PHILADELPHIA--(BUSINESS WIRE)--
Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT) today announced
its first quarter 2015 financial results.
Highlights
-
Core funds from operations (“CFFO”) increased 127% to $5.9 million for
the quarter ended March 31, 2015 from $2.6 million for the quarter
ended March 31, 2014.
-
CFFO per share increased 12% to $0.19 for the quarter ended March 31,
2015 from $0.17 for the quarter ended March 31, 2014.
-
Total revenues grew 168% to $21.7 million for the quarter ended March
31, 2015 from $8.1 million for the quarter ended March 31, 2014.
-
Operating income increased 192% to $3.8 million for the quarter ended
March 31, 2015 from $1.3 million for the quarter ended March 31, 2014.
Financial Results
IRT reported CFFO, a non-GAAP financial measure, of $5.9 million for the
three-month period ended March 31, 2015, or $0.19 per share - diluted
based on 31.8 million weighted-average shares outstanding – diluted, as
compared to CFFO for the three-month period ended March 31, 2014 of $2.6
million, or $0.17 per share – diluted based on 15.2 million
weighted-average shares outstanding – diluted. IRT reported a net loss
allocable to common stock for the three-month period ended March 31,
2015 of $0.2 million, or $(0.01) per share - diluted based on 31.8
million weighted-average shares outstanding – diluted, as compared to
net income allocable to common stock for the three-month period ended
March 31, 2014 of $2.9 million, or $0.19 per share – diluted based on
15.2 million weighted-average shares outstanding – diluted.
A reconciliation of IRT's reported net income (loss) to its funds from
operations (“FFO”) and CFFO is included as Schedule I to this release.
Schedule I also includes management's rationale for the usefulness of
each of these non-GAAP financial measures.
Distributions
On April 13, 2015, IRT’s Board of Directors declared monthly cash
dividends for the second quarter of 2015 on IRT’s shares of common stock
in the amount of $0.06 per share per month. The monthly dividends total
$0.18 per share for the second quarter. The month for which each
dividend was declared is set forth below, with the relevant amount per
share, record date and payment date set forth opposite the month:
|
|
|
| |
|
|
| |
|
|
| |
| Month | | | | Amount | | | | Record Date | | | | Payment Date |
| April 2015 | | | |
$
|
0.06
| | | | 04/30/2015 | | | | 05/15/2015 |
| May 2015 | | | |
$
|
0.06
| | | | 05/29/2015 | | | | 06/15/2015 |
| June 2015 | | | |
$
|
0.06
| | | | 06/30/2015 | | | | 07/15/2015 |
Key Statistics
(Unaudited and dollars in thousands, except per share and per unit
information)
|
As of or For the Three-Month Periods Ended
|
|
| March 31, 2015 |
| December 31, 2014 |
| September 30, 2014 |
| June 30, 2014 |
| March 31, 2014 |
| Financial Statistics: | | | | | | | | | | |
|
Total revenue
| |
$
|
21,700
| | |
$
|
16,362
| | |
$
|
13,057
| | |
$
|
11,649
| | |
$
|
8,135
| |
|
Earnings (loss) per share-diluted
| |
$
|
(0.01
|
)
| |
$
|
0.01
| | | |
-
| | |
$
|
(0.01
|
)
| |
$
|
0.19
| |
|
Funds from Operations (“FFO”) per share
| |
$
|
0.18
| | |
$
|
0.14
| | |
$
|
0.14
| | |
$
|
0.18
| | |
$
|
0.33
| |
|
Core funds from operations (“CFFO”) per share
| |
$
|
0.19
| | |
$
|
0.17
| | |
$
|
0.17
| | |
$
|
0.19
| | |
$
|
0.17
| |
|
Dividends declared per common share
| |
$
|
0.18
| | |
$
|
0.18
| | |
$
|
0.18
| | |
$
|
0.18
| | |
$
|
0.18
| |
|
Total Shares Outstanding
| | |
31,894,751
| | | |
31,800,076
| | | |
25,801,540
| | | |
17,751,540
| | | |
17,742,540
| |
| | | | | | | | | |
|
| Apartment Property Portfolio: | | | | | | | | | | |
|
Reported investments in real estate at cost
| |
$
|
689,867
