8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________________

FORM 8-K

_____________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 14, 2024

_____________________________________________

Independence Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________

Maryland	001-36041	26-4567130
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1835 Market Street, Suite 2601

Philadelphia, Pennsylvania, 19103

(Address of Principal Executive Office) (Zip Code)

(267) 270-4800

(Registrant’s telephone number, including area code)

N/A

Former name or former address, if changed since last report

_____________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	IRT	NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02    Results of Operations and Financial Condition.

On February 14, 2024, we issued a press release announcing our financial results for the three and twelve months ended December 31, 2023. Additionally, we are furnishing certain supplemental information with this Current Report. Copies of such press release and such supplemental information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report and are incorporated by reference into this Item 2.02. The information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 7.01    Regulation FD Disclosure.

The information provided in Item 2.02 above is incorporated by reference into this Item 7.01. The information incorporated by reference into this this Item 7.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information incorporated by reference into this Item 7.01 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 9.01    Financial Statements and Exhibits.

(d)Exhibits.

99.1	Press Release
99.2	Supplemental Information
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Independence Realty Trust, Inc.
February 14, 2024	By:	/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

Independence Realty Trust Announces Fourth Quarter and Full Year 2023 Financial Results

Introduces Full Year 2024 Guidance

PHILADELPHIA – (BUSINESS WIRE) – February 14, 2024 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its fourth quarter and full year 2023 financial results and provided its full year 2024 guidance.

Fourth Quarter Highlights

•Net loss available to common shares of $40.5million for the quarter ended December 31, 2023 compared to net income available to common shares of $33.6 million for the quarter ended December 31, 2022.

•Loss per diluted share of $0.18 for the quarter ended December 31, 2023 compared to earnings per diluted share of $0.15 for the quarter ended December 31, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 3.3% for the quarter ended December 31, 2023 compared to the quarter ended December 31, 2022.

•Core Funds from Operations (“CFFO”) of $68.7million for the quarter ended December 31, 2023 compared to $66.8 million for the quarter ended December 31, 2022. CFFO per share was $0.30 for the fourth quarter of 2023, as compared to $0.29 for the fourth quarter of 2022.

•Adjusted EBITDA of $95.6 million for the quarter ended December 31, 2023 compared to $93.0 million for the quarter ended December 31, 2022.

•Value add program completed renovations at 486 units during the quarter ended December 31, 2023, achieving a weighted average return on investment during the quarter of 17.1%.

Full Year Highlights

•Net loss available to common shares of $17.2million for the year ended December 31, 2023 compared to net income available to common shares of $117.2 million for the year ended December 31, 2022.

•Loss per diluted share of $0.08 for the year ended December 31, 2023 compared to earnings per diluted share of $0.53 for the year ended December 31, 2022.

•Same-store portfolio NOI growth of 5.7% for the year ended December 31, 2023 compared to the year ended December 31, 2022.

•CFFO of $263.9million for the year ended December 31, 2023 compared to $247.4 million for the year ended December 31, 2022. CFFO per share was $1.15 for the year ended December 31, 2023, as compared to $1.08 for the year ended December 31, 2022.

•Adjusted EBITDA of $366.8 million for the year ended December 31, 2023 compared to $346.9 million for the year ended December 31, 2022.

•Value add program completed renovations at 2,455 units during the year ended December 31, 2023, achieving a weighted average return on investment during the year of 16.1%.

2024 Guidance Highlights

•Earnings per diluted share of $0.42 at the mid-point of our guidance range.

•CFFO per share of $1.14 at the mid-point of our guidance range.

•2024 same-store NOI growth of 2.5% at the mid-point of our guidance range.

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Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP, as well as, discussion of our same-store methodology.

Management Commentary

“For full year 2023, we delivered growth of 5.7% in same-store NOI and 6.5% in CFFO per share as we remained focused on driving occupancy and delivering our planned value add improvements,” said Scott Schaeffer, Chairman and CEO of IRT. “In fourth quarter 2023 and first quarter 2024-to-date, we have made notable progress advancing our Portfolio Optimization and Deleveraging Strategy, selling six non-core assets, which strengthenedour balance sheet. As we look out to full year 2024, we will continue to take decisive action to drive value, prioritize higher resident retention and lower unit vacancies. We also plan to fully execute our Portfolio Optimization and Deleveraging Strategy, thereby increasing our financial flexibility and decreasing our leverage.”

Same-Store Portfolio(1) Operating Results

	Fourth Quarter 2023  Compared to  Fourth Quarter 2022	Full Year 2023 Compared to Full Year 2022
Rental and other property revenue	3.7% increase	5.7% increase
Property operating expenses	4.5% increase	5.6% increase
NOI	3.3% increase	5.7% increase
Portfolio average occupancy	70 bps increase to 94.5%	70 bps decrease to 94.0%
Portfolio average rental rate	2.4% increase to $1,551	6.4% increase to $1,537
NOI Margin	30 bps decrease to 64.3%	No change -- 63.0%

(1)Same-store portfolio includes 106 properties, which represent 31,829 units.

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Operating Metrics

The table below summarizes operating metrics for the same-store portfolio for the applicable periods.

	4Q 2023		1Q 2024(3)
Same-Store Portfolio(1)
Average Occupancy	94.5	%	94.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(4.2)	%	(2.0)	%
Renewal Leases	4.8	%	4.5	%
Blended	0.2	%	2.1	%
Resident Retention Rate	51.0	%	52.6	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	94.9	%	94.6	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(4.4)	%	(2.6)	%
Renewal Leases	4.6	%	4.5	%
Blended	0.0	%	1.8	%
Resident Retention Rate	50.7	%	52.1	%
Value Add (21 properties with Ongoing Value Add)
Average Occupancy	93.3	%	93.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(3.4)	%	0.3	%
Renewal Leases	6.0	%	4.4	%
Blended	0.7	%	3.0	%
Resident Retention Rate	52.5	%	54.4	%

(1)Same-store portfolio includes 106 properties, which represent 31,829 units.

(2)Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months.

(3)1Q 2024 average occupancy and resident retention rates are through February 12, 2024. 1Q 2024 new lease and renewal rates are for leases commencing during 1Q 2024 that were signed as of February 12, 2024.

(4)As of February 12, 2024, same-store portfolio occupancy was 94.2%, same-store portfolio excluding ongoing value add occupancy was 94.5%, and value add occupancy was 93.3%.

Portfolio Optimization and Deleveraging Strategy Update

On October 30, 2023, we announced our Portfolio Optimization and Deleveraging Strategy, which targets sales of 10 properties located in seven markets in order to exit or reduce our presence in these markets while also deleveraging our balance sheet. On January 3, 2024, we announced that four properties in four markets were sold in December 2023 for a total gross sales price of $200.7 million and proceeds from the sales were used to repay $196.8 million of debt.

As discussed further below, the six remaining assets that are part of the Portfolio Optimization and Deleveraging Strategy were classified as held for sale as of December 31, 2023. Two of these six assets were sold subsequent to December 31, 2023 and, as of the date of this release, the remaining four assets are under contract, through due diligence, and are expected to close in the first quarter of 2024. Once the sale of all 10 properties are complete, we expect to have generated $525 million in gross sales proceeds, used those proceeds to reduce our outstanding debt by approximately $519 million, reduced our net debt to Adjusted EBITDA ratio by approximately 0.8x with a $0.03 dilutive impact to CFFO, and to have exited five single asset markets.

3

While the four remaining properties that are part of the Portfolio Optimization and Deleveraging Strategy are under contract, there can be no assurance that the sales will be consummated at expected pricing levels, within expected time frames, or at all.

Value Add Program

We completed renovations on 486 units during the quarter ended December 31, 2023, achieving a return on investment of 17.1%, with an average cost per unit renovated of $18,264, and an average monthly rent increase per renovated unit of $260. For the twelve months ended December 31, 2023, we have completed renovations on 2,455 units, achieving a return on investment of 16.1%, with an average cost per unit renovated of $17,208, and an average monthly rent increase per renovated unit of $231. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of December 31, 2023.

In addition, we’ve added several new communities to our value add program and anticipate starting renovations at those communities during the first half of 2024.

Investment Activity

Properties Held for Sale and Dispositions

In connection with our Portfolio Optimization and Deleveraging Strategy, we sold properties during the fourth quarter 2023 and first quarter 2024 as follows.

During the three months ended December 31, 2023, we sold four properties for a combined sales price of $200.7 million and we recognized a net loss on impairment of $34.8 million.

As of December 31, 2023, we had six properties classified as held for sale. We recorded an impairment charge during the three months ended December 31, 2023 related to five of the six properties in the aggregate amount of $33.0 million. We expect to recognize a gain of approximately $25.9 million upon the sale of the sixth property.

Subsequent to December 31, 2023, we sold two properties that had been classified as held for sale for gross sales proceeds of $128 million. The proceeds from all dispositions were used or will be used to reduce indebtedness.

Capital Expenditures

For the three months ended December 31, 2023, recurring capital expenditures for the total portfolio were $3.6 million, or $107 per unit. For the year ended December 31, 2023, recurring capital expenditures for the total portfolio were $19.4 million, or $576 per unit.

Dividend Distribution

On December 11, 2023, our Board of Directors declared a quarterly dividend of $0.16 per share of common stock. The fourth quarter dividend was paid on January 19, 2024 to stockholders of record at the close of business on December 29, 2023.

2024 EPS, FFO and CFFO Guidance

We are introducing 2024 EPS, FFO, and CFFO per share and same-store NOI guidance ranges. Earnings per diluted share is projected to be in the range of $0.40 to $0.44. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for

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management’s definition and rationale for the usefulness of CFFO.

2024 Full Year EPS and CFFO Guidance(1)(2)	Low		High
Earnings per share	$	0.40	$	0.44
Adjustments:
Depreciation and amortization	0.87		0.87
Gain on sale of real estate assets(3)	(0.11)		(0.11)
FFO per share	1.16		1.20
Loan (premium accretion) discount amortization, net	(0.04)		(0.04)
CFFO per share	$	1.12	$	1.16

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2024 EPS, FFO, and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements”. Our guidance is based on the key guidance assumptions detailed below.

(2)Per share guidance is based on 230.9 million weighted average shares and units outstanding.

(3)Gain on sale of real estate assets includes a gain expected to be realized in Q1 2024 related to the sale of one of the properties identified as held for sale as of December 31, 2023.

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2024 Guidance Assumptions

Our key guidance assumptions for 2024 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Same-Store Portfolio	2024 Outlook(1)
Number of properties/units	109 properties / 32,507 units
Property revenue growth	3.0% to 4.5%
Controllable operating expense growth	4.9% to 5.9%
Real estate tax and insurance expense growth	6.1% to 7.1%
Total operating expense growth	5.4% to 6.4%
NOI growth	1.0% to 4.0%
Corporate Expenses
General and administrative & Property management expenses	$51.5 million to $54.5 million
Interest expense(2)	$83.0 million to $85.0 million
Transaction/Investment Volume
Acquisition volume	None
Disposition volume(3)	$324 million
Capital Expenditures
Recurring	$21.0 million to $23.0 million
Value add & non-recurring	$83.0 million to $85.0 million
Development	$54.5 million to $55.5 million

(1)This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” .

(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting we recorded loan premiums, net, that are accreted into and reduce GAAP interest expense over the remaining term of the associated debt. However, loan premium accretion is excluded from CFFO.

