8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________________

FORM 8-K

_____________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 26, 2023

_____________________________________________

Independence Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________

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

1835 Market Street, Suite 2601

Philadelphia, Pennsylvania, 19103

(Address of Principal Executive Office) (Zip Code)

(267) 270-4800

(Registrant’s telephone number, including area code)

N/A

Former name or former address, if changed since last report

_____________________________________________

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

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

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

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

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

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

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

Emerging growth company o

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

Item 2.02    Results of Operations and Financial Condition.

On October 30, 2023, we issued a press release announcing our financial results for the three and nine months ended September 30, 2023. Additionally, we are furnishing certain supplemental information with this Current Report. Copies of such press release and such supplemental information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report and are incorporated by reference into this Item 2.02. The information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 2.06     Material Impairments.

On October 26, 2023, our Board of Directors approved a plan, which we refer to as our “Portfolio Optimization and Deleveraging Strategy,” to exit or reduce our presence in certain markets. Our Portfolio Optimization and Deleveraging Strategy targets sales of 10 properties (collectively, the “Targeted Sales Properties”), including one property in Chicago, Illinois that was held for sale as of September 30, 2023. The Targeted Sales Properties contain an aggregate of 2,742 units and are located in or around Denver, Colorado, Houston, Texas, Chicago, Illinois, Fort Wayne, Indiana, Chattanooga, Tennessee, Norfolk, Virginia and Asheville, North Carolina.

In accordance with U.S. generally accepted accounting principles (“GAAP”), we have recorded an impairment charge for the third quarter 2023 of $11.3 million related to our property in Chicago, Illinois that was held for sale as of September 30, 2023. In addition, as of the date of this Current Report, we have determined that we will be required, under GAAP, to record an impairment charge in the fourth quarter 2023 for three other Targeted Sales Properties and currently estimate the amount of the impairment charge to be between $23 and $25 million, in aggregate.

Due to the early stage of our sales activities with respect to the other six Targeted Sales Properties, as of the date of this Current Report, given currently available information, and pending the outcome of the sales processes, we expect to incur impairment charges for certain of these properties in the fourth quarter 2023 ranging between $32 and $38 million, in aggregate.

Our estimates of impairment charges are preliminary and subject to change. The actual amount of impairment charges may be higher or lower than our estimates and will depend on the terms of actual sales, if any. There can be no assurance that any of the targeted sales will be consummated within the contemplated prices ranges, within the contemplated time frames, or at all.

Item 7.01    Regulation FD Disclosure.

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

Forward-Looking Statements

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

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected

changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, failure to realize cost savings, efficiencies and other benefits that we expect to result from our Portfolio Optimization and Deleveraging Strategy, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

Forward-looking statements are based upon the beliefs and expectations of our management at the date of this Current Report 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.

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 30, 2023	By:	/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

Independence Realty Trust Announces Third Quarter 2023 Financial Results

Initiates Portfolio Optimization and Deleveraging Strategy

Updates Full Year 2023 Guidance

PHILADELPHIA – (BUSINESS WIRE) – October 30, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its third quarter 2023 financial results, initiated its portfolio optimization strategy and updated its full year 2023 guidance.

Third Quarter Highlights

•Net income available to common shares of $3.9million for the quarter ended September 30, 2023 compared to $16.2 million for the quarter ended September 30, 2022.

•Earnings per diluted share of $0.02 for the quarter ended September 30, 2023 compared to $0.07 for the quarter ended September 30, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 4.8% for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022.

•Core Funds from Operations (“CFFO”) of $69.0million for the quarter ended September 30, 2023 compared to $64.3 million for the quarter ended September 30, 2022. CFFO per share was $0.30 for the third quarter of 2023, as compared to $0.28 for the third quarter of 2022.

•Adjusted EBITDA of $94.4 million for the quarter ended September 30, 2023 compared to $89.3 million for the quarter ended September 30, 2022, an increase of 5.7%.

•Value add program completed renovations at 709 units during the quarter ended September 30, 2023, achieving a weighted average return on investment during the quarter of 14.2%.

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 third quarter of 2023, we delivered growth of 4.8% in same store NOI and 7.1% in Core FFO per share and we remain focused on delivering sustainable operational efficiencies. We are updating our full year 2023 guidance to reflect the impact of the slowing macroeconomic environment on leasing activity.” said Scott Schaeffer, Chairman and CEO of IRT. “We are also commencing a portfolio optimization and deleveraging strategy that will accelerate non-core asset sales while deleveraging our balance sheet in the near-term. We expect these initiatives will increase our financial flexibility and will reduce leverage by almost a full turn upon completion of all asset sales. We are confident that these initiatives will strengthen our balance sheet and improve our presence in the multifamily sector in 2024.”

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Same-Store Portfolio(1) Operating Results

	Third Quarter 2023  Compared to  Third Quarter 2022	Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022
Rental and other property revenue	5.4% increase	6.3% increase
Property operating expenses	6.3% increase	6.2% increase
Net operating income (“NOI”)	4.8% increase	6.4% increase
Portfolio average occupancy	40 bps increase to 94.6%	120 bps decrease to 93.9%
Portfolio average rental rate	4.4% increase to $1,549	7.7% increase to $1,536
NOI Margin	40 bps decrease to 62.4%	No change — 62.6%

(1)Same-store portfolio includes 115 properties, which represent 34,197 units.

Operating Metrics

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

	3Q 2023		4Q 2023(3)
Same-Store Portfolio(1)
Average Occupancy	94.6	%	94.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	0.8	%	(2.3)	%
Renewal Leases	4.8	%	5.0	%
Blended	3.0	%	2.3	%
Resident retention rate	52.3	%	48.4	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	95.0	%	94.7	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	0.3	%	(2.5)	%
Renewal Leases	4.6	%	4.8	%
Blended	2.7	%	2.1	%
Resident retention rate	52.6	%	47.7	%
Value Add (22 properties with Ongoing Value Add)
Average Occupancy	92.8	%	92.8	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.8	%	(1.6)	%
Renewal Leases	5.9	%	6.3	%
Blended	4.5	%	3.0	%
Resident retention rate	51.2	%	51.3	%

(1)Same-store portfolio includes 115 properties, which represent 34,197 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 2023 average occupancy and resident retention rates are through October 28, 2023. 4Q 2023 new lease and renewal rates are for leases commencing during 4Q 2023 that were signed as of October 28, 2023.

(4)As of October 28, 2023, same-store portfolio occupancy was 94.6%, same-store portfolio excluding ongoing value add occupancy was 95.0%, and value add occupancy was 93.1%.

Portfolio Optimization and Deleveraging Strategy

We continuously evaluate opportunities for the potential disposition of properties in our portfolio by considering a variety of criteria including, but not limited to, local market conditions and lease rates, our scale within the

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markets, our view of market demographics and growth prospects and potential uses of sales proceeds. Subsequent to September 30, 2023, our Board of Directors approved a plan, which we refer to as our Portfolio Optimization and Deleveraging Strategy, to exit or reduce our presence in certain markets while also deleveraging our balance sheet. Our Portfolio Optimization and Deleveraging Strategy targets sales of approximately 10 properties that are located in seven markets, including the one property in Chicago, Illinois that was held for sale as of September 30, 2023. Nine of the 10 properties were acquired in December 2021 as part of the STAR merger. We currently expect these asset sales to generate gross sales proceeds of approximately $521 to $533 million with proceeds used to immediately delever our balance sheet.

We estimate that these asset sales, if consummated within the foregoing price range, will enable us to reduce our outstanding debt by approximately $516 to $528 million (comprised of $284 million of property level debt associated with the ten properties and $232 to $244 million of additional debt), will reduce our net debt to adjusted EBITDA ratio by 0.8x to 0.9x, and will be dilutive to Core FFO per share by $0.02-$0.03. In addition, consummation of the targeted sales would reduce our market exposures by five single asset markets and reduce the average age of the properties in our portfolio by approximately one year.

We expect to recognize an aggregate net loss after completion of all sales in the range of approximately $39 to $51 million comprised of an $11.3 million impairment charge recorded during the three months ended September 30, 2023 related to our property in Chicago, Illinois that is currently held for sale; an estimated $55 to $63 million impairment charge we expect to recognize during the fourth quarter of 2023 with respect to certain of the properties targeted for sale; and estimated gains of approximately $24 to $28 million we expect to realize in the periods of sale of certain of the properties targeted for sale.

We are in various stages of marketing, negotiations, and buyer due diligence with respect to the properties targeted for sale. There can be no assurance that any of the sales will be consummated at expected pricing levels, within expected time frames, or at all. The estimates of sale prices discussed above are based on our assessment of current conditions in the markets where the properties are located, comparable sales data, characteristics and operating performance of the properties among other factors and are subject to numerous assumptions.

Value Add Program

We completed renovations on 709 units during the quarter ended September 30, 2023, achieving a return on investment of 14.2% (and approximately 15.3% on the interior portion of such renovation costs), with an average cost per unit renovated of $17,750, and an average monthly rent increase per renovated unit of $210. For the nine months end September 30, 2023, we have completed renovations on 1,969 units, achieving a return on investment of 16.0% (and approximately 17.3% on the interior portion of such renovation costs), with an average cost per unit renovated of $16,947, and an average monthly rent increase per renovated unit of $224. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of September 30, 2023.

Investment Activity

Capital Expenditures

For the three months ended September 30, 2023, recurring capital expenditures for the total portfolio were $5.3 million, or $153 per unit. For the nine months ended September 30, 2023, recurring capital expenditures for the total portfolio were $15.8 million, or $454 per unit.

Capital Markets

Dividend Distribution

On September 12, 2023, our Board of Directors declared a quarterly dividend of $0.16 per share of common stock. The third quarter dividend was paid on October 20, 2023 to stockholders of record at the close of business on September 29, 2023.

