irt-ex992

Independence Realty Trust (NYSE: IRT) is a real estate investment trust. Upon completion of the previously announced nine community portfolio acquisition, IRT will own and operate 55 multifamily apartment properties, totaling 15,165 units, across non-gateway U.S. markets, including Louisville, Memphis, Atlanta and Raleigh. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return of capital through distributions and capital appreciation.

This supplemental information 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,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “outlook,” “assumption,” “projected,” “strategy”, “guidance” 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 forward-looking statements are based upon the current beliefs and expectations of IRT’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within IRT’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward-looking statements include, but are not limited to, IRT’s 2017 EPS and CFFO guidance; the assumptions underlying such guidance; the anticipated benefits and the expected financial impact of IRT’s internalization of its management; changes in financial markets and interest rates, or to the business or financial condition of IRT; changes in market demand for rental apartment homes and competitive pricing from projected apartment industry dynamics, demographic and employment information; IRT’s maintenance of real estate investment trust (“REIT”) status; availability of financing and capital; dividends are subject to the discretion of IRT’s Board of Directors, and will depend on IRT’s financial condition, results of operations, capital requirements, compliance with applicable laws and agreements and any other factors deemed relevant by IRT’s Board; risks associated with pursuing additional strategic acquisitions, including risks associated with the need to raise additional capital to fund the acquisitions; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission (“SEC”) by IRT from time to time, including those discussed under the heading “Risk Factors” in IRT’s most recently filed reports on Forms 10-K and 10-Q. 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.

PHILADELPHIA – (BUSINESS WIRE) – October 31, 2017 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multi-family apartment REIT, today announced its third quarter 2017 financial results.

“Our third quarter performance reflects our ongoing commitment to drive organic growth while continuing to transform the portfolio,” said Scott Schaeffer, IRT’s Chairman and CEO. “Sound market fundamentals combined with a proactive approach to property management led to 4.0% year-over-year same-store NOI growth for the third quarter and 4.9% for the first nine months of the year. Our recently announced portfolio acquisition aligns perfectly with our investment strategy and will enable us to increase scale in core markets and strengthen our balance sheet over time. The year-to-date execution of our strategic initiatives has put IRT on track to deliver on our full-year objectives and enter 2018 from a position of strength as we work to unlock additional portfolio value.”

On September 3, 2017, IRT reached an agreement to acquire a portfolio of nine communities, totaling 2,353 units, for a gross purchase price of $228.1 million. The acquisition accelerates IRT’s penetration into a number of core existing markets, including Columbus, OH, Indianapolis, IN, and Atlanta, GA, while providing entry into two new markets. The portfolio contains nine communities that were built or renovated between 2000 and 2011, had period end occupancy of 95% as of July 31, 2017, and had an average effective rent per unit of $884 for the three months ended July 31, 2017. On September 26, 2017, IRT closed on four of these multifamily apartment communities, totaling 917 units: two in Columbus, OH, and the remaining two in Indianapolis, IN and Myrtle Beach, SC. On October 25, 2017, IRT closed on a 264-unit community in Baton Rouge, LA, representing the fifth community in the portfolio. The acquisition of the remaining four communities are expected to close in succession during the fourth quarter of 2017, after and subject to the satisfaction of customary closing conditions, as well as the debt assumption process on three of the four.

On September 11, 2017, IRT announced the closing of its public offering of 12,500,000 shares of its common stock at a public offering price of $9.25 per share. IRT also closed on the underwriters’ option to purchase an additional 1,875,000 shares of common stock at the public offering price. As a result of the offering and the exercise of the underwriters’ option, IRT received approximately $126.1 million in net proceeds, after deducting the underwriting discount and estimated offering expenses. IRT is using the net proceeds from the offering to pay a portion of the purchase price for the nine-community portfolio acquisition. Any remaining proceeds will be used for general corporate purposes.

For the three months ended September 30, 2017, recurring capital expenditures for the total portfolio were $2.1 million, or $161 per unit. For the nine months ended September 30, 2017, recurring capital expenditures for the total portfolio were $5.4 million, or $418 per unit.

IRT is adjusting 2017 full year EPS per diluted share guidance due to additional depreciation and acquisition related costs from the previously announced nine-community portfolio acquisition. EPS per diluted share is projected to be in a range of $0.38 to $0.41, compared to $0.54 to $0.57 previously. CFFO per diluted share is projected to be in the range of $0.73 to $0.76, unchanged from the prior quarter. A reconciliation of IRT's projected net income available to common shares to its projected CFFO per share, a non-GAAP financial measure, is included below. Also included below are the primary assumptions underlying this estimate. See Schedule II to this release for further information regarding how IRT calculates CFFO and Schedule V to this release for management’s definition and rationale for the usefulness of CFFO.

IRT discloses the following non-GAAP financial measures in this release: FFO, CFFO, Adjusted EBITDA and NOI. A reconciliation of IRT’s reported net income (loss) to its FFO and CFFO is included as Schedule II to this release. A reconciliation of IRT’s same store NOI to its reported net income (loss) is included as Schedule III to this release. A reconciliation of IRT’s Adjusted EBITDA to net income (loss) is included as Schedule IV to this release. See Schedule V to this release for management’s respective definitions and rationales for the usefulness of each of these non-GAAP financial measures and other definitions used in this release.

On October 17, 2017, IRT’s Board of Directors declared monthly cash dividends for the fourth quarter of 2017 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:

IRT will be transitioning to a quarterly distribution of cash dividends, effective the first quarter of 2018.

All interested parties can listen to the live conference call webcast at 9:30 AM ET on Tuesday, October 31, 2017 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.844.775.2542, access code 99812647. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website and telephonically until Tuesday, November 7, 2017 by dialing 1.855.859.2056, access code 99812647.

IRT produces supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store information and other useful information for investors. The supplemental information is available via the Company's website, www.irtliving.com, through the "Investor Relations" section.

