FORM 10-Q
(Mark One)
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FORM 10-Q | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR
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o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
_________
(Exact Name of Registrant as Specified in Its Charter)
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(Exact Name of Registrant as Specified in Its Charter) |
Maryland | 26-4567130 | ||||
(State or Other Jurisdiction of
| (I.R.S. Employer
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1835 Market Street, Suite 2601 Philadelphia, PA |
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(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value per share | IRT | NYSE |
Large Accelerated filer |
| Accelerated filer |
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Non-Accelerated filer |
| Smaller reporting company |
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Emerging growth company |
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Page | ||||||||||
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| Item 1. Financial Statements |
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| As of September 30, 2017 |
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| As of December 31, 2016 |
| As of September 30, 2023 | As of December 31, 2022 | |||||||||||
ASSETS: |
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| ASSETS: | ||||||||||
Investments in real estate: |
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|
|
| Investments in real estate: | ||||||||||
Investments in real estate, at cost |
| $ | 1,427,057 |
|
| $ | 1,249,356 |
| Investments in real estate, at cost | $ | 6,754,022 | $ | 6,615,243 | ||||||
Accumulated depreciation |
|
| (75,084 | ) |
|
| (51,511 | ) | Accumulated depreciation | (567,200) | (425,034) | ||||||||
Investments in real estate, net |
|
| 1,351,973 |
|
|
| 1,197,845 |
| Investments in real estate, net | 6,186,822 | 6,190,209 | ||||||||
Real estate held for sale |
|
| 22,031 |
|
|
| 60,786 |
| Real estate held for sale | 75,392 | 35,777 | ||||||||
Investments in real estate under development | Investments in real estate under development | 83,547 | 105,518 | ||||||||||||||||
Cash and cash equivalents |
|
| 10,128 |
|
|
| 20,892 |
| Cash and cash equivalents | 17,216 | 16,084 | ||||||||
Restricted cash |
|
| 6,665 |
|
|
| 5,518 |
| Restricted cash | 31,772 | 27,933 | ||||||||
Accounts receivable and other assets |
|
| 9,416 |
|
|
| 5,211 |
| |||||||||||
Investments in unconsolidated real estate entities | Investments in unconsolidated real estate entities | 87,592 | 80,220 | ||||||||||||||||
Other assets | Other assets | 41,926 | 34,846 | ||||||||||||||||
Derivative assets |
|
| 3,581 |
|
|
| 3,867 |
| Derivative assets | 53,258 | 41,109 | ||||||||
Intangible assets, net of accumulated amortization of $664 and $0, respectively |
|
| 1,418 |
|
|
| 118 |
| |||||||||||
Intangible assets, net of accumulated amortization of $133 and $700, respectively | Intangible assets, net of accumulated amortization of $133 and $700, respectively | 265 | 399 | ||||||||||||||||
Total Assets |
| $ | 1,405,212 |
|
| $ | 1,294,237 |
| Total Assets | $ | 6,577,790 | $ | 6,532,095 | ||||||
LIABILITIES AND EQUITY: |
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|
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| LIABILITIES AND EQUITY: | ||||||||||
Indebtedness, net of unamortized deferred financing costs of $5,697 and $6,371, respectively |
| $ | 731,625 |
|
| $ | 743,817 |
| |||||||||||
Indebtedness, net | Indebtedness, net | $ | 2,675,117 | $ | 2,631,645 | ||||||||||||||
Indebtedness associated with real estate held for sale | Indebtedness associated with real estate held for sale | 40,593 | — | ||||||||||||||||
Accounts payable and accrued expenses |
|
| 23,236 |
|
|
| 14,028 |
| Accounts payable and accrued expenses | 138,549 | 109,677 | ||||||||
Accrued interest payable |
|
| 134 |
|
|
| 491 |
| Accrued interest payable | 8,275 | 7,713 | ||||||||
Dividends payable |
|
| 5,176 |
|
|
| 4,297 |
| Dividends payable | 36,858 | 32,189 | ||||||||
Other liabilities |
|
| 3,063 |
|
|
| 2,913 |
| Other liabilities | 10,642 | 13,004 | ||||||||
Total Liabilities |
|
| 763,234 |
|
|
| 765,546 |
| Total Liabilities | 2,910,034 | 2,794,228 | ||||||||
Equity: |
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|
|
|
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|
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| Equity: | ||||||||||
Stockholders’ equity: |
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|
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|
|
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| Stockholders’ equity: | ||||||||||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively |
|
| - |
|
|
| — |
| 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, 83,518,602 and 68,996,070 shares issued and outstanding, including 295,846 and 281,000 unvested restricted common share awards, respectively |
|
| 835 |
|
|
| 690 |
| |||||||||||
Common stock, $0.01 par value; 500,000,000 shares authorized, 224,695,566 and 224,064,940 shares issued and outstanding, including 281,650 and 232,134 unvested restricted common share awards, respectively | Common stock, $0.01 par value; 500,000,000 shares authorized, 224,695,566 and 224,064,940 shares issued and outstanding, including 281,650 and 232,134 unvested restricted common share awards, respectively | 2,247 | 2,241 | ||||||||||||||||
Additional paid-in capital |
|
| 691,550 |
|
|
| 564,633 |
| Additional paid-in capital | 3,751,001 | 3,751,056 | ||||||||
Accumulated other comprehensive income |
|
| 3,466 |
|
|
| 3,683 |
| Accumulated other comprehensive income | 47,910 | 35,102 | ||||||||
Retained earnings (accumulated deficit) |
|
| (76,419 | ) |
|
| (62,181 | ) | |||||||||||
Accumulated deficit | Accumulated deficit | (271,982) | (191,735) | ||||||||||||||||
Total stockholders’ equity |
|
| 619,432 |
|
|
| 506,825 |
| Total stockholders’ equity | 3,529,176 | 3,596,664 | ||||||||
Noncontrolling interests |
|
| 22,546 |
|
|
| 21,866 |
| Noncontrolling interests | 138,580 | 141,203 | ||||||||
Total Equity |
|
| 641,978 |
|
|
| 528,691 |
| Total Equity | 3,667,756 | 3,737,867 | ||||||||
Total Liabilities and Equity |
| $ | 1,405,212 |
|
| $ | 1,294,237 |
| Total Liabilities and Equity | $ | 6,577,790 | $ | 6,532,095 |
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| For the Three Months Ended September 30, |
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| For the Nine Months Ended September 30, |
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|
| 2017 |
|
| 2016 |
|
| 2017 |
|
| 2016 |
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REVENUE: |
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Rental income |
| $ | 35,531 |
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| $ | 34,333 |
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| $ | 105,444 |
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| $ | 103,271 |
|
Tenant reimbursement income |
|
| 1,373 |
|
|
| 1,351 |
|
|
| 4,232 |
|
|
| 4,194 |
|
Other property income |
|
| 2,960 |
|
|
| 2,680 |
|
|
| 8,514 |
|
|
| 7,892 |
|
Property management and other income |
|
| 202 |
|
|
| - |
|
|
| 579 |
|
|
| - |
|
Total revenue |
|
| 40,066 |
|
|
| 38,364 |
|
|
| 118,769 |
|
|
| 115,357 |
|
EXPENSES: |
|
|
|
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Property operating expenses |
|
| 16,196 |
|
|
| 16,107 |
|
|
| 48,106 |
|
|
| 47,588 |
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Property management expenses |
|
| 1,328 |
|
|
| 1,219 |
|
|
| 4,310 |
|
|
| 3,710 |
|
General and administrative expenses |
|
| 2,322 |
|
|
| 2,665 |
|
|
| 7,128 |
|
|
| 8,074 |
|
Acquisition and integration expenses |
|
| 569 |
|
|
| 19 |
|
|
| 956 |
|
|
| 37 |
|
Depreciation and amortization expense |
|
| 8,671 |
|
|
| 7,765 |
|
|
| 24,289 |
|
|
| 26,927 |
|
Total expenses |
|
| 29,086 |
|
|
| 27,775 |
|
|
| 84,789 |
|
|
| 86,336 |
|
Operating income |
|
| 10,980 |
|
|
| 10,589 |
|
|
| 33,980 |
|
|
| 29,021 |
|
Interest expense |
|
| (6,963 | ) |
|
| (8,820 | ) |
|
| (21,573 | ) |
|
| (27,815 | ) |
Hedge ineffectiveness |
|
| 12 |
|
|
| - |
|
|
| - |
|
|
| - |
|
Other income (expense) |
|
| - |
|
|
| (2 | ) |
|
| (5 | ) |
|
| (2 | ) |
Net gains (losses) on sale of assets |
|
| (92 | ) |
|
| (1 | ) |
|
| 15,873 |
|
|
| 31,773 |
|
Gains (losses) on extinguishment of debt |
|
| - |
|
|
| - |
|
|
| (572 | ) |
|
| (558 | ) |
Acquisition related debt extinguishment expenses |
|
| (2,781 | ) |
|
| - |
|
|
| (2,781 | ) |
|
| - |
|
Gains (losses) on TSRE merger |
|
| - |
|
|
| 641 |
|
|
| - |
|
|
| 732 |
|
Net income (loss): |
|
| 1,156 |
|
|
| 2,407 |
|
|
| 24,922 |
|
|
| 33,151 |
|
(Income) loss allocated to noncontrolling interest |
|
| (59 | ) |
|
| (140 | ) |
|
| (1,009 | ) |
|
| (1,972 | ) |
Net income (loss) allocable to common shares |
| $ | 1,097 |
|
| $ | 2,267 |
|
| $ | 23,913 |
|
| $ | 31,179 |
|
Earnings (loss) per share: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.02 |
|
| $ | 0.05 |
|
| $ | 0.34 |
|
| $ | 0.66 |
|
Diluted |
| $ | 0.02 |
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| $ | 0.05 |
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| $ | 0.34 |
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| $ | 0.66 |
|
Weighted-average shares: |
|
|
|
|
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|
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|
|
|
|
|
|
|
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Basic |
|
| 71,972,394 |
|
|
| 47,215,918 |
|
|
| 69,875,802 |
|
|
| 47,164,543 |
|
Diluted |
|
| 72,144,544 |
|
|
| 47,314,629 |
|
|
| 70,105,571 |
|
|
| 47,190,139 |
|
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
Rental and other property revenue | $ | 168,375 | $ | 160,300 | $ | 493,111 | $ | 464,921 | |||||||||||||||
Other revenue | 232 | 300 | 826 | 805 | |||||||||||||||||||
Total revenue | 168,607 | 160,600 | 493,937 | 465,726 | |||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Property operating expenses | 63,300 | 59,967 | 184,627 | 174,825 | |||||||||||||||||||
Property management expenses | 7,232 | 5,744 | 20,421 | 17,440 | |||||||||||||||||||
General and administrative expenses | 3,660 | 5,625 | 17,724 | 20,521 | |||||||||||||||||||
Depreciation and amortization expense | 55,546 | 49,722 | 163,066 | 200,688 | |||||||||||||||||||
Casualty losses (gains), net | 35 | (191) | 866 | (7,176) | |||||||||||||||||||
Total expenses | 129,773 | 120,867 | 386,704 | 406,298 | |||||||||||||||||||
Interest expense | (22,033) | (22,093) | (66,383) | (63,618) | |||||||||||||||||||
(Loss on impairment) gain on sale of real estate assets, net | (11,268) | — | (10,284) | 94,712 | |||||||||||||||||||
Merger and integration costs | — | (275) | — | (3,477) | |||||||||||||||||||
Other (loss) income, net | (369) | 765 | (348) | 1,501 | |||||||||||||||||||
Loss from investments in unconsolidated real estate entities | (1,178) | (1,477) | (3,158) | (2,411) | |||||||||||||||||||
Restructuring costs | — | — | (3,213) | — | |||||||||||||||||||
Net income: | 3,986 | 16,653 | 23,847 | 86,135 | |||||||||||||||||||
Income allocated to noncontrolling interest | (56) | (430) | (559) | (2,517) | |||||||||||||||||||
Net income allocable to common shares | $ | 3,930 | $ | 16,223 | $ | 23,288 | $ | 83,618 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.02 | $ | 0.07 | $ | 0.10 | $ | 0.38 | |||||||||||||||
Diluted | $ | 0.02 | $ | 0.07 | $ | 0.10 | $ | 0.38 | |||||||||||||||
Weighted-average shares: | |||||||||||||||||||||||
Basic | 224,498,374 | 221,960,609 | 224,383,590 | 221,312,261 | |||||||||||||||||||
Diluted | 225,140,555 | 222,867,546 | 225,103,475 | 222,359,585 |
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| For the Three Months Ended September 30, |
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| For the Nine Months Ended September 30, |
| ||||||||||
|
| 2017 |
|
| 2016 |
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| 2017 |
|
| 2016 |
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Net income (loss) |
| $ | 1,156 |
|
| $ | 2,407 |
|
| $ | 24,922 |
|
| $ | 33,151 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of interest rate hedges |
|
| (14 | ) |
|
| 217 |
|
|
| (424 | ) |
|
| (990 | ) |
Realized (gains) losses on interest rate hedges reclassified to earnings |
|
| (14 | ) |
|
| 251 |
|
|
| 177 |
|
|
| 271 |
|
Total other comprehensive income |
|
| (28 | ) |
|
| 468 |
|
|
| (247 | ) |
|
| (719 | ) |
Comprehensive income (loss) before allocation to noncontrolling interests |
|
| 1,128 |
|
|
| 2,875 |
|
|
| 24,675 |
|
|
| 32,432 |
|
Allocation to noncontrolling interests |
|
| (33 | ) |
|
| (140 | ) |
|
| (979 | ) |
|
| (1,972 | ) |
Comprehensive income (loss) |
| $ | 1,095 |
|
| $ | 2,735 |
|
| $ | 23,696 |
|
| $ | 30,460 |
|
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | 3,986 | $ | 16,653 | $ | 23,847 | $ | 86,135 | |||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Change in fair value of interest rate hedges | 14,761 | 19,439 | 26,681 | 54,318 | |||||||||||||||||||
Realized (gains) losses on interest rate hedges reclassified to earnings | (5,433) | 214 | (13,559) | (3,408) | |||||||||||||||||||
Total other comprehensive income | 9,328 | 19,653 | 13,122 | 50,910 | |||||||||||||||||||
Comprehensive income before allocation to noncontrolling interests | 13,314 | 36,306 | 36,969 | 137,045 | |||||||||||||||||||
Allocation to noncontrolling interests | (297) | (944) | (873) | (3,918) | |||||||||||||||||||
Comprehensive income | $ | 13,017 | $ | 35,362 | $ | 36,096 | $ | 133,127 |
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| Common Shares |
|
| Par Value Common Shares |
|
| Additional Paid In Capital |
|
| Accumulated Other Comprehensive Income |
|
| Retained Earnings (Deficit) |
|
| Total Stockholders’ Equity |
|
| Noncontrolling Interests |
|
| Total Equity |
| ||||||||
Balance, January 1, 2017 |
|
| 68,996,070 |
|
| $ | 690 |
|
| $ | 564,633 |
|
| $ | 3,683 |
|
| $ | (62,181 | ) |
| $ | 506,825 |
|
| $ | 21,866 |
|
| $ | 528,691 |
|
Net income |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 23,913 |
|
|
| 23,913 |
|
|
| 1,009 |
|
|
| 24,922 |
|
Other comprehensive income |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (217 | ) |
|
| - |
|
|
| (217 | ) |
|
| (30 | ) |
|
| (247 | ) |
Stock compensation expense |
|
| 168,010 |
|
|
| 1 |
|
|
| 1,547 |
|
|
| - |
|
|
| - |
|
|
| 1,548 |
|
|
| - |
|
|
| 1,548 |
|
Issuance of common shares |
|
| 14,375,000 |
|
|
| 144 |
|
|
| 125,563 |
|
|
|
|
|
|
|
|
|
|
| 125,707 |
|
|
|
|
|
|
| 125,707 |
|
Issuance of LP Units related to acquisitions |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1,654 |
|
|
| 1,654 |
|
Repurchase of shares related to equity award tax withholding |
|
| (60,377 | ) |
|
| (1 | ) |
|
| (564 | ) |
|
| - |
|
|
| - |
|
|
| (565 | ) |
|
| - |
|
|
| (565 | ) |
Conversion of noncontrolling interest to common shares |
|
| 39,899 |
|
|
| 1 |
|
|
| 371 |
|
|
| - |
|
|
| - |
|
|
| 372 |
|
|
| (372 | ) |
|
| - |
|
Common dividends declared |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (38,151 | ) |
|
| (38,151 | ) |
|
| - |
|
|
| (38,151 | ) |
Distribution to noncontrolling interest declared |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (1,581 | ) |
|
| (1,581 | ) |
Balance, September 30, 2017 |
|
| 83,518,602 |
|
| $ | 835 |
|
| $ | 691,550 |
|
| $ | 3,466 |
|
| $ | (76,419 | ) |
| $ | 619,432 |
|
