INDEPENDENCE REALTY TRUST, INC.

Previous wording

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act. Such forward-looking statements include, but are not limited to, our planned use of remaining proceeds from our sales of common stock on a forward basis, our expectations with respect to the one property which we are under contract to acquire, our expectations with respect to the three properties which are classified as held for sale and our expectations with respect to future acquisitions and dispositions. All statements in this Quarterly Report on Form 10-Q that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Current wording

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act. Such forward-looking statements include, but are not limited to, our planned use of remaining proceeds from our sales of common stock on a forward basis, our expectations with respect to our new joint venture, our expectations with respect to the three properties which are classified as held for sale, the assumptions underlying the determination of the fair value of our impairment charge for our property held for sale as of September 30, 2025, and our expectations with respect to future acquisitions and dispositions. All statements in this Quarterly Report on Form 10-Q that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements.

Previous wording

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, 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, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, and our planned use of remaining proceeds from our sales of common stock on a forward basis, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, inability or failure to achieve anticipated benefits from future acquisitions and dispositions, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, economic conditions, including inflation and recessionary conditions and their related impacts on the real estate industry, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, including but not limited to a third party's unauthorized access to our data or the data of our residents, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and our other filings with the SEC, which identify a…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, 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, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, and our planned use of remaining proceeds from our sales of common stock on a forward basis, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, inability or failure to achieve anticipated benefits from future acquisitions and dispositions, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, economic conditions, including inflation and recessionary conditions and their related impacts on the real estate industry, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, the impacts from the U.S. government shutdown, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, including but not limited to a third party's unauthorized access to our data or the data of our residents, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and o…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We are a self-administered and self-managed Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”). We are primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets. As of June 30, 2025, we owned and operated 113 multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 33,175 units. Our properties are located in Alabama, Colorado, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee and Texas. In addition, as of June 30, 2025, we owned and consolidated one investment in real estate under development in Colorado that will, upon completion, contain an aggregate of 296 units. As of June 30, 2025, we also owned interests in five unconsolidated joint ventures, three that own and operate multifamily apartment communities that contain an aggregate of 886 units and two that are developing multifamily apartment communities that will contain, upon completion, an aggregate of 702 units. We do not have any foreign operations and our business is not seasonal.

Current wording

We are a self-administered and self-managed Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”). We are primarily engaged in the ownership, operation, management, improvement, and acquisition of multifamily apartment communities in non-gateway markets. As of September 30, 2025, we owned and operated 115 multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 33,818 units. Our properties are located in Alabama, Colorado, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee and Texas. In addition, as of September 30, 2025, we owned and consolidated one investment in real estate under development in Colorado that will, upon completion, contain an aggregate of 296 units. As of September 30, 2025, we also owned interests in four unconsolidated joint ventures, three that own and operate multifamily apartment communities that contain an aggregate of 862 units and one that is developing a multifamily apartment community that will contain, upon completion, 324 units. We do not have any foreign operations and our business is not seasonal.

Previous wording

As of June 30, 2025, we owned and consolidated 113 multifamily apartment properties, totaling 33,175 units. Below is a summary of our consolidated property portfolio by market.

Current wording

As of September 30, 2025, we owned and consolidated 115 multifamily apartment properties, totaling 33,818 units. Below is a summary of our consolidated property portfolio by market.

Previous wording

On February 14, 2025, we sold one multifamily apartment community in Birmingham, AL for a gross sales price of $111.0 million and used the proceeds to fund recent and anticipated property acquisitions as described below.

Current wording

On February 14, 2025, we sold one multifamily apartment community in Birmingham, AL for a gross sales price of $111.0 million and used the proceeds to fund recent property acquisitions as described below.

Previous wording

As of June 30, 2025, we had three properties classified as held for sale. We expect to close the dispositions before year end; however, there can be no assurance that these dispositions will be consummated at expected pricing levels, within expected time frames, or at all. We intend to use the proceeds from the sales, if, and when, they occur to fund future property acquisitions as part of our capital recycling program.

Current wording

As of September 30, 2025, we had three properties classified as held for sale. One property in Louisville, KY is under contract for sale and is expected to close by year end at a gain of approximately $18.0 million. We are actively marketing one property for sale in Memphis, TN and expect it to close in early 2026. We recognized a loss on impairment of $12.8 million on one property held for sale in Denver, CO and expect the sale to close in 2026. There can be no assurance that these dispositions will be consummated at expected pricing levels, within expected time frames, or at all.

