IRT(US:IRT)2024-10-31 20:15Property Portfolio and Acquisitions - As of September 30, 2024, the company owned and operated 110 multifamily apartment properties with a total of 32,670 units[108]. - The company sold a multifamily apartment community in Birmingham, Alabama for a gross sales price of $70.8 million on July 17, 2024[114]. - On August 13, 2024, the company acquired Gateway at Pinellas in Tampa, Florida, a 288-unit multifamily apartment community for $82.0 million[115]. - The company is under contract to acquire three properties in Charlotte, Orlando, and Columbus for an aggregate purchase price of approximately $184 million[116]. - The Portfolio Optimization and Deleveraging Strategy resulted in the sale of ten properties for an aggregate gross sales price of $525.3 million, with proceeds used to repay $517.1 million of debt[118]. Financial Performance - For the three months ended September 30, 2024, rental and other property revenue decreased by $8.5 million to $159.9 million compared to the same period in 2023[138]. - The company reported a net income of $12.6 million for the three months ended September 30, 2024, compared to $3.9 million in the same period of the previous year[136]. - Net income available to common shares increased to $40.3 million for the nine months ended September 30, 2024, compared to $23.3 million in the prior year[156]. - Funds from Operations (FFO) for the nine months ended September 30, 2024, was $195,842,000, compared to $198,485,000 for the same period in 2023, reflecting a decrease of 0.8%[161]. - Cash Flow from Operations (CFFO) for the three months ended September 30, 2024, was $66,802,000, down from $69,003,000 in the same period of 2023, a decrease of 3.5%[165]. Revenue and Occupancy Trends - The average effective monthly rent per unit across the portfolio was $1,572[112]. - The average effective monthly rent per unit increased by 1.2% to $1,566, while average occupancy rose by 0.9% to 95.4%[135]. - Average effective monthly rent per unit increased by 1.4% to $1,557 for the nine months ended September 30, 2024, while average occupancy improved by 1.1% to 95.1%[146]. - Average occupancy for the reporting period showed a stable trend, indicating consistent demand for rental units[167]. Expenses and Cost Management - Property operating expenses decreased by $2.8 million to $60.5 million for Q3 2024 compared to $63.3 million in Q3 2023, primarily due to the sale of ten properties[139]. - General and administrative expenses increased by $1.1 million to $4.8 million for Q3 2024 from $3.7 million in Q3 2023, mainly due to prior year reversals of stock compensation and bonus expenses[140]. - Interest expense decreased by $3.7 million to $18.3 million for Q3 2024 from $22.0 million in Q3 2023, driven by reduced debt from property sales[142]. - Total property operating expenses for Q3 2024 were $58.815 million, a 2.8% increase from $57.186 million in Q3 2023[169]. Renovations and Value Add Program - The company completed renovations on 578 units during the three months ended September 30, 2024, as part of its value add program[122]. - As of September 30, 2024, the company completed renovations on 9,047 out of 13,281 units in its value add program, achieving a return on investment of 16.9%[123]. Financing Activities - The company completed a public offering of 11.5 million shares at a price of $18.96 per share, which could provide additional proceeds of $216.8 million if settled[124]. - A private placement of $150 million in unsecured notes was executed, with proceeds expected to repay approximately $132 million of maturing property mortgages[126]. - The company entered into forward sale transactions under its ATM program for 1.5 million shares, which could yield additional proceeds of $29.1 million upon settlement[130]. Ratings and Outlook - The company received an investment grade rating of 'BBB' from Fitch Ratings and S&P Global Ratings, indicating a stable outlook[131][132]. Casualty Losses - Casualty losses amounted to $4.0 million for the nine months ended September 30, 2024, due to winter storm damage and fire incidents[152]. - Casualty losses surged by 3,468.6% for the three months ended September 30, 2024, amounting to $1,249,000 compared to $35,000 in the same period of 2023[165].