| $ | 22,546 |
|
| $ | 641,978 |
|
|
|
|
|
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|
|
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Common Shares | Par Value Common Shares | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | 224,064,940 | $ | 2,241 | $ | 3,751,056 | $ | 35,102 | $ | (191,735) | $ | 3,596,664 | $ | 141,203 | $ | 3,737,867 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 8,648 | 8,648 | 224 | 8,872 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($0.14 per share) | — | — | — | — | (31,688) | (31,688) | — | (31,688) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (10,001) | — | (10,001) | (289) | (10,290) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | 383,439 | 4 | 4,774 | — | — | 4,778 | — | 4,778 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares related to equity award tax withholding | (36,109) | — | (3,757) | — | — | (3,757) | — | (3,757) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of noncontrolling interest to common shares | 144,600 | 1 | 1,014 | — | — | 1,015 | (1,015) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net | — | — | (13) | — | — | (13) | — | (13) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest declared ($0.14 per unit) | — | — | — | — | — | — | (834) | (834) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | 224,556,870 | $ | 2,246 | $ | 3,753,074 | $ | 25,101 | $ | (214,775) | $ | 3,565,646 | $ | 139,289 | $ | 3,704,935 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 10,709 | 10,709 | 279 | 10,988 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($0.16 per share) | — | — | — | — | (35,906) | (35,906) | — | (35,906) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 13,722 | — | 13,722 | 363 | 14,085 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | 142,206 | 1 | 1,784 | — | — | 1,785 | — | 1,785 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares related to equity award tax withholding | (1,187) | — | (19) | — | — | (19) | — | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest declared ($0.16 per unit) | — | — | — | — | — | — | (951) | (951) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | 224,697,889 | $ | 2,247 | $ | 3,754,839 | $ | 38,823 | $ | (239,972) | $ | 3,555,937 | $ | 138,980 | $ | 3,694,917 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 3,930 | 3,930 | 56 | 3,986 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($0.16 per share) | — | — | — | — | (35,940) | (35,940) | — | (35,940) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 9,087 | — | 9,087 | 241 | 9,328 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | (845) | — | 379 | — | — | 379 | — | 379 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares related to equity award tax withholding | (1,478) | — | (3,809) | — | — | (3,809) | — | (3,809) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net | — | — | (408) | — | — | (408) | — | (408) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest declared ($0.16 per unit) | — | — | — | — | — | — | (953) | (953) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of noncontrolling interest upon consolidation of former unconsolidated real estate entity | — | — | — | — | — | — | 256 | 256 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | 224,695,566 | $ | 2,247 | $ | 3,751,001 | $ | 47,910 | $ | (271,982) | $ | 3,529,176 | $ | 138,580 | $ | 3,667,756 |
Common Shares | Par Value Common Shares | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 220,753,735 | $ | 2,208 | $ | 3,678,903 | $ | (11,940) | $ | (188,410) | $ | 3,480,761 | $ | 161,315 | $ | 3,642,076 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 74,600 | 74,600 | 2,280 | 76,880 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($0.12 per share) | — | — | — | — | (26,833) | (26,833) | — | (26,833) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | 21,898 | — | 21,898 | 692 | 22,590 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | 395,029 | 3 | 3,535 | — | — | 3,538 | — | 3,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares related to equity award tax withholding | (48,452) | — | (3,183) | — | — | (3,183) | — | (3,183) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of noncontrolling interest to common shares | 10,848 | — | 68 | — | — | 68 | (68) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net | 51,498 | 1 | (845) | — | — | (844) | — | (844) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest declared ($0.12 per unit) | — | — | — | — | — | — | (837) | (837) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 221,162,658 | $ | 2,212 | $ | 3,678,478 | $ | 9,958 | $ | (140,643) | $ | 3,550,005 | $ | 163,382 | $ | 3,713,387 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (7,205) | (7,205) | (194) | (7,399) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($0.14 per share) | — | — | — | — | (31,054) | (31,054) | — | (31,054) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 8,472 | — | 8,472 | 195 | 8,667 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | 19,297 | — | 1,715 | — | — | 1,715 | — | 1,715 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares related to equity award tax withholding | (1,496) | — | (2,698) | — | — | (2,698) | — | (2,698) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of noncontrolling interest to common shares | 879,821 | 9 | 21,384 | — | — | 21,393 | (21,393) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net | — | — | (116) | — | — | (116) | — | (116) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest declared ($0.14 per unit) | — | — | — | — | — | — | (852) | (852) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 222,060,280 | $ | 2,221 | $ | 3,698,763 | $ | 18,430 | $ | (178,902) | $ | 3,540,512 | $ | 141,138 | $ | 3,681,650 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 16,223 | 16,223 | 430 | 16,653 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared ($0.14 per share) | — | — | — | — | (31,335) | (31,335) | — | (31,335) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 19,139 | — | 19,139 | 514 | 19,653 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock compensation | (3,080) | — | 1,096 | — | — | 1,096 | — | 1,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares related to equity award tax withholding | (1,021) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net | 2,000,000 | 20 | 49,691 | — | — | 49,711 | — | 49,711 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest declared ($0.14 per unit) | — | — | — | — | — | — | (853) | (853) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | 224,056,179 | $ | 2,241 | $ | 3,749,550 | $ | 37,569 | $ | (194,014) | $ | 3,595,346 | $ | 141,229 | $ | 3,736,575 |
6
For the Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 23,847 | $ | 86,135 | |||||||
Adjustments to reconcile net income to cash flow from operating activities: | |||||||||||
Depreciation and amortization | 163,066 | 200,688 | |||||||||
Accretion of loan discounts and premiums, net | (8,239) | (8,245) | |||||||||
Amortization of deferred financing costs, net | 2,534 | 2,727 | |||||||||
Stock compensation expense | 6,781 | 6,238 | |||||||||
Loss on impairment (gain on sale) of real estate assets, net | 10,284 | (94,712) | |||||||||
Amortization related to derivative instruments | 973 | 958 | |||||||||
Casualty losses (gains), net | 866 | (7,176) | |||||||||
Equity in loss from investments in unconsolidated real estate entities | 3,158 | 2,411 | |||||||||
Other loss (income) | 1,261 | (1,249) | |||||||||
Changes in assets and liabilities: | |||||||||||
Other assets | (9,276) | (2,266) | |||||||||
Accounts payable and accrued expenses | 9,352 | 5,507 | |||||||||
Accrued interest payable | 279 | 3,844 | |||||||||
Other liabilities | (1,894) | (3,619) | |||||||||
Cash flow provided by operating activities | 202,992 | 191,241 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of real estate properties | — | (201,777) | |||||||||
Cash, cash equivalents and restricted cash acquired in consolidation of unconsolidated joint venture | 2,145 | — | |||||||||
Investments in unconsolidated real estate entities | (23,221) | (51,426) | |||||||||
Return of investment in unconsolidated real estate entities | — | 3,406 | |||||||||
Disposition of real estate properties, net | 35,557 | 155,639 | |||||||||
Capital expenditures | (111,872) | (55,648) | |||||||||
Additions to real estate under development | (48,491) | (40,009) | |||||||||
Proceeds from insurance claims | 3,265 | 15,653 | |||||||||
Cash flow used in investing activities | (142,617) | (174,162) | |||||||||
Cash flows from financing activities: | |||||||||||
(Costs) proceeds from issuance of common stock, net | (421) | 48,751 | |||||||||
Proceeds from unsecured credit facility and term loans | 185,000 | 687,500 | |||||||||
Unsecured credit facility, secured credit facility and term loan repayments | (127,513) | (666,525) | |||||||||
Mortgage principal repayments | (6,067) | (5,514) | |||||||||
Payments for deferred financing costs | (60) | (1,654) | |||||||||
Distributions on common stock | (98,965) | (74,479) | |||||||||
Distributions to noncontrolling interests | (2,639) | (1,891) | |||||||||
Repurchase of shares related to equity award tax withholding | (4,739) | (5,881) | |||||||||
Payments for interest rate collars | — | (3,475) | |||||||||
Cash flow used in financing activities | (55,404) | (23,168) | |||||||||
Net change in cash and cash equivalents, and restricted cash | 4,971 | (6,089) | |||||||||
Cash and cash equivalents, and restricted cash, beginning of period | 44,017 | 65,671 | |||||||||
Cash and cash equivalents, and restricted cash, end of the period | $ | 48,988 | $ | 59,582 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 17,216 | $ | 23,753 | |||||||
Restricted cash | 31,772 | 35,829 | |||||||||
Total cash, cash equivalents, and restricted cash, end of period | $ | 48,988 | $ | 59,582 |
|
| For the Nine Months Ended September 30, |
| |||||
|
| 2017 |
|
| 2016 |
| ||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
| $ | 24,922 |
|
| $ | 33,151 |
|
Adjustments to reconcile net income (loss) to cash flow from operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 24,289 |
|
|
| 26,927 |
|
Amortization of deferred financing costs |
|
| 1,160 |
|
|
| 2,236 |
|
Stock compensation expense |
|
| 1,548 |
|
|
| 832 |
|
Net (gains) losses on sale of assets |
|
| (15,873 | ) |
|
| (31,773 | ) |
(Gains) losses on extinguishment of debt |
|
| 572 |
|
|
| 558 |
|
Acquisition related debt extinguishment expenses |
|
| 2,781 |
|
|
| - |
|
(Gains) losses on TSRE merger |
|
| - |
|
|
| (732 | ) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable and other assets |
|
| (1,931 | ) |
|
| (1,377 | ) |
Accounts payable and accrued expenses |
|
| 8,098 |
|
|
| 3,895 |
|
Accrued interest payable |
|
| (345 | ) |
|
| (376 | ) |
Other liabilities |
|
| (165 | ) |
|
| (11 | ) |
Net cash provided by operating activities |
|
| 45,056 |
|
|
| 33,330 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Disposition of real estate properties |
|
| 34,519 |
|
|
| 39,690 |
|
Acquisition of real estate properties |
|
| (169,156 | ) |
|
| - |
|
Capital expenditures |
|
| (10,100 | ) |
|
| (8,039 | ) |
(Increase) decrease in restricted cash |
|
| (1,147 | ) |
|
| (2,615 | ) |
Cash flow (used in) provided by investing activities |
|
| (145,884 | ) |
|
| 29,036 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from unsecured credit facility |
|
| 148,190 |
|
|
| 93,501 |
|
Unsecured credit facility repayments |
|
| (138,500 | ) |
|
| (197,666 | ) |
Proceeds from mortgages |
|
| - |
|
|
| 105,980 |
|
Mortgage principal repayments |
|
| (1,969 | ) |
|
| (44,532 | ) |
Payments for deferred financing costs |
|
| (1,166 | ) |
|
| (1,450 | ) |
Proceeds from issuance of common stock |
|
| 125,707 |
|
|
| - |
|
Distributions on common stock |
|
| (37,279 | ) |
|
| (25,495 | ) |
Distributions to noncontrolling interests |
|
| (1,573 | ) |
|
| (1,615 | ) |
Payments related to extinguishment of debt |
|
| (2,781 | ) |
|
| - |
|
Repurchase of shares related to equity award tax withholding |
|
| (565 | ) |
|
| (143 | ) |
Cash flow provided by (used in) financing activities |
|
| 90,064 |
|
|
| (71,420 | ) |
Net change in cash and cash equivalents |
|
| (10,764 | ) |
|
| (9,054 | ) |
Cash and cash equivalents, beginning of period |
|
| 20,892 |
|
|
| 38,301 |
|
Cash and cash equivalents, end of the period |
| $ | 10,128 |
|
| $ | 29,247 |
|
7
As of
2023
We became an internally managed REIT on December 20, 2016. Prior to that date, we were externally managed by a subsidiary of RAIT Financial Trust, or RAIT, a publicly traded Maryland REIT whose common shares are listed on the New York Stock Exchange under the symbol “RAS” (referred to as our former advisor). On December 20, 2016, we completed our management internalization, which was announced on September 27, 2016 as part of the agreement, or the internalization agreement, with RAIT and RAIT affiliates that provided for transactions which changed us from being externally managed to being internally managed and separated us from RAIT. The management internalization consisted of two parts: (i) our acquisition of our former advisor, which was a subsidiary of RAIT, and (ii) our acquisition of substantially all of the assets and the assumption of certain liabilities relating to the multifamily property management business of RAIT, including property management contracts relating to apartment properties owned by us, RAIT and third parties. Also, pursuant to the internalization agreement, on October 5, 2016, we repurchased all of the 7,269,719 shares of our common stock owned by certain of RAIT’s subsidiaries and retired these shares.
The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those described in the footnotes.
8
As of
2023
We make estimates of the collectability of our accounts receivable related to base rents, expense reimbursements and other revenue. We analyze accounts receivable and historical bad debt levels, tenant credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants experiencing financial difficulties are analyzed and estimates are made in connection with expected uncollectible receivables. Our reported operating results are affected by management’s estimate of the collectability of accounts receivable. For the three months ended September 30, 2017 and 2016, we recorded bad debt expense of $101 and $306, respectively. For the nine months ended September 30, 2017 and 2016, we recorded bad debt expense of $670 and $727, respectively.
g. Investments in Real Estate
We account for acquisitions of properties that meet the definition of a business pursuant to Financial Accounting Standards Board, or
Upon the acquisition of properties, we
9
Independence Realty Trust, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
As of September 30, 2017
(Unaudited and dollars in thousands, except share and per share data)
nine months ended September 30, 2016,2022, we recorded $0$79 and $3,735,$53,367, respectively, of amortization expense for intangible assets. For the three and nine months ended September 30, 2023, we wrote-off fully amortized intangible assets of $0 and $1,099, respectively. For the three and nine months ended September 30, 2022, we wrote-off fully amortized intangible assets of $0 and $58,048, respectively. As of September 30, 2017,2023, we expect to record additional amortization expense on current in-place intangible assets of $795$199 for the remainder of 2017.
2023.
