Core Viewpoint - Independence Realty Trust (IRT) presents a higher-risk, higher-reward investment opportunity within the residential REIT sector, focusing on the Sunbelt markets with a highly leveraged balance sheet [1] Group 1: Company Overview - IRT offers concentrated exposure to the Sunbelt markets, which may appeal to investors seeking growth potential [1] - The company operates with a highly leveraged balance sheet, indicating a strategy that could lead to significant returns or risks [1] Group 2: Investment Strategy - The investment approach emphasizes finding undervalued companies with strong growth potential and solid management teams [1] - The strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety [1]

Core Viewpoint - Independence Realty Trust (IRT) presents a higher-risk, higher-reward investment opportunity within the residential REIT sector, focusing on the Sunbelt markets with a highly leveraged balance sheet [1] Group 1: Company Overview - IRT offers concentrated exposure to the Sunbelt markets, which may appeal to investors seeking growth potential [1] - The company operates with a highly leveraged balance sheet, indicating a strategy that could lead to significant returns or risks [1] Group 2: Investment Strategy - The investment approach emphasizes finding undervalued companies with strong growth potential and solid management teams [1] - The strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety [1]

Core Viewpoint - Independence Realty Trust Inc. is a real estate investment trust focused on multifamily communities in non-gateway U.S. markets, with upcoming earnings expectations indicating a decline in EPS but an increase in quarterly revenue [1][2]. Financial Performance - The company is set to report Q3 2025 earnings on October 29, with analysts expecting EPS of $0.15, down from $0.29 in the prior-year period [2]. - Quarterly revenue is anticipated to reach $169.54 million, an increase from $159.86 million a year earlier [2]. - For Q2 2025, the company reported FFO of $0.28, meeting expectations, while revenues of $161.89 million fell short of the consensus of $165.21 million [6]. Historical Investment Performance - If an investor had purchased Independence Realty stock 10 years ago at approximately $7.55 per share, a $10,000 investment would have allowed the purchase of roughly 1,325 shares, which would now be valued at $21,430 based on the current share price of $16.18 [3]. - Over the past decade, the company has paid about $6.92 in dividends per share, resulting in an additional $9,166 from dividends alone [4]. - The total value of the investment, combining stock appreciation and dividends, would be $30,596, representing a total return of 205.96%, which is lower than the S&P 500 total return of 298.30% for the same period [5]. Future Outlook - The company has a consensus rating of "Buy" with a price target of $20.86, suggesting a potential upside of over 28% from the current stock price [6]. - The CEO highlighted the company's focus on capital deployment opportunities by trading out of older assets into newer communities in high-growth markets, despite ongoing macroeconomic challenges [7].

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes on accounting policies, real estate investments, indebtedness, derivatives, equity, and segment reporting [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :---------------- | | Total Assets | $5,962,626 | $6,057,919 | $(95,293) | -1.57% | | Investments in real estate, net | $5,546,788 | $5,622,979 | $(76,191) | -1.35% | | Indebtedness, net | $2,249,801 | $2,274,651 | $(24,850) | -1.09% | | Total Equity | $3,550,960 | $3,575,074 | $(24,114) | -0.67% | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Total revenue | $162,188 | $158,402 | $3,786 | 2.39% | | Total expenses | $134,681 | $129,385 | $5,296 | 4.09% | | Net income allocable to common shares | $8,046 | $10,354 | $(2,308) | -22.29% | | Diluted EPS | $0.03 | $0.05 | $(0.02) | -40.00% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Total revenue | $323,431 | $318,937 | $4,494 | 1.41% | | Total expenses | $268,787 | $261,260 | $7,527 | 2.88% | | Net income allocable to common shares | $16,400 | $27,930 | $(11,530) | -41.28% | | Diluted EPS | $0.07 | $0.12 | $(0.05) | -41.67% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Net income | $8,172 | $10,555 | $(2,383) | -22.58% | | Total other comprehensive (loss) income | $(5,404) | $(124) | $(5,280) | 4258.06% | | Comprehensive income | $2,776 | $10,233 | $(7,457) | -72.87% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Net income | $16,698 | $28,515 | $(11,817) | -41.44% | | Total other comprehensive (loss) income | $(14,392) | $9,099 | $(23,491) | -258.17% | | Comprehensive income | $2,373 | $36,797 | $(34,424) | -93.54% | [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total Stockholders' Equity | $3,420,189 | $3,442,275 | | Total Equity | $3,550,960 | $3,575,074 | - Common dividends declared for **Q2 2025** were **$0.17 per share**, an increase of **6.3%** over the prior quarterly rate of **$0.16 per share**. For **Q1 2025**, dividends were **$0.16 per share**[13](index=13&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Net issuance of common shares for the **six months ended June 30, 2025**, contributed **$50.01 million** to additional paid-in capital[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :---------------- | | Cash flow provided by operating activities | $142,614 | $127,080 | $15,534 | 12.22% | | Cash flow (used in) provided by investing activities | $(34,342) | $238,553 | $(272,895) | -114.39% | | Cash flow used in financing activities | $(109,198) | $(368,967) | $259,769 | -70.41% | | Net change in cash and cash equivalents, and restricted cash | $(926) | $(3,334) | $2,408 | -72.23% | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1: Organization](index=10&type=section&id=NOTE%201:%20Organization) - **Independence Realty Trust, Inc.** (IRT) is a self-administered and self-managed Maryland REIT primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets[17](index=17&type=chunk) - As of **June 30, 2025**, IRT owned and operated **113 multifamily apartment properties** (**33,175 units**) and had interests in **five unconsolidated joint ventures** (**886 operating units** and **702 units** under development)[17](index=17&type=chunk) [NOTE 2: Summary of Significant Accounting Policies](index=10&type=section&id=NOTE%202:%20Summary%20of%20Significant%20Accounting%20Policies) [a. Basis of Presentation](index=10&type=section&id=a.%20Basis%20of%20Presentation) - The unaudited interim condensed consolidated financial statements are prepared in accordance with GAAP, with certain information condensed or omitted as permitted for interim reports[19](index=19&type=chunk) [b. Principles of Consolidation](index=10&type=section&id=b.%20Principles%20of%20Consolidation) - The financial statements consolidate IRT, IROP, and its subsidiaries, with IROP considered a variable interest entity where IRT is the primary beneficiary[20](index=20&type=chunk) [c. Use of Estimates](index=10&type=section&id=c.%20Use%20of%20Estimates) - The preparation of financial statements requires management to make estimates and assumptions, and actual results could differ from these estimates[21](index=21&type=chunk) [d. Cash and Cash Equivalents](index=10&type=section&id=d.%20Cash%20and%20Cash%20Equivalents) - Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less[22](index=22&type=chunk) [e. Restricted Cash](index=10&type=section&id=e.%20Restricted%20Cash) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------- | :----------------------------- | :------------------------------- | | Restricted cash | $23,035 | $22,224 | [f. Investments in Real Estate](index=11&type=section&id=f.%20Investments%20in%20Real%20Estate) [Allocation of Purchase Price of Ac

