(3,755)
Changes in operating assets and liabilities, net of effects of acquisitions:
Operating assets	(7,576)	(3,599)
Operating liabilities	1,991	1,263
Net cash provided by operating activities	38,685	30,950
Cash flows from investing activities
Insurance premiums paid for casualty losses	(1,819)	(1,591)
Insurance proceeds received from casualty losses	333	5,256
Additions to real estate investments	(22,890)	(21,394)
Acquisitions of real estate investments	(141,038)	(122,035)
Net cash used in investing activities	(165,414)	(139,764)
Cash flows from financing activities
Mortgage proceeds received	78,272	66,825
Mortgage payments	(743)	(389)
Credit facilities proceeds received	55,000	250,000
Credit facilities payments		(183,000)
Deferred financing costs paid	(3,851)	(1,999)
Interest rate cap fees paid	(10)	(108)
Proceeds from the issuance of common stock through at-the-market offering, net of offering costs	4,069	(262)
Payments for taxes related to net share settlement of stock-based compensation	(3,113)	(1,489)
Distributions to redeemable noncontrolling interests in the Operating Partnership	(36)
Repurchase of common stock	(5,137)
Dividends paid to common stockholders	(20,200)	(17,552)
Net cash provided by financing activities	104,251	112,026
Net increase (decrease) in cash, cash equivalents and restricted cash	(22,478)	3,212
Cash, cash equivalents and restricted cash, beginning of period	88,696	57,015
Cash, cash equivalents and restricted cash, end of period	66,218	60,227
Supplemental Disclosure of Cash Flow Information
Interest paid	17,066	13,497
Supplemental Disclosure of Noncash Activities
Issuance of operating partnership units for purchase of noncontrolling interests	2,444
Capitalized construction costs included in accounts payable and other accrued liabilities	4,824	2,546
Change in fair value on derivative instruments designated as hedges	71,936	26,537
Other assets acquired from acquisitions	168	96
Liabilities assumed from acquisitions	116	97
Increase (decrease) in dividends payable upon vesting of restricted stock units	(250)	6
Write-off of assets due to casualty losses	4,317	2,028
Write-off of fully amortized in-place leases	$ 2,576	1,675
Write-off of deferred financing costs		$ 328

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Organization and Description of Business

6 Months Ended

Jun. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

NexPoint Residential Trust, Inc. (the “Company”, “we”, “our”) was incorporated in Maryland on September 19, 2014, and has elected to be taxed as a real estate investment trust (“REIT”). The Company is focused on “value-add” multifamily investments primarily located in the Southeastern and Southwestern United States. Substantially all of the Company’s business is conducted through NexPoint Residential Trust Operating Partnership, L.P. (the “OP”), the Company’s operating partnership. The Company owns its properties (the “Portfolio”) through the OP and its wholly owned taxable REIT subsidiary (“TRS”). The OP owns approximately 99.9% of the Portfolio; the TRS owns approximately 0.1% of the Portfolio. The Company’s wholly owned subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC (the “OP GP”), is the sole general partner of the OP. As of June 30, 2022, there were 26,050,945 common units in the OP (“OP Units”) outstanding, of which 25,951,154, or 99.6%, were owned by the Company and 99,791, or 0.4%, were owned by noncontrolling limited partners (see Note 10).

The Company is externally managed by NexPoint Real Estate Advisors, L.P. (the “Adviser”), through an agreement dated March 16, 2015, as amended, and renewed on February 14, 2022 for a one-year term (the “Advisory Agreement”), by and among the Company, the OP and the Adviser. The Adviser conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Advisory Agreement is in effect. All of the Company’s investment decisions are made by the Adviser, subject to general oversight by the Adviser’s investment committee and the Company’s board of directors (the “Board”). The Adviser is wholly owned by NexPoint Advisors, L.P. (the “Sponsor”).

The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a value-add program. Consistent with the Company’s policy to acquire assets for both income and capital gain, the Company intends to hold at least majority interests in its properties for long-term appreciation and to engage in the business of directly or indirectly acquiring, owning, and operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities primarily in the Southeastern and Southwestern United States consistent with its investment objectives. Economic and market conditions may influence the Company to hold properties for different periods of time. From time to time, the Company may sell a property if, among other deciding factors, the sale would be in the best interest of its stockholders.

The Company may allocate up to 30% of the Portfolio to investments in real estate-related debt and securities with the potential for high current income or total returns. These allocations may include first and second mortgages and subordinated, bridge, mezzanine, construction and other loans, as well as debt securities related to or secured by multifamily real estate and common and preferred equity securities, which may include securities of other REITs or real estate companies.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Accounting

The accompanying unaudited consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the six months ended June 30, 2022.

The accompanying unaudited consolidated financial statements have been prepared according to the rules and regulations of the SEC.  Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, all adjustments and eliminations necessary for the fair presentation of the Company’s financial position as of June 30, 2022 and December 31, 2021 and results of operations for the three and six months ended June 30, 2022 and 2021 have been included.  Such adjustments are normal and recurring in nature.  The unaudited information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021 and notes thereto included in its Annual Report on Form 10-K filed with the SEC on February 18, 2022.

Principles of Consolidation

The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries.

Revenue Recognition

The Company’s primary operations consist of rental income earned from its residents under lease agreements typically with terms of one year or less. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. The Company records an allowance to reflect revenue that may not be collectable. This is recorded through a provision for bad debts which is included in rental income in the accompanying consolidated statements of operations and comprehensive income (loss). Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, and pets, administrative, application and other fees and are recognized when earned.  

Purchase Price Allocation

Upon acquisition of a property considered to be an asset acquisition, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805.

The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (“ASC 820”) (see Note 7), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the total consideration to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.

Real estate assets, including land, buildings, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

Land	Not depreciated
Buildings	30 years
Improvements	15 years
Furniture, fixtures, and equipment	3 years
Intangible lease assets	6 months

Construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete, the historical cost of the renovation is placed into service in one of the categories above depending on the type of renovation project and is depreciated over the estimated useful lives as described in the table above.

Impairment

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company’s impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment. As of June 30, 2022, the Company has not recorded any impairment on its real estate assets.

Held for Sale

The Company periodically classifies real estate assets as held for sale when certain criteria are met in accordance with GAAP. At that time, the Company presents the net real estate assets and the net debt associated with the real estate held for sale separately in its consolidated balance sheet, and the Company ceases recording depreciation and amortization expense related to that property. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. As of June 30, 2022, there are no properties held for sale.    

Income Taxes

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and expects to continue to qualify as a REIT. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its stockholders. As a REIT, the Company will be subject to federal income tax on its undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions it pays with respect to any calendar year are less than the sum of (1) 85% of its ordinary income, (2) 95% of its capital gain net income and (3) 100% of its undistributed income from prior years. The Company intends to operate in such a manner so as to qualify as a REIT, but no assurance can be given that the Company will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. The Company had no significant taxes associated with its TRS for the six months ended June 30, 2022 and 2021.

If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. As of June 30, 2022, the Company believes it is in compliance with all applicable REIT requirements.

The Company evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time.

The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2022. The Company and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The 2021, 2020 and 2019 tax years remain open to examination by tax jurisdictions to which the Company and its subsidiaries are subject. When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions on its consolidated statements of operations and comprehensive income (loss).

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2022, the Company transitioned a portion its debt to one-month term SOFR (“Term SOFR”). The Company has taken the ASC 848 elections needed to allow for the hedged forecasted transactions to transition while not discontinuing the associated hedge accounting designations. Application of these hedged accounting expedients preserves the presentation of derivatives consistent with past presentation.  The Company will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Investments in Subsidiaries

6 Months Ended

Jun. 30, 2022

Schedule Of Investments [Abstract]

Investments in Subsidiaries

3. Investments in Subsidiaries

The Company conducts its operations through the OP, which owns properties through single asset limited liability companies that are special purpose entities (“SPEs”). The Company consolidates the SPEs that it controls as well as any VIEs where it is the primary beneficiary. The Company controls and consolidates the OP as a VIE. In connection with its indirect equity investments in the properties acquired, the Company, through the OP and the TRS, directly or indirectly holds 100% of the membership interests in SPEs that directly own the properties. All of the properties the SPEs own are consolidated in the Company’s consolidated financial statements. The assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company.

Additionally, the Company has in the past and may in the future enter into purchase and sale transactions structured as reverse like-kind exchanges (“1031 Exchanges”) under Section 1031 of the Code. For a reverse 1031 Exchange in which the Company purchases a new property prior to selling the property to be matched in the like-kind exchange (the Company refers to the new property being

acquired in the 1031 Exchange prior to the sale of the related property as a “Parked Asset”), legal title to the Parked Asset is held by an Exchange Accommodation Titleholder (“EAT”) engaged to execute the 1031 Exchange until the sale transaction and the 1031 Exchange are completed. The Company, through a wholly owned subsidiary, enters into a master lease agreement with the EAT whereby the EAT leases the acquired property and all other rights acquired in connection with the acquisition to the Company. The term of the master lease agreement is the earlier of the completion of the reverse 1031 Exchange or 180 days from the date that the property was acquired. The EAT is classified as a VIE as it does not have sufficient equity investment at risk to finance its activities without additional subordinated financial support. The Company consolidates the EAT as its primary beneficiary because it has the ability to control the activities that most significantly impact the EAT’s economic performance and the Company retains all of the legal and economic benefits and obligations related to the Parked Assets prior to completion of the 1031 Exchange. As such, the Parked Assets are included in the Company’s consolidated financial statements as VIEs until legal title and control is transferred to the Company upon either completion of the 1031 Exchange or termination of the master lease agreement, at which time they will be consolidated as wholly owned subsidiaries.

As of June 30, 2022, the Company, through the OP and the wholly owned TRS, owned 41 properties through SPEs. The following table represents the Company’s ownership in each property by virtue of its 100% ownership of the SPEs that directly own the title to each property as of June 30, 2022 and December 31, 2021:

				Effective Ownership Percentage at
Property Name		Location	Year Acquired	June 30, 2022			December 31, 2021
Arbors on Forest Ridge		Bedford, Texas	2014		100	%		100	%
Cutter's Point		Richardson, Texas	2014		100	%		100	%
Silverbrook		Grand Prairie, Texas	2014		100	%		100	%
The Summit at Sabal Park		Tampa, Florida	2014		100	%		100	%
Courtney Cove		Tampa, Florida	2014		100	%		100	%
Radbourne Lake		Charlotte, North Carolina	2014		100	%		100	%
Timber Creek		Charlotte, North Carolina	2014		100	%		100	%
Sabal Palm at Lake Buena Vista		Orlando, Florida	2014		100	%		100	%
Cornerstone		Orlando, Florida	2015		100	%		100	%
The Preserve at Terrell Mill		Marietta, Georgia	2015		100	%		100	%
Versailles		Dallas, Texas	2015		100	%		100	%
Seasons 704 Apartments		West Palm Beach, Florida	2015		100	%		100	%
Madera Point		Mesa, Arizona	2015		100	%		100	%
Venue at 8651		Fort Worth, Texas	2015		100	%		100	%
Parc500		West Palm Beach, Florida	2016		100	%		100	%
The Venue on Camelback		Phoenix, Arizona	2016		100	%		100	%
Old Farm		Houston, Texas	2016		100	%		100	%
Stone Creek at Old Farm		Houston, Texas	2016		100	%		100	%
Hollister Place		Houston, Texas	2017		100	%		100	%
Rockledge Apartments		Marietta, Georgia	2017		100	%		100	%
Atera Apartments		Dallas, Texas	2017		100	%		100	%
Crestmont Reserve		Dallas, Texas	2018		100	%		100	%
Brandywine I & II		Nashville, Tennessee	2018		100	%		100	%
Bella Vista		Phoenix, Arizona	2019		100	%		100	%
The Enclave		Tempe, Arizona	2019		100	%		100	%
The Heritage		Phoenix, Arizona	2019		100	%		100	%
Summers Landing		Fort Worth, Texas	2019		100	%		100	%
Residences at Glenview Reserve		Nashville, Tennessee	2019		100	%		100	%
Residences at West Place		Orlando, Florida	2019		100	%		100	%
Avant at Pembroke Pines		Pembroke Pines, Florida	2019		100	%		100	%
Arbors of Brentwood		Nashville, Tennessee	2019		100	%		100	%
Torreyana Apartments		Las Vegas, Nevada	2019		100	%		100	%
Bloom		Las Vegas, Nevada	2019		100	%		100	%
Bella Solara		Las Vegas, Nevada	2019		100	%		100	%
Fairways at San Marcos		Chandler, Arizona	2020		100	%		100	%
The Verandas at Lake Norman	(1)	Charlotte, North Carolina	2021		100	%		100	%
Creekside at Matthews	(1)	Charlotte, North Carolina	2021		100	%		100	%
Six Forks Station		Raleigh, North Carolina	2021		100	%		100	%
High House at Cary		Cary, North Carolina	2021		100	%		100	%
The Adair		Sandy Springs, Georgia	2022		100	%		—		(2)
Estates on Maryland		Phoenix, Arizona	2022		100	%		—		(2)

(1) The EAT that directly owned The Verandas at Lake Norman and Creekside at Matthews was consolidated as a VIE at June 30, 2021 giving the Company an effective 100% ownership interest. The master lease agreement with the EAT that directly owned these properties terminated on December 28, 2021, at which time legal title and control transferred to the Company. Upon the transfer of title, the EAT that directly owned these properties was no longer considered a VIE.

(2) Properties were acquired in 2022; therefore, no ownership as of December 31, 2021.

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Real Estate Investments Statistics

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Real Estate Investments Statistics

4. Real Estate Investments Statistics

As of June 30, 2022, the Company was invested in a total of 41 multifamily properties, as listed below:

						Average Effective Monthly Rent Per Unit (1) as of					% Occupied (2) as of
Property Name	Rentable Square Footage (in thousands)		Number of Units (3)		Date Acquired	June 30, 2022		December 31, 2021			June 30, 2022			December 31, 2021
Arbors on Forest Ridge		155		210	1/31/2014	$	1,109	$	1,021			96.7	%		96.2	%
Cutter's Point		198		196	1/31/2014		1,278		1,219			94.4	%		95.4	%
Silverbrook		526		642	1/31/2014		1,122		1,043			92.2	%		94.1	%
The Summit at Sabal Park		205		252	8/20/2014		1,340		1,198			94.8	%		96.0	%
Courtney Cove		225		324	8/20/2014		1,263		1,132			95.1	%		93.8	%
Radbourne Lake		247		225	9/30/2014		1,331		1,227			92.9	%		94.2	%
Timber Creek		248		352	9/30/2014		1,138		1,032			96.7	%		96.1	%
Sabal Palm at Lake Buena Vista		371		400	11/5/2014		1,569		1,377			96.3	%		97.8	%
Cornerstone		318		430	1/15/2015		1,306		1,152			96.7	%		95.6	%
The Preserve at Terrell Mill		692		752	2/6/2015		1,234		1,156			93.7	%		90.9	%
Versailles		301		388	2/26/2015		1,189		1,024			92.3	%		96.4	%
Seasons 704 Apartments		217		222	4/15/2015		1,619		1,410			95.5	%		96.8	%
Madera Point		193		256	8/5/2015		1,298		1,140			93.4	%		94.5	%
Venue at 8651		289		333	10/30/2015		1,068		1,006			95.1	%		94.5	%
Parc500		266		217	7/27/2016		1,694		1,543			98.1	%		96.3	%
The Venue on Camelback		256		415	10/11/2016		1,026		915			92.0	%		92.3	%
Old Farm		697		734	12/29/2016		1,271		1,207			93.6	%		93.9	%
Stone Creek at Old Farm		186		190	12/29/2016		1,283		1,248			98.4	%		96.8	%
Hollister Place		246		260	2/1/2017		1,144		1,065			96.9	%		92.5	%
Rockledge Apartments		802		708	6/30/2017		1,506		1,408			94.8	%		93.9	%
Atera Apartments		334		380	10/25/2017		1,434		1,310			95.8	%		93.9	%
Crestmont Reserve		199		242	9/26/2018		1,125		985			92.6	%		95.5	%
Brandywine I & II		414		632	9/26/2018		1,141		1,031			97.2	%		95.6	%
Bella Vista		243		248	1/28/2019		1,673		1,515			90.7	%		96.0	%
The Enclave		194		204	1/28/2019		1,706		1,507			92.2	%		96.6	%
The Heritage		199		204	1/28/2019		1,598		1,432			93.1	%		95.6	%
Summers Landing		139		196	6/7/2019		1,116		1,033			94.4	%		93.9	%
Residences at Glenview Reserve		344		360	7/17/2019		1,172		1,074			96.1	%		95.6	%
Residences at West Place		345		342	7/17/2019		1,486		1,345			93.3	%		93.0	%
Avant at Pembroke Pines		1,442		1,520	8/30/2019		1,896		1,695			95.8	%		93.9	%
Arbors of Brentwood		325		346	9/10/2019		1,405		1,284			96.4	%		95.1	%
Torreyana Apartments		309		316	11/22/2019		1,475		1,365			95.3	%		93.7	%
Bloom		498		528	11/22/2019		1,330		1,238			90.3	%		89.2	%
Bella Solara		271		320	11/22/2019		1,401		1,309			90.9	%		91.3	%
Fairways at San Marcos		340		352	11/2/2020		1,571		1,425			93.5	%		96.3	%
The Verandas at Lake Norman		241		264	6/30/2021		1,277		1,215			95.1	%		93.2	%
Creekside at Matthews		263		240	6/30/2021		1,408		1,350			95.8	%		94.2	%
Six Forks Station		360		323	9/10/2021		1,302		1,228			93.7	%		95.4	%
High House at Cary		293		302	12/7/2021		1,448		1,361			93.4	%		94.7	%
The Adair		328		232	4/1/2022		1,767		—	(4)		96.1	%		—		(4)
Estates on Maryland		324		330	4/1/2022		1,366		—	(4)		93.6	%		—		(4)
		14,043		15,387

(1) Average effective monthly rent per unit is equal to the average of the contractual rent for commenced leases as of June 30, 2022 and December 31, 2021, respectively, minus any tenant concessions over the term of the lease, divided by the number of units under commenced leases as of June 30, 2022 and December 31, 2021, respectively.

(2) Percent occupied is calculated as the number of units occupied as of June 30, 2022 and December 31, 2021, divided by the total number of units, expressed as a percentage.

(3) Includes 73 down units due to casualty events as of June 30, 2022 (see Note 5).

(4) Properties were acquired in 2022.

