Independence Realty Trust Announces Fourth Quarter and Full Year 2020 Financial Results
Independence Realty Trust (IRT) reported Q4 2020 net income of $13.3 million, down from $23.8 million in Q4 2019, with earnings per share of $0.14 compared to $0.26. The quarter included $9.4 million in real estate gains, a decline from $20.7 million year-over-year. Full-year net income was $14.8 million, significantly lower than $45.9 million in 2019. Despite the downturn, same store NOI grew 4.4% in Q4 and 3.1% for the year. IRT projects 2021 EPS of $0.04-$0.08 and CFFO per share of $0.78-$0.82, indicating cautious optimism amidst pandemic challenges.
- Same store NOI growth of 4.4% in Q4 and 3.1% for the full year.
- Core Funds from Operations (CFFO) increased to $75.9 million in 2020, up from $68.5 million in 2019.
- Portfolio average occupancy increased to 94.9% in Q4 2020, a 250 bps increase.
- Net income available to common shares for 2020 was $14.8 million, down from $45.9 million in 2019.
- Total earnings per diluted share decreased to $0.16 in 2020 from $0.51 in 2019.
- Gains on the sale of real estate assets dropped significantly from $35.2 million in 2019 to $7.6 million in 2020.
Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its fourth quarter and full year 2020 financial results.
Fourth Quarter Highlights
-
Net income available to common shares of
$13.3 million for the quarter ended December 31, 2020 compared to$23.8 million for the quarter ended December 31, 2019. Earnings per diluted share of$0.14 for the quarter ended December 31, 2020 compared to$0.26 for the quarter ended December 31, 2019. The quarter ended December 31, 2020 included$9.4 million of gains on sale of real estate assets, net, whereas the quarter ended December 31, 2019 included$20.7 million of gains on sale of real estate assets, net.
-
Same store net operating income (“NOI”) growth of
4.4% for the quarter ended December 31, 2020 compared to the quarter ended December 31, 2019.
-
Core Funds from Operations (“CFFO”) of
$20.8 million for the quarter ended December 31, 2020 compared to$18.6 million for the quarter ended December 31, 2019. CFFO per share was$0.22 for the fourth quarter of 2020, as compared to$0.20 for the fourth quarter of 2019.
-
Adjusted EBITDA of
$28.5 million for the quarter ended December 31, 2020 compared to$27.4 million for the quarter ended December 31, 2019.
-
Collected
98.7% of rents billed during the quarter ended December 31, 2020.
Full Year Highlights
-
Since the inception of our value add program in January 2018 through December 31, 2020, IRT has completed renovations at 3,719 units, achieving a weighted average return on investment of
18.3% on interior renovations and15.9% on total renovation costs.
-
Net income available to common shares of
$14.8 million for the year ended December 31, 2020 compared to$45.9 million for the year ended December 31, 2019. Earnings per diluted share of$0.16 for the year ended December 31, 2020 compared to$0.51 for the year ended December 31, 2019. The year ended December 31, 2020 included$7.6 million of gains on sale of real estate assets, net, whereas the year ended December 31, 2019 included$35.2 million of gains on sale of real estate assets, net.
-
Same store net operating income (“NOI”) growth of
3.1% for the year ended December 31, 2020 compared to the year ended December 31, 2019.
-
Core Funds from Operations (“CFFO”) of
$75.9 million for the year ended December 31, 2020 compared to$68.5 million for the year ended December 31, 2019. CFFO per share was$0.80 for the full year 2020, as compared to$0.76 for the full year 2019.
-
Adjusted EBITDA of
$105.3 million for the year ended December 31, 2020 compared to$103.2 million for the year ended December 31, 2019.
