Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36041 | |
Entity Registrant Name | INDEPENDENCE REALTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-4567130 | |
Entity Address, Address Line One | 1835 Market Street | |
Entity Address, Address Line Two | Suite 2601 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 267 | |
Local Phone Number | 270-4800 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | IRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 225,120,618 | |
Entity Central Index Key | 0001466085 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments in real estate: | ||
Investments in real estate, at cost | $ 6,218,019 | $ 6,259,212 |
Accumulated depreciation | (667,681) | (582,760) |
Investments in real estate, net | 5,550,338 | 5,676,452 |
Real estate held for sale | 69,829 | 296,334 |
Investments in real estate under development | 115,196 | 98,365 |
Cash and cash equivalents | 21,034 | 22,852 |
Restricted cash | 26,364 | 27,880 |
Investments in unconsolidated real estate entities | 90,347 | 89,044 |
Other assets | 28,731 | 39,245 |
Derivative assets | 38,422 | 29,937 |
Intangible assets, net of accumulated amortization of $0 and $332, respectively | 0 | 66 |
Total Assets | 5,940,261 | 6,280,175 |
LIABILITIES AND EQUITY: | ||
Indebtedness, net | 2,202,961 | 2,426,788 |
Indebtedness associated with real estate held for sale | 49,598 | 122,621 |
Accounts payable and accrued expenses | 102,040 | 109,074 |
Accrued interest payable | 6,795 | 7,917 |
Dividends payable | 36,906 | 36,858 |
Other liabilities | 8,421 | 9,723 |
Total Liabilities | 2,406,721 | 2,712,981 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 225,122,235 and 224,706,731 shares issued and outstanding, including 402,249 and 288,250 unvested restricted common share awards, respectively | 2,251 | 2,247 |
Additional paid-in capital | 3,754,756 | 3,751,942 |
Accumulated other comprehensive income | 34,380 | 25,513 |
Accumulated deficit | (392,627) | (348,405) |
Total stockholders’ equity | 3,398,760 | 3,431,297 |
Noncontrolling interests | 134,780 | 135,897 |
Total Equity | 3,533,540 | 3,567,194 |
Total Liabilities and Equity | $ 5,940,261 | $ 6,280,175 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 0 | $ 332 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 225,122,235 | 224,706,731 |
Common stock, shares outstanding (in shares) | 225,122,235 | 224,706,731 |
Unvested restricted common share awards (in shares) | 402,249 | 288,250 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUE: | ||||
Rental and other property revenue | $ 158,104 | $ 163,601 | $ 318,436 | $ 324,736 |
Other revenue | 298 | 354 | 501 | 594 |
Total revenue | 158,402 | 163,955 | 318,937 | 325,330 |
EXPENSES: | ||||
Property operating expenses | 60,883 | 62,071 | 120,854 | 121,327 |
Property management expenses | 7,666 | 6,818 | 15,165 | 13,189 |
General and administrative expenses | 6,244 | 5,910 | 14,624 | 14,063 |
Depreciation and amortization expense | 54,127 | 53,984 | 107,850 | 107,520 |
Casualty losses | 465 | 680 | 2,767 | 831 |
Total expenses | 129,385 | 129,463 | 261,260 | 256,930 |
Interest expense | (17,460) | (22,227) | (38,063) | (44,351) |
(Loss on impairment) gain on sale of real estate assets, net | (152) | 0 | 10,378 | 985 |
Gain on extinguishment of debt | 0 | 0 | 203 | 0 |
Other (loss) income, net | 0 | (72) | (1) | 21 |
Loss from investments in unconsolidated real estate entities | (850) | (1,205) | (1,679) | (1,981) |
Restructuring costs | 0 | 0 | 0 | (3,213) |
Net income: | 10,555 | 10,988 | 28,515 | 19,861 |
Income allocated to noncontrolling interest | (201) | (279) | (585) | (503) |
Net income allocable to common shares | $ 10,354 | $ 10,709 | $ 27,930 | $ 19,358 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.12 | $ 0.09 |
Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.12 | $ 0.09 |
Weighted-average shares: | ||||
Basic (in shares) | 224,793,229 | 224,422,515 | 224,710,259 | 224,325,246 |
Diluted (in shares) | 225,418,825 | 225,073,890 | 225,403,082 | 225,088,261 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,555 | $ 10,988 | $ 28,515 | $ 19,861 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate hedges | 5,065 | 18,834 | 19,527 | 11,919 |
Realized (gains) losses on interest rate hedges reclassified to earnings | (5,189) | (4,749) | (10,428) | (8,126) |
Total other comprehensive (loss) income | (124) | 14,085 | 9,099 | 3,793 |
Comprehensive income before allocation to noncontrolling interests | 10,431 | 25,073 | 37,614 | 23,654 |
Allocation to noncontrolling interests | (198) | (642) | (817) | (576) |
Comprehensive income | $ 10,233 | $ 24,431 | $ 36,797 | $ 23,078 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Shares | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Noncontrolling Interests |
Beginning Balance (in Shares) at Dec. 31, 2022 | 224,064,940 | ||||||
Beginning balance at Dec. 31, 2022 | $ 3,737,867 | $ 3,596,664 | $ 2,241 | $ 3,751,056 | $ 35,102 | $ (191,735) | $ 141,203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 8,872 | 8,648 | 8,648 | 224 | |||
Common dividends declared | (31,688) | (31,688) | (31,688) | ||||
Other comprehensive income | (10,290) | (10,001) | (10,001) | (289) | |||
Stock compensation (in shares) | 383,439 | ||||||
Stock compensation | 4,778 | 4,778 | $ 4 | 4,774 | |||
Repurchase of shares related to equity award tax withholding (in shares) | (36,109) | ||||||
Repurchase of shares related to equity award tax withholding | (3,757) | (3,757) | (3,757) | ||||
Conversion of noncontrolling interest to common shares (in shares) | 144,600 | ||||||
Conversion of noncontrolling interest to common shares | 0 | 1,015 | $ 1 | 1,014 | (1,015) | ||
Issuance of common shares, net | (13) | (13) | (13) | ||||
Distribution to noncontrolling interest declared | (834) | (834) | |||||
Ending Balance (in shares) at Mar. 31, 2023 | 224,556,870 | ||||||
Ending balance at Mar. 31, 2023 | 3,704,935 | 3,565,646 | $ 2,246 | 3,753,074 | 25,101 | (214,775) | 139,289 |
Beginning Balance (in Shares) at Dec. 31, 2022 | 224,064,940 | ||||||
Beginning balance at Dec. 31, 2022 | 3,737,867 | 3,596,664 | $ 2,241 | 3,751,056 | 35,102 | (191,735) | 141,203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 19,861 | ||||||
Other comprehensive income | 3,793 | ||||||
Ending Balance (in shares) at Jun. 30, 2023 | 224,697,889 | ||||||
Ending balance at Jun. 30, 2023 | 3,694,917 | 3,555,937 | $ 2,247 | 3,754,839 | 38,823 | (239,972) | 138,980 |
Beginning Balance (in Shares) at Mar. 31, 2023 | 224,556,870 | ||||||
Beginning balance at Mar. 31, 2023 | 3,704,935 | 3,565,646 | $ 2,246 | 3,753,074 | 25,101 | (214,775) | 139,289 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,988 | 10,709 | 10,709 | 279 | |||
Common dividends declared | (35,906) | (35,906) | (35,906) | ||||
Other comprehensive income | 14,085 | 13,722 | 13,722 | 363 | |||
Stock compensation (in shares) | 142,206 | ||||||
Stock compensation | 1,785 | 1,785 | $ 1 | 1,784 | |||
Repurchase of shares related to equity award tax withholding (in shares) | (1,187) | ||||||
Repurchase of shares related to equity award tax withholding | (19) | (19) | (19) | ||||
Distribution to noncontrolling interest declared | (951) | (951) | |||||
Ending Balance (in shares) at Jun. 30, 2023 | 224,697,889 | ||||||
Ending balance at Jun. 30, 2023 | $ 3,694,917 | 3,555,937 | $ 2,247 | 3,754,839 | 38,823 | (239,972) | 138,980 |
Beginning Balance (in Shares) at Dec. 31, 2023 | 224,706,731 | 224,706,731 | |||||
Beginning balance at Dec. 31, 2023 | $ 3,567,194 | 3,431,297 | $ 2,247 | 3,751,942 | 25,513 | (348,405) | 135,897 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 17,961 | 17,577 | 17,577 | 384 | |||
Common dividends declared | (36,187) | (36,187) | (36,187) | ||||
Other comprehensive income | 9,224 | 8,988 | 8,988 | 236 | |||
Stock compensation (in shares) | 391,667 | ||||||
Stock compensation | 3,460 | 3,460 | $ 4 | 3,456 | |||
Repurchase of shares related to equity award tax withholding (in shares) | (32,930) | ||||||
Repurchase of shares related to equity award tax withholding | (1,598) | (1,598) | (1,598) | ||||
Conversion of noncontrolling interest to common shares (in shares) | 4,928 | ||||||
Conversion of noncontrolling interest to common shares | 0 | 33 | 33 | (33) | |||
Distribution to noncontrolling interest declared | (951) | (951) | |||||
Ending Balance (in shares) at Mar. 31, 2024 | 225,070,396 | ||||||
Ending balance at Mar. 31, 2024 | $ 3,559,103 | 3,423,570 | $ 2,251 | 3,753,833 | 34,501 | (367,015) | 135,533 |
Beginning Balance (in Shares) at Dec. 31, 2023 | 224,706,731 | 224,706,731 | |||||
Beginning balance at Dec. 31, 2023 | $ 3,567,194 | 3,431,297 | $ 2,247 | 3,751,942 | 25,513 | (348,405) | 135,897 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 28,515 | ||||||
Other comprehensive income | $ 9,099 | ||||||
Conversion of noncontrolling interest to common shares (in shares) | 4,928 | ||||||
Ending Balance (in shares) at Jun. 30, 2024 | 225,122,235 | 225,122,235 | |||||
Ending balance at Jun. 30, 2024 | $ 3,533,540 | 3,398,760 | $ 2,251 | 3,754,756 | 34,380 | (392,627) | 134,780 |
Beginning Balance (in Shares) at Mar. 31, 2024 | 225,070,396 | ||||||
Beginning balance at Mar. 31, 2024 | 3,559,103 | 3,423,570 | $ 2,251 | 3,753,833 | 34,501 | (367,015) | 135,533 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,555 | 10,354 | 10,354 | 201 | |||
Common dividends declared | (35,966) | (35,966) | (35,966) | ||||
Other comprehensive income | (124) | (121) | (121) | (3) | |||
Stock compensation (in shares) | 56,560 | ||||||
Stock compensation | 1,940 | 1,940 | 1,940 | ||||
Repurchase of shares related to equity award tax withholding (in shares) | (4,721) | ||||||
Repurchase of shares related to equity award tax withholding | (945) | (945) | (945) | ||||
Issuance of common shares, net | (72) | (72) | (72) | ||||
Distribution to noncontrolling interest declared | $ (951) | (951) | |||||
Ending Balance (in shares) at Jun. 30, 2024 | 225,122,235 | 225,122,235 | |||||