Financial Data and Key Metrics Changes - Same store revenues increased by 1% year-over-year, with same store NOI growing by 2% in the quarter [5][10] - Core FFO per share was $0.28, up from $0.27 in Q1 2025 [10] - Same store operating expenses decreased by 60 basis points compared to the prior year quarter [7][10] Business Line Data and Key Metrics Changes - The company completed 454 value-add renovations in the quarter, achieving a weighted average return on investment of 16.2% [8] - Renewal rental increases were approximately 3.9%, contributing to 70 basis points of blended rent growth [11] Market Data and Key Metrics Changes - Deliveries in the company's markets are tapering off, with supply growth expected to be less than 2% in 2026, a 43% reduction from 2024 [9] - The company noted that supply pressures in markets like Atlanta, Dallas, and Denver have negatively impacted new lease trade-outs [11][12] Company Strategy and Development Direction - The company is focusing on capital recycling by trading out older assets with higher future CapEx needs for newer communities with lower CapEx profiles [8][12] - The acquisition pipeline remains strong, with an updated guidance implying an additional $315 million in acquisitions before year-end [9][14] Management's Comments on Operating Environment and Future Outlook - Management believes they are at the beginning of a multi-year period of improving fundamentals in the multifamily sector, with stable renewals and strong demand expected to continue [20] - The company adjusted its full-year 2025 guidance to reflect lower revenue growth expectations, offset by lower expense growth [15][16] Other Important Information - The company has identified three assets for sale and expects to sell them in the fourth quarter [8][12] - The balance sheet remains flexible with strong liquidity, with only 16% of total debt maturing before the end of 2027 [15] Q&A Session Summary Question: Can you share how you approached your revised outlook versus historical seasonality? - Management explained that the new lease trajectory was based on comparing expiring rents with current estimates and expectations for month-to-month changes [25] Question: Why is there not a significant pickup in new lease growth despite high retention and occupancy? - Management attributed the lack of new lease growth to ongoing supply pressures and macroeconomic uncertainties affecting market rates [31][32] Question: What gives you confidence in predicting higher occupancy in the back half of the year? - Management noted that occupancy has been increasing in July and they expect to maintain this trend [34] Question: Can you provide insights on the current transaction environment and bid-ask spreads? - Management indicated that the bid-ask spread has narrowed as sellers have become more realistic about property values [70] Question: How is the company addressing competition from Class A properties offering aggressive concessions? - Management acknowledged that aggressive concessions from Class A properties require more effort to maintain occupancy and manage rents in the Class B portfolio [82]

Financial Data and Key Metrics Changes - Same store revenues increased by 1% year-over-year, with same store NOI growing by 2% in the quarter [4][9] - Core FFO per share was $0.28, up from $0.27 in Q1 2025 [9] - Same store operating expenses decreased by 60 basis points compared to the prior year, fully offsetting softer revenue growth [5][9] Business Line Data and Key Metrics Changes - Renewal leasing showed strong retention, contributing to a modest increase in average occupancy [4] - Blended rent growth lagged expectations due to softer market conditions, with new lease trade-offs down 3.1% in the first half of the year [5][10] - Average effective monthly rents increased by 90 basis points, while bad debt improved by 20 basis points compared to the prior year [9] Market Data and Key Metrics Changes - Deliveries in the portfolio are tapering off, with supply growth expected to be less than 2% in 2026, a 43% reduction from 2024 [7] - Market conditions in Dallas and Tampa were noted as slower than anticipated, with increased supply impacting pricing power [44][45] - Strong absorption was observed in markets like Lexington, Columbus, and Oklahoma City, indicating potential for growth [46] Company Strategy and Development Direction - The company plans to recycle capital from older assets into newer communities with lower CapEx profiles [6][38] - An acquisition pipeline remains strong, with $315 million of additional acquisitions expected before year-end [7][13] - The company aims to maintain a balance between Sunbelt and Midwest exposure while focusing on growth in Orlando [65][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multiyear period of improving fundamentals in the multifamily sector, with expectations for stronger leasing environments in 2026 [18] - The company anticipates continued strong demand for its communities, supported by declining bad debt and increased tour volumes [18] - Management acknowledged lingering supply pressures and macroeconomic uncertainties affecting market rates [30][57] Other Important Information - The company completed 454 value-add renovations in the quarter, achieving a weighted average return on investment of 16.2% [6] - The balance sheet remains flexible with strong liquidity, with only 16% of total debt maturing before the end of 2027 [14] - The company expects to close on two communities in Orlando for a total purchase price of $155 million, enhancing market presence [12][13] Q&A Session Summary Question: Can you share how you approached your revised outlook versus historical seasonality? - Management indicated that the new lease trajectory was based on comparing expiring rents with current estimates, expecting continued month-to-month improvement [21][24] Question: Why is there not a significant pickup in new lease growth despite high retention? - Management attributed this to ongoing supply pressure and macroeconomic uncertainties affecting market rates [29][30] Question: What are the common threads for the assets held for sale? - The assets are older, with higher CapEx loads, and the company aims to recycle capital into newer assets with better growth profiles [37] Question: Can you provide an update on market conditions and visibility for the back half of the year? - Management noted that Dallas and Tampa faced unexpected supply challenges, but strong absorption is expected to improve conditions moving forward [44][45] Question: How is the current transaction environment affecting bid-ask spreads? - Management observed that sellers are becoming more rational, narrowing the bid-ask spread due to high interest costs and lease-up challenges [62][75]