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Real Estate Investments

6 Months Ended

Jun. 30, 2022

Real Estate [Abstract]

Real Estate Investments

5. Real Estate Investments

As of June 30, 2022, the major components of the Company’s investments in multifamily properties were as follows (in thousands):

Operating Properties	Land		Buildings and Improvements			Intangible Lease Assets			Construction in Progress			Furniture, Fixtures and Equipment			Totals
Arbors on Forest Ridge	$	2,330	$	11,767		$	—		$	1		$	1,905		$	16,003
Cutter's Point		3,330		13,133			—			(19	)		7,437			23,881
Silverbrook		4,860		25,729			—			214			5,833			36,636
The Summit at Sabal Park		5,770		13,891			—			—			2,101			21,762
Courtney Cove		5,880		14,543			—			17			2,647			23,087
Radbourne Lake		2,440		22,949			—			7			2,832			28,228
Timber Creek		11,260		13,443			—			1,348			4,114			30,165
Sabal Palm at Lake Buena Vista		7,580		42,478			—			—			3,001			53,059
Cornerstone		1,500		30,917			—			21			3,925			36,363
The Preserve at Terrell Mill		10,170		53,180			—			53			9,814			73,217
Versailles		6,720		21,971			—			—			4,282			32,973
Seasons 704 Apartments		7,480		14,797			—			3			2,610			24,890
Madera Point		4,920		18,260			—			—			2,844			26,024
Venue at 8651		2,350		17,649			—			393			3,988			24,380
Parc500		3,860		21,066			—			4			4,411			29,341
The Venue on Camelback		8,340		38,744			—			—			3,564			50,648
Old Farm		11,078		71,122			—			153			4,252			86,605
Stone Creek at Old Farm		3,493		19,742			—			2			982			24,219
Hollister Place		2,782		22,015			—			80			2,859			27,736
Rockledge Apartments		17,451		97,518			—			497			6,910			122,376
Atera Apartments		22,371		38,767			—			30			2,659			63,827
Crestmont Reserve		4,124		21,082			—			6			1,669			26,881
Brandywine I & II		6,237		73,790			—			—			5,879			85,906
Bella Vista		10,942		37,375			—			14			2,995			51,326
The Enclave		11,046		30,547			—			2			2,711			44,306
The Heritage		6,835		35,169			—			14			2,810			44,828
Summers Landing		1,798		18,494			—			1			870			21,163
Residences at Glenview Reserve		3,367		42,489			—			—			3,033			48,889
Residences at West Place		3,345		52,500			—			6			2,201			58,052
Avant at Pembroke Pines		48,435		277,392			—			1,835			13,183			340,845
Arbors of Brentwood		6,346		54,100			—			3			2,569			63,018
Torreyana Apartments		23,824		43,805			—			—			1,709			69,338
Bloom		23,805		82,673			—			143			3,363			109,984
Bella Solara		12,605		53,504			—			21			2,328			68,458
Fairways at San Marcos		10,993		72,925			—			—			2,627			86,545
The Verandas at Lake Norman		9,510		52,904			—			115			1,061			63,590
Creekside at Matthews		11,515		45,608			—			132			1,355			58,610
Six Forks Station		11,357		62,136			—			183			1,552			75,228
High House at Cary		23,809		67,741			—			51			1,093			92,694
The Adair		8,361		55,519			1,182			173			797			66,032
Estates on Maryland		11,573		64,263			1,421			1			826			78,084
		395,792		1,867,697			2,603			5,504			137,601			2,409,197
Accumulated depreciation and amortization		—		(234,392	)		(1,301	)		—			(97,008	)		(332,701	)
Total Operating Properties	$	395,792	$	1,633,305		$	1,302		$	5,504		$	40,593		$	2,076,496

As of December 31, 2021, the major components of the Company’s investments in multifamily properties were as follows (in thousands):

Operating Properties	Land		Buildings and Improvements			Intangible Lease Assets			Construction in Progress		Furniture, Fixtures and Equipment			Totals
Arbors on Forest Ridge	$	2,330	$	11,755		$	—		$	—	$	1,821		$	15,906
Cutter's Point		3,330		13,091			—			—		7,379			23,800
Silverbrook		4,860		27,495			—			—		5,566			37,921
The Summit at Sabal Park		5,770		13,882			—			—		1,978			21,630
Courtney Cove		5,880		14,350			—			—		2,444			22,674
Radbourne Lake		2,440		22,744			—			64		2,455			27,703
Timber Creek		11,260		13,310			—			239		3,827			28,636
Sabal Palm at Lake Buena Vista		7,580		42,456			—			2		2,758			52,796
Cornerstone		1,500		30,901			—			21		3,722			36,144
The Preserve at Terrell Mill		10,170		53,080			—			—		8,997			72,247
Versailles		6,720		21,887			—			—		4,075			32,682
Seasons 704 Apartments		7,480		14,644			—			—		2,078			24,202
Madera Point		4,920		18,090			—			48		2,612			25,670
Venue at 8651		2,350		17,495			—			334		3,843			24,022
Parc500		3,860		21,172			—			—		4,147			29,179
The Venue on Camelback		8,340		38,328			—			306		3,248			50,222
Old Farm		11,078		70,993			—			99		3,902			86,072
Stone Creek at Old Farm		3,493		19,714			—			2		899			24,108
Hollister Place		2,782		21,196			—			1,308		2,739			28,025
Rockledge Apartments		17,451		97,374			—			—		5,968			120,793
Atera Apartments		22,371		36,857			—			1,824		2,384			63,436
Crestmont Reserve		4,124		21,067			—			—		1,515			26,706
Brandywine I & II		6,237		73,737			—			—		5,160			85,134
Bella Vista		10,942		37,193			—			51		2,687			50,873
The Enclave		11,046		30,469			—			11		2,403			43,929
The Heritage		6,835		35,011			—			68		2,386			44,300
Summers Landing		1,798		18,433			—			1		790			21,022
Residences at Glenview Reserve		3,367		42,306			—			—		2,366			48,039
Residences at West Place		3,345		52,310			—			—		1,591			57,246
Avant at Pembroke Pines		48,434		275,968			—			1,414		11,611			337,427
Arbors of Brentwood		6,346		56,040			—			—		2,235			64,621
Torreyana Apartments		23,824		43,700			—			25		1,371			68,920
Bloom		23,805		82,545			—			16		2,697			109,063
Bella Solara		12,605		53,415			—			24		1,854			67,898
Fairways at San Marcos		10,993		72,920			—			2		1,989			85,904
The Verandas at Lake Norman		9,510		52,884			—			6		650			63,050
Creekside at Matthews		11,515		45,271			—			18		756			57,560
Six Forks Station		11,357		62,129			1,200			195		748			75,629
High House at Cary		23,809		67,654			1,376			—		768			93,607
		375,857		1,743,866			2,576			6,078		120,419			2,248,796
Accumulated depreciation and amortization		—		(203,125	)		(1,029	)		—		(82,942	)		(287,096	)
Total Operating Properties	$	375,857	$	1,540,741		$	1,547		$	6,078	$	37,477		$	1,961,700

Depreciation expense was $23.8 million and $19.7 million for the three months ended June 30, 2022 and 2021, respectively. Depreciation expense was $46.4 million and $39.6 million for the six months ended June 30, 2022 and 2021, respectively.

Amortization expense related to the Company’s intangible lease assets was $1.8 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively. Amortization expense related to the Company’s intangible lease assets was $2.8 million and $1.1 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense related to the Company’s intangible lease assets for all acquisitions completed through June 30, 2022 is expected to be $1.3 million for the remainder of the year ended December 31, 2022. Due to the six-month useful life attributable to intangible lease assets, the value of intangible lease assets on any acquisition prior to December 31, 2021 has been fully amortized and the assets and related accumulated amortization have been written off as of June 30, 2022.

Acquisitions

The Company acquired two properties during the six months ended June 30, 2022, as detailed in the table below (dollars in thousands). The Company acquired two properties during the six months ended June 30, 2021 for $121.5 million. The Company entered into new debt agreements for the properties acquired during the six months ended June 30, 2022 and 2021.

Property Name	Location	Date of Acquisition	Purchase Price		Mortgage Debt		# Units		Effective Ownership
The Adair	Sandy Springs, Georgia	April 1, 2022	$	65,500	$	35,115		232		100	%
Estates on Maryland	Phoenix, Arizona	April 1, 2022		77,900		43,157		330		100	%
			$	143,400	$	78,272		562

Dispositions

There were no dispositions of real estate during the six months ended June 30, 2022 and 2021.

Casualty Losses

As of June 30, 2022, nine of the Company’s properties, Silverbrook, Venue at 8651, Bloom, Arbors of Brentwood, Parc500, Timber Creek, Hollister Place, The Preserve at Terrell Mill and Six Forks, suffered significant property damages as a result of fires and flooding. As of June 30, 2022, 73 units were excluded from the Portfolio’s total unit count and 67 units were excluded from all same store pools due to reconstruction. Business interruption proceeds for lost rent are included in miscellaneous income in the accompanying consolidated statements of operations and comprehensive income (loss) in relation to these events.

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

6. Debt

Mortgage Debt

The following table contains summary information concerning the mortgage debt of the Company as of June 30, 2022 (dollars in thousands):

Operating Properties		Type	Term (months)		Outstanding Principal (1)				Interest Rate (2)	Maturity Date
Arbors on Forest Ridge	(3)	Floating		84	$	13,130			3.47%	7/1/2024
Cutter's Point	(3)	Floating		84		16,640			3.47%	7/1/2024
Silverbrook	(3)	Floating		84		30,590			3.47%	7/1/2024
The Summit at Sabal Park	(3)	Floating		84		13,560			3.41%	7/1/2024
Courtney Cove	(3)	Floating		84		13,680			3.41%	7/1/2024
The Preserve at Terrell Mill	(3)	Floating		84		42,480			3.41%	7/1/2024
Versailles	(3)	Floating		84		23,880			3.41%	7/1/2024
Seasons 704 Apartments	(3)	Floating		84		17,460			3.41%	7/1/2024
Madera Point	(3)	Floating		84		15,150			3.41%	7/1/2024
Venue at 8651	(3)	Floating		84		13,734			3.57%	7/1/2024
The Venue on Camelback	(3)	Floating		84		28,093			3.47%	7/1/2024
Old Farm	(3)	Floating		84		52,886			3.47%	7/1/2024
Stone Creek at Old Farm	(3)	Floating		84		15,274			3.47%	7/1/2024
Timber Creek	(3)	Floating		84		24,100			3.05%	10/1/2025
Radbourne Lake	(3)	Floating		84		20,000			3.08%	10/1/2025
Sabal Palm at Lake Buena Vista	(3)	Floating		84		42,100			3.09%	9/1/2025
Cornerstone	(4)	Fixed		120		20,545			4.24%	3/1/2023
Parc500	(5)	Fixed		120		14,517			4.49%	8/1/2025
Hollister Place	(3)	Floating		84		14,811			3.13%	10/1/2025
Rockledge Apartments	(3)	Floating		84		68,100			3.36%	7/1/2024
Atera Apartments	(3)	Floating		84		29,500			3.27%	11/1/2024
Crestmont Reserve	(3)	Floating		84		12,061			2.97%	10/1/2025
Brandywine I & II	(3)	Floating		84		43,835			2.97%	10/1/2025
Bella Vista	(3)	Floating		84		29,040			3.11%	2/1/2026
The Enclave	(3)	Floating		84		25,322			3.11%	2/1/2026
The Heritage	(3)	Floating		84		24,625			3.11%	2/1/2026
Summers Landing	(6)	Floating		84		10,109			2.97%	10/1/2025
Residences at Glenview Reserve	(7)	Floating		84		26,108			3.23%	10/1/2025
Residences at West Place	(7)	Fixed		120		33,817			4.24%	10/1/2028
Avant at Pembroke Pines	(3)	Floating		84		177,100			3.22%	9/1/2026
Arbors of Brentwood	(3)	Floating		84		34,237			3.22%	10/1/2026
Torreyana Apartments	(3)	Floating		84		37,400			3.49%	12/1/2026
Bloom	(3)	Floating		84		58,850			3.49%	12/1/2026
Bella Solara	(3)	Floating		84		36,575			3.49%	12/1/2026
Fairways at San Marcos	(3)	Floating		84		46,464			3.22%	12/1/2027
The Verandas at Lake Norman	(8)	Floating		84		34,925			2.94%	7/1/2028
Creekside at Matthews	(8)	Floating		84		31,900			2.94%	7/1/2028
Six Forks Station	(9)	Floating		120		41,180			2.80%	10/1/2031
High House at Cary	(8)	Floating		84		46,625			3.10%	1/1/2029
The Adair	(3)	Floating		84		35,115			3.06%	4/1/2029
Estates on Maryland	(3)	Floating		84		43,157			3.06%	4/1/2029
					$	1,358,675
Fair market value adjustment						958		(10)
Deferred financing costs, net of accumulated amortization of $5,943						(8,461	)
					$	1,351,172

(1) Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2) Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. Reference rates used in our portfolio include one-month LIBOR and 30-Day Average Secured Overnight Financing Rate (“SOFR”). As of June 30, 2022, one-month LIBOR was 1.79% and SOFR was 1.09%.

(3) Loan can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13^th month of the term through the 81^st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(4) Debt in the amount of $18.0 million was assumed upon acquisition of this property and recorded at approximated fair value. The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013, and had a term of 120 months with an initial 24 months of interest only. At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months of interest only. The first mortgage is pre-payable and subject to yield maintenance from the 13^th month through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. Concurrently with the acquisition of the property, the Company placed a supplemental second mortgage on the property with a principal amount of approximately $5.8 million, a fixed rate of 4.70%, and with a maturity date that is the same time as the first mortgage. The supplemental second mortgage is pre-payable and subject to yield maintenance from the date of issuance through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. As of June 30, 2022, the total indebtedness secured by the property had a blended interest rate of 4.24%.

(5) Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan is open to pre-payment in the last four months of the term.

(6) Debt was assumed upon acquisition of this property and recorded at approximated fair value.  It can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13^th month of the term through the 81^st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(7) Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan can be prepaid at the greater of par plus 1.00% of the unpaid principal balance or the product obtained by multiplying the present value of the principal being prepaid by the excess of the monthly fixed interest rate of the loan over a daily discount rate. The loan is open to pre-payment in the last three months of the term.  

(8) Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25^th month of the term through the 36^th month of the term, the loan can be pre-paid at par plus 2% of the unpaid principal balance. Starting in the 37^th month of the term, the loan can be pre-paid at par plus 1% of the unpaid principal balance. The loan is open to pre-payment in the last three months of the term.

(9) Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25^th month of the term through the 116^th of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term.

(10) The Company reflected a valuation adjustment on its fixed rate debt for Parc500 and Residences at West Place to adjust it to fair market value on their respective dates of acquisition for the difference between the fair value and the assumed principal amount of debt. The difference is amortized into interest expense over the remaining terms of the mortgages.

The weighted average interest rate of the Company’s mortgage indebtedness was 3.29% as of June 30, 2022 and 1.81% as of December 31, 2021. The increase between the periods is primarily related to a increase in one-month LIBOR of approximately 169 basis points to 1.79% as of June 30, 2022 from 0.10125% as of December 31, 2021. As of June 30, 2022, the adjusted weighted average interest rate of the Company’s mortgage indebtedness was 2.67%. For purposes of calculating the adjusted weighted average interest rate of the outstanding mortgage indebtedness, the Company has included the weighted average fixed rate of 1.1245% for one-month LIBOR on its combined $1.3 billion notional amount of interest rate swap agreements, which effectively fix the interest rate on $1.3 billion of the Company’s floating rate mortgage debt (see Note 7).

Each of the Company’s mortgages is a non-recourse obligation subject to customary provisions. The loan agreements contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the documents evidencing the loan, defaults in payments under any other security instrument covering any part of the property, whether junior or senior to the loan, and bankruptcy or other insolvency events. As of June 30, 2022, the Company believes it is in compliance with all provisions.

Credit Facility

The following table contains summary information concerning the Company’s credit facility as of June 30, 2022 (dollars in thousands):

	Type	Term (months)		Outstanding Principal			Interest Rate (1)	Maturity Date
Corporate Credit Facility	Floating		36	$	335,000		3.94%	6/30/2024
Deferred financing costs, net of accumulated amortization of $685					(1,797	)
				$	333,203

(1) Interest rate is based on Term SOFR plus an applicable margin.  Term SOFR as of June 30, 2022 was 1.60%.

On March 25, 2022, the Company entered into a loan modification agreement by and among the Company, the OP, Truist Bank and the Lenders party thereto, which modified the Company’s existing credit facility, dated as of June 30, 2021 (as modified, amended and supplemented, the “Corporate Credit Facility”). As of June 30, 2022, there was $350.0 million available for borrowing under the Corporate Credit Facility. Subject to conditions provided in the Corporate Credit Facility, the commitments under Corporate Credit

Facility may be increased up to an additional $150.0 million if the lenders agree to increase their commitments or if the lenders agree for the increase to be funded by any additional lender proposed by the Company, through the OP. The Corporate Credit Facility will mature on June 30, 2024 with respect to the revolving commitments, unless the Company exercises its option to voluntarily and permanently reduce all of the revolving commitments before the maturity date or elects to exercise its right and option to extend the facility with respect to the revolving commitments for a single one-year term. As of June 30, 2022, there was $335.0 million in aggregate principal outstanding under the Corporate Credit Facility.

Advances under the Corporate Credit Facility accrue interest at a per annum rate equal to, at the Company’s election, either Term SOFR plus a margin of 1.90% to 2.40%, depending on the Company’s total leverage ratio and a benchmark replacement adjustment of 0.1%, or a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50%, (c) Term SOFR plus 1.0% or (d) 0.0% plus a margin of 0.90% to 1.40%, depending on the Company’s total leverage ratio. An unused commitment fee at a rate of 0.15% or 0.25%, depending on the outstanding aggregate revolving commitments, applies to unutilized borrowing capacity under the Corporate Credit Facility. Amounts owing under the Corporate Credit Facility may be prepaid at any time without premium or penalty. The Corporate Credit Facility is guaranteed by the Company and the obligations under the Corporate Credit Facility are, subject to some exceptions, secured by a continuing security interest in substantially all of the assets of the Company. The Company is in compliance with all of the covenants required in its Corporate Credit Facility.

Deferred Financing Costs

The Company defers costs incurred in obtaining financing and amortizes the costs over the terms of the related loans using the straight-line method, which approximates the effective interest method. Deferred financing costs, net of amortization, are recorded as a reduction from the related debt on the Company’s consolidated balance sheets. For the three months ended June 30, 2022 and 2021, amortization of deferred financing costs of approximately $0.7 million and $0.5 million, respectively, is included in interest expense on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2022 and 2021, amortization of deferred financing costs of approximately $1.3 million and $1.1 million, respectively, is included in interest expense on the consolidated statements of operations and comprehensive income (loss).

Loss on Extinguishment of Debt and Modification Costs

Loss on extinguishment of debt and modification costs includes prepayment penalties and defeasance costs incurred on the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to loss on extinguishment of debt and modification costs. For the six months ended June 30, 2022 and 2021, the Company wrote-off deferred financing costs of approximately $0.0 million and $0.3 million, respectively, which is included in loss on extinguishment of debt and modification costs on the consolidated statements of operations and comprehensive income (loss).

Schedule of Debt Maturities

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2022 are as follows (in thousands):

	Operating Properties		Credit Facility		Total
2022	$	650	$	—	$	650
2023		21,003		—		21,003
2024		394,952		335,000		729,952
2025		205,738		—		205,738
2026		423,149		—		423,149
Thereafter		313,183		—		313,183
Total	$	1,358,675	$	335,000	$	1,693,675

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Fair Value of Derivative and Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Derivatives and Financial Instruments

7. Fair Value of Derivatives and Financial Instruments

Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy):

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

• Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.

• Level 3 inputs are the unobservable inputs for the asset or liability, which are typically based on an entity’s own assumption, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on input from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company utilizes independent third parties to perform the allocation of value analysis for each property acquisition and to perform the market valuations on its derivative financial instruments and has established policies, as described above, processes and procedures intended to ensure that the valuation methodologies for investments and derivative financial instruments are fair and consistent as of the measurement date.

Derivative Financial Instruments and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash payments principally related to the Company’s borrowings. In order to minimize counterparty credit risk, the Company enters into and expects to enter into hedging arrangements only with major financial institutions that have high credit ratings.

The Company utilizes an independent third party to perform the market valuations on its derivative financial instruments. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both the Company’s own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of the Company’s derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company’s derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of June 30, 2022 and December 31, 2021 were classified as Level 2 of the fair value hierarchy.

The Company’s main objective in using interest rate derivatives is to add stability to interest expense related to floating rate debt. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The interest rate swaps have terms ranging from four to five years. Interest rate caps involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The interest rate caps have terms ranging from three to four years. During the six months ended June 30, 2022 and 2021, interest rate cap derivatives were used to hedge the variable cash flows associated with a portion of the Company’s floating rate debt. The interest rate cap agreements the Company has entered into effectively cap one-month LIBOR on $537.1 million of the Company’s floating rate mortgage indebtedness at a weighted average rate of 4.66% as of June 30, 2022.

