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Independence Realty
(NYSE:IRT)
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Rating:65Neutral
Price Target:
$18.50
▲(11.38% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by stable-to-improving fundamentals (positive operating and free cash flow, strong TTM revenue rebound) and a constructive technical setup (price above major moving averages with moderate momentum). These positives are tempered by valuation risk (very high P/E) and uneven profitability/reporting clarity (thin/volatile gross profitability and inconsistent debt reporting), while the latest earnings call adds incremental support through improved same-store NOI outlook and expense discipline despite interest-cost headwinds.
Positive Factors
Strong cash generation
Sustained operating and free cash flow provides durable internal funding for dividends, value‑add renovations and debt service. Reliable cash generation underpins distribution coverage and capital allocation flexibility, supporting long‑term growth and resilience through cycles.
Negative Factors
Volatile profitability / thin gross margins
Sharp swings in gross profitability and a negative gross profit year indicate exposure to one‑off items or cost pressure that can erode recurring earnings. Thin margins reduce resilience to higher expenses and limit steady FFO growth relative to asset base over months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating and free cash flow provides durable internal funding for dividends, value‑add renovations and debt service. Reliable cash generation underpins distribution coverage and capital allocation flexibility, supporting long‑term growth and resilience through cycles.
Read all positive factors
Independence Realty Key Performance Indicators (KPIs)
Any
Number of Properties
Count of distinct properties in the portfolio, revealing how diversified the company is across locations and asset types. A larger, well‑spread property base reduces exposure to local downturns and can enable cost efficiencies; a concentrated portfolio increases location-specific risk.
Count of distinct properties in the portfolio, revealing how diversified the company is across locations and asset types. A larger, well‑spread property base reduces exposure to local downturns and can enable cost efficiencies; a concentrated portfolio increases location-specific risk.
Data provided by:
The Fly
The FlyIndependence Realty (IRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.17B
Dividend Yield4%
Average Volume (3M)2.65M
Price to Earnings (P/E)96.3
Beta (1Y)0.64
Revenue Growth3.46%
EPS Growth51.40%
CountryUS
Employees904
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.18
Shares Outstanding235,744,570
10 Day Avg. Volume2,369,568
30 Day Avg. Volume2,649,245
Financial Highlights & Ratios
PEG Ratio1.77
Price to Book (P/B)1.18
Price to Sales (P/S)6.22
P/FCF Ratio27.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.17Price Target Upside15.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.13
Revenue Forecast (FY)$673.22M
Independence Realty Business Overview & Revenue Model
Company Description
Independence Realty Trust (IRT), publicly traded as NYSE: IRT, operates as a real estate investment trust specializing in owning and managing multifamily apartment communities. Their portfolio is concentrated in non-gateway U.S. markets such as At...
How the Company Makes Money
IRT primarily makes money by collecting rental income from residents at its multifamily apartment communities. Its core revenue stream is apartment rents, supplemented by other property-level income such as fees and charges associated with tenancy...
Independence Realty Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational momentum: improving leasing spreads, rising asking rents, materially lower concession usage, a successful early Wi‑Fi rollout, renovation program execution and an upgrade/affirmation of credit metrics. Offsetting negatives include slower lease-up at a development asset, certain markets still requiring concession normalization, elevated bad debt relative to pre‑COVID levels, and higher interest expense that tempers near‑term FFO upside. Overall, the positives—broad portfolio recovery, upgraded same‑store NOI guidance, new recurring revenue (Wi‑Fi), and demonstrated renovation ROI—outweigh the challenges.Positive Updates
Sequential Improvement in New Lease Rates
New lease rate momentum: 120 basis point sequential improvement in new lease rates during Q2 with further improvement in July; with ~65% of August new lease activity completed, like-kind new lease spreads are slightly positive.
Negative Updates
Localized Negative New Lease Spreads Persisted in Q2
Several markets still showed negative new lease trade-outs in Q2: Sunbelt -3.8% (improved in July), West -3.2% (improved to +20 bps in July), and Atlanta -3.4% in Q2 (improved to +2% in July). Some markets remain on a recovery trajectory.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Improvement in New Lease Rates
New lease rate momentum: 120 basis point sequential improvement in new lease rates during Q2 with further improvement in July; with ~65% of August new lease activity completed, like-kind new lease spreads are slightly positive.
