Material Event (Form 8-K)

As previously disclosed by NexPoint Residential Trust, Inc. (the "Company") in its Current Report on Form 8-K filed with the Securities and Exchange Commission on May 20, 2025, James Dondero received a greater number of votes "withheld" than votes "for" his election as a director at the 2025 annual meeting of stockholders. The Company further reported that, in accordance with the Company's majority voting policy, Mr. Dondero tendered his resignation from the board of directors (the "Board"), with the effectiveness of such resignation conditioned upon the Board's acceptance thereof.

In accordance with the Company's majority voting policy, the Nominating and Corporate Governance Committee of the Board (the "NCG Committee") considered Mr. Dondero's tendered resignation and recommended that the Board reject his tendered resignation. On July 28, 2025, on the recommendation of the NCG Committee, the Board determined that it was in the best interest of the Company and its stockholders to reject Mr. Dondero's tendered resignation. Mr. Dondero did not participate in the NCG Committee's recommendation, or the Board's decision, regarding his tendered resignation or future Board service.

In reaching this decision, the NCG Committee and the Board considered a number of factors, including, but not limited to: (1) Mr. Dondero's expertise in investment management and real estate investment trusts; (2) his experience as both an executive officer and a director of multiple companies; (3) his tenure on the Board and the perspective on the Company, its history and its business that this experience provides; (4) his role as Chairman of the Board and President of the Company, and that the NCG Committee and Board believe that combining these positions is the most effective leadership structure for the Company at this time; and (5) that proxy advisory firm voting recommendations against Mr. Dondero's election were due to director attendance at Board meetings and that Mr. Dondero has attended all of the Board meetings so far in 2025.

As a result, Mr. Dondero will continue to serve as a member of the Board until the 2026 annual meeting of stockholders or until his successor is duly elected and qualified.