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2023 EPS, FFO and CFFO Guidance

We reduced our EPS, FFO, and CFFO per share guidance ranges and our same store NOI guidance range. Earnings (loss) per diluted share is now projected to be in the range of ($0.07) to ($0.02). A reconciliation of IRT's projected net (loss) 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
2023 Full Year EPS and CFFO Guidance(1)(2)	Low		High		Low		High
Earnings (loss) per share	$	0.25	$	0.27	$	(0.07)	$	(0.02)	$	(0.305)
Adjustments:
Depreciation and amortization	0.95		0.95		0.94		0.94		(0.01)
(Gain on sale) loss on impairment of   real estate assets(3)	(0.01)		(0.01)		0.32		0.28		0.31
FFO per share	1.19		1.21		1.19		1.20		(0.005)
Loan (premium accretion) discount   amortization, net	(0.05)		(0.05)		(0.05)		(0.05)		—
Core FFO per share	$	1.14	$	1.16	$	1.14	$	1.15	$	(0.005)

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2023 EPS, FFO, and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” . Our guidance is based on the key guidance assumptions detailed below.

(2)Per share guidance is based on 230.4 million weighted average shares and units outstanding.

(3)Gain on sale (loss on impairment) of real estate assets includes gains (impairments) on one asset sale that occurred during the first quarter of 2023, one property identified as held for sale as of September 30, 2023, and nine other assets targeted for sale as part of our Portfolio Optimization and Deleveraging Strategy.

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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	Previous 2023 Outlook	Current 2023 Outlook(1)	Change at Midpoint
Number of properties/units	115 properties / 34,179 units	106 properties / 31,829 units
Property revenue growth	6.1% to 6.6%	5.5% to 5.7%	(0.75)%
Controllable operating expense growth	4.7% to 5.4%	6.0% to 7.0%	1.40%
Real estate tax and insurance expense growth	7.5% to 8.1%	4.2% to 4.8%	(3.30)%
Total operating expense growth	5.7% to 6.4%	5.5% to 5.9%	(0.35)%
Property NOI growth	6.0% to 7.0%	5.3% to 5.7%	(1.00)%
Corporate Expenses
General and administrative & Property     management expenses	$50.5 million to $51.5 million	$50.0 million to $51.0 million	$(0.5) million
Interest expense(2)	$102.5 million to $103.5 million	$101.0 million to $102.0 million	$(1.5) million
Transaction/Investment Volume(3)
Acquisition volume	None	None	—
Disposition volume	$122 million to $127 million	$122 million to $127 million	—
Capital Expenditures
Recurring	$20.0 million to $22.0 million	$20.0 million to $21.0 million	$(0.5) million
Value add & non-recurring	$78.0 million to $82.0 million	$83.0 million to $85.0 million	$4.0 million
Development	$80.0 million to $90.0 million	$75.0 million to $80.0 million	$(7.5) million

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

(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting, we recorded 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)Includes one asset sale that occurred in the first quarter 2023 and one property identified as held for sale as of September 30, 2023. We expect sales of the other nine properties included in the Portfolio Optimization and Deleveraging Strategy to close in 2024. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions except as required by law. See “Forward-Looking Statements”.

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Selected Financial Information

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

Non-GAAP Financial Measures and Definitions

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

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Tuesday, October 31, 2023 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.888.440.3307, access code 1963990. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website until the next earnings release. A playback of the conference call can also be accessed telephonically until Tuesday, November 7, 2023 by dialing 1.800.770.2030, access code 1963990.

Supplemental Information

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

About Independence Realty Trust, Inc.

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

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Forward-Looking Statements

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

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

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

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Schedule I

Independence Realty Trust, Inc.

Selected Financial Information

Dollars in thousands, except per share data (unaudited)

	For the Three Months Ended
	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Selected Financial Information:
Operating Statistics:
Net income available to common shares	$3,930	$10,709	$8,648	$33,631	$16,223
Earnings per share -- diluted	$0.02	$0.05	$0.04	$0.15	$0.07
Rental and other property revenue	$168,375	$163,601	$161,135	$162,493	$160,300
Property operating expenses	$63,300	$62,071	$59,255	$57,450	$59,967
NOI	$105,075	$101,530	$101,880	$105,043	$100,333
NOI margin	62.4%	62.1%	63.2%	64.6%	62.6%
Adjusted EBITDA	$94,415	$89,156	$87,594	$93,017	$89,264
FFO per share	$0.31	$0.28	$0.27	$0.31	$0.30
CORE FFO per share	$0.30	$0.28	$0.27	$0.29	$0.28
Dividends per share	$0.16	$0.16	$0.14	$0.14	$0.14
CORE FFO payout ratio	53.3%	57.1%	51.9%	48.3%	50.0%
Portfolio Data:
Total gross assets	$7,225,447	$7,117,404	$7,045,306	$7,034,902	$7,097,280
Total number of operating properties (a)	120	119	119	120	122
Total units (a)	35,427	35,249	35,249	35,526	36,176
Portfolio period end occupancy (a)	94.4%	94.6%	94.1%	93.6%	94.6%
Portfolio average occupancy (a)	94.6%	94.1%	93.1%	93.9%	94.2%
Portfolio average effective monthly rent, per unit (a)	$1,556	$1,538	$1,535	$1,522	$1,484
Same-store portfolio period end occupancy (b)	94.5%	94.6%	94.1%	93.6%	94.6%
Same-store portfolio average occupancy (b)	94.6%	94.2%	93.1%	93.9%	94.2%
Same-store portfolio average effective   monthly rent, per unit (b)	$1,549	$1,531	$1,528	$1,517	$1,484
Capitalization:
Total debt (c)	$2,715,710	$2,650,805	$2,628,632	$2,631,645	$2,713,625
Common share price, period end	$14.07	$18.22	$16.03	$16.86	$16.73
Market equity capitalization	$3,245,135	$4,202,342	$3,694,970	$3,880,432	$3,850,365
Total market capitalization	$5,960,845	$6,853,147	$6,323,602	$6,512,077	$6,563,990
Total debt/total gross assets	37.6%	37.2%	37.3%	37.4%	38.2%
Net debt to Adjusted EBITDA (d)	7.0x	7.2x	7.3x	6.9x	7.2x
Interest coverage	4.3x	4.0x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,695,566	224,697,889	224,556,870	224,064,940	224,056,179
OP units outstanding	5,946,571	5,946,571	5,946,571	6,091,171	6,091,171
Common shares and OP units outstanding	230,642,137	230,644,460	230,503,441	230,156,111	230,147,350
Weighted average common shares and OP units	230,444,945	230,369,086	230,186,297	229,994,927	228,051,780

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

(b)Same-store portfolio consists of 115 properties, which represent 34,197 units.

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

(d)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended September 30, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 7.0x, 7.2x, 7.3x, 6.9x, and 7.4x, respectively.

8

Schedule II

Independence Realty Trust, Inc.

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

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

(unaudited)

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2023		2022		2023		2022
Funds From Operations (FFO):
Net income	$	3,986	$	16,653	$	23,847	$	86,135
Add-Back (Deduct):
Real estate depreciation and amortization	55,217		49,347		162,205		199,588
Our share of real estate depreciation and amortization from   investments in unconsolidated real estate entities	486		1,388		1,479		1,904
Loss on impairment (gain on sale) of real estate assets,   net, excluding prepayment gains	11,268		—		10,954		(94,712)
FFO	$	70,957	$	67,388	$	198,485	$	192,915
FFO per share	$	0.31	$	0.30	$	0.86	$	0.85
CORE Funds From Operations (CFFO):
FFO	$	70,957	$	67,388	$	198,485	$	192,915
Add-Back (Deduct):
Other depreciation and amortization	329		375		860		1,100
Casualty losses (gains), net	35		(191)		866		(7,176)
Loan (premium accretion) discount amortization, net	(2,747)		(2,750)		(8,239)		(8,245)
Prepayment (gains) penalties on asset dispositions	—		—		(670)		—
Other expense (income), net	429		(765)		663		(1,438)
Merger and integration costs	—		275		—		3,477
Restructuring costs	—		—		3,213		—
CFFO	$	69,003	$	64,332	$	195,178	$	180,633
CFFO per share	$	0.30	$	0.28	$	0.85	$	0.79
Weighted-average shares and units outstanding	230,444,945		228,051,780		230,334,398		227,933,320

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Schedule III

Independence Realty Trust Inc.

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

Dollars in thousands

(unaudited)

	For the Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Net income	$	3,986	$	10,988	$	8,872	$	34,524	$	16,653
Other revenue	(232)		(354)		(239)		(306)		(300)
Property management expenses	7,232		6,818		6,371		6,593		5,744
General and administrative      expenses	3,660		5,910		8,154		5,739		5,625
Depreciation and amortization     expense	55,546		53,984		53,536		52,161		49,722
Casualty losses (gains), net	35		680		151		(1,690)		(191)
Interest expense	22,033		22,227		22,124		23,337		22,093
Loss on impairment (gain on sale)     of real estate assets, net	11,268		—		(985)		(17,044)		—
Other loss (income), net	369		72		(93)		(57)		(765)
Loss (gain) from investments in      unconsolidated real estate entities	1,178		1,205		776		(242)		1,477
Merger and integration costs	—		—		—		2,028		275
Restructuring costs	—		—		3,213		—		—
NOI	$	105,075	$	101,530	$	101,880	$	105,043	$	100,333
Less: Non same-store portfolio NOI	4,063		3,400		3,804		4,866		3,937
Same-store portfolio NOI	$	101,012	$	98,130	$	98,076	$	100,177	$	96,396

(a)Same-store portfolio consists of 115 properties, which represent 34,197 units.

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Schedule IV

Independence Realty Trust, Inc.

