8-K - IRT - Equibles

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): July 31, 2024

_____________________________________________

Independence Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________

Maryland	001-36041	26-4567130
(State or other jurisdiction<br><br>of incorporation)	(Commission<br><br>File Number)	(I.R.S. Employer<br><br>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 July 31, 2024, we issued a press release announcing our financial results for the three and six months ended June 30, 2024. 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.
July 31, 2024	By:	/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

Document

Exhibit 99.1

Independence Realty Trust Announces Second Quarter 2024 Financial Results and

Increases Midpoint of Full Year 2024 Same Store NOI, EPS, and Core FFO Guidance Ranges

PHILADELPHIA – (BUSINESS WIRE) – July 31, 2024 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its second quarter 2024 financial results and raised the midpoint of its full year 2024 same store NOI, EPS, and Core FFO guidance ranges.

Second Quarter Highlights

•Net income available to common shares of $10.4 million for the quarter ended June 30, 2024 compared to $10.7 million for the quarter ended June 30, 2023.

•Earnings per diluted share of $0.05 for the quarter ended June 30, 2024 compared to $0.05 for the quarter ended June 30, 2023.

•Same-store portfolio net operating income (“NOI”) growth of 2.8% for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023.

•Core Funds from Operations (“CFFO”) of $63.6 million for the quarter ended June 30, 2024 compared to $63.7 million for the quarter ended June 30, 2023. CFFO per share was $0.28 for the second quarter of 2024, as compared to $0.28 for the second quarter of 2023.

•Adjusted EBITDA of $83.6 million for the quarter ended June 30, 2024 compared to $89.2 million for the quarter ended June 30, 2023.

•Value add program completed renovations at 378 units during the quarter ended June 30, 2024, achieving a weighted average return on investment during the quarter of 15.7%.

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

“Our results for the second quarter of 2024 highlight our strategy of driving occupancy, which was up 120 basis points year-over-year” said Scott Schaeffer, Chairman and CEO of IRT. “While industry-wide factors impacted our ability to achieve expected rental rate growth during the first half of this year, we stayed focused on resident retention and occupancy and delivered 3.6% revenue growth with 2.8% same store NOI growth. For the remainder of this year, we are increasing the mid-point of our full-year NOI and Core FFO guidance given our view of stable occupancy and our ability to drive lower operating expenses. Overall, we are confident in our team’s ability to achieve these results and believe IRT remains well-positioned in the multifamily sector due to our attractive portfolio which continues to see strong fundamentals.”

Same-Store Portfolio(1) Operating Results

	Three Months Ended June 30, 2024<br><br>Compared to<br><br>Three Months Ended June 30, 2023	Six Months Ended June 30, 2024 Compared to<br><br>Six Months Ended June 30, 2023
Rental and other property revenue	3.6% increase	3.5% increase
Property operating expenses	4.9% increase	5.0% increase
NOI	2.8% increase	2.6% increase
Portfolio average occupancy	120 bps increase to 95.4%	120 bps increase to 94.9%
Portfolio average rental rate	1.6% increase to $1,555	1.6% increase to $1,553
NOI Margin	40 bps decrease to 61.7%	60 bps decrease to 62.1%

(1)Same-store portfolio includes 108 properties, which represent 32,153 units.

Operating Metrics

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

	2Q 2024		July 2024(3)
Same-Store Portfolio(1)
Average Occupancy	95.4	%	95.2	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(1.0)	%	(3.3)	%	(5)
Renewal Leases	3.5	%	2.9	%	(5)
Blended	1.8	%	0.2	%	(5)
Resident Retention Rate	55.8	%	55.4	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	95.6	%	95.6	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(1.6)	%	(3.8)	%
Renewal Leases	3.4	%	2.9	%
Blended	1.6	%	0.1	%
Resident Retention Rate	55.3	%	56.0	%
Value Add (26 properties with Ongoing Value Add)
Average Occupancy	94.8	%	94.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases (all)	1.0	%	(2.2)	%
1st generation renovation leases (6)	6.3	%	5.5	%
Renewal Leases	3.5	%	3.0	%
Blended	2.7	%	0.5	%
Resident Retention Rate	57.3	%	53.8	%

(1)Same-store portfolio includes 108 properties, which represent 32,153 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)July 2024 average occupancy is through July 30, 2024. New, renewal, and blended lease rates, and resident retention are for leases commencing during July 2024 that were signed as of July 30, 2024.

(4)As of July 30, 2024, same-store portfolio occupancy was 95.6%, same-store portfolio excluding ongoing value add occupancy was 95.9%, and value add occupancy was 94.6%.

(5)For the full third quarter 2024, we expect effective rent growth for new leases to be -1.0% to 0.3% and renewal leases to be 4.25% to 4.75% resulting in blended effective rent growth of 1.6% to 3.0%.

(6)1st generation renovation leases are a subset of new leases at value add properties and represent the first new lease in a unit after a completed renovation.

Value Add Program

We completed renovations on 378 units during the quarter ended June 30, 2024, achieving a return on investment of 15.7%, with an average cost per unit renovated of $18,067, and an average monthly rent increase per unit of $236 over unrenovated comps. We completed renovations on 698 units during the six months ended June 30, 2024, achieving a return on investment of 16.7%, with an average cost per unit renovated of $18,099, and an average monthly rent increase per unit of $253 over unrenovated comps. See the Value Add Summary page of our supplemental information for additional information on our projects’ life to date as of June 30, 2024.

Investment Activity

Properties Held for Sale and Dispositions

As of June 30, 2024, we had one property classified as held for sale and had sold one property during the three months ended June 30, 2024.

•Reserve at Creekside, Chattanooga, Tennessee: Sales of properties under our Portfolio Optimization and Deleveraging Strategy concluded with the sale of our tenth and final property on April 30, 2024, for a gross sales price of $28.5 million, and proceeds from the sale were used to pay outstanding mortgage debt in the amount of $15.0 million, and $13.3 million in borrowings under our unsecured revolver. In total, the Portfolio Optimization and Deleveraging Strategy resulted in the sale of ten properties for an aggregate gross sales price of $525.3 million and proceeds from the sales were used to repay $517.1 million of debt.

•Tapestry Park, Birmingham Alabama: During the three months ended March 31, 2024, in connection with our capital recycling program, we identified this property as held for sale and recognized a loss on impairment of $15.1 million. As of June 30, 2024, this property continued to be held for sale and was subsequently sold on July 17, 2024, for a gross sales price of $70.8 million. We expect to use the proceeds from this sale as part of a 1031 exchange to acquire a property in Tampa, Florida during the third quarter 2024.

Capital Expenditures

For the three months ended June 30, 2024, recurring capital expenditures for the total portfolio were $8.3 million, or $254 per unit, value add and non-recurring expenditures for the total portfolio were $24.8 million and development expenditures for the total portfolio were $15.4 million, respectively. For the six months ended June 30, 2024, recurring capital expenditures for the total portfolio were $13.5 million, or $412 per unit, value add and non-recurring expenditures for the total portfolio were $46.7 million and development expenditures for the total portfolio were $26.4 million, respectively.

Dividend Distribution

On June 10, 2024, our Board of Directors declared a quarterly dividend of $0.16 per share of common stock. The second quarter dividend was paid on July 19, 2024 to stockholders of record at the close of business on June 28, 2024.

2024 EPS, FFO and CFFO Guidance

We increased the midpoint of our 2024 earnings per diluted share, FFO, CFFO per share, and same-store NOI guidance ranges, while updating our interest expense, transaction volume, and capital expenditure guidance. Earnings per diluted share is now projected to be in the range of $0.36 to $0.38. 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.

	Previous Guidance				Current Guidance					Change at Midpoint
2024 Full Year EPS and CFFO Guidance(1)(2)	Low		High		Low		High
Earnings per share	$	0.34	$	0.38	$	0.36	$	0.38		$	0.01
Adjustments:
Depreciation and amortization	0.87		0.87		0.87		0.87			—
Gain on sale of real estate assets(3)	(0.05)		(0.05)		(0.05)		(0.05)		—	—
FFO per share	1.16		1.20		1.18		1.20			0.01
Loan (premium accretion) discount amortization, net	(0.04)		(0.04)		(0.04)		(0.04)			—
CFFO per share	$	1.12	$	1.16	$	1.14	$	1.16		$	0.01

(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 the gains on sale (losses on impairment) recognized during the first quarter of 2024.

