Independence Realty Trust, Inc. · NYSE:IRT
Independence Realty Trust — Investor Presentation (February 2025)
42 slides from Independence Realty Trust's investor presentation, Feb 28, 2025
Slide 1: Investor Presentation March 2025
INVESTOR PRESENTATION March 2025 Destination at Arista Broomfield, CO
Slide 2: Table of Contents
1 Table of Contents About IRT 2 Investment Highlights 3 Recent Updates • 2025 Guidance • Operating Metrics 4 5 Drivers of Growth • Overview • Internal Growth o Track Record of Performance o Value Add Program o Market Fundamentals • Disciplined Capital Allocation • Flexible Balance Sheet • Strong Cor
Slide 3: About IRT
2 ABOUT IRT OWN AND OPERATE Sunbelt Exposure 73% of NOI 113 Communities 33,615 Units 95.2% 2024 Avg Occupancy +110 basis points vs 2023 PORTFOLIO SUMMARY (1) FY 2024 RESULTS STRATEGIC MILESTONES • Raised $268 million of equity capital to fund accretive growth • Increased scale in three markets by ac
Slide 4: Investment Highlights
3 INVESTMENT HIGHLIGHTS Generating attractive risk-adjusted returns by investing in well-located multifamily apartment communities in desirable, high-growth markets Well-Located Portfolio 73% Sunbelt 21% Midwest 6% Mountain West Simple Business Model Grow CFFO by driving rents and investing accretiv
Slide 5: Recent Updates: 2025 Guidance
4 RECENT UPDATES 2025 Guidance IRT's 2025 guidance reflects strong improvement in fundamentals, setting up for higher growth in NOI and Core FFO per share in 2026 (1) Our guidance constitutes forward-looking information. See “Forward-Looking Statement” at the end of this presentation. For a complete
Slide 6: Recent Updates: Operating Metrics
5 Same-Store Excluding Value Add Same-Store Total (1)Same-Store Value Add O cc up an cy Sa m e- St or e To ta l Le as e ov er Le as e Re nt G ro w th (2 ) New Leases Renewals Blended RECENT UPDATES (1) Q1 25 forecasts are based on actual occupancy and new, renewal, and blended rent growth observed t
Slide 7: Drivers of Growth: Overview
6 DRIVERS OF GROWTH Internal Growth Track record of sector-leading same-store NOI growth augmented by Value Add renovations and supported by stronger expected supply-demand market dynamics than the national average Disciplined Capital Allocation Creating value with Accretive Acquisitions and by Recy
Slide 8: Internal Growth – IRT's Track Record of Performance
7 IRT Non-Gateway Coastal Peer Group 85 90 95 100 105 110 115 120 125 130 135 140 145 150 2019 2020 2021 2022 2023 2024 2025 Mid- Point IRT Non-Gateway Coastal Peer Group Our concentrations of properties in high-demand markets, operational rigor, and Value Add renovations have fueled our sector-lead
Slide 9: Internal Growth – Value Add Program
8 4.9% 2.6% 0.8% 0.6% 2023 2024 3.2% DRIVERS OF GROWTH Internal Growth - Value Add Program ($ in millions) In-Place Program Future Pipeline Total Units to Renovate 13,281 9,381 22,662 Units Renovated-to-Date (9,442) - (9,442) Remaining Units to Renovate 3,839 9,381 13,220 Remaining Renovation Costs
Slide 10: Value Add Case Study: Avalon Oaks
9 DRIVERS OF GROWTH Value Add Case Study: Avalon Oaks Before After Columbus, OH community acquired for $23.0mm in February 2018 § Middle market community with 235 units that at the time of acquisition helped to increase our scale in the Columbus market § Attractive Columbus submarket insulated from
Slide 11: Value Add Case Study: Avalon Oaks—The Economics
10 At Acquisition (2/27/2018) 12/31/2024 Change Revenue (TTM) $2.6mm $4.2mm +57% NOI (TTM) $1.4mm $2.8mm +99% NOI Margin 52.6% 66.4% +1,387 bps Average Effective Monthly Rent $868 $1,417 +63% Achieved outsized value creation § Post renovation community is valued at $47.9mm(1), representing an increa
Slide 12: Internal Growth – Market Fundamentals
11 3.9 x 7.3 x 2.9 x 5.8 x 0.0 x 1.0 x 2.0 x 3.0 x 4.0 x 5.0 x 6.0 x 7.0 x 8.0 x 3 Yr Historical Avg 3 Yr Projected Avg Po pu la tio n- to -N ew S up pl y G ro w th IRT National Average Demand from Growing Population to Strengthen Further(1)(2) • During 2022-2024, IRT's Sunbelt and Midwest markets s
