NYSE$IRT

Independence Realty Trust Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Independence Realty Trust's portfolio remained resilient, benefiting from its focus on middle-market communities and strategic investments in the Sunbelt region. The company strategically navigated the current environment through resident-focused initiatives and maintained a strong liquidity position.

Independence Realty Trust (IRT) reported a resilient performance in Q3 2020, characterized by a strong portfolio of assets in non-gateway markets and a focus on middle-market communities. The company maintained a solid occupancy rate and average effective rent, while also making progress in its value-add program. IRT's strategic initiatives and strong balance sheet have positioned it well to navigate the current environment.

  • IRT owns and operates 58 communities with 15,805 units and $1.9B in gross assets as of September 30, 2020.
  • Same-store NOI growth was 2.6% year-over-year through September 30, 2020.
  • The average effective rent was $1,106 in Q3 2020.
  • The average occupancy rate was 94.0% in Q3 2020.

Headline financials

Total Revenue

$54.2M

Previous: $51.3M+5.7%
EPS (adj)

$0.20

Previous: $0.19+5.3%
Portfolio Average Occupancy

94.0%

No prior period
Capital Expenditures

-$69K

Previous: -$193K+64.2%
Free Cash Flow

$1.02M

Previous: $4.72M-78.4%
Net Income

$1.09M

Previous: $4.91M-77.8%
Operating Income

$10.9M

Previous: $34.4M-68.4%
Gross Profit

$30M

Previous: $49.4M-39.3%
Cash & Equivalents

$9.89M

Previous: $6.59M+50.2%
Total Assets

$1.7B

Previous: $1.65B+2.9%
Stock-Based Comp

$902K

Previous: $692K+30.3%

Revenue & EPS history

Independence Realty Trust · Revenue · Quarterly

$54.2M

Q3 2020+5.7%vs Q3 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

IRT is focused on long-term growth through operational efficiencies, value add community redevelopment, and a clear investment strategy.

Tailwinds

  • Improved online marketing and leasing to enhance resident experience.
  • Increased usage of mobile and IoT technologies for operational efficiencies.
  • Automation of workflows and big data for greater profitability and margin expansion.
  • Redevelopment ongoing at 5,212 units across 17 properties, creating outsized NOI growth.
  • Expect 15-20% return on investment on the remaining units with ongoing property redevelopment, unlocking an additional $3.6 million in annual NOI.

Headwinds

  • Redevelopment on hold at 1,864 units across 6 properties, to be assessed as market conditions improve.
  • Uncertainty in market conditions due to COVID-19 may impact redevelopment plans.
  • Delays in completing value add initiatives could affect projected rent increases and occupancy levels.
  • Legislative restrictions may delay or limit collections of past-due rents.
  • Unexpected costs of REIT qualification compliance could impact financial performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.8%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.3%

Avg return

30 days after

51%

26 / 51 earnings

Positive

+10.0%

Q2 2015

Best reaction

-8.7%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+1.3%-0.3%
Q4 2025-5.3%-2.4%-6.0%
Q3 2025+4.5%+7.2%+13.4%
Q1 2025-1.4%-0.3%-4.3%
Q4 2024+2.2%+3.6%+4.5%
Q3 2024-0.5%-2.3%+10.8%
Q2 2024+2.9%+2.0%+11.4%
Q1 2024-0.1%+1.9%+5.4%
Q4 2023+8.2%+8.4%+8.5%
Q3 2023+1.6%+11.8%+11.0%
Q2 2023-1.6%-0.4%-3.7%
Q1 2023+4.8%+6.2%+8.0%
Q4 2022-1.8%-3.0%-19.8%
Q3 2022+0.2%+2.2%+6.7%
Q2 2022+4.5%+1.7%-5.3%
Q1 2022-2.0%-10.1%-7.7%
Q4 2021+4.0%-3.6%+1.1%
Q3 2021+6.6%+5.8%+10.5%
Q2 2021-8.7%-3.6%+0.1%
Q1 2021-1.8%-1.7%+0.9%
Q4 2020+2.1%+5.7%+8.3%
Q3 2020+4.1%+3.8%+7.2%
Q2 2020+3.4%-0.4%+7.2%
Q1 2020-3.5%-1.3%+19.1%
Q4 2019+5.6%+8.2%-39.3%
Q3 2019+1.7%-1.7%-1.4%
Q2 2019+5.2%+1.9%+12.4%
Q1 2019-0.5%+0.7%+3.7%
Q4 2018-3.9%-4.3%-1.8%
Q3 2018-2.4%-2.8%+1.9%
Q2 2018+0.0%-0.4%+1.4%
Q1 2018-1.1%+0.0%+0.9%
Q4 2017-5.7%-1.3%+2.6%
Q3 2017+0.6%+1.7%+1.1%
Q2 2017+0.0%+0.1%+1.7%
Q1 2017-0.5%-1.3%+7.2%
Q4 2016-0.7%-1.8%-0.5%
Q3 2016-2.8%-8.5%+3.9%
Q2 2016+7.6%+9.9%+10.2%
Q1 2016+4.1%
Q4 2015+3.1%
Q3 2015+5.2%
Q2 2015+10.0%
Q1 2015-5.2%
Q4 2014-1.4%
Q3 2014+0.6%
Q2 2014+0.4%
Q1 2014-1.3%
Q4 2013+0.9%
Q3 2013+1.0%
Q2 2013-3.0%
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2011
Q1 2012
Q4 2009
Q4 2011
Q3 2010
Q3 2011
Q2 2011
Q2 2010
Q4 2010
Q1 2010

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