EX-99.1

PHILADELPHIA, PA — October 31, 2014 — Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT) today announced its third quarter 2014 financial results.

•

Core funds from operations (“CFFO”) increased 202% to $4.0 million for the quarter ended September 30, 2014 from $1.3 million for the quarter ended September 30, 2013.

•

Operating income increased 83% to $2.2 million for the quarter ended September 30, 2014 from $1.2 million for the quarter ended September 30, 2013.

•

Total revenues grew 173% to $13.1 million for the quarter ended September 30, 2014 from $4.8 million for the quarter ended September 30, 2013.

•

On July 21, 2014, IRT completed its underwritten public offering selling 8,050,000 shares of IRT common stock for $9.50 per share raising gross proceeds of $76.5 million. RAIT Financial Trust (“RAIT”), IRT’s largest stockholder and the parent company of IRT’s external advisor, purchased 300,000 shares of IRT common stock in the offering at the public offering price for which no underwriting discounts and commissions were paid to the underwriters. After giving effect to this offering, the percent of IRT’s outstanding common stock held by RAIT was reduced from 39.4% to 28.2%.

•

IRT acquired 3 properties totaling 1,128 units for purchase prices totaling $82.0 million during the quarter ended September 30, 2014.

IRT reported CFFO, a non-GAAP financial measure, of $4.0 million for the three-month period ended September 30, 2014, or $0.17 per share — diluted based on 24.0 million weighted-average shares outstanding – diluted, as compared to CFFO for the three-month period ended September 30, 2013 of $1.3 million, or $0.17 per share – diluted based on 7.6 million weighted-average shares outstanding – diluted. IRT reported a net loss allocable to common stock for the three-month period ended September 30, 2014 of $0.1 million, or $0.00 per share — diluted based on 24.0 million weighted-average shares outstanding – diluted, as compared to net income allocable to common stock for the three-month period ended September 30, 2013 of $0.3 million, or $0.03 per share – diluted based on 7.6 million weighted-average shares outstanding – diluted.

IRT reported CFFO for the nine-month period ended September 30, 2014 of $9.9 million, or $0.52 per share — diluted based on 19.0 million weighted-average shares outstanding – diluted, as compared to CFFO for the nine-month period ended September 30, 2013 of $3.9 million, or $0.62 per share – diluted based on 6.3 million weighted-average shares outstanding – diluted, which includes limited partnership units. IRT reported a net income allocable to common stock for the nine-month period ended September 30, 2014 of $2.8 million, or $0.14 per share — diluted based on 19.0 million weighted-average shares outstanding – diluted, as compared to net income allocable to common stock for the nine-month period ended September 30, 2013 of $0.3 million, or $0.08 per share – diluted based on 3.9 million weighted-average shares outstanding – diluted.

A reconciliation of IRT’s reported net income (loss) to its funds from operations (“FFO”) and CFFO is included as Schedule I to this release. Schedule I also includes management’s rationale for the usefulness of each of these non-GAAP financial measures.

On October 16, 2014, IRT’s Board of Directors declared monthly cash dividends for the fourth quarter of 2014 on IRT’s shares of common stock in the amount of $0.06 per share per month. The monthly dividends total $0.18 per share for the fourth quarter. The month for which each dividend was declared is set forth below, with the relevant amount per share, record date and payment date set forth opposite the month:

Key Statistics
(Unaudited and dollars in thousands, except per share and per unit information)


	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Financial Statistics:
Total revenue	$	13,057		$	11,649		$	8,135		$	5,768		$	4,787
Earnings (loss) per share-diluted	$	(0.00	)	$	(0.01	)	$	0.19		$	0.03		$	0.03
Funds from Operations (“FFO”) per share	$	0.14		$	0.18		$	0.33		$	0.17		$	0.17
Core funds from operations (“CFFO”) per share	$	0.17		$	0.19		$	0.17		$	0.20		$	0.17
Dividends declared per common share	$	0.18		$	0.18		$	0.18		$	0.16		$	0.16
Total Shares Outstanding		25,801,540			17,751,540			17,742,540			9,652,540			9,643,540
Apartment Property Portfolio:
Reported investments in real estate at cost	$	444,050		$	362,323		$	320,437		$	190,096		$	166,665
Net operating income	$	6,905		$	6,064		$	4,147		$	3,159		$	2,373
Number of properties owned		22			19			17			10			9
Multifamily units owned		6,470			5,342			4,970			2,790			2,358
Portfolio weighted average occupancy		92.6	%		93.1	%		93.9	%		94.6	%		94.4	%
Weighted average monthly effective rent per unit ⁽¹⁾	$	791		$	764		$	730		$	765		$	784

