Analyst John Kim of BMO Capital maintained a Hold rating on Independence Realty, with a price target of $20.00.
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John Kim has given his Hold rating due to a combination of factors influencing Independence Realty’s performance. Despite missing consensus expectations for Core FFOps in the third quarter of 2025, the results were considered relatively positive. The company maintained its 2025 Core FFOps guidance and same-store revenue projections, which were supported by lower interest expenses and improved bad debt. Additionally, the resident retention rate saw an improvement, and leverage slightly decreased, although it remains higher than industry peers.
However, there are concerns that temper the outlook. The blended rates decelerated, and the company’s assumptions for the fourth quarter appear aggressive given the seasonal trends. Furthermore, the acquisition guidance was significantly reduced, suggesting no further acquisitions in the near term. The projected return on investment for ongoing value-add projects also saw a decline, impacting the overall return on investment. These mixed signals contribute to the Hold rating, as the positives are balanced by the challenges faced by the company.
According to TipRanks, Kim is an analyst with an average return of -0.5% and a 46.57% success rate. Kim covers the Real Estate sector, focusing on stocks such as Plymouth Industrial Reit, Alexandria Equities, and BXP.