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): April 26, 2023

_____________________________________________

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 April 26, 2023, IRT issued a press release regarding its earnings for the three months ended March 31, 2023. 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.
April 26, 2023	By:	/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

Document

Exhibit 99.1

Independence Realty Trust Announces First Quarter 2023 Financial Results

PHILADELPHIA – (BUSINESS WIRE) – April 26, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its first quarter 2023 financial results.

First Quarter Highlights

•Net income available to common shares of $8.6 million for the quarter ended March 31, 2023 compared to $74.6 million for the quarter ended March 31, 2022.

•Earnings per diluted share of $0.04 for the quarter ended March 31, 2023 compared to $0.34 for the quarter ended March 31, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 8.2% for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022.

•Core Funds from Operations (“CFFO”) of $62.5 million for the quarter ended March 31, 2023 compared to $57.7 million for the quarter ended March 31, 2022. CFFO per share was $0.27 for the first quarter of 2023, as compared to $0.25 for the first quarter of 2022.

•Adjusted EBITDA of $87.6 million for the quarter ended March 31, 2023 compared to $81.4 million for the quarter ended March 31, 2022.

•Value add program completed renovations at 635 units during the quarter ended March 31, 2023, achieving a weighted average return on investment during the quarter of 17.8%.

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

“For the first quarter of 2023, we delivered an 8.2% increase in same-store NOI, led by blended lease over lease rental growth of 4.0%”, said Scott Schaeffer, Chairman and CEO of IRT. “ As the second quarter progresses, our focus on improving occupancy is materializing, as we’re nearing 95% occupancy at our same-store non-value add communities. In addition, the value add program continues to deliver outsized results and we are on track to achieve our volume targets for 2023 with 635 units renovated during the first quarter. We remain confident in the long-term benefits of our portfolio, as we continue to see strong fundamentals in our sunbelt markets and property class type.”

Same-Store Portfolio(1) Operating Results

	First Quarter 2023 Compared to First Quarter 2022
Rental and other property revenue	7.5% increase
Property operating expenses	6.4% increase
Net operating income (“NOI”)	8.2% increase
Portfolio average occupancy	220 bps decrease to 93.1%
Portfolio average rental rate	10.8% increase to $1,530
NOI Margin	40 bps increase to 63.3%

(1)Same-store portfolio includes 116 properties, which represent 34,571 units.

Operating Metrics

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

	1Q 2023		2Q 2023(3)
Same-Store Portfolio(1)
Average Occupancy	93.1	%	93.9	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	3.1	%	4.2	%
Renewal Leases	4.8	%	1.7	%
Blended	4.0	%	2.4	%
Resident retention rate	48.2	%	56.7	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	93.8	%	94.4	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.6	%	3.9	%
Renewal Leases	4.2	%	1.7	%
Blended	3.4	%	2.3	%
Resident retention rate	48.5	%	56.9	%
Value Add (19 properties with Ongoing Value Add)
Average Occupancy	90.1	%	91.7	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	5.4	%	5.4	%
Renewal Leases	7.3	%	1.7	%
Blended	6.3	%	2.9	%
Resident retention rate	46.5	%	56.2	%

(1)Same-store portfolio includes 116 properties, which represent 34,571 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)2Q 2023 average occupancy and resident retention rates are as through April 24, 2023. 2Q 2023 new lease and renewal rates are for leases commencing during 2Q 2023 that were signed as of April 24, 2023.

(4)As of April 24, 2023, same-store portfolio occupancy was 94.3%, same-store portfolio excluding ongoing value add occupancy was 94.7%, and value add occupancy was 92.3%.

Value Add Program

We completed renovations on 635 units during the quarter ended March 31, 2023, achieving a return on investment of 17.8%, with an average cost per unit renovated of $15,408, and average rent increase per renovated unit of $228. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of March 31, 2023.

Investment Activity

Dispositions

On February 28, 2023, we sold Eagle Lake Landing apartments located in Indianapolis, Indiana for $37.3 million and recognized a gain on sale of $1.0 million. Proceeds from the sale were used to reduce indebtedness.

Capital Expenditures

For the three months ended March 31, 2023, recurring capital expenditures for the total portfolio were $4.1 million, or $117 per unit.

Capital Markets

New Swap Agreement

On March 16, 2023, we entered into an interest rate swap contract with a notional value of $200.0 million, a strike rate of 3.39% and a maturity date of March 17, 2030.

Dividend Distribution

On March 14, 2023, our Board of Directors declared a quarterly cash dividend of $0.14 per share of our common stock, which was paid on April 21, 2023 to stockholders of record at the close of business on March 31, 2023.

2023 EPS and CFFO Guidance

We affirm our EPS and CFFO per share and same-store NOI targets. Earnings per diluted share is projected to be in the range of $0.23 to $0.27. 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.

2023 Full Year EPS and CFFO Guidance(1)(2)	Low		High
Earnings per share	$	0.23	$	0.27
Adjustments:
Depreciation and amortization	0.95		0.95
Gain on sale of real estate assets(3)	(0.01)		(0.01)
Loan (premium accretion) discount amortization, net	(0.05)		(0.05)
Core FFO per share	$	1.12	$	1.16

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2023 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 230.0 million weighted average shares and units outstanding.

(3)Gain on sale of real estate assets includes one asset sale that occurred during the first quarter of 2023.

2023 Guidance Assumptions

Our key guidance assumptions for 2023 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Same-Store Portfolio	2023 Outlook(1)
Number of properties/units	116 properties / 34,571 units
Property revenue growth	5.7% to 7.0%
Controllable operating expense growth	3.3% to 5.4%
Real estate tax and insurance expense growth	8.1% to 9.1%
Total operating expense growth	5.2% to 6.9%
Property NOI growth	5.0% to 8.0%
Corporate Expenses
General and administrative & Property management expenses	$51.5 million to $53.5 million
Interest expense(2)	$104.5 million to $106.5 million
Transaction/Investment Volume(3)
Acquisition volume	None
Disposition volume	$35 million to $40 million
Capital Expenditures
Recurring	$19.0 million to $21.0 million
Value add & non-recurring	$78.0 million to $82.0 million
Development	$80.0 million to $90.0 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, April 27, 2023 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.833.470.1428, access code 034663. 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, May 4, 2023 by dialing 1.866.813.9403, access code 284598.

Supplemental Information

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

About Independence Realty Trust, Inc.

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

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.

