One-glance verdict
Overvalued
$3.74 our estimate vs market $15.00
Wall Street consensus: $18.46 (393.9% higher than our fair-value estimate)
301% above our estimate, beyond the bull case
Fundamentals snapshot
Independence Realty Trust, Inc.
IRT · NYQ · Real Estate · REIT - Residential
Current price
$15.00
52-week range
$14.33 - $17.79
Market cap
$3.63B
Balance sheet
Stretched
1.53x Concerning
Net debt $2.36B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.1% last year.
- Reward Returns 1.8% on equity, ahead of 16% of its peers.
- Risk Forward P/E (187.5x) is higher than trailing (57.7x) - earnings are expected to drop.
- Risk Insider ownership is only 0.7% (peer median: 0.7%).
What this company does
Independence Realty Trust, Inc.
Independence Realty Trust (IRT) is like a landlord that owns and manages apartment buildings in areas around the United States that aren't the biggest, most expensive cities. They focus on buying properties near jobs and good neighborhoods because that helps them make money from rent, which is their main income source. This matters because steady rental income is how they can pay their bills and hopefully give money back to the people who own pieces of the company, called shareholders.
How the company got here
Independence Realty Trust (IRT) was founded in 2009 as a company focused on owning and operating apartment buildings. It went public on the New York Stock Exchange in 2013, which allowed it to raise money from a wider range of investors. A significant change for IRT was when it brought its management and operations in-house, moving away from an external advisory model. This shift aligned IRT more closely with how many other publicly traded real estate companies operate. In 2021, IRT combined with another real estate investment trust, Steadfast Apartment REIT, which led to a greater focus on growing revenue from its existing properties and managing its finances carefully, rather than just buying more properties.
What it actually does
Independence Realty Trust is a real estate company that owns and manages apartment buildings, which are also called multifamily communities. Think of them as large apartment complexes where people rent their homes. IRT's main source of income comes from collecting rent from its tenants. They also generate revenue from things like utility reimbursements and other fees residents might pay. The company focuses on owning properties in areas that are growing and have good amenities, like shopping and schools, rather than in the most expensive, major city centers.
Multifamily Apartment Communities
This is the core business of Independence Realty Trust. The company acquires, owns, and manages apartment buildings across the United States, primarily in markets that are not considered major, expensive coastal cities (often referred to as 'non-gateway' markets). These markets are typically in the Sun Belt and Midwest regions, chosen for their job growth and affordability. IRT aims to provide attractive returns to its shareholders by managing its properties well and ensuring they perform strongly.
What management is betting on now
Independence Realty Trust is focusing on growing its business by acquiring new properties in markets with strong economic growth and job creation. They are also working to make their operations more sustainable and are using technology to improve how they manage their properties and enhance the experience for residents. Building strong relationships with tenants and the local communities where they operate is also a key priority for the company.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$172.11M
Net income
$25.15M
Diluted EPS
0.11
Operating cash flow
$81.19M
Free cash flow
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Sources
Revenue
$167.24M
Net income
$3.39M
Diluted EPS
0.01
Operating cash flow
$80.92M
Free cash flow
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Sources
Revenue
$165.32M
Net income
$-68.00K
Diluted EPS
0.00
Operating cash flow
$55.32M
Free cash flow
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Sources
Revenue
$167.13M
Net income
$33.27M
Diluted EPS
0.14
Operating cash flow
$60.19M
Free cash flow
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Sources
Revenue
$167.14M
Net income
$6.89M
Diluted EPS
0.03
Operating cash flow
$79.34M
Free cash flow
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Sources
Revenue
$162.19M
Net income
$8.05M
Diluted EPS
0.03
Operating cash flow
$82.25M
Free cash flow
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Sources
Revenue
$161.24M
Net income
$8.35M
Diluted EPS
0.04
Operating cash flow
$60.37M
Free cash flow
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Sources
Revenue
$160.96M
Net income
$-1.00M
Diluted EPS
0.00
Operating cash flow
$63.43M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $3.74 vs current price $15.00
Wall Street consensus is the average analyst price target: $18.46 (393.9% higher than our fair-value estimate).
Our most-likely fair value is $3.74 a share — about 75.1% below today's price of $15.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $2.4B. Interest coverage 1.5x.
Net debt
$2.36B
Interest coverage
1.53x
Independence Realty Trust, Inc.'s profit covers its interest bill about 1.5 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
IRT
BASELINE
Independence Realty Trust, Inc.
Total debt $2.40B Interest coverage 1.53x This is the baseline the peer rows are being compared against.
Total debt $4.25B Interest coverage 2.09x +36% vs IRT Carries about 1.4x more debt cushion than IRT.
Total debt $5.86B Interest coverage 3.34x +118% vs IRT Carries about 2.2x more debt cushion than IRT.
Total debt $5.94B Interest coverage 1.64x +7% vs IRT Has roughly the same debt cushion as IRT.
Total debt $6.64B Interest coverage 2.33x +52% vs IRT Carries about 1.5x more debt cushion than IRT.
Total debt $1.59B Interest coverage 0.34x -78% vs IRT Carries about 4.5x less debt cushion than IRT.
What you should know
The case for and against IRT
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.1% last year.
-
Returns 1.8% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (187.5x) is higher than trailing (57.7x) - earnings are expected to drop.
-
Insider ownership is only 0.7% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
57.69x
Forward P/E
187.50x
P/B
1.05x
P/S
5.40x
EV/EBITDA
16.27x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
60.1%
Operating margin
16.7%
Net margin
9.2%
ROE
1.8%
ROA
1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
0.51x
Quick ratio
0.17x
Total debt
$2.40B
Total cash
$39.70M
Growth
How the business has been compounding
Revenue TTM
$671.80M
Revenue 5Y CAGR
27.3%
EPS TTM
0.26
EPS 5Y CAGR
-23.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$277.62M
Free CF TTM
$128.28M
FCF margin
19.1%
Dividend
Shareholder payout
Yield
4.8%
Payout ratio
269.2%
Last ex-div date
2026-09-30