Cyan Mallard Creek Charlotte, NC INVESTOR PRESENTATION June 2025 Table of Contents • Overview • Sector-Leading NOI Growth • Accretive Value-Add Renovations • Accretive Acquisitions • Demand Outpacing Supply • Housing Affordability Factor • IRT's Value Proposition for Renters • Class B Apartment Demand Inelasticity • Strong, Flexible Balance Sheet • Our Markets • Definitions & Non-GAAP Financial Measure Reconciliations • Forward Looking Statements INVESTMENT HIGHLIGHTS Our Simple Business Model of Operating ...

Property Operations - As of March 31, 2025, the company owned and operated 113 multifamily apartment properties with a total of 33,175 units[108] - The average occupancy rate across all properties was 94.9%, with the highest occupancy in San Antonio, TX at 97.7%[111] - The average effective monthly rent per unit in the same-store portfolio increased by 0.9% to $1,568, while average occupancy rose to 95.4%[132] - Same-store portfolio Net Operating Income (NOI) increased by 2.7% to $95.6 million for the three months ended March 31, 2025, compared to $93.1 million in the same period of 2024[149] - Average occupancy improved to 95.4% for the three months ended March 31, 2025, up from 94.4% in the same period of 2024[151] Acquisitions and Sales - The company sold a multifamily apartment community in Birmingham, AL for a gross sales price of $111.0 million on February 14, 2025[113] - On February 27, 2025, the company acquired Autumn Breeze in Indianapolis, IN for $59.5 million, increasing its footprint in the city from 1,979 to 2,259 units[114] - The company is under contract to acquire two additional properties in Orlando, FL and Colorado Springs, CO for approximately $154.8 million[115] - The company expects to close on the acquisitions of the two properties in late Q2 or early Q3 2025, subject to pricing and timing uncertainties[115] - The company sold one multi-family property resulting in a gain on sale of $1.5 million during the three months ended March 31, 2025[141] Financial Performance - For the three months ended March 31, 2025, rental and other property revenue increased to $160.9 million, a 0.4% increase from $160.3 million in the same period of 2024[134] - Net income available to common shares for the three months ended March 31, 2025, was $8.354 million, a decrease of 52.5% compared to $17.577 million in the same period of 2024[132] - The company reported a net income of $8.5 million for the three months ended March 31, 2025, a decrease of 52.5% from $18.0 million in the same period of 2024[145] - Funds from Operations (FFO) for the three months ended March 31, 2025, was $67.4 million, an increase of 8.2% from $62.3 million in the same period of 2024[145] Expenses and Cash Flow - Property operating expenses decreased to $59.3 million, down from $60.0 million in the prior year, primarily due to a decrease in non same-store expenses[135] - Depreciation and amortization expense increased by $5.0 million to $58.7 million for the three months ended March 31, 2025, compared to $53.7 million for the same period in 2024, primarily due to capital expenditures and higher intangible asset amortization[137] - Interest expense decreased by $1.3 million to $19.3 million for the three months ended March 31, 2025, from $20.6 million in the same period of 2024, driven by a $152 million decrease in average outstanding debt[140] - Cash flow from operating activities for the three months ended March 31, 2025, was $60.4 million, a $16.3 million increase from $44.1 million in 2024, driven by reduced real estate tax obligations and improved occupancy rates[157] Capital and Financing - The Fifth Amended and Restated Credit Agreement increased the unsecured revolver to $750 million, extending its maturity to January 8, 2029[122] - The company increased its aggregate borrowings under the credit agreement to $1.35 billion, with the option to request an increase to $2.0 billion[123] - The company completed a public offering of 11.5 million shares at a price of $18.96 per share, with proceeds from the sale expected to fund new acquisitions[124] - As of March 31, 2025, the company physically settled 2.65 million shares from the forward sale agreements, receiving proceeds of $50.1 million, all of which were used for acquisitions[126] - The company expects to settle the remaining 5.6 million shares under the forward sale agreements, potentially generating additional proceeds of $105.8 million[126] - The company entered into an ATM program allowing for the sale of shares with an aggregate offering price of up to $450 million[128] Investments - The company had investments in unconsolidated real estate entities totaling $101.6 million as of March 31, 2025, up from $92.0 million at the end of 2024[119] - The company has committed to invest $28.6 million in a joint venture for the development of a 324-unit multifamily project in Charleston, SC[117] Market and Risk Assessment - There were no material changes to contractual obligations since the 2024 Annual Report on Form 10-K[160] - No off-balance sheet arrangements were reported that could materially affect the company's financial condition during Q1 2025[161] - There were no material changes in critical accounting estimates and policies since the 2024 Annual Report on Form 10-K[162] - The company reported no significant changes in market risks during the three months ended March 31, 2025, compared to the previous disclosures[164]

