NexPoint Residential Trust, Inc.

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:

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

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macroeconomic trends including inflation and high interest rates may continue to, and other trends such as tariffs may, adversely affect our financial condition and results of operations;

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risks associated with the ownership of real estate;

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

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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;

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

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

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potential reforms to the Federal Home Loan Mortgage Corporation (“Freddie Mac”);

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

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

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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;

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

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failure of acquisitions to yield anticipated results;

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

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

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

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lack of or insufficient amounts of insurance;

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

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

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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;

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

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

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risks associated with operating through joint ventures and funds;

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our dependence on information systems;

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risks associated with breaches of our data security;

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

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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;

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

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risks associated with derivatives or hedging activity;

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risks associated with representations and warranties made by 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;

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

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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;

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

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

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

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risks associated with any potential internalization of our management functions;

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

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

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failure to maintain our status as a REIT;

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

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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;

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risks associated with our ownership of interests in taxable REIT subsidiaries ("TRSs");

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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”);

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

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the risk that we may be subject to other tax liabilities that may reduce our cash flows and distributions on our shares;

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

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

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

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

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foreign investors may be subject to U.S. federal income tax or withholding tax on distributions received from us or on proceeds and the disposition of our current common stock;

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

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

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

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

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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;

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

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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 26, 2025 or under Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q.

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.

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