These forward-looking statements involve estimates, projections, forecasts and assumptions and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, increased regulations generally and specifically on the rental housing market including legislation that may regulate rents or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of COVID-19 and other potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, 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, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

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

Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

Dollars in thousands, except per share data (unaudited)

	For the Three Months Ended
	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$8,648	$33,631	$16,223	$(7,205)	$74,600
Earnings (loss) per share -- diluted	$0.04	$0.15	$0.07	$(0.03)	$0.34
Rental and other property revenue	$161,135	$162,493	$160,300	$154,643	$149,977
Property operating expenses	$59,255	$57,450	$59,967	$58,976	$55,883
NOI	$101,880	$105,043	$100,333	$95,667	$94,094
NOI margin	63.2%	64.6%	62.6%	61.9%	62.7%
Adjusted EBITDA	$87,594	$93,017	$89,264	$83,228	$81,375
CORE FFO per share	$0.27	$0.29	$0.28	$0.26	$0.25
Dividends per share	$0.14	$0.14	$0.14	$0.14	$0.12
CORE FFO payout ratio	51.9%	48.3%	50.0%	53.8%	48.0%
Portfolio Data:
Total gross assets	$7,045,306	$7,034,902	$7,097,280	$6,801,034	$6,731,377
Total number of operating properties	119	120	122	120	119
Total units	35,249	35,526	36,176	35,594	35,498
Period end occupancy	94.1%	93.6%	94.6%	95.7%	95.4%
Total portfolio average occupancy	93.1%	93.9%	94.2%	95.5%	95.2%
Total portfolio average effective monthly<br> rent, per unit	$1,535	$1,522	$1,484	$1,414	$1,374
Same-store portfolio period end occupancy (a)	94.1%	93.6%	94.6%	95.4%	95.6%
Same-store portfolio average occupancy (a)	93.1%	93.9%	94.2%	95.5%	95.3%
Same-store portfolio average effective monthly<br> rent, per unit (a)	$1,530	$1,520	$1,487	$1,420	$1,381
Capitalization:
Total debt (b)	$2,628,632	$2,631,645	$2,713,625	$2,552,936	$2,542,088
Common share price, period end	$16.03	$16.86	$16.73	$20.73	$26.44
Market equity capitalization	$3,694,970	$3,880,432	$3,850,365	$4,729,580	$6,031,873
Total market capitalization	$6,323,602	$6,512,077	$6,563,990	$7,282,516	$8,573,961
Total debt/total gross assets	37.3%	37.4%	38.2%	37.5%	37.8%
Net debt to Adjusted EBITDA (c)	7.3x	6.9x	7.2x	7.4x	7.6x
Interest coverage	4.0x	4.0x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,556,870	224,064,940	224,056,179	222,060,280	221,163,391
OP units outstanding	5,946,571	6,091,171	6,091,171	6,091,171	6,970,993
Common shares and OP units outstanding	230,503,441	230,156,111	230,147,350	228,151,451	228,134,384
Weighted average common shares and OP units	230,186,297	229,994,927	228,051,780	227,964,753	227,778,484

(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.

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

(c)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended March 31, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 7.3x, 6.9x, 7.4x, 7.4x, and 7.5x, respectively.

Schedule II

Independence Realty Trust Inc.

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

Dollars in thousands, except per share data

(unaudited)

	For the Three Months Ended March 31,
	2023		2022
Funds From Operations (FFO):
Net income (loss)	$	8,872	$	76,880
Add-Back (Deduct):
Real estate depreciation and amortization	53,287		77,943
Our share of real estate depreciation and amortization from investments<br> in unconsolidated real estate entities	418		—
Gain on sale of real estate assets, net, excluding prepayment gains	(314)		(94,712)
FFO	$	62,263	$	60,111
FFO per share	$	0.27	$	0.26
CORE Funds From Operations (CFFO):
FFO	$	62,263	$	60,111
Add-Back (Deduct):
Other depreciation and amortization	249		231
Casualty losses (gains), net	151		(1,393)
Loan (premium accretion) discount amortization, net	(2,755)		(2,754)
Prepayment (gains) losses on asset dispositions	(670)		—
Other expense (income), net	42		(380)
Merger and integration costs	—		1,895
Restructuring costs	3,213		—
CFFO	$	62,493	$	57,710
CFFO per share	$	0.27	$	0.25
Weighted-average shares and units outstanding	230,186,297		227,778,484

Schedule III

Independence Realty Trust Inc.

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

Dollars in thousands

(unaudited)

	For the Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net income (loss)	$	8,872	$	34,524	$	16,653	$	(7,399)	$	76,880
Other revenue	(239)		(306)		(300)		(120)		(385)
Property management expenses	6,371		6,593		5,744		6,139		5,556
General and administrative<br> expenses	8,154		5,739		5,625		6,968		7,928
Depreciation and amortization<br> expense	53,536		52,161		49,722		72,793		78,174
Casualty losses (gains), net	151		(1,690)		(191)		(5,592)		(1,393)
Interest expense	22,124		23,337		22,093		20,994		20,531
Gain on sale of real estate assets,<br> net	(985)		(17,044)		—		—		(94,712)
Other income, net	(93)		(57)		(765)		(294)		(443)
Loss (gain) from investments in<br> unconsolidated real estate entities	776		(242)		1,477		871		63
Merger and integration costs	—		2,028		275		1,307		1,895
Restructuring costs	3,213		—		—		—		—
NOI	$	101,880	$	105,043	$	100,333	$	95,667	$	94,094
Less: Non same-store portfolio NOI	2,577		3,624		2,711		2,101		2,328
Same-store portfolio NOI	$	99,303	$	101,419	$	97,622	$	93,566	$	91,766

(a)Same-store portfolio consists of 116 properties, which represent 34,571 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:	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net income (loss)	$	8,872	$	34,524	$	16,653	$	(7,399)	$	76,880
Add-Back (Deduct):
Interest expense	22,124		23,337		22,093		20,994		20,531
Depreciation and amortization	53,536		52,161		49,722		72,793		78,174
Casualty losses (gains),<br> net	151		(1,690)		(191)		(5,592)		(1,393)
Gain on sale of real estate assets,<br> net	(985)		(17,044)		—		—		(94,712)
Merger and integration costs	—		2,028		275		1,307		1,895
Loss (gain) from investments in<br> unconsolidated real estate entities	776		(242)		1,477		1,125		—
Other income, net	(93)		(57)		(765)		—		—
Restructuring costs	3,213		—		—		—		—
Adjusted EBITDA	$	87,594	$	93,017	$	89,264	$	83,228	$	81,375
INTEREST COST:
Interest expense	$	22,124	$	23,337	$	22,093	$	20,994	$	20,531
INTEREST COVERAGE:	4.0x		4.0x		4.0x		4.0x		4.0x

Schedule V

Independence Realty Trust, Inc.

Definitions

Average Effective Monthly Rent per Unit

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

Average Occupancy

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

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, income (loss) from investments in unconsolidated real estate entities, and restructuring costs. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

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

We believe that FFO and CFFO, each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, 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, merger and integration costs, and restructuring costs from the determination of FFO.

Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not

represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

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

Net Debt

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

	As of
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Total debt	$	2,628,632	$	2,631,645	$	2,713,625	$	2,552,936	$	2,542,088
Less: cash and cash equivalents	(12,448)		(16,084)		(23,753)		(11,378)		(23,971)
Less: loan discounts and premiums, net	(56,256)		(59,937)		(63,340)		(66,091)		(68,832)
Total net debt	$	2,559,928	$	2,555,624	$	2,626,532	$	2,475,467	$	2,449,285

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

Net Operating Income

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

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

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.

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
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Total assets	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634	$	6,387,322
Plus: accumulated depreciation (a)	475,001		426,097		386,606		337,338		291,199
Plus: accumulated amortization	76,558		76,710		77,141		77,062		52,856
Total gross assets	$	7,045,306	$	7,034,902	$	7,097,280	$	6,801,034	$	6,731,377

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

Document

Exhibit 99.2

NYSE: IRT

WWW.IRTLIVING.COM

TABLE OF CONTENTS

Company Information	3
Forward-Looking Statements	4
Earnings Release Text	5
Financial & Operating Highlights	11
Balance Sheets	12
Statements of Operations, FFO & CORE FFO
Trailing Five Quarters	13
ThreeMonths EndedMarch 31, 2023and2022	14
Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing Five Quarters	15
Same-Store Portfolio Net Operating Income and NOI Bridge
Trailing Five Quarters	16
ThreeMonths EndedMarch 31, 2023and2022	17
Same-Store Portfolio Net Operating Income by Market
Three Months EndedMarch 31, 2023and2022	18
Total Portfolio NOI Exposure by Market	19
Value Add Summary	20
Investment & Development Activity	21
Debt Summary	22
Debt Covenant & Unencumbered Asset Statistics	23
Definitions	24

Independence Realty Trust

March 31, 2023

Company Information:

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

Forward-Looking Statements

Independence Realty Trust Announces First Quarter 2023 Financial Results

First Quarter Highlights

•Net income available to common shares of $8.6 million for the quarter ended March 31, 2023 compared to $74.6 million for the quarter ended March 31, 2022.

•Earnings per diluted share of $0.04 for the quarter ended March 31, 2023 compared to $0.34 for the quarter ended March 31, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 8.2% for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022.

•Adjusted EBITDA of $87.6 million for the quarter ended March 31, 2023 compared to $81.4 million for the quarter ended March 31, 2022.

•Value add program completed renovations at 635 units during the quarter ended March 31, 2023, achieving a weighted average return on investment during the quarter of 17.8%.

Management Commentary

Same-Store Portfolio(1) Operating Results

	First Quarter 2023 Compared to First Quarter 2022
Rental and other property revenue	7.5% increase
Property operating expenses	6.4% increase
Net operating income (“NOI”)	8.2% increase
Portfolio average occupancy	220 bps decrease to 93.1%
Portfolio average rental rate	10.8% increase to $1,530
NOI Margin	40 bps increase to 63.3%

(1)Same-store portfolio includes 116 properties, which represent 34,571 units.

Operating Metrics

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

	1Q 2023		2Q 2023(3)
Same-Store Portfolio(1)
Average Occupancy	93.1	%	93.9	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	3.1	%	4.2	%
Renewal Leases	4.8	%	1.7	%
Blended	4.0	%	2.4	%
Resident retention rate	48.2	%	56.7	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	93.8	%	94.4	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.6	%	3.9	%
Renewal Leases	4.2	%	1.7	%
Blended	3.4	%	2.3	%
Resident retention rate	48.5	%	56.9	%
Value Add (19 properties with Ongoing Value Add)
Average Occupancy	90.1	%	91.7	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	5.4	%	5.4	%
Renewal Leases	7.3	%	1.7	%
Blended	6.3	%	2.9	%
Resident retention rate	46.5	%	56.2	%

(1)Same-store portfolio includes 116 properties, which represent 34,571 units.

(4)As of April 24, 2023, same-store portfolio occupancy was 94.3%, same-store portfolio excluding ongoing value add occupancy was 94.7%, and value add occupancy was 92.3%.

Value Add Program

Investment Activity

Dispositions

Capital Expenditures

For the three months ended March 31, 2023, recurring capital expenditures for the total portfolio were $4.1 million, or $117 per unit.

Capital Markets

New Swap Agreement

On March 16, 2023, we entered into an interest rate swap contract with a notional value of $200.0 million, a strike rate of 3.39% and a maturity date of March 17, 2030.

Dividend Distribution

2023 EPS and CFFO Guidance

2023 Full Year EPS and CFFO Guidance(1)(2)	Low		High
Earnings per share	$	0.23	$	0.27
Adjustments:
Depreciation and amortization	0.95		0.95
Gain on sale of real estate assets(3)	(0.01)		(0.01)
Loan (premium accretion) discount amortization, net	(0.05)		(0.05)
Core FFO per share	$	1.12	$	1.16

(2)Per share guidance is based on 230.0 million weighted average shares and units outstanding.

(3)Gain on sale of real estate assets includes one asset sale that occurred during the first quarter of 2023.

2023 Guidance Assumptions

Our key guidance assumptions for 2023 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Same-Store Portfolio	2023 Outlook(1)
Number of properties/units	116 properties / 34,571 units
Property revenue growth	5.7% to 7.0%
Controllable operating expense growth	3.3% to 5.4%
Real estate tax and insurance expense growth	8.1% to 9.1%
Total operating expense growth	5.2% to 6.9%
Property NOI growth	5.0% to 8.0%
Corporate Expenses
General and administrative & Property management expenses	$51.5 million to $53.5 million
Interest expense(2)	$104.5 million to $106.5 million
Transaction/Investment Volume(3)
Acquisition volume	None
Disposition volume	$35 million to $40 million
Capital Expenditures
Recurring	$19.0 million to $21.0 million
Value add & non-recurring	$78.0 million to $82.0 million
Development	$80.0 million to $90.0 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
	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares	$8,648	$33,631	$16,223	$(7,205)	$74,600
Earnings (loss) per share -- diluted	$0.04	$0.15	$0.07	$(0.03)	$0.34
Rental and other property revenue	$161,135	$162,493	$160,300	$154,643	$149,977
Property operating expenses	$59,255	$57,450	$59,967	$58,976	$55,883
NOI	$101,880	$105,043	$100,333	$95,667	$94,094
NOI margin	63.2%	64.6%	62.6%	61.9%	62.7%
Adjusted EBITDA	$87,594	$93,017	$89,264	$83,228	$81,375
CORE FFO per share	$0.27	$0.29	$0.28	$0.26	$0.25
Dividends per share	$0.14	$0.14	$0.14	$0.14	$0.12
CORE FFO payout ratio	51.9%	48.3%	50.0%	53.8%	48.0%
Portfolio Data:
Total gross assets	$7,045,306	$7,034,902	$7,097,280	$6,801,034	$6,731,377
Total number of operating properties	119	120	122	120	119
Total units	35,249	35,526	36,176	35,594	35,498
Period end occupancy	94.1%	93.6%	94.6%	95.7%	95.4%
Total portfolio average occupancy	93.1%	93.9%	94.2%	95.5%	95.2%
Total portfolio average effective monthly<br> rent, per unit	$1,535	$1,522	$1,484	$1,414	$1,374
Same-store portfolio period end occupancy (a)	94.1%	93.6%	94.6%	95.4%	95.6%
Same-store portfolio average occupancy (a)	93.1%	93.9%	94.2%	95.5%	95.3%
Same-store portfolio average effective monthly<br> rent, per unit (a)	$1,530	$1,520	$1,487	$1,420	$1,381
Capitalization:
Total debt (b)	$2,628,632	$2,631,645	$2,713,625	$2,552,936	$2,542,088
Common share price, period end	$16.03	$16.86	$16.73	$20.73	$26.44
Market equity capitalization	$3,694,970	$3,880,432	$3,850,365	$4,729,580	$6,031,873
Total market capitalization	$6,323,602	$6,512,077	$6,563,990	$7,282,516	$8,573,961
Total debt/total gross assets	37.3%	37.4%	38.2%	37.5%	37.8%
Net debt to Adjusted EBITDA (c)	7.3x	6.9x	7.2x	7.4x	7.6x
Interest coverage	4.0x	4.0x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,556,870	224,064,940	224,056,179	222,060,280	221,163,391
OP units outstanding	5,946,571	6,091,171	6,091,171	6,091,171	6,970,993
Common shares and OP units outstanding	230,503,441	230,156,111	230,147,350	228,151,451	228,134,384
Weighted average common shares and OP units	230,186,297	229,994,927	228,051,780	227,964,753	227,778,484