	For the Three Months Ended
	September 30, 2017				June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Selected Financial Information:
Operating Statistics:
Net income available to common shares	$	1,097			$	18,739		$	4,077		$	(40,980	)	$	2,267
Earnings (loss) per share -- diluted	$	0.02			$	0.27		$	0.06		$	(0.61	)	$	0.05
Total property revenue	$	39,864			$	39,431		$	38,895		$	38,002		$	38,364
Total property operating expenses	$	16,196			$	15,918		$	15,992		$	15,560		$	16,107
Net operating income	$	23,668			$	23,513		$	22,903		$	22,442		$	22,257
NOI margin		59.4	%			59.6	%		58.9	%		59.1	%		58.0	%
Adjusted EBITDA	$	20,220			$	19,493		$	19,512		$	18,544		$	18,373
FFO per share -- diluted	$	0.13			$	0.12		$	0.17		$	(0.50	)	$	0.20
CORE FFO per share -- diluted	$	0.19			$	0.19		$	0.18		$	0.17		$	0.21
Dividends per share	$	0.18			$	0.18		$	0.18		$	0.18		$	0.18
CORE FFO payout ratio		94.7	%			94.7	%		100.0	%		105.9	%		85.7	%
Portfolio Data:
Total gross assets	$	1,497,546			$	1,400,864		$	1,390,589		$	1,370,243		$	1,374,353
Total number of properties		50				46			47			46			46
Total units		13,729				12,812			13,198			12,982			12,982
Period end occupancy		94.8	%			94.5	%		94.7	%		94.5	%		94.3	%
Total portfolio average occupancy		94.7	%			94.9	%		93.8	%		93.8	%		94.1	%
Total portfolio average effective monthly rent, per unit	$	1,004			$	1,010		$	978		$	977		$	977
Same store period end occupancy (a)		94.9	%			94.6	%		94.8	%		93.9	%		93.7	%
Same store portfolio average occupancy (a)		94.7	%			95.0	%		93.9	%		93.7	%		94.3	%
Same store portfolio average effective monthly rent, per unit (a)	$	1,020			$	1,013		$	1,007		$	998		$	999
Capitalization:
Total debt	$	731,625			$	764,521		$	765,695		$	743,817		$	880,581
Common share price, period end	$	10.17			$	9.87		$	9.37		$	8.92		$	9.00
Market equity capitalization	$	880,257			$	712,413		$	674,591		$	641,393		$	453,823
Total market capitalization	$	1,611,882			$	1,476,934		$	1,440,286		$	1,385,210		$	1,334,404
Total debt/total gross assets		48.9	%			54.6	%		55.1	%		54.3	%		64.1	%
Net debt to adjusted EBITDA		8.9	x	(b)		9.7	x		9.7	x		9.7	x		11.6	x
Interest coverage		2.9	x			2.7	x		2.6	x		2.4	x		2.1	x
Common shares and OP Units:
Shares outstanding		83,518,603				69,143,955			69,125,681			68,996,070			47,509,731
OP units outstanding		3,035,654				3,035,654			2,869,050			2,908,949			2,915,008
Common shares and OP units outstanding		86,554,257				72,179,609			71,994,731			71,905,019			50,424,739
Weighted average common shares and units		75,009,859				71,703,735			71,656,205			70,036,948			50,229,637

	As of
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Assets
Investments in real estate at cost	$	1,427,057		$	1,340,573		$	1,280,840		$	1,249,356		$	1,316,725
Less: accumulated depreciation		(75,084	)		(66,853	)		(59,055	)		(51,511	)		(52,824	)
Investments in real estate, net		1,351,973			1,273,720			1,221,785			1,197,845			1,263,901
Real estate held for sale		22,031			21,964			61,102			60,786			—
Cash and cash equivalents		10,128			6,271			10,065			20,892			29,247
Restricted cash		6,665			5,690			5,575			5,518			8,028
Accounts receivable and other assets		9,416			5,114			3,794			5,211			5,066
Derivative assets		3,581			3,619			4,292			3,867			—
Intangible assets, net		1,418			799			373			118			—
Total assets	$	1,405,212		$	1,317,177		$	1,306,986		$	1,294,237		$	1,306,242
Liabilities and Equity
Total indebtedness	$	731,625		$	764,521		$	765,695		$	743,817		$	880,581
Accounts payable and accrued expenses		23,236			16,940			13,154			14,028			22,231
Accrued interest payable		134			176			540			491			830
Dividends payable		5,176			4,313			4,301			4,297			3,009
Derivative liabilities		—			—			—			—			696
Other liabilities		3,063			2,906			2,952			2,913			2,857
Total liabilities		763,234			788,856			786,642			765,546			910,204
Equity
Shareholders' Equity:
Preferred shares, $0.01 par value per share		—			—			—			—			—
Common shares, $0.01 par value per share		835			691			691			690			475
Additional paid in capital		691,550			565,372			565,006			564,633			381,106
Accumulated other comprehensive income (loss)		3,466			3,468			4,097			3,683			(727	)
Retained earnings (deficit)		(76,419	)		(64,260	)		(70,608	)		(62,181	)		(8,833	)
Total shareholders' equity		619,432			505,271			499,186			506,825			372,021
Noncontrolling Interests		22,546			23,050			21,158			21,866			24,017
Total equity		641,978			528,321			520,344			528,691			396,038
Total liabilities and equity	$	1,405,212		$	1,317,177		$	1,306,986		$	1,294,237		$	1,306,242

