Company Website:
http://www.irtreit.com
PHILADELPHIA -- (Business Wire)
Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT) today announced
second quarter 2014 financial results.
Highlights
-
Core funds from operations (“CFFO”) increased 160% to $3.4 million for
the quarter ended June 30, 2014 from $1.3 million for the quarter
ended June 30, 2013.
-
Operating income increased 47% to $1.8 million for the quarter ended
June 30, 2014 from $1.2 million for the quarter ended June 30, 2013.
-
Total revenues grew 148% to $11.6 million for the quarter ended June
30, 2014 from $4.7 million for the quarter ended June 30, 2013.
-
On July 21, 2014, IRT completed its underwritten public offering
selling 8,050,000 shares of IRT common stock for $9.50 per share
raising gross proceeds of $76.5 million. RAIT Financial Trust
(“RAIT”), IRT’s largest stockholder and the parent company of IRT’s
external advisor, purchased 300,000 shares of common stock in the
offering, at the public offering price, for which no underwriting
discounts and commissions were paid to the underwriters. After giving
effect to this offering, the percent of IRT’s outstanding common stock
held by RAIT was reduced from 39.4% to 28.2%.
-
IRT acquired 2 properties totaling 372 units for $41.8 million during
the quarter ended June 30, 2014.
Financial Results
IRT reported CFFO, a non-GAAP financial measure, for the three-month
period ended June 30, 2014 of $3.4 million, or $0.19 per share – diluted
based on 17.7 million weighted-average shares outstanding – diluted, as
compared to CFFO for the three-month period ended June 30, 2013 of $1.3
million, or $0.23 per share – diluted based on 5.6 million
weighted-average shares outstanding – diluted. IRT reported a net loss
allocable to common stock for the three-month period ended June 30, 2014
of $(0.1) million, or $(0.01) per share – diluted based on 17.7 million
weighted-average shares outstanding – diluted, as compared to net income
allocable to common stock for the three-month period ended June 30, 2013
of $0.05 million, or $0.01 per share – diluted based on 5.6 million
weighted-average shares outstanding – diluted.
IRT reported CFFO for the six-month period ended June 30, 2014 of $5.9
million, or $0.36 per share – diluted based on 16.5 million
weighted-average shares outstanding – diluted, as compared to CFFO for
the six-month period ended June 30, 2013 of $2.6 million, or $0.46 per
share – diluted based on 5.6 million weighted-average shares outstanding
– diluted. IRT reported a net income allocable to common stock for the
six-month period ended June 30, 2014 of $2.8 million, or $0.17 per share
– diluted based on 16.5 million weighted-average shares outstanding –
diluted, as compared to net income allocable to common stock for the
six-month period ended June 30, 2013 of $0.05 million, or $0.01 per
share – diluted based on 5.6 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 July 10, 2014, IRT’s Board of Directors declared monthly cash
dividends for the third quarter of 2014 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 third 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 |
June 2014
| | | |
$0.06
| | | |
7/31/2014
| | | |
8/15/2014
|
July 2014
| | | |
$0.06
| | | |
8/29/2014
| | | |
9/16/2014
|
August 2014
| | | |
$0.06
| | | |
9/30/2014
| | | |
10/15/2014
|
| | | | | | | | | | | |
|
|
Key Statistics |
(Unaudited and dollars in thousands, except per share and per unit
information)
|
|
|
|
As of or For the Three-Month Periods Ended
|
| |
|
| | June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| | 2014 |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
Financial Statistics: | | | | | | | | | | |
Total revenue
