Attached files
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| 8-K - 8-K - INDEPENDENCE REALTY TRUST, INC. | irt-8k_20210210.htm |
| EX-99.1 - EX-99.1 - INDEPENDENCE REALTY TRUST, INC. | irt-ex991_6.htm |
Exhibit 99.2
Talison Row at Daniel Island, South Carolina
EARNINGS RELEASE & SUPPLEMENTAL INFORMATION
Q4 & Full Year 2020
NYSE: IRT
WWW.IRTLIVING.COM
TABLE OF CONTENTS
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Company Information |
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Forward-Looking Statements |
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Earnings Release Text |
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Financial & Operating Highlights |
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Balance Sheets |
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Statements of Operations, FFO & CORE FFO |
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Trailing Five Quarters |
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Three and Twelve Months Ended December 31, 2020 and 2019 |
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Adjusted EBITDA Reconciliations and Coverage Ratio |
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Trailing Five Quarters |
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Three and Twelve Months Ended December 31, 2020 and 2019 |
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Same-Store Portfolio Net Operating Income |
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Trailing Five Quarters |
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Three and Twelve Months Ended December 31, 2020 and 2019 |
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Net Operating Income Bridge |
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Same-Store Portfolio Net Operating Income by Market |
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Three Months Ended December 31, 2020 and 2019 |
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Twelve Months Ended December 31, 2020 and 2019 |
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Total Portfolio NOI Exposure by Market |
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Value Add Summary |
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Capital Recycling Activity |
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Debt Summary |
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Debt Covenant & Unencumbered Asset Statistics |
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Definitions |
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Independence Realty Trust
December 31, 2020
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Dallas, Louisville, Memphis, Raleigh and Tampa. 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 on capital through distributions and capital appreciation. More information may be found on the Company’s website at www.irtliving.com.
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Corporate Headquarters |
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1835 Market Street, Suite 2601 |
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Philadelphia, PA 19103 |
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267.270.4800 |
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Trading Symbol |
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NYSE: “IRT” |
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Investor Relations Contact |
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Edelman Financial Communications & Capital Markets |
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Ted McHugh and Lauren Torres |
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917-365-7979 |
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IRT@edelman.com
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2
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 “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. These forward-looking statements include, without limitation, our expectations with respect to capital allocations, including as to the timing and amount of future dividends. 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 our 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 our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks related to the impact of COVID-19 and other potential future outbreaks of infectious diseases on our financial condition, results of operations, cash flows and performance and those of our residents as well as on the economy and real estate and financial markets; changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; legislative restrictions that may delay or limit collections of past due rents; risks endemic to real estate and the real estate industry generally; the effects of natural and other disasters; 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; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount of the quarterly dividend described in this press release.
3
Independence Realty Trust Announces Fourth Quarter and Full Year 2020 Financial Results
Introduces Full Year 2021 Guidance
PHILADELPHIA – (BUSINESS WIRE) – February 10, 2021 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its fourth quarter and full year 2020 financial results.
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Net income available to common shares of $13.3 million for the quarter ended December 31, 2020 compared to $23.8 million for the quarter ended December 31, 2019. Earnings per diluted share of $0.14 for the quarter ended December 31, 2020 compared to $0.26 for the quarter ended December 31, 2019. The quarter ended December 31, 2020 included $9.4 million of gains on sale of real estate assets, net, whereas the quarter ended December 31, 2019 included $20.7 million of gains on sale of real estate assets, net. |
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Same store net operating income (“NOI”) growth of 4.4% for the quarter ended December 31, 2020 compared to the quarter ended December 31, 2019. |
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Core Funds from Operations (“CFFO”) of $20.8 million for the quarter ended December 31, 2020 compared to $18.6 million for the quarter ended December 31, 2019. CFFO per share was $0.22 for the fourth quarter of 2020, as compared to $0.20 for the fourth quarter of 2019. |
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Adjusted EBITDA of $28.5 million for the quarter ended December 31, 2020 compared to $27.4 million for the quarter ended December 31, 2019. |
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Collected 98.7% of rents billed during the quarter ended December 31, 2020. |
Full Year Highlights
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Since the inception of our value add program in January 2018 through December 31, 2020, IRT has completed renovations at 3,719 units, achieving a weighted average return on investment of 18.3% on interior renovations and 15.9% on total renovation costs. |
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Net income available to common shares of $14.8 million for the year ended December 31, 2020 compared to $45.9 million for the year ended December 31, 2019. Earnings per diluted share of $0.16 for the year ended December 31, 2020 compared to $0.51 for the year ended December 31, 2019. The year ended December 31, 2020 included $7.6 million of gains on sale of real estate assets, net, whereas the year ended December 31, 2019 included $35.2 million of gains on sale of real estate assets, net. |
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Same store net operating income (“NOI”) growth of 3.1% for the year ended December 31, 2020 compared to the year ended December 31, 2019. |
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Core Funds from Operations (“CFFO”) of $75.9 million for the year ended December 31, 2020 compared to $68.5 million for the year ended December 31, 2019. CFFO per share was $0.80 for the full year 2020, as compared to $0.76 for the full year 2019. |
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Adjusted EBITDA of $105.3 million for the year ended December 31, 2020 compared to $103.2 million for the year ended December 31, 2019. |
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Collected 99.3% of rents billed during the year ended December 31, 2020. |
Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP.
4
Management Commentary
“Throughout 2020, the IRT team remained steadfast in our response to the unexpected challenges brought on by the global pandemic. We focused on maintaining occupancy and strengthening our balance sheet while providing payment flexibility to our financially impacted residents. This response supported our ability to deliver strong fourth quarter and full year results,” said Scott Schaeffer, Chairman and CEO of IRT. “We increased same store NOI by 4.4% in the fourth quarter and 3.1% for the full year, led by improvements in both average occupancy rates and rental income. We made advancements in our value add and capital recycling programs, including adding to our portfolio of multifamily communities in non-gateway markets that have yielded favorable business performance throughout various cycles.”
“Based on the successful execution of our key priorities in 2020 to support our residents and employees, maintain occupancy and drive leasing traffic while maintaining ample liquidity, IRT is well-positioned to further grow and strengthen our business for near and long-term success. In 2021, we will continue to focus our efforts on increasing our return on investment at existing properties, assessing investments in new properties that fit our criteria, and rotating capital out of non-core markets with limited growth potential. Our strong balance sheet with $186 million in total liquidity and reduced debt levels at year-end will support our growth strategy, as we continue to deliver value to our stakeholders.”
Same Store Property Operating Results
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Fourth Quarter 2020 Compared to Fourth Quarter 2019(1) |
Full Year 2020 Compared to Full Year 2019 (1) |
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Rental and other property revenue |
5.4% increase |
3.6% increase |
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Property operating expenses |
7.3% increase |
4.5% increase |
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Net operating income (“NOI”) |
4.4% increase |
3.1% increase |
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Portfolio average occupancy |
250 bps increase to 94.9% |
30 bps increase to 93.7% |
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Portfolio average rental rate |
2.6% increase to $1,117 |
3.4% increase to $1,105 |
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NOI Margin |
70 bps decrease to 62.3% |
30 bps decrease to 60.8% |
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(1) |
Same store portfolio for the three and twelve months ended December 31, 2020 includes 51 properties, which represent 14,189 units. |
Same Store Property Operating Results, Excluding Value Add
The same store portfolio results below exclude 16 communities that are both part of the same store portfolio and were actively undergoing Value Add renovations during the three and twelve months ended December 31, 2020.
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Fourth Quarter 2020 Compared to Fourth Quarter 2019(1) |
Full Year 2020 Compared to Full Year 2019 (1) |
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Rental and other property revenue |
3.3% increase |
2.2% increase |
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Property operating expenses |
6.4% increase |
3.0% increase |
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Net operating income (“NOI”) |
1.5% increase |
1.8% increase |
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Portfolio average occupancy |
160 bps increase to 95.4% |
Unchanged at 94.7% |
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Portfolio average rental rate |
1.2% increase to $1,092 |
2.1% increase to $1,086 |
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NOI Margin |
110 bps decrease to 62.5% |
30 bps decrease to 61.0% |
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(1) |
Same store portfolio, excluding value add, for the three and twelve months ended December 31, 2020 includes 35 properties, which represent 9,121 units. |
COVID-19 Metrics (1)(2)
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Rent collections |
4Q 2020 |
4Q 2019 |
3Q 2020 |
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Rent collected for the period presented, as a percentage of rent billed |
98.6% |
99.1% |
99.4% |
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Deferred payment plans: (3) |
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Number of deferred payment plans |
13 |
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3 |
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Amount of monthly rent deferred for period presented |
$61 |
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$55 |
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Amount of monthly rent deferred for the period presented, as a percentage of rent billed |
0.1% |
0.0% |
0.1% |
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Combined rent collected and rent subject to deferred payment plans, as a percentage of rent billed |
98.7% |
99.1% |
99.5% |
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(1) |
Dollar amounts in thousands. All metrics presented are for our total portfolio in the period presented. |
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(2) |
All metrics are based on our internal data, which management uses to monitor property performance on a daily or weekly basis. |
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(3) |
Deferred payment plans allow residents to defer a portion of their monthly rent for one or more months or to repay over time past-due rent which was unpaid due to a COVID-related financial hardship. Residents must provide evidence of hardship and commit to a full 12-month lease term, which allows deferred payments to be repaid over a longer remaining lease term. As of December 31, 2020, there were 229 active deferred payment plans with an aggregate of $175,000 of deferred rent outstanding. |
As a result of the COVID-19 pandemic, we recorded a provision for bad debts of $124,000 and $927,000 for during the fourth quarter and full year of 2020, respectively. The table below presents additional details on the components of bad debt:
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Components of Bad Debt (1) |
4Q 2020 |
4Q 2019 |
3Q 2020 |
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Percentage |
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Percentage |
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Charge-offs, net |
$289 |
0.5% |
$323 |
0.6% |
$260 |
0.5% |
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Provision for bad debt |
124 |
0.3% |
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$80 |
0.1% |
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Net bad debt |
$413 |
0.8% |
$323 |
0.6% |
$340 |
0.6% |
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(1) |
Dollar amounts are in thousands and percentages are as a percentage of total rental and other property income. Bad debt is recorded as a reduction to rental and other property revenue in our consolidated statements of operations. |
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Operating statistics |
January 2021 |
January 2020 |
4Q 2020 |
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Rent collected for the period presented, as a percentage of rent billed |
96.9% |
99.5% |
98.6% |
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Amount of monthly rent deferred for the period presented, as a percentage of rent billed |
0.0% |
0.0% |
0.1% |
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Combined rent collected and rent subject to deferred payment plans, as a percentage of rent billed |
96.9% |
99.5% |
98.7% |
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Total portfolio average occupancy |
95.2% |
92.3% |
95.0% |
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Total portfolio average effective monthly rent per unit |
$1,137 |
$1,089 |
$1,136 |
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Resident retention rate |
39.9% |
43.5% |
44.5% |
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Traffic (1) |
10,862 |
12,343 |
27,185 (1) |
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(1) |
Traffic represents instances of first contact with potential residents through email, phone call, office visit, etc. Traffic during 4Q 2020 was 8.0% lower than 4Q 2019. |
Lease-Over-Lease Effective Rent Growth (1)
The table below depicts lease-over-lease effective rent growth for all new and renewal leases entered into during the respective periods for the 51-property same store portfolio.
