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): October 26, 2022

_____________________________________________

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 October 26, 2022, IRT issued a press release regarding its earnings for the three and nine months ended September 30, 2022. Additionally, IRT is 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 herein. The information in this Current Report, 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 Current Report 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.

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.
October 26, 2022	By:	/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

Document

Exhibit 99.1

Independence Realty Trust Announces Third Quarter 2022 Financial Results

PHILADELPHIA – (BUSINESS WIRE) – October 26, 2022 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its third quarter 2022 financial results.

Third Quarter Highlights

•Net income available to common shares of $16.2 million for the quarter ended September 30, 2022 compared to $11.5 million for the quarter ended September 30, 2021.

•Earnings per diluted share of $0.07 for the quarter ended September 30, 2022 compared to $0.11 for the quarter ended September 30, 2021.

•Combined same-store portfolio net operating income (“NOI”) growth of 11.5% for the quarter ended September 30, 2022 compared to the quarter ended September 30, 2021.

•Core Funds from Operations (“CFFO”) of $64.3 million for the quarter ended September 30, 2022 compared to $22.7 million for the quarter ended September 30, 2021. CFFO per share was $0.28 for the third quarter of 2022, as compared to $0.21 for the third quarter of 2021.

•Adjusted EBITDA of $89.3 million for the quarter ended September 30, 2022 compared to $31.4 million for the quarter ended September 30, 2021.

•Value add program for the quarter ended September 30, 2022, has completed renovations at 457 units, achieving a weighted average return on investment during the quarter of 22.4%.

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.

Management Commentary

“We delivered double-digit revenue and NOI growth in the third quarter, as our portfolio of assets in attractive markets continued to exhibit strong fundamentals,” said Scott Schaeffer, Chairman and CEO of IRT. “Our combined same-store portfolio NOI increased by 11.5%, led by blended lease over lease rental growth of 12.7%. We are seeing increasing occupancy levels at our non-value add communities in our fourth quarter-to-date and as a result of our positive year-to-date operating performance, are maintaining our full year NOI and increasing our Core FFO per share growth guidance. Looking into 2023, we continue to believe that IRT is well-positioned in the multifamily sector and will maintain a disciplined approach in growing our business while increasing shareholder value.”

Combined Same-Store Portfolio(1) Operating Results

	Third Quarter 2022 Compared to<br><br>Third Quarter 2021	Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021
Rental and other property revenue(2)	10.6% increase	11.0% increase
Property operating expenses	9.1% increase	6.4% increase
Net operating income (“NOI”)(2)	11.5% increase	14.0% increase
Portfolio average occupancy	230 bps decrease to 94.2%	100 bps decrease to 95.0%
Portfolio average rental rate	13.3% increase to $1,479	11.9% increase to $1,421
NOI Margin	50 bps increase to 62.6%	160 bps increase to 62.5%

(1)Combined same-store portfolio includes 113 properties, which represent 33,804 units.

(2)Reflects upfront concessions recorded on a straight-line basis. With upfront concessions recorded on a cash basis, the change in rental and other property revenue would be 9.2% and 10.5%, for the three and nine months ended September 30, 2022, respectively, and the change in NOI would be 9.3% and 13.2% for the three and nine months ended September 30, 2022, respectively.

Operating Metrics

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

	3Q 2022		4Q 2022(3)
Combined Same-Store Portfolio(1)
Average Occupancy	94.2	%	94.2	%
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	14.1	%	7.1	%
Renewal Leases	11.9	%	8.0	%
Blended	12.7	%	7.7	%
Resident retention rate	56.6	%	50.0	%
Combined Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy(4)	94.7	%	95.0	%
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	13.5	%	5.8	%
Renewal Leases	11.1	%	7.2	%
Blended	12.0	%	6.7	%
Resident retention rate	56.3	%	51.2	%
Value Add (21 properties with Ongoing Value Add)
Average Occupancy	92.2	%	91.0	%
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	16.7	%	10.8	%
Renewal Leases	14.1	%	11.2	%
Blended	15.0	%	11.0	%
Resident retention rate	57.8	%	44.9	%

(1)Combined same-store portfolio includes 113 properties, which represent 33,804 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)4Q 2022 average occupancy and resident retention rates are as through October 24, 2022. 4Q 2022 new lease and renewal rates are for leases commencing during 4Q 2022 that were signed as of October 24, 2022.

(4)As of October 24, 2022, period end occupancy at the combined same-store portfolio excluding ongoing value add was 95.4%.

Value Add Program

We completed renovations on 457 units during the quarter ended September 30, 2022, achieving a return on investment of 22.4%, with an average cost per unit renovated of $14,022, and average rent increase per renovated unit of $262. For the nine months ended September 30, 2022, we have completed renovations on 795 units, achieving a return on investment of 27.1%, with an average cost per unit renovated of $13,145, and an average rent increase per renovated unit of $292. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of September 30, 2022.

We announced that 10 additional properties have been added to our value add program with renovations expected to begin in Q4 2022. The ten properties are comprised of 3,350 units and we expect to achieve returns on investment at these properties consistent with prior value add projects.

Investment Activity

Held for Sale

As of September 30, 2022, in connection with our ongoing capital recycling program, we had two properties, Meadows Apartments in Louisville, KY and Sycamore Terrace in Terre Haute, IN, classified as held for sale. We expect both dispositions to close in the fourth quarter of 2022 for an aggregate sales price of $103 million. The

proceeds from the dispositions will be used to reduce indebtedness incurred in connection with the acquisition of two properties, as discussed below.

Acquisitions and Joint Ventures

•The Enclave at Tranquility Lake in Tampa, FL: On September 13, 2022, we acquired a 348-unit multifamily apartment community for $98.0 million. This acquisition expanded our footprint in Tampa-St. Petersburg, Florida from 1,104 units to 1,452 units.

•Cyan Mallard Creek in Charlotte, NC: On August 16, 2022, we acquired a 234-unit multifamily apartment community for $80.0 million. This acquisition expanded our footprint in Charlotte, North Carolina from 480 units to 714 units.

•The Mustang Joint Venture Investment: On August 16, 2022, we entered into a joint venture for the development of The Mustang, a to-be-built 275-unit community in Dallas, Texas. The project is scheduled to be completed in Q3 2024. We have committed to invest an aggregate $25.6 million in this joint venture, of which $9.3 million was funded as of September 30, 2022.

Capital Expenditures

For the three months ended September 30, 2022, recurring capital expenditures for the total portfolio were $8.7 million, or $242 per unit. For the nine months ended September 30, 2022, recurring capital expenditures for the total portfolio were $19.7 million, or $556 per unit.

Capital Markets

At-the-Market Offering

On November 13, 2020 we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock having an aggregate offering price of up to $150 million (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis.

No forward sale transactions under the ATM Program were entered into during the three months ended September 30, 2022. On September 28, 2022, we physically settled in full 2,000,000 shares that were previously sold on a forward basis under the ATM Program. The forward shares were settled at the current weighted average sales price of $24.97 per share and IRT received proceeds, net of sales commissions of approximately $49.9 million.

Dividend Distribution

On September 12, 2022, our Board of Directors declared a quarterly cash dividend of $0.14 per share of our common stock, which was paid on October 21, 2022 to stockholders of record at the close of business on September 30, 2022.

2022 EPS and CFFO Guidance

We increased our EPS and CFFO per share and maintained our same-store NOI targets. Earnings per diluted share is projected to be in the range of $0.49 to $0.50. 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
2022 Full Year EPS and CFFO Guidance (1)(2)	Low	High	Low	High
Earnings per share	$0.48	$0.50	$0.49	$0.50	$0.005
Adjustments:
Depreciation and amortization (3)	1.09	1.09	1.09	1.09	—
Gain on sale of real estate assets (4)	(0.51)	(0.51)	(0.51)	(0.51)	—
Core FFO per share	$1.06	$1.08	$1.07	$1.08	$0.005

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2022 EPS and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below.

(2)Per share guidance is based on 228.0 million weighted average shares and units outstanding.

(3)Depreciation and amortization includes $53.3 million ($0.23 per share) of amortization related to STAR in-place lease intangibles that are a result of GAAP purchase accounting. These intangibles were fully amortized as of September 30, 2022.

(4)Gains on sale of real estate assets include the four asset sales that occurred during the first quarter of 2022 and the two properties identified as held for sale as of September 30, 2022.

2022 Guidance Assumptions

Our key guidance assumptions for 2022 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Combined Same-Store Portfolio	Previous 2022 Outlook	Current 2022 Outlook (1)	Change at Midpoint
Number of properties/units	113 properties / 33,804 units	113 properties / 33,804 units	—
Property revenue growth	10.7% to 11.1%	10.6% to 10.8%	(0.2)%
Controllable operating expense growth	4.2% to 5.2%	3.8% to 4.3%	(0.6)%
Real estate tax and insurance<br> expense growth	8.6% to 9.2%	7.8% to 8.4%	(0.8)%
Total operating expense growth	5.9% to 6.7%	5.3% to 5.8%	(0.8)%
Property NOI growth	13.25% to 14.25%	13.25% to 14.25%	—%
Corporate Expenses
General and administrative & Property<br> management expenses	$50.0 to $51.0 million	$50.0 to $51.0 million	$—
Interest expense (2)	$98.0 to $100.0 million	$98.0 to $99.0 million	$(0.5) million
Transaction/Investment Volume (3)
Acquisition volume	$25 to $250 million	$203 million	$65.5 million
Disposition volume	$157 to $400 million	$157 to $260 million	$(70) million
Capital Expenditures
Recurring	$18.5 to $21.5 million	$21.0 to $23.0 million	$2.0 million
Value add & non-recurring	$42.5 to $47.5 million	$40.0 to $43.0 million	$(3.5) million
Development	$65.0 to $75.0 million	$65.0 to $75.0 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” below.

(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting, we recorded a $72.1 million loan premium, net, related to STAR debt. This loan premium will be accreted into and reduce GAAP interest expense over the remaining term of the associated debt. However, loan premium accretion will be excluded from CFFO.

(3)We continue to evaluate our portfolio for capital recycling opportunities so actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements” below.

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, October 27, 2022 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.844.200.6205, access code 647671. 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, November 3, 2022 by dialing 1.866.813.9403, access code 833708.

