NexPoint Residential Trust Inc

Previous wording

As of June 30, 2024, our Portfolio consisted of 36 multifamily properties primarily located in the Southeastern and Southwestern United States encompassing 13,174 units of apartment space that was approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,517. 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, 2024, there were 26,053,988 OP Units outstanding, of which 25,951,154, or 99.6%, were owned by us, and 102,834, or 0.4%, were owned by an unaffiliated limited partner (see Note 8 to our consolidated financial statements).

Current wording

As of September 30, 2024, our Portfolio consisted of 36 multifamily properties primarily located in the Southeastern and Southwestern United States encompassing 13,174 units of apartment space that was approximately 94.8% leased with a weighted average monthly effective rent per occupied apartment unit of $1,500. 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 September 30, 2024, there were 26,053,988 OP Units outstanding, of which 25,951,154, or 99.6%, were owned by us, and 102,834, or 0.4%, were owned by an unaffiliated limited partner (see Note 8 to our consolidated financial statements).

Previous wording

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, 2024 and 2023.

Current wording

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 nine months ended September 30, 2024 and 2023.

Previous wording

On October 16, 2019, Highland, a former affiliate of our Sponsor, filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the District of Delaware (the “Highland Bankruptcy”). On October 15, 2021, Marc S. Kirschner, as litigation trustee of a litigation subtrust formed pursuant to Highland’s plan of reorganization and disclosure statement which became effective on August 11, 2021, filed a lawsuit (the “Bankruptcy Trust Lawsuit”) against various persons and entities, including our Sponsor and James Dondero. In addition, on February 8, 2023, UBS Securities LLC and its affiliate (collectively, “UBS”) filed a lawsuit in the Supreme Court of the State of New York, County of New York against Mr. Dondero and a number of other persons and entities seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the “UBS Lawsuit”). Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.

Current wording

On October 16, 2019, Highland, a former affiliate of our Sponsor, filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the District of Delaware (the “Highland Bankruptcy”). On October 15, 2021, Marc S. Kirschner, as litigation trustee of a litigation subtrust formed pursuant to Highland’s plan of reorganization and disclosure statement which became effective on August 11, 2021, filed a lawsuit (the “Bankruptcy Trust Lawsuit”) against various persons and entities, including our Sponsor and James Dondero. On March 24, 2023, the litigation trustee filed a motion for leave to stay the Bankruptcy Trust Lawsuit, which was granted by the bankruptcy court on April 4, 2023. Per the court’s order, the Bankruptcy Trust Lawsuit is stayed until any party provides 30 days’ notice of the intent to resume the adversary proceeding, with all pending deadlines extended for a period of time commensurate with the length of the stay. As of the date of this filing, the Bankruptcy Trust Lawsuit continues to be stayed. In addition, on February 8, 2023, UBS Securities LLC and its affiliate (collectively, “UBS”) filed a lawsuit in the Supreme Court of the State of New York, County of New York against Mr. Dondero and a number of other persons and entities seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the “UBS Lawsuit”). Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.

Previous wording

The change in our net income for the three months ended June 30, 2024 as compared to our net loss for the three months ended June 30, 2023 primarily relates to our gain on sales of real estate of $18.7 million.

Current wording

The change in our net loss for the three months ended September 30, 2024 as compared to our net income for the three months ended September 30, 2023 primarily relates to the change in gain on sales of real estate of $43.1 million.

Previous wording

Real estate taxes and insurance. Real estate taxes and insurance costs were $8.2 million for the three months ended June 30, 2024 compared to $9.3 million for the three months ended June 30, 2023, which was a decrease of approximately $1.1 million. The decrease between the periods was primarily due to our acquisition and disposition activity in 2023 and 2024 and the timing of the transactions.

Current wording

Real estate taxes and insurance. Real estate taxes and insurance costs were $8.1 million for the three months ended September 30, 2024 compared to $8.8 million for the three months ended September 30, 2023, which was a decrease of approximately $0.7 million. The decrease between the periods was primarily due to disposition activity in 2023 and 2024 and the timing of the transactions.

Previous wording

Property management fees. Property management fees were $1.9 million for the three months ended June 30, 2024 compared to $2.0 million for the three months ended June 30, 2023 which was a decrease of $0.1 million. Property management fees are primarily based on total revenues.

Current wording

Property management fees. Property management fees were $1.8 million for the three months ended September 30, 2024 compared to $2.0 million for the three months ended September 30, 2023 which was a decrease of $0.2 million. Property management fees are primarily based on total revenues.