-
Collected
99.3% of rents billed during the year 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
“Throughout 2020, the IRT team remained steadfast in our response to the unexpected challenges brought on by the global pandemic. We focused on maintaining occupancy and strengthening our balance sheet while providing payment flexibility to our financially impacted residents. This response supported our ability to deliver strong fourth quarter and full year results,” said Scott Schaeffer, Chairman and CEO of IRT. “We increased same store NOI by
“Based on the successful execution of our key priorities in 2020 to support our residents and employees, maintain occupancy and drive leasing traffic while maintaining ample liquidity, IRT is well-positioned to further grow and strengthen our business for near and long-term success. In 2021, we will continue to focus our efforts on increasing our return on investment at existing properties, assessing investments in new properties that fit our criteria, and rotating capital out of non-core markets with limited growth potential. Our strong balance sheet with
Same Store Property Operating Results
|
Fourth Quarter 2020 Compared
|
Full Year 2020 Compared to
|
Rental and other property revenue |
|
|
Property operating expenses |
|
|
Net operating income (“NOI”) |
|
|
Portfolio average occupancy |
250 bps increase to |
30 bps increase to |
Portfolio average rental rate |
|
|
NOI Margin |
70 bps decrease to |
30 bps decrease to |
(1) |
Same store portfolio for the three and twelve months ended December 31, 2020 includes 51 properties, which represent 14,189 units. |
Same Store Property Operating Results, Excluding Value Add
The same store portfolio results below exclude 16 communities that are both part of the same store portfolio and were actively undergoing Value Add renovations during the three and twelve months ended December 31, 2020.
|
Fourth Quarter 2020 Compared to
|
Full Year 2020 Compared to
|
Rental and other property revenue |
|
|
Property operating expenses |
|
|
Net operating income (“NOI”) |
|
|
Portfolio average occupancy |
160 bps increase to |
Unchanged at |
Portfolio average rental rate |
|
|
NOI Margin |
110 bps decrease to |
30 bps decrease to |
(1) |
Same store portfolio, excluding value add, for the three and twelve months ended December 31, 2020 includes 35 properties, which represent 9,121 units. |
COVID-19 Metrics (1)(2)
Rent collections |
4Q 2020 |
4Q 2019 |
3Q 2020 |
Rent collected for the period presented, as a percentage of rent billed |
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|
|
|
|
|
|
Deferred payment plans: (3) |
|
|
|
Number of deferred payment plans |
13 |
- |
3 |
Amount of monthly rent deferred for period presented |
|
- |
|
Amount of monthly rent deferred for the period presented, as a percentage of rent billed |
|
|
|
|
|
|
|
Combined rent collected and rent subject to deferred payment plans, as a percentage of rent billed |
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|
|
| (1) | Dollar amounts in thousands. All metrics presented are for our total portfolio in the period presented. |
|
(2) |
All metrics are based on our internal data, which management uses to monitor property performance on a daily or weekly basis. |
|
(3) |
Deferred payment plans allow residents to defer a portion of their monthly rent for one or more months or to repay over time past-due rent which was unpaid due to a COVID-related financial hardship. Residents must provide evidence of hardship and commit to a full 12-month lease term, which allows deferred payments to be repaid over a longer remaining lease term. As of December 31, 2020, there were 229 active deferred payment plans with an aggregate of |
As a result of the COVID-19 pandemic, we recorded a provision for bad debts of
Components of Bad Debt (1) |
4Q 2020 |
4Q 2019 |
3Q 2020 |
|||
Amount |
Percentage |
Amount |
Percentage |
Amount |
Percentage |
|
Charge-offs, net |
|
|
|
|
|
|
Provision for bad debt |
124 |
|
- |
- |
|
|
Net bad debt |
|
|
|
|
|
|
(1) |
Dollar amounts are in thousands and percentages are as a percentage of total rental and other property income. Bad debt is recorded as a reduction to rental and other property revenue in our consolidated statements of operations. |
Operating statistics |
January 2021 |
January 2020 |
4Q 2020 |
Rent collected for the period presented, as a percentage of rent billed |
|
|
|
Amount of monthly rent deferred for the period presented, as a percentage of rent billed |
|
|
|
Combined rent collected and rent subject to deferred payment plans, as a percentage of rent billed |
|
|
|
Total portfolio average occupancy |
|
|
|
Total portfolio average effective monthly rent per unit |
|
|
|
Resident retention rate |
|
|
|
Traffic (1) |
10,862 |
12,343 |
27,185 (1) |
(1) |
Traffic represents instances of first contact with potential residents through email, phone call, office visit, etc. Traffic during 4Q 2020 was |
Lease-Over-Lease Effective Rent Growth (1)
The table below depicts lease-over-lease effective rent growth for all new and renewal leases entered into during the respective periods for the 51-property same store portfolio.