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $0.27 for Q1 2025, flat compared to the prior year, reflecting the impact of portfolio optimization and deleveraging strategy completed last year [14] - Same store NOI grew by 2.7%, driven by a 2.3% increase in same store revenue and a 1.6% increase in operating expenses year-over-year [14][19] - The average occupancy increased by 100 basis points year-over-year, contributing to the same store NOI growth [6][14] Business Line Data and Key Metrics Changes - The company completed value-add renovations on 275 units with a weighted average return on investment of 16.2% [6] - The company has 28 communities with over 4,600 units in the ongoing value-add program, expecting to complete between 505,000 units this year [6] - The company sold its final asset in Birmingham, Alabama for $111 million, completing its exit from that market [7] Market Data and Key Metrics Changes - In 2020, approximately 79,000 new apartment units were delivered across the company's submarkets, representing 6.1% of existing supply [10] - The company expects only 32,000 new deliveries in 2025 and 24,000 units in 2026, representing a 60% annual decrease in 2025 and an additional 24% decrease in 2026 [10] - The company forecasts positive net absorption of 8.5% in its submarkets for 2025, significantly higher than the national average of 1.5% [11][65] Company Strategy and Development Direction - The company is focused on a long-term investment strategy, capitalizing on strong population and employment growth in its communities [5][12] - The company aims to maintain pricing power and expects ongoing rental rate gains without sacrificing occupancy [12][19] - The acquisition pipeline remains strong, with ample liquidity to fund accretive investments [8][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but remains confident in supply and demand fundamentals driving operations [12][19] - The company expects to enter 2026 with solid earnings momentum and growth opportunities [20] - Management noted that demand for Class B communities has proven resilient, with stable occupancy rates and positive blended rent growth [11][52] Other Important Information - The company ended the quarter with a net debt to adjusted EBITDA ratio of 6.3 times, with plans to achieve a mid-five ratio by year-end 2025 [17] - The company has nearly $750 million of liquidity available for investments [18] Q&A Session Summary Question: Can you walk through the leasing spreads for the first quarter? - New leases were down 4.6%, while renewals were up 4.8%. The company did not experience the same level of decline in rental rates as some peers due to its Class B portfolio [23][24] Question: Have you seen any evidence of stress from tariffs or macro uncertainty? - The company has not felt significant effects from tariffs or deportations and has seen a decrease in bad debt by 50 basis points year-over-year [25][27] Question: Can you speak to trends in leasing traffic and conversion? - Demand is up 25% compared to the same time last year, with conversion rates remaining stable [31] Question: What are your expectations for new lease rates and renewals? - The company anticipates positive trends in blended rental rates, with improvements noted month-to-month [36][38] Question: How are you thinking about the revenue guidance for the full year? - The company expects continued strong demand and significant declines in new supply, maintaining its revenue guidance [19][65] Question: Can you discuss the impact of insurance renewals on expenses? - The company expects a net decrease in insurance premiums despite initially assuming a 10% increase [72][75] Question: Are there any other markets you expect to exit by year-end? - Currently, there are no expected changes to the company's market dispositions [81] Question: How do you expect the performance between Class A and Class B to trend? - Class B properties are showing better rental rate growth compared to Class A properties, which are facing more competition from new supply [88][89]

