GICS Sector : Real Estate
Independence Realty Trust, Inc.(NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Louisville, Memphis, and Raleigh.IRT's investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers.
Independence Realty Trust, Inc. reported a solid financial performance for 2025, with Core FFO per share reaching $1.17, in line with the company's guidance. The company's same-store NOI grew by 1.8% in the fourth quarter, driven by a 2% increase in same-store revenue. Earnings per share (EPS) for the fourth quarter came in at $0.32, matching analyst estimates. The company's effective capital allocation strategy and operational efficiencies contributed to its resilient performance amidst challenging market fundamentals.
Publication Date: Feb -14
The company's value-add program continued to drive growth, with 2,003 units renovated in 2025, achieving an average unlevered return on investment of 15.3%. Looking ahead to 2026, Independence Realty Trust expects to renovate 4,500 units at ROIs consistent with historical results. The company's outlook for 2026 is improving, driven by receding supply pressures and demand fueled by job growth, population growth, and migration into its markets. The company expects to drive NOI growth by capturing recovery market rents and maintaining its focus on operating efficiencies.
The company's blended rent growth is expected to be around 1% in the first half of 2026 and 2.5% in the second half. The Midwest region is expected to deliver a full-year blended rent growth of 2.5% to 3%, while the Sun Belt region is expected to achieve a full-year blended rent growth of around 2%. As James J. Sebra noted, the new lease rate growth assumption is based on capturing a vast majority of the market rent growth, with new lease growth expected to be down about 2.25% in the first half of the year and up roughly 75 basis points in the second half.
With a P/E Ratio of 171.06 and an EV/EBITDA of 14.89, the market appears to be pricing in a relatively high valuation for Independence Realty Trust. However, the company's dividend yield of 4.1% provides a relatively attractive return for income investors. The company's capital allocation strategy remains focused on investments in its value-add program, and it plans to use capital from non-EBITDA generating sources to buy back stock in a positive and accretive way for shareholders. Analysts estimate next year's revenue growth at 3.2%, which may help support the company's valuation.
Independence Realty Trust: Solid Sunbelt Multifamily Operations, Shares Fairly Valued
Feb -13
Independence Realty Trust, Inc. (IRT) Q4 2025 Earnings Call Transcript
Feb -12
Independence Realty Trust (IRT) Matches Q4 FFO Estimates
Feb -11
Independence Realty Trust Announces Fourth Quarter and Full Year 2025 Financial Results
Feb -11
Property Type Round-Up From REITWorld 2025
Feb -03
Independence Realty Trust Announces Tax Treatment of Dividends in 2025
Jan -23
Pacer Advisors Inc. Makes New $857,000 Investment in Independence Realty Trust, Inc. $IRT
Jan -03
REIT Replay: REIT Indexes Grow Alongside Broader Market During Week Of Christmas
Dec -30
Rental growth of 1.8% driven by increasing demand for apartments, particularly in the Sunbelt region, where Independence Realty Trust, Inc. has a strong presence. Additionally, the company's focus on value-add renovations and strategic acquisitions has enhanced its portfolio, leading to higher rental rates and occupancy levels.
Independence Realty Trust's Other Property segment growth of 1.5% is driven by increasing demand for single-family rentals, strategic acquisitions, and effective cost management. Additionally, the company's focus on value-add initiatives, such as renovations and rebranding, contributes to revenue growth. Furthermore, the segment benefits from a diversified portfolio of properties across the United States, mitigating regional market risks.
Independence Realty Trust's 2.2% growth is driven by increasing demand for single-family rental properties, strategic acquisitions, and effective cost management. Additionally, the company's focus on operational efficiency, technology integration, and strong property management capabilities contribute to its growth momentum.
Independence Realty Trust, Inc. owns and operates a diverse portfolio of multifamily properties, offering residents a range of amenities and services.
The company's apartment communities provide residents with a comfortable living experience, featuring amenities such as swimming pools, fitness centers, and community spaces.
Independence Realty Trust, Inc. offers comprehensive property management services, including leasing, maintenance, and financial management.
As a REIT, Independence Realty Trust, Inc. provides investors with a diversified portfolio of income-generating properties, offering a stable source of income.
The threat of substitutes for Independence Realty Trust, Inc. is medium due to the presence of alternative real estate investment trusts (REITs) and other investment options.
The bargaining power of customers for Independence Realty Trust, Inc. is low due to the fragmented nature of the real estate market and the lack of concentration among tenants.
The bargaining power of suppliers for Independence Realty Trust, Inc. is medium due to the presence of multiple suppliers of goods and services, but the company's dependence on a few key suppliers.
The threat of new entrants for Independence Realty Trust, Inc. is high due to the relatively low barriers to entry in the REIT industry and the attractiveness of the industry to new investors.
The intensity of rivalry for Independence Realty Trust, Inc. is high due to the competitive nature of the REIT industry and the presence of multiple established players.
| Value | |
|---|---|
| Debt Weight | 41.43% |
| Debt Cost | 4.61% |
| Equity Weight | 58.57% |
| Equity Cost | 9.22% |
| WACC | 7.31% |
| Leverage | 70.73% |
Value: 3.3
Growth: 4.7
Quality: 6.7
Yield: 8.0
Momentum: 6.0
Volatility: 9.0
1-Year Total Return ->
Value: 2.8
Growth: 5.2
Quality: 5.5
Yield: 7.0
Momentum: 3.0
Volatility: 10.0
1-Year Total Return ->
Value: 2.1
Growth: 5.2
Quality: 6.2
Yield: 5.0
Momentum: 4.0
Volatility: 10.0
1-Year Total Return ->
Value: 2.8
Growth: 5.8
Quality: 4.6
Yield: 7.0
Momentum: 3.0
Volatility: 9.0
1-Year Total Return ->
Value: 2.3
Growth: 3.9
Quality: 4.4
Yield: 8.0
Momentum: 2.5
Volatility: 9.7
1-Year Total Return ->
Value: 4.4
Growth: 4.3
Quality: 5.4
Yield: 4.0
Momentum: 6.0
Volatility: 3.3
1-Year Total Return ->