(1)

Weighted average monthly effective rent per occupied unit represents the average monthly rent collected for all occupied units after giving effect to tenant concessions. We do not report average effective rent per unit in the month of acquisition as it is not representative of a full month of operations. Same Store weighted average effective rent per unit was $814, $798, $795, $792 and $784 for the periods presented above, respectively.

The following table presents an overview of our apartment portfolio as of September 30, 2014:


										Average Monthly
			Year							Effective
		Acquisition	Built or				Physical			Rent per
Property Name	Location	Date	Renovated⁽¹⁾		Units⁽²⁾		Occupancy⁽³⁾			Occupied Unit⁽⁴⁾

Belle Creek	Henderson, CO	4/29/2011	2011		162⁽⁵⁾		96.3%			$1,024
Copper Mill	Austin, TX	4/29/2011		2010		320		94.7	%		812
Crestmont	Marietta, GA	4/29/2011		2010		228		96.5	%		737
Cumberland Glen	Smyrna, GA	4/29/2011		2010		222		95.5	%		711
Heritage Trace	Newport News, VA	4/29/2011		2010		200		87.5	%		695
Tresa at Arrowhead	Phoenix, AZ	4/29/2011		2006		360		96.1	%		828
Centrepoint	Tucson, AZ	12/16/2011		2006		320		91.6	%		833
Runaway Bay	Indianapolis, IN	10/11/2012		2002		192		95.8	%		916
Berkshire Square	Indianapolis, IN	9/19/2013		2012		354		91.2	%		572
The Crossings	Jackson, MS	11/22/2013		2006		432		83.8	%		778
Reserve at Eagle Ridge	Waukegan, IL	1/31/2014		2008		370		91.6	%		942
Windrush	Edmond, OK	2/28/2014		2011		160		95.0	%		783
Heritage Park	Oklahoma City, OK	2/28/2014		2011		453		92.5	%		636
Raindance	Oklahoma City, OK	2/28/2014		2011		504		92.1	%		527
Augusta	Oklahoma City, OK	2/28/2014		2011		197		90.9	%		683
Invitational	Oklahoma City, OK	2/28/2014		2011		344		89.5	%		686
King’s Landing	Creve Coeur, MO	3/31/2014		2005		152		89.5	%		1,493
Carrington Park	Little Rock, AR	5/07/2014		1999		202		90.1	%		1,000
Arbors at the Reservoir	Ridgeland, MS	6/04/2014		2000		170		95.3	%		1,062
Walnut Hill	Cordova, TN	8/28/2014		2001		360		95.8	%		919
Lenoxplace	Raleigh, NC	9/05/2014		2012		268		95.9	%	— ⁽⁶⁾
Stonebridge	Cordova, TN	9/15/2014		1994		500		94.8	%	— ⁽⁶⁾

Total/Weighted Average						6,470		92.6	%	$	791

(1)

All dates are for the year in which a significant renovation program was completed, except for Runaway Bay, Arbors at the Reservoir, King’s Landing, Walnut Hill, and Stonebridge which is the year construction was completed.

(2)

Units represents the total number of apartment units available for rent at September 30, 2014.

(3)

Physical occupancy for each of our properties is calculated as (i) total units rented as of September 30, 2014 divided by (ii) total units available as of September 30, 2014, expressed as a percentage.

(4)

Average monthly effective rent per occupied unit represents the average monthly rent for all occupied units for the three-month period ended September 30, 2014.

(5)

Includes 6,256 square feet of retail space in six units, of which 1,010 square feet of space is occupied by RAIT Residential for use as the leasing office. The remaining 5,246 square feet of space is 86% occupied by four tenants with an average monthly base rent of $1,623, or $16 per square foot per year. These four tenants are principally engaged in the following businesses: grocery, retail and various retail services.