| | |
$
|
689,112
| | |
$
|
444,050
| | |
$
|
362,323
| | |
$
|
320,437
| |
|
Net operating income
| |
$
|
11,562
| | |
$
|
8,660
| | |
$
|
6,905
| | |
$
|
6,064
| | |
$
|
4,147
| |
|
Number of properties owned
| | |
30
| | | |
30
| | | |
22
| | | |
19
| | | |
17
| |
|
Multifamily units owned
| | |
8,819
| | | |
8,819
| | | |
6,470
| | | |
5,342
| | | |
4,970
| |
|
Portfolio weighted average occupancy
| | |
94.0
|
%
| | |
92.7
|
%
| | |
92.6
|
%
| | |
93.1
|
%
| | |
93.9
|
%
|
|
Same store portfolio weighted average occupancy
| | |
94.2
|
%
| | |
93.1
|
%
| | |
92.3
|
%
| | |
94.9
|
%
| | |
95.0
|
%
|
|
Weighted average monthly effective rent per unit (1) | |
$
|
827
| | |
$
|
788
| | |
$
|
791
| | |
$
|
764
| | |
$
|
730
| |
|
Same Store weighted average monthly effective rent per unit
| |
$
|
792
| | |
$
|
785
| | |
$
|
778
| | |
$
|
761
| | |
$
|
765
| |
(1)
|
|
Weighted average monthly effective rent per occupied unit
represents the average monthly rent collected for all occupied
units after giving effect to tenant concessions. We do not report
average effective rent per unit in the month of acquisition as it
is not representative of a full month of operations.
|
Properties
The following table presents an overview of our apartment portfolio as
of March 31, 2015:
| Property Name |
| Location |
| Acquisition
Date |
| Year
Built or
Renovated(1) |
| Units (2) |
| Physical
Occupancy (3) |
| Average Monthly
Effective
Rent per
Occupied
Unit(4) |
| Belle Creek | | Henderson, CO | | 4/29/2011 | |
2011
| |
162((5
|
))
| |
96.30
|
%
| |
$
|
1,068
|
| Copper Mill | | Austin, TX | | 4/29/2011 | |
2010
| |
320
| | |
97.50
|
%
| | |
838
|
| Crestmont | | Marietta, GA | | 4/29/2011 | |
2010
| |
228
| | |
92.98
|
%
| | |
775
|
|
Cumberland Glen
| | Smyrna, GA | | 4/29/2011 | |
2010
| |
222
| | |
95.95
|
%
| | |
741
|
|
Heritage Trace
| | Newport News, VA | | 4/29/2011 | |
2010
| |
200
| | |
88.50
|
%
| | |
698
|
|
Tresa at Arrowhead
| | Phoenix, AZ | | 4/29/2011 | |
2006
| |
360
| | |
96.11
|
%
| | |
865
|
| Centrepoint | | Tucson, AZ | | 12/16/2011 | |
2006
| |
320
| | |
95.31
|
%
| | |
845
|
| Runaway Bay | | Indianapolis, IN | | 10/11/2012 | |
2002
| |
192
| | |
95.31
|
%
| | |
923
|
| Berkshire Square | | Indianapolis, IN | | 9/19/2013 | |
2012
| |
354
| | |
90.96
|
%
| | |
589
|
|
The Crossings
| | Jackson, MS | | 11/22/2013 | |
2012
| |
432
| | |
93.06
|
%
| | |
740
|
|
Reserve at Eagle Ridge | | Waukegan, IL | | 1/31/2014 | |
2008
| |
370
| | |
94.59
|
%
| | |
935
|
|
Windrush
| | Edmond, OK | | 2/28/2014 | |
2011
| |
160
| | |
98.13
|
%
| | |
778
|
| Heritage Park | | Oklahoma City, OK | | 2/28/2014 | |
2011
| |
453
| | |
88.96
|
%
| | |
642
|
| Raindance | | Oklahoma City, OK | | 2/28/2014 | |
2011
| |
504
| | |
92.46
|
%
| | |
544
|
|
Augusta
| | Oklahoma City, OK | | 2/28/2014 | |
2011
| |
197
| | |
96.45
|
%
| | |
724
|
|
Invitational
| | Oklahoma City, OK | | 2/28/2014 | |
2011
| |
344
| | |
89.83
|
%
| | |
677
|
|
King’s Landing
| | Creve Coeur, MO | | 3/31/2014 | |
2005
| |
152
| | |
96.13
|
%
| | |
1,576
|
| Carrington Park | | Little Rock, AR | | 5/07/2014 | |
1999
| |
202
| | |
95.05
|
%
| | |
1,011
|
|
Arbors at the Reservoir
| | Ridgeland, MS | | 6/04/2014 | |
2000
| |
170
| | |
96.47
|
%
| | |
1,082
|
| Walnut Hill | | Cordova, TN | | 8/28/2014 | |
2001
| |
360
| | |
91.39
|
%
| | |
876
|
|
Lenoxplace
| | Raleigh, NC | | 9/05/2014 | |
2012
| |
268
| | |
96.27
|
%
| | |
822
|
|
Stonebridge
| | Cordova, TN | | 9/15/2014 | |
1994
| |
500
| | |
91.20
|
%
| | |
751
|
| Bennington Pond | | Groveport, OH | | 11/24/2014 | |
2000
| |
240
| | |
97.50
|
%
| | |
781
|
| Prospect Park | | Louisville, KY | | 12/08/2014 | |