	For the Three Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Revenue:
Rental income	$	35,531		$	35,176		$	34,737		$	34,145		$	34,333
Reimbursement and other property income		4,333			4,255			4,158			3,857			4,031
Total property revenue		39,864			39,431			38,895			38,002			38,364
Property management and other income		202			130			247			29			—
Total revenue		40,066			39,561			39,142			38,031			38,364
Expenses:
Real estate operating expenses		16,196			15,918			15,992			15,560			16,107
Property management expenses		1,328			1,444			1,538			1,137			1,219
General and administrative expenses		2,322			2,706			2,100			2,790			2,665
Acquisition and integration expenses		569			265			122			6			19
Depreciation and amortization expense		8,671			8,011			7,607			7,897			7,765
Total expenses		29,086			28,344			27,359			27,390			27,775
Operating Income (loss)		10,980			11,217			11,783			10,641			10,589
Interest expense		(6,963	)		(7,162	)		(7,448	)		(7,720	)		(8,820	)
Hedge ineffectiveness		12			(12	)		—			—			—
Other income (expense)		—			—			(5	)		(2	)		(2	)
Net gains (losses) on sale of assets		(92	)		16,050			(85	)		3			(1	)
Gains (losses) on extinguishment of debt		—			(572	)		—			(652	)		—
Acquisition related debt extinguishment expenses		(2,781	)		—			—			—			—
Gains (losses) on TSRE merger		—			—			—			—			641
Management internalization expense		—			—			—			(44,976	)		—
Net income (loss)		1,156			19,521			4,245			(42,706	)		2,407
(Income) loss allocated to noncontrolling interests		(59	)		(782	)		(168	)		1,726			(140	)
Net income (loss) available to common shares	$	1,097		$	18,739		$	4,077		$	(40,980	)	$	2,267
EPS - basic	$	0.02		$	0.27		$	0.06		$	(0.61	)	$	0.05
Weighted-average shares outstanding - Basic		71,972,394			68,832,855			68,787,155			67,126,993			47,215,918
EPS - diluted	$	0.02		$	0.27		$	0.06		$	(0.61	)	$	0.05
Weighted-average shares outstanding - Diluted		72,144,544			68,943,869			68,958,786			67,126,993			47,314,629
Funds From Operations (FFO):
Net Income (loss)	$	1,156		$	19,521		$	4,245		$	(42,706	)	$	2,407
Add-Back (Deduct):
Real estate depreciation and amortization		8,645			7,987			7,595			7,897			7,765
Net (gains) losses on sale of assets excluding defeasance costs		92			(18,798	)		85			(3	)		1
FFO	$	9,893		$	8,710		$	11,925		$	(34,812	)	$	10,173
FFO per share--diluted		0.13		$	0.12		$	0.17		$	(0.50	)	$	0.20
CORE Funds From Operations (CFFO):
FFO	$	9,893		$	8,710		$	11,925		$	(34,812	)	$	10,173
Add-Back (Deduct):
Stock compensation expense		422			738			388			390			247
Amortization of deferred financing costs		282			359			519			521			597
Acquisition and integration expenses		569			265			122			6			19
Other depreciation and amortization		26			24			12			—			—
Hedge ineffectiveness		(12	)		12			—			—			—
(Gains) losses on extinguishment of debt		—			572			—			652			—
Defeasance costs included in net gains (losses) on sale of assets		—			2,748			—			—			—
Management internalization expense		—			—			—			44,976			—
Acquisition related debt extinguishment expenses		2,781			—			—			—			—
Gains (losses) on TSRE merger		—			—			—			-			(641	)
CFFO	$	13,961		$	13,428		$	12,966		$	11,733		$	10,395
CFFO per share--diluted		0.19		$	0.19		$	0.18		$	0.17		$	0.21
Weighted-average shares and units outstanding		75,009,859			71,703,735			71,656,205			70,036,948			50,229,637

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Revenue:
Rental income	$	35,531		$	34,333		$	105,444		$	103,271
Reimbursement and other property income		4,333			4,031			12,746			12,086
Total property revenue		39,864			38,364			118,190			115,357
Property management and other income		202			—			579			—
Total revenue		40,066			38,364			118,769			115,357
Expenses:
Real estate operating expenses		16,196			16,107			48,106			47,588
Property management expenses		1,328			1,219			4,310			3,710
General and administrative expenses		2,322			2,665			7,128			8,074
Acquisition and integration expenses		569			19			956			37
Depreciation and amortization expense		8,671			7,765			24,289			26,927
Total expenses		29,086			27,775			84,789			86,336
Operating Income (loss)		10,980			10,589			33,980			29,021
Interest expense		(6,963	)		(8,820	)		(21,573	)		(27,815	)
Hedge ineffectiveness		12			—			—			—
Other income (expense)		—			(2	)		(5	)		(2	)
Net gains (losses) on sale of assets		(92	)		(1	)		15,873			31,773
Gains (losses) on extinguishment of debt		—			—			(572	)		(558	)
Acquisition related debt extinguishment expenses		(2,781	)		—			(2,781	)		—
Gains (losses) on TSRE merger		—			641			—			732
Net income (loss)		1,156			2,407			24,922			33,151
(Income) loss allocated to noncontrolling interests		(59	)		(140	)		(1,009	)		(1,972	)
Net income (loss) available to common shares	$	1,097		$	2,267		$	23,913		$	31,179
EPS - basic	$	0.02		$	0.05		$	0.34		$	0.66
Weighted-average shares outstanding - Basic		71,972,394			47,215,918			69,875,802			47,164,543
EPS - diluted	$	0.02		$	0.05		$	0.34		$	0.66
Weighted-average shares outstanding - Diluted		72,144,544			47,314,629			70,105,571			47,190,139