Slide 13: Projected Population-to-Supply Growth in Top 10 Markets
12 3.7 x 4.1 x 4.1 x 4.4 x 4.7 x 6.7 x 6.7 x 6.8 x 6.8 x 7.3 x 8.3 x 13.9 x Mem ph is Nas hv ille Rale igh -D urh am Den ve r Colu mbu s Dall as -Ft . W ort h Ind ian ap oli s IR T: To p 1 0 M ark ets Ta mpa IR T: To tal P ort fol io Atla nta Okla ho ma C ity DRIVERS OF GROWTH • As population growth
Slide 14: Rent vs. Buy Differential Will Support Rental Demand
13 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 Atlanta - GA Columbus - OH Dallas-Fort Worth - TX Denver - CO Indianapolis - IN Memphis - TN Nashville - TN Oklahoma City - OK Raleigh - Durham - NC Tampa - FL IRT Top 10 Markets WAV M on th ly C os t IRT In-Place Monthly Rent
Slide 15: Disciplined Capital Allocation
14 • Since raising $268 million of equity in 2024, we have acquired three communities totaling $217 million • We intend to use the remaining ~$156 million of proceeds to fund the ~$240 million of acquisitions in our 2025 guidance(1) DRIVERS OF GROWTH Disciplined Capital Allocation Recent Property Ac
Slide 16: Disciplined Capital Allocation – Capital Recycling
15 • 354-unit property in Birmingham, Alabama • Gross sale price was $70.8 million • Economic cap rate of 5.7% (1) • 288-unit community in Tampa, Florida • Gross sale price was $82.0 million • Economic cap rate of 5.9% (1) • Recalibrate Market Exposure - Reduced exposure to Birmingham market while i
Slide 17: Flexible Balance Sheet
16 $48 $337 $22 $1,034 $613 $257 2025 2026 2027 2028 2029 Thereafter DRIVERS OF GROWTH Flexible Balance Sheet Simple capital structure and ~$750 million of liquidity to fund growth(1) Conservatively Leveraged Investment Grade Rated Agency Rating Outlook Fitch Ratings BBB Stable S&P Global Ratings BB
Slide 18: Strong Corporate Governance
17 DRIVERS OF GROWTH Strong Corporate Governance Aligned with Shareholder Interests • Majority independent directors • Opted-out of MUTA(1) in 2024 – no classification of Board without shareholder approval • Annual election of directors • Ongoing Board refreshment process • No stockholder rights pla
Slide 19: Why IRT | Why Now: Track Record of Performance
18 IRT Non-Gateway Coastal Peer Group 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 155 2019 2020 2021 2022 2023 2024 2025 Mid-Point IRT Non-Gateway Coastal Peer Group WHY IRT | WHY NOW Track Record of Performance (1) Source: Bloomberg data as of the time periods ended 2/20/2025. (2) Sourc
Slide 20: IRT's Formula for Outsized Returns
19 WHY IRT | WHY NOW Outsized Shareholder Returns Best in Class FFO Growth IRT’s Formula for Outsized Returns Track Record of Performance Opportunities to Expand FFO Multiple + + = • Best core FFO per share growth over 5 years • Best total shareholder return over past 5 years • Patient and Disciplin
Slide 21: Appendices
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Slide 22: Portfolio Summary and Top Markets
21 TOP 10 MARKETSPORTFOLIO SUMMARY IRT’s portfolio of 113 multifamily communities is focused on high-growth markets in the Sunbelt, Midwest and Mountain West regions Geographic Distribution Operating Communities • Strong presence in high growth metros including Atlanta, Charlotte, Tampa, Dallas, Den
Slide 23: Our Markets | Atlanta
22 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Atlanta Atlanta represents 14.8% of IRT’s NOI Pointe at Canyon Ridge Sandy Springs, GA Waters
Slide 24: Our Markets | Dallas
23 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Dallas Dallas represents 14.0% of IRT’s NOI Avenues at Craig Ranch Dallas, TX Vue at Knoll Tr
Slide 25: Our Markets | Columbus
24 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Columbus Columbus represents 7.2% of IRT’s NOI Bennington Pond Apartments Groveport, OH Schir
Slide 26: Our Markets | Tampa
25 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Tampa Tampa represents 6.5% of IRT’s NOI Gateway at Pinellas Tampa, FL Vantage on Hillsboroug
Slide 27: Our Markets | Denver
26 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Denver Denver represents 6.4% of IRT’s NOI Destination at Arista Broomfield, CO Bristol Villa
Slide 28: Our Markets | Indianapolis
27 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Indianapolis Indianapolis represents 5.5% of IRT’s NOI Bayview Club Apartments Indianapolis,
Slide 29: Our Markets | Oklahoma City
28 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Oklahoma City Oklahoma City represents 5.4% of IRT’s NOI Windrush Oklahoma City, OK Augusta O
Slide 30: Our Markets | Nashville
29 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Nashville Nashville represents 5.4% of IRT’s NOI Landings of Brentwood Brentwood, TN Stonerid
Slide 31: Our Markets | Raleigh–Durham
30 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Raleigh–Durham Raleigh-Durham represents 5.0% of IRT’s NOI Creekstone at RTP Durham, NC Water
Slide 32: Our Markets | Memphis
31 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Memphis Memphis represents 3.9% of IRT’s NOI Walnut Hill Memphis, TN Stonebridge Crossing Mem
Slide 33: Our Markets | Houston
32 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Houston Houston represents 3.4% of IRT’s NOI Carrington Park at Huffmeister Houston, TX Carri
Slide 34: Our Markets | Louisville
33 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Louisville Louisville represents 3.2% of IRT’s NOI Prospect Park Apartment Homes Louisville,
Slide 35: Our Markets | Charlotte
34 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Charlotte Charlotte represents 3.1% of IRT’s NOI Fountains Southend Charlotte, NC Vesta City
Slide 36: Our Markets | Huntsville
35 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Huntsville Huntsville represents 3.1% of IRT’s NOI Bridgepoint Huntsville, AL Legacy at Jones
Slide 37: Our Markets | Orlando
36 Community Map Job Growth Population Growth Supply Growth 2025 Job Growth US Average 1.08% Gateway Markets 1.00% 2025 Population Growth US Average 0.54% Gateway Markets 0.73% Major Employers Our Markets | Orlando Orlando represents 1.1% of IRT’s NOI Millenia 700 Orlando, FL 1.32% 1.73% 1.37% 2024
Slide 38: Our Markets: IRT Resident Demographics at a Glance
37 OUR MARKETS (1) All resident demographic data is self-reported by residents. Data as of December 31, 2024. (2) Data as of the last 90 days ending December 31, 2024. 48% 52% Gender Breakdown 80% 20% Marital Status Average Resident Age: 37 Residents make up a diverse job pool Top Industries of Resi
Slide 39: Definitions & Non-GAAP Financial Measure Reconciliations
38 DEFINITIONS & NON-GAAP FINANCIAL MEASURE RECONCILIATIONS This presentation may contain non-U.S. generally accepted accounting principals (“GAAP”) financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in this d
Slide 40: Net Operating Income definition
39 Net Operating Income We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful supplemental measure of its operating performance. We define NOI as total property revenues less total property operating expenses, excluding depreciation and amortization, casualty relate
Slide 41: Definitions & Non-GAAP Financial Measure Reconciliations
40 DEFINITIONS & NON-GAAP FINANCIAL MEASURE RECONCILIATIONS December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Reconciliation of same-store net operating income to net income (loss) Same-store net operating income 100,398$ 95,396$ 93,242$ 92,548$ 95,363$ Non same-sto
Slide 42: Forward-Looking Statements
41 This presentation contains certain 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. Such forward-looking statements include, but are not limited to, our earnings guidance, an
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