1990
| |
138
| | |
89.13
|
%
| | |
876
|
| Brookside | | Louisville, KY | | 12/08/2014 | |
1987
| |
224
| | |
95.54
|
%
| | |
764
|
| Jamestown | | Louisville, KY | | 12/08/2014 | |
1970
| |
355
| | |
93.24
|
%
| | |
1,004
|
|
Meadows
| | Louisville, KY | | 12/08/2014 | |
1988
| |
400
| | |
98.50
|
%
| | |
763
|
|
Oxmoor
| | Louisville, KY | | 12/08/2014 | |
1999-2000
| |
432
| | |
94.44
|
%
| | |
945
|
|
Stonebridge at the Ranch
| | Little Rock, AR | | 12/16/2014 | |
2005
| |
260
| | |
95.38
|
%
| | |
906
|
| Iron Rock Ranch | | Austin, TX | | 12/30/2014 | |
2001-2002
| |
300
|
| |
95.67
|
%
| |
|
1,161
|
| | | | | | | | | | | |
|
| Total/Weighted Average | | | | | | | |
8,819
|
| |
93.97
|
%
| |
$
|
827
|
(1)
|
|
All dates are for the year in which a significant renovation
program was completed, except for Runaway Bay, Arbors at the
Reservoir, King’s Landing, Walnut Hill, Stonebridge, Bennington
Pond, Prospect Park, Brookside, Jamestown, Meadows, Oxmoor,
Stonebridge at the Ranch and Iron Rock Ranch which is the year
construction was completed.
|
| |
|
(2)
| |
Units represent the total number of apartment units available for
rent at March 31, 2015.
|
| |
|
(3)
| |
Physical occupancy for each of our properties is calculated as (i)
total units rented as of March 31, 2015 divided by (ii) total
units available as of March 31, 2015, expressed as a percentage.
|
| |
|
(4)
| |
Average monthly effective rent per occupied unit represents the
average monthly rent for all occupied units for the three-month
period ended March 31, 2015.
|
| |
|
(5)
| |
Includes 6,256 square feet of retail space in six units, of which
1,010 square feet of space is occupied by RAIT Residential for use
as the leasing office. The remaining 5,246 square feet of space is
86% occupied by four tenants with an average monthly base rent of
$1,623, or $16 per square foot per year. These four tenants are
principally engaged in the following businesses: grocery, retail
and various retail services.
|
Conference Call
All interested parties can listen to the live conference call webcast at
9:00 AM ET on Friday, May 1, 2015 from the investor relations section of
the IRT website at www.irtreit.com
or by dialing 1.877.703.6106, access code 50197578. For those who are
not available to listen to the live call, the replay will be available
shortly following the live call on IRT’s website and telephonically
until Friday, May 8, 2015, by dialing 888.286.8010, access code 69032060.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE MKT: IRT) is a real estate
investment trust that seeks to own well-located apartment properties in
geographic submarkets that it believes support strong occupancy and the
potential for growth in rental rates. IRT seeks to provide stockholders
with attractive risk-adjusted returns, with an emphasis on distributions
and capital appreciation. IRT is externally advised by a wholly-owned
subsidiary of RAIT Financial Trust (NYSE: RAS).
Forward-Looking Statements
This press release may contain 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 "may," “trend”, "will," "expect,"
"intend," "anticipate," "estimate," "believe," "continue," “seek” or
other similar words. Because such statements include risks,
uncertainties and contingencies, actual results may differ materially
from the expectations, intentions, beliefs, plans or predictions of the
future expressed or implied by such forward-looking statements. These
risks, uncertainties and contingencies include, but are not limited to,
those disclosed in IRT’s filings with the Securities and Exchange
Commission. IRT undertakes 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.