Lease Type |
4Q 2020 |
1Q 2021(2) |
New Leases |
|
|
Renewal Leases |
|
|
Total |
|
|
(1) |
Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months. |
|
(2) |
For new leases and renewals commencing during 1Q 2021 that were signed as of February 5, 2021. |
Value Add Program
We completed renovations on 230 units and 1,004 units during the quarter ended and year ended December 31, 2020, respectively. From inception of our value add program in January 2018 through December 31, 2020, we completed renovations on 3,719 units, achieving a return on investment of
Capital Recycling
In fourth quarter 2020, we continued our capital recycling activity in support of our ongoing initiative to establish and grow our presence in markets where we see long-term growth opportunities and reevaluate those that may not be attractive long-term investments.
Completed Acquisitions:
-
Legacy at Jones Farms in Huntsville, AL: On December 1, 2020, we acquired this 421-unit property built in two phases in 2014 and 2019 for
$94.0 million . This acquisition expanded our footprint in Huntsville from 178 units to 599 units, at an average rent per unit above that of our existing total portfolio effective monthly rent per unit.
Completed Dispositions:
-
Trails at Signal Mountain in Chattanooga, TN: On October 27, 2020, we sold this 172-unit property for
$20.0 million and recognized a$6.2 million gain on sale in fourth quarter 2020. -
Live Oak Trace in Baton Rouge, LA: On November 10, 2020, we sold this 264-unit property for
$25.4 million and as a result, exited the Baton Rouge market. We recognized a$1.8 million impairment charge in third quarter 2020. -
Lakeshore on the Hill in Chattanooga, TN: On November 23, 2020, we sold this 123-unit property for
$14.3 million and recognized a$3.5 million gain on sale in fourth quarter 2020. As a result of this sale, we exited the Chattanooga market.
Financial Flexibility – Total Liquidity and Debt Reduction
As of December 31, 2020, we had a total liquidity position of approximately
During the fourth quarter, we issued the remaining 6,944,000 shares of common stock and received the remaining
At-the-Market Offering
On November 13, 2020, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock having an aggregate offering price of up to
Capital Expenditures
For the three months ended December 31, 2020, recurring capital expenditures for the total portfolio were
Distributions
On December 14, 2020, our Board of Directors declared a quarterly cash dividend of
Board Appointment
On January 5, 2021, we announced the appointment of Lisa Washington as an independent director to our Board of Directors, increasing the size of the Board from six to seven directors. Ms. Washington has more than 25 years of experience in corporate governance and public company compliance and brings to IRT her expertise as an accomplished legal executive and corporate officer. The appointment represents our ongoing commitment to Board refreshment and diversity.
2021 EPS and CFFO Guidance
Based on increasing clarity surrounding business, industry and broader economic conditions, we are introducing 2021 full year guidance. EPS per diluted share is projected to be in the range of
2021 Full Year EPS and CFFO Guidance (1)(2) |
Low |
High |
Earnings per share |
|
|
Adjustments: |
|
|
Depreciation and amortization |
0.67 |
0.67 |
Stock compensation expense |
0.06 |
0.06 |
Amortization of deferred financing costs |
0.01 |
0.01 |
CFFO per share allocated to common shareholders |
|
|
(1) |
This guidance, including the underlying assumptions, constitutes forward-looking information. Actual full year 2021 EPS and CFFO per share could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below. |
|
(2) |
Per share guidance is based on 102.6 million weighted average shares and units outstanding. See 2021 guidance assumptions for additional information. |
2021 Guidance Assumptions
Our key assumptions for 2021 guidance are enumerated below. Our per share guidance above is based on the assumption of 102.6 million common shares, which is an increase of 8.2 million shares over our 2020 weighted average share count. This increase is a result of the shares issued during 2020, from the February 2020 forward equity raise, where the proceeds were used to fund our Huntsville acquisition in December 2020 with the remaining used to reduce outstanding indebtedness. Our 2021 guidance assumes we do not engage in acquisitions, related borrowings or dispositions.