2024 Guidance Assumptions

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

Same-Store Portfolio	Previous 2024 Outlook(1)	Current 2024 Outlook(1)	Change at Midpoint
Number of properties/units	108 properties / 32,153 units	108 properties / 32,153 units	—
Property revenue growth	3.0% to 4.5%	3.0% to 3.3%	(0.6)%
Controllable operating expense growth	4.9% to 5.9%	4.0% to 4.5%	(1.15)%
Real estate tax and insurance expense growth	6.1% to 7.1%	0.5% to 1.7%	(5.5)%
Total operating expense growth	5.4% to 6.4%	2.6% to 3.4%	(2.9)%
NOI growth	1.0% to 4.0%	2.7% to 3.7%	0.7%
Corporate Expenses
General and administrative & property<br> management expenses	$51.5 million to $54.5 million	$52.5 million to $53.5 million	—
Interest expense(2)	$83.0 million to $85.0 million	$83.0 million to $84.0 million	($0.5) million
Transaction/Investment Volume(3)
Acquisition volume	$0 to $40 million	$80 million to $82 million	$61.0 million
Disposition volume	$392 million to $396 million	$395 million	$1.0 million
Capital Expenditures
Recurring	$21.0 million to $23.0 million	$21.0 million to $23.0 million	—
Value add & non-recurring	$83.0 million to $85.0 million	$76.0 million to $78.0 million	($7.0) million
Development	$54.5 million to $55.5 million	$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)Acquisition volume reflects one property in Tampa, Florida that we expect to acquire in the third quarter of 2024. Disposition volume includes $324.6 million related to the sale of six properties sold during the six months ended June 30, 2024, and $70.8 million related to one property held for sale as of June 30, 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”.

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, August 1, 2024 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.888.440.3307, 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 replay of the conference call can also be accessed telephonically until Thursday, August 8, 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.

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 anticipated enhancements to our financial results and future growth from our Portfolio Optimization and Deleveraging 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, 2023, 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.

Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

Dollars in thousands, except per share data

(unaudited)

	For the Three Months Ended
	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$10,354	$17,577	$(40,515)	$3,930	$10,709
Earnings (loss) per share -- diluted	$0.05	$0.08	$(0.18)	$0.02	$0.05
Rental and other property revenue	$158,104	$160,331	$166,730	$168,375	$163,601
Property operating expenses	$60,883	$59,971	$59,703	$63,300	$62,071
NOI	$97,221	$100,360	$107,027	$105,075	$101,530
NOI margin	61.5%	62.6%	64.2%	62.4%	62.1%
Adjusted EBITDA	$83,609	$84,683	$95,640	$94,415	$89,156
FFO per share	$0.28	$0.27	$0.31	$0.31	$0.28
CFFO per share	$0.28	$0.27	$0.30	$0.30	$0.28
Dividends per share	$0.16	$0.16	$0.16	$0.16	$0.16
CFFO payout ratio	57.1%	59.3%	53.3%	53.3%	57.1%
Portfolio Data:
Total gross assets	$6,684,029	$6,673,589	$6,960,554	$7,225,447	$7,117,404
Total number of operating properties (a)	110	111	116	120	119
Total units (a)	32,685	32,877	34,431	35,427	35,249
Portfolio period end occupancy (a)	95.5%	95.0%	94.6%	94.4%	94.6%
Portfolio average occupancy (a)	95.3%	94.4%	94.4%	94.6%	94.1%
Portfolio average effective monthly rent, per unit (a)	$1,554	$1,550	$1,558	$1,556	$1,538
Same-store portfolio period end occupancy (b)	95.5%	95.0%	94.7%	94.4%	94.6%
Same-store portfolio average occupancy (b)	95.4%	94.4%	94.5%	94.5%	94.2%
Same-store portfolio average effective<br> monthly rent, per unit (b)	$1,555	$1,551	$1,555	$1,548	$1,531
Capitalization:
Total debt (c)	$2,252,559	$2,277,098	$2,549,409	$2,715,710	$2,650,805
Common share price, period end	$18.74	$16.13	$15.30	$14.07	$18.22
Market equity capitalization	$4,330,137	$3,726,224	$3,528,996	$3,245,135	$4,202,342
Total market capitalization	$6,582,696	$6,003,322	$6,078,405	$5,960,845	$6,853,147
Total debt/total gross assets	33.7%	34.1%	36.6%	37.6%	37.2%
Net debt to Adjusted EBITDA (d)	6.5x	6.7x	6.7x	7.0x	7.2x
Interest coverage	4.8x	4.1x	4.1x	4.3x	4.0x
Common shares and OP Units:
Shares outstanding	225,122,235	225,070,396	224,706,731	224,695,566	224,697,889
OP units outstanding	5,941,643	5,941,643	5,946,571	5,946,571	5,946,571
Common shares and OP units outstanding	231,063,878	231,012,039	230,653,302	230,642,137	230,644,460
Weighted average common shares and OP units	230,734,872	230,570,707	230,452,570	230,444,945	230,369,086

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

(b)Same-store portfolio consists of 108 properties, which represent 32,153 units.

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

(d)Reflects net debt to Adjusted EBITDA, which is annualized for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended June 30, 2024, net debt to Adjusted EBITDA excluding adjustments for timing of acquisitions and dispositions was 6.6x, 6.5x, 6.5x, 7.0x, and 7.2x, respectively.

Schedule II

Independence Realty Trust, Inc.

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

Dollars in thousands, except per share data

(unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended<br> June 30,
	2024		2023		2024		2023
Funds From Operations (FFO):
Net income	$	10,555	$	10,988	$	28,515	$	19,861
Add-Back (Deduct):
Real estate depreciation and amortization	53,757		53,701		107,149		106,989
Our share of real estate depreciation and amortization<br> from investments in unconsolidated real estate entities	598		575		1,196		994
Loss on impairment (gain on sale) of real estate assets, net,<br> excluding prepayment gains	336		—		(9,273)		(314)
FFO	$	65,246	$	65,264	$	127,587	$	127,530
FFO per share	$	0.28	$	0.28	$	0.55	$	0.55
CORE Funds From Operations (CFFO):
FFO	$	65,246	$	65,264	$	127,587	$	127,530
Add-Back (Deduct):
Other depreciation and amortization	370		283		701		531
Casualty losses	465		680		2,767		831
Loan (premium accretion) discount amortization, net	(2,283)		(2,737)		(4,679)		(5,493)
Prepayment (gains) penalties on asset dispositions	(184)		—		(1,105)		(670)
Gain on extinguishment of debt	—		—		(203)		—
Other expense (income), net	—		192		1		234
Restructuring costs	—		—		—		3,213
CFFO	$	63,614	$	63,682	$	125,069	$	126,176
CFFO per share	$	0.28	$	0.28	$	0.54	$	0.55
Weighted-average shares and units outstanding	230,734,872		230,369,086		230,652,876		230,278,208

Schedule III

Independence Realty Trust, Inc.

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

Dollars in thousands

(unaudited)

	For the Three Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Net income (loss)	$	10,555	$	17,961	$	(41,654)	$	3,986	$	10,988
Other revenue	(298)		(203)		(316)		(232)		(354)
Property management expenses	7,666		7,499		6,660		7,232		6,818
General and administrative<br> expenses	6,244		8,381		5,043		3,660		5,910
Depreciation and amortization<br> expense	54,127		53,721		55,902		55,546		53,984
Casualty losses	465		2,301		59		35		680
Interest expense	17,460		20,603		23,537		22,033		22,227
Loss on impairment (gain on sale)<br> of real estate assets, net	152		(10,530)		56,263		11,268		—
(Gain) loss on extinguishment of debt	—		(203)		124		—		—
Other loss (income), net	—		1		79		369		72
Loss from investments in<br> unconsolidated real estate entities	850		829		1,330		1,178		1,205
NOI	$	97,221	$	100,360	$	107,027	$	105,075	$	101,530
Less: Non same-store portfolio NOI	2,293		5,989		9,863		10,123		9,155
Same-store portfolio NOI	$	94,928	$	94,371	$	97,164	$	94,952	$	92,375

(a)Same-store portfolio consists of 108 properties, which represent 32,153 units.

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
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Net income (loss)	$	10,555	$	17,961	$	(41,654)	$	3,986	$	10,988
Add-Back (Deduct):
Interest expense	17,460		20,603		23,537		22,033		22,227
Depreciation and amortization	54,127		53,721		55,902		55,546		53,984
Casualty losses	465		2,301		59		35		680
Loss on impairment (gain on sale) of<br> real estate assets, net	152		(10,530)		56,263		11,268		—
(Gain) loss on extinguishment of debt	—		(203)		124		—		—
Loss from investments in<br> unconsolidated real estate entities	850		829		1,330		1,178		1,205
Other loss (income), net	—		1		79		369		72
Adjusted EBITDA	$	83,609	$	84,683	$	95,640	$	94,415	$	89,156
INTEREST COST:
Interest expense	$	17,460	$	20,603	$	23,537	$	22,033	$	22,227
INTEREST COVERAGE:	4.8x		4.1x		4.1x		4.3x		4.0x
	For the Three Months Ended June 30,				For the Six Months Ended June 30,
---	---	---	---	---	---	---	---	---
	2024		2023		2024		2023
Net income (loss)	$	10,555	$	10,988	$	28,515	$	19,861
Add-Back (Deduct):
Interest expense	17,460		22,227		38,063		44,351
Depreciation and amortization	54,127		53,984		107,850		107,520
Casualty losses	465		680		2,767		831
Loss on impairment (gain on sale) of<br> real estate assets, net	152		—		(10,378)		(985)
Gain on extinguishment of debt	—		—		(203)		—
Loss from investments in unconsolidated<br> real estate entities	850		1,205		1,679		1,981
Other loss (income), net	—		72		1		(21)
Restructuring costs	—		—		—		3,213
Adjusted EBITDA	$	83,609	$	89,156	$	168,294	$	176,751
INTEREST COST:
Interest expense	$	17,460	$	22,227	$	38,063	$	44,351
INTEREST COVERAGE:	4.8x		4.0x		4.4x		4.0x

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, 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, 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 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
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Total debt	$	2,252,559	$	2,277,098	$	2,549,409	$	2,715,710	$	2,650,805
Less: cash and cash equivalents	(21,034)		(21,275)		(22,852)		(17,216)		(14,349)
Less: loan discounts and premiums, net	(37,253)		(39,804)		(44,483)		(50,772)		(53,520)
Total net debt	$	2,194,272	$	2,216,019	$	2,482,074	$	2,647,722	$	2,582,936

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, 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.