(6)

We do not report average effective rent per unit in the month of acquisition as it is not representative of a full month of operations.

All interested parties can listen to the live conference call webcast at 9:30 AM ET on

Friday, October 31, 2014 from the investor relations section of the IRT website at www.irtreit.com or by dialing 1.800.299.9630, access code 90968950. For those who are not available to listen to the live call, the replay will be available shortly following the live call on IRT’s website and telephonically until Friday, November 7, 2014, by dialing 888.286.8010, access code 56293476.

Independence Realty Trust, Inc. (NYSE MKT: IRT) is a real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates. IRT seeks to provide stockholders with attractive risk-adjusted returns, with an emphasis on distributions and capital appreciation. IRT is externally advised by a wholly-owned subsidiary of RAIT Financial Trust (NYSE: RAS).

This press release may contain 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 can generally be identified by our use of forward-looking terminology such as “may,” “trend”, “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, those disclosed in IRT’s filings with the Securities and Exchange Commission. IRT undertakes 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. Contact
Andres Viroslav
215.243.9000
aviroslav@irtreit.com

Independence Realty Trust, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except share and per share information)
(unaudited)


	For the Three-Month						For the Nine-Month
	Period Ended						Period Ended
	September 30						September 30
	2014			2013			2014				2013
Revenues:
Rental income	$	11,872		$	4,259			$	29,838		$	12,655
Tenant reimbursement income		505			225				1,307			668
Other income		680			303				1,696			852

Total revenue		13,057			4,787				32,841			14,175
Expenses:
Property operating expenses		6,152			2,414				15,725			6,820
General and administrative expenses		248			103				794			374
Asset management fees		445			4				1,092			165
Acquisition expenses		687			50				1,201			50
Depreciation and amortization		3,309			1,008				8,664			3,107

Total expenses		10,841			3,579				27,476			10,516

Operating income		2,216			1,208				5,365			3,659
Interest expense		(2,281	)		(906	)			(5,510	)		(2,693	)
Interest income		7			—				12			—
Gain (loss) on assets		—			—				2,882			—

Net income (loss):		(58	)		302				2,749			966
(Income) loss allocated to preferred stock		—			(2	)			—			(10	)
(Income) loss allocated to non-controlling interests		2			(45	)			2			(649	)

Net income (loss) allocable to common stock	$	(56	)	$	255			$	2,751		$	307

Earnings (loss) per share:
Basic	$	(0.00	)	$	0.03			$	0.14		$	0.08

Diluted	$	(0.00	)	$	0.03			$	0.14		$	0.08

Weighted-average shares:
Basic		24,011,540			7,643,540		19,004,591					3,875,331

Diluted		24,011,540			7,643,540		19,040,301					3,875,331

Independence Realty Trust, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share and per share information)
(unaudited)


	As of			As of
	September 30,			December 31,
	2014			2013
Assets:
Investments in real estate:
Investments in real estate at cost	$	444,050		$	190,096
Accumulated depreciation		(20,848	)		(15,775	)

Investments in real estate, net		423,202			174,321
Cash and cash equivalents		34,786			3,334
Restricted cash		4,870			1,122
Accounts receivable and other assets		2,748			1,731
Intangible assets, net of accumulated amortization of $3,495 and $569, respectively		1,327			517
Deferred costs, net of accumulated amortization of $386 and $151, respectively		2,090			846

Total assets	$	469,023		$	181,871

Liabilities and Equity:
Indebtedness	$	253,833		$	103,303
Accounts payable and accrued expenses		7,407			2,374
Accrued interest payable		30			63
Dividends payable		1,567			515
Other liabilities		1,205			708

Total liabilities		264,042			106,963
Equity:
Stockholders’ equity:		—			—
Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively
Common stock, $0.01 par value; 300,000,000 shares authorized, 25,801,540 and 9,652,540 shares issued and outstanding, including 40,000 unvested restricted common share awards as of September 30, 2014		258			96
Additional paid-in capital		213,006			78,112
Retained earnings (accumulated deficit)		(11,560	)		(3,300	)

