Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Independence Realty Trust Inc	NYSE:IRT	NYSE	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.37	1.80%	20.90	20.99	20.595	20.67	3,084,720	21:01:52

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________________

FORM 8-K

_____________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 26, 2023

_____________________________________________

Independence Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________


Maryland	001-36041	26-4567130
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1835 Market Street, Suite 2601

Philadelphia, Pennsylvania, 19103

(Address of Principal Executive Office) (Zip Code)

(267) 270-4800

(Registrant’s telephone number, including area code)

N/A

Former name or former address, if changed since last report

_____________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock

IRT

NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Condition.

On July 26, 2023, IRT issued a press release regarding its earnings for the three and six months ended June 30, 2023. Additionally, IRT is furnishing certain supplemental information with this Current Report. Copies of such press release and such supplemental information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report and are incorporated by reference herein. The information in this Current Report, including Exhibit 99.1 and Exhibit 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 7.01 Regulation FD Disclosure.

The information provided in Item 2.02 above is incorporated by reference into this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.


99.1						Press Release
99.2						Supplemental Information
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Independence Realty Trust, Inc.

July 26, 2023	By:	/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

Exhibit 99.1

Independence Realty Trust Announces Second Quarter 2023 Financial Results

Increases Midpoint of Full Year 2023 EPS and Core FFO Guidance Ranges

PHILADELPHIA – (BUSINESS WIRE) – July 26, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its second quarter 2023 financial results and raised the midpoint of its full year 2023 earnings and Core FFO guidance ranges.

Second Quarter Highlights

•Net income (loss) available to common shares of $10.7 million for the quarter ended June 30, 2023 compared to $(7.2) million for the quarter ended June 30, 2022.

•Earnings (loss) per diluted share of $0.05 for the quarter ended June 30, 2023 compared to $(0.03) for the quarter ended June 30, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 6.3% for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022.

•Core Funds from Operations (“CFFO”) of $63.7 million for the quarter ended June 30, 2023 compared to $58.6 million for the quarter ended June 30, 2022. CFFO per share was $0.28 for the second quarter of 2023, as compared to $0.26 for the second quarter of 2022.

•Adjusted EBITDA of $89.2 million for the quarter ended June 30, 2023 compared to $83.2 million for the quarter ended June 30, 2022.

•Value add program completed renovations at 625 units during the quarter ended June 30, 2023, achieving a weighted average return on investment during the quarter of 16.2%.

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.

Management Commentary

“Our second quarter growth of 6.3% in same store NOI and 7.7% in Core FFO per share reflects the strength of our portfolio and ability to successfully deliver operational effectiveness” said Scott Schaeffer, Chairman and CEO of IRT. “We will remain focused on continuing to invest in our value add program and unlocking additional value by leveraging technology and innovation to enhance our management platform. These ongoing efforts, along with our year-to-date performance, allow us to reaffirm our full year operational guidance and increase the midpoint of our Core FFO guidance.”

Same-Store Portfolio(1) Operating Results


	Second Quarter 2023 Compared to Second Quarter 2022	Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022
Rental and other property revenue	6.2% increase	6.9% increase
Property operating expenses	5.9% increase	6.2% increase
Net operating income (“NOI”)	6.3% increase	7.3% increase
Portfolio average occupancy	130 bps decrease to 94.2%	180 bps decrease to 93.6%
Portfolio average rental rate	8.0% increase to $1,531	9.4% increase to $1,530
NOI Margin	10 bps increase to 62.1%	20 bps increase to 62.7%

(1)Same-store portfolio includes 115 properties, which represent 34,197 units.

Operating Metrics

The table below summarizes operating metrics for the same-store portfolio for the applicable periods.


	2Q 2023		3Q 2023(3)
Same-Store Portfolio(1)
Average Occupancy	94.2	%	94.5	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.8	%	2.7	%
Renewal Leases	2.3	%	4.5	%
Blended	2.5	%	3.9	%
Resident retention rate	54.2	%	54.4	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	94.7	%	95.0	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.4	%	1.9	%
Renewal Leases	2.3	%	4.2	%
Blended	2.3	%	3.5	%
Resident retention rate	53.8	%	54.8	%
Value Add (23 properties with Ongoing Value Add)
Average Occupancy	92.3	%	92.8	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	4.3	%	5.7	%
Renewal Leases	2.3	%	5.5	%
Blended	3.2	%	5.6	%
Resident retention rate	55.5	%	52.9	%

(1)Same-store portfolio includes 115 properties, which represent 34,197 units.

(2)Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months.

(3)3Q 2023 average occupancy and resident retention rates are through July 24, 2023. 3Q 2023 new lease and renewal rates are for leases commencing during 3Q 2023 that were signed as of July 24, 2023.

(4)As of July 24, 2023, same-store portfolio occupancy was 94.8%, same-store portfolio excluding ongoing value add occupancy was 95.3%, and value add occupancy was 92.9%.

Value Add Program

We completed renovations on 625 units during the quarter ended June 30, 2023, achieving a return on investment of 16.2%, with an average cost per unit renovated of $17,601, and average rent increase per renovated unit of $237. For the six months end June 30, 2023, we have completed renovations on 1,260 units, achieving a return on investment of 17.0%, with an average cost per unit renovated of $16,496, and average rent increase per renovated unit of $232. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of June 30, 2023.

Investment Activity

Held for Sale

During the three months ended June 30, 2023, in connection with our ongoing capital recycling program, we classified one property in Chicago, Illinois, as held for sale. We expect the sale to close in the second half of 2023 and to apply net proceeds from the sale to reduce indebtedness. Consummation of the sale is subject to entry into a definitive agreement and there can be no assurance that the sale will be consummated on expected terms, or at all.

Capital Expenditures

For the three months ended June 30, 2023, recurring capital expenditures for the total portfolio were $6.4 million, or $184 per unit. For the six months ended June 30, 2023, recurring capital expenditures for the total portfolio were $10.5 million, or $301 per unit.

Capital Markets

Dividend Distribution

On May 10, 2023, our Board of Directors declared a quarterly cash dividend of $0.16 per share of our common stock, which represented a 14% increase in the dividend over the prior quarterly rate of $0.14 per share. This dividend was paid on July 21, 2023 to stockholders of record at the close of business on June 30, 2023.

2023 EPS and CFFO Guidance

We increased the midpoint of our EPS and CFFO per share guidance ranges and reaffirmed the midpoint of our same-store NOI guidance. Earnings per diluted share is projected to be in the range of $0.25 to $0.27. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s definition and rationale for the usefulness of CFFO.


	Previous Guidance				Current Guidance				Change at Midpoint
2023 Full Year EPS and CFFO Guidance(1)(2)	Low		High		Low		High
Earnings per share	$	0.23	$	0.27	$	0.25	$	0.27	$	0.01
Adjustments:
Depreciation and amortization	0.95		0.95		0.95		0.95		—
Gain on sale of real estate assets(3)	(0.01)		(0.01)		(0.01)		(0.01)		—
Loan (premium accretion) discount amortization, net	(0.05)		(0.05)		(0.05)		(0.05)		—
Core FFO per share	$	1.12	$	1.16	$	1.14	$	1.16	$	0.01

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2023 EPS and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below.

(2)Per share guidance is based on 230.4 million weighted average shares and units outstanding.

(3)Gain on sale of real estate assets includes one asset sale that occurred during the first quarter of 2023 and one property identified as held for sale as of June 30, 2023.

2023 Guidance Assumptions

Our key guidance assumptions for 2023 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.


Same-Store Portfolio	Previous 2023 Outlook	Current 2023 Outlook(1)	Change at Midpoint
Number of properties/units	116 properties / 34,571 units	115 properties / 34,179 units	—
Property revenue growth	5.7% to 7.0%	6.1% to 6.6%	—
Controllable operating expense growth	3.3% to 5.4%	4.7% to 5.4%	0.7%
Real estate tax and insurance expense growth	8.1% to 9.1%	7.5% to 8.1%	(0.8)%
Total operating expense growth	5.2% to 6.9%	5.7% to 6.4%	—
Property NOI growth	5.0% to 8.0%	6.0% to 7.0%	—

Corporate Expenses
General and administrative & Property management expenses	$51.5 million to $53.5 million	$50.5 million to $51.5 million	($1.5) million
Interest expense(2)	$104.5 million to $106.5 million	$102.5 million to $103.5 million	($2.5) million

Transaction/Investment Volume(3)
Acquisition volume	None	None	—
Disposition volume	$35 million to $40 million	$122 million to $127 million	$87 million

Capital Expenditures
Recurring	$19.0 million to $21.0 million	$20.0 million to $22.0 million	$1.0 million
Value add & non-recurring	$78.0 million to $82.0 million	$78.0 million to $82.0 million	—
Development	$80.0 million to $90.0 million	$80.0 million to $90.0 million	—

(1)This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” below.

(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting, we recorded a $72.1 million loan premium, net, related to STAR debt. This loan premium will be accreted into and reduce GAAP interest expense over the remaining term of the associated debt. However, loan premium accretion will be excluded from CFFO.

(3)Includes one asset sale that occurred in the first quarter 2023 and one property identified as held for sale as of June 30, 2023. We continue to evaluate our portfolio for capital recycling opportunities so actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements” below.

Selected Financial Information

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, July 27, 2023 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 playback of the conference call can also be accessed telephonically until Thursday, August 3, 2023 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 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) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. 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 aims to provide stockholders attractive risk-adjusted returns 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 can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.

