Independence Realty Trust (IRT) Nareit REIT Week: 2024 Investor Conference summary

Portfolio and operational performance

• Owns 110 communities with 32,600 units, mainly in the Southeast and Midwest, focusing on B-class assets in non-gateway markets.

• Achieved 95.7% same-store occupancy, up 100 bps from Q1 and 140 bps from last year; resident retention rose to 55.2%.

• New lease trade-outs improved to -0.7% in Q2 from -2.4% in Q1; blended rent growth for May reached 1.7%.

• Delivered industry-leading NOI and core FFO growth, with the highest total shareholder return among peers over multiple periods.

Strategic initiatives and capital allocation

• Value-add program targets 2,400 unit renovations in 2024, investing $17,000 per unit, yielding a 19% unlevered return.

• Ground-up development in Denver MSA to add $14 million EBITDA with no new debt; one project complete, another to be finished in Q4.

• Completed sale of 10 non-core assets at a 5.8% cap rate, using proceeds to pay down $520 million in debt, reducing leverage.

• Maintains a simple capital structure with only 7% of debt maturing by end-2025 and 28% by 2028.

Growth history and M&A

• Growth driven by focus on B-class assets, accretive one-off acquisitions, and two major stock-for-stock REIT acquisitions in 2015 and 2021.

• No near-term plans for acquisitions due to public-private valuation disconnect; will consider accretive opportunities if they arise.