(3)Includes $128 million related to the sale of two of the six properties identified as held for sale as of December 31, 2023 and $196 million related to the other four properties, which are under contract and expected to be sold in Q1 2024. We continue to evaluate our portfolio for capital recycling opportunities so actual acquisition and disposition volume could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements”.

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Selected Financial Information

See the schedules at the end of this earnings release for selected financial information for IRT.

Non-GAAP Financial Measures and Definitions

We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same-store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, February 15, 2024 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.888.660.9916, access code 1963990. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website until the next earnings release. A playback of the conference call can also be accessed telephonically until Thursday, February 22, 2024 by dialing 1.800.770.2030, access code 1963990.

Supplemental Information

We produce supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store information and other useful information for investors. The supplemental information is available via our website, www.irtliving.com, through the "Investor Relations" section.

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.

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Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, and certain actions that we expect or seek to take in connection with our Portfolio Optimization and Deleveraging Strategy and anticipated enhancements to our financial results and future growth from this strategy. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, failure to realize cost savings, efficiencies and other benefits that we expect to result from our Portfolio Optimization and Deleveraging Strategy, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

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Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

Dollars in thousands, except per share data (unaudited)

	For the Three Months Ended
	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Selected Financial Information:
Operating Statistics:
Net (loss) income available to common shares	$(40,515)	$3,930	$10,709	$8,648	$33,631
(Loss) earnings per share -- diluted	$(0.18)	$0.02	$0.05	$0.04	$0.15
Rental and other property revenue	$166,730	$168,375	$163,601	$161,135	$162,493
Property operating expenses	$59,703	$63,300	$62,071	$59,255	$57,450
NOI	$107,027	$105,075	$101,530	$101,880	$105,043
NOI margin	64.2%	62.4%	62.1%	63.2%	64.6%
Adjusted EBITDA	$95,640	$94,415	$89,156	$87,594	$93,017
FFO per share	$0.31	$0.31	$0.28	$0.27	$0.31
CFFO per share	$0.30	$0.30	$0.28	$0.27	$0.29
Dividends per share	$0.16	$0.16	$0.16	$0.14	$0.14
CFFO payout ratio	53.3%	53.3%	57.1%	51.9%	48.3%
Portfolio Data:
Total gross assets	$6,960,554	$7,225,447	$7,117,404	$7,045,306	$7,034,902
Total number of operating properties (a)	116	120	119	119	120
Total units (a)	34,431	35,427	35,249	35,249	35,526
Portfolio period end occupancy (a)	94.6%	94.4%	94.6%	94.1%	93.6%
Portfolio average occupancy (a)	94.4%	94.6%	94.1%	93.1%	93.9%
Portfolio average effective monthly rent, per unit (a)	$1,558	$1,556	$1,538	$1,535	$1,522
Same-store portfolio period end occupancy (b)	94.7%	94.4%	94.6%	94.1%	93.5%
Same-store portfolio average occupancy (b)	94.5%	94.5%	94.1%	93.0%	93.8%
Same-store portfolio average effective   monthly rent, per unit (b)	$1,551	$1,544	$1,527	$1,524	$1,514
Capitalization:
Total debt (c)	$2,549,409	$2,715,710	$2,650,805	$2,628,632	$2,631,645
Common share price, period end	$15.30	$14.07	$18.22	$16.03	$16.86
Market equity capitalization	$3,528,996	$3,245,135	$4,202,342	$3,694,970	$3,880,432
Total market capitalization	$6,078,405	$5,960,845	$6,853,147	$6,323,602	$6,512,077
Total debt/total gross assets	36.6%	37.6%	37.2%	37.3%	37.4%
Net debt to Adjusted EBITDA (d)	6.7x	7.0x	7.2x	7.3x	6.9x
Interest coverage	4.1x	4.3x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,706,731	224,695,566	224,697,889	224,556,870	224,064,940
OP units outstanding	5,946,571	5,946,571	5,946,571	5,946,571	6,091,171
Common shares and OP units outstanding	230,653,302	230,642,137	230,644,460	230,503,441	230,156,111
Weighted average common shares and OP units	230,452,570	230,444,945	230,369,086	230,186,297	229,994,927

(a)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

(b)Same-store portfolio consists of 106 properties, which represent 31,829 units.

(c)Includes indebtedness associated with real estate held for sale, as applicable.

(d)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended December 31, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 6.5x, 7.0x, 7.2x, 7.3x, and 6.9x, respectively.

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Schedule II

Independence Realty Trust, Inc.

Reconciliation of Net Income (Loss) to Funds from Operations and Core Funds From Operations

(Dollars in thousands, except share and per share amounts)

(unaudited)

	For the Three Months Ended December 31,				For the Year Ended  December 31,
	2023		2022		2023		2022
Funds From Operations (FFO):
Net (loss) income	$	(41,654)	$	34,524	$	(17,807)	$	120,659
Add-Back (Deduct):
Real estate depreciation and amortization	55,510		51,957		217,716		251,545
Our share of real estate depreciation and amortization from   investments in unconsolidated real estate entities	636		416		2,115		2,320
Loss on impairment (gain on sale) of real estate assets,   net, excluding prepayment gains	57,492		(16,635)		68,447		(111,347)
FFO	$	71,984	$	70,262	$	270,471	$	263,177
FFO per share	$	0.31	$	0.31	$	1.17	$	1.15
CORE Funds From Operations (CFFO):
FFO	$	71,984	$	70,262	$	270,471	$	263,177
Add-Back (Deduct):
Other depreciation and amortization	391		204		1,252		1,304
Casualty losses (gains), net	59		(1,690)		925		(8,866)
Loan (premium accretion) discount amortization, net	(2,659)		(2,760)		(10,899)		(11,005)
Prepayment (gains) penalties on asset dispositions	(1,229)		(409)		(1,900)		(409)
Loss on extinguishment of debt	124		—		124		—
Other expense (income), net	79		(860)		743		(2,298)
Merger and integration costs	—		2,028		—		5,505
Restructuring costs	—		—		3,213		—
CFFO	$	68,749	$	66,775	$	263,929	$	247,408
CFFO per share	$	0.30	$	0.29	$	1.15	$	1.08
Weighted-average shares and units outstanding	230,452,570		229,994,927		230,364,184		228,452,958

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Schedule III

Independence Realty Trust Inc.

Reconciliation from Net Income (Loss) to Same-Store Net Operating Income (a)

Dollars in thousands

(unaudited)

	For the Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Net (loss) income	$	(41,654)	$	3,986	$	10,988	$	8,872	$	34,524
Other revenue	(316)		(232)		(354)		(239)		(306)
Property management expenses	6,660		7,232		6,818		6,371		6,593
General and administrative      expenses	5,043		3,660		5,910		8,154		5,739
Depreciation and amortization     expense	55,902		55,546		53,984		53,536		52,161
Casualty losses (gains), net	59		35		680		151		(1,690)
Interest expense	23,537		22,033		22,227		22,124		23,337
Loss on impairment (gain on sale)     of real estate assets, net	56,263		11,268		—		(985)		(17,044)
Loss on extinguishment of debt	124		—		—		—		—
Other loss (income), net	79		369		72		(93)		(57)
Loss (gain) from investments in      unconsolidated real estate entities	1,330		1,178		1,205		776		(242)
Merger and integration costs	—		—		—		—		2,028
Restructuring costs	—		—		—		3,213		—
NOI	$	107,027	$	105,075	$	101,530	$	101,880	$	105,043
Less: Non same-store portfolio NOI	11,120		11,296		10,454		11,097		12,175
Same-store portfolio NOI	$	95,907	$	93,779	$	91,076	$	90,783	$	92,868

(a)Same-store portfolio consists of 106 properties, which represent 31,829 units.

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Schedule IV

Independence Realty Trust, Inc.

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Interest Coverage Ratio

(Dollars in thousands)

(unaudited)

	Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Net (loss) income	$	(41,654)	$	3,986	$	10,988	$	8,872	$	34,524
Add-Back (Deduct):
Interest expense	23,537		22,033		22,227		22,124		23,337
Depreciation and amortization	55,902		55,546		53,984		53,536		52,161
Casualty losses (gains), net	59		35		680		151		(1,690)
Loss on impairment (gain on sale) of   real estate assets, net	56,263		11,268		—		(985)		(17,044)
Loss on extinguishment of debt	124		—		—		—		—
Merger and integration costs	—		—		—		—		2,028
Loss (gain) from investments in   unconsolidated real estate entities	1,330		1,178		1,205		776		(242)
Other loss (income), net	79		369		72		(93)		(57)
Restructuring costs	—		—		—		3,213		—
Adjusted EBITDA	$	95,640	$	94,415	$	89,156	$	87,594	$	93,017
INTEREST COST:
Interest expense	$	23,537	$	22,033	$	22,227	$	22,124	$	23,337
INTEREST COVERAGE:	4.1x		4.3x		4.0x		4.0x		4.0x

	For the Three Months Ended December 31,				For the Year Ended December 31,
	2023		2022		2023		2022
Net (loss) income	$	(41,654)	$	34,524	$	(17,807)	$	120,659
Add-Back (Deduct):
Interest expense	23,537		23,337		89,921		86,955
Depreciation and amortization	55,902		52,161		218,968		252,849
Casualty losses (gains), net	59		(1,690)		925		(8,866)
Loss on impairment (gain on sale) of   real estate assets, net	56,263		(17,044)		66,547		(111,756)
Loss on extinguishment of debt	124		—		124		—
Merger and integration costs	—		2,028		—		5,505
Loss (gain) from investments in   unconsolidated real estate entities	1,330		(242)		4,488		2,360
Other loss (income), net	79		(57)		427		(822)
Restructuring costs	—		—		3,213		—
Adjusted EBITDA	$	95,640	$	93,017	$	366,806	$	346,884
INTEREST COST:
Interest expense	$	23,537	$	23,337	$	89,921	$	86,955
INTEREST COVERAGE:	4.1x		4.0x		4.1x		4.0x

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Schedule V

Independence Realty Trust, Inc.

Definitions

Average Effective Monthly Rent per Unit

Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metric, when presented, reflects the average effective rent per month.

Average Occupancy

Average occupancy represents the average occupied units for the reporting period divided by the average of total units available for rent for the reporting period.

Development Property

A development property is a property that is either currently under development or is in lease-up prior to reaching overall occupancy of 90%.

EBITDA and Adjusted EBITDA

Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before certain other non-cash or non-operating gains or losses related to items such as loss on impairment (gain on sale) of real estate, debt extinguishments and acquisition related debt extinguishment expenses, casualty (gains) losses, merger and integration costs, income (loss) from investments in unconsolidated real estate entities, and restructuring costs. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

We believe that FFO and CFFO, each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, loss on impairment (gain on sale) of real estate and the cumulative effect of changes in accounting principles. While our calculation of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to FFO computations of such other REITs.

CFFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including depreciation and amortization of other items not included in FFO, and other non-cash or non-operating gains or losses related to items such as casualty (gains) losses, loan premium accretion and discount amortization, debt extinguishment costs, merger and integration costs, and restructuring costs from the determination of FFO.

Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current

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operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.

Net Debt

Net debt, a non-GAAP financial measure, equals total consolidated debt less cash and cash equivalents and loan premiums and discounts. The following table provides a reconciliation of total consolidated debt to net debt (dollars in thousands).

