Independence Realty (IRT)
NYSE:IRT
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Independence Realty
(NYSE:IRT)
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Rating:57Neutral
Price Target:
$17.00
▲(13.33% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid cash generation and a generally stable balance sheet, partly offset by uneven reported profitability and quality-of-earnings concerns. Technicals are weak (below key moving averages with negative MACD) and valuation is a notable headwind due to a very high P/E despite a supportive dividend yield. Earnings call takeaways are moderately positive, but slightly lower 2026 core FFO guidance and cost/lease-up pressures limit upside.
Positive Factors
Consistent cash generation
Consistent operating cash flow and a strong free-cash-flow rebound in 2025 provide durable internal funding for dividends, renovations, debt paydown and buybacks. Reliable cash generation improves financial flexibility and supports execution of capital allocation over upcoming quarters.
Negative Factors
Volatile reported profitability
Swinging net income and anomalous gross-profit reporting reduce confidence in earnings quality and predictability of distributable cash. For a REIT, persistent reporting inconsistencies make FFO and dividend coverage harder to forecast and can complicate capital planning over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Consistent operating cash flow and a strong free-cash-flow rebound in 2025 provide durable internal funding for dividends, renovations, debt paydown and buybacks. Reliable cash generation improves financial flexibility and supports execution of capital allocation over upcoming quarters.
Read all positive factors
Independence Realty (IRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.65B
Dividend Yield3.88%
Average Volume (3M)2.99M
Price to Earnings (P/E)72.3
Beta (1Y)0.65
Revenue Growth0.84%
EPS GrowthN/A
CountryUS
Employees917
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.14
Shares Outstanding237,280,270
10 Day Avg. Volume2,441,341
30 Day Avg. Volume2,993,975
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)1.18
Price to Sales (P/S)6.22
P/FCF Ratio27.91
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue8.72
Enterprise Value/Gross Profit21.85
Enterprise Value/Ebitda15.10
Forecast
1Y Price Target
$19.45Price Target Upside29.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.18
Revenue Forecast (FY)$680.66M
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 i...
How the Company Makes Money
Independence Realty generates revenue primarily through rental income from its portfolio of multifamily properties. This includes monthly rents collected from tenants living in their apartment communities. Additionally, IRT benefits from property ...
Independence Realty Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presents a generally constructive and pragmatic outlook: operational execution (AI leasing, faster renovations, improved bad-debt) and disciplined capital actions (asset sales, JV exits, accretive buybacks, new term loan) underpin resilience and position the company for recovery. However, margin pressure from higher operating costs (payroll, utilities, Wi‑Fi costs), elevated concessions in select lease-ups, slower stabilization of certain developments (Denver/Flatirons and Austin lease-ups), and a slightly lower core FFO guidance versus 2025 temper near-term upside. Management’s balance-sheet actions and market exposure to favorable migration/job-growth markets support a positive forward view, while specific market and expense headwinds present near-term risks.Positive Updates
Same-Store NOI and Revenue Growth
Same-store NOI grew 1.8% in Q4 and 2.4% for full-year 2025. Full-year same-store revenue increased 1.7%, outperforming the company’s initial guidance amid difficult market fundamentals.
Negative Updates
Operating Expense Pressure
Same-store operating expenses increased 2.4% in Q4 and expanded 50 basis points year-over-year for the full year. Management is guiding to total same-store operating expense growth of 3.4% in 2026 (controllable operating expenses +5.1% and noncontrollable +0.5%). Controllable costs include $1.9M of Wi‑Fi contract costs; excluding Wi‑Fi, controllable expenses are expected to rise ~3.5%.
Read all updates
Q4-2025 Updates
Positive
Negative
Same-Store NOI and Revenue Growth
Same-store NOI grew 1.8% in Q4 and 2.4% for full-year 2025. Full-year same-store revenue increased 1.7%, outperforming the company’s initial guidance amid difficult market fundamentals.
