IRT(US:IRT)2025-10-30 20:16Real Estate Portfolio - As of September 30, 2025, the company owned and operated 115 multifamily apartment properties with a total of 33,818 units[114] - The company sold a multifamily apartment community in Birmingham, AL for a gross sales price of $111.0 million on February 14, 2025[119] - The company acquired three multifamily apartment communities in Orlando, FL for a total of $155.0 million, increasing its unit count in the area from 617 to 1,260[121] - The company is developing a multifamily project with 318 units just outside Indianapolis, IN, with a committed investment of $20.0 million[125] - As of September 30, 2025, the company owned and consolidated 115 multifamily apartment properties, with 105 in the Same-Store Portfolio[138] Financial Performance - Rental and other property revenue for the three months ended September 30, 2025, was $166.888 million, a 4.4% increase from $159.860 million in the same period of 2024[139] - Net operating income for the Same-Store Portfolio increased by 2.7% to $95.390 million compared to $92.840 million in the prior year[139] - Net income available to common shares for the three months ended September 30, 2025, was $6.893 million, a decrease of 44.3% from $12.365 million in the same period of 2024[139] - Funds from Operations (FFO) for the nine months ended September 30, 2025, was $206.5 million, representing an increase from $195.8 million in the same period of 2024[165] - Core Funds from Operations (CFFO) for the nine months ended September 30, 2025, was $200.9 million, compared to $191.9 million for the same period in 2024[165] Revenue and Expenses - Average effective monthly rent per unit in the Same-Store Portfolio increased by 0.6% to $1,581 from $1,571 in the same period of 2024[139] - Property operating expenses rose by $1.2 million to $61.7 million for the three months ended September 30, 2025, primarily due to a $1.6 million increase in non same-store operating expenses[142] - Depreciation and amortization expense increased by $6.5 million to $61.7 million for the three months ended September 30, 2025, attributed to capital expenditures related to the Value Add Initiative and higher intangible asset amortization from recent acquisitions[144] - Interest expense increased by $2.1 million to $20.5 million for the three months ended September 30, 2025, driven by a higher average outstanding consolidated debt balance and an increase in the effective interest rate to 4.3%[146] Impairment and Gains - The company recognized a loss on impairment of $12.8 million on a property held for sale in Denver, CO, with expectations for the sale to close in 2026[120] - For the nine months ended September 30, 2025, the company recorded an impairment loss of $12.8 million on one property held for sale, partially offset by a gain of $1.5 million from the sale of a multi-family property[159] - The loss on impairment of real estate assets for the three months ended September 30, 2025, was $12.8 million, compared to a gain of $688,000 in 2024[170] Cash Flow and Liquidity - Cash flow provided by operating activities for the nine months ended September 30, 2025, was $221.96 million, up from $196.32 million in 2024, reflecting a $25.6 million increase[178] - Cash and cash equivalents, and restricted cash at the end of Q3 2025 were approximately $50.9 million, compared to $48.2 million at the end of Q3 2024[178] - The company maintained liquidity with cash and cash equivalents of $23.3 million as of September 30, 2025, and plans to meet liquidity requirements through various financing arrangements[177] Financing and Credit Arrangements - The Fifth Amended and Restated Credit Agreement increased the maximum principal amount of the unsecured revolver to $750 million, an increase of $250 million from the previous agreement[131] - The company has the option to increase borrowings under the Fifth Restated Credit Agreement to up to $2.0 billion, subject to certain conditions[132] Renovations and Initiatives - The company completed renovations on 788 units during the three months ended September 30, 2025, achieving a return on investment of 16.2%[130] - The company completed renovations on 10,959 of the 17,381 units targeted in its Value Add Initiative since January 2018[130] Share Transactions - The company physically settled 5.3 million shares at a weighted average price of $19.06 per share, receiving proceeds of $101.0 million, all used for new acquisitions[135] - The company expects to receive approximately $56.0 million from forward sales transactions under the ATM Program, assuming full physical settlement at a forward sales price of $20.90 per share[138]