(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.

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

BALANCE SHEETS

Dollars in thousands, except per share data

	As of
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Assets:
Real estate held for investment, at cost	$	6,648,907	$	6,615,243	$	6,634,087	$	6,428,482	$	6,382,324
Less: accumulated depreciation	(475,001)		(425,034)		(379,171)		(329,903)		(283,666)
Real estate held for investment, net	6,173,906		6,190,209		6,254,916		6,098,579		6,098,658
Real estate held for sale	—		35,777		82,178		81,818		80,992
Real estate under development	124,983		105,518		86,763		61,777		48,959
Cash and cash equivalents	12,448		16,084		23,753		11,378		23,971
Restricted cash	22,385		27,933		35,829		31,017		26,789
Investment in unconsolidated real estate entities	92,882		80,220		70,608		54,178		43,541
Other assets	34,360		34,846		34,480		26,707		27,281
Derivative assets	32,783		41,109		43,967		21,162		12,944
Intangible assets, net	—		399		1,039		18		24,187
Total assets	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634	$	6,387,322
Liabilities and Equity:
Indebtedness, net	$	2,628,632	$	2,631,645	$	2,667,183	$	2,506,375	$	2,495,410
Indebtedness associated with real estate held<br> for sale, net	—		—		46,442		46,561		46,678
Accounts payable and accrued expenses	105,873		109,677		126,310		98,173		81,498
Accrued interest payable	7,979		7,713		11,019		6,891		6,955
Dividends payable	32,232		32,189		32,188		31,907		27,345
Derivative liabilities	2,283		—		—		—		128
Other liabilities	11,813		13,004		13,816		15,077		15,921
Total liabilities	2,788,812		2,794,228		2,896,958		2,704,984		2,673,935
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share	—		—		—		—		—
Common shares, $0.01 par value per share	2,246		2,241		2,241		2,221		2,212
Additional paid in capital	3,753,074		3,751,056		3,749,550		3,698,763		3,678,478
Accumulated other comprehensive income	25,101		35,102		37,569		18,430		9,958
Accumulated deficit	(214,775)		(191,735)		(194,014)		(178,902)		(140,643)
Total shareholders' equity	3,565,646		3,596,664		3,595,346		3,540,512		3,550,005
Noncontrolling Interests	139,289		141,203		141,229		141,138		163,382
Total equity	3,704,935		3,737,867		3,736,575		3,681,650		3,713,387
Total liabilities and equity	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634	$	6,387,322

STATEMENTS OF OPERATIONS, FFO & CORE FFO

TRAILING FIVE QUARTERS

Dollars in thousands, except per share data

	For the Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Revenue:
Rental and other property revenue	$	161,135	$	162,493	$	160,300	$	154,643	$	149,977
Other revenue	239		306		300		120		385
Total revenue	161,374		162,799		160,600		154,763		150,362
Expenses:
Property operating expenses	59,255		57,450		59,967		58,976		55,883
Property management expenses	6,371		6,593		5,744		6,139		5,556
General and administrative expenses (a)	8,154		5,739		5,625		6,968		7,928
Depreciation and amortization expense	53,536		52,161		49,722		72,793		78,174
Casualty losses (gains), net	151		(1,690)		(191)		(5,592)		(1,393)
Total expenses	127,467		120,253		120,867		139,284		146,148
Interest expense	(22,124)		(23,337)		(22,093)		(20,994)		(20,531)
Gain on sale of real estate assets, net	985		17,044		—		—		94,712
Other income, net	93		57		765		294		443
(Loss) gain from investments in unconsolidated<br> real estate entities	(776)		242		(1,477)		(871)		(63)
Merger and integration costs	—		(2,028)		(275)		(1,307)		(1,895)
Restructuring costs	(3,213)		—		—		—		—
Net income (loss)	$	8,872	$	34,524	$	16,653	$	(7,399)	$	76,880
(Income) loss allocated to noncontrolling<br> interests	(224)		(893)		(430)		194		(2,280)
Net income (loss) available to common shares	$	8,648	$	33,631	$	16,223	$	(7,205)	$	74,600
EPS - basic	$	0.04	$	0.15	$	0.07	$	(0.03)	$	0.34
Weighted-average shares outstanding - Basic	224,226,873		223,903,756		221,960,609		221,164,284		220,798,692
EPS - diluted	$	0.04	$	0.15	$	0.07	$	(0.03)	$	0.34
Weighted-average shares outstanding - Diluted	225,088,659		224,915,128		222,867,546		221,164,284		222,045,286
Funds From Operations (FFO):
Net income (loss)	$	8,872	$	34,524	$	16,653	$	(7,399)	$	76,880
Add-Back (Deduct):
Real estate depreciation and amortization	53,287		51,957		49,347		72,298		77,943
Our share of real estate depreciation and<br> amortization from investments in unconsolidated<br> real estate entities	418		416		1,388		515		—
Gain on sale of real estate assets, net, excluding<br> prepayment gains	(314)		(16,635)		—		—		(94,712)
FFO	$	62,263	$	70,262	$	67,388	$	65,414	$	60,111
FFO per share	$	0.27	$	0.31	$	0.30	$	0.29	$	0.26
CORE Funds From Operations (CFFO):
FFO	$	62,263	$	70,262	$	67,388	$	65,414	$	60,111
Add-Back (Deduct):
Other depreciation and amortization	249		204		375		495		231
Casualty losses (gains), net	151		(1,690)		(191)		(5,592)		(1,393)
Loan (premium accretion) discount<br> amortization, net	(2,755)		(2,760)		(2,750)		(2,741)		(2,754)
Prepayment (gains) losses on asset dispositions	(670)		(409)		—		—		—
Other expense (income), net	42		(860)		(765)		(294)		(380)
Merger and integration costs	—		2,028		275		1,307		1,895
Restructuring costs	3,213		—		—		—		—
CFFO	$	62,493	$	66,775	$	64,332	$	58,589	$	57,710
CFFO per share	$	0.27	$	0.29	$	0.28	$	0.26	$	0.25
Weighted-average shares and units outstanding	230,186,297		229,994,927		228,051,780		227,966,261		227,778,484

