On February 12, 2025, Independence Realty Trust Inc (IRT, Financial) released its 8-K filing, announcing its fourth quarter and full year 2024 financial results. Independence Realty Trust Inc is a real estate investment trust (REIT) that acquires, owns, operates, improves, and manages multifamily apartment communities across non-gateway U.S. markets, including Louisville, Memphis, Atlanta, and Raleigh.
Performance Overview
Independence Realty Trust Inc reported an earnings per share (EPS) of $0.17 for the full year 2024, below the annual estimate of $0.24. The company achieved a Core Funds from Operations (CFFO) per share of $1.16 for the year, aligning with the high-end of its guidance. The same-store portfolio net operating income (NOI) increased by 5.3% in the fourth quarter and 3.2% for the full year, reflecting solid occupancy gains and rental rate growth.
Financial Achievements and Strategic Initiatives
Independence Realty Trust Inc's financial achievements are significant for a REIT, as they demonstrate effective portfolio management and operational efficiency. The company completed 1,671 renovations in its value-add program, achieving an average return on investment (ROI) of 15.7% during the year. Additionally, the company's net debt-to-adjusted EBITDA improved to 5.9x by year-end 2024, enhancing balance sheet strength and flexibility.
Income Statement and Balance Sheet Highlights
For the fourth quarter of 2024, Independence Realty Trust Inc reported a net loss available to common shares of $1.0 million, a significant improvement from the $40.5 million loss in the same quarter of 2023. The company's CFFO for the quarter was $75.0 million, up from $68.7 million in the previous year. Adjusted EBITDA for the quarter was $94.5 million, slightly down from $95.6 million in 2023, primarily due to asset sales related to the Portfolio Optimization and Deleveraging Strategy.
Key Metrics and Commentary
Independence Realty Trust Inc's same-store portfolio saw a 2.3% increase in rental and other property revenue for the fourth quarter, with a 3.0% increase for the full year. Property operating expenses decreased by 3.0% in the fourth quarter but increased by 2.5% for the year. The company's portfolio average occupancy improved by 100 basis points to 95.5% in the fourth quarter.
“2024 was another strong year for IRT as we achieved the high-end of our guidance, with CFFO per share of $1.16 and NOI growth of 3.2%,” said Scott Schaeffer, Chairman and CEO of IRT.
Analysis and Future Outlook
Independence Realty Trust Inc's performance in 2024 underscores its strategic focus on balancing occupancy and rental rate growth. The company's achievements in enhancing its balance sheet and expanding its unsecured credit facility from $500 million to $750 million in January 2025 reflect its commitment to long-term value creation. Looking ahead, the company has introduced guidance for 2025, projecting EPS between $0.19 and $0.22, and CFFO per share between $1.16 and $1.19, indicating a stable outlook.
| Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Net Income (Loss) Available to Common Shares | ($1.0 million) | ($40.5 million) | $39.3 million | ($17.2 million) |
| CFFO | $75.0 million | $68.7 million | $266.9 million | $263.9 million |
| Adjusted EBITDA | $94.5 million | $95.6 million | $350.3 million | $366.8 million |
Independence Realty Trust Inc's strategic initiatives and financial performance position it well for continued growth in 2025, as it capitalizes on rebounding market fundamentals to create value for shareholders.
Explore the complete 8-K earnings release (here) from Independence Realty Trust Inc for further details.
