EX-99.2 3 irt-ex992_7.htm EX-99.2 irt-ex992_7.htm

Exhibit 99.2

1

 

TABLE OF CONTENTS

 

Company Information

 

3

 

 

 

Forward-Looking Statements

 

4

 

 

 

Earnings Release Text

 

5

 

 

 

Financial & Operating Highlights

 

10

 

 

 

Balance Sheets

 

11

 

 

 

Statements of Operations, FFO & CORE FFO

 

 

Trailing 5 Quarters

 

12

Three and Six Months Ended June 30, 2019 and 2018

 

13

 

 

 

Adjusted EBITDA Reconciliations and Coverage Ratio

 

 

Trailing 5 Quarters

 

14

Three and Six Months Ended June 30, 2019 and 2018

 

14

 

 

 

Same-Store Portfolio Net Operating Income

 

 

Trailing 5 Quarters

 

15

Three and Six Months Ended June 30, 2019 and 2018

 

16

 

 

 

Net Operating Income Bridge

 

17

 

 

 

Same-Store Portfolio Net Operating Income by Market

 

 

         Three Months ended June 30, 2019 and 2018

 

18

         Six Months ended June 30, 2019 and 2018

 

19

 

 

 

Total Portfolio NOI Exposure by Market

 

20

 

 

 

Value Add Summary

 

21

 

 

 

Capital Recycling Activity

 

22

 

 

 

Debt Summary

 

23

 

 

 

Definitions

 

24

 

2

Independence Realty Trust

June 30, 2019

Company Information:

 

Independence Realty Trust (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Louisville, Memphis, 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. More information may be found on the Company’s website at www.irtliving.com.

 

Corporate Headquarters

 

1835 Market Street, Suite 2601

 

 

Philadelphia, PA 19103

 

 

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

 

 

 

 

 


3

Forward-Looking Statements

This supplemental information 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 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 forward-looking statements involve significant risks, uncertainties and contingencies, many of which are not within IRT’s control, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such statements. These forward-looking statements are based upon the current judgements and expectations of IRT’s management.  Risks and uncertainties that might cause IRT’s actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: adverse changes in national, regional and local economic climates; changes in market demand for rental apartment homes and pricing pressures from competitors that could limit our ability to lease units or increase rents; competition that could adversely affect our ability to acquire additional properties; volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; unexpected changes in the assumptions underlying our 2019 EPS, CFFO and same store NOI growth guidance; delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; risks associated with pursuit of strategic acquisitions, including risks associated with the need to raise additional capital to fund the acquisitions and failure of acquisitions to produce expected returns; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations.  Additional risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements in this supplemental information are discussed in IRT’s filings with the Securities and Exchange Commission (“SEC”), including those under the heading “Risk Factors” in IRT’s most recently filed Annual Report on Form 10-K.  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.  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.

 


4

Independence Realty Trust Announces Second Quarter 2019 Financial Results

 

 

PHILADELPHIA – (BUSINESS WIRE) – July 31, 2019 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its second quarter 2019 financial results.

 

Second Quarter Highlights

 

 

•

Net income allocable to common shares of $14.7 million for the quarter ended June 30, 2019 as compared to $3.5 million for the quarter ended June 30, 2018. Earnings per diluted share of $0.16 for the quarter ended June 30, 2019 as compared to $0.04 for the quarter ended June 30, 2018.

 

 

•

Core Funds from Operations (“CFFO”) of $16.9 million for the quarter ended June 30, 2019 as compared to $16.4 million for the quarter ended June 30, 2018. CFFO per share was $0.19 for the second quarter of 2019 and $0.19 for the second quarter of 2018.

 

 

•

Same store net operating income (“NOI”) growth of 6.9% for the quarter ended June 30, 2019 compared to the quarter ended June 30, 2018.

 

 

•

Adjusted EBITDA of $25.3 million for the quarter ended June 30, 2019 as compared to $23.7 million for the quarter ended June 30, 2018.

 

 

•

Since the inception of the value-add program, IRT has completed renovations in 1,950 units, achieving a total weighted average return on investment of 16%.

 

Included later in this press release are definitions of CFFO, NOI, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented under GAAP.  

 

Management Commentary:

 

“Our strong Q2 NOI growth demonstrates the tangible results of our value add renovation program, and we’re excited to announce the details of Phase III of our value add program,” said Scott Schaeffer, IRT’s Chairman and CEO.  “Not only will these upgrades drive long-term rental and NOI growth, but they will also improve the quality of our communities and increase our competitive edge in the marketplace.”

 

Same Store Property Operating Results

 

 

Second Quarter 2019 Compared to Second Quarter 2018(1)

Six Months Ended 6/30/19 Compared to Six Months Ended 6/30/18 (1)

Rental and other property revenue

5.4% increase

4.7% increase

Property operating expenses

3.1% increase

2.8% increase

Net operating income (“NOI”)

6.9% increase

6.0% increase

Portfolio average occupancy

10 bps increase to 94.1%

50 bps decrease to 93.3%

Portfolio average rental rate

5.3% increase to $1,062

4.8% increase to $1,053

NOI Margin

90 bps increase to 60.4%

70 bps increase to 60.4%

 

 

(1)

Same store portfolio for the three and six months ended June 30, 2019 includes 50 properties, which represent 13,697 units.

 


5

Same Store Property Operating Results, Excluding Value Add

The same store portfolio results below exclude 12 communities that are both part of the same store portfolio and are actively undergoing Value Add renovations during the three months ended June 30, 2019.

 

 

 

Second Quarter 2019 Compared to Second Quarter 2018, Excluding Value Add (1)

Six Months Ended 6/30/19 Compared to Six Months Ended 6/30/18 (1)

Rental and other property revenue

3.7% increase

3.8% increase

Property operating expenses

1.8% increase (2)

3.6% increase (2)

Net operating income (“NOI”)

5.0% increase

3.9% increase

Portfolio average occupancy

30 bps increase to 95.2%

No change – 94.4%

Portfolio average rental rate

3.7% increase to $1,062

3.4% increase to $1,055

NOI Margin

70 bps increase to 60.3%

No change – 59.8%

 

 

(1)

Same store portfolio, excluding value add, includes 38 properties, which represent 9,748 units for the three and six months ended June 30, 2019.

 

(2)

As communicated previously, this increase is primarily the result of increased real estate taxes. Please refer to the 2019 EPS and CFFO Guidance section for our updated assumptions for 2019 property level operating expenses.

 

Value Add – Phase III Launch

As of June 30, 2019, IRT identified eight additional communities, totaling 2,402 units, to represent Phase III of the Company’s value add initiative. The projects will commence over the next 12 months and will be in addition to the projects already underway or completed in Phase I and Phase II of the Company’s value add initiative.

 

Community Name

Market

Units

North Park

Atlanta, GA

224

Waterford Landing

Atlanta, GA

260

Meadows

Louisville, KY

400

Walnut Hill

Memphis, TN

362

Lenoxplace

Raleigh, NC

268

Bridgeview

Tampa, FL

348

Lucerne

Tampa, FL

276

Rocky Creek

Tampa, FL

264

 

 

Capital Recycling

 

Acquisitions:

 

•

On April 30, 2019, IRT acquired a 224-unit community in Atlanta, GA for $28.0 million. At the time of acquisition, the community was 98.2% occupied with average rent per unit of $990.

 

 

•

Subsequent to quarter end, on July 11, 2019, IRT acquired a 264-unit community in Tampa, FL for $48.0 million. At the time of acquisition, the community was 95.5% occupied with average rent per unit of $1,313.

 

Dispositions:

 

•

On April 30, 2019, IRT sold a 370-unit community located outside of Chicago, Illinois for $42.0 million. Associated with this disposition, IRT repaid the property mortgage totaling $18.9 million and recorded a gain on sale of $12.1 million.