Group 1 - Independence Realty Trust (IRT) reported quarterly funds from operations (FFO) of $0.28 per share, matching the Zacks Consensus Estimate and remaining unchanged from the previous year [1] - The company posted revenues of $162.19 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.68%, compared to $158.1 million in the same quarter last year [2] - IRT shares have declined approximately 11.7% year-to-date, contrasting with the S&P 500's gain of 8.3% [3] Group 2 - The future performance of IRT's stock will largely depend on management's commentary during the earnings call and the outlook for FFO [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.29 on revenues of $171.38 million, and for the current fiscal year, it is $1.17 on revenues of $673.32 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

[Company Overview & Forward-Looking Statements](index=3&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) This section introduces Independence Realty Trust (IRT) as a multifamily REIT and details forward-looking statements and associated risks [Company Information](index=3&type=section&id=Company%20Information) Independence Realty Trust, Inc. (IRT) is an S&P 400 MidCap REIT focused on owning and operating multifamily communities in non-gateway U.S. markets, aiming for attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and consistent return on capital - IRT is a real estate investment trust (REIT) that owns and operates multifamily communities across non-gateway U.S. markets[4](index=4&type=chunk) - IRT's investment strategy focuses on gaining scale near major employment centers within key amenity-rich submarkets[4](index=4&type=chunk) Company Details | Metric | Detail | | :--- | :--- | | Trading Symbol on NYSE | IRT | | Fitch Ratings | BBB \| Stable | | Standard & Poors' Ratings Services | BBB \| Stable | [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking nature of the release, including earnings guidance and expectations for acquisitions and dispositions, while detailing various risks and uncertainties that could cause actual results to differ materially from projections - The release contains forward-looking statements regarding earnings guidance, planned use of proceeds from stock sales, and expectations for future acquisitions and dispositions[6](index=6&type=chunk) - Forward-looking statements are subject to risks and uncertainties, including changes in market demand, capital market volatility, increased costs due to inflation, and inability to achieve anticipated benefits from initiatives[7](index=7&type=chunk) [Second Quarter 2025 Financial Results (Earnings Press Release)](index=4&type=section&id=Earnings%20Press%20Release) This section details IRT's Q2 2025 financial and operational performance, covering key metrics, same-store results, investment activities, and updated 2025 guidance [Q2 2025 Financial Highlights](index=4&type=section&id=Q2%202025%20Financial%20Highlights) Key financial and operational highlights for Q2 2025 include EPS of $0.03, CFFO per share of $0.28, and a 2.0% increase in same-store portfolio NOI. The company also completed 454 value-add renovations with a 16.2% ROI and is under contract to acquire two properties in Orlando for $155 million Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net income available to common shares | $8.0M | $10.4M | (22.9%) | | EPS (diluted) | $0.03 | $0.05 | (40.0%) | | Same-store portfolio NOI growth | 2.0% | - | +2.0% | | Core Funds from Operations (CFFO) | $66.7M | $63.6M | +4.9% | | CFFO per share | $0.28 | $0.28 | 0.0% | | Adjusted EBITDA | $87.6M | $83.6M | +4.8% | - Completed **454 value-add renovations** in Q2 2025, achieving a weighted average return on investment (ROI) of **16.2%**[13](index=13&type=chunk) - Under contract to acquire two properties in Orlando, FL for an aggregate purchase price of approximately **$155 million**, expected to close during Q3 2025[13](index=13&type=chunk) [Same-Store Portfolio Operating Results](index=6&type=section&id=Same-Store%20Portfolio%20Operating%20Results) The same-store portfolio (105 properties, 30,502 units) showed positive operating trends in Q2 2025 compared to Q2 2024, with revenue increasing by 1.0% and NOI by 2.0%, driven by a 0.9% increase in average rental rates and a 0.6% decrease in property operating expenses. Blended lease-over-lease effective rental rate growth was 0.7% Same-Store Portfolio Operating Results (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 Compared to 2024 | Six Months Ended June 30, 2025 Compared to 2024 | | :-------------------------------- | :--------------------------------------- | :-------------------------------------- | | Rental and other property revenue | 1.0% increase | 1.7% increase | | Property operating expenses | 0.6% decrease | 0.3% increase | | NOI | 2.0% increase | 2.6% increase | | Portfolio average occupancy | 10 bps increase to 95.3% | 70 bps increase to 95.4% | | Portfolio average rental rate | 0.9% increase to $1,575 | 0.9% increase to $1,574 | | NOI Margin | 60 bps increase to 62.4% | 50 bps increase to 62.8% | Lease Over Lease Effective Rental Rate Growth (Q2 2025) | Lease Type | Q1 2025 | Q2 2025 | | :-------------------------- | :------ | :------ | | New Leases | (4.3)% | (3.1)% | | Renewal Leases | 4.8% | 3.9% | | Blended | 0.4% | 0.7% | [Value Add Program Update](index=6&type=section&id=Value%20Add%20Program%20Update) In Q2 2025, IRT completed renovations on 454 units, achieving a 16.2% ROI with an average cost of $19,166 per unit and an average monthly rent increase of $259. For the first six months of 2025, 729 units were renovated with the same ROI - Completed renovations of **454 units** during Q2 2025, achieving a **16.2% ROI**, with an average cost per unit renovated of **$19,166** and an average monthly rent increase of **$259**[16](index=16&type=chunk) - Completed renovations of **729 units** during the six months ended June 30, 2025, achieving a **16.2% ROI**, with an average cost per unit renovated of **$18,901** and an average monthly rent increase of **$256**[16](index=16&type=chunk) [Investment Activity](index=6&type=section&id=Investment%20Activity) IRT is under contract to acquire two Orlando properties for $155 million, expected to close in Q3 2025, funded by forward equity sales and unsecured revolver. Three properties are classified as held for sale, with dispositions expected in 2H 2025, and proceeds intended for future acquisitions. The Metropolis at Innsbrook joint venture property was sold in July 2025, generating $31.1 million in proceeds and an expected gain of $10.4 million in Q3 2025 - Under contract to acquire two properties in Orlando, Florida, for approximately **$155 million**, expected to close during Q3 2025, funded by forward equity sales proceeds and unsecured revolver[17](index=17&type=chunk) - As of June 30, 2025, three properties were classified as held for sale, with dispositions expected during the second half of 2025; proceeds to be recycled into future property acquisitions[18](index=18&type=chunk) - The