EX-99.2 3 irt-20230426xsupex992.htm EX-99.2 Document

Exhibit 99.2



q1-23coverimagea.jpg

















NYSE: IRT
WWW.IRTLIVING.COM

gryvd1y3alxt000002a.jpg
TABLE OF CONTENTS

gryvd1y3alxt000002a.jpg
Independence Realty Trust
March 31, 2023
Company Information: 
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.
Corporate Headquarters1835 Market Street, Suite 2601
Philadelphia, PA 19103
267.270.4800
Trading SymbolNYSE: “IRT”
Investor Relations ContactEdelman Smithfield
Ted McHugh and Lauren Torres
917-365-7979
IRT@edelman.com 
3
gryvd1y3alxt000002a.jpg
Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.
These forward-looking statements involve estimates, projections, forecasts and assumptions 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, 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 COVID-19 and other potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.
These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

4
gryvd1y3alxt000002a.jpg

Independence Realty Trust Announces First Quarter 2023 Financial Results

PHILADELPHIA – (BUSINESS WIRE) – April 26, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its first quarter 2023 financial results.
First Quarter Highlights
•Net income available to common shares of $8.6 million for the quarter ended March 31, 2023 compared to $74.6 million for the quarter ended March 31, 2022.
•Earnings per diluted share of $0.04 for the quarter ended March 31, 2023 compared to $0.34 for the quarter ended March 31, 2022.
•Same-store portfolio net operating income (“NOI”) growth of 8.2% for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022.
•Core Funds from Operations (“CFFO”) of $62.5 million for the quarter ended March 31, 2023 compared to $57.7 million for the quarter ended March 31, 2022. CFFO per share was $0.27 for the first quarter of 2023, as compared to $0.25 for the first quarter of 2022.
•Adjusted EBITDA of $87.6 million for the quarter ended March 31, 2023 compared to $81.4 million for the quarter ended March 31, 2022.
•Value add program completed renovations at 635 units during the quarter ended March 31, 2023, achieving a weighted average return on investment during the quarter of 17.8%.
Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP.
Management Commentary
“For the first quarter of 2023, we delivered an 8.2% increase in same-store NOI, led by blended lease over lease rental growth of 4.0%”, said Scott Schaeffer, Chairman and CEO of IRT. “ As the second quarter progresses, our focus on improving occupancy is materializing, as we’re nearing 95% occupancy at our same-store non-value add communities. In addition, the value add program continues to deliver outsized results and we are on track to achieve our volume targets for 2023 with 635 units renovated during the first quarter. We remain confident in the long-term benefits of our portfolio, as we continue to see strong fundamentals in our sunbelt markets and property class type.”
Same-Store Portfolio(1) Operating Results
First Quarter 2023 Compared to First Quarter 2022
Rental and other property revenue7.5% increase
Property operating expenses6.4% increase
Net operating income (“NOI”)8.2% increase
Portfolio average occupancy220 bps decrease to 93.1%
Portfolio average rental rate10.8% increase to $1,530
NOI Margin40 bps increase to 63.3%
(1)Same-store portfolio includes 116 properties, which represent 34,571 units.
5
gryvd1y3alxt000002a.jpg
Operating Metrics
The table below summarizes operating metrics for the same-store portfolio for the applicable periods.
1Q 2023
2Q 2023(3)
Same-Store Portfolio(1)
   Average Occupancy93.1 %93.9 %
(4)
   Lease Over Lease Effective Rental Rate Growth:(2)
        New Leases3.1 %4.2 %
        Renewal Leases 4.8 %1.7 %
        Blended4.0 %2.4 %
   Resident retention rate48.2 %56.7 %
Same-Store Portfolio excluding Ongoing Value Add
   Average Occupancy93.8 %94.4 %
(4)
   Lease Over Lease Effective Rental Rate Growth:(2)
        New Leases2.6 %3.9 %
        Renewal Leases4.2 %1.7 %
        Blended3.4 %2.3 %
   Resident retention rate48.5 %56.9 %
Value Add (19 properties with Ongoing Value Add)
   Average Occupancy90.1 %91.7 %
(4)
   Lease Over Lease Effective Rental Rate Growth:(2)
        New Leases5.4 %5.4 %
        Renewal Leases7.3 %1.7 %
        Blended6.3 %2.9 %
   Resident retention rate46.5 %56.2 %
(1)Same-store portfolio includes 116 properties, which represent 34,571 units.
(2)Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months.
(3)2Q 2023 average occupancy and resident retention rates are as through April 24, 2023. 2Q 2023 new lease and renewal rates are for leases commencing during 2Q 2023 that were signed as of April 24, 2023.
(4)As of April 24, 2023, same-store portfolio occupancy was 94.3%, same-store portfolio excluding ongoing value add occupancy was 94.7%, and value add occupancy was 92.3%.
Value Add Program
We completed renovations on 635 units during the quarter ended March 31, 2023, achieving a return on investment of 17.8%, with an average cost per unit renovated of $15,408, and average rent increase per renovated unit of $228. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of March 31, 2023.

