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Independence Realty Trust Completes Sale of Three Additional Properties as Part of Portfolio Optimization and Deleveraging Strategy

Independence Realty Trust, Inc. (NYSE: IRT) (“IRT”) announced today the sale of three properties in three markets, as part of the Company’s Portfolio Optimization and Deleveraging Strategy. The total gross sales price of the three properties was $168.1 million, with each property sale closing in March 2024.

In total, since the Portfolio Optimization and Deleveraging Strategy was established in October 2023, the Company has sold nine of the targeted 10 properties, generating gross sales proceeds of $496.8 million. With the proceeds from these nine sales to date, IRT repaid $488.9 million of debt, comprised of $252.5 million of property level debt associated with the sold properties and $236.4 million of borrowings outstanding on its line of credit.

Once the sale of all properties under the Portfolio Optimization and Deleveraging Strategy is complete, IRT expects to generate gross sales proceeds of approximately $525.3 million with proceeds used to delever the balance sheet. This will result in IRT exiting five single-asset markets and lowering its net debt to adjusted EBITDA ratio by 0.8x, providing a clear path to reach its target of high-5x’s by year-end 2024.

“We have made significant progress against our Portfolio Optimization and Deleveraging Strategy, using the proceeds from each asset sale to fundamentally reset our leverage profile and strengthen our financial position,” said Scott Schaeffer, Chairman and CEO of IRT. “By exiting or reducing our presence in non-core markets through this initiative, combined with recently receiving an investment grade rating from Fitch Ratings, IRT is well-positioned to drive profitable growth and deliver meaningful value for our stakeholders.”

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders with attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, increased financial flexibility, growth opportunities and related benefits that we expect to realize through our Portfolio Optimization and Deleveraging Strategy and value add program. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions.

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts, strategies and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, failure to realize cost savings, efficiencies and other benefits that we expect to result from our Portfolio Optimization and Deleveraging Strategy, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2023, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results, including our ability to execute on our Portfolio Optimization and Deleveraging Strategy and other strategies, may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.


Independence Realty Trust, Inc.

Edelman Smithfield

Lauren Torres


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