Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number 001-36041

______________________________________________________

INDEPENDENCE REALTY TRUST, INC.


(Exact Name of Registrant as Specified in Its Charter)


Maryland			26-4567130
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

1835 Market Street, Suite 2601 Philadelphia, PA			19103
(Address of Principal Executive Offices)			(Zip Code)

(267) 270-4800

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

_________________________________________________________________________________________________

Securities registered pursuant to section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

IRT

NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer

Accelerated filer

Non-Accelerated filer

Smaller reporting company

Emerging growth company

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of July 26, 2024 there were 225,120,618 shares of the Registrant’s common stock issued and outstanding.

Table of Contents

INDEPENDENCE REALTY TRUST, INC.

INDEX


		Page

PART I—FINANCIAL INFORMATION		3

Item 1.	Financial Statements (unaudited)	3

	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3

	Condensed Consolidated Statements of Operations for the Three and Six Months ended June 3 0 , 2024 and June 3 0 , 2023	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months ended June 30, 2024 and June 30, 2023	5

	Condensed Consolidated Statements of Changes in Equity for the Three and Six Months ended June 30, 2024 and June 30, 2023	6

	Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2024 and June 30, 2023	8

	Notes to Condensed Consolidated Financial Statements as of June 30, 2024	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37

Item 4.	Controls and Procedures	37

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	38

Item 1A.	Risk Factors	38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38

Item 3.	Defaults Upon Senior Securities	38

Item 4.	Mine Safety Disclosures	39

Item 5.	Other Information	39

Item 6.	Exhibits	39

Signatures		40

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Independence Realty Trust, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited and dollars in thousands, except share and per share data)


	As of June 30, 2024		As of December 31, 2023
ASSETS:
Investments in real estate:
Investments in real estate, at cost	$	6,218,019	$	6,259,212
Accumulated depreciation	(667,681)		(582,760)
Investments in real estate, net	5,550,338		5,676,452
Real estate held for sale	69,829		296,334
Investments in real estate under development	115,196		98,365
Cash and cash equivalents	21,034		22,852
Restricted cash	26,364		27,880
Investments in unconsolidated real estate entities	90,347		89,044
Other assets	28,731		39,245
Derivative assets	38,422		29,937
Intangible assets, net of accumulated amortization of $0 and $332, respectively	—		66
Total Assets	$	5,940,261	$	6,280,175
LIABILITIES AND EQUITY:
Indebtedness, net	$	2,202,961	$	2,426,788
Indebtedness associated with real estate held for sale	49,598		122,621
Accounts payable and accrued expenses	102,040		109,074
Accrued interest payable	6,795		7,917
Dividends payable	36,906		36,858

Other liabilities	8,421		9,723
Total Liabilities	2,406,721		2,712,981
Equity:
Stockholders’ equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively	—		—
Common stock, $0.01 par value; 500,000,000 shares authorized, 225,122,235 and 224,706,731 shares issued and outstanding, including 402,249 and 288,250 unvested restricted common share awards, respectively	2,251		2,247
Additional paid-in capital	3,754,756		3,751,942
Accumulated other comprehensive income	34,380		25,513
Accumulated deficit	(392,627)		(348,405)
Total stockholders’ equity	3,398,760		3,431,297
Noncontrolling interests	134,780		135,897
Total Equity	3,533,540		3,567,194
Total Liabilities and Equity	$	5,940,261	$	6,280,175

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Independence Realty Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited and dollars in thousands, except share and per share data)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
REVENUE:
Rental and other property revenue	$	158,104	$	163,601	$	318,436	$	324,736
Other revenue	298		354		501		594
Total revenue	158,402		163,955		318,937		325,330
EXPENSES:
Property operating expenses	60,883		62,071		120,854		121,327
Property management expenses	7,666		6,818		15,165		13,189
General and administrative expenses	6,244		5,910		14,624		14,063
Depreciation and amortization expense	54,127		53,984		107,850		107,520

Casualty losses	465		680		2,767		831
Total expenses	129,385		129,463		261,260		256,930
Interest expense	(17,460)		(22,227)		(38,063)		(44,351)
(Loss on impairment) gain on sale of real estate assets, net	(152)		—		10,378		985
Gain on extinguishment of debt	—		—		203		—

Other (loss) income, net	—		(72)		(1)		21
Loss from investments in unconsolidated real estate entities	(850)		(1,205)		(1,679)		(1,981)
Restructuring costs	—		—		—		(3,213)
Net income:	10,555		10,988		28,515		19,861
Income allocated to noncontrolling interest	(201)		(279)		(585)		(503)
Net income allocable to common shares	$	10,354	$	10,709	$	27,930	$	19,358
Earnings per share:
Basic	$	0.05	$	0.05	$	0.12	$	0.09
Diluted	$	0.05	$	0.05	$	0.12	$	0.09
Weighted-average shares:
Basic	224,793,229		224,422,515		224,710,259		224,325,246
Diluted	225,418,825		225,073,890		225,403,082		225,088,261

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Independence Realty Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited and dollars in thousands)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	10,555	$	10,988	$	28,515	$	19,861
Other comprehensive income (loss):
Change in fair value of interest rate hedges	5,065		18,834		19,527		11,919
Realized (gains) losses on interest rate hedges reclassified to earnings	(5,189)		(4,749)		(10,428)		(8,126)
Total other comprehensive (loss) income	(124)		14,085		9,099		3,793
Comprehensive income before allocation to noncontrolling interests	10,431		25,073		37,614		23,654
Allocation to noncontrolling interests	(198)		(642)		(817)		(576)
Comprehensive income	$	10,233	$	24,431	$	36,797	$	23,078

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Independence Realty Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Equity

(Unaudited and dollars in thousands, except share and per share data)


	Common Shares	Par Value Common Shares		Additional Paid In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)		Total Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance, December 31, 2023	224,706,731	$	2,247	$	3,751,942	$	25,513	$	(348,405)	$	3,431,297	$	135,897	$	3,567,194
Net income	—	—		—		—		17,577		17,577		384		17,961
Common dividends declared ($0.16 per share)	—	—		—		—		(36,187)		(36,187)		—		(36,187)
Other comprehensive income	—	—		—		8,988		—		8,988		236		9,224
Stock compensation	391,667	4		3,456		—		—		3,460		—		3,460

Repurchase of shares related to equity award tax withholding	(32,930)	—		(1,598)		—		—		(1,598)		—		(1,598)
Conversion of noncontrolling interest to common shares	4,928	—		33		—		—		33		(33)		—

Distribution to noncontrolling interest declared ($0.16 per unit)	—	—		—		—		—		—		(951)		(951)
Balance, March 31, 2024	225,070,396	$	2,251	$	3,753,833	$	34,501	$	(367,015)	$	3,423,570	$	135,533	$	3,559,103
Net income	—	—		—		—		10,354		10,354		201		10,555
Common dividends declared ($0.16 per share)	—	—		—		—		(35,966)		(35,966)		—		(35,966)
Other comprehensive loss	—	—		—		(121)		—		(121)		(3)		(124)
Stock compensation	56,560	—		1,940		—		—		1,940		—		1,940

Repurchase of shares related to equity award tax withholding	(4,721)	—		(945)		—		—		(945)		—		(945)

Issuance of common shares, net	—	—		(72)		—		—		(72)		—		(72)
Distribution to noncontrolling interest declared ($0.16 per unit)	—	—		—		—		—		—		(951)		(951)
Balance, June 30, 2024	225,122,235	$	2,251	$	3,754,756	$	34,380	$	(392,627)	$	3,398,760	$	134,780	$	3,533,540

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Independence Realty Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Equity

(Unaudited and dollars in thousands, except share and per share data)


	Common Shares	Par Value Common Shares		Additional Paid In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Accumulated Deficit)		Total Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance, December 31, 2022	224,064,940	$	2,241	$	3,751,056	$	35,102	$	(191,735)	$	3,596,664	$	141,203	$	3,737,867
Net income	—	—		—		—		8,648		8,648		224		8,872
Common dividends declared ($0.14 per share)	—	—		—		—		(31,688)		(31,688)		—		(31,688)
Other comprehensive loss	—	—		—		(10,001)		—		(10,001)		(289)		(10,290)
Stock compensation	383,439	4		4,774		—		—		4,778		—		4,778

Repurchase of shares related to equity award tax withholding	(36,109)	—		(3,757)		—		—		(3,757)		—		(3,757)
Conversion of noncontrolling interest to common shares	144,600	1		1,014		—		—		1,015		(1,015)		—
Issuance of common shares, net	—	—		(13)		—		—		(13)		—		(13)
Distribution to noncontrolling interest declared ($0.14 per unit)	—	—		—		—		—		—		(834)		(834)
Balance, March 31, 2023	224,556,870	$	2,246	$	3,753,074	$	25,101	$	(214,775)	$	3,565,646	$	139,289	$	3,704,935
Net income	—	—		—		—		10,709		10,709		279		10,988
Common dividends declared ($0.16 per share)	—	—		—		—		(35,906)		(35,906)		—		(35,906)
Other comprehensive income	—	—		—		13,722		—		13,722		363		14,085
Stock compensation	142,206	1		1,784		—		—		1,785		—		1,785

Repurchase of shares related to equity award tax withholding	(1,187)	—		(19)		—		—		(19)		—		(19)


Distribution to noncontrolling interest declared ($0.16 per unit)	—	—		—		—		—		—		(951)		(951)
Balance, June 30, 2023	224,697,889	$	2,247	$	3,754,839	$	38,823	$	(239,972)	$	3,555,937	$	138,980	$	3,694,917

The accompanying notes are an integral part of these condensed consolidated financial statements

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Independence Realty Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited and dollars in thousands)


	For the Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	28,515	$	19,861
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation and amortization	107,850		107,520
Accretion of loan discounts and premiums, net	(4,679)		(5,493)
Amortization of deferred financing costs, net	1,379		1,763
Stock compensation expense	5,250		6,462
Gain on sale of real estate assets, net	(10,378)		(985)
Gain on extinguishment of debt	(203)		—
Amortization related to derivative instruments	614		644
Non-cash casualty losses	1,510		831
Equity in loss from investments in unconsolidated real estate entities	1,679		1,981
Other losses	1		891

Changes in assets and liabilities:
Other assets	5,145		4,186
Accounts payable and accrued expenses	(7,827)		(9,308)
Accrued interest payable	(1,122)		273
Other liabilities	(654)		(1,432)
Cash flow provided by operating activities	127,080		127,194
Cash flows from investing activities:



Investments in unconsolidated real estate entities	(2,982)		(21,729)

Disposition of real estate properties, net	320,606		35,557
Capital expenditures	(55,698)		(67,199)
Real estate development expenditures	(26,884)		(30,588)
Proceeds from insurance claims	3,511		—
Cash flow provided by (used in) investing activities	238,553		(83,959)
Cash flows from financing activities:
Proceeds from unsecured credit facility and term loans	131,000		125,000
Unsecured credit facility, secured credit facility and term loan repayments	(262,652)		(97,513)
Mortgage principal repayments and payoffs	(159,675)		(3,666)
Costs associated with debt payoffs	(663)		—
Payments for deferred financing costs	(357)		(60)
Distributions on common stock	(72,104)		(63,026)
Distributions to noncontrolling interests	(1,901)		(1,686)
Repurchase of shares related to equity award tax withholding	(2,543)		(3,776)
Costs from issuance of common stock, net	(72)		(13)

Cash flow used in financing activities	(368,967)		(44,740)
Net change in cash and cash equivalents, and restricted cash	(3,334)		(1,505)
Cash and cash equivalents, and restricted cash, beginning of period	50,732		44,017
Cash and cash equivalents, and restricted cash, end of the period	$	47,398	$	42,512

Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets
Cash and cash equivalents	$	21,034	$	14,349
Restricted cash	26,364		28,163
Total cash, cash equivalents, and restricted cash, end of period	$	47,398	$	42,512

The accompanying notes are an integral part of these condensed consolidated financial statements

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

NOTE 1: Organization

Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland real estate investment trust (“REIT”) which was formed on March 26, 2009. We are primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets. As of June 30, 2024, we owned and operated 110 (unaudited) multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 32,685 (unaudited) units across non-gateway U.S. markets, including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Nashville, Oklahoma City, Raleigh-Durham, and Tampa. In addition, as of June 30, 2024, we owned two investments in real estate under development in Denver, Colorado that will, upon completion, contain an aggregate of 621 (unaudited) units. As of June 30, 2024, we also owned interests in four unconsolidated joint ventures, two of which own and operate multifamily apartment communities that contain an aggregate of 810 (unaudited) units and two of which are developing multifamily apartment properties that will, upon completion, contain an aggregate of 653 (unaudited) units. We own all of our assets and conduct substantially all of our operations through Independence Realty Operating Partnership, LP, a Delaware limited partnership (“IROP”), of which we are the sole general partner.

As used herein, the terms “we,” “our,” and “us” refer to IRT and, as required by context, IROP and its subsidiaries.

NOTE 2: Summary of Significant Accounting Policies

a. Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our condensed consolidated financial position and condensed consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those described in the footnotes.

b. Principles of Consolidation

The condensed consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP.

c. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

d. Cash and Cash Equivalents

Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents.

e. Restricted Cash

Restricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of June 30, 2024 and December 31, 2023, we had $26,364 and $27,880, respectively, of restricted cash.

f. Investments in Real Estate

Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred.

Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, necessary approvals are obtained, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn.

Allocation of Purchase Price of Acquired Assets

In accordance with FASB ASC Topic 805 (“ASC 805”), we evaluate our real estate acquisitions to determine if they should be accounted for as a business or as a group of assets. The evaluation includes an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the acquisition is not a business. The properties we have acquired met the screen test and are accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing.

We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date.

The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to these intangible assets is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2024 and 2023, we did not acquire any in-place leases. For each of the three and six months ended June 30, 2024, we recorded $0, and $66, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2023, we recorded $0 and $399, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2024, we wrote-off fully amortized intangible assets of $0 and $398, respectively. For the three and six months ended June 30, 2023, we wrote-off fully amortized intangible assets of $0 and $1,099, respectively.

Business Combinations

For properties we acquire or transactions we enter into that are accounted for as business combinations, we apply the acquisition method of accounting under ASC 805, which requires the identification of the acquiror, the determination of the acquisition date, and the recognition and measurement, at fair value, of the assets acquired and liabilities assumed. To the extent that the fair value of net assets acquired differs from the fair value of consideration paid, ASC 805 requires the recognition of goodwill or a gain from a bargain purchase price, if any.

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

Impairment of Long-Lived Assets

Management evaluates the recoverability of our investments in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured.

We review our long-lived assets on an ongoing basis and evaluate the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recognized when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows and estimated fair value used in the impairment analysis are determined based on our plans for the respective assets, including the expected hold period, and our assessment of market and economic conditions. The estimates consider matters such as current and historical rental rates and collection levels, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in our plans or views of market and economic conditions may result in adjustments to estimated future cash flows, which could lead to recognition of impairment losses. These losses, as guided by the applicable accounting standards, could be significant. For each of the three and six months ended June 30, 2024, we recorded impairment charges of $0 and $15,107, respectively, on account of real estate classified as held for sale and sold properties. For the three and six months ended June 30, 2023, we did not incur an impairment charge.

Depreciation Expense

Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five to ten years for furniture, fixtures, and equipment. For the three and six months ended June 30, 2024, we recorded $53,757 and $107,080 of depreciation expense, respectively. For the three and six months ended June 30, 2023, we recorded $53,700 and $106,587 of depreciation expense, respectively. During the three and six months ended June 30, 2024, we wrote-off fully depreciated fixed assets of $8,328 and $15,604, respectively. During the three and six months ended June 30, 2023, we wrote-off fully depreciated fixed assets of $5,114 and $8,033, respectively.