Investment Activity
Dispositions
On February 28, 2023, we sold Eagle Lake Landing apartments located in Indianapolis, Indiana for $37.3 million and recognized a gain on sale of $1.0 million. Proceeds from the sale were used to reduce indebtedness.
Capital Expenditures
For the three months ended March 31, 2023, recurring capital expenditures for the total portfolio were $4.1 million, or $117 per unit.
6
gryvd1y3alxt000002a.jpg
Capital Markets
New Swap Agreement
On March 16, 2023, we entered into an interest rate swap contract with a notional value of $200.0 million, a strike rate of 3.39% and a maturity date of March 17, 2030.
Dividend Distribution
On March 14, 2023, our Board of Directors declared a quarterly cash dividend of $0.14 per share of our common stock, which was paid on April 21, 2023 to stockholders of record at the close of business on March 31, 2023.
2023 EPS and CFFO Guidance
We affirm our EPS and CFFO per share and same-store NOI targets. Earnings per diluted share is projected to be in the range of $0.23 to $0.27. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s definition and rationale for the usefulness of CFFO.
2023 Full Year EPS and CFFO Guidance(1)(2)
LowHigh
Earnings per share$0.23 $0.27 
Adjustments:
Depreciation and amortization
0.95 0.95 
Gain on sale of real estate assets(3)
(0.01)(0.01)
Loan (premium accretion) discount amortization, net(0.05)(0.05)
Core FFO per share$1.12 $1.16 
(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2023 EPS and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below.
(2)Per share guidance is based on 230.0 million weighted average shares and units outstanding.
(3)Gain on sale of real estate assets includes one asset sale that occurred during the first quarter of 2023.

7
gryvd1y3alxt000002a.jpg
2023 Guidance Assumptions
Our key guidance assumptions for 2023 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.
Same-Store Portfolio
2023 Outlook(1)
Number of properties/units116 properties / 34,571 units
Property revenue growth5.7% to 7.0%
Controllable operating expense growth3.3% to 5.4%
Real estate tax and insurance expense growth8.1% to 9.1%
Total operating expense growth5.2% to 6.9%
Property NOI growth5.0% to 8.0%
Corporate Expenses
   General and administrative & Property management expenses$51.5 million to $53.5 million
   Interest expense(2)
$104.5 million to $106.5 million
Transaction/Investment Volume(3)
Acquisition volumeNone
Disposition volume$35 million to $40 million
Capital Expenditures
Recurring$19.0 million to $21.0 million
Value add & non-recurring$78.0 million to $82.0 million
Development$80.0 million to $90.0 million
(1)This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” below.
(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting, we recorded a $72.1 million loan premium, net, related to STAR debt. This loan premium will be accreted into and reduce GAAP interest expense over the remaining term of the associated debt. However, loan premium accretion will be excluded from CFFO.
(3)We continue to evaluate our portfolio for capital recycling opportunities so actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements” below.

8
gryvd1y3alxt000002a.jpg
Selected Financial Information
See the schedules at the end of this earnings release for selected financial information for IRT.
Non-GAAP Financial Measures and Definitions
We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same-store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.
Conference Call
All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, April 27, 2023 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.833.470.1428, access code 034663. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website until the next earnings release. A playback of the conference call can also be accessed telephonically until Thursday, May 4, 2023 by dialing 1.866.813.9403, access code 284598.
Supplemental Information
We produce supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store information and other useful information for investors. The supplemental information is available via our website, www.irtliving.com, through the "Investor Relations" section.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.
9
gryvd1y3alxt000002a.jpg
Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.
These forward-looking statements involve estimates, projections, forecasts and assumptions 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, 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 COVID-19 and other potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.
These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.










10
gryvd1y3alxt000002a.jpg
FINANCIAL & OPERATING HIGHLIGHTS
Dollars in thousands, except per share data
For the Three Months Ended
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Selected Financial Information:
Operating Statistics:
Net income (loss) available to common shares$8,648$33,631$16,223$(7,205)$74,600
Earnings (loss) per share -- diluted$0.04$0.15$0.07$(0.03)$0.34
Rental and other property revenue$161,135$162,493$160,300$154,643$149,977
Property operating expenses$59,255$57,450$59,967$58,976$55,883
NOI$101,880$105,043$100,333$95,667$94,094
NOI margin63.2%64.6%62.6%61.9%62.7%
Adjusted EBITDA$87,594$93,017$89,264$83,228$81,375
CORE FFO per share$0.27$0.29$0.28$0.26$0.25
Dividends per share$0.14$0.14$0.14$0.14$0.12
CORE FFO payout ratio51.9%48.3%50.0%53.8%48.0%
Portfolio Data:
Total gross assets $7,045,306$7,034,902$7,097,280$6,801,034$6,731,377
Total number of operating properties119120122120119
Total units35,24935,52636,17635,59435,498
Period end occupancy94.1%93.6%94.6%95.7%95.4%
Total portfolio average occupancy93.1%93.9%94.2%95.5%95.2%
Total portfolio average effective monthly
  rent, per unit		$1,535$1,522$1,484$1,414$1,374
Same-store portfolio period end occupancy (a)94.1%93.6%94.6%95.4%95.6%
Same-store portfolio average occupancy (a)93.1%93.9%94.2%95.5%95.3%
Same-store portfolio average effective monthly
  rent, per unit (a)		$1,530$1,520$1,487$1,420$1,381
Capitalization:
Total debt (b)$2,628,632$2,631,645$2,713,625$2,552,936$2,542,088
Common share price, period end$16.03$16.86$16.73$20.73$26.44
Market equity capitalization$3,694,970$3,880,432$3,850,365$4,729,580$6,031,873
Total market capitalization$6,323,602$6,512,077$6,563,990$7,282,516$8,573,961
Total debt/total gross assets37.3%37.4%38.2%37.5%37.8%
Net debt to Adjusted EBITDA (c)7.3x6.9x7.2x7.4x7.6x
Interest coverage4.0x4.0x4.0x4.0x4.0x
Common shares and OP Units:
Shares outstanding224,556,870224,064,940224,056,179222,060,280221,163,391
OP units outstanding5,946,5716,091,1716,091,1716,091,1716,970,993
Common shares and OP units outstanding230,503,441230,156,111230,147,350228,151,451228,134,384
Weighted average common shares and OP units230,186,297229,994,927228,051,780227,964,753227,778,484
(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.
(b)Includes indebtedness associated with real estate held for sale, as applicable.
(c)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions impacting quarterly EBITDA. For the five quarters ended March 31, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 7.3x, 6.9x, 7.4x, 7.4x, and 7.5x, respectively.
11
gryvd1y3alxt000002a.jpg
BALANCE SHEETS
Dollars in thousands, except per share data
As of
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Assets:
Real estate held for investment, at cost$6,648,907 $6,615,243 $6,634,087 $6,428,482 $6,382,324 
Less: accumulated depreciation(475,001)(425,034)(379,171)(329,903)(283,666)
Real estate held for investment, net6,173,906 6,190,209 6,254,916 6,098,579 6,098,658 
Real estate held for sale— 35,777 82,178 81,818 80,992 
Real estate under development124,983 105,518 86,763 61,777 48,959 
Cash and cash equivalents12,448 16,084 23,753 11,378 23,971 
Restricted cash22,385 27,933 35,829 31,017 26,789 
Investment in unconsolidated real estate entities92,882 80,220 70,608 54,178 43,541 
Other assets34,360 34,846 34,480 26,707 27,281 
Derivative assets32,783 41,109 43,967 21,162 12,944 
Intangible assets, net— 399 1,039 18 24,187 
Total assets$6,493,747 $6,532,095 $6,633,533 $6,386,634 $6,387,322 
Liabilities and Equity:
Indebtedness, net$2,628,632 $2,631,645 $2,667,183 $2,506,375 $2,495,410 
Indebtedness associated with real estate held
  for sale, net		— — 46,442 46,561 46,678 
Accounts payable and accrued expenses105,873 109,677 126,310 98,173 81,498 
Accrued interest payable7,979 7,713 11,019 6,891 6,955 
Dividends payable32,232 32,189 32,188 31,907 27,345 
Derivative liabilities2,283 — — — 128 
Other liabilities11,813 13,004 13,816 15,077 15,921 
Total liabilities2,788,812 2,794,228 2,896,958 2,704,984 2,673,935 
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value per share— — — — — 
Common shares, $0.01 par value per share2,246 2,241 2,241 2,221 2,212 
Additional paid in capital3,753,074 3,751,056 3,749,550 3,698,763 3,678,478 
Accumulated other comprehensive income25,101 35,102 37,569 18,430 9,958 
Accumulated deficit(214,775)(191,735)(194,014)(178,902)(140,643)
Total shareholders' equity3,565,646 3,596,664 3,595,346 3,540,512 3,550,005 
Noncontrolling Interests139,289 141,203 141,229 141,138 163,382 
Total equity3,704,935 3,737,867 3,736,575 3,681,650 3,713,387 
Total liabilities and equity$6,493,747 $6,532,095 $6,633,533 $6,386,634 $6,387,322 

