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Independence Realty (5O2) Q3 2026 Earnings Report

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DE:5O2 Q3 2026 EPS Results

Actual EPS
EUR 0.10
Consensus EPS
EUR 0.04
Beat/Miss
Beat by +EUR 0.06
One Year Ago EPS
EUR 0.03

DE:5O2 Q3 2026 Revenue Results

Actual Revenue
EUR 155.57M
Expected Revenue
EUR 154.96M
Beat/Miss
Beat by +EUR 616.48K
YoY Revenue Growth
+2.97%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/02/2026
Time
After Close
Conference Call
Monday, November 2, 2026
DE:5O2 Upcoming Earnings

Independence Realty's next earnings date is estimated for February 17, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DE:5O2 Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 02, 2026|% Change Since:-13.39%|
Earnings Call Sentiment|Positive

The call was predominantly positive. IRT met quarterly expectations, reaffirmed 2026 guidance, reported improving leasing spreads and retention, highlighted strong value-add returns and Wi-Fi growth, and described the Centerspace merger as accretive with substantial synergy and scale opportunities. The main challenges were still-negative overall new lease trade-outs, supply-related concessions in selected markets, Colorado pressure within Centerspace, higher operating expenses and leverage remaining above the company's longer-term target.

Company Guidance

IRT reaffirmed its core FFO per share range of $1.13 to $1.15 for 2026, with EPS and FFO per share guidance reflecting merger-related costs incurred to date, while same-store revenue and NOI growth ranges were narrowed around unchanged midpoints; acquisition guidance is $266 million, with no additional acquisitions forecast this year, and the company remains on track to complete 2,200 renovations for the year. For 2027, IRT expects the Centerspace transaction to be approximately 5% accretive to core FFO per share on a leverage-neutral basis, with $24 million of identified synergies, plans to expand Wi-Fi to at least another 7,000 units, expects to increase renovation volume, and will provide full year 2027 guidance with fourth quarter results in February 2027; management also expects $140 million of dispositions to close in the first quarter of next year, aims to build occupancy 30, 40 basis points into the end of the year, and sees a path towards low 5 net debt to EBITDA in the next kind of 12 to 18 months.

