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Independence Realty (IRT)
NYSE:IRT
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Independence Realty
(NYSE:IRT)
Rating:58Neutral
Price Target:
$18.00
▲(1.64% Upside)
Positive Factors
Revenue Growth
Strong revenue growth indicates robust expansion and effective market positioning, enhancing long-term business sustainability and competitiveness.
Operational Efficiency
Reduction in operating expenses reflects improved operational efficiency, which can enhance profitability and support sustainable growth.
Strategic Acquisitions
Strategic acquisitions expand the property portfolio, potentially increasing revenue streams and market presence, supporting long-term growth.
Negative Factors
Profitability Challenges
Declining net profit margins suggest challenges in maintaining profitability, which may impact financial health and shareholder returns.
Cash Flow Generation
Negative free cash flow growth indicates potential risks in sustaining cash generation, which could affect financial flexibility and investment capacity.
Supply Pressures
Supply pressures in key markets can limit pricing power and occupancy rates, potentially impacting revenue growth and market competitiveness.
Independence Realty (IRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.17B
Dividend Yield3.67%
Average Volume (3M)2.68M
Price to Earnings (P/E)144.0
Beta (1Y)0.89
Revenue Growth-1.54%
EPS GrowthN/A
CountryUS
Employees917
SectorReal Estate
Sector Strength57
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.03
Shares Outstanding233,817,110
10 Day Avg. Volume2,406,732
30 Day Avg. Volume2,684,430
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)1.30
Price to Sales (P/S)6.97
P/FCF Ratio52.66
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue10.06
Enterprise Value/Gross Profit17.09
Enterprise Value/Ebitda19.22
Forecast
1Y Price Target
$20.71Price Target Upside16.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Independence Realty Business Overview & Revenue Model
Company DescriptionIndependence 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 MoneyIndependence Realty generates revenue primarily through rental income from its multifamily residential properties. As a REIT, it is required to distribute at least 90% of its taxable income to shareholders in the form of dividends, which incentivizes the company to maintain high occupancy rates and optimize property management. Additionally, IRT may earn revenue from property management fees, leasing commissions, and ancillary services offered to tenants. Significant partnerships with local developers and property management firms also contribute to its earnings, allowing IRT to expand its portfolio and enhance operational efficiencies.
Independence Realty Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of the company's performance. While there were notable achievements in terms of core FFO growth, successful renovations, and strategic acquisitions, the company faced challenges with rent growth, market conditions, and supply pressures. The revised outlook reflects these challenges, but operational efficiencies and investment strategies provide a positive long-term outlook.Q2-2025 Updates
Positive Updates
Core FFO Per Share Increase
Core FFO per share was $0.28 in the second quarter of 2025, up from $0.27 per share in Q1 of this year.
Same-Store NOI Growth
Same-store NOI grew 2% in the quarter, driven by a 1% increase in same-store revenue and a 60 basis point decrease in operating expenses over the prior year.
Successful Value-Add Renovations
Completed 454 value-add renovations during the quarter and a total of 729 completions for the first 6 months of the year, achieving a weighted average return on investment of 16.2%.
Operating Expense Reduction
Same-store operating expenses decreased 60 basis points over the prior year quarter, driven by lower repair and maintenance costs, real estate taxes, and a reduction in insurance premiums.
Acquisition and Investment Strategy
Under contract to acquire 2 communities in Orlando for an aggregate purchase price of $155 million, with a strong acquisition pipeline and $315 million of acquisitions planned before year-end.
Negative Updates
Blended Rent Growth Below Expectations
Blended rent growth in the quarter lagged expectations due to market conditions that were softer than anticipated, with supply pressures and macroeconomic uncertainties affecting market rents.
Negative New Lease Trade-Outs
New lease trade-outs were down 3.1% in the second quarter, with supply-heavy markets like Atlanta, Dallas, Denver, Raleigh, and Charlotte contributing heavily to these negative trade-outs.
Revised Revenue Growth Outlook
Updated guidance assumes full year same-store revenue growth of between 1.5% to 1.9%, which represents a 90 basis point reduction at the midpoint due to lower new lease growth.
Supply Pressures in Key Markets
Lingering supply pressures in markets like Dallas and Denver, with increased concessions and rent reductions affecting pricing power and occupancy.