In order to fix a portion of, and mitigate the risk associated with, the Company’s floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), the Company, through the OP, has entered into nine interest rate swap transactions with KeyBank National Association (“KeyBank”) and four with Truist Bank with a combined notional amount of $1.3 billion. The interest rate swaps the Company has entered into effectively replace the floating interest rate with respect to that amount with a weighted average fixed rate of 1.1245%. The Company has designated these interest rate swaps as cash flow hedges of interest rate risk.

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
July 1, 2017	July 1, 2022	KeyBank		100,000		1.7820	%
June 1, 2019	June 1, 2024	KeyBank		50,000		2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000		2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000		1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000		1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500		1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000		0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000		0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000		0.6140	%
			$	1,267,500		1.1245	%	(2)

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

(2) Represents the weighted average fixed rate of the interest rate swaps.

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk with future effective dates (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
September 1, 2026	January 1, 2027	KeyBank	$	92,500		1.7980	%

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements but either do not meet the strict requirements to apply hedge accounting in accordance with FASB ASC 815, Derivatives and Hedging, or the Company has elected not to designate such derivatives as hedges. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in net income (loss) as interest expense.

As of June 30, 2022 and 2021, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):

As of June 30,	Number of Instruments		Notional Amount
2022		17	$	537,118
2021		15	$	346,542

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance Sheet Location	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Interest rate swaps	Fair market value of interest rate swaps	$	75,461	$	11,045	$	—	$	7,519
Derivatives not designated as hedging instruments:
Interest rate caps	Prepaid and other assets		2,374		263		—		—
Total		$	77,835	$	11,308	$	—	$	7,519

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Amount of gain (loss) recognized in OCI					Location of gain (loss) reclassified from accumulated	Amount of gain (loss) reclassified from OCI into income
	2022		2021			OCI into income	2022			2021
Derivatives designated as hedging instruments:
For the three months ended June 30,
Interest rate products	$	16,291	$	(8,551	)	Interest expense	$	(1,066	)	$	(3,746	)
For the six months ended June 30,
Interest rate products	$	67,308	$	19,128		Interest expense	$	(4,628	)	$	(7,409	)

	Location of gain (loss)	Amount of gain (loss) recognized in income
	recognized in income	2022			2021
Derivatives not designated as hedging instruments:
For the three months ended June 30,
Interest rate products	Interest expense	$	(181	)	$	55
For the six months ended June 30,
Interest rate products	Interest expense	$	(1,365	)	$	43

Other Financial Instruments Carried at Fair Value

Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 10). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value.

Financial Instruments Not Carried at Fair Value

At June 30, 2022 and December 31, 2021, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaid and other assets, excluding interest rate caps, accounts payable and other accrued liabilities, accrued real estate taxes payable, accrued interest payable, security deposits and prepaid rent approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts.

Long-term indebtedness is carried at amounts that reasonably approximate their fair value. In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current credit worthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.

The table below presents the carrying value and estimated fair value of our debt at June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022				December 31, 2021
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Fixed rate debt	$	68,879	$	67,454	$	69,285	$	71,141
Floating rate debt (1)	$	1,624,796	$	1,597,759	$	1,491,861	$	1,525,298

(1) Includes balances outstanding under our Corporate Credit Facility.

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such cases, the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. There can be no assurance that the estimates discussed herein, using Level 3 inputs, are indicative of the amounts the Company could realize on disposition of the real estate asset. For the six months ended June 30, 2022, the Company did not record any impairment charges related to real estate assets.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

Common Stock

During the six months ended June 30, 2022, the Company issued 164,851 shares of common stock pursuant to its long-term incentive plan (see “Long Term Incentive Plan” below) and 52,091 shares pursuant to its at-the-market offering (see “At-the-Market Offering” below).

As of June 30, 2022, the Company had 25,647,942 shares of common stock, par value $0.01 per share, issued and outstanding.

Share Repurchase Program

On June 15, 2016, the Board authorized the Company to repurchase up to $30.0 million of its common stock, par value $0.01 per share, during a two-year period that was set to expire on June 15, 2018 (the “Share Repurchase Program”). On April 30, 2018, the Board increased the Share Repurchase Program from $30.0 million to up to $40.0 million and extended it by an additional two years to June 15, 2020. On March 13, 2020, the Board further increased the Share Repurchase Program from $40.0 million to up to $100.0 million and extended it to March 12, 2023.  The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to net asset value per share. Repurchases under this program may be discontinued at any time. During the six months ended June 30, 2022, the Company repurchased 69,567 shares of its common stock for approximately $5.1 million, or $73.82 per share. During the six months ended June 30, 2021, the Company did not repurchase any shares of its common stock. Since the inception of the Share Repurchase Program through June 30, 2022, the Company has repurchased 2,451,722 shares of its common stock, par value $0.01 per share, at a total cost of approximately $66.4 million, or $27.07 per share.

Treasury Shares

From time to time, in accordance with the Company’s Share Repurchase Program, the Company may repurchase shares of its common stock in the open market. Until any such shares are retired, the cost of the shares is included in common stock held in treasury at cost on the consolidated balance sheet. The number of shares of common stock classified as treasury shares reduces the number of shares of the Company’s common stock outstanding and, accordingly, are considered in the weighted average number of shares outstanding during the period. During the six months ended June 30, 2022 and 2021, the Company retired 69,567 and zero shares of its common stock held in treasury. As of June 30, 2022, the Company did not have any shares of common stock held in treasury.

Long Term Incentive Plan

On June 15, 2016, the Company’s stockholders approved a long-term incentive plan (the “2016 LTIP”) and the Company filed a registration statement on Form S-8 registering 2,100,000 shares of common stock, par value $0.01 per share, which the Company may issue pursuant to the 2016 LTIP. The 2016 LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of stock options, appreciation rights, restricted shares, restricted stock units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common stock or factors that may influence the value of the Company’s common stock, plus cash incentive awards, for the purpose of providing the Company’s directors, officers and other key employees (and those of the Adviser and the Company’s subsidiaries), the Company’s non-employee directors, and potentially certain non-employees who perform employee-type functions, incentives and rewards for performance.

Restricted Stock Units

Under the 2016 LTIP, restricted stock units may be granted to the Company’s directors, officers and other key employees (and those of the Adviser and the Company’s subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Adviser and annually for directors. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. On February 21, 2019, pursuant to the 2016 LTIP, the Company granted 186,662 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On February 20, 2020, pursuant to the 2016 LTIP, the Company granted 168,183 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On May 11, 2020, pursuant to the 2016 LTIP, the Company granted 116,852 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On February 18, 2021, pursuant to the 2016 LTIP, the Company granted 204,663 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. On February 17, 2022, pursuant to the 2016 LTIP, the Company granted 142,159 restricted stock units to its directors, officers, employees and certain key employees of the Adviser. The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of June 30, 2022:

	2022
	Number of Units				Weighted Average Grant Date Fair Value
Outstanding January 1,		589,283			$	39.17
Granted		142,159				83.88
Vested		(202,519	)	(1)		35.34
Outstanding June 30,		528,923			$	52.66

(1) Certain key employees of the Adviser elected to net the taxes owed upon vesting against the shares issued resulting in 164,851 shares being issued as shown on the Consolidated Statement of Stockholders’ Equity.

The following table contains information regarding the vesting of restricted stock units under the 2016 LTIP for the next five calendar years subsequent to June 30, 2022:

	Shares Vesting
	February		May		Total
2023		139,095		22,019		161,114
2024		132,699		22,017		154,716
2025		97,811		22,017		119,828
2026		66,114		—		66,114
2027		27,151		—		27,151
Total		462,870		66,053		528,923

As of June 30, 2022, the Company had issued 857,107 shares of common stock under the 2016 LTIP. For the three months ended June 30, 2022 and 2021, the Company recognized approximately $2.0 million and $1.8 million, respectively, of equity-based compensation expense related to grants of restricted stock units. For the six months ended June 30, 2022 and 2021, the Company recognized approximately $3.9 million and $3.4 million, respectively, of equity-based compensation expense related to grants of restricted stock units.  As of June 30, 2022, the Company had recognized a liability of approximately $1.3 million related to dividends earned on restricted stock units that are payable in cash upon vesting.

At-the-Market Offering

On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of Jefferies LLC (“Jefferies”), Raymond James & Associates, Inc. (“Raymond James”), KeyBanc Capital Markets Inc. (“KeyBanc”) and Truist Securities (f/k/a SunTrust Robinson Humphrey, Inc., “SunTrust,” and together with Jefferies, Raymond James and KeyBanc, the “ATM Sales Agents”), pursuant to which the Company may issue and sell from time to time shares of the Company’s common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the “2020 ATM Program”).  Sales of shares of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act, including, without limitation, sales made by means of ordinary brokers’ transactions on the New York Stock Exchange, to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.  In addition to the issuance and sale of shares of common stock, the Company may enter into forward sale agreements with each of Jefferies, KeyBanc and Raymond James, or their respective affiliates, through the 2020 ATM Program.  During the six months ended June 30, 2022, the Company issued 52,091 shares of common stock at an average price of $83.16 per share for gross proceeds of $4.3 million under the 2020 ATM Program. The Company paid approximately $0.1 million in fees to the 2020 ATM Sales Agents with respect to such sales and incurred other issuance costs of approximately $0.2 million, both of which were netted against the gross proceeds and recorded in additional paid in capital. The following table contains summary information of the 2020 ATM Program since its inception:

Gross proceeds	$	62,310,967
Common shares issued		1,120,910
Gross average sale price per share	$	55.59
Sales commissions	$	934,665
Offering costs		1,253,360
Net proceeds		60,122,942
Average price per share, net	$	53.64

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

9. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of the Company’s common stock outstanding, which excludes any unvested restricted stock units issued pursuant to the 2016 LTIP. Diluted earnings (loss) per share is computed by adjusting basic earnings (loss) per share for the dilutive effect of the assumed vesting of restricted stock units. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.

The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted earnings (loss) per share, as they are exchangeable for common stock on a one-for-one basis. The income (loss) allocable to such units is allocated on this same basis and reflected as net income (loss) attributable to redeemable noncontrolling interests in the OP in the accompanying consolidated statements of operations and comprehensive income (loss). As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings (loss) per share. See Note 10 for additional information.

The following table sets forth the computation of basic and diluted loss per share for the periods presented (in thousands, except per share amounts):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021
Numerator for loss per share:
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership			(30	)		(10	)		(44	)		(31	)
Net loss attributable to common stockholders		$	(7,797	)	$	(3,408	)	$	(12,450	)	$	(10,287	)
Denominator for loss per share:
Weighted average common shares outstanding			25,672			25,140			25,646			25,104
Denominator for basic loss per share			25,672			25,140			25,646			25,104
Weighted average unvested restricted stock units			539			613			556			596
Denominator for diluted earnings per share	(1)		25,672			25,140			25,646			25,104
Loss per weighted average common share:
Basic		$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
Diluted		$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)

(1) If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the diluted earnings per share calculation.

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Noncontrolling Interests

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Noncontrolling Interests

10. Noncontrolling Interests

Redeemable Noncontrolling Interests in the OP

Interests in the OP held by limited partners are represented by OP Units. Net income (loss) is allocated to holders of OP Units based upon net income (loss) attributable to common stockholders and the weighted average number of OP Units outstanding to total common shares plus OP Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to OP Units in accordance with the terms of the partnership agreement of the OP. Each time the OP distributes cash to the Company, outside limited partners of the OP receive their pro-rata share of the distribution. Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP.

On April 1, 2022, the Company acquired The Adair and Estates on Maryland, from investors in a Delaware Statutory Trust managed by an entity affiliated with the Adviser, for total consideration of $143.4 million (the “Purchase Price”). The Purchase Price consisted of 26,558 OP Units (valued at $2.6 million) that were issued on April 1, 2022 and approximately $71.1 million in cash. The fair value of the OP Units was determined based on the April 1, 2022 share price of NXRT as the OP units are convertible to common stock on a one to one basis.

The following table sets forth the redeemable noncontrolling interests in the OP for the six months ended June 30, 2022 (in thousands):

Redeemable noncontrolling interests in the OP, December 31, 2021	$	6,139
Net loss attributable to redeemable noncontrolling interests in the OP		(44	)
Other comprehensive income attributable to redeemable noncontrolling interests in the OP		231
Contributions from redeemable noncontrolling interests in the OP		(562	)
Distributions to redeemable noncontrolling interests in the OP		125
Issuance of operating partnership units for purchase of noncontrolling interests		2,444
Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP		(1,311	)
Redeemable noncontrolling interests in the OP, June 30, 2022	$	7,022

Noncontrolling Interests

Noncontrolling interests have in the past and may in the future be comprised of joint venture partners’ interests in joint ventures the Company consolidates. When applicable, the Company reports its joint venture partners’ interests in its consolidated joint ventures and other subsidiary interests held by third parties as noncontrolling interests. The Company records these noncontrolling interests at their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investment’s net income or loss, equity contributions, return of capital, and distributions. The adjustment to reflect redemption value of redeemable noncontrolling interests in the OP records the OP Units at the greater of their carrying value or their redemption value using the Company’s stock price

at each balance sheet date. Generally, these noncontrolling interests are not redeemable by the equity holders and are presented as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder based on its economic ownership percentage.

Fees and Reimbursements to BH and its Affiliates

The Company has entered into management agreements with BH Management Services, LLC (“BH”), the Company’s property manager and an independently owned third party, who manages the Company’s properties and supervises the implementation of the Company’s value-add program. BH is an affiliate of BH Equity, who was a noncontrolling interest member of the Company’s joint ventures prior to the BH Buyout on June 30, 2017. Through BH Equity’s noncontrolling interests in such joint ventures, BH Equity was deemed to be a related party. With the completion of the BH Buyout, BH Equity is no longer deemed to be a related party. BH Equity became a noncontrolling limited partner of the OP upon execution of the Amendment. BH and its affiliates do not have common ownership in any joint venture with the Adviser; there is also no common ownership between BH and its affiliates and the Adviser.

The property management fee paid to BH is approximately 3% of the monthly gross income from each property managed. Currently, BH manages all of the Company’s properties. Additionally, the Company may pay BH certain other fees, including: (1) a fee of $15-25 per unit for the one-time setup and inspection of properties, (2) a construction supervision fee of 5-6% of total project costs, which is capitalized, (3) acquisition fees and due diligence costs reimbursements, and (4) other owner approved fees at $55 per hour. BH also acts as a paymaster for the properties and is reimbursed at cost for various operating expenses it pays on behalf of the properties. The following is a summary of fees that the properties incurred to BH and its affiliates, as well as reimbursements paid to BH from the properties for various operating expenses, for the three and six months ended June 30, 2022 and 2021 (in thousands):

		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2022		2021		2022		2021
Fees incurred
Property management fees	(1)	$	1,904	$	1,510	$	3,654	$	2,989
Construction supervision fees	(2)		440		302		765		556
Design fees	(2)		47		24		47		78
Acquisition fees	(3)		231		275		231		275
Aerwave fees	(4)		221		—		346		—
Reimbursements
Payroll and benefits	(4)		5,640		4,819		10,804		9,057
Other reimbursements	(5)		1,134		857		2,161		1,682

(1) Included in property management fees on the consolidated statements of operations and comprehensive income (loss).

(2) Capitalized on the consolidated balance sheets and reflected in buildings and improvements.

(3) Includes due diligence costs. Acquisition fees are capitalized to real estate assets on the consolidated balance sheets.

(4) Included in property operating expenses on the consolidated statements of operations and comprehensive income (loss).

(5) Includes property operating expenses such as repairs and maintenance costs and certain property general and administrative expenses, which are included on the consolidated statements of operations and comprehensive income (loss).

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Related Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Related Party Transactions

11. Related Party Transactions

Advisory and Administrative Fee

In accordance with the Advisory Agreement, the Company pays the Adviser an advisory fee equal to 1.00% of the Average Real Estate Assets (as defined below). The duties performed by the Company’s Adviser under the terms of the Advisory Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third party service providers, managing the Company’s properties or overseeing the third party property manager, formulating an investment strategy for the Company and selecting suitable properties and investments, managing the Company’s outstanding debt and its interest rate exposure through derivative instruments, determining when to sell assets, and managing the value-add program or overseeing a third party vendor that implements the value-add program. “Average Real Estate Assets” means the average of the aggregate book value of Real Estate Assets before reserves for depreciation or other non-cash reserves, computed by taking the average of the book value of real estate assets at the end of each month (1) for which any fee under the Advisory Agreement is calculated or (2) during the year for which any expense reimbursement under the Advisory Agreement is calculated. “Real Estate Assets” is defined broadly in the Advisory Agreement to include, among other things, investments in real estate-related securities and mortgages and reserves for capital expenditures (the value-add program). The advisory fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the advisory fee in shares of common stock, subject to certain limitations.

In accordance with the Advisory Agreement, the Company also pays the Adviser an administrative fee equal to 0.20% of the Average Real Estate Assets. The administrative fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the administrative fee in shares of common stock, subject to certain limitations.

The advisory and administrative fees paid to the Adviser on the Contributed Assets (as defined in the Advisory Agreement) are subject to an annual cap of approximately $5.4 million (the “Contributed Assets Cap”) (see “Expense Cap” below).

Pursuant to the terms of the Advisory Agreement, the Company will reimburse the Adviser for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. “Operating Expenses” include legal, accounting, financial and due diligence services performed by the Adviser that outside professionals or outside consultants would otherwise perform, the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Adviser required for the Company’s operations, and compensation expenses under the 2016 LTIP. Operating Expenses do not include expenses for the advisory and administrative services described in the Advisory Agreement. Certain Operating Expenses, such as the Company’s ratable share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses incurred by the Adviser or its affiliates that relate to the operations of the Company, may be billed monthly to the Company under a shared services agreement. “Offering Expenses” include all expenses (other than underwriters’ discounts) in connection with an offering, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the six months ended June 30, 2022 and 2021, the Adviser did not bill any Operating Expenses or Offering Expenses to the Company and any such expenses the Adviser incurred during the periods are considered to be permanently waived.

Expense Cap

Pursuant to the terms of the Advisory Agreement, expenses paid or incurred by the Company for operating expenses and advisory and administrative fees payable to the Adviser and Operating Expenses will not exceed 1.5% of Average Real Estate Assets per calendar year (or part thereof that the Advisory Agreement is in effect (the “Expense Cap”)). The Expense Cap does not limit the reimbursement of expenses related to Offering Expenses. The Expense Cap also does not apply to legal, accounting, financial, due diligence and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation or other events outside the Company’s ordinary course of business or any out-of-pocket acquisitions or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets. Also, advisory and administrative fees are further limited on Contributed Assets to approximately $5.4 million in any calendar year. Contributed Assets refers to all Real Estate Assets contributed to the Company as part of its spin-off. The Contributed Assets Cap is not reduced for dispositions of such assets subsequent to its spin-off. Advisory and administrative fees on New Assets are not subject to the above limitation and are based on an annual rate of 1.2% on Average Real Estate Assets, but are subject to the Expense Cap. New Assets are all Real Estate Assets that are not Contributed Assets.

For the three months ended June 30, 2022 and 2021, the Company incurred advisory and administrative fees of $1.9 million and $1.9 million, respectively. For the three months ended June 30, 2022 and 2021, the Adviser elected to voluntarily waive the advisory and administrative fees of approximately $5.2 million and $4.1 million, respectively. For the six months ended June 30, 2022 and 2021, the Company incurred advisory and administrative fees of $3.7 million and $3.8 million, respectively. For the six months ended June 30, 2022 and 2021, the Adviser elected to voluntarily waive the advisory and administrative fees of $10.1 million and $8.1 million, respectively. The advisory and administrative fees waived by the Adviser are considered to be permanently waived for the periods. The Adviser is not contractually obligated to waive fees on New Assets in the future and may cease waiving fees on New Assets at its discretion.