Previous wording

Advisory and administrative fees. Advisory and administrative fees were $1.7 million for the three months ended June 30, 2024 compared to $1.9 million for the three months ended June 30, 2023. For the three months ended June 30, 2024 and 2023, our Adviser elected to voluntarily waive the advisory and administrative fees of approximately $5.2 million and $5.4 million and are considered permanently waived. 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.

Current wording

Advisory and administrative fees. Advisory and administrative fees were $1.7 million for the three months ended September 30, 2024 compared to $2.0 million for the three months ended September 30, 2023. For the three months ended September 30, 2024 and 2023, our Adviser elected to voluntarily waive the advisory and administrative fees of approximately $5.3 million and $5.5 million and are considered permanently waived. 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.

Previous wording

Corporate general and administrative expenses. Corporate general and administrative expenses were $4.8 million for the three months ended June 30, 2024 compared to $4.6 million for the three months ended June 30, 2023, which was an increase of approximately $0.2 million. The increase between the periods was primarily due to increases of $0.2 million in stock compensation expense.

Current wording

Corporate general and administrative expenses. Corporate general and administrative expenses were $4.8 million for the three months ended September 30, 2024 compared to $4.9 million for the three months ended September 30, 2023, which was a decrease of approximately $0.1 million. The decrease between the periods was primarily due to disposition activity in 2023 and 2024.

Previous wording

Depreciation and amortization. Depreciation and amortization costs were $24.4 million for the three months ended June 30, 2024 compared to $23.9 million for the three months ended June 30, 2023, which was an increase of approximately $0.5 million. The increase between the periods was primarily due to an increase in depreciation expense of approximately $0.6 million, which was primarily due to our value-add activities in 2023 and 2024.

Current wording

Depreciation and amortization. Depreciation and amortization costs were $24.6 million for the three months ended September 30, 2024 compared to $23.8 million for the three months ended September 30, 2023, which was an increase of approximately $0.8 million. The increase between the periods was primarily due to an increase in depreciation expense of approximately $0.8 million, which was primarily due to our value-add activities in 2023 and 2024.

Previous wording

Interest expense. Interest expense was $14.0 million for the three months ended June 30, 2024 compared to $14.5 million for the three months ended June 30, 2023, which was a decrease of approximately $0.5 million. There was a decrease in interest on debt of approximately $1.8 million and increase in effective interest rate swap expense of $0.9 million, partially offset by mark-to-market on interest rate caps of $1.9 million. The following table details the various costs included in interest expense for the three months ended June 30, 2024 and 2023 (in thousands):

Current wording

Interest expense. Interest expense was $14.6 million for the three months ended September 30, 2024 compared to $17.6 million for the three months ended September 30, 2023, which was a decrease of approximately $3.0 million. The decrease in interest expense between the periods is primarily attributable to a decrease in interest on debt of approximately $3.1 million, partially offset by a decrease in effective interest rate swap expense of $0.7 million. The following table details the various costs included in interest expense for the three months ended September 30, 2024 and 2023 (in thousands):

Previous wording

Casualty (loss). Casualty loss was $0.7 million compared to a $0.1 million for the three months ended June 30, 2024 and 2023, respectively. The increase in casualty loss between periods of $0.6 million is attributable to the Company's casualty events and the timing.

Current wording

Casualty (loss). Casualty loss was $0.0 million compared to $0.1 million for the three months ended September 30, 2024 and 2023, respectively. The decrease in casualty loss between periods of $0.1 million is attributable to the Company's casualty events and the timing.

Previous wording

Gain on sale of real estate. Gain on sale of real estate was $18.7 million compared to $0.0 million for the three months ended June 30, 2024 and 2023, respectively. The increase between periods is attributable to one disposition during the three months ended June 30, 2024 compared to none during the three months ended June 30, 2023.

Current wording

Gain on sale of real estate. Gain on sale of real estate was $0.0 million compared to $43.1 million for the three months ended September 30, 2024 and 2023, respectively. The decrease between periods is attributable to zero dispositions during the three months ended September 30, 2024 compared to one disposition during the three months ended September 30, 2023.

Previous wording

The change in our net income for the six months ended June 30, 2024 as compared to the net loss for the six months ended June 30, 2023 primarily relates our gain on sales of real estate of $50.4 million.

Current wording

The change in our net income for the nine months ended September 30, 2024 as compared to the net income for the nine months ended September 30, 2023 primarily relates to the increase in gain on sales of real estate of $7.3 million partially offset by a decrease in operating income of $4.6 million.

