NYSE:IRT

Stock Analysis Report

Independence Realty Trust

Executive Summary

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

Snowflake

Fundamentals

Solid track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Independence Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

IRT

1.2%

US REITs

1.0%

US Market


1 Year Return

54.6%

IRT

22.9%

US REITs

8.0%

US Market

Return vs Industry: IRT exceeded the US REITs industry which returned 22.9% over the past year.

Return vs Market: IRT exceeded the US Market which returned 8% over the past year.


Shareholder returns

IRTIndustryMarket
7 Day1.8%1.2%1.0%
30 Day4.4%2.6%-0.07%
90 Day25.8%7.9%-1.0%
1 Year65.0%54.6%28.1%22.9%10.4%8.0%
3 Year106.1%66.3%37.1%19.9%46.2%36.7%
5 Year132.8%57.3%65.8%30.7%64.3%46.2%

Price Volatility Vs. Market

How volatile is Independence Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRT ($15.07) is trading below our estimate of fair value ($17.65)

Significantly Below Fair Value: IRT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IRT is good value based on its PE Ratio (36.5x) compared to the REITs industry average (37.2x).

PE vs Market: IRT is poor value based on its PE Ratio (36.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: IRT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IRT is overvalued based on its PB Ratio (2.2x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Independence Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-42.2%

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 (-42.2% per year).

Earnings vs Market: IRT's earnings are forecast to decline over the next 3 years (-42.2% per year).

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

Revenue vs Market: IRT's revenue (3.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IRT's revenue (3.5% 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


Next Steps

Past Performance

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

17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IRT's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: IRT's earnings growth over the past year (155.9%) exceeds its 5-year average (17% per year).

Earnings vs Industry: IRT earnings growth over the past year (155.9%) exceeded the REITs industry 16.9%.


Return on Equity

High ROE: IRT's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: IRT has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: IRT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Independence Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: IRT has a high level of physical assets or inventory.

Debt Coverage by Assets: IRT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: IRT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if IRT has a sufficient allowance for bad loans.

Low Risk Liabilities: IRT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IRT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IRT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IRT has an appropriate level of bad loans.


Next Steps

Dividend

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

4.78%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IRT's dividend (4.78%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: IRT's dividend (4.78%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: Whilst dividend payments have been stable, IRT has been paying a dividend for less than 10 years.

Growing Dividend: IRT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.2%), IRT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

What is the CEO of Independence Realty Trust's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Scott Schaeffer (57yo)

6.7yrs

Tenure

US$3,580,956

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. Mr. Schaeffer served as Consultant of RAI ...


CEO Compensation Analysis

Compensation vs. Market: Scott's total compensation ($USD3.58M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

5.9yrs

Average Tenure

43yo

Average Age

Experienced Management: IRT's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

61yo

Average Age

Experienced Board: IRT's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: IRT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$53,12013 Aug 19
Richard Ross
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$13.28
SellUS$61,98013 Mar 19
Richard Ross
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceUS$10.33
SellUS$75,75707 Nov 18
Richard Ross
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,966
Max PriceUS$9.51

Ownership Breakdown


Management Team

  • Scott Schaeffer (57yo)

    Chairman & CEO

    • Tenure: 6.7yrs
    • Compensation: US$3.58m
  • Jim Sebra (43yo)

    CFO & Treasurer

    • Tenure: 7.4yrs
    • Compensation: US$1.56m
  • Ted McHugh

    SVP, Edelman Financial Communications & Capital Markets

    • Tenure: 0yrs
  • Farrell Ender (43yo)

    President

    • Tenure: 5.2yrs
    • Compensation: US$1.52m
  • Jessica Norman

    Executive VP

    • Tenure: 0yrs
  • Jason Delozier (35yo)

    Chief Accounting Officer

    • Tenure: 1.7yrs
  • Alex Jorgensen

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Rick Gebert (61yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$119.99k
  • Scott Schaeffer (57yo)

    Chairman & CEO

    • Tenure: 6.7yrs
    • Compensation: US$3.58m
  • Mack Pridgen (69yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$112.49k
  • Bill Dunkelberg (76yo)

    IndependentDirector

    • Tenure: 8.7yrs
    • Compensation: US$117.49k
  • Buster Soaries (68yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$119.99k
  • Richard Ross (60yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$99.99k
  • Mindi McClure (51yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$109.99k

Company Information

Independence Realty Trust, Inc.'s company bio, 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$1.364b
  • Market Cap: US$1.354b
  • Shares outstanding: 90.73m
  • 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

Biography

Independence Realty Trust (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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:20
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.