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

(Dollars in thousands)

(unaudited)

	Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Net income (loss)	$	3,986	$	10,988	$	8,872	$	34,524	$	16,653
Add-Back (Deduct):
Interest expense	22,033		22,227		22,124		23,337		22,093
Depreciation and amortization	55,546		53,984		53,536		52,161		49,722
Casualty losses (gains), net	35		680		151		(1,690)		(191)
Loss on impairment (gain on sale) of   real estate assets, net	11,268		—		(985)		(17,044)		—
Merger and integration costs	—		—		—		2,028		275
Loss (gain) from investments in   unconsolidated real estate entities	1,178		1,205		776		(242)		1,477
Other loss (income), net	369		72		(93)		(57)		(765)
Restructuring costs	—		—		3,213		—		—
Adjusted EBITDA	$	94,415	$	89,156	$	87,594	$	93,017	$	89,264
INTEREST COST:
Interest expense	$	22,033	$	22,227	$	22,124	$	23,337	$	22,093
INTEREST COVERAGE:	4.3x		4.0x		4.0x		4.0x		4.0x

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Net income (loss)	$	3,986	$	16,653	$	23,847	$	86,135
Add-Back (Deduct):
Interest expense	22,033		22,093		66,383		63,618
Depreciation and amortization	55,546		49,722		163,066		200,688
Casualty losses (gains), net	35		(191)		866		(7,176)
Loss on impairment (gain on sale) of   real estate assets, net	11,268		—		10,284		(94,712)
Merger and integration costs	—		275		—		3,477
Loss (gain) from investments in   unconsolidated real estate entities	1,178		1,477		3,159		2,602
Other loss (income), net	369		(765)		348		(1,501)
Restructuring costs	—		—		3,213		—
Adjusted EBITDA	$	94,415	$	89,264	$	271,166	$	253,131
INTEREST COST:
Interest expense	$	22,033	$	22,093	$	66,383	$	63,618
INTEREST COVERAGE:	4.3x		4.0x		4.1x		4.0x

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Schedule V

Independence Realty Trust, Inc.

Definitions

Average Effective Monthly Rent per Unit

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

Average Occupancy

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

Development Property

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

EBITDA and Adjusted EBITDA

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

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

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

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

Interest Coverage

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

Net Debt

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

	As of
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Total debt	$	2,715,710	$	2,650,805	$	2,628,632	$	2,631,645	$	2,713,625
Less: cash and cash equivalents	(17,216)		(14,349)		(12,448)		(16,084)		(23,753)
Less: loan discounts and premiums, net	(50,772)		(53,520)		(56,256)		(59,937)		(63,340)
Total net debt	$	2,647,722	$	2,582,936	$	2,559,928	$	2,555,624	$	2,626,532

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

Net Operating Income

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

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

Non Same-Store Properties and Non Same-Store Portfolio

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

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Same-Store Properties and Same-Store Portfolio

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

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, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Total assets	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533
Plus: accumulated depreciation (a)	570,966		523,446		475,001		426,097		386,606
Plus: accumulated amortization	76,691		76,558		76,558		76,710		77,141
Total gross assets	$	7,225,447	$	7,117,404	$	7,045,306	$	7,034,902	$	7,097,280

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

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EX-99.2

Exhibit 99.2

NYSE: IRT

WWW.IRTLIVING.COM

TABLE OF CONTENTS

Company Information	3
Forward-Looking Statements	4
Earnings Release Text	5
Financial & Operating Highlights	12
Balance Sheets	13
Statements of Operations, FFO & CORE FFO
Trailing Five Quarters	14
Three and Nine Months Ended September 30, 2023 and 2022	15
Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing Five Quarters	16
Three and Nine Months Ended September 30, 2023 and 2022	16
Same-Store Portfolio Net Operating Income and NOI Bridge
Trailing Five Quarters	17
Three and Nine Months Ended September 30, 2023 and 2022	18
Same-Store Portfolio Net Operating Income by Market
Three Months Ended September 30, 2023 and 2022	19
Nine Months Ended September 30, 2023 and 2022	20
Property Portfolio NOI Exposure by Market	21
Value Add Summary	22
Investment & Development Activity	23
Debt Summary	24
Debt Maturity, Debt Covenant & Unencumbered Asset Statistics	25
Definitions	26

Independence Realty Trust

September 30, 2023

Company Information:

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

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

3

Forward-Looking Statements

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

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

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

4

Independence Realty Trust Announces Third Quarter 2023 Financial Results

Initiates Portfolio Optimization and Deleveraging Strategy

Updates Full Year 2023 Guidance

PHILADELPHIA – (BUSINESS WIRE) – October 30, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its third quarter 2023 financial results, initiated its portfolio optimization strategy and updated its full year 2023 guidance.

Third Quarter Highlights

•Net income available to common shares of $3.9million for the quarter ended September 30, 2023 compared to $16.2 million for the quarter ended September 30, 2022.

•Earnings per diluted share of $0.02 for the quarter ended September 30, 2023 compared to $0.07 for the quarter ended September 30, 2022.

•Same-store portfolio net operating income (“NOI”) growth of 4.8% for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022.

•Core Funds from Operations (“CFFO”) of $69.0million for the quarter ended September 30, 2023 compared to $64.3 million for the quarter ended September 30, 2022. CFFO per share was $0.30 for the third quarter of 2023, as compared to $0.28 for the third quarter of 2022.

•Adjusted EBITDA of $94.4 million for the quarter ended September 30, 2023 compared to $89.3 million for the quarter ended September 30, 2022, an increase of 5.7%.

•Value add program completed renovations at 709 units during the quarter ended September 30, 2023, achieving a weighted average return on investment during the quarter of 14.2%.

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 third quarter of 2023, we delivered growth of 4.8% in same store NOI and 7.1% in Core FFO per share and we remain focused on delivering sustainable operational efficiencies. We are updating our full year 2023 guidance to reflect the impact of the slowing macroeconomic environment on leasing activity.” said Scott Schaeffer, Chairman and CEO of IRT. “We are also commencing a portfolio optimization and deleveraging strategy that will accelerate non-core asset sales while deleveraging our balance sheet in the near-term. We expect these initiatives will increase our financial flexibility and will reduce leverage by almost a full turn upon completion of all asset sales. We are confident that these initiatives will strengthen our balance sheet and improve our presence in the multifamily sector in 2024.”

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Same-Store Portfolio(1) Operating Results

	Third Quarter 2023  Compared to  Third Quarter 2022	Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022
Rental and other property revenue	5.4% increase	6.3% increase
Property operating expenses	6.3% increase	6.2% increase
Net operating income (“NOI”)	4.8% increase	6.4% increase
Portfolio average occupancy	40 bps increase to 94.6%	120 bps decrease to 93.9%
Portfolio average rental rate	4.4% increase to $1,549	7.7% increase to $1,536
NOI Margin	40 bps decrease to 62.4%	No change — 62.6%

(1)Same-store portfolio includes 115 properties, which represent 34,197 units.

Operating Metrics

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

	3Q 2023		4Q 2023(3)
Same-Store Portfolio(1)
Average Occupancy	94.6	%	94.3	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	0.8	%	(2.3)	%
Renewal Leases	4.8	%	5.0	%
Blended	3.0	%	2.3	%
Resident retention rate	52.3	%	48.4	%
Same-Store Portfolio excluding Ongoing Value Add
Average Occupancy	95.0	%	94.7	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	0.3	%	(2.5)	%
Renewal Leases	4.6	%	4.8	%
Blended	2.7	%	2.1	%
Resident retention rate	52.6	%	47.7	%
Value Add (22 properties with Ongoing Value Add)
Average Occupancy	92.8	%	92.8	%	(4)
Lease Over Lease Effective Rental Rate Growth:(2)
New Leases	2.8	%	(1.6)	%
Renewal Leases	5.9	%	6.3	%
Blended	4.5	%	3.0	%
Resident retention rate	51.2	%	51.3	%

(1)Same-store portfolio includes 115 properties, which represent 34,197 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 2023 average occupancy and resident retention rates are through October 28, 2023. 4Q 2023 new lease and renewal rates are for leases commencing during 4Q 2023 that were signed as of October 28, 2023.

(4)As of October 28, 2023, same-store portfolio occupancy was 94.6%, same-store portfolio excluding ongoing value add occupancy was 95.0%, and value add occupancy was 93.1%.

Portfolio Optimization and Deleveraging Strategy

We continuously evaluate opportunities for the potential disposition of properties in our portfolio by considering a variety of criteria including, but not limited to, local market conditions and lease rates, our scale within the

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markets, our view of market demographics and growth prospects and potential uses of sales proceeds. Subsequent to September 30, 2023, our Board of Directors approved a plan, which we refer to as our Portfolio Optimization and Deleveraging Strategy, to exit or reduce our presence in certain markets while also deleveraging our balance sheet. Our Portfolio Optimization and Deleveraging Strategy targets sales of approximately 10 properties that are located in seven markets, including the one property in Chicago, Illinois that was held for sale as of September 30, 2023. Nine of the 10 properties were acquired in December 2021 as part of the STAR merger. We currently expect these asset sales to generate gross sales proceeds of approximately $521 to $533 million with proceeds used to immediately delever our balance sheet.

We estimate that these asset sales, if consummated within the foregoing price range, will enable us to reduce our outstanding debt by approximately $516 to $528 million (comprised of $284 million of property level debt associated with the ten properties and $232 to $244 million of additional debt), will reduce our net debt to adjusted EBITDA ratio by 0.8x to 0.9x, and will be dilutive to Core FFO per share by $0.02-$0.03. In addition, consummation of the targeted sales would reduce our market exposures by five single asset markets and reduce the average age of the properties in our portfolio by approximately one year.

We expect to recognize an aggregate net loss after completion of all sales in the range of approximately $39 to $51 million comprised of an $11.3 million impairment charge recorded during the three months ended September 30, 2023 related to our property in Chicago, Illinois that is currently held for sale; an estimated $55 to $63 million impairment charge we expect to recognize during the fourth quarter of 2023 with respect to certain of the properties targeted for sale; and estimated gains of approximately $24 to $28 million we expect to realize in the periods of sale of certain of the properties targeted for sale.

We are in various stages of marketing, negotiations, and buyer due diligence with respect to the properties targeted for sale. There can be no assurance that any of the sales will be consummated at expected pricing levels, within expected time frames, or at all. The estimates of sale prices discussed above are based on our assessment of current conditions in the markets where the properties are located, comparable sales data, characteristics and operating performance of the properties among other factors and are subject to numerous assumptions.

