Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S.
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Independence Realty Trust Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$20.27|
|52 Week High||US$10.84|
|52 Week Low||US$21.00|
|1 Month Change||2.06%|
|3 Month Change||13.18%|
|1 Year Change||72.80%|
|3 Year Change||96.04%|
|5 Year Change||93.23%|
|Change since IPO||139.88%|
Recent News & Updates
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.
|IRT||US REITs||US Market|
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.
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
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.
Is Independence Realty Trust undervalued compared to its fair value and its price relative to the market?
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).
How is Independence Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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%).
How has Independence Realty Trust performed over the past 5 years?
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.
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 ($1.1B).
Debt to Equity History and Analysis
Debt Level: IRT's debt to equity ratio (144%) is considered high.
Reducing Debt: IRT's debt to equity ratio has reduced from 219.3% to 144% over the past 5 years.
Debt Coverage: IRT's debt is not well covered by operating cash flow (7.8%).
Interest Coverage: IRT's interest payments on its debt are not well covered by EBIT (1.3x coverage).
What is Independence Realty Trust current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: IRT's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: IRT's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.58%).
Stability and Growth of Payments
Stable Dividend: IRT has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: IRT has only been paying a dividend for 8 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.1%), IRT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IRT's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Scott Schaeffer (59 yo)
Mr. Scott F. Schaeffer has been the Chief Executive Officer at Independence Realty Trust, Inc. since February 8, 2013 and has been its Chairman since January 2011. He served as Chief Executive Officer of R...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($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.
Experienced Management: IRT's management team is seasoned and experienced (7.1 years average tenure).
Experienced Board: IRT's board of directors are seasoned and experienced ( 10.6 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.7%.
Independence Realty Trust, Inc.'s employee growth, exchange listings and data sources
- 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
- Independence Realty Trust, Inc.
- 1835 Market Street
- Suite 2601
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 22:54|
|End of Day Share Price||2021/09/16 00:00|
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.