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, Oklahoma City, OK, Raleigh-Durham, NC, Houston, TX, Nashville, TN, and Memphis, TN. 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 press 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 can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. These forward-looking statements include, without limitation, our expectations with respect to our operating performance and financial results, including our 2022 earnings guidance, timing and amount of future dividends, timing and terms of property acquisitions, dispositions, joint venture investments, developments and redevelopments and other capital expenditures, timing and terms of capital raising and other financing activity, lease pricing, revenue and expense growth, occupancy levels, supply levels, job growth, interest rates and other economic expectations, and anticipated benefits of our recently completed merger (the “STAR Merger”) with Steadfast Apartment REIT, Inc. (“STAR”), including as to the amount of synergies from the STAR Merger. Such forward-looking statements involve risks, uncertainties, estimates and assumptions 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. These forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and not within our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our future actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: (i) risks related to the impact of COVID-19 and other potential outbreaks of infectious diseases on our financial condition, results of operations, cash flows and the impact of such risks on the financial condition of our residents and their ability to pay rent; (ii) the nature and duration of measures taken by federal, state and local government authorities to combat the spread of disease; (iii) changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; (iv) uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; (v) increased costs on account of inflation; (vi) inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; (vii) legislative restrictions that may regulate rents or delay or limit collections of past due rents; (viii) risks endemic to real estate and the real estate industry generally; (ix) impairment charges; (x) the effects of natural and other disasters; (xi) delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; (xii) failure to realize the cost savings, synergies and other benefits expected to result from the STAR Merger; (xiii) unexpected costs or delays in integration of the IRT and STAR businesses; (xiv) unknown or unexpected liabilities related to the STAR Merger; (xv) unexpected costs of REIT qualification compliance; (xvi) unexpected changes in our intention or ability to repay certain debt prior to maturity; (xvii) inability to sell certain assets within the time frames or at the pricing levels expected; (xviii) costs and disruptions as the result of a cybersecurity incident or other technology disruption; and (xix) 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, 2021, 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. 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. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant.

Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

(Dollars in thousands, except per share amounts)

(unaudited)

	For the Three Months Ended
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$	16,223	$	(7,205)	$	74,600	$	28,615	$	11,502
Earnings (loss) per share -- diluted	$	0.07	$	(0.03)	$	0.34	$	0.23	$	0.11
Rental and other property revenue	$	160,300	$	154,643	$	149,977	$	76,803	$	60,592
Property operating expenses	$	59,967	$	58,976	$	55,883	$	26,952	$	23,164
NOI	$	100,333	$	95,667	$	94,094	$	49,851	$	37,428	NOI margin	62.6	%	61.9	%	62.7	%	64.9	%	61.8	%
---	---	---	---	---	---	---	---	---	---	---	Adjusted EBITDA	$	89,264	$	83,228	$	81,375	$	42,301	$	31,432
---	---	---	---	---	---	---	---	---	---	---
CORE FFO per share	$	0.28	$	0.26	$	0.25	$	0.24	$	0.21
Dividends per share	$	0.14	$	0.14	$	0.12	$	0.12	$	0.12	CORE FFO payout ratio	50.0	%	53.8	%	48.0	%	50.0	%	57.1	%
---	---	---	---	---	---	---	---	---	---	---	Portfolio Data:
---	---	---	---	---	---	---	---	---	---	---
Total gross assets	$	7,097,280	$	6,801,034	$	6,731,377	$	6,785,648	$	2,114,743
Total number of operating properties	122		120		119		123		57
Total units	36,176		35,594		35,498		36,831		16,109		Period end occupancy	94.6	%	95.7	%	95.4	%	95.6	%	96.0	%
---	---	---	---	---	---	---	---	---	---	---
Total portfolio average occupancy	94.2	%	95.5	%	95.2	%	96.0	%	96.1	%	Total portfolio average effective monthly rent, per<br> unit	$	1,484	$	1,414	$	1,374	$	1,329	$	1,212
---	---	---	---	---	---	---	---	---	---	---	Combined same-store portfolio period end<br><br>occupancy (a)	94.6	%	95.4	%	95.5	%	95.7	%	96.2	%
---	---	---	---	---	---	---	---	---	---	---
Combined same-store portfolio average<br><br>occupancy (a)	94.2	%	95.5	%	95.4	%	96.0	%	96.5	%	Combined same-store portfolio average effective<br><br>monthly rent, per unit (a)	$	1,479	$	1,412	$	1,373	$	1,346	$	1,305
---	---	---	---	---	---	---	---	---	---	---
Capitalization:
Total debt (b)	$	2,713,625	$	2,552,936	$	2,542,088	$	2,705,336	$	996,270
Common share price, period end	$	16.73	$	20.73	$	26.44	$	25.83	$	20.35
Market equity capitalization	$	3,850,365	$	4,729,580	$	6,031,873	$	5,882,410	$	2,150,162
Total market capitalization	$	6,563,990	$	7,282,516	$	8,573,961	$	8,587,746	$	3,146,432	Total debt/total gross assets	38.2	%	37.5	%	37.8	%	39.9	%	47.1	%
---	---	---	---	---	---	---	---	---	---	---
Net debt to Adjusted EBITDA (pro forma) (c)	7.2x		7.4x		7.6x		7.7x		8.2x
Interest coverage	4.0x		4.0x		4.0x		3.9x		3.6x		Common shares and OP Units:
---	---	---	---	---	---
Shares outstanding	224,056,179	222,060,280	221,163,391	220,753,735	105,106,714
OP units outstanding	6,091,171	6,091,171	6,970,993	6,981,841	552,360
Common shares and OP units outstanding	230,147,350	228,151,451	228,134,384	227,735,577	105,659,074
Weighted average common shares and OP units	228,051,780	227,964,753	227,778,484	127,046,225	107,094,044

(a)Combined same-store portfolio consists of 113 properties, which represent 33,804 units.

(b)Includes indebtedness associated with real estate held for sale.

(c)Reflects pro forma net debt to Adjusted EBITDA for each period presented, which includes adjustments for the timing of acquisitions, the full quarter effect of current value add initiatives, the completion of capital recycling activities including paydown of associated indebtedness, and the normalization of items impacting quarterly EBITDA. Actual net debt to Adjusted EBITDA multiples for the five quarters ended September 30, 2022 were 7.4x, 7.4x, 7.5x, 15.4x, and 8.0x, 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 amounts)

(unaudited)

	For the Three Months Ended September 30,				For the Nine Months Ended<br> September 30,
	2022		2021		2022		2021
Funds From Operations (FFO):
Net income (loss)	$	16,653	$	11,564	$	86,135	$	16,064
Add-Back (Deduct):
Real estate depreciation and amortization	49,347		17,263		199,588		50,418
Real estate depreciation and amortization from<br> investments in unconsolidated real estate entities	1,388		—		1,904		—
Gain on sale of real estate assets, net,<br> excluding debt extinguishment costs	—		(11,788)		(94,712)		(11,788)
FFO	$	67,388	$	17,039	$	192,915	$	54,694
FFO per share	$	0.30	$	0.16	$	0.85	$	0.53
CORE Funds From Operations (CFFO):
FFO	$	67,388	$	17,039	$	192,915	$	54,694
Add-Back (Deduct):
Other depreciation and amortization	375		121		1,100		281
Casualty (gains) losses, net	(191)		—		(7,176)		359
Loan (premium accretion) discount<br> amortization, net	(2,750)		—		(8,245)		—
Prepayment penalties on asset dispositions	—		295		—		295
Other (income) expense	(765)		—		(1,438)		—
Merger and integration costs	275		5,276		3,477		5,276
CFFO	$	64,332	$	22,731	$	180,633	$	60,905
CFFO per share	$	0.28	$	0.21	$	0.79	$	0.59
Weighted-average shares and units outstanding	228,051,780		107,094,044		227,933,320		103,511,115

Schedule III

Independence Realty Trust, Inc.

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

(Dollars in thousands)

(unaudited)

	For the Three-Months Ended
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Reconciliation of combined same-store portfolio NOI to net income (loss):
Combined same-store portfolio NOI	$	94,566	$	90,735	$	89,169	$	87,014	$	84,806
Combined non same-store portfolio NOI	5,767		4,932		4,925		7,923		7,054
Pre-Merger STAR Portfolio NOI	—		—		—		(45,086)		(54,432)
Other revenue	300		120		385		113		188
Property management expenses	(5,744)		(6,139)		(5,556)		(3,221)		(2,199)
General and administrative expenses	(5,625)		(6,968)		(7,928)		(4,442)		(3,985)
Depreciation and amortization expense	(49,722)		(72,793)		(78,174)		(26,210)		(17,384)
Casualty gains (losses), net	191		5,592		1,393		—		—
Interest expense	(22,093)		(20,994)		(20,531)		(10,757)		(8,700)
Gain on sale of real estate assets, net	—		—		94,712		76,179		11,492
Loss on extinguishment of debt	—		—		—		(10,261)		—
Other income (expense)	765		294		443		—		—
Loss from investments in unconsolidated<br> real estate entities	(1,477)		(871)		(63)		—		—
Merger and integration costs	(275)		(1,307)		(1,895)		(41,787)		(5,276)
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564

(a)Included in the three months ended September 30, 2022 is a refund of previously paid employer payroll taxes of $0.7 million from a portion of an employee retention credit received.

(b)Combined same-store portfolio consists of 113 properties, which represent 33,804 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
ADJUSTED EBITDA:	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564
Add-Back (Deduct):
Interest expense	22,093		20,994		20,531		10,757		8,700
Depreciation and amortization	49,722		72,793		78,174		26,210		17,384
Casualty (gains) losses, net	(191)		(5,592)		(1,393)		—		—
Gain on sale of real estate assets,<br> net	—		—		(94,712)		(76,179)		(11,492)
Loss on extinguishment of debt	—		—		—		10,261		—
Merger and integration costs	275		1,307		1,895		41,787		5,276
Loss from investments in<br> unconsolidated real estate entities	1,477		1,125		—		—		—
Other (income) expense	(765)		—		—		—		—
Adjusted EBITDA	$	89,264	$	83,228	$	81,375	$	42,301	$	31,432
INTEREST COST:
Interest expense	$	22,093	$	20,994	$	20,531	$	10,757	$	8,700
INTEREST COVERAGE:	4.0x		4.0x		4.0x		3.9x		3.6x
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---
ADJUSTED EBITDA:	2022		2021		2022		2021
Net income (loss)	$	16,653	$	11,564	$	86,135	$	16,064
Add-Back (Deduct):
Interest expense	22,093		8,700		63,618		25,644
Depreciation and amortization	49,722		17,384		200,688		50,699
Casualty (gains) losses, net	(191)		—		(7,176)		359
Gain on sale of real estate assets, net	—		(11,492)		(94,712)		(11,492)
Merger and integration costs	275		5,276		3,477		5,276
Loss from investments in unconsolidated real estate<br> entities	1,477		—		2,602		—
Other (income) expense	(765)		—		(1,501)		—
Adjusted EBITDA	$	89,264	$	31,432	$	253,131	$	86,550
INTEREST COST:
Interest expense	$	22,093	$	8,700	$	63,618	$	25,644
INTEREST COVERAGE:	4.0x		3.6x		4.0x		3.4x

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.

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 asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty (gains) losses, merger and integration costs, and income (loss) from investments in unconsolidated real estate entities. 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 Core FFO (“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, gains or losses on sales 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 merger and integration 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).

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.

