Independence Realty Trust, Inc. · NYSE:IRT
Independence Realty Trust — Investor Presentation (November 2017)
21 slides from Independence Realty Trust's investor presentation, Nov 13, 2017
Slide 1: Investor Presentation November 2017
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Slide 2: Positioned to Unlock Long-term Value
Positioned to Unlock Long-term Value Clear investment strategy focused on middle-market communities across non-gateway MSAs Accretive, tenant-first approach to owning and operating high-quality multifamily communities Value-add community redevelopment and capital recycling initiatives Simple, conser
Slide 3: Key Transformational Moments
Key Transformational Moments Aug 2013 IPO on NYSE MKT, raising $34mm of proceeds Proceeds used to redeem Series A preferred stock and Series B preferred OP units and to fund property acquisitions Full Year Raised $67mm, $77mm, and $58mm of proceeds in three follow-on offerings throughout 2014 Procee
Slide 4: Clear Investment and Ownership Strategy
Clear Investment and Ownership Strategy Assets Our Focus: Well-located middle-market communities, likely to benefit from IRT’s: Robust management platform Operational expertise Economies of scale Markets Our Focus: Targeted Submarkets within Non-Gateway Markets exhibiting: Strong apartment demand Li
Slide 5: Population growth in IRT's markets is above the national average
Population growth in IRT’s markets is above the national average and is growing faster than new supply, creating increased demand for existing apartment units. Migration Outpacing New Supply Projected Net Migration / Projected Completions Population Growing at a Higher Rate in IRT’s Markets Represen
Slide 6: Job growth in IRT's markets is in line with the national average
Job growth in IRT’s markets is in line with the national average and is growing faster than new supply, creating increased demand for existing apartment units. Job Growth Outpacing New Supply Employment Growing at a Higher Rate in IRT’s Markets Projected Jobs / Projected Completions Represents the n
Slide 7: Our Assets Demonstrate Attractive Apartment Industry Dynamics
Low Homeownership Limited New Supply The national Class B vacancy rate remains close to historic lows Class B vacancy continues to decline, notwithstanding an increase in apartment completions across the broader apartment market The majority of new supply remains concentrated in primary markets Sour
Slide 8: Recent Opportunistic Portfolio Acquisition
Property Name Market State Built / Renovated Units Period End Occupancy1 Avg. Effective Rent/Unit2 Close Date Kensington Commons Columbus OH 2004 264 97.7% $852 9/26/2017 Schirm Farms Columbus OH 2002 264 97.3% $831 9/26/2017 Riverchase Apts Indianapolis IN 2000 216 95.8% $800 9/26/2017 Cherry Grove
Slide 9: Value Accretive Portfolio Transformation
Value Accretive Portfolio Transformation Source: Company filings and CoStar. For all owned properties as of 9/30/2017 and pro forma for all acquisitions through 9/30/2017. Excludes the Crossings at Ridgewood, which is held for sale.. Midpoint of full year 2017 guidance as of 9/30/2017 2 At IPO (Augu
Slide 10: Scale & regional strategy drive long-term margin accretion
Scale & regional strategy drive long-term margin accretion Portfolio Scale and Management Platform Deliver Operational Excellence Portfolio Acquisition Properties Existing IRT Properties New/Increased Economies of Scale (Columbus, Indianapolis, Carolinas) For all owned properties as of 9/30/2017 and
Slide 11: Executing on Capital Recycling Initiatives in 2017
Executing on Capital Recycling Initiatives in 2017 Track record of improving portfolio quality with dispositions: Upgraded portfolio by disposing Class C Assets, using proceeds to acquire Class B Assets Lowered exposure to capital intensive communities while increasing our average effective monthly
Slide 12: Communities Acquired Through Capital Recycling
Communities Acquired Through Capital Recycling Lakes at Northdale | Tampa, FL Acquired for $29.8 million 216 units 94.0% period end occupancy Located in a A-rated school system Limited construction with additions at or below 3% of existing inventory over the past 5 years Easy access to Tampa’s major
Slide 13: Value-Add Opportunity Organically Drives Value
We define value-add as any investment that will result in an ability to increase rents or provide a meaningful reduction in costs. Value-Add Opportunity Organically Drives Value $ Before After OPPORTUNITY SCOPE RESULTS Approximately 4,300 units identified for redevelopment across 14 properties creat
Slide 14: Driving Organic Growth
Driving Organic Growth Low risk redevelopment with potential for immediate value creation per unit Estimated Incremental Value Created for Shareholders: 1 Source: Reflects all acquisitions in 2017 for a FY, including pro forma NOI from the recent nine-community portfolio acquisition. Excludes all as
Slide 15: Simple Capital Structure
3Q is calculated based on IRT’s capitalization as of 9/30/17 and the recent equity offering that closed on 9/12/2017, including the overallotment option that was exercised by the underwriters. Adjusted EBITDA as of 3Q 2017, annualized, and pro forma for acquisitions and dispositions that occurred du
Slide 16: How IRT Unlocks Long-term Value
How IRT Unlocks Long-term Value Clear investment strategy focused on middle-market communities across non-gateway MSAs Accretive, tenant-first approach to owning and operating high-quality multifamily communities Value-add community redevelopment and capital recycling initiatives Simple, conservativ
Slide 17: Appendix
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Slide 18: Proforma Portfolio Metrics
Proforma Portfolio Metrics Footnotes: Average Monthly Effective Rent per Occupied Unit of all properties owned by IRT, excluding Crossings at Ridgewood which is HFS. HPI properties pending closing utilize Effective Rents In Place. Excludes Live Oak Trace as that property was undergoing renovation fr
Slide 19: Definitions
Definitions Average Effective Monthly Rent per Unit Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metri
Slide 20: Definitions
Definitions Interest Coverage Interest coverage is a ratio computed by dividing our Adjusted EBITDA by our interest expense. Net Debt Net debt, a non-GAAP measure, equals total debt less cash and cash equivalents. The following table provides a reconciliation of total debt to net debt. IRT presents
Slide 21: Forward-looking statements
This presentation may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections ab
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