Financial Data and Key Metrics Changes - Core FFO per share for Q1 2025 was $0.27, flat compared to the prior year, reflecting the impact of the final stages of the portfolio optimization and deleveraging strategy completed last year [15][19] - Same store NOI grew by 2.7%, driven by a 2.3% increase in same store revenue and a 1.6% increase in operating expenses compared to the prior year [15][19] - Average occupancy increased by 100 basis points year over year, contributing to the same store NOI growth [8][15] Business Line Data and Key Metrics Changes - Value add renovations completed during the quarter included 275 units with a weighted average return on investment of 16.2% [8] - The company has 28 communities with over 4,600 units in the ongoing value add program, expecting to complete between 505,000 units this year [8] - The company sold its final asset in Birmingham, Alabama for $111 million and acquired a 280-unit community in Indianapolis for $59.5 million at a 5.6% economic cap rate [9][15] Market Data and Key Metrics Changes - In 2025, new apartment deliveries are expected to decrease to 32,000 units, representing only 2% of existing supply, down from 6.1% in 2020 [11][64] - The company anticipates positive net absorption of 8.5% in its submarkets, significantly higher than the national average of 1.5% [12][65] - Homeownership costs in the top 10 markets are 94% higher than the company's average monthly rent, indicating strong demand for rental properties [12] Company Strategy and Development Direction - The company is focused on executing its long-term investment strategy, with a strong acquisition pipeline and ample liquidity for accretive investments [10][18] - The company expects to continue benefiting from strong demand and significant declines in new supply, leading to ongoing rental rate gains without sacrificing occupancy [13][19] - The company is cautious about macroeconomic uncertainties but remains confident in its market fundamentals [13][19] Management's Comments on Operating Environment and Future Outlook - Management believes that the fundamentals of supply and demand in their markets will continue to dominate operations, with expectations for improving rental rates and occupancy [13][19] - The company is optimistic about the trajectory of leasing spreads improving in the second half of the year due to waning supply pressures [24][30] - Management noted that they have not yet seen significant stress from macroeconomic factors such as tariffs or deportations [25][26] Other Important Information - The company ended the quarter with a net debt to adjusted EBITDA ratio of 6.3 times, with plans to achieve a mid-five ratio by year-end 2025 [18] - The company has nearly $750 million in liquidity available for investments [18] - The company is not expecting to exit any additional markets beyond Birmingham at this time [81] Q&A Session Summary Question: Can you walk through the leasing spreads for the first quarter? - New leases were down 4.6%, while renewals were up 4.8%. The company did not experience the same level of decline in rental rates as some peers due to its predominantly Class B portfolio [22][23] Question: Have you seen any evidence of stress from tariffs or macro uncertainty? - The company has not felt significant effects from tariffs or deportations and has seen a reduction in bad debt [25][26] Question: Can you speak to trends in leasing traffic and conversion? - Demand is up 25% compared to the same period last year, with conversion rates remaining stable [30] Question: What are your expectations for new lease rates and renewals? - The company anticipates positive trends in blended rental rates and expects to see upward momentum in leasing rates as the year progresses [34][35] Question: How are you thinking about the full-year revenue guidance? - The company expects job growth and population growth to remain steady, with a significant drop in new supply contributing to revenue growth [63][64] Question: Can you discuss the impact of insurance renewals on expenses? - The company expects a net decrease in insurance premiums despite initially assuming a 10% increase [73][75]