	As of
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Total debt	$	2,549,409	$	2,715,710	$	2,650,805	$	2,628,632	$	2,631,645
Less: cash and cash equivalents	(22,851)		(17,216)		(14,349)		(12,448)		(16,084)
Less: loan discounts and premiums, net	(44,483)		(50,772)		(53,520)		(56,256)		(59,937)
Total net debt	$	2,482,075	$	2,647,722	$	2,582,936	$	2,559,928	$	2,555,624

We present net debt and net debt to Adjusted EBITDA because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.

Net Operating Income

We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expense, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expenses, net gains on sale of assets, merger and integration costs, and restructuring costs.

Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same-store and non same-store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.

Non Same-Store Properties and Non Same-Store Portfolio

Properties that did not meet the definition of a same-store property as of the beginning of the previous year.

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Same-Store Properties and Same-Store Portfolio

We review our same-store portfolio at the beginning of each calendar year. Properties are added into the same-store portfolio if they were owned and not a development property at the beginning of the previous year. Properties that are held for sale or have been sold are excluded from the same-store portfolio.

Rent Premium on value add renovations

The rent premium reflects the per unit per month difference between the rental rate on the renovated unit excluding the impact of upfront concessions, if any, and the market rent for an unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures. We believe excluding the impact of upfront concessions from our rental rates when comparing to the market rental rates for unrenovated units makes the comparison most relevant and the resulting premium provides management with an indicator of the increased rent generated by the unit renovation.

Renovation Costs per Unit

Renovation costs per unit includes all costs to renovate the interior units and make certain exterior renovations, including clubhouses and amenities. Interior costs per unit are based on units leased. Exterior costs per unit are based on total units at the community. Excludes overhead costs to support and manage the value add program as those costs relate to the entire program and cannot be allocated to individual projects.

Return on Investment (“ROI”) on value add renovations

ROI is calculated using the Rent Premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit or the total renovation costs, as applicable. We use ROI on value add renovation projects to measure the profitability of a renovation project relative to other projects or relative to other uses of our capital.

Total Gross Assets

Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (dollars in thousands).

	As of
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Total assets	$	6,280,175	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095
Plus: accumulated depreciation (a)	606,404		570,966		523,446		475,001		426,097
Plus: accumulated amortization	73,975		76,691		76,558		76,558		76,710
Total gross assets	$	6,960,554	$	7,225,447	$	7,117,404	$	7,045,306	$	7,034,902

(a)Includes accumulated depreciation associated with real estate held for sale, as applicable.

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EX-99.2

Exhibit 99.2

NYSE: IRT

WWW.IRTLIVING.COM

TABLE OF CONTENTS

Company Information	3
Forward-Looking Statements	4
Earnings Release Text	5
Financial & Operating Highlights	12
Balance Sheets	13
Statements of Operations, FFO & CFFO
Trailing Five Quarters	14
Year Ended December 31, 2023 and 2022	15
Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing Five Quarters	16
Year Ended December 31, 2023 and 2022	16
Same-Store Portfolio Net Operating Income and NOI Bridge
Trailing Five Quarters	17
Year Ended December 31, 2023 and 2022	18
Same-Store Portfolio Net Operating Income by Market
Three Months Ended December 31, 2023 and 2022	19
Year Ended December 31, 2023 and 2022	20
Property Portfolio NOI Exposure by Market	21
Value Add Summary	22
Investment & Development Activity	23
Debt Summary	25
Debt Maturity, Debt Covenant & Unencumbered Asset Statistics	25
Definitions	27

Independence Realty Trust

December 31, 2023

Company Information:

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.

Corporate Headquarters	1835 Market Street, Suite 2601
	Philadelphia, PA 19103
	267.270.4800
Trading Symbol	NYSE: “IRT”
Investor Relations Contact	Edelman Smithfield
	Ted McHugh and Lauren Torres
	917-365-7979
	IRT@edelman.com

3

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, and certain actions that we expect or seek to take in connection with our Portfolio Optimization and Deleveraging Strategy and anticipated enhancements to our financial results and future growth from this strategy. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, failure to realize cost savings, efficiencies and other benefits that we expect to result from our Portfolio Optimization and Deleveraging Strategy, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

4

Independence Realty Trust Announces Fourth Quarter and Full Year 2023 Financial Results

Introduces Full Year 2024 Guidance

PHILADELPHIA – (BUSINESS WIRE) – February 14, 2024 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its fourth quarter and full year 2023 financial results and provided its full year 2024 guidance.

Fourth Quarter Highlights

•Net loss available to common shares of $40.5million for the quarter ended December 31, 2023 compared to net income available to common shares of $33.6 million for the quarter ended December 31, 2022.

•Loss per diluted share of $0.18 for the quarter ended December 31, 2023 compared to earnings per diluted share of $0.15 for the quarter ended December 31, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 3.3% for the quarter ended December 31, 2023 compared to the quarter ended December 31, 2022.

•Core Funds from Operations (“CFFO”) of $68.7million for the quarter ended December 31, 2023 compared to $66.8 million for the quarter ended December 31, 2022. CFFO per share was $0.30 for the fourth quarter of 2023, as compared to $0.29 for the fourth quarter of 2022.

•Adjusted EBITDA of $95.6 million for the quarter ended December 31, 2023 compared to $93.0 million for the quarter ended December 31, 2022.

•Value add program completed renovations at 486 units during the quarter ended December 31, 2023, achieving a weighted average return on investment during the quarter of 17.1%.

Full Year Highlights

•Net loss available to common shares of $17.2million for the year ended December 31, 2023 compared to net income available to common shares of $117.2 million for the year ended December 31, 2022.

•Loss per diluted share of $0.08 for the year ended December 31, 2023 compared to earnings per diluted share of $0.53 for the year ended December 31, 2022.

•Same-store portfolio NOI growth of 5.7% for the year ended December 31, 2023 compared to the year ended December 31, 2022.

•CFFO of $263.9million for the year ended December 31, 2023 compared to $247.4 million for the year ended December 31, 2022. CFFO per share was $1.15 for the year ended December 31, 2023, as compared to $1.08 for the year ended December 31, 2022.

•Adjusted EBITDA of $366.8 million for the year ended December 31, 2023 compared to $346.9 million for the year ended December 31, 2022.

•Value add program completed renovations at 2,455 units during the year ended December 31, 2023, achieving a weighted average return on investment during the year of 16.1%.

2024 Guidance Highlights

•Earnings per diluted share of $0.42 at the mid-point of our guidance range.

•CFFO per share of $1.14 at the mid-point of our guidance range.

•2024 same-store NOI growth of 2.5% at the mid-point of our guidance range.

Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP, as well as, discussion of our same-store methodology.

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Management Commentary

“For full year 2023, we delivered growth of 5.7% in same-store NOI and 6.5% in CFFO per share as we remained focused on driving occupancy and delivering our planned value add improvements,” said Scott Schaeffer, Chairman and CEO of IRT. “In fourth quarter 2023 and first quarter 2024-to-date, we have made notable progress advancing our Portfolio Optimization and Deleveraging Strategy, selling six non-core assets, which strengthenedour balance sheet. As we look out to full year 2024, we will continue to take decisive action to drive value, prioritize higher resident retention and lower unit vacancies. We also plan to fully execute our Portfolio Optimization and Deleveraging Strategy, thereby increasing our financial flexibility and decreasing our leverage.”

Same-Store Portfolio(1) Operating Results

	Fourth Quarter 2023  Compared to  Fourth Quarter 2022	Full Year 2023 Compared to Full Year 2022
Rental and other property revenue	3.7% increase	5.7% increase
Property operating expenses	4.5% increase	5.6% increase
NOI	3.3% increase	5.7% increase
Portfolio average occupancy	70 bps increase to 94.5%	70 bps decrease to 94.0%
Portfolio average rental rate	2.4% increase to $1,551	6.4% increase to $1,537
NOI Margin	30 bps decrease to 64.3%	No change -- 63.0%

(1)Same-store portfolio includes 106 properties, which represent 31,829 units.

Operating Metrics

The table below summarizes operating metrics for the same-store portfolio for the applicable periods.

	4Q 2023		1Q 2024(3)
Same-Store Portfolio(1)
Average Occupancy	94.5	%	94.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(4.2)	%	(2.0)	%
Renewal Leases	4.8	%	4.5	%
Blended	0.2	%	2.1	%
Resident Retention Rate	51.0	%	52.6	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	94.9	%	94.6	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(4.4)	%	(2.6)	%
Renewal Leases	4.6	%	4.5	%
Blended	0.0	%	1.8	%
Resident Retention Rate	50.7	%	52.1	%
Value Add (21 properties with Ongoing Value Add)
Average Occupancy	93.3	%	93.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(3.4)	%	0.3	%
Renewal Leases	6.0	%	4.4	%
Blended	0.7	%	3.0	%
Resident Retention Rate	52.5	%	54.4	%

(1)Same-store portfolio includes 106 properties, which represent 31,829 units.

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(2)Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months.

(3)1Q 2024 average occupancy and resident retention rates are through February 12, 2024. 1Q 2024 new lease and renewal rates are for leases commencing during 1Q 2024 that were signed as of February 12, 2024.

(4)As of February 12, 2024, same-store portfolio occupancy was 94.2%, same-store portfolio excluding ongoing value add occupancy was 94.5%, and value add occupancy was 93.3%.

Portfolio Optimization and Deleveraging Strategy Update

On October 30, 2023, we announced our Portfolio Optimization and Deleveraging Strategy, which targets sales of 10 properties located in seven markets in order to exit or reduce our presence in these markets while also deleveraging our balance sheet. On January 3, 2024, we announced that four properties in four markets were sold in December 2023 for a total gross sales price of $200.7 million and proceeds from the sales were used to repay $196.8 million of debt.

As discussed further below, the six remaining assets that are part of the Portfolio Optimization and Deleveraging Strategy were classified as held for sale as of December 31, 2023. Two of these six assets were sold subsequent to December 31, 2023 and, as of the date of this release, the remaining four assets are under contract, through due diligence, and are expected to close in the first quarter of 2024. Once the sale of all 10 properties are complete, we expect to have generated $525 million in gross sales proceeds, used those proceeds to reduce our outstanding debt by approximately $519 million, reduced our net debt to Adjusted EBITDA ratio by approximately 0.8x with a $0.03 dilutive impact to CFFO, and to have exited five single asset markets.

While the four remaining properties that are part of the Portfolio Optimization and Deleveraging Strategy are under contract, there can be no assurance that the sales will be consummated at expected pricing levels, within expected time frames, or at all.

Value Add Program

We completed renovations on 486 units during the quarter ended December 31, 2023, achieving a return on investment of 17.1%, with an average cost per unit renovated of $18,264, and an average monthly rent increase per renovated unit of $260. For the twelve months ended December 31, 2023, we have completed renovations on 2,455 units, achieving a return on investment of 16.1%, with an average cost per unit renovated of $17,208, and an average monthly rent increase per renovated unit of $231. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of December 31, 2023.

In addition, we’ve added several new communities to our value add program and anticipate starting renovations at those communities during the first half of 2024.

Investment Activity

Properties Held for Sale and Dispositions

In connection with our Portfolio Optimization and Deleveraging Strategy, we sold properties during the fourth quarter 2023 and first quarter 2024 as follows.