We recorded impairment charges of $11,268, for each of the three and nine months ended September 30, 2023, on account of real estate classified as held for sale, and recorded no impairment charges for the three and nine months ended September 30, 2022.
During the three and nine months ended September 30, 2023, we wrote-off fully depreciated fixed assets of $7,563 and $15,596, respectively. During the three and nine months ended September 30, 2022, we wrote-off fully depreciated fixed assets of $0 and $3,092, respectively.
Forfor the three and nine months ended September 30, 2017, we recognized revenuesamount of $11 and $96, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers. For the three and nine months ended September 30, 2016, we recognized revenues of $38 and $151, respectively, related to recoveries of lost rental revenue due to natural disasters and other insurable events from our insurance providers.
For the three and nine months ended September 30, 2017, we incurred $437 and $1,285 of advertising expenses, respectively. For the three and nine months ended September 30, 2016, we incurred $435 and $1,325 of advertising expenses, respectively.
For the three months ended September 30, 2017 and 2016, we incurred $0 and $1,933 of asset management and incentive fees, respectively. For the nine months ended September 30, 2017 and 2016, we incurred $0 and $5,491 of asset management and incentive fees, respectively. Asset management and incentive fees are now included in general and administrative expenses since as an internally-managed REIT, we no longer incur external asset management fees and the compensation cost of our employees who now perform this function are recorded within general and administrative expenses. See Note 8: Related Party Transactions and Arrangements.
For the three months ended September 30, 2017 and 2016, we incurred $1,328 and $1,219 of property management expenses, respectively. For the nine months ended September 30, 2017 and 2016, we incurred $4,310 and $3,710 of property management expenses, respectively. Subsequent to our management internalization, property management expenses include payroll and related expenses that directly support on-site property management. Prior to our management internalization, property management expenses included property and construction management fees paid to our former property manager. See Note 8: Related Party Transactions and Arrangements.
10
Independence Realty Trust, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
As of September 30, 2017
(Unaudited and dollars in thousands, except share and per share data)
j.
•Level 1: Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment.
•Level 2: Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
•Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of investment, whether the investment is new, whether the investment is traded on an active exchange or in the secondary market, and the current market condition. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3.
11
Independence Realty Trust, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
As of September 30, 2017
(Unaudited and dollars in thousands, except share and per share data)
Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that management believes market participants would use in pricing the asset or liability at the measurement date. We use prices and inputs that management believes are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be transferred from Level 1 to Level 2 or Level 2 to Level 3.
Fair value for certain of our Level 3 financial instruments is derived using internal valuation models. These internal valuation models include discounted cash flow analyses developed by management using current interest rates, estimates of the term of the particular instrument, specific issuer information and other market data for securities without an active market. In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, the impact of our own credit spreads is also considered when measuring the fair value of financial assets or liabilities, including derivative contracts. Where appropriate, valuation adjustments are made to account for various factors, including bid-ask spreads, credit quality and market liquidity. These adjustments are applied on a consistent basis and are based on observable inputs where available. Management’s estimate of fair value requires significant management judgment and is subject to a high degree of variability based upon market conditions, the availability of specific issuer information and management’s assumptions.
|
| As of September 30, 2017 |
|
| As of December 31, 2016 |
| ||||||||||
Financial Instrument |
| Carrying Amount |
|
| Estimated Fair Value |
|
| Carrying Amount |
|
| Estimated Fair Value |
| ||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 10,128 |
|
| $ | 10,128 |
|
| $ | 20,892 |
|
| $ | 20,892 |
|
Restricted cash |
|
| 6,665 |
|
|
| 6,665 |
|
|
| 5,518 |
|
|
| 5,518 |
|
Derivative assets |
|
| 3,581 |
|
|
| 3,581 |
|
|
| 3,867 |
|
|
| 3,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured credit facility |
|
| - |
|
|
| - |
|
|
| 147,280 |
|
|
| 150,000 |
|
Unsecured credit facility |
|
| 157,163 |
|
|
| 159,690 |
|
|
| - |
|
|
| - |
|
Mortgages |
|
| 574,462 |
|
|
| 565,954 |
|
|
| 596,537 |
|
|
| 588,523 |
|
k.
As of September 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||
Financial Instrument | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17,216 | $ | 17,216 | $ | 16,084 | $ | 16,084 | ||||||||||||||||||
Restricted cash | 31,772 | 31,772 | 27,933 | 27,933 | ||||||||||||||||||||||
Derivative assets | 53,258 | 53,258 | 41,109 | 41,109 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||
Unsecured Revolver | 240,235 | 242,468 | 164,283 | 169,842 | ||||||||||||||||||||||
Unsecured Term loans | 597,390 | 601,772 | 596,612 | 611,265 | ||||||||||||||||||||||
Secured credit facilities | 638,204 | 565,371 | 660,542 | 580,332 | ||||||||||||||||||||||
Mortgages (1) | 1,239,881 | 1,116,377 | 1,210,208 | 1,088,579 | ||||||||||||||||||||||
Costs
l.year. We lease corporate office space under leases with terms of up to 10 years and that may include extension options, but that do not include any residual value guarantees or restrictive covenants. As of September 30, 2023 and December 31, 2022, we had $2,579 and $3,079, respectively, of operating lease right-of-use assets and $2,882 and $3,401, respectively, of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our condensed consolidated balance sheets. During the three and nine months ended September 30, 2023, we recorded $219 and $631, respectively, of total operating lease expense which was recorded within property management expenses and general and administrative expenses in our condensed consolidated statements of operations. During the three and nine months ended September 30, 2022, we recorded $252 and $1,096, respectively, of total operating lease expense which was recorded within property management expenses and general and administrative expenses in our condensed consolidated statements of operations.
12
As of
2023
m.
Not Yet Adopted Within these Financial Statements
In May 2014, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”. This accounting standard generally replaces existing guidance by requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This accounting standard applies to all contracts with customers, except those that are within the scope of other Topics in the FASB ASC. During 2016, the FASB issued three amendments to this accounting standard which provide further clarification to this accounting standard. These standards amending FASB ASC Topic 606 are currently effective for annual reporting periods beginning after December 15, 2017. We are finalizing our evaluation of the impact that these standards may have on our consolidated financial statements however, a majority of our revenue is derived from real estate lease contracts which are specifically excluded from the scope of this standard.
In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”. This accounting standard amends lease accounting by requiring the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this standardupdate contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is permitted. Management is currently evaluatingoptional and may be elected over time as reference rate reform activities occur. Beginning in the first quarter of 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We will continue to evaluate the impact that this standard may have on our consolidated financial statements.
In August 2016, the FASB issued an accounting standard classified under FASB ASC Topic 230, “Statement of Cash Flows”. This accounting standard provides guidance on eight specific cash flow issues: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (iii) contingent consideration payments made after a business combination; (iv) proceeds fromguidance and may apply other elections as applicable as additional changes in the settlementmarket occur.
ContentsIn January 2017, the FASB issued an accounting standard update under FASB ASC Topic 805, “Business Combinations” that changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for us on January 1, 2018 with
13
As of
2023
early adoption permitted. The new definition will be applied prospectively to any transactions occurring within the period of adoption. Management expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred.
In August 2017,statements for the FASB issued an accounting standard update under FASB ASC Topic 815, “Derivativesthree and Hedging.” The amendments in this update provide guidance about the application of the hedge accounting guidance in current GAAP based on the feedback received from preparers, auditors, and other stakeholders. As a result, the accounting for derivatives and hedging transactions could be impacted. The updated standard will be effective for us on January 1, 2019 with early adoption permitted. The new definition will be applied prospectively to any transactions occurring within the period of adoption. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.
|
| As of September 30, 2017 |
|
| As of December 31, 2016 |
|
| Depreciable Lives (In years) |
| As of September 30, 2023 | As of December 31, 2022 | Depreciable Lives (In years) | |||||||||||||||||
Land |
| $ | 187,935 |
|
| $ | 165,120 |
|
|
| — |
| Land | $ | 586,361 | $ | 579,094 | — | |||||||||||
Building |
|
| 1,211,985 |
|
|
| 1,066,611 |
|
|
| 40 |
| Building | 5,728,541 | 5,695,711 | 40 | |||||||||||||
Furniture, fixtures and equipment |
|
| 27,137 |
|
|
| 17,625 |
|
| 5-10 |
| Furniture, fixtures and equipment | 439,120 | 340,438 | 5-10 | ||||||||||||||
Total investment in real estate |
| $ | 1,427,057 |
|
| $ | 1,249,356 |
|
|
|
|
| |||||||||||||||||
Total investments in real estate | Total investments in real estate | $ | 6,754,022 | $ | 6,615,243 | ||||||||||||||||||||||||
Accumulated depreciation |
|
| (75,084 | ) |
|
| (51,511 | ) |
|
|
|
| Accumulated depreciation | (567,200) | (425,034) | ||||||||||||||
Investments in real estate, net |
| $ | 1,351,973 |
|
| $ | 1,197,845 |
|
|
|
|
| Investments in real estate, net | $ | 6,186,822 | $ | 6,190,209 |
Acquisitions
The below table summarizes Based on ongoing negotiations, we recognized a $11,268 impairment charge during the acquisitions for the ninethree months ended September 30, 2017:
Property Name |
| Date of Purchase |
| Location |
| Units (unaudited) |
|
| Purchase Price |
| ||
Lakes of Northdale |
| 2/27/2017 |
| Tampa, FL |
|
| 216 |
|
| $ | 29,750 |
|
Haverford Place |
| 5/24/2017 |
| Lexington, KY |
|
| 160 |
|
| $ | 14,240 |
|
South Terrace (1) |
| 6/30/2017 |
| Durham, NC |
|
| 328 |
|
| $ | 42,950 |
|
Cherry Grove (2) |
| 9/26/2017 |
| North Myrtle Beach, SC |
|
| 172 |
|
| $ | 16,157 |
|
Riverchase (2) |
| 9/26/2017 |
| Indianapolis, IN |
|
| 217 |
|
| $ | 18,899 |
|
Kensington (2) |
| 9/26/2017 |
| Canal Winchester, OH |
|
| 264 |
|
| $ | 24,409 |
|
Schirm Farms (2) |
| 9/26/2017 |
| Canal Winchester, OH |
|
| 264 |
|
| $ | 23,749 |
|
Total |
|
|
|
|
|
| 1,621 |
|
| $ | 170,154 |
|
|
|
14
As of
2023
Carrying Value As Of | ||||||||||||||||||||||||||||||||
Investments in Unconsolidated Real Estate Entities | Location | Units (1) (Unaudited) | IRT Ownership Interest | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
Metropolis at Innsbrook (2) | Richmond, VA | 402 | 84.8 | % | $ | 17,576 | $ | 17,331 | ||||||||||||||||||||||||
Views of Music City II / The Crockett (3) | Nashville, TN | 408 | 50.0 | % | 11,632 | 11,363 | ||||||||||||||||||||||||||
Lakeline Station | Austin, TX | 378 | 90.0 | % | 31,585 | 25,292 | ||||||||||||||||||||||||||
The Mustang | Dallas, TX | 275 | 85.0 | % | 26,799 | 11,812 | ||||||||||||||||||||||||||
Virtuoso (4) | Huntsville, AL | — | 90.0 | % | — | 14,422 | ||||||||||||||||||||||||||
Total | 1,463 | $ | 87,592 | $ | 80,220 |
Description |
| Fair Value of Assets Acquired During the Nine-Month Period Ended September 30, 2017 |
| |
Assets acquired: |
|
|
|
|
Investments in real estate |
| $ | 168,191 |
|
Accounts receivable and other assets |
| $ | 463 |
|
Intangible assets |
| $ | 1,963 |
|
Total assets acquired |
| $ | 170,617 |
|
Liabilities assumed: |
|
|
|
|
Accounts payable and accrued expenses |
| $ | 1,502 |
|
Other liabilities |
| $ | 490 |
|
Total liabilities assumed |
| $ | 1,992 |
|
Estimated fair value of net assets acquired |
| $ | 168,625 |
|
The table below presents the revenue and net income (loss) for the properties acquired during the nine-month period ended September 30, 2017 as reported in our consolidated financial statements, excluding any related acquisition and integration expenses.
|
| For the Three-Month Period Ended September 30, 2017 |
|
| For the Nine-Month Period Ended September 30, 2017 |
| ||||||||||
Property |
| Total revenue |
|
| Net income (loss) allocable to common shares |
|
| Total revenue |
|
| Net income (loss) allocable to common shares |
| ||||
Lakes of Northdale |
| $ | 789 |
|
| $ | 223 |
|
| $ | 1,829 |
|
| $ | 447 |
|
Haverford Place |
| $ | 452 |
|
| $ | 107 |
|
| $ | 637 |
|
| $ | 179 |
|
South Terrace |
| $ | 1,039 |
|
| $ | 198 |
|
| $ | 1,049 |
|
| $ | 203 |
|
Cherry Grove |
| $ | 26 |
|
| $ | 17 |
|
| $ | 26 |
|
| $ | 17 |
|
Riverchase |
| $ | 25 |
|
| $ | 13 |
|
| $ | 25 |
|
| $ | 13 |
|
Kensington |
| $ | 35 |
|
| $ | 25 |
|
| $ | 35 |
|
| $ | 25 |
|
Schirm Farms |
| $ | 35 |
|
| $ | 23 |
|
| $ | 35 |
|
| $ | 23 |
|
Total |
| $ | 2,401 |
|
| $ | 606 |
|
| $ | 3,636 |
|
| $ | 907 |
|
The table below represents the revenue, net income and earnings per share effect of the acquired property, as reported in our consolidated financial statements and on a pro forma basis as if the acquisition occurred on January 1, 2016. These pro forma results are not necessarily indicative of the results that actually would have occurred if the acquisition had occurred on January 1, 2016, nor does the pro forma financial information purport to represent theoperating results of operations for future periods.
15
As of
2023
| For the Three-Month Period Ended September 30, 2017 |
|
| For the Three-Month Period Ended September 30, 2016 |
|
| For the Nine-Month Period Ended September 30, 2017 |
|
| For the Nine-Month Period Ended September 30, 2016 |
| |||||
Pro forma total revenue (unaudited) |
|
| 43,421 |
|
|
| 42,695 |
|
|
| 128,834 |
|
|
| 128,350 |
|
Pro forma net income (loss) allocable to common shares (unaudited) |
|
| 2,347 |
|
|
| 3,211 |
|
|
| 27,663 |
|
|
| 34,012 |
|
Earnings (loss) per share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic-pro forma (unaudited) |
| $ | 0.03 |
|
| $ | 0.07 |
|
| $ | 0.40 |
|
| $ | 0.72 |
|
Diluted-pro forma (unaudited) |
| $ | 0.03 |
|
| $ | 0.07 |
|
| $ | 0.39 |
|
| $ | 0.72 |
|
We did not make any purchase price allocation adjustments during the nine-month period ended September 30, 2017.
On October 25, 2017, we acquired a 264 unit residential community located in Baton Rouge, LA, known as Live Oak Trace, for $28,501. This acquisition was part of the nine-property portfolio acquisition announced on September 5, 2017.