Other Related Party Transactions

The Company has in the past, and may in the future, utilize the services of affiliated parties. For the six months ended June 30, 2022 and 2021, the Company paid approximately $0.1 million and $0.0 million, respectively, to NexBank Title, Inc. (“NexBank Title”). NexBank Title is an affiliate of the Adviser through common beneficial ownership. NexBank Title provides title insurance and work related to providing title insurance on properties related to acquisitions, dispositions and refinancing transactions. These amounts are either capitalized as real estate assets or deferred financing costs, expensed as loss on extinguishment of debt and modification costs, or expensed as selling costs when determining gain (loss) on sales of real estate, depending on the appropriate accounting as determined for each specific transaction. The Company holds multiple operating accounts at NexBank Capital, Inc. (“NexBank”), an affiliate of the Adviser through common beneficial ownership.

On July 30, 2021, three of our property-owning subsidiaries entered into agreements with NLMF Holdco, LLC, an entity under common control with our Adviser and in which we own a 10% equity interest. As of June 30, 2022, the Company has funded approximately $0.3 million to NLMF Holdco, LLC which is included in prepaid and other assets on the consolidated balance sheet of the Company. For the six months ended June 30, 2022, the Company incurred expenses of $0.1 million for fiber internet service which is included in property operating expenses on the consolidated statement of operations and comprehensive loss.  Additionally, on July 30, 2021, we entered into agreements with NLMF Leaseco, LLC, which is controlled by Matt McGraner, one of our officers. We expect that these actions will provide faster, more reliable and lower cost internet to our residents.

On April 1, 2022, the Company acquired The Adair and Estates on Maryland, from investors in a Delaware Statutory Trust managed by an entity affiliated with the Adviser, for total consideration of $143.4 million (the “Purchase Price”). The Purchase Price consisted of 26,558 OP Units (valued at $2.6 million) that were issued on April 1, 2022 and approximately $71.1 million in cash. The fair value of the OP Units was determined based on the April 1, 2022 share price of NXRT as the OP units are convertible to common stock on a one to one basis.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Commitments

In the normal course of business, the Company enters into various rehabilitation construction related purchase commitments with parties that provide these goods and services. In the event the Company were to terminate rehabilitation construction services prior to the completion of projects, the Company could potentially be committed to satisfy outstanding or uncompleted purchase orders with such parties. As of June 30, 2022, management does not anticipate any material deviations from schedule or budget related to rehabilitation projects currently in process.

The Company’s agreement with NLMF Holdco, LLC may result in additional funding requirements to cover future project costs. The maximum exposure of potential commitments is expected to be no more than $4.0 million. As of June 30, 2022, the Company has funded approximately $0.3 million to NLMF Holdco, LLC which is included in prepaid and other assets on the consolidated balance sheet of the Company.

Contingencies

In the normal course of business, the Company is subject to claims, lawsuits, and legal proceedings. While it is not possible to ascertain the ultimate outcome of all such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated balance sheets or consolidated statements of operations and comprehensive income (loss) of the Company. The Company is not involved in any material litigation nor, to management’s knowledge, is any material litigation currently threatened against the Company or its properties or subsidiaries.

Environmental liabilities could have a material adverse effect on the Company’s business, assets, cash flows or results of operations. As of June 30, 2022, the Company was not aware of any environmental liabilities. There can be no assurance that material environmental liabilities do not exist.

Self-Insurance Program

On March 1, 2021, the Adviser entered into a self-insurance policy resulting in an aggregate amount of $2,468,750 (the “2021 Aggregate Amount”) which is allocated across properties managed by the Adviser with approximately $1.6 million being allocated to the Company. As of December 31, 2021, all of the $1.6 million of the 2021 Aggregate Amount allocated to the Company has been prepaid. Under ASC 450-20 “Loss Contingencies”, the Company does not reserve for the 2021 Aggregate Amount or any portion thereof until a claim is made and the amount of the claim and the timing of payment on the claim can be reasonably estimated.  For the period from March 1, 2021 to February 28, 2022, the Company incurred claims related to its entire allocated 2021 Aggregate Amount at Old Farm and Silverbrook.

On March 1, 2022, the Adviser entered into a new policy resulting in a new aggregate amount of $2,497,500 (the “2022 Aggregate Amount”) which is allocated across properties managed by the Adviser with approximately $1.8 million being allocated to the Company. Under ASC 450-20 “Loss Contingencies”, the Company does not reserve for the 2021 Aggregate Amount or any portion thereof until a claim is made and the amount of the claim and the timing of payment on the claim can be reasonably estimated.  For the period from March 1, 2022 to June 30, 2022, the Company incurred claims at Six Forks Station, Parc500, Hollister Place and Arbors of Brentwood totaling approximately $2.1 million.

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Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

Dividends Declared

On July 25, 2022, the Company’s Board approved a quarterly dividend of $0.38 per share, payable on September 30, 2022 to stockholders of record on September 15, 2022.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The accompanying unaudited consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the six months ended June 30, 2022.

The accompanying unaudited consolidated financial statements have been prepared according to the rules and regulations of the SEC.  Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, all adjustments and eliminations necessary for the fair presentation of the Company’s financial position as of June 30, 2022 and December 31, 2021 and results of operations for the three and six months ended June 30, 2022 and 2021 have been included.  Such adjustments are normal and recurring in nature.  The unaudited information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021 and notes thereto included in its Annual Report on Form 10-K filed with the SEC on February 18, 2022.

Principles of Consolidation

Principles of Consolidation

The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries.

Revenue Recognition

Revenue Recognition

The Company’s primary operations consist of rental income earned from its residents under lease agreements typically with terms of one year or less. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. The Company records an allowance to reflect revenue that may not be collectable. This is recorded through a provision for bad debts which is included in rental income in the accompanying consolidated statements of operations and comprehensive income (loss). Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, and pets, administrative, application and other fees and are recognized when earned.  

Purchase Price Allocation

Purchase Price Allocation

Upon acquisition of a property considered to be an asset acquisition, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805.

The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (“ASC 820”) (see Note 7), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the total consideration to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.

Real estate assets, including land, buildings, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

Land	Not depreciated
Buildings	30 years
Improvements	15 years
Furniture, fixtures, and equipment	3 years
Intangible lease assets	6 months

Construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete, the historical cost of the renovation is placed into service in one of the categories above depending on the type of renovation project and is depreciated over the estimated useful lives as described in the table above.

Impairment

Impairment

Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company’s impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment. As of June 30, 2022, the Company has not recorded any impairment on its real estate assets.

Held-for-Sale

Held for Sale

The Company periodically classifies real estate assets as held for sale when certain criteria are met in accordance with GAAP. At that time, the Company presents the net real estate assets and the net debt associated with the real estate held for sale separately in its consolidated balance sheet, and the Company ceases recording depreciation and amortization expense related to that property. Real estate held for sale is reported at the lower of its carrying amount or its estimated fair value less estimated costs to sell. As of June 30, 2022, there are no properties held for sale.    

Income Taxes

Income Taxes

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and expects to continue to qualify as a REIT. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its stockholders. As a REIT, the Company will be subject to federal income tax on its undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions it pays with respect to any calendar year are less than the sum of (1) 85% of its ordinary income, (2) 95% of its capital gain net income and (3) 100% of its undistributed income from prior years. The Company intends to operate in such a manner so as to qualify as a REIT, but no assurance can be given that the Company will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. The Company had no significant taxes associated with its TRS for the six months ended June 30, 2022 and 2021.

If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. As of June 30, 2022, the Company believes it is in compliance with all applicable REIT requirements.

The Company evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Company has no examinations in progress and none are expected at this time.

The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2022. The Company and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The 2021, 2020 and 2019 tax years remain open to examination by tax jurisdictions to which the Company and its subsidiaries are subject. When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions on its consolidated statements of operations and comprehensive income (loss).

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2022, the Company transitioned a portion its debt to one-month term SOFR (“Term SOFR”). The Company has taken the ASC 848 elections needed to allow for the hedged forecasted transactions to transition while not discontinuing the associated hedge accounting designations. Application of these hedged accounting expedients preserves the presentation of derivatives consistent with past presentation.  The Company will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Estimated Useful Lives of Assets

Expenditures for improvements, renovations, and replacements are capitalized at cost. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

Land	Not depreciated
Buildings	30 years
Improvements	15 years
Furniture, fixtures, and equipment	3 years
Intangible lease assets	6 months

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Investments in Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2022

Schedule Of Investments [Abstract]

Schedule of Ownership in Each Property

As of June 30, 2022, the Company, through the OP and the wholly owned TRS, owned 41 properties through SPEs. The following table represents the Company’s ownership in each property by virtue of its 100% ownership of the SPEs that directly own the title to each property as of June 30, 2022 and December 31, 2021:

				Effective Ownership Percentage at
Property Name		Location	Year Acquired	June 30, 2022			December 31, 2021
Arbors on Forest Ridge		Bedford, Texas	2014		100	%		100	%
Cutter's Point		Richardson, Texas	2014		100	%		100	%
Silverbrook		Grand Prairie, Texas	2014		100	%		100	%
The Summit at Sabal Park		Tampa, Florida	2014		100	%		100	%
Courtney Cove		Tampa, Florida	2014		100	%		100	%
Radbourne Lake		Charlotte, North Carolina	2014		100	%		100	%
Timber Creek		Charlotte, North Carolina	2014		100	%		100	%
Sabal Palm at Lake Buena Vista		Orlando, Florida	2014		100	%		100	%
Cornerstone		Orlando, Florida	2015		100	%		100	%
The Preserve at Terrell Mill		Marietta, Georgia	2015		100	%		100	%
Versailles		Dallas, Texas	2015		100	%		100	%
Seasons 704 Apartments		West Palm Beach, Florida	2015		100	%		100	%
Madera Point		Mesa, Arizona	2015		100	%		100	%
Venue at 8651		Fort Worth, Texas	2015		100	%		100	%
Parc500		West Palm Beach, Florida	2016		100	%		100	%
The Venue on Camelback		Phoenix, Arizona	2016		100	%		100	%
Old Farm		Houston, Texas	2016		100	%		100	%
Stone Creek at Old Farm		Houston, Texas	2016		100	%		100	%
Hollister Place		Houston, Texas	2017		100	%		100	%
Rockledge Apartments		Marietta, Georgia	2017		100	%		100	%
Atera Apartments		Dallas, Texas	2017		100	%		100	%
Crestmont Reserve		Dallas, Texas	2018		100	%		100	%
Brandywine I & II		Nashville, Tennessee	2018		100	%		100	%
Bella Vista		Phoenix, Arizona	2019		100	%		100	%
The Enclave		Tempe, Arizona	2019		100	%		100	%
The Heritage		Phoenix, Arizona	2019		100	%		100	%
Summers Landing		Fort Worth, Texas	2019		100	%		100	%
Residences at Glenview Reserve		Nashville, Tennessee	2019		100	%		100	%
Residences at West Place		Orlando, Florida	2019		100	%		100	%
Avant at Pembroke Pines		Pembroke Pines, Florida	2019		100	%		100	%
Arbors of Brentwood		Nashville, Tennessee	2019		100	%		100	%
Torreyana Apartments		Las Vegas, Nevada	2019		100	%		100	%
Bloom		Las Vegas, Nevada	2019		100	%		100	%
Bella Solara		Las Vegas, Nevada	2019		100	%		100	%
Fairways at San Marcos		Chandler, Arizona	2020		100	%		100	%
The Verandas at Lake Norman	(1)	Charlotte, North Carolina	2021		100	%		100	%
Creekside at Matthews	(1)	Charlotte, North Carolina	2021		100	%		100	%
Six Forks Station		Raleigh, North Carolina	2021		100	%		100	%
High House at Cary		Cary, North Carolina	2021		100	%		100	%
The Adair		Sandy Springs, Georgia	2022		100	%		—		(2)
Estates on Maryland		Phoenix, Arizona	2022		100	%		—		(2)

(1) The EAT that directly owned The Verandas at Lake Norman and Creekside at Matthews was consolidated as a VIE at June 30, 2021 giving the Company an effective 100% ownership interest. The master lease agreement with the EAT that directly owned these properties terminated on December 28, 2021, at which time legal title and control transferred to the Company. Upon the transfer of title, the EAT that directly owned these properties was no longer considered a VIE.

(2) Properties were acquired in 2022; therefore, no ownership as of December 31, 2021.

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Real Estate Investments Statistics (Tables)

6 Months Ended

Jun. 30, 2022

Multifamily Properties

Business Acquisition [Line Items]

Summary of Investment in Multifamily Properties

As of June 30, 2022, the Company was invested in a total of 41 multifamily properties, as listed below:

						Average Effective Monthly Rent Per Unit (1) as of					% Occupied (2) as of
Property Name	Rentable Square Footage (in thousands)		Number of Units (3)		Date Acquired	June 30, 2022		December 31, 2021			June 30, 2022			December 31, 2021
Arbors on Forest Ridge		155		210	1/31/2014	$	1,109	$	1,021			96.7	%		96.2	%
Cutter's Point		198		196	1/31/2014		1,278		1,219			94.4	%		95.4	%
Silverbrook		526		642	1/31/2014		1,122		1,043			92.2	%		94.1	%
The Summit at Sabal Park		205		252	8/20/2014		1,340		1,198			94.8	%		96.0	%
Courtney Cove		225		324	8/20/2014		1,263		1,132			95.1	%		93.8	%
Radbourne Lake		247		225	9/30/2014		1,331		1,227			92.9	%		94.2	%
Timber Creek		248		352	9/30/2014		1,138		1,032			96.7	%		96.1	%
Sabal Palm at Lake Buena Vista		371		400	11/5/2014		1,569		1,377			96.3	%		97.8	%
Cornerstone		318		430	1/15/2015		1,306		1,152			96.7	%		95.6	%
The Preserve at Terrell Mill		692		752	2/6/2015		1,234		1,156			93.7	%		90.9	%
Versailles		301		388	2/26/2015		1,189		1,024			92.3	%		96.4	%
Seasons 704 Apartments		217		222	4/15/2015		1,619		1,410			95.5	%		96.8	%
Madera Point		193		256	8/5/2015		1,298		1,140			93.4	%		94.5	%
Venue at 8651		289		333	10/30/2015		1,068		1,006			95.1	%		94.5	%
Parc500		266		217	7/27/2016		1,694		1,543			98.1	%		96.3	%
The Venue on Camelback		256		415	10/11/2016		1,026		915			92.0	%		92.3	%
Old Farm		697		734	12/29/2016		1,271		1,207			93.6	%		93.9	%
Stone Creek at Old Farm		186		190	12/29/2016		1,283		1,248			98.4	%		96.8	%
Hollister Place		246		260	2/1/2017		1,144		1,065			96.9	%		92.5	%
Rockledge Apartments		802		708	6/30/2017		1,506		1,408			94.8	%		93.9	%
Atera Apartments		334		380	10/25/2017		1,434		1,310			95.8	%		93.9	%
Crestmont Reserve		199		242	9/26/2018		1,125		985			92.6	%		95.5	%
Brandywine I & II		414		632	9/26/2018		1,141		1,031			97.2	%		95.6	%
Bella Vista		243		248	1/28/2019		1,673		1,515			90.7	%		96.0	%
The Enclave		194		204	1/28/2019		1,706		1,507			92.2	%		96.6	%
The Heritage		199		204	1/28/2019		1,598		1,432			93.1	%		95.6	%
Summers Landing		139		196	6/7/2019		1,116		1,033			94.4	%		93.9	%
Residences at Glenview Reserve		344		360	7/17/2019		1,172		1,074			96.1	%		95.6	%
Residences at West Place		345		342	7/17/2019		1,486		1,345			93.3	%		93.0	%
Avant at Pembroke Pines		1,442		1,520	8/30/2019		1,896		1,695			95.8	%		93.9	%
Arbors of Brentwood		325		346	9/10/2019		1,405		1,284			96.4	%		95.1	%
Torreyana Apartments		309		316	11/22/2019		1,475		1,365			95.3	%		93.7	%
Bloom		498		528	11/22/2019		1,330		1,238			90.3	%		89.2	%
Bella Solara		271		320	11/22/2019		1,401		1,309			90.9	%		91.3	%
Fairways at San Marcos		340		352	11/2/2020		1,571		1,425			93.5	%		96.3	%
The Verandas at Lake Norman		241		264	6/30/2021		1,277		1,215			95.1	%		93.2	%
Creekside at Matthews		263		240	6/30/2021		1,408		1,350			95.8	%		94.2	%
Six Forks Station		360		323	9/10/2021		1,302		1,228			93.7	%		95.4	%
High House at Cary		293		302	12/7/2021		1,448		1,361			93.4	%		94.7	%
The Adair		328		232	4/1/2022		1,767		—	(4)		96.1	%		—		(4)
Estates on Maryland		324		330	4/1/2022		1,366		—	(4)		93.6	%		—		(4)
		14,043		15,387

(1) Average effective monthly rent per unit is equal to the average of the contractual rent for commenced leases as of June 30, 2022 and December 31, 2021, respectively, minus any tenant concessions over the term of the lease, divided by the number of units under commenced leases as of June 30, 2022 and December 31, 2021, respectively.

(2) Percent occupied is calculated as the number of units occupied as of June 30, 2022 and December 31, 2021, divided by the total number of units, expressed as a percentage.

(3) Includes 73 down units due to casualty events as of June 30, 2022 (see Note 5).

(4) Properties were acquired in 2022.