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Lease Type |
4Q 2020 |
1Q 2021(2) |
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New Leases |
4.5% |
7.7% |
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Renewal Leases |
1.6% |
4.4% |
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Total |
3.3% |
5.4% |
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(1) |
Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months. |
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(2) |
For new leases and renewals commencing during 1Q 2021 that were signed as of February 5, 2021. |
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Value Add Program
We completed renovations on 230 units and 1,004 units during the quarter ended and year ended December 31, 2020, respectively. From inception of our value add program in January 2018 through December 31, 2020, we completed renovations on 3,719 units, achieving a return on investment of 15.9% (18.3% on interior renovation costs) and an average monthly rental increase of 18.5%.
Capital Recycling
In fourth quarter 2020, we continued our capital recycling activity in support of our ongoing initiative to establish and grow our presence in markets where we see long-term growth opportunities and reevaluate those that may not be attractive long-term investments.
Completed Acquisitions:
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Legacy at Jones Farms in Huntsville, AL: On December 1, 2020, we acquired this 421-unit property built in two phases in 2014 and 2019 for $94.0 million. This acquisition expanded our footprint in Huntsville from 178 units to 599 units, at an average rent per unit above that of our existing total portfolio effective monthly rent per unit. |
Completed Dispositions:
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Trails at Signal Mountain in Chattanooga, TN: On October 27, 2020, we sold this 172-unit property for $20.0 million and recognized a $6.2 million gain on sale in fourth quarter 2020. |
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Live Oak Trace in Baton Rouge, LA: On November 10, 2020, we sold this 264-unit property for $25.4 million and as a result, exited the Baton Rouge market. We recognized a $1.8 million impairment charge in third quarter 2020. |
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Lakeshore on the Hill in Chattanooga, TN: On November 23, 2020, we sold this 123-unit property for $14.3 million and recognized a $3.5 million gain on sale in fourth quarter 2020. As a result of this sale, we exited the |
Financial Flexibility – Total Liquidity and Debt Reduction
As of December 31, 2020, we had a total liquidity position of approximately $186 million, which includes unrestricted cash, additional capacity under our unsecured line of credit, and approximately $12.4 million of proceeds that we will receive upon settlement of a forward sale agreement covering 900,000 shares of common stock, as discussed below.
During the fourth quarter, we issued the remaining 6,944,000 shares of common stock and received the remaining $98.9 million of proceeds from our February 24, 2020 forward equity sale. We used the proceeds to partially fund our Huntsville, AL acquisition and pay down debt. As of December 31, 2020, our pro forma net debt to Adjusted EBITDA was 8.2x, down from 9.1x and 8.9x on a quarter-over-quarter and year-over-basis, respectively. We remain focused on reducing leverage and achieving our mid-term net debt to adjusted EBITDA target of mid-7’s.
At-the-Market Offering
On November 13, 2020, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock having an aggregate offering price of up to $150 million (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis. On November 13, 2020, we entered into a forward sale transaction under the ATM Program for the forward sale of 900,000 shares of our common stock. We expect to physically settle the forward sale transaction by the maturity date (December 15, 2021) of the forward sale transaction. Assuming the forward sale transaction is physically settled in full utilizing the initial forward sale price of $14.00 per share, net of sales commissions, we expect to receive net proceeds of approximately $12.4 million, subject to adjustment in accordance with the forward sale transaction.
Capital Expenditures
For the three months ended December 31, 2020, recurring capital expenditures for the total portfolio were $2.0 million, or $124 per unit. For the year ended December 30, 2020, recurring capital expenditures for the total portfolio were $6.5 million, or $413 per unit.
Distributions
On December 14, 2020, our Board of Directors declared a quarterly cash dividend of $0.12 per share of our common stock, which was paid on January 22, 2021 to stockholders of record at the close of business on December 30, 2020.
7
Board Appointment
On January 5, 2021, we announced the appointment of Lisa Washington as an independent director to our Board of Directors, increasing the size of the Board from six to seven directors. Ms. Washington has more than 25 years of experience in corporate governance and public company compliance and brings to IRT her expertise as an accomplished legal executive and corporate officer. The appointment represents our ongoing commitment to Board refreshment and diversity.
2021 EPS and CFFO Guidance
Based on increasing clarity surrounding business, industry and broader economic conditions, we are introducing 2021 full year guidance. EPS per diluted share is projected to be in the range of $0.04 to $0.08. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s definition and rationale for the usefulness of CFFO.
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2021 Full Year EPS and CFFO Guidance (1)(2) |
Low |
High |
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Earnings per share |
$0.04 |
$0.08 |
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Adjustments: |
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Depreciation and amortization |
0.67 |
0.67 |
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Stock compensation expense |
0.06 |
0.06 |
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Amortization of deferred financing costs |
0.01 |
0.01 |
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CFFO per share allocated to common shareholders |
$0.78 |
$0.82 |
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(1) |
This guidance, including the underlying assumptions, constitutes forward-looking information. Actual full year 2021 EPS and CFFO per share could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below. |
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(2) |
Per share guidance is based on 102.6 million weighted average shares and units outstanding. See 2021 guidance assumptions for additional information. |
2021 Guidance Assumptions
Our key assumptions for 2021 guidance are enumerated below. Our per share guidance above is based on the assumption of 102.6 million common shares, which is an increase of 8.2 million shares over our 2020 weighted average share count. This increase is a result of the shares issued during 2020, from the February 2020 forward equity raise, where the proceeds were used to fund our Huntsville acquisition in December 2020 with the remaining used to reduce outstanding indebtedness. Our 2021 guidance assumes we do not engage in acquisitions, related borrowings or dispositions.
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2021 Outlook (1) |
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Number of properties/units |
54 properties / 14,955 units |
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Property revenue growth |
2.75% to 4.25% |
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Controllable property operating expense growth |
2.0% to 3.0% |
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Real estate tax and insurance expense increase |
7.0% to 9.0% |
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Total real estate operating expense growth |
4% to 5.25% |
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Property NOI growth |
1.5% to 3.5% |
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Corporate Expenses (excluding stock compensation) (2) |
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General and administrative expenses |
$10.5 to $11.0 million |
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Property management expenses |
$8.0 to $8.5 million |
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Interest expense (excluding amortization of deferred financing costs) (3) |
$32.5 to $33.5 million |
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Transaction/Investment Volume (4) |
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Acquisition volume |
None assumed |
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Disposition volume |
None assumed |
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Capital Expenditures |
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Recurring |
$7.0 to $8.0 million |
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Value add & non-recurring |
$28.5 to $32.5 million |
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(1) |
This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” below. |
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(2) |
Corporate expenses including stock compensation expense are forecasted to be as follows: General and administrative expenses - $15.5 to $17.0 million and Property management expenses - $8.5 to $9.2 million. See discussion below regarding a change to our computation of CFFO. |
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(3) |
Interest expense including deferred financing costs is forecasted to be $34.0 to $35.5 million. See discussion below regarding a change to our computation of CFFO. |
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(4) |
We continue to evaluate our portfolio for capital recycling opportunities. Actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements” below. |
Beginning in the first quarter of 2021, we expect to change our definition of CFFO such that we will no longer exclude stock compensation expense or amortization of deferred financing costs from our computation of CFFO. When we adopt this change, we will present all historical results and 2021 guidance in accordance with the new definition. We expect stock compensation expense and amortization of deferred financing costs to total approximately $7.9 million in 2021 broken down by quarter as follows: $3.0 million, $1.9 million, $1.5 million, and $1.5 million in Q1, Q2, Q3, and Q4 2021, respectively.
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
We disclose 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 our reported net income to our FFO and CFFO, a reconciliation of our same store NOI to our reported net income, a reconciliation of our 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, February 11, 2021 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.833.789.1330. 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, February 18, 2021 by dialing 1.800.585.8367, access code 9394295.
Supplemental Information
We produce 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 our website, www.irtliving.com, through the "Investor Relations" section.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Dallas, Louisville, Memphis, Raleigh and Tampa. 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 on capital through distributions and capital appreciation. More information may be found on IRT’s website at www.irtliving.com.
