Independence Realty (IRT) AI Stock Analysis

• Market Cap: $3.63B
• Dividend Yield: 4.18%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 130.8
• Beta (1Y): 0.80
• Revenue Growth: -1.54%
• EPS Growth: N/A
• Country: US
• Employees: 917
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.03
• Shares Outstanding: 233,817,110
• 10 Day Avg. Volume: 2,195,984
• 30 Day Avg. Volume: 2,675,652
• PEG Ratio: -0.35
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 52.66
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 10.06
• Enterprise Value/Gross Profit: 17.09
• Enterprise Value/Ebitda: 19.22
• 1Y Price Target: $20.95
• Price Target Upside: 38.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 55 Neutral
• Price Target: $15.50 ▲(2.51% Upside)

The overall stock score of 55 reflects a mixed outlook for Independence Realty. The most significant factor is the strong revenue growth, but this is offset by declining profitability and cash flow challenges. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation. The earnings call provides some optimism with strategic initiatives and operational efficiencies, but challenges in rent growth and market conditions remain.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability and shareholder value.

Operational Efficiency

Improved operational efficiency through cost management supports sustainable profitability and enhances competitive positioning in the market.

Strategic Acquisitions

Strategic acquisitions expand the portfolio, providing growth opportunities and enhancing market presence, contributing to long-term success.

Negative Factors

Profitability Challenges

Declining profit margins indicate challenges in cost management and pricing power, potentially impacting long-term financial health.

Cash Flow Concerns

Weak cash flow generation can limit investment capacity and financial flexibility, posing risks to ongoing operations and growth initiatives.

Market Supply Pressures

Supply pressures can lead to reduced rental income and occupancy rates, challenging revenue growth and profitability in key markets.

Independence Realty Business Overview & Revenue Model

Company Description

Independence Realty (IRT) is a prominent real estate investment trust (REIT) specializing in the acquisition, development, and management of multifamily residential properties across the United States. The company focuses on providing quality housing options in key metropolitan areas, striving to enhance the living experience for its residents while delivering value to its investors. IRT's portfolio includes a diverse range of properties, emphasizing sustainable practices and community engagement.

How the Company Makes Money

Independence Realty generates revenue primarily through rental income from its multifamily residential properties. As a REIT, it is required to distribute at least 90% of its taxable income to shareholders in the form of dividends, which incentivizes the company to maintain high occupancy rates and optimize property management. Additionally, IRT may earn revenue from property management fees, leasing commissions, and ancillary services offered to tenants. Significant partnerships with local developers and property management firms also contribute to its earnings, allowing IRT to expand its portfolio and enhance operational efficiencies.

Independence Realty Financial Statement Overview

Summary

Independence Realty demonstrates strong revenue growth and stable gross margins, indicating effective revenue management. However, declining net profit margins and return on equity suggest challenges in maintaining profitability. The balance sheet shows improved leverage ratios, but cash flow generation has weakened, posing risks to financial flexibility.

Income Statement

Independence Realty shows a strong revenue growth trajectory, particularly in the TTM period with a 59.1% increase, indicating robust expansion. However, the net profit margin has decreased to 4.31% in the TTM, down from 6.14% in the previous year, suggesting challenges in maintaining profitability. The gross profit margin remains stable at around 58.8%, reflecting consistent cost management. The EBIT and EBITDA margins have slightly decreased, indicating potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.66 in the TTM from 0.68 in the previous year, indicating better leverage management. However, the return on equity has decreased to 0.81% from 1.14%, reflecting lower profitability relative to shareholder equity. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the balance sheet shows moderate stability with room for improvement in profitability.

Cash Flow

The free cash flow growth rate is negative at -10.77% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is strong at 1.79, suggesting good cash conversion efficiency. However, the free cash flow to net income ratio is moderate at 0.42, indicating some challenges in translating earnings into free cash flow. Overall, the cash flow statement reflects adequate cash management but highlights potential risks in sustaining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	644.53M	640.03M	660.98M	628.52M	250.25M	211.91M
Gross Profit	379.30M	374.52M	167.37M	372.22M	147.46M	120.43M
EBITDA	337.20M	350.28M	291.08M	345.35M	220.88M	105.21M
Net Income	27.76M	39.29M	-17.23M	33.70M	8.19M	-21.59M
Balance Sheet
Total Assets	5.96B	6.06B	6.28B	6.53B	6.51B	1.73B
Cash, Cash Equivalents and Short-Term Investments	42.53M	21.23M	22.85M	16.08M	35.97M	8.75M
Total Debt	2.25B	2.33B	2.43B	4.60B	2.71B	945.69M
Total Liabilities	2.41B	2.48B	2.71B	2.79B	2.86B	1.02B
Stockholders Equity	3.42B	3.44B	3.43B	3.60B	3.48B	708.06M
Cash Flow
Free Cash Flow	116.89M	84.69M	115.54M	165.56M	9.28M	37.56M
Operating Cash Flow	275.29M	259.75M	262.17M	249.54M	52.26M	74.96M
Investing Cash Flow	-293.50M	-20.61M	-1.71M	-135.77M	-216.12M	-124.54M
Financing Cash Flow	13.34M	-246.43M	-253.74M	-135.43M	215.92M	48.76M