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Real Estate Investments (Tables)

6 Months Ended

Jun. 30, 2022

Real Estate [Abstract]

Summary of Major Components of Investments in Multifamily Properties

As of June 30, 2022, the major components of the Company’s investments in multifamily properties were as follows (in thousands):

Operating Properties	Land		Buildings and Improvements			Intangible Lease Assets			Construction in Progress			Furniture, Fixtures and Equipment			Totals
Arbors on Forest Ridge	$	2,330	$	11,767		$	—		$	1		$	1,905		$	16,003
Cutter's Point		3,330		13,133			—			(19	)		7,437			23,881
Silverbrook		4,860		25,729			—			214			5,833			36,636
The Summit at Sabal Park		5,770		13,891			—			—			2,101			21,762
Courtney Cove		5,880		14,543			—			17			2,647			23,087
Radbourne Lake		2,440		22,949			—			7			2,832			28,228
Timber Creek		11,260		13,443			—			1,348			4,114			30,165
Sabal Palm at Lake Buena Vista		7,580		42,478			—			—			3,001			53,059
Cornerstone		1,500		30,917			—			21			3,925			36,363
The Preserve at Terrell Mill		10,170		53,180			—			53			9,814			73,217
Versailles		6,720		21,971			—			—			4,282			32,973
Seasons 704 Apartments		7,480		14,797			—			3			2,610			24,890
Madera Point		4,920		18,260			—			—			2,844			26,024
Venue at 8651		2,350		17,649			—			393			3,988			24,380
Parc500		3,860		21,066			—			4			4,411			29,341
The Venue on Camelback		8,340		38,744			—			—			3,564			50,648
Old Farm		11,078		71,122			—			153			4,252			86,605
Stone Creek at Old Farm		3,493		19,742			—			2			982			24,219
Hollister Place		2,782		22,015			—			80			2,859			27,736
Rockledge Apartments		17,451		97,518			—			497			6,910			122,376
Atera Apartments		22,371		38,767			—			30			2,659			63,827
Crestmont Reserve		4,124		21,082			—			6			1,669			26,881
Brandywine I & II		6,237		73,790			—			—			5,879			85,906
Bella Vista		10,942		37,375			—			14			2,995			51,326
The Enclave		11,046		30,547			—			2			2,711			44,306
The Heritage		6,835		35,169			—			14			2,810			44,828
Summers Landing		1,798		18,494			—			1			870			21,163
Residences at Glenview Reserve		3,367		42,489			—			—			3,033			48,889
Residences at West Place		3,345		52,500			—			6			2,201			58,052
Avant at Pembroke Pines		48,435		277,392			—			1,835			13,183			340,845
Arbors of Brentwood		6,346		54,100			—			3			2,569			63,018
Torreyana Apartments		23,824		43,805			—			—			1,709			69,338
Bloom		23,805		82,673			—			143			3,363			109,984
Bella Solara		12,605		53,504			—			21			2,328			68,458
Fairways at San Marcos		10,993		72,925			—			—			2,627			86,545
The Verandas at Lake Norman		9,510		52,904			—			115			1,061			63,590
Creekside at Matthews		11,515		45,608			—			132			1,355			58,610
Six Forks Station		11,357		62,136			—			183			1,552			75,228
High House at Cary		23,809		67,741			—			51			1,093			92,694
The Adair		8,361		55,519			1,182			173			797			66,032
Estates on Maryland		11,573		64,263			1,421			1			826			78,084
		395,792		1,867,697			2,603			5,504			137,601			2,409,197
Accumulated depreciation and amortization		—		(234,392	)		(1,301	)		—			(97,008	)		(332,701	)
Total Operating Properties	$	395,792	$	1,633,305		$	1,302		$	5,504		$	40,593		$	2,076,496

As of December 31, 2021, the major components of the Company’s investments in multifamily properties were as follows (in thousands):

Operating Properties	Land		Buildings and Improvements			Intangible Lease Assets			Construction in Progress		Furniture, Fixtures and Equipment			Totals
Arbors on Forest Ridge	$	2,330	$	11,755		$	—		$	—	$	1,821		$	15,906
Cutter's Point		3,330		13,091			—			—		7,379			23,800
Silverbrook		4,860		27,495			—			—		5,566			37,921
The Summit at Sabal Park		5,770		13,882			—			—		1,978			21,630
Courtney Cove		5,880		14,350			—			—		2,444			22,674
Radbourne Lake		2,440		22,744			—			64		2,455			27,703
Timber Creek		11,260		13,310			—			239		3,827			28,636
Sabal Palm at Lake Buena Vista		7,580		42,456			—			2		2,758			52,796
Cornerstone		1,500		30,901			—			21		3,722			36,144
The Preserve at Terrell Mill		10,170		53,080			—			—		8,997			72,247
Versailles		6,720		21,887			—			—		4,075			32,682
Seasons 704 Apartments		7,480		14,644			—			—		2,078			24,202
Madera Point		4,920		18,090			—			48		2,612			25,670
Venue at 8651		2,350		17,495			—			334		3,843			24,022
Parc500		3,860		21,172			—			—		4,147			29,179
The Venue on Camelback		8,340		38,328			—			306		3,248			50,222
Old Farm		11,078		70,993			—			99		3,902			86,072
Stone Creek at Old Farm		3,493		19,714			—			2		899			24,108
Hollister Place		2,782		21,196			—			1,308		2,739			28,025
Rockledge Apartments		17,451		97,374			—			—		5,968			120,793
Atera Apartments		22,371		36,857			—			1,824		2,384			63,436
Crestmont Reserve		4,124		21,067			—			—		1,515			26,706
Brandywine I & II		6,237		73,737			—			—		5,160			85,134
Bella Vista		10,942		37,193			—			51		2,687			50,873
The Enclave		11,046		30,469			—			11		2,403			43,929
The Heritage		6,835		35,011			—			68		2,386			44,300
Summers Landing		1,798		18,433			—			1		790			21,022
Residences at Glenview Reserve		3,367		42,306			—			—		2,366			48,039
Residences at West Place		3,345		52,310			—			—		1,591			57,246
Avant at Pembroke Pines		48,434		275,968			—			1,414		11,611			337,427
Arbors of Brentwood		6,346		56,040			—			—		2,235			64,621
Torreyana Apartments		23,824		43,700			—			25		1,371			68,920
Bloom		23,805		82,545			—			16		2,697			109,063
Bella Solara		12,605		53,415			—			24		1,854			67,898
Fairways at San Marcos		10,993		72,920			—			2		1,989			85,904
The Verandas at Lake Norman		9,510		52,884			—			6		650			63,050
Creekside at Matthews		11,515		45,271			—			18		756			57,560
Six Forks Station		11,357		62,129			1,200			195		748			75,629
High House at Cary		23,809		67,654			1,376			—		768			93,607
		375,857		1,743,866			2,576			6,078		120,419			2,248,796
Accumulated depreciation and amortization		—		(203,125	)		(1,029	)		—		(82,942	)		(287,096	)
Total Operating Properties	$	375,857	$	1,540,741		$	1,547		$	6,078	$	37,477		$	1,961,700

Summary of Acquired Properties

The Company acquired two properties during the six months ended June 30, 2022, as detailed in the table below (dollars in thousands). The Company acquired two properties during the six months ended June 30, 2021 for $121.5 million.

Property Name	Location	Date of Acquisition	Purchase Price		Mortgage Debt		# Units		Effective Ownership
The Adair	Sandy Springs, Georgia	April 1, 2022	$	65,500	$	35,115		232		100	%
Estates on Maryland	Phoenix, Arizona	April 1, 2022		77,900		43,157		330		100	%
			$	143,400	$	78,272		562

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of Mortgage Debt of Company and Encumbers Multifamily Properties

The following table contains summary information concerning the mortgage debt of the Company as of June 30, 2022 (dollars in thousands):

Operating Properties		Type	Term (months)		Outstanding Principal (1)				Interest Rate (2)	Maturity Date
Arbors on Forest Ridge	(3)	Floating		84	$	13,130			3.47%	7/1/2024
Cutter's Point	(3)	Floating		84		16,640			3.47%	7/1/2024
Silverbrook	(3)	Floating		84		30,590			3.47%	7/1/2024
The Summit at Sabal Park	(3)	Floating		84		13,560			3.41%	7/1/2024
Courtney Cove	(3)	Floating		84		13,680			3.41%	7/1/2024
The Preserve at Terrell Mill	(3)	Floating		84		42,480			3.41%	7/1/2024
Versailles	(3)	Floating		84		23,880			3.41%	7/1/2024
Seasons 704 Apartments	(3)	Floating		84		17,460			3.41%	7/1/2024
Madera Point	(3)	Floating		84		15,150			3.41%	7/1/2024
Venue at 8651	(3)	Floating		84		13,734			3.57%	7/1/2024
The Venue on Camelback	(3)	Floating		84		28,093			3.47%	7/1/2024
Old Farm	(3)	Floating		84		52,886			3.47%	7/1/2024
Stone Creek at Old Farm	(3)	Floating		84		15,274			3.47%	7/1/2024
Timber Creek	(3)	Floating		84		24,100			3.05%	10/1/2025
Radbourne Lake	(3)	Floating		84		20,000			3.08%	10/1/2025
Sabal Palm at Lake Buena Vista	(3)	Floating		84		42,100			3.09%	9/1/2025
Cornerstone	(4)	Fixed		120		20,545			4.24%	3/1/2023
Parc500	(5)	Fixed		120		14,517			4.49%	8/1/2025
Hollister Place	(3)	Floating		84		14,811			3.13%	10/1/2025
Rockledge Apartments	(3)	Floating		84		68,100			3.36%	7/1/2024
Atera Apartments	(3)	Floating		84		29,500			3.27%	11/1/2024
Crestmont Reserve	(3)	Floating		84		12,061			2.97%	10/1/2025
Brandywine I & II	(3)	Floating		84		43,835			2.97%	10/1/2025
Bella Vista	(3)	Floating		84		29,040			3.11%	2/1/2026
The Enclave	(3)	Floating		84		25,322			3.11%	2/1/2026
The Heritage	(3)	Floating		84		24,625			3.11%	2/1/2026
Summers Landing	(6)	Floating		84		10,109			2.97%	10/1/2025
Residences at Glenview Reserve	(7)	Floating		84		26,108			3.23%	10/1/2025
Residences at West Place	(7)	Fixed		120		33,817			4.24%	10/1/2028
Avant at Pembroke Pines	(3)	Floating		84		177,100			3.22%	9/1/2026
Arbors of Brentwood	(3)	Floating		84		34,237			3.22%	10/1/2026
Torreyana Apartments	(3)	Floating		84		37,400			3.49%	12/1/2026
Bloom	(3)	Floating		84		58,850			3.49%	12/1/2026
Bella Solara	(3)	Floating		84		36,575			3.49%	12/1/2026
Fairways at San Marcos	(3)	Floating		84		46,464			3.22%	12/1/2027
The Verandas at Lake Norman	(8)	Floating		84		34,925			2.94%	7/1/2028
Creekside at Matthews	(8)	Floating		84		31,900			2.94%	7/1/2028
Six Forks Station	(9)	Floating		120		41,180			2.80%	10/1/2031
High House at Cary	(8)	Floating		84		46,625			3.10%	1/1/2029
The Adair	(3)	Floating		84		35,115			3.06%	4/1/2029
Estates on Maryland	(3)	Floating		84		43,157			3.06%	4/1/2029
					$	1,358,675
Fair market value adjustment						958		(10)
Deferred financing costs, net of accumulated amortization of $5,943						(8,461	)
					$	1,351,172

(1) Mortgage debt that is non-recourse to the Company and encumbers the multifamily properties.

(2) Interest rate is based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. Reference rates used in our portfolio include one-month LIBOR and 30-Day Average Secured Overnight Financing Rate (“SOFR”). As of June 30, 2022, one-month LIBOR was 1.79% and SOFR was 1.09%.

(3) Loan can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13^th month of the term through the 81^st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(4) Debt in the amount of $18.0 million was assumed upon acquisition of this property and recorded at approximated fair value. The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013, and had a term of 120 months with an initial 24 months of interest only. At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months of interest only. The first mortgage is pre-payable and subject to yield maintenance from the 13^th month through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. Concurrently with the acquisition of the property, the Company placed a supplemental second mortgage on the property with a principal amount of approximately $5.8 million, a fixed rate of 4.70%, and with a maturity date that is the same time as the first mortgage. The supplemental second mortgage is pre-payable and subject to yield maintenance from the date of issuance through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity. As of June 30, 2022, the total indebtedness secured by the property had a blended interest rate of 4.24%.

(5) Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan is open to pre-payment in the last four months of the term.

(6) Debt was assumed upon acquisition of this property and recorded at approximated fair value.  It can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13^th month of the term through the 81^st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.

(7) Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan can be prepaid at the greater of par plus 1.00% of the unpaid principal balance or the product obtained by multiplying the present value of the principal being prepaid by the excess of the monthly fixed interest rate of the loan over a daily discount rate. The loan is open to pre-payment in the last three months of the term.  

(8) Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25^th month of the term through the 36^th month of the term, the loan can be pre-paid at par plus 2% of the unpaid principal balance. Starting in the 37^th month of the term, the loan can be pre-paid at par plus 1% of the unpaid principal balance. The loan is open to pre-payment in the last three months of the term.

(9) Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25^th month of the term through the 116^th of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term.

(10) The Company reflected a valuation adjustment on its fixed rate debt for Parc500 and Residences at West Place to adjust it to fair market value on their respective dates of acquisition for the difference between the fair value and the assumed principal amount of debt. The difference is amortized into interest expense over the remaining terms of the mortgages.

Schedule of Credit Facility

The following table contains summary information concerning the Company’s credit facility as of June 30, 2022 (dollars in thousands):

	Type	Term (months)		Outstanding Principal			Interest Rate (1)	Maturity Date
Corporate Credit Facility	Floating		36	$	335,000		3.94%	6/30/2024
Deferred financing costs, net of accumulated amortization of $685					(1,797	)
				$	333,203

(1) Interest rate is based on Term SOFR plus an applicable margin.  Term SOFR as of June 30, 2022 was 1.60%.

Schedule of Debt Maturities

Schedule of Debt Maturities

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2022 are as follows (in thousands):

	Operating Properties		Credit Facility		Total
2022	$	650	$	—	$	650
2023		21,003		—		21,003
2024		394,952		335,000		729,952
2025		205,738		—		205,738
2026		423,149		—		423,149
Thereafter		313,183		—		313,183
Total	$	1,358,675	$	335,000	$	1,693,675

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Fair Value of Derivative and Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Company's Outstanding Interest Rate Swaps

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
July 1, 2017	July 1, 2022	KeyBank		100,000		1.7820	%
June 1, 2019	June 1, 2024	KeyBank		50,000		2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000		2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000		1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000		1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500		1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000		0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000		0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000		0.6140	%
			$	1,267,500		1.1245	%	(2)

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

(2) Represents the weighted average fixed rate of the interest rate swaps.

As of June 30, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk with future effective dates (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
September 1, 2026	January 1, 2027	KeyBank	$	92,500		1.7980	%

(1) The floating rate option for the interest rate swaps is one-month LIBOR. As of June 30, 2022, one-month LIBOR was 1.79%.

Schedule of Outstanding Interest Rate Derivatives

As of June 30, 2022 and 2021, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):

As of June 30,	Number of Instruments		Notional Amount
2022		17	$	537,118
2021		15	$	346,542

Summary of Derivative Financial Instruments and Classification on the Consolidated Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance Sheet Location	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Interest rate swaps	Fair market value of interest rate swaps	$	75,461	$	11,045	$	—	$	7,519
Derivatives not designated as hedging instruments:
Interest rate caps	Prepaid and other assets		2,374		263		—		—
Total		$	77,835	$	11,308	$	—	$	7,519

Summary of Derivative Financial Instruments on Consolidated Statements of Operations and Comprehensive Income (Loss)

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Amount of gain (loss) recognized in OCI					Location of gain (loss) reclassified from accumulated	Amount of gain (loss) reclassified from OCI into income
	2022		2021			OCI into income	2022			2021
Derivatives designated as hedging instruments:
For the three months ended June 30,
Interest rate products	$	16,291	$	(8,551	)	Interest expense	$	(1,066	)	$	(3,746	)
For the six months ended June 30,
Interest rate products	$	67,308	$	19,128		Interest expense	$	(4,628	)	$	(7,409	)

	Location of gain (loss)	Amount of gain (loss) recognized in income
	recognized in income	2022			2021
Derivatives not designated as hedging instruments:
For the three months ended June 30,
Interest rate products	Interest expense	$	(181	)	$	55
For the six months ended June 30,
Interest rate products	Interest expense	$	(1,365	)	$	43

Schedule of Carrying Value and Estimated Fair Value of Debt Instruments

The table below presents the carrying value and estimated fair value of our debt at June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022				December 31, 2021
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Fixed rate debt	$	68,879	$	67,454	$	69,285	$	71,141
Floating rate debt (1)	$	1,624,796	$	1,597,759	$	1,491,861	$	1,525,298

(1) Includes balances outstanding under our Corporate Credit Facility.

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Class Of Stock [Line Items]

Summary of Restricted Stock Units

The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of June 30, 2022:

	2022
	Number of Units				Weighted Average Grant Date Fair Value
Outstanding January 1,		589,283			$	39.17
Granted		142,159				83.88
Vested		(202,519	)	(1)		35.34
Outstanding June 30,		528,923			$	52.66

(1) Certain key employees of the Adviser elected to net the taxes owed upon vesting against the shares issued resulting in 164,851 shares being issued as shown on the Consolidated Statement of Stockholders’ Equity.

Summary Information of 2020 ATM Program

The following table contains summary information of the 2020 ATM Program since its inception:

Gross proceeds	$	62,310,967
Common shares issued		1,120,910
Gross average sale price per share	$	55.59
Sales commissions	$	934,665
Offering costs		1,253,360
Net proceeds		60,122,942
Average price per share, net	$	53.64

2016 LTIP

Class Of Stock [Line Items]

Summary of Vesting of Restricted Stock Units

The following table contains information regarding the vesting of restricted stock units under the 2016 LTIP for the next five calendar years subsequent to June 30, 2022:

	Shares Vesting
	February		May		Total
2023		139,095		22,019		161,114
2024		132,699		22,017		154,716
2025		97,811		22,017		119,828
2026		66,114		—		66,114
2027		27,151		—		27,151
Total		462,870		66,053		528,923

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted loss per share for the periods presented (in thousands, except per share amounts):

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2022			2021			2022			2021
Numerator for loss per share:
Net loss		$	(7,827	)	$	(3,418	)	$	(12,494	)	$	(10,318	)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership			(30	)		(10	)		(44	)		(31	)
Net loss attributable to common stockholders		$	(7,797	)	$	(3,408	)	$	(12,450	)	$	(10,287	)
Denominator for loss per share:
Weighted average common shares outstanding			25,672			25,140			25,646			25,104
Denominator for basic loss per share			25,672			25,140			25,646			25,104
Weighted average unvested restricted stock units			539			613			556			596
Denominator for diluted earnings per share	(1)		25,672			25,140			25,646			25,104
Loss per weighted average common share:
Basic		$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)
Diluted		$	(0.30	)	$	(0.14	)	$	(0.49	)	$	(0.41	)

(1) If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the diluted earnings per share calculation.

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Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Schedule of Redeemable Noncontrolling Interests

The following table sets forth the redeemable noncontrolling interests in the OP for the six months ended June 30, 2022 (in thousands):

Redeemable noncontrolling interests in the OP, December 31, 2021	$	6,139
Net loss attributable to redeemable noncontrolling interests in the OP		(44	)
Other comprehensive income attributable to redeemable noncontrolling interests in the OP		231
Contributions from redeemable noncontrolling interests in the OP		(562	)
Distributions to redeemable noncontrolling interests in the OP		125
Issuance of operating partnership units for purchase of noncontrolling interests		2,444
Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP		(1,311	)
Redeemable noncontrolling interests in the OP, June 30, 2022	$	7,022

Summary of Fees Incurred to BH And Its Affiliates As Well As Reimbursements Paid to BH

The following is a summary of fees that the properties incurred to BH and its affiliates, as well as reimbursements paid to BH from the properties for various operating expenses, for the three and six months ended June 30, 2022 and 2021 (in thousands):

		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2022		2021		2022		2021
Fees incurred
Property management fees	(1)	$	1,904	$	1,510	$	3,654	$	2,989
Construction supervision fees	(2)		440		302		765		556
Design fees	(2)		47		24		47		78
Acquisition fees	(3)		231		275		231		275
Aerwave fees	(4)		221		—		346		—
Reimbursements
Payroll and benefits	(4)		5,640		4,819		10,804		9,057
Other reimbursements	(5)		1,134		857		2,161		1,682

(1) Included in property management fees on the consolidated statements of operations and comprehensive income (loss).

(2) Capitalized on the consolidated balance sheets and reflected in buildings and improvements.

(3) Includes due diligence costs. Acquisition fees are capitalized to real estate assets on the consolidated balance sheets.

(4) Included in property operating expenses on the consolidated statements of operations and comprehensive income (loss).

(5) Includes property operating expenses such as repairs and maintenance costs and certain property general and administrative expenses, which are included on the consolidated statements of operations and comprehensive income (loss).