During the three months ended December 31, 2023, we sold four properties for a combined sales price of $200.7 million and we recognized a net loss on impairment of $34.8 million.

As of December 31, 2023, we had six properties classified as held for sale. We recorded an impairment charge during the three months ended December 31, 2023 related to five of the six properties in the aggregate amount of $33.0 million. We expect to recognize a gain of approximately $25.9 million upon the sale of the sixth property.

Subsequent to December 31, 2023, we sold two properties that had been classified as held for sale for gross sales proceeds of $128 million. The proceeds from all dispositions were used or will be used to reduce indebtedness.

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Capital Expenditures

For the three months ended December 31, 2023, recurring capital expenditures for the total portfolio were $3.6 million, or $107 per unit. For the year ended December 31, 2023, recurring capital expenditures for the total portfolio were $19.4 million, or $576 per unit.

Dividend Distribution

On December 11, 2023, our Board of Directors declared a quarterly dividend of $0.16 per share of common stock. The fourth quarter dividend was paid on January 19, 2024 to stockholders of record at the close of business on December 29, 2023.

2024 EPS, FFO and CFFO Guidance

We are introducing 2024 EPS, FFO, and CFFO per share and same-store NOI guidance ranges. Earnings per diluted share is projected to be in the range of $0.40 to $0.44. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s definition and rationale for the usefulness of CFFO.

2024 Full Year EPS and CFFO Guidance(1)(2)	Low		High
Earnings per share	$	0.40	$	0.44
Adjustments:
Depreciation and amortization	0.87		0.87
Gain on sale of real estate assets(3)	(0.11)		(0.11)
FFO per share	1.16		1.20
Loan (premium accretion) discount amortization, net	(0.04)		(0.04)
CFFO per share	$	1.12	$	1.16

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2024 EPS, FFO, and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements”. Our guidance is based on the key guidance assumptions detailed below.

(2)Per share guidance is based on 230.9 million weighted average shares and units outstanding.

(3)Gain on sale of real estate assets includes a gain expected to be realized in Q1 2024 related to the sale of one of the properties identified as held for sale as of December 31, 2023.

8

2024 Guidance Assumptions

Our key guidance assumptions for 2024 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Same-Store Portfolio	2024 Outlook(1)
Number of properties/units	109 properties / 32,507 units
Property revenue growth	3.0% to 4.5%
Controllable operating expense growth	4.9% to 5.9%
Real estate tax and insurance expense growth	6.1% to 7.1%
Total operating expense growth	5.4% to 6.4%
NOI growth	1.0% to 4.0%
Corporate Expenses
General and administrative & Property management expenses	$51.5 million to $54.5 million
Interest expense(2)	$83.0 million to $85.0 million
Transaction/Investment Volume
Acquisition volume	None
Disposition volume(3)	$324 million
Capital Expenditures
Recurring	$21.0 million to $23.0 million
Value add & non-recurring	$83.0 million to $85.0 million
Development	$54.5 million to $55.5 million

(1)This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” .

(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting we recorded loan premiums, net, that are accreted into and reduce GAAP interest expense over the remaining term of the associated debt. However, loan premium accretion is excluded from CFFO.

(3)Includes $128 million related to the sale of two of the six properties identified as held for sale as of December 31, 2023 and $196 million related to the other four properties, which are under contract and expected to be sold in Q1 2024. We continue to evaluate our portfolio for capital recycling opportunities so actual acquisition and disposition volume could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements”.

9

Selected Financial Information

See the schedules at the end of this earnings release for selected financial information for IRT.

Non-GAAP Financial Measures and Definitions

We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same-store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, February 15, 2024 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.888.660.9916, access code 1963990. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website until the next earnings release. A playback of the conference call can also be accessed telephonically until Thursday, February 22, 2024 by dialing 1.800.770.2030, access code 1963990.

Supplemental Information

We produce supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store information and other useful information for investors. The supplemental information is available via our website, www.irtliving.com, through the "Investor Relations" section.

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.

10

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, and certain actions that we expect or seek to take in connection with our Portfolio Optimization and Deleveraging Strategy and anticipated enhancements to our financial results and future growth from this strategy. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, failure to realize cost savings, efficiencies and other benefits that we expect to result from our Portfolio Optimization and Deleveraging Strategy, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

11

FINANCIAL & OPERATING HIGHLIGHTS

Dollars in thousands, except per share data

	For the Three Months Ended
	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Selected Financial Information:
Operating Statistics:
Net (loss) income available to common shares	$(40,515)	$3,930	$10,709	$8,648	$33,631
(Loss) earnings per share -- diluted	$(0.18)	$0.02	$0.05	$0.04	$0.15
Rental and other property revenue	$166,730	$168,375	$163,601	$161,135	$162,493
Property operating expenses	$59,703	$63,300	$62,071	$59,255	$57,450
NOI	$107,027	$105,075	$101,530	$101,880	$105,043
NOI margin	64.2%	62.4%	62.1%	63.2%	64.6%
Adjusted EBITDA	$95,640	$94,415	$89,156	$87,594	$93,017
FFO per share	$0.31	$0.31	$0.28	$0.27	$0.31
CFFO per share	$0.30	$0.30	$0.28	$0.27	$0.29
Dividends per share	$0.16	$0.16	$0.16	$0.14	$0.14
CFFO payout ratio	53.3%	53.3%	57.1%	51.9%	48.3%
Portfolio Data:
Total gross assets	$6,960,554	$7,225,447	$7,117,404	$7,045,306	$7,034,902
Total number of operating properties (a)	116	120	119	119	120
Total units (a)	34,431	35,427	35,249	35,249	35,526
Portfolio period end occupancy (a)	94.6%	94.4%	94.6%	94.1%	93.6%
Portfolio average occupancy (a)	94.4%	94.6%	94.1%	93.1%	93.9%
Portfolio average effective monthly rent, per unit (a)	$1,558	$1,556	$1,538	$1,535	$1,522
Same-store portfolio period end occupancy (b)	94.7%	94.4%	94.6%	94.1%	93.5%
Same-store portfolio average occupancy (b)	94.5%	94.5%	94.1%	93.0%	93.8%
Same-store portfolio average effective   monthly rent, per unit (b)	$1,551	$1,544	$1,527	$1,524	$1,514
Capitalization:
Total debt (c)	$2,549,409	$2,715,710	$2,650,805	$2,628,632	$2,631,645
Common share price, period end	$15.30	$14.07	$18.22	$16.03	$16.86
Market equity capitalization	$3,528,996	$3,245,135	$4,202,342	$3,694,970	$3,880,432
Total market capitalization	$6,078,405	$5,960,845	$6,853,147	$6,323,602	$6,512,077
Total debt/total gross assets	36.6%	37.6%	37.2%	37.3%	37.4%
Net debt to Adjusted EBITDA (d)	6.7x	7.0x	7.2x	7.3x	6.9x
Interest coverage	4.1x	4.3x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,706,731	224,695,566	224,697,889	224,556,870	224,064,940
OP units outstanding	5,946,571	5,946,571	5,946,571	5,946,571	6,091,171
Common shares and OP units outstanding	230,653,302	230,642,137	230,644,460	230,503,441	230,156,111
Weighted average common shares and OP units	230,452,570	230,444,945	230,369,086	230,186,297	229,994,927

(a)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

(b)Same-store portfolio consists of 106 properties, which represent 31,829 units.

(c)Includes indebtedness associated with real estate held for sale, as applicable.

(d)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended December 31, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 6.5x, 7.0x, 7.2x, 7.3x, and 6.9x, respectively.

12

BALANCE SHEETS

Dollars in thousands, except per share data

	As of
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Assets:
Real estate held for investment, at cost	$	6,259,212	$	6,754,022	$	6,610,233	$	6,648,907	$	6,615,243
Less: accumulated depreciation	(582,760)		(567,200)		(519,680)		(475,001)		(425,034)
Real estate held for investment, net	5,676,452		6,186,822		6,090,553		6,173,906		6,190,209
Real estate held for sale	296,334		75,392		86,576		—		35,777
Real estate under development	98,365		83,547		121,733		124,983		105,518
Cash and cash equivalents	22,852		17,216		14,349		12,448		16,084
Restricted cash	27,880		31,772		28,163		22,385		27,933
Investment in unconsolidated real estate entities	89,044		87,592		99,968		92,882		80,220
Other assets	39,245		41,926		31,799		34,360		34,846
Derivative assets	29,937		53,258		44,259		32,783		41,109
Intangible assets, net	66		265		—		—		399
Total assets	$	6,280,175	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095
Liabilities and Equity:
Indebtedness, net	$	2,426,788	$	2,675,117	$	2,609,903	$	2,628,632	$	2,631,645
Indebtedness associated with real estate held   for sale, net	122,621		40,593		40,902		—		—
Accounts payable and accrued expenses	109,074		138,549		115,664		105,873		109,677
Accrued interest payable	7,917		8,275		7,986		7,979		7,713
Dividends payable	36,858		36,858		36,856		32,232		32,189
Derivative liabilities	—		—		—		2,283		—
Other liabilities	9,723		10,642		11,172		11,813		13,004
Total liabilities	2,712,981		2,910,034		2,822,483		2,788,812		2,794,228
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share	—		—		—		—		—
Common shares, $0.01 par value per share	2,247		2,247		2,247		2,246		2,241
Additional paid in capital	3,751,942		3,751,001		3,754,839		3,753,074		3,751,056
Accumulated other comprehensive income	25,513		47,910		38,823		25,101		35,102
Accumulated deficit	(348,405)		(271,982)		(239,972)		(214,775)		(191,735)
Total shareholders' equity	3,431,297		3,529,176		3,555,937		3,565,646		3,596,664
Noncontrolling Interests	135,897		138,580		138,980		139,289		141,203
Total equity	3,567,194		3,667,756		3,694,917		3,704,935		3,737,867
Total liabilities and equity	$	6,280,175	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095

13

STATEMENTS OF OPERATIONS, FFO & CFFO

TRAILING FIVE QUARTERS (Dollars in thousands, except per share data)

