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Sep 30, 2022

Independence Realty Trust Q3 2022 Earnings Report

Delivered double-digit revenue and NOI growth, driven by a portfolio of assets in attractive markets with strong fundamentals.

Key Takeaways

Independence Realty Trust (IRT) announced strong Q3 2022 results with double-digit revenue and NOI growth. The company's same-store portfolio NOI increased by 11.5%, driven by blended lease over lease rental growth of 12.7%. IRT is maintaining its full year NOI and increasing its Core FFO per share growth guidance.

Net income available to common shares was $16.2 million.

Earnings per diluted share was $0.07.

Combined same-store portfolio net operating income (NOI) grew by 11.5%.

Core Funds from Operations (CFFO) was $64.3 million, or $0.28 per share.

Total Revenue
$160M
Previous year: $60.6M
+164.6%
EPS
$0.28
Previous year: $0.21
+33.3%
Avg Rent per Unit
$1.48K
Previous year: $1.23K
+20.5%
Avg Occupancy
94.2%
Previous year: 96%
-1.9%
NOI Margin
62.6%
Previous year: 62.2%
+0.6%
Gross Profit
$94.9M
Previous year: $35.4M
+167.9%
Cash and Equivalents
$23.8M
Previous year: $8.72M
+172.4%
Total Assets
$6.63B
Previous year: $1.85B
+259.2%

Independence Realty Trust

Independence Realty Trust

Independence Realty Trust Revenue by Segment

Forward Guidance

IRT increased its EPS and CFFO per share and maintained its same-store NOI targets. Earnings per diluted share is projected to be in the range of $0.49 to $0.50. Core FFO per share is projected to be in the range of $1.07 to $1.08.

Positive Outlook

  • Property revenue growth is expected to be between 10.6% and 10.8%.
  • Controllable operating expense growth is projected to be between 3.8% and 4.3%.
  • Real estate tax and insurance expense growth is expected to be between 7.8% and 8.4%.
  • Total operating expense growth is projected to be between 5.3% and 5.8%.
  • Property NOI growth is expected to be between 13.25% and 14.25%.

Challenges Ahead

  • General and administrative & Property management expenses are expected to be between $50.0 to $51.0 million.
  • Interest expense is expected to be between $98.0 to $99.0 million.
  • Acquisition volume is projected to be $203 million.
  • Disposition volume is projected to be $157 to $260 million.
  • Value add & non-recurring capital expenditures are expected to be between $40.0 to $43.0 million.