These forward-looking statements involve estimates, projections, forecasts and assumptions 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, increased regulations generally and specifically on the rental housing market including legislation that may regulate rents 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, the effects of natural and other disasters, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, 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, 2022, 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.

Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

Dollars in thousands, except per share data (unaudited)


	For the Three Months Ended
	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$10,709	$8,648	$33,631	$16,223	$(7,205)
Earnings (loss) per share -- diluted	$0.05	$0.04	$0.15	$0.07	$(0.03)
Rental and other property revenue	$163,601	$161,135	$162,493	$160,300	$154,643
Property operating expenses	$62,071	$59,255	$57,450	$59,967	$58,976
NOI	$101,530	$101,880	$105,043	$100,333	$95,667
NOI margin	62.1%	63.2%	64.6%	62.6%	61.9%
Adjusted EBITDA	$89,156	$87,594	$93,017	$89,264	$83,228
FFO per share	$0.28	$0.27	$0.31	$0.30	$0.29
CORE FFO per share	$0.28	$0.27	$0.29	$0.28	$0.26
Dividends per share	$0.16	$0.14	$0.14	$0.14	$0.14
CORE FFO payout ratio	57.1%	51.9%	48.3%	50.0%	53.8%
Portfolio Data:
Total gross assets	$7,117,404	$7,045,306	$7,034,902	$7,097,280	$6,801,034
Total number of operating properties	119	119	120	122	120
Total units	35,249	35,249	35,526	36,176	35,594
Portfolio period end occupancy (a)	94.6%	94.1%	93.6%	94.6%	95.7%
Portfolio average occupancy (a)	94.1%	93.1%	93.9%	94.2%	95.5%
Portfolio average effective monthly rent, per unit (a)	$1,538	$1,535	$1,522	$1,484	$1,414
Same-store portfolio period end occupancy (b)	94.6%	94.1%	93.6%	94.6%	95.4%
Same-store portfolio average occupancy (b)	94.2%	93.1%	93.9%	94.2%	95.5%
Same-store portfolio average effective monthly rent, per unit (b)	$1,531	$1,528	$1,517	$1,484	$1,417
Capitalization:
Total debt (c)	$2,650,805	$2,628,632	$2,631,645	$2,713,625	$2,552,936
Common share price, period end	$18.22	$16.03	$16.86	$16.73	$20.73
Market equity capitalization	$4,202,342	$3,694,970	$3,880,432	$3,850,365	$4,729,580
Total market capitalization	$6,853,147	$6,323,602	$6,512,077	$6,563,990	$7,282,516
Total debt/total gross assets	37.2%	37.3%	37.4%	38.2%	37.5%
Net debt to Adjusted EBITDA (d)	7.2x	7.3x	6.9x	7.2x	7.4x
Interest coverage	4.0x	4.0x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,697,889	224,556,870	224,064,940	224,056,179	222,060,280
OP units outstanding	5,946,571	5,946,571	6,091,171	6,091,171	6,091,171
Common shares and OP units outstanding	230,644,460	230,503,441	230,156,111	230,147,350	228,151,451
Weighted average common shares and OP units	230,369,086	230,186,297	229,994,927	228,051,780	227,964,753

(a)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

(b)Same-store portfolio consists of 115 properties, which represent 34,197 units.

(c)Includes indebtedness associated with real estate held for sale, as applicable.

(d)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended June 30, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 7.2x, 7.3x, 6.9x, 7.4x, and 7.4x, respectively.

Schedule II

Independence Realty Trust, Inc.

Reconciliation of Net Income (Loss) to Funds from Operations and Core Funds From Operations

(Dollars in thousands, except share and per share amounts)

(unaudited)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Funds From Operations (FFO):
Net income (loss)	$	10,988	$	(7,399)	$	19,861	$	69,482
Add-Back (Deduct):
Real estate depreciation and amortization	53,701		72,298		106,989		150,241
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities	575		515		994		515
Gain on sale of real estate assets, net, excluding prepayment gains	—		—		(314)		(94,712)
FFO	$	65,264	$	65,414	$	127,530	$	125,526
FFO per share	$	0.28	$	0.29	$	0.55	$	0.55
CORE Funds From Operations (CFFO):
FFO	$	65,264	$	65,414	$	127,530	$	125,526
Add-Back (Deduct):
Other depreciation and amortization	283		495		531		725

Casualty losses (gains), net	680		(5,592)		831		(6,985)
Loan (premium accretion) discount amortization, net	(2,737)		(2,741)		(5,493)		(5,495)
Prepayment (gains) penalties on asset dispositions	—		—		(670)		—

Other expense (income), net	192		(294)		234		(673)
Merger and integration costs	—		1,307		—		3,202
Restructuring costs	—		—		3,213		—
CFFO	$	63,682	$	58,589	$	126,176	$	116,300
CFFO per share	$	0.28	$	0.26	$	0.55	$	0.51
Weighted-average shares and units outstanding	230,369,086		227,966,261		230,278,208		227,873,108

(a)Included in the six months ended June 30, 2023 and 2022 is $2.7 million and $2.4 million, respectively, of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.

Schedule III

Independence Realty Trust Inc.

Reconciliation from Net Income (Loss) to Same-Store Net Operating Income (a)

Dollars in thousands

(unaudited)


	For the Three Months Ended
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Net income (loss)	$	10,988	$	8,872	$	34,524	$	16,653	$	(7,399)

Other revenue	(354)		(239)		(306)		(300)		(120)
Property management expenses	6,818		6,371		6,593		5,744		6,139
General and administrative expenses	5,910		8,154		5,739		5,625		6,968
Depreciation and amortization expense	53,984		53,536		52,161		49,722		72,793

Casualty losses (gains), net	680		151		(1,690)		(191)		(5,592)
Interest expense	22,227		22,124		23,337		22,093		20,994
Gain on sale of real estate assets, net	—		(985)		(17,044)		—		—

Other loss (income), net	72		(93)		(57)		(765)		(294)
Loss (gain) from investments in unconsolidated real estate entities	1,205		776		(242)		1,477		871
Merger and integration costs	—		—		2,028		275		1,307
Restructuring costs	—		3,213		—		—		—
NOI	$	101,530	$	101,880	$	105,043	$	100,333	$	95,667
Less: Non same-store portfolio NOI	3,400		3,804		4,866		3,937		3,384
Same-store portfolio NOI	$	98,130	$	98,076	$	100,177	$	96,396	$	92,283

(a)Same-store portfolio consists of 115 properties, which represent 34,197 units.

Schedule IV

Independence Realty Trust, Inc.

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Interest Coverage Ratio

(Dollars in thousands)

(unaudited)


	Three Months Ended
ADJUSTED EBITDA:	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Net income (loss)	$	10,988	$	8,872	$	34,524	$	16,653	$	(7,399)
Add-Back (Deduct):
Interest expense	22,227		22,124		23,337		22,093		20,994
Depreciation and amortization	53,984		53,536		52,161		49,722		72,793

Casualty losses (gains), net	680		151		(1,690)		(191)		(5,592)
Gain on sale of real estate assets, net	—		(985)		(17,044)		—		—

Merger and integration costs	—		—		2,028		275		1,307
Loss (gain) from investments in unconsolidated real estate entities	1,205		776		(242)		1,477		1,125
Other loss (income), net	72		(93)		(57)		(765)		—
Restructuring costs	—		3,213		—		—		—
Adjusted EBITDA	$	89,156	$	87,594	$	93,017	$	89,264	$	83,228

INTEREST COST:
Interest expense	$	22,227	$	22,124	$	23,337	$	22,093	$	20,994

INTEREST COVERAGE:	4.0x		4.0x		4.0x		4.0x		4.0x


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
ADJUSTED EBITDA:	2023		2022		2023		2022
Net income (loss)	$	10,988	$	(7,399)	$	19,861	$	69,482
Add-Back (Deduct):
Interest expense	22,227		20,994		44,351		41,525
Depreciation and amortization	53,984		72,793		107,520		150,966

Casualty losses (gains), net	680		(5,592)		831		(6,985)
Gain on sale of real estate assets, net	—		—		(985)		(94,712)

Merger and integration costs	—		1,307		—		3,202
Loss (gain) from investments in unconsolidated real estate entities	1,205		1,125		1,981		1,125
Other loss (income), net	72		—		(21)		—
Restructuring costs	—		—		3,213		—
Adjusted EBITDA	$	89,156	$	83,228	$	176,751	$	164,603

INTEREST COST:
Interest expense	$	22,227	$	20,994	$	44,351	$	41,525

INTEREST COVERAGE:	4.0x		4.0x		4.0x		4.0x

Schedule V

Independence Realty Trust, Inc.

Definitions

Average Effective Monthly Rent per Unit

Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metric, when presented, reflects the average effective rent per month.

Average Occupancy

Average occupancy represents the average occupied units for the reporting period divided by the average of total units available for rent for the reporting period.

Development Property

A development property is a property that is either currently under development or is in lease-up prior to reaching overall occupancy of 90%.

EBITDA and Adjusted EBITDA

Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before certain other non-cash or non-operating gains or losses related to items such as asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty (gains) losses, merger and integration costs, income (loss) from investments in unconsolidated real estate entities, and restructuring costs. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

We believe that FFO and CFFO, each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, gains or losses on sales of real estate and the cumulative effect of changes in accounting principles. While our calculation of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to FFO computations of such other REITs.

CFFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including depreciation and amortization of other items not included in FFO, and other non-cash or non-operating gains or losses related to items such as casualty (gains) losses, loan premium accretion and discount amortization, debt extinguishment costs, merger and integration costs, and restructuring costs from the determination of FFO.

Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current

operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.

Net Debt

Net debt, a non-GAAP financial measure, equals total consolidated debt less cash and cash equivalents and loan premiums and discounts. The following table provides a reconciliation of total consolidated debt to net debt (Dollars in thousands).


	As of
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Total debt	$	2,650,805	$	2,628,632	$	2,631,645	$	2,713,625	$	2,552,936
Less: cash and cash equivalents	(14,349)		(12,448)		(16,084)		(23,753)		(11,378)
Less: loan discounts and premiums, net	(53,520)		(56,256)		(59,937)		(63,340)		(66,091)
Total net debt	$	2,582,936	$	2,559,928	$	2,555,624	$	2,626,532	$	2,475,467

We present net debt and net debt to Adjusted EBITDA because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.

Net Operating Income

We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expense, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expenses, net gains on sale of assets, merger and integration costs, and restructuring costs.

Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same-store and non same-store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.

Non Same-Store Properties and Non Same-Store Portfolio

Properties that did not meet the definition of a same-store property as of the beginning of the previous year.

Same-Store Properties and Same-Store Portfolio

We review our same-store portfolio at the beginning of each calendar year. Properties are added into the same-store portfolio if they were owned and not a development property at the beginning of the previous year. Properties that are held for sale or have been sold are excluded from the same-store portfolio.

Total Gross Assets

Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (dollars in thousands).


	As of
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Total assets	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634
Plus: accumulated depreciation (a)	523,446		475,001		426,097		386,606		337,338
Plus: accumulated amortization	76,558		76,558		76,710		77,141		77,062
Total gross assets	$	7,117,404	$	7,045,306	$	7,034,902	$	7,097,280	$	6,801,034

(a)Includes accumulated depreciation associated with real estate held for sale, as applicable.

Exhibit 99.2

NYSE: IRT

WWW.IRTLIVING.COM

TABLE OF CONTENTS


Company Information			3

Forward-Looking Statements			4

Earnings Release Text			5

Financial & Operating Highlights			11

Balance Sheets			12

Statements of Operations, FFO & CORE FFO
Trailing Five Quarters			13
Three and Six Months Ended June 30, 2023 and 2022			14

Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing Five Quarters			15
Three and Six Months Ended June 30, 2023 and 2022			15

Same-Store Portfolio Net Operating Income and NOI Bridge
Trailing Five Quarters			16
Three and Six Months Ended June 30, 2023 and 2022			17

Same-Store Portfolio Net Operating Income by Market
Three Months Ended June 30, 2023 and 2022			18
Six Months Ended June 30, 2023 and 2022			19

Property Portfolio NOI Exposure by Market			20

Value Add Summary			21

Investment & Development Activity			22

Debt Summary			23

Debt Covenant & Unencumbered Asset Statistics			24

Definitions			25

Independence Realty Trust

June 30, 2023

Company Information:


Corporate Headquarters			1835 Market Street, Suite 2601
			Philadelphia, PA 19103
			267.270.4800

Trading Symbol			NYSE: “IRT”

Investor Relations Contact			Edelman Smithfield
			Ted McHugh and Lauren Torres
			917-365-7979
			IRT@edelman.com

Forward-Looking Statements

Independence Realty Trust Announces Second Quarter 2023 Financial Results

Increases Midpoint of Full Year 2023 EPS and Core FFO Guidance Ranges

Second Quarter Highlights

•Net income (loss) available to common shares of $10.7 million for the quarter ended June 30, 2023 compared to $(7.2) million for the quarter ended June 30, 2022.

•Earnings (loss) per diluted share of $0.05 for the quarter ended June 30, 2023 compared to $(0.03) for the quarter ended June 30, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 6.3% for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022.

•Adjusted EBITDA of $89.2 million for the quarter ended June 30, 2023 compared to $83.2 million for the quarter ended June 30, 2022.

•Value add program completed renovations at 625 units during the quarter ended June 30, 2023, achieving a weighted average return on investment during the quarter of 16.2%.

Management Commentary

Same-Store Portfolio(1) Operating Results


	Second Quarter 2023 Compared to Second Quarter 2022	Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022
Rental and other property revenue	6.2% increase	6.9% increase
Property operating expenses	5.9% increase	6.2% increase
Net operating income (“NOI”)	6.3% increase	7.3% increase
Portfolio average occupancy	130 bps decrease to 94.2%	180 bps decrease to 93.6%
Portfolio average rental rate	8.0% increase to $1,531	9.4% increase to $1,530
NOI Margin	10 bps increase to 62.1%	20 bps increase to 62.7%

(1)Same-store portfolio includes 115 properties, which represent 34,197 units.

Operating Metrics

The table below summarizes operating metrics for the same-store portfolio for the applicable periods.


	2Q 2023		3Q 2023(3)
Same-Store Portfolio(1)
Average Occupancy	94.2	%	94.5	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.8	%	2.7	%
Renewal Leases	2.3	%	4.5	%
Blended	2.5	%	3.9	%
Resident retention rate	54.2	%	54.4	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	94.7	%	95.0	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.4	%	1.9	%
Renewal Leases	2.3	%	4.2	%
Blended	2.3	%	3.5	%
Resident retention rate	53.8	%	54.8	%
Value Add (23 properties with Ongoing Value Add)
Average Occupancy	92.3	%	92.8	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	4.3	%	5.7	%
Renewal Leases	2.3	%	5.5	%
Blended	3.2	%	5.6	%
Resident retention rate	55.5	%	52.9	%

(1)Same-store portfolio includes 115 properties, which represent 34,197 units.

(3)3Q 2023 average occupancy and resident retention rates are through July 24, 2023. 3Q 2023 new lease and renewal rates are for leases commencing during 3Q 2023 that were signed as of July 24, 2023.

(4)As of July 24, 2023, same-store portfolio occupancy was 94.8%, same-store portfolio excluding ongoing value add occupancy was 95.3%, and value add occupancy was 92.9%.

Value Add Program

Investment Activity

Held for Sale

Capital Expenditures

Capital Markets

Dividend Distribution

2023 EPS and CFFO Guidance


	Previous Guidance				Current Guidance				Change at Midpoint
2023 Full Year EPS and CFFO Guidance(1)(2)	Low		High		Low		High
Earnings per share	$	0.23	$	0.27	$	0.25	$	0.27	$	0.01
Adjustments:
Depreciation and amortization	0.95		0.95		0.95		0.95		—
Gain on sale of real estate assets(3)	(0.01)		(0.01)		(0.01)		(0.01)		—
Loan (premium accretion) discount amortization, net	(0.05)		(0.05)		(0.05)		(0.05)		—
Core FFO per share	$	1.12	$	1.16	$	1.14	$	1.16	$	0.01

(2)Per share guidance is based on 230.4 million weighted average shares and units outstanding.

(3)Gain on sale of real estate assets includes one asset sale that occurred during the first quarter of 2023 and one property identified as held for sale as of June 30, 2023.

2023 Guidance Assumptions

Our key guidance assumptions for 2023 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.


Same-Store Portfolio	Previous 2023 Outlook	Current 2023 Outlook(1)	Change at Midpoint
Number of properties/units	116 properties / 34,571 units	115 properties / 34,179 units	—
Property revenue growth	5.7% to 7.0%	6.1% to 6.6%	—
Controllable operating expense growth	3.3% to 5.4%	4.7% to 5.4%	0.7%
Real estate tax and insurance expense growth	8.1% to 9.1%	7.5% to 8.1%	(0.8)%
Total operating expense growth	5.2% to 6.9%	5.7% to 6.4%	—
Property NOI growth	5.0% to 8.0%	6.0% to 7.0%	—

Corporate Expenses
General and administrative & Property management expenses	$51.5 million to $53.5 million	$50.5 million to $51.5 million	($1.5) million
Interest expense(2)	$104.5 million to $106.5 million	$102.5 million to $103.5 million	($2.5) million

Transaction/Investment Volume(3)
Acquisition volume	None	None	—
Disposition volume	$35 million to $40 million	$122 million to $127 million	$87 million

Capital Expenditures
Recurring	$19.0 million to $21.0 million	$20.0 million to $22.0 million	$1.0 million
Value add & non-recurring	$78.0 million to $82.0 million	$78.0 million to $82.0 million	—
Development	$80.0 million to $90.0 million	$80.0 million to $90.0 million	—

Selected Financial Information

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

Non-GAAP Financial Measures and Definitions

Conference Call

Supplemental Information

About Independence Realty Trust, Inc.

