Independence Realty Trust initiated with an Equal Weight at Barclays

Barclays initiated coverage of Independence Realty Trust (IRT) with an Equal Weight rating and $23 price target as part of a broader research note on REITs. Despite high supply growth in the REIT’s Sunbelt-anchored portfolio, the stock has returned more than 70% cumulatively over the past five years, nearly triple the peer group average over that span thanks to “leveraged Class B redevelopment and active portfolio recycling”, but more recently, the company embarked on a de-leveraging / portfolio “optimization” strategy, with the likely trade-off comprising modestly reduced prospective equity returns, in return for a lower overall risk profile, the analyst tells investors in a research note.