Ending balance at Jun. 30, 2024 | $ 3,533,540 | $ 3,398,760 | $ 2,251 | $ 3,754,756 | $ 34,380 | $ (392,627) | $ 134,780 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common dividends declared per share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.14 |
Distribution to noncontrolling interest declared per share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.14 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||||
Net income | $ 10,555 | $ 10,988 | $ 28,515 | $ 19,861 |
Adjustments to reconcile net income to cash flow from operating activities: | ||||
Depreciation and amortization | 54,127 | 53,984 | 107,850 | 107,520 |
Accretion of loan discounts and premiums, net | (4,679) | (5,493) | ||
Amortization of deferred financing costs, net | 1,379 | 1,763 | ||
Stock compensation expense | 5,250 | 6,462 | ||
Gain on sale of real estate assets, net | 152 | 0 | (10,378) | (985) |
Gain on extinguishment of debt | 0 | 0 | (203) | 0 |
Amortization related to derivative instruments | 614 | 644 | ||
Non-cash casualty losses | 1,510 | 831 | ||
Equity in loss from investments in unconsolidated real estate entities | 850 | 1,205 | 1,679 | 1,981 |
Other losses | 1 | 891 | ||
Changes in assets and liabilities: | ||||
Other assets | 5,145 | 4,186 | ||
Accounts payable and accrued expenses | (7,827) | (9,308) | ||
Accrued interest payable | (1,122) | 273 | ||
Other liabilities | (654) | (1,432) | ||
Cash flow provided by operating activities | 127,080 | 127,194 | ||
Cash flows from investing activities: | ||||
Investments in unconsolidated real estate entities | (2,982) | (21,729) | ||
Disposition of real estate properties, net | 320,606 | 35,557 | ||
Capital expenditures | (55,698) | (67,199) | ||
Real estate development expenditures | (26,884) | (30,588) | ||
Proceeds from insurance claims | 3,511 | 0 | ||
Cash flow provided by (used in) investing activities | 238,553 | (83,959) | ||
Cash flows from financing activities: | ||||
Proceeds from unsecured credit facility and term loans | 131,000 | 125,000 | ||
Unsecured credit facility, secured credit facility and term loan repayments | (262,652) | (97,513) | ||
Mortgage principal repayments and payoffs | (159,675) | (3,666) | ||
Costs associated with debt payoffs | (663) | 0 | ||
Payments for deferred financing costs | (357) | (60) | ||
Distributions on common stock | (72,104) | (63,026) | ||
Distributions to noncontrolling interests | (1,901) | (1,686) | ||
Repurchase of shares related to equity award tax withholding | (2,543) | (3,776) | ||
Costs from issuance of common stock, net | (72) | (13) | ||
Cash flow used in financing activities | (368,967) | (44,740) | ||
Net change in cash and cash equivalents, and restricted cash | (3,334) | (1,505) | ||
Cash and cash equivalents, and restricted cash, beginning of period | 50,732 | 44,017 | ||
Cash and cash equivalents, and restricted cash, end of the period | 47,398 | 42,512 | 47,398 | 42,512 |
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets | ||||
Cash and cash equivalents | 21,034 | 14,349 | 21,034 | 14,349 |
Restricted cash | 26,364 | 28,163 | 26,364 | 28,163 |
Total cash, cash equivalents, and restricted cash, end of period | $ 47,398 | $ 42,512 | $ 47,398 | $ 42,512 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | NOTE 1: Organization Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland real estate investment trust (“REIT”) which was formed on March 26, 2009. We are primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets. As of June 30, 2024, we owned and operated 110 (unaudited) multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 32,685 (unaudited) units across non-gateway U.S. markets, including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Nashville, Oklahoma City, Raleigh-Durham, and Tampa. In addition, as of June 30, 2024, we owned two investments in real estate under development in Denver, Colorado that will, upon completion, contain an aggregate of 621 (unaudited) units. As of June 30, 2024, we also owned interests in four unconsolidated joint ventures, two of which own and operate multifamily apartment communities that contain an aggregate of 810 (unaudited) units and two of which are developing multifamily apartment properties that will, upon completion, contain an aggregate of 653 (unaudited) units. We own all of our assets and conduct substantially all of our operations through Independence Realty Operating Partnership, LP, a Delaware limited partnership (“IROP”), of which we are the sole general partner. As used herein, the terms “we,” “our,” and “us” refer to IRT and, as required by context, IROP and its subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2: Summary of Significant Accounting Policies a. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our condensed consolidated financial position and condensed consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. 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. b. Principles of Consolidation The condensed consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP. c. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. d. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents. e. Restricted Cash Restricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of June 30, 2024 and December 31, 2023, we had $26,364 and $27,880, respectively, of restricted cash. f. Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, necessary approvals are obtained, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets In accordance with FASB ASC Topic 805 (“ASC 805”), we evaluate our real estate acquisitions to determine if they should be accounted for as a business or as a group of assets. The evaluation includes an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the acquisition is not a business. The properties we have acquired met the screen test and are accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to these intangible assets is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2024 and 2023, we did not acquire any in-place leases. For each of the three and six months ended June 30, 2024, we recorded $0, and $66 , respectively, of amortization for intangible assets. For the three and six months ended June 30, 2023, we recorded $0 and $399, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2024, we wrote-off fully amortized intangible assets wrote-off fully amortized intangible assets Business Combinations For properties we acquire or transactions we enter into that are accounted for as business combinations, we apply the acquisition method of accounting under ASC 805, which requires the identification of the acquiror, the determination of the acquisition date, and the recognition and measurement, at fair value, of the assets acquired and liabilities assumed. To the extent that the fair value of net assets acquired differs from the fair value of consideration paid, ASC 805 requires the recognition of goodwill or a gain from a bargain purchase price, if any. Impairment of Long-Lived Assets Management evaluates the recoverability of our investments in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. We review our long-lived assets on an ongoing basis and evaluate the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recognized when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows and estimated fair value used in the impairment analysis are determined based on our plans for the respective assets, including the expected hold period, and our assessment of market and economic conditions. The estimates consider matters such as current and historical rental rates and collection levels, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in our plans or views of market and economic conditions may result in adjustments to estimated future cash flows, which could lead to recognition of impairment losses. These losses, as guided by the applicable accounting standards, could be significant. For each of the three and six months ended June 30, 2024, we recorded impairment charges of $0 and $15,107, respectively, on account of real estate classified as held for sale and sold properties. For the three and six months ended June 30, 2023, we did not incur an impairment charge. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five Casualty Related Costs Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. Sometimes, a portion of these losses are not fully covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty losses (gains), net when the proceeds are received. During the three and six months ended June 30, 2024, we recorded $465 and $2,767 of net casualty losses, respectively. During the three and six months ended June 30, 2023, we recorded $680 and $831 of net casualty losses, respectively. g. Investments in Real Estate Under Development We capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate. For the three and six months ended June 30, 2024, we recorded $1,771 and $3,341, respectively, of capitalized interest expense on our investments in real estate under development. For the three and six months ended June 30, 2023, we recorded $1,715 and $3,168, respectively, of capitalized interest expense on our investments in real estate under development. As of June 30, 2024 and December 31, 2023, the carrying value of our two investments in real estate under development in Denver, Colorado totaled $115,196 and $98,365, respectively, net of $87,061 and $77,520 placed in service, respectively, and was recorded as a separate line item in our condensed consolidated balance sheets. h. Investments in Unconsolidated Real Estate Entities We have entered into joint ventures with unrelated third parties to acquire, develop, own, operate, and manage real estate assets. Our joint ventures are funded with a combination of debt and equity. We will consolidate entities that we control as well as any variable interest entity ("VIE") where we are the primary beneficiary. Under the VIE model, we consolidate an entity when we have the ability to direct the activities of the VIE and the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, we consolidate an entity when we control the entity through ownership of a majority voting interest. We separately analyzed the initial accounting for each of our four investments in unconsolidated real estate entities and concluded that each investment is a voting interest entity. Our equity interest varies for each of our four investments in unconsolidated real estate entities between 50% to 90% but, in each case, we share control of the major decisions that most significantly impact the joint ventures with our partners. Since we do not control the joint venture through our ownership interest, they are accounted for under the equity method of accounting, and are included in investments in unconsolidated real estate entities on the condensed consolidated balance sheets. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses. For the three and six months ended June 30, 2024, we recorded $1,190 and $2,462, respectively, of capitalized interest expense on our investments in unconsolidated real estate entities in our condensed consolidated balance sheets. For the three and six months ended June 30, 2023, we recorded $1,089 and $2,095, respectively, of capitalized interest expense on our investments in unconsolidated real estate entities in our condensed consolidated balance sheets. i. Revenue and Expenses Rental and Other Property Revenue We apply FASB ASC Topic 842, “Leases” (“ASC 842”) with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue. j. Derivative Instruments We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we, and our affiliates, may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations. In accordance with FASB ASC Topic 815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our condensed consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivatives not designated as hedges, the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether or not the derivative is highly effective in offsetting changes in the designated interest rate risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness. k. Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: • 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. FASB ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value. Given that cash and cash equivalents and restricted cash are short term in nature with limited fair value volatility, the carrying amount is deemed to be a reasonable approximation of fair value and the fair value input is classified as a Level 1 fair value measurement. The fair value input for derivatives is classified as a Level 2 fair value measurement within the fair value hierarchy. The fair value of our unsecured credit facility, term loans, and mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity. There were no transfers between levels in the fair value hierarchy for the six months ended June 30, 2024. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2024 As of December 31, 2023 Financial Instrument Carrying Estimated Carrying Estimated Assets Cash and cash equivalents $ 21,034 $ 21,034 $ 22,852 $ 22,852 Restricted cash 26,364 26,364 27,880 27,880 Derivative assets 38,422 38,422 29,937 29,937 Liabilities Debt: Unsecured Revolver 102,608 103,820 233,362 235,607 Unsecured Term loans 597,852 601,767 597,544 602,589 Secured credit facilities 602,944 548,346 606,099 554,198 Mortgages (1) 949,155 872,930 1,112,404 1,029,028 (1) Includes indebtedness associated with real estate held for sale of $49,598. In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by U.S. GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. As discussed further in Note 3 “Investments in Real Estate”, we recognized an impairment charge of $15,107 during the six months ended June 30, 2024 at our property classified as held for sale as of June 30, 2024. The impairment charge was determined by comparing the fair value of the property to its carrying value. The fair value was based on executed purchase and sale agreements and was determined to be a Level 3 fair value measurement within the fair value hierarchy. l. Deferred Financing Costs Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method. m. Office Leases In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a 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 June 30, 2024 and December 31, 2023, we had $2,085 and $2,408, respectively, of operating lease right-of-use assets operating lease liabilities n. Income Taxes We have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2024 and 2023. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes. o. Restructuring Costs During the three months ended March 31, 2023, we reorganized certain departments in our organization impacting a limited number of employees. The impacted employees were provided severance packages that included cash severance payments and the accelerated vesting of performance share units and restricted stock awards, as applicable. In accordance with ASC 712 “Compensation – Nonretirement Postemployment Benefits”, we recognized the full amount of restructuring costs of $3,213 during the three months ended March 31, 2023, which is presented in the restructuring costs line on the condensed consolidated statement of operations. No restructuring costs were recognized during the three and six months ended June 30, 2024. p. Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our condensed consolidated financial statements. In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional 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 of the guidance and may apply other elections as applicable as additional changes in the market occur. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 has no impact on the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2024. In November 2023, the FASB issued ASU 2023-07, Segment Reporting, Topic 280, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which was issued to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. Early adoption of ASU 2023-07 is permitted and the Company is still evaluating the impact of adopting this ASU. |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of June 30, 2024, our investments in real estate consisted of 110 operating apartment properties (unaudited, including one owned through a consolidated joint venture) that contain an aggregate of 32,685 units (unaudited). The following table summarizes our investments in real estate, excluding one property we classified as held for sale: As of June 30, 2024 As of December 31, 2023 Depreciable Lives Land $ 538,151 $ 540,950 — Building 5,210,283 5,288,956 40 Furniture, fixtures and equipment 469,585 429,306 5-10 Total investments in real estate $ 6,218,019 $ 6,259,212 Accumulated depreciation (667,681) (582,760) Investments in real estate, net $ 5,550,338 $ 5,676,452 As of June 30, 2024, we owned one property, Tapestry Park, with 354 units (unaudited) in Birmingham, Alabama that we classified as held for sale which was subsequently sold on July 17, 2024 for a gross sales price of $70,800. Portfolio Optimization and Deleveraging Strategy On October 26, 2023, our Board of Directors approved a plan, which we refer to as our Portfolio Optimization and Deleveraging Strategy, which targeted the sale of ten properties located in seven markets in order to exit or reduce our presence in these markets while also deleveraging our balance sheet. On April 30, 2024, we sold the tenth and final property under our Portfolio Optimization and Deleveraging Strategy for a gross sales price of $28,500 and proceeds from the sale were used to repay debt. As of June 30, 2024, all ten properties in our Portfolio Optimization and Deleveraging Strategy had been sold for a total gross sales price of $525,300 and proceeds from the sales were used to repay $517,100 of debt. Dispositions The table below summarizes our dispositions for the six months ended June 30, 2024: Property (1) Market Units (unaudited) Sale Date Sale Price Gain on Sale (Loss on Impairment), Net Villas of Kingwood (2) Houston, TX 330 2/13/2024 $ 53,700 $ 62 Belmar Villas (2) Denver, CO 318 2/13/2024 74,300 46 Hearthstone at City Center (2) Denver, CO 360 3/12/2024 74,000 88 Villas at Huffmeister (2) Houston, TX 294 3/25/2024 44,250 (415) Westmont Commons Asheville, NC 252 3/28/2024 49,875 25,856 Reserve at Creekside (2) Chattanooga, TN 192 4/30/2024 28,500 (152) 1,746 $ 324,625 $ 25,485 (1) Included in the Portfolio Optimization and Deleveraging Strategy. (2) The gain on sale (loss on impairment), net is exclusive of an aggregate $32,956 impairment charge recognized during the three months ended December 31, 2023, net of $1,105 of defeasance and debt prepayment gains. The table below summarizes our property held for sale as of June 30, 2024 and subsequently sold. Property Market Units (Unaudited) Sale Date Sale Price Tapestry Park (1) Birmingham, AL 354 7/17/2024 $ 70,800 (1) A loss on impairment of $15,107 was recognized during the three months ended March 31, 2024. |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Real Estate | NOTE 4: Investments in Unconsolidated Real Estate As of June 30, 2024, our investments in unconsolidated real estate entities had aggregate land, building, and construction in progress costs capitalized of $318,110 and aggregate construction debt of $203,789. We do not guarantee any debt, capital payout or other obligations associated with these entities. We recognize earnings or losses from our investments in unconsolidated real estate entities consisting of our proportionate share of the net earnings or losses of the joint ventures. We recognized losses of $850 and $1,679 from equity method investments during the three and six months ended June 30, 2024, respectively, and $1,205 and $1,981, respectively, during the three and six months ended June 30, 2023, and these losses were recorded in loss from investments in unconsolidated real estate entities in our condensed consolidated statements of operations. The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2024 and December 31, 2023: Carrying Value As Of Investments in Unconsolidated Real Estate Entities Location Units (1) (Unaudited) IRT Ownership Interest June 30, 