Funds From Operations (FFO):
Net Income (loss)	$	1,156		$	2,407		$	24,922		$	33,151
Adjustments:
Real estate depreciation and amortization		8,645			7,765			24,227			26,927
Net (gains) losses on sale of assets excluding defeasance costs		92			1			(18,621	)		(33,169	)
Funds From Operations	$	9,893		$	10,173		$	30,528		$	26,909
FFO per share--diluted	$	0.13		$	0.20		$	0.42		$	0.54
Core Funds From Operations (CFFO):
Funds From Operations	$	9,893		$	10,173		$	30,528		$	26,909
Adjustments:
Stock compensation expense		422			247			1,548			832
Amortization of deferred financing costs		282			597			1,160			2,543
Acquisition and integration expenses		569			19			956			37
Other depreciation and amortization		26			—			62			—
Hedge ineffectiveness		(12	)		—			—			—
(Gains) losses on extinguishment of debt		—			—			572			558
Defeasance costs included in net gains (losses) on sale of assets		—			—			2,748			1,396
Acquisition related debt extinguishment expenses		2,781			—			2,781			—
Gains (losses) on TSRE merger		—			(641	)		—			(732	)
Core Funds From Operations	$	13,961		$	10,395		$	40,355		$	31,543
CFFO per share--diluted	$	0.19		$	0.21		$	0.55		$	0.63
Weighted-average shares and units outstanding		75,009,859			50,229,637			72,801,899			50,105,147

	Three Months Ended
ADJUSTED EBITDA:	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Net income (loss)	$	1,156		$	19,521		$	4,245		$	(42,706	)	$	2,407
Add-Back (Deduct):
Depreciation and amortization		8,671			8,011			7,607			7,897			7,765
Interest expense		6,963			7,162			7,448			7,720			8,820
Hedging ineffectiveness		(12	)		12			—			—			—
Other (income) expense		—			—			5			2			2
Acquisition and integration expenses		569			265			122			6			19
Net (gains) losses on sale of assets		92			(16,050	)		85			(3	)		1
(Gains) losses on extinguishment of debt		—			572			—			652			—
Management internalization expense		—			—			—			44,976			—
Acquisition related debt extinguishment expenses		2,781			—			—			—			—
Gains (losses) on TSRE merger		—			—			—			-			(641	)
Adjusted EBITDA	$	20,220		$	19,493		$	19,512		$	18,544		$	18,373

INTEREST COST:
Interest expense	$	6,963		$	7,162		$	7,448		$	7,720		$	8,820

INTEREST COVERAGE:		2.9	x		2.7	x		2.6	x		2.4	x		2.1	x


	Three Months Ended September 30,						Nine Months Ended September 30,
ADJUSTED EBITDA:	2017			2016			2017			2016
Net income (loss)	$	1,156		$	2,407		$	24,922		$	33,151
Add-Back (Deduct):
Depreciation and amortization		8,671			7,765			24,289			26,927
Interest expense		6,963			8,820			21,573			27,815
Hedging ineffectiveness		(12	)		—			-			—
Other (income) expense		—			2			5			2
Acquisition and integration expenses		569			19			956			37
Net (gains) losses on sale of assets		92			1			(15,873	)		(31,773	)
(Gains) losses on extinguishment of debt		—			—			572			558
Management internalization expense		—			—			—			—
Acquisition related debt extinguishment expenses		2,781			—			2,781			—
Gains (losses) on TSRE merger		—			(641	)		—			(732	)
Adjusted EBITDA	$	20,220		$	18,373		$	59,225		$	55,985

INTEREST COST:
Interest expense	$	6,963		$	8,820		$	21,573		$	27,815

INTEREST COVERAGE:		2.9	x		2.1	x		2.7	x		2.0	x

	For the Three-Months Ended (a)
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Revenue:
Rental income	$	32,483		$	32,342		$	31,762		$	31,456		$	31,698
Reimbursement and other property income		3,913			3,881			3,719			3,476			3,645
Total revenue		36,396			36,223			35,481			34,932			35,343
Operating Expenses:
Real estate taxes		4,388			4,384			4,381			4,193			4,280
Property insurance		747			781			820			796			748
Personnel expenses		3,573			3,483			3,400			3,376			3,449
Utilities		2,353			2,123			2,223			2,235			2,280
Repairs and maintenance		1,550			1,334			1,233			1,194			1,460
Contract services		1,074			1,090			1,043			1,029			1,060
Advertising expenses		397			382			382			395			399
Other expenses		662			703			791			703			844
Total operating expenses		14,744			14,280			14,273			13,921			14,520
Same-store net operating income (a)	$	21,652		$	21,943		$	21,208		$	21,011		$	20,823
Same-store NOI margin		59.5	%		60.6	%		59.8	%		60.1	%		58.9	%
Average occupancy		94.7	%		95.0	%		93.9	%		93.7	%		94.3	%
Average effective monthly rent, per unit	$	1,020		$	1,013		$	1,007		$	998		$	999
Reconciliation of same-store net operating income to net income (loss)
Same-store net operating income	$	21,652		$	21,943		$	21,208		$	21,011		$	20,823
Non same-store net operating income		2,016			1,570			1,695			1,431			1,434
Property management income		202			130			247			29			—
Property management expenses		(1,328	)		(1,444	)		(1,538	)		(1,137	)		(1,219	)
General and administrative expenses		(2,322	)		(2,706	)		(2,100	)		(2,790	)		(2,665	)
Acquisition and integration expenses		(569	)		(265	)		(122	)		(6	)		(19	)
Depreciation and amortization expense		(8,671	)		(8,011	)		(7,607	)		(7,897	)		(7,765	)
Interest expense		(6,963	)		(7,162	)		(7,448	)		(7,720	)		(8,820	)
Hedge ineffectiveness		12			(12	)		—			—			—
Other income (expense)		—			—			(5	)		(2	)		(2	)
Net gains (losses) on sale of assets		(92	)		16,050			(85	)		3			(1	)
Gains (losses) on extinguishment of debt		—			(572	)		—			(652	)		—
Acquisition related debt extinguishment expenses		(2,781	)		—			—			—			—
Gains (losses) on TSRE merger		—			—			—			—			641
Management internalization expense		—			—			—			(44,976	)		—
Net income (loss)	$	1,156		$	19,521		$	4,245		$	(42,706	)	$	2,407

