NexPoint Residential Trust (NXRT) is a multifamily REIT operating a portfolio of approximately 12,247 apartment units across Sun Belt markets. Under a liquidation lens, MFFAIS reports a cash/liquid/operating liquidation value of approximately negative $1.58 billion as of the period ending March 31, 2026, consistent with the structural reality of this entity: gross real estate assets carried at $2.43 billion ($1.80 billion net of $628 million accumulated depreciation) are subject to a 50-70% recovery haircut in forced liquidation, while $1.60 billion of long-term debt (mortgage and revolving credit) and associated accrued liabilities remain at face value. Applying a 60% haircut to net real estate of $1.80 billion yields approximately $1.08 billion recoverable from the primary asset, against $1.60 billion of debt at face — producing a structural deficit to equity before any wind-down costs. Stockholders' equity on the books is $272 million, but that figure includes accumulated depreciation-reduced book values and does not reflect forced-sale discounts. The liability stack is dominated by $1.54 billion in mortgage principal (all-in floating rate at a gross weighted average of 4.73%, partially hedged to 3.30% adjusted rate via $917.5 million notional swaps) plus $57 million drawn on the JPM revolving credit facility. Critically, 98% of mortgage principal matures after 2030 (only $33.8 million due in 2028, remainder thereafter), so there is no near-term maturity cliff pressuring forced liquidation, but in a wind-down scenario all principal due at face is not discounted. The corporate credit facility (prior Truist facility matured June 2025) was replaced with a $200 million JPM facility (drawn $57M, $141M available), maturing June 2028. A new $40.3 million SOFR-plus-1.23% mortgage on Sedona at Lone Mountain closed January 30, 2026, adding incremental senior secured debt. Interest rate swap coverage (seven swaps, $917.5M combined notional at 1.36% weighted average fixed rate terminating through 2030) has positive fair value of $9.4 million; in liquidation, the in-the-money swap positions would be netted, but the JPM swap (April 2025-April 2030, $100M at 3.489%) is out-of-the-money given current SOFR levels and would represent a liability at termination. Restricted cash of $34.3 million (lender reserves, renovation reserves) would be available but subject to lender claims. No goodwill, no pension obligations, no material operating lease liabilities disclosed. The NLMF Holdco fiber internet commitment is immaterial ($1.0 million funded). No impairments recorded in Q1 2026. The filing does not separately XBRL-tag the aggregate accumulated depreciation on the balance sheet; the Schedule III data from the prior 10-K shows $604.3 million accumulated depreciation as of December 31, 2025, which informs the net book value base. Sedona at Lone Mountain was acquired December 2025 (unencumbered in the prior period, $73.6 million gross cost) and now carries the new $40.3 million mortgage, materially shifting that property's net position. Portfolio occupancy of approximately 88-97% across properties is operationally supportive but irrelevant to the liquidation recovery calculus.
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