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Organization and Description of Business - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 shares
Real Estate Properties [Line Items]
Date of incorporation	Sep. 19, 2014
OP Units, outstanding	26,050,945
OP Units owned	25,951,154
Maximum
Real Estate Properties [Line Items]
Investments in real estate-related debt and securities	30.00%
NexPoint Residential Trust Operating Partnership LP
Real Estate Properties [Line Items]
Percentage of OP Units, outstanding owned by company	99.60%
B H Equity
Real Estate Properties [Line Items]
Percentage of OP Units, outstanding owned by noncontrolling limited partner	0.40%
OP
Real Estate Properties [Line Items]
Percentage of ownership in portfolio	99.90%
TRS
Real Estate Properties [Line Items]
Percentage of ownership in portfolio	0.10%
Noncontrolling Limited Partner | B H Equity
Real Estate Properties [Line Items]
OP Units owned	99,791

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Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details)	6 Months Ended
	Jun. 30, 2022
Land
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	Not depreciated
Buildings
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	30 years
Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	15 years
Furniture, Fixtures, and Equipment
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	3 years
Intangible Lease Assets
Property Plant And Equipment [Line Items]
Estimated useful lives of assets	6 months

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Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 USD ($) Property
Summary Of Significant Accounting Policies [Line Items]
Impairment of real estate assets	$ 0
Number of properties held for sale | Property	0
Minimum percentage of distributed taxable income to qualify as REIT	90.00%
Percentage of non-deductible excise tax on distribution	4.00%
Percentage of ordinary income considered for payment of distribution	85.00%
Percentage of capital gain net income considered for payment of distribution	95.00%
Percentage of undistributed income of prior considered for payment of distribution	100.00%
Unrecognized tax benefit or expense, accrued interest or penalties	$ 0
SOFR
Summary Of Significant Accounting Policies [Line Items]
Debt portion transitioned period	1 month
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of uncertain tax positions likelihood of being sustained	50.00%

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Investments in Subsidiaries - Additional Information (Details) - subsidiary	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Schedule Of Investments [Abstract]
Consolidated investment in SPEs	100.00%	100.00%
Number of wholly owned subsidiaries	41

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Investments in Subsidiaries - Schedule of Ownership in Each Property (Details)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Arbors on Forest Ridge | Bedford, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Cutter's Point | Richardson, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Silverbrook | Grand Prairie, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Summit at Sabal Park | Tampa, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Courtney Cove | Tampa, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Radbourne Lake | Charlotte, North Carolina
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Timber Creek | Charlotte, North Carolina
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Sabal Palm at Lake Buena Vista | Orlando, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2014
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Cornerstone | Orlando, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2015
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Preserve at Terrell Mill | Marietta, Georgia
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2015
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Versailles | Dallas, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2015
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Seasons 704 Apartments | West Palm Beach, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2015
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Madera Point | Mesa, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2015
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Venue at 8651 | Fort Worth, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2015
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Parc500 | West Palm Beach, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2016
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Venue on Camelback | Phoenix, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2016
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Old Farm | Houston, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2016
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Stone Creek at Old Farm | Houston, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2016
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Hollister Place | Houston, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2017
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Rockledge Apartments | Marietta, Georgia
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2017
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Atera Apartments | Dallas, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2017
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Crestmont Reserve | Dallas, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2018
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Brandywine I & II | Nashville, Tennessee
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2018
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Bella Vista | Phoenix, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Enclave | Tempe, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Heritage | Phoenix, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Summers Landing | Fort Worth, Texas
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Residences at Glenview Reserve | Nashville, Tennessee
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Residences at West Place | Orlando, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Fairways At San Marcos | Chandler, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2020
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Avant at Pembroke Pines | Pembroke Pines, Florida
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Torreyana Apartments | Las Vegas, Nevada
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Verandas At Lake Norman | Charlotte, North Carolina
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2021
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Arbors of Brentwood | Nashville, Tennessee
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Bloom | Las Vegas, Nevada
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Creekside At Matthews | Charlotte, North Carolina
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2021
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
High House At Cary | Cary, North Carolina
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2021
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Bella Solara | Las Vegas, Nevada
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2019
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Six Forks Station | Raleigh North Carolina
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2021
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
The Adair | Sandy Springs, Georgia
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2022
Effective ownership percentage, wholly owned subsidiary	100.00%
Estates On Maryland | Phoenix, Arizona
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Year of acquisition	2022
Effective ownership percentage, wholly owned subsidiary	100.00%

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Investments in Subsidiaries - Schedule of Ownership in Each Property (Parenthetical) (Details)	Jun. 30, 2022	Dec. 31, 2021
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Effective ownership percentage, wholly owned subsidiary	100.00%	100.00%
Creekside At Matthews
Wholly Owned Subsidiaries And Variable Interest Entities [Line Items]
Effective ownership percentage, wholly owned subsidiary	100.00%

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Real Estate Investments Statistics - Additional Information (Details)	Jun. 30, 2022 Property
Multifamily Properties
Business Acquisition [Line Items]
Number of multifamily properties	41

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Real Estate Investments Statistics - Summary of Investment in Multifamily Properties (Details) ft² in Thousands		6 Months Ended
		Jun. 30, 2022 ft² Property $ / Property	Dec. 31, 2021 $ / Property
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		14,043
Number of Units | Property	[1]	15,387
Arbors on Forest Ridge
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		155
Number of Units | Property	[1]	210
Date Acquired		Jan. 31, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,109	1,021
% Occupied	[3]	96.70%	96.20%
Cutter's Point
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		198
Number of Units | Property	[1]	196
Date Acquired		Jan. 31, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,278	1,219
% Occupied	[3]	94.40%	95.40%
Silverbrook
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		526
Number of Units | Property	[1]	642
Date Acquired		Jan. 31, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,122	1,043
% Occupied	[3]	92.20%	94.10%
The Summit at Sabal Park
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		205
Number of Units | Property	[1]	252
Date Acquired		Aug. 20, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,340	1,198
% Occupied	[3]	94.80%	96.00%
Courtney Cove
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		225
Number of Units | Property	[1]	324
Date Acquired		Aug. 20, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,263	1,132
% Occupied	[3]	95.10%	93.80%
Radbourne Lake
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		247
Number of Units | Property	[1]	225
Date Acquired		Sep. 30, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,331	1,227
% Occupied	[3]	92.90%	94.20%
Timber Creek
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		248
Number of Units | Property	[1]	352
Date Acquired		Sep. 30, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,138	1,032
% Occupied	[3]	96.70%	96.10%
Sabal Palm at Lake Buena Vista
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		371
Number of Units | Property	[1]	400
Date Acquired		Nov. 05, 2014
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,569	1,377
% Occupied	[3]	96.30%	97.80%
Cornerstone
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		318
Number of Units | Property	[1]	430
Date Acquired		Jan. 15, 2015
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,306	1,152
% Occupied	[3]	96.70%	95.60%
The Preserve at Terrell Mill
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		692
Number of Units | Property	[1]	752
Date Acquired		Feb. 06, 2015
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,234	1,156
% Occupied	[3]	93.70%	90.90%
Versailles
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		301
Number of Units | Property	[1]	388
Date Acquired		Feb. 26, 2015
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,189	1,024
% Occupied	[3]	92.30%	96.40%
Seasons 704 Apartments
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		217
Number of Units | Property	[1]	222
Date Acquired		Apr. 15, 2015
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,619	1,410
% Occupied	[3]	95.50%	96.80%
Madera Point
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		193
Number of Units | Property	[1]	256
Date Acquired		Aug. 05, 2015
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,298	1,140
% Occupied	[3]	93.40%	94.50%
Venue at 8651
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		289
Number of Units | Property	[1]	333
Date Acquired		Oct. 30, 2015
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,068	1,006
% Occupied	[3]	95.10%	94.50%
Parc500
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		266
Number of Units | Property	[1]	217
Date Acquired		Jul. 27, 2016
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,694	1,543
% Occupied	[3]	98.10%	96.30%
The Venue on Camelback
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		256
Number of Units | Property	[1]	415
Date Acquired		Oct. 11, 2016
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,026	915
% Occupied	[3]	92.00%	92.30%
Old Farm
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		697
Number of Units | Property	[1]	734
Date Acquired		Dec. 29, 2016
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,271	1,207
% Occupied	[3]	93.60%	93.90%
Stone Creek at Old Farm
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		186
Number of Units | Property	[1]	190
Date Acquired		Dec. 29, 2016
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,283	1,248
% Occupied	[3]	98.40%	96.80%
Hollister Place
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		246
Number of Units | Property	[1]	260
Date Acquired		Feb. 01, 2017
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,144	1,065
% Occupied	[3]	96.90%	92.50%
Rockledge Apartments
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		802
Number of Units | Property	[1]	708
Date Acquired		Jun. 30, 2017
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,506	1,408
% Occupied	[3]	94.80%	93.90%
Atera Apartments
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		334
Number of Units | Property	[1]	380
Date Acquired		Oct. 25, 2017
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,434	1,310
% Occupied	[3]	95.80%	93.90%
Crestmont Reserve
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		199
Number of Units | Property	[1]	242
Date Acquired		Sep. 26, 2018
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,125	985
% Occupied	[3]	92.60%	95.50%
Brandywine I & II
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		414
Number of Units | Property	[1]	632
Date Acquired		Sep. 26, 2018
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,141	1,031
% Occupied	[3]	97.20%	95.60%
Bella Vista
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		243
Number of Units | Property	[1]	248
Date Acquired		Jan. 28, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,673	1,515
% Occupied	[3]	90.70%	96.00%
The Enclave
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		194
Number of Units | Property	[1]	204
Date Acquired		Jan. 28, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,706	1,507
% Occupied	[3]	92.20%	96.60%
The Heritage
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		199
Number of Units | Property	[1]	204
Date Acquired		Jan. 28, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,598	1,432
% Occupied	[3]	93.10%	95.60%
Summers Landing
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		139
Number of Units | Property	[1]	196
Date Acquired		Jun. 07, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,116	1,033
% Occupied	[3]	94.40%	93.90%
Residences at Glenview Reserve
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		344
Number of Units | Property	[1]	360
Date Acquired		Jul. 17, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,172	1,074
% Occupied	[3]	96.10%	95.60%
Residences at West Place
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		345
Number of Units | Property	[1]	342
Date Acquired		Jul. 17, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,486	1,345
% Occupied	[3]	93.30%	93.00%
Avant at Pembroke Pines
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		1,442
Number of Units | Property	[1]	1,520
Date Acquired		Aug. 30, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,896	1,695
% Occupied	[3]	95.80%	93.90%
Arbors of Brentwood
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		325
Number of Units | Property	[1]	346
Date Acquired		Sep. 10, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,405	1,284
% Occupied	[3]	96.40%	95.10%
Torreyana Apartments
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		309
Number of Units | Property	[1]	316
Date Acquired		Nov. 22, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,475	1,365
% Occupied	[3]	95.30%	93.70%
Fairways at San Marcos
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		340
Number of Units | Property	[1]	352
Date Acquired		Nov. 02, 2020
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,571	1,425
% Occupied	[3]	93.50%	96.30%
Bloom
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		498
Number of Units | Property	[1]	528
Date Acquired		Nov. 22, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,330	1,238
% Occupied	[3]	90.30%	89.20%
The Verandas At Lake Norman
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		241
Number of Units | Property	[1]	264
Date Acquired		Jun. 30, 2021
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,277	1,215	[4]
% Occupied	[3]	95.10%	93.20%	[4]
Bella Solara
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		271
Number of Units | Property	[1]	320
Date Acquired		Nov. 22, 2019
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,401	1,309
% Occupied	[3]	90.90%	91.30%
Creekside At Matthews
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		263
Number of Units | Property	[1]	240
Date Acquired		Jun. 30, 2021
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,408	1,350	[4]
% Occupied	[3]	95.80%	94.20%	[4]
High House At Cary
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		293
Number of Units | Property	[1]	302
Date Acquired		Dec. 07, 2021
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,448	1,361
% Occupied	[3]	93.40%	94.70%
Six Forks Station
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		360
Number of Units | Property	[1]	323
Date Acquired		Sep. 10, 2021
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,302	1,228	[4]
% Occupied	[3]	93.70%	95.40%	[4]
The Adair
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		328
Number of Units | Property	[1]	232
Date Acquired		Apr. 01, 2022
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,767
% Occupied	[3]	96.10%
Estates On Maryland
Real Estate Properties [Line Items]
Rentable Square Footage | ft²		324
Number of Units | Property	[1]	330
Date Acquired		Apr. 01, 2022
Average Effective Monthly Rent Per Unit | $ / Property	[2]	1,366
% Occupied	[3]	93.60%

[1] Includes 73 down units due to casualty events as of June 30, 2022 (see Note 5).

[2] Average effective monthly rent per unit is equal to the average of the contractual rent for commenced leases as of June 30, 2022 and December 31, 2021, respectively, minus any tenant concessions over the term of the lease, divided by the number of units under commenced leases as of June 30, 2022 and December 31, 2021, respectively.

[3] Percent occupied is calculated as the number of units occupied as of June 30, 2022 and December 31, 2021, divided by the total number of units, expressed as a percentage.

[4] Properties were acquired in 2022.

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Real Estate Investments - Summary of Major Components of Investments in Multifamily Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Real Estate Properties [Line Items]
Land	$ 395,791	$ 375,857
Buildings and improvements	1,867,698	1,743,866
Intangible lease assets	2,603	2,576
Construction in progress	5,504	6,078
Furniture, fixtures, and equipment	137,601	120,419
Real estate investment, gross	2,409,197	2,248,796
Accumulated depreciation and amortization	(332,701)	(287,096)
Multifamily Properties | Arbors on Forest Ridge
Real Estate Properties [Line Items]
Land	2,330	2,330
Buildings and improvements	11,767	11,755
Construction in progress	1
Furniture, fixtures, and equipment	1,905	1,821
Real estate investment, gross	16,003	15,906
Multifamily Properties | Cutter's Point
Real Estate Properties [Line Items]
Land	3,330	3,330
Buildings and improvements	13,133	13,091
Construction in progress	(19)
Furniture, fixtures, and equipment	7,437	7,379
Real estate investment, gross	23,881	23,800
Multifamily Properties | Silverbrook
Real Estate Properties [Line Items]
Land	4,860	4,860
Buildings and improvements	25,729	27,495
Construction in progress	214
Furniture, fixtures, and equipment	5,833	5,566
Real estate investment, gross	36,636	37,921
Multifamily Properties | The Summit at Sabal Park
Real Estate Properties [Line Items]
Land	5,770	5,770
Buildings and improvements	13,891	13,882
Furniture, fixtures, and equipment	2,101	1,978
Real estate investment, gross	21,762	21,630
Multifamily Properties | Courtney Cove
Real Estate Properties [Line Items]
Land	5,880	5,880
Buildings and improvements	14,543	14,350
Construction in progress	17
Furniture, fixtures, and equipment	2,647	2,444
Real estate investment, gross	23,087	22,674
Multifamily Properties | Radbourne Lake
Real Estate Properties [Line Items]
Land	2,440	2,440
Buildings and improvements	22,949	22,744
Construction in progress	7	64
Furniture, fixtures, and equipment	2,832	2,455
Real estate investment, gross	28,228	27,703
Multifamily Properties | Timber Creek
Real Estate Properties [Line Items]
Land	11,260	11,260
Buildings and improvements	13,443	13,310
Construction in progress	1,348	239
Furniture, fixtures, and equipment	4,114	3,827
Real estate investment, gross	30,165	28,636
Multifamily Properties | Sabal Palm at Lake Buena Vista
Real Estate Properties [Line Items]
Land	7,580	7,580
Buildings and improvements	42,478	42,456
Construction in progress		2
Furniture, fixtures, and equipment	3,001	2,758
Real estate investment, gross	53,059	52,796
Multifamily Properties | Cornerstone
Real Estate Properties [Line Items]
Land	1,500	1,500
Buildings and improvements	30,917	30,901
Construction in progress	21	21
Furniture, fixtures, and equipment	3,925	3,722
Real estate investment, gross	36,363	36,144
Multifamily Properties | The Preserve at Terrell Mill
Real Estate Properties [Line Items]
Land	10,170	10,170
Buildings and improvements	53,180	53,080
Construction in progress	53
Furniture, fixtures, and equipment	9,814	8,997
Real estate investment, gross	73,217	72,247
Multifamily Properties | Versailles
Real Estate Properties [Line Items]
Land	6,720	6,720
Buildings and improvements	21,971	21,887
Furniture, fixtures, and equipment	4,282	4,075
Real estate investment, gross	32,973	32,682
Multifamily Properties | Seasons 704 Apartments
Real Estate Properties [Line Items]
Land	7,480	7,480
Buildings and improvements	14,797	14,644
Construction in progress	3
Furniture, fixtures, and equipment	2,610	2,078
Real estate investment, gross	24,890	24,202
Multifamily Properties | Madera Point
Real Estate Properties [Line Items]
Land	4,920	4,920
Buildings and improvements	18,260	18,090
Construction in progress		48
Furniture, fixtures, and equipment	2,844	2,612
Real estate investment, gross	26,024	25,670
Multifamily Properties | Venue at 8651
Real Estate Properties [Line Items]
Land	2,350	2,350
Buildings and improvements	17,649	17,495
Construction in progress	393	334
Furniture, fixtures, and equipment	3,988	3,843
Real estate investment, gross	24,380	24,022
Multifamily Properties | Parc500
Real Estate Properties [Line Items]
Land	3,860	3,860
Buildings and improvements	21,066	21,172
Construction in progress	4
Furniture, fixtures, and equipment	4,411	4,147
Real estate investment, gross	29,341	29,179
Multifamily Properties | The Venue on Camelback
Real Estate Properties [Line Items]
Land	8,340	8,340
Buildings and improvements	38,744	38,328
Construction in progress		306
Furniture, fixtures, and equipment	3,564	3,248
Real estate investment, gross	50,648	50,222
Multifamily Properties | Old Farm
Real Estate Properties [Line Items]
Land	11,078	11,078
Buildings and improvements	71,122	70,993
Construction in progress	153	99
Furniture, fixtures, and equipment	4,252	3,902
Real estate investment, gross	86,605	86,072
Multifamily Properties | Stone Creek at Old Farm
Real Estate Properties [Line Items]
Land	3,493	3,493
Buildings and improvements	19,742	19,714
Construction in progress	2	2
Furniture, fixtures, and equipment	982	899
Real estate investment, gross	24,219	24,108
Multifamily Properties | Hollister Place
Real Estate Properties [Line Items]
Land	2,782	2,782
Buildings and improvements	22,015	21,196
Construction in progress	80	1,308
Furniture, fixtures, and equipment	2,859	2,739
Real estate investment, gross	27,736	28,025
Multifamily Properties | Rockledge Apartments
Real Estate Properties [Line Items]
Land	17,451	17,451
Buildings and improvements	97,518	97,374
Construction in progress	497
Furniture, fixtures, and equipment	6,910	5,968
Real estate investment, gross	122,376	120,793
Multifamily Properties | Atera Apartments
Real Estate Properties [Line Items]
Land	22,371	22,371
Buildings and improvements	38,767	36,857
Construction in progress	30	1,824
Furniture, fixtures, and equipment	2,659	2,384
Real estate investment, gross	63,827	63,436
Multifamily Properties | Crestmont Reserve
Real Estate Properties [Line Items]
Land	4,124	4,124
Buildings and improvements	21,082	21,067
Construction in progress	6
Furniture, fixtures, and equipment	1,669	1,515
Real estate investment, gross	26,881	26,706
Multifamily Properties | Brandywine I & II
Real Estate Properties [Line Items]
Land	6,237	6,237
Buildings and improvements	73,790	73,737
Furniture, fixtures, and equipment	5,879	5,160
Real estate investment, gross	85,906	85,134
Multifamily Properties | Bella Vista
Real Estate Properties [Line Items]
Land	10,942	10,942
Buildings and improvements	37,375	37,193
Construction in progress	14	51
Furniture, fixtures, and equipment	2,995	2,687
Real estate investment, gross	51,326	50,873
Multifamily Properties | The Enclave
Real Estate Properties [Line Items]
Land	11,046	11,046
Buildings and improvements	30,547	30,469
Construction in progress	2	11
Furniture, fixtures, and equipment	2,711	2,403
Real estate investment, gross	44,306	43,929
Multifamily Properties | The Heritage
Real Estate Properties [Line Items]
Land	6,835	6,835
Buildings and improvements	35,169	35,011
Construction in progress	14	68
Furniture, fixtures, and equipment	2,810	2,386
Real estate investment, gross	44,828	44,300
Multifamily Properties | Summers Landing
Real Estate Properties [Line Items]
Land	1,798	1,798
Buildings and improvements	18,494	18,433
Construction in progress	1	1
Furniture, fixtures, and equipment	870	790
Real estate investment, gross	21,163	21,022
Multifamily Properties | Residences at Glenview Reserve
Real Estate Properties [Line Items]
Land	3,367	3,367
Buildings and improvements	42,489	42,306
Furniture, fixtures, and equipment	3,033	2,366
Real estate investment, gross	48,889	48,039
Multifamily Properties | Residences at West Place
Real Estate Properties [Line Items]
Land	3,345	3,345
Buildings and improvements	52,500	52,310
Construction in progress	6
Furniture, fixtures, and equipment	2,201	1,591
Real estate investment, gross	58,052	57,246
Multifamily Properties | Avant at Pembroke Pines
Real Estate Properties [Line Items]
Land	48,435	48,434
Buildings and improvements	277,392	275,968
Construction in progress	1,835	1,414
Furniture, fixtures, and equipment	13,183	11,611
Real estate investment, gross	340,845	337,427
Multifamily Properties | Arbors of Brentwood
Real Estate Properties [Line Items]
Land	6,346	6,346
Buildings and improvements	54,100	56,040
Construction in progress	3
Furniture, fixtures, and equipment	2,569	2,235
Real estate investment, gross	63,018	64,621
Multifamily Properties | Torreyana Apartments
Real Estate Properties [Line Items]
Land	23,824	23,824
Buildings and improvements	43,805	43,700
Construction in progress		25
Furniture, fixtures, and equipment	1,709	1,371
Real estate investment, gross	69,338	68,920
Multifamily Properties | Fairways at San Marcos
Real Estate Properties [Line Items]
Land	10,993	10,993
Buildings and improvements	72,925	72,920
Construction in progress		2
Furniture, fixtures, and equipment	2,627	1,989
Real estate investment, gross	86,545	85,904
Multifamily Properties | Bloom
Real Estate Properties [Line Items]
Land	23,805	23,805
Buildings and improvements	82,673	82,545
Construction in progress	143	16
Furniture, fixtures, and equipment	3,363	2,697
Real estate investment, gross	109,984	109,063
Multifamily Properties | The Verandas At Lake Norman
Real Estate Properties [Line Items]
Land	9,510	9,510
Buildings and improvements	52,904	52,884
Construction in progress	115	6
Furniture, fixtures, and equipment	1,061	650
Real estate investment, gross	63,590	63,050
Multifamily Properties | Bella Solara
Real Estate Properties [Line Items]
Land	12,605	12,605
Buildings and improvements	53,504	53,415
Construction in progress	21	24
Furniture, fixtures, and equipment	2,328	1,854
Real estate investment, gross	68,458	67,898
Multifamily Properties | Creekside At Matthews
Real Estate Properties [Line Items]
Land	11,515	11,515
Buildings and improvements	45,608	45,271
Construction in progress	132	18
Furniture, fixtures, and equipment	1,355	756
Real estate investment, gross	58,610	57,560
Multifamily Properties | Six Forks Station
Real Estate Properties [Line Items]
Land	11,357	11,357
Buildings and improvements	62,136	62,129
Intangible lease assets		1,200
Construction in progress	183	195
Furniture, fixtures, and equipment	1,552	748
Real estate investment, gross	75,228	75,629
Multifamily Properties | High House At Cary
Real Estate Properties [Line Items]
Land	23,809	23,809
Buildings and improvements	67,741	67,654
Intangible lease assets		1,376
Construction in progress	51
Furniture, fixtures, and equipment	1,093	768
Real estate investment, gross	92,694	93,607
Multifamily Properties | The Adair
Real Estate Properties [Line Items]
Land	8,361
Buildings and improvements	55,519
Intangible lease assets	1,182
Construction in progress	173
Furniture, fixtures, and equipment	797
Real estate investment, gross	66,032
Multifamily Properties | Estates On Maryland
Real Estate Properties [Line Items]
Land	11,573
Buildings and improvements	64,263
Intangible lease assets	1,421
Construction in progress	1
Furniture, fixtures, and equipment	826
Real estate investment, gross	78,084
Multifamily Properties | Operating Properties
Real Estate Properties [Line Items]
Real estate investment, gross	2,409,197	2,248,796
Accumulated depreciation and amortization	(332,701)	(287,096)
Total Net Operating Real Estate Investments	2,076,496	1,961,700
Multifamily Properties | Operating Properties | Intangible Lease Assets
Real Estate Properties [Line Items]
Real estate investment, gross	2,603	2,576
Accumulated depreciation and amortization	(1,301)	(1,029)
Total Net Operating Real Estate Investments	1,302	1,547
Multifamily Properties | Operating Properties | Land
Real Estate Properties [Line Items]
Real estate investment, gross	395,792	375,857
Total Net Operating Real Estate Investments	395,792	375,857
Multifamily Properties | Operating Properties | Construction in Progress
Real Estate Properties [Line Items]
Real estate investment, gross	5,504	6,078
Total Net Operating Real Estate Investments	5,504	6,078
Multifamily Properties | Operating Properties | Furniture, Fixtures, and Equipment
Real Estate Properties [Line Items]
Real estate investment, gross	137,601	120,419
Accumulated depreciation and amortization	(97,008)	(82,942)
Total Net Operating Real Estate Investments	40,593	37,477
Multifamily Properties | Operating Properties | Improvements
Real Estate Properties [Line Items]
Real estate investment, gross	1,867,697	1,743,866
Accumulated depreciation and amortization	(234,392)	(203,125)
Total Net Operating Real Estate Investments	$ 1,633,305	$ 1,540,741