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
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Total assets	$	5,940,261	$	5,972,848	$	6,280,175	$	6,577,790	$	6,517,400
Plus: accumulated depreciation (a)	674,236		630,743		606,404		570,966		523,446
Plus: accumulated amortization	69,532		69,998		73,975		76,691		76,558
Total gross assets	$	6,684,029	$	6,673,589	$	6,960,554	$	7,225,447	$	7,117,404

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

Document

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	11
Balance Sheets	12
Statements of Operations, FFO & CFFO
Trailing Five Quarters	13
Three and Six MonthsEndedJune 30, 2024and2023	14
Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing Five Quarters	15
Three and Six MonthsEndedJune 30, 2024and2023	15
Same-Store Portfolio Net Operating Income and NOI Bridge
Trailing Five Quarters	16
Three and Six MonthsEndedJune 30, 2024and2023	17
Same-Store Portfolio Net Operating Income by Market
ThreeMonths EndedJune 30, 2024and2023	18
Six Months EndedJune 30, 2024and2023	19
Property Portfolio NOI Exposure by Market	20
Value Add Summary	21
Investment & Development Activity	22
Debt Summary	24
Debt Maturity, Debt Covenant & Unencumbered Asset Statistics	24
Definitions	26

Independence Realty Trust

June 30, 2024

Company Information:

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

Forward-Looking Statements

Independence Realty Trust Announces Second Quarter 2024 Financial Results and

Increases Midpoint of Full Year 2024 Same Store NOI, EPS, and Core FFO Guidance Ranges

Second Quarter Highlights

•Net income available to common shares of $10.4 million for the quarter ended June 30, 2024 compared to $10.7 million for the quarter ended June 30, 2023.

•Earnings per diluted share of $0.05 for the quarter ended June 30, 2024 compared to $0.05 for the quarter ended June 30, 2023.

•Same-store portfolio net operating income (“NOI”) growth of 2.8% for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023.

•Adjusted EBITDA of $83.6 million for the quarter ended June 30, 2024 compared to $89.2 million for the quarter ended June 30, 2023.

•Value add program completed renovations at 378 units during the quarter ended June 30, 2024, achieving a weighted average return on investment during the quarter of 15.7%.

Management Commentary

Same-Store Portfolio(1) Operating Results

	Three Months Ended June 30, 2024<br><br>Compared to<br><br>Three Months Ended June 30, 2023	Six Months Ended June 30, 2024 Compared to<br><br>Six Months Ended June 30, 2023
Rental and other property revenue	3.6% increase	3.5% increase
Property operating expenses	4.9% increase	5.0% increase
NOI	2.8% increase	2.6% increase
Portfolio average occupancy	120 bps increase to 95.4%	120 bps increase to 94.9%
Portfolio average rental rate	1.6% increase to $1,555	1.6% increase to $1,553
NOI Margin	40 bps decrease to 61.7%	60 bps decrease to 62.1%

(1)Same-store portfolio includes 108 properties, which represent 32,153 units.

Operating Metrics

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

	2Q 2024		July 2024(3)
Same-Store Portfolio(1)
Average Occupancy	95.4	%	95.2	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(1.0)	%	(3.3)	%	(5)
Renewal Leases	3.5	%	2.9	%	(5)
Blended	1.8	%	0.2	%	(5)
Resident Retention Rate	55.8	%	55.4	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	95.6	%	95.6	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	(1.6)	%	(3.8)	%
Renewal Leases	3.4	%	2.9	%
Blended	1.6	%	0.1	%
Resident Retention Rate	55.3	%	56.0	%
Value Add (26 properties with Ongoing Value Add)
Average Occupancy	94.8	%	94.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases (all)	1.0	%	(2.2)	%
1st generation renovation leases (6)	6.3	%	5.5	%
Renewal Leases	3.5	%	3.0	%
Blended	2.7	%	0.5	%
Resident Retention Rate	57.3	%	53.8	%

(1)Same-store portfolio includes 108 properties, which represent 32,153 units.

(3)July 2024 average occupancy is through July 30, 2024. New, renewal, and blended lease rates, and resident retention are for leases commencing during July 2024 that were signed as of July 30, 2024.

(4)As of July 30, 2024, same-store portfolio occupancy was 95.6%, same-store portfolio excluding ongoing value add occupancy was 95.9%, and value add occupancy was 94.6%.

(6)1st generation renovation leases are a subset of new leases at value add properties and represent the first new lease in a unit after a completed renovation.

Value Add Program

Investment Activity

Properties Held for Sale and Dispositions

As of June 30, 2024, we had one property classified as held for sale and had sold one property during the three months ended June 30, 2024.

Capital Expenditures

Dividend Distribution

2024 EPS, FFO and CFFO Guidance

	Previous Guidance				Current Guidance					Change at Midpoint
2024 Full Year EPS and CFFO Guidance(1)(2)	Low		High		Low		High
Earnings per share	$	0.34	$	0.38	$	0.36	$	0.38		$	0.01
Adjustments:
Depreciation and amortization	0.87		0.87		0.87		0.87			—
Gain on sale of real estate assets(3)	(0.05)		(0.05)		(0.05)		(0.05)		—	—
FFO per share	1.16		1.20		1.18		1.20			0.01
Loan (premium accretion) discount amortization, net	(0.04)		(0.04)		(0.04)		(0.04)			—
CFFO per share	$	1.12	$	1.16	$	1.14	$	1.16		$	0.01

(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 the gains on sale (losses on impairment) recognized during the first quarter of 2024.

2024 Guidance Assumptions

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

Same-Store Portfolio	Previous 2024 Outlook(1)	Current 2024 Outlook(1)	Change at Midpoint
Number of properties/units	108 properties / 32,153 units	108 properties / 32,153 units	—
Property revenue growth	3.0% to 4.5%	3.0% to 3.3%	(0.6)%
Controllable operating expense growth	4.9% to 5.9%	4.0% to 4.5%	(1.15)%
Real estate tax and insurance expense growth	6.1% to 7.1%	0.5% to 1.7%	(5.5)%
Total operating expense growth	5.4% to 6.4%	2.6% to 3.4%	(2.9)%
NOI growth	1.0% to 4.0%	2.7% to 3.7%	0.7%
Corporate Expenses
General and administrative & property<br> management expenses	$51.5 million to $54.5 million	$52.5 million to $53.5 million	—
Interest expense(2)	$83.0 million to $85.0 million	$83.0 million to $84.0 million	($0.5) million
Transaction/Investment Volume(3)
Acquisition volume	$0 to $40 million	$80 million to $82 million	$61.0 million
Disposition volume	$392 million to $396 million	$395 million	$1.0 million
Capital Expenditures
Recurring	$21.0 million to $23.0 million	$21.0 million to $23.0 million	—
Value add & non-recurring	$83.0 million to $85.0 million	$76.0 million to $78.0 million	($7.0) million
Development	$54.5 million to $55.5 million	$54.5 million to $55.5 million	—

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

Conference Call

Supplemental Information

About Independence Realty Trust, Inc.

