IRT(IRT) - 2025 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION Item 1. Financial Statements (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 | 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 | 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 | 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 | 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][76][77] - Net issuance of common shares for the six months ended June 30, 2025, contributed $50.01 million to additional paid-in capital[13] Condensed Consolidated Statements of Cash Flows | 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 NOTE 1: Organization - 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] - 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] NOTE 2: Summary of Significant Accounting Policies a. Basis of Presentation - 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] b. Principles of Consolidation - The financial statements consolidate IRT, IROP, and its subsidiaries, with IROP considered a variable interest entity where IRT is the primary beneficiary[20] c. Use of Estimates - The preparation of financial statements requires management to make estimates and assumptions, and actual results could differ from these estimates[21] d. Cash and Cash Equivalents - Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less[22] e. Restricted Cash | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------- | :----------------------------- | :------------------------------- | | Restricted cash | $23,035 | $22,224 | f. Investments in Real Estate [Allocation of Purchase Price of Ac