分组1 - Independence Realty Trust (IRT) reported quarterly funds from operations (FFO) of $0.27 per share, missing the Zacks Consensus Estimate of $0.28 per share, and showing no change from the previous year's FFO of $0.27 per share [1] - The company posted revenues of $160.91 million for the quarter ended March 2025, which was 1.76% below the Zacks Consensus Estimate, compared to revenues of $160.33 million a year ago [2] - Over the last four quarters, the company has not surpassed consensus FFO estimates and has topped consensus revenue estimates only once [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and future FFO expectations [3] - Independence Realty Trust shares have declined approximately 2.1% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The current consensus FFO estimate for the coming quarter is $0.29 on revenues of $169.4 million, and for the current fiscal year, it is $1.18 on revenues of $684.57 million [7] 分组3 - The Zacks Industry Rank for REIT and Equity Trust - Residential is currently in the bottom 42% of over 250 Zacks industries, indicating potential challenges for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Independence Realty Trust is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Financial Performance - Q1 2025 EPS was $0.04, and CFFO per share was $0.27, consistent with expectations[12]. - Net income available to common shares for Q1 2025 was $8.4 million, down from $17.6 million in Q1 2024[16]. - Core Funds from Operations (CFFO) for Q1 2025 totaled $64.2 million, compared to $61.5 million in Q1 2024[16]. - Net income available to common shares for Q1 2025 was $8,354,000, compared to a loss of $1,001,000 in Q4 2024, representing a significant turnaround[49]. - Earnings per share (diluted) increased to $0.04 in Q1 2025 from $0.00 in Q4 2024[49]. - Total revenue for Q1 2025 was $161,243,000, a slight increase from $160,534,000 in Q1 2024, representing a growth of 0.4%[56]. - Net income available to common shares for Q1 2025 was $8,354,000, down from $17,577,000 in Q1 2024, reflecting a decrease of 52.5%[56]. - Funds From Operations (FFO) for Q1 2025 was $67,364,000, compared to $62,340,000 in Q1 2024, indicating an increase of 8.1%[56]. - Core Funds From Operations (CFFO) for Q1 2025 was $64,238,000, up from $61,454,000 in Q1 2024, showing a growth of 4.5%[56]. - Earnings per share (EPS) - basic for Q1 2025 was $0.04, down from $0.08 in Q1 2024, a decline of 50%[56]. - Adjusted EBITDA for Q1 2025 was $85,748,000, an increase from $84,683,000 in Q1 2024, representing a growth of 1.3%[57]. - Interest coverage ratio for Q1 2025 was 4.4x, compared to 4.1x in Q1 2024, indicating improved coverage of interest expenses[57]. Revenue and Occupancy - Same-store portfolio NOI increased by 2.7% for Q1 2025, driven by a 100 basis point increase in occupancy to 95.4%[12][16]. - Average rental rate increased by 0.9% to $1,568 in the same-store portfolio[17]. - Same-store portfolio rental and other property revenue increased by 2.3% to $151,724,000 for the three months ended March 31, 2025, compared to $148,326,000 in the same period of 2024[61]. - Same-store portfolio NOI rose by 2.7% to $95,595,000 for the three months ended March 31, 2025, up from $93,062,000 in the prior year[61]. - The same-store portfolio NOI margin improved to 63.0% in Q1 2025, compared to 62.7% in Q1 2024[61]. - Average occupancy increased to 95.4% in Q1 2025, up from 94.4% in Q1 2024, reflecting a 1.0% improvement[61]. - Average effective monthly rent per unit rose to $1,583 in Q1 2025 from $1,572 in Q4 2024[49]. Property Management and Expenses - Total expenses for Q1 2025 were $134,105,000, an increase from $131,873,000 in Q1 2024, reflecting a rise of 1.7%[56]. - Property operating expenses for Q1 2025 were $59,263,000, a decrease from $59,971,000 in Q1 2024, showing a reduction of 1.2%[56]. - General and administrative expenses are projected to be between $55 million and $57 million for 2025[37]. - Property management expenses increased to $7,826,000 for the three months ended March 31, 2025, up from $7,379,000 in the previous quarter, marking an increase of about 6.1%[98]. - General and administrative expenses rose to $8,406,000, compared to $4,856,000 in the previous quarter, representing a significant increase of approximately 73.5%[98]. Acquisitions and Dispositions - Two additional communities under contract for acquisition in Q2 2025, totaling approximately $154.8 million[12][27]. - Sold Ridge Crossings in Birmingham, AL for $111 million, using proceeds for recent property acquisitions[22][27]. - The company acquired the Autumn Breeze property in Indianapolis, Indiana for $59,500,000, with an average rent per unit of $1,548 at acquisition[71]. - The company disposed of the Ridge Crossings property in Birmingham, Alabama for $111,000,000, realizing a gain of $1,496 per unit[71]. - The company expects to receive $24.5 million in invested capital and recognize a gain of approximately $10.3 million from the sale of Metropolis at Innsbrook, which consists of 402 units and is under contract to be sold in Q2 2025[74]. Debt and Liquidity - The company's net debt to Adjusted EBITDA ratio stood at 6.3x as of March 31, 2025, with a weighted average effective interest rate on consolidated debt of 4.3%[30]. - The company has approximately $742.9 million in liquidity, including unrestricted cash and unsettled proceeds from forward equity sale agreements[30]. - Total consolidated debt as