 

 

•

Subsequent to quarter end, on July 18, 2019, IRT completed the sale of the two communities in Little Rock, AR held for sale as of June 30, 2019 for a combined total of $56.5 million. Associated with this disposition, IRT repaid the property mortgages totaling $34.8 million.

 

6

At-the-Market Offering

During the second quarter of 2019, IRT issued 65,704 shares of common stock under its at-the-market sales program at a weighted average per share price of $12.09, yielding net proceeds of approximately $0.8 million.

 

Capital Expenditures

For the three months ended June 30, 2019, recurring capital expenditures for the total portfolio were $1.9 million, or $123 per unit. For the six months ended June 30, 2019 recurring capital expenditures for the total portfolio were $3.8 million or $239 per unit.

 

Distributions

On June 17, 2019, IRT’s Board of Directors declared a quarterly cash dividend for the second quarter of 2019 of $0.18 per share of IRT common stock, payable on July 25, 2019 to stockholders of record on June 28, 2019.

 

2019 EPS and CFFO Guidance 

IRT is updating its 2019 full year guidance. EPS per diluted share is projected to be in a range of $0.65 to $0.70. CFFO per diluted share, a non-GAAP financial measure, is projected to be in the range of $0.75 to $0.78. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. Also included below are the primary assumptions underlying these estimates. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s rationale for the usefulness of CFFO.  

 

 

Previous Guidance

Current Guidance

2019 Full Year EPS and CFFO Guidance (1)(2) 

Low 

High 

Low 

High 

Earnings per share 

$0.76

$0.80

$0.65

$0.70 

Adjustments: 

 

 

 

 

Depreciation and amortization 

0.43

0.47

0.55 

0.57 

Gains on sale of assets 

(0.51)

(0.55)

(0.51) 

(0.55) 

Share base compensation 

0.04

0.04

0.04 

0.04 

Amortization of deferred financing fees 

0.02

0.02

0.02 

0.02 

CORE FFO per share allocated to common shareholders 

$0.74

$0.78

$0.75 

$0.78 

 

 

1.

This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2019 EPS and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” below.  

 

2.

Per share guidance is based on weighted average shares and units outstanding of 90.5 million.  

 

 

Same Store Communities 

Previous 2019 Outlook

Current 2019 Outlook 

Number of properties/units 

50 properties / 13,697 units 

50 properties / 13,697 units 

Property revenue growth 

4.0% to 6.0%

5.0% to 6.0% 

Controllable property operating expense growth 

2.5% to 3.5%

0.5% to 1.50% 

Real estate tax and insurance expense increase (1) 

6.0% to 12.0%

8.0% to 10.0% 

Total property operating expense growth 

4.0% to 6.0%

4.0% to 5.0%  

Same store property NOI growth 

3.5% to 5.5%

6.0% to 7.0% 

 

 

 

Corporate Expenses 

 

 

General and administrative expenses  

(excluding stock based compensation) 

$9.0 to $10.0 million

$9.5 to $10.0 million 

 

 

 

Transaction/Investment Volume 

 

 

Acquisition volume (2) 

$30.0 to $110.0 million

$76.0 to $110.0 million

Disposition volume (3) 

$100.0 to $180.0 million

$98.5 to $180.0 million 

 

 

 

Capital Expenditures 

 

 

Recurring 

$8.0 to $9.0 million

$7.50 to $8.25 million 

7

Value add & non-recurring 

$30.0 to $38.0 million

$30.0 to $35.0 million 

 

 

1.

In 2019, IRT is expecting increases in real estate tax expense at several recently acquired communities that are new to the same store portfolio. IRT’s underwriting contemplates tax increases due to re-assessments, however, the ultimate timing is difficult to predict.  

 

2.

Acquisition volume includes the April and July 2019 acquisitions totaling $76.0 million, plus potential additional capital recycling acquisitions in 2019.  

 

3.

Disposition volume includes the April and July 2019 dispositions totaling $98.5 million, plus potential additional capital recycling dispositions in 2019.  

 

Selected Financial Information

See the schedules at the end of this earnings release for selected financial information for IRT.

 

Non-GAAP Financial Measures and Definitions

IRT discloses the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA.  Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of IRT’s reported net income to its FFO and CFFO, a reconciliation of IRT’s same store NOI to its reported net income, a reconciliation of IRT’s Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.

 

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, August 1, 2019 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.844.775.2542, access code 6379256. 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 Thursday, August 8, 2019 by dialing 1.855.859.2056, access code 6379256.

 

Supplemental Information

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.

 

About Independence Realty Trust, Inc.

Independence Realty Trust (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Louisville, Memphis, 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. More information may be found on the Company’s website at www.irtliving.com.

 


8

Forward-Looking Statements

This press 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 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 forward-looking statements involve significant risks, uncertainties and contingencies, many of which are not within IRT’s control, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such statements. These forward-looking statements are based upon the current judgements and expectations of IRT’s management.  Risks and uncertainties that might cause IRT’s actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: adverse changes in national, regional and local economic climates; changes in market demand for rental apartment homes and pricing pressures from competitors that could limit our ability to lease units or increase rents; competition that could adversely affect our ability to acquire additional properties; volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; unexpected changes in the assumptions underlying our 2019 EPS, CFFO and same store NOI growth guidance; delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; risks associated with pursuit of strategic acquisitions, including risks associated with the need to raise additional capital to fund the acquisitions and failure of acquisitions to produce expected returns; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations.  Additional risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements in this press release are discussed in IRT’s filings with the Securities and Exchange Commission (“SEC”), including those under the heading “Risk Factors” in IRT’s most recently filed Annual Report on Form 10-K.  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.  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

Edelman Financial Communications & Capital Markets

Ted McHugh and Lauren Tarola

212.277.4322

IRT@edelman.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

FINANCIAL & OPERATING HIGHLIGHTS

Dollars in thousands, except share and per share data

 

 

For the Three Months Ended

 

 

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

 

Selected Financial Information:

 

 

 

 

 

 

 

 

 

 

 

Operating Statistics:

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shares

 

$14,709

 

$2,540

 

$14,580

 

$4,787

 

$3,509

 

Earnings (loss) per share -- diluted

 

$0.16

 

$0.03

 

$0.16

 

$0.05

 

$0.04

 

Rental and other property revenue

 

$50,848

 

$49,465

 

$49,718

 

$48,644

 

$46,734

 

Property operating expenses

 

$20,072

 

$19,886

 

$19,450

 

$19,792

 

$18,703

 

Net operating income

 

$30,776

 

$29,579

 

$30,268

 

$28,852

 

$28,031

 

NOI margin

 

60.5%

 

59.8%

 

60.9%

 

59.3%

 

60.0%

 

Adjusted EBITDA

 

$25,284

 

$24,734

 

$25,653

 

$24,748

 

$23,722

 

FFO per share

 

$0.15

 

$0.17

 

$0.16

 

$0.18

 

$0.17

 

CORE FFO per share

 

$0.19

 

$0.18

 

$0.19

 

$0.19

 

$0.19

 

Dividends per share

 

$0.18

 

$0.18

 

$0.18

 

$0.18

 

$0.18

 

CORE FFO payout ratio

 

94.7%

 

100.0%

 

94.7%

 

94.7%

 

94.7%

 

Portfolio Data:

 

 

 

 

 

 

 

 

 

 

 

Total gross assets

 

$1,817,207

 

$1,807,955

 

$1,798,736

 

$1,782,186

 

$1,706,465

 

Total number of properties

 

58

 

58

 

58

 

58

 

56

 

Total units

 

15,734

 

15,880

 

15,880

 

15,860

 

15,280

 

Period end occupancy

 

94.0%

 

93.9%

 

92.5%

 

92.3%

 

93.8%

 

Total portfolio average occupancy

 

94.4%

 

92.9%

 

92.3%

 

93.5%

 

94.1%

 

Total portfolio average effective monthly rent, per

   unit

 

$1,058

 

$1,042

 

$1,035

 

$1,024

 

$1,009

 

Same store period end occupancy (a)

 

93.8%

 

93.6%

 

92.0%

 