Read all positive updates
Company Guidance
Independence’s 2026 guidance targets EPS of $0.21–$0.28 and core FFO of $1.12–$1.16 (midpoint $1.14), bridging from 2025 core FFO of $1.17 via +$0.01 same‑store NOI, +$0.01 non‑same‑store NOI, and offsets of −$0.01 lower JV preferred income, −$0.03 higher interest expense and −$0.01 higher corporate costs. Assumptions include same‑store NOI up ~80 bps at the midpoint driven by 1.7% same‑store revenue growth and total same‑store operating expenses up 3.4% (controllable +5.1% including $1.9M of Wi‑Fi contract costs — ex‑Wi‑Fi controllable +3.5%; noncontrollable +50 bps), average occupancy ~95.5% (up 20 bps), bad debt ~90 bps of revenue (~20 bps improvement vs. 2025), other income +5.4% (includes ~$5.5M Wi‑Fi revenue beginning July and a planned Wi‑Fi rollout to 63 communities / ~19,000 units), blended effective rent growth 1.7% (new lease trade‑outs −75 bps; renewal trade‑outs +3.25%; resident retention 60%), non‑same‑store NOI $25–$26M, G&A and property management expense $56M, and interest expense up ≈$8M (driven by ~$3M from acquisitions, ~$3.9M less capitalized interest, ~$1M from hedges); management also plans to improve net debt/adjusted EBITDA from 5.7x toward the mid‑to‑low‑5x range.Independence Realty Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 657.70M | 640.03M | 660.98M | 628.52M | 250.25M |
| Gross Profit | -98.05M | 374.52M | 389.57M | 372.22M | 147.46M |
| EBITDA | 379.95M | 350.28M | 291.08M | 460.46M | 158.84M |
| Net Income | 56.56M | 39.29M | -17.23M | 117.25M | 44.59M |
Balance Sheet | |||||
| Total Assets | 6.02B | 6.06B | 6.28B | 6.53B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 47.62M | 21.23M | 22.85M | 16.08M | 35.97M |
| Total Debt | 2.28B | 2.33B | 2.55B | 2.63B | 2.71B |
| Total Liabilities | 2.43B | 2.48B | 2.71B | 2.79B | 2.86B |
| Stockholders Equity | 3.46B | 3.44B | 3.43B | 3.60B | 3.48B |
Cash Flow | |||||
| Free Cash Flow | 146.52M | 84.69M | 115.54M | 103.80M | 9.28M |
| Operating Cash Flow | 282.15M | 259.75M | 262.17M | 249.54M | 52.26M |
| Investing Cash Flow | -142.91M | -20.61M | -1.71M | -135.77M | -216.12M |
| Financing Cash Flow | -135.07M | -246.43M | -253.74M | -135.43M | 215.92M |
Independence Realty Technical Analysis
Negative
15.00
Price Trends
16.38
Negative
16.64
Negative
16.81
Negative
Market Momentum
-0.41
Positive
27.76
Positive
8.44
Positive
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 15 is below the 20-day moving average (MA) of 15.92, below the 50-day MA of 16.38, and below the 200-day MA of 16.81, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 27.76 is Positive, neither overbought nor oversold. The STOCH value of 8.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRT.
Independence Realty Risk Analysis
Independence Realty disclosed 95 risk factors in its most recent earnings report. Independence Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Independence Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $4.45B | 13.05 | 6.48% | 6.18% | ― | ― | |
63 Neutral | $1.77B | 18.46 | 5.33% | 2.17% | 3.37% | ― | |
57 Neutral | $3.65B | 72.30 | 1.64% | 3.88% | 0.84% | ― | |
55 Neutral | $1.04B | 63.46 | -4.93% | 4.58% | 36.82% | ― | |
47 Neutral | $640.91M | -23.86 | -12.63% | 7.06% | -4.46% | -206.19% | |
45 Neutral | $578.36M | 1.50 | 342.51% | 7.42% | -4.63% | 42.39% |
* Real Estate Sector Average
IRT
Independence Realty
14.83
-5.19
-25.93%
AIV
Apartment Investment & Management
3.95
-0.75
-15.92%
VRE
Veris Residential
18.93
2.41
14.57%
CSR
Centerspace
57.77
-3.62
-5.90%
NXRT
NexPoint Residential
24.60
-11.89
-32.58%
MRP
Millrose Properties Inc Class A
28.84
4.53
18.62%
Independence Realty Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Independence Realty Expands Credit Facility and Strengthens Liquidity
Positive
Feb 11, 2026
On February 11, 2026, Independence Realty Trust’s operating partnership entered into a Sixth Amended and Restated Credit Agreement that upsized its unsecured credit capacity to $1.5 billion, with the option to increase to $2.0 billion, and a...
Executive/Board Changes
Independence Realty Trust Announces General Counsel Transition
Neutral
Feb 6, 2026
Independence Realty Trust, Inc., a real estate investment trust focused on income-producing residential properties, announced a leadership transition in its legal department. The company reported that Executive Vice President, General Counsel and ...
Executive/Board Changes
Independence Realty EVP Michele Weisbaum Announces Retirement
Neutral
Dec 8, 2025
On December 5, 2025, Michele Weisbaum, the Executive Vice President, General Counsel, and Secretary of Independence Realty Trust, Inc., announced her retirement effective around March 31, 2026. Her retirement is not due to any disagreements with t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.