IRT(US:IRT)2024-04-24 20:06Financial Performance - Net income available to common shares for Q1 2024 was $17.6 million, compared to $8.6 million in Q1 2023, representing a significant increase [15]. - Earnings per diluted share for Q1 2024 were $0.08, up from $0.04 in Q1 2023 [15]. - Total revenue for the three months ended March 31, 2024, was $160,534 thousand, a decrease from $167,046 thousand in the previous quarter, reflecting a decline of approximately 4.5% [51]. - Net income available to common shares for the three months ended March 31, 2024, was $17,577 thousand, compared to a loss of $40,515 thousand in the previous quarter [51]. - Funds From Operations (FFO) for the three months ended March 31, 2024, was $62,340 thousand, down from $71,984 thousand in the previous quarter, a decrease of about 13.4% [51]. - Core Funds From Operations (CFFO) for the three months ended March 31, 2024, was $61,454 thousand, compared to $68,749 thousand in the previous quarter, a decline of approximately 10.5% [51]. - The company reported earnings per share of $0.08 for the three months ended March 31, 2024, compared to a loss per share of $(0.18) in the previous quarter [51]. - Total revenue for Q1 2024 was $160.534 million, a decrease of 0.5% from $161.374 million in Q1 2023 [52]. - Net income available to common shares increased to $17.577 million in Q1 2024, compared to $8.648 million in Q1 2023, representing a growth of 103.5% [52]. Operational Metrics - Same-store revenue increased by 3.4% in Q1 2024, with average occupancy improving by 120 basis points year-over-year to 94.4% [14]. - The average rental rate for the same-store portfolio increased by 1.5% to $1,551 in Q1 2024 [16]. - Average occupancy rate improved to 94.4% in Q1 2024, up from 93.2% in Q1 2023 [60]. - Total property operating expenses rose to $59.971 million in Q1 2024, compared to $59.255 million in Q1 2023, an increase of 1.2% [52]. - Same-store portfolio net operating income (NOI) for Q1 2024 was $94.371 million, a 2.4% increase from $92.137 million in Q1 2023 [60]. - Total net operating income (NOI) for the portfolio was $96,381,000, with an average effective monthly rent of $1,550 and an overall occupancy rate of 95.0% as of March 31, 2024 [63]. Guidance and Projections - The company confirmed its 2024 EPS guidance range of $0.34 to $0.38 per diluted share [29]. - 2024 full year EPS guidance is revised to a range of $0.34 to $0.38, down from the previous range of $0.40 to $0.44, reflecting a midpoint change of $(0.06) [30]. - CFFO per share guidance remains unchanged at $1.12 to $1.16, with no adjustments to depreciation and amortization or loan discount amortization [30]. - Property revenue growth is projected to remain stable at 3.0% to 4.5%, while controllable operating expense growth is also unchanged at 4.9% to 5.9% [34]. - Acquisition volume guidance has been updated to $0 million to $40 million, indicating a potential increase of $20 million from previous expectations [34]. - Disposition volume is projected to be between $392 million and $396 million, an increase of $70 million from the previous estimate of $324 million [34]. Debt and Liquidity - The company disposed of nine properties for a total gross sales price of $496.8 million, using proceeds to repay $488.9 million of debt, enhancing liquidity to $412 million as of March 31, 2024 [15][21]. - Total debt decreased to $2,277.1 million from $2,549.4 million, resulting in a total debt to total gross assets ratio of 34.1% [46]. - As of March 31, 2024, total assets decreased to $5,972,848 thousand from $6,280,175 thousand as of December 31, 2023, representing a decline of approximately 4.9% [50]. - Total liabilities decreased to $2,413,745 thousand as of March 31, 2024, down from $2,712,981 thousand as of December 31, 2023, a reduction of about 11% [50]. - As of March 31, 2024, the total consolidated debt is $2.277 billion, with a weighted average contractual rate of 4.8% [78]. - The company maintains a consolidated leverage ratio of 32.0%, well below the 60% requirement, indicating strong compliance with debt covenants [84]. Market Performance - The Atlanta market reported a revenue increase of 0.6% to $23.823 million, with net operating income rising by 9.3% to $9.189 million [62]. - Dallas market revenue grew by 3.3% to $21.916 million, while net operating income increased by 8.0% to $13.398 million [62]. - Columbus, OH, saw a revenue increase of 6.6% to $10.906 million, with net operating income up by 4.2% to $6.894 million [62]. - The Denver market experienced a slight revenue decline of 0.7% to $7.439 million, with net operating income decreasing by 0.7% to $7.489 million [62]. - The Nashville market reported a revenue increase of 6.6% to $7.449 million, with net operating income rising by 6.6% to $6.985 million [62]. Renovation and Development - The value add program completed renovations on 320 units in Q1 2024, achieving a weighted average return on investment of 18.0% [22]. - The ongoing renovation projects across various markets have an average rent premium of $271, representing a 21.4% increase in rent [66]. - Future value-add projects are underway in Atlanta, Dallas, and Denver, with additional projects expected to begin in Lexington and Oklahoma City in Q2 and Q3 2024 [68]. - Destination at Arista has 325 planned units with a projected completion date of Q4 2023 and 73.5% of planned units delivered as of March 31, 2024 [72]. - Flatirons Apartments has 296 planned units with a projected completion date of Q4 2024 and 0% of planned units delivered as of March 31, 2024 [72].