of March 31, 2025, is $2,253,957, with a weighted average effective interest rate of 4.3%[76]. - The company has a consolidated leverage ratio of 31.4%, well below the requirement of 60%[83]. - The total capital raised by the company is $7,342,890, with an equity market capitalization of $5,088,933[76]. Renovations and Development - Completed 275 renovations in the value add program during Q1 2025, achieving an average ROI of 16.2%[12][21]. - The company completed renovations on 4,701 units, achieving an average rent premium of $243, which corresponds to an ROI of 18.8%[67]. - The Flatiron Flats development project in Denver, Colorado has a total estimated development cost of $114,000,000, with 100% of planned units delivered as of March 31, 2025[72]. - The projected stabilization date for the Flatiron Flats project is set for Q3 2026, with an occupancy rate of 5.1% as of April 28, 2025[72]. - The company plans to initiate new value-add projects in Q2 and Q3 2025 across multiple markets, including Atlanta, GA and Dallas, TX[69]. Market Performance - Common share price at the end of Q1 2025 was $21.23, up from $19.84 at the end of Q4 2024[49]. - Total market capitalization increased to $7,342,890,000 in Q1 2025 from $7,031,396,000 in Q4 2024[49]. - The overall average revenue growth across the portfolio was 3.6%[63].

Debt and Interest Rate Exposure - As of December 31, 2024, the company had $794.5 million of its $2,310.9 million total outstanding consolidated indebtedness bearing interest at variable rates, exposing it to interest rate risk[160]. - A 100-basis point increase in interest rates would result in a $1.0 million increase in annual interest expense, considering the company's current interest rate swap and collar agreements[160]. - The company expects to incur additional indebtedness in the future, with approximately $2,221.7 million in balloon payments due between 2025 and 2034[164]. - The company has $794.5 million of unsecured debt indexed to the Secured Overnight Financing Rate (SOFR), which has a limited history and potential volatility[169]. - The company may face refinancing risk if the credit environment is constrained at the time of debt maturities, potentially leading to unfavorable financing terms or asset sales[164]. - Compliance with REIT requirements may limit the company's ability to hedge risks effectively, potentially increasing exposure to interest rate changes[162]. - The company maintains interest rate swaps with a total notional amount of $500 million and interest rate collars totaling $200 million to manage interest rate risk[364]. - The company is exposed to interest rate changes primarily due to long-term debt used for liquidity and capital expenditures, which may affect the availability and cost of funds[359]. Environmental and Regulatory Risks - Environmental laws and regulations may impose significant costs on the company, affecting net income and cash available for distributions[176]. - The company may incur substantial costs for the removal or remediation of hazardous substances on its properties, impacting financial performance[177]. - Concerns regarding indoor air quality and mold may lead to costly litigation and remediation efforts, potentially impacting financial condition[183]. - Compliance with the Americans with Disabilities Act (ADA) may impose significant costs, affecting net income and operational results[184]. - The Fair Housing Amendments Act (FHAA) requires properties first occupied after March 13, 1991, to be accessible, with noncompliance potentially resulting in substantial fines and litigation costs[185]. - Legislative changes related to rent control and tenant rights could limit the ability to raise rents, adversely affecting property values and operational results[186]. REIT Compliance and Taxation - The company may need to borrow funds to meet REIT minimum distribution requirements, which could negatively impact overall financial performance[191]. - Failure to maintain REIT qualification could result in corporate taxation on income, reducing distributions to stockholders[192]. - To maintain REIT status, the company must distribute at least 90% of taxable income, potentially limiting funds available for reinvestment[198]. - Compliance with REIT requirements may hinder the ability to pursue attractive investment opportunities, affecting profit maximization[199]. - The use of taxable REIT subsidiaries (TRSs) could increase overall tax liability, impacting net income available for distribution[203]. - The operating partnership, IROP, must maintain its status as a partnership or disregarded entity for U.S. federal income tax purposes to avoid taxation as a corporation, which would reduce cash available for distributions[204]. - Distributions to foreign investors