Read all positive updates
Company Guidance
IRT maintained its core FFO per share guidance midpoint of $1.14 while raising the same-store NOI midpoint by 70 basis points to 1.5% (about $2.5M of incremental NOI), affirmed full-year same-store revenue growth of 1.7% (implying roughly 2.1% in the second half), and lowered the operating expense growth midpoint to 2% (140 bps below the prior 3.4% midpoint); of the roughly $10M of same-store revenue growth for the year, $8.7M is already recorded, $5.5M is expected from the Wi‑Fi rollout in H2 (≈$3M of NOI) leaving ~$1.3M to be driven by second‑half lease activity (50% of H2 leases already signed at blended spreads of 2.8%, requiring the remaining 50% to average ≥1.6%), and management said 87% of full‑year revenue growth is achieved or contracted; they also expect to absorb a $2M increase in interest expense (and assume a 25 bp SOFR hike in September), a $2M reduction in non‑same‑store NOI, and to finish the year with net debt/EBITDA in the mid‑5s after the expected Stonebridge sale.Independence Realty Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 666.83M | 657.70M | 640.03M | 660.98M | 628.52M | 250.25M |
| Gross Profit | 207.71M | -98.05M | 374.52M | 389.57M | 372.22M | 147.46M |
| EBITDA | 381.70M | 379.95M | 337.03M | 291.08M | 460.46M | 158.84M |
| Net Income | 43.51M | 56.56M | 39.29M | -17.23M | 117.25M | 44.59M |
Balance Sheet | ||||||
| Total Assets | 6.09B | 6.02B | 6.06B | 6.28B | 6.53B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 22.51M | 47.62M | 21.23M | 22.85M | 16.08M | 35.97M |
| Total Debt | 2.44M | 2.28B | 2.33B | 2.55B | 2.63B | 2.71B |
| Total Liabilities | 2.60B | 2.43B | 2.48B | 2.71B | 2.79B | 2.86B |
| Stockholders Equity | 3.36B | 3.46B | 3.44B | 3.43B | 3.60B | 3.48B |
Cash Flow | ||||||
| Free Cash Flow | 173.88M | 146.52M | 84.69M | 115.54M | 103.80M | 9.28M |
| Operating Cash Flow | 331.09M | 282.15M | 259.75M | 262.17M | 249.54M | 52.26M |
| Investing Cash Flow | -287.49M | -142.91M | -20.61M | -1.71M | -135.77M | -216.12M |
| Financing Cash Flow | -43.78M | -135.07M | -246.43M | -253.74M | -135.43M | 215.92M |
Independence Realty Technical Analysis
Positive
16.61
Price Trends
16.58
Positive
16.11
Positive
16.18
Positive
Market Momentum
0.13
Negative
60.84
Neutral
77.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRT, the sentiment is Positive. The current price of 16.61 is below the 20-day moving average (MA) of 16.71, above the 50-day MA of 16.58, and above the 200-day MA of 16.18, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.84 is Neutral, neither overbought nor oversold. The STOCH value of 77.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.47B | 10.10 | 8.13% | 10.55% | 761.80% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $4.17B | 96.32 | 1.55% | 4.15% | 3.46% | 51.40% | |
59 Neutral | $1.00B | 43.96 | 3.03% | 5.53% | 30.53% | ― | |
51 Neutral | $382.66M | 0.67 | 103.77% | 188.64% | -16.20% | 99.72% | |
47 Neutral | $654.91M | -19.49 | -11.75% | 7.98% | -0.46% | 32.70% |
* Real Estate Sector Average
IRT
Independence Realty
16.73
0.33
2.01%
AIV
Apartment Investment & Management
2.62
-0.34
-11.40%
CSR
Centerspace
55.15
4.18
8.21%
NXRT
NexPoint Residential
25.09
-3.55
-12.39%
MRP
Millrose Properties Inc Class A
28.80
0.64
2.25%
Independence Realty Corporate Events
Business Operations and StrategyFinancial Disclosures
Independence Realty Trust Reports Mixed Q2 2026 Results
Positive
Aug 3, 2026
On August 3, 2026, Independence Realty Trust reported second-quarter 2026 results showing net income available to common shareholders of $3.4 million and diluted EPS of $0.01, down from $0.03 a year earlier, while core funds from operations per sh...
Business Operations and StrategyRegulatory Filings and Compliance
Independence Realty Resets Capital Access Framework, Ends ATM
Neutral
Jun 12, 2026
On June 12, 2026, Independence Realty Trust, Inc. and its operating partnership filed a new automatic shelf registration statement with the U.S. Securities and Exchange Commission to replace an existing shelf that was set to expire on June 14, 202...
Business Operations and StrategyRegulatory Filings and Compliance
Independence Realty Unveils New Investor Presentation Materials
Neutral
Jun 1, 2026
Independence Realty Trust, Inc. disclosed that it may use a newly prepared slide presentation in various investor presentations beginning June 1, 2026. The company emphasized that the materials are being furnished rather than filed under U.S. secu...
Executive/Board ChangesShareholder Meetings
Independence Realty Shareholders Approve Governance and Pay Measures
Positive
May 13, 2026
On May 13, 2026, Independence Realty Trust, Inc. held its 2026 Annual Meeting of Stockholders, at which investors elected nine directors to the board for terms expiring at the 2027 annual meeting and ratified KPMG LLP as the company’s indepe...
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.