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TABLE OF CONTENTS

 

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COMPANY INFORMATION

Independence Realty Trust, Inc. (NYSE: IRT), an S&P 400 MidCap Company, is a real estate investment trust (“REIT”) that owns and operates multifamily communities, across non-gateway U.S. markets. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT’s main objective is to provide attractive risk-adjusted returns to shareholders through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website, www.irtliving.com.

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, our planned use of remaining proceeds from our sales of common stock on a forward basis, our expectations with respect to the three properties which are classified as held for sale, the assumptions underlying the determination of the fair value of our impairment charge for our property held for sale as of September 30, 2025, and our expectations with respect to our new joint venture and our expectations with respect to future acquisitions and dispositions. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, our planned use of the remaining proceeds from our sales of common stock on a forward basis, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, inability or failure to achieve anticipated benefits from future acquisitions and dispositions, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, economic conditions, including inflation and recessionary conditions and their related impacts on the real estate industry, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, the impacts from the U.S. government shutdown, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, including but not limited to a third party's unauthorized access to our data or the data of our residents, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

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Independence Realty Trust Announces Third Quarter 2025 Financial Results

PHILADELPHIA – (BUSINESS WIRE) – October 29, 2025 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, announces its third quarter 2025 financial results.

Q3 2025 EPS of $0.03

Q3 CFFO Per Share of $0.29

In Line with Expectations

2.7% Same-Store NOI Growth in Q3

1.4% Increase in Rental Revenue and 0.7% Decrease in Property Operating Expenses

95.6% Same-Store Occupancy at End of Q3

60.4% Resident Retention Rate in Q3

Completed 788 Renovations in Value Add Program

Achieved Average ROI of 14.8% During Q3

Accretive Investment Activity

Acquired Two Communities in Orlando During Q3 for an Aggregate Purchase Price of $155 million

Capital Recycling Out of Three Communities to Fund Higher Growth Investments is Progressing

Balance Sheet Remains Strong

Conservative Leverage and Ample Liquidity to Fund Growth

Reaffirmed Full Year 2025 Guidance Midpoints

Management Commentary

“Third quarter same-store NOI growth of 2.7% and CFFO per share of $0.29 were in line with our expectations. We remain committed to prioritizing stable occupancy, which will position us to capture improving rental rate growth as supply pressures continue to recede,” said Scott Schaeffer, Chairman and CEO. “I am also pleased to report bad debt during the third quarter improved to less than 1% of same-store revenues driven by improved processes and our investments in technology. We will continue to invest in technologies to drive further operational efficiencies that enhance the resident experience while benefiting shareholders.”

 

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Third Quarter Summary

Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP, as well as discussion of our same-store methodology.

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Same-Store Portfolio⁽¹⁾ Operating Results

Value Add Program 

We completed renovations of 788 units during the three months ended September 30, 2025, achieving a weighted average return on investment of 14.8%, with an average cost per unit renovated of $20,269, and an average monthly rent increase per unit of $249 over unrenovated comparable units. We completed renovations of 1,517 units during the nine months ended September 30, 2025, achieving a weighted average return on investment of 15.4%, with an average cost per unit renovated of $19,612, and an average monthly rent increase per unit of $252 over unrenovated comparable units. See the Value Add Summary page of our supplemental information for additional information on our projects’ life to date as of September 30, 2025.

Investment Activity

Acquisitions

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Properties Held for Sale

As of September 30, 2025, we had three properties classified as held for sale.

Joint Ventures 

Capital Expenditures

Across our total portfolio for the three months ended September 30, 2025, recurring capital expenditures were $8.6 million, or $246 per unit, value add expenditures were $14.7 million, non-recurring expenditures were $16.9 million and development expenditures were $1.0 million, respectively. For the nine months ended September 30, 2025, recurring capital expenditures were $24.6 million, or $707 per unit, value add expenditures were $31.9 million, non-recurring expenditures were $39.2 million and development expenditures were $9.9 million, respectively.