Casualty Related Costs

Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. Sometimes, a portion of these losses are not fully covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty losses (gains), net when the proceeds are received. During the three and six months ended June 30, 2024, we recorded $465 and $2,767 of net casualty losses, respectively. During the three and six months ended June 30, 2023, we recorded $680 and $831 of net casualty losses, respectively.

g. Investments in Real Estate Under Development

We capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate. For the three and six months ended June 30, 2024, we recorded $1,771 and $3,341, respectively, of capitalized interest expense on our investments in real estate under development. For the three and six months ended June 30, 2023, we recorded $1,715 and $3,168, respectively, of capitalized interest expense on our investments in real estate under development.

As of June 30, 2024 and December 31, 2023, the carrying value of our two investments in real estate under development in Denver, Colorado totaled $115,196 and $98,365, respectively, net of $87,061 and $77,520 placed in service, respectively, and was recorded as a separate line item in our condensed consolidated balance sheets.

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

h. Investments in Unconsolidated Real Estate Entities

We have entered into joint ventures with unrelated third parties to acquire, develop, own, operate, and manage real estate assets. Our joint ventures are funded with a combination of debt and equity. We will consolidate entities that we control as well as any variable interest entity ("VIE") where we are the primary beneficiary. Under the VIE model, we consolidate an entity when we have the ability to direct the activities of the VIE and the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, we consolidate an entity when we control the entity through ownership of a majority voting interest. We separately analyzed the initial accounting for each of our four investments in unconsolidated real estate entities and concluded that each investment is a voting interest entity. Our equity interest varies for each of our four investments in unconsolidated real estate entities between 50% to 90% but, in each case, we share control of the major decisions that most significantly impact the joint ventures with our partners. Since we do not control the joint venture through our ownership interest, they are accounted for under the equity method of accounting, and are included in investments in unconsolidated real estate entities on the condensed consolidated balance sheets. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses. For the three and six months ended June 30, 2024, we recorded $1,190 and $2,462, respectively, of capitalized interest expense on our investments in unconsolidated real estate entities in our condensed consolidated balance sheets. For the three and six months ended June 30, 2023, we recorded $1,089 and $2,095, respectively, of capitalized interest expense on our investments in unconsolidated real estate entities in our condensed consolidated balance sheets.

i. Revenue and Expenses

Rental and Other Property Revenue

We apply FASB ASC Topic 842, “Leases” (“ASC 842”) with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease.

We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue.

j. Derivative Instruments

We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we, and our affiliates, may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations.

In accordance with FASB ASC Topic 815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our condensed consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivatives not designated as hedges, the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether or not the derivative is highly effective in offsetting changes in the designated interest rate

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness.

k. Fair Value of Financial Instruments

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows:

•Level 1: Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment.

•Level 2: Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

•Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

FASB ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value. Given that cash and cash equivalents and restricted cash are short term in nature with limited fair value volatility, the carrying amount is deemed to be a reasonable approximation of fair value and the fair value input is classified as a Level 1 fair value measurement. The fair value input for derivatives is classified as a Level 2 fair value measurement within the fair value hierarchy. The fair value of our unsecured credit facility, term loans, and mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity. There were no transfers between levels in the fair value hierarchy for the six months ended June 30, 2024. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated:

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)


	As of June 30, 2024				As of December 31, 2023
Financial Instrument	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets
Cash and cash equivalents	$	21,034	$	21,034	$	22,852	$	22,852
Restricted cash	26,364		26,364		27,880		27,880
Derivative assets	38,422		38,422		29,937		29,937

Liabilities
Debt:
Unsecured Revolver	102,608		103,820		233,362		235,607
Unsecured Term loans	597,852		601,767		597,544		602,589
Secured credit facilities	602,944		548,346		606,099		554,198
Mortgages (1)	949,155		872,930		1,112,404		1,029,028

(1)Includes indebtedness associated with real estate held for sale of $49,598.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by U.S. GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. As discussed further in Note 3 “Investments in Real Estate”, we recognized an impairment charge of $15,107 during the six months ended June 30, 2024 at our property classified as held for sale as of June 30, 2024. The impairment charge was determined by comparing the fair value of the property to its carrying value. The fair value was based on executed purchase and sale agreements and was determined to be a Level 3 fair value measurement within the fair value hierarchy.

l. Deferred Financing Costs

Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method.

m. Office Leases

In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of June 30, 2024 and December 31, 2023, we had $2,085 and $2,408, respectively, of operating lease right-of-use assets and $2,355 and $2,701, respectively, of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our condensed consolidated balance sheets. During the three and six months ended June 30, 2024, we recorded $189 and $409, respectively, of total operating lease expense which is recorded within property management expense and general and administrative expenses in our condensed consolidated statements of operations. During the three and six months ended June 30, 2023, we recorded $202 and $412, respectively, of total operating lease expense which was recorded within property management expenses and general and administrative expenses in our condensed consolidated statements of operations.

n. Income Taxes

We have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2024 and 2023.

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Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes.

o. Restructuring Costs

During the three months ended March 31, 2023, we reorganized certain departments in our organization impacting a limited number of employees. The impacted employees were provided severance packages that included cash severance payments and the accelerated vesting of performance share units and restricted stock awards, as applicable. In accordance with ASC 712 “Compensation – Nonretirement Postemployment Benefits”, we recognized the full amount of restructuring costs of $3,213 during the three months ended March 31, 2023, which is presented in the restructuring costs line on the condensed consolidated statement of operations. No restructuring costs were recognized during the three and six months ended June 30, 2024.

p. Recent Accounting Pronouncements

Below is a brief description of recent accounting pronouncements that could have a material effect on our condensed consolidated financial statements.

In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. Beginning in the first quarter of 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 has no impact on the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2024.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, Topic 280, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which was issued to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. Early adoption of ASU 2023-07 is permitted and the Company is still evaluating the impact of adopting this ASU.

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Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

NOTE 3: Investments in Real Estate

As of June 30, 2024, our investments in real estate consisted of 110 operating apartment properties (unaudited, including one owned through a consolidated joint venture) that contain an aggregate of 32,685 units (unaudited). The following table summarizes our investments in real estate, excluding one property we classified as held for sale:


	As of June 30, 2024		As of December 31, 2023		Depreciable Lives (In years)
Land	$	538,151	$	540,950	—
Building	5,210,283		5,288,956		40
Furniture, fixtures and equipment	469,585		429,306		5-10
Total investments in real estate	$	6,218,019	$	6,259,212
Accumulated depreciation	(667,681)		(582,760)
Investments in real estate, net	$	5,550,338	$	5,676,452

As of June 30, 2024, we owned one property, Tapestry Park, with 354 units (unaudited) in Birmingham, Alabama that we classified as held for sale which was subsequently sold on July 17, 2024 for a gross sales price of $70,800.

Portfolio Optimization and Deleveraging Strategy

On October 26, 2023, our Board of Directors approved a plan, which we refer to as our Portfolio Optimization and Deleveraging Strategy, which targeted the sale of ten properties located in seven markets in order to exit or reduce our presence in these markets while also deleveraging our balance sheet. On April 30, 2024, we sold the tenth and final property under our Portfolio Optimization and Deleveraging Strategy for a gross sales price of $28,500 and proceeds from the sale were used to repay debt. As of June 30, 2024, all ten properties in our Portfolio Optimization and Deleveraging Strategy had been sold for a total gross sales price of $525,300 and proceeds from the sales were used to repay $517,100 of debt.

Dispositions

The table below summarizes our dispositions for the six months ended June 30, 2024:


Property (1)	Market	Units (unaudited)	Sale Date	Sale Price		Gain on Sale (Loss on Impairment), Net
Villas of Kingwood (2)	Houston, TX	330	2/13/2024	$	53,700	$	62
Belmar Villas (2)	Denver, CO	318	2/13/2024	74,300		46
Hearthstone at City Center (2)	Denver, CO	360	3/12/2024	74,000		88
Villas at Huffmeister (2)	Houston, TX	294	3/25/2024	44,250		(415)
Westmont Commons	Asheville, NC	252	3/28/2024	49,875		25,856
Reserve at Creekside (2)	Chattanooga, TN	192	4/30/2024	28,500		(152)
		1,746		$	324,625	$	25,485

(1)Included in the Portfolio Optimization and Deleveraging Strategy.

(2)The gain on sale (loss on impairment), net is exclusive of an aggregate $32,956 impairment charge recognized during the three months ended December 31, 2023, net of $1,105 of defeasance and debt prepayment gains.

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Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

The table below summarizes our property held for sale as of June 30, 2024 and subsequently sold.

Property

Market

Units (Unaudited)

Sale Date

Sale Price

Tapestry Park (1)

Birmingham, AL

354

7/17/2024

70,800

(1)A loss on impairment of $15,107 was recognized during the three months ended March 31, 2024.

NOTE 4: Investments in Unconsolidated Real Estate

As of June 30, 2024, our investments in unconsolidated real estate entities had aggregate land, building, and construction in progress costs capitalized of $318,110 and aggregate construction debt of $203,789. We do not guarantee any debt, capital payout or other obligations associated with these entities. We recognize earnings or losses from our investments in unconsolidated real estate entities consisting of our proportionate share of the net earnings or losses of the joint ventures. We recognized losses of $850 and $1,679 from equity method investments during the three and six months ended June 30, 2024, respectively, and $1,205 and $1,981, respectively, during the three and six months ended June 30, 2023, and these losses were recorded in loss from investments in unconsolidated real estate entities in our condensed consolidated statements of operations.

The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2024 and December 31, 2023:


					Carrying Value As Of
Investments in Unconsolidated Real Estate Entities	Location	Units (1) (Unaudited)	IRT Ownership Interest		June 30, 2024		December 31, 2023
Metropolis at Innsbrook (2)	Richmond, VA	402	84.8	%	$	17,127	$	18,028
Views of Music City II (3)/ The Crockett (4)	Nashville, TN	408	50.0	%	11,805		11,632
Lakeline Station	Austin, TX	378	90.0	%	33,225		32,126
The Mustang	Dallas, TX	275	85.0	%	28,190		27,258
Total		1,463			$	90,347	$	89,044

(1)Represents the total number of units after development is complete and each property is placed in service.

(2)The Metropolis at Innsbrook is an operating property consisting of 402 total units (unaudited). We have a call option that gives us the right to buy the property upon the earlier of the date upon which the property achieves 90% occupancy or October 17, 2025. On June 21, 2024, we entered into an agreement with the developer to list the property for sale upon achieving 85% occupancy.

(3)Views of Music City II is an operating property consisting of 209 total units (unaudited). On July 16, 2024, we amended the joint venture agreement to require the property to be listed for sale no later than March 31, 2025, and to provide us with a right of first refusal, on any sale of the property.

(4)The Crockett is an operating property consisting of 199 units (unaudited). On July 16, 2024, we amended the related joint venture agreement for the property, which is expected to result in the return of our invested capital and corresponding preferred return no later than December 31, 2024, while also providing us with a right of first refusal on any sale of The Crockett.

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

NOTE 5: Indebtedness

The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of June 30, 2024:


Consolidated Debt:	Outstanding Principal		Unamortized Debt Issuance Costs		Unamortized Loan (Discount)/Premiums		Carrying Amount		Type	Weighted Average Contractual Rate (3)	Weighted Average Hedged Effective Rate (4)	Weighted Average Maturity (in years)
Unsecured revolver (1)	$	103,478	$	(870)	$	—	$	102,608	Floating	6.6%	4.8%	1.6
Unsecured term loans	600,000		(2,148)		—		597,852		Floating	6.5%	4.0%	3.0
Secured credit facilities	585,635		(2,108)		19,417		602,944		Fixed	4.2%	4.4%	4.4
Mortgages (2)	935,258		(3,939)		17,836		949,155		Fixed	3.8%	4.0%	3.9
Total Consolidated Debt	$	2,224,371	$	(9,065)	$	37,253	$	2,252,559		4.8%	4.1%	3.7

(1)The unsecured revolver total capacity is $500,000, of which $103,478 was outstanding as of June 30, 2024.

(2)Includes indebtedness secured by real estate held for sale of $49,598.

(3)Represents the weighted average of the contractual interest rates in effect as of the three months ended June 30, 2024, without regard to any interest rate swaps or collars.

(4)Represents the weighted average effective interest rates for the three months ended June 30, 2024, including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferred financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.

The following table contains summary information concerning our consolidated indebtedness as of June 30, 2024:


	Scheduled maturities on our consolidated indebtedness outstanding as of June 30, 2024
Consolidated Debt:	2024		2025		2026		2027		2028		Thereafter
Unsecured revolver	$	—	$	—	$	103,478	$	—	$	—	$	—
Unsecured term loans	—		—		200,000		—		400,000		—
Secured credit facilities	—		3,065		9,111		10,081		453,937		109,441
Mortgages (1)	17,479		133,855		128,696		13,300		180,852		461,076
Total	$	17,479	$	136,920	$	441,285	$	23,381	$	1,034,789	$	570,517

(1)Includes indebtedness secured by real estate held for sale.

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Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

The following table contains summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of December 31, 2023:


Consolidated Debt:	Outstanding Principal		Unamortized Debt Issuance Costs		Unamortized Loan (Discount)/Premiums		Carrying Amount		Type	Weighted Average Contractual Rate (3)	Weighted Average Hedged Effective Rate (4)	Weighted Average Maturity (in years)
Unsecured revolver (1)	$	234,479	$	(1,117)	$	—	$	233,362	Floating	6.6%	5.4%	2.1
Unsecured term loans	600,000		(2,456)		—		597,544		Floating	6.5%	3.9%	3.5
Secured credit facilities	586,286		(1,949)		21,762		606,099		Floating/Fixed	4.2%	4.6%	4.9
Mortgages (2)	1,094,933		(5,250)		22,721		1,112,404		Fixed	3.8%	4.0%	4.3
Total Consolidated Debt	$	2,515,698	$	(10,772)	$	44,483	$	2,549,409		4.8%	4.2%	4.0

(1)The unsecured revolver total capacity was $500,000, of which $234,479 was outstanding as of December 31, 2023.

(2)Includes indebtedness secured by real estate held for sale of $122,621.

(3)Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2023, without regard to any interest rate swaps or collars.

(4)Represents the total weighted average effective interest rates for the full year ended December 31, 2023, after giving effect to all components of interest expense including the impact of interest rate swaps and collars, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.

As of June 30, 2024, we were in compliance with all financial covenants contained in our consolidated indebtedness.

NOTE 6: Derivative Financial Instruments

The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024						As of December 31, 2023
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges:
Interest rate swaps	$	500,000	$	26,626	$	—	$	500,000	$	20,090	$	—
Interest rate collars	200,000		7,065		—		250,000		2,700		—
Forward interest rate collars	100,000		4,731		—		200,000		7,147		—
Total	$	800,000	$	38,422	—		$	950,000	$	29,937	$	—

Effective interest rate swaps and caps are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is recorded as derivative assets or liabilities on the face of our condensed consolidated balance sheets.

For our interest rate swaps and collars that are considered highly effective hedges, we reclassified realized gains of $5,189 and $10,428 to earnings within interest expense for the three and six months ended June 30, 2024, and we expect gains of $17,161 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months.

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

For the three and six months ended June 30, 2023, we reclassified realized gains of $4,749 and $8,126 to earnings within interest expense.

NOTE 7: Stockholders' Equity and Noncontrolling Interests

Stockholders’ Equity

On June 10, 2024, our board of directors declared a dividend of $0.16 per share on our common stock, which was paid on July 19, 2024 to common stockholders of record as of June 28, 2024.

On March 11, 2024, our board of directors declared a dividend of $0.16 per share on our common stock, which was paid on April 19, 2024 to common stockholders of record as of March 29, 2024.

On May 18, 2022, our board of directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250,000 in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time. During the three and six months ended June 30, 2024, and 2023, we had no repurchases of shares under the Stock Repurchase Program. As of June 30, 2024, we had $250,000 in shares of our common stock remaining authorized for purchase under the Stock Repurchase Program.