Dispositions
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) allocable to common shares |
| |||||
Property Name |
| Date of Sale |
| Sale Price |
|
| Gain (loss) on sale (1) |
|
| For the Three Months Ended September 30, 2017 |
|
| For the Nine Months Ended September 30, 2017 |
| ||||
Copper Mill |
| 5/5/2017 |
| $ | 32,000 |
|
| $ | 15,616 |
|
| $ | (3 | ) |
| $ | 794 |
|
Heritage Trace |
| 6/1/2017 |
|
| 11,600 |
|
|
| (1,237 | ) |
|
| (3 | ) |
|
| 477 |
|
Berkshire |
| 6/9/2017 |
|
| 16,000 |
|
|
| 1,579 |
|
|
| (33 | ) |
|
| 457 |
|
Total |
|
|
| $ | 59,600 |
|
| $ | 15,958 |
|
| $ | (39 | ) |
| $ | 1,728 |
|
|
| |||||||
Assets and Liabilities Consolidated During the Nine Months Ended September 30, 2023 | ||||||||
Assets: | ||||||||
Investments in real estate | $ | 49,939 | ||||||
Cash and cash equivalents | 817 | |||||||
Restricted cash | 1,329 | |||||||
Other assets | 395 | |||||||
Intangible assets | 398 | |||||||
Total assets | $ | 52,878 | ||||||
Liabilities: | ||||||||
Indebtedness | $ | 39,281 | ||||||
Accounts payable and accrued expenses | 255 | |||||||
Accrued interest payable | 283 | |||||||
Other liabilities | 111 | |||||||
Total liabilities | 39,931 | |||||||
Noncontrolling interest | 256 | |||||||
Derecognition of | 12,691 | |||||||
Total Liabilities and equity | $ | 52,878 |
Debt: |
| Outstanding Principal |
|
| Unamortized Discount and Debt Issuance Costs |
|
| Carrying Amount |
|
| Type |
| Weighted Average Rate |
|
| Weighted Average Maturity (in years) |
| |||||
Unsecured credit facility (1)(2) |
| $ | 159,690 |
|
| $ | (2,527 | ) |
| $ | 157,163 |
|
| Floating |
|
| 2.7% |
|
|
| 3.9 |
|
Mortgages-Fixed rate |
|
| 577,632 |
|
|
| (3,170 | ) |
|
| 574,462 |
|
| Fixed |
|
| 3.7% |
|
|
| 6.0 |
|
Total Debt |
| $ | 737,322 |
|
| $ | (5,697 | ) |
| $ | 731,625 |
|
|
|
|
| 3.5% |
|
|
| 5.6 |
|
|
|
Consolidated Debt: | Outstanding Principal | Unamortized Debt Issuance Costs | Unamortized Loan (Discount)/Premiums | Carrying Amount | Type | Weighted Average Rate (3) | Weighted Average Maturity (in years) | |||||||||||||||||||||||||||||||||||||
Unsecured revolver (1) | $ | 241,479 | $ | (1,244) | $ | — | $ | 240,235 | Floating | 6.6% | 2.3 | |||||||||||||||||||||||||||||||||
Unsecured term loans | 600,000 | (2,610) | — | 597,390 | Floating | 6.5% | 3.8 | |||||||||||||||||||||||||||||||||||||
Secured credit facilities | 617,114 | (2,158) | 23,248 | 638,204 | Floating/Fixed | 4.3% | 5.2 | |||||||||||||||||||||||||||||||||||||
Mortgages (2) | 1,218,462 | (6,105) | 27,524 | 1,239,881 | Fixed | 4.0% | 4.4 | |||||||||||||||||||||||||||||||||||||
Total Consolidated Debt | $ | 2,677,055 | $ | (12,117) | $ | 50,772 | $ | 2,715,710 | 4.9% | 4.2 |
|
|
16
As of
2023
Scheduled maturities on our consolidated indebtedness outstanding as of September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Consolidated Debt: | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | |||||||||||||||||||||||||||||||||||
Unsecured revolver | $ | — | $ | — | $ | — | $ | 241,479 | $ | — | $ | — | |||||||||||||||||||||||||||||
Unsecured term loans | — | — | — | 200,000 | — | 400,000 | |||||||||||||||||||||||||||||||||||
Secured credit facilities | — | — | 3,525 | 10,493 | 11,462 | 591,634 | |||||||||||||||||||||||||||||||||||
Mortgages (1) | 2,873 | 68,318 | 214,667 | 144,949 | 15,946 | 771,709 | |||||||||||||||||||||||||||||||||||
Total | $ | 2,873 | $ | 68,318 | $ | 218,192 | $ | 596,921 | $ | 27,408 | $ | 1,763,343 |
Consolidated Debt: | Outstanding Principal | Unamortized Debt Issuance Costs | Unamortized Loan (Discount)/Premiums | Carrying Amount | Type | Weighted Average Rate (3) | Weighted Average Maturity (in years) | |||||||||||||||||||||||||||||||||||||
Unsecured revolver (1) | $ | 165,978 | $ | (1,695) | $ | — | $ | 164,283 | Floating | 4.9% | 3.1 | |||||||||||||||||||||||||||||||||
Unsecured term loans | 600,000 | (3,388) | — | 596,612 | Floating | 5.1% | 4.5 | |||||||||||||||||||||||||||||||||||||
Secured credit facilities | 635,128 | (2,256) | 27,670 | 660,542 | Floating/Fixed | 4.3% | 5.9 | |||||||||||||||||||||||||||||||||||||
Mortgages (2) | 1,185,246 | (7,305) | 32,267 | 1,210,208 | Fixed | 3.9% | 5.2 | |||||||||||||||||||||||||||||||||||||
Total Consolidated Debt | $ | 2,586,352 | $ | (14,644) | $ | 59,937 | $ | 2,631,645 | 4.5% | 5.1 |
The following table contains summary information concerning our indebtedness as
Debt: |
| Outstanding Principal |
|
| Unamortized Discount and Debt Issuance Costs |
|
| Carrying Amount |
|
| Type |
| Weighted Average Rate |
|
| Weighted Average Maturity (in years) |
| |||||
Secured credit facility (1) |
| $ | 150,000 |
|
| $ | (2,720 | ) |
| $ | 147,280 |
|
| Floating |
|
| 3.0% |
|
|
| 1.7 |
|
Mortgages-Fixed rate |
|
| 600,188 |
|
|
| (3,651 | ) |
|
| 596,537 |
|
| Fixed |
|
| 3.8% |
|
|
| 6.7 |
|
Total Debt |
| $ | 750,188 |
|
| $ | (6,371 | ) |
| $ | 743,817 |
|
|
|
|
| 3.6% |
|
|
| 5.7 |
|
|
|
In February 2017, IROP drew down $22,000 on the secured credit facility in connection with the Lakes of Northdale acquisition.
On May 1, 2017, we closed on a new $300,000 unsecured credit facility, refinancingIndependence Realty Trust, Inc. and terminating the previous secured credit facility. The new facility is comprised of a $50,000 term loan and a revolving commitment of upSubsidiaries
In May 2017, IROP drew down $9,000 on the unsecured credit facility in connection with the Haverford Place acquisition.
In June 2017, IROP drew down $31,250 on the unsecured credit facility in connection with the South Terrace acquisition.
In September 2017, IROP (1) paid down $117,500 on the unsecured credit facility using proceeds from the common stock offering on September 11, 2017, which is discussed in Note 6: Shareholders Equity, and (2) drew down $85,000 in connection with the four properties acquired on September 26, 2017.
In connection with the three property dispositions during the nine months ended Condensed Consolidated Financial Statements
We may use
As of September 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Notional | Fair Value of Assets | Fair Value of Liabilities | Notional | Fair Value of Assets | Fair Value of Liabilities | |||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 500,000 | $ | 36,985 | $ | — | $ | 300,000 | $ | 26,099 | $ | — | ||||||||||||||||||||||||||
Interest rate collars | 250,000 | 5,069 | — | 250,000 | 8,317 | — | ||||||||||||||||||||||||||||||||
Forward interest rate collars | 200,000 | 11,204 | — | 200,000 | 6,693 | — | ||||||||||||||||||||||||||||||||
Total | $ | 950,000 | $ | 53,258 | — | $ | 750,000 | $ | 41,109 | $ | — |
Interest Rate Swaps and Caps
We have entered into an interest rate cap contractswaps and ancollars that are considered highly effective hedges, we reclassified realized gains of $5,433 and $13,559 to earnings within interest rate swap contractexpense for the three and nine months ended September 30, 2023, and we expect gains of $20,461 to hedgebe reclassified out of accumulated other comprehensive income to earnings over the next 12 months. For the three and nine months ended September 30, 2022, we reclassified realized gains of $214 and realized losses of $3,408 to earnings within interest rate exposure on floating rate indebtedness.
17
Independence Realty Trust, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
As of September 30, 2017
(Unaudited and dollars in thousands, except share and per share data)
is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. We did not recognize any ineffectiveness associated with this cash flow hedge through April 2017. On April 17, 2017, in conjunction with the refinance of our credit facility, we restructured our existing interest rate swap to remove the LIBOR floor. This resulted in a decrease in the strike rate to 1.1325%. The notional value and maturity date remained the same. We designated the restructured interest rate swap as a cash flow hedge at inception and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. However, since
The following table summarizes the aggregate notional amount and estimated net fair value of our derivative instruments asStock Repurchase Program. As of September 30, 20172023, we had $250,000 in shares of our common stock remaining authorized for purchase under the Stock Repurchase Program.
|
| As of September 30, 2017 |
|
| As of December 31, 2016 |
| ||||||||||||||||||
|
| Notional |
|
| Fair Value of Assets |
|
| Fair Value of Liabilities |
|
| Notional |
|
| Fair Value of Assets |
|
| Fair Value of Liabilities |
| ||||||
Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap |
| $ | 150,000 |
|
| $ | 3,581 |
|
| $ | — |
|
| $ | 150,000 |
|
| $ | 3,867 |
|
| $ | — |
|
Freestanding derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate cap |
|
| 200,000 |
|
|
| — |
|
|
| — |
|
|
| 200,000 |
|
|
| — |
|
|
| — |
|
Net fair value |
| $ | 350,000 |
|
| $ | 3,581 |
|
| $ | — |
|
| $ | 350,000 |
|
| $ | 3,867 |
|
| $ | — |
|
Effective interest rate swaps and caps are reported in accumulated other comprehensive income, and the fair valuesold shares of these hedge agreements is included in other assets or other liabilities.
For our interest rate swap that is considered a highly effective hedge, we reclassified realized gainscommon stock under our previous shelf registration statement having an
Month |
| Declaration Date |
| Record Date |
| Payment Date |
| Dividend Declared Per Share |
| |
January 2017 |
| January 12, 2017 |
| January 31, 2017 |
| February 15, 2017 |
| $ | 0.06 |
|
February 2017 |
| January 12, 2017 |
| February 28, 2017 |
| March 15, 2017 |
| $ | 0.06 |
|
March 2017 |
| January 12, 2017 |
| March 31, 2017 |
| April 17, 2017 |
| $ | 0.06 |
|
April 2017 |
| April 12, 2017 |
| April 28, 2017 |
| May 15, 2017 |
| $ | 0.06 |
|
May 2017 |
| April 12, 2017 |
| May 31, 2017 |
| June 15, 2017 |
| $ | 0.06 |
|
June 2017 |
| April 12, 2017 |
| June 30, 2017 |
| July 17, 2017 |
| $ | 0.06 |
|
July 2017 |
| July 14, 2017 |
| July 31, 2017 |
| August 15, 2017 |
| $ | 0.06 |
|
August 2017 |
| July 14, 2017 |
| August 31, 2017 |
| September 15, 2017 |
| $ | 0.06 |
|
September 2017 |
| July 14, 2017 |
| September 29, 2017 |
| October 13, 2017 |
| $ | 0.06 |
|
October 2017 |
| October 12, 2017 |
| October 31, 2017 |
| November 15, 2017 |
| $ | 0.06 |
|
November 2017 |
| October 12, 2017 |
| November 30, 2017 |
| December 15, 2017 |
| $ | 0.06 |
|
December 2017 |
| October 12, 2017 |
| December 29, 2017 |
| January 15, 2018 |
| $ | 0.06 |
|
Common Shares
During the three and nine months ended September 30, 2017, we also paid $0 and $126, respectively, of dividends on restricted common share awards that vested during the period.
18
Independence Realty Trust, Inc. and Subsidiaries
As of
2023
On September 11, 2017, we issued 12,500,000 shares of our common stock aton a public offering priceforward basis. There were no forward sale transactions as of $9.25 per share. We also closed on the underwriters’ option to purchase an additional 1,875,000September 30, 2023, and no shares of common stock at the public offering price. As a result of the offering and exercise or the underwriters’ option, we received approximately $126,100 in net proceeds, after deducting the underwriting discount and offering expenses.
Noncontrolling Interest
In June 2017, we issued 166,604 IROP units in connection with our acquisition of South Terrace. The IROP units were valued at $1,654 based on the price of our common stock. See Note 3: Investments in Real Estatestock were sold under the 2023 ATM Program during the three and nine months ended September 30, 2023.
0 and 144,600 shares of our common stock, respectively. As of September 30, 2017, 3,035,6542023, 5,946,571 IROP units held by unaffiliated third parties remain outstanding withoutstanding.
Our2023.
Month |
| Declaration Date |
| Record Date |
| Payment Date |
| Dividend Declared Per Share |
| |
January 2017 |
| January 12, 2017 |
| January 31, 2017 |
| February 15, 2017 |
| $ | 0.06 |
|
February 2017 |
| January 12, 2017 |
| February 28, 2017 |
| March 15, 2017 |
| $ | 0.06 |
|
March 2017 |
| January 12, 2017 |
| March 31, 2017 |
| April 17, 2017 |
| $ | 0.06 |
|
April 2017 |
| April 12, 2017 |
| April 28, 2017 |
| May 15, 2017 |
| $ | 0.06 |
|
May 2017 |
| April 12, 2017 |
| May 31, 2017 |
| June 15, 2017 |
| $ | 0.06 |
|
June 2017 |
| April 12, 2017 |
| June 30, 2017 |
| July 17, 2017 |
| $ | 0.06 |
|
July 2017 |
| July 14, 2017 |
| July 31, 2017 |
| August 15, 2017 |
| $ | 0.06 |
|
August 2017 |
| July 14, 2017 |
| August 31, 2017 |
| September 15, 2017 |
| $ | 0.06 |
|
September 2017 |
| July 14, 2017 |
| September 29, 2017 |
| October 13, 2017 |
| $ | 0.06 |
|
October 2017 |
| October 12, 2017 |
| October 31, 2017 |
| November 15, 2017 |
| $ | 0.06 |
|
November 2017 |
| October 12, 2017 |
| November 30, 2017 |
| December 15, 2017 |
| $ | 0.06 |
|
December 2017 |
| October 12, 2017 |
| December 29, 2017 |
| January 15, 2018 |
| $ | 0.06 |
|
In
Under the incentive plan or predecessor incentive plans,Prior Plan, we have granted restricted shares, RSUs, and stock appreciation rights, or SARs, to our employees and employees of our former advisor.PSUs. These awards generally vest or vested over a three-yeartwo-to four-year period. In addition, we have granted unrestricted shares to our non-employee directors. These awards generally vest or vested immediately.
