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

4.2%

NYSE:IRT

1.6%

US REITs

2.9%

US Market


1 Year Return

34.1%

NYSE:IRT

9.9%

US REITs

0.2%

US Market

IRT outperformed the REITs industry which returned 9.1% over the past year.

IRT outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

IRTIndustryMarket
7 Day4.2%1.6%2.9%
30 Day14.9%3.8%-2.3%
90 Day24.9%3.3%3.1%
1 Year43.9%34.1%14.9%9.9%2.4%0.2%
3 Year81.7%46.7%25.0%8.7%41.7%32.4%
5 Year101.8%37.2%59.2%25.3%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Independence Realty Trust's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Independence Realty Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Independence Realty Trust is good value based on earnings compared to the US REITs industry average.

Independence Realty Trust is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Independence Realty Trust earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Independence Realty Trust is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Independence Realty Trust expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

-42.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Independence Realty Trust's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Independence Realty Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Independence Realty Trust's revenue growth is positive but not above the United States of America market average.

Independence Realty Trust's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Independence Realty Trust's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Independence Realty Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Independence Realty Trust's year on year earnings growth rate has been positive over the past 5 years.

Independence Realty Trust's 1-year earnings growth exceeds its 5-year average (155.9% vs 17%)

Independence Realty Trust's earnings growth has exceeded the US REITs industry average in the past year (155.9% vs 16.9%).


Return on Equity

Independence Realty Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Independence Realty Trust used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Independence Realty Trust has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Independence Realty Trust's financial position?


Financial Position Analysis

Independence Realty Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Independence Realty Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Independence Realty Trust's level of debt (164%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (157.7% vs 164% today).

Debt is not well covered by operating cash flow (6.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

5.22%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Independence Realty Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Independence Realty Trust's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Whilst dividend payments have been stable, Independence Realty Trust has been paying a dividend for less than 10 years.

Dividend payments have increased, but Independence Realty Trust only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (104.5x coverage).


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?

5.8yrs

Average management tenure


CEO

Scott Schaeffer (57yo)

6.5yrs

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

Scott's remuneration is about average for companies of similar size in United States of America.

Scott's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.8yrs

Average Tenure

43yo

Average Age

The average tenure for the Independence Realty Trust management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.9yrs

Average Tenure

61yo

Average Age

The tenure for the Independence Realty Trust board of directors is about average.


Insider Trading

Independence Realty Trust individual 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: 6.5yrs
    • Compensation: US$3.58m
  • Jim Sebra (43yo)

    CFO & Treasurer

    • Tenure: 7.3yrs
    • Compensation: US$1.56m
  • Ted McHugh

    SVP, Edelman Financial Communications & Capital Markets

    • Tenure: 0.0yrs
  • Farrell Ender (43yo)

    President

    • Tenure: 5.0yrs
    • Compensation: US$1.52m
  • Jessica Norman

    Executive VP

    • Tenure: 0.0yrs
  • Jason Delozier (35yo)

    Chief Accounting Officer

    • Tenure: 1.5yrs
  • Alex Jorgensen

    Investor Relations Officer

    • Tenure: 0.0yrs

Board Members

  • Rick Gebert (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$119.99k
  • Scott Schaeffer (57yo)

    Chairman & CEO

    • Tenure: 6.5yrs
    • Compensation: US$3.58m
  • Mack Pridgen (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$112.49k
  • Bill Dunkelberg (76yo)

    IndependentDirector

    • Tenure: 8.5yrs
    • Compensation: US$117.49k
  • Buster Soaries (68yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$119.99k
  • Richard Ross (60yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$99.99k
  • Mindi McClure (51yo)

    Independent Director

    • Tenure: 2.2yrs
    • 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$1.241b
  • Market Cap: US$1.239b
  • 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 Analysis2019/08/22 00:21
End of Day Share Price2019/08/21 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.