Yahoo Finance

• Core FFO per Share: $1.16 for the full year 2024, at the high end of guidance.

• Same Store NOI Growth: 3.2% for the year, with a 5.3% increase in Q4.

• Same Store Average Occupancy: Increased by 110 basis points to 95.2%.

• Average Effective Rental Rates: Increased by 1.3% for the year.

• Resident Renewal Rate: 62.7% for the year.

• Value Add Program: Completed 1,671 renovations, driving a $239 average increase in monthly rent per unit.

• Acquisitions: $240 million invested in three properties with a blended economic cap rate of 5.7%.

• Net Debt to Adjusted EBITDA: Reduced to 5.9 times at year-end.

• Investment Grade Rating: Received a B flat rating with a stable outlook from S&P and Fitch.

• Liquidity: Nearly three-quarters of a billion dollars, including $156 million available on forward equity commitments.

• 2025 EPS Guidance: $0.19 to $0.22 per share.

• 2025 Core FFO Guidance: $1.16 to $1.19 per share.

• 2025 Same Store NOI Growth Expectation: 2.1% at the midpoint.

• 2025 Blended Rental Rate Growth Expectation: 1.6% for the year.

• 2025 Planned Renovations: Approximately 2,500 to 3,000 units.

• 2025 Acquisition Plan: Approximately $240 million in properties with a mid-5s economic cap rate.

• Warning! GuruFocus has detected 10 Warning Signs with IRT.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Independence Realty Trust Inc (NYSE:IRT) achieved a core FFO per share of $1.16 for 2024, which was at the high end of their guidance.

• The company increased same store average occupancy by 110 basis points to 95.2% and achieved a 1.3% increase in average effective rental rates.

• IRT completed 1,671 renovations in 2024, driving a $239 average increase in monthly rent per unit and achieving a 15% return on investment.

• The company strengthened its portfolio by investing $240 million to acquire three properties in high growth markets, expanding its presence in Charlotte, Tampa, and Orlando.

• IRT achieved investment grade issuer status, receiving a B flat rating with a stable outlook from both S&P and Fitch, which improved their cost of debt capital.

Negative Points

• New lease rate growth remains negative early in 2025, although it is gradually improving.

• The company expects a blended rental rate growth of only 1.6% for 2025, which is relatively conservative compared to peers.

• There is a forecasted increase in same store operating expenses by 3.5% in 2025, driven by a 3.8% increase in controllable expenses.

• Bad debt was up sequentially in the fourth quarter of 2024, with expectations to improve to 1.4% of revenue in 2025.

• The company is cautious about the impact of elevated supply in markets like Denver and Charlotte, which could affect rental rates and occupancy.