Independence Realty Trust : IRT Investor Presentation June 2024

Cyan Craig Ranch

McKinney, TX

INVESTOR PRESENTATION June 2024

Table of Contents

Overview	2
Recent Operating Trends and Metrics	3 - 4
Company History and Performance	5 - 7
Current Priorities / Business Plan	8 - 19
Differentiated Portfolio in Attractive Markets	20 - 25
Path to Long-Term Growth	26
Appendix
2024 Guidance	28
ESG Initiatives	29
Market Statistics	30
Value Add Summary	31
Demographic Profile	32
Market Profiles	33 - 47
End Notes	48 - 49
Definitions and Non-GAAP Financial Measure Reconciliations	50 - 52
Forward-Looking Statement	53

1

IRT Overview

PORTFOLIO SUMMARY (1)

OWN AND OPERATE

110

Communities

32,685

Units

Sunbelt Exposure

74% of NOI	OK
	CO

95.4% TX

2Q24 to date Avg Occupancy

+100 basis points vs 1Q24

IN	OH
KY
TN	NC
	SC
AL	GA

IRT's Operating Communities

FL	Asset Held for Sale

SAME STORE HIGHLIGHTS

Q1 2024 (2)

• Revenue growth: 3.4% Y-o-Y
• Resident retention: 54.3%, +610bps Y-o-Y and +330bps Q-o-Q
• Avg rental rate: +1.5% to $1,551
• NOI growth: 2.4% Y-o-Y

UPSIDE FROM VALUE ADD

• Projects to date have generated a 19.3% unlevered return on
  interior costs and an avg rental increase of 20.5% (3)
• ~12,000 units available for value add renovation

2024 GUIDANCE

• Same Store property revenue growth of 3.75% and NOI
  growth of 2.5% at the midpoint of our guided range(4)
• Core FFO per share guidance range of $1.12-$1.16

All notations throughout this presentation appear as "End Notes" on pages 48-49.

2

Recent Operating Trends

Occupancy

and Retention

• Same store occupancy continues to improve, increasing from 94.7%
  as of December 31, 2023 to 95.7% as of May 31, 2024, a 100 basis point increase.
• The focus on resident renewal and retention is supporting this occupancy growth with YTD retention of 55.2% , an increase of 300 basis points Y-o-Y.
• New leads have increased 21%
  YTD due to robust demand for Class B apartments, as we continue to use incremental advertising efforts to identify and source qualified leads.

Effective Same-Store Rental Rate Trade Outs

• Blended same store rental rates have increased 1.7% QTD.
• While renewal rate increases are lower in Q2 2024 to date due to our focus on resident retention and occupancy, we are seeing an improvement in June where renewal increases are currently averaging 4.2% with retention for June already at 51.4% of June expirations.
• New lease trade outs have improved from -2.4%in Q1 2024 to -0.7%so far in Q2 2024.

Operating

Expenses

• Operating expenses are trending lower than expected as
  we continue to focus on controlling costs.
• Our recent property insurance renewal on May 15, 2024 saw a decrease in our premiums by 10%, lower than the 17.5% increase we expected.

3

Strong Performance Across Key Operating Metrics

Same Store Excluding Value Add		Same Store Value Add		Same Store Total (1)

Occupancy

(3)

Same Store Total Lease over Lease Rent Growth (2)

	New Leases								Renewals			Blended
3%	2.6%			6%						6%
					4.8%	4.9%
2%				5%				5%
1%	0.5%						4.4%	4.2%
			4%					4%
0%
-0.9%	-0.7%								3.0% 2.9%				2.9%
-1%			3%					3%
								2.5%
-2.4%
-2%														1.7%
			2%		2.3%				2%	1.6%
-3%				1%						1%	1.2%
-4%
-4.2%													0.2%
-5%			0%						0%
								Q2 23 Q3 23 Q4 23 Q1 24 Apr-24May-24(4)
	Q2 23 Q3 23 Q4 23 Q1 24 Apr-24May-24				Q2 23	Q3 23	Q4 23 Q1 24	Apr-24May-24Jun-24

(prelim)

Note: As of May 31, 2024, same-store portfolio occupancy was 95.7%, same-store portfolio excluding ongoing value add occupancy was 95.9% and value add occupancy was 95.0%. All notations throughout this presentation appear as "End Notes" on pages 48-49.