92.2%

 

93.6%

 

Same store portfolio average occupancy (a)

 

94.1%

 

92.5%

 

92.0%

 

93.4%

 

94.0%

 

Same store portfolio average effective monthly rent,

   per unit (a)

 

$1,062

 

$1,044

 

$1,039

 

$1,025

 

$1,008

 

Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$989,499

 

$990,920

 

$985,488

 

$963,238

 

$911,772

 

Common share price, period end

 

$11.57

 

$10.79

 

$9.18

 

$10.53

 

$10.31

 

Market equity capitalization

 

$1,050,712

 

$978,825

 

$826,802

 

$945,615

 

$906,696

 

Total market capitalization

 

$2,040,211

 

$1,969,745

 

$1,812,290

 

$1,908,853

 

$1,818,468

 

Total debt/total gross assets

 

54.5%

 

54.8%

 

54.8%

 

54.0%

 

53.4%

 

Net debt to Adjusted EBITDA (pro forma) (b)

 

9.2x

 

9.2x

 

9.2x

 

9.3x

 

9.4x

 

Interest coverage

 

2.6x

 

2.5x

 

2.6x

 

2.7x

 

2.8x

 

Common shares and OP Units:

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

89,932,418

 

89,834,793

 

89,184,443

 

88,920,879

 

87,044,121

 

OP units outstanding

 

881,107

 

881,107

 

881,107

 

881,107

 

899,215

 

Common shares and OP units outstanding

 

90,813,525

 

90,715,900

 

90,065,550

 

89,801,986

 

87,943,336

 

Weighted average common shares and units

 

90,394,212

 

89,870,556

 

89,532,373

 

88,585,940

 

87,543,931

 

 

(a)

Same store portfolio consists of 50 properties, which represent 13,697 units.

 

(b)

Reflects pro forma net debt to adjusted EBITDA for each period presented, which includes adjustments for the timing of acquisitions, the full quarter effect of current value add initiatives, and the completion of the 2018 capital recycling activities including paydown of associated indebtedness. Actual net debt to Adjusted EBITDA for the five quarters ended June 30, 2019 was 9.7x, 9.9x, 9.5x, 9.7x, and 9.5x, respectively.

 

 

 

10

BALANCE SHEETS

Dollars in thousands, except per share data

 

 

 

As of

 

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Assets:

 

 

 

 

 

 

 

 

 

 

Investments in real estate at cost

 

$1,704,769

 

$1,669,875

 

$1,660,423

 

$1,572,015

 

$1,496,591

Less: accumulated depreciation

 

(136,488)

 

(124,107)

 

(112,270)

 

(101,589)

 

(91,426)

Investments in real estate, net

 

1,568,281

 

1,545,768

 

1,548,153

 

1,470,426

 

1,405,165

Real estate held for sale

 

50,494

 

77,430

 

77,285

 

141,853

 

141,132

Cash and cash equivalents

 

11,060

 

9,030

 

9,316

 

7,645

 

10,896

Restricted cash

 

7,780

 

7,122

 

6,729

 

8,265

 

7,051

Other assets

 

16,364

 

10,984

 

8,802

 

6,924

 

6,712

Derivative assets

 

1,558

 

5,327

 

8,307

 

12,440

 

11,755

Intangible assets, net

 

210

 

188

 

744

 

555

 

406

Total assets

 

$1,655,747

 

$1,655,849

 

$1,659,336

 

$1,648,108

 

$1,583,117

Liabilities and Equity:

 

 

 

 

 

 

 

 

 

 

Indebtedness, net

 

$989,499

 

$990,920

 

$985,488

 

$963,238

 

$911,772

Accounts payable and accrued expenses

 

26,374

 

22,092

 

22,815

 

28,477

 

24,173

Accrued interest payable

 

691

 

681

 

719

 

540

 

423

Dividends payable

 

16,285

 

16,267

 

16,162

 

16,113

 

15,922

Derivative liabilities

 

7,394

 

1,460

 

—

 

—

 

—

Other liabilities

 

7,595

 

7,355

 

4,107

 

3,697

 

3,520

Total liabilities

 

1,047,838

 

1,038,775

 

1,029,291

 

1,012,065

 

955,810

Equity:

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred shares, $0.01 par value per share

 

—

 

—

 

—

 

—

 

—

Common shares, $0.01 par value per share

 

899

 

898

 

892

 

889

 

870

Additional paid in capital

 

749,552

 

747,731

 

742,429

 

739,152

 

719,656

Accumulated other comprehensive income (loss)

 

(11,769)

 

(2,308)

 

2,016

 

9,788

 

9,103

Retained earnings (deficit)

 

(137,539)

 

(136,120)

 

(122,342)

 

(120,924)

 

(109,762)

Total shareholders' equity

 

601,143

 

610,201

 

622,995

 

628,905

 

619,867

Noncontrolling Interests

 

6,766

 

6,873

 

7,050

 

7,138

 

7,440

Total equity

 

607,909

 

617,074

 

630,045

 

636,043

 

627,307

Total liabilities and equity

 

$1,655,747

 

$1,655,849

 

$1,659,336

 

$1,648,108

 

$1,583,117

 

11

STATEMENTS OF OPERATIONS, FFO & CORE FFO

TRAILING 5 QUARTERS

Dollars in thousands, except per share data

 

 

For the Three Months Ended

 

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Revenue:

 

 

 

 

 

 

 

 

 

 

Rental and other property revenue

 

$50,848

 

$49,465

 

$49,718

 

$48,644

 

$46,734

Other revenue

 

108

 

75

 

91

 

135

 

155

Total revenue

 

50,956

 

49,540

 

49,809

 

48,779

 

46,889

Expenses:

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

20,072

 

19,886

 

19,450

 

19,792

 

18,703

Property management expenses

 

2,062

 

1,813

 

2,027

 

1,661

 

1,592

General and administrative expenses

 

3,538

 

3,107

 

2,633

 

2,578

 

2,872

Depreciation and amortization expense

 

12,721

 

12,447

 

11,631

 

10,783

 

11,583

Casualty related costs

 

—

 

—

 

46

 

—

 

—

Total expenses

 

38,393

 

37,253

 

35,787

 

34,814

 

34,750

Interest expense

 

(9,849)

 

(9,721)

 

(9,943)

 

(9,129)

 

(8,594)

Net gains (losses) on sale of assets

 

12,142

 

—

 

10,650

 

—

 

—

Net income (loss)

 

14,856

 

2,566

 

14,729

 

4,836

 

3,545

(Income) loss allocated to noncontrolling interests

 

(147)

 

(26)

 

(149)

 

(49)

 

(36)

Net income (loss) available to common shares

 

$14,709

 

$2,540

 

$14,580

 

$4,787

 

$3,509

EPS - basic

 

$0.16

 

$0.03

 

$0.16

 

$0.05

 

$0.04

Weighted-average shares outstanding - Basic

 

89,513,105

 

88,989,450

 

88,651,266

 

87,702,078

 

86,644,716

EPS - diluted

 

$0.16

 

$0.03

 

$0.16

 

$0.05

 

$0.04

Weighted-average shares outstanding - Diluted

 

90,019,909

 

89,516,224

 

89,032,952

 

88,046,311

 

86,908,978

Funds From Operations (FFO):

 

 

 

 

 

 

 

 

 

 

Net Income (loss)

 

$14,856

 

$2,566

 

$14,729

 

$4,836

 

$3,545

Add-Back (Deduct):

 

 

 

 

 

 

 

 

 

 

Real estate depreciation and amortization

 

12,675

 

12,318

 

11,577

 

10,738

 

11,550

Net (gains) losses on sale of assets excluding debt extinguishment costs

 

(14,171)

 

—

 

(11,561)

 

—

 

—

FFO

 

$13,360

 

$14,884

 

$14,745

 

$15,574

 

$15,095

FFO per share

 

$0.15

 

$0.17

 

$0.16

 

$0.18

 

$0.17

CORE Funds From Operations (CFFO):

