Independence Realty Trust, Inc. · NYSE:IRT
Independence Realty Trust — Investor Presentation (May 2025)
41 slides from Independence Realty Trust's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
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Slide 2: Agenda
About IRT 2 Investment Highlights 3 Recent Updates * Operating Metrics 4 Drivers of Growth * Overview 5 * Internal Growth 6 o Track Record of Performance oe TT al o Value Add Program o Market Fundamentals * Disciplined Capital Allocation 12 * Flexible Balance Sheet 14 * Strong Corporate Governance 1
Slide 3: Portfolio Summary
PORTFOLIO SUMMARY (1) OWN AND OPERATE IN OH Sunbelt Exposure 11373% Communities of NOI CO OK TN KY NC $6.2B In gross assets SC 33,175 95.4% TX AL GA FL IRT’s Operating Communities Community in Lease up Units 1Q ‘25 average occupancy +100 basis points vs 1Q ‘24 • • • • o • • o o • • • • (1) Portfolio
Slide 4: Investment Highlights
(1) Based on closing stock prices and consensus FFO per share estimates as of April 30, 2025. 3
Slide 5: Operating Metrics
95.8% 95.9% 95.7% 95.6% 95.4% 95.5% 95.5% 95.4% 94.7% 94.9% 95.0% 94.3% 94.5% 94.4% 93.8% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 6% 5.4% 6% 6% 4.8% 4.3% 3.8% 4% 4% 3.3% 4% 2% 2% 2% 1.0% 0.7% 0.3% 0.0% 0.1% 0% 0% 0% -2% -2% -2% -1.9% -4% -4% -4% -3.4
Slide 6: Drivers of Growth
DRIVERS OF GROWTH Overview Improving apartment fundamentals are expected to drive strong rent and CFFO growth, continued success in Value Add renovations, and the opportunity to increase scale using our liquidity and flexible balance sheet Disciplined Capital Allocation Creating value with Accretive
Slide 7: Same-Store NOI Growth vs Peers
Same-Store NOI Growth (1) Midpoint of Guidance for 2025 Same-Store NOI Growth (1) 150 IRT 45% 145 Significant 2.3% outperformance 140 vs. both Coastal 2.1% 135 & Non-Gateway peers Non-Gateway 130 30% 125 Peer Group 1.4% 120 20% 180 bps Coastal 14% 115 higher than Non-Gateway 110 peers 105 100 95 0.3
Slide 8: Value Add program boosts baseline NOI
• • • NOI Boost: Value Add program boosts baseline NOI driving outsized growth 5.7% 0.8% Total same store NOI growth: 3.2% 0.6% 2.7% Value Add NOI 4.9% 0.6% boost ~20% Baseline NOI growth 2.6% as a percentage of 2.1% same-store NOI growth 2023 2024 Q1 25 (1) Calculated as total units completed to da
Slide 9: Value Add Renovation Before and After
Before After • • ▪ ▪ $18.6 At Acquisition (2/27/18) 3/31/25 Change Revenue (TTM) $2.6mm $4.2mm +59% $6.9 $48.5 NOI (TTM) $1.4mm $2.8mm +102% NOI Margin 52.6% 66.7% +1,409 bps $23.0 Ave. Eff. Monthly Rent $868 $1,435 +65% Purchase Price Invested Capital Value Created Total Value Note: Dollars in mill
Slide 10: Population-to-New Supply Growth
• • • • • • • 700,000 14.0% 650,000 600,000 12.0% 8.0 x 550,000 7.3 x Population-to-New Supply Growth 500,000 10.0% 7.0 x 450,000 Vacancy Rate (%) 5.8 x 400,000 8.0% 6.0 x Completions (Units) 350,000 5.0 x 300,000 6.0% 250,000 3.9 x 4.0 x 200,000 4.0% 2.9 x 150,000 3.0 x 100,000 2.0% 50,000 2.0 x 0
Slide 11: Population-to-New Supply by Market