19
As of
2023
2023 | |||||||||||
Number of Shares | Weighted Average Grant Date Fair Value Per Share | ||||||||||
Balance, January 1, | 395,482 | $ | 18.67 | ||||||||
Granted | 327,630 | 18.46 | |||||||||
Vested | (253,400) | 17.80 | |||||||||
Forfeited | (60,073) | 18.71 | |||||||||
Balance, September 30,(1) | 409,639 | $ | 19.03 |
(1) | The outstanding award balances above include 127,989 and 163,348 RSUs as of September 30, 2023 and December 31, 2022, respectively. |
On May 16, 2017, our compensation committee granted stock undergranted. Half of any PSUs earned will vest, and shares will be issued in respect thereof, immediately following the incentive plan such that our independent directors receivedend of the three-year performance period; the remaining half of any PSUs earned will vest, and shares will be issued in respect thereof, after an aggregateadditional one-year period of 24,830 shares of our common stock, valued at $225 using our closing stock price of $9.06. These awards vested immediately.
NOTE 8: Related Party Transactions and Arrangements
Fees and Expenses Paid to Our Former Advisor
On December 20, 2016, in connection with our management internalization, we acquired our former advisor and, therefore, fees and expenses to our former advisor are no longer incurred.
For the three months ended September 30, 2017 and 2016, our former advisor earned $0 and $1,727 of asset management fees, respectively, and $0 and $5,141 forservice.
Fordiluted earnings per share for the three months ended September 30, 2017 and 2016, our former advisor earned $0 and $206 of incentive fees, respectively, and $0 and $350 for the nine months ended September 30, 20172023 and 2016, respectively. These fees are included within general2022:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | 3,986 | $ | 16,653 | $ | 23,847 | $ | 86,135 | |||||||||||||||
Income allocated to noncontrolling interest | (56) | (430) | (559) | (2,517) | |||||||||||||||||||
Net income allocable to common shares | $ | 3,930 | $ | 16,223 | $ | 23,288 | $ | 83,618 | |||||||||||||||
Weighted-average shares outstanding—Basic | 224,498,374 | 221,960,609 | 224,383,590 | 221,312,261 | |||||||||||||||||||
Weighted-average shares outstanding—Diluted | 225,140,555 | 222,867,546 | 225,103,475 | 222,359,585 | |||||||||||||||||||
Earnings per share—Basic | $ | 0.02 | $ | 0.07 | $ | 0.10 | $ | 0.38 | |||||||||||||||
Earnings per share—Diluted | $ | 0.02 | $ | 0.07 | $ | 0.10 | $ | 0.38 |
Forrestricted stocks awards were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 6,588,751 and 6,666,456 for the three and nine months ended September 30, 20172023, respectively. Certain IROP units and 2016, we incurred costs of $727forward sale agreements were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 6,091,171 and $0, respectively, with respect to our shared services agreement with our former advisor. The term6,091,171 for each of the agreement was from December 21, 2016 to June 20, 2017three and the associated fees are included within general and administrative expenses in our consolidated statements of operations.
As of September 30, 2017 and December 31, 2016, we had no liabilities payable to our former advisor for asset management fees, incentive fees or shared service fees.
Property Management Fees Paid to Our Former Property Manager
On December 20, 2016, in connection with our management internalization, we acquired property management agreements with respect to each of our properties from RAIT Residential, our former property manager, which is wholly owned by RAIT.
For the three months ended September 30, 2017 and 2016, our former property manager earned $0 and $1,219, respectively, and $0 and $3,710 for the nine months ended September 30, 2017 and 2016, respectively,2022, respectively.
As of
2023
In the second quarter of 2016, we repaid $38,075 of mortgage indebtedness with proceeds from two property dispositions. This indebtedness was held by RAIT. Total interest expense paid to RAIT for the three and nine months ended September 30, 2017 and 2016 was $0 and $486, respectively.
Related Party Transaction
In June 2017, we acquired South Terrace, a 328-unit property in Durham, NC for $42,950 from a joint venture, of which a subsidiary of RAIT was a controlling member. For further information, see Note 3: Investment in Real Estate.
NOTE 9: Earnings (Loss) Per Share
The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2017 and 2016:
|
| For the Three Months Ended September 30, |
|
| For the Nine Months Ended September 30, |
| ||||||||||
|
| 2017 |
|
| 2016 |
|
| 2017 |
|
| 2016 |
| ||||
Net income (loss) |
| $ | 1,156 |
|
| $ | 2,407 |
|
| $ | 24,922 |
|
| $ | 33,151 |
|
(Income) loss allocated to non-controlling interests |
|
| (59 | ) |
|
| (140 | ) |
|
| (1,009 | ) |
|
| (1,972 | ) |
Net income (loss) allocable to common shares |
|
| 1,097 |
|
|
| 2,267 |
|
|
| 23,913 |
|
|
| 31,179 |
|
Weighted-average shares outstanding—Basic |
|
| 71,972,394 |
|
|
| 47,215,918 |
|
|
| 69,875,802 |
|
|
| 47,164,543 |
|
Weighted-average shares outstanding—Diluted |
|
| 72,144,544 |
|
|
| 47,314,629 |
|
|
| 70,105,571 |
|
|
| 47,190,139 |
|
Earnings (loss) per share—Basic |
| $ | 0.02 |
|
| $ | 0.05 |
|
| $ | 0.34 |
|
| $ | 0.66 |
|
Earnings (loss) per share—Diluted |
| $ | 0.02 |
|
| $ | 0.05 |
|
| $ | 0.34 |
|
| $ | 0.66 |
|
Certain IROP units, stock appreciation rights, or SARs, and unvested shares were excluded from the earnings (loss) per share computation because their effect would have been anti-dilutive, totaling 3,035,654 for the three and nine months ended September 30, 2017, and 2,915,008 and 3,091,380 for the three and nine months ended September 30, 2016, respectively.
Other Matters
To
21
amended.
We claim the protectionmeaning of Section 27A of the safe harbor forSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements provided in the Private Securities Litigation Reform Act of 1995. These statements may be made directly in this report and they may also be incorporated by reference in this report to other documents filed with the SEC, and include, but are not limited to, certain actions that we expect or seek to take in connection with our portfolio optimization and deleveraging strategy and anticipated enhancements to our financial results and future growth from this strategy. All statements about futurein this Quarterly report on Form 10-Q that address financial and operating resultsperformance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.
The risk factors discussed and identified in Item 1Aexpectations, intentions, beliefs, plans or predictions of our 2016 Annual Report on Form 10-K, this Report and in other of our public filings with the SEC, among others, could cause actual results to differ materially from the anticipated resultsfuture expressed or other expectations expressed in theimplied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except to the extent required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filinghereof or to reflect the occurrence of unanticipated events.
events, except as may be required by law.
General
We seek to acquire and operate apartment properties that:
have stable occupancy;
are located in submarkets that we do not expect will experience substantial new apartment construction in the foreseeable future;
•acquiring additional properties that have strong and stable occupancies and support a rise in appropriate circumstances, present opportunitiesrental rates or that have the potential for repositioning or updating through capital expenditures when we see opportunities for increased rents; and
present opportunities to apply tailored marketing and management strategies to attract and retain residents and enable rent increases.
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per unit data) |
| As of September 30, 2017 |
|
| For the Three Months Ended September 30, 2017 |
| ||||||||||||||||||
Market |
| Units |
|
| Gross Real Estate Assets |
|
| Period End Occupancy |
|
| Average Effective Monthly Rent per Unit |
|
| Net Operating Income (a) |
|
| % of NOI |
| ||||||
Louisville. KY |
|
| 1,709 |
|
| $ | 179,557 |
|
|
| 94.7 | % |
| $ | 941 |
|
| $ | 2,945 |
|
|
| 12.4 | % |
Memphis, TN |
|
| 1,383 |
|
|
| 137,777 |
|
|
| 95.0 | % |
|
| 1,029 |
|
|
| 2,549 |
|
|
| 10.8 | % |
Atlanta, GA |
|
| 1,092 |
|
|
| 136,681 |
|
|
| 96.1 | % |
|
| 1,105 |
|
|
| 2,419 |
|
|
| 10.2 | % |
Raleigh, NC |
|
| 1,372 |
|
|
| 182,511 |
|
|
| 95.3 | % |
|
| 1,101 |
|
|
| 2,907 |
|
|
| 12.3 | % |
Oklahoma City, OK |
|
| 1,658 |
|
|
| 73,256 |
|
|
| 92.8 | % |
|
| 642 |
|
|
| 1,595 |
|
|
| 6.7 | % |
Dallas, TX |
|
| 734 |
|
|
| 85,390 |
|
|
| 95.9 | % |
|
| 1,138 |
|
|
| 1,480 |
|
|
| 6.3 | % |
Charleston, SC |
|
| 690 |
|
|
| 94,948 |
|
|
| 95.8 | % |
|
| 1,220 |
|
|
| 1,217 |
|
|
| 5.1 | % |
Jackson, MS (b) |
|
| 602 |
|
|
| 44,699 |
|
|
| 94.0 | % |
|
| 892 |
|
|
| 924 |
|
|
| 3.9 | % |
Little Rock, AR |
|
| 462 |
|
|
| 54,298 |
|
|
| 94.8 | % |
|
| 992 |
|
|
| 849 |
|
|
| 3.6 | % |
Orlando, FL |
|
| 297 |
|
|
| 47,517 |
|
|
| 94.9 | % |
|
| 1,380 |
|
|
| 760 |
|
|
| 3.2 | % |
Chicago, IL |
|
| 370 |
|
|
| 29,385 |
|
|
| 93.8 | % |
|
| 1,007 |
|
|
| 675 |
|
|
| 2.9 | % |
Indianapolis, IN |
|
| 645 |
|
|
| 60,600 |
|
|
| 95.0 | % |
|
| 928 |
|
|
| 710 |
|
|
| 3.0 | % |
Greenville, SC |
|
| 346 |
|
|
| 48,176 |
|
|
| 93.9 | % |
|
| 1,092 |
|
|
| 687 |
|
|
| 2.9 | % |
Austin, TX |
|
| 300 |
|
|
| 35,471 |
|
|
| 95.0 | % |
|
| 1,276 |
|
|
| 625 |
|
|
| 2.6 | % |
Charlotte, NC |
|
| 208 |
|
|
| 41,749 |
|
|
| 93.8 | % |
|
| 1,461 |
|
|
| 628 |
|
|
| 2.7 | % |
Asheville, NC |
|
| 252 |
|
|
| 28,291 |
|
|
| 94.8 | % |
|
| 1,054 |
|
|
| 576 |
|
|
| 2.4 | % |
Chattanooga, TN |
|
| 295 |
|
|
| 25,951 |
|
|
| 95.9 | % |
|
| 961 |
|
|
| 486 |
|
|
| 2.1 | % |
Tampa-St. Petersburg, FL |
|
| 216 |
|
|
| 29,735 |
|
|
| 92.6 | % |
|
| 1,212 |
|
|
| 489 |
|
|
| 2.1 | % |
St. Louis, MO |
|
| 152 |
|
|
| 32,967 |
|
|
| 92.8 | % |
|
| 1,568 |
|
|
| 450 |
|
|
| 1.9 | % |
Columbus, OH |
|
| 768 |
|
|
| 65,639 |
|
|
| 96.5 | % |
|
| 854 |
|
|
| 409 |
|
|
| 1.7 | % |
Huntsville, AL |
|
| 178 |
|
|
| 16,070 |
|
|
| 98.3 | % |
|
| 849 |
|
|
| 277 |
|
|
| 1.2 | % |
Total/Weighted Average |
|
| 13,729 |
|
| $ | 1,450,668 |
|
|
| 94.8 | % |
| $ | 1,004 |
|
| $ | 23,657 |
|
|
| 100.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per unit data) | As of September 30, 2023 | For the Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||
Market | Number of Properties | Units | Gross Real Estate Assets | Period End Occupancy | Average Effective Monthly Rent per Unit | Net Operating Income | % of NOI | |||||||||||||||||||||||||||||||||||||
Atlanta, GA | 13 | 5,180 | $ | 1,086,056 | 92.3 | % | $ | 1,643 | $ | 15,635 | 14.9 | % | ||||||||||||||||||||||||||||||||
Dallas, TX | 14 | 4,007 | 863,869 | 94.3 | % | 1,807 | 13,415 | 12.8 | % | |||||||||||||||||||||||||||||||||||
Denver, CO (2) | 9 | 2,292 | 610,637 | 95.4 | % | 1,716 | 7,912 | 7.3 | % | |||||||||||||||||||||||||||||||||||
Columbus, OH | 10 | 2,510 | 373,832 | 94.4 | % | 1,406 | 6,352 | 6.1 | % | |||||||||||||||||||||||||||||||||||
Raleigh - Durham, NC | 6 | 1,690 | 255,277 | 95.4 | % | 1,551 | 5,166 | 4.9 | % | |||||||||||||||||||||||||||||||||||
Oklahoma City, OK | 8 | 2,147 | 327,074 | 95.3 | % | 1,177 | 5,125 | 4.9 | % | |||||||||||||||||||||||||||||||||||
Tampa-St. Petersburg, FL | 5 | 1,452 | 307,400 | 95.4 | % | 1,825 | 5,124 | 4.9 | % | |||||||||||||||||||||||||||||||||||
Nashville, TN | 5 | 1,508 | 370,731 | 94.3 | % | 1,624 | 5,044 | 4.8 | % | |||||||||||||||||||||||||||||||||||
Houston, TX (2) | 7 | 1,932 | 324,821 | 95.3 | % | 1,444 | 4,830 | 4.6 | % | |||||||||||||||||||||||||||||||||||
Indianapolis, IN | 7 | 1,979 | 293,011 | 93.7 | % | 1,366 | 4,819 | 4.6 | % | |||||||||||||||||||||||||||||||||||
Memphis, TN | 4 | 1,383 | 162,123 | 92.8 | % | 1,521 | 4,130 | 3.9 | % | |||||||||||||||||||||||||||||||||||
Huntsville, AL (3) | 4 | 1,051 | 241,013 | 94.5 | % | 1,529 | 3,057 | 2.9 | % | |||||||||||||||||||||||||||||||||||
Birmingham, AL | 2 | 1,074 | 233,604 | 93.7 | % | 1,469 | 2,798 | 2.7 | % | |||||||||||||||||||||||||||||||||||
Charlotte, NC | 3 | 714 | 189,550 | 95.8 | % | 1,767 | 2,789 | 2.7 | % | |||||||||||||||||||||||||||||||||||
Louisville, KY | 4 | 1,150 | 147,848 | 95.6 | % | 1,275 | 2,782 | 2.7 | % | |||||||||||||||||||||||||||||||||||
Lexington, KY | 3 | 886 | 160,777 | 96.7 | % | 1,310 | 2,639 | 2.5 | % | |||||||||||||||||||||||||||||||||||
Myrtle Beach, SC - Wilmington, NC | 3 | 628 | 68,543 | 95.8 | % | 1,420 | 1,843 | 1.8 | % | |||||||||||||||||||||||||||||||||||
Cincinnati, OH | 2 | 542 | 123,081 | 95.6 | % | 1,589 | 1,742 | 1.7 | % | |||||||||||||||||||||||||||||||||||
Greenville, SC | 1 | 702 | 124,027 | 93.9 | % | 1,279 | 1,667 | 1.6 | % | |||||||||||||||||||||||||||||||||||
Charleston, SC | 2 | 518 | 81,529 | 94.4 | % | 1,678 | 1,574 | 1.5 | % | |||||||||||||||||||||||||||||||||||
Chicago, IL (2)(4) | 1 | 374 | 79,158 | 93.6 | % | 1,847 | 1,282 | 1.2 | % | |||||||||||||||||||||||||||||||||||
Orlando, FL | 1 | 297 | 50,306 | 96.3 | % | 1,816 | 977 | 0.9 | % | |||||||||||||||||||||||||||||||||||
Asheville, NC (2) | 1 | 252 | 29,349 | 96.4 | % | 1,553 | 837 | 0.8 | % | |||||||||||||||||||||||||||||||||||
San Antonio, TX | 1 | 306 | 57,269 | 97.7 | % | 1,480 | 811 | 0.8 | % | |||||||||||||||||||||||||||||||||||
Austin, TX | 1 | 256 | 58,568 | 92.9 | % | 1,804 | 788 | 0.8 | % | |||||||||||||||||||||||||||||||||||
Norfolk, VA (2) | 1 | 183 | 54,297 | 97.3 | % | 1,913 | 666 | 0.6 | % | |||||||||||||||||||||||||||||||||||
Fort Wayne, IN (2) | 1 | 222 | 44,506 | 95.5 | % | 1,428 | 658 | 0.6 | % | |||||||||||||||||||||||||||||||||||
Chattanooga, TN (2) | 1 | 192 | 37,336 | 91.1 | % | 1,412 | 481 | 0.5 | % | |||||||||||||||||||||||||||||||||||
Total/Weighted Average | 120 | 35,427 | $ | 6,755,592 | 94.4 | % | $ | 1,556 | $ | 104,943 | 100.0 | % |
Same-store net operating income increased 4.0%2023 ATM Program during the third quarter of 2017 as compared to the same period in the prior year driven by the higher revenuesthree and operating expenses that increased just 1.5% as we continued to focus on expense management. For the nine months ended September 30, 2017, our same-store total revenues were 4.0% higher2023.