(a)Included in the three months ended March 31, 2023 and 2022 is $2.7 million and $2.4 million, respectively, 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 MONTHS ENDED MARCH 31, 2023 and 2022

Dollars in thousands, except per share data

	For the Three Months Ended March 31,
	2023		2022
Revenue:
Rental and other property revenue	$	161,135	$	149,977
Other revenue	239		385
Total revenue	161,374		150,362
Expenses:
Property operating expenses	59,255		55,883
Property management expenses	6,371		5,556
General and administrative expenses (a)	8,154		7,928
Depreciation and amortization expense	53,536		78,174
Casualty losses (gains), net	151		(1,393)
Total expenses	127,467		146,148
Interest expense	(22,124)		(20,531)
Gain on sale of real estate assets, net	985		94,712
Other income, net	93		443
Loss from investments in unconsolidated real estate entities	(776)		(63)
Merger and integration costs	—		(1,895)
Restructuring costs	(3,213)		—
Net income (loss)	8,872		76,880
(Income) loss allocated to noncontrolling interests	(224)		(2,280)
Net income (loss) available to common shares	$	8,648	$	74,600
EPS - basic	$	0.04	$	0.34
Weighted-average shares outstanding - Basic	224,226,873		220,798,692
EPS - diluted	$	0.04	$	0.34
Weighted-average shares outstanding - Diluted	225,088,659		222,045,286
Funds From Operations (FFO):
Net income (loss)	$	8,872	$	76,880
Add-Back (Deduct):
Real estate depreciation and amortization	53,287		77,943
Our share of real estate depreciation and amortization from investments<br> in unconsolidated real estate entities	418		—
Gain on sale of real estate assets, net, excluding prepayment gains	(314)		(94,712)
FFO	$	62,263	$	60,111
FFO per share	$	0.27	$	0.26
CORE Funds From Operations (CFFO):
FFO	$	62,263	$	60,111
Add-Back (Deduct):
Other depreciation and amortization	249		231
Casualty losses (gains), net	151		(1,393)
Loan (premium accretion) discount amortization, net	(2,755)		(2,754)
Prepayment (gains) losses on asset dispositions	(670)		—
Other expense (income), net	42		(380)
Merger and integration costs	—		1,895
Restructuring costs	3,213		—
CFFO	$	62,493	$	57,710
CFFO per share	$	0.27	$	0.25
Weighted-average shares and units outstanding	230,186,297		227,778,484

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

	Three Months Ended
ADJUSTED EBITDA:	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net income (loss)	$	8,872	$	34,524	$	16,653	$	(7,399)	$	76,880
Add-Back (Deduct):
Interest expense	22,124		23,337		22,093		20,994		20,531
Depreciation and amortization	53,536		52,161		49,722		72,793		78,174
Casualty losses (gains),<br> net	151		(1,690)		(191)		(5,592)		(1,393)
Gain on sale of real estate assets,<br> net	(985)		(17,044)		—		—		(94,712)
Merger and integration costs	—		2,028		275		1,307		1,895
Loss (gain) from investments in<br> unconsolidated real estate entities	776		(242)		1,477		1,125		—
Other income, net	(93)		(57)		(765)		—		—
Restructuring costs	3,213		—		—		—		—
Adjusted EBITDA	$	87,594	$	93,017	$	89,264	$	83,228	$	81,375
INTEREST COST:
Interest expense	$	22,124	$	23,337	$	22,093	$	20,994	$	20,531
INTEREST COVERAGE:	4.0x		4.0x		4.0x		4.0x		4.0x

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

TRAILING FIVE QUARTERS

Dollars in thousands, except per unit data

	For the Three-Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Revenue:
Rental and other property revenue	$	156,813	$	156,897	$	155,515	$	150,892	$	145,826
Property Operating Expenses:
Real estate taxes	19,609		19,557		18,977		20,013		19,390
Property insurance	3,191		3,359		3,582		3,050		2,842
Personnel expenses	12,013		12,215		12,227		12,585		12,344
Utilities	8,036		7,935		8,148		7,200		7,464
Repairs and maintenance	5,882		3,973		6,097		6,135		4,275
Contract services	5,480		5,131		5,440		5,254		4,867
Advertising expenses	1,370		1,214		1,502		1,266		1,222
Other expenses	1,929		2,094		1,920		1,823		1,656
Total property operating expenses	57,510		55,478		57,893		57,326		54,060
Same-store portfolio NOI	$	99,303	$	101,419	$	97,622	$	93,566	$	91,766	Same-store portfolio NOI margin	63.3	%	64.6	%	62.8	%	62.0	%	62.9	%
---	---	---	---	---	---	---	---	---	---	---
Average occupancy	93.1	%	93.9	%	94.2	%	95.5	%	95.3	%	Average effective monthly rent, per unit	$	1,530	$	1,520	$	1,487	$	1,420	$	1,381
---	---	---	---	---	---	---	---	---	---	---
	For the Three Months Ended
---	---	---	---	---	---	---	---	---	---	---
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Rental and other property revenue
Same-store portfolio	$	156,813	$	156,897	$	155,515	$	150,892	$	145,826
Non same-store portfolio	4,322		5,596		4,785		3,751		4,151
Total rental and other property revenue	161,135		162,493		160,300		154,643		149,977
Property operating expenses
Same-store portfolio	57,510		55,478		57,893		57,326		54,060
Non same-store portfolio	1,745		1,972		2,074		1,650		1,823
Total property operating expenses	59,255		57,450		59,967		58,976		55,883
NOI
Same-store portfolio	99,303		101,419		97,622		93,566		91,766
Non same-store portfolio	2,577		3,624		2,711		2,101		2,328
Total property NOI	$	101,880	$	105,043	$	100,333	$	95,667	$	94,094

(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.

