Independence Realty Trust, Inc. Q1 FY2026 earnings call

• First quarter results in line with expectations, solid start to year. - Reinforces themes of portfolio stability, improving market fundamentals, and disciplined capital allocation. - Same-store revenue and NOI increased, asking rents up, new deliveries in markets decreasing. - Job growth, population growth, and household formation in markets forecast to outpace national average. - Value-add renovations continue to be attractive investment opportunity, completed 426 units in quarter. - Progress on assets held for sale and joint venture marketed for sale. - Repurchased 1.8 million shares at $30 million in quarter. - Property Wi-Fi initiative installing across 19,000 units, slightly ahead of schedule. - Investment grade balance sheet strong with no debt maturities until 2028, net debt to adjusted EBITDA 6.5 times.

Same-store revenue and NOI increased with stable year-over-year occupancy and a 40 basis point increase in effective rents. Average occupancy was 95.2%, resident retention 60.5% remained high. Same-store revenues grew 1.4% year-over-year supported by stable occupancy, higher average rental rates, growth in other income, and lower bad debt. Same-store expense growth 2% with lower property insurance and repairs and maintenance partially offsetting higher personnel and utility costs. First quarter completed 426 value-add renovation units generating an average unlevered return of 15.4%.

• Affirming four-year core FFO per share range of $1.12 to $1.16. - Full-year assumption of completing 2,000 to 2,500 value-add units in 2026. - Expect leverage to trend lower toward mid-fives over the year. - Proceeds from asset sales to be used to reduce leverage, further reduce leverage organically through EBITDA growth.

Q: Scott, you highlighted prioritizing lease rate growth over occupancy. Wondering if change in strategy or consistent with initial guidance, and on renewals.

A: Consistent with original guidance, plan in place end last year as new supply subsided. April and May renewals in low 4% range, June and July possibly ahead.

Q: Eric Wolf asked about asking rent growth, context of seasonality and supply impact.

A: 2.8% asking rent growth a bit ahead of typical seasonal pattern, concessions expected to wane.

Q: Jamie Feldman asked about blended rent growth across key markets.

A: Trajectory aligned with expectations, markets generally in line, some markets like Atlanta, Raleigh, Nashville showing positive momentum, others like Denver, Austin supply-driven, Orlando, Tampa, Houston some softness.

Q: Brad Heffern asked about Atlanta's positive momentum with lowest asking rent change.

A: Atlanta had big asking rent growth in 2025 third quarter, first quarter blended rent growth double fourth quarter, concession side seeing decrease in sub-market areas.

Q: Amy Probet asked about winter storms impact on blended rent growth.

A: Winter storms caused slowness in demand in Jan and Feb, but Q1 demand exceeded expectations.

Q: John Kim asked about value add performance vs non-value add.

A: Value add portfolio has lower occupancy due to longer turn time, but generated higher NOI growth in first quarter, still bullish on it.

Q: Jason Wayne asked about capital allocation and value add completions.

A: Capital allocation to analyze portfolio for recycling, stock price helps determine best use, 426 units completed in first quarter in line with 2,000-2,500 goal for year.

Q: Mason Grove asked about development leases performance.

A: Arista fully occupied, Flatirons in lease up process, Tisdale at Lakeline Station in Austin leased up, aiming for mid-year for two consolidated health or self properties.