Previous wording

Other income. Other income was $1.9 million for the three months ended June 30, 2024 compared to $1.8 million for the three months ended June 30, 2023, which was an increase of approximately $0.1 million. The increase between the periods was primarily due to an increase in interest income on deposits.

Current wording

Other income. Other income was $5.6 million for the nine months ended September 30, 2024 compared to $5.4 million for the nine months ended September 30, 2023, which was an increase of approximately $0.2 million. The increase between the periods was primarily due to an increase in interest income.

Previous wording

Property management fees. Property management fees were $3.8 million for the six months ended June 30, 2024 and $4.1 million for the six months ended June 30, 2023. Property management fees are primarily based on total revenues.

Current wording

Property management fees. Property management fees were $5.7 million for the nine months ended September 30, 2024 and $6.1 million for the nine months ended September 30, 2023. Property management fees are primarily based on total revenues.

Previous wording

Advisory and administrative fees. Advisory and administrative fees were $3.5 million for the six months ended June 30, 2024 and $3.8 million for the six months ended June 30, 2023 which was a decrease of approximately $0.3 million. For the six months ended June 30, 2024 and 2023, our Adviser elected to voluntarily waive the advisory and administrative fees of approximately $10.7 million and $10.7 million and are considered permanently waived. 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.

Current wording

Advisory and administrative fees. Advisory and administrative fees were $5.2 million for the nine months ended September 30, 2024 and $5.8 million for the nine months ended September 30, 2023 which was a decrease of approximately $0.6 million. For the nine months ended September 30, 2024 and 2023, our Adviser elected to voluntarily waive the advisory and administrative fees of approximately $16.0 million and $16.2 million and are considered permanently waived. 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.

Previous wording

Corporate general and administrative expenses. Corporate general and administrative expenses were $9.7 million for the six months ended June 30, 2024 compared to $8.0 million for the six months ended June 30, 2023, which was an increase of approximately $1.7 million. The increase was primarily due to an increase in stock compensation expense of $0.8 million.

Current wording

Corporate general and administrative expenses. Corporate general and administrative expenses were $14.5 million for the nine months ended September 30, 2024 compared to $12.9 million for the nine months ended September 30, 2023, which was an increase of approximately $1.6 million. The increase was primarily due to an increase in stock compensation expense of $0.9 million.

Previous wording

Depreciation and amortization. Depreciation and amortization costs were $48.8 million for the six months ended June 30, 2024 compared to $47.1 million for the six months ended June 30, 2023, which was an increase of approximately $1.7 million. The increase between the periods was primarily due to an increase of $1.6 million in depreciation expense, which was primarily due to our value-add activities.

Current wording

Depreciation and amortization. Depreciation and amortization costs were $73.4 million for the nine months ended September 30, 2024 compared to $70.9 million for the nine months ended September 30, 2023, which was an increase of approximately $2.5 million. The increase between the periods was primarily due to an increase of $2.4 million in depreciation expense, which was primarily due to our value-add activities.

Previous wording

Interest expense. Interest expense was $28.4 million for the six months ended June 30, 2024 compared to $31.3 million for the six months ended June 30, 2023, which was a decrease of approximately $2.9 million. The decrease between the periods was primarily due to an increase in benefit from interest rate swaps of $3.7 million. The following table details the various costs included in interest expense for the six months ended June 30, 2024 and 2023 (in thousands):

Current wording

Interest expense. Interest expense was $43.0 million for the nine months ended September 30, 2024 compared to $48.9 million for the nine months ended September 30, 2023, which was a decrease of approximately $5.9 million. The decrease between the periods was primarily due to a decrease in interest on debt of $2.6 million and an increase in benefit from interest rate swaps of $3.0 million. The following table details the various costs included in interest expense for the nine months ended September 30, 2024 and 2023 (in thousands):

Previous wording

Casualty (loss). Casualty loss was $0.5 million compared to a $0.9 million for the six months ended June 30, 2024 and 2023, respectively. The decrease in casualty loss between periods of $0.4 million is attributable to the Company's casualty events and the timing.

Current wording

Casualty (loss). Casualty loss was $0.5 million compared to a $1.0 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease in casualty loss between periods of $0.5 million is attributable to the Company's casualty events and the timing.

Previous wording

Miscellaneous income. Miscellaneous income was $0.1 million compared to $0.3 million for the three months ended June 30, 2024 and 2023, respectively. The decrease between periods is attributable to a decrease in business interruption proceeds.

Current wording

Miscellaneous income. Miscellaneous income was $0.3 million compared to $0.9 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease between periods is attributable to a decrease in business interruption proceeds.