Same Store Communities |
2021 Outlook (1) |
Number of properties/units |
54 properties / 14,955 units |
Property revenue growth |
|
Controllable property operating expense growth |
|
Real estate tax and insurance expense increase |
|
Total real estate operating expense growth |
|
Property NOI growth |
|
|
|
Corporate Expenses (excluding stock compensation) (2) |
|
General and administrative expenses |
|
Property management expenses |
|
|
|
Interest expense (excluding amortization of deferred financing costs) (3) |
|
|
|
Transaction/Investment Volume (4) |
|
Acquisition volume |
None assumed |
Disposition volume |
None assumed |
|
|
Capital Expenditures |
|
Recurring |
|
Value add & non-recurring |
|
(1) |
This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” below. |
|
(2) |
Corporate expenses including stock compensation expense are forecasted to be as follows: General and administrative expenses - |
|
(3) |
Interest expense including deferred financing costs is forecasted to be |
|
(4) |
We continue to evaluate our portfolio for capital recycling opportunities. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements” below. |
Beginning in the first quarter of 2021, we expect to change our definition of CFFO such that we will no longer exclude stock compensation expense or amortization of deferred financing costs from our computation of CFFO. When we adopt this change, we will present all historical results and 2021 guidance in accordance with the new definition. We expect stock compensation expense and amortization of deferred financing costs to total approximately
Selected Financial Information
See the schedules at the end of this earnings release for selected financial information for IRT.
Non-GAAP Financial Measures and Definitions
We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.
Conference Call
All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, February 11, 2021 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.833.789.1330. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website and telephonically until Thursday, February 18, 2021 by dialing 1.800.585.8367, access code 9394295.
Supplemental Information
We produce supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same store information and other useful information for investors. The supplemental information is available via our website, www.irtliving.com, through the "Investor Relations" section.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Dallas, Louisville, Memphis, Raleigh and Tampa. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on IRT’s website at www.irtliving.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. These forward-looking statements include, without limitation, our expectations with respect to capital allocations, including as to the timing and amount of future dividends. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks related to the impact of COVID-19 and other potential future outbreaks of infectious diseases on our financial condition, results of operations, cash flows and performance and those of our residents as well as on the economy and real estate and financial markets; changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; legislative restrictions that may delay or limit collections of past due rents; risks endemic to real estate and the real estate industry generally; the effects of natural and other disasters; delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount of the quarterly dividend described in this press release.
Schedule I Independence Realty Trust, Inc. Selected Financial Information (Dollars in thousands, except share and per share amounts) (unaudited) |