Previous wording

On February 27, 2025, we acquired Autumn Breeze in Indianapolis, IN, a 280-unit multifamily apartment community for $59.5 million. This acquisition expanded our footprint in Indianapolis from 1,979 units to 2,259 units.

Current wording

On February 27, 2025, we acquired Autumn Breeze in Indianapolis, IN, a 280-unit multifamily apartment community for $59.5 million. On July 31, 2025, we acquired 3030 at Apopka in Orlando, FL, a 240-unit multifamily apartment community for $60.2 million. On August 14, 2025, we acquired M2 at Millenia 700 in Orlando, FL, a 403-unit multifamily apartment community for $94.8 million. The aggregate purchase price of these two acquisitions totaled $155.0 million, and the acquisitions increased our exposure in Orlando, FL from 617 units to 1,260 units. We used $101.0 million of proceeds from sales of our common stock under our forward sale agreements to acquire these communities on a leverage-neutral and CFFO (as defined below) accretive basis.

Previous wording

Metropolis at Innsbrook, a 402-unit property in Richmond, VA, was listed for sale during the three months ended March 31, 2025 and sold on July 21, 2025. We received $31.1 million in proceeds from the sale, comprised of a return of our initial investment of $24.5 million and equity proceeds of $6.6 million. We expect to recognize a gain of approximately $10.4 million from this sale during the third quarter 2025.

Current wording

On July 21, 2025, our joint venture sold the Metropolis at Innsbrook, a 402-unit property in Richmond, VA. We received $31.1 million in proceeds from the sale, comprised of a return of our initial investment of $24.5 million and equity proceeds of $6.6 million. During the three months ended September 30, 2025, we recognized a gain of $10.4 million from this sale.

Previous wording

As of June 30, 2025 and December 31, 2024, we had investments in unconsolidated real estate entities of $106.9 million and $92.0 million, respectively.

Current wording

As of September 30, 2025 and December 31, 2024, we had investments in unconsolidated real estate entities of $94.0 million and $92.0 million, respectively.

Previous wording

As part of our merger with Steadfast Apartment REIT, Inc., we acquired two land parcels in Denver, Colorado that were being developed into multifamily properties that will contain 621 units, in the aggregate, upon completion, one of which was completed in 2024. As of June 30, 2025, we had one investment in real estate under development of $91.8 million that is expected to contain 296 units upon completion.

Current wording

As part of our merger with Steadfast Apartment REIT, Inc., we acquired two land parcels in Denver, Colorado that were being developed into multifamily properties that will contain 621 units, in the aggregate, upon completion, one of which was completed in 2024. As of September 30, 2025, we had one investment in real estate under development of $65.6 million that is expected to contain 296 units upon completion.

Previous wording

Our value add program provides us with the opportunity to improve long-term growth through targeted unit renovations at communities where there is the potential for outsized rent growth. We completed renovations on 454 units during the three months ended June 30, 2025. From inception of our value add program in January 2018 through June 30, 2025, we completed renovations on 10,171 of the 17,381 units currently in our value add program, achieving a return on investment of 16.5% (and approximately 18.4% on the interior portion of such renovation costs). We compute return on investment by using the rent premium per unit per month, multiplied by 12, divided by the applicable renovation costs per unit and we compute the rent premium as the difference between the rental rate on the renovated unit (excluding the impact of concessions) and the market rent for a comparable unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.

Current wording

Strategically renovating communities where there is the potential for outsized rent growth (our "Value Add Initiative") provides us with the opportunity to improve long-term growth through targeted unit and/or common area investments. We completed renovations on 788 units during the three months ended September 30, 2025. From inception of our Value Add Initiative in January 2018 through September 30, 2025, we completed renovations on 10,959 of the 17,381 units currently in our Value Add Initiative, achieving a return on investment of 16.2% (and approximately 18.2% on the interior portion of such renovation costs). We compute return on investment by using the rent premium per unit per month, multiplied by 12, divided by the applicable renovation costs per unit and we compute the rent premium as the difference between the rental rate on the renovated unit (excluding the impact of concessions) and the market rent for a comparable unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.