2024 December 31, 2023 Metropolis at Innsbrook (2) Richmond, VA 402 84.8 % $ 17,127 $ 18,028 Views of Music City II (3)/ The Crockett (4) Nashville, TN 408 50.0 % 11,805 11,632 Lakeline Station Austin, TX 378 90.0 % 33,225 32,126 The Mustang Dallas, TX 275 85.0 % 28,190 27,258 Total 1,463 $ 90,347 $ 89,044 (1) Represents the total number of units after development is complete and each property is placed in service. (2) The Metropolis at Innsbrook is an operating property consisting of 402 total units (unaudited). We have a call option that gives us the right to buy the property upon the earlier of the date upon which the property achieves 90% occupancy or October 17, 2025. On June 21, 2024, we entered into an agreement with the developer to list the property for sale upon achieving 85% occupancy. (3) Views of Music City II is an operating property consisting of 209 total units (unaudited). On July 16, 2024, we amended the joint venture agreement to require the property to be listed for sale no later than March 31, 2025, and to provide us with a right of first refusal, on any sale of the property. (4) |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Indebtedness | NOTE 5: Indebtedness The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of June 30, 2024: Consolidated Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Type Weighted Average Contractual Rate (3) Weighted Average Hedged Effective Rate (4) Weighted Unsecured revolver (1) $ 103,478 $ (870) $ — $ 102,608 Floating 6.6% 4.8% 1.6 Unsecured term loans 600,000 (2,148) — 597,852 Floating 6.5% 4.0% 3.0 Secured credit facilities 585,635 (2,108) 19,417 602,944 Fixed 4.2% 4.4% 4.4 Mortgages (2) 935,258 (3,939) 17,836 949,155 Fixed 3.8% 4.0% 3.9 Total Consolidated $ 2,224,371 $ (9,065) $ 37,253 $ 2,252,559 4.8% 4.1% 3.7 (1) The unsecured revolver total capacity is $500,000, of which $103,478 was outstanding as of June 30, 2024. (2) Includes indebtedness secured by real estate held for sale of $49,598. (3) Represents the weighted average of the contractual interest rates in effect as of the three months ended June 30, 2024, without regard to any interest rate swaps or collars. (4) Represents the weighted average effective interest rates for the three months ended June 30, 2024, including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferred financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization. The following table contains summary information concerning our consolidated indebtedness as of June 30, 2024: Scheduled maturities on our consolidated indebtedness outstanding as of June 30, 2024 Consolidated Debt: 2024 2025 2026 2027 2028 Thereafter Unsecured revolver $ — $ — $ 103,478 $ — $ — $ — Unsecured term loans — — 200,000 — 400,000 — Secured credit facilities — 3,065 9,111 10,081 453,937 109,441 Mortgages (1) 17,479 133,855 128,696 13,300 180,852 461,076 Total $ 17,479 $ 136,920 $ 441,285 $ 23,381 $ 1,034,789 $ 570,517 (1) Includes indebtedness secured by real estate held for sale. The following table contains summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of December 31, 2023: Consolidated Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Amount Type Weighted Average Contractual Rate (3) Weighted Average Hedged Effective Rate (4) Weighted Unsecured revolver (1) $ 234,479 $ (1,117) $ — $ 233,362 Floating 6.6% 5.4% 2.1 Unsecured term loans 600,000 (2,456) — 597,544 Floating 6.5% 3.9% 3.5 Secured credit facilities 586,286 (1,949) 21,762 606,099 Floating/Fixed 4.2% 4.6% 4.9 Mortgages (2) 1,094,933 (5,250) 22,721 1,112,404 Fixed 3.8% 4.0% 4.3 Total Consolidated Debt $ 2,515,698 $ (10,772) $ 44,483 $ 2,549,409 4.8% 4.2% 4.0 (1) The unsecured revolver total capacity was $500,000, of which $234,479 was outstanding as of December 31, 2023. (2) Includes indebtedness secured by real estate held for sale of $122,621. (3) Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2023, without regard to any interest rate swaps or collars. (4) Represents the total weighted average effective interest rates for the full year ended December 31, 2023, after giving effect to all components of interest expense including the impact of interest rate swaps and collars, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization. As of June 30, 2024, we were in compliance with all financial covenants contained in our consolidated indebtedness. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 6: Derivative Financial Instruments The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2024 and December 31, 2023: As of June 30, 2024 As of December 31, 2023 Notional Fair Value of Fair Value of Notional Fair Value of Fair Value of Cash flow hedges: Interest rate swaps $ 500,000 $ 26,626 $ — $ 500,000 $ 20,090 $ — Interest rate collars 200,000 7,065 — 250,000 2,700 — Forward interest rate collars 100,000 4,731 — 200,000 7,147 — Total $ 800,000 $ 38,422 — $ 950,000 $ 29,937 $ — Effective interest rate swaps and caps are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is recorded as derivative assets or liabilities on the face of our condensed consolidated balance sheets. For our interest rate swaps and collars that are considered highly effective hedges, we reclassified realized gains of $5,189 and $10,428 to earnings within interest expense for the three and six months ended June 30, 2024, and we expect gains of $17,161 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months. For the three and six months ended June 30, 2023, we reclassified realized gains of $4,749 and $8,126 to earnings within interest expense. |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | NOTE 7: Stockholders' Equity and Noncontrolling Interests Stockholders’ Equity On June 10, 2024, our board of directors declared a dividend of $0.16 per share on our common stock, which was paid on July 19, 2024 to common stockholders of record as of June 28, 2024. On March 11, 2024, our board of directors declared a dividend of $0.16 per share on our common stock, which was paid on April 19, 2024 to common stockholders of record as of March 29, 2024. On May 18, 2022, our board of directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250,000 in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time. During the three and six months ended June 30, 2024, and 2023, we had no repurchases of shares under the Stock Repurchase Program. As of June 30, 2024, we had $250,000 in shares of our common stock remaining authorized for purchase under the Stock Repurchase Program. On June 14, 2023, we replaced our previous shelf registration statement with our new shelf registration statement. On July 28, 2023, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock under our shelf registration statement having an aggregate offering price of up to $450,000 (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. There were no forward sale transactions as of June 30, 2024, and no shares of our common stock were sold under the ATM Program during the three and six months ended June 30, 2024. Noncontrolling Interest During the six months ended June 30, 2024, holders of IROP units exchanged 4,928 units for 4,928 shares of our common stock. As of June 30, 2024, 5,941,643 IROP units held by unaffiliated third parties remain outstanding. On June 10, 2024, our board of directors declared a dividend of $0.16 per IROP unit, which was paid on July 19, 2024 to IROP unit holders of record as of June 28, 2024. On March 11, 2024, our board of directors declared a dividend of $0.16 per IROP unit, which was paid on April 19, 2024 to IROP unit holders of record as of March 29, 2024. |
Equity Compensation Plans
Equity Compensation Plans | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation Plans | NOTE 8: Equity Compensation Plans Long Term Incentive Plan On May 18, 2022, our stockholders approved our 2022 Long Term Incentive Plan (the "2022 Incentive Plan"), which replaced the 2016 Long Term Incentive Plan (the “Prior Plan”, collectively with the 2022 Incentive Plan, the “Incentive Plan”). No new awards may be made under the Prior Plan, although awards outstanding under the Prior Plan will remain subject to the terms of the Prior Plan. The 2022 Incentive Plan provides for grants of equity and equity-based awards to our employees, officers, directors, consultants and other service providers, and such awards may take the form of restricted or unrestricted shares of common stock, non-qualified stock options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”), dividend equivalents and other equity and cash-based awards. A maximum of 8,000,000 shares of our common stock (plus up to an additional 1,280,610 shares of our common stock, to the extent that shares subject to outstanding awards under the Prior Plan are recycled into the 2022 Incentive Plan) may be issued under the 2022 Incentive Plan, subject to customary adjustment for stock splits, reverse stock splits and similar corporate events or transactions affecting shares of our common stock. The restricted shares and RSUs granted under the Incentive Plan generally vest or vested over a two 2024 Number Weighted Average Grant Date Fair Balance, January 1, 416,735 $ 18.70 Granted 382,077 14.95 Vested (218,091) 13.80 Forfeited (29,138) 16.50 Balance, June 30, (1) 551,583 $ 18.16 (1) The outstanding award balances above include 149,334 and 127,989 RSUs as of June 30, 2024 and December 31, 2023, respectively. On February 26, 2024, our compensation committee awarded 218,379 performance share units (“PSUs”) (measured at target) to our executive officers. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, with the actual number of shares issuable ranging between 0% and 150% of the target number of PSUs granted. Half of any PSUs earned will vest, and shares will be issued in respect thereof, immediately following the end 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 additional one-year period of service. During the six months ended June 30, 2024 and 2023, a portion of the RSUs and PSUs granted were issued to employees who are retirement eligible. The fact that the grantees are retirement eligible resulted in immediate recognition of the associated stock-based compensation expense totaling $2,525 and $2,677, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9: Earnings Per Share The following table presents a reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023: For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 10,555 $ 10,988 $ 28,515 $ 19,861 Income allocated to noncontrolling interest (201) (279) (585) (503) Net income allocable to common shares $ 10,354 $ 10,709 $ 27,930 $ 19,358 Weighted-average shares outstanding—Basic 224,793,229 224,422,515 224,710,259 224,325,246 Weighted-average shares outstanding—Diluted 225,418,825 225,073,890 225,403,082 225,088,261 Earnings per share—Basic $ 0.05 $ 0.05 $ 0.12 $ 0.09 Earnings per share—Diluted $ 0.05 $ 0.05 $ 0.12 $ 0.09 Certain IROP units, RSUs and restricted stocks awards were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 6,070,126 and 6,096,634 for the three and six months ended June 30, 2024. Certain IROP units were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 5,946,571 and 5,946,571 for the three and six months ended June 30, 2023, respectively. |