	As of
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Total debt	$	2,713,625	$	2,552,936	$	2,542,088	$	2,705,336	$	1,018,729
Less: cash and cash equivalents	(23,753)		(11,378)		(23,971)		(35,972)		(8,720)
Less: loan discounts and premiums, net	(63,340)		(66,091)		(68,832)		(71,586)		—
Total net debt	$	2,626,532	$	2,475,467	$	2,449,285	$	2,597,778	$	1,010,009

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 depreciation and amortization, casualty related costs, property management expenses, general administrative expenses, interest expense, and net gains on sale of assets.

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.

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 at the beginning of the previous year. Properties that are held-for-sale or have been sold are excluded from the same-store portfolio. Because our portfolio of properties changed significantly as a result of our STAR Merger, which closed on December 16, 2021, we may also present, as described below, information on the IRT Same-Store Portfolio, STAR Same-Store Portfolio and Combined Same-Store Portfolio.

IRT Same-Store Portfolio

IRT Same-Store Portfolio represents the 48 properties that IRT owned and consolidated as of January 1, 2021 and through September 30, 2022 (other than properties held for sale as of September 30, 2022).

STAR Same-Store Portfolio

STAR Same-Store Portfolio represents the 65 properties that STAR owned and consolidated as of January 1, 2021 and that, following the consummation of the Merger on December 16, 2021, continued to be owned and consolidated by IRT through September 30, 2022 (other than properties held for sale as of September 30, 2022).

Combined Same-Store Portfolio

Combined Same-Store Portfolio represents the combination of the IRT Same-Store Portfolio and the STAR Same-Store Portfolio considered as a single portfolio of 113 properties which represent 33,804 units.

Combined Non Same-Store Portfolio

Combined Non Same-Store Portfolio represents the combination of six IRT non same-store properties and three STAR non same-store properties considered as a single non same-store portfolio of nine properties which represent 2,372 units acquired after January 1, 2021 (includes two properties held for sale as of September 30, 2022).

Pre-Merger STAR Portfolio NOI

In order to reconcile Combined Same-Store Portfolio NOI to net income for periods prior to our December 16, 2021 merger with STAR, our reconciliation excludes NOI generated by the STAR Portfolio because IRT did not own these properties prior to December 16, 2021.

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
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Total assets	$	6,633,533	$	6,386,634	$	6,387,322	$	6,506,696	$	1,846,911
Plus: accumulated depreciation (a)	386,606		337,338		291,199		254,123		247,563
Plus: accumulated amortization	77,141		77,062		52,856		24,829		20,269
Total gross assets	$	7,097,280	$	6,801,034	$	6,731,377	$	6,785,648	$	2,114,743

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

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 & CORE FFO
Trailing Five Quarters	13
Three and NineMonths EndedSeptember 30, 2022and2021	14
Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing Five Quarters	15
Three and NineMonths EndedSeptember 30, 2022and2021	15
Combined Same-Store Portfolio Net Operating Income
Trailing Five Quarters	16
Three and NineMonths EndedSeptember 30, 2022and2021	17
Net Operating Income Bridge	18
Combined Same-Store Portfolio Net Operating Income by Market
Three Months EndedSeptember 30, 2022and2021	19
Nine Months EndedSeptember 30, 2022and2021	20
Total Portfolio NOI Exposure by Market	21
Value Add Summary	22
Investment & Development Activity	23
Debt Summary	24
Debt Covenant & Unencumbered Asset Statistics	25
Definitions	26
Appendix A	29

Independence Realty Trust

September 30, 2022

Company Information:

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

Forward-Looking Statements

This supplemental package 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 can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. These forward-looking statements include, without limitation, our expectations with respect to our operating performance and financial results, including our 2022 earnings guidance, timing and amount of future dividends, timing and terms of property acquisitions, dispositions, joint venture investments, developments and redevelopments and other capital expenditures, timing and terms of capital raising and other financing activity, lease pricing, revenue and expense growth, occupancy levels, supply levels, job growth, interest rates and other economic expectations, and anticipated benefits of our recently completed merger (the “STAR Merger”) with Steadfast Apartment REIT, Inc. (“STAR”), including as to the amount of synergies from the STAR Merger. Such forward-looking statements involve risks, uncertainties, estimates and assumptions 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. These forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and not within our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our future actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: (i) risks related to the impact of COVID-19 and other potential outbreaks of infectious diseases on our financial condition, results of operations, cash flows and the impact of such risks on the financial condition of our residents and their ability to pay rent; (ii) the nature and duration of measures taken by federal, state and local government authorities to combat the spread of disease; (iii) changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; (iv) uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; (v) increased costs on account of inflation; (vi) inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; (vii) legislative restrictions that may regulate rents or delay or limit collections of past due rents; (viii) risks endemic to real estate and the real estate industry generally; (ix) impairment charges; (x) the effects of natural and other disasters; (xi) delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; (xii) failure to realize the cost savings, synergies and other benefits expected to result from the STAR Merger; (xiii) unexpected costs or delays in integration of the IRT and STAR businesses; (xiv) unknown or unexpected liabilities related to the STAR Merger; (xv) unexpected costs of REIT qualification compliance; (xvi) unexpected changes in our intention or ability to repay certain debt prior to maturity; (xvii) inability to sell certain assets within the time frames or at the pricing levels expected; (xviii) costs and disruptions as the result of a cybersecurity incident or other technology disruption; and (xix) 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, 2021, 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. 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. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant.

Independence Realty Trust Announces Third Quarter 2022 Financial Results

Third Quarter Highlights

•Net income available to common shares of $16.2 million for the quarter ended September 30, 2022 compared to $11.5 million for the quarter ended September 30, 2021.

•Earnings per diluted share of $0.07 for the quarter ended September 30, 2022 compared to $0.11 for the quarter ended September 30, 2021.

•Combined same-store portfolio net operating income (“NOI”) growth of 11.5% for the quarter ended September 30, 2022 compared to the quarter ended September 30, 2021.

•Adjusted EBITDA of $89.3 million for the quarter ended September 30, 2022 compared to $31.4 million for the quarter ended September 30, 2021.

•Value add program for the quarter ended September 30, 2022, has completed renovations at 457 units, achieving a weighted average return on investment during the quarter of 22.4%.

Management Commentary

Combined Same-Store Portfolio(1) Operating Results

	Third Quarter 2022 Compared to<br><br>Third Quarter 2021	Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021
Rental and other property revenue(2)	10.6% increase	11.0% increase
Property operating expenses	9.1% increase	6.4% increase
Net operating income (“NOI”)(2)	11.5% increase	14.0% increase
Portfolio average occupancy	230 bps decrease to 94.2%	100 bps decrease to 95.0%
Portfolio average rental rate	13.3% increase to $1,479	11.9% increase to $1,421
NOI Margin	50 bps increase to 62.6%	160 bps increase to 62.5%

(1)Combined same-store portfolio includes 113 properties, which represent 33,804 units.

Operating Metrics

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

	3Q 2022		4Q 2022(3)
Combined Same-Store Portfolio(1)
Average Occupancy	94.2	%	94.2	%
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	14.1	%	7.1	%
Renewal Leases	11.9	%	8.0	%
Blended	12.7	%	7.7	%
Resident retention rate	56.6	%	50.0	%
Combined Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy(4)	94.7	%	95.0	%
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	13.5	%	5.8	%
Renewal Leases	11.1	%	7.2	%
Blended	12.0	%	6.7	%
Resident retention rate	56.3	%	51.2	%
Value Add (21 properties with Ongoing Value Add)
Average Occupancy	92.2	%	91.0	%
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	16.7	%	10.8	%
Renewal Leases	14.1	%	11.2	%
Blended	15.0	%	11.0	%
Resident retention rate	57.8	%	44.9	%

(1)Combined same-store portfolio includes 113 properties, which represent 33,804 units.

(4)As of October 24, 2022, period end occupancy at the combined same-store portfolio excluding ongoing value add was 95.4%.

Value Add Program

Investment Activity

Held for Sale

proceeds from the dispositions will be used to reduce indebtedness incurred in connection with the acquisition of two properties, as discussed below.

Acquisitions and Joint Ventures

Capital Expenditures

Capital Markets

At-the-Market Offering

Dividend Distribution

2022 EPS and CFFO Guidance

	Previous Guidance		Current Guidance		Change at Midpoint
2022 Full Year EPS and CFFO Guidance (1)(2)	Low	High	Low	High
Earnings per share	$0.48	$0.50	$0.49	$0.50	$0.005
Adjustments:
Depreciation and amortization (3)	1.09	1.09	1.09	1.09	—
Gain on sale of real estate assets (4)	(0.51)	(0.51)	(0.51)	(0.51)	—
Core FFO per share	$1.06	$1.08	$1.07	$1.08	$0.005

(2)Per share guidance is based on 228.0 million weighted average shares and units outstanding.

(4)Gains on sale of real estate assets include the four asset sales that occurred during the first quarter of 2022 and the two properties identified as held for sale as of September 30, 2022.

