Independence Realty Trust Reports Q2 2025 Revenue Growth but Declining Net Income

Independence Realty Trust, Inc. (IRT) reported its financial results for the second quarter of 2025, revealing a total revenue of $162.2 million, a 2.4% increase from $158.4 million in the same period last year. The company's rental and other property revenue rose to $161.9 million, up from $158.1 million, driven by a combination of a 1.0% increase in same-store rental revenue and a significant 19.9% increase in non-same-store revenue, attributed to recent acquisitions. However, net income for the quarter decreased to $8.2 million, or $0.03 per share, compared to $10.6 million, or $0.05 per share, in the prior year, reflecting a 22.6% decline.

For the first half of 2025, IRT's total revenue reached $323.4 million, a modest increase from $318.9 million in the same period of 2024. The company reported a net income of $16.7 million, down from $28.5 million in the previous year, resulting in earnings per share of $0.07, compared to $0.12 in 2024. The decline in profitability was attributed to increased depreciation and amortization expenses, which rose to $118.5 million from $107.9 million, as well as higher interest expenses driven by rising effective interest rates.

Operationally, IRT owned and managed 113 multifamily properties as of June 30, 2025, comprising 33,175 units across various non-gateway U.S. markets. The company reported an average occupancy rate of 95.2% for its consolidated portfolio, with average effective monthly rent per unit increasing to $1,582, up from $1,554 in the prior year. The company also completed renovations on 454 units during the quarter, contributing to its value-add strategy aimed at enhancing property performance and rental income.

Strategically, IRT has been active in acquisitions and dispositions. In February 2025, the company acquired a 280-unit multifamily community in Indianapolis for $59.5 million, and on July 31, 2025, it purchased a 240-unit property in Orlando for $60.25 million. Additionally, IRT sold a multifamily community in Birmingham, Alabama, for $111 million in February 2025, which is part of its capital recycling strategy. As of June 30, 2025, the company had three properties classified as held for sale, with expectations to close these transactions before year-end.

Looking ahead, IRT remains focused on maximizing stockholder value through diligent portfolio management and strategic acquisitions. The company plans to utilize proceeds from its forward equity sales and existing financing arrangements to fund future acquisitions. Despite the challenges posed by market conditions, including rising interest rates and inflation, IRT aims to maintain its operational performance and continue its growth trajectory in the multifamily housing sector.