On June 14, 2023, we replaced our previous shelf registration statement with our new shelf registration statement. On July 28, 2023, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock under our shelf registration statement having an aggregate offering price of up to $450,000 (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. There were no forward sale transactions as of June 30, 2024, and no shares of our common stock were sold under the ATM Program during the three and six months ended June 30, 2024.

Noncontrolling Interest

During the six months ended June 30, 2024, holders of IROP units exchanged 4,928 units for 4,928 shares of our common stock. As of June 30, 2024, 5,941,643 IROP units held by unaffiliated third parties remain outstanding.

On June 10, 2024, our board of directors declared a dividend of $0.16 per IROP unit, which was paid on July 19, 2024 to IROP unit holders of record as of June 28, 2024.

On March 11, 2024, our board of directors declared a dividend of $0.16 per IROP unit, which was paid on April 19, 2024 to IROP unit holders of record as of March 29, 2024.

NOTE 8: Equity Compensation Plans

Long Term Incentive Plan

On May 18, 2022, our stockholders approved our 2022 Long Term Incentive Plan (the "2022 Incentive Plan"), which replaced the 2016 Long Term Incentive Plan (the “Prior Plan”, collectively with the 2022 Incentive Plan, the “Incentive Plan”). No new awards may be made under the Prior Plan, although awards outstanding under the Prior Plan will remain subject to the terms of the Prior Plan. The 2022 Incentive Plan provides for grants of equity and equity-based awards to our employees, officers, directors, consultants and other service providers, and such awards may take the form of restricted or unrestricted shares of common stock, non-qualified stock options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”), dividend equivalents and other equity and cash-based awards. A maximum of 8,000,000 shares of our common stock (plus up to an additional 1,280,610 shares of our common stock, to the extent that shares subject to outstanding awards under the Prior Plan are recycled into the 2022 Incentive Plan) may be

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

issued under the 2022 Incentive Plan, subject to customary adjustment for stock splits, reverse stock splits and similar corporate events or transactions affecting shares of our common stock.

The restricted shares and RSUs granted under the Incentive Plan generally vest or vested over a two-to four-year period. In addition, we have granted unrestricted shares to our non-employee directors. These awards generally vest or vested immediately. A summary of restricted and unrestricted common share awards and RSU activity is presented below.


	2024
	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Balance, January 1,	416,735	$	18.70
Granted	382,077	14.95
Vested	(218,091)	13.80
Forfeited	(29,138)	16.50
Balance, June 30,(1)	551,583	$	18.16


(1)			The outstanding award balances above include 149,334 and 127,989 RSUs as of June 30, 2024 and December 31, 2023, respectively.

On February 26, 2024, our compensation committee awarded 218,379 performance share units (“PSUs”) (measured at target) to our executive officers. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, with the actual number of shares issuable ranging between 0% and 150% of the target number of PSUs granted. Half of any PSUs earned will vest, and shares will be issued in respect thereof, immediately following the end of the three-year performance period; the remaining half of any PSUs earned will vest, and shares will be issued in respect thereof, after an additional one-year period of service.

During the six months ended June 30, 2024 and 2023, a portion of the RSUs and PSUs granted were issued to employees who are retirement eligible. The fact that the grantees are retirement eligible resulted in immediate recognition of the associated stock-based compensation expense totaling $2,525 and $2,677, respectively.

NOTE 9: Earnings Per Share

The following table presents a reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	10,555	$	10,988	$	28,515	$	19,861
Income allocated to noncontrolling interest	(201)		(279)		(585)		(503)
Net income allocable to common shares	$	10,354	$	10,709	$	27,930	$	19,358
Weighted-average shares outstanding—Basic	224,793,229		224,422,515		224,710,259		224,325,246
Weighted-average shares outstanding—Diluted	225,418,825		225,073,890		225,403,082		225,088,261
Earnings per share—Basic	$	0.05	$	0.05	$	0.12	$	0.09
Earnings per share—Diluted	$	0.05	$	0.05	$	0.12	$	0.09

Certain IROP units, RSUs and restricted stocks awards were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 6,070,126 and 6,096,634 for the three and six months ended June 30, 2024. Certain IROP units were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 5,946,571 and 5,946,571 for the three and six months ended June 30, 2023, respectively.

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Independence Realty Trust, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2024

(Unaudited and dollars in thousands, except share and per share data)

NOTE 10: Other Disclosures

Litigation

We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. See Part II, Item 1, Legal Proceedings, for additional information regarding our legal proceedings.

Loss Contingencies

We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

The Securities and Exchange Commission (the “SEC”), encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This report contains or incorporates by reference such “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Words such as “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify forward-looking statements.

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act. Such forward-looking statements include, but are not limited to, anticipated enhancements to our financial results and future growth from our Portfolio Optimization and Deleveraging Strategy. All statements in this Quarterly Report on Form 10-Q 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, 2023, 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 Quarterly Report on Form 10-Q 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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Overview

Our Company

We are a self-administered and self-managed Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”). We are primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets. As of June 30, 2024, we owned and operated 110 multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 32,685 units. Our properties are located in Alabama, Colorado, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee and Texas. In addition, as of June 30, 2024, we owned and consolidated two investments in real estate under development in Colorado that will, upon completion, contain an aggregate of 621 units. As of June 30, 2024, we also owned interests in four unconsolidated joint ventures, two that own and operate multifamily apartment communities that contain an aggregate of 810 units and two that are developing multifamily apartment communities that will contain, upon completion, an aggregate of 653 units. We do not have any foreign operations and our business is not seasonal.

Our Business Objective and Investment Strategies

Our primary business objective is to maximize stockholder value through diligent portfolio management, strong operational performance, and a consistent return of capital through distributions and capital appreciation. Our investment strategy is focused on the following:

•gaining scale within key amenity rich submarkets of non-gateway cities that offer good school districts, high-quality retail and major employment centers and are unlikely to experience substantial new apartment construction in the foreseeable future;

•increasing cash flows at our existing apartment properties through prudent property management and strategic renovation projects; and

•acquiring and developing additional properties that have strong and stable occupancies and support a rise in rental rates or that have the potential for repositioning through capital expenditures or tailored management strategies.

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Property Portfolio (1)

As of June 30, 2024, we owned and consolidated 110 multifamily apartment properties, totaling 32,685 units. Below is a summary of our consolidated property portfolio by market.


(Dollars in thousands, except per unit data)	As of June 30, 2024						For the Three Months Ended June 30, 2024
Market	Number of Properties	Units	Gross Real Estate Assets		Period End Occupancy		Average Effective Monthly Rent per Unit		Net Operating Income		% of NOI
Atlanta, GA	13	5,180	$	1,099,186	93.9	%	$	1,609	$	14,632	15.1	%
Dallas, TX	14	4,007	873,317		95.6	%	1,815		13,213		13.7	%
Columbus, OH	10	2,510	377,578		94.4	%	1,451		6,633		7.0	%
Oklahoma City, OK	8	2,147	332,776		95.4	%	1,204		5,362		5.4	%
Indianapolis, IN	7	1,979	295,293		97.1	%	1,396		5,359		5.5	%
Denver, CO (1)(2)	6	1,397	382,238		96.6	%	1,736		5,310		5.5	%
Tampa-St. Petersburg, FL	5	1,452	317,253		95.0	%	1,836		5,212		5.4	%
Nashville, TN	5	1,508	373,109		95.7	%	1,635		5,024		5.2	%
Raleigh - Durham, NC	6	1,690	254,444		95.5	%	1,545		4,987		5.2	%
Memphis, TN	4	1,383	161,192		94.6	%	1,518		4,043		4.2	%
Houston, TX	5	1,308	214,215		97.3	%	1,431		3,312		3.4	%
Huntsville, AL	4	1,051	241,753		96.5	%	1,487		3,190		3.3	%
Louisville, KY	4	1,150	145,766		96.3	%	1,312		2,860		3.0	%
Birmingham, AL (3)	2	1,074	219,565		94.7	%	1,455		2,786		2.9	%
Lexington, KY	3	886	161,833		98.3	%	1,353		2,697		2.8	%
Charlotte, NC	3	714	189,804		95.9	%	1,742		2,588		2.7	%
Myrtle Beach, SC - Wilmington, NC	3	628	68,296		95.9	%	1,407		1,827		1.9	%
Cincinnati, OH	2	542	124,084		98.1	%	1,604		1,760		1.8	%
Greenville, SC	1	702	125,347		94.2	%	1,308		1,620		1.7	%
Charleston, SC	2	518	82,009		96.3	%	1,697		1,551		1.6	%
Orlando, FL	1	297	50,708		93.9	%	1,794		902		0.9	%
San Antonio, TX	1	306	57,469		96.7	%	1,477		873		0.9	%
Austin, TX	1	256	59,954		94.5	%	1,805		850		0.9	%
Total/Weighted Average	110	32,685	$	6,207,189	95.5	%	$	1,554	$	96,591	100.0	%

(1)Excludes our development properties. See Non-GAAP financial measures for the definition of a development property.

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

(3)Includes one property with 354 units that was held for sale as of June 30, 2024.

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Current Developments

Portfolio Optimization and Deleveraging Strategy

The Portfolio Optimization and Deleveraging Strategy concluded with the sale of the tenth and final property on April 30, 2024 for a gross sales price of $28.5 million, and proceeds from the sale were used to pay outstanding mortgage debt in the amount of $15.0 million, and $13.3 million in borrowings under our unsecured revolver. The Portfolio Optimization and Deleveraging Strategy resulted in the sale of ten properties for an aggregate gross sales price of $525.3 million and proceeds from the sales were used to repay an aggregate of $517.1 million of debt.

Capital Recycling

Our capital recycling program consists of disposing of assets in markets where we lack scale and/or markets

where management believes that growth is slowing.

During the three months ended March 31, 2024, in connection with our capital recycling program, we identified one property in Birmingham, Alabama as held for sale and recognized a loss on impairment of $15.1 million. As of June 30, 2024, this property continued to be held for sale and was subsequently sold on July 17, 2024 for a gross sales price of $70.8 million. We expect to use the proceeds from this 1031 exchange sale to acquire a property in Tampa, Florida during the third quarter 2024.

Investments in Unconsolidated Real Estate Entities

To create another avenue for accretive capital allocation and to increase our options for capital investment, we have partnered with, and may in the future partner with, developers through preferred equity investments and joint venture relationships focused on new multifamily development.

No new investments in unconsolidated real estate entities were entered into during the three and six months ended June 30, 2024. On July 16, 2024, we amended the related joint venture agreement for the property, which is expected to result in the return of our invested capital and corresponding preferred return no later than December 31, 2024, while also providing us with a right of first refusal on any sale of The Crockett. The amendment of the joint venture agreement also converted the right of first offer on the Views of Music City II to a right of first refusal. As of June 30, 2024 and December 31, 2023, we had investments in unconsolidated real estate entities of $90.3 million and $89.0 million, respectively.

Investments in Real Estate Under Development

As part of our merger with Steadfast Apartment REIT, Inc. (the “STAR Merger”), we acquired two land parcels in Denver, Colorado that are being developed into multifamily properties that will contain 621 units, in the aggregate, upon completion. As of June 30, 2024 and December 31, 2023, we had investments in real estate under development of $115.2 million and $98.4 million, respectively, net of $87.1 million and $77.5 million placed in service, respectively.

Value Add

Our value add program provides us with the opportunity to improve long-term growth through targeted unit renovations at communities where there is the potential for outsized rent growth.

We completed renovations on 378 units during the three months ended June 30, 2024. From inception of our value add program in January 2018 through June 30, 2024, we completed renovations on 8,469 of the 13,281 units currently in our value add program, achieving a return on investment of 17.1% (and approximately 19.1% on the interior portion of such renovation costs). We compute return on cost by using the rent premium per unit per month, multiplied by 12, divided by the applicable renovation costs per unit and we compute the rent premium as the difference between the rental rate on the renovated unit (excluding the impact of concessions) and the market rent for a comparable unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.

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Capital Markets

Shelf Registration Statement

On June 14, 2023, we replaced our previous shelf registration statement with our new shelf registration statement. On July 28, 2023, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock under our shelf registration statement having an aggregate offering price of up to $450,000 (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. There were no forward sale transactions as of June 30, 2024, and no shares of our common stock were sold under the ATM Program during the three and six months ended June 30, 2024.

Investment Grade Rating from Fitch

On March 4, 2024, we received an investment grade rating from Fitch Ratings (“Fitch”). Fitch has assigned a Long-Term Issuer Default Rating of ‘BBB’ to IRT with a stable outlook. In addition, Fitch has assigned a rating of ‘BBB’ to our subsidiary, Independence Realty Operating Partnership, LP and our senior unsecured debt, which includes credit facilities and unsecured term loans.

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Results of Operations

As of June 30, 2024, we owned and consolidated 110 multifamily apartment properties, of which 108 comprised the Same-Store Portfolio.

Three Months Ended June 30, 2024 compared to the Three Months Ended June 30, 2023


	SAME-STORE PORTFOLIO								NON SAME-STORE PORTFOLIO								CONSOLIDATED
(Dollars in thousands)	Three Months Ended June 30,								Three Months Ended June 30,								Three Months Ended June 30,
	2024		2023		Increase (Decrease)		% Change		2024		2023		Increase (Decrease)		% Change		2024		2023		Increase (Decrease)		% Change
Property Data:
Number of properties (1)	108		108		—		—		2		11		(9)		(81.8)%		110		119		(9)		(7.6)%
Number of units (1)	32,153		32,153		—		—		532		3,096		(2,564)		(82.8)%		32,685		35,249		(2,564)		(7.3)%
Average occupancy (1)	95.4%		94.2%		1.2%		—		94.7%		93.3%		1.4%		—		95.3%		94.1%		1.2%		—
Average effective monthly rent, per unit (1)	$1,555		$1,531		$24		1.6%		$1,545		$1,619		$(74)		(4.6)%		$1,554		$1,538		$16		1.0%
Revenue:
Rental and other property revenue	$	153,969	$	148,645	$	5,324	3.6	%	$	4,135	$	14,956	$	(10,821)	(72.4)	%	$	158,104	$	163,601	$	(5,497)	(3.4)	%
Expenses:
Property operating expenses	59,041		56,270		2,771		4.9	%	1,842		5,801		(3,959)		(68.2)	%	60,883		62,071		(1,188)		(1.9)	%
Net Operating Income	$	94,928	$	92,375	$	2,553	2.8	%	$	2,293	$	9,155	$	(6,862)	(75.0)	%	$	97,221	$	101,530	$	(4,309)	(4.2)	%

Other Revenue:
Other revenue																	$	298	$	354	$	(56)	(15.8)	%
Corporate and other expenses:
Property management expenses																	7,666		6,818		848		12.4	%
General and administrative expenses																	6,244		5,910		334		5.7	%
Depreciation and amortization expense																	54,127		53,984		143		0.3	%

Casualty losses																	465		680		(215)		(31.6)	%
Interest expense																	(17,460)		(22,227)		4,767		(21.4)	%
Loss on impairment of real estate assets, net																	(152)		—		(152)		100.0	%

Other (loss) income, net																	—		(72)		72		(100.0)	%
Loss from investments in unconsolidated real estate entities																	(850)		(1,205)		355		(29.5)	%


Net income																	$	10,555	$	10,988	$	(433)	(3.9)	%
Income allocated to noncontrolling interests																	(201)		(279)		78		(28.0)	%
Net income available to common shares																	$	10,354	$	10,709	$	(355)	(3.3)	%

(1)Excludes our development projects. See Non-GAAP Financial Measures for our definition of a development property and our methodology for determining same-store properties.

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Revenue

Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio decreased $5.5 million to $158.1 million for the three months ended June 30, 2024 from $163.6 million for the three months ended June 30, 2023. The decrease was primarily attributable to a $10.8 million decrease in non same-store rental and other property revenue driven by the sale of ten properties under the Portfolio Optimization and Deleveraging Strategy, partially offset by an increase in same-store rental and other property revenue of $5.3 million driven by a 1.6% increase in average effective monthly rents and a 1.2% increase in average occupancy compared to the prior year period.

