Independence Realty Trust (IRT) investor relations material

Portfolio overview and market fundamentals

• Operates 117 communities with over 34,000 units, primarily Class B in the Sun Belt and Midwest, with supply growth projected to fall below long-term averages through 2028.

• Demand drivers include strong population and employment growth, with forecasts showing these will outpace national averages by significant margins over the next three years.

• Resident base is predominantly middle-income, resilient to AI job disruption, and benefits from the cost advantage of renting versus home ownership.

Operational performance and strategy

• Value-add renovation program targets 2,000–2,500 units annually, generating 16–20% returns and boosting same-store NOI by at least 20% each year.

• Operating expenses rose only 0.5% in 2025, with G&A spend at 34 basis points of gross assets, competitive with larger peers.

• About 12,000 units have been renovated to date, with 7,000 in the pipeline and another 3,000–4,000 planned as properties age.

Market cycle and leasing trends

• Recent supply surges are nearly absorbed, with only 1.5% of inventory left to lease; new deliveries are expected to decline, supporting pricing power.

• Renewal rent growth for July is projected at 5.2%, with blended rent growth at 1.6% as of early leasing season.

• Midwest markets remain stable and strong, while Southeast markets like Raleigh are reaching occupancy inflection points; Denver lags due to regulation and supply.