	For the Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Revenue:
Rental and other property revenue	$	166,730	$	168,375	$	163,601	$	161,135	$	162,493
Other revenue	316		232		354		239		306
Total revenue	167,046		168,607		163,955		161,374		162,799
Expenses:
Property operating expenses	59,703		63,300		62,071		59,255		57,450
Property management expenses	6,660		7,232		6,818		6,371		6,593
General and administrative expenses (a)	5,043		3,660		5,910		8,154		5,739
Depreciation and amortization expense	55,902		55,546		53,984		53,536		52,161
Casualty losses (gains), net	59		35		680		151		(1,690)
Total expenses	127,367		129,773		129,463		127,467		120,253
Interest expense	(23,537)		(22,033)		(22,227)		(22,124)		(23,337)
(Loss on impairment) gain on sale of real estate   assets, net	(56,263)		(11,268)		—		985		17,044
Loss on extinguishment of debt	(124)		—		—		—		—
Other (loss) income, net	(79)		(369)		(72)		93		57
(Loss) gain from investments in unconsolidated   real estate entities	(1,330)		(1,178)		(1,205)		(776)		242
Merger and integration costs	—		—		—		—		(2,028)
Restructuring costs	—		—		—		(3,213)		—
Net (loss) income	$	(41,654)	$	3,986	$	10,988	$	8,872	$	34,524
Loss (income) allocated to noncontrolling interests	1,139		(56)		(279)		(224)		(893)
Net (loss) income available to common shares	$	(40,515)	$	3,930	$	10,709	$	8,648	$	33,631
(Loss) earnings per share - basic	$	(0.18)	$	0.02	$	0.05	$	0.04	$	0.15
Weighted-average shares outstanding - Basic	224,505,999		224,498,374		224,422,515		224,226,873		223,903,756
(Loss) earnings per share - diluted	$	(0.18)	$	0.02	$	0.05	$	0.04	$	0.15
Weighted-average shares outstanding - Diluted	224,505,999		225,140,555		225,073,890		225,088,659		224,915,128
Funds From Operations (FFO):
Net (loss) income	$	(41,654)	$	3,986	$	10,988	$	8,872	$	34,524
Add-Back (Deduct):
Real estate depreciation and amortization	55,510		55,217		53,701		53,287		51,957
Our share of real estate depreciation and   amortization from investments in unconsolidated    real estate entities	636		486		575		418		416
Loss on impairment (gain on sale) of real estate   assets, net, excluding prepayment gains	57,492		11,268		—		(314)		(16,635)
FFO	$	71,984	$	70,957	$	65,264	$	62,263	$	70,262
FFO per share	$	0.31	$	0.31	$	0.28	$	0.27	$	0.31
CORE Funds From Operations (CFFO):
FFO	$	71,984	$	70,957	$	65,264	$	62,263	$	70,262
Add-Back (Deduct):
Other depreciation and amortization	391		329		283		249		204
Casualty losses (gains), net	59		35		680		151		(1,690)
Loan (premium accretion) discount amortization,  net	(2,659)		(2,747)		(2,737)		(2,755)		(2,760)
Prepayment (gains) penalties on asset dispositions	(1,229)		—		—		(670)		(409)
Loss on extinguishment of debt	124		—		—		—		—
Other expense (income), net	79		429		192		42		(860)
Merger and integration costs	—		—		—		—		2,028
Restructuring costs	—		—		—		3,213		—
CFFO	$	68,749	$	69,003	$	63,682	$	62,493	$	66,775
CFFO per share	$	0.30	$	0.30	$	0.28	$	0.27	$	0.29
Weighted-average shares and units outstanding	230,452,570		230,444,945		230,369,086		230,186,297		229,994,927

(a)Included in the three months ended March 31, 2023 is $2.7 million of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.

14

STATEMENTS OF OPERATIONS, FFO & CFFO (Dollars in thousands, except per share data)

	For the Three Months Ended December 31,				For the Year Ended  December 31,
	2023		2022		2023		2022
Revenue:
Rental and other property revenue	$	166,730	$	162,493	$	659,841	$	627,414
Other revenue	316		306		1,142		1,111
Total revenue	167,046		162,799		660,983		628,525
Expenses:
Property operating expenses	59,703		57,450		244,330		232,275
Property management expenses	6,660		6,593		27,081		24,033
General and administrative expenses	5,043		5,739		22,766		26,260
Depreciation and amortization expense	55,902		52,161		218,968		252,849
Casualty losses (gains), net	59		(1,690)		925		(8,866)
Total expenses	127,367		120,253		514,070		526,551
Interest expense	(23,537)		(23,337)		(89,921)		(86,955)
(Loss on impairment) gain on sale of real estate   assets, net	(56,263)		17,044		(66,547)		111,756
Loss on extinguishment of debt	(124)		—		(124)		—
Other (loss) income, net	(79)		57		(427)		1,558
(Loss) gain from investments in unconsolidated   real estate entities	(1,330)		242		(4,488)		(2,169)
Merger and integration costs	—		(2,028)		—		(5,505)
Restructuring costs	—		—		(3,213)		—
Net (loss) income	(41,654)		34,524		(17,807)		120,659
Loss (income) allocated to noncontrolling interests	1,139		(893)		580		(3,410)
Net (loss) income available to common shares	$	(40,515)	$	33,631	$	(17,227)	$	117,249
(Loss) earnings per share - basic	$	(0.18)	$	0.15	$	(0.08)	$	0.53
Weighted-average shares outstanding - Basic	224,505,999		223,903,756		224,414,443		221,965,460
(Loss) earnings per share - diluted	$	(0.18)	$	0.15	$	(0.08)	$	0.53
Weighted-average shares outstanding - Diluted	224,505,999		224,915,128		224,414,443		223,012,828
Funds From Operations (FFO):
Net (loss) income	$	(41,654)	$	34,524	$	(17,807)	$	120,659
Add-Back (Deduct):
Real estate depreciation and amortization	55,510		51,957		217,716		251,545
Our share of real estate depreciation and amortization from   investments in unconsolidated real estate entities	636		416		2,115		2,320
Loss on impairment (gain on sale) of real estate assets,   net, excluding prepayment gains	57,492		(16,635)		68,447		(111,347)
FFO	$	71,984	$	70,262	$	270,471	$	263,177
FFO per share	$	0.31	$	0.31	$	1.17	$	1.15
CORE Funds From Operations (CFFO):
FFO	$	71,984	$	70,262	$	270,471	$	263,177
Add-Back (Deduct):
Other depreciation and amortization	391		204		1,252		1,304
Casualty losses (gains), net	59		(1,690)		925		(8,866)
Loan (premium accretion) discount amortization, net	(2,659)		(2,760)		(10,899)		(11,005)
Prepayment (gains) penalties on asset dispositions	(1,229)		(409)		(1,900)		(409)
Loss on extinguishment of debt	124		—		124		—
Other expense (income), net	79		(860)		743		(2,298)
Merger and integration costs	—		2,028		—		5,505
Restructuring costs	—		—		3,213		—
CFFO	$	68,749	$	66,775	$	263,929	$	247,408
CFFO per share	$	0.30	$	0.29	$	1.15	$	1.08
Weighted-average shares and units outstanding	230,452,570		229,994,927		230,364,184		228,452,958

15

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

	Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Net (loss) income	$	(41,654)	$	3,986	$	10,988	$	8,872	$	34,524
Add-Back (Deduct):
Interest expense	23,537		22,033		22,227		22,124		23,337
Depreciation and amortization	55,902		55,546		53,984		53,536		52,161
Casualty losses (gains), net	59		35		680		151		(1,690)
Loss on impairment (gain on sale) of   real estate assets, net	56,263		11,268		—		(985)		(17,044)
Loss on extinguishment of debt	124		—		—		—		—
Merger and integration costs	—		—		—		—		2,028
Loss (gain) from investments in   unconsolidated real estate entities	1,330		1,178		1,205		776		(242)
Other loss (income), net	79		369		72		(93)		(57)
Restructuring costs	—		—		—		3,213		—
Adjusted EBITDA	$	95,640	$	94,415	$	89,156	$	87,594	$	93,017
INTEREST COST:
Interest expense	$	23,537	$	22,033	$	22,227	$	22,124	$	23,337
INTEREST COVERAGE:	4.1x		4.3x		4.0x		4.0x		4.0x

	For the Three Months Ended December 31,				For the Year Ended December 31,
	2023		2022		2023		2022
Net (loss) income	$	(41,654)	$	34,524	$	(17,807)	$	120,659
Add-Back (Deduct):
Interest expense	23,537		23,337		89,921		86,955
Depreciation and amortization	55,902		52,161		218,968		252,849
Casualty losses (gains), net	59		(1,690)		925		(8,866)
Loss on impairment (gain on sale) of   real estate assets, net	56,263		(17,044)		66,547		(111,756)
Loss on extinguishment of debt	124		—		124		—
Merger and integration costs	—		2,028		—		5,505
Loss (gain) from investments in   unconsolidated real estate entities	1,330		(242)		4,488		2,360
Other loss (income), net	79		(57)		427		(822)
Restructuring costs	—		—		3,213		—
Adjusted EBITDA	$	95,640	$	93,017	$	366,806	$	346,884
INTEREST COST:
Interest expense	$	23,537	$	23,337	$	89,921	$	86,955
INTEREST COVERAGE:	4.1x		4.0x		4.1x		4.0x

16

SAME-STORE PORTFOLIO NET OPERATING INCOME & NOI BRIDGE (a) (b)

TRAILING FIVE QUARTERS

Dollars in thousands, except per unit data

	For the Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Revenue:
Rental and other property revenue	$	149,085	$	150,268	$	146,748	$	143,648	$	143,747
Property Operating Expenses:
Real estate taxes	18,305		18,208		18,275		18,158		18,240
Property insurance	4,185		4,006		3,553		2,902		3,053
Personnel expenses	11,638		11,883		11,639		11,020		11,202
Utilities	7,338		7,639		7,013		7,286		7,226
Repairs and maintenance	3,406		5,736		5,997		5,405		3,431
Contract services	5,159		5,538		5,871		5,044		4,666
Advertising expenses	1,595		1,899		1,575		1,280		1,129
Other expenses	1,552		1,580		1,749		1,770		1,932
Total property operating expenses	53,178		56,489		55,672		52,865		50,879
Same-store portfolio NOI	$	95,907	$	93,779	$	91,076	$	90,783	$	92,868

Same-store portfolio NOI margin	64.3	%	62.4	%	62.1	%	63.2	%	64.6	%
Average occupancy	94.5	%	94.5	%	94.1	%	93.0	%	93.8	%

Average effective monthly rent, per unit $ 1,551  $ 1,544  $ 1,527  $ 1,524  $ 1,514 

	For the Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Rental and other property revenue
Same-store portfolio	$	149,085	$	150,268	$	146,748	$	143,648	$	143,747
Non same-store portfolio	17,645		18,107		16,853		17,487		18,746
Total rental and other property revenue	166,730		168,375		163,601		161,135		162,493
Property operating expenses
Same-store portfolio	53,178		56,489		55,672		52,865		50,879
Non same-store portfolio	6,525		6,811		6,399		6,390		6,571
Total property operating expenses	59,703		63,300		62,071		59,255		57,450
NOI
Same-store portfolio	95,907		93,779		91,076		90,783		92,868
Non same-store portfolio	11,120		11,296		10,454		11,097		12,175
Total property NOI	$	107,027	$	105,075	$	101,530	$	101,880	$	105,043

(a)Same-store portfolio consists of 106 properties, which represent 31,829 units.

(b)See definitions at the end of this release for a reconciliation from GAAP net income (loss) to NOI.

17

SAME-STORE PORTFOLIO NET OPERATING INCOME (a)

THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2022

Dollars in thousands, except per unit data

	For the Three Months Ended December 31,						For the Year Ended  December 31,
	2023		2022		% change		2023		2022		% change
Revenue:
Rental and other property revenue	$	149,085	$	143,747	3.7	%	$	589,749	$	558,203	5.7	%
Property Operating Expenses:
Real estate taxes	18,305		18,240		0.4	%	72,947		72,406		0.7	%
Property insurance	4,185		3,053		37.1	%	14,647		11,683		25.4	%
Personnel expenses	11,638		11,202		3.9	%	46,179		45,347		1.8	%
Utilities	7,338		7,226		1.5	%	29,277		28,026		4.5	%
Repairs and maintenance	3,406		3,431		(0.7)	%	20,545		18,484		11.2	%
Contract services	5,159		4,666		10.6	%	21,612		18,998		13.8	%
Advertising expenses	1,595		1,129		41.3	%	6,350		4,852		30.9	%
Other expenses	1,552		1,932		(19.7)	%	6,652		6,891		(3.5)	%
Total property operating expenses	53,178		50,879		4.5	%	218,209		206,687		5.6	%
Same-store portfolio NOI	$	95,907	$	92,868	3.3	%	$	371,540	$	351,516	5.7	%

Same-store portfolio NOI margin	64.3		%	64.6		%	(0.3)	%	63.0		%	63.0		%	—	%
Average occupancy	94.5		%	93.8		%	0.7	%	94.0		%	94.7		%	(0.7)	%
Average effective monthly rent,   per unit	$	1,551		$	1,514		2.4	%	$	1,537		$	1,445		6.4	%

(a)Same-store portfolio consists of 106 properties, which represent 31,829 units.