Expenses

Property operating expenses. Property operating expenses decreased $1.2 million to $60.9 million for the three months ended June 30, 2024 from $62.1 million for the three months ended June 30, 2023. The decrease was due to a $4.0 million decrease in property operating expenses due to the sale of ten properties under our Portfolio Optimization and Deleveraging Strategy partially offset by a $2.8 million increase in same-store property operating expense, driven by an increase in repairs and maintenance, advertising expenses, personnel expenses and property insurance.

Property management expenses. Property management expenses increased $0.9 million to $7.7 million for the three months ended June 30, 2024 from $6.8 million for the three months ended June 30, 2023 primarily due to higher personnel costs driven by $0.2 million of employee retention credit benefits realized in the prior year period.

General and administrative expenses. General and administrative expenses increased $0.3 million to $6.2 million for the three months ended June 30, 2024 from $5.9 million for the three months ended June 30, 2023. The increase was primarily due to higher personnel costs compared to the prior year period.

Depreciation and amortization expense. Depreciation and amortization expense increased $0.1 million to $54.1 million for the three months ended June 30, 2024 from $54.0 million for the three months ended June 30, 2023. The increase was primarily due to depreciation expenses driven by capital expenditures related to our value add program partially offset by lower depreciation from sold properties.

Casualty losses. During the three months ended June 30, 2024, we incurred $0.5 million in net casualty losses primarily due to fire damage at two properties where the carrying value of the damage exceeded insurance proceeds due to policy deductibles. During the three months ended June 30, 2023, we incurred $0.7 million in casualty losses due to fires at two properties where the carrying value of the damage exceeded insurance proceeds due to policy deductibles.

Loss from investments in unconsolidated real estate entities. Loss from investments in unconsolidated joint ventures decreased $0.4 million to $0.9 million for the three months ended June 30, 2024, primarily due to the completion of construction activities at two investments in unconsolidated real estate entities and increased occupancies and operating results during the lease-up phase.

Interest expense. Interest expense decreased $4.7 million to $17.5 million for the three months ended June 30, 2024 from $22.2 million for the three months ended June 30, 2023. The decrease was primarily driven by the reduction of debt associated with the sale of ten properties under the Portfolio Optimization and Deleveraging Strategy.

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Results of Operations

Six Months Ended June 30, 2024 compared to the Six Months Ended June 30, 2023


	SAME-STORE PORTFOLIO							NON SAME-STORE PORTFOLIO							CONSOLIDATED
(Dollars in thousands)	Six Months Ended June 30,							Six Months Ended June 30,							Six Months Ended June 30,
	2024		2023		Increase (Decrease)		% Change	2024		2023		Increase (Decrease)		% Change	2024		2023		Increase (Decrease)		% Change
Property Data:
Number of properties (1)	108		108		—		—	2		11		(9)		(81.8)%	110		119		(9)		(7.6)%
Number of units (1)	32,153		32,153		—		—	532		3,096		(2,564)		(82.8)%	32,685		35,249		(2,564)		(7.3)%
Average occupancy (1)	94.9%		93.7%		1.2%		—	93.5%		92.9%		0.6%		—	94.9%		93.6%		1.3%		—
Average effective monthly rent, per unit (1)	$1,553		$1,529		$24		1.6%	$1,543		$1,614		$(71)		(4.4)%	$1,553		$1,545		$8		0.5%
Revenue:
Rental and other property revenue	$	304,587	$	294,346	$	10,241	3.5%	$	13,849	$	30,390	$	(16,541)	(54.4)%	$	318,436	$	324,736	$	(6,300)	(1.9)%
Expenses:
Property operating expenses	115,288		109,834		5,454		5.0%	5,566		11,493		(5,927)		(51.6)%	120,854		121,327		(473)		(0.4)%
Net Operating Income	$	189,299	$	184,512	$	4,787	2.6%	$	8,283	$	18,897	$	(10,614)	(56.2)%	$	197,582	$	203,409	$	(5,827)	(2.9)%

Other Revenue:
Other revenue															$	501	$	594	$	(93)	(15.7)%
Corporate and other expenses:
Property management expenses															15,165		13,189		1,976		15.0	%
General and administrative expenses															14,624		14,063		561		4.0	%
Depreciation and amortization expense															107,850		107,520		330		0.3	%

Casualty losses															2,767		831		1,936		233.0	%
Interest expense															(38,063)		(44,351)		6,288		(14.2)	%
Gain on sale of real estate assets, net															10,378		985		9,393		953.6	%
Gain on extinguishment of debt															203		—		203		100.0	%

Other (loss) income, net															(1)		21		(22)		(104.8)	%
Loss from investments in unconsolidated real estate entities															(1,679)		(1,981)		302		(15.2)	%
Restructuring costs															—		(3,213)		3,213		(100.0)	%
Net income															$28,515		$19,861		$8,654		43.6%
Income allocated to noncontrolling interests															(585)		(503)		(82)		16.3	%
Net income available to common shares															$27,930		$19,358		$8,572		44.3%

(1)Excludes our development projects. See Non-GAAP Financial Measures for our definition of a development property and our methodology for determining same-store properties.

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Revenue

Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio decreased $6.3 million to $318.4 million for the six months ended June 30, 2024 from $324.7 million for the six months ended June 30, 2023. The decrease was primarily attributable to a $16.5 million decrease in non same-store rental and other property revenue driven by the sale of ten properties under the Portfolio Optimization and Deleveraging Strategy. This decrease in non same-store rental and other property revenue was partially offset by an increase in same-store rental and other property revenue of $10.2 million driven by a 1.6% increase in average effective monthly rents and a 1.2% increase in average occupancy compared to the prior year period.

Expenses

Property operating expenses. Property operating expenses decreased $0.4 million to $120.9 million for the six months ended June 30, 2024 from $121.3 million for the six months ended June 30, 2023. The decrease was primarily due to the $5.9 million decrease in property operating expenses due to the sale of ten properties under our Portfolio Optimization and Deleveraging Strategy partially offset by a $5.5 million increase in same-store property operating expenses, primarily due to higher property insurance, personnel expenses, and advertising expenses.

Property management expenses. Property management expenses increased $2.0 million to $15.2 million for the six months ended June 30, 2024 from $13.2 million for the six months ended June 30, 2023 primarily due to higher personnel costs driven by $0.4 million of employee retention credit benefits realized in the prior year period and higher software license costs as a result of ongoing centralization efforts.

General and administrative expenses. General and administrative expenses increased $0.5 million to $14.6 million for the six months ended June 30, 2024 from $14.1 million for the six months ended June 30, 2023. The increase was primarily due to higher professional fees compared to the prior year period.

Casualty losses. During the six months ended June 30, 2024, we incurred $2.8 million in casualty losses where the carrying value of the damage exceeded insurance proceeds due to policy deductibles. During the six months ended June 30, 2023, we incurred $0.8 million in casualty losses due to fires at three properties where the carrying value of the damage exceeded insurance proceeds due to policy deductibles.

Interest expense. Interest expense decreased $6.3 million to $38.1 million for the six months ended June 30, 2024 from $44.4 million for the six months ended June 30, 2023 primarily due to the reduction of debt associated with the sale of ten properties under the Portfolio Optimization and Deleveraging Strategy.

Gain on sale of real estate assets, net. During the six months ended June 30, 2024, we sold six multi-family properties and recognized a gain on sale of real estate, net of $10.4 million comprised of a $25.5 million gain on sale of real estate, net, partially offset by a loss on impairment of $15.1 million for one property held for sale as of June 30, 2024, as a result of the carrying value of the real estate exceeding the expected sales price less transaction costs. During the six months ended June 30, 2023, we sold one multi-family property resulting in a gain on sale of real estate, net of $1.0 million.

Restructuring costs. During the six months ended June 30, 204, we incurred no restructuring costs. During the six months ended June 30, 2023, we incurred approximately $3.2 million of severance costs related to the reorganization of certain departments that impacted a limited number of employees.

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Non-GAAP Financial Measures

Funds from Operations (FFO) and Core Funds from Operations (CFFO)

We believe that FFO and Core FFO (“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, 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 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.

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Set forth below is a reconciliation of net income to FFO and CFFO for the three and six months ended June 30, 2024 and 2023 (in thousands, except share and per share information):


	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
	Amount		Per Share(1)		Amount		Per Share(2)		Amount		Per Share(1)		Amount		Per Share(2)
Net income	$	10,555	$	0.05	$	10,988	$	0.05	$	28,515	$	0.12	$	19,861	$	0.09
Adjustments:
Real estate depreciation and amortization	53,757		0.23		53,701		0.23		107,149		0.46		106,989		0.46
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities	598		—		575		—		1,196		0.01		994		—
Loss on impairment (gain on sale) of real estate assets net, excluding prepayment gains	336		—		—		—		(9,273)		(0.04)		(314)		—
FFO	$	65,246	$	0.28	$	65,264	$	0.28	$	127,587	$	0.55	$	127,530	$	0.55

FFO	$	65,246	$	0.28	$	65,264	$	0.28	$	127,587	$	0.55	$	127,530	$	0.55
Adjustments:
Other depreciation and amortization	370		—		283		—		701		—		531		—

Casualty losses	465		0.01		680		0.01		2,767		0.01		831		0.01
Loan (premium accretion) discount amortization, net	(2,283)		(0.01)		(2,737)		(0.01)		(4,679)		(0.02)		(5,493)		(0.02)
Prepayment (gains) losses on asset dispositions	(184)		—		—		—		(1,105)		—		(670)		—
Gain on extinguishment of debt	—		—		—		—		(203)		—		—		—
Other expense	—		—		192		—		1		—		234		—

Restructuring costs	—		—		—		—		—		—		3,213		0.01
CFFO	$	63,614	$	0.28	$	63,682	$	0.28	$	125,069	$	0.54	$	126,176	$	0.55

(1)Based on 230,734,872 and 230,652,876 weighted-average shares and units outstanding for the three and six months ended June 30, 2024, respectively.

(2)Based on 230,369,086 and 230,278,208 weighted-average shares and units outstanding for the three and six months ended June 30, 2023, respectively.

Same-Store Portfolio Net Operating Income

We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful supplemental measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expenses, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expense, net gains on sale of assets, 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 insofar as the measure reflects only operating income and expense at the property level. We use NOI to evaluate performance on a same-store and non same-store basis because NOI measures the core operations of property performance by excluding corporate level expenses, financing 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.

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.

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 are added into the non same-store portfolio.

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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%.

Set forth below is a reconciliation of GAAP net income to Same-Store Portfolio NOI for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024		2023		% change		2024		2023		% change
Net income	$	10,555	$	10,988	(3.9)	%	$	28,515	$	19,861	43.6	%

Other revenue	(298)		(354)		(15.8)	%	(501)		(594)		(15.7)	%
Property management expenses	7,666		6,818		12.4	%	15,165		13,189		15.0	%
General and administrative expenses	6,244		5,910		5.7	%	14,624		14,063		4.0	%
Depreciation and amortization expense	54,127		53,984		0.3	%	107,850		107,520		0.3	%

Casualty losses	465		680		(31.6)	%	2,767		831		233.0	%
Interest expense	17,460		22,227		(21.4)	%	38,063		44,351		(14.2)	%
Loss on impairment (gain on sale) of real estate assets, net	152		—		100.0	%	(10,378)		(985)		953.6	%
Gain on extinguishment of debt	—		—		—	%	(203)		—		(100.0)	%
Other loss (income), net	—		72		(100.0)	%	1		(21)		(104.8)	%
Loss from investments in unconsolidated real estate entities	850		1,205		(29.5)	%	1,679		1,981		(15.2)	%

Restructuring costs	—		—		—	%	—		3,213		(100.0)	%
NOI	97,221		101,530		(4.2)	%	197,582		203,409		(2.9)	%
Less: Non same-store portfolio NOI	2,293		9,155		(75.0)	%	8,283		18,897		(56.2)	%
Same-store portfolio (a) NOI	$	94,928	$	92,375	2.8	%	$	189,299	$	184,512	2.6	%

(a)Same-Store Portfolio for the three and six months ended June 30, 2024 and 2023 included 108 properties containing 32,153 units.

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.

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Set forth below is Same-Store Portfolio (a) NOI for the three and six months ended June 30, 2024 and 2023 (in thousands, except per unit data):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024		2023		% change		2024		2023		% change
Revenue:
Rental and other property revenue	$	153,969	$	148,645	3.6	%	$	304,587	$	294,346	3.5	%
Property Operating Expenses
Real estate taxes	18,626		18,576		0.3	%	37,596		37,055		1.5	%
Property insurance	4,014		3,600		11.5	%	8,164		6,566		24.3	%
Personnel expenses	12,806		11,745		9.0	%	25,005		22,870		9.3	%
Utilities	7,460		7,063		5.6	%	15,173		14,416		5.3	%
Repairs and maintenance	6,495		5,997		8.3	%	11,320		11,443		(1.1)	%
Contract services	5,886		5,941		(0.9)	%	10,987		11,038		(0.5)	%
Advertising expenses	2,065		1,592		29.7	%	3,661		2,894		26.5	%
Other expenses	1,689		1,756		(3.8)	%	3,382		3,552		(4.8)	%
Total property operating expenses	59,041		56,270		4.9	%	115,288		109,834		5.0	%
Same-store portfolio NOI	$	94,928	$	92,375	2.8	%	$	189,299	$	184,512	2.6	%


Same-store portfolio NOI Margin	61.7	%	62.1	%	(0.4)	%	62.1	%	62.7	%	(0.6)	%
Average Occupancy	95.4	%	94.2	%	1.2	%	94.9	%	93.7	%	1.2	%


Average effective monthly rent, per unit			$	1,555					$	1,531					1.6		%				$	1,553					$	1,529					1.6		%

(a)Same-Store Portfolio for the three and six months ended June 30, 2024 and 2023 included 108 properties containing 32,153 units.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain investments, pay distributions and other general business needs. We believe our available cash balances, financing arrangements and cash flows from operations will be sufficient to fund our liquidity requirements with respect to our existing portfolio for the next twelve months and the foreseeable future.

Our primary cash requirements are to:

•make investments to continue our value add initiatives to improve the quality and performance of our properties;

•repay our indebtedness;

•fund costs necessary to maintain our properties;

•continue funding our current real estate developments until completion;

•pay our operating expenses; and

•distribute a minimum of 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gain) and to make investments in a manner that enables us to maintain our qualification as a REIT.

We intend to meet our liquidity requirements primarily through a combination of one or more of the following:

•the use of our cash and cash equivalents of $21.0 million as of June 30, 2024;

•existing and future unsecured financing, including advances under our unsecured credit facility, and financing secured directly or indirectly by the apartment properties in our portfolio;

•cash generated from operating activities;

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•net cash proceeds from property sales, including sales undertaken as part of our capital recycling strategy and other sales; and

•proceeds from the sales of our common stock and other equity securities, including common stock that may be sold under our ATM program.

Cash Flows

As of June 30, 2024 and 2023, we maintained cash and cash equivalents, and restricted cash of approximately $47.4 million and $42.5 million, respectively. Our cash and cash equivalents were generated from the following activities (dollars in thousands):


	For the Six Months Ended June 30,
	2024		2023
Cash flow provided by operating activities	$	127,080	$	127,194
Cash flow provided by (used in) investing activities	238,553		(83,959)
Cash flow used in financing activities	(368,967)		(44,740)
Net change in cash and cash equivalents, and restricted cash	(3,334)		(1,505)
Cash and cash equivalents, and restricted cash, beginning of period	50,732		44,017
Cash and cash equivalents, and restricted cash, end of the period	$	47,398	$	42,512

Our cash inflows from operating activities during the six months ended June 30, 2024 and 2023 were primarily driven by ongoing operations of our properties.

