Overall Score

Scale Market Position

NXRT remains a meaningful multifamily REIT with a $633.8M market cap and $2.21B enterprise value, supporting some scale advantages.

The portfolio still benefits from strong gross profit margin and revenue per share generation, but the moat is constrained by leverage and weak balance-sheet flexibility.

Pricing Power Occupancy

High gross profit margin and positive operating margin suggest the portfolio can still support rent levels, but profitability remains pressured at the net line.

No fresh news indicates a change in occupancy or rent growth trends this month.

Cost Advantage

Operating cash flow and free cash flow remain positive, but elevated debt and interest burden limit any clear cost-advantage narrative.

The company’s cash conversion cycle remains negative, which helps working-capital efficiency, though this is not enough to offset financing costs.

Asset Quality Replacement Value

Tangible book value per share of $9.92 and book value per share near the same level indicate a real asset base underpinning the business.

However, low return on assets and modest return on invested capital suggest the asset base is not yet producing strong economic excess returns.

Switching Costs Tenant Stickiness

As a multifamily landlord, NXRT benefits from some tenant stickiness, but the framework does not show evidence of unusually high switching costs.

No new news suggests a structural change in tenant retention or lease renewal dynamics.

Balance Sheet Resilience

Leverage remains high with debt-to-equity above 6x and net debt to EBITDA above 4x, while current ratio stays below 0.5x.

Interest coverage is still very weak, keeping financial flexibility as a key constraint on moat durability.