Value Add Program

We completed renovations on 709 units during the quarter ended September 30, 2023, achieving a return on investment of 14.2% (and approximately 15.3% on the interior portion of such renovation costs), with an average cost per unit renovated of $17,750, and an average monthly rent increase per renovated unit of $210. For the nine months end September 30, 2023, we have completed renovations on 1,969 units, achieving a return on investment of 16.0% (and approximately 17.3% on the interior portion of such renovation costs), with an average cost per unit renovated of $16,947, and an average monthly rent increase per renovated unit of $224. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of September 30, 2023.

Investment Activity

Capital Expenditures

For the three months ended September 30, 2023, recurring capital expenditures for the total portfolio were $5.3 million, or $153 per unit. For the nine months ended September 30, 2023, recurring capital expenditures for the total portfolio were $15.8 million, or $454 per unit.

Capital Markets

Dividend Distribution

On September 12, 2023, our Board of Directors declared a quarterly dividend of $0.16 per share of common stock. The third quarter dividend was paid on October 20, 2023 to stockholders of record at the close of business on September 29, 2023.

2023 EPS, FFO and CFFO Guidance

7

We reduced our EPS, FFO, and CFFO per share guidance ranges and our same store NOI guidance range. Earnings (loss) per diluted share is now projected to be in the range of ($0.07) to ($0.02). A reconciliation of IRT's projected net (loss) 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
2023 Full Year EPS and CFFO Guidance(1)(2)	Low		High		Low		High
Earnings (loss) per share	$	0.25	$	0.27	$	(0.07)	$	(0.02)	$	(0.305)
Adjustments:
Depreciation and amortization	0.95		0.95		0.94		0.94		(0.01)
(Gain on sale) loss on impairment of   real estate assets(3)	(0.01)		(0.01)		0.32		0.28		0.31
FFO per share	1.19		1.21		1.19		1.20		(0.005)
Loan (premium accretion) discount   amortization, net	(0.05)		(0.05)		(0.05)		(0.05)		—
Core FFO per share	$	1.14	$	1.16	$	1.14	$	1.15	$	(0.005)

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2023 EPS, FFO, and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” . Our guidance is based on the key guidance assumptions detailed below.

(2)Per share guidance is based on 230.4 million weighted average shares and units outstanding.

(3)Gain on sale (loss on impairment) of real estate assets includes gains (impairments) on one asset sale that occurred during the first quarter of 2023, one property identified as held for sale as of September 30, 2023, and nine other assets targeted for sale as part of our Portfolio Optimization and Deleveraging Strategy.

8

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	Previous 2023 Outlook	Current 2023 Outlook(1)	Change at Midpoint
Number of properties/units	115 properties / 34,179 units	106 properties / 31,829 units
Property revenue growth	6.1% to 6.6%	5.5% to 5.7%	(0.75)%
Controllable operating expense growth	4.7% to 5.4%	6.0% to 7.0%	1.40%
Real estate tax and insurance expense growth	7.5% to 8.1%	4.2% to 4.8%	(3.30)%
Total operating expense growth	5.7% to 6.4%	5.5% to 5.9%	(0.35)%
Property NOI growth	6.0% to 7.0%	5.3% to 5.7%	(1.00)%
Corporate Expenses
General and administrative & Property     management expenses	$50.5 million to $51.5 million	$50.0 million to $51.0 million	$(0.5) million
Interest expense(2)	$102.5 million to $103.5 million	$101.0 million to $102.0 million	$(1.5) million
Transaction/Investment Volume(3)
Acquisition volume	None	None	—
Disposition volume	$122 million to $127 million	$122 million to $127 million	—
Capital Expenditures
Recurring	$20.0 million to $22.0 million	$20.0 million to $21.0 million	$(0.5) million
Value add & non-recurring	$78.0 million to $82.0 million	$83.0 million to $85.0 million	$4.0 million
Development	$80.0 million to $90.0 million	$75.0 million to $80.0 million	$(7.5) million

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

(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting, we recorded 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)Includes one asset sale that occurred in the first quarter 2023 and one property identified as held for sale as of September 30, 2023. We expect sales of the other nine properties included in the Portfolio Optimization and Deleveraging Strategy to close in 2024. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions except as required by law. See “Forward-Looking Statements”.

9

Selected Financial Information

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

Non-GAAP Financial Measures and Definitions

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

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Tuesday, October 31, 2023 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.888.440.3307, access code 1963990. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website until the next earnings release. A playback of the conference call can also be accessed telephonically until Tuesday, November 7, 2023 by dialing 1.800.770.2030, access code 1963990.

Supplemental Information

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

About Independence Realty Trust, Inc.

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

10

Forward-Looking Statements

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

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

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

11

FINANCIAL & OPERATING HIGHLIGHTS

Dollars in thousands, except per share data

	For the Three Months Ended
	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Selected Financial Information:
Operating Statistics:
Net income available to common shares	$3,930	$10,709	$8,648	$33,631	$16,223
Earnings per share -- diluted	$0.02	$0.05	$0.04	$0.15	$0.07
Rental and other property revenue	$168,375	$163,601	$161,135	$162,493	$160,300
Property operating expenses	$63,300	$62,071	$59,255	$57,450	$59,967
NOI	$105,075	$101,530	$101,880	$105,043	$100,333
NOI margin	62.4%	62.1%	63.2%	64.6%	62.6%
Adjusted EBITDA	$94,415	$89,156	$87,594	$93,017	$89,264
FFO per share	$0.31	$0.28	$0.27	$0.31	$0.30
CORE FFO per share	$0.30	$0.28	$0.27	$0.29	$0.28
Dividends per share	$0.16	$0.16	$0.14	$0.14	$0.14
CORE FFO payout ratio	53.3%	57.1%	51.9%	48.3%	50.0%
Portfolio Data:
Total gross assets	$7,225,447	$7,117,404	$7,045,306	$7,034,902	$7,097,280
Total number of operating properties (a)	120	119	119	120	122
Total units (a)	35,427	35,249	35,249	35,526	36,176
Portfolio period end occupancy (a)	94.4%	94.6%	94.1%	93.6%	94.6%
Portfolio average occupancy (a)	94.6%	94.1%	93.1%	93.9%	94.2%
Portfolio average effective monthly rent, per unit (a)	$1,556	$1,538	$1,535	$1,522	$1,484
Same-store portfolio period end occupancy (b)	94.5%	94.6%	94.1%	93.6%	94.6%
Same-store portfolio average occupancy (b)	94.6%	94.2%	93.1%	93.9%	94.2%
Same-store portfolio average effective   monthly rent, per unit (b)	$1,549	$1,531	$1,528	$1,517	$1,484
Capitalization:
Total debt (c)	$2,715,710	$2,650,805	$2,628,632	$2,631,645	$2,713,625
Common share price, period end	$14.07	$18.22	$16.03	$16.86	$16.73
Market equity capitalization	$3,245,135	$4,202,342	$3,694,970	$3,880,432	$3,850,365
Total market capitalization	$5,960,845	$6,853,147	$6,323,602	$6,512,077	$6,563,990
Total debt/total gross assets	37.6%	37.2%	37.3%	37.4%	38.2%
Net debt to Adjusted EBITDA (d)	7.0x	7.2x	7.3x	6.9x	7.2x
Interest coverage	4.3x	4.0x	4.0x	4.0x	4.0x
Common shares and OP Units:
Shares outstanding	224,695,566	224,697,889	224,556,870	224,064,940	224,056,179
OP units outstanding	5,946,571	5,946,571	5,946,571	6,091,171	6,091,171
Common shares and OP units outstanding	230,642,137	230,644,460	230,503,441	230,156,111	230,147,350
Weighted average common shares and OP units	230,444,945	230,369,086	230,186,297	229,994,927	228,051,780

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

(b)Same-store portfolio consists of 115 properties, which represent 34,197 units.

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

(d)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended September 30, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 7.0x, 7.2x, 7.3x, 6.9x, and 7.4x, respectively.

12

BALANCE SHEETS

Dollars in thousands, except per share data

	As of
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Assets:
Real estate held for investment, at cost	$	6,754,022	$	6,610,233	$	6,648,907	$	6,615,243	$	6,634,087
Less: accumulated depreciation	(567,200)		(519,680)		(475,001)		(425,034)		(379,171)
Real estate held for investment, net	6,186,822		6,090,553		6,173,906		6,190,209		6,254,916
Real estate held for sale	75,392		86,576		—		35,777		82,178
Real estate under development	83,547		121,733		124,983		105,518		86,763
Cash and cash equivalents	17,216		14,349		12,448		16,084		23,753
Restricted cash	31,772		28,163		22,385		27,933		35,829
Investment in unconsolidated real estate entities	87,592		99,968		92,882		80,220		70,608
Other assets	41,926		31,799		34,360		34,846		34,480
Derivative assets	53,258		44,259		32,783		41,109		43,967
Intangible assets, net	265		—		—		399		1,039
Total assets	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533
Liabilities and Equity:
Indebtedness, net	$	2,675,117	$	2,609,903	$	2,628,632	$	2,631,645	$	2,667,183
Indebtedness associated with real estate held   for sale, net	40,593		40,902		—		—		46,442
Accounts payable and accrued expenses	138,549		115,664		105,873		109,677		126,310
Accrued interest payable	8,275		7,986		7,979		7,713		11,019
Dividends payable	36,858		36,856		32,232		32,189		32,188
Derivative liabilities	—		—		2,283		—		—
Other liabilities	10,642		11,172		11,813		13,004		13,816
Total liabilities	2,910,034		2,822,483		2,788,812		2,794,228		2,896,958
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share	—		—		—		—		—
Common shares, $0.01 par value per share	2,247		2,247		2,246		2,241		2,241
Additional paid in capital	3,751,001		3,754,839		3,753,074		3,751,056		3,749,550
Accumulated other comprehensive income	47,910		38,823		25,101		35,102		37,569
Accumulated deficit	(271,982)		(239,972)		(214,775)		(191,735)		(194,014)
Total shareholders' equity	3,529,176		3,555,937		3,565,646		3,596,664		3,595,346
Noncontrolling Interests	138,580		138,980		139,289		141,203		141,229
Total equity	3,667,756		3,694,917		3,704,935		3,737,867		3,736,575
Total liabilities and equity	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533