2022 Guidance Assumptions

Our key guidance assumptions for 2022 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Combined Same-Store Portfolio	Previous 2022 Outlook	Current 2022 Outlook (1)	Change at Midpoint
Number of properties/units	113 properties / 33,804 units	113 properties / 33,804 units	—
Property revenue growth	10.7% to 11.1%	10.6% to 10.8%	(0.2)%
Controllable operating expense growth	4.2% to 5.2%	3.8% to 4.3%	(0.6)%
Real estate tax and insurance<br> expense growth	8.6% to 9.2%	7.8% to 8.4%	(0.8)%
Total operating expense growth	5.9% to 6.7%	5.3% to 5.8%	(0.8)%
Property NOI growth	13.25% to 14.25%	13.25% to 14.25%	—%
Corporate Expenses
General and administrative & Property<br> management expenses	$50.0 to $51.0 million	$50.0 to $51.0 million	$—
Interest expense (2)	$98.0 to $100.0 million	$98.0 to $99.0 million	$(0.5) million
Transaction/Investment Volume (3)
Acquisition volume	$25 to $250 million	$203 million	$65.5 million
Disposition volume	$157 to $400 million	$157 to $260 million	$(70) million
Capital Expenditures
Recurring	$18.5 to $21.5 million	$21.0 to $23.0 million	$2.0 million
Value add & non-recurring	$42.5 to $47.5 million	$40.0 to $43.0 million	$(3.5) million
Development	$65.0 to $75.0 million	$65.0 to $75.0 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
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$	16,223	$	(7,205)	$	74,600	$	28,615	$	11,502
Earnings (loss) per share -- diluted	$	0.07	$	(0.03)	$	0.34	$	0.23	$	0.11
Rental and other property revenue	$	160,300	$	154,643	$	149,977	$	76,803	$	60,592
Property operating expenses	$	59,967	$	58,976	$	55,883	$	26,952	$	23,164
NOI	$	100,333	$	95,667	$	94,094	$	49,851	$	37,428	NOI margin	62.6	%	61.9	%	62.7	%	64.9	%	61.8	%
---	---	---	---	---	---	---	---	---	---	---	Adjusted EBITDA	$	89,264	$	83,228	$	81,375	$	42,301	$	31,432
---	---	---	---	---	---	---	---	---	---	---
CORE FFO per share	$	0.28	$	0.26	$	0.25	$	0.24	$	0.21
Dividends per share	$	0.14	$	0.14	$	0.12	$	0.12	$	0.12	CORE FFO payout ratio	50.0	%	53.8	%	48.0	%	50.0	%	57.1	%
---	---	---	---	---	---	---	---	---	---	---	Portfolio Data:
---	---	---	---	---	---	---	---	---	---	---
Total gross assets	$	7,097,280	$	6,801,034	$	6,731,377	$	6,785,648	$	2,114,743
Total number of operating properties	122		120		119		123		57
Total units	36,176		35,594		35,498		36,831		16,109		Period end occupancy	94.6	%	95.7	%	95.4	%	95.6	%	96.0	%
---	---	---	---	---	---	---	---	---	---	---
Total portfolio average occupancy	94.2	%	95.5	%	95.2	%	96.0	%	96.1	%	Total portfolio average effective monthly rent, per<br> unit	$	1,484	$	1,414	$	1,374	$	1,329	$	1,212
---	---	---	---	---	---	---	---	---	---	---	Combined same-store portfolio period end<br><br>occupancy (a)	94.6	%	95.4	%	95.5	%	95.7	%	96.2	%
---	---	---	---	---	---	---	---	---	---	---
Combined same-store portfolio average<br><br>occupancy (a)	94.2	%	95.5	%	95.4	%	96.0	%	96.5	%	Combined same-store portfolio average effective<br><br>monthly rent, per unit (a)	$	1,479	$	1,412	$	1,373	$	1,346	$	1,305
---	---	---	---	---	---	---	---	---	---	---
Capitalization:
Total debt (b)	$	2,713,625	$	2,552,936	$	2,542,088	$	2,705,336	$	996,270
Common share price, period end	$	16.73	$	20.73	$	26.44	$	25.83	$	20.35
Market equity capitalization	$	3,850,365	$	4,729,580	$	6,031,873	$	5,882,410	$	2,150,162
Total market capitalization	$	6,563,990	$	7,282,516	$	8,573,961	$	8,587,746	$	3,146,432	Total debt/total gross assets	38.2	%	37.5	%	37.8	%	39.9	%	47.1	%
---	---	---	---	---	---	---	---	---	---	---
Net debt to Adjusted EBITDA (pro forma) (c)	7.2x		7.4x		7.6x		7.7x		8.2x
Interest coverage	4.0x		4.0x		4.0x		3.9x		3.6x		Common shares and OP Units:
---	---	---	---	---	---
Shares outstanding	224,056,179	222,060,280	221,163,391	220,753,735	105,106,714
OP units outstanding	6,091,171	6,091,171	6,970,993	6,981,841	552,360
Common shares and OP units outstanding	230,147,350	228,151,451	228,134,384	227,735,577	105,659,074
Weighted average common shares and OP units	228,051,780	227,964,753	227,778,484	127,046,225	107,094,044

(a)Combined same-store portfolio consists of 113 properties, which represent 33,804 units.

(b)Includes indebtedness associated with real estate held for sale.

BALANCE SHEETS

Dollars in thousands, except per share data

	As of
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Assets:
Real estate held for investment, at cost	$	6,634,087	$	6,428,482	$	6,382,324	$	6,462,355	$	1,904,760
Less: accumulated depreciation	(379,171)		(329,903)		(283,666)		(243,475)		(223,244)
Real estate held for investment, net	6,254,916		6,098,579		6,098,658		6,218,880		1,681,516
Real estate held for sale	82,178		81,818		80,992		61,560		120,409
Real estate under development	86,763		61,777		48,959		41,777		—
Cash and cash equivalents	23,753		11,378		23,971		35,972		8,720
Restricted cash	35,829		31,017		26,789		29,699		6,138
Investment in unconsolidated real estate entities	70,608		54,178		43,541		24,999		13,561
Other assets	34,480		26,707		27,281		38,052		15,053
Derivative assets	43,967		21,162		12,944		2,488		1,168
Intangible assets, net	1,039		18		24,187		53,269		346
Total assets	$	6,633,533	$	6,386,634	$	6,387,322	$	6,506,696	$	1,846,911
Liabilities and Equity:
Indebtedness, net	$	2,667,183	$	2,506,375	$	2,495,410	$	2,705,336	$	996,270
Indebtedness associated with real estate held<br> for sale, net	46,442		46,561		46,678		—		22,459
Accounts payable and accrued expenses	126,310		98,173		81,498		106,332		39,593
Accrued interest payable	11,019		6,891		6,955		7,175		1,708
Dividends payable	32,188		31,907		27,345		16,792		12,648
Derivative liabilities	—		—		128		11,896		17,492
Other liabilities	13,816		15,077		15,921		17,089		6,756
Total liabilities	2,896,958		2,704,984		2,673,935		2,864,620		1,096,926
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share	—		—		—		—		—
Common shares, $0.01 par value per share	2,241		2,221		2,212		2,208		1,051
Additional paid in capital	3,749,550		3,698,763		3,678,478		3,678,903		965,018
Accumulated other comprehensive income (loss)	37,569		18,430		9,958		(11,940)		(19,507)
Retained earnings (deficit)	(194,014)		(178,902)		(140,643)		(188,410)		(200,429)
Total shareholders' equity	3,595,346		3,540,512		3,550,005		3,480,761		746,133
Noncontrolling Interests	141,229		141,138		163,382		161,315		3,852
Total equity	3,736,575		3,681,650		3,713,387		3,642,076		749,985
Total liabilities and equity	$	6,633,533	$	6,386,634	$	6,387,322	$	6,506,696	$	1,846,911

STATEMENTS OF OPERATIONS, FFO & CORE FFO

TRAILING FIVE QUARTERS

Dollars in thousands, except per share data

	For the Three Months Ended
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Revenue:
Rental and other property revenue	$	160,300	$	154,643	$	149,977	$	76,803	$	60,592
Other revenue	300		120		385		113		188
Total revenue	160,600		154,763		150,362		76,916		60,780
Expenses:
Property operating expenses	59,967		58,976		55,883		26,952		23,164
Property management expenses	5,744		6,139		5,556		3,221		2,199
General and administrative expenses(a)	5,625		6,968		7,928		4,442		3,985
Depreciation and amortization expense	49,722		72,793		78,174		26,210		17,384
Casualty (gains) losses, net	(191)		(5,592)		(1,393)		—		—
Total expenses	120,867		139,284		146,148		60,825		46,732
Interest expense	(22,093)		(20,994)		(20,531)		(10,757)		(8,700)
Gain on sale of real estate assets, net	—		—		94,712		76,179		11,492
Loss on extinguishment of debt	—		—		—		(10,261)		—
Other income (expense)	765		294		443		—		—
Loss from investments in unconsolidated real<br> estate entities	(1,477)		(871)		(63)		—		—
Merger and integration costs	(275)		(1,307)		(1,895)		(41,787)		(5,276)
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564
(Income) loss allocated to noncontrolling<br> interests	(430)		194		(2,280)		(850)		(62)
Net income (loss) available to common shares	$	16,223	$	(7,205)	$	74,600	$	28,615	$	11,502
EPS - basic	$	0.07	$	(0.03)	$	0.34	$	0.23	$	0.11
Weighted-average shares outstanding - Basic	221,960,609		221,164,284		220,798,692		125,375,694		104,918,674
EPS - diluted	$	0.07	$	(0.03)	$	0.34	$	0.23	$	0.11
Weighted-average shares outstanding - Diluted	222,867,546		221,164,284		222,045,286		126,675,551		107,668,675
Funds From Operations (FFO):
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564
Add-Back (Deduct):
Real estate depreciation and amortization	49,347		72,298		77,943		26,068		17,263
Real estate depreciation and amortization from<br> investments in unconsolidated real estate entities	1,388		515		—		—		—
Gain on sale of real estate assets, net,<br> excluding debt extinguishment costs	—		—		(94,712)		(78,490)		(11,788)
FFO	$	67,388	$	65,414	$	60,111	$	(22,957)	$	17,039
FFO per share	$	0.30	$	0.29	$	0.26	$	(0.18)	$	0.16
CORE Funds From Operations (CFFO):
FFO	$	67,388	$	65,414	$	60,111	$	(22,957)	$	17,039
Add-Back (Deduct):
Other depreciation and amortization	375		495		231		142		121
Casualty (gains) losses, net	(191)		(5,592)		(1,393)		—		—
Loan (premium accretion) discount<br> amortization, net	(2,750)		(2,741)		(2,754)		(501)		—
Prepayment penalties on asset dispositions	—		—		—		2,312		295
Loss on extinguishment of debt	—		—		—		10,261		—
Other (income) expense	(765)		(294)		(380)		—		—
Merger and integration costs	275		1,307		1,895		41,787		5,276
CFFO	$	64,332	$	58,589	$	57,710	$	31,044	$	22,731
CFFO per share	$	0.28	$	0.26	$	0.25	$	0.24	$	0.21
Weighted-average shares and units outstanding	228,051,780		227,966,261		227,778,484		127,046,225		107,094,044

(a)Included in the three months ended March 31, 2022 is $2.4 million of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.

STATEMENTS OF OPERATIONS, FFO & CORE FFO

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 and 2021

Dollars in thousands, except per share data

	For the Three Months Ended September 30,				For the Nine Months Ended<br> September 30,
	2022		2021		2022		2021
Revenue:
Rental and other property revenue	$	160,300	$	60,592	$	464,921	$	172,689
Other revenue	300		188		805		647
Total revenue	160,600		60,780		465,726		173,336
Expenses:
Property operating expenses	59,967		23,164		174,825		66,300
Property management expenses	5,744		2,199		17,440		6,318
General and administrative expenses	5,625		3,985		20,521		14,168
Depreciation and amortization expense	49,722		17,384		200,688		50,699
Casualty (gains) losses, net	(191)		—		(7,176)		359
Total expenses	120,867		46,732		406,298		137,844
Interest expense	(22,093)		(8,700)		(63,618)		(25,644)
Gain on sale of real estate assets, net	—		11,492		94,712		11,492
Other income (expense)	765		—		1,501		—
Loss from investments in unconsolidated real<br> estate entities	(1,477)		—		(2,411)		—
Merger and integration costs	(275)		(5,276)		(3,477)		(5,276)
Net income (loss)	16,653		11,564		86,135		16,064
(Income) loss allocated to noncontrolling<br> interests	(430)		(62)		(2,517)		(90)
Net income (loss) available to common shares	$	16,223	$	11,502	$	83,618	$	15,974
EPS - basic	$	0.07	$	0.11	$	0.38	$	0.16
Weighted-average shares outstanding - Basic	221,960,609		104,918,674		221,312,261		102,882,723
EPS - diluted	$	0.07	$	0.11	$	0.38	$	0.15
Weighted-average shares outstanding - Diluted	222,867,546		107,668,675		222,359,585		104,062,661
Funds From Operations (FFO):
Net income (loss)	$	16,653	$	11,564	$	86,135	$	16,064
Add-Back (Deduct):
Real estate depreciation and amortization	49,347		17,263		199,588		50,418
Real estate depreciation and amortization from<br> investments in unconsolidated real estate entities	1,388		—		1,904		—
Gain on sale of real estate assets, net,<br> excluding debt extinguishment costs	—		(11,788)		(94,712)		(11,788)
FFO	$	67,388	$	17,039	$	192,915	$	54,694
FFO per share	$	0.30	$	0.16	$	0.85	$	0.53
CORE Funds From Operations (CFFO):
FFO	$	67,388	$	17,039	$	192,915	$	54,694
Add-Back (Deduct):
Other depreciation and amortization	375		121		1,100		281
Casualty (gains) losses, net	(191)		—		(7,176)		359
Loan (premium accretion) discount<br> amortization, net	(2,750)		—		(8,245)		—
Prepayment penalties on asset dispositions	—		295		—		295
Other (income) expense	(765)		—		(1,438)		—
Merger and integration costs	275		5,276		3,477		5,276
CFFO	$	64,332	$	22,731	$	180,633	$	60,905
CFFO per share	$	0.28	$	0.21	$	0.79	$	0.59
Weighted-average shares and units outstanding	228,051,780		107,094,044		227,933,320		103,511,115