Previous wording

Gain on sale of real estate. Gain on sale of real estate was $50.4 million compared to $0.0 million for the six months ended June 30, 2024 and 2023, respectively. The increase between periods is attributable to our two dispositions during the six months ended June 30, 2024 compared to none during the six months ended June 30, 2023.

Current wording

Gain on sale of real estate. Gain on sale of real estate was $50.4 million compared to $43.1 million for the nine months ended September 30, 2024 and 2023, respectively. The increase between periods is attributable to our two dispositions during the nine months ended September 30, 2024 compared to one during the nine months ended September 30, 2023.

Previous wording

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: (a) depreciation and amortization expenses and (b) gains or losses from the sale of operating real estate assets that are included in net income (loss) computed in accordance with GAAP, (4) corporate general and administrative expenses, (5) corporate income that is not reflective of operations of the properties, (6) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (7) casualty-related expenses/(recoveries) and casualty gains (losses), (8) gain (loss) on extinguishment of debt and modification costs that are not reflective of continuing operations of the properties, (9) gain on forfeited deposits, (10) 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 and (11) equity in earnings of affiliates.

Current wording

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) depreciation and amortization expenses, (4) gains or losses from the sale of operating real estate assets that are included in net income (loss) computed in accordance with GAAP, (5) corporate income and corporate general and administrative expenses that are not reflective of operations of the properties, (6) other gains and losses that are specific to us including gain (loss) on extinguishment of debt and modification costs, (7) casualty-related expenses/(recoveries) and casualty gains (losses), (8) gain on forfeited deposits, (9) 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 and (10) equity in earnings of affiliates.

Previous wording

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, 2024 and 2023 to net loss, the most directly comparable GAAP financial measure (in thousands):

Current wording

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 nine months ended September 30, 2024 and 2023 to net loss, the most directly comparable GAAP financial measure (in thousands):

Previous wording

There are 35 properties encompassing 12,963 units of apartment space in our same store pool for the three months ended June 30, 2024 and 2023 (our “Q2 Same Store” properties). Our Q2 Same Store properties exclude the following property in our Portfolio as of June 30, 2024: Stone Creek at Old Farm, as well as the 21 units that are currently down (see Note 3).

Current wording

There are 35 properties encompassing 12,948 units of apartment space in our same store pool for the three months ended September 30, 2024 and 2023 (our “Q3 Same Store” properties). Our Q3 Same Store properties exclude the following property in our Portfolio as of September 30, 2024: Stone Creek at Old Farm, as well as the 36 units that are currently down (see Note 3).

Previous wording

See reconciliation of net income (loss) to NOI above under “NOI and Same Store NOI for the Three and Six Months Ended June 30, 2024 and 2023.”

Current wording

See reconciliation of net income (loss) to NOI above under “NOI and Same Store NOI for the Three and Nine Months Ended September 30, 2024 and 2023.”

Previous wording

As of June 30, 2024, our Q2 Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,520. As of June 30, 2023, our Q2 Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,535. For our Q2 Same Store properties, we recorded the following operating results for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023:

Current wording

As of September 30, 2024, our Q3 Same Store properties were approximately 94.9% leased with a weighted average monthly effective rent per occupied apartment unit of $1,502. As of September 30, 2023, our Q3 Same Store properties were approximately 93.9% leased with a weighted average monthly effective rent per occupied apartment unit of $1,529. For our Q3 Same Store properties, we recorded the following operating results for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023:

Previous wording

Rental income. Rental income was $61.6 million for the three months ended June 30, 2024 compared to $60.1 million for the three months ended June 30, 2023, which was an increase of approximately $1.5 million, or 2.6%. The increase is attributable to an increase in weighted average occupancy during the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

Current wording

Rental income. Rental income was $61.5 million for the three months ended September 30, 2024 compared to $60.3 million for the three months ended September 30, 2023, which was an increase of approximately $1.2 million, or 2.0%. The increase is attributable to an increase in weighted average occupancy during the three months ended September 30, 2024 compared to the three months ended September 30, 2023.

Previous wording

Property operating expenses. Property operating expenses were $13.2 million for the three months ended June 30, 2024 compared to $13.0 million for the three months ended June 30, 2023, which was an increase of $0.2 million, or 1.1%. The majority of the increase is related to repairs and maintenance and utilities increases of $0.1 million and $0.1 million, respectively.

Current wording

Property operating expenses. Property operating expenses were $14.1 million for the three months ended September 30, 2024 compared to $12.8 million for the three months ended September 30, 2023, which was an increase of $1.3 million, or 10.1%. The majority of the increase is related to repairs and maintenance and utilities increases of $0.1 million and $0.1 million, respectively.