• • 13.9 x 8.3 x 7.3 x 6.7 x 6.7 x 6.8 x 6.8 x 4.4 x 4.7 x 4.1 x 4.1 x 3.7 x (1) Based on CoStar Data Q4 2024 (2) IRT Weighted Average based on NOI Exposure by market (3) Represents the number of people migrating to markets for every one unit delivered 10
Slide 12: Renting vs Homeownership Monthly Cost
• • • $5,000 On Average, Ownership Costs are 36% - 196% higher than IRT’s Rent $4,500 90% $4,000 more to own a $3,500 home Monthly Cost $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- Atlanta - GA Columbus - Dallas-Fort Denver - CO Indianapolis - Memphis - TN Nashville - TN Oklahoma Raleigh - Tampa - FL
Slide 13: Recent Acquisitions
• • Acquisition date 11/1/2024 Acquisition date 12/5/2024 Acquisition date 2/27/2025 Purchase price $73.5mm Purchase price $84.3mm Purchase price $59.5mm Units 300 Units 320 Units 280 Year of Year of Year of 2023 2023 2008 Construction Construction Construction Economic Cap Economic Cap Economic Cap
Slide 14: Gateway at Pinellas, Tampa
• • • • • • • • • Gateway at Pinellas Gateway at Pinellas (1) Both economic cap rates are based on estimated forward 12-month NOI,Tampa, FL less estimated capex, at the time of the transaction. Tampa, FL 13
Slide 15: Flexible Balance Sheet
Common Equity Secured Debt Agency Rating Outlook Unsecured Debt 18% Fitch Ratings BBB Stable 69% $7.3B Total Market Cap S&P Global Ratings BBB Stable 13% 6.7x $ in millions $980 $617 5.9x mid-5x $336 $257 $30 $21 Q4 2023 Q4 2024 Q4 2025e 2025 2026 2027 2028 2029 Thereafter (1) IRT stock price as of
Slide 16: Strong Corporate Governance
• • • • • o • • • o (1) MUTA refers to the Maryland Unsolicited Takeovers Act. 15
Slide 17: Track Record of Performance
155 IRT IRT 27% 55% 150 Multifamily Index 11% 145 RMS 13% 140 Non-Gateway 38% 135 130 Peer Group 125 26% 120 IRT 126% Coastal 115 18% RMS 51% 110 Multifamily Index 42% 105 100 95 90 IRT 266% 85 Multifamily Index 98% 80 2019 2020 2021 2022 2023 2024 2025 Mid-Point RMS 70% IRT Non-Gateway Coastal Peer
Slide 18: Why IRT | Why Now
WHY IRT | WHY NOW IRT’s Formula for Outsized Returns We have a proven track record of outperformance and, going forward, have the fundamentals and opportunities in place to generate outsized returns for investors Track Record of Performance * Best core FFO per share growth over 5 years * Best total
Slide 19: Appendices
Appendices
Slide 20: 2025 Guidance
$0.005 $0.03 $(0.005) $1.175 $(0.01) $1.16 2024 NOI Growth Acquisitions Overhead Costs Asset Sales / Deleveraging 2025 (1) Our guidance constitutes forward-looking information. See “Forward-Looking Statement” at the end of this presentation. For a complete listing of guidance assumptions, please ref
Slide 21: Portfolio Summary
PORTFOLIO SUMMARY 130 Average community age (2) Communities 22 years IN OH CO KY TBU Desktop TN NC OK $6.2B 37,828Units SC In gross assets AL GA TX FL • • Note: Portfolio summary data as of March 31, 2025. Sunbelt markets defined as AL, FL, GA, NC, OK, SC, TN and TX. (1) Our Denver market includes c
Slide 22: Our Markets
1.32% 1.39% 1.19% 1.23% 1.07% 0.86% 2024 2025 2026 2024 2025 2026 5.68% 1.66% 0.86% 2024 2025 2026 Source: CoStar Q4 2024 21
Slide 23: Our Markets
1.34% 1.46% 1.54% 1.19% 1.30% 1.27% 2024 2025 2026 2024 2025 2026 4.37% 2.22% 0.92% 2024 2025 2026 Source: CoStar Q4 2024 22
Slide 24: Our Markets