9
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 “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. These forward-looking statements include, without limitation, our expectations with respect to capital allocations, including as to the timing and amount of future dividends. 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 our 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 our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks related to the impact of COVID-19 and other potential future outbreaks of infectious diseases on our financial condition, results of operations, cash flows and performance and those of our residents as well as on the economy and real estate and financial markets; changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; legislative restrictions that may delay or limit collections of past due rents; risks endemic to real estate and the real estate industry generally; the effects of natural and other disasters; 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; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount of the quarterly dividend described in this press release.
Independence Realty Trust, Inc. Contact
Edelman Financial Communications & Capital Markets
Ted McHugh and Lauren Torres
917-365-7979
IRT@edelman.com
10
FINANCIAL & OPERATING HIGHLIGHTS
Dollars in thousands, except per share data
|
|
|
For the Three Months Ended |
|
||||||||
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
|
Selected Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shares |
|
$13,261 |
|
$1,090 |
|
$789 |
|
$(372) |
|
$23,784 |
|
|
Earnings (loss) per share -- diluted |
|
$0.14 |
|
0.01 |
|
$0.01 |
|
$0.00 |
|
$0.26 |
|
|
Rental and other property revenue |
|
$53,923 |
|
$54,001 |
|
$52,087 |
|
$51,156 |
|
$51,250 |
|
|
Property operating expenses |
|
$20,138 |
|
$22,129 |
|
$20,974 |
|
$19,737 |
|
$19,064 |
|
|
Net operating income |
|
$33,785 |
|
$31,872 |
|
$31,113 |
|
$31,419 |
|
$32,186 |
|
|
NOI margin |
|
62.7% |
|
59.0% |
|
59.7% |
|
61.4% |
|
62.8% |
|
|
Adjusted EBITDA |
|
$28,534 |
|
$27,081 |
|
$25,643 |
|
$24,081 |
|
$27,427 |
|
|
CORE FFO per share |
|
$0.22 |
|
$0.20 |
|
$0.19 |
|
$0.19 |
|
$0.20 |
|
|
Dividends per share |
|
$0.12 |
|
$0.12 |
|
$0.12 |
|
$0.18 |
|
$0.18 |
|
|
CORE FFO payout ratio |
|
54.5% |
|
60.0% |
|
63.2% |
|
94.7% |
|
90.0% |
|
|
Portfolio Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Total gross assets |
|
$1,962,895 |
|
$1,914,900 |
|
$1,916,424 |
|
$1,949,494 |
|
$1,841,738 |
|
|
Total number of properties |
|
56 |
|
58 |
|
58 |
|
58 |
|
57 |
|
|
Total units |
|
15,667 |
|
15,805 |
|
15,805 |
|
15,805 |
|
15,554 |
|
|
Period end occupancy |
|
95.3% |
|
94.4% |
|
93.5% |
|
92.7% |
|
92.5% |
|
|
Total portfolio average occupancy |
|
95.0% |
|
94.1% |
|
92.9% |
|
92.5% |
|
92.5% |
|
|
Total portfolio average effective monthly rent, per unit |
|
$1,136 |
|
$1,118 |
|
$1,108 |
|
$1,100 |
|
$1,088 |
|
|
Same store period end occupancy (a) |
|
95.3% |
|
94.3% |
|
93.4% |
|
93.1% |
|
92.6% |
|
|
Same store portfolio average occupancy (a) |
|
94.9% |
|
94.0% |
|
93.1% |
|
92.8% |
|
92.4% |
|
|
Same store portfolio average effective monthly rent, per unit (a) |
|
$1,117 |
|
$1,106 |
|
$1,103 |
|
$1,094 |
|
$1,089 |
|
|
Capitalization: |
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
$945,686 |
|
$1,004,237 |
|
$1,008,911 |
|
$1,049,541 |
|
$985,572 |
|
|
Common share price, period end |
|
$13.43 |
|
$11.59 |
|
$11.45 |
|
$8.94 |
|
$14.08 |
|
|
Market equity capitalization |
|
$1,376,283 |
|
$1,107,144 |
|
$1,093,822 |
|
$853,600 |
|
$1,294,545 |
|
|
Total market capitalization |
|
$2,321,969 |
|
$2,111,381 |
|
$2,102,733 |
|
$1,903,141 |
|
$2,280,117 |
|
|
Total debt/total gross assets |
|
48.2% |
|
52.4% |
|
52.6% |
|
53.8% |
|
53.5% |
|
|
Net debt to Adjusted EBITDA (pro forma) (b) |
|
8.2x |
|
9.1x |
|
9.2x |
|
9.0x |
|
8.9x |
|
|
Interest coverage |
|
3.2x |
|
3.0x |
|
2.8x |
|
2.5x |
|
2.8x |
|
|
Common shares and OP Units: |
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
101,803,762 |
|
94,823,806 |
|
94,741,146 |
|
94,691,806 |
|
91,070,637 |
|
|
OP units outstanding |
|
674,517 |
|
701,986 |
|
789,134 |
|
789,134 |
|
871,491 |
|
|
Common shares and OP units outstanding |
|
102,478,278 |
|
95,525,792 |
|
95,530,279 |
|
95,480,939 |
|
91,942,128 |
|
|
Weighted average common shares and units |
|
95,529,788 |
|
95,227,176 |
|
95,224,855 |
|
91,737,113 |
|
91,526,726 |
|
|
|
(a) |
Same store portfolio consists of 51 properties, which represent 14,189 units. |
11
Dollars in thousands, except per share data
|
|
|
As of |
||||||||
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Investments in real estate at cost |
|
$1,916,770 |
|
$1,815,754 |
|
$1,864,182 |
|
$1,856,760 |
|
$1,796,365 |
|
Less: accumulated depreciation |
|
(208,618) |
|
(194,644) |
|
(187,758) |
|
(172,789) |
|
(158,435) |
|
Investments in real estate, net |
|
1,708,152 |
|
1,621,110 |
|
1,676,424 |
|
1,683,971 |
|
1,637,930 |
|
Real estate held for sale |
|
— |
|
49,264 |
|
— |
|
— |
|
— |
|
Cash and cash equivalents |
|
8,751 |
|
9,891 |
|
11,652 |
|
57,436 |
|
9,888 |
|
Restricted cash |
|
4,864 |
|
7,218 |
|
6,509 |
|
4,740 |
|
4,545 |
|
Other assets |
|
12,338 |
|
12,945 |
|
14,253 |
|
10,731 |
|
10,380 |
|
Derivative assets |
|
— |
|
— |
|
— |
|
— |
|
953 |
|
Intangible assets, net |
|
792 |
|
— |
|
74 |
|
260 |
|
410 |
|
Total assets |
|
$1,734,897 |
|
$1,700,428 |
|
$1,708,912 |
|
$1,757,138 |
|
$1,664,106 |
|
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
Indebtedness, net |
|
$945,686 |
|
$1,004,237 |
|
$1,008,911 |
|
$1,049,541 |
|
$985,572 |
|
Accounts payable and accrued expenses |
|
25,416 |
|
34,319 |
|
28,748 |
|
21,250 |
|
25,399 |
|
Accrued interest payable |
|
1,976 |
|
1,888 |
|
1,970 |
|
2,099 |
|
2,196 |
|
Dividends payable |
|
12,257 |
|
11,449 |
|
11,423 |
|
17,128 |
|
16,491 |
|
Derivative liabilities |
|
29,842 |
|
33,453 |
|
34,614 |
|
30,937 |
|
7,769 |
|
Other liabilities |
|
6,949 |
|
6,736 |
|
6,860 |
|
7,012 |
|
6,922 |
|
Total liabilities |
|
1,022,126 |
|
1,092,082 |
|
1,092,526 |
|
1,127,967 |
|
1,044,349 |
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Preferred shares, $0.01 par value per share |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Common shares, $0.01 par value per share |
|
1,018 |
|
948 |
|
947 |
|
947 |
|
911 |
|
Additional paid in capital |
|
919,615 |
|
820,105 |
|
818,719 |
|
817,501 |
|
765,992 |
|
Accumulated other comprehensive income (loss) |
|
(33,822) |
|
(37,688) |
|
(39,099) |
|
(35,750) |
|
(12,099) |
|
Retained earnings (deficit) |
|
(178,751) |
|
(179,834) |
|
(169,585) |
|
(159,045) |
|
(141,525) |
|
Total shareholders' equity |
|
708,060 |
|
603,531 |
|
610,982 |
|
623,653 |
|
613,279 |
|
Noncontrolling Interests |
|
4,711 |
|
4,815 |
|
5,404 |
|
5,518 |
|
6,478 |
|
Total equity |
|
712,771 |
|
608,346 |
|
616,386 |
|
629,171 |
|
619,757 |
|
Total liabilities and equity |
|
$1,734,897 |
|
$1,700,428 |
|
$1,708,912 |
