Independence Realty Trust, Inc. · NYSE:IRT
Independence Realty Trust — Investor Presentation (May 2018)
19 slides from Independence Realty Trust's investor presentation, May 9, 2018
Slide 1: Investor Presentation May 2018
2.60 1.80 2.15 3.30 3.75 5.10 0.15 5.10 4.50 - logo 0.15 Investor Presentation May 2018 0 34 84 18 86 154 108 134 195 82 89 95 191 191 191 241 229 24 33 75 35 255 175 25 Exhibit 99.1
Slide 2: Table of Contents
Table of Contents IRT Overview 2 – 3 Markets 4 – 5 Assets 6 Portfolio 7 – 9 Value Add 10 – 11 Capital Structure 12 Guidance 13 Conclusion 14 Appendix Definitions and Reconciliations 16 – 17 Disclosure Notices 18
Slide 3: 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, cons
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 above the national average
Job growth in IRT’s markets is above 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 number o
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, and
Slide 8: Recent Opportunistic Portfolio Acquisition
Property Name Market State Built / Renovated Units Period End Occupancy1 Avg. Effective Rent/Unit1 Close Date Kensington Commons Columbus OH 2004 264 97.7% $882 9/26/2017 Schirm Farms Columbus OH 2002 264 95.8% $846 9/26/2017 Riverchase Apts Indianapolis IN 2000 216 89.8% $814 9/26/2017 Cherry Grove
Slide 9: Dramatic Portfolio Transformation Since IPO
Dramatic Portfolio Transformation Since IPO Source: Company filings and CoStar. For all owned communities as of 3/31/2017 and pro forma for all acquisitions through 2/26/18. Midpoint of full year 2018 guidance as announced in Q1 2018 earnings release using weighted-average shares and units outstandi
Slide 10: Portfolio Scale and Management Platform Deliver Operational Excellence
Portfolio Scale and Management Platform Deliver Operational Excellence Data as of March 31, 2018. Pro forma NOI reflects the impact of all acquisitions and dispositions as if they occurred on 1/1/2018, including IRT’s four acquisitions that occurred in Q1 2018. IRT’s Management Platform: Manage all
Slide 11: 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 $ After Over 4,300 units identified for redevelopment across 14 properties creating organic value. Cabinets Countertops Bl
Slide 12: Building Blocks to Organic NOI Growth
Low risk redevelopment with potential for immediate value creation per unit 5 Communities 1,566 Units Est. $23M investment Est. return of 15-20% Est. avg. monthly rent premium of ~$190 Expected to be complete by end of 2018 9 Communities 2,752 Units Est. $23M investment Est. return of 20-25% Est. av
Slide 13: Simple Capital Structure
Data as of 3/31/18 As of market close 3/31/2017 & 3/29/2018 respectively Net debt to adjusted EBITDA reflects the proforma metric adjusted for the timing of acquisitions and timing of current value add initiatives. Excluding this adjustment, net debt to adjusted EBITDA would be 9.7x. 1Q 2017 53.2% D
Slide 14: 2018 Guidance
2018 Guidance Low High Net income allocable to common shares $0.26 $0.31 Earnings per share $0.26 $0.31 2018 EPS and CFFO Guidance Net income allocable to common shares $0.26 $0.31 Adjustments: Depreciation and amortization 0.43 0.43 Share base compensation 0.03 0.03 Amortization of deferred financi
Slide 15: 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 16: Appendix & Definitions
2.60 1.80 2.15 3.30 3.75 5.10 0.15 5.10 4.50 - logo 0.15 Appendix & Definitions 15
Slide 17: 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 18: 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 19: Disclosure Notices
Disclosure Notices 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
Independence Realty Trust — Investor Presentation (May 2018) on 6ix