Company Guidance
During the Independence Realty Trust Q2 2025 Earnings Conference Call, the company provided detailed guidance and updates on its financial performance and strategic initiatives. Core FFO per share increased to $0.28 in Q2 from $0.27 in Q1. Same-store NOI grew by 2% due to a 1% increase in same-store revenue and a 60 basis point decrease in operating expenses compared to the previous year. The occupancy rate improved by 10 basis points, while average effective monthly rents increased by 90 basis points. Additionally, operating expenses saw a 3% decline in noncontrollable expenses. The company revised its 2025 guidance, with expected full-year same-store revenue growth adjusted to between 1.5% to 1.9% and a marginal increase in NOI growth to 2.1%. The company expects to complete $315 million in acquisitions by the end of the year, including two communities in Orlando for $155 million. The updated outlook also reflects a reduction in new lease growth expectations but anticipates strong retention and renewal rates to drive performance.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.72
Positive
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.65
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 644.53M | 640.03M | 660.98M | 628.52M | 250.25M | 211.91M |
| Gross Profit | 379.30M | 374.52M | 167.37M | 372.22M | 147.46M | 120.43M |
| EBITDA | 337.20M | 350.28M | 291.08M | 345.35M | 220.88M | 105.21M |
| Net Income | 27.76M | 39.29M | -17.23M | 33.70M | 8.19M | -21.59M |
Balance Sheet | ||||||
| Total Assets | 5.96B | 6.06B | 6.28B | 6.53B | 6.51B | 1.73B |
| Cash, Cash Equivalents and Short-Term Investments | 42.53M | 21.23M | 22.85M | 16.08M | 35.97M | 8.75M |
| Total Debt | 2.25B | 2.33B | 2.43B | 4.60B | 2.71B | 945.69M |
| Total Liabilities | 2.41B | 2.48B | 2.71B | 2.79B | 2.86B | 1.02B |
| Stockholders Equity | 3.42B | 3.44B | 3.43B | 3.60B | 3.48B | 708.06M |
Cash Flow | ||||||
| Free Cash Flow | 116.89M | 84.69M | 115.54M | 165.56M | 9.28M | 37.56M |
| Operating Cash Flow | 275.29M | 259.75M | 262.17M | 249.54M | 52.26M | 74.96M |
| Investing Cash Flow | -293.50M | -20.61M | -1.71M | -135.77M | -216.12M | -124.54M |
| Financing Cash Flow | 13.34M | -246.43M | -253.74M | -135.43M | 215.92M | 48.76M |
Independence Realty Technical Analysis
Neutral
17.71
Price Trends
17.43
Positive
17.95
Negative
18.92
Negative
Market Momentum
0.10
Positive
52.06
Neutral
37.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRT, the sentiment is Neutral. The current price of 17.71 is above the 20-day moving average (MA) of 17.60, above the 50-day MA of 17.43, and below the 200-day MA of 18.92, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 37.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IRT.
Independence Realty Risk Analysis
Independence Realty disclosed 91 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
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.49B | ― | -1.91% | 1.94% | 0.26% | 77.82% | |
62 Neutral | $1.05B | ― | -3.35% | 5.13% | -0.63% | -123.59% | |
58 Neutral | $4.17B | 143.99 | 0.81% | 3.67% | -1.54% | ― | |
55 Neutral | $873.53M | 866.19 | -11.85% | 5.81% | -6.02% | -156.44% | |
53 Neutral | $1.28B | 3.13 | -6.08% | 5.51% | -8.21% | -81.31% | |
50 Neutral | $1.08B | ― | -38.53% | 7.91% | 7.07% | 69.54% | |
| ― | $5.38B | 41.13 | 3.07% | ― | ― |
* Real Estate Sector Average
Performance Comparison
IRT
Independence Realty
17.71
-2.56
-12.63%
AIV
Apartment Investment & Management
7.59
-1.01
-11.74%
VRE
Veris Residential
16.14
-1.51
-8.56%
CSR
Centerspace
59.22
-12.84
-17.82%
NXRT
NexPoint Residential
34.30
-9.82
-22.26%
MRP
Millrose Properties Inc Class A
34.84
12.73
57.58%
Independence Realty Corporate Events
Other
Independence Realty Releases New Investor Presentation
Neutral
Sep 10, 2025
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.
The most recent analyst rating on (IRT) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.
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.