 

 

 

 

 

 

 

 

 

 

FFO

 

$13,360

 

$14,884

 

$14,745

 

$15,574

 

$15,095

Add-Back (Deduct):

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

1,086

 

622

 

558

 

563

 

933

Amortization of deferred financing costs

 

362

 

339

 

352

 

309

 

325

Other depreciation and amortization

 

46

 

129

 

54

 

45

 

33

Debt extinguishment costs included in net gains (losses) on sale of assets

 

2,029

 

—

 

911

 

—

 

—

CFFO

 

$16,883

 

$15,974

 

$16,620

 

$16,491

 

$16,386

CFFO per share

 

$0.19

 

$0.18

 

$0.19

 

$0.19

 

$0.19

Weighted-average shares and units outstanding

 

90,394,212

 

89,870,556

 

89,532,373

 

88,585,940

 

87,543,931

12

STATEMENTS OF OPERATIONS, FFO & CORE FFO

THREE and SIX MONTHS ENDED JUNE 30, 2019 and 2018

Dollars in thousands, except per share data

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2019

 

2018

 

2019

 

2018

Revenue:

 

 

 

 

 

 

 

 

Rental and other property revenue

 

$50,848

 

$46,734

 

$100,313

 

$92,350

Other revenue

 

108

 

155

 

183

 

294

Total revenue

 

50,956

 

46,889

 

100,496

 

92,644

Expenses:

 

 

 

 

 

 

 

 

Property operating expenses

 

20,072

 

18,703

 

39,958

 

37,121

Property management expenses

 

2,062

 

1,592

 

3,875

 

3,275

General and administrative expenses

 

3,538

 

2,872

 

6,645

 

5,606

Depreciation and amortization expense

 

12,721

 

11,583

 

25,168

 

22,807

Total expenses

 

38,393

 

34,750

 

75,646

 

68,809

Interest expense

 

(9,849)

 

(8,594)

 

(19,570)

 

(16,934)

Other income (expense)

 

—

 

—

 

—

 

144

Net gains (losses) on sale of assets

 

12,142

 

—

 

12,142

 

—

Net income (loss)

 

14,856

 

3,545

 

17,422

 

7,045

(Income) loss allocated to noncontrolling interests

 

(147)

 

(36)

 

(173)

 

(124)

Net income (loss) available to common shares

 

$14,709

 

$3,509

 

$17,249

 

$6,921

EPS - basic

 

$0.16

 

$0.04

 

$0.19

 

$0.08

Weighted-average shares outstanding - Basic

 

89,513,105

 

86,644,716

 

89,252,724

 

85,978,431

EPS - diluted

 

$0.16

 

$0.04

 

$0.19

 

$0.08

Weighted-average shares outstanding - Diluted

 

90,019,909

 

86,908,978

 

89,902,637

 

86,208,502

 

 

 

 

 

 

 

 

 

Funds From Operations (FFO):

 

 

 

 

 

 

 

 

Net Income (loss)

 

$14,856

 

$3,545

 

$17,422

 

$7,045

Adjustments:

 

 

 

 

 

 

 

 

Real estate depreciation and amortization

 

12,675

 

11,550

 

24,993

 

22,751

Net (gains) losses on sale of assets excluding debt extinguishment costs

 

(14,171)

 

—

 

(14,171)

 

—

Funds From Operations

 

$13,360

 

$15,095

 

$28,244

 

$29,796

FFO per share

 

$0.15

 

$0.17

 

$0.31

 

$0.34

Core Funds From Operations (CFFO):

 

 

 

 

 

 

 

 

Funds From Operations

 

$13,360

 

$15,095

 

$28,244

 

$29,796

Adjustments:

 

 

 

 

 

 

 

 

Stock compensation expense

 

1,086

 

933

 

1,708

 

1,403

Amortization of deferred financing costs

 

362

 

325

 

701

 

769

Other depreciation and amortization

 

46

 

33

 

175

 

56

Other expense (income)

 

—

 

—

 

—

 

(52)

Debt extinguishment costs included in net gains (losses) on sale of assets

 

2,029

 

—

 

2,029

 

—

Core Funds From Operations

 

$16,883

 

$16,386

 

$32,857

 

$31,972

CFFO per share

 

$0.19

 

$0.19

 

$0.36

 

$0.37

Weighted-average shares and units outstanding

 

90,394,212

 

87,543,931

 

90,133,830

 

87,506,300

13

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO

Dollars in thousands

 

 

 

Three Months Ended

 

ADJUSTED EBITDA:

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

 

Net income (loss)

 

$14,856

 

$2,566

 

$14,729

 

$4,836

 

$3,545

 

Add-Back (Deduct):

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

12,721

 

12,447

 

11,631

 

10,783

 

11,583

 

Interest expense

 

9,849

 

9,721

 

9,943

 

9,129

 

8,594

 

Net (gains) losses on sale of assets

 

(12,142)

 

—

 

(10,650)

 

—

 

—

 

Adjusted EBITDA

 

$25,284

 

$24,734

 

$25,653

 

$24,748

 

$23,722

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST COST:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$9,849

 

$9,721

 

$9,943

 

$9,129

 

$8,594

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST COVERAGE:

 

2.6x

 

2.5x

 

2.6x

 

2.7x

 

2.8x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

ADJUSTED EBITDA:

 

2019

 

2018

 

2019

 

2018

Net income (loss)

 

$14,856

 

$3,545

 

$17,422

 

$7,045

Add-Back (Deduct):

 

 

 

 

 

 

 

 

Depreciation and amortization

 

12,721

 

11,583

 

25,168

 

22,807

Interest expense

 

9,849

 

8,594

 

19,570

 

16,934

Other (income) expense

 

—

 

—

 

—

 

(52)

Net (gains) losses on sale of assets

 

(12,142)

 

—

 

(12,142)

 

—

Adjusted EBITDA

 

$25,284

 

$23,722

 

$50,018

 

$46,734

 

 

 

 

 

 

 

 

 

INTEREST COST:

 

 

 

 

 

 

 

 

Interest expense

 

$9,849

 

$8,594

 

$19,570

 

$16,934

 

 

 

 

 

 

 

 

 

INTEREST COVERAGE:

 

2.6x

 

2.8x

 

2.6x

 

2.8x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

SAME STORE PORTFOLIO NET OPERATING INCOME

TRAILING 5 QUARTERS

Dollars in thousands, except per unit data

 

 

 

For the Three-Months Ended (a)

 

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Revenue:

 

 

 

 

 

 

 

 

 

 

Rental and other property revenue

 

$44,255

 

$42,663

 

$41,803

 

$42,132

 

$41,986

Property Operating Expenses:

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

5,638

 

5,669

 

5,459

 

4,978

 

5,127

Property insurance

 

859

 

854

 

835

 

839

 

888

Personnel expenses

 

4,190

 

4,027

 

4,027

 

4,282

 

4,200

Utilities

 

2,699

 

2,764

 

2,684

 

2,712

 

2,586

Repairs and maintenance

 

1,823

 

1,312

 

1,101

 

1,754

 

1,608

Contract services

 

1,207

 

1,186

 

1,174

 

1,238

 

1,325

Advertising expenses

 

498

 

445

 

388

 

477

 

461

Other expenses

 

606

 

629

 

442

 

785

 

792

Total property operating expenses

 

17,520

 

16,886

 

16,110

 

17,065

 

16,987

Same-store net operating income (a)

 

$26,735

 

$25,777

 

$25,693

 

$25,067

 

$24,999

Same-store NOI margin

 

60.4%

 

60.4%

 

61.5%

 

59.5%

 

59.5%

Average occupancy

 

94.1%

 

92.5%

 

92.0%

 

93.4%

 

94.0%

Average effective monthly rent, per unit

 

$1,062

 

$1,044

 

$1,039

 

$1,025

 

$1,008

Reconciliation of same-store net operating

   income to net income (loss)

 

 

 

 

 

 

 

 

 

 

Same-store net operating income

 

$26,735

 

$25,777

 

$25,693

 

$25,067

 

$24,999

Non same-store net operating income

 

4,041

 

3,802

 

4,575

 

3,785

 

3,032

Other revenue

 

108

 

75

 

91

 

135

 

155

Property management expenses

 

(2,062)

 

(1,813)

 

(2,027)

 

(1,661)

 

(1,592)

General and administrative expenses

 

(3,538)

 

(3,107)

 

(2,633)

 

(2,578)

 

(2,872)

Depreciation and amortization expense

 

(12,721)

 

(12,447)

 

(11,631)

 

(10,783)

 

(11,583)

Casualty related costs

 

—

 

—

 

(46)

 

—

 

—

Interest expense

 

(9,849)

 

(9,721)

 

(9,943)

 

(9,129)

 

(8,594)

Net gains (losses) on sale of assets

 

12,142

 

—

 

10,650

 

—

 

—

Net income (loss)

 

$14,856

 

$2,566

 

$14,729

 

$4,836

 

$3,545

 

(a)

Same store portfolio consists of 50 properties, which represent 13,697 units.