Forward-Looking Statements

FINANCIAL & OPERATING HIGHLIGHTS

Dollars in thousands, except per share data


	For the Three Months Ended
	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$10,709	$8,648	$33,631	$16,223	$(7,205)
Earnings (loss) per share -- diluted	$0.05	$0.04	$0.15	$0.07	$(0.03)
Rental and other property revenue	$163,601	$161,135	$162,493	$160,300	$154,643
Property operating expenses	$62,071	$59,255	$57,450	$59,967	$58,976
NOI	$101,530	$101,880	$105,043	$100,333	$95,667
NOI margin	62.1%	63.2%	64.6%	62.6%	61.9%
Adjusted EBITDA	$89,156	$87,594	$93,017	$89,264	$83,228
FFO per share	$0.28	$0.27	$0.31	$0.30	$0.29
CORE FFO per share	$0.28	$0.27	$0.29	$0.28	$0.26
Dividends per share	$0.16	$0.14	$0.14	$0.14	$0.14
CORE FFO payout ratio	57.1%	51.9%	48.3%	50.0%	53.8%
Portfolio Data:
Total gross assets	$7,117,404	$7,045,306	$7,034,902	$7,097,280	$6,801,034
Total number of operating properties	119	119	120	122	120
Total units	35,249	35,249	35,526	36,176	35,594
Portfolio period end occupancy (a)	94.6%	94.1%	93.6%	94.6%	95.7%
Portfolio average occupancy (a)	94.1%	93.1%	93.9%	94.2%	95.5%
Portfolio average effective monthly rent, per unit (a)	$1,538	$1,535	$1,522	$1,484	$1,414
Same-store portfolio period end occupancy (b)	94.6%	94.1%	93.6%	94.6%	95.4%
Same-store portfolio average occupancy (b)	94.2%	93.1%	93.9%	94.2%	95.5%
Same-store portfolio average effective monthly rent, per unit (b)	$1,531	$1,528	$1,517	$1,484	$1,417
Capitalization:
Total debt (c)	$2,650,805	$2,628,632	$2,631,645	$2,713,625	$2,552,936
Common share price, period end	$18.22	$16.03	$16.86	$16.73	$20.73
Market equity capitalization	$4,202,342	$3,694,970	$3,880,432	$3,850,365	$4,729,580
Total market capitalization	$6,853,147	$6,323,602	$6,512,077	$6,563,990	$7,282,516
Total debt/total gross assets	37.2%	37.3%	37.4%	38.2%	37.5%
Net debt to Adjusted EBITDA (d)	7.2x	7.3x	6.9x	7.2x	7.4x
Interest coverage	4.0x	4.0x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,697,889	224,556,870	224,064,940	224,056,179	222,060,280
OP units outstanding	5,946,571	5,946,571	6,091,171	6,091,171	6,091,171
Common shares and OP units outstanding	230,644,460	230,503,441	230,156,111	230,147,350	228,151,451
Weighted average common shares and OP units	230,369,086	230,186,297	229,994,927	228,051,780	227,964,753

(a)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

(b)Same-store portfolio consists of 115 properties, which represent 34,197 units.

(c)Includes indebtedness associated with real estate held for sale, as applicable.

BALANCE SHEETS

Dollars in thousands, except per share data


	As of
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Assets:
Real estate held for investment, at cost	$	6,610,233	$	6,648,907	$	6,615,243	$	6,634,087	$	6,428,482
Less: accumulated depreciation	(519,680)		(475,001)		(425,034)		(379,171)		(329,903)
Real estate held for investment, net	6,090,553		6,173,906		6,190,209		6,254,916		6,098,579
Real estate held for sale	86,576		—		35,777		82,178		81,818
Real estate under development	121,733		124,983		105,518		86,763		61,777
Cash and cash equivalents	14,349		12,448		16,084		23,753		11,378
Restricted cash	28,163		22,385		27,933		35,829		31,017
Investment in unconsolidated real estate entities	99,968		92,882		80,220		70,608		54,178
Other assets	31,799		34,360		34,846		34,480		26,707
Derivative assets	44,259		32,783		41,109		43,967		21,162
Intangible assets, net	—		—		399		1,039		18
Total assets	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634
Liabilities and Equity:
Indebtedness, net	$	2,609,903	$	2,628,632	$	2,631,645	$	2,667,183	$	2,506,375
Indebtedness associated with real estate held for sale, net	40,902		—		—		46,442		46,561
Accounts payable and accrued expenses	115,664		105,873		109,677		126,310		98,173
Accrued interest payable	7,986		7,979		7,713		11,019		6,891
Dividends payable	36,856		32,232		32,189		32,188		31,907
Derivative liabilities	—		2,283		—		—		—
Other liabilities	11,172		11,813		13,004		13,816		15,077
Total liabilities	2,822,483		2,788,812		2,794,228		2,896,958		2,704,984
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share	—		—		—		—		—
Common shares, $0.01 par value per share	2,247		2,246		2,241		2,241		2,221
Additional paid in capital	3,754,839		3,753,074		3,751,056		3,749,550		3,698,763
Accumulated other comprehensive income	38,823		25,101		35,102		37,569		18,430
Accumulated deficit	(239,972)		(214,775)		(191,735)		(194,014)		(178,902)
Total shareholders' equity	3,555,937		3,565,646		3,596,664		3,595,346		3,540,512
Noncontrolling Interests	138,980		139,289		141,203		141,229		141,138
Total equity	3,694,917		3,704,935		3,737,867		3,736,575		3,681,650
Total liabilities and equity	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634

STATEMENTS OF OPERATIONS, FFO & CORE FFO

TRAILING FIVE QUARTERS

Dollars in thousands, except per share data


	For the Three Months Ended
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Revenue:
Rental and other property revenue	$	163,601	$	161,135	$	162,493	$	160,300	$	154,643
Other revenue	354		239		306		300		120
Total revenue	163,955		161,374		162,799		160,600		154,763
Expenses:
Property operating expenses	62,071		59,255		57,450		59,967		58,976
Property management expenses	6,818		6,371		6,593		5,744		6,139
General and administrative expenses (a)	5,910		8,154		5,739		5,625		6,968
Depreciation and amortization expense	53,984		53,536		52,161		49,722		72,793

Casualty losses (gains), net	680		151		(1,690)		(191)		(5,592)
Total expenses	129,463		127,467		120,253		120,867		139,284
Interest expense	(22,227)		(22,124)		(23,337)		(22,093)		(20,994)
Gain on sale of real estate assets, net	—		985		17,044		—		—

Other (loss) income, net	(72)		93		57		765		294
(Loss) gain from investments in unconsolidated real estate entities	(1,205)		(776)		242		(1,477)		(871)
Merger and integration costs	—		—		(2,028)		(275)		(1,307)
Restructuring costs	—		(3,213)		—		—		—
Net income (loss)	$	10,988	$	8,872	$	34,524	$	16,653	$	(7,399)
(Income) loss allocated to noncontrolling interests	(279)		(224)		(893)		(430)		194
Net income (loss) available to common shares	$	10,709	$	8,648	$	33,631	$	16,223	$	(7,205)
EPS - basic	$	0.05	$	0.04	$	0.15	$	0.07	$	(0.03)
Weighted-average shares outstanding - Basic	224,422,515		224,226,873		223,903,756		221,960,609		221,164,284
EPS - diluted	$	0.05	$	0.04	$	0.15	$	0.07	$	(0.03)
Weighted-average shares outstanding - Diluted	225,073,890		225,088,659		224,915,128		222,867,546		221,164,284
Funds From Operations (FFO):
Net income (loss)	$	10,988	$	8,872	$	34,524	$	16,653	$	(7,399)
Add-Back (Deduct):
Real estate depreciation and amortization	53,701		53,287		51,957		49,347		72,298
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities	575		418		416		1,388		515
Gain on sale of real estate assets, net, excluding prepayment gains	—		(314)		(16,635)		—		—
FFO	$	65,264	$	62,263	$	70,262	$	67,388	$	65,414
FFO per share	$	0.28	$	0.27	$	0.31	$	0.30	$	0.29
CORE Funds From Operations (CFFO):
FFO	$	65,264	$	62,263	$	70,262	$	67,388	$	65,414
Add-Back (Deduct):
Other depreciation and amortization	283		249		204		375		495

Casualty losses (gains), net	680		151		(1,690)		(191)		(5,592)
Loan (premium accretion) discount amortization, net	(2,737)		(2,755)		(2,760)		(2,750)		(2,741)
Prepayment (gains) penalties on asset dispositions	—		(670)		(409)		—		—

Other expense (income), net	192		42		(860)		(765)		(294)
Merger and integration costs	—		—		2,028		275		1,307
Restructuring costs	—		3,213		—		—		—
CFFO	$	63,682	$	62,493	$	66,775	$	64,332	$	58,589
CFFO per share	$	0.28	$	0.27	$	0.29	$	0.28	$	0.26
Weighted-average shares and units outstanding	230,369,086		230,186,297		229,994,927		228,051,780		227,966,261

(a)Included in the three months ended March 31, 2023 is $2.7 million of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.