|
$1,757,138 |
|
$1,664,106 |
12
STATEMENTS OF OPERATIONS, FFO & CORE FFO
TRAILING FIVE QUARTERS
Dollars in thousands, except per share data
|
|
|
For the Three-Months Ended |
||||||||
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Rental and other property revenue |
|
$53,923 |
|
$54,001 |
|
$52,087 |
|
$51,156 |
|
$51,250 |
|
Other revenue |
|
165 |
|
199 |
|
181 |
|
194 |
|
178 |
|
Total revenue |
|
54,088 |
|
54,200 |
|
52,268 |
|
51,350 |
|
51,428 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
20,138 |
|
22,129 |
|
20,974 |
|
19,737 |
|
19,064 |
|
Property management expenses |
|
2,183 |
|
2,078 |
|
2,077 |
|
2,156 |
|
1,950 |
|
General and administrative expenses (a) |
|
3,233 |
|
2,912 |
|
3,574 |
|
5,376 |
|
2,987 |
|
Depreciation and amortization expense |
|
15,396 |
|
15,232 |
|
15,231 |
|
14,828 |
|
14,213 |
|
Abandoned deal costs |
|
— |
|
— |
|
— |
|
130 |
|
— |
|
Casualty losses |
|
300 |
|
— |
|
411 |
|
— |
|
— |
|
Total expenses |
|
41,250 |
|
42,351 |
|
42,267 |
|
42,227 |
|
38,214 |
|
Interest expense |
|
(8,872) |
|
(8,917) |
|
(9,202) |
|
(9,497) |
|
(9,873) |
|
Gain on sale (loss on impairment) of real estate assets, net |
|
9,394 |
|
(1,840) |
|
— |
|
— |
|
20,679 |
|
Net income (loss) |
|
13,360 |
|
1,092 |
|
799 |
|
(374) |
|
24,020 |
|
(Income) loss allocated to noncontrolling interests |
|
(99) |
|
(2) |
|
(10) |
|
2 |
|
(236) |
|
Net income (loss) available to common shares |
|
$13,261 |
|
$1,090 |
|
$789 |
|
$(372) |
|
$23,784 |
|
EPS - basic |
|
$0.14 |
|
$0.01 |
|
$0.01 |
|
$0.00 |
|
$0.26 |
|
Weighted-average shares outstanding - Basic |
|
94,846,369 |
|
94,456,987 |
|
94,435,722 |
|
90,895,488 |
|
90,646,142 |
|
EPS - diluted |
|
$0.14 |
|
$0.01 |
|
$0.01 |
|
$0.00 |
|
$0.26 |
|
Weighted-average shares outstanding - Diluted |
|
95,876,357 |
|
95,222,623 |
|
95,070,734 |
|
90,895,488 |
|
91,409,854 |
|
Funds From Operations (FFO): |
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) |
|
$13,360 |
|
$1,092 |
|
$799 |
|
$(374) |
|
$24,020 |
|
Add-Back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
15,316 |
|
15,155 |
|
15,156 |
|
14,725 |
|
14,175 |
|
Loss on impairment (gain on sale) of real estate assets, net, excluding debt extinguishment costs |
|
(9,394) |
|
1,840 |
|
— |
|
— |
|
(22,862) |
|
FFO |
|
$19,282 |
|
$18,087 |
|
$15,955 |
|
$14,351 |
|
$15,333 |
|
FFO per share |
|
$0.20 |
|
$0.19 |
|
$0.17 |
|
$0.16 |
|
$0.17 |
|
CORE Funds From Operations (CFFO): |
|
|
|
|
|
|
|
|
|
|
|
FFO |
|
$19,282 |
|
$18,087 |
|
$15,955 |
|
$14,351 |
|
$15,333 |
|
Add-Back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense (a) |
|
803 |
|
901 |
|
1,233 |
|
2,627 |
|
717 |
|
Amortization of deferred financing costs |
|
363 |
|
362 |
|
362 |
|
361 |
|
370 |
|
Other depreciation and amortization |
|
80 |
|
77 |
|
75 |
|
103 |
|
38 |
|
Abandoned deal costs |
|
— |
|
— |
|
— |
|
130 |
|
— |
|
Casualty losses |
|
300 |
|
— |
|
411 |
|
— |
|
— |
|
Debt extinguishment costs included in net gains (losses) on sale of assets |
|
— |
|
— |
|
— |
|
— |
|
2,184 |
|
CFFO |
|
$20,828 |
|
$19,427 |
|
$18,036 |
|
$17,572 |
|
$18,642 |
|
CFFO per share |
|
$0.22 |
|
$0.20 |
|
$0.19 |
|
$0.19 |
|
$0.20 |
|
Weighted-average shares and units outstanding |
|
95,529,788 |
|
95,227,176 |
|
95,224,855 |
|
91,737,113 |
|
91,526,726 |
|
|
(a) |
The three-months ended March 31, 2020 included $1.7 million of stock compensation expense recorded with respect to stock awards granted during the period to retirement eligible employees. |
13
STATEMENTS OF OPERATIONS, FFO & CORE FFO
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 and 2019
Dollars in thousands, except per share data
|
|
|
For the Three Months Ended December 31, |
|
For the Year Ended December 31, |
||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
Rental and other property revenue |
|
$53,923 |
|
$51,250 |
|
$211,167 |
|
$202,620 |
|
Other revenue |
|
165 |
|
178 |
|
739 |
|
603 |
|
Total revenue |
|
54,088 |
|
51,428 |
|
211,906 |
|
203,223 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
20,138 |
|
19,064 |
|
82,978 |
|
79,568 |
|
Property management expenses |
|
2,183 |
|
1,950 |
|
8,494 |
|
7,726 |
|
General and administrative expenses (a) |
|
3,233 |
|
2,987 |
|
15,095 |
|
12,745 |
|
Depreciation and amortization expense |
|
15,396 |
|
14,213 |
|
60,687 |
|
52,815 |
|
Abandoned deal costs |
|
— |
|
— |
|
130 |
|
— |
|
Casualty losses |
|
300 |
|
— |
|
711 |
|
— |
|
Total expenses |
|
41,250 |
|
38,214 |
|
168,095 |
|
152,854 |
|
Interest expense |
|
(8,872) |
|
(9,873) |
|
(36,488) |
|
(39,226) |
|
Gain on sale (loss on impairment) of real estate assets, net |
|
9,394 |
|
20,679 |
|
7,554 |
|
35,211 |
|
Net income (loss) |
|
13,360 |
|
24,020 |
|
14,877 |
|
46,354 |
|
(Income) loss allocated to noncontrolling interests |
|
(99) |
|
(236) |
|
(109) |
|
(458) |
|
Net income (loss) available to common shares |
|
$13,261 |
|
$23,784 |
|
$14,768 |
|
$45,896 |
|
EPS - basic |
|
$0.14 |
|
$0.26 |
|
$0.16 |
|
$0.51 |
|
Weighted-average shares outstanding - Basic |
|
94,846,369 |
|
90,646,142 |
|
93,660,086 |
|
89,799,238 |
|
EPS - diluted |
|
$0.14 |
|
$0.26 |
|
$0.16 |
|
$0.51 |
|
Weighted-average shares outstanding - Diluted |
|
95,876,357 |
|
91,409,854 |
|
94,688,440 |
|
90,417,486 |
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations (FFO): |
|
|
|
|
|
|
|
|
|
Net Income (loss) |
|
$13,360 |
|
$24,020 |
|
$14,877 |
|
$46,354 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
15,316 |
|
14,175 |
|
60,352 |
|
52,482 |
|
Loss on impairment (gain on sale) of real estate assets, net, excluding debt extinguishment costs |
|
(9,394) |
|
(22,862) |
|
(7,554) |
|
(42,628) |
|
Funds From Operations |
|
$19,282 |
|
$15,333 |
|
$67,675 |
|
$56,208 |
|
FFO per share |
|
$0.20 |
|
$0.17 |
|
$0.72 |
|
$0.62 |
|
Core Funds From Operations (CFFO): |
|
|
|
|
|
|
|
|
|
Funds From Operations |
|
$19,282 |
|
$15,333 |
|
$67,675 |
|
$56,208 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Stock compensation expense (a) |
|
803 |
|
717 |
|
5,564 |
|
3,116 |
|
Amortization of deferred financing costs |
|
363 |
|
370 |
|
1,448 |
|
1,423 |
|
Other depreciation and amortization |
|
80 |
|
38 |
|
335 |
|
333 |
|
Abandoned deal costs |
|
— |
|
— |
|
130 |
|
— |
|
Casualty losses |
|
300 |
|
— |
|
711 |
|
— |
|
Debt extinguishment costs included in net gains (losses) on sale of assets |
|
— |
|
2,184 |
|
— |
|
7,417 |
|
Core Funds From Operations |
|
$20,828 |
|
$18,642 |
|
$75,863 |
|
$68,497 |
|
CFFO per share |
|
$0.22 |
|
$0.20 |
|
$0.80 |
|
$0.76 |
|
Weighted-average shares and units outstanding |
|
95,529,788 |
|
91,526,726 |
|
94,430,935 |
|
90,680,212 |
|
|
(a) |
Included in the year ended December 31, 2020 is $1.7 million of stock compensation expense recorded with respect to stock awards granted during the period to a retirement eligible employee. |
14
ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO
Dollars in thousands
|
|
|
Three Months Ended |
|
||||||||
|