12
gryvd1y3alxt000002a.jpg
STATEMENTS OF OPERATIONS, FFO & CORE FFO
TRAILING FIVE QUARTERS
Dollars in thousands, except per share data
For the Three Months Ended
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Revenue:
Rental and other property revenue$161,135 $162,493 $160,300 $154,643 $149,977 
Other revenue239306300120385
Total revenue161,374162,799160,600154,763150,362
Expenses:
Property operating expenses59,25557,45059,96758,97655,883
Property management expenses6,3716,5935,7446,1395,556
General and administrative expenses (a)
8,1545,7395,6256,9687,928
Depreciation and amortization expense53,53652,16149,72272,79378,174
Casualty losses (gains), net151(1,690)(191)(5,592)(1,393)
Total expenses127,467120,253120,867139,284146,148
Interest expense(22,124)(23,337)(22,093)(20,994)(20,531)
Gain on sale of real estate assets, net98517,044——94,712
Other income, net9357765294443
(Loss) gain from investments in unconsolidated
  real estate entities		(776)242(1,477)(871)(63)
Merger and integration costs—(2,028)(275)(1,307)(1,895)
Restructuring costs(3,213)— — — — 
Net income (loss)$8,872 $34,524 $16,653 $(7,399)$76,880 
(Income) loss allocated to noncontrolling
  interests		(224)(893)(430)194(2,280)
Net income (loss) available to common shares$8,648 $33,631 $16,223 $(7,205)$74,600 
EPS - basic$0.04 $0.15 $0.07 $(0.03)$0.34 
Weighted-average shares outstanding - Basic224,226,873223,903,756221,960,609221,164,284220,798,692
EPS - diluted$0.04 $0.15 $0.07 $(0.03)$0.34 
Weighted-average shares outstanding - Diluted225,088,659224,915,128222,867,546221,164,284222,045,286
Funds From Operations (FFO):
Net income (loss)$8,872 $34,524 $16,653 $(7,399)$76,880 
Add-Back (Deduct):
Real estate depreciation and amortization53,28751,95749,34772,29877,943
Our share of real estate depreciation and
  amortization from investments in unconsolidated
   real estate entities		4184161,388515—
Gain on sale of real estate assets, net, excluding
  prepayment gains		(314)(16,635)——(94,712)
FFO$62,263 $70,262 $67,388 $65,414 $60,111 
FFO per share$0.27 $0.31 $0.30 $0.29 $0.26 
CORE Funds From Operations (CFFO):
FFO$62,263 $70,262 $67,388 $65,414 $60,111 
Add-Back (Deduct):
Other depreciation and amortization249204375495231
Casualty losses (gains), net151(1,690)(191)(5,592)(1,393)
Loan (premium accretion) discount
  amortization, net		(2,755)(2,760)(2,750)(2,741)(2,754)
Prepayment (gains) losses on asset dispositions(670)(409)———
Other expense (income), net42(860)(765)(294)(380)
Merger and integration costs—2,0282751,3071,895
Restructuring costs3,213 — — — — 
CFFO$62,493 $66,775 $64,332 $58,589 $57,710 
CFFO per share$0.27 $0.29 $0.28 $0.26 $0.25 
Weighted-average shares and units outstanding230,186,297229,994,927228,051,780227,966,261227,778,484
(a)Included in the three months ended March 31, 2023 and 2022 is $2.7 million and $2.4 million, respectively, of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.
13
gryvd1y3alxt000002a.jpg
STATEMENTS OF OPERATIONS, FFO & CORE FFO
THREE MONTHS ENDED MARCH 31, 2023 and 2022
Dollars in thousands, except per share data