Capital Markets

In connection with our previously announced public offering of 11,500,000 shares of common stock, in September 2024, we entered into forward sale agreements with Citigroup. On September 29, 2025, we physically settled 5,300,000 of those shares pursuant to the forward sale agreements at a weighted average price of $19.06 per share, resulting in proceeds to us of $101.0 million which we used to fund acquisitions. The scheduled maturity date of our forward sale agreements is December 31, 2025. As of September 30, 2025, there were 300,000 shares of common stock remaining under our forward sale agreements with Citigroup and 2,681,000 shares remaining to be settled pursuant to the forward sale transactions entered into under our At-the-Market offering program, for a combined total of 2,981,600 shares of our common stock. Assuming the 2,981,600 shares were settled at the September 30, 2025 forward sales price, we would receive additional proceeds of approximately $61.7 million.

Balance Sheet and Liquidity 

At September 30, 2025, our net debt to Adjusted EBITDA was 6.0x. As of the same date and including the effect of hedges, our weighted average effective interest rate on our consolidated debt was 4.3% with a weighted average maturity of 3.2 years, and 99.7% of our debt was either subject to fixed interest rates or was hedged. Also as of September 30, 2025, we had approximately $628.1 million in liquidity through a combination of unrestricted cash and cash equivalents, unsettled proceeds related to forward sale agreements (assuming the forward sale agreements are physically settled at the forward price determined at the closing of such forward sale agreements), and capacity under our unsecured revolver. 

Dividend Distribution

On September 8, 2025, our Board of Directors declared a quarterly dividend of $0.17 per share of common stock. The third quarter dividend was paid on October 24, 2025 to stockholders of record at the close of business on September 30, 2025.

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2025 EPS, FFO and CFFO Guidance

2025 Guidance Assumptions⁽¹⁾     

Our key guidance assumptions for 2025 are enumerated below. See the definitions at the end of this release for further information regarding our same-store definitions.

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See the schedules at the end of this earnings release for selected financial information for IRT.

Non-GAAP Financial Measures and Definitions

We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same-store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, October 30, 2025 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.888.440.3307, access code 1963990. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website until the next earnings release. A replay of the conference call can also be accessed telephonically until Thursday, November 6, 2025 by dialing 1.800.770.2030, access code 1963990.

Supplemental Information

We produce supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store portfolio information and other useful information for investors. The supplemental information is available via our website, www.irtliving.com, through the "Investor Relations" section.

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT), an S&P 400 MidCap Company, is a real estate investment trust (“REIT”) that owns and operates multifamily communities, across non-gateway U.S. markets. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT’s main objective is to provide attractive risk-adjusted returns to shareholders through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website, www.irtliving.com.

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, our planned use of remaining proceeds from our sales of common stock on a forward basis, our expectations with respect to the three properties which are classified as held for sale, our expectations with respect to our new joint venture and our expectations with respect to future acquisitions and dispositions. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, our planned use of the remaining proceeds from our sales of common stock on a forward basis, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, inability or failure to achieve anticipated benefits from future acquisitions and dispositions, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, economic conditions, including inflation and recessionary conditions and their related impacts on the real estate industry, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, the impacts from the U.S. government shutdown, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, including but not limited to a third party's unauthorized access to our data or the data of our residents, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31,2025, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

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FINANCIAL & OPERATING HIGHLIGHTS

Dollars in thousands, except per share data

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BALANCE SHEETS

Dollars in thousands, except per share data

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STATEMENTS OF OPERATIONS, FFO & CFFO

TRAILING FIVE QUARTERS

(Dollars in thousands, except per share data)

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STATEMENTS OF OPERATIONS, FFO & CFFO

Dollars in thousands, except per share data

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ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

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SAME-STORE PORTFOLIO NET OPERATING INCOME & NOI BRIDGE ^{(a) (b)}

TRAILING FIVE QUARTERS

Dollars in thousands, except per unit data

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SAME-STORE PORTFOLIO NET OPERATING INCOME ^(a)

THREE AND nine MONTHS ENDED September 30, 2025 AND 2024

Dollars in thousands, except per unit data

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SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED September 30, 2025

Dollars in thousands, except rent per unit