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

SAME-STORE PORTFOLIO NET OPERATING INCOME (a)

THREE MONTHS ENDED MARCH 31, 2023 and 2022

Dollars in thousands, except per unit data

	For the Three Months Ended March 31,
	2023		2022		% change
Revenue:
Rental and other property revenue	$	156,813	$	145,826	7.5	%
Property Operating Expenses:
Real estate taxes	19,609		19,390		1.1	%
Property insurance	3,191		2,842		12.3	%
Personnel expenses	12,013		12,344		(2.7)	%
Utilities	8,036		7,464		7.7	%
Repairs and maintenance	5,882		4,275		37.6	%
Contract services	5,480		4,867		12.6	%
Advertising expenses	1,370		1,222		12.1	%
Other expenses	1,929		1,656		16.5	%
Total property operating expenses	57,510		54,060		6.4	%
Same-store portfolio NOI	$	99,303	$	91,766	8.2	%		Same-store portfolio NOI margin	63.3	%	62.9	%	0.4	%
---	---	---	---	---	---	---	---	---
Average occupancy	93.1		%	95.3		%	(2.2)	%
Average effective monthly rent, per unit	$	1,530		$	1,381		10.8	%

(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED MARCH 31, 2023

Dollars in thousands, except rent per unit

			Rental and Other Property Revenue						Property Operating Expenses						Net Operating Income						Average Occupancy						Average Effective Monthly Rent per Unit
Market	Number of Properties	Units	2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change
Atlanta, GA	13	5,180	$	23,671	$	22,244	6.4	%	$	8,404	$	7,591	10.7	%	$	15,270	$	14,651	4.2	%	91.9	%	94.6	%	(2.7)	%	$	1,637	$	1,458	12.3	%
Dallas, TX	14	4,007	21,223		19,733		7.6	%	8,823		8,400		5.0	%	12,400		11,333		9.4	%	93.1	%	95.9	%	(2.8)	%	1,783		1,608		10.9	%
Denver, CO	9	2,292	11,910		10,856		9.7	%	3,531		3,337		5.8	%	8,379		7,519		11.4	%	93.8	%	95.5	%	(1.7)	%	1,698		1,555		9.2	%
Columbus, OH	10	2,510	10,228		9,499		7.7	%	3,612		3,644		(0.9)	%	6,616		5,855		13.0	%	94.5	%	95.8	%	(1.3)	%	1,356		1,234		9.9	%
Raleigh - Durham, NC	6	1,690	7,755		6,741		15.0	%	2,520		2,443		3.2	%	5,234		4,298		21.8	%	93.7	%	95.2	%	(1.5)	%	1,530		1,321		15.8	%
Indianapolis, IN	7	1,979	7,908		7,363		7.4	%	2,927		2,759		6.1	%	4,981		4,604		8.2	%	92.5	%	95.5	%	(3.0)	%	1,334		1,201		11.1	%
Oklahoma City, OK	8	2,147	7,528		7,084		6.3	%	2,560		2,452		4.4	%	4,967		4,631		7.3	%	91.7	%	95.4	%	(3.7)	%	1,163		1,054		10.3	%
Nashville, TN	4	1,412	6,545		6,388		2.5	%	2,218		2,231		(0.6)	%	4,327		4,157		4.1	%	90.3	%	95.7	%	(5.4)	%	1,596		1,457		9.5	%
Houston, TX	7	1,932	8,448		7,954		6.2	%	4,128		3,788		9.0	%	4,320		4,166		3.7	%	94.6	%	94.4	%	0.2	%	1,427		1,338		6.7	%
Memphis, TN	4	1,383	6,044		5,548		8.9	%	1,982		1,897		4.5	%	4,061		3,651		11.2	%	93.7	%	94.2	%	(0.5)	%	1,501		1,373		9.3	%
Tampa-St. Petersburg, FL	4	1,104	5,988		5,080		17.9	%	2,295		1,973		16.3	%	3,693		3,107		18.9	%	94.9	%	94.4	%	0.5	%	1,780		1,531		16.3	%
Birmingham, AL	2	1,074	4,533		4,603		(1.5)	%	1,746		1,637		6.7	%	2,787		2,965		(6.0)	%	89.4	%	93.8	%	(4.4)	%	1,475		1,397		5.6	%
Huntsville, AL	3	873	4,016		3,886		3.3	%	1,341		1,221		9.8	%	2,675		2,665		0.4	%	94.5	%	95.6	%	(1.1)	%	1,545		1,441		7.2	%
Lexington, KY	3	886	3,610		3,353		7.7	%	1,067		1,183		(9.8)	%	2,542		2,170		17.1	%	94.9	%	95.3	%	(0.4)	%	1,272		1,166		9.1	%
Louisville, KY	4	1,150	4,438		4,280		3.7	%	1,897		1,804		5.2	%	2,541		2,476		2.6	%	92.8	%	95.1	%	(2.3)	%	1,285		1,156		11.2	%
Charlotte, NC	2	480	2,635		2,271		16.0	%	805		727		10.7	%	1,830		1,544		18.5	%	95.4	%	96.0	%	(0.6)	%	1,758		1,524		15.4	%
Myrtle Beach, SC - Wilmington, NC	3	628	2,611		2,287		14.2	%	784		711		10.3	%	1,827		1,577		15.9	%	94.7	%	96.7	%	(2.0)	%	1,396		1,177		18.6	%
Cincinnati, OH	2	542	2,556		2,450		4.3	%	967		848		14.0	%	1,589		1,603		(0.9)	%	92.1	%	96.8	%	(4.7)	%	1,553		1,413		9.9	%
Charleston, SC	2	518	2,534		2,277		11.3	%	1,000		935		7.0	%	1,534		1,342		14.3	%	93.6	%	96.5	%	(2.9)	%	1,603		1,409		13.8	%
Greenville, SC	1	702	2,440		2,346		4.0	%	944		855		10.4	%	1,497		1,491		0.4	%	92.2	%	95.3	%	(3.1)	%	1,231		1,131		8.8	%
Chicago, IL	1	374	1,997		1,877		6.4	%	771		770		0.1	%	1,226		1,107		10.7	%	95.9	%	95.3	%	0.6	%	1,772		1,645		7.7	%
Orlando, FL	1	297	1,537		1,372		12.0	%	668		562		18.9	%	869		810		7.3	%	94.5	%	96.8	%	(2.3)	%	1,787		1,534		16.5	%
Asheville, NC	1	252	1,142		976		17.0	%	304		272		11.8	%	838		705		18.9	%	97.0	%	97.8	%	(0.8)	%	1,488		1,272		17.0	%
San Antonio, TX	1	306	1,454		1,444		0.7	%	673		616		9.3	%	780		828		(5.8)	%	95.7	%	96.9	%	(1.2)	%	1,483		1,455		1.9	%
Fort Wayne, IN	1	222	994		920		8.0	%	295		307		(3.9)	%	700		613		14.2	%	93.2	%	94.6	%	(1.4)	%	1,431		1,314		8.9	%
Austin, TX	1	256	1,310		1,258		4.1	%	611		524		16.6	%	699		733		(4.6)	%	89.0	%	96.8	%	(7.8)	%	1,788		1,567		14.1	%
Norfolk, VA	1	183	985		941		4.7	%	340		272		25.0	%	645		670		(3.7)	%	93.8	%	95.5	%	(1.7)	%	1,882		1,731		8.7	%
Chattanooga, TN	1	192	773		795		(2.8)	%	297		301		(1.3)	%	476		495		(3.8)	%	92.5	%	97.3	%	(4.8)	%	1,374		1,327		3.5	%
Total / Weighted<br> Average	116	34,571	$	156,813	$	145,826	7.5	%	$	57,510	$	54,060	6.4	%	$	99,303	$	91,766	8.2	%	93.1	%	95.3	%	(2.2)	%	$	1,530	$	1,381	10.8	%