18

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED DECEMBER 31, 2023

Dollars in thousands, except rent per unit

			Rental and Other Property Revenue						Property Operating Expenses						Net Operating Income						Average Occupancy						Average Effective Monthly Rent per Unit
Market	Number of Properties	Units	2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change
Atlanta, GA	13	5,180	$	24,400	$	23,608	3.4	%	$	9,209	$	8,457	8.9	%	$	15,188	$	15,149	0.3	%	92.6	%	92.6	%	—	%	$	1,648	$	1,615	2.0	%
Dallas, TX	14	4,007	21,700		21,399		1.4	%	8,401		8,633		(2.7)	%	13,299		12,766		4.2	%	94.1	%	94.4	%	(0.3)	%	1,814		1,770		2.5	%
Columbus, OH	10	2,510	10,805		10,391		4.0	%	3,722		3,503		6.3	%	7,083		6,888		2.8	%	94.5	%	95.3	%	(0.8)	%	1,425		1,348		5.7	%
Raleigh - Durham, NC	6	1,690	7,957		7,622		4.4	%	2,579		2,346		9.9	%	5,378		5,275		2.0	%	94.9	%	94.8	%	0.1	%	1,562		1,519		2.8	%
Oklahoma City, OK	8	2,147	7,887		7,497		5.2	%	2,553		2,423		5.4	%	5,334		5,075		5.1	%	95.3	%	92.2	%	3.1	%	1,184		1,152		2.8	%
Indianapolis, IN	7	1,979	8,388		7,953		5.5	%	3,087		2,915		5.9	%	5,301		5,038		5.2	%	94.5	%	93.6	%	0.9	%	1,369		1,317		3.9	%
Denver, CO	6	1,397	7,537		7,466		1.0	%	2,342		2,303		1.7	%	5,195		5,163		0.6	%	95.4	%	95.0	%	0.4	%	1,725		1,705		1.2	%
Nashville, TN	4	1,412	7,086		6,692		5.9	%	2,312		2,153		7.4	%	4,775		4,540		5.2	%	94.7	%	91.2	%	3.5	%	1,645		1,610		2.2	%
Memphis, TN	4	1,383	6,111		6,186		(1.2)	%	1,997		1,884		6.0	%	4,114		4,302		(4.4)	%	92.8	%	93.3	%	(0.5)	%	1,519		1,521		(0.1)	%
Tampa-St. Petersburg, FL	4	1,104	6,201		5,735		8.1	%	2,197		2,008		9.4	%	4,004		3,727		7.4	%	96.3	%	95.7	%	0.6	%	1,824		1,763		3.5	%
Houston, TX	5	1,308	5,761		5,492		4.9	%	2,461		2,357		4.4	%	3,300		3,135		5.3	%	95.8	%	93.5	%	2.3	%	1,423		1,392		2.2	%
Birmingham, AL	2	1,074	4,698		4,654		0.9	%	1,756		2,136		(17.8)	%	2,943		2,518		16.9	%	93.8	%	90.3	%	3.5	%	1,482		1,473		0.6	%
Louisville, KY	4	1,150	4,724		4,381		7.8	%	1,832		1,779		3.0	%	2,892		2,602		11.1	%	96.3	%	93.7	%	2.6	%	1,284		1,257		2.1	%
Huntsville, AL	3	873	4,131		4,043		2.2	%	1,327		1,294		2.6	%	2,803		2,749		2.0	%	95.8	%	95.2	%	0.6	%	1,530		1,515		1.0	%
Lexington, KY	3	886	3,777		3,663		3.1	%	1,115		966		15.4	%	2,662		2,697		(1.3)	%	96.6	%	96.6	%	—	%	1,323		1,270		4.2	%
Myrtle Beach, SC - Wilmington, NC	3	628	2,687		2,658		1.1	%	783		666		17.6	%	1,904		1,992		(4.4)	%	94.3	%	95.2	%	(0.9)	%	1,420		1,400		1.4	%
Charlotte, NC	2	480	2,625		2,598		1.0	%	748		688		8.7	%	1,878		1,910		(1.7)	%	96.2	%	96.4	%	(0.2)	%	1,773		1,747		1.5	%
Cincinnati, OH	2	542	2,781		2,570		8.2	%	996		843		18.1	%	1,785		1,727		3.4	%	95.1	%	94.1	%	1.0	%	1,598		1,544		3.5	%
Greenville, SC	1	702	2,689		2,430		10.7	%	947		889		6.5	%	1,742		1,541		13.0	%	94.9	%	95.0	%	(0.1)	%	1,293		1,234		4.8	%
Charleston, SC	2	518	2,665		2,447		8.9	%	941		833		13.0	%	1,724		1,614		6.8	%	94.4	%	95.3	%	(0.9)	%	1,692		1,585		6.8	%
Orlando, FL	1	297	1,658		1,538		7.8	%	708		616		14.9	%	950		922		3.0	%	95.8	%	94.6	%	1.2	%	1,815		1,770		2.5	%
San Antonio, TX	1	306	1,421		1,466		(3.1)	%	562		624		(9.9)	%	860		842		2.1	%	96.4	%	97.6	%	(1.2)	%	1,475		1,506		(2.1)	%
Austin, TX	1	256	1,396		1,258		11.0	%	603		563		7.1	%	793		696		13.9	%	94.4	%	87.3	%	7.1	%	1,808		1,741		3.8	%
Total / Weighted    Average	106	31,829	$	149,085	$	143,747	3.7	%	$	53,178	$	50,879	4.5	%	$	95,907	$	92,868	3.3	%	94.5	%	93.8	%	0.7	%	$	1,551	$	1,514	2.4	%

19

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

YEAR ENDED DECEMBER 31, 2023

Dollars in thousands, except rent per unit

			Rental and Other Property Revenue						Property Operating Expenses						Net Operating Income						Average Occupancy						Average Effective Monthly Rent per Unit
Market	Number of Properties	Units	2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change
Atlanta, GA	13	5,180	$	96,864	$	92,762	4.4	%	$	36,220	$	33,960	6.7	%	$	60,643	$	58,799	3.1	%	92.2	%	93.8	%	(1.6)	%	$	1,636	$	1,540	6.2	%
Dallas, TX	14	4,007	86,650		82,359		5.2	%	34,300		34,857		(1.6)	%	52,350		47,502		10.2	%	94.2	%	95.2	%	(1.0)	%	1,799		1,688		6.6	%
Columbus, OH	10	2,510	42,386		39,759		6.6	%	15,832		14,778		7.1	%	26,555		24,981		6.3	%	94.7	%	95.1	%	(0.4)	%	1,391		1,292		7.7	%
Raleigh - Durham, NC	6	1,690	31,541		29,033		8.6	%	10,550		9,617		9.7	%	20,991		19,416		8.1	%	94.4	%	95.1	%	(0.7)	%	1,544		1,417		9.0	%
Denver, CO	6	1,397	29,974		28,451		5.4	%	9,388		8,737		7.5	%	20,586		19,715		4.4	%	95.2	%	95.1	%	0.1	%	1,720		1,647		4.4	%
Oklahoma City, OK	8	2,147	31,111		29,564		5.2	%	10,609		10,046		5.6	%	20,501		19,519		5.0	%	93.9	%	94.7	%	(0.8)	%	1,172		1,103		6.3	%
Indianapolis, IN	7	1,979	32,976		30,604		7.8	%	12,730		11,764		8.2	%	20,246		18,841		7.5	%	94.0	%	94.7	%	(0.7)	%	1,354		1,257		7.7	%
Nashville, TN	4	1,412	27,547		26,397		4.4	%	9,387		8,894		5.5	%	18,160		17,503		3.8	%	93.5	%	94.5	%	(1.0)	%	1,620		1,530		5.9	%
Memphis, TN	4	1,383	24,686		23,832		3.6	%	8,237		7,903		4.2	%	16,449		15,929		3.3	%	93.5	%	93.4	%	0.1	%	1,510		1,461		3.4	%
Tampa-St. Petersburg, FL	4	1,104	24,417		21,928		11.4	%	9,030		8,127		11.1	%	15,387		13,801		11.5	%	95.4	%	94.7	%	0.7	%	1,808		1,657		9.1	%
Houston, TX	5	1,308	22,882		21,567		6.1	%	10,642		10,286		3.5	%	12,240		11,280		8.5	%	95.5	%	94.2	%	1.3	%	1,402		1,359		3.2	%
Birmingham, AL	2	1,074	18,535		18,565		(0.2)	%	7,422		7,404		0.2	%	11,113		11,161		(0.4)	%	91.8	%	93.3	%	(1.5)	%	1,472		1,425		3.3	%
Huntsville, AL	3	873	16,380		15,983		2.5	%	5,609		5,147		9.0	%	10,772		10,837		(0.6)	%	95.4	%	95.3	%	0.1	%	1,536		1,475		4.1	%
Louisville, KY	4	1,150	18,268		17,406		5.0	%	7,554		7,259		4.1	%	10,714		10,148		5.6	%	94.2	%	94.2	%	—	%	1,279		1,202		6.4	%
Lexington, KY	3	886	14,956		14,044		6.5	%	4,555		4,409		3.3	%	10,401		9,635		8.0	%	96.8	%	96.4	%	0.4	%	1,295		1,218		6.3	%
Charlotte, NC	2	480	10,547		9,777		7.9	%	3,102		2,939		5.5	%	7,445		6,837		8.9	%	95.9	%	96.1	%	(0.2)	%	1,768		1,635		8.1	%
Myrtle Beach, SC - Wilmington, NC	3	628	10,711		10,001		7.1	%	3,291		2,925		12.5	%	7,420		7,077		4.8	%	94.8	%	95.6	%	(0.8)	%	1,412		1,303		8.4	%
Cincinnati, OH	2	542	10,839		10,138		6.9	%	4,038		3,287		22.8	%	6,801		6,851		(0.7)	%	94.5	%	96.0	%	(1.5)	%	1,572		1,473		6.7	%
Greenville, SC	1	702	10,461		9,706		7.8	%	3,845		3,582		7.3	%	6,616		6,123		8.1	%	94.2	%	95.0	%	(0.8)	%	1,268		1,185		7.0	%
Charleston, SC	2	518	10,444		9,627		8.5	%	4,184		3,648		14.7	%	6,260		5,979		4.7	%	94.6	%	95.6	%	(1.0)	%	1,652		1,510		9.4	%
Orlando, FL	1	297	6,363		5,792		9.9	%	2,706		2,376		13.9	%	3,657		3,416		7.1	%	93.8	%	94.5	%	(0.7)	%	1,805		1,655		9.1	%
San Antonio, TX	1	306	5,773		5,800		(0.5)	%	2,563		2,439		5.1	%	3,210		3,361		(4.5)	%	96.2	%	96.7	%	(0.5)	%	1,482		1,481		0.1	%
Austin, TX	1	256	5,438		5,108		6.5	%	2,415		2,303		4.9	%	3,023		2,805		7.8	%	92.1	%	93.5	%	(1.4)	%	1,791		1,648		8.7	%
Total/Weighted Average	106	31,829	$	589,749	$	558,203	5.7	%	$	218,209	$	206,687	5.6	%	$	371,540	$	351,516	5.7	%	94.0	%	94.7	%	(0.7)	%	$	1,537	$	1,445	6.4	%