4

Company History

Aug. 2013	Sep. 2015	Dec. 2016	Apr. 2018	Dec. 2021	Oct. 2023
Completes IPO;	Acquires Trade	Completes	Commences first	Acquires Steadfast	Announces Portfolio
begins trading on	Street Residential	internalization of	phase of value-add	Apartment REIT	Optimization and
the NYSE	(NASDAQ: TSRE) for	management (1)	renovations	("STAR") for $2.6bn	Deleveraging
	$264 mm		initiative		Strategy

of Operating Units (2)

Acquired 68 properties	Steadfast
21,394 units (3)	Acquisition

35,498 35,526

Acquired 19 properties

4,989 units

34,431

32,685

Total Number

Trade Street

Acquisition

15,880 15,554 15,667

13,724	14,017
	12,982

8,819

2,790

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

5

IRT is Delivering Industry Leading Operating Performance

Relative to peers in non-gateway and coastal markets, IRT outpaced industry growth over the past few years and momentum is expected to continue due to our attractive location in sunbelt markets, as well as our investments in value add renovations and new development initiatives

Same Store NOI Growth		CFFO per Share Growth

145								IRT
140
135
						Non-Gateway
130
125
120
						Peer Group
115								Coastal
110
105
100
95
90
2019	2020	2021	2022	2023	2024
							Guidance
							(Mid-Point)
			IRT	Non-Gateway	Coastal		Peer Group

155		IRT
150
145
Non-Gateway
140

135

130

125	Peer Group
120
115	Coastal

110

105

100

95
90
2019	2020	2021	2022	2023	2024
							Guidance
							(Mid-Point)
			IRT	Non-Gateway	Coastal		Peer Group

Source: Company reports; coastal peer group includes AVB, EQR, ESS, and UDR; non-gateway peer group includes CPT, CSR, MAA, and NXRT. Same store NOI growth and CFFO per share metrics are based on the definitions used by the peer group companies and may not be comparable.

6

Track Record of Value Creation

IRT has a proven track record of outperforming its peers

Year-to-Date(1)

3-Year

5-Year

Since IPO(2)

300%

277%

250%

200%

157%

150%

98%

100%
											85%
50%
	10%							19%	17%
					6%
		2%
0%
	-1%	-6%
-3%
-50%
				RMS			Multifamily Index			IRT

Source: Bloomberg Market data as of May 31, 2024.

Note: Represents compound total return, with dividends reinvested.

7

Current Priorities / Business Plan

1

2

3

4

5

Continue value add renovations

at ~2,500 annually

Complete on-balance sheet and joint venture developments

Capital recycling to position portfolio for long-term growth while deleveraging

Use free cash flow to further delever the balance sheet to ~5.0x

Drive on-site efficiencies through

the use of technology

Talison Row at Daniel Island Charleston, SC

Miller Creek at Germantown Memphis, TN

8

1 Value Add Program: Improving Our Growth Profile

IRT's historical projects have generated an 17.5% return on investment across approximately 8,091 units,

resulting in around $280 million of incremental value creation (1)

Sizeable ~15,000 unit value add pipeline providing up to ~$600 million of incremental shareholder value

Value Add Pipeline (2)

		In-Place Program	Identified 2024	Future Pipeline	Total
($ in millions)	Starts
	Units to Renovate	11,856	1,425	9,381	22,662
	Units Renovated-to-Date	(8,091)	-	-	(8,091)
	Remaining Units to Renovate	3,765	1,425	9,381	14,571
	Remaining Renovation Costs (3)	$68 - $72	$26 - $27	$169 - $178	$262 - $277
	Incremental NOI (4)	$12- $13	$4- $5	$30 - $31	$46 - $48
	Incremental Value Creation (5)	$148 - $156	$56 - $59	$368 - $389	$572 - $604

All notations throughout this presentation appear as "End Notes" on pages 48-49.

9