13

STATEMENTS OF OPERATIONS, FFO & CORE FFO

TRAILING FIVE QUARTERS

Dollars in thousands, except per share data

	For the Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Revenue:
Rental and other property revenue	$	168,375	$	163,601	$	161,135	$	162,493	$	160,300
Other revenue	232		354		239		306		300
Total revenue	168,607		163,955		161,374		162,799		160,600
Expenses:
Property operating expenses	63,300		62,071		59,255		57,450		59,967
Property management expenses	7,232		6,818		6,371		6,593		5,744
General and administrative expenses (a)	3,660		5,910		8,154		5,739		5,625
Depreciation and amortization expense	55,546		53,984		53,536		52,161		49,722
Casualty losses (gains), net	35		680		151		(1,690)		(191)
Total expenses	129,773		129,463		127,467		120,253		120,867
Interest expense	(22,033)		(22,227)		(22,124)		(23,337)		(22,093)
(Loss on impairment) gain on sale of real estate   assets, net	(11,268)		—		985		17,044		—
Other (loss) income, net	(369)		(72)		93		57		765
(Loss) gain from investments in unconsolidated   real estate entities	(1,178)		(1,205)		(776)		242		(1,477)
Merger and integration costs	—		—		—		(2,028)		(275)
Restructuring costs	—		—		(3,213)		—		—
Net income	$	3,986	$	10,988	$	8,872	$	34,524	$	16,653
Income allocated to noncontrolling interests	(56)		(279)		(224)		(893)		(430)
Net income available to common shares	$	3,930	$	10,709	$	8,648	$	33,631	$	16,223
EPS - basic	$	0.02	$	0.05	$	0.04	$	0.15	$	0.07
Weighted-average shares outstanding - Basic	224,498,374		224,422,515		224,226,873		223,903,756		221,960,609
EPS - diluted	$	0.02	$	0.05	$	0.04	$	0.15	$	0.07
Weighted-average shares outstanding - Diluted	225,140,555		225,073,890		225,088,659		224,915,128		222,867,546
Funds From Operations (FFO):
Net income	$	3,986	$	10,988	$	8,872	$	34,524	$	16,653
Add-Back (Deduct):
Real estate depreciation and amortization	55,217		53,701		53,287		51,957		49,347
Our share of real estate depreciation and   amortization from investments in unconsolidated    real estate entities	486		575		418		416		1,388
Loss on impairment (gain on sale) of real estate   assets, net, excluding prepayment gains	11,268		—		(314)		(16,635)		—
FFO	$	70,957	$	65,264	$	62,263	$	70,262	$	67,388
FFO per share	$	0.31	$	0.28	$	0.27	$	0.31	$	0.30
CORE Funds From Operations (CFFO):
FFO	$	70,957	$	65,264	$	62,263	$	70,262	$	67,388
Add-Back (Deduct):
Other depreciation and amortization	329		283		249		204		375
Casualty losses (gains), net	35		680		151		(1,690)		(191)
Loan (premium accretion) discount amortization,  net	(2,747)		(2,737)		(2,755)		(2,760)		(2,750)
Prepayment (gains) penalties on asset dispositions	—		—		(670)		(409)		—
Other expense (income), net	429		192		42		(860)		(765)
Merger and integration costs	—		—		—		2,028		275
Restructuring costs	—		—		3,213		—		—
CFFO	$	69,003	$	63,682	$	62,493	$	66,775	$	64,332
CFFO per share	$	0.30	$	0.28	$	0.27	$	0.29	$	0.28
Weighted-average shares and units outstanding	230,444,945		230,369,086		230,186,297		229,994,927		228,051,780

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

14

STATEMENTS OF OPERATIONS, FFO & CORE FFO

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

Dollars in thousands, except per share data

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2023		2022		2023		2022
Revenue:
Rental and other property revenue	$	168,375	$	160,300	$	493,111	$	464,921
Other revenue	232		300		826		805
Total revenue	168,607		160,600		493,937		465,726
Expenses:
Property operating expenses	63,300		59,967		184,627		174,825
Property management expenses	7,232		5,744		20,421		17,440
General and administrative expenses	3,660		5,625		17,724		20,521
Depreciation and amortization expense	55,546		49,722		163,066		200,688
Casualty losses (gains), net	35		(191)		866		(7,176)
Total expenses	129,773		120,867		386,704		406,298
Interest expense	(22,033)		(22,093)		(66,383)		(63,618)
(Loss on impairment) gain on sale of real estate   assets, net	(11,268)		—		(10,284)		94,712
Other (loss) income, net	(369)		765		(348)		1,501
Loss from investments in unconsolidated real estate entities	(1,178)		(1,477)		(3,158)		(2,411)
Merger and integration costs	—		(275)		—		(3,477)
Restructuring costs	—		—		(3,213)		—
Net income	3,986		16,653		23,847		86,135
Income allocated to noncontrolling interests	(56)		(430)		(559)		(2,517)
Net income available to common shares	$	3,930	$	16,223	$	23,288	$	83,618
EPS - basic	$	0.02	$	0.07	$	0.10	$	0.38
Weighted-average shares outstanding - Basic	224,498,374		221,960,609		224,383,590		221,312,261
EPS - diluted	$	0.02	$	0.07	$	0.10	$	0.38
Weighted-average shares outstanding - Diluted	225,140,555		222,867,546		225,103,475		222,359,585
Funds From Operations (FFO):
Net income	$	3,986	$	16,653	$	23,847	$	86,135
Add-Back (Deduct):
Real estate depreciation and amortization	55,217		49,347		162,205		199,588
Our share of real estate depreciation and amortization from   investments in unconsolidated real estate entities	486		1,388		1,479		1,904
Loss on impairment (gain on sale) of real estate assets,   net, excluding prepayment gains	11,268		—		10,954		(94,712)
FFO	$	70,957	$	67,388	$	198,485	$	192,915
FFO per share	$	0.31	$	0.30	$	0.86	$	0.85
CORE Funds From Operations (CFFO):
FFO	$	70,957	$	67,388	$	198,485	$	192,915
Add-Back (Deduct):
Other depreciation and amortization	329		375		860		1,100
Casualty losses (gains), net	35		(191)		866		(7,176)
Loan (premium accretion) discount amortization, net	(2,747)		(2,750)		(8,239)		(8,245)
Prepayment (gains) penalties on asset dispositions	—		—		(670)		—
Other expense (income), net	429		(765)		663		(1,438)
Merger and integration costs	—		275		—		3,477
Restructuring costs	—		—		3,213		—
CFFO	$	69,003	$	64,332	$	195,178	$	180,633
CFFO per share	$	0.30	$	0.28	$	0.85	$	0.79
Weighted-average shares and units outstanding	230,444,945		228,051,780		230,334,398		227,933,320

15

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

	Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Net income (loss)	$	3,986	$	10,988	$	8,872	$	34,524	$	16,653
Add-Back (Deduct):
Interest expense	22,033		22,227		22,124		23,337		22,093
Depreciation and amortization	55,546		53,984		53,536		52,161		49,722
Casualty losses (gains), net	35		680		151		(1,690)		(191)
Loss on impairment (gain on sale) of   real estate assets, net	11,268		—		(985)		(17,044)		—
Merger and integration costs	—		—		—		2,028		275
Loss (gain) from investments in   unconsolidated real estate entities	1,178		1,205		776		(242)		1,477
Other loss (income), net	369		72		(93)		(57)		(765)
Restructuring costs	—		—		3,213		—		—
Adjusted EBITDA	$	94,415	$	89,156	$	87,594	$	93,017	$	89,264
INTEREST COST:
Interest expense	$	22,033	$	22,227	$	22,124	$	23,337	$	22,093
INTEREST COVERAGE:	4.3x		4.0x		4.0x		4.0x		4.0x

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Net income (loss)	$	3,986	$	16,653	$	23,847	$	86,135
Add-Back (Deduct):
Interest expense	22,033		22,093		66,383		63,618
Depreciation and amortization	55,546		49,722		163,066		200,688
Casualty losses (gains), net	35		(191)		866		(7,176)
Loss on impairment (gain on sale) of   real estate assets, net	11,268		—		10,284		(94,712)
Merger and integration costs	—		275		—		3,477
Loss (gain) from investments in   unconsolidated real estate entities	1,178		1,477		3,159		2,602
Other loss (income), net	369		(765)		348		(1,501)
Restructuring costs	—		—		3,213		—
Adjusted EBITDA	$	94,415	$	89,264	$	271,166	$	253,131
INTEREST COST:
Interest expense	$	22,033	$	22,093	$	66,383	$	63,618
INTEREST COVERAGE:	4.3x		4.0x		4.1x		4.0x

16

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

TRAILING FIVE QUARTERS

Dollars in thousands, except per unit data

	For the Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Rental and other property revenue
Same-store portfolio	$	161,811	$	158,124	$	154,816	$	154,919	$	153,584
Non same-store portfolio	6,564		5,477		6,319		7,574		6,716
Total rental and other property revenue	168,375		163,601		161,135		162,493		160,300
Property operating expenses
Same-store portfolio	60,799		59,994		56,740		54,742		57,188
Non same-store portfolio	2,501		2,077		2,515		2,708		2,779
Total property operating expenses	63,300		62,071		59,255		57,450		59,967
NOI
Same-store portfolio	101,012		98,130		98,076		100,177		96,396
Non same-store portfolio	4,063		3,400		3,804		4,866		3,937
Total property NOI	$	105,075	$	101,530	$	101,880	$	105,043	$	100,333

(a)Same-store portfolio consists of 115 properties, which represent 34,197 units.

