Independence Realty Trust Announces First Quarter 2021 Financial Results

Rhea-AI Summary

Independence Realty Trust (IRT) reported a strong first quarter for 2021, showing net income of $1.1 million, a notable improvement from a net loss of $0.4 million in Q1 2020. Earnings per diluted share reached $0.01, up from $0.00 year-over-year. Same store net operating income (NOI) grew by 5.3%, while core funds from operations (CFFO) increased to $18.0 million from $14.6 million. Rental collection rates remained high, at 98.4%. Management raised guidance for 2021, citing strong occupancy and rental rate growth.

Positive

• Net income rose to $1.1 million from a net loss of $0.4 million year-over-year.
• Earnings per diluted share improved to $0.01 from $0.00.
• Same store NOI growth of 5.3% compared to Q1 2020.
• CFFO increased to $18.0 million from $14.6 million, with CFFO per share at $0.18.
• Collected 98.4% of rents billed in Q1 2021.

Negative

• Property operating expenses increased by 6.2%, potentially impacting profitability.
• NOI margin decreased by 20 basis points to 61.5%.

Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its first quarter 2021 financial results.

First Quarter Highlights

• Net income available to common shares of $1.1 million for the quarter ended March 31, 2021 compared to a net loss of $0.4 million for the quarter ended March 31, 2020.

• Earnings per diluted share of $0.01 for the quarter ended March 31, 2021 compared to $0.00 for the quarter ended March 31, 2020.

• Same store net operating income (“NOI”) growth of 5.3% for the quarter ended March 31, 2021 compared to the quarter ended March 31, 2020.

• Core Funds from Operations (“CFFO”) of $18.0 million for the quarter ended March 31, 2021 compared to $14.6 million for the quarter ended March 31, 2020. CFFO per share was $0.18 for the first quarter of 2021, as compared to $0.16 for the first quarter of 2020. To note, this reflects the adoption of our new definition of CFFO, where we no longer exclude stock compensation expense or amortization of deferred financing costs from our computation.

• Adjusted EBITDA of $26.4 million for the quarter ended March 31, 2021 compared to $24.1 million for the quarter ended March 31, 2020.

• Collected 98.4% of rents billed during the quarter ended March 31, 2021 and 99.2% of rents billed during the quarter ended December 31, 2020.

Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP.

Management Commentary

“We are pleased to report a strong start to the year as vaccine distribution is supporting accelerated re-openings across all of our markets. For the first quarter of 2021, same store NOI increased by 5.3%, led by our continual focus on driving occupancy and rental rates. Our same store occupancy increased 40 basis points since the fourth quarter of 2020, and a sizeable 260 basis points on a year-over-year basis. Rental rates continued to move higher, growing 5.9% over the expiring leases during the first quarter and 4.6% during the second quarter to date. We are excited with the start of this year and remain confident in our growth strategy. As a result, we are raising our 2021 guidance given an improving outlook and the growth potential of our attractive market presence,” said Scott Schaeffer, Chairman and CEO of IRT.

Same Store Property Operating Results

	First Quarter 2021 Compared to First Quarter 2020(1)
Rental and other property revenue	5.6% increase
Property operating expenses	6.2% increase
Net operating income (“NOI”)	5.3% increase
Portfolio average occupancy	260 bps increase to 95.3%
Portfolio average rental rate	2.9% increase to $1,129
NOI Margin	20 bps decrease to 61.5%

(1)

Same store portfolio for the three and twelve months ended March 31, 2021 includes 54 properties, which represent 14,995 units.

Same Store Property Operating Results, Excluding Value Add

The same store portfolio results below exclude 18 communities that are both part of the same store portfolio and were actively undergoing Value Add renovations during the three months ended March 31, 2021.

FAQ

What were Independence Realty Trust's Q1 2021 earnings results?

Independence Realty Trust reported a net income of $1.1 million and earnings per diluted share of $0.01 for Q1 2021.

How did IRT's same store NOI perform in Q1 2021?

IRT's same store net operating income grew by 5.3% compared to the first quarter of 2020.

What is IRT's guidance for 2021?

Management raised IRT's 2021 guidance, citing an improving outlook and growth potential.

What percentage of rents did IRT collect in Q1 2021?

IRT collected 98.4% of rents billed during the first quarter of 2021.

How did IRT's occupancy rates change in Q1 2021?

IRT's same store occupancy increased by 40 basis points since Q4 2020 and by 260 basis points year-over-year.