| |
$11,649
| |
$8,135
| |
$5,768
| |
$4,787
| |
$4,700
|
Earnings (loss) per share-diluted
| |
$(0.01)
| |
$0.19
| |
$0.03
| |
$0.03
| |
$0.01
|
Funds from Operations (“FFO”) per share
| |
$0.18
| |
$0.33
| |
$0.17
| |
$0.17
| |
$0.23
|
Core funds from operations (“CFFO”) per share
| |
$0.19
| |
$0.17
| |
$0.20
| |
$0.17
| |
$0.23
|
Dividends declared per common share
| |
$0.18
| |
$0.18
| |
$0.16
| |
$0.16
| |
$0.16
|
Total Shares Outstanding
| |
17,751,540
| |
17,742,540
| |
9,652,540
| |
9,643,540
| |
5,643,540
|
| | | | | | | | | |
|
Apartment Property Portfolio: | | | | | | | | | | |
Reported investments in real estate at cost
| |
$362,323
| |
$320,437
| |
$190,096
| |
$166,665
| |
$154,040
|
Net operating income
| |
$6,064
| |
$4,147
| |
$3,159
| |
$2,373
| |
$2,459
|
Number of properties owned
| |
19
| |
17
| |
10
| |
9
| |
8
|
Multifamily units owned
| |
5,342
| |
4,970
| |
2,790
| |
2,358
| |
2,004
|
Portfolio weighted average occupancy
| |
93.1%
| |
93.9%
| |
94.6%
| |
94.4%
| |
94.2%
|
Weighted average monthly effective rent per unit (1) | |
$764
| |
$730
| |
$765
| |
$784
| |
$784
|
| | | | | | | | | |
|
(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. Same Store weighted
average effective rent per unit was $798, $795, $792, $784 and $784
for the periods presented above, respectively.
|
| |
|
|
Properties |
|
The following table presents an overview of our apartment
portfolio as of June 30, 2014:
|
|
|
|
| |
| |
| |
| |
| |
| Average Monthly |
| | | | | | Year | | | | | | Effective |
| | | | Acquisition | | Built or | | | | Physical | | Rent per |
Property Name | | Location | | Date | | Renovated(1) | | Units(2) | | Occupancy(3) | | Occupied Unit(4) |
Belle Creek
| |
Henderson, Colorado
| |
4/29/2011
| |
2011
| |
162(5) | |
97.5%
| |
$989
|
Copper Mill
| |
Austin, Texas
| |
4/29/2011
| |
2010
| |
320
| |
97.5%
| |
786
|
Crestmont
| |
Marietta, Georgia
| |
4/29/2011
| |
2010
| |
228
| |
99.1%
| |
716
|
Cumberland Glen
| |
Smyrna, Georgia
| |
4/29/2011
| |
2010
| |
222
| |
96.4%
| |
704
|
Heritage Trace
| |
Newport News, Virginia
| |
4/29/2011
| |
2010
| |
200
| |
90.5%
| |
687
|
Tresa at Arrowhead
| |
Phoenix, Arizona
| |
4/29/2011
| |
2006
| |
360
| |
95.0%
| |
821
|
Centrepoint
| |
Tucson, Arizona
| |
12/16/2011
| |
2006
| |
320
| |
95.9%
| |
816
|
Runaway Bay
| |
Indianapolis, Indiana
| |
10/11/2012
| |
2002
| |
192
| |
95.3%
| |
909
|
Berkshire Square
| |
Indianapolis, Indiana
| |
9/19/2013
| |
2012
| |
354
| |
92.1%
| |
584
|
The Crossings
| |
Jackson, Mississippi
| |
11/22/2013
| |
2006
| |
432
| |
92.4%
| |
735
|
Reserve at Eagle Ridge
| |
Waukegan, Illinois
| |
1/31/2014
| |
2008
| |
370
| |
94.6%
| |
934
|
Windrush
| |
Edmond, Oklahoma
| |
2/28/2014
| |
2011
| |
160
| |
85.6%
| |
775
|
Heritage Park
| |
Oklahoma City, Oklahoma
| |
2/28/2014
| |
2011
| |
453
| |
90.5%
| |
619
|
Raindance
| |
Oklahoma City, Oklahoma
| |
2/28/2014
| |
2011
| |
504
| |
90.5%
| |
532
|
Augusta
| |
Oklahoma City, Oklahoma
| |
2/28/2014
| |
2011
| |
197
| |
82.2%
| |
724
|
Invitational
| |
Oklahoma City, Oklahoma
| |
2/28/2014
| |
2011
| |
344
| |
93.0%
| |
673
|
King’s Landing
| |
Creve Coeur, Missouri
| |
3/31/2014
| |
2005
| |
152
| |
93.6%
| |
1,460
|
Carrington Park
| |
Little Rock, Arkansas
| |
5/07/2014
| |
1999
| |
202
| |
92.6%
| |
1,066
|
Arbors at the Reservoir
| |
Ridgeland, Mississippi
| |
6/04/2014
| |
2000
| |
170
| |
93.5%
| |
— (6) |
|
Total/Weighted Average | | | |
5,342
| |
93.1%
| |
$764
|
| | | | | | | |
|
(1)
|
|
All dates are for the year in which a significant renovation program
was completed, except for Runaway Bay, Arbors at the Reservoir and
King’s Landing, which is the year construction was completed.
