Independence Realty (IRT) AI Stock Analysis

• Market Cap: $4.02B
• Dividend Yield: 3.88%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 138.9
• Beta (1Y): 0.88
• Revenue Growth: -1.54%
• EPS Growth: N/A
• Country: US
• Employees: 917
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Residential
• EPS (TTM): 0.03
• Shares Outstanding: 233,817,110
• 10 Day Avg. Volume: 2,549,819
• 30 Day Avg. Volume: 2,899,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 10.12
• Enterprise Value/Gross Profit: 20.16
• Enterprise Value/Ebitda: 19.40
• 1Y Price Target: $21.90
• Price Target Upside: 30.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 62 Neutral
• Price Target: $17.50 ▲(4.42%Upside)

Independence Realty Trust's overall stock score is influenced primarily by its solid financial performance and effective operational management, which are slightly offset by challenges in increasing net profitability and generating higher returns on equity. Technical indicators suggest bearish momentum, and high valuation metrics warrant caution. Despite these challenges, the company's strategic acquisitions and cost management initiatives provide a positive outlook for future improvements.

Positive Factors

Financial Performance

FY25 SSNOI guidance was raised to +2.1%, surpassing Street expectations, due to a significant reduction in operating expenses.

Liquidity and Capital Management

IRT is in a strong liquidity position with approximately $742.9 million at the end of the quarter, providing financial flexibility.

Strategic Growth

Strong execution on capital allocation & delevering is noted as a positive factor, enhancing the company's financial stability.

Negative Factors

Lease and Occupancy

2Q25 new lease rate and occupancy came in below management's expectations, indicating potential challenges in maintaining rental growth.

Leverage Concerns

Leverage increased to 6.3x net-debt-to-adjusted EBITDA, which remains higher than industry peers, posing a potential risk.

Revenue Performance

'25 SS Revenue was lowered to +1.7%, reflecting a year-over-year decline and falling below Street and BMO expectations.

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 exhibits a moderately strong financial position with steady revenue growth and solid cash flow performance. While profitability margins indicate effective operational management, there is potential to enhance net profitability. The balance sheet is stable with a reasonable debt level, though returns on equity could be improved to enhance shareholder value.

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	29.05M	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: 16.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 16.76 is below the 20-day moving average (MA) of 17.33, below the 50-day MA of 17.69, and below the 200-day MA of 19.22, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 34.40 is Neutral, neither overbought nor oversold. The STOCH value of 18.13 is Positive, 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	68 Neutral	$1.36B	145.82	3.45%	5.36%	8.01%	―
CSR	66 Neutral	$959.72M	―	-1.55%	5.61%	-1.81%	-33.33%
Sector *	63 Neutral	$6.73B	14.24	-1.44%	7.30%	4.75%	-35.88%
IRT	62 Neutral	$4.02B	138.86	0.81%	3.88%	-1.54%	―
BRT	59 Neutral	$274.47M	―	-4.28%	6.89%	2.39%	-407.57%
NXRT	57 Neutral	$783.88M	866.19	-11.85%	6.47%	-6.02%	-156.44%
AIV	45 Neutral	$1.19B	―	-48.27%	7.15%	9.28%	34.42%

Independence Realty Corporate Events

Independence Realty Reports Q2 2025 Financial Results

Independence Realty Trust announced its financial results for the second quarter of 2025, reporting an EPS of $0.03 and CFFO per share of $0.28, both aligning with expectations. The company achieved a 2.0% increase in same-store portfolio NOI, supported by stable occupancy and rental rate growth, while operating expenses declined by 0.6% due to operational efficiencies and favorable insurance renewals. IRT completed 454 renovations in its value-add program, achieving an average ROI of 16.2%. The company is evaluating future acquisitions, with two communities in Orlando under contract for Q3 2025, and has identified three properties for disposition in the second half of the year. Despite a slight decrease in net income compared to the previous year, IRT maintains a strong balance sheet with conservative leverage and ample liquidity to support growth.

The most recent analyst rating on (IRT) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.

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.