Previous wording

On March 31, 2025, we physically settled 2.65 million of those shares at a weighted average price of $18.89 per share and we received proceeds of $50.1 million. All of the net proceeds were used to fund new acquisitions. As of June 30, 2025, 5.6 million shares of our common stock remained to be settled under the Forward Sale Agreements, which if physically settled would provide additional proceeds to us of $105.8 million based on the forward price as of June 30, 2025. We expect to physically settle the remaining Forward Sale Agreements and receive proceeds, subject to certain adjustments, from the sale of those shares upon one or more such physical settlements within approximately twelve months from the date of the prospectus supplement, no later than September 5, 2025, the scheduled maturity date of the Forward Sale Agreements. Although we expect to settle the remaining Forward Sale Agreements entirely by the physical delivery of shares of our common stock for cash proceeds, we may also elect to cash or net share settle all or a portion of our obligations under the Forward Sale Agreements, in which case, we may receive or owe cash or shares of our common stock from or to the Forward Seller. The Forward Sale Agreements provided for an initial forward sale price of $18.96 per share, subject to certain adjustments pursuant to the terms of each of the Forward Sale Agreements. The Forward Sale Agreements are subject to early termination or settlement under certain circumstances.

Current wording

On March 31, 2025, we physically settled 2.65 million of those shares at a weighted average price of $18.89 per share and we received proceeds of $50.1 million. On September 5, 2025, we amended the Forward Sale Agreements to extend the scheduled maturity date to December 31, 2025. On September 29, 2025, we physically settled 5.3 million shares pursuant to the forward sale agreements at a weighted average price of $19.06 per share and we received proceeds of $101.0 million. All of the net proceeds were used to fund new acquisitions. As of September 30, 2025, 0.3 million shares of our common stock remained to be settled under the Forward Sale Agreements with Citigroup, which if physically settled would provide additional proceeds to us of $5.7 million based on the forward sale price as of September 30, 2025. We expect to physically settle the remaining Forward Sale Agreements and receive proceeds, subject to certain adjustments, from the sale of those shares upon one or more such physical settlements, no later than December 31, 2025, the extended scheduled maturity date of the Forward Sale Agreements. Although we expect to settle the remaining Forward Sale Agreements entirely by the physical delivery of shares of our common stock for cash proceeds, we may also elect to cash or net share settle all or a portion of our obligations under the Forward Sale Agreements, in which case, we may receive or owe cash or shares of our common stock from or to the Forward Seller. The Forward Sale Agreements provided for an initial forward sale price of $18.96 per share, subject to certain adjustments pursuant to the terms of each of the Forward Sale Agreements. The Forward Sale Agreements are subject to early termination or settlement under certain circumstances.

Previous wording

During the three months ended March 31, 2025, we entered into forward sales transactions under the ATM Program for the forward sale of an aggregate of 2.7 million shares of our common stock. The forward sales transactions had not settled as of June 30, 2025, and we had not received any net proceeds from these transactions as of June 30, 2025. Subject to our right to elect net share settlement, we expect to physically settle the forward sales transactions by the maturity date of March 31, 2026. Assuming the forward sales transactions are physically settled in full utilizing the current forward sales price of $20.88 per share, we expect to receive proceeds, net of sales commissions of approximately $56.0 million, subject to adjustment in accordance with the forward sales transactions. We intend to use substantially all of the net proceeds to fund potential acquisitions and other investment opportunities or for general corporate purposes, including the reduction of outstanding borrowings under our unsecured revolver.

Current wording

During the three months ended March 31, 2025, we entered into forward sales transactions under the ATM Program for the forward sale of an aggregate of 2.7 million shares of our common stock. The forward sales transactions had not settled as of September 30, 2025, and we had not received any net proceeds from these transactions as of September 30, 2025. Subject to our right to elect net share settlement, we expect to physically settle the forward sales transactions by the maturity date of March 31, 2026. Assuming the forward sales transactions are physically settled in full utilizing the current forward sales price of $20.90 per share, we expect to receive proceeds, net of sales commissions of approximately $56.0 million, subject to adjustment in accordance with the forward sales transactions. We intend to use substantially all of the net proceeds to fund potential acquisitions and other investment opportunities or for general corporate purposes, including the reduction of outstanding borrowings under our unsecured revolver.

Previous wording

As of June 30, 2025, we owned and consolidated 113 multifamily apartment properties, of which 105 comprised the Same-Store Portfolio.

Current wording

As of September 30, 2025, we owned and consolidated 115 multifamily apartment properties, of which 105 comprised the Same-Store Portfolio.