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For the Three Months Ended |
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December 31, 2020 |
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September 30, 2020 |
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June 30, 2020 |
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March 31, 2020 |
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December 31, 2019 |
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Selected Financial Information: |
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Operating Statistics: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shares |
|
$ |
13,261 |
|
|
$ |
1,090 |
|
|
$ |
789 |
|
|
$ |
(372 |
) |
|
$ |
23,784 |
|
|
Earnings (loss) per share -- diluted |
|
$ |
0.14 |
|
|
0.01 |
|
|
$ |
0.01 |
|
|
|
|
|
$ |
0.26 |
|
|
||
Rental and other property revenue |
|
$ |
53,923 |
|
|
$ |
54,001 |
|
|
$ |
52,087 |
|
|
$ |
51,156 |
|
|
$ |
51,250 |
|
|
Property operating expenses |
|
$ |
20,138 |
|
|
$ |
22,129 |
|
|
$ |
20,974 |
|
|
$ |
19,737 |
|
|
$ |
19,064 |
|
|
Net operating income |
|
$ |
33,785 |
|
|
$ |
31,872 |
|
|
$ |
31,113 |
|
|
$ |
31,419 |
|
|
$ |
32,186 |
|
|
NOI margin |
|
|
62.7 |
% |
|
|
59.0 |
% |
|
|
59.7 |
% |
|
|
61.4 |
% |
|
|
62.8 |
% |
|
Adjusted EBITDA |
|
$ |
28,534 |
|
|
$ |
27,081 |
|
|
$ |
25,643 |
|
|
$ |
24,081 |
|
|
$ |
27,427 |
|
|
CORE FFO per share |
|
$ |
0.22 |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.20 |
|
|
Dividends per share |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
CORE FFO payout ratio |
|
|
54.5 |
% |
|
|
60.0 |
% |
|
|
63.2 |
% |
|
|
94.7 |
% |
|
|
90.0 |
% |
|
Portfolio Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross assets |
|
$ |
1,962,895 |
|
|
$ |
1,914,900 |
|
|
$ |
1,916,424 |
|
|
$ |
1,949,494 |
|
|
$ |
1,841,738 |
|
|
Total number of properties |
|
56 |
|
|
|
58 |
|
|
|
58 |
|
|
|
58 |
|
|
|
57 |
|
|
|
Total units |
|
|
15,667 |
|
|
|
15,805 |
|
|
|
15,805 |
|
|
|
15,805 |
|
|
|
15,554 |
|
|
Period end occupancy |
|
|
95.3 |
% |
|
|
94.4 |
% |
|
|
93.5 |
% |
|
|
92.7 |
% |
|
|
92.5 |
% |
|
Total portfolio average occupancy |
|
|
95.0 |
% |
|
|
94.1 |
% |
|
|
92.9 |
% |
|
|
92.5 |
% |
|
|
92.5 |
% |
|
Total portfolio average effective monthly rent, per unit |
|
$ |
1,136 |
|
|
$ |
1,118 |
|
|
$ |
1,108 |
|
|
$ |
1,100 |
|
|
$ |
1,088 |
|
|
Same store period end occupancy (a) |
|
|
95.3 |
% |
|
|
94.3 |
% |
|
|
93.4 |
% |
|
|
93.1 |
% |
|
|
92.6 |
% |
|
Same store portfolio average occupancy (a) |
|
|
94.9 |
% |
|
|
94.0 |
% |
|
|
93.1 |
% |
|
|
92.8 |
% |
|
|
92.4 |
% |
|
Same store portfolio average effective monthly rent, per unit (a) |
|
$ |
1,117 |
|
|
$ |
1,106 |
|
|
$ |
1,103 |
|
|
$ |
1,094 |
|
|
$ |
1,089 |
|
|
Capitalization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
$ |
945,686 |
|
|
$ |
1,004,237 |
|
|
$ |
1,008,911 |
|
|
$ |
1,049,541 |
|
|
$ |
985,572 |
|
|
Common share price, period end |
|
$ |
13.43 |
|
|
$ |
11.59 |
|
|
$ |
11.45 |
|
|
$ |
8.94 |
|
|
$ |
14.08 |
|
|
Market equity capitalization |
|
$ |
1,376,283 |
|
|
$ |
1,107,144 |
|
|
$ |
1,093,822 |
|
|
$ |
853,600 |
|
|
$ |
1,294,545 |
|
|
Total market capitalization |
|
$ |
2,321,969 |
|
|
$ |
2,111,381 |
|
|
$ |
2,102,733 |
|
|
$ |
1,903,141 |
|
|
$ |
2,280,117 |
|
|
Total debt/total gross assets |
|
|
48.2 |
% |
|
|
52.4 |
% |
|
|
52.6 |
% |
|
|
53.8 |
% |
|
|
53.5 |
% |
|
Net debt to Adjusted EBITDA (pro forma) (b) |
|
|
8.2 |
x |
|
9.1 |
x |
|
9.2 |
x |
|
|
9.0 |
x |
|
|
8.9 |
x |
|
||
Interest coverage |
|
|
3.2 |
x |
|
|