For the Three Months Ended March 31,
20232022
Revenue:
Rental and other property revenue$161,135 $149,977 
Other revenue239385
Total revenue161,374150,362
Expenses:
Property operating expenses59,25555,883
Property management expenses6,3715,556
General and administrative expenses (a)
8,1547,928
Depreciation and amortization expense53,53678,174
Casualty losses (gains), net151(1,393)
Total expenses127,467146,148
Interest expense(22,124)(20,531)
Gain on sale of real estate assets, net98594,712
Other income, net93443
Loss from investments in unconsolidated real estate entities(776)(63)
Merger and integration costs—(1,895)
Restructuring costs(3,213)— 
Net income (loss)8,872 76,880 
(Income) loss allocated to noncontrolling interests(224)(2,280)
Net income (loss) available to common shares$8,648 $74,600 
EPS - basic$0.04 $0.34 
Weighted-average shares outstanding - Basic224,226,873220,798,692
EPS - diluted$0.04 $0.34 
Weighted-average shares outstanding - Diluted225,088,659222,045,286
Funds From Operations (FFO):
Net income (loss)$8,872 $76,880 
Add-Back (Deduct):
Real estate depreciation and amortization53,28777,943
Our share of real estate depreciation and amortization from investments
  in unconsolidated real estate entities		418—
Gain on sale of real estate assets, net, excluding prepayment gains(314)(94,712)
FFO$62,263 $60,111 
FFO per share$0.27 $0.26 
CORE Funds From Operations (CFFO):
FFO$62,263 $60,111 
Add-Back (Deduct):
Other depreciation and amortization249231
Casualty losses (gains), net151(1,393)
Loan (premium accretion) discount amortization, net(2,755)(2,754)
Prepayment (gains) losses on asset dispositions(670)—
Other expense (income), net42(380)
Merger and integration costs—1,895
Restructuring costs3,213 — 
CFFO$62,493 $57,710 
CFFO per share$0.27 $0.25 
Weighted-average shares and units outstanding230,186,297227,778,484
(a)Included in the three months ended March 31, 2023 and 2022 is $2.7 million and $2.4 million, respectively, of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.
14
gryvd1y3alxt000002a.jpg

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO
Dollars in thousands
 Three Months Ended
ADJUSTED EBITDA:Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Net income (loss)$8,872 $34,524 $16,653 $(7,399)$76,880 
Add-Back (Deduct):
Interest expense22,124 23,337 22,093 20,994 20,531 
Depreciation and amortization53,536 52,161 49,722 72,793 78,174 
Casualty losses (gains),
  net		151 (1,690)(191)(5,592)(1,393)
Gain on sale of real estate assets,
  net		(985)(17,044)— — (94,712)
Merger and integration costs— 2,028 275 1,307 1,895 
Loss (gain) from investments in
  unconsolidated real estate entities		776 (242)1,477 1,125 — 
Other income, net(93)(57)(765)— — 
Restructuring costs3,213 — — — — 
Adjusted EBITDA$87,594 $93,017 $89,264 $83,228 $81,375 
INTEREST COST:
Interest expense$22,124 $23,337 $22,093 $20,994 $20,531 
INTEREST COVERAGE:4.0x4.0x4.0x4.0x4.0x

15
gryvd1y3alxt000002a.jpg

SAME-STORE PORTFOLIO NET OPERATING INCOME & NOI BRIDGE (a) (b)
TRAILING FIVE QUARTERS
Dollars in thousands, except per unit data
For the Three-Months Ended
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Revenue:
Rental and other property revenue$156,813 $156,897 $155,515 $150,892 $145,826 
Property Operating Expenses:
Real estate taxes19,609 19,557 18,977 20,013 19,390 
Property insurance3,191 3,359 3,582 3,050 2,842 
Personnel expenses12,013 12,215 12,227 12,585 12,344 
Utilities8,036 7,935 8,148 7,200 7,464 
Repairs and maintenance5,882 3,973 6,097 6,135 4,275 
Contract services5,480 5,131 5,440 5,254 4,867 
Advertising expenses1,370 1,214 1,502 1,266 1,222 
Other expenses1,929 2,094 1,920 1,823 1,656 
Total property operating expenses57,510 55,478 57,893 57,326 54,060 
Same-store portfolio NOI$99,303 $101,419 $97,622 $93,566 $91,766 
Same-store portfolio NOI margin63.3 %64.6 %62.8 %62.0 %62.9 %
Average occupancy93.1 %93.9 %94.2 %95.5 %95.3 %
Average effective monthly rent, per unit$1,530 $1,520 $1,487 $1,420 $1,381 