TOTAL PORTFOLIO NET OPERATING INCOME EXPOSURE BY MARKET

Dollars in thousands, except rent per unit

								For the Three Months Ended<br> March 31, 2023
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	$	1,070,050	92.8	%	$	1,637	$	15,267	15.0	%
Dallas, TX		14	4,007	854,870		94.2	%	1,783		12,400		12.2	%
Denver, CO (a)	-1	9	2,292	606,372		94.0	%	1,698		8,379		8.2	%
Columbus, OH		10	2,510	368,862		95.4	%	1,356		6,616		6.5	%
Raleigh - Durham, NC		6	1,690	255,624		94.8	%	1,530		5,234		5.2	%
Indianapolis, IN		7	1,979	290,841		94.6	%	1,334		4,981		4.9	%
Oklahoma City, OK		8	2,147	321,400		92.5	%	1,163		4,967		4.9	%
Tampa-St. Petersburg, FL		5	1,452	294,794		95.9	%	1,801		4,834		4.8	%
Nashville, TN		5	1,508	367,696		92.8	%	1,591		4,596		4.5	%
Houston, TX		7	1,932	323,339		95.4	%	1,427		4,320		4.3	%
Memphis, TN		4	1,383	160,176		94.2	%	1,501		4,061		4.0	%
Birmingham, AL		2	1,074	232,510		89.3	%	1,475		2,787		2.7	%
Charlotte, NC		3	714	189,350		95.4	%	1,756		2,675		2.6	%
Huntsville, AL		3	873	189,568		95.5	%	1,545		2,675		2.6	%
Lexington, KY		3	886	160,002		96.4	%	1,272		2,542		2.5	%
Louisville, KY		4	1,150	149,011		93.0	%	1,285		2,541		2.5	%
Myrtle Beach, SC - Wilmington, NC		3	628	68,527		95.4	%	1,396		1,827		1.8	%
Cincinnati, OH		2	542	122,355		93.9	%	1,553		1,589		1.6	%
Charleston, SC		2	518	81,314		95.9	%	1,603		1,534		1.5	%
Greenville, SC		1	702	123,319		95.0	%	1,231		1,497		1.5	%
Chicago, IL		1	374	90,195		95.7	%	1,772		1,226		1.2	%
Orlando, FL		1	297	50,174		93.2	%	1,787		869		0.9	%
Asheville, NC		1	252	29,233		97.6	%	1,488		838		0.8	%
San Antonio, TX		1	306	57,108		97.4	%	1,483		780		0.8	%
Fort Wayne, IN		1	222	44,221		91.0	%	1,431		700		0.7	%
Austin, TX		1	256	56,860		91.3	%	1,788		699		0.7	%
Norfolk, VA		1	183	54,131		98.4	%	1,882		645		0.6	%
Chattanooga, TN		1	192	37,005		92.7	%	1,374		476		0.5	%
Total / Weighted Average		119	35,249	$	6,648,907	94.1	%	$	1,535	$	101,555	100.0	%

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

VALUE ADD SUMMARY BY MARKET

PROJECT LIFE TO DATE AS OF MARCH 31, 2023

									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
Memphis, TN	1	362	239	242	$	374	34.8	%		$	807	$	15,490	30.6	%	29.0	%
Raleigh-Durham, NC	1	318	182	183	183		14.7	%	15,058	1,046		16,104		14.6	%	13.6	%
Indianapolis, IN	1	236	126	123	246		22.3	%	14,534	805		15,339		20.3	%	19.2	%
Tampa-St. Petersburg, FL	3	888	414	426	332		24.8	%	12,449	847		13,296		32.0	%	30.0	%
Columbus, OH	2	546	212	202	245		19.9	%	13,610	918		14,527		21.6	%	20.2	%
Oklahoma City, OK	2	541	210	208	117		14.5	%	15,660	670		16,330		9.0	%	8.6	%
Atlanta, GA	5	2,180	775	822	264		21.9	%	13,048	1,235		14,284		24.2	%	22.1	%
Austin, TX	1	256	78	72	217		14.4	%	15,028	1,104		16,132		17.3	%	16.1	%
Dallas, TX	3	845	198	205	276		18.1	%	16,959	1,544		18,503		19.6	%	17.9	%
Nashville, TN	1	724	159	124	165		11.5	%	14,036	1,664		15,700		14.1	%	12.6	%
Total / Weighted Average	20	6,896	2,593	2,607	$	260	21.3	%	13,993	$	1,148	$	15,140	23.5	%	22.0	%
Future (e)
Atlanta, GA	1	180	—	—	—		—		—	—		—		—		—
Columbus, OH	1	240	—	—	—		—		—	—		—		—		—
Dallas, TX	1	354	—	—	—		—		—	—		—		—		—
Oklahoma City, OK	2	546	—	—	—		—		—	—		—		—		—
Total / Weighted Average	5	1,320	—	—	—		—		—	—		—		—		—
Completed (f)
Raleigh-Durham, NC	1	328	325	323	$	184	18.0	%		$	2,108	$	16,756	15.1	%	13.2	%
Louisville, KY	2	728	710	763	213		24.0	%	15,345	2,173		17,518		16.7	%	14.6	%
Wilmington, NC	1	288	275	278	74		7.5	%	7,686	56		7,742		11.6	%	11.5	%
Atlanta, GA	1	494	454	451	175		17.5	%	9,102	1,773		10,875		23.0	%	19.3	%
Memphis, TN	2	691	618	612	190		18.8	%	11,450	974		12,424		19.9	%	18.4	%
Tampa-St. Petersburg, FL	1	348	306	305	208		18.3	%	13,988	2,155		16,143		17.9	%	15.5	%
Columbus, OH	3	763	670	669	203		22.4	%	10,114	666		10,779		24.1	%	22.6	%
Total / Weighted Average	11	3,640	3,358	3,401	$	187	19.6	%		$	1,400	$	13,277	19.0	%	16.9	%
Grand Total/Weighted Average	36	11,856	5,951	6,008	$	238	20.3	%		$	1,235	$	14,059	20.9	%	19.1	%

