Independence Realty (IRT) AI Stock Analysis

• Market Cap: $4.96B
• Dividend Yield: 3.05%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 120.2
• Beta (1Y): 1.15
• Revenue Growth: -3.17%
• EPS Growth: N/A
• Country: US
• Employees: 917
• Sector: Real Estate
• Sector Strength: 72
• Industry: REITs
• EPS (TTM): 0.17
• Shares Outstanding: 230,914,120
• 10 Day Avg. Volume: 2,046,099
• 30 Day Avg. Volume: 2,022,307
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.55
• Price to Cash Flow (P/CF): 19.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.75
• Price Target Upside: 3.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Independence Realty Trust shows robust financial health with strong operational efficiency and a solid balance sheet. The strong guidance and strategic initiatives support a positive outlook despite some market pressures and valuation concerns. The technical analysis indicates strong momentum, though caution is advised due to potential overbought conditions. Overall, IRT is well-positioned within the REITs industry, but the high valuation demands continued strong performance.

Positive Factors

Earnings Performance

The recommendation is to take advantage of a unique opportunity and buy the inflection point in the stock, which is expected to lead to a prolonged period of earnings outperformance.

Financial Flexibility

The expanded unsecured credit facility, increasing borrowing capacity to $750mm, gives Independence Realty Trust greater financial flexibility and a more favorable capital structure.

Negative Factors

Lease Growth Challenges

New supply has negatively impacted blended lease growth, leading IRT to reduce SS Revenue guidance twice this year.

Independence Realty Business Overview & Revenue Model

Company Description

Independence Realty (IRT) is a real estate investment trust (REIT) that specializes in the acquisition, ownership, operation, and management of multifamily apartment communities. The company primarily focuses on offering high-quality residential living spaces in various urban and suburban markets across the United States. IRT aims to provide exceptional living experiences to its residents while generating sustainable long-term returns for its investors.

How the Company Makes Money

Independence Realty makes money primarily through rental income generated from its multifamily apartment communities. As a REIT, IRT acquires and manages residential properties, collecting rental payments from tenants as the primary source of revenue. Additionally, the company may earn income from property management fees and service charges associated with maintaining and operating its properties. IRT's earnings are also influenced by strategic acquisitions and renovations that can enhance property value and increase rental rates. The company benefits from economies of scale and a diversified property portfolio, which helps mitigate risks and stabilize cash flow. Partnerships with local developers and real estate professionals can also contribute to the company's growth and profitability.

Independence Realty Financial Statement Overview

Summary

Independence Realty has shown strong operational metrics and a solid balance sheet, with effective cost management and significant improvements in EBIT and EBITDA margins. The absence of debt enhances financial stability, but revenue growth has been inconsistent, and cash flow conversion needs more consistency.

Income Statement

Independence Realty has shown a strong gross profit margin due to its effective cost management, maintaining high levels of gross profit relative to total revenue. The net profit margin, while positive in 2024, reflects volatility due to past losses. Revenue growth has been inconsistent, but the company has demonstrated an ability to improve EBIT and EBITDA margins, indicating operational efficiency improvements.

Balance Sheet

The balance sheet is strengthened by a healthy equity position, with no current total debt reported in 2024, which significantly improves the debt-to-equity ratio. The return on equity (ROE) shows positive, albeit moderate, returns, indicating the company is generating reasonable income from its equity base. The equity ratio reflects a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow remains robust, supporting the company's ability to generate cash from its core operations. Free cash flow has grown, demonstrating effective capital expenditure management. However, fluctuations in free cash flow to net income ratios indicate variability in translating earnings into cash, which could pose a risk if not stabilized.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
640.03M	660.98M	628.52M	250.25M	211.91M
	Gross Profit
640.03M	167.37M	372.22M	147.46M	120.43M
	EBIT
0.00	147.84M	92.50M	51.94M	44.52M
	EBITDA
337.03M	291.08M	345.35M	220.88M	105.21M
	Net Income Common Stockholders
39.29M	-17.23M	33.70M	8.19M	-21.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.23M	22.85M	16.08M	35.97M	8.75M
	Total Assets
6.06B	6.28B	6.53B	6.51B	1.73B
	Total Debt
2.33B	2.43B	4.60B	2.71B	945.69M
	Net Debt
2.31B	2.38B	4.59B	2.67B	936.93M
	Total Liabilities
2.48B	2.71B	2.79B	2.86B	1.02B
	Stockholders Equity
3.44B	3.43B	3.60B	3.48B	708.06M
Cash Flow		Free Cash Flow
84.69M	115.54M	165.56M	9.28M	37.56M
	Operating Cash Flow
259.75M	262.17M	249.54M	52.26M	74.96M
	Investing Cash Flow
-20.61M	-1.71M	-135.77M	-216.12M	-124.54M
	Financing Cash Flow
-246.43M	-253.74M	-135.43M	215.92M	48.76M

