IRT Earnings Prediction
The chart below shows how IRT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IRT sees a +0.80% change in stock price 10 days leading up to the earnings, and a +5.23% change 10 days following the report. On the earnings day itself, the stock moves by -0.23%. This data can give you a slight idea of what to expect for the next quarter's release.
IRT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
160.13M
-5.02%
1.09%
Gross Margin
57.32%
-0.98%
1.06%
Operating Margin
20.10%
-12.80%
8.01%
Net Margin
7.88%
233.90%
18.32%
EPS
0.05
150.00%
0.00%
No Data Available
IRT Earnings Analysis
Independence Realty Trust Inc. Corporation (IRT.N) Earnings Conference Call
Positive
Same-Store NOI Increase: 1. Same-Store NOI Growth: Independence Realty Trust reported a same-store NOI growth of 2.2% in Q3 2024, driven by a revenue growth of 2.5%.
Occupancy Rate Improvement: 2. Increased Average Occupancy: The average occupancy rate improved to 95.4%, a 90 basis point increase compared to Q3 2023, reflecting effective resident retention strategies.
Renovation Impact on Revenue: 3. Successful Renovation Strategy: The company completed renovations on 578 units in Q3, achieving a weighted average return on investment of 14.9%, contributing to an increase in average monthly rent per unit by $242.
Investment-Grade Rating Benefits: 4. Investment-Grade Rating: IRT received a BBB flat investment-grade rating from S&P Global Ratings, enhancing its cost of capital and access to additional capital sources for growth.
Liquidity Strength: 5. Strong Liquidity Position: As of September 30, 2024, IRT maintained a robust liquidity position of $722 million, which includes $18 million in unrestricted cash and $308 million available on its line of credit.
Negative
Declining Lease Rates: 1. Declining New Lease Rates: New lease rates decreased by 3.6% in Q3 2024, contributing to a blended rental rate growth of only 0.8%.
Rising Operating Expenses: 2. Increased Operating Expenses: Same-store operating expenses rose by 2.8% in Q3 2024, primarily due to higher personnel costs and inflationary pressures on repairs and maintenance.
Reduced Revenue Growth Guidance: 3. Lower Revenue Growth Guidance: The full year same-store revenue growth guidance was reduced to between 3% and 3.2%, reflecting lower blended rental rate growth experienced year-to-date.
Core FFO Decrease: 4. Core FFO Decline: Core FFO of $66.8 million and $0.29 per share were both below the previous year, attributed to asset sales as part of a portfolio optimization strategy.
High Leverage Concerns: 5. High Net Debt to EBITDA Ratio: Despite a reduction to 6.3x, the net debt to adjusted EBITDA ratio remains high, indicating ongoing leverage concerns.
IRT FAQs
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IRT Earning Call Sentiment
Independence Realty Trust, Inc. (IRT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
IRT.N
-1.69%Positive
The earnings call presented mixed signals: strong occupancy and a stable financial position, but pressures from new supply and inflation. Although net income improved significantly, core FFO slightly decreased. The Q&A revealed cautious optimism, with management focusing on stable assets and acknowledging potential challenges. Despite positive acquisition plans and a strong liquidity position, the market's reaction may be tempered by the modest rental growth and inflationary pressures. Given the market cap, the stock is likely to remain stable, with a neutral price movement expected in the short term.