	Three-Months Ended September 30									Nine-Months Ended September 30
	2017			2016			% change			2017			2016			% change
Revenue:
Rental income	$	32,483		$	31,698			2.5	%	$	96,587		$	93,313			3.5	%
Reimbursement and other property income		3,913			3,645			7.4	%		11,513			10,640			8.2	%
Total revenue		36,396			35,343			3.0	%		108,100			103,953			4.0	%
Operating Expenses:
Real estate taxes		4,388			4,280			2.5	%		13,153			12,845			2.4	%
Property insurance		747			748			-0.1	%		2,348			2,254			4.2	%
Personnel expenses		3,573			3,449			3.6	%		10,456			10,038			4.2	%
Utilities		2,353			2,280			3.2	%		6,699			6,540			2.4	%
Repairs and maintenance		1,550			1,460			6.2	%		4,117			3,816			7.9	%
Contract services		1,074			1,060			1.3	%		3,207			3,254			-1.4	%
Advertising expenses		397			399			-0.5	%		1,161			1,198			-3.1	%
Other expenses		662			844			-21.6	%		2,156			2,254			-4.3	%
Total operating expenses		14,744			14,520			1.5	%		43,297			42,199			2.6	%
Same-store net operating income (a)	$	21,652		$	20,823			4.0	%	$	64,803		$	61,754			4.9	%
Same-store NOI margin		59.5	%		58.9	%		0.6	%		59.9	%		59.4	%		0.5	%
Average occupancy		94.7	%		94.3	%		0.4	%		94.5	%		93.5	%		1.0	%
Average effective monthly rent, per unit	$	1,020		$	999			2.2	%	$	1,014		$	984			3.0	%
Reconciliation of same-store net operating income to net income (loss)
Same-store portfolio net operating income	$	21,652		$	20,823					$	64,803		$	61,754
Non same-store net operating income		2,016			1,434						5,281			6,015
Property management income		202			—						579			—
Property management expenses		(1,328	)		(1,219	)					(4,310	)		(3,710	)
General and administrative expenses		(2,322	)		(2,665	)					(7,128	)		(8,074	)
Acquisition and integration expenses		(569	)		(19	)					(956	)		(37	)
Depreciation and amortization expense		(8,671	)		(7,765	)					(24,289	)		(26,927	)
Interest expense		(6,963	)		(8,820	)					(21,573	)		(27,815	)
Hedge ineffectiveness		12			—						—			—
Other income (expense)		—			(2	)					(5	)		(2	)
Net gains (losses) on sale of assets		(92	)		(1	)					15,873			31,773
Gains (losses) on extinguishment of debt		—			—						(572	)		(558	)
Acquisition related debt extinguishment expenses		(2,781	)		—						(2,781	)		—
Gains (losses) on TSRE merger		—			641						—			732
Net income (loss)	$	1,156		$	2,407					$	24,922		$	33,151

	For the Three-Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Property revenue
Same store (a)	$	36,396		$	36,223		$	35,481		$	34,932		$	35,343
Non same-store		3,468			3,208			3,414			3,070			3,021
Total property revenue		39,864			39,431			38,895			38,002			38,364
Property expenses
Same store (a)		14,744			14,280			14,273			13,921			14,520
Non same-store		1,452			1,638			1,719			1,639			1,587
Total property expenses		16,196			15,918			15,992			15,560			16,107
Net operating income
Same-store (a)		21,652			21,943			21,208			21,011			20,823
Non same-store		2,016			1,570			1,695			1,431			1,434
Total property net operating income	$	23,668		$	23,513		$	22,903		$	22,442		$	22,257
Reconciliation of NOI to net income (loss)
Total property net operating income	$	23,668		$	23,513		$	22,903		$	22,442		$	22,257
Property management and other income		202			130			247			29			—
Property management expenses		(1,328	)		(1,444	)		(1,538	)		(1,137	)		(1,219	)
General and administrative expenses		(2,322	)		(2,706	)		(2,100	)		(2,790	)		(2,665	)
Acquisition and integration expenses		(569	)		(265	)		(122	)		(6	)		(19	)
Depreciation and amortization expense		(8,671	)		(8,011	)		(7,607	)		(7,897	)		(7,765	)
Interest expense		(6,963	)		(7,162	)		(7,448	)		(7,720	)		(8,820	)
Hedge ineffectiveness		12			(12	)		—			—			—
Other income (expense)		—			—			(5	)		(2	)		(2	)
Net gains (losses) on sale of assets		(92	)		16,050			(85	)		3			(1	)
Gains (losses) on extinguishment on debt		—			(572	)		—			(652	)		—
Acquisition related debt extinguishment expenses		(2,781	)		—			—			—			—
Gains (losses) on TSRE merger		—			—			—			—			641
Management internalization expense		—			—			—			(44,976	)		—
Net income (loss)	$	1,156		$	19,521		$	4,245		$	(42,706	)	$	2,407


Acquisitions

Property Name	Location	Units		Acquisition Date	Contract Price		Price per Unit		Average Rent Per Unit
Lakes at Northdale	Tampa, FL	216		February 27, 2017	$	29,750	$	138	$	1,192
Haverford Place	Lexington, KY	160		May 24, 2017	$	14,240	$	89	$	874
South Terrace	Durham, NC	328		June 30, 2017	$	42,950	$	131	$	1,039
Cherry Grove Commons	North Myrtle Beach, SC	172		September 26, 2017	$	16,157	$	94	$	949
Riverchase Apts	Indianapolis, IN	217		September 26, 2017	$	18,899	$	87	$	800
Kensington Commons	Canal Winchester, OH	264		September 26, 2017	$	24,409	$	92	$	852
Schirm Farms	Canal Winchester, OH	264		September 26, 2017	$	23,749	$	90	$	831
Total - Completed Acquisitions			1,621		$	170,154	$	105	$	961