ADJUSTED EBITDA: |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
|
Net income (loss) |
|
$13,360 |
|
$1,092 |
|
$799 |
|
$(374) |
|
$24,020 |
|
|
Add-Back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
15,396 |
|
15,232 |
|
15,231 |
|
14,828 |
|
14,213 |
|
|
Interest expense |
|
8,872 |
|
8,917 |
|
9,202 |
|
9,497 |
|
9,873 |
|
|
Net loss on impairment (gain on sale) of real estate assets |
|
(9,394) |
|
1,840 |
|
— |
|
— |
|
(20,679) |
|
|
Abandoned deal costs |
|
— |
|
— |
|
— |
|
130 |
|
— |
|
|
Casualty losses |
|
300 |
|
— |
|
411 |
|
— |
|
— |
|
|
Adjusted EBITDA |
|
$28,534 |
|
$27,081 |
|
$25,643 |
|
$24,081 |
|
$27,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST COST: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$8,872 |
|
$8,917 |
|
$9,202 |
|
$9,497 |
|
$9,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST COVERAGE: |
|
3.2x |
|
3.0x |
|
2.8x |
|
2.5x |
|
2.8x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, |
|
For the Year Ended December 31, |
||||
|
ADJUSTED EBITDA: |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net income (loss) |
|
$13,360 |
|
$24,020 |
|
$14,877 |
|
$46,354 |
|
Add-Back (Deduct): |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
15,396 |
|
14,213 |
|
60,687 |
|
52,815 |
|
Interest expense |
|
8,872 |
|
9,873 |
|
36,488 |
|
39,226 |
|
Net loss on impairment (gain on sale) of real estate assets |
|
(9,394) |
|
(20,679) |
|
(7,554) |
|
(35,211) |
|
Abandoned deal costs |
|
— |
|
— |
|
130 |
|
— |
|
Casualty losses |
|
300 |
|
— |
|
711 |
|
— |
|
Adjusted EBITDA |
|
$28,534 |
|
$27,427 |
|
$105,339 |
|
$103,184 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST COST: |
|
|
|
|
|
|
|
|
|
Interest expense |
|
$8,872 |
|
$9,873 |
|
$36,488 |
|
$39,226 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST COVERAGE: |
|
3.2x |
|
2.8x |
|
2.9x |
|
2.6x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
SAME STORE PORTFOLIO NET OPERATING INCOME
TRAILING FIVE QUARTERS
Dollars in thousands, except per unit data
|
|
|
For the Three-Months Ended (a) |
||||||||
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Rental and other property revenue |
|
$48,391 |
|
$47,881 |
|
$46,598 |
|
$46,344 |
|
$45,890 |
|
Property Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
5,753 |
|
6,053 |
|
6,076 |
|
5,737 |
|
5,286 |
|
Property insurance |
|
1,122 |
|
1,097 |
|
1,040 |
|
864 |
|
945 |
|
Personnel expenses |
|
4,410 |
|
4,753 |
|
4,458 |
|
4,199 |
|
4,230 |
|
Utilities |
|
2,593 |
|
2,789 |
|
2,448 |
|
2,660 |
|
2,521 |
|
Repairs and maintenance |
|
1,471 |
|
2,031 |
|
1,621 |
|
1,438 |
|
1,200 |
|
Contract services |
|
1,880 |
|
1,911 |
|
1,931 |
|
1,711 |
|
1,698 |
|
Advertising expenses |
|
451 |
|
554 |
|
462 |
|
507 |
|
497 |
|
Other expenses |
|
541 |
|
522 |
|
471 |
|
647 |
|
604 |
|
Total property operating expenses |
|
18,221 |
|
19,710 |
|
18,507 |
|
17,763 |
|
16,981 |
|
Same-store net operating income (a) |
|
$30,170 |
|
$28,171 |
|
$28,091 |
|
$28,581 |
|
$28,909 |
|
Same-store NOI margin |
|
62.3% |
|
58.8% |
|
60.3% |
|
61.7% |
|
63.0% |
|
Average occupancy |
|
94.9% |
|
94.0% |
|
93.1% |
|
92.8% |
|
92.4% |
|
Average effective monthly rent, per unit |
|
$1,117 |
|
$1,106 |
|
$1,103 |
|
$1,094 |
|
$1,089 |
|
Reconciliation of same-store net operating income to net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Same-store net operating income |
|
$30,170 |
|
$28,171 |
|
$28,091 |
|
$28,581 |
|
$28,909 |
|
Non same-store net operating income |
|
3,615 |
|
3,701 |
|
3,022 |
|
2,838 |
|
3,277 |
|
Other revenue |
|
165 |
|
199 |
|
181 |
|
194 |
|
178 |
|
Property management expenses |
|
(2,183) |
|
(2,078) |
|
(2,077) |
|
(2,156) |
|
(1,950) |
|
General and administrative expenses |
|
(3,233) |
|
(2,912) |
|
(3,574) |
|
(5,376) |
|
(2,987) |
|
Depreciation and amortization expense |
|
(15,396) |
|
(15,232) |
|
(15,231) |
|
(14,828) |
|
(14,213) |
|
Abandoned deal costs |
|
— |
|
— |
|
— |
|
(130) |
|
— |
|
Casualty losses |
|
(300) |
|
— |
|
(411) |
|
— |
|
— |
|
Interest expense |
|
(8,872) |
|
(8,917) |
|
(9,202) |
|
(9,497) |
|
(9,873) |
|
Gain on sale (loss on impairment) of real estate assets, net |
|
9,394 |
|
(1,840) |
|
— |
|
— |
|
20,679 |
|
Net income (loss) |
|
$13,360 |
|
$1,092 |
|
$799 |
|
$(374) |
|
$24,020 |
16
SAME STORE PORTFOLIO NET OPERATING INCOME
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 and 2019
Dollars in thousands, except per unit data
|
|
|
For the Three Months Ended December 31, |
|
For the Year Ended December 31, |
||||||||
|
|
|
2020 |
|
2019 |
|
% change |
|
2020 |
|
2019 |
|
% change |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other property revenue |
|
$48,391 |
|
$45,890 |
|
5.4% |
|
$189,214 |
|
$182,599 |
|
3.6% |
|
Property Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
5,753 |
|
5,286 |
|
8.8% |
|
23,619 |
|
22,726 |
|
3.9% |
|
Property insurance |
|
1,122 |
|
945 |
|
18.7% |
|
4,123 |
|
3,688 |
|
11.8% |
|
Personnel expenses |
|
4,410 |
|
4,230 |
|
4.3% |
|
17,820 |
|
17,179 |
|
3.7% |
|
Utilities |
|
2,593 |
|
2,521 |
|
2.9% |
|
10,490 |
|
9,882 |
|
6.2% |
|
Repairs and maintenance |
|
1,471 |
|
1,200 |
|
22.6% |
|
6,561 |
|
6,354 |
|
3.3% |
|
Contract services |
|
1,880 |
|
1,698 |
|
10.7% |
|
7,433 |
|
6,749 |
|
10.1% |
|
Advertising expenses |
|
451 |
|
497 |
|
-9.3% |
|
1,974 |
|
1,930 |
|
2.3% |
|
Other expenses |
|
541 |
|
604 |
|
-10.4% |
|
2,181 |
|
2,497 |
|
-12.7% |
|
Total property operating expenses |
|
18,221 |
|
16,981 |
|
7.3% |
|
74,201 |
|
71,005 |
|
4.5% |
|
Same-store net operating income (a) |
|
$30,170 |
|
$28,909 |
|
4.4% |
|
$115,013 |
|
$111,594 |
|
3.1% |
|
Same-store NOI margin |
|
62.3% |
|
63.0% |
|
-0.7% |
|
60.8% |
|
61.1% |
|
-0.3% |
|
Average occupancy |
|
94.9% |
|
92.4% |
|
2.5% |
|
93.7% |
|
93.4% |
|
0.3% |
|
Average effective monthly rent, per unit |
|
$1,117 |
|
$1,089 |
|
2.6% |
|
$1,105 |
|
$1,068 |
|
3.4% |
|
Reconciliation of same-store net operating income to net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store portfolio net operating income |
|
$30,170 |
|
$28,909 |
|
|
|
$115,013 |
|
$111,594 |
|
|
|
Non same-store net operating income |
|
3,615 |
|
3,277 |
|
|
|
13,176 |
|
11,458 |
|
|
|
Other revenue |
|
165 |
|
178 |
|
|
|
739 |
|
603 |
|
|
|
Property management expenses |
|
(2,183) |
|
(1,950) |
|
|
|
(8,494) |
|
(7,726) |
|
|
|
General and administrative expenses |
|
(3,233) |
|
(2,987) |
|
|
|
(15,095) |
|
(12,745) |
|
|
|
Depreciation and amortization expense |
|
(15,396) |
|
(14,213) |
|
|
|
(60,687) |
|
(52,815) |
|
|
|
Abandoned deal costs |
|
— |
|
— |
|
|
|
(130) |
|
— |
|
|
|
Casualty losses |
|
(300) |
|
— |
|
|
|
(711) |
|
— |
|
|
|
Interest expense |
|
(8,872) |
|
(9,873) |
|
|
|
(36,488) |
|
(39,226) |
|
|
|
Gain on sale (loss on impairment) of real estate assets, net |
|
9,394 |
|
20,679 |
|
|
|
7,554 |
|
35,211 |
|
|
|
Net income (loss) |
|
$13,360 |
|
$24,020 |
|
|
|
$14,877 |
|
$46,354 |
|
|
|
(a) |
Same store portfolio consists of 51 properties, which represent 14,189 units. |