STATEMENTS OF OPERATIONS, FFO & CORE FFO

THREE AND SIX MONTHS ENDED JUNE 30, 2023 and 2022

Dollars in thousands, except per share data


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Revenue:
Rental and other property revenue	$	163,601	$	154,643	$	324,736	$	304,621
Other revenue	354		120		594		505
Total revenue	163,955		154,763		325,330		305,126
Expenses:
Property operating expenses	62,071		58,976		121,327		114,858
Property management expenses	6,818		6,139		13,189		11,696
General and administrative expenses (a)	5,910		6,968		14,063		14,896
Depreciation and amortization expense	53,984		72,793		107,520		150,966

Casualty losses (gains), net	680		(5,592)		831		(6,985)
Total expenses	129,463		139,284		256,930		285,431
Interest expense	(22,227)		(20,994)		(44,351)		(41,525)
Gain on sale of real estate assets, net	—		—		985		94,712

Other (loss) income, net	(72)		294		21		736
Loss from investments in unconsolidated real estate entities	(1,205)		(871)		(1,981)		(934)
Merger and integration costs	—		(1,307)		—		(3,202)
Restructuring costs	—		—		(3,213)		—
Net income (loss)	10,988		(7,399)		19,861		69,482
(Income) loss allocated to noncontrolling interests	(279)		194		(503)		(2,087)
Net income (loss) available to common shares	$	10,709	$	(7,205)	$	19,358	$	67,395
EPS - basic	$	0.05	$	(0.03)	$	0.09	$	0.30
Weighted-average shares outstanding - Basic	224,422,515		221,164,284		224,325,246		220,982,714
EPS - diluted	$	0.05	$	(0.03)	$	0.09	$	0.30
Weighted-average shares outstanding - Diluted	225,073,890		221,164,284		225,088,261		222,033,857
Funds From Operations (FFO):
Net income (loss)	$	10,988	$	(7,399)	$	19,861	$	69,482
Add-Back (Deduct):
Real estate depreciation and amortization	53,701		72,298		106,989		150,241
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities	575		515		994		515
Gain on sale of real estate assets, net, excluding prepayment gains	—		—		(314)		(94,712)
FFO	$	65,264	$	65,414	$	127,530	$	125,526
FFO per share	$	0.28	$	0.29	$	0.55	$	0.55
CORE Funds From Operations (CFFO):
FFO	$	65,264	$	65,414	$	127,530	$	125,526
Add-Back (Deduct):
Other depreciation and amortization	283		495		531		725

Casualty losses (gains), net	680		(5,592)		831		(6,985)
Loan (premium accretion) discount amortization, net	(2,737)		(2,741)		(5,493)		(5,495)
Prepayment (gains) penalties on asset dispositions	—		—		(670)		—

Other expense (income), net	192		(294)		234		(673)
Merger and integration costs	—		1,307		—		3,202
Restructuring costs	—		—		3,213		—
CFFO	$	63,682	$	58,589	$	126,176	$	116,300
CFFO per share	$	0.28	$	0.26	$	0.55	$	0.51
Weighted-average shares and units outstanding	230,369,086		227,966,261		230,278,208		227,873,108

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands


	Three Months Ended
ADJUSTED EBITDA:	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Net income (loss)	$	10,988	$	8,872	$	34,524	$	16,653	$	(7,399)
Add-Back (Deduct):
Interest expense	22,227		22,124		23,337		22,093		20,994
Depreciation and amortization	53,984		53,536		52,161		49,722		72,793

Casualty losses (gains), net	680		151		(1,690)		(191)		(5,592)
Gain on sale of real estate assets, net	—		(985)		(17,044)		—		—

Merger and integration costs	—		—		2,028		275		1,307
Loss (gain) from investments in unconsolidated real estate entities	1,205		776		(242)		1,477		1,125
Other loss (income), net	72		(93)		(57)		(765)		—
Restructuring costs	—		3,213		—		—		—
Adjusted EBITDA	$	89,156	$	87,594	$	93,017	$	89,264	$	83,228

INTEREST COST:
Interest expense	$	22,227	$	22,124	$	23,337	$	22,093	$	20,994

INTEREST COVERAGE:	4.0x		4.0x		4.0x		4.0x		4.0x


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
ADJUSTED EBITDA:	2023		2022		2023		2022
Net income (loss)	$	10,988	$	(7,399)	$	19,861	$	69,482
Add-Back (Deduct):
Interest expense	22,227		20,994		44,351		41,525
Depreciation and amortization	53,984		72,793		107,520		150,966

Casualty losses (gains), net	680		(5,592)		831		(6,985)
Gain on sale of real estate assets, net	—		—		(985)		(94,712)

Merger and integration costs	—		1,307		—		3,202
Loss (gain) from investments in unconsolidated real estate entities	1,205		1,125		1,981		1,125
Other loss (income), net	72		—		(21)		—
Restructuring costs	—		—		3,213		—
Adjusted EBITDA	$	89,156	$	83,228	$	176,751	$	164,603

INTEREST COST:
Interest expense	$	22,227	$	20,994	$	44,351	$	41,525

INTEREST COVERAGE:	4.0x		4.0x		4.0x		4.0x

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

TRAILING FIVE QUARTERS

Dollars in thousands, except per unit data


	For the Three-Months Ended
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Revenue:
Rental and other property revenue	$	158,124	$	154,816	$	154,919	$	153,584	$	148,927
Property Operating Expenses:
Real estate taxes	19,584		19,360		19,312		18,727		19,769
Property insurance	3,857		3,150		3,316		3,536		3,008
Personnel expenses	12,609		11,876		12,088		12,103		12,442
Utilities	7,523		7,888		7,812		8,021		7,074
Repairs and maintenance	6,536		5,801		3,887		6,013		6,092
Contract services	6,303		5,391		5,057		5,391		5,201
Advertising expenses	1,688		1,357		1,198		1,487		1,252
Other expenses	1,894		1,917		2,072		1,910		1,806
Total property operating expenses	59,994		56,740		54,742		57,188		56,644
Same-store portfolio NOI	$	98,130	$	98,076	$	100,177	$	96,396	$	92,283


Same-store portfolio NOI margin	62.1	%	63.4	%	64.7	%	62.8	%	62.0	%
Average occupancy	94.2	%	93.1	%	93.9	%	94.2	%	95.5	%


Average effective monthly rent, per unit	$	1,531	$	1,528	$	1,517	$	1,484	$	1,417


	For the Three Months Ended
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Rental and other property revenue
Same-store portfolio	$	158,124	$	154,816	$	154,919	$	153,584	$	148,927
Non same-store portfolio	5,477		6,319		7,574		6,716		5,716
Total rental and other property revenue	163,601		161,135		162,493		160,300		154,643
Property operating expenses
Same-store portfolio	59,994		56,740		54,742		57,188		56,644
Non same-store portfolio	2,077		2,515		2,708		2,779		2,332
Total property operating expenses	62,071		59,255		57,450		59,967		58,976
NOI
Same-store portfolio	98,130		98,076		100,177		96,396		92,283
Non same-store portfolio	3,400		3,804		4,866		3,937		3,384
Total property NOI	$	101,530	$	101,880	$	105,043	$	100,333	$	95,667

(a)Same-store portfolio consists of 115 properties, which represent 34,197 units.

(b)See definitions at the end of this release for a reconciliation from GAAP net income (loss) to NOI.

SAME-STORE PORTFOLIO NET OPERATING INCOME (a)

THREE AND SIX MONTHS ENDED JUNE 30, 2023 and 2022

Dollars in thousands, except per unit data


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023		2022		% change		2023		2022		% change
Revenue:
Rental and other property revenue	$	158,124	$	148,927	6.2	%	$	312,940	$	292,876	6.9	%
Property Operating Expenses:
Real estate taxes	19,584		19,769		(0.9)	%	38,944		38,903		0.1	%
Property insurance	3,857		3,008		28.2	%	7,007		5,807		20.7	%
Personnel expenses	12,609		12,442		1.3	%	24,485		24,649		(0.7)	%
Utilities	7,523		7,074		6.3	%	15,411		14,397		7.0	%
Repairs and maintenance	6,536		6,092		7.3	%	12,337		10,302		19.8	%
Contract services	6,303		5,201		21.2	%	11,694		9,971		17.3	%
Advertising expenses	1,688		1,252		34.8	%	3,045		2,460		23.8	%
Other expenses	1,894		1,806		4.9	%	3,811		3,445		10.6	%
Total property operating expenses	59,994		56,644		5.9	%	116,734		109,934		6.2	%
Same-store portfolio NOI	$	98,130	$	92,283	6.3	%	$	196,206	$	182,942	7.3	%


Same-store portfolio NOI margin	62.1		%	62.0		%	0.1	%	62.7		%	62.5		%	0.2	%
Average occupancy	94.2		%	95.5		%	(1.3)	%	93.6		%	95.4		%	(1.8)	%
Average effective monthly rent, per unit	$	1,531		$	1,417		8.0	%	$	1,530		$	1,398		9.4	%

(a)Same-store portfolio consists of 115 properties, which represent 34,197 units.