Independence Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRT, the sentiment is Negative. The current price of 15.12 is below the 20-day moving average (MA) of 16.14, below the 50-day MA of 16.72, and below the 200-day MA of 18.11, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 24.40 is Positive, neither overbought nor oversold. The STOCH value of 16.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRT.

Independence Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VRE	―	$1.34B	24.15	5.94%	2.17%	3.37%	―
CSR	―	$1.04B	-32.67	-3.35%	5.22%	-0.63%	-123.59%
IRT	―	$3.63B	130.82	0.81%	4.18%	-1.54%	―
AIV	―	$764.32M	-11.06	-38.53%	8.00%	7.07%	69.54%
NXRT	―	$769.37M	-15.77	-12.65%	6.68%	-4.46%	-206.19%

Independence Realty Corporate Events

Independence Realty Reports Q3 2025 Financial Results

In its third quarter 2025 financial results, Independence Realty Trust reported an EPS of $0.03 and a CFFO per share of $0.29, both aligning with expectations. The company achieved a 2.7% growth in same-store net operating income and completed 788 unit renovations with a 14.8% ROI. IRT also acquired two communities in Orlando for $155 million, reflecting its strategy to recycle capital into higher growth investments. The company maintained a strong balance sheet with conservative leverage and reaffirmed its full-year 2025 guidance midpoints.

The most recent analyst rating on (IRT) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.

Independence Realty Releases New Investor Presentation

Independence Realty Trust, Inc. announced that a slide presentation, which may be used in investor presentations, will be available starting September 10, 2025. This information is provided for informational purposes and is not considered filed under the Securities Exchange Act of 1934.

The most recent analyst rating on (IRT) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.

Independence Realty Trust’s Earnings Call Highlights Strategic Moves Amid Revenue Challenges

Independence Realty Trust’s recent earnings call presented a mixed sentiment, balancing effective cost management and strategic acquisitions against challenges in revenue growth and market-specific pressures. The company remains optimistic about future improvements, supported by a robust acquisition pipeline and a favorable supply outlook, although current market conditions have led to downward revisions in revenue expectations.

Independence Realty Trust Reports Steady Q2 2025 Results

Independence Realty Trust, Inc. (IRT) is a real estate investment trust that focuses on owning and operating multifamily apartment communities across non-gateway U.S. markets, with a strategy centered on gaining scale near major employment centers. In its second quarter of 2025 financial results, IRT reported an earnings per share (EPS) of $0.03 and core funds from operations (CFFO) per share of $0.28, both aligning with expectations. The company experienced a 2.0% increase in same-store net operating income (NOI), supported by stable occupancy and rental rate growth, while operating expenses declined by 0.6% due to operating efficiencies and favorable insurance renewals. IRT completed 454 unit renovations under its value-add program, achieving a 16.2% return on investment. The company is evaluating a robust pipeline of future acquisitions, including two communities in Orlando, Florida, under contract for acquisition in the third quarter of 2025. IRT’s balance sheet remains strong with conservative leverage and ample liquidity to support growth. Looking forward, IRT’s management remains optimistic about capital deployment opportunities and is increasing the midpoint of its same-store NOI growth guidance for the full year 2025.

Independence Realty Reports Q2 2025 Financial Results

Independence Realty Trust announced its financial results for the second quarter of 2025, reporting an EPS of $0.03 and CFFO per share of $0.28, both aligning with expectations. The company achieved a 2.0% increase in same-store portfolio NOI, supported by stable occupancy and rental rate growth, while operating expenses declined by 0.6% due to operational efficiencies and favorable insurance renewals. IRT completed 454 renovations in its value-add program, achieving an average ROI of 16.2%. The company is evaluating future acquisitions, with two communities in Orlando under contract for Q3 2025, and has identified three properties for disposition in the second half of the year. Despite a slight decrease in net income compared to the previous year, IRT maintains a strong balance sheet with conservative leverage and ample liquidity to support growth.

The most recent analyst rating on (IRT) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Independence Realty stock, see the IRT Stock Forecast page.