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IRT

Independence Realty Trust NYSE:IRT Stock Report

Last Price

US$16.80

Market Cap

US$3.8b

7D

-1.0%

1Y

-20.4%

Updated

05 Oct, 2022

Data

Company Financials +
IRT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends2/6

IRT Stock Overview

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S.

Independence Realty Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Independence Realty Trust
Historical stock prices
Current Share PriceUS$16.80
52 Week HighUS$28.42
52 Week LowUS$15.97
Beta0.93
1 Month Change-12.13%
3 Month Change-19.00%
1 Year Change-20.42%
3 Year Change14.36%
5 Year Change59.54%
Change since IPO98.82%

Recent News & Updates

Sep 28

Independence Realty Trust: Skating To Where The Puck Will Be

Summary Multifamily REITs have sold down dramatically this summer. Rents are still rising in many Sunbelt markets, but the pace of increases are slowing. Independence Realty Trust carries a Sunbelt pedigree, but its Rust Belt and Middle America holdings are where it will shine going forward. Looking at market pricing activity in multifamily REIT shares is a nausea-inducing experience. An asset class that, until recently, was deemed among the most promising, now has investors fleeing for the exits. S&P Capital IQ as of 09/26/2022 The sector's year-to-date total returns of ~-30% stand in stark contrast to the individual company's operating performances and earnings guidance. One has to question the source of the disparity. This morning, Realtor.com released its August Rental Report. A graphic at the top of the article may, at first glance, have been a cause for alarm. realtor.com The plunging (black line) Median Rent YoY shows a dramatic decline since the start of the year. But wait a minute, it shows that rents in August were, on average, 9.8% higher than a year ago. They just are not rising as fast as they were at the end of 2021. The graph might snap investors out of the euphoric extrapolation of double-digit rent growth, but I do not think it should make them sell shares. This is what is causing the sell-off of apartment REITs. S&P Global Market Intelligence (S&P Capital IQ) On 9/26/22 Treasury prices fell further, raising yields on each issue by as much as twenty basis points. A 4.20% yield on the "riskless "2y US T-Note is what is making people sell their multifamily REIT shares. It is also making them sell the S&P 500 ETF (SPY), the Invesco QQQ (QQQ), Treasuries, and almost any other liquid asset. In this article, I will argue that multifamily REITs have become attractively cheap. I will describe that aspects of Independence Realty Trust (IRT) may have unique appeal in today's evolving economy. Portfolio Rebalancing An examination of our year-end 2021 portfolio made me feel that we were underexposed to residential real estate. Looking at the sector's valuations, however, made us unwilling to put new money into what looked like fully valued issues. S&P Capital IQ A Price/FFO multiple of almost twenty-nine does not present much upside potential and a 2.50% dividend yield is not compelling either. Nine months later, the metrics for new investment have improved dramatically. S&P Capital IQ The 3.3% dividend yield is still not exciting, but an 18.4x FFO multiple in a high-demand housing market is much more palatable. Despite strong operating results and raised guidance, apartment REIT shares have given back a significant portion of last year's gains. At current pricing, the whole sector is more appealing, but I think Independence Realty Trust now presents a unique opportunity. Rust Belt Middle America In a September Investor Presentation, IRT updated its 2022 guidance. IRT Same Store NOI growth of 13.75% at the midpoint is impressive. As is rent growth of 10.9%. Projected Core FFO per share of $1.07 puts them at a 15.6x FFO multiple when measured against today's closing price of $16.73 (near the sector's lowest). Those are great metrics, but IRT's differentiating factor is its portfolio's geography. IRT IRT management likes to talk up its Sunbelt Exposure, but you can get Sunbelt Exposure with NexPoint Residential (NXRT), Camden Property Trust (CPT), and BRT Apartments (BRT), among others. What you cannot so easily capture elsewhere is IRT's potential in the expanding manufacturing activity of the Rust Belt and Middle America. Everyone talks about the opportunity that has developed from the work-from-anywhere migration to the Sunbelt. The wave of new manufacturing development that entails work at the new plant is where Independence Realty might truly shine. Table by 2MCAC. Data provided by S&P Capital IQ Consider that Ford last week broke ground on its new Blue Oval City EV production plant near Memphis. In addition to 2MM electric vehicles annually, Blue Oval City creates 6,000 jobs that will drive demand for IRT's more than 500 Memphis apartment units. Tennessee currently accounts for 9.3% of IRT's Net Operating Income; Commercial Real Estate's future is bright with growing investment from the automotive/EV industry across the state.

Sep 12

Independence Realty Trust declares $0.14 dividend

Independence Realty Trust (NYSE:IRT) declares $0.14/share quarterly dividend, in line with previous. Payable Oct. 21; for shareholders of record Sept. 30; ex-div Sept. 29.