Independence Realty Trust, Inc. |
Consolidated Statements of Operations
|
(Dollars in thousands, except share and per share information)
|
(unaudited)
|
|
| |
| | For the Three-Month
Period EndedMarch 31 |
| |
| 2015 |
|
|
| 2014 |
|
| Revenues: | | | | |
|
Rental income
| |
$
|
19,443
| | |
$
|
7,353
| |
|
Tenant reimbursement income
| | |
950
| | | |
366
| |
|
Other income
| |
| 1,307 |
| |
| 416 |
|
|
Total revenue
| | |
21,700
| | | |
8,135
| |
| Expenses: | | | | |
|
Property operating expenses
| | |
10,138
| | | |
3,988
| |
|
General and administrative expenses
| | |
499
| | | |
168
| |
|
Asset management fees
| | |
1,212
| | | |
146
| |
|
Acquisition expenses
| | |
33
| | | |
362
| |
|
Depreciation and amortization
| |
| 6,038 |
| |
| 2,123 |
|
|
Total expenses
| |
| 17,920 |
| |
| 6,787 |
|
| Operating income | | |
3,780
| | | |
1,348
| |
|
Interest expense
| | |
(4,022
|
)
| | |
(1,299
|
)
|
|
Interest income
| | |
1
| | | |
4
| |
|
Gain (loss) on assets
| |
| - |
| |
| 2,882 |
|
| Net income (loss): | | |
(241
|
)
| | |
2,935
| |
|
(Income) loss allocated to non-controlling interests
| |
| 8 |
| |
| - |
|
| Net income (loss) allocable to common stock | | $ | (233 | ) | | $ | 2,935 |
|
| | | |
|
| Earnings (loss) per share: | | | | |
|
Basic
| | $ | (0.01 | ) | | $ | 0.19 |
|
|
Diluted
| | $ | (0.01 | ) | | $ | 0.19 |
|
| Weighted-average shares: | | | | |
|
Basic
| |
| 31,768,468 |
| |
| 15,198,096 |
|
|
Diluted
| |
| 31,768,468 |
| |
| 15,213,951 |
|
Independence Realty Trust, Inc. |
Consolidated Balance Sheets
|
(Dollars in thousands, except share and per share information)
|
(unaudited)
|
|
| |
| |
| | As of March 31, 2015 | | As of December 31, 2014 |
| Assets: | | | | |
|
Investments in real estate:
| | | | |
|
Investments in real estate at cost
| |
$
|
689,867
| | |
$
|
689,112
| |
|
Accumulated depreciation
| |
| (27,261 | ) | |
| (23,376 | ) |
|
Investments in real estate, net
| | |
662,606
| | | |
665,736
| |
|
Cash and cash equivalents
| | |
19,084
| | | |
14,763
| |
|
Restricted cash
| | |
6,228
| | | |
5,206
| |
|
Accounts receivable and other assets
| | |
1,818
| | | |
2,270
| |
|
Intangible assets, net of accumulated amortization of $4,177 and
$4,346, respectively
| | |
1,342
| | | |
3,251
| |
|
Deferred costs, net of accumulated amortization of $665 and $505,
respectively
| |
| 2,954 |
| |
| 2,924 |
|
| Total assets | | $ | 694,032 |
| | $ | 694,150 |
|
| | | |
|
| Liabilities and Equity: | | | | |
|
Indebtedness
| |
$
|
422,613
| | |
$
|
418,901
| |
|
Accounts payable and accrued expenses
| | |
10,691
| | | |
8,353
| |
|
Accrued interest payable
| | |
31
| | | |
49
| |
|
Dividends payable
| | |
1,982
| | | |
1,982
| |
|
Other liabilities
| |
| 1,860 |
| |
| 1,831 |
|
| Total liabilities | | |
437,177
| | | |
431,116
| |
| | | |
|
| 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; 300,000,000 shares authorized,
31,894,751 and 31,800,076 shares issued and outstanding, including
124,000 and 36,000 unvested restricted common stock awards,
respectively
| | |
318
| | | |
318
| |
|
Additional paid-in capital
| | |
267,695
| | | |
267,683
| |
|
Retained earnings (accumulated deficit)
| |
|
(22,680
|
)
| |
|
(16,728
|
)
|
| Total shareholders’ equity | | |
245,333
| | | |
251,273
| |
|
Non-controlling interests
| |
|
11,522
|
| |
|
11,761
|
|
| Total Equity | |
|
256,855
|
| |
|
263,034
|
|
| Total liabilities and equity | |
$
|
694,032
|
| |
$
|
694,150
|
|
Schedule I
|
Independence Realty Trust, Inc. |
Reconciliation of Net income (loss) Allocable to Common Stock and
|
Funds From Operations (“FFO”) and
|
Core Funds From Operations (“CFFO”) (1)
|
(Dollars in thousands, except share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
| | For the Three-Month Period Ended March 31, | |
|
| | 2015 |
|
|
| 2014 | |
|
| | Amount | | Per Share (2) | | Amount | | Per Share (3) |
| Funds From Operations: | | | | | | | | |
|
Net income (loss)
