IRT(US:IRT)2024-07-31 20:05Financial Performance - Net income available to common shares for Q2 2024 was $10.4 million, slightly down from $10.7 million in Q2 2023[23] - Core Funds from Operations (CFFO) for Q2 2024 was $63.6 million, compared to $63.7 million in Q2 2023, with CFFO per share remaining at $0.28[23] - Adjusted EBITDA for Q2 2024 was $83.6 million, down from $89.2 million in Q2 2023[23] - Net income available to common shares for the three months ended June 30, 2024, was $10,354,000, a decrease from $17,577,000 for the previous quarter[53] - Earnings per share (diluted) for the same period was $0.05, down from $0.08 in the prior quarter[53] - Total revenue for the quarter ended June 30, 2024, was $158,402 million, a decrease of 1% from $160,534 million in the previous quarter[57] - Net income available to common shares for the quarter was $10,354 million, down from $17,577 million in the prior quarter, reflecting a decline of 41%[57] - Funds From Operations (FFO) increased to $65,246 million from $62,340 million in the previous quarter, representing a growth of 3%[57] - Core Funds From Operations (CFFO) for the quarter was $63,614 million, compared to $61,454 million in the prior quarter, indicating a rise of 4%[57] - Total expenses for the quarter were $129,385 million, a slight decrease from $131,873 million in the previous quarter[57] Revenue and Occupancy - Same-store portfolio net operating income (NOI) grew by 2.8% in Q2 2024 compared to Q2 2023[23] - Average occupancy increased by 120 basis points year-over-year to 95.4% in Q2 2024[25] - Same-store portfolio rental and other property revenue for Q2 2024 was $153,969, a 3.6% increase from $148,645 in Q2 2023[67] - Average occupancy rate improved to 95.4% in Q2 2024, up from 94.2% in Q2 2023[67] - Average effective monthly rent per unit increased to $1,555 in Q2 2024, a 1.6% rise from $1,531 in Q2 2023[67] - Total rental and other revenue for 2024 reached $153.969 billion, up 3.6% from $148.645 billion in 2023[69] - Average occupancy rate improved to 95.4% in 2024, compared to 94.2% in 2023, reflecting a 1.2% increase[69] - Average effective rent per unit rose by 1.6% to $1,553 in 2024, up from $1,529 in 2023[71] Guidance and Projections - The company raised the midpoint of its full-year 2024 same-store NOI, EPS, and Core FFO guidance ranges due to stable occupancy and lower operating expenses[25] - 2024 earnings per diluted share guidance is projected to be in the range of $0.36 to $0.38, with a midpoint increase of $0.01[35][36] - FFO per share guidance is updated to a range of $1.18 to $1.20, reflecting a midpoint increase of $0.01[36] - CFFO per share guidance is now projected to be between $1.14 and $1.16, with a midpoint increase of $0.01[36] - Same-store property revenue growth is revised down to 3.0% to 3.3%, a decrease of 0.6% from previous guidance[40] - Total operating expense growth is now expected to be between 2.6% and 3.4%, a reduction of 2.9% from prior estimates[40] - Acquisition volume guidance has increased significantly to $80 million to $82 million, up from $0 to $40 million[41] - Disposition volume is projected at $395 million, slightly up from the previous range of $392 million to $396 million[41] Capital Expenditures and Investments - Recurring capital expenditures for Q2 2024 were $8.3 million, or $254 per unit, while total value add and non-recurring expenditures were $24.8 million[33] - The value add program completed renovations on 378 units in Q2 2024, achieving a weighted average return on investment of 15.7%[30] - Average monthly rent increase per unit after renovations was $236, with an average cost per unit renovated of $18,067[30] - The company has ongoing renovations across 27 properties, with a total of 8,881 units to be renovated and 4,289 units completed, achieving an average rent premium of 263%[75] - The total return on investment (ROI) for interior costs across all ongoing projects is 18.4%, while the total ROI is 16.5%[75] Debt and Financial Ratios - Total debt decreased to $2,252,559,000 from $2,277,098,000 in the prior quarter[53] - The company reported a total consolidated debt of $2,252,559, with a weighted average contractual rate of 4.8%[82] - The company maintained a consolidated leverage ratio of 31.5%, well below the required maximum of 60%[85] - Total net debt as of June 30, 2024, is $2,194,272, a decrease from $2,216,019 as of March 31, 2024[95] - Interest expense for the three months ended June 30, 2024, was $17,460, down from $22,227 in the same period of 2023, indicating a reduction of 21.5%[62] Market Performance - The company operates 108 properties with a total of 32,153 units, maintaining the same portfolio size[40] - The company reported a total of 110 properties with 32,685 units and gross real estate assets of $6,207,189, resulting in a net operating income (NOI) of $96,591, which accounts for 100% of NOI[73] - The Atlanta, GA market has the highest NOI contribution at $14,632, representing 15.1% of total NOI, with an average rent of $1,609[73] - The Dallas, TX market follows closely with an NOI of $13,213, accounting for 13.7% of total NOI, and an average rent of $1,815[73] - The company is focusing on market expansion and value-add projects to enhance property performance and increase rental income[75]