Other Matters
On June 20, 2017,2023, we completed our use of shared services previously provided by RAITowned and fully completed our previously disclosed management internalization. The shared services previously provided included certain transitional services such as information technology, human resources, insurance, investor relations, legal, tax and accounting.
23
On July 31, 2017, we transferred the listing of our common stock to the New York Stock Exchange (“NYSE”) from the NYSE MKT. Our common stock continues to trade under the ticker symbol “IRT”.
On September 3, 2017, IRT reached an agreement to acquire a portfolio of nine communities (the “HPI Portfolio”), totaling 2,353 units, for a gross purchase price of $228.1 million. The acquisition accelerates IRT’s penetration into a number of core existing markets, including Columbus, OH, Indianapolis, IN and Atlanta, GA, while providing entry into two new markets. The portfolio contains nine communities that were built or renovated between 2000 and 2011, had period end occupancy of 95% as of July 31, 2017, and had an average effective rent per unit of $884 for the three months ended July 31, 2017. On September 26, 2017, IRT closed on the acquisition of four of theseconsolidated 120 multifamily apartment communities, aggregating 917 units, representingproperties, of which 115 comprised the consummation of the first phase of the portfolio acquisition. The acquisition of the remaining five communities are expected to close in succession during the fourth quarter of 2017, after and subject to the satisfaction of customary closing conditions, as well as the debt assumption process on three of the five. On October 25, 2017, we acquired one of the remaining five communities, a 264 unit community located in Baton Rouge, LA, known as Live Oak Trace for $28,501.
On September 11, 2017, IRT announced the closing of its public offering of 12,500,000 shares of its common stock at a public offering price of $9.25 per share. IRT also closed on the underwriters’ option to purchase an additional 1,875,000 shares of common stock at the public offering price. As a result of the offering and the exercise of the underwriters’ option, IRT received approximately $126.1 million in net proceeds, after deducting the underwriting discount and estimated offering expenses. IRT is using the net proceeds from the offering to pay a portion of the purchase price for the HPI portfolio. Any remaining proceeds will be used for general corporate purposes.
Results of Operations
Same-Store Portfolio.
|
| SAME STORE PROPERTIES |
|
| NON SAME STORE PROPERTIES |
|
| CONSOLIDATED |
| |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
| Three Months Ended September 30, |
|
| Three Months Ended September 30, |
|
| Three Months Ended September 30, |
| |||||||||||||||||||||||||||||||||||||||
|
| 2017 |
|
| 2016 |
|
| Increase (Decrease) |
|
| % Change |
|
| 2017 |
|
| 2016 |
|
| Increase (Decrease) |
|
| % Change |
|
| 2017 |
|
| 2016 |
|
| Increase (Decrease) |
|
| % Change |
| ||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
| $ | 32,483 |
|
| $ | 31,698 |
|
| $ | 785 |
|
|
| 2.5 | % |
| $ | 3,048 |
|
| $ | 2,635 |
|
| $ | 413 |
|
|
| 15.7 | % |
| $ | 35,531 |
|
| $ | 34,333 |
|
| $ | 1,198 |
|
|
| 3.5 | % |
Reimbursement and other income |
|
| 3,913 |
|
|
| 3,645 |
|
|
| 268 |
|
|
| 7.4 | % |
|
| 420 |
|
|
| 386 |
|
|
| 34 |
|
|
| 8.8 | % |
|
| 4,333 |
|
|
| 4,031 |
|
|
| 302 |
|
|
| 7.5 | % |
Total revenue |
|
| 36,396 |
|
|
| 35,343 |
|
|
| 1,053 |
|
|
| 3.0 | % |
|
| 3,468 |
|
|
| 3,021 |
|
|
| 447 |
|
|
| 14.8 | % |
|
| 39,864 |
|
|
| 38,364 |
|
|
| 1,500 |
|
|
| 3.9 | % |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate operating expenses |
|
| 14,744 |
|
|
| 14,520 |
|
|
| 224 |
|
|
| 1.5 | % |
|
| 1,452 |
|
|
| 1,587 |
|
|
| (135 | ) |
|
| -8.5 | % |
|
| 16,196 |
|
|
| 16,107 |
|
|
| 89 |
|
|
| 0.6 | % |
Net Operating Income |
| $ | 21,652 |
|
| $ | 20,823 |
|
| $ | 829 |
|
|
| 4.0 | % |
| $ | 2,016 |
|
| $ | 1,434 |
|
| $ | 582 |
|
|
| 40.6 | % |
| $ | 23,668 |
|
| $ | 22,257 |
|
| $ | 1,411 |
|
|
| 6.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 202 |
|
|
| - |
|
|
| 202 |
|
| NM |
| |
Total other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 202 |
|
|
| - |
|
|
| 202 |
|
| NM |
| |
Corporate and other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1,328 |
|
|
| 1,219 |
|
|
| 109 |
|
|
| 8.9 | % |
General and administrative expenses |
|
|
| 2,322 |
|
|
| 2,665 |
|
|
| (343 | ) |
|
| -12.9 | % | |||||||||||||||||||||||||||||||
Acquisition and integration expenses |
|
|
| 569 |
|
|
| 19 |
|
|
| 550 |
|
| NM |
| ||||||||||||||||||||||||||||||||
Depreciation and amortization expense |
|
|
| 8,671 |
|
|
| 7,765 |
|
|
| 906 |
|
|
| 11.7 | % | |||||||||||||||||||||||||||||||
Total corporate and other expenses |
|
|
| 12,890 |
|
|
| 11,668 |
|
|
| 1,222 |
|
|
| 10.5 | % | |||||||||||||||||||||||||||||||
Operating Income (loss) |
|
|
| 10,980 |
|
|
| 10,589 |
|
|
| 391 |
|
|
| 3.7 | % | |||||||||||||||||||||||||||||||
Interest expense |
|
|
| (6,963 | ) |
|
| (8,820 | ) |
|
| 1,857 |
|
|
| 21.1 | % | |||||||||||||||||||||||||||||||
Hedge ineffectiveness |
|
|
| 12 |
|
|
| - |
|
|
| 12 |
|
| N/M |
| ||||||||||||||||||||||||||||||||
Other income (expense) |
|
|
| - |
|
|
| (2 | ) |
|
| 2 |
|
| N/M |
| ||||||||||||||||||||||||||||||||
Net gains (losses) on sale of assets |
|
|
| (92 | ) |
|
| (1 | ) |
|
| (91 | ) |
| NM |
| ||||||||||||||||||||||||||||||||
Gains (losses) on extinguishment of debt |
|
|
| - |
|
|
| - |
|
|
| - |
|
| N/M |
| ||||||||||||||||||||||||||||||||
Acquisition related debt extinguishment expenses |
|
|
| (2,781 | ) |
|
| - |
|
|
| (2,781 | ) |
| N/M |
| ||||||||||||||||||||||||||||||||
Gains (losses) on TSRE merger and property acquisitions |
|
|
| - |
|
|
| 641 |
|
|
| (641 | ) |
|
| -100.0 | % | |||||||||||||||||||||||||||||||
Net income (loss) |
|
|
| 1,156 |
|
|
| 2,407 |
|
|
| (1,251 | ) |
|
| -51.97 | % | |||||||||||||||||||||||||||||||
(Income) loss allocated to noncontrolling interests |
|
|
| (59 | ) |
|
| (140 | ) |
|
| 81 |
|
|
| 57.9 | % | |||||||||||||||||||||||||||||||
Net income (loss) available to common shares |
|
| $ | 1,097 |
|
| $ | 2,267 |
|
| $ | (1,170 | ) |
|
| -51.61 | % |
SAME-STORE PORTFOLIO | NON SAME-STORE PORTFOLIO | CONSOLIDATED | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | % Change | 2023 | 2022 | Increase (Decrease) | % Change | 2023 | 2022 | Increase (Decrease) | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of properties (1) | 115 | 115 | — | —% | 5 | 7 | (2) | (28.6)% | 120 | 122 | (2) | -1.6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of units (1) | 34,197 | 34,197 | — | —% | 1,230 | 1,979 | (749) | (37.8)% | 35,427 | 36,176 | (749) | (2.1)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average occupancy (1) | 94.6% | 94.2% | 0.4% | — | 94.1% | 93.0% | 1.1% | — | 94.6% | 94.2% | 0.4% | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average effective monthly rent, per unit (1) | $1,549 | $1,484 | $65 | 4.4% | $1,751 | $1,095 | $655 | 59.8% | $1,556 | $1,484 | $72 | 4.9% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental and other property revenue | $ | 161,811 | $ | 153,584 | $ | 8,227 | 5.4 | % | $ | 6,564 | $ | 6,716 | $ | (152) | (2.3) | % | $ | 168,375 | $ | 160,300 | $ | 8,075 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property operating expenses | 60,799 | 57,188 | 3,611 | 6.3 | % | 2,501 | 2,779 | (278) | (10.0) | % | 63,300 | 59,967 | 3,333 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income | $ | 101,012 | $ | 96,396 | $ | 4,616 | 4.8 | % | $ | 4,063 | $ | 3,937 | $ | 126 | 3.2 | % | $ | 105,075 | $ | 100,333 | $ | 4,742 | 4.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenue | $ | 232 | $ | 300 | $ | (68) | (22.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property management expenses | 7,232 | 5,744 | 1,488 | 25.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 3,660 | 5,625 | (1,965) | (34.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 55,546 | 49,722 | 5,824 | 11.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty losses (gains), net | 35 | (191) | 226 | (118.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (loss) income, net | (369) | 765 | (1,134) | (148.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from investments in unconsolidated real estate entities | (1,178) | (1,477) | 299 | (20.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger and integration costs | — | (275) | 275 | (100.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (22,033) | (22,093) | 60 | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss on impairment) gain on sale of real estate assets, net | (11,268) | — | (11,268) | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 3,986 | $ | 16,653 | $ | (12,667) | (76.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income allocated to noncontrolling interests | (56) | (430) | 374 | (87.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common shares | $ | 3,930 | $ | 16,223 | $ | (12,293) | (75.8) | % |
24
advertising expenses.
Expenses
Real estate operatingyear.
Property management expenses. Property management expenses2022. The decrease was primarily due to lower personnel costs from executive departures in 2023 compared to prior year.
General and administrative expenses. General and administrative expenses decreased $0.4 million to $2.3 million for the three months ended September 30, 2017 from $2.7 million for the three months ended September 30, 2016. The decrease was due to cost savings from our management internalization.
Acquisition and integration expenses. Acquisition and integration expenses were $0.6 million for the three months ended September 30, 2017 compared to $0.0 million for the three months ended September 30, 2016. This increase was due to our acquisition of the HPI Portfolio. Acquisition and integration expenses include costs to identify, underwrite, close, and integrate new acquisitions.
Depreciation and amortization expense. Depreciation and amortization expense increased $0.9 million to $8.7 million for the three months ended September 30, 2017 from $7.8 million for the three months ended September 30, 2016.2022. The increase was primarily attributable to $0.4 million of in-place lease intangible amortization recognizedhigher depreciation expenses during the three months ended September 30, 2017 related2023 compared to 2017 property acquisitions and a $0.5 million increase in depreciation expense due to property acquisitions during 2017.
Interest expense. Interest expense decreased $1.8 million to $7.0 million for the three months ended September 30, 2017 from $8.8 million for2022 as a result of timing of properties acquired and depreciated.
Acquisition related debt extinguishment expenses. Acquisition related debt extinguishment expenses were $2.8 million for the three months ended September 30, 2017 due2022.
