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Independence Realty Trust (IRT)
:IRT

Independence Realty (IRT) AI Stock Analysis

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Independence Realty

(NYSE:IRT)

Rating:64Neutral
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 (IRT) vs. SPDR S&P 500 ETF (SPY)

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 MoneyIRT 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -8.47%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Independence Realty Trust. While the company reported strong same-store NOI growth and successful asset transactions, challenges such as flat Core FFO per share and negative new lease rates indicate areas of concern. Supply pressures in certain markets also pose a risk. However, the strong acquisition pipeline and improved financial liquidity provide a positive counterbalance.
Q1-2025 Updates
Positive Updates
Solid Same-Store NOI Growth
Independence Realty Trust delivered 2.7% same-store NOI growth driven by a 100-basis-point increase in average occupancy and an increase in average effective rent year-over-year.
Successful Asset Transactions
The company sold its final asset in Birmingham, Alabama for $111 million, completing its exit from that market, and expanded in Indianapolis by purchasing a 280-unit community for $59.5 million.
Strong Acquisition Pipeline
IRT is under contract on two additional communities with a combined purchase price of approximately $155 million, with expected economic cap rates in the high 5s during year one.
Improved Financial Liquidity
IRT has nearly $750 million of liquidity to fund accretive investments and entered into a new $100 million SOFR swap, resulting in 100% of its debt being fixed and/or hedged.
Negative Updates
Flat Core FFO Per Share
Core FFO per share of $0.27 in the first quarter of 2025 was flat compared to the prior year period.
Negative New Lease Rates
New lease rates were down 4.6%, with the blended rental rate growth only up 10 basis points in Q1.
Supply Pressures in Certain Markets
Charlotte and Colorado are expected to continue experiencing supply pressures throughout 2025, impacting performance.
Company Guidance
In the first quarter of 2025, Independence Realty Trust (IRT) reported a 2.7% growth in same-store net operating income (NOI), driven by a 100-basis-point increase in average occupancy and a rise in average effective rents compared to the first quarter of the previous year. The company achieved a core funds from operations (FFO) per share of $0.27, flat year-over-year, despite ongoing portfolio optimization efforts. IRT successfully completed 275 value-add unit renovations, yielding an average return on investment (ROI) of 16.2%, and plans to renovate between 2,500 and 3,000 units by year-end. The company exited the Birmingham market with a $111 million asset sale and expanded in Indianapolis with a $59.5 million acquisition at a 5.6% economic cap rate. Additionally, IRT initiated a joint venture in Charleston, South Carolina, to develop 324 units. The company anticipates positive net absorption of 8.5% in its submarkets in 2025, bolstered by a decrease in new apartment deliveries, strong population growth, and favorable homeownership affordability factors, while maintaining a stable resident rent-to-income ratio of approximately 21%.

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
72
Positive
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
65
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue640.74M640.03M660.98M628.52M250.25M211.91M
Gross Profit321.49M374.52M167.37M372.22M147.46M120.43M
EBITDA334.07M350.28M291.08M345.35M220.88M105.21M
Net Income30.07M39.29M-17.23M33.70M8.19M-21.59M
Balance Sheet
Total Assets5.98B6.06B6.28B6.53B6.51B1.73B
Cash, Cash Equivalents and Short-Term Investments49.14M21.23M22.85M16.08M35.97M8.75M
Total Debt2.26B2.33B2.43B4.60B2.71B945.69M
Total Liabilities2.40B2.48B2.71B2.79B2.86B1.02B
Stockholders Equity3.46B3.44B3.43B3.60B3.48B708.06M
Cash Flow
Free Cash Flow130.99M84.69M115.54M165.56M9.28M37.56M
Operating Cash Flow276.06M259.75M262.17M249.54M52.26M74.96M
Investing Cash Flow-265.57M-20.61M-1.71M-135.77M-216.12M-124.54M
Financing Cash Flow-4.06M-246.43M-253.74M-135.43M215.92M48.76M

Independence Realty Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.61
Price Trends
50DMA
18.39
Negative
100DMA
19.22
Negative
200DMA
19.43
Negative
Market Momentum
MACD
-0.22
Negative
RSI
42.81
Neutral
STOCH
63.35
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 Risk Analysis

Independence Realty disclosed 75 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
UMUMH
69
Neutral
$1.44B153.643.45%5.19%8.01%
CSCSR
66
Neutral
$1.07B-1.55%5.09%-1.81%-33.33%
BRBRT
64
Neutral
$298.29M-4.28%6.34%2.39%-407.57%
IRIRT
64
Neutral
$4.22B133.130.87%3.86%-2.94%
63
Neutral
$6.93B18.26-1.91%6.91%4.65%-25.39%
55
Neutral
$851.75M866.19-7.19%6.08%-7.44%-143.64%
AIAIV
48
Neutral
$1.22B-48.27%6.94%9.28%34.42%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRT
Independence Realty
17.61
-0.11
-0.62%
AIV
Apartment Investment & Management
8.62
0.86
11.08%
UMH
Umh
17.04
1.49
9.58%
CSR
Centerspace
60.23
-5.35
-8.16%
BRT
BRT Apartments
15.90
-0.22
-1.36%
NXRT
NexPoint Residential
33.76
-2.36
-6.53%

Independence Realty Corporate Events

Other
Independence Realty Releases New Investor Presentation
Neutral
Jun 2, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Independence Realty Holds Annual Stockholders Meeting
Neutral
May 14, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Independence Realty Releases Investor Presentation May 2025
Neutral
May 5, 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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Independence Realty Reports Q1 2025 Financial Results
Neutral
Apr 30, 2025

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.

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.Date of analysis: Jun 05, 2025