Independence Realty Trust Announces Third Quarter 2026 Financial Results

PHILADELPHIA--(BUSINESS WIRE)--Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, announces its third quarter 2026 financial results.

Third Quarter 2026 EPS of $0.11 and CFFO Per Share of $0.29

Same-Store Portfolio NOI Growth of 1.6% for the Third Quarter 2026
Increases of 2.0% in Rental Revenues and 2.5% in Property Operating Expenses
Leasing Spreads Accelerated in Improved Operating Environment

Completed 1,770 Value Add Program Renovations Year-to-Date
Achieved Average ROI of 15%

Announced Acquisition of Centerspace Creating an $8 billion Enterprise Value Apartment REIT with Approximately 44,400 Units

Reaffirmed Mid-points of Full Year 2026 Guidance for Same-Store Revenues, Same-Store NOI and Core FFO per Share

Management Commentary

"We are pleased with our solid third quarter results, with same-store NOI growth of 1.6% and Core FFO per share of $0.29,” said Scott Schaeffer, Chairman and Chief Executive Officer. “Leasing momentum continued to build during the quarter. New lease trade-outs improved 310 basis points year over year, driving blended rent growth of 2.8%, while average occupancy held steady at 95.0% and resident retention remained healthy at 60.5%. We believe IRT is well positioned for stronger growth in 2027 as concessions burn off, our Wi-Fi program continues to ramp, and supply-demand fundamentals improve. We are also making meaningful progress on integration planning for our pending merger with Centerspace, which we believe will only build on our strength."

Third Quarter Summary

• On September 9, 2026, IRT announced that it reached a definitive agreement to merge with Centerspace, which is expected to create an $8 billion multifamily REIT focused on high growth, non-gateway markets, with 163 apartment communities and approximately 44,400 units across 17 states. Under the terms of the merger agreement, Centerspace shareholders will receive 3.800 shares of IRT common stock for each Centerspace common share. The Proposed Transaction is expected to close as early as the end of the fourth quarter of 2026, subject to approval by IRT stockholders and Centerspace shareholders on November 10, 2026, and other customary closing conditions. Upon closing, legacy IRT stockholders and holders of common units of Independence Realty Operating Partnership, LP (“IROP”) will own approximately 78% of the issued and outstanding shares of IRT common stock and IROP common units, and legacy Centerspace shareholders and holders of Centerspace, LP common units will own approximately 22% of the issued and outstanding shares of IRT common stock and IROP common units. Based on $24 million in annual synergies we expect to realize, the Proposed Transaction should be 5% accretive to CFFO.
• Net income available to common shares of $25.1 million for the quarter ended September 30, 2026 compared to $6.9 million for the quarter ended September 30, 2025. Earnings per diluted share (“EPS”) of $0.11 for the quarter ended September 30, 2026 compared to $0.03 for the quarter ended September 30, 2025.
• CFFO of $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 and for the third quarter of 2025.
• Same-store portfolio NOI growth of 1.6% for the quarter ended September 30, 2026 compared to the quarter ended September 30, 2025.
• Adjusted EBITDA of $95.1 million for the quarter ended September 30, 2026 compared to $92.6 million for the quarter ended September 30, 2025.
• Value Add Program completed renovations of 744 units during the quarter ended September 30, 2026, 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 used herein and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP, as well as discussion of our same-store methodology.

Same-Store Portfolio⁽¹⁾ Operating Results

Value Add Program

We completed renovations of 744 units during the three months ended September 30, 2026, achieving a weighted average return on investment of 14.2% with an average cost per unit renovated of $20,597, and an average monthly rent increase per unit of $244 over unrenovated comparable units. We completed renovations of 1,770 units during the nine months ended September 30, 2026, achieving a weighted average return on investment of 14.9% with an average cost per unit renovated of $20,687, and an average monthly rent increase per unit of $257 over unrenovated comparable units. See the Value Add Summary page of our supplemental information for additional information on our projects' life to date as of September 30, 2026.

Investment Activity

Dispositions

• Stonebridge Crossing, Memphis, Tennessee: On September 10, 2026, we sold this property for a gross sales price of $55.8 million, resulting in a gain on sale of approximately $26.5 million.

Joint Ventures

• The Mustang, Dallas, Texas: Subsequent to quarter-end, on October 1, 2026, we acquired our joint venture partner's 15% membership interest and assumed full operational control and 100% equity ownership of The Mustang property. The property underlying this joint venture is a 275-unit operating community in Dallas, Texas, that was 94% occupied with average effective monthly rent per occupied unit of $3,071 as of September 30, 2026, and will be consolidated into our financial results effective October 1, 2026.

Capital Expenditures

Across our total portfolio for the three months ended September 30, 2026, recurring capital expenditures were $10.2 million, or $304 per unit; Value Add Program expenditures were $17.7 million; non-recurring expenditures were $11.0 million; and development expenditures were $0.1 million, respectively. For nine months ended September 30, 2026, recurring capital expenditures were $28.6 million, or $859 per unit; Value Add Program expenditures were $39.8 million; non-recurring expenditures were $29.4 million; and development expenditures were $0.3 million, respectively.