Metropolis at Innsbrook joint venture property was sold on July 21, 2025, generating **$31.1 million** in proceeds and an expected gain of approximately **$10.4 million** in Q3 2025[19](index=19&type=chunk) [Capital Expenditures](index=7&type=section&id=Capital%20Expenditures) Total capital expenditures for Q2 2025 were $39.7 million, comprising recurring, value-add, non-recurring, and development expenditures. For the first six months of 2025, total capital expenditures amounted to $64.5 million Capital Expenditures (Dollars in millions) | Type of Expenditure | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------- | :------------------------------- | :------------------------------ | | Recurring | $10.5 ($309/unit) | $16.0 ($470/unit) | | Value add | $9.7 | $17.2 | | Non-recurring | $15.9 | $22.3 | | Development | $3.6 | $9.0 | [Capital Markets and Liquidity](index=7&type=section&id=Capital%20Markets%20and%20Liquidity) As of June 30, 2025, IRT had 8,281,000 shares remaining under forward sale agreements, potentially realizing $162 million in proceeds. The company maintained a strong balance sheet with net debt to Adjusted EBITDA at 6.3x and approximately $716.4 million in liquidity - As of June 30, 2025, **8,281,000 shares** remained under forward sale agreements, potentially realizing approximately **$162 million** in proceeds[21](index=21&type=chunk) - Net debt to Adjusted EBITDA was **6.3x** at June 30, 2025[22](index=22&type=chunk) - Approximately **$716.4 million** in liquidity was available as of June 30, 2025, through unrestricted cash, unsettled forward equity sale proceeds, and unsecured revolver capacity[22](index=22&type=chunk) [Dividend Distribution](index=7&type=section&id=Dividend%20Distribution) The Board of Directors declared a quarterly dividend of $0.17 per share of common stock on May 14, 2025, representing a 6.3% increase over the prior quarterly rate - A quarterly dividend of **$0.17 per share** of common stock was declared on May 14, 2025, representing a **6.3% increase** over the prior quarterly rate of $0.16 per share[23](index=23&type=chunk) [2025 Guidance Update](index=7&type=section&id=2025%20Guidance%20Update) IRT updated its full-year 2025 guidance, increasing the midpoint of same-store NOI growth while maintaining the midpoint of CFFO per share. Acquisition volume guidance was significantly increased, and disposition volume also saw a substantial rise Updated 2025 Full Year EPS and CFFO Guidance | Metric | Previous Guidance (Low-High) | Current Guidance (Low-High) | Change at Midpoint | | :-------------------------- | :--------------------------- | :-------------------------- | :----------------- | | Earnings per share | $0.19 - $0.22 | $0.475 - $0.535 | +$0.30 | | FFO per share | $1.19 - $1.22 | $1.195 - $1.215 | — | | CFFO per share | $1.16 - $1.19 | $1.165 - $1.185 | — | Updated 2025 Guidance Assumptions | Metric | Previous 2025 Outlook | Current 2025 Outlook | Change at Midpoint | | :-------------------------------- | :-------------------- | :------------------- | :----------------- | | Same-Store Properties/Units | 108 properties / 31,662 units | 105 properties / 30,502 units | (3) / (1,160) | | Property revenue growth | 2.1% - 3.1% | 1.5% - 1.9% | (0.9)% | | Total operating expense growth | 2.8% - 4.1% | 0.7% - 1.3% | (2.45)% | | NOI growth | 0.8% - 3.3% | 1.7% - 2.5% | +0.05% | | Acquisition volume ($ in millions) | $280 - $320 | $580 - $650 | +$315.0 | | Disposition volume ($ in millions) | $110 - $112 | $385 - $435 | +$299.0 | | Value add renovation program ($ in millions) | $48 - $58 | $38 - $42 | $(13.0) | [Financial & Operating Highlights (Summary Tables)](index=10&type=section&id=Financial%20%26%20Operating%20Highlights) This section provides a comprehensive overview of IRT's financial, operational, and capitalization data across the trailing five quarters [Selected Financial Information (Trailing Five Quarters)](index=10&type=section&id=Selected%20Financial%20Information) This section provides a five-quarter overview of key financial metrics, including net income, EPS, revenue, NOI, FFO, CFFO, and dividends, offering a quick snapshot of performance trends Selected Financial Information (Trailing Five Quarters, Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (loss) available to common shares | $8,046 | $8,354 | $(1,001) | $12,365 | $10,354 | | Earnings per share -- diluted | $0.03 | $0.04 | $0.00 | $0.05 | $0.05 | | Rental and other property revenue | $161,891 | $160,905 | $160,617 | $159,860 | $158,104 | | NOI | $100,956 | $101,642 | $106,422 | $99,322 | $97,221 | | NOI margin | 62.4% | 63.2% | 66.3% | 62.1% | 61.5% | | Adjusted EBITDA | $87,556 | $85,748 | $94,533 | $87,453 | $83,609 | | FFO per share | $0.28 | $0.28 | $0.33 | $0.30 | $0.28 | | CFFO per share | $0.28 | $0.27 | $0.32 | $0.29 | $0.28 | | Dividends per share | $0.17 | $0.16 | $0.16 | $0.16 | $0.16 | | CFFO payout ratio | 60.7% | 59.3% | 50.0% | 55.2% | 57.1% | [Portfolio Data (Trailing Five Quarters)](index=10&type=section&id=Portfolio%20Data) This section presents key portfolio operating data over the trailing five quarters, including total assets, number of properties and units, and occupancy and rental rates for both the total and same-store portfolios Portfolio Data (Trailing Five Quarters) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total gross assets | $6,874,320 | $6,844,114 | $6,882,296 | $6,733,864 | $6,684,029 | | Total number of operating properties | 113 | 113 | 113 | 110 | 110 | | Total units | 33,175 | 33,175 | 33,615 | 32,670 | 32,685 | | Portfolio period end occupancy | 95.2% | 94.9% | 95.4% | 95.5% | 95.5% | | Portfolio average effective monthly rent, per unit | $1,582 | $1,583 | $1,572 | $1,571 | $1,554 | | Same-store portfolio average occupancy | 95.3% | 95.5% | 95.5% | 95.4% | 95.2% | | Same-store portfolio average effective monthly rent, per unit | $1,575 | $1,573 | $1,571 | $1,571 | $1,561 | [Capitalization (Trailing Five Quarters)](index=10&type=section&id=Capitalization) This section provides capitalization metrics over the trailing five quarters, including total debt, common share price, market capitalization, debt-to-gross assets ratio, net debt to Adjusted EBITDA, and interest coverage Capitalization (Trailing Five Quarters) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total debt | $2,249,801 | $2,253,957 | $2,333,683 | $2,286,694 | $2,252,559 | | Common share price, period end | $17.69 | $21.23 | $19.84 | $20.50 | $18.74 | | Total market capitalization | $6,491,004 | $7,342,890 | $7,031,396 | $7,022,906 | $6,582,696 | | Total debt/total gross assets | 32.7% | 32.9% | 33.9% | 34.0% | 33.7% | | Net debt to adjusted EBITDA | 6.3x | 6.3x | 5.9x | 6.3x | 6.5x | | Interest coverage | 4.7x | 4.4x | 4.8x | 4.8x | 4.8x | [Balance Sheets](index=11&type=section&id=Balance%20Sheets) This section presents a summary of IRT's balance sheet, detailing assets, liabilities, and equity as of June 30, 2025, and prior quarters [Balance Sheet Summary](index=11&type=section&id=Balance%20Sheet%20Summary) The balance sheet as of June 30, 2025, shows total assets of $5.96 billion and total liabilities of $2.41 billion. Real estate held for investment, net, decreased slightly from the previous