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

	Three Months Ended
ADJUSTED EBITDA:	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564
Add-Back (Deduct):
Interest expense	22,093		20,994		20,531		10,757		8,700
Depreciation and amortization	49,722		72,793		78,174		26,210		17,384
Casualty (gains) losses, net	(191)		(5,592)		(1,393)		—		—
Gain on sale of real estate assets,<br> net	—		—		(94,712)		(76,179)		(11,492)
Loss on extinguishment of debt	—		—		—		10,261		—
Merger and integration costs	275		1,307		1,895		41,787		5,276
Loss from investments in<br> unconsolidated real estate entities	1,477		1,125		—		—		—
Other (income) expense	(765)		—		—		—		—
Adjusted EBITDA	$	89,264	$	83,228	$	81,375	$	42,301	$	31,432
INTEREST COST:
Interest expense	$	22,093	$	20,994	$	20,531	$	10,757	$	8,700
INTEREST COVERAGE:	4.0x		4.0x		4.0x		3.9x		3.6x
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---
ADJUSTED EBITDA:	2022		2021		2022		2021
Net income (loss)	$	16,653	$	11,564	$	86,135	$	16,064
Add-Back (Deduct):
Interest expense	22,093		8,700		63,618		25,644
Depreciation and amortization	49,722		17,384		200,688		50,699
Casualty (gains) losses, net	(191)		—		(7,176)		359
Gain on sale of real estate assets, net	—		(11,492)		(94,712)		(11,492)
Merger and integration costs	275		5,276		3,477		5,276
Loss from investments in unconsolidated real estate<br> entities	1,477		—		2,602		—
Other (income) expense	(765)		—		(1,501)		—
Adjusted EBITDA	$	89,264	$	31,432	$	253,131	$	86,550
INTEREST COST:
Interest expense	$	22,093	$	8,700	$	63,618	$	25,644
INTEREST COVERAGE:	4.0x		3.6x		4.0x		3.4x

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME

TRAILING FIVE QUARTERS

Dollars in thousands, except per unit data

	For the Three-Months Ended
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Revenue:
Rental and other property revenue	$	151,030	$	146,556	$	141,706	$	138,712	$	136,563
Property Operating Expenses:
Real estate taxes	18,399		19,351		18,726		16,488		16,143
Property insurance	3,523		3,002		2,784		3,027		3,170
Personnel expenses (a)	11,921		12,248		12,052		12,233		12,064
Utilities	8,007		7,078		7,308		7,069		7,244
Repairs and maintenance	6,037		6,031		4,209		5,282		5,399
Contract services	5,317		5,126		4,722		4,787		4,915
Advertising expenses	1,459		1,223		1,180		1,323		1,334
Other expenses	1,801		1,762		1,556		1,489		1,488
Total property operating expenses	56,464		55,821		52,537		51,698		51,757
Combined same-store portfolio NOI (b)	$	94,566	$	90,735	$	89,169	$	87,014	$	84,806	Combined same-store portfolio NOI<br> margin	62.6	%	61.9	%	62.9	%	62.7	%	62.1	%
---	---	---	---	---	---	---	---	---	---	---
Average occupancy	94.2	%	95.5	%	95.4	%	96.0	%	96.5	%	Average effective monthly rent, per unit	$	1,479	$	1,412	$	1,373	$	1,346	$	1,305
---	---	---	---	---	---	---	---	---	---	---
Reconciliation of combined same-store portfolio NOI to net income (loss):
Combined same-store portfolio NOI	$	94,566	$	90,735	$	89,169	$	87,014	$	84,806
Combined non same-store portfolio NOI	5,767		4,932		4,925		7,923		7,054
Pre-Merger STAR Portfolio NOI	—		—		—		(45,086)		(54,432)
Other revenue	300		120		385		113		188
Property management expenses	(5,744)		(6,139)		(5,556)		(3,221)		(2,199)
General and administrative expenses	(5,625)		(6,968)		(7,928)		(4,442)		(3,985)
Depreciation and amortization expense	(49,722)		(72,793)		(78,174)		(26,210)		(17,384)
Casualty gains (losses), net	191		5,592		1,393		—		—
Interest expense	(22,093)		(20,994)		(20,531)		(10,757)		(8,700)
Gain on sale of real estate assets, net	—		—		94,712		76,179		11,492
Loss on extinguishment of debt	—		—		—		(10,261)		—
Other income (expense)	765		294		443		—		—
Loss from investments in unconsolidated<br> real estate entities	(1,477)		(871)		(63)		—		—
Merger and integration costs	(275)		(1,307)		(1,895)		(41,787)		(5,276)
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564

(a)Included in the three months ended September 30, 2022 is a refund of previously paid employer payroll taxes of $0.7 million from a portion of an employee retention credit received.

(b)Combined same-store portfolio consists of 113 properties, which represent 33,804 units.

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 and 2021

Dollars in thousands, except per unit data

	For the Three Months Ended September 30,						For the Nine Months Ended<br> September 30,
	2022		2021		% change		2022		2021		% change
Revenue:
Rental and other property revenue	$	151,030	$	136,563	10.6	%	$	439,292	$	395,774	11.0	%
Property Operating Expenses:
Real estate taxes	18,399		16,143		14.0	%	56,476		53,192		6.2	%
Property insurance	3,523		3,170		11.1	%	9,310		8,542		9.0	%
Personnel expenses (a)	11,921		12,064		(1.2)	%	36,221		35,282		2.7	%
Utilities	8,007		7,244		10.5	%	22,393		21,170		5.8	%
Repairs and maintenance	6,037		5,399		11.8	%	16,278		14,223		14.4	%
Contract services	5,317		4,915		8.2	%	15,165		14,006		8.3	%
Advertising expenses	1,459		1,334		9.4	%	3,861		3,900		(1.0)	%
Other expenses	1,801		1,488		21.0	%	5,118		4,591		11.5	%
Total property operating expenses	56,464		51,757		9.1	%	164,822		154,906		6.4	%
Combined same-store portfolio NOI (b)	$	94,566	$	84,806	11.5	%	$	274,470	$	240,868	14.0	%	Combined same-store portfolio NOI margin	62.6	%	62.1	%	0.5	%	62.5	%	60.9	%	1.6	%
---	---	---	---	---	---	---	---	---	---	---	---	---
Average occupancy	94.2	%	96.5	%	(2.3)	%	95.0	%	96.0	%	(1.0)	%	Average effective monthly rent, per unit	$	1,479	$	1,305	13.3	%	$	1,421	$	1,270	11.9	%
---	---	---	---	---	---	---	---	---	---	---	---	---
Reconciliation of combined same-store portfolio NOI to net income (loss):
Combined same-store portfolio NOI	$	94,566	$	84,806			$	274,470	$	240,868
Combined non same-store portfolio NOI	5,767		7,054				15,626		17,038
Pre-Merger STAR Portfolio NOI	—		(54,432)				—		(151,517)
Other revenue	300		188				805		647
Property management expenses	(5,744)		(2,199)				(17,440)		(6,318)
General and administrative expenses	(5,625)		(3,985)				(20,521)		(14,168)
Depreciation and amortization expense	(49,722)		(17,384)				(200,688)		(50,699)
Casualty gains (losses), net	191		—				7,176		(359)
Interest expense	(22,093)		(8,700)				(63,618)		(25,644)
Gain on sale of real estate assets, net	—		11,492				94,712		11,492
Other income (expense)	765		—				1,501		—
Loss from investments in unconsolidated<br> real estate entities	(1,477)		—				(2,411)		—
Merger and integration costs	(275)		(5,276)				(3,477)		(5,276)
Net income (loss)	$	16,653	$	11,564			$	86,135	$	16,064

(a)Included in the three and nine months ended September 30, 2022 is a refund of previously paid employer payroll taxes of $0.7 million from a portion of an employee retention credit received.

(b)Combined same-store portfolio consists of 113 properties, which represent 33,804 units.

NET OPERATING INCOME BRIDGE

TRAILING FIVE QUARTERS

Dollars in thousands

	For the Three Months Ended
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Rental and other property revenue
Combined same-store portfolio (a)	$	151,030	$	146,556	$	141,706	$	138,712	$	136,563
Combined non same-store portfolio	9,270		8,087		8,271		12,546		12,517
Total rental and other property revenue	160,300		154,643		149,977		151,258		149,080
Property operating expenses
Combined same-store portfolio (a)	56,464		55,821		52,537		51,698		51,757
Combined non same-store portfolio	3,503		3,155		3,346		4,623		5,463
Total property operating expenses	59,967		58,976		55,883		56,321		57,220
NOI
Combined same-store portfolio (a)	94,566		90,735		89,169		87,014		84,806
Combined non same-store portfolio	5,767		4,932		4,925		7,923		7,054
Total property NOI	$	100,333	$	95,667	$	94,094	$	94,937	$	91,860
Reconciliation of NOI to net income (loss)
Total property NOI	$	100,333	$	95,667	$	94,094	$	94,937	$	91,860
Pre-Merger STAR Portfolio NOI	—		—		—		(45,086)		(54,432)
Other revenue	300		120		385		113		188
Property management expenses	(5,744)		(6,139)		(5,556)		(3,221)		(2,199)
General and administrative expenses	(5,625)		(6,968)		(7,928)		(4,442)		(3,985)
Depreciation and amortization expense	(49,722)		(72,793)		(78,174)		(26,210)		(17,384)
Casualty gains (losses), net	191		5,592		1,393		—		—
Interest expense	(22,093)		(20,994)		(20,531)		(10,757)		(8,700)
Gain on sale of real estate assets, net	—		—		94,712		76,179		11,492
Loss on extinguishment of debt	—		—		—		(10,261)		—
Other income (expense), net	765		294		443		—		—
Loss from unconsolidated real estate<br> entities	(1,477)		(871)		(63)		—		—
Merger and integration costs	(275)		(1,307)		(1,895)		(41,787)		(5,276)
Net income (loss)	$	16,653	$	(7,399)	$	76,880	$	29,465	$	11,564

(a)Combined same-store portfolio consists of 113 properties, which represent 33,804 units.