15

SAME STORE PORTFOLIO NET OPERATING INCOME

THREE and SIX MONTHS ENDED JUNE 30, 2019 and 2018

Dollars in thousands, except per unit data

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Rental and other property revenue

 

$44,255

 

$41,986

 

5.4%

 

$86,918

 

$82,989

 

4.7%

Property Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

5,638

 

5,127

 

10.0%

 

11,307

 

10,303

 

9.7%

Property insurance

 

859

 

888

 

-3.3%

 

1,713

 

1,844

 

-7.1%

Personnel expenses

 

4,190

 

4,200

 

-0.2%

 

8,217

 

8,170

 

0.6%

Utilities

 

2,699

 

2,586

 

4.4%

 

5,463

 

5,360

 

1.9%

Repairs and maintenance

 

1,823

 

1,608

 

13.4%

 

3,135

 

2,722

 

15.2%

Contract services

 

1,207

 

1,325

 

-8.9%

 

2,393

 

2,528

 

-5.3%

Advertising expenses

 

498

 

461

 

8.0%

 

943

 

937

 

0.6%

Other expenses

 

606

 

792

 

-23.5%

 

1,235

 

1,595

 

-22.6%

Total property operating expenses

 

17,520

 

16,987

 

3.1%

 

34,406

 

33,459

 

2.8%

Same-store net operating income (a)

 

$26,735

 

$24,999

 

6.9%

 

$52,512

 

$49,530

 

6.0%

Same-store NOI margin

 

60.4%

 

59.5%

 

0.9%

 

60.4%

 

59.7%

 

0.7%

Average occupancy

 

94.1%

 

94.0%

 

0.1%

 

93.3%

 

93.8%

 

-0.5%

Average effective monthly rent, per unit

 

$1,062

 

$1,008

 

5.3%

 

$1,053

 

$1,004

 

4.8%

Reconciliation of same-store net operating

   income to net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Same-store portfolio net operating income

 

$26,735

 

$24,999

 

 

 

$52,512

 

$49,530

 

 

Non same-store net operating income

 

4,041

 

3,032

 

 

 

7,843

 

5,699

 

 

Other revenue

 

108

 

155

 

 

 

183

 

294

 

 

Property management expenses

 

(2,062)

 

(1,592)

 

 

 

(3,875)

 

(3,275)

 

 

General and administrative expenses

 

(3,538)

 

(2,872)

 

 

 

(6,645)

 

(5,606)

 

 

Depreciation and amortization expense

 

(12,721)

 

(11,583)

 

 

 

(25,168)

 

(22,807)

 

 

Interest expense

 

(9,849)

 

(8,594)

 

 

 

(19,570)

 

(16,934)

 

 

Other income (expense)

 

—

 

—

 

 

 

—

 

144

 

 

Net gains (losses) on sale of assets

 

12,142

 

—

 

 

 

12,142

 

—

 

 

Net income (loss)

 

$14,856

 

$3,545

 

 

 

$17,422

 

$7,045

 

 

 

 

(a)

Same store portfolio consists of 50 properties, which represent 13,697 units.

 

16

NET OPERATING INCOME (NOI) BRIDGE

TRAILING 5 QUARTERS

Dollars in thousands

 

 

For the Three-Months Ended

 

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Rental and other property revenue

 

 

 

 

 

 

 

 

 

 

Same store (a)

 

$44,255

 

$42,663

 

$41,803

 

$42,132

 

$41,986

Non same-store

 

6,593

 

6,802

 

7,556

 

6,276

 

4,863

Total rental and other property revenue (b)

 

50,848

 

49,465

 

49,359

 

48,408

 

46,849

Property operating expenses

 

 

 

 

 

 

 

 

 

 

Same store (a)

 

17,520

 

16,886

 

16,110

 

17,065

 

16,987

Non same-store

 

2,552

 

3,000

 

2,981

 

2,491

 

1,831

Total property operating expenses (b)

 

20,072

 

19,886

 

19,091

 

19,556

 

18,818

Net operating income

 

 

 

 

 

 

 

 

 

 

Same-store (a)

 

26,735

 

25,777

 

25,693

 

25,067

 

24,999

Non same-store

 

4,041

 

3,802

 

4,575

 

3,785

 

3,032

Total property net operating income

 

$30,776

 

$29,579

 

$30,268

 

$28,852

 

$28,031

Reconciliation of NOI to net income (loss)

 

 

 

 

 

 

 

 

 

 

Total property net operating income

 

$30,776

 

$29,579

 

$30,268

 

$28,852

 

$28,031

Other revenue

 

108

 

75

 

91

 

135

 

155

Property management expenses

 

(2,062)

 

(1,813)

 

(2,027)

 

(1,661)

 

(1,592)

General and administrative expenses

 

(3,538)

 

(3,107)

 

(2,633)

 

(2,578)

 

(2,872)

Depreciation and amortization expense

 

(12,721)

 

(12,447)

 

(11,631)

 

(10,783)

 

(11,583)

Interest expense

 

(9,849)

 

(9,721)

 

(9,943)

 

(9,129)

 

(8,594)

Casualty related costs

 

—

 

—

 

(46)

 

—

 

—

Net gains (losses) on sale of assets

 

12,142

 

—

 

10,650

 

—

 

—

Net income (loss)

 

$14,856

 

$2,566

 

$14,729

 

$4,836

 

$3,545

 

(a)

Same store portfolio consists of 50 properties, which represent 13,697 units.

 

(b)

Effective January 1, 2019, in connection with the adoption of ASC 842 “Leases”, IRT began recording uncollectible rent revenue as an adjustment to rental and other property revenue whereas it was previously recorded within property operating expenses. The presentation in accordance with ASC 842 is prospective for periods ending after January 1, 2019, not retrospective for all periods presented.  For purposes of same store comparability only, IRT has adjusted prior periods within the table above and all same store NOI tables to be consistent with this current presentation.  The amounts reclassified from property operating expenses to rental and other property revenue for the last three quarters in the year ended December 31, 2018, were $359, $236, and ($115), respectively.  