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Real Estate Investments - Additional Information (Details) $ in Thousands		3 Months Ended		6 Months Ended
	Apr. 01, 2022 USD ($)	Jun. 30, 2022 USD ($) Units	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Property Units	Jun. 30, 2021 USD ($) Property
Real Estate Properties [Line Items]
Depreciation expense		$ 23,800	$ 19,700	$ 46,400	$ 39,600
Amortization expense of intangible lease assets		$ 1,800	$ 300	$ 2,800	$ 1,100
Number of real estate properties sold | Property				0	0
Casualty Losses
Real Estate Properties [Line Items]
Number of units in real estate property excluded from portfolio | Units				73
Number of units in real estate property excluded from store pools | Units		67		67
Acquired Property
Real Estate Properties [Line Items]
Number of properties acquired | Property				2	2
Purchase price	$ 143,400			$ 143,400	$ 121,500
Intangible Lease Assets
Real Estate Properties [Line Items]
Amortization expense, remainder of year ended December 31, 2022		$ 1,300		$ 1,300

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Real Estate Investments - Summary of Acquired Properties (Details) $ in Thousands		6 Months Ended
	Apr. 01, 2022 USD ($)	Jun. 30, 2022 USD ($) Property	Jun. 30, 2021 USD ($)	Dec. 31, 2021
Real Estate Properties [Line Items]
Effective Ownership		100.00%		100.00%
Acquired Property
Real Estate Properties [Line Items]
Purchase Price	$ 143,400	$ 143,400	$ 121,500
Mortgage Debt		$ 78,272
Number of Units | Property		562
The Adair | Sandy Springs, Georgia
Real Estate Properties [Line Items]
Effective Ownership		100.00%
The Adair | Sandy Springs, Georgia | Acquired Property
Real Estate Properties [Line Items]
Date of Acquisition		Apr. 01, 2022
Purchase Price		$ 65,500
Mortgage Debt		$ 35,115
Number of Units | Property		232
Effective Ownership		100.00%
Estates On Maryland | Phoenix, Arizona
Real Estate Properties [Line Items]
Effective Ownership		100.00%
Estates On Maryland | Phoenix, Arizona | Acquired Property
Real Estate Properties [Line Items]
Date of Acquisition		Apr. 01, 2022
Purchase Price		$ 77,900
Mortgage Debt		$ 43,157
Number of Units | Property		330
Effective Ownership		100.00%

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Debt - Summary of Mortgage Debt Nonrecourse to Company and Encumbers Multifamily Properties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Mortgages payable, net	$ 1,351,172	$ 1,276,285
Mortgages Payable | Operating Properties
Debt Instrument [Line Items]
Outstanding Principal	1,358,675
Fair market value adjustment	958
Deferred financing costs, net of accumulated amortization	(8,461)
Mortgages payable, net	$ 1,351,172
Mortgages Payable | Arbors on Forest Ridge | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 13,130
Interest Rate	3.47%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Cutter's Point | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 16,640
Interest Rate	3.47%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Silverbrook | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 30,590
Interest Rate	3.47%
Maturity Date	Jul. 01, 2024
Mortgages Payable | The Summit at Sabal Park | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 13,560
Interest Rate	3.41%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Courtney Cove | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 13,680
Interest Rate	3.41%
Maturity Date	Jul. 01, 2024
Mortgages Payable | The Preserve at Terrell Mill | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 42,480
Interest Rate	3.41%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Versailles | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 23,880
Interest Rate	3.41%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Seasons 704 Apartments | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 17,460
Interest Rate	3.41%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Madera Point | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 15,150
Interest Rate	3.41%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Venue at 8651 | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 13,734
Interest Rate	3.57%
Maturity Date	Jul. 01, 2024
Mortgages Payable | The Venue on Camelback | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 28,093
Interest Rate	3.47%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Old Farm | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 52,886
Interest Rate	3.47%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Stone Creek at Old Farm | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 15,274
Interest Rate	3.47%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Timber Creek | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 24,100
Interest Rate	3.05%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Radbourne Lake | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 20,000
Interest Rate	3.08%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Sabal Palm at Lake Buena Vista | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 42,100
Interest Rate	3.09%
Maturity Date	Sep. 01, 2025
Mortgages Payable | Cornerstone | Debt With Fixed Interest Rate
Debt Instrument [Line Items]
Term (months)	120 months
Outstanding Principal	$ 20,545
Interest Rate	4.24%
Maturity Date	Mar. 01, 2023
Mortgages Payable | Parc500 | Debt With Fixed Interest Rate
Debt Instrument [Line Items]
Term (months)	120 months
Outstanding Principal	$ 14,517
Interest Rate	4.49%
Maturity Date	Aug. 01, 2025
Mortgages Payable | Hollister Place | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 14,811
Interest Rate	3.13%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Rockledge Apartments | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 68,100
Interest Rate	3.36%
Maturity Date	Jul. 01, 2024
Mortgages Payable | Atera Apartments | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 29,500
Interest Rate	3.27%
Maturity Date	Nov. 01, 2024
Mortgages Payable | Crestmont Reserve | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 12,061
Interest Rate	2.97%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Brandywine I & II | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 43,835
Interest Rate	2.97%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Bella Vista | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 29,040
Interest Rate	3.11%
Maturity Date	Feb. 01, 2026
Mortgages Payable | The Enclave | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 25,322
Interest Rate	3.11%
Maturity Date	Feb. 01, 2026
Mortgages Payable | The Heritage | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 24,625
Interest Rate	3.11%
Maturity Date	Feb. 01, 2026
Mortgages Payable | Summers Landing | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 10,109
Interest Rate	2.97%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Residences at Glenview Reserve | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 26,108
Interest Rate	3.23%
Maturity Date	Oct. 01, 2025
Mortgages Payable | Residences at West Place | Debt With Fixed Interest Rate
Debt Instrument [Line Items]
Term (months)	120 months
Outstanding Principal	$ 33,817
Interest Rate	4.24%
Maturity Date	Oct. 01, 2028
Mortgages Payable | Avant at Pembroke Pines | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 177,100
Interest Rate	3.22%
Maturity Date	Sep. 01, 2026
Mortgages Payable | Arbors of Brentwood | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 34,237
Interest Rate	3.22%
Maturity Date	Oct. 01, 2026
Mortgages Payable | Torreyana Apartments | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 37,400
Interest Rate	3.49%
Maturity Date	Dec. 01, 2026
Mortgages Payable | Fairways At San Marcos | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 46,464
Interest Rate	3.22%
Maturity Date	Dec. 01, 2027
Mortgages Payable | Bloom | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 58,850
Interest Rate	3.49%
Maturity Date	Dec. 01, 2026
Mortgages Payable | The Verandas At Lake Norman | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 34,925
Interest Rate	2.94%
Maturity Date	Jul. 01, 2028
Mortgages Payable | Bella Solara | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 36,575
Interest Rate	3.49%
Maturity Date	Dec. 01, 2026
Mortgages Payable | Creekside At Matthews | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 31,900
Interest Rate	2.94%
Maturity Date	Jul. 01, 2028
Mortgages Payable | Six Forks Station | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	120 months
Outstanding Principal	$ 41,180
Interest Rate	2.80%
Maturity Date	Oct. 01, 2031
Mortgages Payable | High House At Cary | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 46,625
Interest Rate	3.10%
Maturity Date	Jan. 01, 2029
Mortgages Payable | The Adair | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 35,115
Interest Rate	3.06%
Maturity Date	Apr. 01, 2029
Mortgages Payable | Estates On Maryland | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	84 months
Outstanding Principal	$ 43,157
Interest Rate	3.06%
Maturity Date	Apr. 01, 2029

XML

Debt - Summary of Mortgage Debt Nonrecourse to Company and Encumbers Multifamily Properties (Parenthetical) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Deferred financing costs, accumulated amortization	$ 5,943
Cornerstone | Debt With Fixed Interest Rate
Debt Instrument [Line Items]
Interest Rate	4.09%
Fair value of debt assumed upon acquisition	$ 18,000
Debt instrument, payment terms	The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013, and had a term of 120 months with an initial 24 months of interest only.
Blended pay rate	4.24%
Residences at Glenview Reserve and West Place
Debt Instrument [Line Items]
Mortgage loans payable description	Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan can be prepaid at the greater of par plus 1.00% of the unpaid principal balance or the product obtained by multiplying the present value of the principal being prepaid by the excess of the monthly fixed interest rate of the loan over a daily discount rate. The loan is open to pre-payment in the last three months of the term
Loan prepayment fee as a percentage of unpaid principal balance	1.00%
13th month through 81st month
Debt Instrument [Line Items]
Mortgage loans payable description	Loan can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13th month of the term through the 81st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.
Loan prepayment fee as a percentage of unpaid principal balance	1.00%
13th month through 81st month | Summers Landing | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Mortgage loans payable description	Debt was assumed upon acquisition of this property and recorded at approximated fair value.  It can be pre-paid in the first 12 months of the term in certain circumstances at par plus 5.00%. Starting in the 13th month of the term through the 81st month of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term.
Loan prepayment fee as a percentage of unpaid principal balance	1.00%
First 12 months
Debt Instrument [Line Items]
Loan prepayment fee as a percentage of unpaid principal balance	5.00%
First 12 months | Summers Landing | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Loan prepayment fee as a percentage of unpaid principal balance	5.00%
First Mortgage | Cornerstone | Debt With Fixed Interest Rate
Debt Instrument [Line Items]
Debt instrument, payment terms	At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months of interest only. The first mortgage is pre-payable and subject to yield maintenance from the 13th month through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity.
Second Mortgage | Cornerstone | Debt With Fixed Interest Rate
Debt Instrument [Line Items]
Interest Rate	4.70%
Debt instrument, payment terms	The supplemental second mortgage is pre-payable and subject to yield maintenance from the date of issuance through August 31, 2022 and is pre-payable at par starting on September 1, 2022 until maturity.
Acquired property mortgage loan principle amount	$ 5,800
Last Four Months | Parc500
Debt Instrument [Line Items]
Mortgage loans payable description	Debt was assumed upon acquisition of this property and recorded at approximated fair value. The loan is open to pre-payment in the last four months of the term.
25th month through 36th month | The Verandas at Lake Norman, Creekside at Matthews and High House at Cary | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Mortgage loans payable description	Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25th month of the term through the 36th month of the term, the loan can be pre-paid at par plus 2% of the unpaid principal balance. Starting in the 37th month of the term, the loan can be pre-paid at par plus 1% of the unpaid principal balance. The loan is open to pre-payment in the last three months of the term
Loan prepayment fee as a percentage of unpaid principal balance	2.00%
First 24 Months | The Verandas at Lake Norman, Creekside at Matthews and High House at Cary | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Loan prepayment fee as a percentage of unpaid principal balance	5.00%
First 24 Months | Six Forks Station
Debt Instrument [Line Items]
Loan prepayment fee as a percentage of unpaid principal balance	5.00%
37th month | The Verandas at Lake Norman, Creekside at Matthews and High House at Cary | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Loan prepayment fee as a percentage of unpaid principal balance	1.00%
25 Month Through 116 Month | Six Forks Station
Debt Instrument [Line Items]
Mortgage loans payable description	Loan can be pre-paid in the first 24 months of the term in certain circumstances at par plus 5.00%. Starting in the 25th month of the term through the 116th of the term, the loan can be pre-paid at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term
Loan prepayment fee as a percentage of unpaid principal balance	1.00%
One-month LIBOR
Debt Instrument [Line Items]
Interest Rate	1.79%
SOFR
Debt Instrument [Line Items]
Interest Rate	1.09%

XML

Debt - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Weighted average fixed rate	1.1245%		1.1245%
Line of credit facility, description			(a) the prime rate, (b) the federal funds rate plus 0.50%, (c) Term SOFR plus 1.0% or (d) 0.0% plus a margin of 0.90% to 1.40%, depending on the Company’s total leverage ratio. An unused commitment fee at a rate of 0.15% or 0.25%,
Write-off deferred financing costs			$ 0.0	$ 300,000
Interest expense
Debt Instrument [Line Items]
Amortization of deferred financing fees	$ 700,000	$ 500,000	1,300,000	$ 1,100,000
Corporate Credit Facility
Debt Instrument [Line Items]
Line of credit facility, available borrowing capacity	$ 350,000.0		$ 350,000.0
Corporate Credit Facility | Nex Point Residential Trust Inc
Debt Instrument [Line Items]
Term (months)			1 year
Term loan maturity date	Jun. 30, 2024		Jun. 30, 2024
Percentage of benchmark replacement adjustment			0.1
Line of credit facility, maximum borrowing capacity	$ 335,000,000.0		$ 335,000,000.0
Corporate Credit Facility | Nex Point Residential Trust Inc | Accordion Feature | Maximum
Debt Instrument [Line Items]
Line of credit facility, increase in facility amount			$ 150,000,000.0
SOFR | Corporate Credit Facility | Nex Point Residential Trust Inc | Maximum
Debt Instrument [Line Items]
Interest rate			2.40%
SOFR | Corporate Credit Facility | Nex Point Residential Trust Inc | Minimum [Member]
Debt Instrument [Line Items]
Interest rate			1.90%
Mortgages Payable
Debt Instrument [Line Items]
Weighted average interest rate of mortgage indebtedness	3.29%		3.29%		1.81%
Adjusted weighted average interest rate	2.67%		2.67%
Weighted average fixed rate	1.1245%		1.1245%
Mortgages Payable | One-month LIBOR
Debt Instrument [Line Items]
Weighted average interest rate of mortgage indebtedness	1.79%		1.79%		0.10125%
Weighted average increase of spread in basis points			1.69%
Mortgages Payable | Floating Interest Rate Swap
Debt Instrument [Line Items]
Combined notional amount	$ 1,300,000,000		$ 1,300,000,000
Mortgages Payable | Interest Rate Swap
Debt Instrument [Line Items]
Indebtedness	$ 1,300,000,000		$ 1,300,000,000

XML

Debt - Summary of the Company's Credit Facility (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Credit facilities, net	$ 333,203	$ 278,215
Corporate Credit Facility
Debt Instrument [Line Items]
Deferred financing costs, net of accumulated amortization	(1,797)
Credit facilities, net	$ 333,203
Corporate Credit Facility | Debt With Floating Interest Rate
Debt Instrument [Line Items]
Term (months)	36 months
Interest Rate	3.94%
Maturity Date	Jun. 30, 2024
Credit facilities	$ 335,000

XML

Debt - Summary of the Company's Credit Facility (Parenthetical) (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Deferred financing costs, accumulated amortization	$ 5,943
SOFR
Debt Instrument [Line Items]
Interest Rate	1.09%
Corporate Credit Facility
Debt Instrument [Line Items]
Deferred financing costs, accumulated amortization	$ 685
Corporate Credit Facility | SOFR
Debt Instrument [Line Items]
Interest Rate	1.60%

