PHILADELPHIA--(BUSINESS WIRE)--Oct 28, 2020--

Independence Realty Trust, Inc. (IRT) (NYSE: IRT), a multifamily apartment REIT, today announced its third quarter 2020 financial results.

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.

Our quarter and year-to-date 2020 results reflect the continued resiliency of our portfolio and dedication of our team. said Scott Schaeffer, Chairman and CEO of IRT. We increased same store portfolio average occupancy on a quarter-over-quarter and year-over-year basis and delivered NOI growth of 0.5% in the third quarter, collecting 98.9% of rents billed and maintaining a conservative reserve for uncollected rents. We remain confident in our strategy, as we look to close out 2020 with positive momentum heading into 2021.

IRT is committed to managing our business for long-term success, as evidenced by recent advancements in our value add and capital recycling programs. In the third quarter, we progressed with renovations at 17 of our properties and have taken a proactive approach to acquiring and divesting properties which will better position our portfolio. Our actions support continued efforts to increase our return on investment at existing properties, as well as rotate capital out of non-core markets that offer limited growth potential and into core markets that fit our long-term investment criteria. We are also focused on the strength of our balance sheet, having approximately $217 million in total liquidity at quarter-end.

Same Store Property Operating Results

Third Quarter 2020 Compared toThird Quarter 2019 (1)

Nine Months Ended 9/30/20Compared to Nine MonthsEnded 9/30/19 (1)

Rental and other property revenue

3.0% increase

3.0% increase

Property operating expenses

6.8% increase

3.6% increase

Net operating income (NOI)

0.5% increase

2.6% increase

Portfolio average occupancy

40 bps increase to 94.0%

40 bps decrease to 93.3%

Portfolio average rental rate

2.2% increase to $1,106

3.7% increase to $1,101

NOI Margin

150 bps decrease to 58.8%

30 bps decrease to 60.2%

(1)

Same Store Property Operating Results, Excluding Value Add

The same store portfolio results below exclude 16 communities that are both part of the same store portfolio and were actively undergoing Value Add renovations during the three months ended September 30, 2020.

Third Quarter 2020 Compared toThird Quarter 2019 (1)

Nine Months Ended 9/30/20Compared to Nine MonthsEnded 9/30/19 (1)

Rental and other property revenue

1.2% increase

1.9% increase

Property operating expenses

6.2% increase

1.9% increase

Net operating income (NOI)

2.1% decrease

1.9% increase

Portfolio average occupancy

40 bps decrease to 94.6%

50 bps decrease to 94.5%

Portfolio average rental rate

0.8% increase to $1,084

1.9% increase to $1,084

NOI Margin

200 bps decrease to 58.3%

No change 60.5%

(1)

(Dollars in thousands, except per unit data)

Rent collections

3Q 2020

3Q 2019

2Q 2020

Rent collected for the period presented, as apercentage of rent billed

98.8%

99.1%

98.2%

Deferred payment plans: (3)

Number of deferred payment plans originated

3

-

260

Amount of monthly rent deferred for period presented

$55

-

$424

Amount of monthly rent deferred for the periodpresented, as a percentage of rent billed

0.1%

0.0%

0.9%

Combined rent collected and rent subject to deferredpayment plans, as a percentage of rent billed

98.9%

99.1%

99.1%

(1)

(2)

(3)

During the third quarter of 2020 and as a result of the COVID-19 pandemic, we recorded a $80,000 provision for bad debts. The table below presents additional details on the components of bad debt:

Components of Bad Debt(1)

3Q 2020

3Q 2019

2Q 2020

Amount

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Independence Realty Trust Announces Third Quarter 2020 Financial Results - Cadillac News