| |
$
|
(241
|
)
| |
$
|
(0.01
|
)
| |
$
|
2,935
| | |
$
|
0.19
| |
|
Adjustments:
| | | | | | | | |
|
Real estate depreciation and amortization
| |
|
6,038
|
| |
|
0.19
|
| |
|
2,123
|
| |
|
0.14
|
|
|
Funds From Operations
| |
$
|
5,797
|
| |
$
|
0.18
|
| |
$
|
5,058
|
| |
$
|
0.33
|
|
| | | | | | | |
|
| Core Funds From Operations: | | | | | | | | |
|
Funds From Operations
| |
$
|
5,797
| | |
$
|
0.18
| | |
$
|
5,058
| | |
$
|
0.33
| |
|
Adjustments:
| | | | | | | | |
|
Acquisition fees and expenses
| | |
33
| | | |
0.00
| | | |
362
| | | |
0.03
| |
|
Equity based compensation
| | |
70
| | | |
0.01
| | | |
31
| | | |
0.00
| |
|
(Gains) losses on assets
| |
|
-
|
| |
|
-
|
| |
|
(2,882
|
)
| |
|
(0.19
|
)
|
|
Core Funds From Operations
| |
$
|
5,900
|
| |
$
|
0.19
|
| |
$
|
2,569
|
| |
$
|
0.17
|
|
(1)
|
|
IRT believes that FFO and CFFO, each of which is a non-GAAP
measure, are additional appropriate measures of the operating
performance of a REIT and IRT in particular. IRT computes FFO in
accordance with the standards established by the National
Association of Real Estate Investment Trusts, or NAREIT, as net
income or loss allocated to common stock (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.
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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
acquisition expenses, expensed costs related to the issuance of
shares of our common stock, gains or losses on real estate
transactions and equity-based compensation expenses, from the
determination of FFO. IRT incurs acquisition expenses in connection
with acquisitions of real estate properties and expenses those costs
when incurred in accordance with U.S. GAAP. As these expenses are
one-time and reflective of investing activities rather than
operating performance, IRT adds back these costs to FFO in
determining CFFO.
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IRT’s calculation of CFFO differs from the methodology used for
calculating CFFO by certain other REITs and, accordingly, IRT’s CFFO
may not be comparable to CFFO reported by other REITs. IRT’s
management utilizes FFO and CFFO as measures of IRT’s operating
performance, and believes they are also useful to investors, because
they facilitate an understanding of IRT’s operating performance
after adjustment for certain non-cash items, such as depreciation
and amortization expenses, and acquisition expenses and pursuit
costs that are required by GAAP to be expensed but may not
necessarily be indicative of current operating performance and that
may not accurately compare IRT’s operating performance between
periods. Furthermore, although FFO, CFFO and other supplemental
performance measures are defined in various ways throughout the REIT
industry, IRT also believes that FFO and CFFO may provide IRT and
our investors with an additional useful measure to compare IRT’s
financial performance to certain other REITs. IRT also uses CFFO for
purposes of determining the quarterly incentive fee, if any, payable
to our advisor. 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. Neither FFO nor CFFO should be
considered as an alternative to net income as an indicator of IRT’s
operating performance or as an alternative to cash flow from
operating activities as a measure of IRT’s liquidity.
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(2)
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Based on 31,768,468 weighted-average shares outstanding-diluted
for the three-month period ended March 31, 2015.
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(3)
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Based on 15,213,951 weighted-average shares outstanding-diluted
for the three-month period ended March 31, 2014.
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Independence Realty Trust, Inc.
Andres Viroslav, 215.243.9000
aviroslav@irtreit.com
Source: Independence Realty Trust, Inc.