Other Disclosures
Other Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Disclosures | NOTE 10: Other Disclosures Litigation We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, and employment practices are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. See Part II, Item 1, Legal Proceedings , for additional information regarding our legal proceedings. Loss Contingencies We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency is not both probable and reasonably estimable, management does not accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income allocable to common shares | $ 10,354 | $ 10,709 | $ 27,930 | $ 19,358 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited interim condensed consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our condensed consolidated financial position and condensed consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. The Company evaluated subsequent events through the date its financial statements were issued. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic 810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities of three months or less when purchased. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we have not experienced any losses on cash and cash equivalents. |
Restricted Cash | Restricted CashRestricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. |
Investments in Real Estate | Investments in Real Estate Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, necessary approvals are obtained, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn. Allocation of Purchase Price of Acquired Assets In accordance with FASB ASC Topic 805 (“ASC 805”), we evaluate our real estate acquisitions to determine if they should be accounted for as a business or as a group of assets. The evaluation includes an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the acquisition is not a business. The properties we have acquired met the screen test and are accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing. We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to these intangible assets is amortized over the assumed lease up period, typically six months. During the three and six months ended June 30, 2024 and 2023, we did not acquire any in-place leases. For each of the three and six months ended June 30, 2024, we recorded $0, and $66 , respectively, of amortization for intangible assets. For the three and six months ended June 30, 2023, we recorded $0 and $399, respectively, of amortization for intangible assets. For the three and six months ended June 30, 2024, we wrote-off fully amortized intangible assets wrote-off fully amortized intangible assets Business Combinations For properties we acquire or transactions we enter into that are accounted for as business combinations, we apply the acquisition method of accounting under ASC 805, which requires the identification of the acquiror, the determination of the acquisition date, and the recognition and measurement, at fair value, of the assets acquired and liabilities assumed. To the extent that the fair value of net assets acquired differs from the fair value of consideration paid, ASC 805 requires the recognition of goodwill or a gain from a bargain purchase price, if any. Impairment of Long-Lived Assets Management evaluates the recoverability of our investments in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets is not assured. We review our long-lived assets on an ongoing basis and evaluate the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recognized when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows and estimated fair value used in the impairment analysis are determined based on our plans for the respective assets, including the expected hold period, and our assessment of market and economic conditions. The estimates consider matters such as current and historical rental rates and collection levels, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in our plans or views of market and economic conditions may result in adjustments to estimated future cash flows, which could lead to recognition of impairment losses. These losses, as guided by the applicable accounting standards, could be significant. For each of the three and six months ended June 30, 2024, we recorded impairment charges of $0 and $15,107, respectively, on account of real estate classified as held for sale and sold properties. For the three and six months ended June 30, 2023, we did not incur an impairment charge. Depreciation Expense Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements and five Casualty Related Costs Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. Sometimes, a portion of these losses are not fully covered by our insurance policies due to deductibles. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty losses (gains), net when the proceeds are received. During the three and six months ended June 30, 2024, we recorded $465 and $2,767 of net casualty losses, respectively. During the three and six months ended June 30, 2023, we recorded $680 and $831 of net casualty losses, respectively. |
Investments in Real Estate Under Development | Investments in Real Estate Under DevelopmentWe capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate. |
Investments in Unconsolidated Real Estate Entities | Investments in Unconsolidated Real Estate EntitiesWe have entered into joint ventures with unrelated third parties to acquire, develop, own, operate, and manage real estate assets. Our joint ventures are funded with a combination of debt and equity. We will consolidate entities that we control as well as any variable interest entity ("VIE") where we are the primary beneficiary. Under the VIE model, we consolidate an entity when we have the ability to direct the activities of the VIE and the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, we consolidate an entity when we control the entity through ownership of a majority voting interest. We separately analyzed the initial accounting for each of our four investments in unconsolidated real estate entities and concluded that each investment is a voting interest entity. Our equity interest varies for each of our four investments in unconsolidated real estate entities between 50% to 90% but, in each case, we share control of the major decisions that most significantly impact the joint ventures with our partners. Since we do not control the joint venture through our ownership interest, they are accounted for under the equity method of accounting, and are included in investments in unconsolidated real estate entities on the condensed consolidated balance sheets. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses. |
Revenue and Expenses | Revenue and Expenses Rental and Other Property Revenue We apply FASB ASC Topic 842, “Leases” (“ASC 842”) with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms of one year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e. fixed payments including base rent) and non-lease components (i.e. tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease. We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability is not probable, we adjust rental and other property income for the amount of uncollectible revenue. |
Derivative Instruments | Derivative Instruments We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we, and our affiliates, may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations. In accordance with FASB ASC Topic 815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our condensed consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivatives not designated as hedges, the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether or not the derivative is highly effective in offsetting changes in the designated interest rate risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: • 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. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method. |
Office Leases | Office Leases In accordance with FASB ASC Topic 842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a 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 June 30, 2024 and December 31, 2023, we had $2,085 and $2,408, respectively, of operating lease right-of-use assets operating lease liabilities |
Income Taxes | Income Taxes We have elected to be taxed as a REIT. Accordingly, we recorded no income tax expense for the three and six months ended June 30, 2024 and 2023. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our ordinary taxable income to stockholders. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes. |