3.0 |
x |
|
|
2.8 |
x |
|
|
2.5 |
x |
|
|
2.8 |
x |
|
Common shares and OP Units: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
101,803,762 |
|
|
|
94,823,806 |
|
|
|
94,741,146 |
|
|
|
94,691,806 |
|
|
|
91,070,637 |
|
|
OP units outstanding |
|
|
674,517 |
|
|
|
701,986 |
|
|
|
789,134 |
|
|
|
789,134 |
|
|
|
871,491 |
|
|
Common shares and OP units outstanding |
|
|
102,478,278 |
|
|
|
95,525,792 |
|
|
|
95,530,279 |
|
|
|
95,480,939 |
|
|
|
91,942,128 |
|
|
Weighted average common shares and units |
|
|
95,529,788 |
|
|
|
95,227,176 |
|
|
|
95,224,855 |
|
|
|
91,737,113 |
|
|
|
91,526,726 |
|
|
(a) |
Same store portfolio consists of 51 properties, which represent 14,189 units. |
|
(b) |
Reflects pro forma net debt to Adjusted EBITDA for each period presented, which includes adjustments for the timing of acquisitions, the full quarter effect of current value add initiatives, the completion of capital recycling activities including paydown of associated indebtedness, and the normalization of items impacting quarterly EBITDA. Actual net debt to Adjusted EBITDA for the five quarters ended December 31, 2020 was 8.3x, 9.3x, 9.7x, 10.3x, and 8.9x, respectively. |
Schedule II Independence Realty Trust, Inc. Reconciliation of Net Income (loss) to Funds From Operations and Core Funds From Operations (Dollars in thousands, except share and per share amounts) (unaudited) |
||||||||||||||||
|
|
For the Three Months Ended December 31, |
|
|
For the Twelve Months Ended December 31, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Funds From Operations (FFO): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) |
|
$ |
13,360 |
|
|
$ |
24,020 |
|
|
$ |
14,877 |
|
|
$ |
46,354 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
15,316 |
|
|
|
14,175 |
|
|
|
60,352 |
|
|
|
52,482 |
|
Loss on impairment (gain on sale) of real estate assets, net, excluding debt extinguishment costs |
|
|
(9,394 |
) |
|
|
(22,862 |
) |
|
|
(7,554 |
) |
|
|
(42,628 |
) |
Funds From Operations |
|
$ |
19,282 |
|
|
$ |
15,333 |
|
|
$ |
67,675 |
|
|
$ |
56,208 |
|
FFO per share |
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.72 |
|
|
$ |
0.62 |
|
Core Funds From Operations (CFFO): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations |
|
$ |
19,282 |
|
|
$ |
15,333 |
|
|
$ |
67,675 |
|
|
$ |
56,208 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense (a) |
|
|
803 |
|
|
|
717 |
|
|
|
5,564 |
|
|
|
3,116 |
|
Amortization of deferred financing costs |
|
|
363 |
|
|
|
370 |
|
|
|
1,448 |
|
|
|
1,423 |
|
Other depreciation and amortization |
|
|
80 |
|
|
|
38 |
|
|
|
335 |
|
|
|
333 |
|
Abandoned deal costs |
|
|
— |
|
|
|
— |
|
|
|
130 |
|
|
|
— |
|
Casualty losses |
|
|
300 |
|
|
|
— |
|
|
|
711 |
|
|
|
— |
|
Debt extinguishment costs included in net gains (losses) on sale of assets |
|
|
— |
|
|
|
2,184 |
|
|
|
— |
|
|
|
7,417 |
|
Core Funds From Operations |
|
$ |
20,828 |
|
|
$ |
18,642 |
|
|
$ |
75,863 |
|
|
$ |
68,497 |
|
CFFO per share |
|
$ |
0.22 |
|
|
$ |
0.20 |
|
|
$ |
0.80 |
|
|
$ |
0.76 |
|
Weighted-average shares and units outstanding |
|
|
95,529,788 |
|
|
|
91,526,726 |
|
|
|
94,430,935 |
|
|
|
87,870,135 |
|
(a) |
Included in the year ended December 31, 2020 is |
Schedule III Independence Realty Trust, Inc. Reconciliation of Same-Store Net Operating Income to Net Income (loss) (Dollars in thousands) (unaudited) |
||||||||||||||||||||
|
|
For the Three-Months Ended (a) |
|
|||||||||||||||||
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
Reconciliation of same-store net operating income to net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store net operating income |