may be subject to a U.S. withholding tax of 30% unless reduced by an applicable treaty, and may be treated as ordinary income distributions[207]. - Foreign investors may be subject to FIRPTA tax upon the sale of shares if the REIT is not "domestically controlled," which requires less than 50% of the REIT's stock to be owned by non-U.S. persons over a five-year period[208]. - The company may make distributions consisting of both stock and cash, potentially leading to stockholders owing taxes exceeding the cash received[211]. - The company's Charter restricts ownership of its common stock to ensure REIT qualification, limiting any individual or entity from owning more than 9.8% of the outstanding shares[213]. - The Maryland General Corporation Law prohibits certain business combinations for five years after an interested stockholder becomes such, which may complicate acquisition efforts[215]. - The board of directors has the authority to amend the Charter without stockholder approval, which could delay or prevent changes in control that may benefit stockholders[221]. - The company is structurally subordinated to the obligations of IROP and its subsidiaries, meaning stockholder claims will be satisfied only after all liabilities are paid[222]. - The Maryland General Corporation Law limits the liability of directors, which could reduce recovery for stockholders in cases of negligence[223]. - The bylaws designate the Circuit Court for Baltimore City, Maryland as the exclusive forum for certain actions, potentially limiting stockholders' ability to pursue favorable judicial outcomes[224]. Financial Performance and Results - As of December 31, 2024, the company had $2.3 billion of outstanding indebtedness, with $1.5 billion fixed rate and $794.5 million floating rate[362]. - The fair value of the company's fixed-rate indebtedness was estimated at $1.4 billion as of December 31, 2024, down from $1.6 billion in 2023[365]. - The company reported an accumulated deficit of $454,104 thousand as of December 31, 2024, compared to $348,405 thousand in 2023[392]. - Total revenue for 2024 was $640,035,000, a decrease of 3.1% from $660,983,000 in 2023[394]. - Net income for 2024 was $40,033,000, a significant recovery from a net loss of $17,807,000 in 2023[397]. - Earnings per share (EPS) for 2024 was $0.17, compared to a loss of $0.08 per share in 2023[394]. - Total expenses for 2024 were $514,545,000, slightly up from $514,070,000 in 2023[394]. - Property operating expenses decreased to $235,588,000 in 2024 from $244,330,000 in 2023, a reduction of 3.0%[394]. - The company reported a gain of $200,000 on extinguishment of debt in 2024, compared to a loss of $124,000 in 2023[394]. - Other comprehensive income for 2024 was $548,000, recovering from a loss of $9,868,000 in 2023[397]. - Comprehensive income for 2024 was $39,843,000, compared to a loss of $26,953,000 in 2023[397]. - The company recognized impairment losses of $36,102 for the year ended December 31, 2024, compared to $69,702 in 2023[423]. - The company recognized a noncontrolling interest upon consolidation of $256 thousand, reflecting strategic acquisitions[401]. - The company issued common shares, netting $111,304 thousand in 2024, reflecting ongoing capital raising efforts[401]. - The company recognized an impairment loss of $20,928 for a 720-unit property in Birmingham, Alabama, classified as held for sale[469]. Cash Flow and Investments - Cash flows from operating activities totaled $259,753,000 in 2024, slightly down from $262,170,000 in 2023[403]. - The company acquired real estate properties for $238,560,000 in 2024, compared to no acquisitions in 2023[403]. - Proceeds from dispositions of real estate properties reached $390,884,000 in 2024, up from $230,789,000 in 2023[403]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $43,452,000, down from $50,732,000 in 2023[405]. - Cash paid for interest decreased to $80,615,000 in 2024 from $96,022,000 in 2023[405]. - The company reported a net cash used in investing activities of $20,605,000 in 2024, compared to $1,712,000 in 2023[403]. - The company had a net cash used in financing activities of $246,428,000 in 2024, slightly down from $253,743,000 in 2023[403]. Shareholder Returns and Dividends - Common dividends declared for 2023 were $0.64 per share, totaling $144,990 thousand, an increase from $0.62 per share in 2022[400]. - For the year ended December 31, 2024, 88% of dividends were characterized as capital gain distributions, compared to 74% in 2023[448]. - The company has not established a minimum dividend payment level and cannot assure future dividend payments[240]. - The company intends to maintain its qualification as a REIT by distributing at least 90% of its ordinary taxable income to stockholders[447].

