Independence Realty (IRT) AI Stock Analysis

• Market Cap: $4.22B
• Dividend Yield: 3.86%
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): 133.1
• Beta (1Y): 0.87
• Revenue Growth: -2.94%
• EPS Growth: N/A
• Country: US
• Employees: 917
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Residential
• EPS (TTM): 0.04
• Shares Outstanding: 233,784,940
• 10 Day Avg. Volume: 3,663,552
• 30 Day Avg. Volume: 2,449,772
• PEG Ratio: 1.12
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.60
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 25.91
• Enterprise Value/Ebitda: 6.28
• 1Y Price Target: $22.63
• Price Target Upside: 28.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $20.00 ▲(13.57%Upside)

Independence Realty Trust's stock score is primarily influenced by its solid financial performance and mixed earnings call results. While technical analysis and valuation reveal some downside risks, the company's strong cash flow and acquisition pipeline provide a stable investment backdrop. Investors should be cautious of the high P/E ratio and monitor market trends.

Positive Factors

Financial Performance

Independence Realty Trust is in a strong liquidity position with approximately $742.9 million at the end of the quarter.

Growth and Expansion

Solid acquisition pipeline with IRT expected to acquire two communities for $154.8M.

Value-add Program

The ongoing value-add portfolio is expected to generate a 15.6% return on investment on total costs.

Negative Factors

Leverage

Leverage increased +40bps q/q to 6.3x net-debt-to-adjusted EBITDA and remains higher than peers.

Revenue Growth

2025 Blended lease growth expectations of +1.6% is a more moderate improvement from 2024 (+60 bps) vs. Sunbelt peers (+200 bps average).

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

IRT primarily generates revenue through rental income from its multifamily apartment properties. This income is derived from the lease agreements with tenants, which typically include monthly rent payments. Additionally, the company may earn ancillary income from services such as parking fees, pet fees, and utility reimbursements. IRT's earnings are also influenced by its ability to maintain high occupancy rates and strategically raise rents in line with market conditions. As a REIT, IRT benefits from tax advantages by distributing at least 90% of its taxable income to shareholders in the form of dividends, which are a significant aspect of its financial strategy. The company's growth and revenue are further supported by strategic acquisitions and development of new properties, as well as partnerships with local developers and property managers to optimize its operations and expand its market presence.

Independence Realty Financial Statement Overview

Summary

Independence Realty displays a moderately strong financial standing with stable revenue growth and robust cash flow. However, there is room for improvement in net profitability and returns on equity.

Income Statement

Independence Realty has shown a stable revenue base with a slight increase in total revenue over the TTM compared to the previous year. The gross profit margin is healthy at 50.17%, indicating efficient cost management. However, the net profit margin is relatively low at 4.69%, suggesting room for improvement in profitability. The EBIT margin of 30.12% shows strong operational efficiency, while the EBITDA margin is robust at 52.14%, reflecting good earnings before depreciation and amortization.

Balance Sheet

The debt-to-equity ratio of 0.65 indicates a moderate level of leverage, which is typical for the REIT industry. The return on equity (ROE) is low at 0.87%, indicating challenges in generating returns from equity. The equity ratio is solid at 57.74%, showing a strong equity base relative to assets, which enhances financial stability.

Cash Flow

The free cash flow has grown by 54.67% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high at 9.18, signaling efficient conversion of net income to cash. The free cash flow to net income ratio of 4.36 suggests good free cash flow relative to net income, providing flexibility for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	640.74M	640.03M	660.98M	628.52M	250.25M	211.91M
Gross Profit	321.49M	374.52M	167.37M	372.22M	147.46M	120.43M
EBITDA	334.07M	350.28M	291.08M	345.35M	220.88M	105.21M
Net Income	30.07M	39.29M	-17.23M	33.70M	8.19M	-21.59M
Balance Sheet
Total Assets	5.98B	6.06B	6.28B	6.53B	6.51B	1.73B
Cash, Cash Equivalents and Short-Term Investments	49.14M	21.23M	22.85M	16.08M	35.97M	8.75M
Total Debt	2.26B	2.33B	2.43B	4.60B	2.71B	945.69M
Total Liabilities	2.40B	2.48B	2.71B	2.79B	2.86B	1.02B
Stockholders Equity	3.46B	3.44B	3.43B	3.60B	3.48B	708.06M
Cash Flow
Free Cash Flow	130.99M	84.69M	115.54M	165.56M	9.28M	37.56M
Operating Cash Flow	276.06M	259.75M	262.17M	249.54M	52.26M	74.96M
Investing Cash Flow	-265.57M	-20.61M	-1.71M	-135.77M	-216.12M	-124.54M
Financing Cash Flow	-4.06M	-246.43M	-253.74M	-135.43M	215.92M	48.76M

Independence Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.61
• 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 17.61 is below the 20-day moving average (MA) of 17.78, below the 50-day MA of 18.39, and below the 200-day MA of 19.43, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.35 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
UMH	69 Neutral	$1.44B	153.64	3.45%	5.19%	8.01%	―
CSR	66 Neutral	$1.07B	―	-1.55%	5.09%	-1.81%	-33.33%
BRT	64 Neutral	$298.29M	―	-4.28%	6.34%	2.39%	-407.57%
IRT	64 Neutral	$4.22B	133.13	0.87%	3.86%	-2.94%	―
Sector *	63 Neutral	$6.93B	18.26	-1.91%	6.91%	4.65%	-25.39%
NXRT	55 Neutral	$851.75M	866.19	-7.19%	6.08%	-7.44%	-143.64%
AIV	48 Neutral	$1.22B	―	-48.27%	6.94%	9.28%	34.42%

Independence Realty Corporate Events

Independence Realty Releases New Investor Presentation

Independence Realty Trust, Inc. announced that a slide presentation, which may be used in investor presentations, will be available starting June 2, 2025. The information provided is not considered filed under the Securities Exchange Act of 1934 and will not be incorporated into any registration statement under the Securities Act of 1933.

The most recent analyst rating on (IRT) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.

Independence Realty Holds Annual Stockholders Meeting

On May 14, 2025, Independence Realty Trust, Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the election of ten directors, the ratification of KPMG LLP as the independent registered public accounting firm for 2025, and an advisory vote on executive compensation. These decisions reflect the company’s ongoing governance and operational strategies, with implications for its management structure and financial oversight.

The most recent analyst rating on (IRT) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.

Independence Realty Releases Investor Presentation May 2025

Independence Realty Trust, Inc. announced that a slide presentation, which may be used in investor presentations, will be available starting May 5, 2025. The presentation is part of a current report and is not considered filed under the Securities Exchange Act of 1934, nor will it be incorporated into any registration statement under the Securities Act of 1933.

Independence Realty Reports Q1 2025 Financial Results

Independence Realty Trust reported its first quarter 2025 financial results, highlighting a net income of $8.4 million and an EPS of $0.04, both showing a decline compared to the previous year. The company achieved a 2.7% increase in same-store net operating income and completed 275 unit renovations with a 16.2% ROI. IRT exited the Birmingham, AL market and expanded in Indianapolis, IN, with further acquisitions planned in Orlando, FL, and Colorado Springs, CO. The company strengthened its balance sheet by expanding its unsecured revolver and entering a forward sale of $56 million in equity, positioning itself for continued growth and improved fundamentals in 2025.