XML

Debt - Schedule of Debt Maturities (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
2022	$ 650
2023	21,003
2024	729,952
2025	205,738
2026	423,149
Thereafter	313,183
Total	1,693,675
Operating Properties
Debt Instrument [Line Items]
2022	650
2023	21,003
2024	394,952
2025	205,738
2026	423,149
Thereafter	313,183
Total	1,358,675
Credit Facility
Debt Instrument [Line Items]
2024	335,000
Total	$ 335,000

XML

Fair Value of Derivative and Financial Instruments - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative financial instruments cap weighted average rate	4.66%
Weighted average fixed rate	1.1245%
Impairment write down	$ 0
Impairment of real estate assets	0
Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Combined notional amount	$ 1,300,000,000
Interest rate description	floating interest rate
Weighted average fixed rate	1.1245%
Interest rate caps
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Combined notional amount	$ 537,100,000
Interest rate description	The interest rate cap agreements the Company has entered into effectively cap one-month LIBOR on $537.1 million of the Company’s floating rate mortgage indebtedness at a weighted average rate of 4.66% as of June 30, 2022.
Minimum [Member] | Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate term range	4 years
Minimum [Member] | Interest rate caps | One-month LIBOR
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate term range	3 years
Maximum | Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate term range	5 years
Maximum | Interest rate caps | One-month LIBOR
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate term range	4 years

XML

Fair Value of Derivative and Financial Instruments - Summary of Company's Outstanding Interest Rate Swaps (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Fixed Rate	1.1245%
Interest Rate Swap Transaction One | KeyBank
Debt Instrument [Line Items]
Effective Date	Jul. 01, 2017
Termination Date	Jul. 01, 2022
Notional Amount	$ 100,000,000
Fixed Rate	1.782%
Interest Rate Swap Transaction Two | KeyBank
Debt Instrument [Line Items]
Effective Date	Jun. 01, 2019
Termination Date	Jun. 01, 2024
Notional Amount	$ 50,000,000
Fixed Rate	2.002%
Interest Rate Swap Transaction Three | Truist Bank
Debt Instrument [Line Items]
Effective Date	Jun. 01, 2019
Termination Date	Jun. 01, 2024
Notional Amount	$ 50,000,000
Fixed Rate	2.002%
Interest Rate Swap Transaction Four | KeyBank
Debt Instrument [Line Items]
Effective Date	Sep. 01, 2019
Termination Date	Sep. 01, 2026
Notional Amount	$ 100,000,000
Fixed Rate	1.462%
Interest Rate Swap Transaction Five | KeyBank
Debt Instrument [Line Items]
Effective Date	Sep. 01, 2019
Termination Date	Sep. 01, 2026
Notional Amount	$ 125,000,000
Fixed Rate	1.302%
Interest Rate Swap Transaction Six | KeyBank
Debt Instrument [Line Items]
Effective Date	Jan. 03, 2020
Termination Date	Sep. 01, 2026
Notional Amount	$ 92,500,000
Fixed Rate	1.609%
Interest Rate Swap Transaction Seven | Truist Bank
Debt Instrument [Line Items]
Effective Date	Mar. 04, 2020
Termination Date	Jun. 01, 2026
Notional Amount	$ 100,000,000
Fixed Rate	0.82%
Interest Rate Swap Transaction Eight | KeyBank
Debt Instrument [Line Items]
Effective Date	Jun. 01, 2021
Termination Date	Sep. 01, 2026
Notional Amount	$ 200,000,000
Fixed Rate	0.845%
Interest Rate Swap Transaction Nine | KeyBank
Debt Instrument [Line Items]
Effective Date	Jun. 01, 2021
Termination Date	Sep. 01, 2026
Notional Amount	$ 200,000,000
Fixed Rate	0.953%
Interest Rate Swap Transaction Ten | Truist Bank
Debt Instrument [Line Items]
Effective Date	Mar. 01, 2022
Termination Date	Mar. 01, 2025
Notional Amount	$ 145,000,000
Fixed Rate	0.573%
Interest Rate Swap Transaction Eleven | Truist Bank
Debt Instrument [Line Items]
Effective Date	Mar. 01, 2022
Termination Date	Mar. 01, 2025
Notional Amount	$ 105,000,000
Fixed Rate	0.614%
Interest Rate Swap Transaction Twelve
Debt Instrument [Line Items]
Notional Amount	$ 1,267,500,000
Fixed Rate	1.1245%
Interest Rate Swap Transaction Fourteen | KeyBank | Future Effective Dates
Debt Instrument [Line Items]
Notional Amount	$ 92,500,000
Fixed Rate	1.798%

XML

Fair Value of Derivative and Financial Instruments - Summary of Company's Outstanding Interest Rate Swaps (Parenthetical) (Details) - One-month LIBOR	Jun. 30, 2022
Key Bank And Truist Bank
Debt Instrument [Line Items]
LIBOR, interest rate	1.79%
KeyBank | Future Effective Dates
Debt Instrument [Line Items]
LIBOR, interest rate	1.79%

XML

Fair Value of Derivative and Financial Instruments - Outstanding Interest Rate Derivatives Not Designated as Cash Flow Hedges of Interest Rate Risk (Details) - Not Designated as Hedging Instrument	Jun. 30, 2022 USD ($) DerivativeInstrument	Jun. 30, 2021 USD ($) DerivativeInstrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Number of Instruments | DerivativeInstrument	17	15
Notional Amount | $	$ 537,118,000	$ 346,542,000

XML

Fair Value of Derivative and Financial Instruments - Summary of Derivative Financial Instruments and Classification on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Asset Derivatives	$ 77,835	$ 11,308
Liability Derivatives		7,519
Fair Market Value Of Interest Rate Swaps | Interest Rate Swap | Designated as hedging instrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Asset Derivatives	75,461	11,045
Liability Derivatives		7,519
Prepaid and Other Assets | Interest rate caps | Not Designated as Hedging Instrument
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Asset Derivatives	$ 2,374	$ 263

XML

Fair Value of Derivative and Financial Instruments - Summary of Derivative Financial Instruments on Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss)recognized in OCI	$ 17,357	$ (4,805)	$ 71,936	$ 26,537
Interest Rate Products
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss)recognized in OCI	16,291	(8,551)	67,308	19,128
Amount of gain (loss)reclassified fromOCI into income	(1,066)	(3,746)	(4,628)	(7,409)
Interest expense | Interest Rate Products
Derivative Instruments Gain Loss [Line Items]
Amount of gain (loss) recognized in income	$ (181)	$ 55	$ (1,365)	$ 43

XML

Fair Value of Derivative and Financial Instruments - Schedule of Carrying Value and Estimated Fair Value of Debt Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fixed rate debt
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Outstanding Principal	$ 68,879	$ 69,285
Estimated Fair Value	67,454	71,141
Floating rate debt
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Outstanding Principal	1,624,796	1,491,861
Estimated Fair Value	$ 1,597,759	$ 1,525,298

XML

Stockholders' Equity - Additional Information (Details) - USD ($)										3 Months Ended		6 Months Ended		94 Months Ended
	Feb. 17, 2022	Feb. 18, 2021	May 11, 2020	Mar. 13, 2020	Mar. 04, 2020	Feb. 20, 2020	Feb. 21, 2019	Apr. 30, 2018	Jun. 15, 2016	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Common stock, shares, issued										25,647,942		25,647,942		25,647,942		25,500,567
Common stock, shares, outstanding										25,647,942		25,647,942		25,647,942		25,500,567
Common stock, par value										$ 0.01		$ 0.01		$ 0.01		$ 0.01
Share repurchase program, authorized amount				$ 100,000.0				$ 40,000.0	$ 30,000,000.0
Stock repurchase program period in force								2 years	2 years
Stock repurchase program, expiration date				Mar. 12, 2023				Jun. 15, 2020	Jun. 15, 2018
Share repurchase program, treasury stock shares														2,451,722
Share repurchase program, treasury stock, value										$ 5,136,000		$ 5,136,000		$ 66,400,000
Share repurchase program, treasury stock, per share												$ 73.82		$ 27.07
Stock repurchase of common stock												69,567
Stock repurchase of common stock value												$ 5,100,000
Common stock, shares, retired												69,567	0
Treasury stock, shares										0		0		0
Aggregate sale price of common stock										$ (70,000)	$ (86,000)	$ 4,068,000	$ (262,000)
Shares issued average price per share					$ 53.64
Proceeds from the issuance of common stock through at-the-market offering, net of offering costs					$ 62,310,967,000							$ 4,069,000	$ (262,000)
Common Stock
Class Of Stock [Line Items]
Common stock, shares, issued										25,647,942	25,149,927	25,647,942	25,149,927	25,647,942	25,700,190	25,500,567	25,127,141	25,016,957
Common stock, shares, retired										69,567,000		69,567
Aggregate sale price of common stock												$ 1,000
Restricted Stock Units
Class Of Stock [Line Items]
Restricted stock units, granted												142,159
At-the-Market Offering
Class Of Stock [Line Items]
Shares, issued												52,091
2020 At-the-Market Offering
Class Of Stock [Line Items]
Shares, issued												52,091
Shares issued average price per share												$ 83.16
Proceeds from the issuance of common stock through at-the-market offering, net of offering costs												$ 4,300,000
Stock issuance costs												100,000
Stock Issuance Costs Other												$ 200,000
2020 At-the-Market Offering | Common Stock
Class Of Stock [Line Items]
Common stock, par value					$ 0.01
2020 At-the-Market Offering | Maximum | Common Stock
Class Of Stock [Line Items]
Aggregate sale price of common stock					$ 225,000,000,000
2016 LTIP
Class Of Stock [Line Items]
Common stock, shares, issued												164,851
Common stock, shares, issued										857,107		857,107		857,107
Common stock, par value									$ 0.01
Number of shares authorized to issue									2,100,000
2016 LTIP | Restricted Stock Units
Class Of Stock [Line Items]
Equity-based compensation expense										$ 2,000,000.0	$ 1,800,000
Dividends earned on restricted stock units										$ 3,900,000	$ 3,400,000	$ 3,900,000	$ 3,400,000	$ 3,900,000
2016 LTIP | Restricted Stock Units | Director
Class Of Stock [Line Items]
Vesting period description												annually
2016 LTIP | Restricted Stock Units | Directors Officers Employees And Certain Key Employees Of Adviser
Class Of Stock [Line Items]
Restricted stock units, granted	142,159	204,663	116,852			168,183	186,662
2016 LTIP | Minimum [Member] | Restricted Stock Units | Officers Employees And Certain Key Employees Of Adviser
Class Of Stock [Line Items]
Restricted stock units, vesting period												3 years
2016 LTIP | Maximum | Restricted Stock Units | Officers Employees And Certain Key Employees Of Adviser
Class Of Stock [Line Items]
Restricted stock units, vesting period												5 years

XML

Stockholders' Equity - Summary of Restricted Stock Units (Details) - Restricted Stock Units - $ / shares	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Units, Outstanding at beginning of the period	528,923	589,283
Number of Units, Granted	142,159
Number of Units, Vested	(202,519)
Weighted Average Grant Date Fair Value, Outstanding at beginning of the period	$ 39.17
Weighted Average Grant Date Fair Value, Granted	83.88
Weighted Average Grant Date Fair Value, Vested	35.34
Weighted Average Grant Date Fair Value, Outstanding at ending of the period	$ 52.66

XML

Stockholders' Equity - Summary of Restricted Stock Units (Parenthetical) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock issued upon vesting awards	17,319	22,786	164,851	132,970

XML

Stockholders' Equity - Summary of Vesting of Restricted Stock Units (Details)	6 Months Ended
	Jun. 30, 2022 shares
Vest in 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	161,114
Vest in 2023 | February
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	139,095
Vest in 2023 | May
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	22,019
Vest in 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	154,716
Vest in 2024 | February
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	132,699
Vest in 2024 | May
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	22,017
Vest in 2025
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	119,828
Vest in 2025 | February
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	97,811
Vest in 2025 | May
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	22,017
Vest in 2026
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	66,114
Vest in 2026 | February
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	66,114
Vest in 2027
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	27,151
Vest in 2027 | February
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	27,151
Vest in Total Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	528,923
Vest in Total Year | February
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	462,870
Vest in Total Year | May
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units	66,053

XML

Stockholders' Equity - Summary Information of 2020 ATM Program (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Mar. 04, 2020	Jun. 30, 2022	Jun. 30, 2021
Stockholders Equity Note [Abstract]
Gross proceeds	$ 62,310,967	$ 4,069	$ (262)
Common shares issued	1,120,910
Gross average sale price per share	$ 55.59
Sales commissions	$ 934,665
Offering costs	1,253,360
Net proceeds	$ 60,122,942
Average price per share, net	$ 53.64

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Earnings (Loss) Per Share - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Stock conversion ratio	100.00%

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Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator for loss per share:
Net loss		$ (7,827)	$ (3,418)	$ (12,494)	$ (10,318)
Net loss attributable to redeemable noncontrolling interests in the Operating Partnership		(30)	(10)	(44)	(31)
Net loss attributable to common stockholders		$ (7,797)	$ (3,408)	$ (12,450)	$ (10,287)
Denominator for loss per share:
Weighted average common stock outstanding - basic		25,672	25,140	25,646	25,104
Weighted average unvested restricted stock units		539	613	556	596
Weighted average common stock outstanding - diluted	[1]	25,672	25,140	25,646	25,104
Loss per weighted average common share:
Basic		$ (0.30)	$ (0.14)	$ (0.49)	$ (0.41)
Diluted		$ (0.30)	$ (0.14)	$ (0.49)	$ (0.41)

[1] If the Company sustains a net loss for the period presented, unvested restricted stock units are not included in the diluted earnings per share calculation.

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Noncontrolling Interests - Additional Information (Details) $ in Thousands		6 Months Ended
	Apr. 01, 2022 USD ($) shares	Jun. 30, 2022 USD ($) $ / Property $ / h	Jun. 30, 2021 USD ($)
BH Management Services, LLC
Minority Interest [Line Items]
Property management fee percent		3.00%
Other owner approved fees, per hour | $ / h		55
BH Management Services, LLC | Minimum [Member]
Minority Interest [Line Items]
Inspection of properties fee, per unit | $ / Property		15
Construction supervision fee, percent fee		5.00%
BH Management Services, LLC | Maximum
Minority Interest [Line Items]
Inspection of properties fee, per unit | $ / Property		25
Construction supervision fee, percent fee		6.00%
Acquired Property
Minority Interest [Line Items]
Purchase price	$ 143,400	$ 143,400	$ 121,500
DST purchase amount, OP Units | shares	26,558
DST purchase amount, OP Units value	$ 2,600
DST purchase amount, cash	$ 71,100
Convertible to common stock basis	1
Convertible to common stock, description		The fair value of the OP Units was determined based on the April 1, 2022 share price of NXRT as the OP units are convertible to common stock on a one to one basis.

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Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Noncontrolling Interest [Abstract]
Redeemable noncontrolling interests in the OP, December 31, 2021			$ 6,139
Net loss attributable to redeemable noncontrolling interests in the OP			(44)
Other comprehensive income attributable to redeemable noncontrolling interests in the OP			231
Contributions from redeemable noncontrolling interests in the OP			(562)
Distributions to redeemable noncontrolling interests in the OP			125
Issuance of operating partnership units for purchase of noncontrolling interests			2,444
Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP	$ (1,645)	$ 710	(1,311)	$ 925
Redeemable noncontrolling interests in the OP, June 30, 2022	$ 7,022		$ 7,022

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Noncontrolling Interests - Summary of Fees Incurred to BH And Its Affiliates As Well As Reimbursements Paid to BH (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Fees incurred
Property management fees	[1]	$ 1,912	$ 1,516	$ 3,669	$ 3,001
BH Management Services, LLC
Fees incurred
Property management fees	[2]	1,904	1,510	3,654	2,989
Construction supervision fees	[3]	440	302	765	556
Design fees	[3]	47	24	47	78
Acquisition fees	[4]	231	275	231	275
Aerwave fees	[5]	221		346
Reimbursements
Payroll and benefits	[5]	5,640	4,819	10,804	9,057
Other reimbursements	[6]	$ 1,134	$ 857	$ 2,161	$ 1,682

[1] Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the Company’s operating partnership (see Note 10).

[2] Included in property management fees on the consolidated statements of operations and comprehensive income (loss).

[3] Capitalized on the consolidated balance sheets and reflected in buildings and improvements.

[4] Includes due diligence costs. Acquisition fees are capitalized to real estate assets on the consolidated balance sheets.

[5] Included in property operating expenses on the consolidated statements of operations and comprehensive income (loss).

[6] Includes property operating expenses such as repairs and maintenance costs and certain property general and administrative expenses, which are included on the consolidated statements of operations and comprehensive income (loss).

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Related Party Transactions - Additional Information (Details)		3 Months Ended		6 Months Ended
	Apr. 01, 2022 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) subsidiary	Jun. 30, 2021 USD ($)
Related Party Transaction [Line Items]
Advisory and administrative fees				$ 100,000	$ 0.0
Acquired Property
Related Party Transaction [Line Items]
Purchase price	$ 143,400,000			$ 143,400,000	121,500,000
DST purchase amount, OP Units | shares	26,558
DST purchase amount, OP Units value	$ 2,600,000
DST purchase amount, cash	$ 71,100,000
Convertible to common stock basis	1
Convertible to common stock, description				The fair value of the OP Units was determined based on the April 1, 2022 share price of NXRT as the OP units are convertible to common stock on a one to one basis.
NexPoint Real Estate Advisors, L.P
Related Party Transaction [Line Items]
Percentage of annual advisory, paid monthly				1.00%
Percentage of annual administrative fee, paid monthly				0.20%
Advisory and administrative fees on contributed assets				$ 5,400,000
Advisory and administrative fees percentage				1.20%
Advisory and administrative fees		$ 1,900,000	$ 1,900,000	$ 3,700,000	3,800,000
Advisory and administrative fees waived		5,200,000	$ 4,100,000	10,100,000	$ 8,100,000
NexPoint Real Estate Advisors, L.P | Maximum
Related Party Transaction [Line Items]
Advisory and administrative fees on contributed assets				$ 5,400,000
Corporate general and administrative expenses and advisory and administrative fees percentage				1.50%
NLMF Holdco LLC
Related Party Transaction [Line Items]
Property owning subsidiaries | subsidiary				3
Equity interest owned				10.00%
Amount funded to related party included in prepaid and other assets		$ 300,000		$ 300,000
Expenses incurred for fiber internet service included in property operating expenses				$ 100,000

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Commitments and Contingencies - Additional Information (Details) - USD ($)			3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 01, 2022	Mar. 01, 2021	Jun. 30, 2022	Mar. 31, 2021	Jun. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Maximum exposure of potential commitments					$ 4,000,000.0
Environmental liability incurred					0
Self-Insurance Program
Loss Contingencies [Line Items]
Insurance Claim Amount	$ 2,497,500	$ 2,468,750		$ 1,600,000	1,800,000
Amount of reserve for aggregate insurance claim					0	$ 0
Self-Insurance Program | Six Forks Station
Loss Contingencies [Line Items]
Insurance claim funded			$ 2,100,000
NLMF Holdco LLC
Loss Contingencies [Line Items]
Additional funded amount					$ 300,000
Parent | Self-Insurance Program
Loss Contingencies [Line Items]
Insurance Claim Amount						$ 1,600,000

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Subsequent Events - Additional Information (Details) - Subsequent Events	Jul. 25, 2022 $ / shares
Subsequent Event [Line Items]
Dividends payable amount per share	$ 0.38
Dividend payable date to be paid day month and year	Sep. 30, 2022
Dividends payable date of record day month and year	Sep. 15, 2022
Dividends payable date approved	Jul. 25, 2022