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED SEPTEMBER 30, 2022

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	2022		2021		% Change		2022		2021		% Change		2022		2021		% Change		2022		2021		% Change		2022		2021		% Change
Atlanta, GA	13	5,180	$	23,680	$	21,591	9.7	%	$	9,123	$	7,535	21.1	%	$	14,558	$	14,056	3.6	%	93.5	%	97.0	%	(3.6)	%	$	1,579	$	1,373	15.0	%
Dallas, TX	13	3,685	19,091		17,132		11.4	%	7,879		7,454		5.7	%	11,212		9,678		15.8	%	94.7	%	97.1	%	(2.4)	%	1,713		1,507		13.6	%
Denver, CO	9	2,292	11,677		10,651		9.6	%	3,737		3,592		4.0	%	7,940		7,060		12.5	%	95.0	%	96.5	%	(1.6)	%	1,655		1,510		9.6	%
Columbus, OH	10	2,510	10,056		9,215		9.1	%	3,759		2,959		27.1	%	6,297		6,256		0.6	%	93.8	%	96.1	%	(2.3)	%	1,324		1,186		11.6	%
Indianapolis, IN	8	2,256	8,810		7,864		12.0	%	3,522		3,159		11.5	%	5,288		4,705		12.4	%	94.5	%	96.8	%	(2.3)	%	1,274		1,124		13.3	%
Raleigh - Durham, NC	6	1,690	7,461		6,693		11.5	%	2,433		2,200		10.6	%	5,028		4,493		11.9	%	94.1	%	95.7	%	(1.6)	%	1,462		1,266		15.4	%
Oklahoma City, OK	8	2,147	7,613		6,892		10.5	%	2,658		2,621		1.4	%	4,955		4,271		16.0	%	94.6	%	96.6	%	(2.0)	%	1,131		1,002		12.8	%
Houston, TX	7	1,932	8,098		7,643		6.0	%	3,721		3,614		2.9	%	4,378		4,028		8.7	%	93.9	%	97.3	%	(3.4)	%	1,410		1,283		9.9	%
Memphis, TN	4	1,383	6,193		5,485		12.9	%	2,115		1,949		8.5	%	4,077		3,536		15.3	%	92.0	%	95.4	%	(3.4)	%	1,520		1,296		17.3	%
Nashville, TN	3	1,236	5,772		5,269		9.5	%	1,934		2,122		(8.9)	%	3,838		3,147		22.0	%	94.5	%	97.3	%	(2.9)	%	1,548		1,364		13.5	%
Tampa-St. Petersburg, FL	4	1,104	5,703		4,727		20.6	%	2,070		1,825		13.4	%	3,633		2,902		25.2	%	94.1	%	95.7	%	(1.6)	%	1,719		1,409		22.0	%
Birmingham, AL	2	1,074	4,619		4,466		3.4	%	1,720		1,515		13.6	%	2,899		2,951		(1.8)	%	93.1	%	95.4	%	(2.3)	%	1,441		1,338		7.7	%
Louisville, KY	4	1,150	4,419		4,023		9.9	%	1,884		1,834		2.7	%	2,536		2,189		15.8	%	93.2	%	94.0	%	(0.8)	%	1,225		1,111		10.2	%
Lexington, KY	3	886	3,555		3,215		10.6	%	1,192		1,156		3.1	%	2,363		2,060		14.8	%	96.4	%	97.7	%	(1.3)	%	1,242		1,109		12.0	%
Huntsville, AL	2	599	2,679		2,505		7.0	%	799		719		11.2	%	1,880		1,786		5.2	%	94.3	%	97.6	%	(3.3)	%	1,464		1,346		8.8	%
Myrtle Beach, SC - Wilmington, NC	3	628	2,632		2,222		18.4	%	756		727		4.0	%	1,876		1,495		25.5	%	93.9	%	95.8	%	(1.9)	%	1,380		1,138		21.3	%
Cincinnati, OH	2	542	2,593		2,251		15.2	%	886		934		(5.2)	%	1,708		1,317		29.7	%	96.1	%	97.0	%	(0.9)	%	1,495		1,331		12.3	%
Greenville, SC	1	702	2,528		2,313		9.3	%	928		918		1.1	%	1,601		1,395		14.7	%	94.6	%	95.5	%	(0.9)	%	1,213		1,075		12.8	%
Charleston, SC	2	518	2,513		2,263		11.0	%	1,142		998		14.4	%	1,370		1,265		8.3	%	93.9	%	96.4	%	(2.4)	%	1,572		1,367		15.0	%
Chicago, IL	1	374	1,931		1,817		6.3	%	705		716		(1.5)	%	1,226		1,101		11.3	%	94.1	%	96.1	%	(2.0)	%	1,727		1,591		8.5	%
San Antonio, TX	1	306	1,460		1,308		11.6	%	556		602		(7.6)	%	904		706		28.0	%	97.1	%	98.2	%	(1.1)	%	1,495		1,351		10.6	%
Charlotte, NC	1	208	1,231		1,056		16.5	%	343		325		5.5	%	888		731		21.4	%	95.6	%	96.0	%	(0.4)	%	1,834		1,561		17.5	%
Orlando, FL	1	297	1,468		1,335		10.0	%	610		553		10.2	%	859		782		9.8	%	91.4	%	96.5	%	(5.1)	%	1,713		1,482		15.6	%
Asheville, NC	1	252	1,097		943		16.2	%	323		292		10.6	%	773		651		18.8	%	95.9	%	97.9	%	(2.1)	%	1,423		1,205		18.2	%
Norfolk, VA	1	183	1,018		942		8.0	%	342		301		13.4	%	676		640		5.5	%	96.2	%	98.3	%	(2.1)	%	1,840		1,635		12.5	%
Fort Wayne, IN	1	222	967		847		14.2	%	322		270		19.0	%	646		577		11.9	%	95.8	%	97.3	%	(1.5)	%	1,392		1,226		13.5	%
Austin, TX	1	256	1,311		1,149		14.1	%	667		532		25.3	%	644		617		4.5	%	93.6	%	94.2	%	(0.6)	%	1,690		1,452		16.4	%
Chattanooga, TN	1	192	853		746		14.3	%	340		336		1.2	%	514		411		25.0	%	96.0	%	98.1	%	(2.1)	%	1,412		1,227		15.0	%
Total / Weighted Average	113	33,804	$	151,030	$	136,563	10.6	%	$	56,464	$	51,757	9.1	%	$	94,566	$	84,806	11.5	%	94.2	%	96.5	%	(2.3)	%	$	1,479	$	1,305	13.3	%

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

NINE MONTHS ENDED SEPTEMBER 30, 2022

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	2022		2021		% Change		2022		2021		% Change		2022		2021		% Change		2022		2021		% Change		2022		2021		% Change
Atlanta, GA	13	5,180	$	69,153	$	62,409	10.8	%	$	25,501	$	22,328	14.2	%	$	43,652	$	40,082	8.9	%	94.2	%	96.5	%	(2.3)	%	$	1,515	$	1,328	14.1	%
Dallas, TX	13	3,685	55,708		50,214		10.9	%	24,074		23,018		4.6	%	31,634		27,196		16.3	%	95.6	%	96.2	%	(0.6)	%	1,651		1,489		10.8	%
Denver, CO	9	2,292	33,729		30,570		10.3	%	10,566		10,402		1.6	%	23,163		20,169		14.8	%	95.4	%	95.7	%	(0.3)	%	1,601		1,465		9.3	%
Columbus, OH	10	2,510	29,368		26,451		11.0	%	11,275		10,606		6.3	%	18,093		15,845		14.2	%	95.0	%	95.4	%	(0.4)	%	1,273		1,156		10.1	%
Indianapolis, IN	8	2,256	25,557		22,880		11.7	%	10,230		9,453		8.2	%	15,328		13,427		14.2	%	95.0	%	96.6	%	(1.7)	%	1,227		1,089		12.7	%
Oklahoma City, OK	8	2,147	22,067		19,933		10.7	%	7,623		7,494		1.7	%	14,444		12,439		16.1	%	95.5	%	96.4	%	(0.9)	%	1,087		974		11.7	%
Raleigh - Durham, NC	6	1,690	21,412		19,450		10.1	%	7,271		6,529		11.4	%	14,141		12,921		9.4	%	95.1	%	95.8	%	(0.7)	%	1,383		1,227		12.7	%
Houston, TX	7	1,932	24,054		22,729		5.8	%	11,424		11,050		3.4	%	12,630		11,679		8.1	%	94.5	%	96.4	%	(1.9)	%	1,374		1,280		7.3	%
Memphis, TN	4	1,383	17,646		15,920		10.8	%	6,019		5,552		8.4	%	11,627		10,367		12.1	%	93.5	%	96.3	%	(2.9)	%	1,442		1,247		15.6	%
Nashville, TN	3	1,236	16,914		15,233		11.0	%	5,770		5,835		(1.1)	%	11,144		9,398		18.6	%	95.5	%	96.3	%	(0.8)	%	1,488		1,325		12.4	%
Tampa-St. Petersburg, FL	4	1,104	16,192		13,623		18.9	%	6,119		5,459		12.1	%	10,074		8,165		23.4	%	94.4	%	94.8	%	(0.4)	%	1,621		1,358		19.4	%
Birmingham, AL	2	1,074	13,911		12,835		8.4	%	5,268		4,823		9.2	%	8,642		8,013		7.9	%	94.3	%	94.9	%	(0.6)	%	1,410		1,296		8.8	%
Louisville, KY	4	1,150	13,025		11,689		11.4	%	5,479		5,202		5.3	%	7,546		6,487		16.3	%	94.3	%	93.3	%	1.0	%	1,185		1,081		9.6	%
Lexington, KY	3	886	10,381		9,143		13.5	%	3,443		3,321		3.7	%	6,938		5,823		19.2	%	96.3	%	96.8	%	(0.5)	%	1,201		1,062		13.1	%
Huntsville, AL	2	599	7,847		7,372		6.4	%	2,303		1,934		19.0	%	5,544		5,438		2.0	%	95.7	%	97.7	%	(2.0)	%	1,425		1,307		9.0	%
Cincinnati, OH	2	542	7,568		6,431		17.7	%	2,444		2,507		(2.5)	%	5,124		3,924		30.6	%	96.6	%	96.1	%	0.5	%	1,450		1,290		12.5	%
Myrtle Beach, SC - Wilmington, NC	3	628	7,344		6,364		15.4	%	2,259		2,097		7.7	%	5,085		4,267		19.2	%	95.6	%	95.3	%	0.3	%	1,270		1,096		16.0	%
Greenville, SC	1	702	7,276		6,574		10.7	%	2,693		2,715		(0.8)	%	4,583		3,858		18.8	%	94.9	%	94.4	%	0.6	%	1,168		1,045		11.8	%
Charleston, SC	2	518	7,181		6,586		9.0	%	2,815		2,892		(2.7)	%	4,366		3,694		18.2	%	95.7	%	95.8	%	(0.1)	%	1,486		1,338		11.0	%
Chicago, IL	1	374	5,773		5,200		11.0	%	2,157		2,079		3.7	%	3,616		3,121		15.9	%	95.2	%	95.1	%	0.1	%	1,683		1,551		8.5	%
San Antonio, TX	1	306	4,334		3,728		16.3	%	1,815		1,841		(1.4)	%	2,519		1,887		33.5	%	96.5	%	94.8	%	1.6	%	1,472		1,315		12.0	%
Orlando, FL	1	297	4,254		4,000		6.4	%	1,760		1,645		7.0	%	2,494		2,355		5.9	%	94.5	%	96.6	%	(2.1)	%	1,617		1,457		11.0	%
Charlotte, NC	1	208	3,468		3,081		12.5	%	1,086		990		9.7	%	2,382		2,092		13.9	%	95.9	%	95.7	%	0.2	%	1,722		1,529		12.7	%
Asheville, NC	1	252	3,083		2,738		12.6	%	883		845		4.5	%	2,200		1,894		16.2	%	96.7	%	97.9	%	(1.2)	%	1,338		1,170		14.4	%
Austin, TX	1	256	3,849		3,326		15.7	%	1,740		1,628		6.9	%	2,109		1,698		24.2	%	95.6	%	93.7	%	1.9	%	1,620		1,439		12.5	%
Norfolk, VA	1	183	2,893		2,703		7.0	%	918		874		4.9	%	1,976		1,829		8.1	%	95.4	%	97.8	%	(2.4)	%	1,782		1,578		12.9	%
Fort Wayne, IN	1	222	2,823		2,445		15.5	%	928		801		15.7	%	1,896		1,643		15.4	%	95.4	%	97.4	%	(2.0)	%	1,351		1,186		13.9	%
Chattanooga, TN	1	192	2,482		2,144		15.8	%	961		986		(2.6)	%	1,521		1,157		31.4	%	96.6	%	97.8	%	(1.2)	%	1,367		1,176		16.3	%
Total / Weighted Average	113	33,804	$	439,292	$	395,774	11.0	%	$	164,822	$	154,906	6.4	%	$	274,470	$	240,868	14.0	%	95.0	%	96.0	%	(1.0)	%	$	1,421	$	1,270	11.9	%