20

PROPERTY PORTFOLIO (a)

NET OPERATING INCOME EXPOSURE BY MARKET

Dollars in thousands, except rent per unit

							For the Three Months Ended  December 31, 2023
Market	Number of Properties	Units	Gross Real  Estate  Assets		Period End  Occupancy		Average  Effective  Monthly Rent  per Unit		NOI		% of NOI
Atlanta, GA	13	5,180	$	1,090,678	93.6	%	$	1,648	$	15,185	14.6	%
Dallas, TX	14	4,007	866,009		94.6	%	1,814		13,299		12.8	%
Denver, CO (b) (c)	8	2,075	536,855		94.7	%	1,734		7,564		7.0	%
Columbus, OH	10	2,510	374,054		94.8	%	1,425		7,083		6.8	%
Raleigh - Durham, NC	6	1,690	254,971		95.5	%	1,562		5,378		5.2	%
Oklahoma City, OK	8	2,147	328,355		95.1	%	1,184		5,334		5.1	%
Indianapolis, IN	7	1,979	293,761		94.6	%	1,369		5,301		5.1	%
Tampa-St. Petersburg, FL	5	1,452	309,847		96.3	%	1,822		5,189		5.0	%
Nashville, TN	5	1,508	371,562		95.0	%	1,634		5,154		5.0	%
Houston, TX (c)	7	1,932	316,462		95.2	%	1,459		4,842		4.7	%
Memphis, TN	4	1,383	162,113		93.0	%	1,519		4,114		4.0	%
Huntsville, AL (d)	4	1,051	241,099		94.8	%	1,527		3,318		3.2	%
Birmingham, AL	2	1,074	233,911		93.2	%	1,482		2,943		2.8	%
Louisville, KY	4	1,150	147,033		96.3	%	1,284		2,892		2.8	%
Charlotte, NC	3	714	189,558		94.4	%	1,762		2,715		2.6	%
Lexington, KY	3	886	161,068		96.7	%	1,323		2,662		2.6	%
Myrtle Beach, SC - Wilmington, NC	3	628	68,185		93.3	%	1,420		1,904		1.8	%
Cincinnati, OH	2	542	123,464		92.3	%	1,598		1,785		1.7	%
Greenville, SC	1	702	124,546		96.0	%	1,293		1,742		1.7	%
Charleston, SC	2	518	81,866		94.6	%	1,692		1,724		1.7	%
Orlando, FL	1	297	50,331		94.9	%	1,815		950		0.9	%
Asheville, NC (c)	1	252	29,377		96.8	%	1,552		893		0.9	%
San Antonio, TX	1	306	57,300		95.4	%	1,475		860		0.8	%
Austin, TX	1	256	58,946		94.1	%	1,808		793		0.8	%
Chattanooga, TN (c)	1	192	30,179		89.1	%	1,377		387		0.4	%
Total / Weighted Average	116	34,431	$	6,501,530	94.6	%	$	1,558	$	104,011	100.0	%

(a)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

(b)Includes properties in our Fort Collins, CO and Colorado Springs, CO markets.

(c)Includes properties included in our Portfolio Optimization and Deleveraging Strategy that were held for sale as of December 31, 2023. In the case of Denver, CO includes two properties comprised of 678 units, in the aggregate, and in the case of Houston, TX includes two properties comprised of 624 units, in the aggregate.

(d)Includes the Virtuoso joint venture property consolidated beginning August 1, 2023 as a result of an amendment to the joint venture agreement.

21

VALUE ADD SUMMARY BY MARKET

PROJECT LIFE TO DATE AS OF DECEMBER 31, 2023

									Renovation Costs per Unit (b)
Market	Total Properties	Total Units To Be Renovated	Units Complete	Units Leased	Rent Premium (a)		% Rent Increase		Interior		Exterior		Total		ROI - Interior Costs(c)		ROI - Total Costs (c)
Ongoing
Memphis, TN	1	362	283	276	$	384	33.8	%	$	15,547	$	807	$	16,354	29.7	%	28.2	%
Indianapolis, IN	1	236	184	178	282		24.0	%	15,583		1,484		17,067		21.7	%	19.8	%
Raleigh-Durham, NC	1	318	228	228	217		16.0	%	15,942		1,046		16,988		16.4	%	15.4	%
Tampa-St. Petersburg, FL	2	612	364	373	368		23.6	%	16,183		1,481		17,664		27.3	%	25.0	%
Austin, TX	1	256	151	153	240		14.1	%	17,742		1,486		19,228		16.2	%	15.0	%
Atlanta, GA (d)	4	1,920	1,123	1,112	258		17.5	%	16,660		1,824		18,484		18.5	%	16.7	%
Nashville, TN	1	418	241	230	160		8.9	%	16,316		1,321		17,637		11.7	%	10.9	%
Oklahoma City, OK	3	793	427	411	155		16.3	%	17,535		1,521		19,056		10.6	%	9.8	%
Dallas, TX	4	1,199	498	481	287		17.7	%	19,071		2,102		21,173		18.1	%	16.3	%
Columbus, OH	4	1,098	356	340	289		20.7	%	14,134		1,023		15,157		24.5	%	22.9	%
Total / Weighted Average	22	7,212	3,855	3,782	$	265	19.0	%	$16,635		$	1,548	$	18,183	19.1	%	17.5	%
Future (e)
Atlanta, GA	2	648	—	—	—		—		—		—		—		—		—
Oklahoma City, OK	1	294	—	—	—		—		—		—		—		—		—
Dallas, TX	1	263	—	—	—		—		—		—		—		—		—
Denver, CO	1	252	—	—	—		—		—		—		—		—		—
Lexington, KY	1	436	—	—	—		—		—		—		—		—		—
Total / Weighted Average	6	1,893	—	—	—		—		—		—		—		—		—
Completed (f)
Wilmington, NC	1	288	288	287	$	77	7.2	%	$	8,120	$	56	$	8,176	11.4	%	11.3	%
Raleigh-Durham, NC	1	328	325	323	195		18.0	%	14,648		2,108		16,756		15.9	%	13.9	%
Louisville, KY	2	728	719	773	218		23.7	%	15,472		2,173		17,645		16.9	%	14.8	%
Memphis, TN	2	691	646	643	189		18.6	%	11,773		974		12,747		19.3	%	17.8	%
Columbus, OH	3	763	694	688	207		22.4	%	10,162		666		10,828		24.5	%	23.0	%
Atlanta, GA	2	754	682	679	210		20.1	%	9,129		1,398		10,527		27.6	%	24.0	%
Tampa-St. Petersburg, FL	2	624	562	560	227		19.1	%	13,373		1,482		14,855		20.4	%	18.3	%
Total / Weighted Average	13	4,176	3,916	3,953	$	199	19.8	%	$	11,906	$	1,305	$	13,211	20.1	%	18.1	%
Grand Total/Weighted Average	41	13,281	7,771	7,735	$	231	19.4	%	$	14,241	$	1,475	$	15,716	19.5	%	17.7	%

(a) See the definitions section for a full description of Rent Premium. The weighted average Rent Premium including the impact of concessions was $216.

(b)See the definitions section for a full description of Renovation Costs per Unit.

(c)See the definitions section for a full description of ROI. ROI-Interior costs using rent premium including the impact of concessions was 18.2%. ROI-Total costs using rent premium including the impact of concessions was 16.5%.

(d)Renovations at one property comprised of 496 units in Atlanta, Georgia remain paused given current market conditions.

(e)Renovation projects expected to commence during the first half of 2024.

(f)We consider value add projects completed when over 85% of the property’s units to be renovated have been completed. We continue to renovate remaining unrenovated units as leases expire until we complete 100% of the property’s units.

(g)Includes Meadows, Haverford, Crestmont and Creekside that were formerly a part of the value add program but were sold in October 2022 (with respect to Meadows), February 2022 (with respect to Haverford) and December 2021 (with respect to Crestmont and Creekside).

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INVESTMENT AND DEVELOPMENT ACTIVITY

Dollars in thousands except per unit amounts

2023 DISPOSITIONS

Property	Location	Units	Disposition date	Sale price		Price per unit		Average rent per unit at disposition		Gain on sale (loss on impairment) (a)
Eagle Lake Landing	Indianapolis, IN	277	2/28/23	$	37,300	$	135	$	1,184	$	1,179
The Meadows at River Run	Chicago, IL	374	12/20/23	72,700		194		1,869		(14,612)
Fielders Creek	Denver, CO	217	12/21/23	44,100		203		1,657		(11,019)
Cottage Trails at Culpepper Landing	Norfolk, VA	183	12/28/23	40,750		223		1,888		(10,168)
Oak Crossing	Fort Wayne, IN	222	12/28/23	43,100		194		1,437		1,029
Total		1,273		$	237,950	$	187	$	1,611	$	(33,591)

(a)Includes $1.9 million of prepayment gains on asset dispositions.

ASSETS HELD FOR SALE AS OF DECEMBER 31, 2023

Property	Location	Units	Q4 2023 Loss on Impairment
Villas of Kingwood (a)	Houston, TX	330	$(4,634)
Villas at Huffmeister	Houston, TX	294	(4,097)
Reserve at Creekside	Chattanooga, TN	192	(7,135)
Belmar Villas (a)	Denver, CO	318	(7,195)
Hearthstone at City Center	Denver, CO	360	(9,895)
Westmont Commons	Asheville, NC	252	—
Total		1,746	$(32,956)

(a) Villas of Kingwood and Belmar Villas were sold on February 13, 2024 at a sale price of $53,700 and $74,300, respectively.

REAL ESTATE UNDER DEVELOPMENT

Development	Destination at Arista (a)	Flatirons Apartments
Location	Denver, Colorado	Denver, Colorado
Planned Units	325	296
Start Date	3Q 2021	4Q 2022
Projected Initial Occupancy	2Q 2023	4Q 2024
Projected Completion Date	4Q 2023	4Q 2024
Projected Stabilization date	1Q 2025	1Q 2026
Total Estimated Development Costs	$102,800	$119,800
% of Development Costs Left to Fund	0%	45%
Real Estate Under Development at December 31, 2023	$32,134	$66,231
% of Planned Units Delivered as of December 31, 2023	73.5%	0%
Leased % as of February 12, 2024 (b)	56.9%	N/A
Occupancy % as of February 12, 2024 (b)	53.1%	N/A

(a)During the year ended December 31, 2023, 239 of the 325 units were completed, resulting in $77,520 being reclassified from real estate under development to real estate held for investment. We will continue to classify this property as a development property since it is in lease-up and has not reached overall occupancy of 90%.

(b)Leased % and occupancy % are calculated using the leased or occupied units, as applicable, divided by the number of delivered units.

