Independence Realty Trust Stock Earnings Reports

Independence Realty Trust reported Q3 2025 results largely in line with expectations. Occupancy remained stable at 95.6% (up 20 bps sequentially) with resident retention of 60.4%. Same-store NOI rose 2.7% driven by a 1.4% revenue increase and a 70 bps reduction in operating expenses. Bad debt improved materially (now <1% of same-store revenue) due to process and technology improvements. Value-add renovations remain a core growth engine — 788 units completed in the quarter with an average monthly rent premium of ~$250 and a weighted average ROI of ~15%. Transaction activity included two Orlando acquisitions for $155M (5.8% economic cap rate) funded largely with forward equity; dispositions timing was pushed into 2026 for some assets. Balance sheet remains flexible: net debt / adjusted EBITDA was ~6.0x at 9/30 (expected to fall to mid-5s by year-end) and maturities through 2027 are modest. Management narrowed 2025 guidance ranges (midpoint core FFO/share unchanged at $1.175) and emphasized capital allocation priorities: prioritize the value-add program, be opportunistic with acquisitions, de-lever, and selectively pursue share buybacks given the current spread between asset values and their implied valuation. Management sees early “green shoots” of market recovery in several markets (notably Atlanta) as new deliveries slow and net absorption has turned positive in key markets, but they remain cautious given uneven supply pressures in select markets (Denver, Dallas, Raleigh).