Live Oak Trace	Baton Rouge, LA	264		Pending	$	28,501	$	108	$	983
Brunswick Point	Wilmington, NC	288		Pending	$	30,661	$	106	$	817
Hartshire Lakes	Indianapolis, IN	272		Pending	$	27,597	$	101	$	917
Creekside Corners Apts	Atlanta, GA	444		Pending	$	43,901	$	99	$	931
Tides at Calabash	Wilmington, NC	168		Pending	$	14,269	$	85	$	838
Total - Pending Acquisitions			1,436		$	144,929	$	101	$	905

Total - Acquisitions			3,057		$	315,083	$	103	$	935


Dispositions

Property Name	Location	Units		Disposition Date	Contract Price		Price per Unit		Average Rent Per Unit
Copper Mill	Austin, TX	320		May 5, 2017	$	32,000	$	100	$	1,016
Heritage Trace	Newport News, VA	200		June 1, 2017	$	11,600	$	58	$	750
Berkshire Square	Indianapolis, IN	354		June 9, 2017	$	16,000	$	45	$	651
Total - Completed Dispositions		874			$	59,600	$	68	$	866

The Crossings	Jackson, MS	432		Pending	$	27,200	$	63	$	790
Total - Pending Dispositions		432			$	27,200	$	63	$	790

Total - Dispositions			1,306		$	86,800	$	66	$	845

					Investments in Real Estate
Property Name	Location	Acquisition Date	Year Built / Renovated ^(a)		Gross Cost		Accumulated Depreciation			Net Book Value		Units ^(b)		Period End Occupancy ^(c)		Average Occupancy ^(d)		Average Effective Rent per Occupied Unit^(e)
The Crossings	Jackson, MS	11/22/2013		2012		23,611		(1,580	)		22,031		432		94.0%		91.3%		790
TOTAL PROPERTIES HELD-FOR-SALE					$	23,611	$	(1,580	)	$	22,031		432		94.0%		91.3%	$	790

Same Store Properties:
Crestmont	Marietta, GA	4/29/2011		2010		17,315		(3,676	)		13,639		228		95.6%		94.8%		928
Runaway Bay	Indianapolis, IN	10/11/2012		2002		16,222		(1,880	)		14,342		192		95.8%		96.4%		1,003
Reserve at Eagle Ridge	Waukegan, IL	1/31/2014		2008		29,385		(2,299	)		27,086		370		93.8%		95.0%		1,007
Windrush	Edmond, OK	2/28/2014		2011		9,552		(775	)		8,777		160		88.8%		89.3%		760
Heritage Park	Oklahoma City, OK	2/28/2014		2011		17,719		(1,444	)		16,275		453		92.9%		91.9%		649
Raindance	Oklahoma City, OK	2/28/2014		2011		14,575		(1,196	)		13,379		504		93.5%		93.9%		550
Augusta	Oklahoma City, OK	2/28/2014		2011		11,810		(1,054	)		10,756		197		93.9%		93.4%		726
Invitational	Oklahoma City, OK	2/28/2014		2011		19,600		(1,756	)		17,844		344		92.7%		91.5%		665
King's Landing	Creve Coeur, MO	3/31/2014		2005		32,967		(2,702	)		30,265		152		92.8%		92.2%		1,568
Carrington Park	Little Rock, AR	5/7/2014		1999		22,340		(1,920	)		20,420		202		95.5%		94.8%		1,050
Arbors at the Reservoir	Ridgeland, MS	6/4/2014		2000		21,088		(1,631	)		19,457		170		94.1%		92.6%		1,153
Walnut Hill	Cordova, TN	8/28/2014		2001		28,327		(2,201	)		26,126		362		93.6%		93.8%		986
Lenoxplace	Raleigh, NC	9/5/2014		2012		24,582		(1,720	)		22,862		268		95.5%		94.8%		930
Stonebridge Crossing	Cordova, TN	9/15/2014		1994		30,568		(2,253	)		28,315		500		94.8%		95.7%		834
Bennington Pond	Groveport, OH	11/24/2014		2000		17,971		(1,245	)		16,726		240		95.8%		96.5%		894
Prospect Park	Louisville, KY	12/8/2014		1990		14,279		(828	)		13,451		138		93.5%		93.0%		944
Brookside	Louisville, KY	12/8/2014		1987		21,021		(1,255	)		19,766		224		96.9%		96.6%		869
Jamestown	Louisville, KY	12/8/2014	1970 (f)			36,310		(2,214	)		34,096		355		95.8%		96.3%		1,017
Meadows	Louisville, KY	12/8/2014		1988		38,155		(2,293	)		35,862		400		94.5%		93.8%		842
Oxmoor	Louisville, KY	12/8/2014	1999-2000			55,650		(3,506	)		52,144		432		94.2%		94.7%		1,021
Stonebridge at the Ranch	Little Rock, AR	12/16/2014		2005		31,958		(2,010	)		29,948		260		94.2%		93.1%		946
Iron Rock Ranch	Austin, TX	12/30/2014	2001-2002			35,471		(2,166	)		33,305		300		95.0%		94.3%		1,276
Bayview Club	Indianapolis, IN	5/1/2015		2004		25,786		(1,462	)		24,324		236		97.9%		95.2%		981
Arbors River Oaks	Memphis, TN	9/17/2015		2010		21,856		(1,072	)		20,784		191		97.4%		94.9%		1,240
Aston	Wake Forest, NC	9/17/2015		2013		37,986		(1,745	)		36,241		288		95.5%		95.7%		1,083
Avenues at Craig Ranch	McKinneuy, TX	9/17/2015		2013		47,793		(2,138	)		45,655		334		95.5%		96.2%		1,287
Bridge Pointe	Huntsville, AL	9/17/2015		2002		16,070		(756	)		15,314		178		98.3%		97.3%		849
Creekstone at RTP	Durham, NC	9/17/2015		2013		38,320		(1,671	)		36,649		256		93.0%		94.9%		1,213
Fountains Southend	Charlotte, NC	9/17/2015		2013		41,749		(1,880	)		39,869		208		93.8%		94.3%		1,461
Fox Trails	Plano, TX	9/17/2015		1981		28,257		(1,188	)		27,069		286		95.8%		96.2%		1,050
Lakeshore on the Hill	Chattanooga, TN	9/17/2015		2015		11,483		(557	)		10,926		123		97.6%		97.8%		975
Millenia 700	Orlando, FL	9/17/2015		2012		47,517		(2,128	)		45,389		297		94.9%		93.3%		1,380
Miller Creek at German Town	Memphis, TN	9/17/2015		2013		57,026		(2,702	)		54,324		330		95.5%		95.8%		1,249
Pointe at Canyon Ridge	Atlanta, GA	9/17/2015	2007 (f)			49,637		(2,030	)		47,607		494		96.6%		94.5%		981
St James at Goose Creek	Goose Creek, SC	9/17/2015		2009		31,839		(1,470	)		30,369		244		95.1%		95.3%		1,131
Talison Row at Daniel Island	Daniel Island, SC	9/17/2015		2013		47,190		(2,118	)		45,072		274		96.4%		96.4%		1,474
The Aventine Greenville	Greenville, SC	9/17/2015		2013		48,176		(2,208	)		45,968		346		93.9%		92.1%		1,092
Trails at Signal Mountain	Chattanooga, TN	9/17/2015		2015		14,468		(709	)		13,759		172		94.8%		97.3%		951
Vue at Knoll Trail	Dallas, TX	9/17/2015		2015		9,340		(331	)		9,009		114		97.4%		97.4%		922
Waterstone at Brier Creek	Raleigh, NC	9/17/2015		2014		39,019		(1,760	)		37,259		232		96.1%		96.8%		1,259
Waterstone Big Creek	Alpharetta, GA	9/17/2015		2014		69,729		(3,122	)		66,607		370		95.7%		96.5%		1,379
Westmont Commons	Asheville, NC	9/17/2015	2003, 2008			28,291		(1,319	)		26,972		252		94.8%		96.5%		1,054