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

	For the Three-Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Revenue:
Rental and other property revenue	$	161,811	$	158,124	$	154,816	$	154,919	$	153,584
Property Operating Expenses:
Real estate taxes	19,381		19,584		19,360		19,312		18,727
Property insurance	4,344		3,857		3,150		3,316		3,536
Personnel expenses	12,828		12,609		11,876		12,088		12,103
Utilities	8,165		7,523		7,888		7,812		8,021
Repairs and maintenance	6,389		6,536		5,801		3,887		6,013
Contract services	5,936		6,303		5,391		5,057		5,391
Advertising expenses	2,042		1,688		1,357		1,198		1,487
Other expenses	1,714		1,894		1,917		2,072		1,910
Total property operating expenses	60,799		59,994		56,740		54,742		57,188
Same-store portfolio NOI	$	101,012	$	98,130	$	98,076	$	100,177	$	96,396

Same-store portfolio NOI margin	62.4	%	62.1	%	63.4	%	64.7	%	62.8	%
Average occupancy	94.6	%	94.2	%	93.1	%	93.9	%	94.2	%

Average effective monthly rent, per unit $ 1,549  $ 1,531  $ 1,528  $ 1,517  $ 1,484 

17

SAME-STORE PORTFOLIO NET OPERATING INCOME (a)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

Dollars in thousands, except per unit data

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2023		2022		% change		2023		2022		% change
Revenue:
Rental and other property revenue	$	161,811	$	153,584	5.4	%	$	474,751	$	446,460	6.3	%
Property Operating Expenses:
Real estate taxes	19,381		18,727		3.5	%	58,325		57,630		1.2	%
Property insurance	4,344		3,536		22.9	%	11,351		9,343		21.5	%
Personnel expenses	12,828		12,103		6.0	%	37,313		36,752		1.5	%
Utilities	8,165		8,021		1.8	%	23,576		22,419		5.2	%
Repairs and maintenance	6,389		6,013		6.3	%	18,726		16,315		14.8	%
Contract services	5,936		5,391		10.1	%	17,630		15,362		14.8	%
Advertising expenses	2,042		1,487		37.3	%	5,087		3,947		28.9	%
Other expenses	1,714		1,910		(10.3)	%	5,525		5,355		3.2	%
Total property operating expenses	60,799		57,188		6.3	%	177,533		167,123		6.2	%
Same-store portfolio NOI	$	101,012	$	96,396	4.8	%	$	297,218	$	279,337	6.4	%

Same-store portfolio NOI margin	62.4		%	62.8		%	(0.4)	%	62.6		%	62.6		%	—	%
Average occupancy	94.6		%	94.2		%	0.4	%	93.9		%	95.1		%	(1.2)	%
Average effective monthly rent,   per unit	$	1,549		$	1,484		4.4	%	$	1,536		$	1,426		7.7	%

(a)Same-store portfolio consists of 115 properties, which represent 34,197 units.

18

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED SEPTEMBER 30, 2023

Dollars in thousands, except rent per unit

			Rental and Other Property Revenue						Property Operating Expenses						Net Operating Income						Average Occupancy						Average Effective Monthly Rent per Unit
Market	Number of Properties	Units	2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change		2023		2022		% Change
Atlanta, GA	13	5,180	$	24,914	$	23,681	5.2	%	$	9,278	$	9,124	1.7	%	$	15,635	$	14,554	7.4	%	92.3	%	93.5	%	(1.2)	%	$	1,643	$	1,579	4.1	%
Dallas, TX	14	4,007	21,994		20,906		5.2	%	8,579		8,577		—	%	13,415		12,329		8.8	%	94.7	%	94.8	%	(0.1)	%	1,807		1,722		4.9	%
Denver, CO (a)	9	2,292	12,175		11,677		4.3	%	4,263		3,737		14.1	%	7,912		7,940		(0.4)	%	95.7	%	94.9	%	0.8	%	1,716		1,655		3.7	%
Columbus, OH	10	2,510	10,773		10,056		7.1	%	4,421		3,759		17.6	%	6,352		6,297		0.9	%	94.8	%	93.8	%	1.0	%	1,406		1,324		6.2	%
Raleigh - Durham, NC	6	1,690	7,977		7,461		6.9	%	2,811		2,433		15.5	%	5,166		5,028		2.7	%	95.1	%	94.1	%	1.0	%	1,551		1,462		6.1	%
Oklahoma City, OK	8	2,147	7,962		7,613		4.6	%	2,836		2,658		6.7	%	5,125		4,955		3.4	%	95.0	%	94.6	%	0.4	%	1,177		1,131		4.1	%
Houston, TX (a)	7	1,932	8,719		8,098		7.7	%	3,888		3,721		4.5	%	4,830		4,378		10.3	%	95.7	%	93.9	%	1.8	%	1,444		1,410		2.4	%
Indianapolis, IN	7	1,979	8,370		7,791		7.4	%	3,551		3,024		17.4	%	4,819		4,767		1.1	%	94.0	%	94.6	%	(0.6)	%	1,366		1,281		6.6	%
Nashville, TN	4	1,412	7,079		6,742		5.0	%	2,345		2,234		5.0	%	4,734		4,507		5.0	%	95.0	%	94.9	%	0.1	%	1,633		1,565		4.3	%
Memphis, TN	4	1,383	6,327		6,193		2.2	%	2,196		2,115		3.8	%	4,130		4,077		1.3	%	93.6	%	92.0	%	1.6	%	1,521		1,520		0.1	%
Tampa-St. Petersburg, FL	4	1,104	6,247		5,703		9.5	%	2,218		2,070		7.1	%	4,029		3,633		10.9	%	95.3	%	94.1	%	1.2	%	1,827		1,719		6.3	%
Birmingham, AL	2	1,074	4,707		4,619		1.9	%	1,910		1,720		11.0	%	2,798		2,899		(3.5)	%	93.4	%	93.1	%	0.3	%	1,469		1,441		1.9	%
Louisville, KY	4	1,150	4,626		4,419		4.7	%	1,844		1,884		(2.1)	%	2,782		2,536		9.7	%	94.8	%	93.2	%	1.6	%	1,275		1,225		4.1	%
Huntsville, AL	3	873	4,151		4,106		1.1	%	1,469		1,331		10.4	%	2,682		2,775		(3.4)	%	96.2	%	95.0	%	1.2	%	1,522		1,494		1.9	%
Lexington, KY	3	886	3,833		3,555		7.8	%	1,194		1,192		0.2	%	2,639		2,363		11.7	%	97.6	%	96.4	%	1.2	%	1,310		1,242		5.5	%
Charlotte, NC	2	480	2,645		2,524		4.8	%	726		737		(1.5)	%	1,920		1,787		7.4	%	95.7	%	95.8	%	(0.1)	%	1,779		1,689		5.3	%
Myrtle Beach, SC - Wilmington, NC	3	628	2,733		2,632		3.8	%	890		756		17.7	%	1,843		1,876		(1.8)	%	94.8	%	93.9	%	0.9	%	1,420		1,380		2.9	%
Cincinnati, OH	2	542	2,828		2,593		9.1	%	1,085		886		22.5	%	1,742		1,708		2.0	%	95.9	%	96.1	%	(0.2)	%	1,589		1,495		6.3	%
Greenville, SC	1	702	2,607		2,528		3.1	%	941		928		1.4	%	1,667		1,601		4.1	%	94.3	%	94.6	%	(0.3)	%	1,279		1,213		5.4	%
Charleston, SC	2	518	2,656		2,513		5.7	%	1,082		1,142		(5.3)	%	1,574		1,370		14.9	%	95.2	%	93.9	%	1.3	%	1,678		1,572		6.7	%
Orlando, FL	1	297	1,636		1,468		11.4	%	659		610		8.0	%	977		859		13.7	%	93.2	%	91.4	%	1.8	%	1,816		1,713		6.0	%
Asheville, NC (a)	1	252	1,170		1,097		6.7	%	334		323		3.4	%	837		773		8.3	%	96.4	%	95.9	%	0.5	%	1,553		1,423		9.1	%
San Antonio, TX	1	306	1,465		1,460		0.3	%	654		556		17.6	%	811		904		(10.3)	%	96.6	%	97.1	%	(0.5)	%	1,480		1,495		(1.0)	%
Austin, TX	1	256	1,373		1,311		4.7	%	585		667		(12.3)	%	788		644		22.4	%	92.3	%	93.6	%	(1.3)	%	1,804		1,690		6.7	%
Norfolk, VA (a)	1	183	1,040		1,018		2.2	%	374		342		9.4	%	666		676		(1.5)	%	96.8	%	96.2	%	0.6	%	1,913		1,840		4.0	%
Fort Wayne, IN (a)	1	222	986		967		2.0	%	329		322		2.2	%	658		646		1.9	%	94.9	%	95.8	%	(0.9)	%	1,428		1,392		2.6	%
Chattanooga, TN (a)	1	192	818		853		(4.1)	%	337		340		(0.9)	%	481		514		(6.4)	%	93.9	%	96.0	%	(2.1)	%	1,412		1,412		—	%
Total / Weighted    Average	115	34,197	$	161,811	$	153,584	5.4	%	$	60,799	$	57,188	6.3	%	$	101,012	$	96,396	4.8	%	94.6	%	94.2	%	0.4	%	$	1,549	$	1,484	4.4	%

(a)Includes properties included in our Portfolio Optimization and Deleveraging Strategy. In the case of Denver, CO includes three properties comprised of 895 units, in aggregate, and in the case of Houston, TX includes two properties comprised of 624 units, in the aggregate.

