Independence Realty Trust : IRT Investor Presentation June 2025

Published: 2025-06-02 16:52:16 ET IRT

Published on 06/02/2025 at 16:52

Cyan Mallard Creek Charlotte, NC

Destination at Arista Broomfield, CO

Overview

Sector-Leading NOI Growth

Accretive Value-Add Renovations

Accretive Acquisitions

Destination at Arista Broomfield, CO

Demand Outpacing Supply

Housing Affordability Factor

IRT's Value Proposition for Renters

Class B Apartment Demand Inelasticity

Strong, Flexible Balance Sheet

Our Markets

4 - 5

6 - 17

18 - 19

Definitions & Non-GAAP Financial Measure Reconciliations

Forward Looking Statements

Our Simple Business Model of Operating and Renovating Predominantly Class-B Apartment Communities in High-Growth Markets, where Demand Outpaces Supply, Positions IRT to Continue Delivering Sector-Leading Total Returns

Simple Business Model

Grow CFFO per share through Operational Excellence,

Accretive Value-Add Renovations, and Investing in Markets where Demand Outstrips Supply

Sector-Leading Total Returns

5-Year TSR: 136%

10-Year TSR: 277%

Class-B Focused Portfolio

74% Sunbelt

20% Midwest

6% Mountain West

Strong, Flexible Balance Sheet

S&P 400 Mid-Cap Company with 'BBB' rating, stable outlook, and

~$750 million of liquidity to fund growth

Value-Add Program

Average ROI of 16.6% on ~9,700 Completed Renovations have Boosted Same-Store NOI by 20%

Future Pipeline of ~13,000 Units Represents

$39 - $40 Million of Incremental NOI and

~$500 Million of Future Shareholder Value

(1) Based on closing stock prices and consensus FFO per share estimates as of May 20, 2025.

$6.2B

In gross assets

IRT's Operating Communities

Community in Lease up

PORTFOLIO SUMMARY (1)

OWN AND OPERATE

113

Communities

33,175

Units

Sunbelt Exposure

73%

of NOI

95.4%

1Q '25 average occupancy

+100 basis points vs 1Q '24

(1) Portfolio summary data is as of March 31, 2025.

Core FFO per share of $0.27

Same-Store Portfolio Results:

2.3% revenue Y/Y growth

1.6% operating expense Y/Y growth

2.7% NOI Y/Y growth

Q1 2025 RESULTS

Increased scale in Indianapolis with

$59.5 million acquisition (280 units)

275 Value Add renovation completions at average ROI of 16.2%

Leverage on-track to achieve mid-5x net debt/EBITDA in Q4 2025

100% of debt is fixed and/or hedged

Only 17% of total debt matures between now and YE 2027

Recent Operating Trends

Demand and Occupancy

Effective Same-Store Rental Rate Trade Outs

Operating Expenses

Prospective resident leads and tours remain strong, indicating sustained demand with quarter-to-date lead volume up 9% and tour volume up 30% compared to last year.

Same-store occupancy remains stable. We expect Q2 2025 average occupancy of approximately 95.4%.

Blended same-store rental rates continue to improve into Q2. For Q2, blended rental rate growth is expected to be between 0.5% and 0.9%.

New lease trade outs continue to improve month to month in Q2 2025 as expected. Currently, we expect Q2 2025 new leases rates to be between (2.5%) and (2.9%).

Renewal rate increases expected to be approximately 3.9% for Q2 2025; 96% of our expected Q2 2025 renewals are complete.

Controllable operating expenses are trending lower than originally expected as our focus on efficiency and controlling inflationary effects through proactive procurement.

Our recent property insurance renewal on May 15, 2025, realized a 20% decrease in our premium. Our liability insurance is set to renew on July 1st and we will update our 2025 guidance in our Q2 2025 earnings call.

Disclaimer

Independence Realty Trust Inc. published this content on June 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 02, 2025 at 20:51 UTC.