For the Three Months Ended
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Rental and other property revenue
Same-store portfolio$156,813 $156,897 $155,515 $150,892 $145,826 
Non same-store portfolio4,322 5,596 4,785 3,751 4,151 
Total rental and other property revenue161,135 162,493 160,300 154,643 149,977 
Property operating expenses
Same-store portfolio57,510 55,478 57,893 57,326 54,060 
Non same-store portfolio1,745 1,972 2,074 1,650 1,823 
Total property operating expenses59,255 57,450 59,967 58,976 55,883 
NOI
Same-store portfolio99,303 101,419 97,622 93,566 91,766 
Non same-store portfolio2,577 3,624 2,711 2,101 2,328 
Total property NOI$101,880 $105,043 $100,333 $95,667 $94,094 
(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.
(b)See definitions at the end of this release for a reconciliation from GAAP net income (loss) to NOI.
16
gryvd1y3alxt000002a.jpg
SAME-STORE PORTFOLIO NET OPERATING INCOME (a)
THREE MONTHS ENDED MARCH 31, 2023 and 2022
Dollars in thousands, except per unit data
For the Three Months Ended March 31,
20232022% change
Revenue:
Rental and other property revenue$156,813 $145,826 7.5 %
Property Operating Expenses:
Real estate taxes19,609 19,390 1.1 %
Property insurance3,191 2,842 12.3 %
Personnel expenses12,013 12,344 (2.7)%
Utilities8,036 7,464 7.7 %
Repairs and maintenance5,882 4,275 37.6 %
Contract services5,480 4,867 12.6 %
Advertising expenses1,370 1,222 12.1 %
Other expenses1,929 1,656 16.5 %
Total property operating expenses57,510 54,060 6.4 %
Same-store portfolio NOI$99,303 $91,766 8.2 %
Same-store portfolio NOI margin63.3 %62.9 %0.4 %
Average occupancy93.1 %95.3 %(2.2)%
Average effective monthly rent, per unit$1,530 $1,381 10.8 %
(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.

17
gryvd1y3alxt000002a.jpg
SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET
THREE MONTHS ENDED MARCH 31, 2023
Dollars in thousands, except rent per unit
Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
MarketNumber of PropertiesUnits20232022% Change20232022% Change20232022% Change20232022% Change20232022% Change
Atlanta, GA135,180$23,671 $22,244 6.4 %$8,404 $7,591 10.7 %$15,270 $14,651 4.2 %91.9 %94.6 %(2.7)%$1,637 $1,458 12.3 %
Dallas, TX144,00721,223 19,733 7.6 %8,823 8,400 5.0 %12,400 11,333 9.4 %93.1 %95.9 %(2.8)%1,783 1,608 10.9 %
Denver, CO92,29211,910 10,856 9.7 %3,531 3,337 5.8 %8,379 7,519 11.4 %93.8 %95.5 %(1.7)%1,698 1,555 9.2 %
Columbus, OH102,51010,228 9,499 7.7 %3,612 3,644 (0.9)%6,616 5,855 13.0 %94.5 %95.8 %(1.3)%1,356 1,234 9.9 %
Raleigh - Durham, NC61,6907,755 6,741 15.0 %2,520 2,443 3.2 %5,234 4,298 21.8 %93.7 %95.2 %(1.5)%1,530 1,321 15.8 %
Indianapolis, IN71,9797,908 7,363 7.4 %2,927 2,759 6.1 %4,981 4,604 8.2 %92.5 %95.5 %(3.0)%1,334 1,201 11.1 %
Oklahoma City, OK82,1477,528 7,084 6.3 %2,560 2,452 4.4 %4,967 4,631 7.3 %91.7 %95.4 %(3.7)%1,163 1,054 10.3 %
Nashville, TN41,4126,545 6,388 2.5 %2,218 2,231 (0.6)%4,327 4,157 4.1 %90.3 %95.7 %(5.4)%1,596 1,457 9.5 %
Houston, TX71,9328,448 7,954 6.2 %4,128 3,788 9.0 %4,320 4,166 3.7 %94.6 %94.4 %0.2 %1,427 1,338 6.7 %
Memphis, TN41,3836,044 5,548 8.9 %1,982 1,897 4.5 %4,061 3,651 11.2 %93.7 %94.2 %(0.5)%1,501 1,373 9.3 %
Tampa-St. Petersburg, FL41,1045,988 5,080 17.9 %2,295 1,973 16.3 %3,693 3,107 18.9 %94.9 %94.4 %0.5 %1,780 1,531 16.3 %
Birmingham, AL21,0744,533 4,603 (1.5)%1,746 1,637 6.7 %2,787 2,965 (6.0)%89.4 %93.8 %(4.4)%1,475 1,397 5.6 %
Huntsville, AL38734,016 3,886 3.3 %1,341 1,221 9.8 %2,675 2,665 0.4 %94.5 %95.6 %(1.1)%1,545 1,441 7.2 %
