IRT(US:IRT)2021-04-30 20:30Property Portfolio - As of March 31, 2021, the company owned and operated 56 multifamily apartment properties with a total of 15,667 units[82] - The overall occupancy rate across the portfolio was 95.5%, with the highest occupancy in Huntsville, AL at 98.0%[86] - The number of properties in the consolidated portfolio decreased by 3.4% from 58 to 56, with a total of 15,667 units, reflecting a slight decline of 0.9% from the previous year[92] Financial Performance - Consolidated rental and other property revenue increased by $3.6 million to $54.8 million for the three months ended March 31, 2021, compared to $51.2 million for the same period in 2020, primarily due to a 2.6% increase in average occupancy and a 2.9% increase in average effective monthly rents[93] - Net Operating Income (NOI) for the consolidated portfolio rose to $33.973 million, an increase of 8.1% from $31.419 million in the prior year, driven by a significant increase in non-same store properties' NOI by 88.2%[92] - Funds From Operations (FFO) increased to $17.565 million, or $0.17 per share, compared to $14.351 million, or $0.16 per share, in the prior year[104] - Core Funds From Operations (CFFO) rose to $18.004 million, or $0.18 per share, from $14.584 million, or $0.16 per share, in the same period last year[104] - Rental and other property revenue increased by 5.6% to $51.878 million in Q1 2021 from $49.121 million in Q1 2020[108] - Net operating income rose by 5.3% to $31.923 million in Q1 2021 compared to $30.330 million in Q1 2020[108] - Cash flow from operating activities increased significantly to $20.638 million in Q1 2021 from $11.684 million in Q1 2020[110] Occupancy and Rent - The average effective monthly rent across the portfolio was $1,142, with the highest average rent in Orlando, FL at $1,438[86] - Average occupancy across the consolidated portfolio improved to 95.4%, up 2.8% from 92.5% in the previous year, with same store properties achieving an average occupancy of 95.3%[92] - Average occupancy improved to 95.3% in Q1 2021, up from 92.7% in Q1 2020, reflecting a 2.6% increase[108] Renovation and Value Add Initiatives - The company incurred $13.0 million in renovation costs for 3,861 units, achieving a return of 16.1% on total renovation costs[89] - The company has identified 7,076 units across 23 properties for renovations as part of its value add initiative[89] Expenses and Costs - Property operating expenses increased by $1.1 million to $20.8 million, primarily due to a $1.2 million rise in same store property operating expenses attributed to higher real estate taxes and property insurance[94] - General and administrative expenses increased by $0.5 million to $5.9 million, mainly due to a $0.6 million rise in stock-based compensation expenses driven by a higher stock price[96] - Interest expense decreased by $1.1 million to $8.4 million, reflecting lower interest rates compared to the same period in the previous year[98] - Total property operating expenses rose by 6.2% to $19.955 million in Q1 2021 from $18.791 million in Q1 2020[108] - Interest expense decreased to $8.385 million in Q1 2021 from $9.497 million in Q1 2020, indicating improved financing costs[108] Liquidity and Financial Strategy - The company maintained liquidity through cash flows from operations and financing arrangements, ensuring sufficient funds for the next twelve months[109] - The company plans to distribute a minimum of 90% of its REIT taxable income to maintain its REIT qualification[112] Deferred Payment Plans - The company entered into 278 deferred payment plans during 2020, deferring $0.5 million in rent payments, with 104 active plans remaining as of March 31, 2021[88] Casualty Losses - Casualty losses amounted to $0.4 million due to severe snowstorms affecting properties in Texas and Oklahoma during the quarter[98] Stock and Equity - The company has an equity distribution agreement allowing for the sale of up to $150.0 million in common stock under its ATM Program[90] - During the three months ended March 31, 2021, the company sold 2,000 shares at a forward price of $14.50, generating net proceeds of $29,000[91] - The company focuses on acquiring properties with strong and stable occupancies to support rental rate increases[84] - The company aims to maximize stockholder value through diligent portfolio management and strong operational performance[83]