Restructuring Costs | Restructuring CostsDuring the three months ended March 31, 2023, we reorganized certain departments in our organization impacting a limited number of employees. The impacted employees were provided severance packages that included cash severance payments and the accelerated vesting of performance share units and restricted stock awards, as applicable. In accordance with ASC 712 “Compensation – Nonretirement Postemployment Benefits”, we recognized the full amount of restructuring costs of $3,213 during the three months ended March 31, 2023, which is presented in the restructuring costs line on the condensed consolidated statement of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Below is a brief description of recent accounting pronouncements that could have a material effect on our condensed consolidated financial statements. In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional 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 of the guidance and may apply other elections as applicable as additional changes in the market occur. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 has no impact on the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2024. In November 2023, the FASB issued ASU 2023-07, Segment Reporting, Topic 280, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) which was issued to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. Early adoption of ASU 2023-07 is permitted and the Company is still evaluating the impact of adopting this ASU. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Carrying Amount and Fair Value of Financial Instrument | The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated: As of June 30, 2024 As of December 31, 2023 Financial Instrument Carrying Estimated Carrying Estimated Assets Cash and cash equivalents $ 21,034 $ 21,034 $ 22,852 $ 22,852 Restricted cash 26,364 26,364 27,880 27,880 Derivative assets 38,422 38,422 29,937 29,937 Liabilities Debt: Unsecured Revolver 102,608 103,820 233,362 235,607 Unsecured Term loans 597,852 601,767 597,544 602,589 Secured credit facilities 602,944 548,346 606,099 554,198 Mortgages (1) 949,155 872,930 1,112,404 1,029,028 (1) Includes indebtedness associated with real estate held for sale of $49,598. |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Summary of Investments in Real Estate | The following table summarizes our investments in real estate, excluding one property we classified as held for sale: As of June 30, 2024 As of December 31, 2023 Depreciable Lives Land $ 538,151 $ 540,950 — Building 5,210,283 5,288,956 40 Furniture, fixtures and equipment 469,585 429,306 5-10 Total investments in real estate $ 6,218,019 $ 6,259,212 Accumulated depreciation (667,681) (582,760) Investments in real estate, net $ 5,550,338 $ 5,676,452 |
Summary of Held for Sale Property | The table below summarizes our dispositions for the six months ended June 30, 2024: Property (1) Market Units (unaudited) Sale Date Sale Price Gain on Sale (Loss on Impairment), Net Villas of Kingwood (2) Houston, TX 330 2/13/2024 $ 53,700 $ 62 Belmar Villas (2) Denver, CO 318 2/13/2024 74,300 46 Hearthstone at City Center (2) Denver, CO 360 3/12/2024 74,000 88 Villas at Huffmeister (2) Houston, TX 294 3/25/2024 44,250 (415) Westmont Commons Asheville, NC 252 3/28/2024 49,875 25,856 Reserve at Creekside (2) Chattanooga, TN 192 4/30/2024 28,500 (152) 1,746 $ 324,625 $ 25,485 (1) Included in the Portfolio Optimization and Deleveraging Strategy. (2) The gain on sale (loss on impairment), net is exclusive of an aggregate $32,956 impairment charge recognized during the three months ended December 31, 2023, net of $1,105 of defeasance and debt prepayment gains. The table below summarizes our property held for sale as of June 30, 2024 and subsequently sold. Property Market Units (Unaudited) Sale Date Sale Price Tapestry Park (1) Birmingham, AL 354 7/17/2024 $ 70,800 (1) A loss on impairment of $15,107 was recognized during the three months ended March 31, 2024. |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments in Unconsolidated Real Estate | The following table summarizes our investments in unconsolidated real estate entities as of June 30, 2024 and December 31, 2023: Carrying Value As Of Investments in Unconsolidated Real Estate Entities Location Units (1) (Unaudited) IRT Ownership Interest June 30, 2024 December 31, 2023 Metropolis at Innsbrook (2) Richmond, VA 402 84.8 % $ 17,127 $ 18,028 Views of Music City II (3)/ The Crockett (4) Nashville, TN 408 50.0 % 11,805 11,632 Lakeline Station Austin, TX 378 90.0 % 33,225 32,126 The Mustang Dallas, TX 275 85.0 % 28,190 27,258 Total 1,463 $ 90,347 $ 89,044 (1) Represents the total number of units after development is complete and each property is placed in service. (2) The Metropolis at Innsbrook is an operating property consisting of 402 total units (unaudited). We have a call option that gives us the right to buy the property upon the earlier of the date upon which the property achieves 90% occupancy or October 17, 2025. On June 21, 2024, we entered into an agreement with the developer to list the property for sale upon achieving 85% occupancy. (3) Views of Music City II is an operating property consisting of 209 total units (unaudited). On July 16, 2024, we amended the joint venture agreement to require the property to be listed for sale no later than March 31, 2025, and to provide us with a right of first refusal, on any sale of the property. (4) |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Information Concerning Indebtedness | The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of June 30, 2024: Consolidated Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Type Weighted Average Contractual Rate (3) Weighted Average Hedged Effective Rate (4) Weighted Unsecured revolver (1) $ 103,478 $ (870) $ — $ 102,608 Floating 6.6% 4.8% 1.6 Unsecured term loans 600,000 (2,148) — 597,852 Floating 6.5% 4.0% 3.0 Secured credit facilities 585,635 (2,108) 19,417 602,944 Fixed 4.2% 4.4% 4.4 Mortgages (2) 935,258 (3,939) 17,836 949,155 Fixed 3.8% 4.0% 3.9 Total Consolidated $ 2,224,371 $ (9,065) $ 37,253 $ 2,252,559 4.8% 4.1% 3.7 (1) The unsecured revolver total capacity is $500,000, of which $103,478 was outstanding as of June 30, 2024. (2) Includes indebtedness secured by real estate held for sale of $49,598. (3) Represents the weighted average of the contractual interest rates in effect as of the three months ended June 30, 2024, without regard to any interest rate swaps or collars. (4) Represents the weighted average effective interest rates for the three months ended June 30, 2024, including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferred financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization. The following table contains summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of December 31, 2023: Consolidated Debt: Outstanding Principal Unamortized Debt Issuance Costs Unamortized Loan (Discount)/Premiums Carrying Amount Type Weighted Average Contractual Rate (3) Weighted Average Hedged Effective Rate (4) Weighted Unsecured revolver (1) $ 234,479 $ (1,117) $ — $ 233,362 Floating 6.6% 5.4% 2.1 Unsecured term loans 600,000 (2,456) — 597,544 Floating 6.5% 3.9% 3.5 Secured credit facilities 586,286 (1,949) 21,762 606,099 Floating/Fixed 4.2% 4.6% 4.9 Mortgages (2) 1,094,933 (5,250) 22,721 1,112,404 Fixed 3.8% 4.0% 4.3 Total Consolidated Debt $ 2,515,698 $ (10,772) $ 44,483 $ 2,549,409 4.8% 4.2% 4.0 (1) The unsecured revolver total capacity was $500,000, of which $234,479 was outstanding as of December 31, 2023. (2) Includes indebtedness secured by real estate held for sale of $122,621. (3) Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2023, without regard to any interest rate swaps or collars. (4) Represents the total weighted average effective interest rates for the full year ended December 31, 2023, after giving effect to all components of interest expense including the impact of interest rate swaps and collars, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization. |
Summary of Maturities of Long-term Debt | The following table contains summary information concerning our consolidated indebtedness as of June 30, 2024: Scheduled maturities on our consolidated indebtedness outstanding as of June 30, 2024 Consolidated Debt: 2024 2025 2026 2027 2028 Thereafter Unsecured revolver $ — $ — $ 103,478 $ — $ — $ — Unsecured term loans — — 200,000 — 400,000 — Secured credit facilities — 3,065 9,111 10,081 453,937 109,441 Mortgages (1) 17,479 133,855 128,696 13,300 180,852 461,076 Total $ 17,479 $ 136,920 $ 441,285 $ 23,381 $ 1,034,789 $ 570,517 (1) Includes indebtedness secured by real estate held for sale. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Amount and Estimated Net Fair Values of Our Derivative Instruments | The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2024 and December 31, 2023: As of June 30, 2024 As of December 31, 2023 Notional Fair Value of Fair Value of Notional Fair Value of Fair Value of Cash flow hedges: Interest rate swaps $ 500,000 $ 26,626 $ — $ 500,000 $ 20,090 $ — Interest rate collars 200,000 7,065 — 250,000 2,700 — Forward interest rate collars 100,000 4,731 — 200,000 7,147 — Total $ 800,000 $ 38,422 — $ 950,000 $ 29,937 $ — |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Common Share Awards and RSU of Incentive Plan | A summary of restricted and unrestricted common share awards and RSU activity is presented below. 2024 Number Weighted Average Grant Date Fair Balance, January 1, 416,735 $ 18.70 Granted 382,077 14.95 Vested (218,091) 13.80 Forfeited (29,138) 16.50 Balance, June 30, (1) 551,583 $ 18.16 (1) The outstanding award balances above include 149,334 and 127,989 RSUs as of June 30, 2024 and December 31, 2023, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic and Diluted Earnings (Loss) Per Share | The following table presents a reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023: For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 10,555 $ 10,988 $ 28,515 $ 19,861 Income allocated to noncontrolling interest (201) (279) (585) (503) Net income allocable to common shares $ 10,354 $ 10,709 $ 27,930 $ 19,358 Weighted-average shares outstanding—Basic 224,793,229 224,422,515 224,710,259 224,325,246 Weighted-average shares outstanding—Diluted 225,418,825 225,073,890 225,403,082 225,088,261 Earnings per share—Basic $ 0.05 $ 0.05 $ 0.12 $ 0.09 Earnings per share—Diluted $ 0.05 $ 0.05 $ 0.12 $ 0.09 |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2024 jointVenture property unit | |