Non-Same Store Properties:
Lakes of Northdale	Tampa, FL	2/27/2017		2016		29,735		(376	)		29,359		216		92.6%		93.5%		1,212
Haverford Place	Lexington, KY	5/24/2017	2001 (f)			14,142		(86	)		14,056		160		92.5%		96.6%		898
South Terrace	Durham, NC	6/30/2017		2002		42,604		(232	)		42,372		328		96.0%		96.2%		1,057
Cherry Grove	North Myrtle Beach, SC	9/26/2017		2001		15,919		-			15,919		172		95.9%		97.7%		942
Kensington Commons	Canal Winchester, OH	9/26/2017		2004		24,220		-			24,220		264		97.0%		96.7%		833
Schirm Farms	Canal Winchester, OH	9/26/2017		2002		23,448		-			23,448		264		96.6%		96.6%		839
Riverchase	Indianapolis, IN	9/26/2017		2000		18,592		-			18,592		217		91.2%		90.0%		804
TOTAL PROPERTIES HELD-FOR-USE					$	1,427,057	$	(75,084	)	$	1,351,973		13,297		94.9%		94.8%	$	1,011

TOTAL					$	1,450,668	$	(76,664	)	$	1,374,004		13,729		94.8%		94.7%	$	1,004

								For the Three Months Ended September 30, 2017
Market	Units		Gross Real Estate Assets		Period End Occupancy			Average Effective Monthly Rent per Unit		Net Operating Income (a)		% of NOI
Louisville. KY		1,709	$	179,557		94.7	%	$	941	$	2,945		12.4	%
Memphis, TN		1,383		137,777		95.0	%		1,029		2,549		10.8	%
Atlanta, GA		1,092		136,681		96.1	%		1,105		2,419		10.2	%
Raleigh, NC		1,372		182,511		95.3	%		1,101		2,907		12.3	%
Oklahoma City, OK		1,658		73,256		92.8	%		642		1,595		6.7	%
Dallas, TX		734		85,390		95.9	%		1,138		1,480		6.3	%
Charleston, SC		690		94,948		95.8	%		1,220		1,217		5.1	%
Jackson, MS (b)		602		44,699		94.0	%		892		924		3.9	%
Little Rock, AR		462		54,298		94.8	%		992		849		3.6	%
Orlando, FL		297		47,517		94.9	%		1,380		760		3.2	%
Chicago, IL		370		29,385		93.8	%		1,007		675		2.9	%
Indianapolis, IN		645		60,600		95.0	%		928		710		3.0	%
Greenville, SC		346		48,176		93.9	%		1,092		687		2.9	%
Austin, TX		300		35,471		95.0	%		1,276		625		2.6	%
Charlotte, NC		208		41,749		93.8	%		1,461		628		2.7	%
Asheville, NC		252		28,291		94.8	%		1,054		576		2.4	%
Chattanooga, TN		295		25,951		95.9	%		961		486		2.1	%
Tampa-St. Petersburg, FL		216		29,735		92.6	%		1,212		489		2.1	%
St. Louis, MO		152		32,967		92.8	%		1,568		450		1.9	%
Columbus, OH		768		65,639		96.5	%		854		409		1.7	%
Huntsville, AL		178		16,070		98.3	%		849		277		1.2	%
Total/Weighted Average		13,729	$	1,450,668		94.8	%	$	1,004	$	23,657		100.0	%

Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metric, when presented, reflects the average effective rent per month.

Average occupancy represents the average of the daily physical occupancy for the period presented.

EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before acquisition and integration expenses and certain other non-operating gains or losses related to items such as asset sales, debt extinguishments, acquisition related debt extinguishment expenses, gains on the TSRE merger, and management internalization expenses. EBITDA and Adjusted EBITDA are each non-GAAP measures. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of our performance because it eliminates interest, income taxes, depreciation and amortization, acquisition and integration expenses and other non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. IRT’s calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, IRT’s Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

IRT believes that FFO and CFFO, 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 (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.