17
NET OPERATING INCOME (NOI) BRIDGE
TRAILING FIVE QUARTERS
Dollars in thousands
|
|
|
For the Three-Months Ended |
||||||||
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
Rental and other property revenue |
|
|
|
|
|
|
|
|
|
|
|
Same store (a) |
|
$48,391 |
|
$47,881 |
|
$46,598 |
|
$46,344 |
|
$45,890 |
|
Non same-store |
|
5,532 |
|
6,120 |
|
5,489 |
|
4,812 |
|
5,360 |
|
Total rental and other property revenue |
|
53,923 |
|
54,001 |
|
52,087 |
|
51,156 |
|
51,250 |
|
Property operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Same store (a) |
|
18,221 |
|
19,710 |
|
18,507 |
|
17,763 |
|
16,981 |
|
Non same-store |
|
1,917 |
|
2,419 |
|
2,467 |
|
1,974 |
|
2,083 |
|
Total property operating expenses |
|
20,138 |
|
22,129 |
|
20,974 |
|
19,737 |
|
19,064 |
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
Same-store (a) |
|
30,170 |
|
28,171 |
|
28,091 |
|
28,581 |
|
28,909 |
|
Non same-store |
|
3,615 |
|
3,701 |
|
3,022 |
|
2,838 |
|
3,277 |
|
Total property net operating income |
|
$33,785 |
|
$31,872 |
|
$31,113 |
|
$31,419 |
|
$32,186 |
|
Reconciliation of NOI to net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total property net operating income |
|
$33,785 |
|
$31,872 |
|
$31,113 |
|
$31,419 |
|
$32,186 |
|
Other revenue |
|
165 |
|
199 |
|
181 |
|
194 |
|
178 |
|
Property management expenses |
|
(2,183) |
|
(2,078) |
|
(2,077) |
|
(2,156) |
|
(1,950) |
|
General and administrative expenses |
|
(3,233) |
|
(2,912) |
|
(3,574) |
|
(5,376) |
|
(2,987) |
|
Depreciation and amortization expense |
|
(15,396) |
|
(15,232) |
|
(15,231) |
|
(14,828) |
|
(14,213) |
|
Abandoned deal costs |
|
— |
|
— |
|
— |
|
(130) |
|
— |
|
Casualty losses |
|
(300) |
|
— |
|
(411) |
|
— |
|
— |
|
Interest expense |
|
(8,872) |
|
(8,917) |
|
(9,202) |
|
(9,497) |
|
(9,873) |
|
Gain on sale (loss on impairment) of real estate assets, net |
|
9,394 |
|
(1,840) |
|
— |
|
— |
|
20,679 |
|
Net income (loss) |
|
$13,360 |
|
$1,092 |
|
$799 |
|
$(374) |
|
$24,020 |
|
(a) |
Same store portfolio consists of 51 properties, which represent 14,189 units. |
18
SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET
THREE MONTHS ENDED DECEMBER 31, 2020
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 |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
Atlanta, GA |
|
5 |
|
1,796 |
|
$6,805 |
|
$6,460 |
|
5.3% |
|
$2,316 |
|
$2,207 |
|
4.9% |
|
$4,489 |
|
$4,253 |
|
5.5% |
|
96.5% |
|
94.0% |
|
2.5% |
|
$1,239 |
|
$1,205 |
|
2.8% |
|
Raleigh - Durham, NC |
|
5 |
|
1,372 |
|
5,131 |
|
4,935 |
|
4.0% |
|
1,743 |
|
1,722 |
|
1.2% |
|
3,388 |
|
3,213 |
|
5.4% |
|
95.5% |
|
92.9% |
|
2.6% |
|
1,212 |
|
1,197 |
|
1.3% |
|
Memphis, TN |
|
4 |
|
1,383 |
|
5,081 |
|
4,463 |
|
13.8% |
|
1,715 |
|
1,686 |
|
1.7% |
|
3,366 |
|
2,777 |
|
21.2% |
|
96.1% |
|
89.5% |
|
6.6% |
|
1,193 |
|
1,138 |
|
4.8% |
|
Louisville, KY |
|
6 |
|
1,710 |
|
5,291 |
|
5,023 |
|
5.3% |
|
2,293 |
|
1,887 |
|
21.5% |
|
2,998 |
|
3,136 |
|
-4.4% |
|
90.6% |
|
88.1% |
|
2.5% |
|
1,016 |
|
999 |
|
1.7% |
|
Columbus, OH |
|
6 |
|
1,547 |
|
4,941 |
|
4,707 |
|
5.0% |
|
1,942 |
|
1,943 |
|
-0.1% |
|
2,999 |
|
2,764 |
|
8.5% |
|
93.1% |
|
92.3% |
|
0.8% |
|
1,076 |
|
1,030 |
|
4.4% |
|
Oklahoma City, OK |
|
5 |
|
1,658 |
|
3,570 |
|
3,409 |
|
4.7% |
|
1,478 |
|
1,354 |
|
9.2% |
|
2,092 |
|
2,055 |
|
1.8% |
|
96.2% |
|
95.0% |
|
1.2% |
|
700 |
|
677 |
|
3.4% |
|
Tampa-St. Petersburg, FL |
|
3 |
|
840 |
|
3,201 |
|
2,816 |
|
13.7% |
|
1,332 |
|
1,186 |
|
12.3% |
|
1,869 |
|
1,630 |
|
14.7% |
|
95.3% |
|
88.4% |
|
7.0% |
|
1,302 |
|
1,199 |
|
8.6% |
|
Indianapolis, IN |
|
4 |
|
916 |
|
3,057 |
|
2,853 |
|
7.2% |
|
1,286 |
|
1,026 |
|
25.3% |
|
1,771 |
|
1,827 |
|
-3.1% |
|
96.1% |
|
94.0% |
|
2.2% |
|
1,065 |
|
1,024 |
|
4.0% |
|
Dallas, TX |
|
3 |
|
734 |
|
2,722 |
|
2,685 |
|
1.4% |
|
1,113 |
|
1,035 |
|
7.5% |
|
1,609 |
|
1,650 |
|
-2.5% |
|
95.0% |
|
94.9% |
|
0.1% |
|
1,217 |
|
1,207 |
|
0.8% |
|
Myrtle Beach, SC - Wilmington, NC |
|
3 |
|
628 |
|
1,968 |
|
1,909 |
|
3.1% |
|
627 |
|
596 |
|
5.2% |
|
1,341 |
|
1,313 |
|
2.1% |
|
94.8% |
|
91.1% |
|
3.7% |
|
1,052 |
|
1,047 |
|
0.5% |
|
Charleston, SC |
|
2 |
|
518 |
|
2,131 |
|
2,116 |
|
0.7% |
|
916 |
|
887 |
|
3.3% |
|
1,215 |
|
1,229 |
|
-1.1% |
|
95.8% |
|
94.2% |
|
1.6% |
|
1,310 |
|
1,306 |
|
0.3% |
|
Orlando, FL |
|
1 |
|
297 |
|
1,298 |
|
1,295 |
|
0.2% |
|
474 |
|
459 |
|
3.3% |
|
824 |
|
836 |
|
-1.4% |
|
96.1% |
|
93.7% |
|
2.4% |
|
1,446 |
|
1,484 |
|
-2.6% |
|
Charlotte, NC |
|
1 |
|
208 |
|
1,007 |
|
1,037 |
|
-2.9% |
|
311 |
|
314 |
|
-1.0% |
|
696 |
|
723 |
|
-3.7% |
|
96.5% |
|
96.3% |
|
0.2% |
|
1,489 |
|
1,565 |
|
-4.9% |
|
Asheville, NC |
|
1 |
|
252 |
|
857 |
|
891 |
|
-3.8% |
|
249 |
|
250 |
|
-0.4% |
|
608 |
|
641 |
|
-5.1% |
|
95.5% |
|
97.1% |
|
-1.7% |
|
1,137 |
|
1,168 |
|
-2.6% |
|
St. Louis, MO |
|
1 |
|
152 |
|
718 |
|
727 |
|
-1.2% |
|
234 |
|
245 |
|
-4.5% |
|
484 |
|
482 |
|
0.4% |
|
92.6% |
|
96.7% |
|
-4.1% |
|
1,483 |
|
1,463 |
|
1.4% |
|
Huntsville, AL |
|
1 |
|
178 |
|
613 |
|
564 |
|
8.7% |
|
192 |
|
184 |
|
4.3% |
|
421 |
|
380 |
|
10.8% |
|
98.3% |
|
97.9% |
|
0.5% |
|
1,071 |
|
994 |
|
7.8% |
|
Total/Weighted Average |
|
51 |
|
14,189 |
|
$48,391 |
|
$45,890 |
|
5.4% |
|
$18,221 |
|
$16,981 |
|
7.3% |
|
$30,170 |
|
$28,909 |
|
4.4% |
|
94.9% |
|
92.4% |
|
2.5% |
|
$1,117 |
|
$1,089 |
|
2.6% |
19
SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET
TWEVLE MONTHS ENDED DECEMBER 31, 2020
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 |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|
Atlanta, GA |
|
5 |
|
1,796 |
|
$26,309 |
|
$25,049 |
|
5.0% |
|
$9,182 |
|
$8,899 |
|
3.2% |
|
$17,127 |
|
$16,150 |
|
6.0% |
|
95.1% |
|
94.2% |
|
0.8% |
|
$1,224 |
|
$1,170 |
|
4.6% |
|
Raleigh - Durham, NC |
|
5 |
|
1,372 |
|
20,293 |
|
19,538 |
|
3.9% |
|
7,093 |
|
7,188 |
|
-1.3% |
|
13,200 |
|
12,350 |
|
6.9% |
|
94.2% |
|
93.4% |
|
0.8% |
|
1,207 |
|
1,176 |
|
2.7% |
|
Memphis, TN |
|
4 |
|
1,383 |
|
19,106 |
|
18,255 |
|
4.7% |
|
7,088 |
|
6,860 |
|
3.3% |
|
12,018 |
|
11,395 |
|
5.5% |
|
92.0% |
|
91.7% |
|
0.2% |
|
1,168 |
|
1,120 |
|
4.3% |
|
Louisville, KY |
|
6 |
|
1,710 |
|
20,709 |
|
20,227 |
|
2.4% |
|
8,941 |
|
8,002 |
|
11.7% |
|
11,768 |
|
12,225 |
|
-3.7% |
|
89.0% |
|
89.7% |
|
-0.7% |
|
1,016 |
|
992 |
|
2.5% |
|
Columbus, OH |
|
6 |
|
1,547 |
|
19,322 |
|
18,383 |
|
5.1% |
|
8,639 |
|
7,948 |
|
8.7% |
|
10,683 |
|
10,435 |
|
2.4% |
|
93.2% |
|
92.7% |
|
0.5% |
|
1,052 |
|
1,002 |
|
5.0% |
|
Oklahoma City, OK |
|
5 |
|
1,658 |
|
14,202 |
|
13,581 |
|
4.6% |
|
5,904 |
|
5,576 |
|
5.9% |
|
8,298 |
|
8,005 |
|
3.7% |
|
96.0% |
|
95.2% |
|
0.8% |
|
691 |
|
669 |
|
3.4% |
|
Tampa-St. Petersburg, FL |
|
3 |
|
840 |
|
12,229 |
|
11,679 |
|
4.7% |
|
5,134 |
|
5,025 |
|
2.2% |
|
7,095 |
|
6,654 |
|
6.6% |
|
91.5% |
|
92.5% |
|
-1.0% |
|
1,268 |
|
1,179 |
|
7.6% |
|
Indianapolis, IN |
|
4 |
|
916 |
|
11,889 |
|
11,215 |
|
6.0% |
|
4,990 |
|
4,644 |
|
7.5% |
|
6,899 |
|
6,571 |
|