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

INVESTMENT AND DEVELOPMENT ACTIVITY

Dollars in thousands

| 2023 DISPOSITIONS | | --- || Property | Location | Units | Disposition Date | Sale Price | | Price per Unit | | Average Rent Per Unit at Disposition | | Gain on Sale of Real Estate, Net | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Eagle Lake Landing | Indianapolis, IN | 277 | February 28, 2023 | $ | 37,300 | $ | 135 | $ | 1,184 | $ | 985 || REAL ESTATE UNDER DEVELOPMENT | | --- || | | | | Projected | | | Development Costs | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Property | Location | Planned Units | Start Date | Initial Occupancy Date | Completion Date | Stabilization Date | Total Estimated | | Total through 3/31/23 | | Remaining | | | Destination at Arista | Denver, CO | 325 | 3Q 2021 | 2Q 2023 | 4Q 2023 | 1Q 2025 | $ | 102,100 | $ | 93,348 | $ | 8,752 | | Flatirons Apartments | Denver, CO | 296 | 4Q 2022 | 3Q 2024 | 3Q 2024 | 3Q 2026 | 119,800 | | 31,636 | | 88,164 | | | Total | | 621 | | | | | $ | 221,900 | $ | 124,983 | $ | 96,917 || 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 | $ | 85,883 | $ | 64,000 | 84.8 | % | $ | 1,048 | $ | 17,583 | | Views of Music City II /<br><br>The Crockett (a) | Nashville, TN | 408 | Q3 2023 | 66,079 | | 43,275 | | 50.0 | % | — | | 11,483 | | | Virtuoso (b) | Huntsville, AL | 178 | — | 57,491 | | 39,281 | | 90.0 | % | — | | 13,647 | | | Lakeline Station | Austin, TX | 378 | Q3 2024 | 109,524 | | 76,500 | | 90.0 | % | — | | 30,571 | | | The Mustang | Dallas, TX | 275 | Q4 2024 | 109,583 | | 79,447 | | 85.0 | % | 6,382 | | 19,598 | | | Total | | 1,641 | | $ | 428,560 | $ | 302,503 | | | $ | 7,430 | $ | 92,882 |

(a)Views of Music City phase II consists of 209 units with an estimated delivery date of Q3 2023. The Crockett is an operating property consisting of 199 units delivered in Q1 2023. We have one year from the delivery date to exercise our purchase option on The Crockett.

(b)The Virtuoso investment made on March 31, 2022 is an operating property.

DEBT SUMMARY AS OF MARCH 31, 2023

Dollars in thousands

	Amount		Weighted Average Rate (d)		Type	Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)	$	185,478	5.8	%	Floating	2.8
Unsecured term loans (b)	600,000		5.7	%	Floating	4.3
Secured credit facilities (c)	617,115		4.3	%	Floating/Fixed	5.7
Mortgages	1,183,435		3.9	%	Fixed	4.9
Total Principal	2,586,028		4.5	%		4.8
Loan premiums (discounts), net	56,256
Unamortized deferred financing costs	(13,652)
Total Consolidated Debt	2,628,632
Market Equity Capitalization, at period end	3,694,970
Total Capitalization	$	6,323,602

(a)Unsecured revolver total capacity is $500,000, of which $185,478 was drawn as of March 31, 2023. The maturity date of borrowings under the unsecured revolver is January 31, 2026.

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

(c)Consists of a (i) $540,867 secured credit facility, three tranches of which, in an aggregate principal amount of $500,399, 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 March 31, 2023, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization, discount accretion, and interest capitalization was 4.1%.

(e)As of March 31, 2023, 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	2.18	%	—		—
Swap	$	150,000	5/17/2022	5/17/2027	0.99	%	—		—
Swap	$	200,000	3/17/2023	3/17/2030	3.39	%	—		—
Forward starting collar	$	100,000	1/17/2024	1/17/2028	—		1.50	%	2.50	%
Forward starting collar	$	100,000	11/17/2024	1/17/2028	—		1.50	%	2.50	%

DEBT COVENANT AND UNENCUMBERED ASSET STATS AS OF MARCH 31, 2023

Dollars in thousands

Debt Covenant Summary (a)

	Requirement	Actual	Compliance
Consolidated leverage ratio	≤ 60%	33.6%	Yes
Consolidated fixed charge coverage ratio	≥ 1.5x	2.7x	Yes
Unsecured leverage ratio	≤ 60%	25.0%	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		Q1 2023 NOI		% of Total
Unencumbered assets	18,164	51.5	%	$	3,433,382	48.7	%	$	51,663	50.9	%
Encumbered assets	17,085	48.5	%	3,611,924		51.3	%	49,892		49.1	%
	35,249	100.0	%	$	7,045,306	100.0	%	$	101,555	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”)

measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Interest Coverage

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

Net Debt

	As of
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Total debt	$	2,628,632	$	2,631,645	$	2,713,625	$	2,552,936	$	2,542,088
Less: cash and cash equivalents	(12,448)		(16,084)		(23,753)		(11,378)		(23,971)
Less: loan discounts and premiums, net	(56,256)		(59,937)		(63,340)		(66,091)		(68,832)
Total net debt	$	2,559,928	$	2,555,624	$	2,626,532	$	2,475,467	$	2,449,285

Net Operating Income

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

	For the Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net income (loss)	$	8,872	$	34,524	$	16,653	$	(7,399)	$	76,880
Other revenue	(239)		(306)		(300)		(120)		(385)
Property management expenses	6,371		6,593		5,744		6,139		5,556
General and administrative<br> expenses	8,154		5,739		5,625		6,968		7,928
Depreciation and amortization<br> expense	53,536		52,161		49,722		72,793		78,174
Casualty losses (gains), net	151		(1,690)		(191)		(5,592)		(1,393)
Interest expense	22,124		23,337		22,093		20,994		20,531
Gain on sale of real estate assets,<br> net	(985)		(17,044)		—		—		(94,712)
Other income, net	(93)		(57)		(765)		(294)		(443)
Loss (gain) from investments in<br> unconsolidated real estate entities	776		(242)		1,477		871		63
Merger and integration costs	—		2,028		275		1,307		1,895
Restructuring costs	3,213		—		—		—		—
NOI	$	101,880	$	105,043	$	100,333	$	95,667	$	94,094
Less: Non same-store portfolio NOI	2,577		3,624		2,711		2,101		2,328
Same-store portfolio NOI	$	99,303	$	101,419	$	97,622	$	93,566	$	91,766

Same-Store Properties and Same-Store Portfolio

Total Gross Assets

	As of
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Total assets	$	6,493,747	$	6,532,095	$	6,633,533	$	6,386,634	$	6,387,322
Plus: accumulated depreciation (a)	475,001		426,097		386,606		337,338		291,199
Plus: accumulated amortization	76,558		76,710		77,141		77,062		52,856
Total gross assets	$	7,045,306	$	7,034,902	$	7,097,280	$	6,801,034	$	6,731,377

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