Shareholder Returns

IRTUS REITsUS Market
7D-1.0%-0.5%1.9%
1Y-20.4%-19.5%-18.8%

Return vs Industry: IRT underperformed the US REITs industry which returned -17.1% over the past year.

Return vs Market: IRT underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is IRT's price volatile compared to industry and market?
IRT volatility
IRT Average Weekly Movement4.4%
REITs Industry Average Movement4.2%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: IRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IRT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009937Scott Schaefferhttps://www.irtliving.com

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. 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.

Independence Realty Trust Fundamentals Summary

How do Independence Realty Trust's earnings and revenue compare to its market cap?
IRT fundamental statistics
Market CapUS$3.83b
Earnings (TTM)US$107.51m
Revenue (TTM)US$441.89m

34.7x

P/E Ratio

8.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IRT income statement (TTM)
RevenueUS$441.89m
Cost of RevenueUS$182.09m
Gross ProfitUS$259.80m
Other ExpensesUS$152.29m
EarningsUS$107.51m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 26, 2022

Earnings per share (EPS)0.48
Gross Margin58.79%
Net Profit Margin24.33%
Debt/Equity Ratio68.1%

How did IRT perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IRT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IRT?

Other financial metrics that can be useful for relative valuation.

IRT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.4x
Enterprise Value/EBITDA26.8x
PEG Ratio-0.4x

Price to Earnings Ratio vs Peers

How does IRT's PE Ratio compare to its peers?

IRT PE Ratio vs Peers
The above table shows the PE ratio for IRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.6x
AIRC Apartment Income REIT
6.2x-53.0%US$6.4b
NXRT NexPoint Residential Trust
54.1x-82.7%US$1.1b
ELS Equity LifeStyle Properties
42.4x3.9%US$12.5b
CPT Camden Property Trust
15.5x-48.1%US$12.9b
IRT Independence Realty Trust
34.7x-97.4%US$3.8b

Price-To-Earnings vs Peers: IRT is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the peer average (29.6x).


Price to Earnings Ratio vs Industry

How does IRT's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: IRT is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the US REITs industry average (27x)


Price to Earnings Ratio vs Fair Ratio

What is IRT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.7x
Fair PE Ratio6.7x

Price-To-Earnings vs Fair Ratio: IRT is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.7x).


Share Price vs Fair Value

What is the Fair Price of IRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IRT ($16.8) is trading below our estimate of fair value ($42.92)

Significantly Below Fair Value: IRT is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Independence Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-97.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRT's earnings are forecast to decline over the next 3 years (-97.4% per year).

Earnings vs Market: IRT's earnings are forecast to decline over the next 3 years (-97.4% per year).

High Growth Earnings: IRT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IRT's revenue (10.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: IRT's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IRT's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Independence Realty Trust performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


37.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IRT has a large one-off gain of $124.8M impacting its June 30 2022 financial results.

Growing Profit Margin: IRT's current net profit margins (24.3%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: IRT has become profitable over the past 5 years, growing earnings by 37.1% per year.

Accelerating Growth: IRT's earnings growth over the past year (471.2%) exceeds its 5-year average (37.1% per year).

Earnings vs Industry: IRT earnings growth over the past year (471.2%) exceeded the REITs industry 45.8%.


Return on Equity

High ROE: IRT's Return on Equity (3%) is considered low.


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Financial Health

How is Independence Realty Trust's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IRT's short term assets ($145.4M) do not cover its short term liabilities ($183.5M).

Long Term Liabilities: IRT's short term assets ($145.4M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: IRT's net debt to equity ratio (67.2%) is considered high.

Reducing Debt: IRT's debt to equity ratio has reduced from 144.3% to 68.1% over the past 5 years.

Debt Coverage: IRT's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: IRT's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


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Dividend

What is Independence Realty Trust current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.33%

Current Dividend Yield

Dividend Yield vs Market

Independence Realty Trust Dividend Yield vs Market
How does Independence Realty Trust dividend yield compare to the market?
SegmentDividend Yield
Company (Independence Realty Trust)3.3%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (REITs)4.0%
Analyst forecast in 3 Years (Independence Realty Trust)3.7%

Notable Dividend: IRT's dividend (3.33%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: IRT's dividend (3.33%) is low compared to the top 25% of dividend payers in the US market (4.53%).


Stability and Growth of Payments

Stable Dividend: IRT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: IRT has only been paying a dividend for 9 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.3%), IRT's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (194.2%), IRT's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Scott Schaeffer (60 yo)

11.75yrs

Tenure

US$4,517,543

Compensation

Mr. Scott F. Schaeffer serves as Chairman of the Board and Chief Executive Officer at Steadfast Apartment REIT, Inc. since December 2021. He has been the Chief Executive Officer at Independence Realty Trus...