1.03% 1.22% 1.09% 0.96% 0.61% 0.62% 2024 2025 2026 2024 2025 2026 1.48% 1.47% 0.62% 2024 2025 2026 Source: CoStar Q4 2024 23
Slide 25: Our Markets
1.41% 1.30% 0.99% 0.79% 0.91% 0.89% 2024 2025 2026 2024 2025 2026 3.18% 1.32% 1.09% 2024 2025 2026 Source: CoStar Q4 2024 24
Slide 26: Our Markets
1.39% 1.00% 0.99% 0.68% 0.90% 0.87% 2024 2025 2026 2024 2025 2026 7.63% 2.48% 0.45% 2024 2025 2026 Source: CoStar Q4 2024 25
Slide 27: Our Markets
2.30% 0.86% 0.70% 0.60% 1.10% 0.73% 2024 2025 2026 2024 2025 2026 2.63% 0.14% 0.06% 2024 2025 2026 Source: CoStar Q4 2024 26
Slide 28: Our Markets
0.87% 0.85% 1.93% 0.99% 0.79% 0.59% 2024 2025 2026 2024 2025 2026 3.42% 2.05% 0.82% 2024 2025 2026 Source: CoStar Q4 2024 27
Slide 29: Our Markets
1.27% 1.28% 1.17% 1.13% 1.04% 0.90% 2024 2025 2026 2024 2025 2026 3.51% 2.37% 1.13% 2024 2025 2026 Source: CoStar Q4 2024 28
Slide 30: Our Markets
5.20% 2.98% 2.74% 2.70% 2.11% 2.55% 2024 2025 2026 2024 2025 2026 8.74% 1.80% 0.28% 2024 2025 2026 Source: CoStar Q4 2024 29
Slide 31: Our Markets
0.25% 0.87% 0.25% 0.42% 0.22% 0.19% 2024 2025 2026 2024 2025 2026 2.86% 1.58% 0.22% 2024 2025 2026 Source: CoStar Q4 2024 30
Slide 32: Our Markets
1.52% 1.54% 1.19% 0.86% 1.46% 1.42% 2024 2025 2026 2024 2025 2026 7.62% 1.61% 1.19% 2024 2025 2026 Source: CoStar Q4 2024 31
Slide 33: Our Markets
0.63% 0.95% 0.97% 0.48% 0.48% 0.52% 2024 2025 2026 2024 2025 2026 1.07% 0.00% 0.00% 2024 2025 2026 Source: CoStar Q4 2024 32
Slide 34: Our Markets
1.82% 1.55% 1.49% 1.07% 1.42% 1.37% 2024 2025 2026 2024 2025 2026 15.89% 6.95% 7.54% 2024 2025 2026 Source: CoStar Q4 2024 33
Slide 35: Our Markets
1.42% 1.16% 1.13% 1.13% 0.77% 1.04% 2024 2025 2026 2024 2025 2026 13.86% 4.55% 1.40% 2024 2025 2026 Source: CoStar Q4 2024 34
Slide 36: Our Markets
1.73% 1.66% 1.32% 1.37% 1.36% 1.27% 2024 2025 2026 2024 2025 2026 5.17% 5.05% 1.28% 2024 2025 2026 Source: CoStar Q4 2024 35
Slide 37: Resident demographics
(1) All resident demographic data is self-reported by residents. Data as of March 31, 2025. (2) Data as of the last 90 days ending March 31, 2025. 36
Slide 38: Definitions & Non-GAAP Financial Measure Reconciliations
DEFINITIONS & NON-GAAP FINANCIAL MEASURE RECONCILIATIONS This presentation may contain non-US. 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 docum
Slide 39: Definitions & Non-GAAP Financial Measure Reconciliations
DEFINITIONS & NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Interest Coverage is a ratio computed by dividing Adjusted EBITDA by interest expense Net Debt, a non-GAAP financial measure, equals total consolidated debt less cash and cash equivalents and loan premiums and discounts. The following table pr
Slide 40: Reconciliation of Same-Store NOI to Net Income
Independence Realty Trust Inc. Reconciliation of Same-Store Net Operating Income to Net Income (loss) (Dollars in thousands) For the Three-Months Ended (a) March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Reconciliation of same-store net operating income to net income
Slide 41: 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 include, but are not limited to, our earnings guidance, and t
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