Real Estate Properties [Line Items] | |
Number of multifamily properties owned | property | 110 |
Number of unconsolidated joint venture | jointVenture | 1 |
Number of units located with multifamily properties | 32,685 |
Number of joint ventures | jointVenture | 4 |
Number of developing multifamily apartment community | jointVenture | 2 |
Number of units in developing multifamily apartment community | 810 |
Number of operating property | property | 2 |
Number of units in operating property | 653 |
Denver Colorado | |
Real Estate Properties [Line Items] | |
Number of multifamily properties owned | property | 2 |
Number of units located with multifamily properties | 621 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) investment property | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) property | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) investment property | Jun. 30, 2023 USD ($) | |
Real Estate Properties [Line Items] | |||||||
Restricted cash | $ 26,364,000 | $ 27,880,000 | $ 26,364,000 | ||||
Acquisition of above-market in-place leases, amortization period | 6 months | 6 months | |||||
Amortization expense for intangible assets | $ 0 | $ 0 | $ 66,000 | $ 399,000 | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Depreciation and amortization expense | Depreciation and amortization expense | Depreciation and amortization expense | Depreciation and amortization expense | |||
Write-off of fully amortized intangible assets | $ 0 | $ 0 | $ 398,000 | $ 1,099,000 | |||
Impairment charges | 0 | 0 | 15,107,000 | 0 | |||
Depreciation expense | 53,757,000 | 53,700,000 | 107,080,000 | 106,587,000 | |||
Fully depreciated fixed assets, wrote-off | 8,328,000 | 5,114,000 | 15,604,000 | 8,033,000 | |||
Net casualty losses | 465,000 | 680,000 | 2,767,000 | 831,000 | |||
Interest costs capitalized | 1,771,000 | 1,715,000 | 3,341,000 | 3,168,000 | |||
Investments in real estate under development | $ 115,196,000 | 98,365,000 | $ 115,196,000 | ||||
Number of investment in unconsolidated real estate entities | investment | 4 | 4 | |||||
Impairment of real estate | $ 15,107,000 | 32,956,000 | $ 15,107,000 | ||||
Right-of-use assets | $ 2,085,000 | 2,408,000 | $ 2,085,000 | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |||||
Lease liability | $ 2,355,000 | 2,701,000 | $ 2,355,000 | ||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |||||
Total operating lease expense | $ 189,000 | 202,000 | $ 409,000 | 412,000 | |||
Income tax expense | 0 | 0 | 0 | 0 | |||
Restructuring costs | 0 | 0 | $ 3,213,000 | 0 | 3,213,000 | ||
Investments In Unconsolidated Real Estate Entities | |||||||
Real Estate Properties [Line Items] | |||||||
Interest costs capitalized | 1,190,000 | $ 1,089,000 | 2,462,000 | $ 2,095,000 | |||
Real Estate Investment | |||||||
Real Estate Properties [Line Items] | |||||||
Investments in real estate under development | $ 87,061,000 | $ 77,520,000 | $ 87,061,000 | ||||
Denver Colorado | |||||||
Real Estate Properties [Line Items] | |||||||
Number of multifamily properties owned | property | 2 | 2 | 2 | ||||
Nashville, TN | Views of Music City / The Crockett | |||||||
Real Estate Properties [Line Items] | |||||||
IRT Ownership Interest | 50% | 50% | |||||
Austin, TX | Lakeline Station | |||||||
Real Estate Properties [Line Items] | |||||||
IRT Ownership Interest | 90% | 90% | |||||
Building and Building Improvements | |||||||
Real Estate Properties [Line Items] | |||||||
Depreciable Lives (In years) | 40 years | 40 years | |||||
Minimum | Equipment and Fixtures | |||||||
Real Estate Properties [Line Items] | |||||||
Depreciable Lives (In years) | 5 years | 5 years | |||||
Maximum | |||||||
Real Estate Properties [Line Items] | |||||||
Operating lease term | 10 years | 10 years | |||||
Maximum | Equipment and Fixtures | |||||||
Real Estate Properties [Line Items] | |||||||
Depreciable Lives (In years) | 10 years | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Assets | |||
Cash and cash equivalents, Carrying Amount | $ 21,034 | $ 22,852 | $ 14,349 |
Restricted cash, Carrying Amount | 26,364 | 27,880 | |
Derivative assets, Carrying Amount | 38,422 | 29,937 | |
Cash and cash equivalents, Estimated Fair Value | 21,034 | 22,852 | |
Restricted cash, Estimated Fair Value | 26,364 | 27,880 | |
Derivative assets, Estimated Fair Value | 38,422 | 29,937 | |
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 2,252,559 | 2,549,409 | |
Indebtedness associated with real estate held for sale | 49,598 | 122,621 | |
Unsecured revolver | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 102,608 | 233,362 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 103,820 | 235,607 | |
Unsecured term loans | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 597,852 | 597,544 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 601,767 | 602,589 | |
Secured credit facilities | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 602,944 | 606,099 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | 548,346 | 554,198 | |
Mortgages | |||
Liabilities | |||
Indebtedness, net of unamortized discount and deferred financing costs, Carrying Amount | 949,155 | 1,112,404 | |
Indebtedness, net of unamortized discount and deferred financing costs, Estimated Fair Value | $ 872,930 | $ 1,029,028 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) $ in Thousands | 6 Months Ended | |||
Jul. 17, 2024 USD ($) | Apr. 30, 2024 USD ($) | Oct. 26, 2023 property market | Jun. 30, 2024 USD ($) unit property | |
Real Estate Properties [Line Items] | ||||
Number of multifamily properties owned | 110 | |||
Number of properties owned by joint ventures | 1 | |||
Number of units located with multifamily properties | unit | 32,685 | |||
Number of properties targeted for sale | 10 | 10 | ||
Number of markets | market | 7 | |||
Total gross sales price | $ | $ 28,500 | $ 525,300 | ||
Repayments of debt | $ | $ 517,100 | |||
Tapestry Park | ||||
Real Estate Properties [Line Items] | ||||
Number of units located with multifamily properties | 354 | |||
Number of real estate properties | 1 | |||
Subsequent Event | Tapestry Park | ||||
Real Estate Properties [Line Items] | ||||
Total gross sales price | $ | $ 70,800 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Investments in Real Estate (Detail) $ in Thousands | Jun. 30, 2024 USD ($) property | Dec. 31, 2023 USD ($) |
Real Estate Properties [Line Items] | ||
Land | $ 538,151 | $ 540,950 |
Building | 5,210,283 | 5,288,956 |
Furniture, fixtures and equipment | 469,585 | 429,306 |
Total investments in real estate | 6,218,019 | 6,259,212 |
Accumulated depreciation | (667,681) | (582,760) |
Investments in real estate, net | $ 5,550,338 | $ 5,676,452 |
Discontinued Operations, Held-for-Sale | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | property | 1 | |
Building | ||
Real Estate Properties [Line Items] | ||
Depreciable Lives (In years) | 40 years | |
Furniture, fixtures and equipment | Minimum | ||
Real Estate Properties [Line Items] | ||
Depreciable Lives (In years) | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Real Estate Properties [Line Items] | ||
Depreciable Lives (In years) | 10 years |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Held for Sale Property (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jul. 17, 2024 USD ($) housingUnit | Apr. 30, 2024 USD ($) housingUnit | Mar. 28, 2024 USD ($) housingUnit | Mar. 25, 2024 USD ($) housingUnit | Mar. 12, 2024 USD ($) housingUnit | Feb. 13, 2024 USD ($) housingUnit | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) housingUnit | |
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 1,746 | ||||||||
Sale Price | $ 324,625 | ||||||||
Gain on Sale (Loss on Impairment), Net | 25,485 | ||||||||
Impairment of real estate | $ 15,107 | $ 32,956 | $ 15,107 | ||||||
Gain related to property includes defeasance costs | $ 1,105 | ||||||||
Villas of Kingwood | |||||||||
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 330 | ||||||||
Sale Price | $ 53,700 | ||||||||
Gain on Sale (Loss on Impairment), Net | $ 62 | ||||||||
Belmar Villas | |||||||||
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 318 | ||||||||
Sale Price | $ 74,300 | ||||||||
Gain on Sale (Loss on Impairment), Net | $ 46 | ||||||||
Hearthstone at City Center | |||||||||
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 360 | ||||||||
Sale Price | $ 74,000 | ||||||||
Gain on Sale (Loss on Impairment), Net | $ 88 | ||||||||
Villas at Huffmeister | |||||||||
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 294 | ||||||||
Sale Price | $ 44,250 | ||||||||
Gain on Sale (Loss on Impairment), Net | $ (415) | ||||||||
Westmont Commons | |||||||||
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 252 | ||||||||
Sale Price | $ 49,875 | ||||||||
Gain on Sale (Loss on Impairment), Net | $ 25,856 | ||||||||
Reserve at Creekside | |||||||||
Real Estate Properties [Line Items] | |||||||||
Units (unaudited) | housingUnit | 192 | ||||||||
Sale Price | $ 28,500 | ||||||||
Gain on Sale (Loss on Impairment), Net | $ (152) | ||||||||
Tapestry Park | Subsequent Event | |||||||||
Real Estate Properties [Line Items] | |||||||||
Sale Price | $ 70,800 | ||||||||
Units (unaudited) | housingUnit | 354 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Aggregate land and construction in progress costs capitalized | $ 318,110 | $ 318,110 | ||
Aggregate construction debt | 203,789 | 203,789 | ||
Equity in loss from investments in unconsolidated real estate entities | $ 850 | $ 1,205 | $ 1,679 | $ 1,981 |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate - Summary of Investments In Unconsolidated Real Estate Entities (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 USD ($) unit | Jun. 21, 2024 | Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Units | 1,463 | ||
Investments in unconsolidated real estate entities | $ | $ 90,347 | $ 89,044 | |