Previous wording

Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio increased $3.8 million to $161.9 million for the three months ended June 30, 2025 from $158.1 million for the three months ended June 30, 2024. The increase was attributable to a $2.3 million increase in non same-store rental and other property revenue driven by the acquisition of four properties, three in the second half of 2024 and one in the first quarter of 2025, and a $1.5 million increase in same-store rental and other property revenue, driven by a 0.9% increase in average effective monthly rents and a 0.1% increase in average occupancy compared to the prior year period.

Current wording

Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio increased $7.0 million to $166.9 million for the three months ended September 30, 2025 from $159.9 million for the three months ended September 30, 2024. The increase was attributable to a $4.9 million increase in non same-store rental and other property revenue driven by the acquisition of six properties, three in the second half of 2024, one in the first quarter of 2025, and two in the third quarter of 2025, and a $2.1 million increase in same-store rental and other property revenue, driven by a 0.6% increase in average effective monthly rents compared to the prior year period.

Previous wording

Property operating expenses. Property operating expenses decreased $0.7 million to $120.2 million for the six months ended June 30, 2025 from $120.9 million for the six months ended June 30, 2024. The decrease was due to a $1.0 million decrease in non same-store property operating expenses due to property sales, partially offset by a $0.3 million increase in same-store operating expenses.

Current wording

*Property operating expenses.*Property operating expenses increased $1.2 million to $61.7 million for the three months ended September 30, 2025 from $60.5 million for the three months ended September 30, 2024. The increase was primarily driven by the $1.6 million increase in non same-store operating expenses due to the acquisition of three properties in 2025, partially offset by a $0.4 million decrease in same-store operating expenses from lower insurance premiums and reduced repairs and maintenance from higher resident retention.

Previous wording

Depreciation and amortization expense. Depreciation and amortization expense increased $5.7 million to$59.8 million for the three months ended June 30, 2025 from$54.1 million for the three months ended June 30, 2024. The increase was primarily due to depreciation expenses driven by capital expenditures related to our value add program and higher intangible asset amortization expenses from our recent property acquisitions compared to the same prior year period.

Current wording

Depreciation and amortization expense. Depreciation and amortization expense increased $6.5 million to$61.7 million for the three months ended September 30, 2025 from$55.3 million for the three months ended September 30, 2024. The increase was primarily due to depreciation expenses driven by capital expenditures related to our Value Add Initiative and higher intangible asset amortization expenses from our recent property acquisitions in 2025 compared to the same prior year period.

Previous wording

Interest expense. Interest expense increased $1.3 million to $18.8 million for the three months ended June 30, 2025 from $17.5 million for the three months ended June 30, 2024. The increase in interest expense was primarily driven by an increase in our effective interest rate on consolidated debt from 4.1% for the three months ended June 30, 2024 to 4.2% for the three months ended June 30, 2025, and lower interest capitalization on recently stabilized development in Denver, Colorado.

Current wording

Interest expense. Interest expense increased $2.1 million to $20.5 million for the three months ended September 30, 2025 from $18.3 million for the three months ended September 30, 2024. The increase in interest expense was primarily driven by a higher average outstanding consolidated debt balance resulting from our recent property acquisitions during the three months ended September 30, 2025 compared to the prior year period, an increase in our effective interest rate on consolidated debt balance to 4.3% for the three months ended September 30, 2025 from 4.2% for the same prior year period, and lower interest capitalization on our stabilized development in Denver, Colorado.

Previous wording

As of June 30, 2025, we owned and consolidated 113 multifamily apartment properties, of which 105 comprised the Same-Store Portfolio.

Current wording

As of September 30, 2025, we owned and consolidated 115 multifamily apartment properties, of which 105 comprised the Same-Store Portfolio.

Previous wording

Six Months Ende**d June 30, 2025 compared to the Six Months Ended June 30, 2024

Current wording

Nine Months Ende**d September 30, 2025 compared to the Nine Months Ended September 30, 2024

Previous wording

Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio increased $4.4 million to $322.8 million for the six months ended June 30, 2025 from $318.4 million for the six months ended June 30, 2024. The increase was primarily attributable to a $5.0 million increase in same-store rental and other property revenue driven by a 0.9% increase in average effective monthly rents and a 0.7% increase in average occupancy compared to the prior year period.

Current wording

Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio increased $11.4 million to $489.7 million for the nine months ended September 30, 2025 from $478.3 million for the nine months ended September 30, 2024. The increase was primarily attributable to a $7.2 million increase in same-store rental and other property revenue driven by a 0.9% increase in average effective monthly rents and a 0.4% increase in average occupancy compared to the prior year period.

