Independence Realty (IRT) AI Stock Analysis

• Market Cap: $4.50B
• Dividend Yield: 3.37%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 109.1
• Beta (1Y): 1.08
• Revenue Growth: -3.17%
• EPS Growth: N/A
• Country: US
• Employees: 917
• Sector: Real Estate
• Sector Strength: 78
• Industry: REIT - Residential
• EPS (TTM): 0.17
• Shares Outstanding: 231,116,970
• 10 Day Avg. Volume: 1,960,238
• 30 Day Avg. Volume: 2,121,212
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.48
• Price to Cash Flow (P/CF): 18.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.44
• Price Target Upside: 18.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Independence Realty Trust shows robust financial health with strong operational efficiency and a solid balance sheet. The strong guidance and strategic initiatives support a positive outlook despite some market pressures and valuation concerns. The technical analysis indicates strong momentum, though caution is advised due to potential overbought conditions. Overall, IRT is well-positioned within the REITs industry, but the high valuation demands continued strong performance.

Positive Factors

Financial Flexibility

The expanded unsecured credit facility, increasing borrowing capacity to $750mm, gives Independence Realty Trust greater financial flexibility and a more favorable capital structure.

Investment Strategy

IRT offers investors differentiated class & geographic exposure, with upside from external growth and redevelopment.

Market Performance

IRT's markets are expected to improve, and IRT could be a winner in the sector.

Negative Factors

Lease Growth

New supply has negatively impacted blended lease growth, leading IRT to reduce SS Revenue guidance twice this year.

Leasing Recovery

The Core FFO estimate for 2025 is lowered, reflecting a slower pace of leasing recovery.

Value-add Program

Rent increases on IRT's value-add program have flatlined, causing ROI on the program to decline.

Independence Realty Business Overview & Revenue Model

Company Description

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Louisville, Memphis, and Raleigh. IRT's investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.

How the Company Makes Money

Independence Realty makes money primarily through rental income generated from its multifamily apartment communities. As a REIT, IRT acquires and manages residential properties, collecting rental payments from tenants as the primary source of revenue. Additionally, the company may earn income from property management fees and service charges associated with maintaining and operating its properties. IRT's earnings are also influenced by strategic acquisitions and renovations that can enhance property value and increase rental rates. The company benefits from economies of scale and a diversified property portfolio, which helps mitigate risks and stabilize cash flow. Partnerships with local developers and real estate professionals can also contribute to the company's growth and profitability.

Independence Realty Financial Statement Overview

Summary

Independence Realty has demonstrated strong operational metrics and a solid balance sheet. The income statement indicates volatility in revenue growth and profit margins, but operational efficiency is improving. The balance sheet is robust with no debt and strong equity, while cash flow is resilient but variable in converting income to cash.

Income Statement

Independence Realty has shown a strong gross profit margin due to its effective cost management, maintaining high levels of gross profit relative to total revenue. The net profit margin, while positive in 2024, reflects volatility due to past losses. Revenue growth has been inconsistent, but the company has demonstrated an ability to improve EBIT and EBITDA margins, indicating operational efficiency improvements.

Balance Sheet

The balance sheet is strengthened by a healthy equity position, with no current total debt reported in 2024, which significantly improves the debt-to-equity ratio. The return on equity (ROE) shows positive, albeit moderate, returns, indicating the company is generating reasonable income from its equity base. The equity ratio reflects a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow remains robust, supporting the company's ability to generate cash from its core operations. Free cash flow has grown, demonstrating effective capital expenditure management. However, fluctuations in free cash flow to net income ratios indicate variability in translating earnings into cash, which could pose a risk if not stabilized.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
640.03M	660.98M	628.52M	250.25M	211.91M
	Gross Profit
640.03M	167.37M	372.22M	147.46M	120.43M
	EBIT
0.00	147.84M	92.50M	51.94M	44.52M
	EBITDA
337.03M	291.08M	345.35M	220.88M	105.21M
	Net Income Common Stockholders
39.29M	-17.23M	33.70M	8.19M	-21.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.23M	22.85M	16.08M	35.97M	8.75M
	Total Assets
6.06B	6.28B	6.53B	6.51B	1.73B
	Total Debt
2.33B	2.43B	4.60B	2.71B	945.69M
	Net Debt
2.31B	2.38B	4.59B	2.67B	936.93M
	Total Liabilities
2.48B	2.71B	2.79B	2.86B	1.02B
	Stockholders Equity
3.44B	3.43B	3.60B	3.48B	708.06M
Cash Flow		Free Cash Flow
84.69M	115.54M	165.56M	9.28M	37.56M
	Operating Cash Flow
259.75M	262.17M	249.54M	52.26M	74.96M
	Investing Cash Flow
-20.61M	-1.71M	-135.77M	-216.12M	-124.54M
	Financing Cash Flow
-246.43M	-253.74M	-135.43M	215.92M	48.76M

Independence Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRT, the sentiment is Negative. The current price of 19 is below the 20-day moving average (MA) of 20.72, below the 50-day MA of 20.36, and below the 200-day MA of 19.71, indicating a bearish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRT.

Independence Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRT	75 Outperform	$4.50B	109.07	1.14%	3.37%	-3.17%	―
BRT	64 Neutral	$300.79M	―	-4.52%	6.29%	2.15%	-556.06%
Sector *	61 Neutral	$4.44B	16.16	-3.31%	11.40%	5.81%	-21.40%
CSR	61 Neutral	$1.07B	―	-1.53%	5.01%	-21.69%	-154.55%
UMH	60 Neutral	$1.47B	540.91	2.67%	4.82%	8.88%	―
NXRT	60 Neutral	$912.30M	843.50	0.25%	5.45%	-6.42%	-98.33%
AIV	43 Neutral	$1.11B	―	-44.01%	―	11.60%	36.23%

Independence Realty Corporate Events

Independence Realty Highlights 2024 Achievements and 2025 Outlook

In its recent investor presentation, Independence Realty Trust highlighted its strategic milestones achieved in 2024, including raising $268 million in equity capital and acquiring three communities to expand its market presence. The company reduced leverage and achieved an investment-grade issuer rating. For 2025, IRT provided guidance indicating strong improvement in fundamentals, with expected growth in net operating income and core funds from operations per share. The company plans to continue its Value Add renovation program, which has historically generated significant returns, and aims to leverage its liquidity and flexible balance sheet to drive further growth.

Independence Realty Reports Strong Q4 2024 Results

Independence Realty Trust reported strong financial results for the fourth quarter and full year of 2024, achieving the high end of its guidance with a core funds from operations (CFFO) per share of $1.16 and net operating income (NOI) growth of 3.2%. The company saw a significant improvement in its financial position with a net debt-to-Adjusted EBITDA ratio decrease to 5.9x and a renewed and expanded unsecured line of credit. These achievements were supported by strategic renovations in their value-add program, leading to a 15.7% return on investment, and an improved S&P credit rating to BBB. As the company looks forward to 2025, it is poised for further growth by capitalizing on positive market trends.

Independence Realty Expands Credit Facility to Enhance Growth

Independence Realty Trust, Inc. announced an amended and restated unsecured credit facility, increasing its revolving credit capacity from $500 million to $750 million and extending its maturity to 2029. This move, supported by investment-grade ratings, aims to enhance IRT’s financial flexibility, decrease interest costs, and provide long-term value for stakeholders, with interest rate margins reflecting a reduction of approximately 34 basis points.