CFFO 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 stock compensation expense, depreciation and amortization of other items not included in FFO, amortization of deferred financing costs, acquisition and integration expenses, and other non-operating gains or losses related to items such as hedge ineffectiveness, defeasance costs we incur when we sell a property subject to secured debt, asset sales, debt extinguishments, acquisition related debt extinguishment expenses, gains on the TSRE merger, and management internalization 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 CFFO.

IRT’s calculation of CFFO differs from the methodology used for calculating CFFO by certain other REITs and, accordingly, IRT’s CFFO may not be comparable to CFFO reported by other REITs. IRT’s management utilizes FFO and CFFO 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 or non-operating items 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, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, IRT believes that FFO and CFFO may provide IRT and our investors with an additional useful measure to compare IRT’s financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO 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 CFFO 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.

Interest coverage is a ratio computed by dividing our Adjusted EBITDA by our interest expense.

Net debt, a non-GAAP measure, equals total debt less cash and cash equivalents. The following table provides a reconciliation of total debt to net debt.

IRT presents net debt because management believes it is a useful measure of IRT’s credit position and progress toward reducing leverage. The calculation is limited in that IRT may not always be able to use cash to repay debt on a dollar for dollar basis (Dollars in thousands).

IRT believes that Net Operating Income (“NOI”), a non-GAAP measure, is a useful measure of its operating performance. IRT defines NOI as total property revenues less total property operating expenses, excluding depreciation and amortization, asset management fees, property management fees, acquisition expenses and general administrative expenses. In connection with our management internalization which was completed in the fourth quarter of 2016, we modified our calculation of NOI to exclude property management expenses. We retrospectively adjusted previously reported NOI to conform to this change. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same store and non-same store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.

IRT reviews its same store properties or portfolio at the beginning of each calendar year. Properties are added into the same store portfolio if they were owned at the beginning of the previous year. Properties that are held-for-sale or have been sold are excluded from the same store portfolio.

Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (Dollars in thousands).

Company Information		3

Forward-Looking Statements		4

Earnings Release Text		5

Financial & Operating Highlights		9

Balance Sheets		10

Statements of Operations, FFO & CORE FFO
Trailing 5 Quarters		11
Three and Nine Months Ended September 30, 2017 and 2016		12

Adjusted EBITDA Reconciliations and Coverage Ratio
Trailing 5 Quarters		13
Three and Nine Months Ended September 30, 2017 and 2016		13

Same-Store Portfolio Net Operating Income
Trailing 5 Quarters		14
Three and Nine Months Ended September 30, 2017 and 2016		15

Net Operating Income Bridge		16

Capital Recycling Activity		17

Property Summary		18

NOI Exposure by Market		19

Debt Summary		20

Definitions		21

Corporate Headquarters		Two Liberty Place
		50 S. 16^th Street, Suite 3575
		Philadelphia, Pa 19102
		267.270.4800

Trading Symbol		NYSE: “IRT”

Investor Relations Contact		Edelman Financial Communications & Capital Markets
		Ted McHugh and Lauren Tarola
		212-277-4322
		IRT@edelman.com


	Third Quarter 2017 Compared to Third Quarter 2016⁽¹⁾	Nine Months Ended 9/30/17 Compared to Nine Months Ended 9/30/16⁽¹⁾
Rental income	2.5% increase	3.5% increase
Total revenues	3.0% increase	4.0% increase
Property level operating expenses	1.5% increase	2.6% increase
Net operating income (“NOI”)	4.0% increase	4.9% increase
Portfolio average occupancy	40 bps increase to 94.7%	100 bps increase to 94.5%
Portfolio average rental rate	2.2% increase to $1,020	3.0% increase to $1,014
NOI Margin	60 bps increase to 59.5%	50 bps increase to 59.9%


2017 Full Year EPS and CFFO Guidance ⁽¹⁾	Low	High
Net income available to common shares	$0.38	$0.41
Earnings per share	$0.38	$0.41

2017 EPS and CFFO Guidance
Net income available to common shares	$0.38	$0.41
Adjustments:
Depreciation and amortization	0.47	0.47
Gains on asset sales	(0.24)	(0.24)
Share base compensation	0.03	0.03
Amortization of deferred financing fees	0.02	0.02
Acquisition, integration, and debt extinguishment expenses	0.07	0.07
CORE FFO per diluted share allocated to common shareholders	$0.73	$0.76



Same Store Communities	Previous 2017 Outlook	Revised 2017 Outlook
Number of properties/units	42 properties /11,676 units	42 properties /11,676 units
Property revenue growth	4.0% to 4.5%	4.0%
Controllable property operating expense growth	1.6% to 2.0%	1.6% to 2.0%
Real estate tax and insurance expense increase	4.5% to 5.5%	4.5% to 5.5%
Property NOI growth	4.5% to 5.5%	4.5% to 5.5%

Corporate Expenses
General and administrative expenses (excluding stock based compensation)	$7.3 to $7.7 million	$7.3 to $7.7 million

Transaction/Investment Volume
Acquisition volume	$87 million	$315 to $355 million
Disposition volume	$87 million	$87 million

Capital Expenditures
Recurring	$6.5 to $6.8 million	$6.5 to $6.8 million
Value Add	$5.5 to $6.0 million	$5.5 to $6.0 million

	Amount			Rate			Type	Weighted Average Maturity (in years)
Debt:
Credit facility (a)	$	159,690			2.7	%	Floating		3.9
Mortgages-Fixed rate		577,632			3.7	%	Fixed		6.0
Unamortized deferred financing costs		(5,697	)
Total Debt		731,625			3.5	%			5.6
Market Equity Capitalization, at period end		880,257
Total Capitalization	$	1,611,882