Previous wording

Property management expenses. Property management expenses increased $0.3 million to $15.5 million for the six months ended June 30, 2025 from $15.2 million for the six months ended June 30, 2024. The increase was primarily due to higher compensation costs compared to the same prior year period.

Current wording

Property management expenses. Property management expenses increased $0.9 million to $23.4 million forthe nine months ended September 30, 2025 from $22.5 million forthe nine months ended September 30, 2024. The increase was primarily due to higher legal expense and settlements and higher training costs associated with enhanced new hire training compared to the same prior year period.

Previous wording

Depreciation and amortization expense. Depreciation and amortization expense increased $10.7 million to $118.5 million for thesix months ended June 30, 2025 from $107.9 million for thesix months ended June 30, 2024. The increase was primarily due to depreciation expenses driven by capital expenditures related to our value add program and higher intangible asset amortization expenses from our recent property acquisition compared to the same prior year period.

Current wording

Depreciation and amortization expense. Depreciation and amortization expense increased $17.1 million to $180.3 million for thenine months ended September 30, 2025 from $163.1 million for thenine months ended September 30, 2024. The increase was primarily due to depreciation expenses driven by capital expenditures related to our Value Add Initiative and higher intangible asset amortization expenses from our recent property acquisitions in 2025 compared to the same prior year period.

Previous wording

*Casualty losses.*During the six months ended June 30, 2025 and June 30, 2024, we incurred $0.1 million and $2.8 million in casualty losses, respectively. The loss during the six months ended June 30, 2024 was primarily due to winter storm damage and fire damage at various properties, where the carrying value of the damage exceeded insurance proceeds due to policy deductible levels.

Current wording

*Casualty losses.*During the nine months ended September 30, 2025 and September 30, 2024, we incurred $0.6 million and $4.0 million in casualty losses, respectively. The loss during the nine months ended September 30, 2024 was primarily due to winter storm damage and fire damage at various properties, where the carrying value of the damage exceeded insurance proceeds due to policy deductible levels.

Previous wording

Gain on sale (loss on impairment) of real estate assets, net. During the six months ended June 30, 2025, we sold one multi-family property resulting in a gain on sale of $1.5 million. During the six months ended June 30, 2024, we sold six multi-family properties and recognized a gain on sale of real estate, net of $10.4 million comprised of a $25.5 million gain on sale of real estate, net, partially offset by a loss on impairment of $15.1 million for one property held for sale as of June 30, 2024, as a result of the carrying value of the real estate exceeding the expected sales price less transaction costs.

Current wording

Gain on sale (loss on impairment) of real estate assets, net. During the nine months ended September 30, 2025, we recorded an impairment loss of $12.8 million on one property held for sale, partially offset by the sale of one multi-family property at a gain of $1.5 million. During the nine months ended September 30, 2024, we sold seven multi-family properties and recognized a gain on sale of real estate, net of $11.1 million comprised of a $26.2 million gain on sale of real estate, net, partially offset by a loss on impairment of $15.1 million for one property.

Previous wording

Set forth below is a reconciliation of net income to FFO and CFFO for the three and six months ended June 30, 2025 and 2024 (in thousands, except share and per share information):

Current wording

Set forth below is a reconciliation of net income to FFO and CFFO for the three and nine months ended September 30, 2025 and 2024 (in thousands, except share and per share information):

Previous wording

Set forth below is a reconciliation of GAAP net income to Same-Store Portfolio NOI for the three and six months ended June 30, 2025 and 2024 (in thousands):

Current wording

Set forth below is a reconciliation of GAAP net income to Same-Store Portfolio NOI for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

Set forth below is Same-Store Portfolio(a) NOI for the three and six months ended June 30, 2025 and 2024 (in thousands, except per unit data):

Current wording

Set forth below is Same-Store Portfolio(a) NOI for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per unit data):

Previous wording

As of June 30, 2025 and 2024, we maintained cash and cash equivalents, and restricted cash of approximately $42.5 million and $47.4 million, respectively. Our cash and cash equivalents were generated from the following activities (dollars in thousands):

Current wording

As of September 30, 2025 and 2024, we maintained cash and cash equivalents, and restricted cash of approximately $50.9 million and $48.2 million, respectively. Our cash and cash equivalents were generated from the following activities (dollars in thousands):