25
|
| SAME STORE PROPERTIES |
|
| NON SAME STORE PROPERTIES |
|
| CONSOLIDATED |
| |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
| Nine Months Ended September 30, |
|
| Nine Months Ended September 30, |
|
| Nine Months Ended September 30, |
| |||||||||||||||||||||||||||||||||||||||
|
| 2017 |
|
| 2016 |
|
| Increase (Decrease) |
|
| % Change |
|
| 2017 |
|
| 2016 |
|
| Increase (Decrease) |
|
| % Change |
|
| 2017 |
|
| 2016 |
|
| Increase (Decrease) |
|
| % Change |
| ||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
| $ | 96,587 |
|
| $ | 93,313 |
|
| $ | 3,274 |
|
|
| 3.5 | % |
| $ | 8,857 |
|
| $ | 9,958 |
|
| $ | (1,101 | ) |
|
| -11.1 | % |
| $ | 105,444 |
|
| $ | 103,271 |
|
| $ | 2,173 |
|
|
| 2.1 | % |
Reimbursement and other income |
|
| 11,513 |
|
|
| 10,640 |
|
|
| 873 |
|
|
| 8.2 | % |
|
| 1,233 |
|
|
| 1,446 |
|
|
| (213 | ) |
|
| -14.7 | % |
|
| 12,746 |
|
|
| 12,086 |
|
|
| 660 |
|
|
| 5.5 | % |
Total revenue |
|
| 108,100 |
|
|
| 103,953 |
|
|
| 4,147 |
|
|
| 4.0 | % |
|
| 10,090 |
|
|
| 11,404 |
|
|
| (1,314 | ) |
|
| -11.5 | % |
|
| 118,190 |
|
|
| 115,357 |
|
|
| 2,833 |
|
|
| 2.5 | % |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate operating expenses |
|
| 43,297 |
|
|
| 42,199 |
|
|
| 1,098 |
|
|
| 2.6 | % |
|
| 4,809 |
|
|
| 5,389 |
|
|
| (580 | ) |
|
| -10.8 | % |
|
| 48,106 |
|
|
| 47,588 |
|
|
| 518 |
|
|
| 1.1 | % |
Net Operating Income |
| $ | 64,803 |
|
| $ | 61,754 |
|
| $ | 3,049 |
|
|
| 4.9 | % |
| $ | 5,281 |
|
| $ | 6,015 |
|
| $ | (734 | ) |
|
| -12.2 | % |
| $ | 70,084 |
|
| $ | 67,769 |
|
| $ | 2,315 |
|
|
| 3.4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 579 |
|
|
| - |
|
|
| 579 |
|
|
| - |
|
Total other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 579 |
|
|
| - |
|
|
| 579 |
|
|
| - |
|
Corporate and other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4,310 |
|
|
| 3,710 |
|
|
| 600 |
|
|
| 16.2 | % |
General and administrative expenses |
|
|
| 7,128 |
|
|
| 8,074 |
|
|
| (946 | ) |
|
| -11.7 | % | |||||||||||||||||||||||||||||||
Acquisition and integration expenses |
|
|
| 956 |
|
|
| 37 |
|
|
| 919 |
|
| NM |
| ||||||||||||||||||||||||||||||||
Depreciation and amortization expense |
|
|
| 24,289 |
|
|
| 26,927 |
|
|
| (2,638 | ) |
|
| -9.8 | % | |||||||||||||||||||||||||||||||
Total corporate and other expenses |
|
|
| 36,683 |
|
|
| 38,748 |
|
|
| (2,065 | ) |
|
| -5.3 | % | |||||||||||||||||||||||||||||||
Operating Income (loss) |
|
|
| 33,980 |
|
|
| 29,021 |
|
|
| 4,959 |
|
|
| 17.1 | % | |||||||||||||||||||||||||||||||
Interest expense |
|
|
| (21,573 | ) |
|
| (27,815 | ) |
|
| 6,242 |
|
|
| 22.4 | % | |||||||||||||||||||||||||||||||
Hedge ineffectiveness |
|
|
| - |
|
|
| - |
|
|
| - |
|
| N/M |
| ||||||||||||||||||||||||||||||||
Other income (expense) |
|
|
| (5 | ) |
|
| (2 | ) |
|
| (3 | ) |
|
| 150.0 | % | |||||||||||||||||||||||||||||||
Net gains (losses) on sale of assets |
|
|
| 15,873 |
|
|
| 31,773 |
|
|
| (15,900 | ) |
|
| -50.0 | % | |||||||||||||||||||||||||||||||
Gains (losses) on extinguishment of debt |
|
|
| (572 | ) |
|
| (558 | ) |
|
| (14 | ) |
|
| 2.5 | % | |||||||||||||||||||||||||||||||
Acquisition related debt extinguishment expenses |
|
|
| (2,781 | ) |
|
| - |
|
|
| (2,781 | ) |
| N/M |
| ||||||||||||||||||||||||||||||||
Gains (losses) on TSRE merger and property acquisitions |
|
|
| - |
|
|
| 732 |
|
|
| (732 | ) |
| N/M |
| ||||||||||||||||||||||||||||||||
Net income (loss) |
|
|
| 24,922 |
|
|
| 33,151 |
|
|
| (8,229 | ) |
|
| -24.82 | % | |||||||||||||||||||||||||||||||
(Income) loss allocated to noncontrolling interests |
|
|
| (1,009 | ) |
|
| (1,972 | ) |
|
| 963 |
|
|
| 48.8 | % | |||||||||||||||||||||||||||||||
Net income (loss) available to common shares |
|
| $ | 23,913 |
|
| $ | 31,179 |
|
| $ | (7,266 | ) |
|
| -23.30 | % |
SAME-STORE PORTFOLIO | NON SAME-STORE PORTFOLIO | CONSOLIDATED | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Increase (Decrease) | % Change | 2023 | 2022 | Increase (Decrease) | % Change | 2023 | 2022 | Increase (Decrease) | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of properties (1) | 115 | 115 | — | —% | 5 | 7 | (2) | (28.6)% | 120 | 122 | (2) | -1.6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of units (1) | 34,197 | 34,197 | — | —% | 1,230 | 1,979 | (749) | (37.8)% | 35,427 | 36,176 | (749) | (2.1)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average occupancy (1) | 93.9% | 95.1% | (1.2)% | —% | 93.8% | 93.6% | 0.2% | —% | 93.9% | 94.9% | (1.0)% | —% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average effective monthly rent, per unit (1) | $1,536 | $1,426 | $110 | 7.7% | $1,578 | $1,350 | $228 | 16.9% | $1,552 | $1,426 | $126 | 8.8% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental and other property revenue | $ | 474,751 | $ | 446,460 | $ | 28,291 | 6.3% | $ | 18,360 | $ | 18,461 | $ | (101) | (0.5)% | $ | 493,111 | $ | 464,921 | $ | 28,190 | 6.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property operating expenses | 177,533 | 167,123 | 10,410 | 6.2% | 7,094 | 7,702 | (608) | (7.9)% | 184,627 | 174,825 | 9,802 | 5.6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income | $ | 297,218 | $ | 279,337 | $ | 17,881 | 6.4% | $ | 11,266 | $ | 10,759 | $ | 507 | 4.7% | $ | 308,484 | $ | 290,096 | $ | 18,388 | 6.3% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenue | $ | 826 | $ | 805 | $ | 21 | 2.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property management expenses | 20,421 | 17,440 | 2,981 | 17.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 17,724 | 20,521 | (2,797) | (13.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 163,066 | 200,688 | (37,622) | (18.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Casualty losses (gains), net | 866 | (7,176) | 8,042 | (112.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (66,383) | (63,618) | (2,765) | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss on impairment) gain on sale of real estate assets, net | (10,284) | 94,712 | (104,996) | (110.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger and integration costs | — | (3,477) | 3,477 | (100.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (loss) income, net | (348) | 1,501 | (1,849) | (123.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from investments in unconsolidated real estate entities | (3,158) | (2,411) | (747) | 31.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | (3,213) | — | (3,213) | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $23,847 | $86,135 | $(62,288) | (72.3)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income allocated to noncontrolling interests | (559) | (2,517) | 1,958 | (77.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common shares | $23,288 | $83,618 | $(60,330) | (72.1)% |
Reimbursement and other incomeprior year period.
maintenance, advertising, and utilities.
Expenses
Real estate operatingyear.
26
Property management expenses: Property management expensesincreased $0.6stock awards.
General and administrative expensespolicy deductible levels. During the nine months ended September 30, 2022, we recognized net casualty gains of $7.2 million as a result of receiving insurance proceeds in excess of the carrying value of losses incurred.
Acquisition and integration expenses. Acquisition and integration expenses were $1.0 million forvariable rate loans.
Depreciation and amortization expense. Depreciation and amortization expense decreased $2.6 million to $24.3 million forduring the nine months ended September 30, 2017 from $26.9 million for2022. These costs primarily consist of technology migration and implementation, consulting and professional fees and employee severance costs.
Interest expense. Interest expense decreased $6.2 million to $21.6 million for the nine months ended September 30, 2017 from $27.8 million for the nine months ended September 30, 2016. The decrease was due to debt reductions during 2016 when our term loan was fully repaid and our credit facility balance decreased by $121.5 million.
Net gains (losses) on saleemployees.
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.
27
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 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.
|
| For the Three Months Ended September 30, 2017 |
|
| For the Three Months Ended September 30, 2016 |
| ||||||||||
|
| Amount |
|
| Per Share (1) |
|
| Amount |
|
| Per Share (2) |
| ||||
Funds From Operations (FFO): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 1,156 |
|
| $ | 0.02 |
|
| $ | 2,407 |
|
| $ | 0.05 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
| 8,645 |
|
|
| 0.11 |
|
|
| 7,765 |
|
|
| 0.15 |
|
Net (gains) losses on sale of assets excluding defeasance costs |
|
| 92 |
|
|
| - |
|
|
| 1 |
|
|
| - |
|
Funds From Operations (FFO) |
| $ | 9,893 |
|
| $ | 0.13 |
|
| $ | 10,173 |
|
| $ | 0.20 |
|
Core Funds From Operations (CFFO): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations (FFO) |
| $ | 9,893 |
|
| $ | 0.13 |
|
| $ | 10,173 |
|
| $ | 0.20 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
| 422 |
|
|
| 0.01 |
|
|
| 247 |
|
|
| 0.01 |
|
Amortization of deferred financing costs |
|
| 282 |
|
|
| - |
|
|
| 597 |
|
|
| 0.01 |
|
Acquisition and integration expenses |
|
| 569 |
|
|
| 0.01 |
|
|
| 19 |
|
|
| - |
|
Other depreciation and amortization |
|
| 26 |
|
|
| - |
|
|
| - |
|
|
| - |
|
Hedge ineffectiveness |
|
| (12 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
Defeasance costs included in net gains (losses) on sale of assets |
|
| - |
|
|
| - |
|
|
| - |
|
|
|
|
|
(Gains) losses on extinguishment of debt |
|
| - |
|
|
| - |
|
|
| (641 | ) |
|
| (0.01 | ) |
Acquisition related debt extinguishment expenses |
|
| 2,781 |
|
|
| 0.04 |
|
|
| - |
|
|
| - |
|
Core Funds From Operations (CFFO) |
| $ | 13,961 |
|
| $ | 0.19 |
|
| $ | 10,395 |
|
| $ | 0.21 |
|
|
| For the Nine Months Ended September 30, 2017 |
|
| For the Nine Months Ended September 30, 2016 |
| ||||||||||
|
| Amount |
|
| Per Share (1) |
|
| Amount |
|
| Per Share (2) |
| ||||
Funds From Operations (FFO): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 24,922 |
|
| $ | 0.34 |
|
| $ | 33,151 |
|
| $ | 0.66 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
| 24,227 |
|
|
| 0.34 |
|
|
| 26,927 |
|
|
| 0.54 |
|
Net (gains) losses on sale of assets excluding defeasance costs |
|
| (18,621 | ) |
|
| (0.26 | ) |
|
| (33,169 | ) |
|
| (0.66 | ) |
Funds From Operations (FFO) |
| $ | 30,528 |
|
| $ | 0.42 |
|
| $ | 26,909 |
|
| $ | 0.54 |
|
Core Funds From Operations (CFFO): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations (FFO) |
| $ | 30,528 |
|
| $ | 0.42 |
|
| $ | 26,909 |
|
| $ | 0.54 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
| 1,548 |
|
|
| 0.02 |
|
|
| 832 |
|
|
| 0.02 |
|
Amortization of deferred financing costs |
|
| 1,160 |
|
|
| 0.01 |
|
|
| 2,543 |
|
|
| 0.05 |
|
Acquisition and integration expenses |
|
| 956 |
|
|
| 0.01 |
|
|
| 37 |
|
|
| - |
|
Other depreciation and amortization |
|
| 62 |
|
|
| - |
|
|
| - |
|
|
| - |
|
Hedge ineffectiveness |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Defeasance costs included in net gains (losses) on sale of assets |
|
| 2,748 |
|
|
| 0.04 |
|
|
| 1,396 |
|
|
| 0.03 |
|
(Gains) losses on extinguishment of debt |
|
| 572 |
|
|
| 0.01 |
|
|
| 558 |
|
|
| 0.01 |
|
Acquisition related debt extinguishment expenses |
|
| 2,781 |
|
|
| 0.04 |
|
|
| - |
|
|
| - |
|
(Gains) losses on TSRE merger and property acquisitions |
|
| - |
|
|
| - |
|
|
| (732 | ) |
|
| (0.02 | ) |
Core Funds From Operations (CFFO) |
| $ | 40,355 |
|
| $ | 0.55 |
|
| $ | 31,543 |
|
| $ | 0.63 |
|
28
|
|
|
|
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | Per Share(1) | Amount | Per Share(2) | Amount | Per Share(1) | Amount | Per Share(2) | |||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 3,986 | $ | 0.02 | $ | 16,653 | $ | 0.07 | $ | 23,847 | $ | 0.10 | $ | 86,135 | $ | 0.38 | ||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 55,217 | 0.24 | 49,347 | 0.22 | 162,205 | 0.70 | 199,588 | 0.88 | ||||||||||||||||||||||||||||||||||||||||||
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities | 486 | — | 1,388 | 0.01 | 1,479 | 0.01 | 1,904 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Loss on impairment (gain on sale) of real estate assets net, excluding prepayment gains | 11,268 | 0.05 | — | — | 10,954 | 0.05 | (94,712) | (0.42) | ||||||||||||||||||||||||||||||||||||||||||
FFO | $ | 70,957 | $ | 0.31 | $ | 67,388 | $ | 0.30 | $ | 198,485 | $ | 0.86 | $ | 192,915 | $ | 0.85 | ||||||||||||||||||||||||||||||||||
FFO | $ | 70,957 | $ | 0.31 | $ | 67,388 | $ | 0.30 | $ | 198,485 | $ | 0.86 | $ | 192,915 | $ | 0.85 | ||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other depreciation and amortization | 329 | — | 375 | — | 860 | 0.01 | 1,100 | — | ||||||||||||||||||||||||||||||||||||||||||
Casualty losses (gains), net | 35 | — | (191) | — | 866 | 0.01 | (7,176) | (0.03) | ||||||||||||||||||||||||||||||||||||||||||
Loan (premium accretion) discount amortization, net | (2,747) | (0.01) | (2,750) | (0.01) | (8,239) | (0.04) | (8,245) | (0.04) | ||||||||||||||||||||||||||||||||||||||||||
Prepayment (gains) losses on asset dispositions | — | — | — | — | (670) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other expense (income) | 429 | — | (765) | (0.01) | 663 | — | (1,438) | (0.01) | ||||||||||||||||||||||||||||||||||||||||||
Merger and integration costs | — | — | 275 | — | — | — | 3,477 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | — | — | — | — | 3,213 | 0.01 | — | — | ||||||||||||||||||||||||||||||||||||||||||
CFFO | $ | 69,003 | $ | 0.30 | $ | 64,332 | $ | 0.28 | $ | 195,178 | $ | 0.85 | $ | 180,633 | $ | 0.79 |
Same Store
29
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | % change | 2023 | 2022 | % change | ||||||||||||||||||||||||||||||
Net income | $ | 3,986 | $ | 16,653 | (76.1) | % | $ | 23,847 | $ | 86,135 | (72.3) | % | |||||||||||||||||||||||
Other revenue | (232) | (300) | (22.7) | % | (826) | (805) | 2.6 | % | |||||||||||||||||||||||||||