Financial Data and Key Metrics Changes - Core FFO per share for 2024 was $1.16, at the high end of guidance, driven by same-store NOI growth of 3.2% [10][23] - Same-store NOI increased by 5.3% in Q4 2024, with revenue growth of 2.3% and a 3% decrease in operating expenses [24] - Average effective monthly rent increased by 1.3% for the year, with average same-store occupancy rising by 110 basis points to 95.2% [11][25] Business Line Data and Key Metrics Changes - In Q4 2024, 395 units were completed under the value-add program, achieving a weighted average return on investment of 15.1% [12] - For the full year, 1,671 renovations were completed, resulting in an average increase of $239 in monthly rent per unit on renovated comps, equating to a 15% return on investment [12] Market Data and Key Metrics Changes - Across the top ten markets, supply increased by 5.8% in 2024 but is forecasted to increase by just 1.8% and 1.3% in 2025 and 2026, respectively [19] - New supply in same-store markets increased by 6.2% in 2024, with a forecasted decrease to 2.1% in 2025 and 1.5% in 2026 [18] Company Strategy and Development Direction - The company aims to drive NOI and core FFO growth by increasing rental rates at existing properties and making strategic investments [17] - A portfolio optimization and deleveraging strategy was completed in early 2024, improving financial flexibility and enabling the company to become an investment-grade issuer [15][30] - The company plans to significantly accelerate value-add renovation volumes in 2025, targeting 2,500 to 3,000 units [36] Management's Comments on Operating Environment and Future Outlook - Management expects a steep decline in new deliveries across markets in 2025, allowing for greater pricing power without sacrificing occupancy [20] - The company anticipates strong demand due to population growth and job growth exceeding the national average, particularly in Sunbelt and Midwest markets [19] - Management expressed confidence in achieving higher rents and maintaining occupancy levels, with a focus on optimizing leasing economics [34] Other Important Information - The company reduced total debt by over $200 million in 2024, improving the net debt to adjusted EBITDA ratio to 5.9 times [28] - The company has nearly $750 million in liquidity available for strategic investments [32] Q&A Session Summary Question: What does guidance assume for new lease rate growth this year? - Guidance assumes a blended lease rate growth of 1.6% for the year, excluding benefits from value-add and other income [44] Question: Can you talk about the investment pipeline? - The company has a robust pipeline of both new construction communities and existing Class B properties, with opportunities arising from distressed assets due to higher interest rates [48] Question: Why are you increasing the value-add spend in 2025? - The company plans to increase value-add renovations due to waning supply pressure and rising rents, aiming for 2,500 to 3,000 units [55] Question: What caused the sequential increase in bad debt in Q4? - The increase in bad debt was attributed to timing and seasonality, particularly in markets like Atlanta and Memphis [58] Question: Can you provide a breakdown of the expected revenue growth for 2025? - The expected revenue growth for 2025 is 3.4% for the Midwest and 2.2% for the Sunbelt markets [79]

Independence Realty Trust (IRT) came out with quarterly funds from operations (FFO) of $0.32 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.30 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $0.29 per share when it actually produced FFO of $0.29, delivering no surprise.Over the last four quarters, the company has not been able to surpass consensus FFO estimates.I ...