Our cash inflows from investing activities during the six months ended June 30, 2024 were primarily due to $320.6 million of proceeds from the disposition of six properties under our Portfolio Optimization and Deleveraging Strategy and $3.5 million of proceeds from insurance claims, partially offset by $55.7 million of capital expenditures, $26.9 million of investments in real estate under development and $3.0 million of investments in unconsolidated real estate entities. Our cash outflows from investing activities during the six months ended June 30, 2023 were primarily due to $67.2 million of capital expenditures, $21.7 million of investments in unconsolidated real estate entities, and $30.6 million of investments in real estate under development, partially offset by $35.6 million of proceeds from one property disposition.

Our cash outflows from financing activities during the six months ended June 30, 2024 were primarily due to unsecured credit facility and mortgage principal repayments of $422.3 million, payment of dividends on our common stock and noncontrolling interests of $74.0 million, partially offset by $131.0 million of draws on our unsecured revolver. Our cash outflows from financing activities during the six months ended June 30, 2023 were primarily due to payment of dividends on our common stock and noncontrolling interests of $64.7 million partially offset by $27.5 million of net draws on our unsecured revolver.

Contractual Obligations

Our 2023 Annual Report on Form 10-K includes a table of contractual obligations. There were no material changes to these obligations since the filing of our 2023 Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

There were no off-balance sheet arrangements during the six months ended June 30, 2024 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our interests.

Critical Accounting Estimates and Policies

Our 2023 Annual Report on Form 10-K contains a discussion of our critical accounting policies. Management discusses our critical accounting policies and management’s judgments and estimates with the audit committee of our board of directors. There were no material changes to our critical accounting policies since the filing of our Annual Report on Form 10-K.

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Item 3. Quantitative and Qualitative Disclosure About Market Risk.

Our 2023 Annual Report on Form 10-K contains a discussion of qualitative and quantitative market risks. There have been no material changes in quantitative and qualitative market risks during the six months ended June 30, 2024 from the disclosures included in our 2023 Annual Report on Form 10-K.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Effective as of June 30, 2024, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective to ensure that information required to be disclosed by us in our Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation referred to above during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

Starting around November 2022, putative class action representatives began filing complaints in various United States District Courts across the country naming as defendants RealPage, Inc. (“RealPage”), a seller of revenue management products, and approximately 50 defendants who own and/or manage multifamily residential rental housing, alleging that the defendants conspired to fix, raise, maintain, and stabilize rent prices in violation of Section 1 of the Sherman Act. Some of the complaints, including one filed on November 14, 2022 in the U.S. District Court for the Northern District of Illinois, named us as one of the defendants, and others did not. On April 10, 2023, the United States Judicial Panel on Multidistrict Litigation issued an order transferring the cases to the United States District Court for the Middle District of Tennessee for coordinated and consolidated pretrial proceedings, where plaintiffs filed a consolidated complaint. We filed an answer to the consolidated complaint and asserted affirmative defenses. We deny all allegations of wrongdoing and intend to defend against these claims vigorously.

Item 1A. Risk Factors.

There have not been any material changes from the risk factors disclosed in Part 1, Item 1A of our 2023 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the three and six months ended June 30, 2024, holders of IROP units exchanged 0 and 4,928 units, respectively, for 0 and 4,928 shares, respectively, of our common stock. The issuance of these shares upon exchange of the units was exempt from registration under the Securities Act, pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act. As of June 30, 2024, 5,941,643 IROP units held by unaffiliated third parties remained outstanding.

During the three months ended June 30, 2024, we withheld shares of common stock to satisfy employee tax withholding obligations payable upon the vesting of restricted common stock awards as follow:


Period	Total Number of Shares Purchased	Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)
Apr 2024	4,721	$	15.65	—	$	250,000
May 2024	—	—		—	250,000
Jun 2024	—	—		—	250,000
Total	4,721	$	15.65	—

(1)The price reported is the average price paid per share using our closing price on the NYSE on the vesting date of the relevant award.

(2)On May 18, 2022, our Board of Directors approved the Stock Repurchase Program covering up to $250,000 in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time.

Item 3. Defaults Upon Senior Securities.

None.

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Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

During the three and six months ended June 30, 2024, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act). During the three and six months ended June 30, 2024, the Company did not adopt, terminate or modify a Rule 10b5-1 trading arrangement.

Item 6. Exhibits.

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.


2.1			Agreement and Plan of Merger, dated as of July 26, 2021, by and among Independence Realty Trust, Inc., Independence Realty Operating Partnership, LP, IRSTAR Sub, LLC, LLC, Steadfast Apartment REIT, Inc. and Steadfast Apartment REIT Operating Partnership, L.P., incorporated by reference to Exhibit 2.1 to IRT’s Current Report on Form 8-K filed on July 26, 2021.*

31.1			Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

31.2			Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1			Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.2			Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.

101			iXBRL (Inline eXtensible Business Reporting Language). The following materials, formatted in iXBRL: (i) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023, (iv) Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023, (v) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 and (vi) notes to the condensed consolidated financial statements as of June 30, 2024.

104			Cover Page Interactive Data File (embedded within the Inline XBRL document).

* Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. IRT agrees to furnish supplementally to the SEC a copy of any omitted schedule upon request by the SEC.

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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 thereunto duly authorized.


	Independence Realty Trust, Inc.

Date: August 1, 2024	By:	/s/ SCOTT F. SCHAEFFER
		Scott F. Schaeffer
		Chairman of the Board and Chief Executive Officer
		(Principal Executive Officer)

Date: August 1, 2024	By:	/s/ JAMES J. SEBRA
		James J. Sebra
		Chief Financial Officer and Treasurer
		(Principal Financial Officer)

Date: August 1, 2024	By:	/s/ JASON R. DELOZIER
		Jason R. Delozier
		Chief Accounting Officer
		(Principal Accounting Officer)

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Scott F. Schaeffer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Independence Realty Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 1, 2024


			By:			/s/ SCOTT F. SCHAEFFER
						Scott F. Schaeffer
						Chairman of the Board and Chief Executive Officer (Principal Executive Officer)

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, James J. Sebra, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Independence Realty Trust, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 1, 2024


			By:			/s/ JAMES J. SEBRA
						James J. Sebra
						Chief Financial Officer and Treasurer (Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Independence Realty Trust, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Chairman of the Board, and Chief Executive Officer of the Company, certifies, to his knowledge, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2024


			By:			/s/ SCOTT F. SCHAEFFER
						Scott F. Schaeffer
						Chairman of the Board and Chief Executive Officer (Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Independence Realty Trust, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Chief Financial Officer and Treasurer of the Company, certifies, to his knowledge, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2024


			By:			/s/ JAMES J. SEBRA
						James J. Sebra
						Chief Financial Officer and Treasurer (Principal Financial Officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Jul. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-36041
Entity Registrant Name	INDEPENDENCE REALTY TRUST, INC.
Entity Incorporation, State or Country Code	MD
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
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	IRT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		225,120,618
Entity Central Index Key	0001466085
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investments in real estate:
Investments in real estate, at cost	$ 6,218,019	$ 6,259,212
Accumulated depreciation	(667,681)	(582,760)
Investments in real estate, net	5,550,338	5,676,452
Real estate held for sale	69,829	296,334
Investments in real estate under development	115,196	98,365
Cash and cash equivalents	21,034	22,852
Restricted cash	26,364	27,880
Investments in unconsolidated real estate entities	90,347	89,044
Other assets	28,731	39,245
Derivative assets	38,422	29,937
Intangible assets, net of accumulated amortization of $0 and $332, respectively	0	66
Total Assets	5,940,261	6,280,175
LIABILITIES AND EQUITY:
Indebtedness, net	2,202,961	2,426,788
Indebtedness associated with real estate held for sale	49,598	122,621
Accounts payable and accrued expenses	102,040	109,074
Accrued interest payable	6,795	7,917
Dividends payable	36,906	36,858
Other liabilities	8,421	9,723
Total Liabilities	2,406,721	2,712,981
Stockholders’ equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively	0	0
Common stock, $0.01 par value; 500,000,000 shares authorized, 225,122,235 and 224,706,731 shares issued and outstanding, including 402,249 and 288,250 unvested restricted common share awards, respectively	2,251	2,247
Additional paid-in capital	3,754,756	3,751,942
Accumulated other comprehensive income	34,380	25,513
Accumulated deficit	(392,627)	(348,405)
Total stockholders’ equity	3,398,760	3,431,297
Noncontrolling interests	134,780	135,897
Total Equity	3,533,540	3,567,194
Total Liabilities and Equity	$ 5,940,261	$ 6,280,175

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Intangible assets, accumulated amortization	$ 0	$ 332
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	225,122,235	224,706,731
Common stock, shares outstanding (in shares)	225,122,235	224,706,731
Unvested restricted common share awards (in shares)	402,249	288,250

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
REVENUE:
Rental and other property revenue	$ 158,104	$ 163,601	$ 318,436	$ 324,736
Other revenue	298	354	501	594
Total revenue	158,402	163,955	318,937	325,330
EXPENSES:
Property operating expenses	60,883	62,071	120,854	121,327
Property management expenses	7,666	6,818	15,165	13,189
General and administrative expenses	6,244	5,910	14,624	14,063
Depreciation and amortization expense	54,127	53,984	107,850	107,520
Casualty losses	465	680	2,767	831
Total expenses	129,385	129,463	261,260	256,930
Interest expense	(17,460)	(22,227)	(38,063)	(44,351)
(Loss on impairment) gain on sale of real estate assets, net	(152)	0	10,378	985
Gain on extinguishment of debt	0	0	203	0
Other (loss) income, net	0	(72)	(1)	21
Loss from investments in unconsolidated real estate entities	(850)	(1,205)	(1,679)	(1,981)
Restructuring costs	0	0	0	(3,213)
Net income:	10,555	10,988	28,515	19,861
Income allocated to noncontrolling interest	(201)	(279)	(585)	(503)
Net income allocable to common shares	$ 10,354	$ 10,709	$ 27,930	$ 19,358
Earnings per share:
Basic (in dollars per share)	$ 0.05	$ 0.05	$ 0.12	$ 0.09
Diluted (in dollars per share)	$ 0.05	$ 0.05	$ 0.12	$ 0.09
Weighted-average shares:
Basic (in shares)	224,793,229	224,422,515	224,710,259	224,325,246
Diluted (in shares)	225,418,825	225,073,890	225,403,082	225,088,261

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 10,555	$ 10,988	$ 28,515	$ 19,861
Other comprehensive income (loss):
Change in fair value of interest rate hedges	5,065	18,834	19,527	11,919
Realized (gains) losses on interest rate hedges reclassified to earnings	(5,189)	(4,749)	(10,428)	(8,126)
Total other comprehensive (loss) income	(124)	14,085	9,099	3,793
Comprehensive income before allocation to noncontrolling interests	10,431	25,073	37,614	23,654
Allocation to noncontrolling interests	(198)	(642)	(817)	(576)
Comprehensive income	$ 10,233	$ 24,431	$ 36,797	$ 23,078

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Total Stockholders’ Equity	Common Shares	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Accumulated Deficit)	Noncontrolling Interests
Beginning Balance (in Shares) at Dec. 31, 2022			224,064,940
Beginning balance at Dec. 31, 2022	$ 3,737,867	$ 3,596,664	$ 2,241	$ 3,751,056	$ 35,102	$ (191,735)	$ 141,203
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,872	8,648				8,648	224
Common dividends declared	(31,688)	(31,688)				(31,688)
Other comprehensive income	(10,290)	(10,001)			(10,001)		(289)
Stock compensation (in shares)			383,439
Stock compensation	4,778	4,778	$ 4	4,774
Repurchase of shares related to equity award tax withholding (in shares)			(36,109)
Repurchase of shares related to equity award tax withholding	(3,757)	(3,757)		(3,757)
Conversion of noncontrolling interest to common shares (in shares)			144,600
Conversion of noncontrolling interest to common shares	0	1,015	$ 1	1,014			(1,015)
Issuance of common shares, net	(13)	(13)		(13)
Distribution to noncontrolling interest declared	(834)						(834)
Ending Balance (in shares) at Mar. 31, 2023			224,556,870
Ending balance at Mar. 31, 2023	3,704,935	3,565,646	$ 2,246	3,753,074	25,101	(214,775)	139,289
Beginning Balance (in Shares) at Dec. 31, 2022			224,064,940
Beginning balance at Dec. 31, 2022	3,737,867	3,596,664	$ 2,241	3,751,056	35,102	(191,735)	141,203
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,861
Other comprehensive income	3,793
Ending Balance (in shares) at Jun. 30, 2023			224,697,889
Ending balance at Jun. 30, 2023	3,694,917	3,555,937	$ 2,247	3,754,839	38,823	(239,972)	138,980
Beginning Balance (in Shares) at Mar. 31, 2023			224,556,870
Beginning balance at Mar. 31, 2023	3,704,935	3,565,646	$ 2,246	3,753,074	25,101	(214,775)	139,289
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,988	10,709				10,709	279
Common dividends declared	(35,906)	(35,906)				(35,906)
Other comprehensive income	14,085	13,722			13,722		363
Stock compensation (in shares)			142,206
Stock compensation	1,785	1,785	$ 1	1,784
Repurchase of shares related to equity award tax withholding (in shares)			(1,187)
Repurchase of shares related to equity award tax withholding	(19)	(19)		(19)
Distribution to noncontrolling interest declared	(951)						(951)
Ending Balance (in shares) at Jun. 30, 2023			224,697,889
Ending balance at Jun. 30, 2023	$ 3,694,917	3,555,937	$ 2,247	3,754,839	38,823	(239,972)	138,980
Beginning Balance (in Shares) at Dec. 31, 2023	224,706,731		224,706,731
Beginning balance at Dec. 31, 2023	$ 3,567,194	3,431,297	$ 2,247	3,751,942	25,513	(348,405)	135,897
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,961	17,577				17,577	384
Common dividends declared	(36,187)	(36,187)				(36,187)
Other comprehensive income	9,224	8,988			8,988		236
Stock compensation (in shares)			391,667
Stock compensation	3,460	3,460	$ 4	3,456
Repurchase of shares related to equity award tax withholding (in shares)			(32,930)
Repurchase of shares related to equity award tax withholding	(1,598)	(1,598)		(1,598)
Conversion of noncontrolling interest to common shares (in shares)			4,928
Conversion of noncontrolling interest to common shares	0	33		33			(33)
Distribution to noncontrolling interest declared	(951)						(951)
Ending Balance (in shares) at Mar. 31, 2024			225,070,396
Ending balance at Mar. 31, 2024	$ 3,559,103	3,423,570	$ 2,251	3,753,833	34,501	(367,015)	135,533
Beginning Balance (in Shares) at Dec. 31, 2023	224,706,731		224,706,731
Beginning balance at Dec. 31, 2023	$ 3,567,194	3,431,297	$ 2,247	3,751,942	25,513	(348,405)	135,897
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,515
Other comprehensive income	$ 9,099
Conversion of noncontrolling interest to common shares (in shares)			4,928
Ending Balance (in shares) at Jun. 30, 2024	225,122,235		225,122,235
Ending balance at Jun. 30, 2024	$ 3,533,540	3,398,760	$ 2,251	3,754,756	34,380	(392,627)	134,780
Beginning Balance (in Shares) at Mar. 31, 2024			225,070,396
Beginning balance at Mar. 31, 2024	3,559,103	3,423,570	$ 2,251	3,753,833	34,501	(367,015)	135,533
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,555	10,354				10,354	201
Common dividends declared	(35,966)	(35,966)				(35,966)
Other comprehensive income	(124)	(121)			(121)		(3)
Stock compensation (in shares)			56,560
Stock compensation	1,940	1,940		1,940
Repurchase of shares related to equity award tax withholding (in shares)			(4,721)
Repurchase of shares related to equity award tax withholding	(945)	(945)		(945)
Issuance of common shares, net	(72)	(72)		(72)
Distribution to noncontrolling interest declared	$ (951)						(951)
Ending Balance (in shares) at Jun. 30, 2024	225,122,235		225,122,235
Ending balance at Jun. 30, 2024	$ 3,533,540	$ 3,398,760	$ 2,251	$ 3,754,756	$ 34,380	$ (392,627)	$ 134,780

Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Common dividends declared per share (in dollars per share)	$ 0.16	$ 0.16	$ 0.16	$ 0.14
Distribution to noncontrolling interest declared per share (in dollars per share)	$ 0.16	$ 0.16	$ 0.16	$ 0.14

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 10,555	$ 10,988	$ 28,515	$ 19,861
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation and amortization	54,127	53,984	107,850	107,520
Accretion of loan discounts and premiums, net			(4,679)	(5,493)
Amortization of deferred financing costs, net			1,379	1,763
Stock compensation expense			5,250	6,462
Gain on sale of real estate assets, net	152	0	(10,378)	(985)
Gain on extinguishment of debt	0	0	(203)	0
Amortization related to derivative instruments			614	644
Non-cash casualty losses			1,510	831
Equity in loss from investments in unconsolidated real estate entities	850	1,205	1,679	1,981
Other losses			1	891
Changes in assets and liabilities:
Other assets			5,145	4,186
Accounts payable and accrued expenses			(7,827)	(9,308)
Accrued interest payable			(1,122)	273
Other liabilities			(654)	(1,432)
Cash flow provided by operating activities			127,080	127,194
Cash flows from investing activities:
Investments in unconsolidated real estate entities			(2,982)	(21,729)
Disposition of real estate properties, net			320,606	35,557
Capital expenditures			(55,698)	(67,199)
Real estate development expenditures			(26,884)	(30,588)
Proceeds from insurance claims			3,511	0
Cash flow provided by (used in) investing activities			238,553	(83,959)
Cash flows from financing activities:
Proceeds from unsecured credit facility and term loans			131,000	125,000
Unsecured credit facility, secured credit facility and term loan repayments			(262,652)	(97,513)
Mortgage principal repayments and payoffs			(159,675)	(3,666)
Costs associated with debt payoffs			(663)	0
Payments for deferred financing costs			(357)	(60)
Distributions on common stock			(72,104)	(63,026)
Distributions to noncontrolling interests			(1,901)	(1,686)
Repurchase of shares related to equity award tax withholding			(2,543)	(3,776)
Costs from issuance of common stock, net			(72)	(13)
Cash flow used in financing activities			(368,967)	(44,740)
Net change in cash and cash equivalents, and restricted cash			(3,334)	(1,505)
Cash and cash equivalents, and restricted cash, beginning of period			50,732	44,017
Cash and cash equivalents, and restricted cash, end of the period	47,398	42,512	47,398	42,512
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets
Cash and cash equivalents	21,034	14,349	21,034	14,349
Restricted cash	26,364	28,163	26,364	28,163
Total cash, cash equivalents, and restricted cash, end of period	$ 47,398	$ 42,512	$ 47,398	$ 42,512

Organization	6 Months Ended
Organization	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	NOTE 1: Organization Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland real estate investment trust (“REIT”) which was formed on March 26, 2009. We are primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets. As of June 30, 2024, we owned and operated 110 (unaudited) multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 32,685 (unaudited) units across non-gateway U.S. markets, including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Nashville, Oklahoma City, Raleigh-Durham, and Tampa. In addition, as of June 30, 2024, we owned two investments in real estate under development in Denver, Colorado that will, upon completion, contain an aggregate of 621 (unaudited) units. As of June 30, 2024, we also owned interests in four unconsolidated joint ventures, two of which own and operate multifamily apartment communities that contain an aggregate of 810 (unaudited) units and two of which are developing multifamily apartment properties that will, upon completion, contain an aggregate of 653 (unaudited) units. We own all of our assets and conduct substantially all of our operations through Independence Realty Operating Partnership, LP, a Delaware limited partnership (“IROP”), of which we are the sole general partner. As used herein, the terms “we,” “our,” and “us” refer to IRT and, as required by context, IROP and its subsidiaries.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2: Summary of Significant Accounting Policies

a. Basis of Presentation

b. Principles of Consolidation

c. Use of Estimates

d. Cash and Cash Equivalents

e. Restricted Cash

f. Investments in Real Estate

Allocation of Purchase Price of Acquired Assets

Business Combinations

Impairment of Long-Lived Assets

Depreciation Expense

Casualty Related Costs

g. Investments in Real Estate Under Development

h. Investments in Unconsolidated Real Estate Entities

i. Revenue and Expenses

Rental and Other Property Revenue

j. Derivative Instruments

k. Fair Value of Financial Instruments


	As of June 30, 2024				As of December 31, 2023
Financial Instrument	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets
Cash and cash equivalents	$	21,034	$	21,034	$	22,852	$	22,852
Restricted cash	26,364		26,364		27,880		27,880
Derivative assets	38,422		38,422		29,937		29,937

Liabilities
Debt:
Unsecured Revolver	102,608		103,820		233,362		235,607
Unsecured Term loans	597,852		601,767		597,544		602,589
Secured credit facilities	602,944		548,346		606,099		554,198
Mortgages (1)	949,155		872,930		1,112,404		1,029,028

(1)Includes indebtedness associated with real estate held for sale of $49,598.

l. Deferred Financing Costs

m. Office Leases

n. Income Taxes

We have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2024 and 2023.

o. Restructuring Costs

p. Recent Accounting Pronouncements

Below is a brief description of recent accounting pronouncements that could have a material effect on our condensed consolidated financial statements.

Investments in Real Estate

6 Months Ended

Jun. 30, 2024

Real Estate [Abstract]

Investments in Real Estate

NOTE 3: Investments in Real Estate


	As of June 30, 2024		As of December 31, 2023		Depreciable Lives (In years)
Land	$	538,151	$	540,950	—
Building	5,210,283		5,288,956		40
Furniture, fixtures and equipment	469,585		429,306		5-10
Total investments in real estate	$	6,218,019	$	6,259,212
Accumulated depreciation	(667,681)		(582,760)
Investments in real estate, net	$	5,550,338	$	5,676,452

Portfolio Optimization and Deleveraging Strategy

Dispositions

The table below summarizes our dispositions for the six months ended June 30, 2024:


Property (1)	Market	Units (unaudited)	Sale Date	Sale Price		Gain on Sale (Loss on Impairment), Net
Villas of Kingwood (2)	Houston, TX	330	2/13/2024	$	53,700	$	62
Belmar Villas (2)	Denver, CO	318	2/13/2024	74,300		46
Hearthstone at City Center (2)	Denver, CO	360	3/12/2024	74,000		88
Villas at Huffmeister (2)	Houston, TX	294	3/25/2024	44,250		(415)
Westmont Commons	Asheville, NC	252	3/28/2024	49,875		25,856
Reserve at Creekside (2)	Chattanooga, TN	192	4/30/2024	28,500		(152)
		1,746		$	324,625	$	25,485

(1)Included in the Portfolio Optimization and Deleveraging Strategy.

The table below summarizes our property held for sale as of June 30, 2024 and subsequently sold.

Property

Market

Units (Unaudited)

Sale Date

Sale Price

Tapestry Park (1)

Birmingham, AL

354

7/17/2024

70,800

(1)A loss on impairment of $15,107 was recognized during the three months ended March 31, 2024.

Investments in Unconsolidated Real Estate

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Real Estate

NOTE 4: Investments in Unconsolidated Real Estate

The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2024 and December 31, 2023:


					Carrying Value As Of
Investments in Unconsolidated Real Estate Entities	Location	Units (1) (Unaudited)	IRT Ownership Interest		June 30, 2024		December 31, 2023
Metropolis at Innsbrook (2)	Richmond, VA	402	84.8	%	$	17,127	$	18,028
Views of Music City II (3)/ The Crockett (4)	Nashville, TN	408	50.0	%	11,805		11,632
Lakeline Station	Austin, TX	378	90.0	%	33,225		32,126
The Mustang	Dallas, TX	275	85.0	%	28,190		27,258
Total		1,463			$	90,347	$	89,044

(1)Represents the total number of units after development is complete and each property is placed in service.

Indebtedness

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Indebtedness

NOTE 5: Indebtedness

The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of June 30, 2024:


Consolidated Debt:	Outstanding Principal		Unamortized Debt Issuance Costs		Unamortized Loan (Discount)/Premiums		Carrying Amount		Type	Weighted Average Contractual Rate (3)	Weighted Average Hedged Effective Rate (4)	Weighted Average Maturity (in years)
Unsecured revolver (1)	$	103,478	$	(870)	$	—	$	102,608	Floating	6.6%	4.8%	1.6
Unsecured term loans	600,000		(2,148)		—		597,852		Floating	6.5%	4.0%	3.0
Secured credit facilities	585,635		(2,108)		19,417		602,944		Fixed	4.2%	4.4%	4.4
Mortgages (2)	935,258		(3,939)		17,836		949,155		Fixed	3.8%	4.0%	3.9
Total Consolidated Debt	$	2,224,371	$	(9,065)	$	37,253	$	2,252,559		4.8%	4.1%	3.7

(1)The unsecured revolver total capacity is $500,000, of which $103,478 was outstanding as of June 30, 2024.

(2)Includes indebtedness secured by real estate held for sale of $49,598.

(3)Represents the weighted average of the contractual interest rates in effect as of the three months ended June 30, 2024, without regard to any interest rate swaps or collars.

The following table contains summary information concerning our consolidated indebtedness as of June 30, 2024:


	Scheduled maturities on our consolidated indebtedness outstanding as of June 30, 2024
Consolidated Debt:	2024		2025		2026		2027		2028		Thereafter
Unsecured revolver	$	—	$	—	$	103,478	$	—	$	—	$	—
Unsecured term loans	—		—		200,000		—		400,000		—
Secured credit facilities	—		3,065		9,111		10,081		453,937		109,441
Mortgages (1)	17,479		133,855		128,696		13,300		180,852		461,076
Total	$	17,479	$	136,920	$	441,285	$	23,381	$	1,034,789	$	570,517

(1)Includes indebtedness secured by real estate held for sale.

The following table contains summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of December 31, 2023:


Consolidated Debt:	Outstanding Principal		Unamortized Debt Issuance Costs		Unamortized Loan (Discount)/Premiums		Carrying Amount		Type	Weighted Average Contractual Rate (3)	Weighted Average Hedged Effective Rate (4)	Weighted Average Maturity (in years)
Unsecured revolver (1)	$	234,479	$	(1,117)	$	—	$	233,362	Floating	6.6%	5.4%	2.1
Unsecured term loans	600,000		(2,456)		—		597,544		Floating	6.5%	3.9%	3.5
Secured credit facilities	586,286		(1,949)		21,762		606,099		Floating/Fixed	4.2%	4.6%	4.9
Mortgages (2)	1,094,933		(5,250)		22,721		1,112,404		Fixed	3.8%	4.0%	4.3
Total Consolidated Debt	$	2,515,698	$	(10,772)	$	44,483	$	2,549,409		4.8%	4.2%	4.0

(1)The unsecured revolver total capacity was $500,000, of which $234,479 was outstanding as of December 31, 2023.

(2)Includes indebtedness secured by real estate held for sale of $122,621.

(3)Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2023, without regard to any interest rate swaps or collars.

As of June 30, 2024, we were in compliance with all financial covenants contained in our consolidated indebtedness.

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

NOTE 6: Derivative Financial Instruments

The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024						As of December 31, 2023
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges:
Interest rate swaps	$	500,000	$	26,626	$	—	$	500,000	$	20,090	$	—
Interest rate collars	200,000		7,065		—		250,000		2,700		—
Forward interest rate collars	100,000		4,731		—		200,000		7,147		—
Total	$	800,000	$	38,422	—		$	950,000	$	29,937	$	—

For the three and six months ended June 30, 2023, we reclassified realized gains of $4,749 and $8,126 to earnings within interest expense.

Stockholders' Equity and Noncontrolling Interests	6 Months Ended
Stockholders' Equity and Noncontrolling Interests	Jun. 30, 2024
Equity [Abstract]
Stockholders' Equity and Noncontrolling Interests	NOTE 7: Stockholders' Equity and Noncontrolling Interests Stockholders’ Equity On June 10, 2024, our board of directors declared a dividend of $0.16 per share on our common stock, which was paid on July 19, 2024 to common stockholders of record as of June 28, 2024. On March 11, 2024, our board of directors declared a dividend of $0.16 per share on our common stock, which was paid on April 19, 2024 to common stockholders of record as of March 29, 2024. On May 18, 2022, our board of directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250,000 in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time. During the three and six months ended June 30, 2024, and 2023, we had no repurchases of shares under the Stock Repurchase Program. As of June 30, 2024, we had $250,000 in shares of our common stock remaining authorized for purchase under the Stock Repurchase Program. On June 14, 2023, we replaced our previous shelf registration statement with our new shelf registration statement. On July 28, 2023, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock under our shelf registration statement having an aggregate offering price of up to $450,000 (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. There were no forward sale transactions as of June 30, 2024, and no shares of our common stock were sold under the ATM Program during the three and six months ended June 30, 2024. Noncontrolling Interest During the six months ended June 30, 2024, holders of IROP units exchanged 4,928 units for 4,928 shares of our common stock. As of June 30, 2024, 5,941,643 IROP units held by unaffiliated third parties remain outstanding. On June 10, 2024, our board of directors declared a dividend of $0.16 per IROP unit, which was paid on July 19, 2024 to IROP unit holders of record as of June 28, 2024. On March 11, 2024, our board of directors declared a dividend of $0.16 per IROP unit, which was paid on April 19, 2024 to IROP unit holders of record as of March 29, 2024.

Equity Compensation Plans

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Equity Compensation Plans

NOTE 8: Equity Compensation Plans

Long Term Incentive Plan

issued under the 2022 Incentive Plan, subject to customary adjustment for stock splits, reverse stock splits and similar corporate events or transactions affecting shares of our common stock.


	2024
	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Balance, January 1,	416,735	$	18.70
Granted	382,077	14.95
Vested	(218,091)	13.80
Forfeited	(29,138)	16.50
Balance, June 30,(1)	551,583	$	18.16


(1)			The outstanding award balances above include 149,334 and 127,989 RSUs as of June 30, 2024 and December 31, 2023, respectively.

Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 9: Earnings Per Share

The following table presents a reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	10,555	$	10,988	$	28,515	$	19,861
Income allocated to noncontrolling interest	(201)		(279)		(585)		(503)
Net income allocable to common shares	$	10,354	$	10,709	$	27,930	$	19,358
Weighted-average shares outstanding—Basic	224,793,229		224,422,515		224,710,259		224,325,246
Weighted-average shares outstanding—Diluted	225,418,825		225,073,890		225,403,082		225,088,261
Earnings per share—Basic	$	0.05	$	0.05	$	0.12	$	0.09
Earnings per share—Diluted	$	0.05	$	0.05	$	0.12	$	0.09

Other Disclosures	6 Months Ended
Other Disclosures	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Other Disclosures	NOTE 10: Other Disclosures Litigation We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. See Part II, Item 1, Legal Proceedings, for additional information regarding our legal proceedings. Loss Contingencies We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income allocable to common shares	$ 10,354	$ 10,709	$ 27,930	$ 19,358

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe accompanying unaudited interim condensed consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our condensed consolidated financial position and condensed consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. The Company evaluated subsequent events through the date its financial statements were issued.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents.
Restricted Cash	Restricted CashRestricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events.
Investments in Real Estate	Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, necessary approvals are obtained, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets In accordance with FASB ASC Topic 805 (“ASC 805”), we evaluate our real estate acquisitions to determine if they should be accounted for as a business or as a group of assets. The evaluation includes an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the acquisition is not a business. The properties we have acquired met the screen test and are accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to these intangible assets is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2024 and 2023, we did not acquire any in-place leases. For each of the three and six months ended June 30, 2024, we recorded $0, and $66, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2023, we recorded $0 and $399, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2024, we wrote-off fully amortized intangible assets of $0 and $398, respectively. For the three and six months ended June 30, 2023, we wrote-off fully amortized intangible assets of $0 and $1,099, respectively. Business Combinations For properties we acquire or transactions we enter into that are accounted for as business combinations, we apply the acquisition method of accounting under ASC 805, which requires the identification of the acquiror, the determination of the acquisition date, and the recognition and measurement, at fair value, of the assets acquired and liabilities assumed. To the extent that the fair value of net assets acquired differs from the fair value of consideration paid, ASC 805 requires the recognition of goodwill or a gain from a bargain purchase price, if any. Impairment of Long-Lived Assets Management evaluates the recoverability of our investments in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. We review our long-lived assets on an ongoing basis and evaluate the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recognized when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows and estimated fair value used in the impairment analysis are determined based on our plans for the respective assets, including the expected hold period, and our assessment of market and economic conditions. The estimates consider matters such as current and historical rental rates and collection levels, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in our plans or views of market and economic conditions may result in adjustments to estimated future cash flows, which could lead to recognition of impairment losses. These losses, as guided by the applicable accounting standards, could be significant. For each of the three and six months ended June 30, 2024, we recorded impairment charges of $0 and $15,107, respectively, on account of real estate classified as held for sale and sold properties. For the three and six months ended June 30, 2023, we did not incur an impairment charge. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five to ten years for furniture, fixtures, and equipment. For the three and six months ended June 30, 2024, we recorded $53,757 and $107,080 of depreciation expense, respectively. For the three and six months ended June 30, 2023, we recorded $53,700 and $106,587 of depreciation expense, respectively. During the three and six months ended June 30, 2024, we wrote-off fully depreciated fixed assets of $8,328 and $15,604, respectively. During the three and six months ended June 30, 2023, we wrote-off fully depreciated fixed assets of $5,114 and $8,033, respectively. Casualty Related Costs Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. Sometimes, a portion of these losses are not fully covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty losses (gains), net when the proceeds are received. During the three and six months ended June 30, 2024, we recorded $465 and $2,767 of net casualty losses, respectively. During the three and six months ended June 30, 2023, we recorded $680 and $831 of net casualty losses, respectively.
Investments in Real Estate Under Development	Investments in Real Estate Under DevelopmentWe capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate.
Investments in Unconsolidated Real Estate Entities	Investments in Unconsolidated Real Estate EntitiesWe have entered into joint ventures with unrelated third parties to acquire, develop, own, operate, and manage real estate assets. Our joint ventures are funded with a combination of debt and equity. We will consolidate entities that we control as well as any variable interest entity ("VIE") where we are the primary beneficiary. Under the VIE model, we consolidate an entity when we have the ability to direct the activities of the VIE and the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, we consolidate an entity when we control the entity through ownership of a majority voting interest. We separately analyzed the initial accounting for each of our four investments in unconsolidated real estate entities and concluded that each investment is a voting interest entity. Our equity interest varies for each of our four investments in unconsolidated real estate entities between 50% to 90% but, in each case, we share control of the major decisions that most significantly impact the joint ventures with our partners. Since we do not control the joint venture through our ownership interest, they are accounted for under the equity method of accounting, and are included in investments in unconsolidated real estate entities on the condensed consolidated balance sheets. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses.
Revenue and Expenses	Revenue and Expenses Rental and Other Property Revenue We apply FASB ASC Topic 842, “Leases” (“ASC 842”) with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue.
Derivative Instruments	Derivative Instruments We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we, and our affiliates, may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations. In accordance with FASB ASC Topic 815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our condensed consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivatives not designated as hedges, the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether or not the derivative is highly effective in offsetting changes in the designated interest rate risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness.
Fair Value of Financial Instruments	Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: •Level 1: Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment. •Level 2: Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly. •Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. FASB ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value. Given that cash and cash equivalents and restricted cash are short term in nature with limited fair value volatility, the carrying amount is deemed to be a reasonable approximation of fair value and the fair value input is classified as a Level 1 fair value measurement. The fair value input for derivatives is classified as a Level 2 fair value measurement within the fair value hierarchy. The fair value of our unsecured credit facility, term loans, and mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity.
Deferred Financing Costs	Deferred Financing Costs Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method.
Office Leases	Office Leases In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of June 30, 2024 and December 31, 2023, we had $2,085 and $2,408, respectively, of operating lease right-of-use assets and $2,355 and $2,701, respectively, of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our condensed consolidated balance sheets. During the three and six months ended June 30, 2024, we recorded $189 and $409, respectively, of total operating lease expense which is recorded within property management expense and general and administrative expenses in our condensed consolidated statements of operations. During the three and six months ended June 30, 2023, we recorded $202 and $412, respectively, of total operating lease expense which was recorded within property management expenses and general and administrative expenses in our condensed consolidated statements of operations.
Income Taxes	Income Taxes We have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2024 and 2023. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes.
Restructuring Costs	Restructuring CostsDuring the three months ended March 31, 2023, we reorganized certain departments in our organization impacting a limited number of employees. The impacted employees were provided severance packages that included cash severance payments and the accelerated vesting of performance share units and restricted stock awards, as applicable. In accordance with ASC 712 “Compensation – Nonretirement Postemployment Benefits”, we recognized the full amount of restructuring costs of $3,213 during the three months ended March 31, 2023, which is presented in the restructuring costs line on the condensed consolidated statement of operations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our condensed consolidated financial statements. In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. Beginning in the first quarter of 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 has no impact on the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2024. In November 2023, the FASB issued ASU 2023-07, Segment Reporting, Topic 280, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which was issued to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. Early adoption of ASU 2023-07 is permitted and the Company is still evaluating the impact of adopting this ASU.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Carrying Amount and Fair Value of Financial Instrument

The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated:


	As of June 30, 2024				As of December 31, 2023
Financial Instrument	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets
Cash and cash equivalents	$	21,034	$	21,034	$	22,852	$	22,852
Restricted cash	26,364		26,364		27,880		27,880
Derivative assets	38,422		38,422		29,937		29,937

Liabilities
Debt:
Unsecured Revolver	102,608		103,820		233,362		235,607
Unsecured Term loans	597,852		601,767		597,544		602,589
Secured credit facilities	602,944		548,346		606,099		554,198
Mortgages (1)	949,155		872,930		1,112,404		1,029,028

(1)Includes indebtedness associated with real estate held for sale of $49,598.

Investments in Real Estate (Tables)

6 Months Ended

Jun. 30, 2024

Real Estate [Abstract]

Summary of Investments in Real Estate

The following table summarizes our investments in real estate, excluding one property we classified as held for sale:


	As of June 30, 2024		As of December 31, 2023		Depreciable Lives (In years)
Land	$	538,151	$	540,950	—
Building	5,210,283		5,288,956		40
Furniture, fixtures and equipment	469,585		429,306		5-10
Total investments in real estate	$	6,218,019	$	6,259,212
Accumulated depreciation	(667,681)		(582,760)
Investments in real estate, net	$	5,550,338	$	5,676,452

Summary of Held for Sale Property

The table below summarizes our dispositions for the six months ended June 30, 2024:


Property (1)	Market	Units (unaudited)	Sale Date	Sale Price		Gain on Sale (Loss on Impairment), Net
Villas of Kingwood (2)	Houston, TX	330	2/13/2024	$	53,700	$	62
Belmar Villas (2)	Denver, CO	318	2/13/2024	74,300		46
Hearthstone at City Center (2)	Denver, CO	360	3/12/2024	74,000		88
Villas at Huffmeister (2)	Houston, TX	294	3/25/2024	44,250		(415)
Westmont Commons	Asheville, NC	252	3/28/2024	49,875		25,856
Reserve at Creekside (2)	Chattanooga, TN	192	4/30/2024	28,500		(152)
		1,746		$	324,625	$	25,485

(1)Included in the Portfolio Optimization and Deleveraging Strategy.

The table below summarizes our property held for sale as of June 30, 2024 and subsequently sold.

Property

Market

Units (Unaudited)

Sale Date

Sale Price

Tapestry Park (1)

Birmingham, AL

354

7/17/2024

70,800

(1)A loss on impairment of $15,107 was recognized during the three months ended March 31, 2024.

Investments in Unconsolidated Real Estate (Tables)

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Summary of Investments in Unconsolidated Real Estate

The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2024 and December 31, 2023:


					Carrying Value As Of
Investments in Unconsolidated Real Estate Entities	Location	Units (1) (Unaudited)	IRT Ownership Interest		June 30, 2024		December 31, 2023
Metropolis at Innsbrook (2)	Richmond, VA	402	84.8	%	$	17,127	$	18,028
Views of Music City II (3)/ The Crockett (4)	Nashville, TN	408	50.0	%	11,805		11,632
Lakeline Station	Austin, TX	378	90.0	%	33,225		32,126
The Mustang	Dallas, TX	275	85.0	%	28,190		27,258
Total		1,463			$	90,347	$	89,044

(1)Represents the total number of units after development is complete and each property is placed in service.

Indebtedness (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Summary of Information Concerning Indebtedness

The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of June 30, 2024:


Consolidated Debt:	Outstanding Principal		Unamortized Debt Issuance Costs		Unamortized Loan (Discount)/Premiums		Carrying Amount		Type	Weighted Average Contractual Rate (3)	Weighted Average Hedged Effective Rate (4)	Weighted Average Maturity (in years)
Unsecured revolver (1)	$	103,478	$	(870)	$	—	$	102,608	Floating	6.6%	4.8%	1.6
Unsecured term loans	600,000		(2,148)		—		597,852		Floating	6.5%	4.0%	3.0
Secured credit facilities	585,635		(2,108)		19,417		602,944		Fixed	4.2%	4.4%	4.4
Mortgages (2)	935,258		(3,939)		17,836		949,155		Fixed	3.8%	4.0%	3.9
Total Consolidated Debt	$	2,224,371	$	(9,065)	$	37,253	$	2,252,559		4.8%	4.1%	3.7

(1)The unsecured revolver total capacity is $500,000, of which $103,478 was outstanding as of June 30, 2024.

(2)Includes indebtedness secured by real estate held for sale of $49,598.

(3)Represents the weighted average of the contractual interest rates in effect as of the three months ended June 30, 2024, without regard to any interest rate swaps or collars.

The following table contains summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of December 31, 2023:


Consolidated Debt:	Outstanding Principal		Unamortized Debt Issuance Costs		Unamortized Loan (Discount)/Premiums		Carrying Amount		Type	Weighted Average Contractual Rate (3)	Weighted Average Hedged Effective Rate (4)	Weighted Average Maturity (in years)
Unsecured revolver (1)	$	234,479	$	(1,117)	$	—	$	233,362	Floating	6.6%	5.4%	2.1
Unsecured term loans	600,000		(2,456)		—		597,544		Floating	6.5%	3.9%	3.5
Secured credit facilities	586,286		(1,949)		21,762		606,099		Floating/Fixed	4.2%	4.6%	4.9
Mortgages (2)	1,094,933		(5,250)		22,721		1,112,404		Fixed	3.8%	4.0%	4.3
Total Consolidated Debt	$	2,515,698	$	(10,772)	$	44,483	$	2,549,409		4.8%	4.2%	4.0

(1)The unsecured revolver total capacity was $500,000, of which $234,479 was outstanding as of December 31, 2023.

(2)Includes indebtedness secured by real estate held for sale of $122,621.

(3)Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2023, without regard to any interest rate swaps or collars.

Summary of Maturities of Long-term Debt

The following table contains summary information concerning our consolidated indebtedness as of June 30, 2024:


	Scheduled maturities on our consolidated indebtedness outstanding as of June 30, 2024
Consolidated Debt:	2024		2025		2026		2027		2028		Thereafter
Unsecured revolver	$	—	$	—	$	103,478	$	—	$	—	$	—
Unsecured term loans	—		—		200,000		—		400,000		—
Secured credit facilities	—		3,065		9,111		10,081		453,937		109,441
Mortgages (1)	17,479		133,855		128,696		13,300		180,852		461,076
Total	$	17,479	$	136,920	$	441,285	$	23,381	$	1,034,789	$	570,517

(1)Includes indebtedness secured by real estate held for sale.

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Aggregate Amount and Estimated Net Fair Values of Our Derivative Instruments

The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024						As of December 31, 2023
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges:
Interest rate swaps	$	500,000	$	26,626	$	—	$	500,000	$	20,090	$	—
Interest rate collars	200,000		7,065		—		250,000		2,700		—
Forward interest rate collars	100,000		4,731		—		200,000		7,147		—
Total	$	800,000	$	38,422	—		$	950,000	$	29,937	$	—

Equity Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Restricted Common Share Awards and RSU of Incentive Plan

A summary of restricted and unrestricted common share awards and RSU activity is presented below.


	2024
	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Balance, January 1,	416,735	$	18.70
Granted	382,077	14.95
Vested	(218,091)	13.80
Forfeited	(29,138)	16.50
Balance, June 30,(1)	551,583	$	18.16


(1)			The outstanding award balances above include 149,334 and 127,989 RSUs as of June 30, 2024 and December 31, 2023, respectively.

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Summary of Reconciliation of Basic and Diluted Earnings (Loss) Per Share

The following table presents a reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	10,555	$	10,988	$	28,515	$	19,861
Income allocated to noncontrolling interest	(201)		(279)		(585)		(503)
Net income allocable to common shares	$	10,354	$	10,709	$	27,930	$	19,358
Weighted-average shares outstanding—Basic	224,793,229		224,422,515		224,710,259		224,325,246
Weighted-average shares outstanding—Diluted	225,418,825		225,073,890		225,403,082		225,088,261
Earnings per share—Basic	$	0.05	$	0.05	$	0.12	$	0.09
Earnings per share—Diluted	$	0.05	$	0.05	$	0.12	$	0.09

Organization (Details)	6 Months Ended
Organization (Details)	Jun. 30, 2024 jointVenture property unit
Real Estate Properties [Line Items]
Number of multifamily properties owned \| property	110
Number of unconsolidated joint venture \| jointVenture	1
Number of units located with multifamily properties	32,685
Number of joint ventures \| jointVenture	4
Number of developing multifamily apartment community \| jointVenture	2
Number of units in developing multifamily apartment community	810
Number of operating property \| property	2
Number of units in operating property	653
Denver Colorado
Real Estate Properties [Line Items]
Number of multifamily properties owned \| property	2
Number of units located with multifamily properties	621

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended					6 Months Ended
	Jun. 30, 2024 USD ($) investment property	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) property	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2024 USD ($) investment property	Jun. 30, 2023 USD ($)
Real Estate Properties [Line Items]
Restricted cash	$ 26,364,000		$ 27,880,000			$ 26,364,000
Acquisition of above-market in-place leases, amortization period	6 months					6 months
Amortization expense for intangible assets	$ 0			$ 0		$ 66,000	$ 399,000
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]	Depreciation and amortization expense			Depreciation and amortization expense		Depreciation and amortization expense	Depreciation and amortization expense
Write-off of fully amortized intangible assets	$ 0			$ 0		$ 398,000	$ 1,099,000
Impairment charges	0			0		15,107,000	0
Depreciation expense	53,757,000			53,700,000		107,080,000	106,587,000
Fully depreciated fixed assets, wrote-off	8,328,000			5,114,000		15,604,000	8,033,000
Net casualty losses	465,000			680,000		2,767,000	831,000
Interest costs capitalized	1,771,000			1,715,000		3,341,000	3,168,000
Investments in real estate under development	$ 115,196,000		98,365,000			$ 115,196,000
Number of investment in unconsolidated real estate entities \| investment	4					4
Impairment of real estate		$ 15,107,000	32,956,000			$ 15,107,000
Right-of-use assets	$ 2,085,000		2,408,000			$ 2,085,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets					Other assets
Lease liability	$ 2,355,000		2,701,000			$ 2,355,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities					Other liabilities
Total operating lease expense	$ 189,000			202,000		$ 409,000	412,000
Income tax expense	0			0		0	0
Restructuring costs	0			0	$ 3,213,000	0	3,213,000
Investments In Unconsolidated Real Estate Entities
Real Estate Properties [Line Items]
Interest costs capitalized	1,190,000			$ 1,089,000		2,462,000	$ 2,095,000
Real Estate Investment
Real Estate Properties [Line Items]
Investments in real estate under development	$ 87,061,000		$ 77,520,000			$ 87,061,000
Denver Colorado
Real Estate Properties [Line Items]
Number of multifamily properties owned \| property	2		2			2
Nashville, TN \| Views of Music City / The Crockett
Real Estate Properties [Line Items]
IRT Ownership Interest	50.00%					50.00%
Austin, TX \| Lakeline Station
Real Estate Properties [Line Items]
IRT Ownership Interest	90.00%					90.00%
Building and Building Improvements
Real Estate Properties [Line Items]
Depreciable Lives (In years)	40 years					40 years
Minimum \| Equipment and Fixtures
Real Estate Properties [Line Items]
Depreciable Lives (In years)	5 years					5 years
Maximum
Real Estate Properties [Line Items]
Operating lease term	10 years					10 years
Maximum \| Equipment and Fixtures
Real Estate Properties [Line Items]
Depreciable Lives (In years)	10 years					10 years