quarter, while real estate held for sale increased. Total equity stood at $3.55 billion Balance Sheet Summary (Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | **Assets:** | | | | | Real estate held for investment, net | $5,546,788 | $5,652,684 | $5,622,979 | | Real estate held for sale | $119,875 | — | $110,112 | | Real estate under development | $91,849 | $117,802 | $116,861 | | Cash and cash equivalents | $19,491 | $29,055 | $21,228 | | Total assets | $5,962,626 | $5,983,494 | $6,057,919 | | **Liabilities:** | | | | | Indebtedness, net | $2,249,801 | $2,253,957 | $2,274,651 | | Total liabilities | $2,411,666 | $2,396,315 | $2,482,845 | | **Equity:** | | | | | Total equity | $3,550,960 | $3,587,179 | $3,575,074 | [Statements of Operations, FFO & CFFO](index=12&type=section&id=Statements%20of%20Operations%2C%20Funds%20from%20Operations%20%28%22FFO%22%29%20%26%20Core%20FFO%20%28%22CFFO%22%29) This section provides detailed statements of operations, Funds from Operations (FFO), and Core FFO (CFFO) for trailing five quarters and specific periods [Trailing Five Quarters](index=12&type=section&id=Statements%20of%20Operations%2C%20FFO%20%26%20CFFO%20-%20Trailing%20Five%20Quarters) Over the trailing five quarters, IRT's net income available to common shares fluctuated, with Q2 2025 at $8.0 million. Rental and other property revenue showed a consistent upward trend. FFO and CFFO per share remained relatively stable, with Q2 2025 reporting $0.28 for both Statements of Operations (Trailing Five Quarters, Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total revenue | $162,188 | $161,243 | $160,963 | $160,135 | $158,402 | | Total expenses | $134,681 | $134,105 | $124,092 | $129,192 | $129,385 | | Net income (loss) available to common shares | $8,046 | $8,354 | $(1,001) | $12,365 | $10,354 | | Earnings per share - diluted | $0.03 | $0.04 | $0.00 | $0.05 | $0.05 | FFO & CFFO (Trailing Five Quarters, Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | FFO | $68,001 | $67,364 | $76,948 | $68,258 | $65,246 | | FFO per share | $0.28 | $0.28 | $0.33 | $0.30 | $0.28 | | CFFO | $66,693 | $64,238 | $75,031 | $66,802 | $63,614 | | CFFO per share | $0.28 | $0.27 | $0.32 | $0.29 | $0.28 | [Three and Six Months Ended June 30, 2025 and 2024](index=13&type=section&id=Statements%20of%20Operations%2C%20FFO%20%26%20CFFO%20-%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) For the three months ended June 30, 2025, net income available to common shares decreased to $8.0 million from $10.4 million in the prior year. FFO increased to $68.0 million (from $65.2 million) and CFFO increased to $66.7 million (from $63.6 million) year-over-year. For the six-month period, net income decreased, while FFO and CFFO showed modest increases Statements of Operations (Three and Six Months Ended June 30, 2025 vs 2024, Dollars in thousands) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total revenue | $162,188 | $158,402 | $323,431 | $318,937 | | Total expenses | $134,681 | $129,385 | $268,787 | $261,260 | | Net income available to common shares | $8,046 | $10,354 | $16,400 | $27,930 | | Earnings per share - diluted | $0.03 | $0.05 | $0.07 | $0.12 | FFO & CFFO (Three and Six Months Ended June 30, 2025 vs 2024, Dollars in thousands) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | FFO | $68,001 | $65,246 | $135,367 | $127,587 | | FFO per share | $0.28 | $0.28 | $0.57 | $0.55 | | CFFO | $66,693 | $63,614 | $130,931 | $125,069 | | CFFO per share | $0.28 | $0.28 | $0.55 | $0.54 | [Adjusted EBITDA Reconciliations and Coverage Ratio](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliations%20and%20Coverage%20Ratio) This section details the reconciliation of net income to Adjusted EBITDA and presents the interest coverage ratio for various periods [Adjusted EBITDA and Interest Coverage Ratio](index=14&type=section&id=Adjusted%20EBITDA%20and%20Interest%20Coverage%20Ratio) This section provides the reconciliation of net income to Adjusted EBITDA and details the interest coverage ratio for trailing five quarters and for the three and six months ended June 30, 2025 and 2024. Adjusted EBITDA for Q2 2025 was $87.6 million, with an interest coverage ratio of 4.7x Adjusted EBITDA and Interest Coverage Ratio (Trailing Five Quarters, Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :---------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (loss) | $8,172 | $8,526 | $(1,100) | $12,620 | $10,555 | | Adjusted EBITDA | $87,556 | $85,748 | $94,533 | $87,453 | $83,609 | | Interest expense | $18,773 | $19,348 | $19,770 | $18,308 | $17,460 | | Interest coverage | 4.7x | 4.4x | 4.8x | 4.8x | 4.8x | Adjusted EBITDA and Interest Coverage Ratio (Three and Six Months Ended June 30, 2025 vs 2024, Dollars in thousands) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | | :---------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $8,172 | $10,555 | $16,698 | $28,515 | | Adjusted EBITDA | $87,556 | $83,609 | $173,304 | $168,294 | | Interest expense | $18,773 | $17,460 | $38,121 | $38,063 | | Interest coverage | 4.7x | 4.8x | 4.5x | 4.4x | [Same-Store Portfolio Net Operating Income (NOI)](index=15&type=section&id=Same-Store%20Portfolio%20Net%20Operating%20Income%20%28%22NOI%22%29%20and%20NOI%20Bridge) This section analyzes same-store portfolio Net Operating Income (NOI) trends, including overall performance and market-specific contributions for various periods [Same-Store Portfolio NOI & NOI Bridge - Trailing Five Quarters](index=15&type=section&id=Same-Store%20Portfolio%20NOI%20%26%20NOI%20Bridge%20-%20Trailing%20Five%20Quarters) The same-store portfolio NOI for the trailing five quarters shows a general upward trend, reaching $92.5 million in Q2 2025, with an NOI margin of 62.4%. Average occupancy remained high at 95.3%, and average effective monthly rent per unit was $1,575 Same-Store Portfolio NOI (Trailing Five Quarters, Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Rental and other property revenue | $148,113 | $146,856 | $147,071 | $148,430 | $146,609 | | Total property operating expenses | $55,646 | $54,092 | $49,427 | $55,590 | $55,991 | | Same-store portfolio NOI | $92,467 | $92,764 | $97,644 | $92,840 | $90,618 | | Same-store portfolio NOI margin | 62.4% | 63.2% | 66.4% | 62.5% | 61.8% | | Average occupancy | 95.3% | 95.5% | 95.5% | 95.4% | 95.2% | | Average effective monthly rent, per unit | $1,575 | $1,573 | $1,571 | $1,571 | $1,561 | [Same-Store Portfolio NOI - Three and Six Months Ended June 30, 2025 and 2024](index=16&type=section&id=Same-Store%20Portfolio%20NOI%20-%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) For the three months ended June 30, 2025, same-store portfolio NOI increased by 2.0% year-over-year, driven by a 1.0% increase in revenue and a 0.6% decrease in operating expenses. For the six-month period, NOI grew by 2.6%, with revenue up 1.7% and expenses up 0.3% Same-Store Portfolio NOI (Three and Six Months Ended June 30, 2025 vs 2024, Dollars in thousands) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | % Change (3M) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | % Change (6M) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------ | :-------------------------- | :-------------------------- | :------------ | | Rental and other property revenue | $148,113 | $146,609 | 1.0% | $294,969 | $289,929 | 1.7% | | Total property operating expenses | $55,646 | $55,991 | (0.6)% | $109,738 | $109,420 | 0.3% | | Same-store portfolio NOI | $92,467 | $90,618 | 2.0% | $185,231 | $180,509 | 2.6% | | Same-store portfolio NOI margin | 62.4% | 61.8% | 0.6% | 62.8% | 62.3% | 0.5% | | Average occupancy | 95.3% | 95.2% | 0.1% | 95.4% | 94.7% | 0.7% | | Average effective monthly rent, per unit | $1,575 | $1,561 | 0.9% | $1,574 | $1,560 | 0.9% | [Same-Store Portfolio NOI by Market - Three Months Ended June 30, 2025 and 2024](index=17&type=section&id=Same-Store%20Portfolio%20NOI%20by%20Market%20-%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) For Q2 2025, several markets showed strong NOI growth, notably Columbus, OH (7.5%), Orlando, FL (15.0%), and Lexington, KY (8.8%). Conversely, some markets experienced declines, such as Huntsville, AL (-7.6%) and Myrtle Beach, SC - Wilmington, NC (-7.1%) Top 3 and Bottom 3 Same-Store NOI Growth by Market (Q2 2025 vs Q2 2024) | Market | NOI % Change | | :-------------------------------- | :----------- | | **Top 3 Growth:** | | | Orlando, FL | 15.0% | | Lexington, KY | 8.8% | | Columbus, OH | 7.5% | | **Bottom 3 Decline:** | | | Huntsville, AL | (7.6)% | | Myrtle Beach, SC - Wilmington, NC | (7.1)% | | Nashville, TN | (3.5)% | [Same-Store Portfolio NOI by Market - Six Months Ended June 30, 2025](index=18&type=section&id=Same-Store%20Portfolio%20NOI%20by%20Market%20-%20Six%20Months%20Ended%20June%2030%2C%202025) For the six months ended June 30, 2025, Orlando, FL (11.2%), Lexington, KY (9.3%), and Houston, TX (7.3%) demonstrated the highest same-store NOI growth. Huntsville, AL (-3.5%), Myrtle Beach, SC - Wilmington, NC (-3.8%), and Charlotte, NC (-3.0%) experienced the largest declines Top 3 and Bottom 3 Same-Store NOI Growth by Market (6 Months Ended June 30, 2025 vs 2024) | Market | NOI % Change | | :-------------------------------- | :----------- | | **Top 3 Growth:** | | | Orlando, FL | 11.2% | | Lexington, KY | 9.3% | | Houston, TX | 7.3% | | **Bottom 3 Decline:** | | | Myrtle Beach, SC - Wilmington, NC | (3.8)% | | Huntsville, AL | (3.5)% | | Charlotte, NC | (3.0)% | [Property Portfolio NOI Exposure by Market](index=19&type=section&id=Property%20Portfolio%20NOI%20Exposure%20by%20Market) This section details the consolidated property portfolio's Net Operating Income (NOI) exposure, broken down by market, properties, units, and occupancy [Consolidated Property Portfolio NOI Exposure by Market](index=19&type=section&id=Consolidated%20Property%20Portfolio%20NOI%20Exposure%20by%20Market) As of June 30, 2025, IRT's consolidated property portfolio comprised 113 properties and 33,175 units, with an average occupancy of 95.2%. Atlanta, GA, and Dallas, TX, represent the largest NOI exposures, accounting for 14.6% and 13.6% of total NOI, respectively Consolidated Property Portfolio NOI Exposure by Market (Q2 2025) | Market | Number of Properties | Units | Average Occupancy | Average Effective Monthly Rent per Unit | NOI (Q2 2025, $ thousands) | % of Total NOI | | :-------------------------- | :------------------- | :---- | :---------------- | :------------------------------------ | :------------------------- | :------------- | | Atlanta, GA | 13 | 5,180 | 94.0% | $1,586 | $14,748 | 14.6% | | Dallas, TX | 14 | 4,007 | 96.3% | $1,808 | $13,703 | 13.6% | | Columbus, OH | 10 | 2,510 | 95.2% | $1,515 | $7,132 | 7.1% | | Tampa-St. Petersburg, FL | 6 | 1,791 | 94.9% | $1,915 | $6,769 | 6.7% | | Indianapolis, IN | 8 | 2,259 | 95.3% | $1,475 | $6,234 | 6.2% | | Denver, CO | 7 | 1,722 | 93.5% | $1,808 | $6,186 | 6.1% | | Oklahoma City, OK | 8 | 2,147 | 96.4% | $1,242 | $5,604 | 5.5% | | Raleigh - Durham, NC | 6 | 1,690 | 95.4% | $1,539 | $4,951 | 4.9% | | Nashville, TN | 5 | 1,508 | 95.4% | $1,617 | $4,846 | 4.8% | | Memphis, TN | 4 | 1,383 | 92.7% | $1,486 | $4,085 | 4.0% | | Charlotte, NC | 4 | 1,014 | 95.0% | $1,699 | $3,572 | 3.5% | | Houston, TX | 5 | 1,308 | 95.6% | $1,437 | $3,385 | 3.4% | | Louisville, KY | 4 | 1,150 | 96.4% | $1,361 | $3,070 | 3.0% | | Huntsville, AL | 4 | 1,051 | 95.9% | $1,428 | $2,947 | 2.9% | | Lexington, KY | 3 | 886 | 96.9% | $1,443 | $2,935 | 2.9% | | Orlando, FL | 2 | 617 | 95.0% | $1,857 | $2,300 | 2.3% | | Cincinnati, OH | 2 | 542 | 98.2% | $1,664 | $1,854 | 1.8% | | Myrtle Beach, SC - Wilmington, NC | 3 | 628 | 95.5% | $1,383 | $1,697 | 1.7% | | Charleston, SC | 2 | 518 | 95.2% | $1,770 | $1,672 | 1.7% | | Greenville, SC | 1 | 702 | 92.8% | $1,276 | $1,640 | 1.6% | | Austin, TX | 1 | 256 | 96.1% | $1,797 | $860 | 0.9% | | San Antonio, TX | 1 | 306 | 97.7% | $1,447 | $825 | 0.8% | | **Total / Weighted Average** | **113** | **33,175** | **95.2%** | **$1,582** | **$101,015** | **100.0%** | [Value Add Program Summary](index=20&type=section&id=Value%20Add%20Summary) This section summarizes the performance and key metrics of IRT's ongoing and completed value-add renovation programs, including ROI and rent premiums [Value Add Summary - Ongoing Projects (Project Life to Date as of June 30, 2025)](index=20&type=section&id=Value%20Add%20Summary%20-%20Ongoing%20Projects) This section details ongoing value-add renovation projects, showing a weighted average ROI of 16.5% on interior costs and 14.7% on total costs, with an average rent premium of $245 across 35 properties and 5,222 leased units Value Add Summary - Ongoing Projects (Project Life to Date as of June 30, 2025) | Market | Total Properties | Units To Be Renovated | Units Leased | Rent Premium (a) | % Rent Increase | ROI - Interior Costs (c) | ROI - Total Costs (c) | | :-------------------------- | :--------------- | :-------------------- | :----------- | :--------------- | :-------------- | :----------------------- | :-------------------- | | Atlanta, GA | 7 | 3,214 | 1,420 | $239 | 17.5% | 15.4% | 13.5% | | Dallas, TX | 7 | 2,111 | 996 | $292 | 20.2% | 17.9% | 16.1% | | Oklahoma City, OK | 6 | 1,627 | 777 | $178 | 18.5% | 12.3% | 11.0% | | Columbus, OH | 4 | 1,098 | 692 | $255 | 20.7% | 20.1% | 18.3% | | Raleigh-Durham, NC | 3 | 807 | 288 | $202 | 15.9% | 14.8% | 13.2% | | Denver, CO | 2 | 492 | 105 | $283 | 23.1% | 24.8% | 20.3% | | Lexington, KY | 1 | 436 | 132 | $353 | 30.3% | 24.1% | 21.6% | | Nashville, TN | 1 | 418 | 315 | $173 | 12.6% | 12.0% | 11.1% | | Tampa-St. Petersburg, FL | 1 | 348 | 267 | $322 | 22.1% | 22.3% | 20.1% | | Charleston, SC | 1 | 274 | 18 | $281 | 15.5% | 17.7% | 14.3% | | Austin, TX | 1 | 256 | 210 | $255 | 17.5% | 16.3% | 15.1% | | Indianapolis, IN | 1 | 220 | 2 | $248 | 17.3% | 16.1% | 14.4% | | **Total / Weighted Average** | **35** | **11,301** | **5,222** | **$245** | **18.9%** | **16.5%** | **14.7%** | [Value Add Summary - Completed Projects (Project Life to Date as of June 30, 2025)](index=20&type=section&id=Value%20Add%20Summary%20-%20Completed%20Projects) This section summarizes completed value-add renovation projects, showing a weighted average ROI of 21.2% on interior costs and 19.3% on total costs, with an average rent premium of $221 across 17 properties and 5,082 leased units Value Add Summary - Completed Projects (Project Life to Date as of June 30, 2025) | Market | Total Properties | Units To Be