Forward-Looking Statements

FINANCIAL & OPERATING HIGHLIGHTS

Dollars in thousands, except per share data

	For the Three Months Ended
	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$10,354	$17,577	$(40,515)	$3,930	$10,709
Earnings (loss) per share -- diluted	$0.05	$0.08	$(0.18)	$0.02	$0.05
Rental and other property revenue	$158,104	$160,331	$166,730	$168,375	$163,601
Property operating expenses	$60,883	$59,971	$59,703	$63,300	$62,071
NOI	$97,221	$100,360	$107,027	$105,075	$101,530
NOI margin	61.5%	62.6%	64.2%	62.4%	62.1%
Adjusted EBITDA	$83,609	$84,683	$95,640	$94,415	$89,156
FFO per share	$0.28	$0.27	$0.31	$0.31	$0.28
CFFO per share	$0.28	$0.27	$0.30	$0.30	$0.28
Dividends per share	$0.16	$0.16	$0.16	$0.16	$0.16
CFFO payout ratio	57.1%	59.3%	53.3%	53.3%	57.1%
Portfolio Data:
Total gross assets	$6,684,029	$6,673,589	$6,960,554	$7,225,447	$7,117,404
Total number of operating properties (a)	110	111	116	120	119
Total units (a)	32,685	32,877	34,431	35,427	35,249
Portfolio period end occupancy (a)	95.5%	95.0%	94.6%	94.4%	94.6%
Portfolio average occupancy (a)	95.3%	94.4%	94.4%	94.6%	94.1%
Portfolio average effective monthly rent, per unit (a)	$1,554	$1,550	$1,558	$1,556	$1,538
Same-store portfolio period end occupancy (b)	95.5%	95.0%	94.7%	94.4%	94.6%
Same-store portfolio average occupancy (b)	95.4%	94.4%	94.5%	94.5%	94.2%
Same-store portfolio average effective<br> monthly rent, per unit (b)	$1,555	$1,551	$1,555	$1,548	$1,531
Capitalization:
Total debt (c)	$2,252,559	$2,277,098	$2,549,409	$2,715,710	$2,650,805
Common share price, period end	$18.74	$16.13	$15.30	$14.07	$18.22
Market equity capitalization	$4,330,137	$3,726,224	$3,528,996	$3,245,135	$4,202,342
Total market capitalization	$6,582,696	$6,003,322	$6,078,405	$5,960,845	$6,853,147
Total debt/total gross assets	33.7%	34.1%	36.6%	37.6%	37.2%
Net debt to Adjusted EBITDA (d)	6.5x	6.7x	6.7x	7.0x	7.2x
Interest coverage	4.8x	4.1x	4.1x	4.3x	4.0x
Common shares and OP Units:
Shares outstanding	225,122,235	225,070,396	224,706,731	224,695,566	224,697,889
OP units outstanding	5,941,643	5,941,643	5,946,571	5,946,571	5,946,571
Common shares and OP units outstanding	231,063,878	231,012,039	230,653,302	230,642,137	230,644,460
Weighted average common shares and OP units	230,734,872	230,570,707	230,452,570	230,444,945	230,369,086

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

(b)Same-store portfolio consists of 108 properties, which represent 32,153 units.

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

BALANCE SHEETS

Dollars in thousands, except per share data

	As of
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Assets:
Real estate held for investment, at cost	$	6,218,019	$	6,183,009	$	6,259,212	$	6,754,022	$	6,610,233
Less: accumulated depreciation	(667,681)		(622,713)		(582,760)		(567,200)		(519,680)
Real estate held for investment, net	5,550,338		5,560,296		5,676,452		6,186,822		6,090,553
Real estate held for sale	69,829		98,603		296,334		75,392		86,576
Real estate under development	115,196		109,338		98,365		83,547		121,733
Cash and cash equivalents	21,034		21,275		22,852		17,216		14,349
Restricted cash	26,364		20,625		27,880		31,772		28,163
Investment in unconsolidated real estate entities	90,347		89,487		89,044		87,592		99,968
Other assets	28,731		34,379		39,245		41,926		31,799
Derivative assets	38,422		38,845		29,937		53,258		44,259
Intangible assets, net	—		—		66		265		—
Total assets	$	5,940,261	$	5,972,848	$	6,280,175	$	6,577,790	$	6,517,400
Liabilities and Equity:
Indebtedness, net	$	2,202,961	$	2,212,273	$	2,426,788	$	2,675,117	$	2,609,903
Indebtedness associated with real estate held<br> for sale, net	49,598		64,825		122,621		40,593		40,902
Accounts payable and accrued expenses	102,040		83,678		109,074		138,549		115,664
Accrued interest payable	6,795		7,145		7,917		8,275		7,986
Dividends payable	36,906		36,896		36,858		36,858		36,856
Other liabilities	8,421		8,928		9,723		10,642		11,172
Total liabilities	2,406,721		2,413,745		2,712,981		2,910,034		2,822,483
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share	—		—		—		—		—
Common shares, $0.01 par value per share	2,251		2,251		2,247		2,247		2,247
Additional paid in capital	3,754,756		3,753,833		3,751,942		3,751,001		3,754,839
Accumulated other comprehensive income	34,380		34,501		25,513		47,910		38,823
Accumulated deficit	(392,627)		(367,015)		(348,405)		(271,982)		(239,972)
Total shareholders' equity	3,398,760		3,423,570		3,431,297		3,529,176		3,555,937
Noncontrolling Interests	134,780		135,533		135,897		138,580		138,980
Total equity	3,533,540		3,559,103		3,567,194		3,667,756		3,694,917
Total liabilities and equity	$	5,940,261	$	5,972,848	$	6,280,175	$	6,577,790	$	6,517,400

STATEMENTS OF OPERATIONS, FFO & CFFO

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

	For the Three Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Revenue:
Rental and other property revenue	$	158,104	$	160,331	$	166,730	$	168,375	$	163,601
Other revenue	298		203		316		232		354
Total revenue	158,402		160,534		167,046		168,607		163,955
Expenses:
Property operating expenses	60,883		59,971		59,703		63,300		62,071
Property management expenses	7,666		7,499		6,660		7,232		6,818
General and administrative expenses (a)	6,244		8,381		5,043		3,660		5,910
Depreciation and amortization expense	54,127		53,721		55,902		55,546		53,984
Casualty losses	465		2,301		59		35		680
Total expenses	129,385		131,873		127,367		129,773		129,463
Interest expense	(17,460)		(20,603)		(23,537)		(22,033)		(22,227)
(Loss on impairment) gain on sale of real estate<br> assets, net	(152)		10,530		(56,263)		(11,268)		—
Gain (loss) on extinguishment of debt	—		203		(124)		—		—
Other (loss) income, net	—		(1)		(79)		(369)		(72)
(Loss) gain from investments in unconsolidated<br> real estate entities	(850)		(829)		(1,330)		(1,178)		(1,205)
Net income (loss)	$	10,555	$	17,961	$	(41,654)	$	3,986	$	10,988
(Income) loss allocated to noncontrolling interests	(201)		(384)		1,139		(56)		(279)
Net income (loss) available to common shares	$	10,354	$	17,577	$	(40,515)	$	3,930	$	10,709
Earnings (loss) per share - basic	$	0.05	$	0.08	$	(0.18)	$	0.02	$	0.05
Weighted-average shares outstanding - Basic	224,793,229		224,627,115		224,505,999		224,498,374		224,422,515
Earnings (loss) per share - diluted	$	0.05	$	0.08	$	(0.18)	$	0.02	$	0.05
Weighted-average shares outstanding - Diluted	225,418,825		225,226,270		224,505,999		225,140,555		225,073,890
Funds From Operations (FFO):
Net income (loss)	$	10,555	$	17,961	$	(41,654)	$	3,986	$	10,988
Add-Back (Deduct):
Real estate depreciation and amortization	53,757		53,390		55,510		55,217		53,701
Our share of real estate depreciation and<br> amortization from investments in unconsolidated<br> real estate entities	598		598		636		486		575
Loss on impairment (gain on sale) of real estate<br> assets, net, excluding prepayment gains	336		(9,609)		57,492		11,268		—
FFO	$	65,246	$	62,340	$	71,984	$	70,957	$	65,264
FFO per share	$	0.28	$	0.27	$	0.31	$	0.31	$	0.28
CORE Funds From Operations (CFFO):
FFO	$	65,246	$	62,340	$	71,984	$	70,957	$	65,264
Add-Back (Deduct):
Other depreciation and amortization	370		331		391		329		283
Casualty losses	465		2,301		59		35		680
Loan (premium accretion) discount amortization,<br> net	(2,283)		(2,395)		(2,659)		(2,747)		(2,737)
Prepayment (gains) penalties on asset dispositions	(184)		(921)		(1,229)		—		—
(Gain) loss on extinguishment of debt	—		(203)		124		—		—
Other expense (income), net	—		1		79		429		192
CFFO	$	63,614	$	61,454	$	68,749	$	69,003	$	63,682
CFFO per share	$	0.28	$	0.27	$	0.30	$	0.30	$	0.28
Weighted-average shares and units<br> outstanding	230,734,872		230,570,707		230,452,570		230,444,945		230,369,086

(a)Included in the three months ended March 31, 2024 is $2.5 million of stock compensation expense recorded with respect to stock awards granted to retirement eligible employees.