Lexington, KY38863,610 3,353 7.7 %1,067 1,183 (9.8)%2,542 2,170 17.1 %94.9 %95.3 %(0.4)%1,272 1,166 9.1 %
Louisville, KY41,1504,438 4,280 3.7 %1,897 1,804 5.2 %2,541 2,476 2.6 %92.8 %95.1 %(2.3)%1,285 1,156 11.2 %
Charlotte, NC24802,635 2,271 16.0 %805 727 10.7 %1,830 1,544 18.5 %95.4 %96.0 %(0.6)%1,758 1,524 15.4 %
Myrtle Beach, SC - Wilmington, NC36282,611 2,287 14.2 %784 711 10.3 %1,827 1,577 15.9 %94.7 %96.7 %(2.0)%1,396 1,177 18.6 %
Cincinnati, OH25422,556 2,450 4.3 %967 848 14.0 %1,589 1,603 (0.9)%92.1 %96.8 %(4.7)%1,553 1,413 9.9 %
Charleston, SC25182,534 2,277 11.3 %1,000 935 7.0 %1,534 1,342 14.3 %93.6 %96.5 %(2.9)%1,603 1,409 13.8 %
Greenville, SC17022,440 2,346 4.0 %944 855 10.4 %1,497 1,491 0.4 %92.2 %95.3 %(3.1)%1,231 1,131 8.8 %
Chicago, IL13741,997 1,877 6.4 %771 770 0.1 %1,226 1,107 10.7 %95.9 %95.3 %0.6 %1,772 1,645 7.7 %
Orlando, FL12971,537 1,372 12.0 %668 562 18.9 %869 810 7.3 %94.5 %96.8 %(2.3)%1,787 1,534 16.5 %
Asheville, NC12521,142 976 17.0 %304 272 11.8 %838 705 18.9 %97.0 %97.8 %(0.8)%1,488 1,272 17.0 %
San Antonio, TX13061,454 1,444 0.7 %673 616 9.3 %780 828 (5.8)%95.7 %96.9 %(1.2)%1,483 1,455 1.9 %
Fort Wayne, IN1222994 920 8.0 %295 307 (3.9)%700 613 14.2 %93.2 %94.6 %(1.4)%1,431 1,314 8.9 %
Austin, TX12561,310 1,258 4.1 %611 524 16.6 %699 733 (4.6)%89.0 %96.8 %(7.8)%1,788 1,567 14.1 %
Norfolk, VA1183985 941 4.7 %340 272 25.0 %645 670 (3.7)%93.8 %95.5 %(1.7)%1,882 1,731 8.7 %
Chattanooga, TN1192773 795 (2.8)%297 301 (1.3)%476 495 (3.8)%92.5 %97.3 %(4.8)%1,374 1,327 3.5 %
Total / Weighted
   Average		11634,571$156,813 $145,826 7.5 %$57,510 $54,060 6.4 %$99,303 $91,766 8.2 %93.1 %95.3 %(2.2)%$1,530 $1,381 10.8 %
18
gryvd1y3alxt000002a.jpg
TOTAL PORTFOLIO NET OPERATING INCOME EXPOSURE BY MARKET
Dollars in thousands, except rent per unit
For the Three Months Ended
 March 31, 2023
MarketNumber of PropertiesUnitsGross Real 
Estate 
Assets		Period End
 Occupancy		Average 
Effective
 Monthly Rent 
per Unit		NOI% of NOI
Atlanta, GA135,180$1,070,050 92.8 %$1,637 $15,267 15.0 %
Dallas, TX144,007854,870 94.2 %1,783 12,400 12.2 %
Denver, CO (a)
-192,292606,372 94.0 %1,698 8,379 8.2 %
Columbus, OH102,510368,862 95.4 %1,356 6,616 6.5 %
Raleigh - Durham, NC61,690255,624 94.8 %1,530 5,234 5.2 %
Indianapolis, IN71,979290,841 94.6 %1,334 4,981 4.9 %
Oklahoma City, OK82,147321,400 92.5 %1,163 4,967 4.9 %
Tampa-St. Petersburg, FL51,452294,794 95.9 %1,801 4,834 4.8 %
Nashville, TN51,508367,696 92.8 %1,591 4,596 4.5 %
Houston, TX71,932323,339 95.4 %1,427 4,320 4.3 %
Memphis, TN41,383160,176 94.2 %1,501 4,061 4.0 %
Birmingham, AL21,074232,510 89.3 %1,475 2,787 2.7 %
Charlotte, NC3714189,350 95.4 %1,756 2,675 2.6 %
Huntsville, AL3873189,568 95.5 %1,545 2,675 2.6 %
Lexington, KY3886160,002 96.4 %1,272 2,542 2.5 %
Louisville, KY41,150149,011 93.0 %1,285 2,541 2.5 %
Myrtle Beach, SC - Wilmington, NC362868,527 95.4 %1,396 1,827 1.8 %
Cincinnati, OH2542122,355 93.9 %1,553 1,589 1.6 %
Charleston, SC251881,314 95.9 %1,603 1,534 1.5 %
Greenville, SC1702123,319 95.0 %1,231 1,497 1.5 %
Chicago, IL137490,195 95.7 %1,772 1,226 1.2 %
Orlando, FL129750,174 93.2 %1,787 869 0.9 %
Asheville, NC125229,233 97.6 %1,488 838 0.8 %
San Antonio, TX130657,108 97.4 %1,483 780 0.8 %
Fort Wayne, IN122244,221 91.0 %1,431 700 0.7 %
Austin, TX125656,860 91.3 %1,788 699 0.7 %
Norfolk, VA118354,131 98.4 %1,882 645 0.6 %
Chattanooga, TN119237,005 92.7 %1,374 476 0.5 %
Total / Weighted Average11935,249$6,648,907 94.1 %$1,535 $101,555 100.0 %
(a)Includes properties in our Fort Collins, CO and Colorado Springs, CO markets.