Balance Sheet and Liquidity

At September 30, 2026, our net debt to Adjusted EBITDA was 6.2x. As of the same date and including the effect of hedges, our weighted average effective interest rate on our consolidated debt was 4.3% with a weighted average maturity of 2.7 years, and 86.5% of our debt was either subject to fixed interest rates or was hedged. Also as of September 30, 2026, we had approximately $491.6 million in liquidity through a combination of unrestricted cash and cash equivalents, and capacity under our unsecured revolver.

Dividend Distribution

On September 8, 2026, our Board of Directors declared a quarterly dividend of $0.18 per share of common stock. The third quarter dividend was paid on October 23, 2026 to stockholders of record at the close of business on September 30, 2026.

2026 EPS, FFO and CFFO Guidance

We updated our previously issued 2026 EPS, FFO, and CFFO per share guidance as summarized below. Other than merger and integration costs incurred through September 30, 2026, our guidance does not give effect to the Proposed Transaction with Centerspace. We expect the Proposed Transaction with Centerspace to close as early as the end of the fourth quarter of 2026 and, therefore, the impact to our full year 2026 guidance is not expected to be significant. A reconciliation of our projected EPS to our projected FFO and CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how we calculate CFFO and for management’s definition and rationale for the usefulness of CFFO.

2026 Guidance Assumptions⁽¹⁾

Our key guidance assumptions for 2026 are enumerated below. Other than merger and integration costs incurred through September 30, 2026, our guidance does not give effect to the Proposed Transaction with Centerspace, additional merger-related transaction expenses. We expect the Proposed Transaction with Centerspace to close as early as the end of the fourth quarter of 2026 and, therefore, the impact to our full year 2026 guidance is not expected to be significant. See the definitions at the end of this release for further information regarding our same-store definitions.

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, November 3, 2026 from the Investors section of IRT's website, https://investors.irtliving.com. For those who are not available to listen to the live call, the replay will be available shortly afterward on following the live call from the Investors section of IRT’s website until the next earnings release.

Supplemental Information

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

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT), an S&P 400 MidCap Company, is a real estate investment trust (“REIT”) that owns and operates multifamily communities across non-gateway U.S. markets. 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’s main investment objective is to provide attractive risk-adjusted returns to shareholders through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website, www.irtliving.com.

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, statements regarding the Proposed Transaction (as defined below) with Centerspace (as defined below), including the expected timing of closing of the Proposed Transaction, the anticipated synergies, accretion and other benefits of the Proposed Transaction and the expected ownership of the combined company, our expectations with respect to the timing and terms of sales, if any, with respect to the one property which is classified as held for sale as of September 30, 2026, our expectations with respect to projects scheduled to start in 2027 and our expectations with respect to future acquisitions and dispositions. 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 IRT’s and Centerspace’s ability to complete the Proposed Transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary stockholder approvals and satisfaction of other closing conditions to consummate the transaction, the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Centerspace and IRT, delays in completing the Proposed Transaction involving Centerspace and IRT, the possibility that the anticipated benefits of the Proposed Transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Centerspace and IRT do business, the possibility that the Proposed Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the ability of Centerspace and IRT to meet expectations regarding the timing, completion and accounting and tax treatment of the Proposed Transaction, potential adverse reactions or changes to business, customer or employee relationships, including those resulting from the announcement or completion of the Proposed Transaction, the ability to complete the Proposed Transaction and integration of Centerspace and IRT successfully, the dilution caused by IRT’s issuance of additional shares of its capital stock in connection with the Proposed Transaction, 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, delays in the completion of, and failure to achieve anticipated benefits of, our projects with our joint venture partners, 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, inability or failure to achieve anticipated benefits from future acquisitions and dispositions, delays in completing, and cost overruns incurred in connection with, our Value Add programs and failure to achieve rent increases and occupancy levels on account of the Value Add programs, unexpected impairments or impairments in excess of our estimates, new and/or increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees 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, deteriorating economic conditions and rising unemployment rates, energy costs, and inflation, in the markets where we own apartment communities or in which we may invest in the future, uncertain global macro-economic and political conditions, the impact of actual or threatened wars or other international conflicts, such as in Ukraine, the Middle East, and South America, including sanctions imposed by the U.S. and other countries, on inflation, trade, and general economic conditions, 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, including but not limited to a third party's unauthorized access to our data or the data of our residents, 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, 2025, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, and the Definitive Joint Proxy Statement/Prospectus (as defined below), 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.

Important Additional Information about the Proposed Transaction and Where to Find It

In connection with the proposed merger (the “Proposed Transaction”) of Centerspace (NYSE:CSR) (“Centerspace”) and IRT, IRT filed with the SEC a registration statement on Form S-4 (File No. 333-299102) on September 24, 2026, as amended (the “Registration Statement”) which includes the joint proxy statement of Centerspace and IRT that also constitutes a prospectus of IRT. The Registration Statement was declared effective on October 7, 2026, and each of Centerspace and IRT commenced mailing of the definitive joint proxy statement of Centerspace and IRT that also constitutes a prospectus of IRT (the “Definitive Joint Proxy Statement/Prospectus”) to their respective shareholders or stockholders, as applicable, on or about October 7, 2026.

IRT Investor Relations:
Stephanie Krewson-Kelly
267.270.4815
SKrewson@IRTLiving.com