Independence Realty Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income available to common shares was $25.1 million for the quarter ended September 30, 2026, compared to $6.9 million for the same period in 2025.
• Earnings per diluted share (EPS) were $0.11 for the quarter ended September 30, 2026, compared to $0.03 for the quarter ended September 30, 2025.
• Core Funds From Operations (CFFO) was $70.7 million for the quarter ended September 30, 2026, compared to $70.0 million for the quarter ended September 30, 2025.
• CFFO per share was $0.29 for the third quarter of 2026, matching the $0.29 per share reported for the third quarter of 2025.
• Same-store portfolio Net Operating Income (NOI) grew 1.6% for the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025.
• Adjusted EBITDA was $95.1 million for the quarter ended September 30, 2026, compared to $92.6 million for the quarter ended September 30, 2025.
• Rental and other property revenue increased 2.0% year-over-year for the quarter, while property operating expenses increased 2.5%.
• Net debt to Adjusted EBITDA was 6.2x as of September 30, 2026.
• Weighted average effective interest rate on consolidated debt was 4.3% with a weighted average maturity of 2.7 years as of September 30, 2026; 86.5% of debt was fixed or hedged.
• Liquidity totaled approximately $491.6 million as of September 30, 2026, comprising unrestricted cash and revolver capacity.

Guidance and Future Outlook:

• Reaffirmed mid-points of full year 2026 guidance for Same-Store Revenues, Same-Store NOI, and Core FFO per share.
• Updated 2026 EPS guidance midpoint to $0.18 (range $0.18–$0.20) from a previous midpoint of $0.25 (range $0.22–$0.27).
• Updated 2026 FFO per share guidance midpoint to $1.13 (range $1.13–$1.15) from a previous midpoint of $1.17 (range $1.16–$1.18).
• Updated 2026 CFFO per share guidance midpoint to $1.13 (range $1.13–$1.15), unchanged from the previous range.
• Updated 2026 Same-Store NOI growth guidance to 1.2% to 1.8%, up from a previous range of 1.0% to 2.0%.
• Updated 2026 Property revenue growth guidance to 1.6% to 1.8%, up from a previous range of 1.5% to 1.9%.
• Updated 2026 Controllable operating expense growth guidance to 3.4% to 3.8%, up from a previous range of 3.3% to 3.7%.
• Updated 2026 Acquisition volume guidance to $266 million, up from a previous $145 million.
• Updated 2026 Recurring Capital Expenditures guidance to $31–$33 million, up from a previous range of $30–$32 million.
• Updated 2026 Non-recurring and revenue enhancing Capital Expenditures guidance to $31–$33 million, down from a previous range of $33–$35 million.
• Management expects the merger with Centerspace to close as early as the end of the fourth quarter of 2026, with no significant impact expected on full year 2026 guidance.
• Management anticipates stronger growth in 2027 as concessions burn off, the Wi-Fi program ramps, and supply-demand fundamentals improve.

Business Segments and Product Lines:

• Completed 744 Value Add Program renovations during the quarter ended September 30, 2026, achieving a weighted average return on investment (ROI) of 14.2%.
• Completed 1,770 Value Add Program renovations year-to-date, achieving a weighted average ROI of 15%.
• Average cost per unit renovated for the nine months ended September 30, 2026, was $20,687.
• Average monthly rent increase per unit for the nine months ended September 30, 2026, was $257 over unrenovated comparable units.
• Same-store portfolio consists of 109 properties containing 31,735 units.
• Total portfolio occupancy was 94.9% at period end, with average occupancy of 94.8% for the quarter.
• Same-store portfolio average occupancy was 95.0% for the quarter, with resident retention at 60.5%.
• Blended rent growth for new lease trade-outs improved 310 basis points year-over-year to 2.8%.
• Like-term lease effective rental rate growth for new leases was (0.6)% for the quarter, compared to (3.7)% in the prior year quarter.
• Like-term lease effective rental rate growth for renewal leases was 4.6% for the quarter, compared to 2.6% in the prior year quarter.
• Capital expenditures for the quarter included $10.2 million in recurring CapEx ($304 per unit), $17.7 million in Value Add Program expenditures, $11.0 million in non-recurring expenditures, and $0.1 million in development expenditures.

Market and Competitive Landscape:

• IRT operates as a multifamily apartment REIT focused on high-growth, non-gateway markets.
• The company is merging with Centerspace to create an $8 billion enterprise value REIT with approximately 44,400 units across 17 states.
• The merger is expected to generate $26 million in annual synergies and be 5% accretive to CFFO.
• Under the merger agreement, Centerspace shareholders will receive 3.800 shares of IRT common stock for each Centerspace common share.
• Upon closing, legacy IRT stockholders will own approximately 78% of the combined entity, while legacy Centerspace shareholders will own approximately 22%.
• The merger vote is scheduled for November 10, 2026.

Risks and Challenges:

• Risks include the ability to complete the Proposed Transaction on proposed terms or timeline, including securing stockholder approvals.
• Potential for integration problems, delays, or failure to realize anticipated benefits from the merger.
• Risks related to market demand, pricing pressures, and competition affecting occupancy and rent levels.
• Uncertainty in capital and credit markets, including changes that reduce availability or increase costs of capital.
• Risks associated with inflation, energy costs, and rising unemployment rates.
• Potential for asset sales to be delayed or sold at pricing levels different from expectations.
• Risks related to Value Add programs, including cost overruns or failure to achieve anticipated rent increases and occupancy levels.
• Risks from natural disasters, infectious disease outbreaks, geopolitical conflicts, and cybersecurity incidents.

Management Commentary and Tone:

• Scott Schaeffer, Chairman and CEO, stated the company is "pleased with our solid third quarter results."
• Management noted that leasing momentum continued to build during the quarter.
• Management believes IRT is "well positioned for stronger growth in 2027."
• Management is making "meaningful progress on integration planning" for the pending merger with Centerspace.
• Management highlighted that average occupancy held steady at 95.0% and resident retention remained healthy at 60.5%.

Other Key Points:

• Sold Stonebridge Crossing in Memphis, Tennessee, on September 10, 2026, for a gross sales price of $55.8 million, resulting in a gain on sale of approximately $26.5 million.
• Acquired the joint venture partner's 15% membership interest in The Mustang property in Dallas, Texas, on October 1, 2026, assuming full operational control and 100% equity ownership.
• The Board declared a quarterly dividend of $0.18 per share on September 8, 2026, paid on October 23, 2026.
• Merger and integration costs incurred through September 30, 2026, totaled $6.2 million.
• Additional merger and integration costs, including severance and debt prepayment penalties, are expected in Q4 2026.
• One property is classified as held for sale as of September 30, 2026.
• The Proposed Transaction is expected to close as early as the end of the fourth quarter of 2026, subject to shareholder approval.