TOTAL PORTFOLIO NOI EXPOSURE BY MARKET

Dollars in thousands, except rent per unit

							For the Three Months Ended September 30, 2022
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	$	1,057,156	93.1	%	$	1,578	$	14,556	14.5	%
Dallas, TX	14	4,007	846,383		95.6	%	1,722		12,329		12.3	%
Denver, CO (1)	9	2,292	603,321		95.8	%	1,655		7,940		7.9	%
Columbus, OH	10	2,510	365,300		95.1	%	1,323		6,297		6.3	%
Indianapolis, IN	8	2,256	324,289		95.0	%	1,274		5,288		5.3	%
Raleigh - Durham, NC	6	1,690	254,799		94.6	%	1,462		5,028		5.0	%
Oklahoma City, OK	8	2,147	316,818		94.1	%	1,126		4,955		4.9	%
Nashville, TN	5	1,508	364,016		93.4	%	1,565		4,800		4.8	%
Houston, TX	7	1,932	321,804		94.9	%	1,409		4,378		4.4	%
Memphis, TN	4	1,383	158,953		93.4	%	1,519		4,077		4.1	%
Tampa-St. Petersburg, FL	5	1,452	289,386		94.7	%	1,736		3,817		3.8	%
Louisville, KY (2)	5	1,550	193,937		94.0	%	1,181		3,309		3.3	%
Birmingham, AL	2	1,074	231,907		90.8	%	1,444		2,899		2.9	%
Huntsville, AL	3	873	190,086		94.8	%	1,493		2,775		2.8	%
Lexington, KY	3	886	159,694		97.6	%	1,242		2,363		2.4	%
Charlotte, NC	3	714	189,159		95.4	%	1,690		2,155		2.1	%
Myrtle Beach, SC - Wilmington, NC	3	628	67,713		96.2	%	1,380		1,876		1.9	%
Cincinnati, OH	2	542	121,970		96.4	%	1,542		1,708		1.7	%
Greenville, SC	1	702	123,093		96.7	%	1,213		1,601		1.6	%
Charleston, SC	2	518	81,186		95.9	%	1,573		1,370		1.4	%
Chicago, IL	1	374	90,073		94.1	%	1,727		1,226		1.2	%
San Antonio, TX	1	306	57,017		98.7	%	1,495		904		0.9	%
Orlando, FL	1	297	50,213		94.3	%	1,713		859		0.9	%
Asheville, NC	1	252	29,243		95.2	%	1,423		774		0.8	%
Norfolk, VA	1	183	53,970		97.8	%	1,840		676		0.7	%
Fort Wayne, IN	1	222	44,098		94.1	%	1,392		646		0.6	%
Austin, TX	1	256	55,165		89.4	%	1,690		644		0.6	%
Terre Haute, IN (2)	1	250	46,030		93.2	%	1,405		642		0.6	%
Chattanooga, TN	1	192	36,915		95.8	%	1,412		514		0.5	%
Total / Weighted Average	122	36,176	$	6,723,694	94.6	%	$	1,484	$	100,406	100.0	%

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

(2)Includes one property classified as held for sale.

VALUE ADD SUMMARY BY MARKET

PROJECT LIFE TO DATE AS OF SEPTEMBER 30, 2022

									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 (d)
Ongoing
Tampa-St. Petersburg, FL	3	888	662	652	$	274	24.1	%		$	1,382	$	15,192	25.4	%	22.1	%
Memphis, TN	2	862	621	610	248		24.8	%	11,408	1,031		12,439		26.8	%	22.9	%
Columbus, OH	4	1,045	498	486	270		28.2	%	11,431	711		12,141		29.1	%	26.5	%
Raleigh-Durham, NC	1	318	145	135	197		16.1	%	14,674	1,046		15,720		18.1	%	15.0	%
Atlanta, GA	4	1,484	397	400	243		35.0	%	9,043	667		9,710		34.9	%	32.7	%
Indianapolis, IN	1	236	51	44	266		24.1	%	13,235	805		14,040		32.7	%	22.8	%
Oklahoma City, OK	2	541	70	74	157		11.7	%	16,451	754		17,205		14.5	%	11.1	%
Dallas, TX	2	586	23	31	224		19.0	%	13,578	1,129		14,707		24.9	%	17.6	%
Austin, TX	1	256	10	11	147		14.3	%	12,332	1,148		13,480		12.2	%	13.1	%
Nashville, TN	1	724	24	17	219		17.4	%	15,147	1,721		16,868		17.4	%	15.6	%
Total / Weighted<br> Average	21	6,940	2,501	2,460	$	253	25.2	%	12,056	$	992	$	13,048	25.5	%	23.2	%
Future (e)
Atlanta, GA	3	1,340	—	—	—		—		—	—		—		—		—
Dallas, TX	3	876	—	—	—		—		—	—		—		—		—
Tampa-St. Petersburg, FL	1	348	—	—	—		—		—	—		—		—		—
Oklahoma City, OK	2	546	—	—	—		—		—	—		—		—		—
Columbus, OH	1	240	—	—	—		—		—	—		—		—		—
Total / Weighted<br> Average	10	3,350	—	—	—		—		—	—		—		—		—
Completed (f)
Raleigh-Durham, NC	1	328	325	309	$	184	15.3	%		$	2,108	$	16,571	15.3	%	13.3	%
Louisville, KY	2	728	702	683	221		17.6	%	15,013	2,257		17,269		17.6	%	15.2	%
Wilmington, NC	1	288	267	256	69		11.4	%	7,295	56		7,351		11.3	%	11.3	%
Atlanta, GA	1	494	451	440	176		23.4	%	9,030	1,773		10,804		23.0	%	19.6	%
Columbus, OH	1	264	241	234	103		15.7	%	7,850	613		8,463		15.7	%	14.6	%
Memphis, TN	1	191	173	167	263		29.0	%	10,910	561		11,470		29.2	%	27.6	%
Total / Weighted<br> Average	7	2,293	2,159	2,089	$	176	18.2	%		$	1,530	$	13,125	18.3	%	16.1	%
Grand Total/Weighted<br> Average	38	12,583	4,660	4,549	$	236	23.9	%		$	1,241	$	13,084	24.1	%	21.6	%
Sold/Held for Sale<br> Properties (g)		1,212	807	783	$	153	19.1	%		$	2,145	$	11,779	20.0	%	15.6	%

All values are in US Dollars.

(a) The rent premium reflects the per unit per month difference between the rental rate on the renovated unit 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.

(b)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.

(c)Calculated using the rent premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit.

(d)Calculated using the rent premium per unit per month, multiplied by 12, divided by the total renovation costs per unit.

(e)Renovation project start dates are scheduled in Q4 2022 through Q3 2023.

(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 that was classified as held for sale as of September 30, 2022 and Haverford, Crestmont and Creekside that were formerly a part of the value add program but were sold in February 2022 (with respect to Haverford) and December 2021 (with respect to Crestmont and Creekside).