Financial Performance - EPS for 2024 was $0.17, with CFFO of $0.32 for Q4 and $1.16 for the full year[12] - Net income available to common shares for 2024 was $39.3 million compared to a net loss of $17.2 million in 2023[17] - CFFO for the year ended December 31, 2024, was $266.9 million, compared to $263.9 million in 2023[17] - For the three months ended December 31, 2024, the net loss available to common shares was $(1,001) thousand, compared to a net income of $12,365 thousand in the previous quarter[55] - Total revenue for Q4 2024 was $160,963, a decrease of 3.3% compared to $167,046 in Q4 2023[62] - Net loss for Q4 2024 was $(1,100), compared to a net loss of $(41,654) in Q4 2023, showing significant improvement[62] - Net loss for 2024 was $1,100,000, a significant improvement from a loss of $41,654,000 in 2023, indicating a positive trend in financial performance[64] Revenue and NOI Growth - Same-store portfolio NOI increased by 5.3% in Q4 and 3.2% for the full year 2024[12] - The company expects 2025 same-store NOI growth of 0.8% to 3.3%[17] - Total rental and other property revenue for Q4 2024 was $160,617,000, a slight decrease from $166,730,000 in Q4 2023, indicating market challenges[65] - The company reported a 3.0% increase in total rental and other property revenue for the year ended December 31, 2024, reaching $602,584,000 compared to $585,277,000 in 2023[68] - Total revenue for the same-store portfolio increased by 2.3% to $151,326,000 in 2024 compared to $147,880,000 in 2023[70] - The total net operating income (NOI) for the same-store portfolio increased by 3.0% to $602,584,000 in 2024 from $585,277,000 in 2023[71] Property Management and Operations - Average rental rate increased by 0.8% to $1,570 in Q4 2024, with a 1.3% increase to $1,563 for the full year[18] - Average occupancy rate improved to 95.5% in Q4 2024 from 94.5% in Q4 2023, suggesting effective management of properties[68] - Same-store portfolio NOI margin increased to 66.3% in Q4 2024 from 64.5% in Q4 2023, reflecting improved cost management[68] - Total property operating expenses for the same-store portfolio decreased by 3.0% to $50,928,000 in Q4 2024 compared to $52,517,000 in Q4 2023, enhancing profitability[68] Acquisitions and Renovations - Completed 1,671 renovations in the value add program with an average ROI of 15.7%[12] - The company acquired a 300-unit multifamily apartment property in Charlotte, North Carolina for $73.5 million, increasing its footprint from 714 units to 1,014 units[29] - The company acquired a 320-unit multifamily apartment property in Orlando, Florida for $84.3 million, expanding its footprint from 297 units to 617 units[29] - Total properties renovated as of December 31, 2024, reached 26, with a weighted average rent premium of 19.9% and total renovation costs of $17,487 per unit[75] - The company completed 15 value-add projects, achieving a weighted average ROI of 20.5% and total costs of $12,098 per unit[76] Debt and Financial Flexibility - Unsecured credit facility increased from $500 million to $750 million, enhancing balance sheet strength[12] - The company received a 'BBB' issuer credit rating and stable outlook from S&P Global Ratings on October 30, 2024[32] - The company expanded its unsecured credit facility from $500 million to $750 million, extending the maturity date to January 2029, enhancing financial flexibility[33] - Total consolidated debt as of December 31, 2024, is $2,333,683,000 with a weighted average contractual rate of 4.6%[90] - The consolidated leverage ratio stands at 30.5%, well below the requirement of 60%[99] Future Guidance and Strategic Plans - The company provided 2025 guidance for diluted earnings per share (EPS) ranging from $0.19 to $0.22 and FFO per share ranging from $1.19 to $1.22[38] - The company expects property revenue growth of 2.1% to 3.1% and NOI growth of 0.8% to 3.3% for 2025[42] - The company plans to acquire properties with a total volume of $280 million to $320 million in 2025, including a property in Indianapolis for approximately $60 million[43] - New product developments and market expansions are being prioritized to enhance revenue streams and operational efficiency[71] - Future projects scheduled to start in Q1 2025 include locations in Atlanta, GA, Dallas, TX, Denver, CO, and Raleigh-Durham, NC[77]