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Jun 30, 2023

Independence Realty Trust Q2 2023 Earnings Report

Announced second quarter 2023 financial results and raised the midpoint of full year 2023 earnings and Core FFO guidance ranges.

Key Takeaways

Independence Realty Trust reported a net income of $10.7 million, a same-store NOI growth of 6.3%, and a Core FFO of $63.7 million for the second quarter of 2023. The company also completed renovations at 625 units during the quarter, achieving a weighted average return on investment of 16.2%.

Net income available to common shares was $10.7 million, compared to $(7.2) million for the quarter ended June 30, 2022.

Earnings per diluted share was $0.05, compared to $(0.03) for the quarter ended June 30, 2022.

Same-store portfolio net operating income (NOI) grew by 6.3% compared to the quarter ended June 30, 2022.

Core Funds from Operations (CFFO) was $63.7 million, compared to $58.6 million for the quarter ended June 30, 2022.

Total Revenue
$164M
Previous year: $155M
+5.8%
EPS
$0.28
Previous year: $0.26
+7.7%
Avg Rent per Unit
$1.53K
Previous year: $1.41K
+8.4%
Avg Occupancy
94.2%
Previous year: 95.5%
-1.4%
NOI Margin
62.1%
Previous year: 61.9%
+0.3%
Gross Profit
$95.1M
Previous year: $89.6M
+6.0%
Cash and Equivalents
$14.3M
Previous year: $11.4M
+26.1%
Total Assets
$6.52B
Previous year: $6.39B
+2.0%

Independence Realty Trust

Independence Realty Trust

Independence Realty Trust Revenue by Segment

Forward Guidance

IRT increased the midpoint of its EPS and CFFO per share guidance ranges and reaffirmed the midpoint of its same-store NOI guidance.

Positive Outlook

  • Earnings per share is projected to be in the range of $0.25 to $0.27.
  • Core FFO per share is projected to be in the range of $1.14 to $1.16.
  • Property revenue growth is expected to be 6.1% to 6.6%.
  • Real estate tax and insurance expense growth is expected to be 7.5% to 8.1%.
  • Disposition volume is projected to be $122 million to $127 million.

Challenges Ahead

  • Controllable operating expense growth is expected to be 4.7% to 5.4%.
  • Interest expense is projected to be $102.5 million to $103.5 million.
  • Recurring capital expenditures are projected to be $20.0 million to $22.0 million.
  • Value add & non-recurring capital expenditures are projected to be $78.0 million to $82.0 million.
  • Development capital expenditures are projected to be $80.0 million to $90.0 million.