  • Quarterly Results Met ExpectationsCore FFO per share was $0.29 and same-store NOI growth was 1.6%, both in line with expectations. IRT reaffirmed the midpoint of full-year guidance for both metrics.
  • Improved Leasing PerformanceNew lease trade-outs on like-term leases improved by 210 basis points sequentially and 310 basis points year-over-year. Blended rents on like-term leases grew 2.8%, the company's best result in 5 quarters.
  • Higher Renewal Rents and Resident RetentionRenewal rents improved 200 basis points year-over-year, while renewal spreads on like-term leases were 4.6%, up 50 basis points from the second quarter and 200 basis points year-over-year. Resident retention increased 240 basis points sequentially to 60.5%.
  • Stable Occupancy and Stronger Leasing DemandAverage and stabilized occupancy were 95%, flat sequentially. Lead volume increased 11% year-over-year, and management said the volume was converting well.
  • Reduced Concession UsageAsking rents held firm, were up approximately 3% since the start of the year, and concession use on new leases was cut nearly in half from second-quarter levels during the peak leasing season.
  • Same-Store Revenue Growth and Wi-Fi ContributionSame-store revenue increased 2%, including a 60 basis point increase in average effective monthly rents and a 16% increase in other property revenue. Wi-Fi revenue contributed $2.3 million, and bad debt remained stable at approximately 90 basis points.
  • Broad-Based Market RecoveryNew lease spreads on like-term leases improved in 9 of IRT's 10 largest markets. Atlanta, Oklahoma City, Raleigh-Durham and Columbus reported positive new lease spreads, while Denver reached breakeven.
  • Atlanta and Other Markets Showed MomentumAtlanta's blended rent trade-out increased 50 basis points year-over-year, new lease trade-outs were positive for the first time in 2 years, and average occupancy increased year-over-year. Nashville also showed positive lease trade-out improvement, and Dallas had positive trade of 110 basis points year-over-year.
  • Favorable Supply and Demand FundamentalsNew deliveries in IRT's markets have fallen by more than half since peaking in 2024 to about 2.5% of inventory this year, with CoStar projecting a further decline in 2027. Management said demand continues to outpace national averages and absorption remains strong.
  • Rental Demand Supported by Affordability and MigrationManagement said sticky inflation and higher interest rates continue to favor renting over homeownership, while migration toward IRT's non-gateway markets is being supported by employment opportunities, quality of life and affordability.
  • Community Wi-Fi Rollout Completed Ahead of PlanIRT completed its initial community Wi-Fi rollout ahead of plan. The program is expected to contribute a full year of revenue and NOI to 2027 results, and IRT plans to expand it to at least another 7,000 units in 2027, consisting of 4,000 IRT units and 3,000 Centerspace units.
  • Value-Add Renovation Program Delivered Strong ReturnsDuring the first 9 months, IRT completed 1,707 unit renovations according to the CFO and nearly 1,800 according to the CEO, at an average unlevered return on investment of approximately 15%. The company remains on track to complete 2,200 renovations for the year and expects to increase renovation volume in 2027.
  • Faster Unit Turn TimesAverage unit turn time was reduced from approximately 25 days to 17 days. Management said the shorter turn time allows IRT to complete more renovations without meaningfully impacting occupancy.
  • Mustang Acquisition Expanded the PortfolioSubsequent to quarter end, IRT acquired its joint venture partner's interest in Mustang, a 275-unit newly constructed community in the Las Colinas submarket of Dallas, and began consolidating it on the balance sheet. The property has an expected stabilized economic cap rate of about 5.9%.
  • Improved Mustang Financing EconomicsIRT borrowed $79 million on its line of credit to repay the in-place construction loan. The construction loan bore interest at SOFR plus 275 basis points, compared with SOFR plus 77 basis points on IRT's line of credit.
  • Capital Recycling and Acquisition GuidanceIRT sold a Memphis property for $55.8 million in September and used the proceeds to delever the balance sheet ahead of the Mustang closing. Updated acquisition guidance is $266 million, and the company does not forecast additional acquisitions this year other than the pending Centerspace merger.
  • Balance Sheet FlexibilityNet debt to annualized adjusted EBITDA was 6.2x as of September 30, down from 6.5x in the prior quarter. IRT had approximately $492 million of liquidity, 86.5% of debt was fixed or hedged at a weighted average effective interest rate of 4.3%, and there are no significant debt maturities until 2028.
  • Centerspace Merger Expected to Be AccretiveManagement expects the pending Centerspace transaction to be approximately 5% accretive to 2027 core FFO per share on a leverage-neutral basis and accretive to day 1 NAV. The transaction includes $24 million of identified synergies and is expected to provide additional value-add and community Wi-Fi opportunities.
  • Centerspace Merger Adds Scale and Portfolio OpportunitiesThe merger would add 10,500 units, increase IRT's unit count by more than 30% to approximately 44,400 apartment homes, add approximately 3,200 units suitable for the value-add program and add 10,000 units to the community Wi-Fi program.
  • Centerspace Transaction Valuation and Ratings SupportAfter accounting for synergies and one-time costs, IRT said it is acquiring Centerspace at a 7.3% nominal cap rate, at a meaningful discount to net asset value and at a price per door well below replacement cost. Fitch and S&P reaffirmed IRT's investment-grade ratings, and multiple independent proxy advisory firms recommended that stockholders vote in favor of the merger.
  • Merger Integration Progressing as PlannedThe integration process is on schedule. Lender consents for assuming approximately $500 million of Centerspace secured debt at an average interest rate of approximately 3.5% are progressing as planned, go-forward and transition teams have been identified, and technology integration is ready to launch shortly after closing.
  • Merger-Leverage-Neutral Dispositions ProgressingThe $140 million of dispositions identified to keep the Centerspace merger leverage neutral are progressing and are expected to close in the first quarter of next year.
  • 2026 Guidance ReaffirmedIRT reaffirmed core FFO per share guidance of $1.13 to $1.15, narrowed its same-store revenue and NOI growth ranges around unchanged midpoints, and said it remains on track to deliver full-year 2026 guidance.
  • Positive 2027 Earnings SetupManagement said favorable market tailwinds, the completed Wi-Fi rollout, higher expected renovation volume, improving leasing fundamentals and the pending Centerspace merger position IRT for meaningful earnings growth in 2027.
  • Bad Debt Trends ImprovedManagement reported no increases in bad debt across markets from the first quarter through the third quarter, with bad debt moving down across markets. Atlanta's bad debt was 1.4% in the third quarter, compared with management's recollection of approximately 5% several years ago.

DE:5O2 Earnings History

DE:5O2 earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 17, 20272026 (Q4)0.08-0.13――
Nov 02, 20262026 (Q3)0.040.100.03266.67% (+0.07)
Aug 03, 20262026 (Q2)0.020.010.03-66.67% (-0.02)
Apr 29, 20262026 (Q1)0.020.000.04-100.00% (-0.04)
Feb 11, 20262025 (Q4)0.080.130―
Oct 30, 20252025 (Q3)0.070.030.05-40.00% (-0.02)
Jul 31, 20252025 (Q2)0.040.030.05-40.00% (-0.02)
Apr 30, 20252025 (Q1)0.030.040.07-50.00% (-0.04)
Feb 12, 20252024 (Q4)0.060.00-0.16100.00% (+0.16)
Oct 30, 20242024 (Q3)0.080.050.02150.00% (+0.03)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed