Independence Realty Trust, Inc. · NYSE:IRT
Independence Realty Trust — Merger or Acquisition (July 2021)
16 slides from Independence Realty Trust's merger presentation, Jul 26, 2021
Slide 1: Independence Realty Trust to Merge with Steadfast REIT
Talison Row on Daniel Island, South Carolina Lakeside at Coppell in Coppell, Texas INDEPENDENCE REALTY TRUST TO MERGE WITH STEADFAST REIT Creates Leading Sunbelt-Focused Multifamily Platform July 26, 2021 Exhibit99.2
Slide 2: Safe Harbor Forward-Looking Statements
Safe Harbor Forward -Looking Statements 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 can generally be id
Slide 3: Transaction Overview
Transaction Overview Independence Realty Trust, Inc. (“IRT”) to merge with Steadfast Apartment REIT, Inc. (“STAR”) in all-stock transaction — STAR’s stockholders to receive 0.905 shares / OP units of IRT stock for each STAR share / OP unit Transaction Detail Transaction will result in the issuance o
Slide 4: Transaction Rationale and Expected Benefits
Transaction Rationale and Expected Benefits Creation of a ~$7bn multifamily REIT focused on high-growth markets predominantly in the Sunbelt region Merger joins together two high-quality portfolios with complementary geographic footprints in the highly desirable Sunbelt region The combined company w
Slide 5: Steadfast Apartment REIT Snapshot
Steadfast Apartment REIT Snapshot STAR owns a portfolio of high-quality multifamily assets in attractive markets with strong fundamentals STAR PORTFOLIO SUMMARY 70 96.2% $1,275 64% Communities SS Avg. Occupancy Avg. Effective Monthly Rent NOI from Sunbelt Markets (2) per Unit (1) 21,841 12.4% $4.1B
Slide 6: Complementary Portfolios with Benefits of Size and Scale
Complementary Portfolios with Benefits of Size and Scale Combination creates premier Sunbelt -focused multifamily platform with enhanced scale and portfolio quality Pro Forma Equity Value ($bn) (1) $2.1 $2.1 $4.2 Enterprise Value ($bn) (1) $3.2 $4.1 $7.3 Number of Communities (2) 58 70 128 Number of
Slide 7: Expanded Presence Across High-Growth Markets
Expanded Presence Across High-Growth Markets Combined company includes 131 communities across resilient, high-growth markets Geographic Distribution Top 10 Markets OWN AND OPERATE Steadfast Apartment REIT Market Units % % Independence Realty Trust Unit NOI Atlanta 5,852 15% 17% 130 Average community
Slide 8: Increased Presence in Markets with Strong Fundamentals
Increased Presence in Markets with Strong Fundamentals Combined company’s markets outperform the national average and gateway markets in two key fundamentals for multifamily asset performance, population and employment growth Outsized Population Growth Employment Change vs. 2019 Outpaces National Av
Slide 9: Robust Embedded Value Add Growth Opportunities
Robust Embedded Value Add Growth Opportunities Combined ~20,000 unit value add pipeline for the pro forma combined company ~12,000 STAR units and ~8,000 IRT units preliminarily identified for improvement renovations Expect to implement IRT’s value add platform to existing STAR units and drive outsiz
Slide 10: Meaningful and Identifiable Synergies to Drive Growth
Meaningful and Identifiable Synergies to Drive Growth STAR’s high-quality portfolio coupled with significant corporate and operating synergies are expected to create immediate earnings accretion; additional levers exist to further enhance earnings over the long-term Additional Earnings Value Add Gro
Slide 11: Pro Forma Capitalization
Pro Forma Capitalization Balance Sheet Highlights Total Capitalization (1) The combined company will maintain a simple capital structure consisting of secured and unsecured debt Plan to maintain conservative financial and credit policies and expect to further delever the balance sheet through non-co
Slide 12: Roadmap to Right Sizing Leverage
Roadmap to Right Sizing Leverage We are focused on right sizing the balance sheet and continuing to improve the combined company’s leverage profile through achievable action items in the near to medium -term A Non-Core Dispositions Approximately $340 million of identified non-core assets to market f
Slide 13: Sustained Value Creation for Stockholders
Sustained Value Creation for Stockholders IRT has a proven track record of outperforming its peers and the broader market 1-Year 3-Year 5-Year Since IPO (1) 350% 312% 300% 250% 201% 206% 200% 168% 150% 135% 123% 109% 100% 88% 61% 61% 66% 66% 50% 44% 40% 38% 37% --Source: S&P Global, FactSet. Market
Slide 14: Strategic Highlights and Path to Long-Term Growth
Strategic Highlights and Path to Long -Term Growth Transaction Rationale Path to Continued Long-Term Growth Defined Investment Strategy Complementary Portfolios with Benefits of Size and Scale • Focus on non-gateway MSAs with strong apartment demand, limited new construction and positive economic in
Slide 15: Definitions and Non-GAAP Financial Measure Reconciliations
Definitions and 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 IRT’s
Slide 16: Definitions and Non-GAAP Financial Measure Reconciliations
Definitions and Non-GAAP Financial Measure Reconciliations Net Operating Income IRT and STAR believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful supplemental measure of its operating performance. IRT and STAR define NOI as total property revenues less total property
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