Independence Realty (IRT) AI Stock Analysis

• Market Cap: $4.16B
• Dividend Yield: 3.88%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 178.0
• Beta (1Y): 0.62
• Revenue Growth: 0.84%
• EPS Growth: N/A
• Country: US
• Employees: 917
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.03
• Shares Outstanding: 239,112,980
• 10 Day Avg. Volume: 2,750,643
• 30 Day Avg. Volume: 2,553,119
• PEG Ratio: -0.35
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 52.66
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 9.54
• Enterprise Value/Gross Profit: 16.15
• Enterprise Value/Ebitda: 17.40
• 1Y Price Target: $20.44
• Price Target Upside: 19.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $17.50 ▲(1.92% Upside)

Independence Realty's overall stock score is driven by stable financial performance and positive earnings call highlights. However, high valuation concerns and mixed technical indicators weigh on the score. The company's ability to manage market challenges and improve cash flow will be crucial for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth from higher rents and improved bad debt management indicates strong demand and effective operational strategies.

Operational Efficiency

Maintaining stable EBIT and EBITDA margins suggests effective cost management and operational efficiency, supporting long-term profitability.

Market Expansion

Expanding in Orlando strengthens market presence and potential revenue streams, aligning with growth strategy in high-demand areas.

Negative Factors

Declining Profit Margins

Decreasing profit margins could indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Cash Flow Challenges

Declining free cash flow growth may limit the company's ability to invest in new opportunities and manage debt, affecting financial flexibility.

Market Supply Pressures

High supply in key markets like Denver can lead to occupancy challenges and pricing pressures, impacting revenue and growth potential.

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 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 management fees, which are charged for overseeing the operations of their facilities, including maintenance, leasing, and tenant relations. The company may also earn income from ancillary services such as leasing commissions and amenity fees. Significant partnerships with local property management firms and real estate brokers enhance IRT's market reach and operational efficiency, contributing to its overall earnings. Furthermore, the company may engage in strategic acquisitions of additional properties, increasing its rental income potential and overall asset value.

Independence Realty Financial Statement Overview

Summary

Independence Realty demonstrates strong revenue growth and stable gross margins, indicating effective revenue management. However, declining net profit margins and return on equity suggest challenges in maintaining profitability. The balance sheet shows improved leverage ratios, but cash flow generation has weakened, posing risks to financial flexibility.

Income Statement

Independence Realty shows a strong revenue growth trajectory, particularly in the TTM period with a 59.1% increase, indicating robust expansion. However, the net profit margin has decreased to 4.31% in the TTM, down from 6.14% in the previous year, suggesting challenges in maintaining profitability. The gross profit margin remains stable at around 58.8%, reflecting consistent cost management. The EBIT and EBITDA margins have slightly decreased, indicating potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.66 in the TTM from 0.68 in the previous year, indicating better leverage management. However, the return on equity has decreased to 0.81% from 1.14%, reflecting lower profitability relative to shareholder equity. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the balance sheet shows moderate stability with room for improvement in profitability.

Cash Flow

The free cash flow growth rate is negative at -10.77% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is strong at 1.79, suggesting good cash conversion efficiency. However, the free cash flow to net income ratio is moderate at 0.42, indicating some challenges in translating earnings into free cash flow. Overall, the cash flow statement reflects adequate cash management but highlights potential risks in sustaining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	651.88M	640.03M	660.98M	628.52M	250.25M	211.91M
Gross Profit	384.98M	374.52M	389.57M	372.22M	147.46M	120.43M
EBITDA	357.40M	350.28M	291.08M	460.46M	158.84M	112.05M
Net Income	22.29M	39.29M	-17.23M	117.25M	44.59M	14.77M
Balance Sheet
Total Assets	6.09B	6.06B	6.28B	6.53B	6.51B	1.73B
Cash, Cash Equivalents and Short-Term Investments	23.29M	21.23M	22.85M	16.08M	35.97M	8.75M
Total Debt	2.30B	2.33B	2.55B	2.63B	2.71B	978.53M
Total Liabilities	2.48B	2.48B	2.71B	2.79B	2.86B	1.02B
Stockholders Equity	3.49B	3.44B	3.43B	3.60B	3.48B	708.06M
Cash Flow
Free Cash Flow	84.74M	84.69M	115.54M	103.80M	9.28M	37.56M
Operating Cash Flow	285.39M	259.75M	262.17M	249.54M	52.26M	74.96M
Investing Cash Flow	-344.52M	-20.61M	-1.71M	-135.77M	-216.12M	-124.54M
Financing Cash Flow	61.82M	-246.43M	-253.74M	-135.43M	215.92M	48.76M

Independence Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 17.17 is above the 20-day moving average (MA) of 16.89, above the 50-day MA of 16.47, and below the 200-day MA of 17.65, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 80.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRT.

Independence Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VRE	63 Neutral	$1.36B	22.51	5.33%	2.16%	3.37%	―
IRT	60 Neutral	$4.16B	177.99	0.65%	3.88%	0.84%	―
CSR	59 Neutral	$1.14B	48.66	4.30%	4.75%	36.82%	―
AIV	51 Neutral	$826.99M	-5.71	171.00%	7.51%	-4.63%	42.39%
NXRT	51 Neutral	$717.92M	-15.13	-12.63%	7.10%	-4.46%	-206.19%

Independence Realty Corporate Events

Independence Realty EVP Michele Weisbaum Announces Retirement

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 the company, and she plans to ensure a smooth transition of her responsibilities.

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 November 10, 2025. This information is provided as 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 Q3 2025 Financial Results

In its third quarter 2025 financial results, Independence Realty Trust reported an EPS of $0.03 and a CFFO per share of $0.29, both aligning with expectations. The company achieved a 2.7% growth in same-store net operating income and completed 788 unit renovations with a 14.8% ROI. IRT also acquired two communities in Orlando for $155 million, reflecting its strategy to recycle capital into higher growth investments. The company maintained a strong balance sheet with conservative leverage and reaffirmed its full-year 2025 guidance midpoints.

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 September 10, 2025. This information is provided for informational purposes and is not considered filed under the Securities Exchange Act of 1934.