IRT(US:IRT)2025-04-30 20:05Financial 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].