STATEMENTS OF OPERATIONS, FFO & CFFO

(Dollars in thousands, except per share data)

	For the Three Months Ended June 30,				For the Six Months Ended<br> June 30,
	2024		2023		2024		2023
Revenue:
Rental and other property revenue	$	158,104	$	163,601	$	318,436	$	324,736
Other revenue	298		354		501		594
Total revenue	158,402		163,955		318,937		325,330
Expenses:
Property operating expenses	60,883		62,071		120,854		121,327
Property management expenses	7,666		6,818		15,165		13,189
General and administrative expenses	6,244		5,910		14,624		14,063
Depreciation and amortization expense	54,127		53,984		107,850		107,520
Casualty losses	465		680		2,767		831
Total expenses	129,385		129,463		261,260		256,930
Interest expense	(17,460)		(22,227)		(38,063)		(44,351)
(Loss on impairment) gain on sale of real estate assets, net	(152)		—		10,378		985
Gain on extinguishment of debt	—		—		203		—
Other (loss) income, net	—		(72)		(1)		21
Loss from investments in unconsolidated real estate entities	(850)		(1,205)		(1,679)		(1,981)
Restructuring costs	—		—		—		(3,213)
Net income	10,555		10,988		28,515		19,861
Income allocated to noncontrolling interests	(201)		(279)		(585)		(503)
Net income available to common shares	$	10,354	$	10,709	$	27,930	$	19,358
Earnings per share - basic	$	0.05	$	0.05	$	0.12	$	0.09
Weighted-average shares outstanding - Basic	224,793,229		224,422,515		224,710,259		224,325,246
Earnings per share - diluted	$	0.05	$	0.05	$	0.12	$	0.09
Weighted-average shares outstanding - Diluted	225,418,825		225,073,890		225,403,082		225,088,261
Funds From Operations (FFO):
Net income	$	10,555	$	10,988	$	28,515	$	19,861
Add-Back (Deduct):
Real estate depreciation and amortization	53,757		53,701		107,149		106,989
Our share of real estate depreciation and amortization<br> from investments in unconsolidated real estate entities	598		575		1,196		994
Loss on impairment (gain on sale) of real estate assets, net,<br> excluding prepayment gains	336		—		(9,273)		(314)
FFO	$	65,246	$	65,264	$	127,587	$	127,530
FFO per share	$	0.28	$	0.28	$	0.55	$	0.55
CORE Funds From Operations (CFFO):
FFO	$	65,246	$	65,264	$	127,587	$	127,530
Add-Back (Deduct):
Other depreciation and amortization	370		283		701		531
Casualty losses	465		680		2,767		831
Loan (premium accretion) discount amortization, net	(2,283)		(2,737)		(4,679)		(5,493)
Prepayment (gains) penalties on asset dispositions	(184)		—		(1,105)		(670)
Gain on extinguishment of debt	—		—		(203)		—
Other expense (income), net	—		192		1		234
Restructuring costs	—		—		—		3,213
CFFO	$	63,614	$	63,682	$	125,069	$	126,176
CFFO per share	$	0.28	$	0.28	$	0.54	$	0.55
Weighted-average shares and units outstanding	230,734,872		230,369,086		230,652,876		230,278,208

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

	Three Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Net income (loss)	$	10,555	$	17,961	$	(41,654)	$	3,986	$	10,988
Add-Back (Deduct):
Interest expense	17,460		20,603		23,537		22,033		22,227
Depreciation and amortization	54,127		53,721		55,902		55,546		53,984
Casualty losses	465		2,301		59		35		680
Loss on impairment (gain on sale) of<br> real estate assets, net	152		(10,530)		56,263		11,268		—
(Gain) loss on extinguishment of debt	—		(203)		124		—		—
Loss from investments in<br> unconsolidated real estate entities	850		829		1,330		1,178		1,205
Other loss (income), net	—		1		79		369		72
Adjusted EBITDA	$	83,609	$	84,683	$	95,640	$	94,415	$	89,156
INTEREST COST:
Interest expense	$	17,460	$	20,603	$	23,537	$	22,033	$	22,227
INTEREST COVERAGE:	4.8x		4.1x		4.1x		4.3x		4.0x
	For the Three Months Ended June 30,				For the Six Months Ended June 30,
---	---	---	---	---	---	---	---	---
	2024		2023		2024		2023
Net income (loss)	$	10,555	$	10,988	$	28,515	$	19,861
Add-Back (Deduct):
Interest expense	17,460		22,227		38,063		44,351
Depreciation and amortization	54,127		53,984		107,850		107,520
Casualty losses	465		680		2,767		831
Loss on impairment (gain on sale) of real estate assets, net	152		—		(10,378)		(985)
Gain on extinguishment of debt	—		—		(203)		—
Loss from investments in unconsolidated real estate entities	850		1,205		1,679		1,981
Other loss (income), net	—		72		1		(21)
Restructuring costs	—		—		—		3,213
Adjusted EBITDA	$	83,609	$	89,156	$	168,294	$	176,751
INTEREST COST:
Interest expense	$	17,460	$	22,227	$	38,063	$	44,351
INTEREST COVERAGE:	4.8x		4.0x		4.4x		4.0x

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
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Revenue:
Rental and other property revenue	$	153,969	$	150,618	$	150,903	$	152,138	$	148,645
Property Operating Expenses:
Real estate taxes	18,626		18,970		18,463		18,503		18,576
Property insurance	4,014		4,150		4,255		4,075		3,600
Personnel expenses	12,806		12,199		11,741		12,007		11,745
Utilities	7,460		7,713		7,419		7,719		7,063
Repairs and maintenance	6,495		4,825		3,407		5,761		5,997
Contract services	5,886		5,101		5,254		5,608		5,941
Advertising expenses	2,065		1,596		1,616		1,915		1,592
Other expenses	1,689		1,693		1,584		1,598		1,756
Total property operating expenses	59,041		56,247		53,739		57,186		56,270
Same-store portfolio NOI	$	94,928	$	94,371	$	97,164	$	94,952	$	92,375	Same-store portfolio NOI margin	61.7	%	62.7	%	64.4	%	62.4	%	62.1	%
---	---	---	---	---	---	---	---	---	---	---
Average occupancy	95.4	%	94.4	%	94.5	%	94.5	%	94.2	%	Average effective monthly rent, per unit	$	1,555	$	1,551	$	1,555	$	1,548	$	1,531
---	---	---	---	---	---	---	---	---	---	---
	For the Three Months Ended
---	---	---	---	---	---	---	---	---	---	---
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Rental and other property revenue
Same-store portfolio	$	153,969	$	150,618	$	150,903	$	152,138	$	148,645
Non same-store portfolio	4,135		9,713		15,827		16,237		14,956
Total rental and other property revenue	158,104		160,331		166,730		168,375		163,601
Property operating expenses
Same-store portfolio	59,041		56,247		53,739		57,186		56,270
Non same-store portfolio	1,842		3,724		5,964		6,114		5,801
Total property operating expenses	60,883		59,971		59,703		63,300		62,071
NOI
Same-store portfolio	94,928		94,371		97,164		94,952		92,375
Non same-store portfolio	2,293		5,989		9,863		10,123		9,155
Total property NOI	$	97,221	$	100,360	$	107,027	$	105,075	$	101,530

(a)Same-store portfolio consists of 108 properties, which represent 32,153 units.

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

SAME-STORE PORTFOLIO NET OPERATING INCOME (a)

THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

Dollars in thousands, except per unit data

	For the Three Months Ended<br> June 30,						For the Six Months Ended<br> June 30,
	2024		2023		% change		2024		2023		% change
Revenue:
Rental and other property revenue	$	153,969	$	148,645	3.6	%	$	304,587	$	294,346	3.5	%
Property Operating Expenses:
Real estate taxes	18,626		18,576		0.3	%	37,596		37,055		1.5	%
Property insurance	4,014		3,600		11.5	%	8,164		6,566		24.3	%
Personnel expenses	12,806		11,745		9.0	%	25,005		22,870		9.3	%
Utilities	7,460		7,063		5.6	%	15,173		14,416		5.3	%
Repairs and maintenance	6,495		5,997		8.3	%	11,320		11,443		(1.1)	%
Contract services	5,886		5,941		(0.9)	%	10,987		11,038		(0.5)	%
Advertising expenses	2,065		1,592		29.7	%	3,661		2,894		26.5	%
Other expenses	1,689		1,756		(3.8)	%	3,382		3,552		(4.8)	%
Total property operating expenses	59,041		56,270		4.9	%	115,288		109,834		5.0	%
Same-store portfolio NOI	$	94,928	$	92,375	2.8	%	$	189,299	$	184,512	2.6	%		Same-store portfolio NOI margin	61.7		%	62.1	%	(0.4)	%	62.1	%	62.7	%	(0.6)	%
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Average occupancy	95.4		%	94.2		%	1.2	%	94.9		%	93.7		%	1.2	%
Average effective monthly rent, per unit	$	1,555		$	1,531		1.6	%	$	1,553		$	1,529		1.6	%

(a)Same-store portfolio consists of 108 properties, which represent 32,153 units.

