Independence Realty Trust (IRT) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Portfolio positioning and market outlook

• Positioned at the start of a favorable multi-year cycle, with strong population and job growth in target markets and a sharp decline in new supply, supporting sustained rent growth and higher multiples ahead.

• Recent acquisitions have been accretive, with new construction assets purchased at attractive cap rates and minimal lease-up risk, expected to drive outsized growth in subsequent years.

• Management expects a multi-year period of low new supply, with rent growth projected to accelerate from 2026 onward as supply constraints persist.

• Sunbelt markets, especially Central Florida and Tampa, are expected to rebound in 2025, while other high-supply markets like Charlotte and Huntsville may see stronger growth in 2026.

• Migration and demand trends remain robust, with continued inflows from out-of-state residents fueling job and population growth.

Capital allocation and growth strategy

• $156 million in equity from a recent raise is being deployed accretively, with further acquisitions planned for the first half of 2025.

• Value-add renovation program delivers high teens unlevered returns and is prioritized as the best use of capital, targeting 2,500–3,000 units annually to balance ROI and operational disruption.

• Non-recurring, revenue-enhancing CapEx initiatives, such as smart home technology and property Wi-Fi, are generating strong returns, with Wi-Fi rollout expected to contribute meaningfully in 2025.

• Joint venture investments in new construction have been successful, but direct development is deferred until the balance sheet is larger.

Operational efficiency and expense management

• Operating model is highly efficient, with one of the lowest employee-to-unit ratios among peers, supporting scalable growth with minimal G&A increases.

• New pricing system (REBA) leverages lease velocity and retention forecasting to optimize rent and occupancy, shifting focus from occupancy stabilization in 2024 to rent growth in 2025.

• Bad debt is trending down, with improved verification tools expected to further reduce delinquency rates by year-end.

• Non-controllable expenses are managed with property taxes projected to rise 3.7% and insurance costs expected to decrease, benefiting from prior savings.