17

 

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

THREE MONTHS ENDED JUNE 30, 2019 and 2018

Dollars in thousands, except rent per unit

 

 

 

 

 

 

Rental and Other Property Revenue

 

Property Operating Expenses

 

Net Operating Income

 

Average Occupancy

 

Average

Effective

Monthly Rent

per Unit

Market

 

Number of Properties

 

Units

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Atlanta, GA

 

4

 

1,536

 

$5,419

 

$4,943

 

9.6%

 

$2,000

 

$1,722

 

16.1%

 

$3,419

 

$3,221

 

6.1%

 

94.7%

 

93.0%

 

1.6%

 

$1,181

 

$1,092

 

8.2%

Louisville, KY

 

6

 

1,710

 

5,149

 

4,904

 

5.0%

 

1,995

 

2,077

 

-3.9%

 

3,154

 

2,827

 

11.6%

 

91.7%

 

91.7%

 

0.0%

 

986

 

951

 

3.7%

Raleigh - Durham, NC

 

5

 

1,372

 

4,937

 

4,490

 

10.0%

 

1,866

 

1,777

 

5.0%

 

3,071

 

2,713

 

13.2%

 

95.1%

 

91.1%

 

4.1%

 

1,166

 

1,101

 

6.0%

Memphis, TN

 

4

 

1,383

 

4,623

 

4,455

 

3.8%

 

1,738

 

1,862

 

-6.7%

 

2,885

 

2,593

 

11.3%

 

92.9%

 

96.7%

 

-3.8%

 

1,118

 

1,027

 

8.8%

Oklahoma City, OK

 

5

 

1,658

 

3,416

 

3,272

 

4.4%

 

1,410

 

1,412

 

-0.1%

 

2,006

 

1,860

 

7.8%

 

95.7%

 

94.8%

 

0.9%

 

667

 

645

 

3.4%

Columbus, OH

 

4

 

1,080

 

3,183

 

3,057

 

4.1%

 

1,378

 

1,302

 

5.8%

 

1,805

 

1,755

 

2.8%

 

90.8%

 

95.0%

 

-4.2%

 

1,011

 

944

 

7.0%

Indianapolis, IN

 

4

 

916

 

2,815

 

2,701

 

4.2%

 

1,126

 

1,119

 

0.6%

 

1,689

 

1,582

 

6.8%

 

95.9%

 

95.3%

 

0.6%

 

992

 

951

 

4.3%

Dallas, TX

 

3

 

734

 

2,689

 

2,637

 

2.0%

 

1,139

 

1,054

 

8.1%

 

1,550

 

1,583

 

-2.1%

 

96.2%

 

96.5%

 

-0.3%

 

1,186

 

1,161

 

2.2%

Myrtle Beach, SC - Wilmington, NC

 

3

 

628

 

1,963

 

1,767

 

11.1%

 

651

 

598

 

8.9%

 

1,312

 

1,169

 

12.2%

 

95.3%

 

96.4%

 

-1.2%

 

1,014

 

901

 

12.5%

Charleston, SC

 

2

 

518

 

2,119

 

2,087

 

1.5%

 

1,025

 

946

 

8.4%

 

1,094

 

1,141

 

-4.1%

 

95.2%

 

94.9%

 

0.4%

 

1,297

 

1,302

 

-0.4%

Orlando, FL

 

1

 

297

 

1,323

 

1,273

 

3.9%

 

494

 

452

 

9.3%

 

829

 

821

 

1.0%

 

96.6%

 

95.2%

 

1.4%

 

1,466

 

1,422

 

3.1%

Charlotte, NC

 

1

 

208

 

1,035

 

938

 

10.3%

 

358

 

332

 

7.8%

 

677

 

606

 

11.7%

 

96.9%

 

93.8%

 

3.2%

 

1,549

 

1,432

 

8.2%

Austin, TX

 

1

 

300

 

1,191

 

1,198

 

-0.6%

 

558

 

533

 

4.7%

 

633

 

665

 

-4.8%

 

95.9%

 

96.7%

 

-0.8%

 

1,298

 

1,279

 

1.5%

Asheville, NC

 

1

 

252

 

869

 

829

 

4.8%

 

286

 

300

 

-4.7%

 

583

 

529

 

10.2%

 

97.4%

 

96.6%

 

0.9%

 

1,128

 

1,080

 

4.5%

Tampa-St. Petersburg, FL

 

1

 

216

 

822

 

790

 

4.1%

 

326

 

320

 

1.9%

 

496

 

470

 

5.5%

 

95.1%

 

92.8%

 

2.3%

 

1,245

 

1,228

 

1.4%

Chattanooga, TN

 

2

 

295

 

868

 

877

 

-1.0%

 

419

 

442

 

-5.2%

 

449

 

435

 

3.2%

 

96.0%

 

96.3%

 

-0.3%

 

973

 

957

 

1.6%

St. Louis, MO

 

1

 

152

 

683

 

718

 

-4.9%

 

246

 

269

 

-8.6%

 

437

 

449

 

-2.7%

 

92.8%

 

96.6%

 

-3.9%

 

1,470

 

1,399

 

5.0%

Huntsville, AL

 

1

 

178

 

542

 

502

 

8.0%

 

199

 

190

 

4.7%

 

343

 

312

 

9.9%

 

98.2%

 

98.6%

 

-0.4%

 

956

 

872

 

9.6%

Baton Rouge, LA

 

1

 

264

 

609

 

548

 

11.1%

 

306

 

280

 

9.3%

 

303

 

268

 

13.1%

 

79.2%

 

72.0%

 

7.2%

 

893

 

889

 

0.4%

Total/Weighted Average

 

50

 

13,697

 

$44,255

 

$41,986

 

5.4%

 

$17,520

 

$16,987

 

3.1%

 

$26,735

 

$24,999

 

6.9%

 

94.1%

 

94.0%

 

0.1%

 

$1,062

 

$1,008

 

5.3%


18

 

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET

SIX MONTHS ENDED JUNE 30, 2019 and 2018

Dollars in thousands, except rent per unit

 

 

 

 

 

 

 

Rental and Other Property Revenue

 

Property Operating Expenses

 

Net Operating Income

 

Average Occupancy

 

Average

Effective

Monthly Rent

per Unit

Market

 

Number of Properties

 

Units

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Atlanta, GA

 

4

 

1,536

 

$10,661

 

$9,815

 

8.6%

 

$3,857

 

$3,383

 

14.0%

 

$6,804

 

$6,432

 

5.8%

 

94.2%

 

94.0%

 

0.1%

 

$1,169

 

$1,082

 

8.1%

Louisville, KY

 

6

 

1,710

 

10,043

 

9,815

 

2.3%

 

3,984

 

4,068

 

-2.1%

 

6,059

 

5,747

 

5.4%

 

90.3%

 

92.1%

 

-1.8%

 

982

 

951

 

3.2%

Raleigh - Durham, NC

 

5

 

1,372

 

9,590

 

9,021

 

6.3%

 

3,628

 

3,495

 

3.8%

 

5,962

 

5,526

 

7.9%

 

93.3%

 

92.1%

 

1.3%

 

1,153

 

1,101

 

4.7%

Memphis, TN

 

4

 

1,383

 

9,091

 

8,769

 

3.7%

 

3,414

 

3,680

 

-7.2%

 

5,677

 

5,089

 

11.6%

 

92.6%

 

96.2%

 

-3.7%

 

1,100

 

1,025

 

7.4%

Oklahoma City, OK

 

5

 

1,658

 

6,748

 

6,407

 

5.3%

 

2,748

 

2,841

 

-3.3%

 

4,000

 

3,566

 

12.2%

 

95.2%

 

94.2%

 

1.0%

 

663

 

642

 

3.4%

Columbus, OH

 

4

 

1,080

 

6,263

 

6,015

 

4.1%

 

2,663

 

2,586

 

3.0%

 

3,600

 

3,429

 

5.0%

 

90.7%

 

95.0%

 

-4.3%

 

1,002

 

939

 

6.7%

Indianapolis, IN

 

4

 

916

 

5,513

 

5,258

 

4.8%

 

2,339

 

2,172

 

7.7%

 

3,174

 

3,086

 

2.9%

 

94.7%

 

94.9%

 

-0.1%

 

986

 

942

 

4.7%

Dallas, TX

 

3

 

734

 

5,351

 

5,204

 

2.8%

 

2,280

 

2,138

 

6.6%

 

3,071

 

3,066

 

0.2%

 

96.4%

 

96.2%

 

0.1%

 

1,182

 

1,153

 

2.5%

Myrtle Beach, SC - Wilmington, NC

 

3

 

628

 

3,793

 

3,393

 

11.8%

 

1,264

 

1,153

 

9.6%

 

2,529

 