19
gryvd1y3alxt000002a.jpg
VALUE ADD SUMMARY BY MARKET
PROJECT LIFE TO DATE AS OF MARCH 31, 2023

Renovation Costs per Unit (b)
MarketTotal PropertiesTotal
Units To Be Renovated		Units CompleteUnits
Leased		Rent Premium (a)% Rent IncreaseInteriorExteriorTotalROI - Interior Costs(c)ROI - Total Costs (d)
Ongoing
Memphis, TN1362 239 242 $374 34.8 %$14,683 $807 $15,490 30.6 %29.0 %
Raleigh-Durham, NC1318 182 183 183 14.7 %15,058 1,046 16,104 14.6 %13.6 %
Indianapolis, IN1236 126 123 246 22.3 %14,534 805 15,339 20.3 %19.2 %
Tampa-St. Petersburg, FL3888 414 426 332 24.8 %12,449 847 13,296 32.0 %30.0 %
Columbus, OH2546 212 202 245 19.9 %13,610 918 14,527 21.6 %20.2 %
Oklahoma City, OK2541 210 208 117 14.5 %15,660 670 16,330 9.0 %8.6 %
Atlanta, GA52,180 775 822 264 21.9 %13,048 1,235 14,284 24.2 %22.1 %
Austin, TX1256 78 72 217 14.4 %15,028 1,104 16,132 17.3 %16.1 %
Dallas, TX3845 198 205 276 18.1 %16,959 1,544 18,503 19.6 %17.9 %
Nashville, TN1724 159 124 165 11.5 %14,036 1,664 15,700 14.1 %12.6 %
   Total / Weighted Average206,896 2,593 2,607 $260 21.3 %$13,993$1,148 $15,140 23.5 %22.0 %
Future (e)
Atlanta, GA1 180 — — — — — — — — — 
Columbus, OH1 240 — — — — — — — — — 
Dallas, TX1 354 — — — — — — — — — 
Oklahoma City, OK2 546 — — — — — — — — — 
   Total / Weighted Average5 1,320 — — — — — — — — — 
Completed (f)
Raleigh-Durham, NC1 328 325 323 $184 18.0 %$14,648 $2,108 $16,756 15.1 %13.2 %
Louisville, KY2 728 710 763 213 24.0 %15,345 2,173 17,518 16.7 %14.6 %
Wilmington, NC1 288 275 278 74 7.5 %7,686 56 7,742 11.6 %11.5 %
Atlanta, GA1 494 454 451 175 17.5 %9,102 1,773 10,875 23.0 %19.3 %
Memphis, TN2 691 618 612 190 18.8 %11,450 974 12,424 19.9 %18.4 %
Tampa-St. Petersburg, FL1 348 306 305 208 18.3 %13,988 2,155 16,143 17.9 %15.5 %
Columbus, OH3 763 670 669 203 22.4 %10,114 666 10,779 24.1 %22.6 %
   Total / Weighted Average11 3,640 3,358 3,401 $187 19.6 %$11,922 $1,400 $13,277 19.0 %16.9 %
Grand Total/Weighted Average36 11,856 5,951 6,008 $238 20.3 %$12,824 $1,235 $14,059 20.9 %19.1 %
(a) The rent premium reflects the per unit per month difference between the rental rate on the renovated unit and the market rent for an unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.
(b)Includes all costs to renovate the interior units and make certain exterior renovations, including clubhouses and amenities. Interior costs per unit are based on units leased. Exterior costs per unit are based on total units at the community. Excludes overhead costs to support and manage the value add program as those costs relate to the entire program and cannot be allocated to individual projects.
(c)Calculated using the rent premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit.
(d)Calculated using the rent premium per unit per month, multiplied by 12, divided by the total renovation costs per unit.
(e)Renovation project start dates are scheduled through Q3 2023.
(f)We consider value add projects completed when over 85% of the property’s units to be renovated have been completed. We continue to renovate remaining unrenovated units as leases expire until we complete 100% of the property’s units.
(g)Includes Meadows, Haverford, Crestmont and Creekside that were formerly a part of the value add program but were sold in October 2022 (with respect to Meadows), February 2022 (with respect to Haverford) and December 2021 (with respect to Crestmont and Creekside).
20
gryvd1y3alxt000002a.jpg
INVESTMENT AND DEVELOPMENT ACTIVITY
Dollars in thousands
2023 DISPOSITIONS
PropertyLocationUnitsDisposition DateSale PricePrice per UnitAverage Rent Per Unit at DispositionGain on Sale of Real Estate, Net
Eagle Lake LandingIndianapolis, IN277February 28, 2023$37,300 $135 $1,184 $985 
REAL ESTATE UNDER DEVELOPMENT
ProjectedDevelopment Costs
PropertyLocationPlanned UnitsStart DateInitial Occupancy DateCompletion DateStabilization DateTotal EstimatedTotal through 3/31/23Remaining
Destination at AristaDenver, CO3253Q 20212Q 20234Q 20231Q 2025$102,100 $93,348 $8,752 
Flatirons ApartmentsDenver, CO2964Q 20223Q 20243Q 20243Q 2026119,800 31,636 88,164 
Total621$221,900 $124,983 $96,917 
INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES
PropertyLocationUnitsEstimated Delivery DateTotal Construction BudgetTotal Project DebtIRT Equity Interest in JVRemaining Expected IRT InvestmentCarrying Value of IRT’s Investment
Metropolis at InnsbrookRichmond, VA402 Q2 2023$85,883 $64,000 84.8 %$1,048 $17,583 
Views of Music City II /
  The Crockett (a)
Nashville, TN408 Q3 202366,079 43,275 50.0 %— 11,483 
Virtuoso (b)
Huntsville, AL178 —57,491 39,281 90.0 %— 13,647 
Lakeline StationAustin, TX378 Q3 2024109,524 76,500 90.0 %— 30,571 
The MustangDallas, TX275 Q4 2024109,583 79,447 85.0 %6,382 19,598 
   Total1,641 $428,560 $302,503 $7,430 $92,882 
(a)Views of Music City phase II consists of 209 units with an estimated delivery date of Q3 2023. The Crockett is an operating property consisting of 199 units delivered in Q1 2023. We have one year from the delivery date to exercise our purchase option on The Crockett.
(b)The Virtuoso investment made on March 31, 2022 is an operating property.










21
gryvd1y3alxt000002a.jpg
DEBT SUMMARY AS OF MARCH 31, 2023
Dollars in thousands
Amount
Weighted Average Rate (d)
Type
Weighted Average Maturity (in years)
Debt:
Unsecured revolver (a)
$185,478 5.8 %Floating2.8
Unsecured term loans (b)
600,000 5.7 %Floating4.3
Secured credit facilities (c)
617,115 4.3 %Floating/Fixed5.7
Mortgages1,183,435 3.9 %Fixed4.9
Total Principal2,586,028 4.5 %4.8
Loan premiums (discounts), net56,256 
Unamortized deferred financing costs(13,652)
Total Consolidated Debt2,628,632 
Market Equity Capitalization, at period end3,694,970 
Total Capitalization$6,323,602 
(a)Unsecured revolver total capacity is $500,000, of which $185,478 was drawn as of March 31, 2023. The maturity date of borrowings under the unsecured revolver is January 31, 2026.
(b)Consists of a (i) $200,000 unsecured term loan with a maturity date of May 18, 2026 and a (ii) $400,000 unsecured term loan with a maturity date of January 28, 2028.
(c)Consists of a (i) $540,867 secured credit facility, three tranches of which, in an aggregate principal amount of $500,399, have a maturity date of August 1, 2028 and the fourth tranche of which, in the principal amount of $40,468, has a maturity date of March 1, 2030 and a (ii) $76,248 secured credit facility with a maturity date of July 1, 2030.
(d)Represents the weighted average of the contractual interest rates in effect as of quarter-end without regard to any interest rate swaps or collars. Our total weighted average effective interest rate during the quarter ended March 31, 2023, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization, discount accretion, and interest capitalization was 4.1%.
chart-6ffe41b49fca413c90aa.jpg
chart-dea1774937a1451ca23a.jpg
chart-ae5a53a875f049c0a98a.jpg
(e)As of March 31, 2023, we maintained the following hedges that have effectively fixed a portion of our floating rates debt.