Renovated | Units Leased | Rent Premium (a) | % Rent Increase | ROI - Interior Costs (c) | ROI - Total Costs (c) | | :-------------------------- | :--------------- | :-------------------- | :----------- | :--------------- | :-------------- | :----------------------- | :-------------------- | | Memphis, TN | 3 | 1,053 | 998 | $240 | 22.8% | 21.7% | 20.3% | | Atlanta, GA | 3 | 978 | 924 | $210 | 20.3% | 27.5% | 24.5% | | Tampa-St. Petersburg, FL | 3 | 888 | 855 | $278 | 21.6% | 23.5% | 21.5% | | Columbus, OH | 3 | 763 | 714 | $205 | 22.3% | 23.5% | 22.1% | | Louisville, KY | 2 | 728 | 781 | $215 | 24.1% | 16.4% | 14.4% | | Raleigh-Durham, NC | 1 | 328 | 322 | $194 | 18.9% | 15.9% | 13.9% | | Wilmington, NC | 1 | 288 | 287 | $77 | 7.6% | 11.4% | 11.3% | | Indianapolis, IN | 1 | 236 | 201 | $259 | 23.9% | 19.7% | 18.0% | | **Total / Weighted Average** | **17** | **5,262** | **5,082** | **$221** | **21.3%** | **21.2%** | **19.3%** | [Investment and Development Activity](index=21&type=section&id=Investment%20%26%20Development%20Activity) This section outlines IRT's investment and development activities, including 2025 acquisitions, dispositions, assets held for sale, and joint venture updates [2025 Acquisitions](index=21&type=section&id=2025%20Acquisitions) In 2025, IRT acquired Autumn Breeze in Indianapolis, Indiana, a 280-unit property, for $59.5 million 2025 Acquisitions | Property | Market | Units | Date Acquired | Purchase Price | Price per Unit | Average Rent per Unit at Acquisition | | :------------- | :------------------ | :---- | :------------ | :------------- | :------------- | :----------------------------------- | | Autumn Breeze | Indianapolis, Indiana | 280 | 2/27/2025 | $59,500 | $213 | $1,548 | [2025 Dispositions](index=21&type=section&id=2025%20Dispositions) IRT disposed of Ridge Crossings in Birmingham, Alabama, a 720-unit property, for $111 million on February 14, 2025, recognizing a gain of $1.5 million 2025 Dispositions | Property | Location | Units | Date Sold | Sale Price | Price per Unit | Average Rent per Unit at Disposition | Q1 2025 Gain on Sale (a) | | :------------- | :------------------ | :---- | :-------- | :--------- | :------------- | :----------------------------------- | :----------------------- | | Ridge Crossings | Birmingham, Alabama | 720 | 2/14/2025 | $111,000 | $154 | $1,366 | $1,496 | [Assets Held for Sale](index=21&type=section&id=Assets%20Held%20for%20Sale) As of June 30, 2025, three properties totaling 1,160 units were classified as held for sale: Bella Terra at City Center (Denver, CO), Jamestown at St. Matthews (Louisville, KY), and Stonebridge Crossings (Memphis, TN) Assets Held for Sale as of June 30, 2025 | Property | Location | Quarter Identified as Held for Sale | Units | | :-------------------------- | :---------------- | :---------------------------------- | :---- | | Bella Terra at City Center | Denver, CO | Q2 2025 | 304 | | Jamestown at St. Matthews | Louisville, KY | Q2 2025 | 356 | | Stonebridge Crossings | Memphis, TN | Q2 2025 | 500 | | **Total** | | | **1,160** | [Real Estate Under Development](index=21&type=section&id=Real%20Estate%20Under%20Development) The Flatiron Flats development in Denver, CO, with 296 planned units, reached 100% delivery and completion in Q1 2025. As of July 28, 2025, its occupancy was 31.8% and leased percentage was 36.8%, still classified as a development property due to being in lease-up Flatiron Flats Development Status (as of July 28, 2025) | Metric | Value | | :------------------------------------ | :---- | | Location | Denver, Colorado | | Planned Units | 296 | | Completion Date | 1Q 2025 | | % of Planned Units Delivered | 100% | | Occupancy % | 31.8% | | Leased % | 36.8% | | Projected Stabilization date | 3Q 2026 | [Investments in Unconsolidated Real Estate Entities (Joint Ventures)](index=22&type=section&id=Investments%20in%20Unconsolidated%20Real%20Estate%20Entities%20%28Joint%20Ventures%29) IRT has investments in five unconsolidated real estate entities. Metropolis at Innsbrook was sold in July 2025, yielding $31.1 million in proceeds and an expected $10.4 million gain in Q3 2025. The joint venture partner for Views of Music City II intends to redeem IRT's investment, including a $3.5 million preferred return, in Q3 2025 - Metropolis at Innsbrook (402 units) was sold on July 21, 2025, generating **$31.1 million** in proceeds, with an expected gain of approximately **$10.4 million** in Q3 2025[67](index=67&type=chunk) - The joint venture partner for Views of Music City II (209 units) intends to redeem IRT's investment, including approximately **$3.5 million** in preferred return, in Q3 2025[68](index=68&type=chunk) - Lakeline Station (Austin, TX, 378 units) is expected to deliver in Q3 2025, with IRT holding a **90.0% equity interest**[67](index=67&type=chunk) [Debt Summary & Credit Metrics](index=23&type=section&id=Debt%20Summary) This section provides a detailed overview of IRT's debt portfolio, including types, rates, maturities, and compliance with key credit covenants [Debt Summary as of June 30, 2025](index=23&type=section&id=Debt%20Summary%20as%20of%20June%2030%2C%202025) IRT's debt portfolio as of June 30, 2025, consisted of unsecured revolver, unsecured term loans, secured credit facilities, mortgages, and unsecured notes, totaling $2.24 billion in principal. The weighted average effective rate was 4.2% with a 3.4-year maturity Debt Summary as of June 30, 2025 (Dollars in thousands) | Debt Type | Amount | Weighted Average Effective Rate (a) | Type | Weighted Average Maturity (in years) | | :-------------------------- | :------------- | :---------------------------------- | :----- | :----------------------------------- | | Unsecured revolver | $214,892 | 4.8% | Floating | 3.5 | | Unsecured term loans | $600,000 | 3.6% | Floating | 2.0 | | Secured credit facilities | $585,635 | 4.4% | Fixed | 3.4 | | Mortgages | $686,370 | 4.0% | Fixed | 3.4 | | Unsecured notes | $150,000 | 5.6% | Fixed | 7.8 | | **Total Principal** | **$2,236,897** | **4.2%** | | **3.4** | - Credit Ratings: **Fitch BBB (Stable)** and **S&P BBB (Stable)**[71](index=71&type=chunk) Interest Rate Hedges as of June 30, 2025 (Dollars in thousands) | Hedge Type | Notional | Start Date | End Date | Swap Rate | Floor Rate | Cap Rate | | :--------- | :------- | :--------- | :------- | :-------- | :--------- | :------- | | Swap | $150,000 | 6/17/2021 | 6/17/2026 | 2.18% | — | — | | Swap | $150,000 | 5/17/2022 | 5/17/2027 | 0.99% | — | — | | Swap | $200,000 | 3/17/2023 | 3/17/2030 | 3.39% | — | — | | Collar | $100,000 | 1/17/2024 | 1/17/2028 | — | 1.50% | 2.50% | | Collar | $100,000 | 11/17/2024 | 1/17/2028 | — | 1.50% | 2.50% | | Swap | $100,000 | 3/17/2025 | 3/17/2026 | 3.96% | — | — | [Debt & Credit Metrics](index=24&type=section&id=Debt%20%26%20Credit%20Metrics) IRT is in compliance with all debt covenants, with a consolidated leverage ratio of 31.3% (vs. ≤ 60% requirement) and a consolidated fixed charge coverage ratio of 3.4x (vs. ≥ 1.5x requirement). Unencumbered assets represent 65.8% of total units and 59.5% of gross real estate assets Debt Covenant Summary (as of June 30, 2025) | Covenant | Requirement | Actual | Compliance | | :-------------------------------- | :---------- | :----- | :--------- | | Consolidated