Independence Realty Trust Completes Sale of Four Properties, Advancing Portfolio Optimization and Deleveraging Strategy
03 Janvier 2024 - 2:00PM
Business Wire
Independence Realty Trust, Inc. (NYSE: IRT) (“IRT”) announced
today the sale of four properties in four markets, as part of the
Company’s Portfolio Optimization and Deleveraging Strategy. The
total gross sales price of the four properties was $200.7 million,
with each property sale closing in December 2023.
As a result of these sales, IRT repaid $196.8 million of debt,
comprised of $112.3 million of property level debt associated with
the sold properties and $84.5 million of borrowings outstanding on
its line of credit.
“We are successfully executing our Portfolio Optimization and
Deleveraging Strategy, which we announced in October 2023. These
recent non-core asset sales highlight our effort to exit or reduce
our presence in certain markets while also deleveraging our balance
sheet over the near term,” said Scott Schaeffer, Chairman and CEO
of IRT. “These initiatives will continue to increase our financial
flexibility, reduce our leverage and keep us on-track towards
achieving an investment grade rating.”
Five of the six remaining assets that are part of the Portfolio
Optimization and Deleveraging Strategy are currently under contract
and are expected to close in the first quarter of 2024. Once the
sale of all ten properties are complete, IRT expects to generate
gross sales proceeds of approximately $521 to $533 million, as
previously disclosed, with proceeds used to delever the balance
sheet. This will result in IRT exiting five single-asset markets
and lowering its net debt to adjusted EBITDA ratio by 0.8x to 0.9x,
providing a clear path to reach its target of mid-5x’s by year-end
2024.
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 with
attractive risk-adjusted returns through diligent portfolio
management, strong operational performance, and a consistent return
on capital through distributions and capital appreciation. More
information may be found on the Company’s website
www.irtliving.com.
Forward-Looking Statements This release contains
certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements 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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version on businesswire.com: https://www.businesswire.com/news/home/20240102141596/en/
Independence Realty Trust, Inc. Edelman Smithfield Lauren
Torres 917-365-7979 IRT@edelman.com
Independence Realty (NYSE:IRT)
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