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED JUNE 30, 2023

Dollars in thousands, except rent per unit


			Rental and Other Property Revenue						Property Operating Expenses						Net Operating Income						Average Occupancy						Average Effective Monthly Rent per Unit
Market	Number of Properties	Units	2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change
Atlanta, GA	13	5,180	$	23,885	$	23,228	2.8	%	$	9,324	$	8,785	6.1	%	$	14,562	$	14,445	0.8	%	92.1	%	94.6	%	(2.5)	%	$	1,619	$	1,509	7.3	%
Dallas, TX	14	4,007	21,732		20,321		6.9	%	8,497		9,247		(8.1)	%	13,235		11,074		19.5	%	94.8	%	95.8	%	(1.0)	%	1,791		1,651		8.5	%
Denver, CO	9	2,292	11,986		11,195		7.1	%	3,945		3,492		13.0	%	8,041		7,703		4.4	%	94.5	%	95.6	%	(1.1)	%	1,704		1,592		7.0	%
Columbus, OH	10	2,510	10,580		9,813		7.8	%	4,077		3,872		5.3	%	6,503		5,941		9.5	%	95.1	%	95.6	%	(0.5)	%	1,378		1,262		9.2	%
Raleigh - Durham, NC	6	1,690	7,852		7,210		8.9	%	2,640		2,395		10.2	%	5,212		4,814		8.3	%	94.0	%	96.2	%	(2.2)	%	1,533		1,367		12.1	%
Indianapolis, IN	7	1,979	8,309		7,496		10.8	%	3,164		3,065		3.2	%	5,145		4,432		16.1	%	95.0	%	95.2	%	(0.2)	%	1,347		1,228		9.7	%
Oklahoma City, OK	8	2,147	7,734		7,370		4.9	%	2,660		2,512		5.9	%	5,074		4,858		4.4	%	93.6	%	96.5	%	(2.9)	%	1,166		1,078		8.2	%
Houston, TX	7	1,932	8,557		8,001		6.9	%	3,972		3,915		1.5	%	4,585		4,086		12.2	%	95.3	%	95.3	%	—	%	1,431		1,373		4.2	%
Nashville, TN	4	1,412	6,836		6,576		4.0	%	2,512		2,277		10.3	%	4,324		4,299		0.6	%	93.9	%	96.2	%	(2.3)	%	1,605		1,493		7.5	%
Memphis, TN	4	1,383	6,205		5,905		5.1	%	2,061		2,006		2.7	%	4,144		3,898		6.3	%	94.0	%	94.3	%	(0.3)	%	1,501		1,434		4.7	%
Tampa-St. Petersburg, FL	4	1,104	5,981		5,409		10.6	%	2,320		2,076		11.8	%	3,661		3,333		9.8	%	94.9	%	94.7	%	0.2	%	1,802		1,613		11.7	%
Huntsville, AL	3	873	4,082		3,949		3.4	%	1,472		1,301		13.1	%	2,611		2,648		(1.4)	%	95.1	%	95.6	%	(0.5)	%	1,548		1,452		6.6	%
Birmingham, AL	2	1,074	4,596		4,689		(2.0)	%	2,011		1,911		5.2	%	2,586		2,779		(6.9)	%	90.6	%	96.0	%	(5.4)	%	1,465		1,393		5.2	%
Lexington, KY	3	886	3,737		3,473		7.6	%	1,179		1,068		10.4	%	2,557		2,405		6.3	%	97.9	%	97.1	%	0.8	%	1,274		1,194		6.7	%
Louisville, KY	4	1,150	4,480		4,326		3.6	%	1,981		1,792		10.5	%	2,499		2,534		(1.4)	%	92.9	%	94.7	%	(1.8)	%	1,271		1,173		8.4	%
Myrtle Beach, SC - Wilmington, NC	3	628	2,680		2,425		10.5	%	834		792		5.3	%	1,846		1,633		13.0	%	95.6	%	96.2	%	(0.6)	%	1,414		1,257		12.5	%
Charlotte, NC	2	480	2,641		2,384		10.8	%	823		787		4.6	%	1,817		1,596		13.8	%	96.3	%	96.2	%	0.1	%	1,762		1,578		11.7	%
Greenville, SC	1	702	2,724		2,401		13.5	%	1,013		910		11.3	%	1,711		1,491		14.8	%	95.5	%	94.9	%	0.6	%	1,268		1,160		9.3	%
Cincinnati, OH	2	542	2,674		2,525		5.9	%	990		711		39.2	%	1,684		1,813		(7.1)	%	94.8	%	96.9	%	(2.1)	%	1,548		1,443		7.3	%
Charleston, SC	2	518	2,589		2,391		8.3	%	1,161		737		57.5	%	1,427		1,654		(13.7)	%	95.0	%	96.7	%	(1.7)	%	1,634		1,478		10.6	%
Orlando, FL	1	297	1,532		1,414		8.3	%	671		589		13.9	%	860		825		4.2	%	91.7	%	95.5	%	(3.8)	%	1,801		1,609		11.9	%
Asheville, NC	1	252	1,147		1,010		13.6	%	323		288		12.2	%	825		722		14.3	%	96.0	%	96.5	%	(0.5)	%	1,512		1,321		14.5	%
San Antonio, TX	1	306	1,433		1,431		0.1	%	674		643		4.8	%	759		788		(3.7)	%	95.9	%	95.4	%	0.5	%	1,489		1,467		1.5	%
Austin, TX	1	256	1,358		1,281		6.0	%	615		549		12.0	%	743		731		1.6	%	92.6	%	96.5	%	(3.9)	%	1,767		1,603		10.2	%
Norfolk, VA	1	183	1,024		934		9.6	%	372		304		22.4	%	653		631		3.5	%	96.4	%	94.6	%	1.8	%	1,893		1,775		6.6	%
Fort Wayne, IN	1	222	983		936		5.0	%	331		299		10.7	%	652		637		2.4	%	94.2	%	96.0	%	(1.8)	%	1,430		1,346		6.2	%
Chattanooga, TN	1	192	787		834		(5.6)	%	372		321		15.9	%	414		513		(19.3)	%	91.9	%	96.5	%	(4.6)	%	1,385		1,364		1.5	%

Total / Weighted Average	115	34,197	$	158,124	$	148,927	6.2	%	$	59,994	$	56,644	5.9	%	$	98,130	$	92,283	6.3	%	94.2	%	95.5	%	(1.3)	%	$	1,531	$	1,417	8.0	%

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

SIX MONTHS ENDED JUNE 30, 2023

Dollars in thousands, except rent per unit


			Rental and Other Property Revenue						Property Operating Expenses						Net Operating Income						Average Occupancy						Average Effective Monthly Rent per Unit
Market	Number of Properties	Units	2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change
Atlanta, GA	13	5,180	$	47,557	$	45,470	4.6	%	$	17,729	$	16,375	8.3	%	$	29,829	$	29,097	2.5	%	92.0	%	94.6	%	(2.6)	%	$	1,628	$	1,484	9.7	%
Dallas, TX	14	4,007	42,955		40,054		7.2	%	17,320		17,647		(1.9)	%	25,635		22,407		14.4	%	93.9	%	95.9	%	(2.0)	%	1,788		1,630		9.7	%
Denver, CO	9	2,292	23,896		22,052		8.4	%	7,476		6,829		9.5	%	16,420		15,222		7.9	%	94.1	%	95.6	%	(1.5)	%	1,702		1,573		8.2	%
Columbus, OH	10	2,510	20,808		19,312		7.7	%	7,689		7,515		2.3	%	13,119		11,796		11.2	%	94.8	%	95.8	%	(1.0)	%	1,367		1,248		9.5	%
Raleigh - Durham, NC	6	1,690	15,606		13,951		11.9	%	5,160		4,838		6.7	%	10,446		9,113		14.6	%	93.8	%	95.7	%	(1.9)	%	1,532		1,344		14.0	%
Indianapolis, IN	7	1,979	16,217		14,860		9.1	%	6,091		5,824		4.6	%	10,126		9,036		12.1	%	93.8	%	95.3	%	(1.5)	%	1,341		1,215		10.4	%
Oklahoma City, OK	8	2,147	15,262		14,454		5.6	%	5,220		4,965		5.1	%	10,042		9,489		5.8	%	92.6	%	95.9	%	(3.3)	%	1,166		1,066		9.4	%
Houston, TX	7	1,932	17,005		15,956		6.6	%	8,100		7,703		5.2	%	8,905		8,252		7.9	%	94.9	%	94.9	%	—	%	1,430		1,356		5.5	%
Nashville, TN	4	1,412	13,381		12,963		3.2	%	4,730		4,507		4.9	%	8,651		8,456		2.3	%	92.1	%	95.9	%	(3.8)	%	1,601		1,475		8.5	%
Memphis, TN	4	1,383	12,248		11,453		6.9	%	4,043		3,904		3.6	%	8,205		7,549		8.7	%	93.8	%	94.2	%	(0.4)	%	1,502		1,403		7.1	%
Tampa-St. Petersburg, FL	4	1,104	11,969		10,489		14.1	%	4,615		4,049		14.0	%	7,354		6,440		14.2	%	94.9	%	94.5	%	0.4	%	1,791		1,572		13.9	%
Birmingham, AL	2	1,074	9,129		9,292		(1.8)	%	3,756		3,548		5.9	%	5,373		5,744		(6.5)	%	90.0	%	94.9	%	(4.9)	%	1,470		1,395		5.4	%
Huntsville, AL	3	873	8,099		7,835		3.4	%	2,813		2,522		11.5	%	5,286		5,313		(0.5)	%	94.7	%	95.6	%	(0.9)	%	1,548		1,446		7.1	%
Lexington, KY	3	886	7,346		6,826		7.6	%	2,247		2,251		(0.2)	%	5,099		4,575		11.5	%	96.4	%	96.2	%	0.2	%	1,274		1,180		8.0	%
Louisville, KY	4	1,150	8,918		8,606		3.6	%	3,878		3,596		7.8	%	5,040		5,010		0.6	%	92.7	%	94.9	%	(2.2)	%	1,279		1,165		9.8	%
Myrtle Beach, SC - Wilmington, NC	3	628	5,291		4,712		12.3	%	1,618		1,503		7.7	%	3,673		3,209		14.5	%	95.1	%	96.4	%	(1.3)	%	1,405		1,217		15.4	%
Charlotte, NC	2	480	5,276		4,654		13.4	%	1,629		1,514		7.6	%	3,647		3,140		16.1	%	95.8	%	96.1	%	(0.3)	%	1,761		1,551		13.5	%
Cincinnati, OH	2	542	5,230		4,975		5.1	%	1,957		1,559		25.5	%	3,273		3,416		(4.2)	%	93.5	%	96.9	%	(3.4)	%	1,549		1,428		8.5	%
Greenville, SC	1	702	5,165		4,747		8.8	%	1,957		1,765		10.9	%	3,208		2,982		7.6	%	93.8	%	95.1	%	(1.3)	%	1,250		1,145		9.2	%
Charleston, SC	2	518	5,123		4,668		9.7	%	2,161		1,673		29.2	%	2,961		2,995		(1.1)	%	94.3	%	96.6	%	(2.3)	%	1,618		1,443		12.1	%
Orlando, FL	1	297	3,069		2,786		10.2	%	1,339		1,151		16.3	%	1,729		1,635		5.7	%	93.2	%	96.1	%	(2.9)	%	1,792		1,571		14.1	%
Asheville, NC	1	252	2,289		1,987		15.2	%	626		560		11.8	%	1,663		1,427		16.5	%	96.5	%	97.1	%	(0.6)	%	1,501		1,296		15.8	%
San Antonio, TX	1	306	2,887		2,875		0.4	%	1,348		1,259		7.1	%	1,540		1,616		(4.7)	%	95.8	%	96.1	%	(0.3)	%	1,486		1,461		1.7	%
Austin, TX	1	256	2,668		2,538		5.1	%	1,226		1,074		14.2	%	1,442		1,465		(1.6)	%	90.8	%	96.7	%	(5.9)	%	1,777		1,585		12.1	%
Fort Wayne, IN	1	222	1,977		1,856		6.5	%	626		606		3.3	%	1,351		1,250		8.1	%	93.6	%	95.3	%	(1.7)	%	1,431		1,330		7.6	%
Norfolk, VA	1	183	2,009		1,876		7.1	%	711		576		23.4	%	1,298		1,300		(0.2)	%	95.2	%	95.1	%	0.1	%	1,886		1,753		7.6	%
Chattanooga, TN	1	192	1,560		1,629		(4.2)	%	669		621		7.7	%	891		1,008		(11.6)	%	92.1	%	96.9	%	(4.8)	%	1,382		1,346		2.7	%

