Independence Realty Trust, Inc. · NYSE:IRT
Independence Realty Trust — Investor Presentation (January 2016)
25 slides from Independence Realty Trust's investor presentation, Jan 20, 2016
Slide 1: Independence Realty Trust – January 2016
2.60 1.80 2.15 3.30 3.75 5.10 0.15 5.10 4.50 - logo 0.15 January 2016 www.irtreit.com Exhibit 99.1
Slide 2: 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
Slide 3: Senior Management
Scott F. Schaeffer Chairman & CEO Chairman and CEO – Independence Realty Trust, Inc. Over 15 years at RAIT Financial Trust serving in a variety of roles Extensive real estate experience (over 30 years) specializing in acquiring and financing commercial real estate Previously, led the real estate gro
Slide 4: Apartment REIT focused on well-located apartment properties
Apartment REIT focused on building a portfolio of well-located apartment properties which generate attractive risk adjusted returns, stable occupancy and the potential for property appreciation through rent increases and improved operating efficiency Listed on the NYSE MKT in August 2013 – “IRT” Tar
Slide 5: IRT history and growth timeline
IRT raised $67mm, $77mm and $58mm of proceeds in 3 follow on offerings throughout 2014 Proceeds used to fund property acquisitions Independence Realty Trust (IRT) is formed as an externally managed REIT 2012 2009 2012 2010 2012 2011 2012 2012 2012 2013 2012 2014 2012 2015 IRT lPOs on NYSE MKT, raisi
Slide 6: Investment Highlights
Portfolio With Stable Growth and Resilient Through Economic Cycles Highly Attractive Industry and Market Fundamentals Commitment to Prudently Recycling Capital Enhanced Scale and Improved Portfolio Quality and Market Penetration Post Trade Street Merger Strong Sponsor with Significant Alignment of I
Slide 7: Enhanced Scale and Improved Portfolio Quality Post Trade Street Merger
Enhanced Scale and Improved Portfolio Quality and Market Penetration Post Trade Street Merger
Slide 8: Combined scale provides enhanced platform for accretive acquisitions
Combined scale provides an enhanced platform to pursue accretive acquisitions and transformational opportunities Increased number of units by 55% Increased market capitalization improves shareholder liquidity TSRE assets amongst the newest in the multifamily REIT space with average property age of 1
Slide 9: TSRE Acquisition Consistent with External Growth Track Record
TSRE Acquisition Consistent with External Growth Track Record At IPO(1) Pre TSRE Merger(2) Post TSRE Merger(3) Total # of Properties 8 31 49 Total # of Units 2,004 9,055 13,724 Average Base Rent ($)(4) $791 $848 $953 Average Occupancy (%) 93.6% 93.3% 94.0% Average Age (years) 26 20 17 LTM NOI Margin
Slide 10: TSRE Acquisition Accelerates Market Penetration
TSRE Acquisition Accelerates Market Penetration Legacy IRT properties Recent Disposition Planned Dispositions Economies of Scale Legacy TSRE properties Source: Company information. Under Contract
Slide 11: Commitment to Prudently Recycling Capital
Commitment to Prudently Recycling Capital
Slide 12: TSRE Acquisition Funding
TSRE Acquisition Funding Acquisition of TSRE for $674mm on 9/17/15 Consideration a combination of cash, stock and new and assumed secured debt Consideration for TSRE Equity Common shares: $3.80 per share cash and 0.4108 IRT common shares OP units: 0.8216 IRT OP units Source: Company information.
Slide 13: Commitment to Prudently Recycling Capital
Commitment to Prudently Recycling Capital Continuously evaluate whether to sell properties to strengthen presence in target markets Specifically consider: Whether the asset has reached its economic potential Market and economic conditions The submarkets where the portfolio is concentrated to determi
Slide 14: Recent and Planned Dispositions – Case Studies
Recent and Planned Dispositions – Case Studies Centrepoint (Tucson, AZ) Contributed by RAIT in December 2011 $761 rent per occupied unit at the date acquired by IRT Sold in Q4 2015 for $33.6mm $843 rent per occupied unit at the sale date (10.8% increase since acquisition)(1) Cumberland Glen (Atlanta
Slide 15: Portfolio With Stable Growth and Resilient Through Economic Cycles
Portfolio With Stable Growth and Resilient Through Economic Cycles
Slide 16: Affordable B/B+ Grade Positioning Highly Defensive
Affordable B/B+ Grade Positioning Highly Defensive A B C Homeownership rates declining Higher income tenants move down in a recession Renters move down to Class B as aggressive rent increases outstrip income growth Capture households moving down in a recession Capture seniors who sell homes to fund
Slide 17: Stable Cash Flow Profile: Historic Rent / Unit Growth
Stable Cash Flow Profile (Cont’d) Historic Rent / Unit Growth IRT Top 5 Submarkets(1) vs Gateway Markets Source: REIS, Company filings. Markets comprise Atlanta, Austin, Louisville, Memphis and Oklahoma City. Weighted by number of units. Same store growth disclosed. AvalonBay Communities, Inc. (“AVB
Slide 18: Highly Attractive Industry and Market Fundamentals
Highly Attractive Industry and Market Fundamentals
Slide 19: Attractive Apartment Industry Dynamics Support Strong Demand
Attractive Apartment Industry Dynamics Support Strong Demand Positive Demographic Factors Demand for rental housing will remain strong as a result of a strengthening job market and positive household formation growth Population growth in IRT’s markets have grown by 1.45% in 2015 compared to 1.08% in
Slide 20: Positive Demographics Migration Outpacing New Supply
Positive Demographics Migration Outpacing New Supply Population Growth Projections Source: REIS Data, RAIT Financial Trust. Completions data for the IRT markets of Asheville NC, Jackson MS, and Huntsville AL are not tracked by REIS and therefore projected migration and completions for these markets
Slide 21: Strong Employment Outlook Job Growth Outpacing New Supply
Strong Employment Outlook Job Growth Outpacing New Supply Projected Employment Growth Source: REIS Data, RAIT Financial Trust. Completions data for the IRT markets of Asheville NC, Jackson MS, and Huntsville AL are not tracked by REIS and therefore projected jobs and completions for these markets ar
Slide 22: Strong Sponsor with Significant Alignment of Interests
Strong Sponsor with Significant Alignment of Interests
Slide 23: Sponsored by RAIT
Sponsored by RAIT Multi-strategy commercial real estate company with $5.8 billion of assets under management as of September 30, 2015 RAIT’s IPO – January 1998 Scalable “in-house” commercial real estate platform Over 900 employees including property management personnel In-house legal team, asset ma
Slide 24: Strong Alignment of Interests Between Sponsor and Stockholders
RAIT is the largest stockholder in IRT with 7.3 million shares or approximately 15% of IRT’s outstanding common stock as of January 19, 2016 RAIT controls entities that advise and manage IRT and its properties Externally managed by Independence Realty Advisors, a wholly-owned subsidiary of RAIT Prop
Slide 25: Investment Highlights
Portfolio With Stable Growth and Resilient Through Economic Cycles Highly Attractive Industry and Market Fundamentals Commitment to Prudently Recycling Capital Enhanced Scale and Improved Portfolio Quality and Market Penetration Post Trade Street Merger Strong Sponsor with Significant Alignment of I
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