Property management expenses | 7,232 | 5,744 | 25.9 | % | 20,421 | 17,440 | 17.1 | % | |||||||||||||||||||||||||||
General and administrative expenses | 3,660 | 5,625 | (34.9) | % | 17,724 | 20,521 | (13.6) | % | |||||||||||||||||||||||||||
Depreciation and amortization expense | 55,546 | 49,722 | 11.7 | % | 163,066 | 200,688 | (18.7) | % | |||||||||||||||||||||||||||
Casualty losses (gains), net | 35 | (191) | (118.3) | % | 866 | (7,176) | (112.1) | % | |||||||||||||||||||||||||||
Interest expense | 22,033 | 22,093 | (0.3) | % | 66,383 | 63,618 | 4.3 | % | |||||||||||||||||||||||||||
Loss on impairment (gain on sale) of real estate assets, net | 11,268 | — | 100.0 | % | 10,284 | (94,712) | (110.9) | % | |||||||||||||||||||||||||||
Other loss (income), net | 369 | (765) | (148.2) | % | 348 | (1,501) | (123.2) | % | |||||||||||||||||||||||||||
Loss from investments in unconsolidated real estate entities | 1,178 | 1,477 | (20.2) | % | 3,158 | 2,411 | 31.0 | % | |||||||||||||||||||||||||||
Merger and integration costs | — | 275 | (100.0) | % | — | 3,477 | (100.0) | % | |||||||||||||||||||||||||||
Restructuring costs | — | — | — | % | 3,213 | — | 100.0 | % | |||||||||||||||||||||||||||
NOI | 105,075 | 100,333 | 4.7 | % | 308,484 | 290,096 | 6.3 | % | |||||||||||||||||||||||||||
Less: Non same-store portfolio NOI | 4,063 | 3,937 | 3.2 | % | 11,266 | 10,759 | 4.7 | % | |||||||||||||||||||||||||||
Same-store portfolio NOI (a) | $ | 101,012 | $ | 96,396 | 4.8 | % | $ | 297,218 | $ | 279,337 | 6.4 | % |
| Three Months Ended September 30, (a) |
| Nine Months Ended September 30, (a) |
| ||||||||||||||||||||
| 2017 |
|
| 2016 |
|
| % change |
| 2017 |
|
| 2016 |
|
| % change |
| ||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income | $ | 32,483 |
|
| $ | 31,698 |
|
|
| 2.5 | % |
|
| $ | 96,587 |
|
| $ | 93,313 |
|
|
| 3.5 | % |
Reimbursement and other income |
| 3,913 |
|
|
| 3,645 |
|
|
| 7.4 | % |
|
|
| 11,513 |
|
|
| 10,640 |
|
|
| 8.2 | % |
Total revenue |
| 36,396 |
|
|
| 35,343 |
|
|
| 3.0 | % |
|
|
| 108,100 |
|
|
| 103,953 |
|
|
| 4.0 | % |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
| 4,388 |
|
|
| 4,280 |
|
|
| 2.5 | % |
|
|
| 13,153 |
|
|
| 12,845 |
|
|
| 2.4 | % |
Property insurance |
| 747 |
|
|
| 748 |
|
|
| -0.1 | % |
|
|
| 2,348 |
|
|
| 2,254 |
|
|
| 4.2 | % |
Personnel expenses |
| 3,573 |
|
|
| 3,449 |
|
|
| 3.6 | % |
|
|
| 10,456 |
|
|
| 10,038 |
|
|
| 4.2 | % |
Utilities |
| 2,353 |
|
|
| 2,280 |
|
|
| 3.2 | % |
|
|
| 6,699 |
|
|
| 6,540 |
|
|
| 2.4 | % |
Repairs and maintenance |
| 1,550 |
|
|
| 1,460 |
|
|
| 6.2 | % |
|
|
| 4,117 |
|
|
| 3,816 |
|
|
| 7.9 | % |
Contract services |
| 1,074 |
|
|
| 1,060 |
|
|
| 1.3 | % |
|
|
| 3,207 |
|
|
| 3,254 |
|
|
| -1.4 | % |
Advertising expenses |
| 397 |
|
|
| 399 |
|
|
| -0.5 | % |
|
|
| 1,161 |
|
|
| 1,198 |
|
|
| -3.1 | % |
Other expenses |
| 662 |
|
|
| 844 |
|
|
| -21.6 | % |
|
|
| 2,156 |
|
|
| 2,254 |
|
|
| -4.3 | % |
Total operating expenses |
| 14,744 |
|
|
| 14,520 |
|
|
| 1.5 | % |
|
|
| 43,297 |
|
|
| 42,199 |
|
|
| 2.6 | % |
Net operating income | $ | 21,652 |
|
| $ | 20,823 |
|
|
| 4.0 | % |
|
| $ | 64,803 |
|
| $ | 61,754 |
|
|
| 4.9 | % |
NOI Margin |
| 59.5 | % |
|
| 58.9 | % |
|
| 0.6 | % |
|
|
| 59.9 | % |
|
| 59.4 | % |
|
| 0.5 | % |
Average Occupancy |
| 94.7 | % |
|
| 94.3 | % |
|
| 0.4 | % |
|
|
| 94.5 | % |
|
| 93.5 | % |
|
| 1.0 | % |
Average effective monthly rent, per unit | $ | 1,020 |
|
| $ | 999 |
|
|
| 2.2 | % |
|
| $ | 1,014 |
|
| $ | 984 |
|
|
| 3.0 | % |
Reconciliation of Same-Store Net Operating Income to Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store portfolio net operating income (a) | $ | 21,652 |
|
| $ | 20,823 |
|
|
|
|
|
|
| $ | 64,803 |
|
| $ | 61,754 |
|
|
|
|
|
Non same-store net operating income |
| 2,016 |
|
|
| 1,434 |
|
|
|
|
|
|
|
| 5,281 |
|
|
| 6,015 |
|
|
|
|
|
Property management income |
| 202 |
|
|
| - |
|
|
|
|
|
|
|
| 579 |
|
|
| - |
|
|
|
|
|
Property management expenses |
| (1,328 | ) |
|
| (1,219 | ) |
|
|
|
|
|
|
| (4,310 | ) |
|
| (3,710 | ) |
|
|
|
|
General and administrative expenses |
| (2,322 | ) |
|
| (2,665 | ) |
|
|
|
|
|
|
| (7,128 | ) |
|
| (8,074 | ) |
|
|
|
|
Acquisition and integration expenses |
| (569 | ) |
|
| (19 | ) |
|
|
|
|
|
|
| (956 | ) |
|
| (37 | ) |
|
|
|
|
Depreciation and amortization |
| (8,671 | ) |
|
| (7,765 | ) |
|
|
|
|
|
|
| (24,289 | ) |
|
| (26,927 | ) |
|
|
|
|
Interest expense |
| (6,963 | ) |
|
| (8,820 | ) |
|
|
|
|
|
|
| (21,573 | ) |
|
| (27,815 | ) |
|
|
|
|
Hedge ineffectiveness |
| 12 |
|
|
| - |
|
|
|
|
|
|
|
| - |
|
|
| - |
|
|
|
|
|
Other income (expense) |
| - |
|
|
| (2 | ) |
|
|
|
|
|
|
| (5 | ) |
|
| (2 | ) |
|
|
|
|
Net gains (losses) on sale of assets |
| (92 | ) |
|
| (1 | ) |
|
|
|
|
|
|
| 15,873 |
|
|
| 31,773 |
|
|
|
|
|
Gains (losses) on extinguishment of debt |
| - |
|
|
| - |
|
|
|
|
|
|
|
| (572 | ) |
|
| (558 | ) |
|
|
|
|
Acquisition related debt extinguishment expenses |
| (2,781 | ) |
|
| - |
|
|
|
|
|
|
|
| (2,781 | ) |
|
| - |
|
|
|
|
|
Gains (losses) on TSRE merger |
| - |
|
|
| 641 |
|
|
|
|
|
|
|
| - |
|
|
| 732 |
|
|
|
|
|
Net income (loss) available to common shares | $ | 1,156 |
|
| $ | 2,407 |
|
|
|
|
|
|
| $ | 24,922 |
|
| $ | 33,151 |
|
|
|
|
|
|
|
Three Months Ended September 30,(a) | Nine Months Ended September 30,(a) | ||||||||||||||||||||||||||||||||||
2023 | 2022 | % change | 2023 | 2022 | % change | ||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Rental and other property revenue | $ | 161,811 | $ | 153,584 | 5.4 | % | $ | 474,751 | $ | 446,460 | 6.3 | % | |||||||||||||||||||||||
Property Operating Expenses | |||||||||||||||||||||||||||||||||||
Real estate taxes | 19,381 | 18,727 | 3.5 | % | 58,325 | 57,630 | 1.2 | % | |||||||||||||||||||||||||||
Property insurance | 4,344 | 3,536 | 22.9 | % | 11,351 | 9,343 | 21.5 | % | |||||||||||||||||||||||||||
Personnel expenses | 12,828 | 12,103 | 6.0 | % | 37,313 | 36,752 | 1.5 | % | |||||||||||||||||||||||||||
Utilities | 8,165 | 8,021 | 1.8 | % | 23,576 | 22,419 | 5.2 | % | |||||||||||||||||||||||||||
Repairs and maintenance | 6,389 | 6,013 | 6.3 | % | 18,726 | 16,315 | 14.8 | % | |||||||||||||||||||||||||||
Contract services | 5,936 | 5,391 | 10.1 | % | 17,630 | 15,362 | 14.8 | % | |||||||||||||||||||||||||||
Advertising expenses | 2,042 | 1,487 | 37.3 | % | 5,087 | 3,947 | 28.9 | % | |||||||||||||||||||||||||||
Other expenses | 1,714 | 1,910 | (10.3) | % | 5,525 | 5,355 | 3.2 | % | |||||||||||||||||||||||||||
Total property operating expenses | 60,799 | 57,188 | 6.3 | % | 177,533 | 167,123 | 6.2 | % | |||||||||||||||||||||||||||
Same-store portfolio NOI | $ | 101,012 | $ | 96,396 | 4.8 | % | $ | 297,218 | $ | 279,337 | 6.4 | % |
Same-store portfolio NOI Margin | 62.4 | % | 62.8 | % | (0.4) | % | 62.6 | % | 62.6 | % | — | % | |||||||||||||||||||||||
Average Occupancy | 94.6 | % | 94.2 | % | 0.4 | % | 93.9 | % | 95.1 | % | (1.2) | % |
Average effective monthly rent, per unit | $ | 1,549 | $ | 1,484 | 4.4 | % | $ | 1,536 | $ | 1,426 | 7.7 | % |
30
•make investments to continue our value add initiatives to improve the quality and fund the associated costs;
•repay our indebtedness;
•continue funding our current real estate developments until completion;
•distribute a minimum of 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gain) and to make investments in a manner that enables us to maintain our qualification as a REIT.
•the use of our cash and cash equivalent balanceequivalents of $10.1$17.2 million as of September 30, 2017;
•existing and future unsecured financing, including advances under our unsecured credit facility, and financing secured directly or indirectly by the apartment properties in our portfolio;
•cash generated from operating activities;
•net cash proceeds from property sales, implementingincluding sales undertaken as part of our capital recycling strategy and other sales;
•proceeds from the salesales of our common stock;stock and
if required, proceeds from future borrowings and offerings.
On May 1, 2017, we closed on a new $300.0 million unsecured credit facility, refinancing and terminating the previous secured credit facility. The new facility is comprised of a $50.0 million term loan and a revolving commitment of up to $250.0 million. The maturity date on the new term loan is May 1, 2022, and the maturity date on borrowings outstanding under the revolving commitment is May 1, 2021, extending the September 17, 2018 maturity of the previous secured credit facility. Based on our current leverage levels, our annual interest cost is LIBOR plus 145 basis points under the term loan and LIBOR plus 150 basis points for borrowings outstanding under the revolving commitments, an annual savings of approximately 35 to 40 basis points from our previous secured credit facility.
Cash Flows
For the Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flow provided by operating activities | $ | 202,992 | $ | 191,241 | |||||||
Cash flow used in investing activities | (142,617) | (174,162) | |||||||||
Cash flow used in financing activities | (55,404) | (23,168) | |||||||||
Net change in cash and cash equivalents, and restricted cash | 4,971 | (6,089) | |||||||||
Cash and cash equivalents, and restricted cash, beginning of period | 44,017 | 65,671 | |||||||||
Cash and cash equivalents, and restricted cash, end of the period | $ | 48,988 | $ | 59,582 |
|
| For the Nine Months Ended September 30, |
| |||||
|
| 2017 |
|
| 2016 |
| ||
Cash flow provided by operating activities |
| $ | 45,056 |
|
| $ | 33,330 |
|
Cash flow (used in) provided by investing activities |
|
| (145,884 | ) |
|
| 29,036 |
|
Cash flow (used in) provided by financing activities |
|
| 90,064 |
|
|
| (71,420 | ) |
Net change in cash and cash equivalents |
|
| (10,764 | ) |
|
| (9,054 | ) |
Cash and cash equivalents at beginning of period |
|
| 20,892 |
|
|
| 38,301 |
|
Cash and cash equivalents at end of period |
| $ | 10,128 |
|
| $ | 29,247 |
|
The increase in ourOur cash flowinflows from operating activities during the nine months ended September 30, 2017 was2023 and 2022 were primarily driven by the increased performanceongoing operations of our property portfolio.
properties.
acquisitions of real estate properties, $55.6 million of capital expenditures, $51.4 million of investments in unconsolidated real estate entities, and $40.0 million of investments in real estate under development partially offset by $155.6 million of proceeds from four property dispositions and proceeds from insurance claims of $15.7 million.
As a REIT, we evaluate our dividend coverage basedpayment of dividends on our cash flow from operating activities, excluding acquisition and integration expenses and changes in other assets and liabilities. During the nine months ended September 30, 2017, we paid
31
distributions to our common stockholdersstock and noncontrolling interests of $38.9$76.4 million partially offset by $687.5 million of proceeds from unsecured credit facilities and generated cash flowterm loan restructurings and $48.8 million of proceeds from operating activities excluding acquisition and integration expenses andthe issuance of common stock.
our 2022 Annual Report on Form 10-K.
| Item 3. Quantitative and Qualitative |
Market risk is the adverse effectRisk.
We may also be exposed to credit risk in derivative contracts we may use. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. If the fair value of a derivative contract is positive, the counterparty will owe us, which creates credit risk for us. If the fair value of a derivative contract is negative, we will owe the counterparty and, therefore, do not have credit risk. We seek to minimize the credit risk in derivative instruments by entering into transactions with high-quality counterparties.
There have been no material changes in quantitative and qualitative market risks during the nine months ended September 30, 20172023 from the disclosures included in our 20162022 Annual Report on Form 10-K.
| Item 4. Controls and Procedures. |
Under the supervision of our chief executive officer and chief financial officer and with the participation of our disclosure committee, we have carried out an evaluationChief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report.procedures. Based uponon that evaluation, our chief executive officerChief Executive Officer and chief financial officerChief Financial Officer concluded that ourthe disclosure controls and procedures are effective atto ensure that information required to be disclosed by us in our Exchange Act filings is recorded, processed, summarized and reported within the reasonable assurance level.
32
| Item 1. Legal Proceedings. |
| Item 1A. Risk Factors. |
| Item 2. Unregistered Sales of Equity Securities |
We have previously disclosed four “UPREIT” transactions completed in May 2014, August 2014, November 2014 and December 2014 whereinUse of Proceeds.
Period | Total Number of Shares Purchased | Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
Jul 2023 | 1,478 | $ | 17.68 | — | $ | 250,000 | ||||||||||||||||||||
Aug 2023 | — | — | — | 250,000 | ||||||||||||||||||||||
Sep 2023 | — | — | — | 250,000 | ||||||||||||||||||||||
Total | 1,478 | $ | 17.68 | — |
| Item 3. Defaults Upon Senior Securities. |
| Item 4. Mine Safety Disclosures. |
| Item 5. Other Information. |
None.
| Item 6. Exhibits. |
33
101 |
| |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
34
Independence Realty Trust, Inc. | ||||||||||
Date: October 31, | By: |
| /s/ | |||||||
Scott F. Schaeffer | ||||||||||
Chairman of the Board and Chief Executive Officer | ||||||||||
(Principal Executive Officer) | ||||||||||
Date: October 31, | By: |
| /s/ JAMES J. SEBRA | |||||||
James J. Sebra | ||||||||||
| ||||||||||
Chief Financial Officer and Treasurer | ||||||||||
(Principal Financial Officer) | ||||||||||
Date: October 31, 2023 | By: | /s/ JASON R. DELOZIER | ||||||||
Jason R. Delozier | ||||||||||
Chief Accounting Officer | ||||||||||
(Principal Accounting Officer) |
35