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED JUNE 30, 2024

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	2024		2023		% Change		2024		2023		% Change		2024		2023		% Change		2024		2023		% Change		2024		2023		% Change
Atlanta, GA	13	5,180	$	24,255	$	23,886	1.5	%	$	9,623	$	9,326	3.2	%	$	14,631	$	14,561	0.5	%	93.5	%	92.1	%	1.4	%	$	1,609	$	1,619	(0.6)	%
Dallas, TX	14	4,007	22,290		21,732		2.6	%	9,077		8,497		6.8	%	13,213		13,235		(0.2)	%	95.7	%	94.8	%	0.9	%	1,815		1,791		1.3	%
Columbus, OH	10	2,510	11,119		10,580		5.1	%	4,486		4,077		10.0	%	6,633		6,503		2.0	%	95.0	%	95.1	%	(0.1)	%	1,451		1,378		5.3	%
Oklahoma City, OK	8	2,147	8,132		7,734		5.1	%	2,770		2,660		4.1	%	5,362		5,074		5.7	%	95.2	%	93.6	%	1.6	%	1,204		1,166		3.3	%
Indianapolis, IN	7	1,979	8,860		8,309		6.6	%	3,501		3,164		10.7	%	5,359		5,145		4.2	%	96.5	%	95.0	%	1.5	%	1,396		1,347		3.6	%
Denver, CO	6	1,397	7,784		7,414		5.0	%	2,474		2,323		6.5	%	5,310		5,091		4.3	%	97.0	%	95.0	%	2.0	%	1,736		1,713		1.3	%
Tampa-St. Petersburg, FL	5	1,452	8,283		7,833		5.7	%	3,071		3,033		1.3	%	5,212		4,800		8.6	%	95.7	%	93.9	%	1.8	%	1,836		1,808		1.5	%
Nashville, TN	5	1,508	7,622		7,276		4.8	%	2,599		2,708		(4.0)	%	5,024		4,569		10.0	%	95.5	%	93.8	%	1.7	%	1,635		1,599		2.3	%
Raleigh - Durham, NC	6	1,690	8,081		7,852		2.9	%	3,094		2,640		17.2	%	4,987		5,212		(4.3)	%	95.2	%	94.0	%	1.2	%	1,545		1,533		0.8	%
Memphis, TN	4	1,383	6,332		6,205		2.0	%	2,289		2,061		11.1	%	4,043		4,144		(2.4)	%	94.8	%	94.0	%	0.8	%	1,518		1,501		1.1	%
Houston, TX	5	1,308	5,927		5,694		4.1	%	2,615		2,669		(2.0)	%	3,312		3,025		9.5	%	96.2	%	95.4	%	0.8	%	1,431		1,393		2.7	%
Louisville, KY	4	1,150	4,946		4,480		10.4	%	2,086		1,981		5.3	%	2,860		2,499		14.4	%	96.0	%	92.9	%	3.1	%	1,312		1,271		3.2	%
Lexington, KY	3	886	3,947		3,737		5.6	%	1,249		1,179		5.9	%	2,697		2,557		5.5	%	97.3	%	97.9	%	(0.6)	%	1,353		1,274		6.2	%
Huntsville, AL	3	873	4,053		4,082		(0.7)	%	1,425		1,472		(3.2)	%	2,628		2,611		0.7	%	96.7	%	95.1	%	1.6	%	1,495		1,548		(3.4)	%
Charlotte, NC	3	714	3,823		3,813		0.3	%	1,235		1,160		6.5	%	2,588		2,653		(2.5)	%	95.7	%	95.4	%	0.3	%	1,742		1,761		(1.1)	%
Myrtle Beach, SC - Wilmington, NC	3	628	2,744		2,680		2.4	%	917		834		10.0	%	1,827		1,846		(1.0)	%	95.8	%	95.6	%	0.2	%	1,407		1,414		(0.5)	%
Cincinnati, OH	2	542	2,859		2,674		6.9	%	1,100		990		11.1	%	1,760		1,684		4.5	%	97.5	%	94.8	%	2.7	%	1,604		1,548		3.6	%
Birmingham, AL	1	720	2,986		3,028		(1.4)	%	1,300		1,362		(4.6)	%	1,686		1,666		1.2	%	94.5	%	93.6	%	0.9	%	1,386		1,401		(1.1)	%
Greenville, SC	1	702	2,682		2,724		(1.5)	%	1,062		1,013		4.8	%	1,620		1,711		(5.3)	%	93.5	%	95.5	%	(2.0)	%	1,308		1,268		3.2	%
Charleston, SC	2	518	2,730		2,589		5.4	%	1,179		1,161		1.6	%	1,551		1,427		8.7	%	96.9	%	95.0	%	1.9	%	1,697		1,634		3.9	%
Orlando, FL	1	297	1,652		1,532		7.8	%	750		671		11.8	%	902		860		4.9	%	93.5	%	91.7	%	1.8	%	1,794		1,801		(0.4)	%
San Antonio, TX	1	306	1,444		1,433		0.8	%	571		674		(15.3)	%	873		759		15.0	%	96.6	%	95.9	%	0.7	%	1,477		1,489		(0.8)	%
Austin, TX	1	256	1,418		1,358		4.4	%	568		615		(7.6)	%	850		743		14.4	%	94.6	%	92.6	%	2.0	%	1,805		1,767		2.2	%
Total / Weighted<br> Average	108	32,153	$	153,969	$	148,645	3.6	%	$	59,041	$	56,270	4.9	%	$	94,928	$	92,375	2.8	%	95.4	%	94.2	%	1.2	%	$	1,555	$	1,531	1.6	%

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

SIX MONTH ENDED JUNE 30, 2024

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	2024		2023		% Change		2024		2023		% Change		2024		2023		% Change		2024		2023		% Change		2024		2023		% Change
Atlanta, GA	13	5,180	$	48,079	$	47,559	1.1	%	$	18,812	$	17,729	6.1	%	$	29,266	$	29,829	(1.9)	%	93.2	%	92.0	%	1.2	%	$	1,615	$	1,628	(0.8)	%
Dallas, TX	14	4,007	44,206		42,955		2.9	%	17,594		17,320		1.6	%	26,612		25,635		3.8	%	95.0	%	94.0	%	1.0	%	1,816		1,787		1.6	%
Columbus, OH	10	2,510	22,025		20,808		5.8	%	8,498		7,689		10.5	%	13,527		13,119		3.1	%	94.9	%	94.8	%	0.1	%	1,441		1,367		5.4	%
Indianapolis, IN	7	1,979	17,358		16,217		7.0	%	6,748		6,091		10.8	%	10,610		10,126		4.8	%	95.9	%	93.8	%	2.1	%	1,387		1,341		3.4	%
Oklahoma City, OK	8	2,147	16,087		15,262		5.4	%	5,495		5,220		5.3	%	10,591		10,042		5.5	%	95.1	%	92.7	%	2.4	%	1,197		1,165		2.7	%
Denver, CO	6	1,397	15,223		14,903		2.1	%	4,659		4,498		3.6	%	10,565		10,404		1.5	%	96.3	%	94.8	%	1.5	%	1,724		1,711		0.8	%
Tampa-St. Petersburg, FL	5	1,452	16,480		15,792		4.4	%	6,167		6,159		0.1	%	10,313		9,634		7.0	%	95.6	%	94.4	%	1.2	%	1,834		1,805		1.6	%
Raleigh - Durham, NC	6	1,690	15,952		15,606		2.2	%	5,959		5,160		15.5	%	9,994		10,446		(4.3)	%	94.5	%	93.8	%	0.7	%	1,547		1,531		1.0	%
Nashville, TN	5	1,508	15,071		14,261		5.7	%	5,176		5,097		1.5	%	9,895		9,165		8.0	%	94.9	%	92.2	%	2.7	%	1,635		1,595		2.5	%
Memphis, TN	4	1,383	12,498		12,248		2.0	%	4,424		4,043		9.4	%	8,075		8,205		(1.6)	%	94.0	%	93.8	%	0.2	%	1,516		1,501		1.0	%
Houston, TX	5	1,308	11,685		11,290		3.5	%	5,319		5,513		(3.5)	%	6,366		5,777		10.2	%	95.1	%	95.0	%	0.1	%	1,431		1,392		2.8	%
Louisville, KY	4	1,150	9,684		8,918		8.6	%	4,055		3,878		4.6	%	5,630		5,040		11.7	%	95.7	%	92.8	%	2.9	%	1,306		1,278		2.2	%
Lexington, KY	3	886	7,744		7,346		5.4	%	2,435		2,247		8.4	%	5,308		5,099		4.1	%	97.0	%	96.4	%	0.6	%	1,341		1,273		5.3	%
Charlotte, NC	3	714	7,582		7,605		(0.3)	%	2,396		2,277		5.2	%	5,186		5,328		(2.7)	%	95.1	%	95.5	%	(0.4)	%	1,745		1,759		(0.8)	%
Huntsville, AL	3	873	8,077		8,099		(0.3)	%	2,905		2,813		3.3	%	5,172		5,286		(2.2)	%	95.5	%	94.8	%	0.7	%	1,497		1,547		(3.2)	%
Myrtle Beach, SC - Wilmington, NC	3	628	5,431		5,291		2.6	%	1,783		1,618		10.2	%	3,648		3,673		(0.7)	%	95.0	%	95.2	%	(0.2)	%	1,411		1,405		0.4	%
Birmingham, AL	1	720	6,070		6,044		0.4	%	2,561		2,494		2.7	%	3,509		3,551		(1.2)	%	94.5	%	93.7	%	0.8	%	1,403		1,404		(0.1)	%
Cincinnati, OH	2	542	5,600		5,230		7.1	%	2,104		1,957		7.5	%	3,496		3,273		6.8	%	95.8	%	93.4	%	2.4	%	1,594		1,550		2.8	%
Greenville, SC	1	702	5,285		5,165		2.3	%	2,048		1,957		4.6	%	3,237		3,208		0.9	%	93.9	%	93.8	%	0.1	%	1,307		1,250		4.6	%
Charleston, SC	2	518	5,441		5,123		6.2	%	2,282		2,161		5.6	%	3,159		2,961		6.7	%	96.2	%	94.3	%	1.9	%	1,696		1,618		4.8	%
Orlando, FL	1	297	3,303		3,069		7.6	%	1,460		1,339		9.0	%	1,843		1,729		6.6	%	93.9	%	93.1	%	0.8	%	1,800		1,794		0.3	%
San Antonio, TX	1	306	2,873		2,887		(0.5)	%	1,217		1,348		(9.7)	%	1,656		1,540		7.5	%	96.7	%	95.8	%	0.9	%	1,476		1,486		(0.7)	%
Austin, TX	1	256	2,833		2,668		6.2	%	1,191		1,226		(2.9)	%	1,641		1,442		13.8	%	94.8	%	90.8	%	4.0	%	1,805		1,777		1.6	%
Total/Weighted Average	108	32,153	$	304,587	$	294,346	3.5	%	$	115,288	$	109,834	5.0	%	$	189,299	$	184,512	2.6	%	94.9	%	93.7	%	1.2	%	$	1,553	$	1,529	1.6	%

