IRT

Independence Realty TrustNYSE:IRT Stock Report

Market Cap

US$2.1b

7D

0.9%

1Y

72.8%

Updated

16 Sep, 2021

Data

Company Financials +
IRT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health1/6
Dividends3/6

IRT 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$20.27
52 Week HighUS$10.84
52 Week LowUS$21.00
Beta0.93
1 Month Change2.06%
3 Month Change13.18%
1 Year Change72.80%
3 Year Change96.04%
5 Year Change93.23%
Change since IPO139.88%

Recent News & Updates

Aug 06

Independence Realty Has Great Properties But Poor Governance

IRT's sunbelt apartment properties are growing nicely. But that growth is not making it to investors. Corporate waste and dilutive equity issuance have kept FFO/share stagnant to down.

Shareholder Returns

IRTUS REITsUS Market
7D0.9%-0.6%-0.6%
1Y72.8%31.0%33.6%

Return vs Industry: IRT exceeded the US REITs industry which returned 30.8% over the past year.

Return vs Market: IRT exceeded the US Market which returned 33.7% over the past year.

Price Volatility

Is IRT's price volatile compared to industry and market?
IRT volatility
IRT Beta0.93
Industry Beta0.82
Market Beta1

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
2009444Scott 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.

Valuation

Is Independence Realty Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRT ($20.27) is trading below our estimate of fair value ($89.59)

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


Price To Earnings Ratio

PE vs Industry: IRT is poor value based on its PE Ratio (113.5x) compared to the US REITs industry average (50.6x).

PE vs Market: IRT is poor value based on its PE Ratio (113.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: IRT is poor value based on its PEG Ratio (8.1x)


Price to Book Ratio

PB vs Industry: IRT is overvalued based on its PB Ratio (2.9x) compared to the US REITs industry average (2x).


Future Growth

How is Independence Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRT's forecast earnings growth (14% per year) is above the savings rate (2%).

Earnings vs Market: IRT's earnings (14% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: IRT's earnings are forecast to grow, but not significantly.

Revenue vs Market: IRT's revenue (51.3% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: IRT's revenue (51.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRT's Return on Equity is forecast to be low in 3 years time (1.2%).


Past Performance

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

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRT has a large one-off gain of $6.9M impacting its June 30 2021 financial results.

Growing Profit Margin: IRT's current net profit margins (8.5%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: IRT's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: IRT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IRT had negative earnings growth (-35.2%) over the past year, making it difficult to compare to the REITs industry average (3.9%).


Return on Equity

High ROE: IRT's Return on Equity (2.5%) is considered low.


Financial Health

How is Independence Realty Trust's financial position?


Financial Position Analysis

Short Term Liabilities: IRT's short term assets ($42.8M) do not cover its short term liabilities ($54.7M).

Long Term Liabilities: IRT's short term assets ($42.8M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: IRT's debt to equity ratio (144%) is considered high.

Reducing Debt: IRT's debt to equity ratio has reduced from 219.3% to 144% over the past 5 years.

Debt Coverage: IRT's debt is not well covered by operating cash flow (7.8%).

Interest Coverage: IRT's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

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

2.37%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 17 2021Ex Dividend DateSep 30 2021Dividend Pay DateOct 22 202122 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: IRT's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: IRT's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.1%), IRT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRT's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Scott Schaeffer (59 yo)

8.58yrs

Tenure

US$3,495,195

Compensation

Mr. Scott F. Schaeffer has been the Chief Executive Officer at Independence Realty Trust, Inc. since February 8, 2013 and has been its Chairman since January 2011. He served as Chief Executive Officer of R...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD3.50M) is about average for companies of similar size in the US market ($USD3.66M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IRT's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: IRT's board of directors are seasoned and experienced ( 10.6 years average tenure).


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.7%.


Top Shareholders

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$2.136b
  • Market Cap: US$2.125b
  • Shares outstanding: 105.40m
  • Website: https://www.irtliving.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:54
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.