IRT(US:IRT)2021-07-26 20:17Property Portfolio - As of June 30, 2021, the company owned and operated 58 multifamily apartment properties with a total of 16,261 units, and the gross real estate assets amounted to $2,069.716 million[99] - The same-store portfolio consisted of 53 multifamily apartment properties totaling 14,843 units as of June 30, 2021[99] - The number of units in non-same store properties increased by 456 to 1,418, representing a 47.4% increase year-over-year[111] Occupancy and Rental Performance - The overall occupancy rate across the portfolio was 95.6%, with the average effective monthly rent per unit at $1,171[99] - Average occupancy for same store properties improved to 96.1% in Q2 2021, up from 93.1% in Q2 2020, reflecting a 3.0% increase[111] - Average effective monthly rent per unit for same store properties increased by $43 to $1,146, reflecting a 3.9% increase compared to the prior year[111] - Rental and other property revenue increased by $5.2 million to $57.3 million for the three months ended June 30, 2021, compared to $52.1 million for the same period in 2020, driven by a 3.9% increase in average effective monthly rents and a 300-basis point increase in average occupancy[112] - Same-store rental and other property revenue increased by 8.5% to $52.819 million for the three months ended June 30, 2021, compared to $48.703 million for the same period in 2020[135] Financial Performance - Net Operating Income for the three months ended June 30, 2021, was $34.988 million, representing a 12.5% increase from $31.113 million in the same period of 2020[111] - Net income available to common shares for the three months ended June 30, 2021, was $3.386 million, a significant increase of 329.2% from $0.789 million in the same period of 2020[111] - Funds From Operations (FFO) for the six months ended June 30, 2021, was $37.655 million, or $0.37 per share, compared to $30.306 million, or $0.32 per share, for the same period in 2020, reflecting a significant increase[132] - Core Funds From Operations (CFFO) for the six months ended June 30, 2021, was $38.174 million, or $0.37 per share, compared to $31.025 million, or $0.33 per share, for the same period in 2020[132] Expenses and Costs - General and administrative expenses rose by $0.7 million to $4.2 million for the three months ended June 30, 2021, primarily due to increased compensation and corporate office expenses[115] - Property operating expenses increased by $2.5 million to $43.1 million for the six months ended June 30, 2021, primarily due to increased repairs and maintenance[113] - General and administrative expenses rose by $1.2 million to $10.2 million for the six months ended June 30, 2021, from $9.0 million in the same period of 2020, mainly due to a $1.0 million increase in compensation expenses[124] - Depreciation and amortization expense increased by $3.2 million to $33.3 million for the six months ended June 30, 2021, compared to $30.1 million for the same period in 2020[125] Debt and Financing - A new unsecured credit facility of $550 million was established, including a $200 million senior term loan, with a maturity date of May 18, 2026[109] - The company sold 2.9 million shares under its ATM program for total proceeds of $41.7 million, settling all associated forward contracts on June 29, 2021[110] - Cash inflows from financing activities for the six months ended June 30, 2021 were $123.820 million, significantly higher than $37.077 million in 2020, driven by a $200.0 million unsecured term loan[140] Cash Flow and Liquidity - Cash flow from operating activities for the six months ended June 30, 2021 was $43.252 million, an increase of 26% from $34.339 million in 2020[138] - The company reported a net change in cash and cash equivalents of $392 thousand for the six months ended June 30, 2021, compared to $3.728 million in 2020[138] - As of June 30, 2021, the company maintained cash and cash equivalents of approximately $14.0 million, down from $18.2 million in 2020[138] - The company believes its available cash balances and cash flows from operations will be sufficient to meet liquidity requirements for the next twelve months[136] Strategic Initiatives - A merger agreement was entered into on July 26, 2021, with Steadfast Apartment REIT, expected to close in Q4 2021, involving the exchange of approximately 99.8 million shares of IRT common stock[100][104] - The company purchased two properties in May and June 2021 for $66.5 million and $73.4 million, respectively, as part of its capital recycling program[105] - An initial investment of $10.2 million was made in a joint venture to develop a 402-unit community in Richmond, VA, with total expected contributions of $16.4 million[106] - The company aims to maximize stockholder value through diligent portfolio management and strategic acquisitions in non-gateway U.S. markets[98] Accounting and Risk Management - There were no off-balance sheet arrangements during the six months ended June 30, 2021 that materially affected the company's financial condition[142] - There were no material changes in critical accounting estimates and policies since the filing of the 2020 Annual Report[143] - The company reported no material changes in qualitative and quantitative market risks during the six months ended June 30, 2021[144]