Independence Realty Trust (IRT) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Portfolio positioning and market outlook

• Portfolio is positioned in high-growth markets with strong population and job growth, outpacing coastal and national averages.

• Decline in new deliveries is expected to support sustained rent growth and higher valuation multiples.

• Management expects a multi-year favorable cycle for rent growth, with limited new supply projected until at least 2027.

• Sunbelt and select markets like Tampa are expected to rebound in 2025, with others like Charlotte and Huntsville positioned for growth in 2026.

• Migration trends remain strong, with out-of-state move-ins fueling continued demand.

Capital deployment and growth strategy

• $156 million in equity from a recent raise is being deployed accretively, with three new acquisitions at attractive cap rates and minimal lease-up risk.

• Value-add program delivers high teens unlevered returns, considered the best use of capital.

• Joint venture investments in new construction have been successful, but direct development is deferred until the balance sheet grows.

• Targeting 2,500–3,000 value-add unit renovations annually, balancing operational disruption and ROI.

• Non-recurring CapEx initiatives, such as smart home and property Wi-Fi, are expected to generate high returns, with Wi-Fi rollout planned for 2025.

Operational efficiency and expense management

• Operating model is highly efficient, with one of the lowest employee-to-unit ratios among peers.

• G&A and property management expenses are scalable, with minimal increases expected even with portfolio growth.

• New pricing system (REBA) focuses on lease velocity and retention forecasting, replacing the previous RealPage tool.

• Renewals are being sent at 3–3.5% increases, with retention rates above 55%.

• Bad debt is expected to decline from 1.9% to 1.4% of revenue in 2025, aided by new verification tools.