2,240

 

12.9%

 

93.9%

 

95.4%

 

-1.5%

 

991

 

885

 

11.9%

Charleston, SC

 

2

 

518

 

4,142

 

4,146

 

-0.1%

 

1,911

 

1,871

 

2.1%

 

2,231

 

2,275

 

-1.9%

 

94.5%

 

94.8%

 

-0.3%

 

1,280

 

1,298

 

-1.4%

Orlando, FL

 

1

 

297

 

2,632

 

2,546

 

3.4%

 

952

 

896

 

6.3%

 

1,680

 

1,650

 

1.8%

 

97.0%

 

96.1%

 

0.9%

 

1,457

 

1,413

 

3.1%

Charlotte, NC

 

1

 

208

 

2,011

 

1,848

 

8.8%

 

717

 

656

 

9.3%

 

1,294

 

1,192

 

8.6%

 

95.2%

 

93.0%

 

2.1%

 

1,530

 

1,434

 

6.7%

Asheville, NC

 

1

 

252

 

1,724

 

1,648

 

4.6%

 

539

 

552

 

-2.4%

 

1,185

 

1,096

 

8.1%

 

97.1%

 

96.5%

 

0.6%

 

1,121

 

1,077

 

4.0%

Austin, TX

 

1

 

300

 

2,324

 

2,338

 

-0.6%

 

1,163

 

1,049

 

10.9%

 

1,161

 

1,289

 

-9.9%

 

94.8%

 

95.4%

 

-0.5%

 

1,287

 

1,277

 

0.7%

Tampa-St. Petersburg, FL

 

1

 

216

 

1,631

 

1,589

 

2.6%

 

645

 

637

 

1.3%

 

986

 

952

 

3.6%

 

94.9%

 

93.4%

 

1.6%

 

1,239

 

1,225

 

1.1%

St. Louis, MO

 

1

 

152

 

1,405

 

1,398

 

0.5%

 

500

 

527

 

-5.1%

 

905

 

871

 

3.9%

 

94.3%

 

94.0%

 

0.3%

 

1,452

 

1,386

 

4.7%

Chattanooga, TN

 

2

 

295

 

1,725

 

1,731

 

-0.3%

 

843

 

851

 

-0.9%

 

882

 

880

 

0.2%

 

95.1%

 

96.3%

 

-1.1%

 

970

 

959

 

1.2%

Huntsville, AL

 

1

 

178

 

1,077

 

992

 

8.6%

 

387

 

383

 

1.0%

 

690

 

609

 

13.3%

 

97.6%

 

97.7%

 

-0.1%

 

944

 

865

 

9.1%

Baton Rouge, LA

 

1

 

264

 

1,194

 

1,056

 

13.1%

 

572

 

521

 

9.8%

 

622

 

535

 

16.3%

 

75.4%

 

65.8%

 

9.6%

 

919

 

901

 

2.0%

Total/Weighted Average

 

50

 

13,697

 

$86,918

 

$82,989

 

4.7%

 

$34,406

 

$33,459

 

2.8%

 

$52,512

 

$49,530

 

6.0%

 

93.3%

 

93.8%

 

-0.5%

 

$1,053

 

$1,004

 

4.8%

 

 

 

 

 

 

19

 

TOTAL PORTFOLIO NOI EXPOSURE BY MARKET

Dollars in thousands, except rent per unit

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2019

Market

 

Number of Properties

 

Units

 

Gross Real

Estate

Assets

 

Period End

Occupancy

 

Average

Effective

Monthly Rent

per Unit

 

Net Operating

Income (b)

 

% of NOI

Atlanta, GA

 

6

 

2,020

 

$251,366

 

94.1%

 

$1,138

 

$4,328

 

14.2%

Louisville, KY

 

6

 

1,710

 

192,621

 

91.6%

 

986

 

3,153

 

10.3%

Raleigh - Durham, NC

 

5

 

1,372

 

189,882

 

95.0%

 

1,166

 

3,071

 

10.1%

Memphis, TN

 

4

 

1,383

 

141,584

 

93.8%

 

1,116

 

2,885

 

9.5%

Columbus, OH

 

6

 

1,547

 

150,838

 

93.7%

 

991

 

2,609

 

8.6%

Oklahoma City, OK

 

5

 

1,658

 

76,958

 

95.1%

 

667

 

2,006

 

6.6%

Indianapolis, IN

 

4

 

916

 

90,712

 

94.3%

 

992

 

1,689

 

5.5%

Tampa-St. Petersburg, FL

 

3

 

840

 

121,908

 

94.2%

 

1,170

 

1,647

 

5.4%

Dallas, TX

 

3

 

734

 

85,279

 

95.6%

 

1,186

 

1,551

 

5.1%

Myrtle Beach, SC - Wilmington, NC

 

3

 

628

 

62,947

 

95.9%

 

1,014

 

1,312

 

4.3%

Charleston, SC

 

2

 

518

 

79,733

 

93.1%

 

1,297

 

1,094

 

3.6%

Little Rock, AR (a)

 

2

 

462

 

55,564

 

94.2%

 

989

 

889

 

2.9%

Orlando, FL

 

1

 

297

 

48,474

 

96.6%

 

1,466

 

829

 

2.7%

Charlotte, NC

 

1

 

208

 

42,108

 

95.7%

 

1,549

 

678

 

2.2%

Austin, TX

 

1

 

300

 

36,048

 

95.0%

 

1,298

 

633

 

2.1%

Asheville, NC

 

1

 

252

 

28,580

 

95.6%

 

1,128

 

583

 

1.9%

Chattanooga, TN

 

2

 

295

 

27,121

 

95.6%

 

973

 

450

 

1.5%

St. Louis, MO

 

1

 

152

 

33,481

 

94.7%

 

1,470

 

437

 

1.4%

Huntsville, AL

 

1

 

178

 

16,402

 

97.8%

 

956

 

343

 

1.1%

Baton Rouge, LA

 

1

 

264

 

28,726

 

81.1%

 

893

 

303

 

1.0%

Total/Weighted Average

 

58

 

15,734

 

$1,760,332

 

94.0%

 

$1,058

 

$30,490

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Market includes two properties which were classified as held for sale as of June 30, 2019 and sold in July 2019.

(b)

Excludes net operating income related to sold properties.


20

VALUE ADD SUMMARY

PROJECT LIFE TO DATE AS OF JUNE 30, 2019

 

 

 

 

 

 

 

Renovation Costs per Unit (b)

 

 

Property

Market

Total

Units To Be Renovated

Units Complete

Units

Leased

Rent Premium (a)

% Rent Increase

Interior

Exterior

Total

ROI - Interior Costs(c)

ROI - Total Costs (d)

 

 

 

 

 

 

 

 

 

 

 

 

Phase 1

 

 

 

 

 

 

 

 

 

 

 

Jamestown

Louisville, KY

356

166

166

$266

31.8%

$17,471

$5,161

$22,632

18.3%

14.1%

The Village at Auburn

Raleigh-Durham, NC

328

253

225

175

17.0%

14,085

2,248

16,333

14.9%

12.8%

Pointe at Canyon Ridge

Atlanta, GA

494

287

272

179

18.7%

8,542

1,802

10,344

25.2%

20.8%

Haverford

Lexington, KY

160

98

102

78

9.2%

5,244

849

6,093

17.8%

15.3%

Crestmont

Atlanta, GA

208

169

161

140

15.1%

12,330

8,963

21,293

13.6%

7.9%

Total/Weighted Average

 

1,546

973

926

$176

19.0%

$11,785

$3,653

$15,438

17.9%

13.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phase 2

 

 

 

 

 

 

 

 

 

 

 

Oxmoor

Louisville, KY

432

167

164

$213

23.9%

$15,357

$202

$15,559

16.7%

16.5%

Brunswick Point

Wilmington, NC

288

139

120

92

9.6%

6,524

170

6,694

17.0%

16.6%

Schirm Farms

Columbus, OH

264

140

134

90

10.5%

7,468

588

8,056

14.5%

13.5%

Kensington Commons

Columbus, OH

264

66

59

168

19.7%

9,577

520

10,097

21.1%

20.0%

Creekside Corners

Atlanta, GA

444

199

173

163

17.4%

8,696

1,325

10,021

22.6%

19.6%

Stonebridge Crossing

Memphis, TN

500

200

176

127

15.2%

8,942

1,069

10,010

17.1%

15.3%

Arbors River Oaks

Memphis, TN

191

66

69

214

18.7%

8,382

632

9,014

30.6%

28.4%

Total/Weighted Average

 

2,383

977

895

$149

16.3%

$9,523

$697

$10,221

18.8%

17.5%

 

 

 

 

 

 

 

 

 

 

 

 

Grand Total/Weighted Average

 

3,929

1,950

1,821

$163

17.7%

$10,673

$1,817

$12,490

18.3%

15.6%

 

 

(a)

The rent change per unit per month reflects the difference between the rental rate on the renovated unit and the market rent for an unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.