5.0% |
|
95.4% |
|
94.4% |
|
1.1% |
|
1,047 |
|
1,002 |
|
4.5% |
|
Dallas, TX |
|
3 |
|
734 |
|
10,851 |
|
10,723 |
|
1.2% |
|
4,645 |
|
4,499 |
|
3.2% |
|
6,206 |
|
6,224 |
|
-0.3% |
|
95.2% |
|
95.7% |
|
-0.5% |
|
1,213 |
|
1,195 |
|
1.5% |
|
Myrtle Beach, SC - Wilmington, NC |
|
3 |
|
628 |
|
7,735 |
|
7,702 |
|
0.4% |
|
2,589 |
|
2,498 |
|
3.6% |
|
5,146 |
|
5,204 |
|
-1.1% |
|
92.8% |
|
93.7% |
|
-0.9% |
|
1,042 |
|
1,020 |
|
2.2% |
|
Charleston, SC |
|
2 |
|
518 |
|
8,541 |
|
8,358 |
|
2.2% |
|
3,789 |
|
3,770 |
|
0.5% |
|
4,752 |
|
4,588 |
|
3.6% |
|
94.8% |
|
94.0% |
|
0.8% |
|
1,312 |
|
1,295 |
|
1.3% |
|
Orlando, FL |
|
1 |
|
297 |
|
5,191 |
|
5,256 |
|
-1.2% |
|
1,999 |
|
1,887 |
|
5.9% |
|
3,192 |
|
3,369 |
|
-5.3% |
|
95.1% |
|
95.6% |
|
-0.5% |
|
1,471 |
|
1,472 |
|
-0.1% |
|
Charlotte, NC |
|
1 |
|
208 |
|
4,050 |
|
4,094 |
|
-1.1% |
|
1,338 |
|
1,391 |
|
-3.8% |
|
2,712 |
|
2,703 |
|
0.3% |
|
94.8% |
|
95.7% |
|
-0.9% |
|
1,512 |
|
1,549 |
|
-2.4% |
|
Asheville, NC |
|
1 |
|
252 |
|
3,489 |
|
3,494 |
|
-0.1% |
|
1,070 |
|
1,054 |
|
1.5% |
|
2,419 |
|
2,440 |
|
-0.9% |
|
96.1% |
|
97.0% |
|
-0.9% |
|
1,145 |
|
1,140 |
|
0.4% |
|
St. Louis, MO |
|
1 |
|
152 |
|
2,880 |
|
2,848 |
|
1.1% |
|
1,006 |
|
998 |
|
0.8% |
|
1,874 |
|
1,850 |
|
1.3% |
|
95.2% |
|
95.1% |
|
0.1% |
|
1,472 |
|
1,490 |
|
-1.2% |
|
Huntsville, AL |
|
1 |
|
178 |
|
2,418 |
|
2,197 |
|
10.1% |
|
794 |
|
766 |
|
3.7% |
|
1,624 |
|
1,431 |
|
13.5% |
|
97.9% |
|
97.8% |
|
0.1% |
|
1,048 |
|
964 |
|
8.8% |
|
Total/Weighted Average |
|
51 |
|
14,189 |
|
$189,214 |
|
$182,599 |
|
3.6% |
|
$74,201 |
|
$71,005 |
|
4.5% |
|
$115,013 |
|
$111,594 |
|
3.1% |
|
93.7% |
|
93.4% |
|
0.3% |
|
$1,105 |
|
$1,068 |
|
3.4% |
TOTAL PORTFOLIO NOI EXPOSURE BY MARKET
Dollars in thousands, except rent per unit
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, 2020 |
||||
|
Market |
|
Number of Properties |
|
Units |
|
Gross Real Estate Assets |
|
Period End Occupancy |
|
Average Effective Monthly Rent per Unit |
|
Net Operating Income |
|
% of NOI |
|
Atlanta, GA |
|
6 |
|
2,020 |
|
$260,863 |
|
97.3% |
|
$1,229 |
|
$5,010 |
|
15.1% |
|
Raleigh - Durham, NC |
|
6 |
|
1,690 |
|
246,094 |
|
95.6% |
|
1,197 |
|
4,123 |
|
12.4% |
|
Memphis, TN |
|
4 |
|
1,383 |
|
149,552 |
|
96.7% |
|
1,193 |
|
3,366 |
|
10.1% |
|
Columbus, OH |
|
6 |
|
1,547 |
|
156,980 |
|
92.5% |
|
1,076 |
|
2,999 |
|
9.0% |
|
Louisville, KY |
|
6 |
|
1,710 |
|
201,586 |
|
91.8% |
|
1,016 |
|
2,998 |
|
9.0% |
|
Dallas, TX |
|
4 |
|
985 |
|
140,443 |
|
95.9% |
|
1,309 |
|
2,455 |
|
7.4% |
|
Tampa-St. Petersburg, FL |
|
4 |
|
1,104 |
|
181,143 |
|
94.6% |
|
1,307 |
|
2,470 |
|
7.4% |
|
Oklahoma City, OK |
|
5 |
|
1,658 |
|
79,478 |
|
96.7% |
|
700 |
|
2,092 |
|
6.3% |
|
Indianapolis, IN |
|
4 |
|
916 |
|
91,834 |
|
96.6% |
|
1,065 |
|
1,770 |
|
5.3% |
|
Myrtle Beach, SC - Wilmington, NC |
|
3 |
|
628 |
|
64,582 |
|
94.1% |
|
1,052 |
|
1,341 |
|
4.0% |
|
Charleston, SC |
|
2 |
|
518 |
|
80,186 |
|
96.0% |
|
1,310 |
|
1,215 |
|
3.6% |
|
Huntsville, AL |
|
2 |
|
599 |
|
109,999 |
|
97.3% |
|
1,290 |
|
838 |
|
2.5% |
|
Orlando, FL |
|
1 |
|
297 |
|
49,112 |
|
97.0% |
|
1,446 |
|
825 |
|
2.5% |
|
Charlotte, NC |
|
1 |
|
208 |
|
42,304 |
|
95.9% |
|
1,489 |
|
696 |
|
2.1% |
|
Asheville, NC |
|
1 |
|
252 |
|
28,951 |
|
95.4% |
|
1,137 |
|
608 |
|
1.8% |
|
St. Louis, MO |
|
1 |
|
152 |
|
33,663 |
|
92.8% |
|
1,483 |
|
483 |
|
1.5% |
|
Total/Weighted Average |
|
56 |
|
15,667 |
|
$1,916,770 |
|
95.3% |
|
$1,136 |
|
$33,289 |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
PROJECT LIFE TO DATE AS OF DECEMBER 31, 2020
|
|
|
|
|
|
|
|
|
|
Renovation Costs per Unit (b) |
|
|
||
|
Property |
Market |
Percentage Complete |
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ongoing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crestmont |
Lexington, KY |
96.2% |
|
208 |
200 |
195 |
151 |
16.2% |
12,328 |
7,742 |
20,069 |
14.7% |
9.0% |
|
The Village at Auburn |
Atlanta, GA |
90.9% |
|
328 |
298 |
276 |
$178 |
17.0% |
$14,500 |
$2,108 |
$16,608 |
14.7% |
12.8% |
|
Jamestown |
Tampa, FL |
86.5% |
|
296 |
256 |
262 |
279 |
33.6% |
15,868 |
5,161 |
21,203 |
21.1% |
15.9% |
|
Haverford |
Louisville, KY |
85.0% |
|
160 |
136 |
134 |
90 |
10.6% |
5,541 |
798 |
6,339 |
19.6% |
17.1% |
|
Pointe at Canyon Ridge |
Raleigh-Durham, NC |
83.4% |
|
494 |
412 |
398 |
174 |
18.1% |
9,114 |
1,773 |
10,887 |
22.9% |
19.1% |
|
Oxmoor |
Atlanta, GA |
82.9% |
|
432 |
358 |
325 |
190 |
21.2% |
16,367 |
127 |
16,471 |
13.9% |
13.8% |
|
Schirm Farms |
Tampa, FL |
80.3% |
|
264 |
212 |
204 |
87 |
10.2% |
7,826 |
613 |
8,439 |
13.4% |
12.4% |
|
Arbors River Oaks |
Louisville, KY |
74.9% |
|
191 |
143 |
138 |
249 |
21.5% |
10,836 |
561 |
11,397 |
27.6% |
26.2% |
|
Creekside Corners |
Columbus, OH |
74.8% |
|
444 |
332 |
314 |
181 |
19.0% |
9,060 |
1,314 |
10,374 |
23.9% |
20.9% |
|
Stonebridge Crossing |
Memphis, TN |
74.6% |
|
500 |
373 |
346 |
142 |
16.8% |
10,452 |
1,131 |
11,584 |
16.3% |
14.7% |
|
Brunswick Point |
Columbus, OH |
70.8% |
|
288 |
204 |
196 |
62 |
6.3% |
6,926 |
56 |
6,982 |
10.7% |
10.6% |
|
The Commons at Canal Winchester |
Atlanta, GA |
67.4% |
|
264 |
178 |
158 |
215 |
24.6% |
10,820 |
402 |
11,222 |
23.8% |
23.0% |
|
Vantage at Hillsborough |
Memphis, TN |
58.9% |
|
348 |
205 |
193 |
173 |
16.5% |
14,301 |
2,155 |
16,456 |
14.5% |
12.6% |
|
Lucerne |
Atlanta, GA |
50.4% |
|
276 |
139 |
133 |
228 |
20.3% |
14,637 |
634 |
15,240 |
18.7% |
19.1% |
|
Waterford Landing |
Atlanta, GA |
43.5% |
|
260 |
113 |
108 |
163 |
15.5% |
8,766 |
685 |
9,451 |
22.3% |
20.7% |
|
Avalon Oaks |
Columbus, OH |
35.3% |
|
235 |
83 |
83 |
267 |
30.3% |
12,173 |
1,021 |
13,194 |
26.3% |
24.3% |
|
North Park |
Wilmington, NC |
34.4% |
|
224 |
77 |
74 |
157 |
15.4% |
8,486 |
268 |
8,753 |
22.2% |
21.6% |
|
Total/Weighted Average |
|
|
|
5,212 |
3,719 |
3,537 |
$173 |
18.5% |
$11,356 |
$1,712 |
$13,068 |
18.3% |
15.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocky Creek (e) |
Tampa, FL |
0.0% |
|
264 |
0 |
0 |
- |
0.0% |
- |
- |
- |
0.0% |
0.0% |
|
Thornhill (e) |
Raleigh-Durham, NC |
0.0% |
|
318 |
0 |
0 |
- |
0.0% |
- |
- |
- |
0.0% |
0.0% |
|
Walnut Hill (e) |
Memphis, TN |
0.0% |
|
362 |
0 |
0 |
- |
0.0% |
- |
- |
- |
0.0% |
0.0% |
|
Meadows (e) |
Louisville, KY |
0.0% |
|
400 |
0 |
0 |
- |
0.0% |
- |
- |
- |
0.0% |
0.0% |
|
Lenoxplace (f) |
Raleigh-Durham, NC |
0.0% |
|
268 |
0 |
0 |
- |
0.0% |
- |
- |
- |
0.0% |
0.0% |
|
Westmont Commons (f) |
Asheville, NC |
0.0% |
|
252 |
0 |
0 |
- |
0.0% |
- |
- |
- |
0.0% |
0.0% |
|
Total/Weighted Average |
|
|
|
1,864 |
0 |
0 |
$- |
0.0% |
$- |
$- |
$- |
0.0% |
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total/Weighted Average |
|
|
|
7,076 |
3,719 |
3,537 |
$173 |
18.5% |
$11,356 |
$1,712 |
$13,068 |
18.3% |
15.9% |
|
|
(a) |
The rent premium reflects the per unit per month 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 overhead 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 premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit. |