|
(2)
| |
Units represents the total number of apartment units available for
rent at June 30, 2014.
|
(3)
| |
Physical occupancy for each of our properties is calculated as (i)
total units rented as of June 30, 2014 divided by (ii) total units
available as of June 30, 2014, 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 June 30, 2014.
|
(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
$1,603, or $16 per square foot per year. These four tenants are
principally engaged in the following businesses: grocery, retail and
various retail services.
|
(6)
| |
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. As of June 2014, the average monthly effective rent per
occupied unit was $1,064.
|
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|
Conference Call
All interested parties can listen to the live conference call webcast at
9:00 AM ET on Friday, August 1, 2014 from the investor relations section
of the IRT website at www.irtreit.com
or by dialing 877.280.4956, access code 81504352. 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, August 8, 2014, by dialing 888.286.8010, access code
49252720.
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 | | For the Six-Month |
| | Period Ended | | Period Ended |
| | June 30 | | June 30 |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
Revenues: | | |
| | | |
| |
Rental income
| |
$
|
10,613
| | |
$
|
4,218
| | |
$
|
17,966
| | |
$
|
8,396
| |
Tenant reimbursement income
| | |
436
| | | |
220
| | | |
802
| | | |
443
| |
Other income
| |
| 600 |
| |
| 262 |
| |
| 1,016 |
| |
| 549 |
|
Total revenue
| | |
11,649
| | | |
4,700
| | | |
19,784
| | | |
9,388
| |
Expenses: | | | | | | | | |
Property operating expenses
| | |
5,585
| | | |
2,241
| | | |
9,573
| | | |
4,406
| |
General and administrative expenses
| | |
378
| | | |
94
| | | |
546
| | | |
271
| |
Asset management fees
| | |
501
| | | |
79
| | | |
647
| | | |
161
| |
Acquisition expenses
| | |
152
| | | |
-
| | | |
514
| | | |
-
| |
Depreciation and amortization
| |
| 3,232 |
| |
| 1,063 |
| |
| 5,355 |
| |
| 2,099 |
|
Total expenses
| |
| 9,848 |
| |
| 3,477 |
| |
| 16,635 |
| |
| 6,937 |
|
Operating income | | |
1,801
| | | |
1,223
| | | |
3,149
| | | |
2,451
| |
Interest expense
| | |
(1,930
|
)
| | |
(899
|
)
| | |
(3,229
|
)
| | |
(1,787
|
)
|
Interest income
| | |
1
| | | |
-
| | | |
5
| | | |
-
| |
Gain (loss) on assets
| |
| - |
| |
| - |
| |
| 2,882 |
| |
| - |
|
Net income (loss): | | |
(128
|
)
| | |
324
| | | |
2,807
| | | |
664
| |
(Income) loss allocated to preferred stock
| | |
-
| | | |
(4
|
)
| | |
-
| | | |
(8
|
)
|
(Income) loss allocated to non-controlling interests
| |
| - |
| |
| (272 | ) | |
| - |
| |
| (604 | ) |
Net income (loss) allocable to common stock | | $ | (128 | ) | | $ | 48 |
| | $ | 2,807 |
| | $ | 52 |
|
| | | | | | | |
|
Earnings (loss) per share: | | | | | | | | |