Previous wording

Our cash inflows from operating activities during the six months ended June 30, 2025 were primarily driven by ongoing operations of our properties. The $15.5 million increase in cash inflows from operating activities during the six months ended June 30, 2025 were primarily driven by the decrease in real estate tax obligations associated with the sale of 10 properties as part of our previously disclosed Portfolio Optimization and Deleveraging Strategy, our recent acquisitions in Charlotte, Indianapolis, Orlando and Tampa-St. Petersburg and successful appeals to lower the assessed values at certain properties. In addition, our cash inflows from operating activities increased during the six months ended June 30, 2025, as a result of improved operations at our portfolio driven primarily by increasing occupancy and average rental rates. Our cash inflows from operating activities during the six months ended June 30, 2024 were primarily driven by ongoing operations of our properties.

Current wording

Our cash inflows from operating activities during the nine months ended September 30, 2025 were primarily driven by ongoing operations of our properties. The $25.6 million increase in cash inflows from operating activities during the nine months ended September 30, 2025 was primarily driven by returns from our ongoing operations, a decrease in cash paid for real estate taxes due to the timing of property acquisitions and dispositions and a decrease in cash interest payments as a result of the timing of interest payments on our unsecured private placement notes issued in October 2024. Our cash inflows from operating activities during the nine months ended September 30, 2024 were primarily driven by ongoing operations of our properties.

Previous wording

Our cash outflows from investing activities during the six months ended June 30, 2025 were primarily due to the acquisition of one multifamily property in the amount of $58.6 million, $53.7 million of capital expenditures, $16.1 million of investments in unconsolidated real estate entities, $12.2 million of investments in real estate under development and $3.8 million in escrow deposits for pending real estate acquisitions, partially offset by $109.2 million of proceeds from the disposition of one property. Our cash inflows from investing activities during the six months ended June 30, 2024 were primarily due to $320.6 million of proceeds from the disposition of six properties under our Portfolio Optimization and Deleveraging Strategy and $3.5 million of proceeds from insurance claims, partially offset by $55.7 million of capital expenditures, $26.9 million of investments in real estate under development and $3.0 million of investments in unconsolidated real estate entities.

Current wording

Our cash outflows from investing activities during the nine months ended September 30, 2025 were primarily due to the acquisition of three multifamily properties in the amount of $152.7 million, $101.4 million of capital expenditures, $24.4 million of investments in unconsolidated real estate entities, and $16.3 million of investments in real estate under development, partially offset by $109.2 million of proceeds from the disposition of one property, $31.1 million of proceeds from the return of investment in unconsolidated real estate entities and $1.5 million of proceeds from insurance claims. Our cash inflows from investing activities during the nine months ended September 30, 2024 were primarily due to $390.8 million of proceeds from the disposition of seven properties, and $4.0 million of proceeds from insurance claims, partially offset by $92.1 million of capital expenditures, $81.2 million to acquire one multifamily property, $41.9 million of investments in real estate under development and $8.9 million of investments in unconsolidated real estate entities.

Previous wording

Our cash outflows from financing activities during the six months ended June 30, 2025 were primarily due to mortgage principal repayments of $94.4 million and payment of dividends on our common stock and noncontrolling interests of $76.0 million, partially offset by the $49.9 million issuance of common stock from our forward equity transactions. Our cash outflows from financing activities during the six months ended June 30, 2024 were primarily due to unsecured credit facility and mortgage principal repayments of $422.3 million, payment of dividends on our common stock and noncontrolling interests of $74.0 million, partially offset by $131.0 million of draws on our unsecured revolver.

Current wording

Our cash outflows from financing activities during the nine months ended September 30, 2025 were primarily due to payment of dividends on our common stock and noncontrolling interests of $116.7 million, mortgage principal repayments of $97.4 million, payments for deferred financing costs of $6.2 million, partially offset by the $150.7 million issuance of common stock from our Forward Sale Agreements. Our cash outflows from financing activities during the nine months ended September 30, 2024 were primarily due to mortgage principal repayments of $211.1 million, net repayments on our unsecured credit facility of $43.7 million and payment of dividends on our common stock and noncontrolling interests of $110.9 million.

Previous wording

There were no off-balance sheet arrangements during the six months ended June 30, 2025 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our interests.

Current wording

There were no off-balance sheet arrangements during the nine months ended September 30, 2025 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our interests.