PROPERTY PORTFOLIO (a)

NET OPERATING INCOME EXPOSURE BY MARKET

Dollars in thousands, except rent per unit

							For the Three Months Ended<br> June 30, 2024
Market	Number of Properties	Units	Gross Real <br>Estate <br>Assets		Period End<br> Occupancy		Average <br>Effective<br> Monthly Rent <br>per Unit		NOI		% of NOI
Atlanta, GA	13	5,180	$	1,099,186	93.9	%	$	1,609	$	14,632	15.1	%
Dallas, TX	14	4,007	873,317		95.6	%	1,815		13,213		13.7	%
Columbus, OH	10	2,510	377,578		94.4	%	1,451		6,633		7.0	%
Oklahoma City, OK	8	2,147	332,776		95.4	%	1,204		5,362		5.4	%
Indianapolis, IN	7	1,979	295,293		97.1	%	1,396		5,359		5.5	%
Denver, CO (a)(b)	6	1,397	382,238		96.6	%	1,736		5,310		5.5	%
Tampa-St. Petersburg, FL	5	1,452	317,253		95.0	%	1,836		5,212		5.4	%
Nashville, TN	5	1,508	373,109		95.7	%	1,635		5,024		5.2	%
Raleigh - Durham, NC	6	1,690	254,444		95.5	%	1,545		4,987		5.2	%
Memphis, TN	4	1,383	161,192		94.6	%	1,518		4,043		4.2	%
Houston, TX	5	1,308	214,215		97.3	%	1,431		3,312		3.4	%
Huntsville, AL	4	1,051	241,753		96.5	%	1,487		3,190		3.3	%
Louisville, KY	4	1,150	145,766		96.3	%	1,312		2,860		3.0	%
Birmingham, AL (c)	2	1,074	219,565		94.7	%	1,455		2,786		2.9	%
Lexington, KY	3	886	161,833		98.3	%	1,353		2,697		2.8	%
Charlotte, NC	3	714	189,804		95.9	%	1,742		2,588		2.7	%
Myrtle Beach, SC - Wilmington, NC	3	628	68,296		95.9	%	1,407		1,827		1.9	%
Cincinnati, OH	2	542	124,084		98.1	%	1,604		1,760		1.8	%
Greenville, SC	1	702	125,347		94.2	%	1,308		1,620		1.7	%
Charleston, SC	2	518	82,009		96.3	%	1,697		1,551		1.6	%
Orlando, FL	1	297	50,708		93.9	%	1,794		902		0.9	%
San Antonio, TX	1	306	57,469		96.7	%	1,477		873		0.9	%
Austin, TX	1	256	59,954		94.5	%	1,805		850		0.9	%
Total / Weighted Average	110	32,685	$	6,207,189	95.5	%	$	1,554	$	96,591	100.0	%

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

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

(c)Includes one property with 354 units that was held for sale as of June 30, 2024.

VALUE ADD SUMMARY BY MARKET

PROJECT LIFE TO DATE AS OF JUNE 30, 2024

									Renovation Costs per Unit (b)
Market	Total Properties	Total <br>Units To Be Renovated	Units Complete	Units <br>Leased	Rent Premium (a)		% Rent Increase		Interior	Exterior		Total		ROI - Interior Costs(c)		ROI - Total Costs (c)
Ongoing
Atlanta, GA (d)	5	2,344	1,053	1,052	$	259	18.9	%		$	2,283	$	20,903	16.7	%	14.9	%
Dallas, TX	5	1,462	648	691	284		19.7	%	19,109	2,226		21,335		17.8	%	15.9	%
Columbus, OH	4	1,098	464	470	276		22.4	%	14,628	1,431		16,059		22.7	%	20.7	%
Oklahoma City, OK	4	1,087	524	546	154		17.3	%	17,326	2,213		19,539		10.7	%	9.5	%
Tampa-St. Petersburg, FL	2	612	431	437	374		25.6	%	15,716	1,481		17,197		28.6	%	26.1	%
Lexington, KY	1	436	5	6	250		19.3	%	15,937	2,038		17,975		18.8	%	16.7	%
Nashville, TN	1	418	261	266	166		11.9	%	16,650	1,321		17,971		12.0	%	11.1	%
Memphis, TN	1	362	291	292	379		34.5	%	15,749	807		16,556		28.9	%	27.5	%
Raleigh-Durham, NC	1	318	240	243	215		16.9	%	16,094	1,046		17,140		16.0	%	15.0	%
Austin, TX	1	256	176	176	252		17.2	%	18,126	1,486		19,612		16.7	%	15.4	%
Denver, CO	1	252	5	8	191		26.3	%	13,696	4,048		17,744		16.8	%	12.9	%
Indianapolis, IN	1	236	191	191	276		25.3	%	15,616	1,484		17,100		21.2	%	19.4	%
Total / Weighted Average	27	8,881	4,289	4,378	$	263	20.6	%	17,193	$	1,949	$	19,142	18.4	%	16.5	%
Completed (e)
Atlanta, GA	3	978	892	889	$	215	20.8	%		$	1,139	$	10,121	28.7	%	25.5	%
Columbus, OH	3	763	701	700	206		22.6	%	10,268	666		10,934		24.1	%	22.6	%
Louisville, KY	2	728	723	780	216		24.3	%	15,483	2,173		17,656		16.7	%	14.7	%
Memphis, TN	2	691	660	656	189		18.7	%	11,834	974		12,808		19.2	%	17.7	%
Tampa-St. Petersburg, FL	2	624	591	602	227		19.0	%	13,721	1,482		15,203		19.8	%	17.9	%
Raleigh-Durham, NC	1	328	325	323	195		19.0	%	14,648	2,108		16,756		15.9	%	13.9	%
Wilmington, NC	1	288	288	287	77		7.6	%	8,120	56		8,176		11.4	%	11.3	%
Total / Weighted Average	14	4,400	4,180	4,237	$	201	20.2	%		$	1,252	$	13,076	20.4	%	18.4	%
Grand Total/Weighted Average	41	13,281	8,469	8,615	$	232	20.4	%		$	1,725	$	16,298	19.1	%	17.1	%

All values are in US Dollars.

(a) See the definitions section for a full description of Rent Premium. The weighted average Rent Premium including the impact of concessions was $219.

(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 18.0%. ROI-Total costs using rent premium including the impact of concessions was 16.1%.

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

(e)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.

(f)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).

