PHILADELPHIA--(BUSINESS WIRE)--Independence Realty Trust, Inc. (IRT) (NYSE: IRT), a multifamily apartment REIT, today announced its third quarter 2021 financial results.

Third Quarter Highlights

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

The combination of favorable macro trends across our core markets and the execution of our growth initiatives continues to yield impressive returns, said Scott Schaeffer, Chairman and CEO of IRT. We delivered a 14.7% year-over-year increase in third quarter same store NOI, with our occupancy rate up 220 basis points to 96% and our average rental rate increasing 7.3% on a year-over-year basis. As we look forward, our ability to maintain occupancy, drive rental rates, and advance our value add program gives us confidence that we can continue to unlock value within our portfolio. We are also focused on the integration of the planned merger with STAR and are excited about the growth potential of our combined business.

Same Store Property Operating Results

Third Quarter 2021 Compared toThird Quarter 2020(1)

Nine Months Ended 9/30/21Compared to Nine MonthsEnded 9/30/20

Rental and other property revenue

9.4% increase

7.8% increase

Property operating expenses

1.7% increase

4.4% increase

Net operating income (NOI)

14.7% increase

10.1% increase

Portfolio average occupancy

220 bps increase to 96.0%

270 bps increase to 95.6%

Portfolio average rental rate

7.3% increase to $1,227

4.6% increase to $1,190

NOI Margin

290 bps increase to 62.2%

130 bps increase to 61.7%

(1)

Same Store Property Operating Results, Excluding Value Add

The same store portfolio results below exclude 13 communities that are both part of the same store portfolio and were actively undergoing Value Add renovations during the three months ended September 30, 2021.

Third Quarter 2021 Compared toThird Quarter 2020(1)

Nine Months Ended 9/30/21Compared to Nine MonthsEnded 9/30/20(1)

Rental and other property revenue

8.3% increase

6.1% increase

Property operating expenses

1.6% increase

4.5% increase

Net operating income (NOI)

12.8% increase

7.1% increase

Portfolio average occupancy

230 bps increase to 96.4%

250 bps increase to 96.1%

Portfolio average rental rate

6.3% increase to $1,219

3.3% increase to $1,186

NOI Margin

250 bps increase to 61.6%

60 bps increase to 61.5%

(1)

COVID-19 Metrics (1)(2)

Rent collections

3Q 2021

3Q 2020

2Q 2021

Rent collected for the period presented, as a percentage of rent billed (3)

98.4%

99.7%

99.4%

(1)

(2)

(3)

As a result of the COVID-19 pandemic, we recorded a provision for bad debts of $122,000 in the third quarter of 2021. The table below presents additional details on the components of bad debt:

Components of Bad Debt (1)

3Q 2021

3Q 2020

2Q 2021

Amount

Percentage

Amount

Percentage

Amount

Percentage

Charge-offs, net

$534

0.9%

Excerpt from:

Independence Realty Trust Announces Third Quarter 2021 Financial Results & Updates Full Year 2021 Guidance - Business Wire