Basic
| | $ | (0.01 | ) | | $ | 0.01 |
| | $ | 0.17 |
| | $ | 0.03 |
|
Diluted
| | $ | (0.01 | ) | | $ | 0.01 |
| | $ | 0.17 |
| | $ | 0.03 |
|
Weighted-average shares: | | | | | | | | |
Basic
| |
| 17,707,287 |
| |
| 3,556,349 |
| |
| 16,459,623 |
| |
| 1,959,998 |
|
Diluted
| |
| 17,707,287 |
| |
| 3,556,349 |
| |
| 16,484,357 |
| |
| 1,959,998 |
|
Dividends declared per common share | | $ | 0.18 |
| | $ | 0.16 |
| | $ | 0.36 |
| | $ | 0.31 |
|
| | | | | | | | | | | | | | | |
|
|
| |
| |
Independence Realty Trust, Inc.
|
Consolidated Balance Sheets
|
(Dollars in thousands, except share and per share information)
|
(unaudited)
|
| | | |
|
| | As of | | As of |
| | June 30, | | December 31, |
| | 2014 |
| 2013 |
Assets: | | | | |
Investments in real estate:
| | | | |
Investments in real estate at cost
| |
$
|
362,323
| | |
$
|
190,096
| |
Accumulated depreciation
| |
| (18,804 | ) | |
| (15,775 | ) |
Investments in real estate, net
| | |
343,519
| | | |
174,321
| |
Cash and cash equivalents
| | |
8,054
| | | |
3,334
| |
Restricted cash
| | |
2,698
| | | |
1,122
| |
Accounts receivable and other assets
| | |
2,682
| | | |
1,731
| |
Intangible assets, net of accumulated amortization of $2,513 and
$569, respectively
| | |
1,126
| | | |
517
| |
Deferred costs, net of accumulated amortization of $293 and $151,
respectively
| |
| 1,568 |
| |
| 846 |
|
Total assets | | $ | 359,647 |
| | $ | 181,871 |
|
| | | |
|
Liabilities and Equity: | | | | |
Indebtedness
| |
$
|
215,628
| | |
$
|
103,303
| |
Accounts payable and accrued expenses
| | |
5,725
| | | |
2,374
| |
Accrued interest payable
| | |
30
| | | |
63
| |
Dividends payable
| | |
1,076
| | | |
515
| |
Other liabilities
| |
| 946 |
| |
| 708 |
|
Total liabilities | | |
223,405
| | | |
106,963
| |
| | | |
|
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,
17,751,540 and 9,652,540 shares issued and outstanding, including
40,000 unvested restricted common share awards as of June 30, 2014
| | |
177
| | | |
96
| |
Additional paid-in capital
| | |
140,973
| | | |
78,112
| |
Retained earnings (accumulated deficit)
| |
|
(6,867
|
)
|
|
|
(3,300
|
)
|
Total shareholders’ equity | | |
134,283
| | | |
74,908
| |
Non-controlling interests
| |
|
1,959
|
|
|
|
-
|
|
Total Equity | |
|
136,242
|
|
|
|
74,908
|
|
Total liabilities and equity | |
$
|
359,647
|
|
|
$
|
181,871
|
|
| | | | | | | |
|
|
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 |
| |
| For the Six-Month Period Ended |
| |
| | June 30, |
|
|
| June 30, |
|
|
| | 2014 |
|
|
| 2013 |
|
|
| 2014 |
|
|
| 2013 |
|
|
| | |
| Per Share |
| | | Per Share | | |
| Per Share |
| | | Per Share |
| | Amount | | (2) | | Amount | | (3) | | Amount | | (2) | | Amount | | (3) |
Funds From Operations: | | | | | | | | | | | | | | | | |
Net income (loss)
| |
$(128)
| |
$(0.01)
| |
$324
| |
$0.06
| |
$2,807
| |
$0.17