INVESTMENT AND DEVELOPMENT ACTIVITY

Dollars in thousands except per unit amounts

| 2024 DISPOSITIONS | | --- || Property | Location | Units | Disposition date | Sale price | | Price per unit | | Average rent per unit at disposition | | Gain on sale (loss on impairment) , net (a) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Villas of Kingwood | Houston, TX | 330 | 2/13/24 | $ | 53,700 | $ | 163 | $ | 1,454 | $ | 62 | | Belmar Villas | Denver, CO | 318 | 2/13/24 | 74,300 | | 234 | | 1,606 | | 46 | | | Hearthstone at City Center | Denver, CO | 360 | 3/12/24 | 74,000 | | 206 | | 1,690 | | 88 | | | Villas at Huffmeister | Houston, TX | 294 | 3/25/24 | 44,250 | | 151 | | 1,557 | | (415) | | | Westmont Commons | Asheville, NC | 252 | 3/28/24 | 49,875 | | 198 | | 1,505 | | 25,856 | | | Reserve at Creekside | Chattanooga, TN | 192 | 4/30/24 | 28,500 | | 152 | | 1,462 | | (152) | | | Total | | 1,746 | | $ | 324,625 | $ | 186 | $ | 1,556 | $ | 25,485 |

(a)During the three months ended December 31, 2023, we recognized an aggregate loss on impairment of $32,956 on the Villas at Kingwood, Belmar Villas, Hearthstone at City Center, Villas at Huffmeister, and Reserve at Creekside, including $1,105 of defeasance and debt prepayment gains on these dispositions.

| ASSETS HELD FOR SALE AS OF JUNE 30, 2024 (a) | | --- || Property | Location | Quarter Identified As Held For Sale | Units | | --- | --- | --- | --- | | Tapestry Park | Birmingham, AL | Q1 2024 | 354 |

(a)Tapestry Park was sold on July 17, 2024 for a gross sales price of $70,800. We expect to use the proceeds as part of a 1031 exchange to acquire a property in Tampa, Florida during the third quarter 2024.

| REAL ESTATE UNDER DEVELOPMENT | | --- || Development | Destination at Arista (a) | Flatiron Flats | | --- | --- | --- | | 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 | 4Q 2026 | | Total Estimated Development Costs | $102,800 | $119,900 | | % of Development Costs Left to Fund | 0% | 24% | | Real Estate Under Development at June 30, 2024 | $23,790 | $91,406 | | % of Planned Units Delivered as of June 30, 2024 | 78.4% | 0% | | Leased % as of July 29, 2024 (b) | 80.9% | N/A | | Occupancy % as of July 29, 2024 (b) | 74.4% | N/A |

(a)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 total number of units.

INVESTMENT AND DEVELOPMENT ACTIVITY - (CONTINUED)

| INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES | | --- || 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 (a) | Richmond, VA | 402 | — | $ | 85,883 | $ | 64,000 | 84.8 | % | $ | — | $ | 17,127 | | Views of Music City II (b) /<br><br>The Crockett (c) | Nashville, TN | 408 | — | 66,079 | | 43,275 | | 50.0 | % | — | | 11,805 | | | Lakeline Station | Austin, TX | 378 | Q4 2024 | 109,524 | | 76,500 | | 90.0 | % | — | | 33,225 | | | The Mustang | Dallas, TX | 275 | Q4 2024 | 109,583 | | 79,447 | | 85.0 | % | — | | 28,190 | | | Total | | 1,463 | | $ | 371,069 | $ | 263,222 | | | $ | — | $ | 90,347 |

(a)Metropolis at Innsbrook is an operating property consisting of 402 units. We have a call option that gives us the right to buy the property upon the earlier of the date upon which the property achieves 90% occupancy or October 17, 2025. On June 21, 2024, we entered into an agreement with the developer to list the property for sale upon achieving 85% occupancy.

(b)Views of Music City phase II is an operating property consisting of 209 total units. On July 16, 2024, we amended the joint venture agreement to require the property to be listed for sale no later than March 31, 2025, and to provide us with a right of first refusal on any sale of the property.

(c)The Crockett is an operating property consisting of 199 units. On July 16, 2024, we amended the related joint venture agreement for the property, which is expected to result in the return of our invested capital and corresponding preferred return no later than December 31, 2024, while also providing us with a right of first refusal on any sale of The Crockett.

DEBT SUMMARY AS OF JUNE 30, 2024

Dollars in thousands

	Amount		Weighted Average Contractual Rate (d)		Weighted Average Hedged Effective Rate (e)		Type	Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)	$	103,478	6.6	%	4.8	%	Floating	1.6
Unsecured term loans (b)	600,000		6.5	%	4.0	%	Floating	3.0
Secured credit facilities (c)	585,635		4.2	%	4.4	%	Fixed	4.4
Mortgages	935,258		3.8	%	4.0	%	Fixed	3.9
Total Principal	2,224,371		4.8	%	4.1	%		3.7
Loan premiums (discounts), net	37,253
Unamortized deferred financing costs	(9,065)
Total Consolidated Debt	2,252,559
Market Equity Capitalization, at period end	4,330,137
Total Capitalization	$	6,582,696

(a)Unsecured revolver total capacity is $500,000, of which $103,478 was drawn as of June 30, 2024. 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) $509,386 secured credit facility, two tranches of which, in an aggregate principal amount of $468,918, have a maturity date of August 1, 2028 and the third 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 the three months ended June 30, 2024, without regard to any interest rate swaps or collars.

(e)Represents the weighted average effective interest rates for the three months ended June 30, 2024, including the impact of interest rate swaps and collars, amortization of hedging costs, and deferred financing costs but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.

(f)As of June 30, 2024, we maintained the below hedges that have effectively fixed a portion of our floating rate debt.

Hedges:	Notional		Start	End	Swap Rate		Floor Rate		Cap Rate
Collar	$	100,000	11/17/2017	11/17/2024	—		1.25	%	2.00	%
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	%	—		—
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	%

DEBT MATURITY, DEBT COVENANT AND UNENCUMBERED ASSET STATS

AS OF JUNE 30, 2024

Dollars in thousands

Debt Covenant Summary (a)

	Requirement	Actual	Compliance
Consolidated leverage ratio	≤ 60%	31.5%	Yes
Consolidated fixed charge coverage ratio	≥ 1.5x	2.8x	Yes
Unsecured leverage ratio	≤ 60%	22.3%	Yes

(a)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 (b)

	Total Units	% of Total		Gross Assets		% of Total		Q2 2024 NOI		% of Total
Unencumbered assets	18,090	55.3	%	$	3,587,606	53.7	%	$	53,554	55.4	%
Encumbered assets	14,595	44.7	%	3,096,423		46.3	%	43,037		44.6	%
	32,685	100.0	%	$	6,684,029	100.0	%	$	96,591	100.0	%

(b)Excludes our development projects (Destination at Arista and Flatiron Flats). See the definitions at the end of this release.

DEFINITIONS

Average Effective Monthly Rent per Unit

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

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

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

	As of
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Total debt	$	2,252,559	$	2,277,098	$	2,549,409	$	2,715,710	$	2,650,805
Less: cash and cash equivalents	(21,034)		(21,275)		(22,852)		(17,216)		(14,349)
Less: loan discounts and premiums, net	(37,253)		(39,804)		(44,483)		(50,772)		(53,520)
Total net debt	$	2,194,272	$	2,216,019	$	2,482,074	$	2,647,722	$	2,582,936

Net Operating Income

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

	For the Three Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Net income (loss)	$	10,555	$	17,961	$	(41,654)	$	3,986	$	10,988
Other revenue	(298)		(203)		(316)		(232)		(354)
Property management expenses	7,666		7,499		6,660		7,232		6,818
General and administrative<br> expenses	6,244		8,381		5,043		3,660		5,910
Depreciation and amortization<br> expense	54,127		53,721		55,902		55,546		53,984
Casualty losses	465		2,301		59		35		680
Interest expense	17,460		20,603		23,537		22,033		22,227
Loss on impairment (gain on sale)<br> of real estate assets, net	152		(10,530)		56,263		11,268		—
(Gain) loss on extinguishment of debt	—		(203)		124		—		—
Other loss (income), net	—		1		79		369		72
Loss from investments in<br> unconsolidated real estate entities	850		829		1,330		1,178		1,205
NOI	$	97,221	$	100,360	$	107,027	$	105,075	$	101,530
Less: Non same-store portfolio NOI	2,293		5,989		9,863		10,123		9,155
Same-store portfolio NOI	$	94,928	$	94,371	$	97,164	$	94,952	$	92,375

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

Rent Premium on Value Add Renovations

Renovation Costs per Unit

Return on Investment (“ROI”) on Value Add Renovations

Total Gross Assets

	As of
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Total assets	$	5,940,261	$	5,972,848	$	6,280,175	$	6,577,790	$	6,517,400
Plus: accumulated depreciation (a)	674,236		630,743		606,404		570,966		523,446
Plus: accumulated amortization	69,532		69,998		73,975		76,691		76,558
Total gross assets	$	6,684,029	$	6,673,589	$	6,960,554	$	7,225,447	$	7,117,404

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