19

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

NINE MONTHS ENDED SEPTEMBER 30, 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	$	72,470	$	69,152	4.8	%	$	27,006	$	25,501	5.9	%	$	45,463	$	43,649	4.2	%	92.1	%	94.3	%	(2.2)	%	$	1,633	$	1,513	7.9	%
Dallas, TX	14	4,007	64,949		60,960		6.5	%	25,899		26,224		(1.2)	%	39,050		34,736		12.4	%	94.2	%	95.5	%	(1.3)	%	1,794		1,660		8.1	%
Denver, CO (a)	9	2,292	36,071		33,729		6.9	%	11,739		10,566		11.1	%	24,332		23,163		5.0	%	94.7	%	95.4	%	(0.7)	%	1,706		1,601		6.6	%
Columbus, OH	10	2,510	31,581		29,368		7.5	%	12,110		11,275		7.4	%	19,471		18,093		7.6	%	94.8	%	95.0	%	(0.2)	%	1,380		1,273		8.4	%
Raleigh - Durham, NC	6	1,690	23,583		21,412		10.1	%	7,971		7,271		9.6	%	15,613		14,141		10.4	%	94.3	%	95.1	%	(0.8)	%	1,538		1,383		11.2	%
Oklahoma City, OK	8	2,147	23,223		22,067		5.2	%	8,056		7,623		5.7	%	15,167		14,444		5.0	%	93.5	%	95.5	%	(2.0)	%	1,169		1,087		7.5	%
Indianapolis, IN	7	1,979	24,588		22,651		8.6	%	9,643		8,849		9.0	%	14,945		13,802		8.3	%	93.8	%	95.1	%	(1.3)	%	1,349		1,237		9.1	%
Houston, TX (a)	7	1,932	25,724		24,054		6.9	%	11,988		11,424		4.9	%	13,735		12,630		8.7	%	95.2	%	94.5	%	0.7	%	1,434		1,374		4.4	%
Nashville, TN	4	1,412	20,460		19,705		3.8	%	7,075		6,742		4.9	%	13,385		12,963		3.3	%	93.1	%	95.6	%	(2.5)	%	1,611		1,505		7.0	%
Memphis, TN	4	1,383	18,575		17,646		5.3	%	6,240		6,019		3.7	%	12,335		11,627		6.1	%	93.8	%	93.5	%	0.3	%	1,508		1,442		4.6	%
Tampa-St. Petersburg, FL	4	1,104	18,216		16,192		12.5	%	6,833		6,119		11.7	%	11,383		10,074		13.0	%	95.0	%	94.4	%	0.6	%	1,803		1,621		11.2	%
Birmingham, AL	2	1,074	13,836		13,911		(0.5)	%	5,666		5,268		7.6	%	8,171		8,642		(5.5)	%	91.1	%	94.3	%	(3.2)	%	1,469		1,410		4.2	%
Huntsville, AL	3	873	12,250		11,941		2.6	%	4,282		3,853		11.1	%	7,968		8,088		(1.5)	%	95.3	%	95.4	%	(0.1)	%	1,538		1,462		5.2	%
Louisville, KY	4	1,150	13,544		13,025		4.0	%	5,722		5,479		4.4	%	7,822		7,546		3.7	%	93.5	%	94.3	%	(0.8)	%	1,277		1,185		7.8	%
Lexington, KY	3	886	11,179		10,381		7.7	%	3,441		3,443		(0.1)	%	7,739		6,938		11.5	%	96.8	%	96.3	%	0.5	%	1,285		1,201		7.0	%
Charlotte, NC	2	480	7,921		7,179		10.3	%	2,354		2,251		4.6	%	5,567		4,928		13.0	%	95.8	%	96.0	%	(0.2)	%	1,766		1,597		10.6	%
Myrtle Beach, SC - Wilmington, NC	3	628	8,024		7,344		9.3	%	2,508		2,259		11.0	%	5,516		5,085		8.5	%	95.0	%	95.6	%	(0.6)	%	1,410		1,270		11.0	%
Cincinnati, OH	2	542	8,057		7,568		6.5	%	3,042		2,444		24.5	%	5,015		5,124		(2.1)	%	94.3	%	96.6	%	(2.3)	%	1,563		1,450		7.8	%
Greenville, SC	1	702	7,772		7,276		6.8	%	2,898		2,693		7.6	%	4,874		4,583		6.3	%	94.0	%	94.9	%	(0.9)	%	1,259		1,168		7.8	%
Charleston, SC	2	518	7,779		7,181		8.3	%	3,244		2,815		15.2	%	4,535		4,366		3.9	%	94.6	%	95.7	%	(1.1)	%	1,638		1,486		10.2	%
Orlando, FL	1	297	4,705		4,254		10.6	%	1,998		1,760		13.5	%	2,707		2,494		8.5	%	93.1	%	94.5	%	(1.4)	%	1,801		1,617		11.4	%
Asheville, NC (a)	1	252	3,460		3,083		12.2	%	960		883		8.7	%	2,500		2,200		13.6	%	96.5	%	96.7	%	(0.2)	%	1,518		1,338		13.5	%
San Antonio, TX	1	306	4,352		4,334		0.4	%	2,001		1,815		10.2	%	2,350		2,519		(6.7)	%	96.1	%	96.5	%	(0.4)	%	1,484		1,472		0.8	%
Austin, TX	1	256	4,041		3,849		5.0	%	1,811		1,740		4.1	%	2,230		2,109		5.7	%	91.3	%	95.6	%	(4.3)	%	1,786		1,620		10.2	%
Fort Wayne, IN (a)	1	222	2,964		2,823		5.0	%	955		928		2.9	%	2,009		1,896		6.0	%	94.1	%	95.4	%	(1.3)	%	1,430		1,351		5.8	%
Norfolk, VA (a)	1	183	3,049		2,893		5.4	%	1,085		918		18.2	%	1,964		1,976		(0.6)	%	95.7	%	95.4	%	0.3	%	1,896		1,782		6.4	%
Chattanooga, TN (a)	1	192	2,378		2,482		(4.2)	%	1,006		961		4.7	%	1,372		1,521		(9.8)	%	92.8	%	96.6	%	(3.8)	%	1,390		1,367		1.7	%
Total/Weighted Average	115	34,197	$	474,751	$	446,460	6.3	%	$	177,533	$	167,123	6.2	%	$	297,218	$	279,337	6.4	%	93.9	%	95.1	%	(1.2)	%	$	1,536	$	1,426	7.7	%

(a)Includes properties included in our Portfolio Optimization and Deleveraging Strategy. In the case of Denver, CO includes three properties comprised of 895 units, in aggregate, and in the case of Houston, TX includes two properties comprised of 624 units, in the aggregate.

20

PROPERTY PORTFOLIO (a)

NET OPERATING INCOME EXPOSURE BY MARKET

Dollars in thousands, except rent per unit

							For the Three Months Ended  September 30, 2023
Market	Number of Properties	Units	Gross Real  Estate  Assets		Period End  Occupancy		Average  Effective  Monthly Rent  per Unit		NOI		% of NOI
Atlanta, GA	13	5,180	$	1,086,056	92.3	%	$	1,643	$	15,635	14.9	%
Dallas, TX	14	4,007	863,869		94.3	%	1,807		13,415		12.8	%
Denver, CO (b) (c)	9	2,292	610,637		95.4	%	1,716		7,912		7.3	%
Columbus, OH	10	2,510	373,832		94.4	%	1,406		6,352		6.1	%
Raleigh - Durham, NC	6	1,690	255,277		95.4	%	1,551		5,166		4.9	%
Oklahoma City, OK	8	2,147	327,074		95.3	%	1,177		5,125		4.9	%
Tampa-St. Petersburg, FL	5	1,452	307,400		95.4	%	1,825		5,124		4.9	%
Nashville, TN	5	1,508	370,731		94.3	%	1,624		5,044		4.8	%
Houston, TX (c)	7	1,932	324,821		95.3	%	1,444		4,830		4.6	%
Indianapolis, IN	7	1,979	293,011		93.7	%	1,366		4,819		4.6	%
Memphis, TN	4	1,383	162,123		92.8	%	1,521		4,130		3.9	%
Huntsville, AL (d)	4	1,051	241,013		94.5	%	1,529		3,057		2.9	%
Birmingham, AL	2	1,074	233,604		93.7	%	1,469		2,798		2.7	%
Charlotte, NC	3	714	189,550		95.8	%	1,767		2,789		2.7	%
Louisville, KY	4	1,150	147,848		95.6	%	1,275		2,782		2.7	%
Lexington, KY	3	886	160,777		96.7	%	1,310		2,639		2.5	%
Myrtle Beach, SC - Wilmington, NC	3	628	68,543		95.8	%	1,420		1,843		1.8	%
Cincinnati, OH	2	542	123,081		95.6	%	1,589		1,742		1.7	%
Greenville, SC	1	702	124,027		93.9	%	1,279		1,667		1.6	%
Charleston, SC	2	518	81,529		94.4	%	1,678		1,574		1.5	%
Chicago, IL (e)	1	374	79,158		93.6	%	1,847		1,282		1.2	%
Orlando, FL	1	297	50,306		96.3	%	1,816		977		0.9	%
Asheville, NC (c)	1	252	29,349		96.4	%	1,553		837		0.8	%
San Antonio, TX	1	306	57,269		97.7	%	1,480		811		0.8	%
Austin, TX	1	256	58,568		92.9	%	1,804		788		0.8	%
Norfolk, VA (c)	1	183	54,297		97.3	%	1,913		666		0.6	%
Fort Wayne, IN (c)	1	222	44,506		95.5	%	1,428		658		0.6	%
Chattanooga, TN (c)	1	192	37,336		91.1	%	1,412		481		0.5	%
Total / Weighted Average	120	35,427	$	6,755,592	94.4	%	$	1,556	$	104,943	100.0	%

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

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

(c)Includes properties included in our Portfolio Optimization and Deleveraging Strategy. In the case of Denver, CO includes three properties comprised of 895 units, in aggregate, and in the case of Houston, TX includes two properties comprised of 624 units, in the aggregate.

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

(e)Property held for sale as of September 30, 2023.