Summary of Significant Accounting Policies - Summary of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Assets
Cash and cash equivalents, Carrying Amount	$ 21,034	$ 22,852	$ 14,349
Restricted cash, Carrying Amount	26,364	27,880
Derivative assets, Carrying Amount	38,422	29,937
Cash and cash equivalents, Estimated Fair Value	21,034	22,852
Restricted cash, Estimated Fair Value	26,364	27,880
Derivative assets, Estimated Fair Value	38,422	29,937
Liabilities
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount	2,252,559	2,549,409
Indebtedness associated with real estate held for sale	49,598	122,621
Unsecured revolver
Liabilities
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount	102,608	233,362
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value	103,820	235,607
Unsecured term loans
Liabilities
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount	597,852	597,544
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value	601,767	602,589
Secured credit facilities
Liabilities
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount	602,944	606,099
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value	548,346	554,198
Mortgages
Liabilities
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount	949,155	1,112,404
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value	$ 872,930	$ 1,029,028

Investments in Real Estate - Additional Information (Detail) $ in Thousands				6 Months Ended
	Jul. 17, 2024 USD ($)	Apr. 30, 2024 USD ($)	Oct. 26, 2023 property market	Jun. 30, 2024 USD ($) unit property
Real Estate Properties [Line Items]
Number of multifamily properties owned				110
Number of properties owned by joint ventures				1
Number of units located with multifamily properties \| unit				32,685
Number of properties targeted for sale			10	10
Number of markets \| market			7
Total gross sales price \| $		$ 28,500		$ 525,300
Repayments of debt \| $				$ 517,100
Tapestry Park
Real Estate Properties [Line Items]
Number of units located with multifamily properties				354
Number of real estate properties				1
Subsequent Event \| Tapestry Park
Real Estate Properties [Line Items]
Total gross sales price \| $	$ 70,800

Investments in Real Estate - Summary of Investments in Real Estate (Detail) $ in Thousands	Jun. 30, 2024 USD ($) property	Dec. 31, 2023 USD ($)
Real Estate Properties [Line Items]
Land	$ 538,151	$ 540,950
Building	5,210,283	5,288,956
Furniture, fixtures and equipment	469,585	429,306
Total investments in real estate	6,218,019	6,259,212
Accumulated depreciation	(667,681)	(582,760)
Investments in real estate, net	$ 5,550,338	$ 5,676,452
Discontinued Operations, Held-for-Sale
Real Estate Properties [Line Items]
Number of real estate properties \| property	1
Building
Real Estate Properties [Line Items]
Depreciable Lives (In years)	40 years
Furniture, fixtures and equipment \| Minimum
Real Estate Properties [Line Items]
Depreciable Lives (In years)	5 years
Furniture, fixtures and equipment \| Maximum
Real Estate Properties [Line Items]
Depreciable Lives (In years)	10 years

Investments in Real Estate - Summary of Held for Sale Property (Details) $ in Thousands							3 Months Ended		6 Months Ended
	Jul. 17, 2024 USD ($) housingUnit	Apr. 30, 2024 USD ($) housingUnit	Mar. 28, 2024 USD ($) housingUnit	Mar. 25, 2024 USD ($) housingUnit	Mar. 12, 2024 USD ($) housingUnit	Feb. 13, 2024 USD ($) housingUnit	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2024 USD ($) housingUnit
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit									1,746
Sale Price									$ 324,625
Gain on Sale (Loss on Impairment), Net									25,485
Impairment of real estate							$ 15,107	$ 32,956	$ 15,107
Gain related to property includes defeasance costs								$ 1,105
Villas of Kingwood
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit						330
Sale Price						$ 53,700
Gain on Sale (Loss on Impairment), Net						$ 62
Belmar Villas
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit						318
Sale Price						$ 74,300
Gain on Sale (Loss on Impairment), Net						$ 46
Hearthstone at City Center
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit					360
Sale Price					$ 74,000
Gain on Sale (Loss on Impairment), Net					$ 88
Villas at Huffmeister
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit				294
Sale Price				$ 44,250
Gain on Sale (Loss on Impairment), Net				$ (415)
Westmont Commons
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit			252
Sale Price			$ 49,875
Gain on Sale (Loss on Impairment), Net			$ 25,856
Reserve at Creekside
Real Estate Properties [Line Items]
Units (unaudited) \| housingUnit		192
Sale Price		$ 28,500
Gain on Sale (Loss on Impairment), Net		$ (152)
Tapestry Park \| Subsequent Event
Real Estate Properties [Line Items]
Sale Price	$ 70,800
Units (unaudited) \| housingUnit	354

Investments in Unconsolidated Real Estate - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Aggregate land and construction in progress costs capitalized	$ 318,110		$ 318,110
Aggregate construction debt	203,789		203,789
Equity in loss from investments in unconsolidated real estate entities	$ 850	$ 1,205	$ 1,679	$ 1,981

Investments in Unconsolidated Real Estate - Summary of Investments In Unconsolidated Real Estate Entities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) unit	Jun. 21, 2024	Dec. 31, 2023 USD ($)
Schedule of Equity Method Investments [Line Items]
Units	1,463
Investments in unconsolidated real estate entities \| $	$ 90,347		$ 89,044
Metropolis at Innsbrook
Schedule of Equity Method Investments [Line Items]
Number of units placed in service	402
Required occupancy for call option	90.00%
Required occupancy to sell property		85.00%
Metropolis at Innsbrook \| Richmond, VA
Schedule of Equity Method Investments [Line Items]
Units	402
IRT Ownership Interest	84.80%
Investments in unconsolidated real estate entities \| $	$ 17,127		18,028
Views of Music City / The Crockett \| Nashville, TN
Schedule of Equity Method Investments [Line Items]
Units	408
IRT Ownership Interest	50.00%
Investments in unconsolidated real estate entities \| $	$ 11,805		11,632
Lakeline Station \| Austin, TX
Schedule of Equity Method Investments [Line Items]
Units	378
IRT Ownership Interest	90.00%
Investments in unconsolidated real estate entities \| $	$ 33,225		32,126
The Mustang \| Dallas, TX
Schedule of Equity Method Investments [Line Items]
Units	275
IRT Ownership Interest	85.00%
Investments in unconsolidated real estate entities \| $	$ 28,190		$ 27,258
Views of Music City II
Schedule of Equity Method Investments [Line Items]
Number of remaining units placed in service	209
Crockett
Schedule of Equity Method Investments [Line Items]
Number of remaining units placed in service	199

Indebtedness - Summary of Information Concerning Indebtedness (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Outstanding Principal	$ 2,224,371,000	$ 2,515,698,000
Unamortized Debt Issuance Costs	(9,065,000)	(10,772,000)
Unamortized Loan (Discount)/Premiums	37,253,000	44,483,000
Carrying Amount	$ 2,252,559,000	$ 2,549,409,000
Weighted Average Contractual Rate	4.80%	4.80%
Weighted Average Hedged Effective Rate	4.10%	4.20%
Weighted Average Maturity (in years)	3 years 8 months 12 days	4 years
Indebtedness associated with real estate held for sale	$ 49,598,000	$ 122,621,000
Unsecured revolver
Debt Instrument [Line Items]
Outstanding Principal	103,478,000	234,479,000
Unamortized Debt Issuance Costs	(870,000)	(1,117,000)
Unamortized Loan (Discount)/Premiums	0	0
Carrying Amount	$ 102,608,000	$ 233,362,000
Weighted Average Contractual Rate	6.60%	6.60%
Weighted Average Hedged Effective Rate	4.80%	5.40%
Weighted Average Maturity (in years)	1 year 7 months 6 days	2 years 1 month 6 days
Credit facility borrowing capacity	$ 500,000,000	$ 500,000,000
Unsecured term loans
Debt Instrument [Line Items]
Outstanding Principal	600,000,000	600,000,000
Unamortized Debt Issuance Costs	(2,148,000)	(2,456,000)
Unamortized Loan (Discount)/Premiums	0	0
Carrying Amount	$ 597,852,000	$ 597,544,000
Weighted Average Contractual Rate	6.50%	6.50%
Weighted Average Hedged Effective Rate	4.00%	3.90%
Weighted Average Maturity (in years)	3 years	3 years 6 months
Secured credit facilities
Debt Instrument [Line Items]
Outstanding Principal	$ 585,635,000	$ 586,286,000
Unamortized Debt Issuance Costs	(2,108,000)	(1,949,000)
Unamortized Loan (Discount)/Premiums	19,417,000	21,762,000
Carrying Amount	$ 602,944,000	$ 606,099,000
Weighted Average Contractual Rate	4.20%	4.20%
Weighted Average Hedged Effective Rate	4.40%	4.60%
Weighted Average Maturity (in years)	4 years 4 months 24 days	4 years 10 months 24 days
Mortgages
Debt Instrument [Line Items]
Outstanding Principal	$ 935,258,000	$ 1,094,933,000
Unamortized Debt Issuance Costs	(3,939,000)	(5,250,000)
Unamortized Loan (Discount)/Premiums	17,836,000	22,721,000
Carrying Amount	$ 949,155,000	$ 1,112,404,000
Weighted Average Contractual Rate	3.80%	3.80%
Weighted Average Hedged Effective Rate	4.00%	4.00%
Weighted Average Maturity (in years)	3 years 10 months 24 days	4 years 3 months 18 days

Indebtedness - Summary of Maturity of Indebtedness (Detail) $ in Thousands	Jun. 30, 2024 USD ($)
Debt Instrument [Line Items]
2024	$ 17,479
2025	136,920
2026	441,285
2027	23,381
2028	1,034,789
Thereafter	570,517
Mortgages
Debt Instrument [Line Items]
2024	17,479
2025	133,855
2026	128,696
2027	13,300
2028	180,852
Thereafter	461,076
Unsecured revolver
Debt Instrument [Line Items]
2024	0
2025	0
2026	103,478
2027	0
2028	0
Thereafter	0
Unsecured term loans
Debt Instrument [Line Items]
2024	0
2025	0
2026	200,000
2027	0
2028	400,000
Thereafter	0
Secured credit facilities
Debt Instrument [Line Items]
2024	0
2025	3,065
2026	9,111
2027	10,081
2028	453,937
Thereafter	$ 109,441

Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Values of Derivative Instruments (Detail) - Cash Flow Hedge - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments Gain Loss [Line Items]
Notional	$ 800,000	$ 950,000
Fair Value of Assets	38,422	29,937
Fair Value of Liabilities	0	0
Interest rate swaps
Derivative Instruments Gain Loss [Line Items]
Notional	500,000	500,000
Fair Value of Assets	26,626	20,090
Fair Value of Liabilities	0	0
Interest rate collars
Derivative Instruments Gain Loss [Line Items]
Notional	200,000	250,000
Fair Value of Assets	7,065	2,700
Fair Value of Liabilities	0	0
Forward interest rate collars
Derivative Instruments Gain Loss [Line Items]
Notional	100,000	200,000
Fair Value of Assets	4,731	7,147
Fair Value of Liabilities	$ 0	$ 0

Derivative Financial Instruments - Additional Information (Detail) - Interest Rate Swap and Collars - Cash Flow Hedge - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments Gain Loss [Line Items]
Realized gains on interest rate hedges reclassified to earnings	$ 5,189	$ 4,749	$ 10,428	$ 8,126
Amount expect to be reclassified out of accumulated other comprehensive income into earnings in future	$ (17,161)		$ (17,161)

Stockholders' Equity and Noncontrolling Interests (Detail) - USD ($)			3 Months Ended				6 Months Ended
	Jun. 10, 2024	Mar. 11, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jul. 28, 2023	May 18, 2022
Class Of Stock [Line Items]
Dividend declared per share (in dollars per share)			$ 0.16	$ 0.16	$ 0.16	$ 0.14
Stock repurchase program, authorized amount										$ 250,000,000
Number of shares repurchased (in shares)			0		0		0	0
Amount remaining authorized for purchase under the stock repurchase program			$ 250,000,000				$ 250,000,000
At-the-market agreement to sell common shares, maximum offer price									$ 450,000,000
Number of IROP unites exchanged (in shares)							4,928
IROP Units outstanding (in shares)			5,941,643				5,941,643
Common Shares
Class Of Stock [Line Items]
Conversion of noncontrolling interest to common shares (in shares)				4,928		144,600	4,928
ATM Program
Class Of Stock [Line Items]
Common stock, capital shares reserved for future issuance (in shares)			0				0
Dividend Declared
Class Of Stock [Line Items]
Dividend declared per share (in dollars per share)	$ 0.16	$ 0.16

Equity Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands		6 Months Ended
	Feb. 26, 2024	Jun. 30, 2024	Jun. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized		8,000,000
Additional shares authorized		1,280,610
Performance Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting period	3 years
Performance Share Units \| Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares awarded (in shares)	218,379
Restricted Stock and Performance Shares Units \| Employee
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock compensation expense		$ 2,525	$ 2,677
Minimum \| Performance Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation arrangement by share based payment award number share issuable percentage	0.00%
Maximum \| Performance Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation arrangement by share based payment award number share issuable percentage	150.00%
Long Term Incentive Plan \| Performance Share Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards performance period	3 years
Awards service period	1 year
Long Term Incentive Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting period		2 years
Long Term Incentive Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting period		4 years

Equity Compensation Plans - Summary of Restricted Common Share Awards and RSU of Incentive Plan (Detail)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Restricted Stock And RSUs
Number of Shares
Number of Shares, beginning balance (in shares)	416,735
Granted (in shares)	382,077
Vested (in shares)	(218,091)
Forfeited (in shares)	(29,138)
Number of Shares, ending balance (in shares)	551,583
Weighted Average Grant Date Fair Value Per Share
Balance at beginning of period (in dollars per share) \| $ / shares	$ 18.70
Granted (in dollars per share) \| $ / shares	14.95
Vested (in dollars per share) \| $ / shares	13.80
Forfeited (in dollars per share) \| $ / shares	16.50
Balance at end of period (in dollars per share) \| $ / shares	$ 18.16
RSUs
Number of Shares
Number of Shares, beginning balance (in shares)	127,989
Number of Shares, ending balance (in shares)	149,334

Earnings Per Share - Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income	$ 10,555	$ 17,961	$ 10,988	$ 8,872	$ 28,515	$ 19,861
Income allocated to noncontrolling interest	(201)		(279)		(585)	(503)
Net income allocable to common shares	$ 10,354		$ 10,709		$ 27,930	$ 19,358
Weighted-average shares outstanding—Basic (in shares)	224,793,229		224,422,515		224,710,259	224,325,246
Weighted-average shares outstanding—Diluted (in shares)	225,418,825		225,073,890		225,403,082	225,088,261
Earnings per share—Basic (in dollars per share)	$ 0.05		$ 0.05		$ 0.12	$ 0.09
Earnings per share—Diluted (in dollars per share)	$ 0.05		$ 0.05		$ 0.12	$ 0.09

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings (loss) per share, amount	6,070,126	5,946,571	6,096,634	5,946,571