IRT(US:IRT)2023-04-28 20:06Property Portfolio and Operations - As of March 31, 2023, the company owned and operated 119 multifamily apartment properties with a total of 35,249 units[103] - The total gross real estate assets amounted to $6,648.9 million, with an average occupancy rate of 94.1% across the portfolio[106] - The company focuses on acquiring properties in non-gateway cities with strong and stable occupancies to support rental rate increases[104] - The average effective monthly rent per unit across the portfolio was $1,535, with the highest average rent in Dallas, TX at $1,783[106] Financial Performance - Rental and other property revenue increased by $11.2 million to $161.1 million for the three months ended March 31, 2023, compared to $150.0 million for the same period in 2022, primarily due to a 10.8% increase in average effective monthly rents[116] - Net operating income increased by $7.5 million to $99.3 million for the three months ended March 31, 2023, representing an 8.2% increase compared to $91.8 million in the prior year[116] - Net income for the three months ended March 31, 2023, was $8,872,000, a decrease of 88.5% compared to $76,880,000 for the same period in 2022[131] - Funds From Operations (FFO) for Q1 2023 was $62,263,000, representing a slight increase of 3.6% from $60,111,000 in Q1 2022[128] - Core Funds From Operations (CFFO) for Q1 2023 was $62,493,000, up 8.8% from $57,710,000 in Q1 2022[128] - Same-store portfolio Net Operating Income (NOI) increased by 8.2% to $99,303,000 in Q1 2023 from $91,766,000 in Q1 2022[132] - Rental and other property revenue rose by 7.5% to $156,813,000 in Q1 2023 compared to $145,826,000 in Q1 2022[132] Expenses and Costs - Property operating expenses rose by $3.4 million to $59.3 million for the three months ended March 31, 2023, from $55.9 million in the same period of 2022, mainly due to increased repairs and maintenance[117] - Interest expense increased by $1.6 million to $22.1 million for the three months ended March 31, 2023, primarily due to higher interest rates affecting variable rate loans[122] - General and administrative expenses increased by $0.2 million to $8.2 million for the three months ended March 31, 2023, primarily due to inflationary pressures[119] - Property management expenses increased by $0.8 million to $6.4 million for the three months ended March 31, 2023, driven by inflationary pressures on salaries and IT services[118] - Total property operating expenses increased by 6.4% to $57,510,000 in Q1 2023 from $54,060,000 in Q1 2022[132] Investments and Sales - During the three months ended March 31, 2023, the company sold one multifamily apartment community for a gross sales price of $37.3 million, recognizing a gain on sale of $1.0 million[107] - The company had investments in unconsolidated real estate of $92.9 million as of March 31, 2023, up from $80.2 million at the end of 2022[109] - The company recognized $0.8 million in losses from investments in unconsolidated real estate entities during the three months ended March 31, 2023[121] - The gain on the sale of real estate assets was $1.0 million for the three months ended March 31, 2023, compared to $94.7 million from four properties sold in the same period of 2022[123] Cash Flow and Liquidity - Cash flow provided by operating activities was $46,911,000 in Q1 2023, an increase from $40,580,000 in Q1 2022[136] - Cash and cash equivalents, and restricted cash at the end of Q1 2023 were approximately $34.8 million, down from $50.8 million at the end of Q1 2022[136] - The company plans to meet liquidity requirements through cash balances of $12.4 million as of March 31, 2023, and financing arrangements[135] Renovations and Improvements - The company completed renovations on 635 units in Q1 2023, achieving a return on investment of 19.1% since the inception of the value add program in January 2018[111] Interest Rate and Financial Instruments - A new interest rate swap contract was entered into on March 16, 2023, with a notional value of $200 million and a strike rate of 3.39%[112] Company Strategy and Market Focus - The company aims to maximize stockholder value through diligent portfolio management and strong operational performance[104] - The company has no foreign operations and its business is not seasonal, focusing solely on the U.S. market[103]