|
|
(d) |
Calculated using the rent premium per unit per month, multiplied by 12, divided by the total renovation costs per unit. |
|
|
(e) |
We expect to begin renovations at these four properties during the first half of 2021. |
|
|
(f) |
We continue to evaluate market conditions with respect to these two properties. |
22
CAPITAL RECYCLING
Dollars in thousands with respect to Contract Price and Price per Unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions 2020 |
|
Market |
|
Units |
|
Acquisition Date |
|
Purchase Price |
|
Price per Unit |
|
Average Rent Per Unit |
|
The Adley at Craig Ranch |
|
Dallas, TX |
|
251 |
|
February 11, 2020 |
|
$51,204 |
|
$204 |
|
$1,552 |
|
Legacy at Jones Farm |
|
Huntsville, AL |
|
421 |
|
December 1, 2020 |
|
94,027 |
|
$223 |
|
1,383 |
|
Total |
|
|
|
672 |
|
|
|
$145,231 |
|
$216 |
|
$1,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions 2020 |
|
Location |
|
Units |
|
Disposition Date |
|
Sale Price |
|
Price per Unit |
|
Average Rent Per Unit |
|
Trails at Signal Mountain |
|
Chattanooga, TN |
|
172 |
|
October 27, 2020 |
|
$20,000 |
|
$116 |
|
$989 |
|
Live Oak Trace |
|
Baton Rouge, LA |
|
264 |
|
November 10, 2020 |
|
25,400 |
|
96 |
|
913 |
|
Lakeshore on the Hill |
|
Chattanooga, TN |
|
123 |
|
November 23, 2020 |
|
14,330 |
|
117 |
|
1,022 |
|
Total |
|
|
|
559 |
|
|
|
$59,730 |
|
$107 |
|
$960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23
DEBT SUMMARY AS OF DECEMBER 31, 2020
Dollars in thousands
|
|
|
Amount |
|
Weighted Average Rate (c) |
|
Type |
|
Weighted Average Maturity (in years) |
|
|
Debt: |
|
|
|
|
|
|
|
|
|
|
Unsecured credit facility (a) |
|
$184,802 |
|
1.6% |
|
Floating |
|
2.4 |
|
|
Unsecured term loans (b) |
|
300,000 |
|
1.5% |
|
Floating |
|
3.3 |
|
|
Mortgages |
|
465,092 |
|
3.9% |
|
Fixed |
|
3.2 |
|
|
Unamortized deferred financing costs |
|
(4,208) |
|
|
|
|
|
|
|
|
Total Debt |
|
945,686 |
|
2.7% |
|
|
|
3.1 |
|
|
Market Equity Capitalization, at period end |
|
1,376,283 |
|
|
|
|
|
|
|
|
Total Capitalization |
|
$2,321,969 |
|
|
|
|
|
|
|
|
|
(a) |
Credit facility total capacity is $350,000, comprised entirely of an unsecured revolving line of credit, of which $184,802 was drawn as of December 31, 2020. 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) |
Represents the weighted average of the contractual interest rates in effect as of quarter-end without regard to any interest rate swaps or collars. Our total weighted average effective interest rate during 4Q 2020, after giving effect to the impact of interest rate swaps and collars, was 3.5%. |
|
|
(d) |
As of December 31, 2020, we maintained the following hedges that have effectively fixed a portion of our floating rates debt. |
|
Hedges: |
|
Notional |
|
Start |
|
End |
|
Swap Rate |
|
Floor Rate |
|
Cap Rate |
|
Swap |
|
$150,000 |
|
4/17/2017 |
|
6/17/2021 |
|
1.1325% |
|
- |
|
- |
|
Collar |
|
$100,000 |
|
11/17/2017 |
|
11/17/2024 |
|
- |
|
1.25% |
|
2.00% |
|
Collar |
|
$150,000 |
|
10/17/2018 |
|
1/17/2024 |
|
- |
|
2.25% |
|
2.50% |
|
Forward starting swap |
|
$150,000 |
|
6/17/2021 |
|
6/17/2026 |
|
2.1760% |
|
- |
|
- |
|
Forward starting swap |
|
$150,000 |
|
5/17/2022 |
|
5/17/2027 |
|
0.9850% |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
DEBT COVENANT AND UNENCUMBERED ASSET STATS AS OF DECEMBER 31, 2020
Dollars in thousands
|
Debt Covenant Summary (a) |
Requirement |
Actual |
Compliance |
|
Consolidated leverage ratio |
≤ 60% |
41.3% |
Yes |
|
Consolidated fixed charge coverage ratio |
≥ 1.5x |
2.6 |
Yes |
|
Unsecured leverage ratio |
≤ 60% |
41.0% |
Yes |
|
Unencumbered asset debt service ratio |
≥ 1.3x |
2.1 |
Yes |
|
|
(a) |
For a complete listing of all debt covenants along with definitions of each covenant calculation see the Unsecured Credit Facility and Unsecured Term Loan Agreements, which are included as exhibits 10.20, 10.6, and 10.15 of our Form 10-K. |
|
Encumbered & Unencumbered Statistics |
|
|
Total Units |
|
% of Total |
|
Gross Assets |
|
% of Total |
|
Q4 2020 NOI |
|
% of Total |
|
Unencumbered assets |
|
|
8,949 |
|
57.1% |
|
$1,106,527 |
|
56.4% |
|
$16,814 |
|
52.8% |
|
Encumbered assets |
|
|
6,718 |
|
42.9% |
|
856,368 |
|
43.6% |
|
15,058 |
|
47.2% |
|
|
|
|
15,667 |
|
100.0% |
|
$1,962,895 |
|
100.0% |
|
$31,872 |
|
100.0% |
25
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. 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
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
Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. 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 asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty losses, and abandoned deal costs. We consider 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. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.
Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)
We believe that FFO and Core FFO (“CFFO”), each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (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. While our calculation of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to FFO computations of such other REITs.
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, and other non-cash or non-operating gains or losses related to items such as casualty losses, abandoned deal costs and debt extinguishment costs from the determination of FFO.
Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our 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. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.
26
Interest Coverage
Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.
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).
We present net debt because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.
|
|
As of |
||||||||
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
|
Total debt |
$945,686 |
|
$1,004,237 |
|
$1,008,911 |
|
$1,049,541 |
|
$985,572 |
|
Less: cash and cash equivalents |
(8,751) |
|
(9,891) |
|
(11,652) |
|
(57,436) |
|
(9,888) |
|
Total net debt |
$936,935 |
|
$994,346 |
|
$997,259 |
|
$992,105 |
|
$975,684 |
|
|
|
|
|
|
|
|
|
|
|
Same Store Portfolio Net Operating Income
We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding depreciation and amortization, casualty related costs, property management expenses, general administrative expenses, interest expense, and net gains on sale of assets.
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.
Same Store Properties and Same Store Portfolio
We review our 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 |
||||||||
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
Total assets |
$1,734,897 |
|
$1,700,428 |
|
$1,708,912 |
|
$1,757,138 |
|
$1,664,106 |
|
Plus: accumulated depreciation |
208,618 |
|
194,645 |
|
187,758 |
|
172,789 |
|
158,435 |
|
Plus: accumulated amortization |
19,380 |
|
19,827 |
|
19,754 |
|
19,567 |
|
19,197 |
|
Total gross assets |
$1,962,895 |
|
$1,914,900 |
|
$1,916,424 |
|
$1,949,494 |
|
$1,841,738 |
27