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NexPoint Residential Trust, Inc. (NYSE:NXRT) is a real estate investment trust (REIT), focused on the acquisition, asset management and disposition of multifamily assets located primarily in the Sun Belt region of the United States.

The company is set to report its Q3 2024 earnings on October 29. Wall Street analysts expect the company to post an EPS of $0.80, up from $0.65 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $63.77 million, down from $69.84 million in the year-ago period.

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If You Bought NexPoint Residential Stock 9 Years Ago

The company's stock traded at around $14.50 per share nine years ago at its IPO. If you had invested $1,000, you could have bought approximately 69 shares of NexPoint Residential stock. Currently, shares are trading at $43.11, which means your investment's value could have soared to $2,973 because of stock price appreciation. But wait, the company also paid dividends during these nine years.

NexPoint Residential’s dividend yield is currently 4.27%. Over the last nine years, it paid around $12.29 in dividends per share, which means you could have made $848 from dividends alone.

Summing up $2,973 and $848, we end up with the final value of your investment, which is $3,821. This is how much you could have made if you had invested $1,000 in NexPoint Residential stock nine years ago. This means a total return of 282.1%. The S&P 500 total return for the same period was 211.64%.

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What Could The Next 9 Years Bring?

NexPoint Residential has a consensus rating of Buy and a price target of $56.17 based on the ratings of 9 analysts. The price target implies a potential upside of around 30% from the current stock price.

Check out this article by Benzinga for five analysts' insights on NexPoint Residential stock.

On July 30, the company reported its Q2 2024 earnings, posting an FFO of $0.68, compared to the consensus estimate of $0.64, and revenues of $64.20 million, compared to the consensus of $64.75 million, as reported by Benzinga.

The company expects to refinance portfolio-level debt to current floating rate spreads, aiming to reduce the average SOFR spread from 158 bps to 100-110 bps. This reduction is estimated to provide a $0.15-$0.20 per share benefit annually through 2027, assuming all other factors remain constant. One significant added benefit to this refinancing initiative, beyond tightening credit spreads and extending maturities out another seven years, is to offset the expected impact of its interest rate swaps maturing over the next three years.

In summary, growth-focused investors may find NexPoint Residential stock attractive, given the historical stock price appreciation and expected 30% upside potential. Furthermore, the stock can be a good option for income-focused investors who benefit from the company's solid dividend yield of 4.27%.

Better Yields Than Some REITs?

The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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This article This Stock Turned $1,000 Into $3,821 Since Its 2015 IPO. Here's Why It's Not Too Late to Buy originally appeared on Benzinga.com