Total / Weighted Average	115	34,197	$	312,940	$	292,876	6.9	%	$	116,734	$	109,934	6.2	%	$	196,206	$	182,942	7.3	%	93.6	%	95.4	%	(1.8)	%	$	1,530	$	1,398	9.4	%

PROPERTY PORTFOLIO (a)

NET OPERATING INCOME EXPOSURE BY MARKET

Dollars in thousands, except rent per unit


							For the Three Months Ended June 30, 2023
Market	Number of Properties	Units	Gross Real Estate Assets		Period End Occupancy		Average Effective Monthly Rent per Unit		NOI		% of NOI
Atlanta, GA	13	5,180	$	1,077,820	93.0	%	$	1,619	$	14,561	14.3	%
Dallas, TX	14	4,007	859,084		95.1	%	1,791		13,235		13.0	%
Denver, CO (b)	9	2,292	608,291		95.5	%	1,704		8,041		8.2	%
Columbus, OH	10	2,510	371,454		94.2	%	1,378		6,503		6.4	%
Raleigh - Durham, NC	6	1,690	255,412		94.5	%	1,533		5,212		5.1	%
Indianapolis, IN	7	1,979	291,958		95.0	%	1,347		5,145		5.1	%
Oklahoma City, OK	8	2,147	324,174		94.8	%	1,166		5,074		5.0	%
Tampa-St. Petersburg, FL	5	1,452	298,825		93.0	%	1,808		4,800		4.7	%
Houston, TX	7	1,932	324,020		96.0	%	1,431		4,585		4.5	%
Nashville, TN	5	1,508	369,769		95.1	%	1,599		4,569		4.5	%
Memphis, TN	4	1,383	161,022		93.8	%	1,501		4,144		4.1	%
Charlotte, NC	3	714	189,428		95.1	%	1,761		2,653		2.6	%
Huntsville, AL	3	873	191,079		96.5	%	1,548		2,611		2.6	%
Birmingham, AL	2	1,074	233,055		92.9	%	1,465		2,586		2.5	%
Lexington, KY	3	886	160,351		98.5	%	1,274		2,557		2.5	%
Louisville, KY	4	1,150	148,009		94.3	%	1,271		2,499		2.5	%
Myrtle Beach, SC - Wilmington, NC	3	628	68,775		93.8	%	1,414		1,846		1.8	%
Greenville, SC	1	702	123,652		96.7	%	1,268		1,711		1.7	%
Cincinnati, OH	2	542	122,689		93.7	%	1,548		1,684		1.7	%
Charleston, SC	2	518	81,331		94.2	%	1,634		1,427		1.4	%
Chicago, IL (c)	1	374	90,341		95.4	%	1,801		1,235		1.2	%
Orlando, FL	1	297	50,268		90.9	%	1,801		860		0.8	%
Asheville, NC	1	252	29,290		94.4	%	1,512		825		0.8	%
San Antonio, TX	1	306	57,214		96.4	%	1,489		759		0.7	%
Austin, TX	1	256	58,009		94.9	%	1,767		743		0.7	%
Norfolk, VA	1	183	54,203		97.3	%	1,893		653		0.6	%
Fort Wayne, IN	1	222	44,379		96.8	%	1,430		652		0.6	%
Chattanooga, TN	1	192	37,251		95.3	%	1,385		414		0.4	%
Total / Weighted Average	119	35,249	$	6,681,153	94.6	%	$	1,538	$	101,584	100.0	%

(a)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

(b)Includes properties in our Fort Collins, CO and Colorado Springs, CO markets.

(c)Property held for sale as of June 30, 2023.

VALUE ADD SUMMARY BY MARKET

PROJECT LIFE TO DATE AS OF JUNE 30, 2023


									Renovation Costs per Unit (b)
Market	Total Properties	Total Units To Be Renovated	Units Complete	Units Leased	Rent Premium (a)		% Rent Increase		Interior		Exterior		Total		ROI - Interior Costs(c)		ROI - Total Costs (d)
Ongoing
Memphis, TN	1	362	254	256	$	373	34.2	%	$	15,128	$	807	$	15,935	29.6	%	28.1	%
Raleigh-Durham, NC	1	318	195	195	190		15.2	%	15,503		1,046		16,549		14.7	%	13.8	%
Indianapolis, IN	1	236	143	146	256		23.5	%	15,168		805		15,973		20.2	%	19.2	%
Tampa-St. Petersburg, FL	3	888	492	507	317		23.5	%	13,540		847		14,387		28.1	%	26.4	%
Atlanta, GA	5	2,180	1,010	1,037	255		20.8	%	14,110		1,235		15,345		21.7	%	19.9	%
Austin, TX	1	256	107	108	222		15.1	%	16,900		1,104		18,004		15.8	%	14.8	%
Oklahoma City, OK	3	793	289	317	122		14.4	%	16,656		1,025		17,681		8.8	%	8.3	%
Columbus, OH	3	786	234	249	261		21.5	%	13,984		880		14,864		22.4	%	21.1	%
Nashville, TN	1	724	182	167	169		12.2	%	15,186		1,664		16,850		13.4	%	12.1	%
Dallas, TX	4	1,199	276	300	280		19.5	%	18,503		1,879		20,382		18.2	%	16.5	%
Total / Weighted Average	23	7,742	3,182	3,282	$	254	20.7	%	$14,994		$	1,228	$	16,222	21.5	%	20.2	%

Future (e)
Atlanta, GA	1	180	—	—	—		—		—		—		—		—		—


Oklahoma City, OK	1	294	—	—	—		—		—		—		—		—		—
Total / Weighted Average	2	474	—	—	—		—		—		—		—		—		—

Completed (f)
Wilmington, NC	1	288	286	282	$	73	7.2	%	$	7,981	$	56	$	8,037	11.0	%	10.9	%
Raleigh-Durham, NC	1	328	325	323	184		18.0	%	14,648		2,108		16,756		15.1	%	13.2	%
Louisville, KY	2	728	713	768	212		23.9	%	15,343		2,173		17,516		16.6	%	14.6	%
Atlanta, GA	1	494	455	452	175		17.5	%	9,117		1,773		10,890		23.0	%	19.3	%
Memphis, TN	2	691	627	625	191		18.9	%	11,596		974		12,570		19.8	%	18.3	%
Columbus, OH	3	763	679	680	203		22.4	%	10,143		665		10,808		24.1	%	22.6	%
Tampa-St. Petersburg, FL	1	348	309	306	208		18.3	%	14,010		2,155		16,165		17.8	%	15.4	%
Total / Weighted Average	11	3,640	3,394	3,436	$	187	19.5	%	$	11,968	$	1,400	$	13,368	18.9	%	16.8	%

Grand Total/Weighted Average	36	11,856	6,576	6,718	$	219	20.1	%	$	13,438	$	1,262	$	14,700	20.2	%	18.5	%

(a) The rent premium reflects the per unit per month difference between the rental rate on the renovated unit and the market rent for an unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.

(b)Includes all costs to renovate the interior units and make certain exterior renovations, including clubhouses and amenities. Interior costs per unit are based on units leased. Exterior costs per unit are based on total units at the community. Excludes overhead costs to support and manage the value add program as those costs relate to the entire program and cannot be allocated to individual projects.

(c)Calculated using the rent premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit.

(d)Calculated using the rent premium per unit per month, multiplied by 12, divided by the total renovation costs per unit.

(e)Renovation projects expected to commence during the second half of 2023.

(f)We consider value add projects completed when over 85% of the property’s units to be renovated have been completed. We continue to renovate remaining unrenovated units as leases expire until we complete 100% of the property’s units.

(g)Includes Meadows, Haverford, Crestmont and Creekside that were formerly a part of the value add program but were sold in October 2022 (with respect to Meadows), February 2022 (with respect to Haverford) and December 2021 (with respect to Crestmont and Creekside).