leverage ratio | ≤ 60% | 31.3% | Yes | | Consolidated fixed charge coverage ratio | ≥ 1.5x | 3.4x | Yes | | Unsecured leverage ratio | ≤ 60% | 29.9% | Yes | Encumbered & Unencumbered Statistics (as of June 30, 2025) | Asset Type | Total Units | % of Total Units | Gross Real Assets ($ thousands) | % of Total Gross Assets | Q2 2025 NOI ($ thousands) | % of Total NOI | | :---------------- | :---------- | :--------------- | :------------------------------ | :---------------------- | :------------------------ | :------------- | | Unencumbered assets | 21,824 | 65.8% | $3,847,738 | 59.5% | $66,189 | 65.5% | | Encumbered assets | 11,351 | 34.2% | $2,623,664 | 40.5% | $34,825 | 34.5% | | **Total** | **33,175** | **100.0%** | **$6,471,402** | **100.0%** | **$101,014** | **100.0%** | [Non-GAAP Financial Measures and Definitions](index=25&type=section&id=Definitions) This section defines key non-GAAP financial measures used in the report, such as EBITDA, FFO, CFFO, NOI, and ROI, with relevant reconciliations [Key Non-GAAP Financial Measures](index=25&type=section&id=Key%20Non-GAAP%20Financial%20Measures) This section provides definitions for various non-GAAP financial measures used in the report, including EBITDA, Adjusted EBITDA, FFO, CFFO, NOI, Net Debt, and ROI, along with their respective reconciliations to GAAP measures where applicable - **EBITDA and Adjusted EBITDA:** Non-GAAP measures used to evaluate performance by excluding interest, income taxes, depreciation, amortization, and other non-cash/non-operating gains/losses[86](index=86&type=chunk) - **FFO and CFFO:** Non-GAAP measures of REIT operating performance, with FFO following NAREIT standards and CFFO further adjusting FFO for items not reflecting ongoing property operations[87](index=87&type=chunk)[88](index=88&type=chunk) - **Net Operating Income (NOI):** A non-GAAP measure defined as total property revenues less total property operating expenses, excluding corporate-level expenses and non-property related items, used to evaluate core property performance[93](index=93&type=chunk) Reconciliation of Net Income (Loss) to NOI (Dollars in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (loss) | $8,172 | $8,526 | $(1,100) | $12,620 | $10,555 | | Other revenue | (297) | (338) | (346) | (275) | (298) | | Property management expenses | 7,715 | 7,826 | 7,379 | 7,379 | 7,666 | | General and administrative expenses | 5,982 | 8,406 | 4,856 | 4,765 | 6,244 | | Depreciation and amortization expense | 59,794 | 58,725 | 57,742 | 55,261 | 54,127 | | Casualty losses (gains), net | 255 | (115) | (80) | 1,249 | 465 | | Interest expense | 18,773 | 19,348 | 19,770 | $18,308 | $17,460 | | (Gain on sale) loss on impairment of real estate assets, net | — | (1,496) | 20,928 | (688) | 152 | | Loss on extinguishment of debt | — | 67 | 2 | — | — | | Other loss | — | 103 | — | — | — | | Loss (income) from investments in unconsolidated real estate entities | 562 | 590 | (2,729) | 703 | 850 | | **NOI** | **$100,956** | **$101,642** | **$106,422** | **$99,322** | **$97,221** | | Less: Non same-store portfolio NOI | 8,489 | 8,878 | 8,778 | 6,482 | 6,603 | | **Same-store portfolio NOI** | **$92,467** | **$92,764** | **$97,644** | **$92,840** | **$90,618** | - **Same-Store Portfolio:** Properties owned and not a development property at the beginning of the previous year, excluding those held for sale or sold[97](index=97&type=chunk) - **Return on Investment ("ROI") on Value Add Renovations:** Calculated using the Rent Premium per unit per month, multiplied by 12, divided by the interior or total renovation costs per unit, to measure project profitability[100](index=100&type=chunk) [Other Corporate Information](index=9&type=section&id=Other%20Corporate%20Information) This section provides details on the upcoming conference call, availability of supplemental information, and a brief overview of Independence Realty Trust, Inc [Conference Call](index=9&type=section&id=Conference%20Call) Details for the live conference call webcast on July 31, 2025, at 9:00 AM ET, and replay access information are provided - Live conference call webcast scheduled for **9:00 AM ET on Thursday, July 31, 2025**, accessible from www.irtliving.com or by dialing 1.888.440.3307 (access code 1963990)[33](index=33&type=chunk) - A replay of the conference call will be available shortly after the live call on the investor relations section of IRT's website and telephonically until Thursday, August 7, 2025[33](index=33&type=chunk) [Supplemental Information](index=9&type=section&id=Supplemental%20Information) Supplemental information, including portfolio performance, financial data, and non-GAAP measures, is available on the company's investor relations website - Supplemental information, including details regarding portfolio performance, financial information, and non-GAAP financial measures, is available via www.irtliving.com through the 'Investor Relations' section[34](index=34&type=chunk) [About Independence Realty Trust, Inc.](index=9&type=section&id=About%20Independence%20Realty%20Trust%2C%20Inc.) Independence Realty Trust, Inc. (IRT) is an S&P 400 MidCap REIT that owns and operates multifamily communities in non-gateway U.S. markets, aiming to provide attractive risk-adjusted returns to shareholders - Independence Realty Trust, Inc. (NYSE: IRT) is an **S&P 400 MidCap Company**, operating as a real estate investment trust (REIT) that owns and operates multifamily communities across non-gateway U.S. markets[35](index=35&type=chunk) - IRT's main objective is to provide attractive risk-adjusted returns to shareholders through diligent portfolio management, strong operational performance, and consistent return on capital through distributions and capital appreciation[35](index=35&type=chunk)

Investment Highlights - IRT's 5-Year Total Shareholder Return (TSR) is 136% and 10-Year TSR is 277%[9] - Value-Add program has an average ROI of 16.6% on approximately 9,700 completed renovations, boosting Same-Store NOI by 20%[10] - The future pipeline of approximately 13,000 units represents $39-$40 million of incremental NOI and approximately $500 million of future shareholder value[10] - IRT has approximately $750 million of liquidity to fund growth[9] Portfolio Overview - IRT owns and operates 113 communities with 33,175 units[12] - Sunbelt exposure accounts for 73% of NOI[12] - Q1 2025 average occupancy was 95.4%, a 100 basis point increase compared to Q1 2024[12] - Gross assets are valued at $6.2 billion[12] Recent Updates - Q1 2025 Core FFO per share was $0.27[15] - Same-Store Portfolio Results showed a 2.3% revenue Y/Y growth, 1.6% operating expense Y/Y growth, and 2.7% NOI Y/Y growth[15] - Q2 2025 blended rental rate growth is expected to be between 0.5% and 0.9%[16] - Property insurance renewal on May 15, 2025, realized a 20% decrease in premium[16] Growth Drivers - Value-Add renovations boost baseline NOI, driving approximately 20% outsized growth[28] - Home ownership costs are on average 90% higher than IRT's rent in the top 10 markets[65] - IRT's rent is approximately $615 per month, or 36% lower than new construction suburban rents[71]

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]