Metropolis at Innsbrook | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of units placed in service | 402 | ||
Required occupancy for call option | 90% | ||
Required occupancy to sell property | 85% | ||
Metropolis at Innsbrook | Richmond, VA | |||
Schedule of Equity Method Investments [Line Items] | |||
Units | 402 | ||
IRT Ownership Interest | 84.80% | ||
Investments in unconsolidated real estate entities | $ | $ 17,127 | 18,028 | |
Views of Music City / The Crockett | Nashville, TN | |||
Schedule of Equity Method Investments [Line Items] | |||
Units | 408 | ||
IRT Ownership Interest | 50% | ||
Investments in unconsolidated real estate entities | $ | $ 11,805 | 11,632 | |
Lakeline Station | Austin, TX | |||
Schedule of Equity Method Investments [Line Items] | |||
Units | 378 | ||
IRT Ownership Interest | 90% | ||
Investments in unconsolidated real estate entities | $ | $ 33,225 | 32,126 | |
The Mustang | Dallas, TX | |||
Schedule of Equity Method Investments [Line Items] | |||
Units | 275 | ||
IRT Ownership Interest | 85% | ||
Investments in unconsolidated real estate entities | $ | $ 28,190 | $ 27,258 | |
Views of Music City II | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of remaining units placed in service | 209 | ||
Crockett | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of remaining units placed in service | 199 |
Indebtedness - Summary of Infor
Indebtedness - Summary of Information Concerning Indebtedness (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 2,224,371,000 | $ 2,515,698,000 |
Unamortized Debt Issuance Costs | (9,065,000) | (10,772,000) |
Unamortized Loan (Discount)/Premiums | 37,253,000 | 44,483,000 |
Carrying Amount | $ 2,252,559,000 | $ 2,549,409,000 |
Weighted Average Contractual Rate | 4.80% | 4.80% |
Weighted Average Hedged Effective Rate | 4.10% | 4.20% |
Weighted Average Maturity (in years) | 3 years 8 months 12 days | 4 years |
Indebtedness associated with real estate held for sale | $ 49,598,000 | $ 122,621,000 |
Unsecured revolver | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 103,478,000 | 234,479,000 |
Unamortized Debt Issuance Costs | (870,000) | (1,117,000) |
Unamortized Loan (Discount)/Premiums | 0 | 0 |
Carrying Amount | $ 102,608,000 | $ 233,362,000 |
Weighted Average Contractual Rate | 6.60% | 6.60% |
Weighted Average Hedged Effective Rate | 4.80% | 5.40% |
Weighted Average Maturity (in years) | 1 year 7 months 6 days | 2 years 1 month 6 days |
Credit facility borrowing capacity | $ 500,000,000 | $ 500,000,000 |
Unsecured term loans | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 600,000,000 | 600,000,000 |
Unamortized Debt Issuance Costs | (2,148,000) | (2,456,000) |
Unamortized Loan (Discount)/Premiums | 0 | 0 |
Carrying Amount | $ 597,852,000 | $ 597,544,000 |
Weighted Average Contractual Rate | 6.50% | 6.50% |
Weighted Average Hedged Effective Rate | 4% | 3.90% |
Weighted Average Maturity (in years) | 3 years | 3 years 6 months |
Secured credit facilities | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 585,635,000 | $ 586,286,000 |
Unamortized Debt Issuance Costs | (2,108,000) | (1,949,000) |
Unamortized Loan (Discount)/Premiums | 19,417,000 | 21,762,000 |
Carrying Amount | $ 602,944,000 | $ 606,099,000 |
Weighted Average Contractual Rate | 4.20% | 4.20% |
Weighted Average Hedged Effective Rate | 4.40% | 4.60% |
Weighted Average Maturity (in years) | 4 years 4 months 24 days | 4 years 10 months 24 days |
Mortgages | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 935,258,000 | $ 1,094,933,000 |
Unamortized Debt Issuance Costs | (3,939,000) | (5,250,000) |
Unamortized Loan (Discount)/Premiums | 17,836,000 | 22,721,000 |
Carrying Amount | $ 949,155,000 | $ 1,112,404,000 |
Weighted Average Contractual Rate | 3.80% | 3.80% |
Weighted Average Hedged Effective Rate | 4% | 4% |
Weighted Average Maturity (in years) | 3 years 10 months 24 days | 4 years 3 months 18 days |
Indebtedness - Summary of Matur
Indebtedness - Summary of Maturity of Indebtedness (Detail) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 17,479 |
2025 | 136,920 |
2026 | 441,285 |
2027 | 23,381 |
2028 | 1,034,789 |
Thereafter | 570,517 |
Mortgages | |
Debt Instrument [Line Items] | |
2024 | 17,479 |
2025 | 133,855 |
2026 | 128,696 |
2027 | 13,300 |
2028 | 180,852 |
Thereafter | 461,076 |
Unsecured revolver | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 103,478 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Unsecured term loans | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 200,000 |
2027 | 0 |
2028 | 400,000 |
Thereafter | 0 |
Secured credit facilities | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 3,065 |
2026 | 9,111 |
2027 | 10,081 |
2028 | 453,937 |
Thereafter | $ 109,441 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Aggregate Amount and Estimated Net Fair Values of Derivative Instruments (Detail) - Cash Flow Hedge - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments Gain Loss [Line Items] | ||
Notional | $ 800,000 | $ 950,000 |
Fair Value of Assets | 38,422 | 29,937 |
Fair Value of Liabilities | 0 | 0 |
Interest rate swaps | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 500,000 | 500,000 |
Fair Value of Assets | 26,626 | 20,090 |
Fair Value of Liabilities | 0 | 0 |
Interest rate collars | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 200,000 | 250,000 |
Fair Value of Assets | 7,065 | 2,700 |
Fair Value of Liabilities | 0 | 0 |
Forward interest rate collars | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional | 100,000 | 200,000 |
Fair Value of Assets | 4,731 | 7,147 |
Fair Value of Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - Interest Rate Swap and Collars - Cash Flow Hedge - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Realized gains on interest rate hedges reclassified to earnings | $ 5,189 | $ 4,749 | $ 10,428 | $ 8,126 |
Amount expect to be reclassified out of accumulated other comprehensive income into earnings in future | $ (17,161) | $ (17,161) |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 10, 2024 | Mar. 11, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jul. 28, 2023 | May 18, 2022 | |
Class Of Stock [Line Items] | ||||||||||
Dividend declared per share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.14 | ||||||
Stock repurchase program, authorized amount | $ 250,000,000 | |||||||||
Number of shares repurchased (in shares) | 0 | 0 | 0 | 0 | ||||||
Amount remaining authorized for purchase under the stock repurchase program | $ 250,000,000 | $ 250,000,000 | ||||||||
At-the-market agreement to sell common shares, maximum offer price | $ 450,000,000 | |||||||||
Number of IROP unites exchanged (in shares) | 4,928 | |||||||||
IROP Units outstanding (in shares) | 5,941,643 | 5,941,643 | ||||||||
Common Shares | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Conversion of noncontrolling interest to common shares (in shares) | 4,928 | 144,600 | 4,928 | |||||||
ATM Program | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock, capital shares reserved for future issuance (in shares) | 0 | 0 | ||||||||
Dividend Declared | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Dividend declared per share (in dollars per share) | $ 0.16 | $ 0.16 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 26, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares authorized | 8,000,000 | ||
Additional shares authorized | 1,280,610 | ||
Performance Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Performance Share Units | Executive Officers | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares awarded (in shares) | 218,379 | ||
Restricted Stock and Performance Shares Units | Employee | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock compensation expense | $ 2,525 | $ 2,677 | |
Minimum | Performance Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award number share issuable percentage | 0% | ||
Maximum | Performance Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award number share issuable percentage | 150% | ||
Long Term Incentive Plan | Performance Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards performance period | 3 years | ||
Awards service period | 1 year | ||
Long Term Incentive Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards vesting period | 2 years | ||
Long Term Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards vesting period | 4 years |
Equity Compensation Plans - Sum
Equity Compensation Plans - Summary of Restricted Common Share Awards and RSU of Incentive Plan (Detail) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock And RSUs | |
Number of Shares | |
Number of Shares, beginning balance (in shares) | 416,735 |
Granted (in shares) | 382,077 |
Vested (in shares) | (218,091) |
Forfeited (in shares) | (29,138) |
Number of Shares, ending balance (in shares) | 551,583 |
Weighted Average Grant Date Fair Value Per Share | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 18.70 |
Granted (in dollars per share) | $ / shares | 14.95 |
Vested (in dollars per share) | $ / shares | 13.80 |
Forfeited (in dollars per share) | $ / shares | 16.50 |
Balance at end of period (in dollars per share) | $ / shares | $ 18.16 |
RSUs | |
Number of Shares | |
Number of Shares, beginning balance (in shares) | 127,989 |
Number of Shares, ending balance (in shares) | 149,334 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 10,555 | $ 17,961 | $ 10,988 | $ 8,872 | $ 28,515 | $ 19,861 |
Income allocated to noncontrolling interest | (201) | (279) | (585) | (503) | ||
Net income allocable to common shares | $ 10,354 | $ 10,709 | $ 27,930 | $ 19,358 | ||
Weighted-average shares outstanding—Basic (in shares) | 224,793,229 | 224,422,515 | 224,710,259 | 224,325,246 | ||
Weighted-average shares outstanding—Diluted (in shares) | 225,418,825 | 225,073,890 | 225,403,082 | 225,088,261 | ||
Earnings per share—Basic (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.12 | $ 0.09 | ||
Earnings per share—Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.12 | $ 0.09 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings (loss) per share, amount | 6,070,126 | 5,946,571 | 6,096,634 | 5,946,571 |