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Mar 31, 2023

Independence Realty Trust Q1 2023 Earnings Report

Independence Realty Trust reported first quarter 2023 financial results, featuring an increase in same-store NOI and progress in occupancy improvements.

Key Takeaways

Independence Realty Trust reported a net income of $8.6 million and an EPS of $0.04 for Q1 2023. The company achieved an 8.2% increase in same-store NOI, driven by a 4.0% blended lease over lease rental growth. They renovated 635 units in their value add program with a 17.8% return on investment.

Net income available to common shares was $8.6 million.

Earnings per diluted share was $0.04.

Same-store portfolio net operating income (NOI) grew by 8.2%.

Core Funds from Operations (CFFO) was $62.5 million, with CFFO per share at $0.27.

Total Revenue
$161M
Previous year: $150M
+7.4%
EPS
$0.27
Previous year: $0.25
+8.0%
Avg Rent per Unit
$1.53K
Previous year: $1.37K
+11.4%
Avg Occupancy
93.1%
Previous year: 95.4%
-2.4%
NOI Margin
63.3%
Previous year: 62.9%
+0.6%
Gross Profit
$102M
Previous year: $88.9M
+14.6%
Cash and Equivalents
$12.4M
Previous year: $24M
-48.1%
Total Assets
$6.49B
Previous year: $6.73B
-3.5%

Independence Realty Trust

Independence Realty Trust

Independence Realty Trust Revenue by Segment

Forward Guidance

IRT affirms its EPS and CFFO per share and same-store NOI targets for 2023. Earnings per diluted share is projected to be in the range of $0.23 to $0.27, and Core FFO per share is projected to be $1.12 to $1.16.

Positive Outlook

  • Property revenue growth between 5.7% and 7.0%.
  • Controllable operating expense growth between 3.3% and 5.4%.
  • Real estate tax and insurance expense growth between 8.1% and 9.1%.
  • Total operating expense growth between 5.2% and 6.9%.
  • Property NOI growth between 5.0% and 8.0%.

Challenges Ahead

  • General and administrative & Property management expenses between $51.5 million and $53.5 million.
  • Interest expense between $104.5 million and $106.5 million.
  • Recurring capital expenditures between $19.0 million and $21.0 million.
  • Value add & non-recurring capital expenditures between $78.0 million and $82.0 million.
  • Development capital expenditures between $80.0 million and $90.0 million.