Independence Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRT, the sentiment is Positive. The current price of 21 is above the 20-day moving average (MA) of 20.78, above the 50-day MA of 19.87, and above the 200-day MA of 19.44, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRT.

Independence Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQR	78 Outperform	$28.13B	26.46	9.36%	3.75%	3.80%	24.08%
AVB	76 Outperform	$31.08B	28.77	9.10%	3.11%	4.85%	16.04%
IRT	75 Outperform	$4.96B	120.21	1.14%	3.05%	-3.17%	―
UDR	71 Outperform	$14.64B	172.26	2.41%	3.82%	2.72%	-80.72%
CPT	69 Neutral	$13.01B	81.12	3.38%	3.39%	0.55%	-59.48%
Sector *	61 Neutral	$4.91B	18.99	-3.12%	7.77%	6.71%	-19.69%
MAA	61 Neutral	$20.01B	37.18	8.73%	3.56%	1.98%	-4.78%

Independence Realty Corporate Events

Independence Realty Highlights 2024 Achievements and 2025 Outlook

In its recent investor presentation, Independence Realty Trust highlighted its strategic milestones achieved in 2024, including raising $268 million in equity capital and acquiring three communities to expand its market presence. The company reduced leverage and achieved an investment-grade issuer rating. For 2025, IRT provided guidance indicating strong improvement in fundamentals, with expected growth in net operating income and core funds from operations per share. The company plans to continue its Value Add renovation program, which has historically generated significant returns, and aims to leverage its liquidity and flexible balance sheet to drive further growth.

Independence Realty Reports Strong Q4 2024 Results

Independence Realty Trust reported strong financial results for the fourth quarter and full year of 2024, achieving the high end of its guidance with a core funds from operations (CFFO) per share of $1.16 and net operating income (NOI) growth of 3.2%. The company saw a significant improvement in its financial position with a net debt-to-Adjusted EBITDA ratio decrease to 5.9x and a renewed and expanded unsecured line of credit. These achievements were supported by strategic renovations in their value-add program, leading to a 15.7% return on investment, and an improved S&P credit rating to BBB. As the company looks forward to 2025, it is poised for further growth by capitalizing on positive market trends.

Independence Realty Expands Credit Facility to Enhance Growth

Independence Realty Trust, Inc. announced an amended and restated unsecured credit facility, increasing its revolving credit capacity from $500 million to $750 million and extending its maturity to 2029. This move, supported by investment-grade ratings, aims to enhance IRT’s financial flexibility, decrease interest costs, and provide long-term value for stakeholders, with interest rate margins reflecting a reduction of approximately 34 basis points.

Independence Realty Trust Expands Portfolio in Key Markets

Independence Realty Trust, Inc. (IRT) is making strategic moves in the real estate market, focusing on value-add renovations and expanding its portfolio with acquisitions in key markets like Charlotte and Orlando. With a notable investment grade rating from S&P Global Ratings, IRT aims to enhance their financial stability and growth potential. The company has shown steady performance with a 3.2% expected same store NOI growth and plans to leverage its $6.2 billion in gross assets to drive long-term growth. Their ongoing projects promise returns and increased rental rates, attracting investors keen on real estate opportunities.