Hedges:NotionalStartEndSwap RateFloor RateCap Rate
Collar$100,000 11/17/201711/17/2024— 1.25 %2.00 %
Collar$150,000 10/17/20181/17/2024— 2.25 %2.50 %
Swap$150,000 6/17/20216/17/20262.18 %— — 
Swap$150,000 5/17/20225/17/20270.99 %— — 
Swap$200,000 3/17/20233/17/20303.39 %— — 
Forward starting collar$100,000 1/17/20241/17/2028— 1.50 %2.50 %
Forward starting collar$100,000 11/17/20241/17/2028— 1.50 %2.50 %
22
gryvd1y3alxt000002a.jpg
DEBT COVENANT AND UNENCUMBERED ASSET STATS AS OF MARCH 31, 2023
Dollars in thousands

Debt Covenant Summary (a)
RequirementActualCompliance
Consolidated leverage ratio≤ 60%33.6%Yes
Consolidated fixed charge coverage ratio≥ 1.5x2.7xYes
Unsecured leverage ratio≤ 60%25.0%Yes
(a)For a complete listing of all debt covenants along with definitions of each covenant calculation see the Fourth Amended, Restated and Consolidated Credit Agreement, which is included as exhibit 10.1 of the Form 8-K filed on July 27, 2022.
Encumbered & Unencumbered Statistics
Total Units% of TotalGross Assets% of TotalQ1 2023 NOI % of Total
   Unencumbered assets18,164 51.5 %$3,433,382 48.7 %$51,663 50.9 %
   Encumbered assets17,085 48.5 %3,611,924 51.3 %49,892 49.1 %
35,249 100.0 %$7,045,306 100.0 %$101,555 100.0 %
23
gryvd1y3alxt000002a.jpg
DEFINITIONS
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.
EBITDA and Adjusted EBITDA
Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before certain other non-cash or non-operating gains or losses related to items such as asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty (gains) losses, merger and integration costs, income (loss) from investments in unconsolidated real estate entities, and restructuring costs. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.
Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)
We believe that FFO and 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, merger and integration 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
24
gryvd1y3alxt000002a.jpg
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.
Interest Coverage
Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.
Net Debt
Net debt, a non-GAAP financial measure, equals total consolidated debt less cash and cash equivalents and loan premiums and discounts. The following table provides a reconciliation of total consolidated debt to net debt (Dollars in thousands).
As of
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Total debt$2,628,632 $2,631,645 $2,713,625 $2,552,936 $2,542,088 
Less: cash and cash equivalents(12,448)(16,084)(23,753)(11,378)(23,971)
Less: loan discounts and premiums, net(56,256)(59,937)(63,340)(66,091)(68,832)
Total net debt$2,559,928 $2,555,624 $2,626,532 $2,475,467 $2,449,285 
We present net debt and net debt to Adjusted EBITDA because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.
Net Operating Income
We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expense, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expenses, net gains on sale of assets, merger and integration costs, 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. We use NOI to evaluate our performance on a same-store and non same-store basis because NOI measures the core operations of property performance by excluding corporate level 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.

25
gryvd1y3alxt000002a.jpg
A reconciliation from GAAP net income (loss) to NOI is provided below:

For the Three Months Ended
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Net income (loss)$8,872 $34,524 $16,653 $(7,399)$76,880 
   Other revenue(239)(306)(300)(120)(385)
   Property management expenses6,371 6,593 5,744 6,139 5,556 
   General and administrative
     expenses		8,154 5,739 5,625 6,968 7,928 
   Depreciation and amortization
    expense		53,536 52,161 49,722 72,793 78,174 
   Casualty losses (gains), net151 (1,690)(191)(5,592)(1,393)
   Interest expense22,124 23,337 22,093 20,994 20,531 
   Gain on sale of real estate assets,
     net		(985)(17,044)— — (94,712)
   Other income, net(93)(57)(765)(294)(443)
   Loss (gain) from investments in
     unconsolidated real estate entities		776 (242)1,477 871 63 
   Merger and integration costs— 2,028 275 1,307 1,895 
   Restructuring costs3,213 — — — — 
NOI$101,880 $105,043 $100,333 $95,667 $94,094 
Less: Non same-store portfolio NOI2,577 3,624 2,711 2,101 2,328 
Same-store portfolio NOI$99,303 $101,419 $97,622 $93,566 $91,766 
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 at the beginning of the previous year. Properties that are held-for-sale or have been sold are excluded from the same-store portfolio.
Total Gross Assets
Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (dollars in thousands).
As of
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Total assets$6,493,747 $6,532,095 $6,633,533 $6,386,634 $6,387,322 
Plus: accumulated depreciation (a)
475,001 426,097 386,606 337,338 291,199 
Plus: accumulated amortization76,558 76,710 77,141 77,062 52,856 
Total gross assets$7,045,306 $7,034,902 $7,097,280 $6,801,034 $6,731,377 
(a)Includes accumulated depreciation associated with real estate held for sale, as applicable.
26