INVESTMENT AND DEVELOPMENT ACTIVITY

Dollars in thousands except per unit amounts

2023 DISPOSITIONS


Property	Location	Units	Disposition Date	Sale Price		Price per Unit		Average Rent Per Unit at Disposition		Gain on Sale of Real Estate, Net
Eagle Lake Landing	Indianapolis, IN	277	February 28, 2023	$	37,300	$	135	$	1,184	$	985

ASSETS HELD FOR SALE AS OF JUNE 30, 2023

Property

Location

Units

The Meadows at River Run

Chicago, IL

374

REAL ESTATE UNDER DEVELOPMENT

Development

Destination at Arista (a)

Flatirons Apartments

Location

Denver, Colorado

Planned Units

325

296

Start Date

3Q 2021

4Q 2022

Projected Initial Occupancy

2Q 2023

3Q 2024

Projected Completion Date

4Q 2023

3Q 2024

Projected Stabilization date

1Q 2025

3Q 2026

Total Estimated Development Costs

$103,500

$119,900

Total Development Costs through 6/30/23

$102,378

$38,727

Remaining Development Costs

$1,122

$81,173

Real Estate Under Development at June 30, 2023

$83,006

$38,727

% of Planned Units Delivered as of July 24, 2023

44.0%

N/A

Leased % as of July 24, 2023 (b)

42.0%

N/A

Occupancy % as of July 24, 2023 (b)

32.2%

N/A

(a)During the three months ended June 30, 2023, we obtained certificates of occupancy for one of the four residential buildings containing 54 units and certain common area buildings resulting in $19,372 being reclassified from real estate under development to real estate held for investment.

(b)Leased % and occupancy % are calculated using the leased or occupied units, as applicable, divided by the number of delivered units.

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES


Property	Location	Units	Estimated Delivery Date	Total Construction Budget		Total Project Debt		IRT Equity Interest in JV		Remaining Expected IRT Investment		Carrying Value of IRT’s Investment
Metropolis at Innsbrook (a)	Richmond, VA	402	Q2 2023	$	85,883	$	64,000	84.8	%	$	—	$	18,395
Views of Music City II / The Crockett (b)	Nashville, TN	408	Q3 2023	66,079		43,275		50.0	%	—		11,555
Virtuoso (c)	Huntsville, AL	178	—	57,491		39,281		90.0	%	—		12,860
Lakeline Station	Austin, TX	378	Q3 2024	109,524		76,500		90.0	%	—		31,061
The Mustang	Dallas, TX	275	Q4 2024	109,583		79,447		85.0	%	242		26,097
Total		1,641		$	428,560	$	302,503			$	242	$	99,968

(a)Operations commenced during the three months ended June 30, 2023 with 172 units placed in service. The remaining 230 units will be placed in service throughout the second half of 2023.

(b)Views of Music City phase II consists of 209 units with an estimated delivery date of Q3 2023. The Crockett is an operating property consisting of 199 units delivered in Q1 2023. We have one year from the delivery date to exercise our purchase option on The Crockett.

(c)The Virtuoso investment made on March 31, 2022 is an operating property.

DEBT SUMMARY AS OF JUNE 30, 2023

Dollars in thousands


	Amount		Weighted Average Rate (d)		Type	Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)	$	211,478	6.3	%	Floating	2.6
Unsecured term loans (b)	600,000		6.2	%	Floating	4.0
Secured credit facilities (c)	617,114		4.3	%	Floating/Fixed	5.4
Mortgages	1,181,581		3.9	%	Fixed	4.7
Total Principal	2,610,173		4.7	%		4.5
Loan premiums (discounts), net	53,520
Unamortized deferred financing costs	(12,888)
Total Consolidated Debt	2,650,805
Market Equity Capitalization, at period end	4,202,342
Total Capitalization	$	6,853,147

(a)Unsecured revolver total capacity is $500,000, of which $211,478 was drawn as of June 30, 2023. The maturity date of borrowings under the unsecured revolver is January 31, 2026.

(b)Consists of a (i) $200,000 unsecured term loan with a maturity date of May 18, 2026 and a (ii) $400,000 unsecured term loan with a maturity date of January 28, 2028.

(c)Consists of a (i) $540,867 secured credit facility, three tranches of which, in an aggregate principal amount of $500,399, have a maturity date of August 1, 2028 and the fourth tranche of which, in the principal amount of $40,468, has a maturity date of March 1, 2030 and a (ii) $76,248 secured credit facility with a maturity date of July 1, 2030.

(d)Represents the weighted average of the contractual interest rates in effect as of quarter-end without regard to any interest rate swaps or collars. Our total weighted average effective interest rate during the quarter ended June 30, 2023, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization, discount accretion, and interest capitalization was 4.2%.

(e)As of June 30, 2023, we maintained the following hedges that have effectively fixed a portion of our floating rates debt.


Hedges:	Notional		Start	End	Swap Rate		Floor Rate		Cap Rate
Collar	$	100,000	11/17/2017	11/17/2024	—		1.25	%	2.00	%
Collar	$	150,000	10/17/2018	1/17/2024	—		2.25	%	2.50	%
Swap	$	150,000	6/17/2021	6/17/2026	2.18	%	—		—
Swap	$	150,000	5/17/2022	5/17/2027	0.99	%	—		—
Swap	$	200,000	3/17/2023	3/17/2030	3.39	%	—		—
Forward starting collar	$	100,000	1/17/2024	1/17/2028	—		1.50	%	2.50	%
Forward starting collar	$	100,000	11/17/2024	1/17/2028	—		1.50	%	2.50	%

DEBT COVENANT AND UNENCUMBERED ASSET STATS AS OF JUNE 30, 2023

Dollars in thousands

Debt Covenant Summary (a)

Requirement

Actual

Compliance

Consolidated leverage ratio

≤ 60%

35.4%

Yes

Consolidated fixed charge coverage ratio

≥ 1.5x

2.59x

Yes

Unsecured leverage ratio

≤ 60%

26.1%

Yes

(a)For a complete listing of all debt covenants along with definitions of each covenant calculation see the Fourth Amended, Restated and Consolidated Credit Agreement, which is included as exhibit 10.1 of the Form 8-K filed on July 27, 2022.

Encumbered & Unencumbered Statistics


	Total Units	% of Total		Gross Assets		% of Total		Q2 2023 NOI		% of Total
Unencumbered assets	18,164	51.5	%	$	3,487,200	49.0	%	$	52,189	51.4	%
Encumbered assets	17,085	48.5	%	3,630,204		51.0	%	49,395		48.6	%
	35,249	100.0	%	$	7,117,404	100.0	%	$	101,584	100.0	%

DEFINITIONS

Average Effective Monthly Rent per Unit

Average Occupancy

Average occupancy represents the average occupied units for the reporting period divided by the average of total units available for rent for the reporting period.

Development Property

A development property is a property that is either currently under development or is in lease-up prior to reaching overall occupancy of 90%.

EBITDA and Adjusted EBITDA

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.

Net Debt


	As of
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Total debt	$	2,650,805	$	2,628,632	$	2,631,645	$	2,713,625	$	2,552,936
Less: cash and cash equivalents	(14,349)		(12,448)		(16,084)		(23,753)		(11,378)
Less: loan discounts and premiums, net	(53,520)		(56,256)		(59,937)		(63,340)		(66,091)
Total net debt	$	2,582,936	$	2,559,928	$	2,555,624	$	2,626,532	$	2,475,467

Net Operating Income

A reconciliation from GAAP net income (loss) to NOI is provided below:


	For the Three Months Ended
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Net income (loss)	$	10,988	$	8,872	$	34,524	$	16,653	$	(7,399)

Other revenue	(354)		(239)		(306)		(300)		(120)
Property management expenses	6,818		6,371		6,593		5,744		6,139
General and administrative expenses	5,910		8,154		5,739		5,625		6,968
Depreciation and amortization expense	53,984		53,536		52,161		49,722		72,793

Casualty losses (gains), net	680		151		(1,690)		(191)		(5,592)
Interest expense	22,227		22,124		23,337		22,093		20,994
Gain on sale of real estate assets, net	—		(985)		(17,044)		—		—

Other loss (income), net	72		(93)		(57)		(765)		(294)
Loss (gain) from investments in unconsolidated real estate entities	1,205		776		(242)		1,477		871
Merger and integration costs	—		—		2,028		275		1,307
Restructuring costs	—		3,213		—		—		—
NOI	$	101,530	$	101,880	$	105,043	$	100,333	$	95,667
Less: Non same-store portfolio NOI	3,400		3,804		4,866		3,937		3,384
Same-store portfolio NOI	$	98,130	$	98,076	$	100,177	$	96,396	$	92,283

Non Same-Store Properties and Non Same-Store Portfolio

Properties that did not meet the definition of a same-store property as of the beginning of the previous year.

Same-Store Properties and Same-Store Portfolio

Total Gross Assets


	As of
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Total assets	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634
Plus: accumulated depreciation (a)	523,446		475,001		426,097		386,606		337,338
Plus: accumulated amortization	76,558		76,558		76,710		77,141		77,062
Total gross assets	$	7,117,404	$	7,045,306	$	7,034,902	$	7,097,280	$	6,801,034

(a)Includes accumulated depreciation associated with real estate held for sale, as applicable.

Cover	Jul. 26, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 26, 2023
Entity Registrant Name	Independence Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-36041
Entity Tax Identification Number	26-4567130
Entity Address, Address Line One	1835 Market Street
Entity Address, Address Line Two	Suite 2601
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	267
Local Phone Number	270-4800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	IRT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001466085

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IRT Independence Realty Trust Inc