Total shareholders’ equity		201,704			74,908
Non-controlling interests		3,277			—

Total Equity		204,981			74,908

Total liabilities and equity	$	469,023		$	181,871

Schedule I
Independence Realty Trust, Inc.
Reconciliation of Net income (loss) Allocable to Common Stock and
Funds From Operations (“FFO”) and
Core Funds From Operations (“CFFO”) (1)
(Dollars in thousands, except share and per share amounts)
(unaudited)



	For the Three-Month Period Ended												For the Nine-Month Period Ended
	September 30,												September 30,
	2014						2013						2014						2013
	Amount			Per Share (2)			Amount			Per Share (3)			Amount			Per Share (2)			Amount			Per Share (3)

Funds From Operations:
Net income (loss)	$	(58	)	$	(0.00	)	$	302		$	0.04		$	2,749		$	0.14		$	966		$	0.15
Adjustments:
Income allocated to preferred shares		—			—			(2	)		(0.00	)		—			—			(10	)		(0.00
)Income allocated to preferred units		2			—			(45	)		(0.00	)		2			—			(220	)		(0.03	)
Real estate depreciation and amortization		3,309			0.14			1,008			0.13			8,664			0.46			3,107			0.49

Funds From Operations	$	3,253		$	0.14		$	1,263		$	0.17		$	11,415		$	0.60		$	3,843		$	0.61

Core Funds From Operations:
Funds From Operations	$	3,253		$	0.14		$	1,263		$	0.17		$	11,415		$	0.60		$	3,843		$	0.61
Adjustments:
Acquisition fees and expenses		687			0.03			50			0.00			1,201			0.06			50			0.01
Equity based compensation		31			0.00			—			—			174			0.01			—			—
(Gains) losses on assets		—			—			—			—			(2,882	)		(0.15	)		—			—

Core Funds From Operations	$	3,971		$	0.17		$	1,313		$	0.17		$	9,908		$	0.52		$	3,893		$	0.62

(1)

IRT believes that FFO and Core FFO, each of which is a non-GAAP measure, are additional appropriate measures of the operating performance of a REIT and IRT in particular. IRT computes FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT, as net income or loss allocated to common stock (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, gains or losses on sales of real estate and the cumulative effect of changes in accounting principles.

Core FFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including acquisition expenses, expensed costs related to the issuance of shares of our common stock, gains or losses on real estate transactions and equity-based compensation expenses, from the determination of FFO. IRT incurs acquisition expenses in connection with acquisitions of real estate properties and expenses those costs when incurred in accordance with U.S. GAAP. As these expenses are one-time and reflective of investing activities rather than operating performance, IRT adds back these costs to FFO in determining Core FFO.

IRT’s calculation of Core FFO differs from the methodology used for calculating Core FFO by certain other REITs and, accordingly, IRT’s Core FFO may not be comparable to Core FFO reported by other REITs. IRT’s management utilizes FFO and Core FFO as measures of IRT’s operating performance, and believes they are also useful to investors, because they facilitate an understanding of IRT’s operating performance after adjustment for certain non-cash items, such as depreciation and amortization expenses, and acquisition expenses and pursuit costs that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and that may not accurately compare IRT’s operating performance between periods. Furthermore, although FFO, Core FFO and other supplemental performance measures are defined in various ways throughout the REIT industry, IRT also believes that FFO and Core FFO may provide IRT and our investors with an additional useful measure to compare IRT’s financial performance to certain other REITs. IRT also uses Core FFO for purposes of determining the quarterly incentive fee, if any, payable to our advisor beginning with the second quarter of 2013.Neither FFO nor Core FFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and Core FFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor Core FFO should be considered as an alternative to net income as an indicator of IRT’s operating performance or as an alternative to cash flow from operating activities as a measure of IRT’s liquidity.

(2)

Based on 24,011,540 and 19,040,301 weighted-average shares outstanding-diluted for the three and nine-month periods ended September 30, 2014.

(3)

Based on 7,643,540 and 6,309,900 weighted-average shares outstanding-diluted for the three and nine-month periods ended September 30, 2013. Weighted-average shares include 5,274,900 limited partnership units that were exchanged for common stock on May, 2013.