 

(b)

Includes all costs to renovate the interior units and make certain exterior renovations, including clubhouses and amenities.  Interior costs per unit are based on units leased.  Exterior costs per unit are based on total units at the community. Excludes internal costs to support and manage the value add program as those costs relate to the entire program and cannot be allocated to individual projects.

 

(c)

Calculated using the rent change per unit per month, multiplied by 12, divided by the interior renovation costs per unit.

 

(d)

Calculated using the rent change per unit per month, multiplied by 12, divided by the total renovation costs per unit.

 

 


21

CAPITAL RECYCLING

Dollars in thousands with respect to Contract Price and Price per Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions to Date 2019

 

Location

 

Units

 

Acquisition Date

 

Contract Price

 

Price per Unit

 

Average Rent Per Unit

North Park

 

Atlanta, GA

 

224

 

April 30, 2019

 

$28,000

 

$125

 

$990

Rocky Creek Apartments (a)

 

Tampa, FL

 

264

 

July 11, 2019

 

$48,000

 

$182

 

$1,313

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

488

 

 

 

$76,000

 

$156

 

$1,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions to Date 2019

 

Location

 

Units

 

Disposition Date

 

Contract Price

 

Price per Unit

 

Average Rent Per Unit

Reserve at Eagle Ridge

 

Chicago, IL

 

370

 

April 30, 2019

 

$42,000

 

$114

 

$1,059

Carrington Park (a)

 

Little Rock, AR

 

202

 

July 18, 2019

 

$26,250

 

$130

 

$1,067

Stonebridge at the Ranch (a)

 

Little Rock, AR

 

260

 

July 18, 2019

 

$30,250

 

$116

 

$927

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

832

 

 

 

$98,500

 

$118

 

$1,020

 

 

(a)

Transaction closed subsequent to June 30, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

DEBT SUMMARY AS OF JUNE 30, 2019

Dollars in thousands

 

 

Amount

 

Weighted Average Rate

 

Type

 

Weighted

Average

Maturity

(in years)

 

Debt:

 

 

 

 

 

 

 

 

 

Unsecured credit facility (a)

 

$130,803

 

3.9%

 

Floating

 

3.9

 

Unsecured term loans (b)

 

300,000

 

4.0%

 

Floating

 

4.8

 

Mortgages

 

564,835

 

3.8%

 

Fixed

 

4.6

 

Unamortized deferred financing costs

 

(6,139)

 

 

 

 

 

 

 

Total Debt

 

989,499

 

3.9%

 

 

 

4.6

 

Market Equity Capitalization, at period end

 

1,050,712

 

 

 

 

 

 

 

Total Capitalization

 

$2,040,212

 

 

 

 

 

 

 

 

(a)

Credit facility total capacity is $350,000, comprised entirely of an unsecured revolving line of credit, of which $130,803 was drawn as of June 30, 2019. The maturity date of borrowings under the revolving line of credit is May 9, 2023.

 

(b)

Comprised of a $200,000 unsecured term loan with a maturity date of January 17, 2024 and a $100,000 unsecured term loan with a maturity date of November 20, 2024.

 

(c)

As of June 30, 2019, IRT maintained a float-to-fixed interest swap with a $150,000 notional amount. This swap, which expires on June 17, 2021 and has a fixed rate of 1.1325%, has converted $150,000 of floating rate debt to fixed rate debt. IRT also maintains: (1) an interest rate collar with a $100,000 notional amount, which expires on November 20, 2024 has a floor of 1.25% and a cap of 2.00%, and (2) an interest rate collar with a $150,000 notional amount, which expires on January 17, 2024, has a floor of 2.25% and a cap of 2.50%. These collars have converted $250,000 of floating rate debt to fixed rate debt when LIBOR is above the cap rate or below the floor rate.  

Encumbered & Unencumbered Statistics

 

 

Total Units

 

% of Total

 

Gross Assets

 

% of Total

 

Q2 2019 NOI

 

% of Total

   Unencumbered assets

 

 

7,957

 

50.6%

 

$834,836

 

45.9%

 

$13,900

 

45.2%

   Encumbered assets

 

 

7,777

 

49.4%

 

982,371

 

54.1%

 

16,876

 

54.8%

 

 

 

15,734

 

100.0%

 

$1,817,207

 

100.0%

 

$30,776

 

100.0%

23

Definitions

Average Effective Monthly Rent per Unit

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

Average Occupancy

Average occupancy represents the average occupied units for the reporting period divided by the average of total units available for rent for the reporting period.

EBITDA and Adjusted EBITDA

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 certain other non-cash or non-operating gains or losses related to items such as acquisition and integration expenses, asset sales, debt extinguishments and acquisition related debt extinguishment expenses. EBITDA and Adjusted EBITDA are each non-GAAP measures.  IRT considers each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or 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.

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

IRT believes that FFO and CFFO, each of which is a non-GAAP financial 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-cash or non-operating gains or losses related to items such as defeasance costs IRT incurs when it sells a property subject to secured debt, asset sales, debt extinguishments, and acquisition related debt extinguishment expenses from the determination of FFO.

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 provide investors with additional useful measures 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

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

24

Net Debt

Net debt, a non-GAAP financial measure, equals total debt less cash and cash equivalents. The following table provides a reconciliation of total debt to net debt (Dollars in thousands).

 

As of

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Total debt

$989,499

 

$990,920

 

$985,488

 

$963,238

 

$911,772

Less: cash and cash equivalents

(11,060)

 

(9,030)

 

(9,316)

 

(7,645)

 

(10,896)

Total net debt

$978,439

 

$981,890

 

$976,172

 

$955,593

 

$900,876

 

 

 

 

 

 

 

 

 

 

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 because IRT may not always be able to use cash to repay debt on a dollar for dollar basis.

Net Operating Income

IRT believes that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful supplemental measure of its operating performance. IRT defines NOI as total property revenues less total property operating expenses, excluding interest expenses, depreciation and amortization, acquisition expenses, property management expenses, and general and administrative expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, IRT’s NOI may not be comparable to other REITs. IRT believes that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income insofar as the measure reflects only operating income and expense at the property level. IRT uses NOI to evaluate performance on a same store and non-same store basis because NOI measures the core operations of property performance by excluding corporate level expenses, financing 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 IRT’s financial performance.

Same Store Properties and Same Store Portfolio

IRT reviews its same store 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

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).

 

As of

 

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

Total assets

$1,655,747

 

$1,655,849

 

$1,659,336

 

$1,648,108

 

$1,583,117

Plus: accumulated depreciation (a)

141,965

 

132,448

 

120,202

 

114,660

 

104,496

Plus: accumulated amortization

19,495

 

19,658

 

19,198

 

19,418

 

18,852

Total gross assets

$1,817,207

 

$1,807,955

 

$1,798,736

 

$1,782,186

 

$1,706,465

 

(a)

Includes previously recognized depreciation on properties that were classified as held-for-sale as of June 30, 2019.