Previous wording

Real estate taxes and insurance. Real estate taxes and insurance costs were $8.3 million for the three months ended June 30, 2024 compared to $8.2 million for the three months ended June 30, 2023, which is an increase of $0.1 million.

Current wording

Real estate taxes and insurance. Real estate taxes and insurance costs were $8.2 million for the three months ended September 30, 2024 compared to $7.7 million for the three months ended September 30, 2023, which is an increase of $0.3 million. The increase between periods was primarily due to an increase in real estate taxes of $0.3 million.

Previous wording

Property general and administrative expenses. Property general and administrative expenses were $1.3 million for the three months ended June 30, 2024 compared to $1.2 million for the three months ended June 30, 2023, which was an increase of approximately $0.1 million. The increase between periods was primarily due to an increase in marketing expense.

Current wording

Property general and administrative expenses. Property general and administrative expenses were $1.3 million for the three months ended September 30, 2024 compared to $1.2 million for the three months ended September 30, 2023, which was an increase of approximately $0.1 million. The increase between periods was primarily due to increases in office operations and marketing of $0.1 million.

Previous wording

Net Operating Income for Our Same Store and Non-Same Store Properties for the Six Months Ended June 30, 2024 and 2023

Current wording

Net Operating Income for Our Same Store and Non-Same Store Properties for the Nine Months Ended September 30, 2024 and 2023

Previous wording

There are 35 properties encompassing 12,963 units of apartment space in our same store pool for the six months ended June 30, 2024 and 2023 (our “Same Store” properties). Our Same Store properties exclude the following property in our Portfolio as of June 30, 2024: Stone Creek at Old Farm, as well as the 21 units that are currently down (see Note 3).

Current wording

There are 35 properties encompassing 12,948 units of apartment space in our same store pool for the nine months ended September 30, 2024 and 2023 (our “Same Store” properties). Our Same Store properties exclude the following property in our Portfolio as of September 30, 2024: Stone Creek at Old Farm, as well as the 36 units that are currently down (see Note 3).

Previous wording

The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2024 and 2023 for our Same Store and Non-Same Store properties (dollars in thousands):

Current wording

The following table reflects the revenues, property operating expenses and NOI for the nine months ended September 30, 2024 and 2023 for our Same Store and Non-Same Store properties (dollars in thousands):

Previous wording

For the six months ended June 30, 2024 and 2023, excludes approximately $3,000 and $186,000, respectively, of casualty-related expenses.

Current wording

For the nine months ended September 30, 2024 and 2023, excludes approximately $3,000 and $1,382,000, respectively, of casualty-related recoveries.

Previous wording

For the six months ended June 30, 2024 and 2023, excludes approximately $2,064,000 and $1,301,000, 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.

Current wording

For the nine months ended September 30, 2024 and 2023, excludes approximately $2,654,000 and $2,178,000, 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.

Previous wording

See reconciliation of net loss to NOI above under “NOI and Same Store NOI for the Three and Six Months Ended June 30, 2024 and 2023.”

Current wording

See reconciliation of net loss to NOI above under “NOI and Same Store NOI for the Three and Nine Months Ended September 30, 2024 and 2023.”

Previous wording

Same Store Results of Operations for the Six Months Ended June 30, 2024 and 2023

Current wording

Same Store Results of Operations for the Nine Months Ended September 30, 2024 and 2023

Previous wording

As of June 30, 2024, our Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,520. As of June 30, 2023, our Same Store properties were approximately 94.1% leased with a weighted average monthly effective rent per occupied apartment unit of $1,535. For our Same Store properties, we recorded the following operating results for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023:

Current wording

As of September 30, 2024, our Same Store properties were approximately 94.9% leased with a weighted average monthly effective rent per occupied apartment unit of $1,502. As of September 30, 2023, our Same Store properties were approximately 93.9% leased with a weighted average monthly effective rent per occupied apartment unit of $1,529. For our Same Store properties, we recorded the following operating results for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023:

Previous wording

Other income. Other income was $2.8 million for the six months ended June 30, 2024 compared to $2.9 million for the six months ended June 30, 2023, which was a decrease of approximately $0.1 million, or 3.4%. The majority of the decrease is related to a $0.1 million decrease in laundry income.

Current wording

Other income. Other income was $4.1 million for the nine months ended September 30, 2024 compared to $4.4 million for the nine months ended September 30, 2023, which was a decrease of approximately $0.3 million, or 6.4%. The majority of the decrease is related to a $0.1 million decrease in cable income and all other income of $0.2 million.