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Sep 30, 2021

Independence Realty Trust Q3 2021 Earnings Report

Announced Third Quarter 2021 Financial Results & Updated Full Year 2021 Guidance

Key Takeaways

Independence Realty Trust reported a net income of $11.5 million, representing an EPS of $0.11. Same store NOI grew by 14.7% and the company updated its full year 2021 same store NOI guidance to a midpoint of 10.25% and full year 2021 CFFO guidance to a midpoint of $0.81 per share.

Reached a definitive agreement to merge with Steadfast Apartment REIT, Inc. which is expected to close in mid-December 2021.

Net income available to common shares was $11.5 million, with earnings per diluted share of $0.11.

Same store net operating income (NOI) grew by 14.7%.

Core Funds from Operations (CFFO) was $22.7 million, with CFFO per share at $0.21.

Total Revenue
$60.6M
Previous year: $54M
+12.2%
EPS
$0.21
Previous year: $0.2
+5.0%
Avg Rent per Unit
$1.23K
Previous year: $1.11K
+10.9%
Avg Occupancy
96%
Previous year: 94%
+2.1%
NOI Margin
62.2%
Gross Profit
$35.4M
Previous year: $30M
+18.1%
Cash and Equivalents
$8.72M
Previous year: $217M
-96.0%
Free Cash Flow
$30.5M
Previous year: $26.2M
+16.2%
Total Assets
$1.85B
Previous year: $1.7B
+8.6%

Independence Realty Trust

Independence Realty Trust

Forward Guidance

IRT is updating its 2021 full year EPS and CFFO guidance. Previous Guidance Current Guidance

Positive Outlook

  • Property revenue growth 7.25% to 7.75%
  • Real estate tax and insurance expense increase 0.0% to 1.0%
  • Total real estate operating expense growth 2.5% to 3.0%
  • Property NOI growth 9.75% to 10.75%
  • Disposition volume $170 million to $180 million

Challenges Ahead

  • Number of properties/units 47 properties / 12,838 units
  • Controllable property operating expense growth 4.0% to 4.5%
  • General and administrative expenses $18.0 to $18.5 million
  • Property management expenses $8.25 to $8.75 million
  • Interest expense (including amortization of deferred financing costs) $34.0 to $34.5 million