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VALUE ADD SUMMARY BY MARKET

PROJECT LIFE TO DATE AS OF SEPTEMBER 30, 2023

									Renovation Costs per Unit (b)
Market	Total Properties	Total Units To Be Renovated	Units Complete	Units Leased	Rent Premium (a)		% Rent Increase		Interior		Exterior		Total		ROI - Interior Costs(c)		ROI - Total Costs (d)
Ongoing
Memphis, TN	1	362	265	271	$	373	34.1	%	$	15,281	$	807	$	16,088	29.3	%	27.8	%
Indianapolis, IN	1	236	167	168	254		23.4	%	15,451		805		16,256		19.7	%	18.7	%
Raleigh-Durham, NC	1	318	213	214	192		15.2	%	15,648		1,046		16,694		14.7	%	13.8	%
Tampa-St. Petersburg, FL	2	612	315	325	362		24.7	%	15,922		943		16,865		27.2	%	25.7	%
Atlanta, GA (e)	5	2,180	1,220	1,238	238		19.2	%	14,839		1,235		16,074		19.3	%	17.8	%
Austin, TX	1	256	139	135	219		14.7	%	17,466		1,104		18,570		15.0	%	14.1	%
Oklahoma City, OK	3	793	386	386	137		15.9	%	17,180		1,025		18,205		9.6	%	9.0	%
Columbus, OH	3	786	300	295	270		21.8	%	14,045		880		14,925		23.1	%	21.7	%
Dallas, TX	4	1,199	400	394	279		19.4	%	18,905		1,879		20,784		17.7	%	16.1	%
Nashville, TN	1	724	213	203	151		10.7	%	16,199		1,664		17,863		11.2	%	10.1	%
Total / Weighted Average	22	7,466	3,618	3,629	$	248	20.0	%	$15,856		$	1,250	$	17,106	20.0	%	18.7	%
Future (f)
Atlanta, GA	1	180	—	—	—		—		—		—		—		—		—
Oklahoma City, OK	1	294	—	—	—		—		—		—		—		—		—
Total / Weighted Average	2	474	—	—	—		—		—		—		—		—		—
Completed (g)
Wilmington, NC	1	288	288	287	$	72	7.2	%	$	8,076	$	56	$	8,132	10.8	%	10.7	%
Raleigh-Durham, NC	1	328	325	323	184		18.0	%	14,648		2,108		16,756		15.1	%	13.2	%
Louisville, KY	2	728	717	771	212		23.8	%	15,445		2,173		17,618		16.5	%	14.5	%
Memphis, TN	2	691	638	639	189		18.7	%	11,659		974		12,633		19.5	%	18.0	%
Atlanta, GA	1	494	455	454	176		17.5	%	9,122		1,773		10,895		23.1	%	19.3	%
Columbus, OH	3	763	690	685	204		22.5	%	10,142		666		10,808		24.1	%	22.7	%
Tampa-St. Petersburg, FL	2	624	554	553	226		19.2	%	13,220		1,482		14,702		20.5	%	18.4	%
Total / Weighted Average	12	3,916	3,667	3,712	$	191	19.5	%	$	12,018	$	1,346	$	13,364	19.2	%	17.2	%
Grand Total/Weighted Average	36	11,856	7,285	7,341	$	213	19.7	%	$	13,927	$	1,262	$	15,189	19.5	%	17.9	%

(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)During the three months ended September 30, 2023, we paused renovations at one property comprised of 496 units in Atlanta, Georgia given current market conditions.

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

(g)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.

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

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INVESTMENT AND DEVELOPMENT ACTIVITY

Dollars in thousands except per unit amounts

2023 DISPOSITIONS

Property	Location	Units	Disposition Date	Sale Price		Price per Unit		Average Rent Per Unit at Disposition		Gain on Sale of Real Estate, Net
Eagle Lake Landing	Indianapolis, IN	277	February 28, 2023	$	37,300	$	135	$	1,184	$	985

ASSETS HELD FOR SALE AS OF SEPTEMBER 30, 2023

Property	Location	Units
The Meadows at River Run	Chicago, Illinois	374

REAL ESTATE UNDER DEVELOPMENT

Development	Destination at Arista (a)	Flatirons Apartments
Location	Denver, Colorado	Denver, Colorado
Planned Units	325	296
Start Date	3Q 2021	4Q 2022
Projected Initial Occupancy	2Q 2023	4Q 2024
Projected Completion Date	4Q 2023	4Q 2024
Projected Stabilization date	1Q 2025	1Q 2026
Total Estimated Development Costs	$102,800	$119,800
Total Development Costs through September 30, 2023	$107,143	$53,924
% of Development Costs Left to Fund	2%	56%
Real Estate Under Development at September 30, 2023	$29,623	$53,924
% of Planned Units Delivered as of October 27, 2023	73.5%	N/A
Leased % as of October 27, 2023 (b)	38.9%	N/A
Occupancy % as of October 27, 2023 (b)	38.1%	N/A

(a)During the nine months ended September 30, 2023, we obtained certificates of occupancy for three of the four residential buildings containing 239 units and certain common area buildings resulting in $77,520 being reclassified from real estate under development to real estate held for investment.

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

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES (a)

Property	Location	Units	Estimated Delivery Date	Total Construction Budget		Total Project Debt		IRT Equity Interest in JV		Remaining Expected IRT Investment		Carrying Value of IRT’s Investment
Metropolis at Innsbrook (b)	Richmond, VA	402	—	$	85,883	$	64,000	84.8	%	$	—	$	17,576
Views of Music City II /   The Crockett (c)	Nashville, TN	408	Q3 2023	66,079		43,275		50.0	%	—		11,632
Lakeline Station	Austin, TX	378	Q3 2024	109,524		76,500		90.0	%	—		31,585
The Mustang	Dallas, TX	275	Q4 2024	109,583		79,447		85.0	%	—		26,799
Total		1,463		$	371,069	$	263,222			$	—	$	87,592

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

(b)Operations commenced during Q2 2023 with 172 units placed in service. The remaining 230 units were placed in service during Q3 2023.

(c)Views of Music City phase II had 121 units placed in service during Q3 2023 and became an operating property consisting of 209 total units as of October 2, 2023. The Crockett is an operating property consisting of 199 units delivered in Q1 2023. We have one year from their respective delivery dates to exercise our purchase options on The Crockett and Views of Music City phase II.

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DEBT SUMMARY AS OF SEPTEMBER 30, 2023

Dollars in thousands

	Amount		Weighted Average Rate (d)		Type	Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)	$	241,479	6.6	%	Floating	2.3
Unsecured term loans (b)	600,000		6.5	%	Floating	3.8
Secured credit facilities (c)	617,114		4.3	%	Floating/Fixed	5.2
Mortgages	1,218,462		4.0	%	Fixed	4.4
Total Principal	2,677,055		4.9	%		4.3
Loan premiums (discounts), net	50,772
Unamortized deferred financing costs	(12,117)
Total Consolidated Debt	2,715,710
Market Equity Capitalization, at period end	3,245,135
Total Capitalization	$	5,960,845

(a)Unsecured revolver total capacity is $500,000, of which $241,478 was drawn as of September 30, 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 September 30, 2023, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization, discount accretion, and interest capitalization was 4.2%.

(e)As of September 30, 2023, we maintained the below hedges that have effectively fixed a portion of our floating rates debt.

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

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DEBT MATURITY, DEBT COVENANT AND UNENCUMBERED ASSET STATS

AS OF SEPTEMBER 30, 2023

Dollars in thousands

(a)Debt maturity schedule reflects actual as of September 30, 2023 and proforma maturities upon completion of our Portfolio Optimization and Deleveraging Strategy.

Debt Covenant Summary (b)

	Requirement	Actual	Compliance
Consolidated leverage ratio	≤ 60%	36.3%	Yes
Consolidated fixed charge coverage ratio	≥ 1.5x	2.68x	Yes
Unsecured leverage ratio	≤ 60%	26.4%	Yes

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

Encumbered & Unencumbered Statistics (c)

	Total Units	% of Total		Gross Assets		% of Total		Q3 2023 NOI		% of Total
Unencumbered assets	18,164	51.3	%	$	3,537,086	49.0	%	$	53,775	51.2	%
Encumbered assets	17,263	48.7	%	3,688,361		51.0	%	51,168		48.8	%
	35,427	100.0	%	$	7,225,447	100.0	%	$	104,943	100.0	%

(c)Upon completion of our Portfolio Optimization and Deleveraging Strategy, we expect unencumbered assets to represent approximately 54.8% of our total units, 52.8% of our gross assets, and 54.9% of our total NOI.

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DEFINITIONS

Average Effective Monthly Rent per Unit

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

Average Occupancy

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

Development Property

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

EBITDA and Adjusted EBITDA

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

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

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

26

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
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Total debt	$	2,715,710	$	2,650,805	$	2,628,632	$	2,631,645	$	2,713,625
Less: cash and cash equivalents	(17,216)		(14,349)		(12,448)		(16,084)		(23,753)
Less: loan discounts and premiums, net	(50,772)		(53,520)		(56,256)		(59,937)		(63,340)
Total net debt	$	2,647,722	$	2,582,936	$	2,559,928	$	2,555,624	$	2,626,532

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.

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

	For the Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Net income	$	3,986	$	10,988	$	8,872	$	34,524	$	16,653
Other revenue	(232)		(354)		(239)		(306)		(300)
Property management expenses	7,232		6,818		6,371		6,593		5,744
General and administrative      expenses	3,660		5,910		8,154		5,739		5,625
Depreciation and amortization     expense	55,546		53,984		53,536		52,161		49,722
Casualty losses (gains), net	35		680		151		(1,690)		(191)
Interest expense	22,033		22,227		22,124		23,337		22,093
Loss on impairment (gain on sale)     of real estate assets, net	11,268		—		(985)		(17,044)		—
Other loss (income), net	369		72		(93)		(57)		(765)
Loss (gain) from investments in      unconsolidated real estate entities	1,178		1,205		776		(242)		1,477
Merger and integration costs	—		—		—		2,028		275
Restructuring costs	—		—		3,213		—		—
NOI	$	105,075	$	101,530	$	101,880	$	105,043	$	100,333
Less: Non same-store portfolio NOI	4,063		3,400		3,804		4,866		3,937
Same-store portfolio NOI	$	101,012	$	98,130	$	98,076	$	100,177	$	96,396

Non Same-Store Properties and Non Same-Store Portfolio

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

Same-Store Properties and Same-Store Portfolio

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

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, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
Total assets	$	6,577,790	$	6,517,400	$	6,493,747	$	6,532,095	$	6,633,533
Plus: accumulated depreciation (a)	570,966		523,446		475,001		426,097		386,606
Plus: accumulated amortization	76,691		76,558		76,558		76,710		77,141
Total gross assets	$	7,225,447	$	7,117,404	$	7,045,306	$	7,034,902	$	7,097,280

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

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XML

Cover	Oct. 26, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 26, 2023
Entity Registrant Name	Independence Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-36041
Entity Tax Identification Number	26-4567130
Entity Address, Address Line One	1835 Market Street
Entity Address, Address Line Two	Suite 2601
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	267
Local Phone Number	270-4800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	IRT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001466085