|
$ |
30,170 |
|
|
$ |
28,171 |
|
|
$ |
28,091 |
|
|
$ |
28,581 |
|
|
$ |
28,909 |
|
Non same-store net operating income |
|
|
3,615 |
|
|
|
3,701 |
|
|
|
3,022 |
|
|
|
2,838 |
|
|
|
3,277 |
|
Other revenue |
|
|
165 |
|
|
|
199 |
|
|
|
181 |
|
|
|
194 |
|
|
|
178 |
|
Property management expenses |
|
|
(2,183 |
) |
|
|
(2,078 |
) |
|
|
(2,077 |
) |
|
|
(2,156 |
) |
|
|
(1,950 |
) |
General and administrative expenses |
|
|
(3,233 |
) |
|
|
(2,912 |
) |
|
|
(3,574 |
) |
|
|
(5,376 |
) |
|
|
(2,987 |
) |
Depreciation and amortization expense |
|
|
(15,396 |
) |
|
|
(15,232 |
) |
|
|
(15,231 |
) |
|
|
(14,828 |
) |
|
|
(14,213 |
) |
Interest expense |
|
|
(8,872 |
) |
|
|
(8,917 |
) |
|
|
(9,202 |
) |
|
|
(9,497 |
) |
|
|
(9,873 |
) |
Abandoned deal costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(130 |
) |
|
|
— |
|
Casualty losses |
|
|
(300 |
) |
|
|
— |
|
|
|
(411 |
) |
|
|
— |
|
|
|
— |
|
Gain on sale (loss on impairment) of real estate assets, net |
|
|
9,394 |
|
|
|
(1,840 |
) |
|
|
— |
|
|
|
— |
|
|
|
20,679 |
|
Net income (loss) |
|
$ |
13,360 |
|
|
$ |
1,092 |
|
|
$ |
799 |
|
|
$ |
(374 |
) |
|
$ |
24,020 |
|
(a) |
Same store portfolio includes 51 properties, which represent 14,189 units. |
Schedule IV Independence Realty Trust, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA And Interest Coverage Ratio (Dollars in thousands) (unaudited) |
|||||||||||||||||||||
|
|
Three Months Ended |
|
|
|||||||||||||||||
ADJUSTED EBITDA: |
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|
|||||
Net income (loss) |
|
$ |
13,360 |
|
|
$ |
1,092 |
|
|
$ |
799 |
|
|
$ |
(374 |
) |
|
$ |
24,020 |
|
|
Add-Back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
15,396 |
|
|
|
15,232 |
|
|
|
15,231 |
|
|
|
14,828 |
|
|
|
14,213 |
|
|
Interest expense |
|
|
8,872 |
|
|
|
8,917 |
|
|
|
9,202 |
|
|
|
9,497 |
|
|
|
9,873 |
|
|
Net loss on impairment (gain on sale) of real estate assets |
|
|
(9,394 |
) |
|
|
1,840 |
|
|
|
— |
|
|
|
— |
|
|
|
(20,679 |
) |
|
Abandoned deal costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
130 |
|
|
|
— |
|
|
Casualty losses |
|
|
300 |
|
|
|
— |
|
|
|
411 |
|
|
|
— |
|
|
|
— |
|
|
Adjusted EBITDA |
|
$ |
28,534 |
|
|
$ |
27,081 |
|
|
$ |
25,643 |
|
|
$ |
24,081 |
|
|
$ |
27,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST COST: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
8,872 |
|
|
$ |
8,917 |
|
|
$ |
9,202 |
|
|
$ |
9,497 |
|
|
$ |
9,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST COVERAGE: |
|
|
3.2 |
x |
|
|
3.0 |
x |
|
|
2.8 |
x |
|
|
2.5 |
x |
|
|
2.8 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, |
|
|
For the Year Ended December 31, |
|
||||||||||
ADJUSTED EBITDA: |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income (loss) |
|
$ |
13,360 |
|
|
$ |
24,020 |
|
|
$ |
14,877 |
|
|
$ |
46,354 |
|
Add-Back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
15,396 |
|
|
|
14,213 |
|
|
|
60,687 |
|
|
|
52,815 |
|
Interest expense |
|
|
8,872 |
|
|
|
9,873 |
|
|
|
36,488 |
|
|
|
39,226 |
|
Net loss on impairment (gain on sale) of real estate assets |
|
|
(9,394 |
) |
|
|
(20,679 |
) |
|
|
(7,554 |
) |
|
|
(35,211 |
) |
Abandoned deal costs |
|
|
— |
|
|
|
— |
|
|
|
130 |
|
|
|
— |
|
Casualty losses |
|
|
300 |
|
|
|
— |
|
|
|
711 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
28,534 |
|
|
$ |
27,427 |
|
|
$ |
105,339 |
|
|
$ |
103,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST COST: |
||||||||||||||||
FAQ
What were Independence Realty Trust (IRT) Q4 2020 earnings?
How did IRT perform financially in 2020?
What is IRT's guidance for 2021 EPS?
