The following is a summary of the Independence Realty Trust, Inc. (IRT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Independence Realty Trust reported a Q3 net income available to common shareholders of $12.4 million, up from $3.9 million in the previous year.

• Core FFO was $66.8 million at $0.29 per share, with a slight decrease due to asset sales associated with portfolio optimization.

• Net debt to adjusted EBITDA improved to 6.3x from 7x last year, with same-store NOI growth of 2.2% driven by a 2.5% revenue growth and increased occupancy.

• Same-store revenue growth forecast for the full year is between 3% and 3.2%, and same-store property NOI growth is expected to remain at 3.2%.

• The company received a BBB flat investment-grade rating from S&P Global Ratings.

Business Progress:

• IRT completed renovations on 578 units in Q3, with a weighted average ROI of 14.9%.

• Plans to further renovate approximately 400 units in Q4, targeting a full-year total of 1,700 units.

• Sold a property in Birmingham and purchased one in Tampa, and is under contract to acquire three properties in Charlotte, Orlando, and Columbus for an aggregate price of $184 million with an expected 6% cap rate.

• Launched a private placement and issued $150 million of unsecured notes for repaying 2025 debt maturities.

Opportunities:

• Targeted acquisitions are expected to increase IRT's exposure in high-growth markets, contributing positively to the portfolio.

• The new investments in renovations are expected to further enhance property values and rental incomes.

• The new investment-grade rating may lower borrowing costs and open new capital resources, supporting strategic growth and portfolio investment.

Risks:

• The macroeconomic environment remains uneven, characterized by new supply pressures and inflation impacts, particularly on controllable expenses such as personnel and maintenance costs.

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