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Jun 30
Independence Realty Trust Q2 2025 Earnings Report
Independence Realty Trust announced its second quarter 2025 financial results, reporting an EPS of $0.03 and CFFO per share of $0.28, both in line with expectations. The company achieved a 2.0% increase in same-store portfolio NOI, supported by stable occupancy, rental rate growth, and strong retention, alongside a focus on operating efficiencies and favorable insurance renewal.
Key Takeaways
Independence Realty Trust delivered a solid second quarter, with same-store NOI growth of 2.0% and CFFO of $0.28 per share, meeting management's expectations despite a challenging macroeconomic environment. The company successfully completed 454 renovations in its value-add program, achieving a 16.2% ROI, and is actively pursuing strategic acquisitions and dispositions to optimize its portfolio and deploy capital accretively.
Q2 2025 EPS was $0.03, and CFFO per share was $0.28, aligning with the company's expectations.
Same-store portfolio Net Operating Income (NOI) increased by 2.0% for the quarter, driven by a 1.0% increase in revenues and a 0.6% decline in operating expenses.
The value-add program completed 454 renovations in Q2 2025, achieving an average return on investment (ROI) of 16.2%.
The company is under contract to acquire two properties in Orlando, FL for approximately $155 million, expected to close in Q3 2025, and has identified three properties for disposition in 2H 2025 as part of its capital recycling program.
Independence Realty Trust
Independence Realty Trust
Independence Realty Trust Revenue by Segment
Revenue by Segment
Rental and other property Revenue
CapyFin.com Forward Guidance
Independence Realty Trust has updated its full-year 2025 guidance, increasing the midpoint of same-store NOI growth while maintaining the midpoint of CFFO per share. The company anticipates significant acquisition and disposition activity to optimize its portfolio.
Positive Outlook
- Midpoint of same-store NOI growth increased from 2.05% to 2.1%.
- Expected acquisition volume significantly increased to $580-$650 million, up from $280-$320 million.
- Expected disposition volume increased to $385-$435 million, up from $110-$112 million, indicating active capital recycling.
- General and administrative & property management expenses guidance midpoint decreased by $1.0 million.
- Real estate tax and insurance expense growth outlook improved to a range of -0.8% to 0.0%, down from 2.1% to 4.0%.
Challenges Ahead
- Property revenue growth guidance decreased to 1.5%-1.9% from 2.1%-3.1%.
- Controllable operating expense growth guidance decreased to 1.7%-2.1% from 3.3%-4.3%.
- Total operating expense growth guidance decreased to 0.7%-1.3% from 2.8%-4.1%.
- Value add renovation program capital expenditures guidance decreased by $13.0 million at the midpoint.
- Non-recurring and revenue enhancing capital expenditures guidance decreased by $4.0 million at the midpoint.