NexPoint Storage Partners Refinances Entire Debt of $825M

NexPoint, a multibillion-dollar alternative investment firm, just announced significant refinancing transactions for NexPoint Storage Partners completed in 2024. Major transactions over the past 12 months include $750 million in CMBS financing co-managed by Citigroup and JPMorgan, and an additional $75 million private placement of Series F Preferred Equity through Raymond James.

The transactions fully refinanced NexPoint Storage's existing debt across its entire self-storage portfolio, which includes 61 self-storage facilities across 21 states, fixing the interest/dividend rate and extending maturities to 2029. This strategic balance sheet repositioning significantly enhances free cash flow as properties near stabilization, reduces annual interest expenses by $9 million and positions the company for future growth.

"These transactions highlight our team's ability to nimbly navigate markets and underscore the exceptional quality and performance that our investors and stakeholders are realizing from our world-class self-storage portfolio," said John Good, Chief Executive Officer of NexPoint Storage Partners. "NexPoint Storage enters 2025 with positive momentum that positions us to pursue strategic initiatives."

Managed by Extra Space Storage, NexPoint Storage's portfolio encompasses 4.9 million square feet of rentable space and boasts a 92.1% occupancy rate. These are concentrated in high-growth, densely populated markets.

The refinancing transactions not only enhance NexPoint Storage's financial flexibility but also position the company to capitalize on future opportunities. By improving free cash flow and reducing interest expenses, NexPoint Storage can pursue additional investments and strategic growth initiatives while maintaining a strong balance sheet into 2025, when self-storage fundamentals are expected to improve, and new supply is expected to remain muted.