CEO Compensation Analysis

Scott Schaeffer's Compensation vs Independence Realty Trust Earnings
How has Scott Schaeffer's remuneration changed compared to Independence Realty Trust's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$108m

Mar 31 2022n/an/a

US$118m

Dec 31 2021US$5mUS$700k

US$45m

Sep 30 2021n/an/a

US$29m

Jun 30 2021n/an/a

US$19m

Mar 31 2021n/an/a

US$16m

Dec 31 2020US$3mUS$700k

US$15m

Sep 30 2020n/an/a

US$25m

Jun 30 2020n/an/a

US$29m

Mar 31 2020n/an/a

US$43m

Dec 31 2019US$4mUS$700k

US$46m

Sep 30 2019n/an/a

US$37m

Jun 30 2019n/an/a

US$37m

Mar 31 2019n/an/a

US$25m

Dec 31 2018US$4mUS$700k

US$26m

Sep 30 2018n/an/a

US$18m

Jun 30 2018n/an/a

US$14m

Mar 31 2018n/an/a

US$30m

Dec 31 2017US$3mUS$619k

US$30m

Sep 30 2017n/an/a

-US$17m

Jun 30 2017n/an/a

-US$16m

Mar 31 2017n/an/a

-US$6m

Dec 31 2016US$376kUS$19k

-US$10m

Sep 30 2016n/an/a

US$35m

Jun 30 2016n/an/a

US$57m

Mar 31 2016n/an/a

US$28m

Dec 31 2015US$233kn/a

US$28m

Compensation vs Market: Scott's total compensation ($USD4.52M) is below average for companies of similar size in the US market ($USD6.80M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: IRT's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: IRT's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of IRT?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,424,5910.6%
General Public33,794,89415.2%
Institutions186,603,67484.1%

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 116.2%.


Top Shareholders

Top 25 shareholders own 64.11% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.57%
The Vanguard Group, Inc.
32,315,916$542.9m32.83%0.01%
13.66%
BlackRock, Inc.
30,297,368$509.0m-23.23%0.01%
5.79%
State Street Global Advisors, Inc.
12,835,672$215.6m4.33%0.01%
3.24%
Wellington Management Group LLP
7,187,098$120.7m-4.11%0.02%
2.24%
AllianceBernstein L.P.
4,974,099$83.6m3.26%0.04%
2.24%
Macquarie Investment Management Business Trust
4,973,821$83.6m159.73%0.1%
2.01%
Geode Capital Management, LLC
4,453,657$74.8m11.05%0.01%
1.83%
RREEF America L.L.C.
4,050,462$68.0m-7.67%0.35%
1.78%
Long Pond Capital, LP
3,958,483$66.5m-37.59%3.74%
1.54%
Northern Trust Global Investments
3,421,806$57.5m25.34%0.01%
1.49%
Jennison Associates LLC
3,308,932$55.6m2.81%0.05%
1.34%
AEW Capital Management LP
2,963,209$49.8m-10.78%1.94%
1.25%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
2,765,812$46.5m14.44%0.02%
1.2%
V3 Capital Management, L.P.
2,666,038$44.8m14.31%13.73%
1.15%
Charles Schwab Investment Management, Inc.
2,561,462$43.0m-2.56%0.01%
1.11%
Dimensional Fund Advisors LP
2,458,651$41.3m9.69%0.01%
1.07%
BNY Mellon Asset Management
2,383,627$40.0m-1.38%0.01%
0.98%
Renaissance Technologies LLC
2,179,846$36.6m-24.75%0.05%
0.89%
Westfield Capital Management Company, L.P.
1,976,689$33.2m10.15%0.27%
0.85%
Thrivent Investment Management, Inc.
1,893,250$31.8m2.48%0.09%
0.82%
Balyasny Asset Management L.P.
1,823,880$30.6m-12.79%0.14%
0.8%
Legal & General Investment Management Limited
1,764,070$29.6m-1.44%0.01%
0.76%
CBRE Investment Management Listed Real Assets LLC
1,688,721$28.4m166.95%0.37%
0.75%
Russell Investment Management, LLC
1,669,795$28.1m-16.02%0.05%
0.73%
Principal Global Investors, LLC
1,627,900$27.3m-29.44%0.02%

Company Information

Independence Realty Trust, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Independence Realty Trust, Inc.
  • Ticker: IRT
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.834b
  • Market Cap: US$3.727b
  • Shares outstanding: 227.91m
  • Website: https://www.irtliving.com

Number of Employees


Location

  • Independence Realty Trust, Inc.
  • 1835 Market Street
  • Suite 2601
  • Philadelphia
  • Pennsylvania
  • 19103
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRTNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2013
5O2DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2013

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.