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INVESTMENT AND DEVELOPMENT ACTIVITY - (CONTINUED)

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES (a)

Property	Location	Units	Estimated Delivery Date	Total Construction Budget		Total Project Debt		IRT Equity Interest in JV		Remaining Expected IRT Investment		Carrying Value of IRT’s Investment
Metropolis at Innsbrook (b)	Richmond, VA	402	—	$	85,883	$	64,000	84.8	%	$	—	$	18,028
Views of Music City II /   The Crockett (c)	Nashville, TN	408	—	66,079		43,275		50.0	%	—		11,632
Lakeline Station	Austin, TX	378	Q4 2024	109,524		76,500		90.0	%	—		32,126
The Mustang	Dallas, TX	275	Q4 2024	109,583		79,447		85.0	%	—		27,258
Total		1,463		$	371,069	$	263,222			$	—	$	89,044

(a)Virtuoso was a former unconsolidated real estate entity that consists of 178 units in Huntsville, Alabama. We reassessed the accounting for Virtuoso upon an amendment to the joint venture agreement on August 1, 2023, and concluded that it is a voting interest entity and that we now control the major decisions that most significantly impact the joint venture through our 90% voting interest. Therefore, we began consolidating the assets and liabilities of the property and its operating results effective August 1, 2023.

(b)Metropolis at Innsbrook is an operating property consisting of 402 units. We have a call option which takes effect on June 1, 2024 to exercise our purchase option on Metropolis at Innsbrook when the property achieves 90% occupancy, which we anticipate will occur in October 2024.

(c)Views of Music City phase II had 88 units placed in service during Q4 2023 and became an operating property consisting of 209 total units as of October 2, 2023. The Crockett is an operating property consisting of 199 units delivered in Q1 2023. We have until April 4, 2024 and October 1, 2024 to exercise our purchase options on The Crockett and Views of Music City II, respectively.

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DEBT SUMMARY AS OF DECEMBER 31, 2023

Dollars in thousands

	Amount		Weighted Average Rate (d)		Type	Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)	$	234,479	6.6	%	Floating	2.1
Unsecured term loans (b)	600,000		6.5	%	Floating	3.5
Secured credit facilities (c)	586,286		4.2	%	Floating/Fixed	4.9
Mortgages	1,094,933		3.8	%	Fixed	4.3
Total Principal	2,515,698		4.8	%		4.0
Loan premiums (discounts), net	44,483
Unamortized deferred financing costs	(10,772)
Total Consolidated Debt	2,549,409
Market Equity Capitalization, at period end	3,528,996
Total Capitalization	$	6,078,405

(a)Unsecured revolver total capacity is $500,000, of which $234,479 was drawn as of December 31, 2023. The maturity date of borrowings under the unsecured revolver is January 31, 2026.

(b)Consists of a (i) $200,000 unsecured term loan with a maturity date of May 18, 2026 and a (ii) $400,000 unsecured term loan with a maturity date of January 28, 2028.

(c)Consists of a (i) $510,038 secured credit facility, three tranches of which, in an aggregate principal amount of $469,570, have a maturity date of August 1, 2028 and the fourth tranche of which, in the principal amount of $40,468, has a maturity date of March 1, 2030 and a (ii) $76,248 secured credit facility with a maturity date of July 1, 2030.

(d)Represents the weighted average of the contractual interest rates in effect as of quarter-end without regard to any interest rate swaps or collars. Our total weighted average effective interest rate during the quarter ended December 31, 2023, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization, discount accretion, and interest capitalization was 4.2%.

(e)As of December 31, 2023, we maintained the below hedges that have effectively fixed a portion of our floating rates debt.

Hedges:	Notional		Start	End	Swap Rate		Floor Rate		Cap Rate
Collar	$	100,000	11/17/2017	11/17/2024	—		1.25	%	2.00	%
Collar	$	150,000	10/17/2018	1/17/2024	—		2.25	%	2.50	%
Swap	$	150,000	6/17/2021	6/17/2026	2.18	%	—		—
Swap	$	150,000	5/17/2022	5/17/2027	0.99	%	—		—
Swap	$	200,000	3/17/2023	3/17/2030	3.39	%	—		—
Forward starting collar	$	100,000	1/17/2024	1/17/2028	—		1.50	%	2.50	%
Forward starting collar	$	100,000	11/17/2024	1/17/2028	—		1.50	%	2.50	%

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DEBT MATURITY, DEBT COVENANT AND UNENCUMBERED ASSET STATS

AS OF DECEMBER 31, 2023

Dollars in thousands

(a)Debt maturity schedule reflects actual as of December 31, 2023 and proforma maturities upon completion of our Portfolio Optimization and Deleveraging Strategy.

Debt Covenant Summary (b)

	Requirement	Actual	Compliance
Consolidated leverage ratio	≤ 60%	33.2%	Yes
Consolidated fixed charge coverage ratio	≥ 1.5x	2.59x	Yes
Unsecured leverage ratio	≤ 60%	25.4%	Yes

(b)For a complete listing of all debt covenants along with definitions of each covenant calculation see the Fourth Amended, Restated and Consolidated Credit Agreement, which is filed as Exhibit 10.1 of our Form 8-K filed on July 27, 2022.

Encumbered & Unencumbered Statistics (c)

	Total Units (d)	% of Total		Gross Assets		% of Total		Q4 2023 NOI (d)		% of Total
Unencumbered assets	18,164	52.8	%	$	3,530,736	50.7	%	$	55,395	53.3	%
Encumbered assets	16,267	47.2	%	3,429,818		49.3	%	48,616		46.7	%
	34,431	100.0	%	$	6,960,554	100.0	%	$	104,011	100.0	%

(c)Upon completion of our Portfolio Optimization and Deleveraging Strategy, we expect unencumbered assets to represent approximately 55.3% of our total units, 53.5% of our gross assets, and 55.7% of our total NOI.

(d)Excludes our development projects (Destination at Arista and Flatirons Apartments). See definitions at the end of this release.

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DEFINITIONS

Average Effective Monthly Rent per Unit

Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metric, when presented, reflects the average effective rent per month.

Average Occupancy

Average occupancy represents the average occupied units for the reporting period divided by the average of total units available for rent for the reporting period.

Development Property

A development property is a property that is either currently under development or is in lease-up prior to reaching overall occupancy of 90%.

EBITDA and Adjusted EBITDA

Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before certain other non-cash or non-operating gains or losses related to items such as loss on impairment (gain on sale) of real estate, debt extinguishments and acquisition related debt extinguishment expenses, casualty (gains) losses, merger and integration costs, income (loss) from investments in unconsolidated real estate entities, and restructuring costs. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

We believe that FFO and CFFO, each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, loss on impairment (gain on sale) of real estate and the cumulative effect of changes in accounting principles. While our calculation of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to FFO computations of such other REITs.

CFFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including depreciation and amortization of other items not included in FFO, and other non-cash or non-operating gains or losses related to items such as casualty (gains) losses, loan premium accretion and discount amortization, debt extinguishment costs, merger and integration costs, and restructuring costs from the determination of FFO.

Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we

27

believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.

Net Debt

Net debt, a non-GAAP financial measure, equals total consolidated debt less cash and cash equivalents and loan premiums and discounts. The following table provides a reconciliation of total consolidated debt to net debt (dollars in thousands).

	As of
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Total debt	$	2,549,409	$	2,715,710	$	2,650,805	$	2,628,632	$	2,631,645
Less: cash and cash equivalents	(22,851)		(17,216)		(14,349)		(12,448)		(16,084)
Less: loan discounts and premiums, net	(44,483)		(50,772)		(53,520)		(56,256)		(59,937)
Total net debt	$	2,482,075	$	2,647,722	$	2,582,936	$	2,559,928	$	2,555,624

We present net debt and net debt to Adjusted EBITDA because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.

Net Operating Income

We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expense, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expenses, net gains on sale of assets, merger and integration costs, and restructuring costs.

Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same-store and non same-store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.

28

A reconciliation from GAAP net income to NOI is provided below (dollars in thousands):

	For the Three Months Ended
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Net (loss) income	$	(41,654)	$	3,986	$	10,988	$	8,872	$	34,524
Other revenue	(316)		(232)		(354)		(239)		(306)
Property management expenses	6,660		7,232		6,818		6,371		6,593
General and administrative      expenses	5,043		3,660		5,910		8,154		5,739
Depreciation and amortization     expense	55,902		55,546		53,984		53,536		52,161
Casualty losses (gains), net	59		35		680		151		(1,690)
Interest expense	23,537		22,033		22,227		22,124		23,337
Loss on impairment (gain on sale)     of real estate assets, net	56,263		11,268		—		(985)		(17,044)
Loss on extinguishment of debt	124		—		—		—		—
Other loss (income), net	79		369		72		(93)		(57)
Loss (gain) from investments in      unconsolidated real estate entities	1,330		1,178		1,205		776		(242)
Merger and integration costs	—		—		—		—		2,028
Restructuring costs	—		—		—		3,213		—
NOI	$	107,027	$	105,075	$	101,530	$	101,880	$	105,043
Less: Non same-store portfolio NOI	11,120		11,296		10,454		11,097		12,175
Same-store portfolio NOI	$	95,907	$	93,779	$	91,076	$	90,783	$	92,868

Non Same-Store Properties and Non Same-Store Portfolio

Properties that did not meet the definition of a same-store property as of the beginning of the previous year.

Same-Store Properties and Same-Store Portfolio

We review our same-store portfolio at the beginning of each calendar year. Properties are added into the same-store portfolio if they were owned and not a development property at the beginning of the previous year. Properties that are held for sale or have been sold are excluded from the same-store portfolio.

Rent Premium on value add renovations

The rent premium reflects the per unit per month difference between the rental rate on the renovated unit excluding the impact of upfront concessions, if any, and the market rent for an unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures. We believe excluding the impact of upfront concessions from our rental rates when comparing to the market rental rates for unrenovated units makes the comparison most relevant and the resulting premium provides management with an indicator of the increased rent generated by the unit renovation.

Renovation Costs per Unit

Renovation costs per unit includes all costs to renovate the interior units and make certain exterior renovations, including clubhouses and amenities. Interior costs per unit are based on units leased. Exterior costs per unit are based on total units at the community. Excludes overhead costs to support and manage the value add program as those costs relate to the entire program and cannot be allocated to individual projects.

29

Return on Investment (“ROI”) on value add renovations

ROI is calculated using the Rent Premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit or the total renovation costs, as applicable. We use ROI on value add renovation projects to measure the profitability of a renovation project relative to other projects or relative to other uses of our capital.

Total Gross Assets

Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (dollars in thousands).

	As of
	Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
Total assets	$	6,280,175	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095
Plus: accumulated depreciation (a)	606,404		570,966		523,446		475,001		426,097
Plus: accumulated amortization	73,975		76,691		76,558		76,558		76,710
Total gross assets	$	6,960,554	$	7,225,447	$	7,117,404	$	7,045,306	$	7,034,902

(a)Includes accumulated depreciation associated with real estate held for sale, as applicable.

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XML

Cover	Feb. 14, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 14, 2024
Entity Registrant Name	Independence Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-36041
Entity Tax Identification Number	26-4567130
Entity Address, Address Line One	1835 Market Street
Entity Address, Address Line Two	Suite 2601
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	267
Local Phone Number	270-4800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	IRT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001466085