| |
$664
| |
$0.12
|
Adjustments:
| | | | | | | | | | | | | | | | |
Income allocated to preferred shares
| |
-
| |
-
| |
(4)
| |
0.00
| |
-
| |
-
| |
(8)
| |
0.00
|
Income allocated to preferred units
| |
-
| |
-
| |
(88)
| |
(0.02)
| |
-
| |
-
| |
(175)
| |
(0.03)
|
Real estate depreciation and amortization
| |
3,232
|
|
0.19
|
|
1,063
|
|
0.19
|
|
5,355
|
|
0.32
|
|
2,099
|
|
0.37
|
Funds From Operations
| |
$3,104
|
|
$0.18
|
|
$1,295
|
|
$0.23
|
|
$8,162
|
|
$0.49
|
|
$2,580
|
|
$0.46
|
| | | | | | | | | | | | | | | |
|
Core Funds From Operations: | | | | | | | | | | | | | | | | |
Funds From Operations
| |
$3,104
| |
$0.18
| |
$1,295
| |
$0.23
| |
$8,162
| |
$0.49
| |
$2,580
| |
$0.46
|
Adjustments:
| | | | | | | | | | | | | | | | |
Acquisition fees and expenses
| |
152
| |
0.01
| |
-
| |
-
| |
514
| |
0.03
| |
-
| |
-
|
Equity based compensation
| |
112
| |
0.00
| |
-
| |
-
| |
142
| |
0.01
| |
-
| |
-
|
(Gains) losses on assets
| |
-
|
|
-
|
|
-
|
|
-
|
|
(2,882)
|
|
(0.17)
|
|
-
|
|
-
|
Core Funds From Operations
| |
$3,368
|
|
$0.19
|
|
$1,295
|
|
$0.23
|
|
$5,936
|
|
$0.36
|
|
$2,580
|
|
$0.46
|
| | | | | | | | | | | | | | | |
|
(1)
|
|
IRT believes that FFO and Core FFO, 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.
|
| |
|
| |
Core FFO 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 Core FFO.
|
| |
|
| |
IRT’s calculation of Core FFO differs from the methodology used
for calculating Core FFO by certain other REITs and, accordingly,
IRT’s Core FFO may not be comparable to Core FFO reported by other
REITs. IRT’s management utilizes FFO and Core FFO 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,
Core FFO and other supplemental performance measures are defined
in various ways throughout the REIT industry, IRT also believes
that FFO and Core FFO may provide IRT and our investors with an
additional useful measure to compare IRT’s financial performance
to certain other REITs. IRT also uses Core FFO for purposes of
determining the quarterly incentive fee, if any, payable to our
advisor beginning with the second quarter of 2013. Neither FFO nor
Core FFO is equivalent to net income or cash generated from
operating activities determined in accordance with GAAP.
Furthermore, FFO and Core FFO 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 Core FFO 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.
|
| |
|
(2)
| |
Based on 17,707,287 and 16,484,357 weighted-average shares
outstanding-diluted for the three and six-month periods ended June
30, 2014.
|
| |
|
(3)
| |
Based on 5,643,122 and 5,632,028 weighted-average shares
outstanding-diluted for the three and six-month periods ended June
30, 2013.
|
| |
|
Contacts:
Independence Realty Trust, Inc.
Andres Viroslav, 215-243-9000
aviroslav@irtreit.com
Source: Independence Realty Trust, Inc.
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