INVESTMENT AND DEVELOPMENT ACTIVITY

Dollars in thousands with respect to Contract Price and Price per Unit

| 2022 ACQUISITIONS | | --- || Property | Market | Units | Acquisition Date | Purchase Price | | Price per Unit | | Average Rent Per Unit at Acquisition | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Views of Music City (Phase I) | Nashville, TN | 96 | April 6, 2022 | $ | 25,440 | $ | 265 | $ | 1,483 | | Cyan Mallard Creek | Charlotte, NC | 234 | August 16, 2022 | 80,000 | | 342 | | 1,701 | | | The Enclave at Tranquility Lake | Tampa, FL | 348 | September 13, 2022 | 98,000 | | 282 | | 1,714 | | | Total | | 678 | | $ | 203,440 | $ | 300 | $ | 1,677 || 2022 DISPOSITIONS | | --- || Property | Location | Units | Disposition Date | Sale Price | | Price per Unit | | Average Rent Per Unit at Disposition | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Riverchase | Indianapolis, IN | 216 | January 18, 2022 | $ | 31,000 | $ | 144 | $ | 1,028 | | Heritage Park | Oklahoma City, OK | 453 | February 2, 2022 | 48,500 | | 107 | | 767 | | | Raindance | Oklahoma City, OK | 504 | February 2, 2022 | 47,500 | | 94 | | 669 | | | Haverford | Louisville, KY | 160 | February 2, 2022 | 31,050 | | 194 | | 1,146 | | | Total | | 1,333 | | $ | 158,050 | $ | 119 | $ | 818 || ASSETS HELD FOR SALE AS OF SEPTEMBER 30, 2022 | | --- || Property | Location | Units | | --- | --- | --- | | Meadows Apartments | Louisville, KY | 400 | | Sycamore Terrace | Terre Haute, IN | 250 | | Total | | 650 || REAL ESTATE UNDER DEVELOPMENT | | --- || | | | | Projected | | | Development Costs | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Property | Location | Planned Units | Start Date | Initial Occupancy Date | Completion Date | Stabilization Date | Total Estimated | | Total through 9/30/22 | | Remaining | | | Destination at Arista | Denver, CO | 325 | 3Q 2021 | 2Q 2023 | 4Q 2023 | 1Q 2025 | $ | 101,900 | $ | 66,367 | $ | 35,533 | | Flatirons Apartments | Denver, CO | 296 | 4Q 2022 | 3Q 2024 | 3Q 2024 | 2Q 2026 | 120,561 | | 20,396 | | 100,165 | | | Total | | 621 | | | | | $ | 222,461 | $ | 86,763 | $ | 135,698 || 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 | Richmond, VA | 402 | Q2 2023 | $ | 83,383 | $ | 64,000 | 84.8 | % | $ | — | $ | 17,152 | | Views of Music City II / The Crockett (a) | Nashville, TN | 408 | Q4 2022 & Q4 2023 | 66,079 | | 43,275 | | 50.0 | % | — | | 11,198 | | | Virtuoso (b) | Huntsville, AL | 400 | Q3 2022 | 127,500 | | 86,381 | | 90.0 | % | 20,748 | | 14,170 | | | Lakeline Station | Austin, TX | 378 | Q2 2024 | 109,524 | | 76,500 | | 90.0 | % | 11,107 | | 18,810 | | | The Mustang | Dallas, TX | 275 | Q3 2024 | 109,583 | | 79,447 | | 85.0 | % | 16,367 | | 9,278 | | | Total | | 1,863 | | $ | 496,069 | $ | 349,603 | | | $ | 48,222 | $ | 70,608 |

(a)Views of Music City Phase Two consists of 209 units with an estimated delivery date of Q4 2023. The Crockett, formerly known as the Jackson, consists of 199 units with an estimated delivery date of year-end 2022.

(b)Virtuoso consists of 178 Phase One units acquired by the joint venture on March 31, 2022. Additionally, 222 Phase Two units are estimated to be completed and acquired by the joint venture in the fourth quarter of 2022.

DEBT SUMMARY AS OF SEPTEMBER 30, 2022

Dollars in thousands

	Amount		Weighted Average Rate (d)		Type	Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)	$	197,978	3.6	%	Floating	3.3
Unsecured term loans (b)	600,000		3.4	%	Floating	4.8
Secured credit facilities (c)	635,128		4.2	%	Floating/Fixed	6.2
Mortgages	1,233,097		3.9	%	Fixed	5.4
Total Principal	2,666,203		3.8	%		5.3
Loan premiums (discounts), net	63,340
Unamortized deferred financing costs	(15,918)
Total Debt	2,713,625
Market Equity Capitalization, at period end	3,850,365
Total Capitalization	$	6,563,990

(a)Unsecured revolver total capacity is $500,000, of which $197,978 was drawn as of September 30, 2022. 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) $558,880 secured credit facility, three tranches of which, in an aggregate principal amount of $518,412, 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 September 30, 2022, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization and discount accretion was 3.9%.

(e)As of September 30, 2022, we maintained the following 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	2.176	%	—		—
Swap	$	150,000	5/17/2022	5/17/2027	0.985	%	—		—
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	%

DEBT COVENANT AND UNENCUMBERED ASSET STATS AS OF SEPTEMBER 30, 2022

Dollars in thousands

Debt Covenant Summary (a)

	Requirement	Actual	Compliance
Consolidated leverage ratio	≤ 60%	34.6%	Yes
Consolidated fixed charge coverage ratio	≥ 1.5x	3.2x	Yes
Unsecured leverage ratio	≤ 60%	25.6%	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 included as exhibit 10.1 of the Form 8-K filed on July 27, 2022.

Encumbered & Unencumbered Statistics

	Total Units	% of Total		Gross Assets		% of Total		Q3 2022 NOI		% of Total
Unencumbered assets	18,164	50.2	%	$	3,457,955	48.7	%	$	50,250	50.0	%
Encumbered assets	18,012	49.8	%	3,639,325		51.3	%	50,156		50.0	%
	36,176	100.0	%	$	7,097,280	100.0	%	$	100,406	100.0	%

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.

EBITDA and Adjusted EBITDA

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

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
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Total debt	$	2,713,625	$	2,552,936	$	2,542,088	$	2,705,336	$	1,018,729
Less: cash and cash equivalents	(23,753)		(11,378)		(23,971)		(35,972)		(8,720)
Less: loan discounts and premiums, net	(63,340)		(66,091)		(68,832)		(71,586)		—
Total net debt	$	2,626,532	$	2,475,467	$	2,449,285	$	2,597,778	$	1,010,009

Net Operating Income

Same-Store Properties and Same-Store Portfolio

IRT Same-Store Portfolio

STAR Same-Store Portfolio

consolidated by IRT through September 30, 2022 (other than properties held for sale as of September 30, 2022).

Combined Same-Store Portfolio

Combined Non Same-Store Portfolio

Pre-Merger STAR Portfolio NOI

Total Gross Assets

	As of
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
Total assets	$	6,633,533	$	6,386,634	$	6,387,322	$	6,506,696	$	1,846,911
Plus: accumulated depreciation (a)	386,606		337,338		291,199		254,123		247,563
Plus: accumulated amortization	77,141		77,062		52,856		24,829		20,269
Total gross assets	$	7,097,280	$	6,801,034	$	6,731,377	$	6,785,648	$	2,114,743

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

APPENDIX A

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 and 2021

Dollars in thousands, except per unit data

	IRT Same-Store Portfolio (a)				STAR Same-Store Portfolio (b)				Combined Same-Store Portfolio(c)
	Q3 2022	Q3 2021	% Change		Q3 2022	Q3 2021	% Change		Q3 2022	Q3 2021	% Change
Revenue:
Rental and other<br> property revenue	$56,947	50,881	11.9	%	94,083	$85,682	9.8	%	$151,030	$136,563	10.6	%
Property Operating Expenses:
Real estate taxes	6,172	5,757	7.2	%	12,227	10,386	17.7	%	18,399	16,143	14.0	%
Property insurance	1,334	1,127	18.4	%	2,189	2,043	7.1	%	3,523	3,170	11.1	%
Personnel expenses	4,761	4,520	5.3	%	7,160	7,544	(5.1)	%	11,921	12,064	(1.2)	%
Utilities	2,804	2,580	8.7	%	5,203	4,664	11.6	%	8,007	7,244	10.5	%
Repairs and<br> maintenance	2,062	2,117	(2.6)	%	3,975	3,282	21.1	%	6,037	5,399	11.8	%
Contract services	1,995	1,888	5.7	%	3,322	3,027	9.7	%	5,317	4,915	8.2	%
Advertising expenses	651	482	35.1	%	808	852	(5.2)	%	1,459	1,334	9.3	%
Other expenses	748	516	45.0	%	1,053	972	8.3	%	1,801	1,488	21.0	%
Total property operating<br> expenses	20,527	18,986	8.1	%	35,937	32,771	9.7	%	56,464	51,757	9.1	%
Same-store NOI (a)	$36,420	31,895	14.2	%	58,146	$52,911	9.9	%	$94,566	$84,806	11.5	%		Same-store NOI margin	64.0	%	62.7	%	1.3	%	61.8	%	61.8	%	0.1	%	62.6	%	62.1	%	0.5	%
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Average occupancy	93.6	%	96.1	%	(2.6)	%	94.6	%	96.8	%	(2.2)	%	94.2	%	96.5	%	(2.3)	%		Average effective<br> monthly rent, per unit	$	1,445	$	1,251	15.5	%	$	1,500	$	1,338	12.1	%	$	1,479	$	1,305	13.3	%
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	IRT Same-Store Portfolio (a)				STAR Same-Store Portfolio (b)				Combined Same-Store Portfolio(c)
---	---	---	---	---	---	---	---	---	---	---	---	---
	YTD 2022	YTD 2021	% Change		YTD 2022	YTD 2021	% Change		YTD 2022	YTD 2021	% Change
Revenue:
Rental and other<br> property revenue	$163,864	147,547	11.1	%	275,428	$248,226	11.0	%	$439,292	$395,774	11.0	%
Property Operating Expenses:
Real estate taxes	18,615	18,087	2.9	%	37,861	35,105	7.9	%	56,476	53,193	6.2	%
Property insurance	3,692	3,277	12.7	%	5,618	5,265	6.7	%	9,310	8,542	9.0	%
Personnel expenses	14,178	12,829	10.5	%	22,043	22,454	(1.8)	%	36,221	35,282	2.7	%
Utilities	8,053	7,348	9.6	%	14,340	13,821	3.8	%	22,393	21,170	5.8	%
Repairs and<br> maintenance	6,187	5,593	10.6	%	10,091	8,630	16.9	%	16,278	14,223	14.4	%
Contract services	5,793	5,542	4.5	%	9,372	8,464	10.7	%	15,165	14,006	8.3	%
Advertising expenses	1,646	1,436	14.6	%	2,215	2,464	(10.1)	%	3,861	3,900	(1.0)	%
Other expenses	1,995	1,548	28.9	%	3,123	3,042	2.7	%	5,118	4,590	11.5	%
Total property operating<br> expenses	60,159	55,661	8.1	%	104,663	99,245	5.5	%	164,822	154,906	6.4	%
Same-store NOI (a)	$103,705	91,887	12.9	%	170,765	$148,981	14.6	%	$274,470	$240,868	14.0	%		Same-store NOI margin	63.3	%	62.3	%	1.0	%	62.0	%	60.0	%	2.0	%	62.5	%	60.9	%	1.6	%
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Average occupancy	94.8	%	95.8	%	(1.0)	%	95.1	%	96.1	%	(1.0)	%	95.0	%	96.0	%	(1.0)	%		Average effective<br> monthly rent, per unit	$	1,372	$	1,213	13.1	%	$	1,452	$	1,306	11.2	%	$	1,421	$	1,270	11.9	%
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---

(a)IRT Same-Store Portfolio consists of 48 properties, which represent 13,110 units.

(b)STAR Same-Store Portfolio consists of 65 properties, which represent 20,694 units.

(c)Combined Same-Store Portfolio consists of 113 properties, which represent 33,804 units.