IRT(US:IRT)2025-05-01 20:08Property 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]