Loading...
•
Sep 30
Independence Realty Trust Q3 2025 Earnings Report
Independence Realty Trust reported its third quarter 2025 financial results, with EPS of $0.03 and CFFO Per Share of $0.29, aligning with expectations. The company achieved 2.7% same-store NOI growth, driven by a 1.4% increase in rental revenue and a 0.7% decrease in property operating expenses. Resident retention stood at 60.4%, and 788 value-add renovations were completed with an average ROI of 14.8%.
Key Takeaways
Independence Realty Trust delivered a solid third quarter in 2025, meeting expectations with a 2.7% increase in same-store Net Operating Income (NOI) and Core Funds from Operations (CFFO) per share of $0.29. The company's focus on stable occupancy and value-add renovations contributed to its performance, alongside strategic acquisitions in Orlando, Florida, and a strong balance sheet.
Q3 2025 EPS was $0.03, with CFFO Per Share at $0.29, both in line with expectations.
Same-store NOI grew by 2.7% in Q3, attributed to a 1.4% increase in rental revenue and a 0.7% decrease in property operating expenses.
The company completed 788 value-add renovations during the quarter, achieving an average ROI of 14.8%.
Two communities in Orlando, Florida, were acquired for an aggregate purchase price of $155 million, expanding the company's presence in the region.
Independence Realty Trust
Independence Realty Trust
Forward Guidance
Independence Realty Trust reaffirmed its full-year 2025 guidance midpoints for EPS, FFO, and CFFO per share. The company anticipates continued same-store NOI growth and is adjusting its outlook for acquisition and disposition volumes.
Positive Outlook
- Reaffirmed full-year 2025 FFO and CFFO per share guidance midpoints, indicating stable operational performance.
- Anticipates same-store property revenue growth between 1.6% and 1.8% for the full year 2025.
- Projects same-store NOI growth between 1.9% and 2.3% for the full year 2025.
- Expects a decrease in total operating expense growth to 0.9% - 1.1% for the full year 2025.
- Interest expense guidance for 2025 has been lowered, indicating potential cost savings.
Challenges Ahead
- Full-year 2025 EPS guidance has been significantly lowered from $0.475-$0.535 to $0.27-$0.28, primarily due to fewer gains on sale from lower disposition volume.
- Acquisition volume guidance for 2025 has been substantially reduced from $580-$650 million to $215 million.
- Disposition volume guidance for 2025 has also been significantly reduced from $385-$435 million to $161 million.
- The change in EPS at the midpoint is a decrease of $0.23, largely due to reduced disposition activity.
- Real estate tax and insurance expense growth is still projected to be negative, ranging from (0.6%) to (0.2%).