INDEPENDENCE REALTY TRUST, INC.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
IRT$15.00-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001437749-26-025677
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001437749-26-034667
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 89 previous paragraphs and 101 current paragraphs.
53 unchanged; 33 reworded; 15 added; 2 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Pending Merger
Current report
On September 8, 2026, we, IROP and Islanders OP Sub, LLC, a wholly-owned subsidiary of IROP (“IROP Merger Sub”), entered into an agreement and plan of merger with Centerspace (“CSR”), and its operating partnership, Centerspace, LP (“CSR OP”). On September 22, 2026, Islanders Sub, LLC, a wholly-owned subsidiary of IRT (“IRT Merger Sub”), was added as a party by joinder, and the parties entered into an amendment to the agreement and plan of merger pursuant to which IRT elected to implement an alternative structure with respect to the Company Merger (as defined below) (as amended, the “Merger Agreement”).
Current report
On the terms, and subject to the conditions of, the Merger Agreement, CSR will merge with and into IRT Merger Sub (the “Company Merger”), with IRT Merger Sub surviving the Company Merger; and immediately thereafter, IROP Merger Sub will merge with and into CSR OP (the “Partnership Merger” and, together with the Company Merger, the “Mergers”), with CSR OP surviving the Partnership Merger.
Current report
In the Company Merger, each outstanding share of CSR common stock will be converted into 3.800 (the “Exchange Ratio”) newly issued shares of IRT common stock, par value $0.01 per share (“IRT common stock”), with cash paid in lieu of any fractional shares. In the Partnership Merger, each outstanding common unit of CSR OP will be converted into the right to receive a number of newly issued common units of IROP (each, an “IROP common unit”) equal to the Exchange Ratio, and each outstanding Series D Preferred Unit and Series E Preferred Unit of CSR OP will be converted into one Series A Preferred Unit and one Series B Preferred Unit of IROP, respectively, with each series A Preferred Unit holder and Series B Preferred Unit holder having the right to exchange them into a number of IROP common units equal to 1.37931 or 1.20482, respectively, multiplied by the Exchange Ratio. Consummation of the Mergers is subject to customary closing conditions, including, among others, receipt of IRT stockholder approval and CSR shareholder approval. We currently expect the Mergers to close as early as the end of the fourth quarter of 2026.
Current report
In conjunction with the Mergers, we have incurred approximately $6.2 million in merger-related transaction costs during the three and nine months ended September 30, 2026. The costs incurred to date primarily consist of advisory fees, attorney fees, accountant fees and SEC filing fees and are presented in a separate line item on the face of the condensed consolidated statements of operations. IRT will be treated as the accounting acquiror in the Mergers, which will be accounted for under the acquisition method, with any excess of the purchase price over the fair value of the net assets acquired allocated to goodwill.
Current report
Dispositions
Current report
On September 10, 2026, we sold one multifamily apartment community in Memphis, TN for a gross sale price of $55.8 million, resulting in a gain of $26.5 million.
Current report
On October 1, 2026, we acquired our joint venture partner's 15% membership interest for $7.5 million and assumed full operational control and 100% equity ownership of The Mustang, the property underlying the joint venture. The Mustang is a 275-unit operating community in Dallas, Texas, which was 94% occupied, with an average effective monthly rent per occupied unit of $3,071, as of September 30, 2026. We will consolidate the property into our financial results effective October 1, 2026.
Current report
Property management expenses. Property management expenses decreased $0.2 million to $7.7 million for the three months ended September 30, 2026 from $7.9 million for the three months ended September 30, 2025.* *The decrease was driven by lower legal fees and meeting and conferences costs, partially offset by higher salary and stock-based compensation.
Current report
Gain on sale (loss on impairment) of real estate assets, net. During the three months ended September 30, 2026, we recorded a gain on sale of $26.5 million for the sale of one multi-family property. During the three months ended September 30, 2025, we recorded a loss on impairment of $12.8 million for one multi-family property held for sale.
Current report
Merger and integration costs. In connection with the proposed Mergers with CSR, we incurred approximately $6.2 million of merger-related transaction costs during the three months ended September 30, 2026. The merger-related costs incurred to date primarily consist of advisory fees, attorney fees, accountant fees and SEC filing fees.
Current report
Nine Months Ended September 30, 2026 compared to the Nine Months Ended September 30, 2025
Current report
*Gain on sale (loss on impairment) of real estate assets, net.During the nine months ended September 30, 2026, we recorded a gain on sale of $26.5 million for one multi-family property. 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.
Current report
*Merger and integration costs.*In connection with the proposed Mergers with CSR, we incurred approximately $6.2 million of merger-related transaction costs during the nine months ended September 30, 2026. The merger-related costs incurred to date primarily consist of advisory fees, attorney fees, accountant fees and SEC filing fees.
Current report
(Loss) income from investments in unconsolidated real estate entities. (Loss) income from investments in unconsolidated real estate entities changed by $11.1 million to a loss of $2.4 million for the nine months ended September 30, 2026 from income of $8.7 million for the nine months ended September 30, 2025. The change was primarily driven by the $10.4 million gain recorded during the nine months ended September 30, 2025 related to the sale by our joint venture partner of the Metropolis at Innsbrook property and higher depreciation expense from our unconsolidated real estate entities during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Removed paragraphs (2)
Previous report
Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025
Previous report
*Gain on sale 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.
Reworded paragraphs (33)
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 expectations with respect to the timing and terms of sales, if any, with respect to the two properties which are classified as held for sale as of June 30, 2026, our expectations with respect to projects scheduled to start in 2026 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 Exchange Act. Such forward-looking statements include, but are not limited to, statements regarding the proposed Mergers with CSR, including the expected timing of closing of the Mergers, the anticipated benefits of the Mergers, the merger-related costs we expect to incur and the expected ownership of the combined company, our expectations with respect to the timing and terms of sales, if any, with respect to the one property which is classified as held for sale as of September 30, 2026, our expectations with respect to projects scheduled to start in 2027, our expectations with respect to future acquisitions and dispositions and the completion of our joint venture development projects and our expectations regarding any future ATM program. 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 increased 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, delays in the completion of, and failure to achieve anticipated benefits of, our projects with our joint venture partners, 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 Programs and failure to achieve rent increases and occupancy levels on account of the Value Add Programs, unexpected impairments or impairments in excess of our estimates, new and/or 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 impacts from existing and/or future U.S. foreign policy decisions including the involvement of the U.S. in foreign disputes and foreign wars, 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…
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 IRT’s and CSR’s ability to complete the Mergers on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary stockholder and shareholder approvals and satisfaction of other closing conditions to consummate the Mergers, the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the Merger Agreement, delays in completing the Mergers, the possibility that the anticipated benefits of the Mergers are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where CSR and IRT do business, the possibility that the Mergers may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the ability of CSR and IRT to meet expectations regarding the timing, completion and accounting and tax treatment of the Mergers, potential adverse reactions or changes to business, customer or employee relationships, including those resulting from the announcement or completion of the Mergers, the loss of key personnel and the diversion of management’s attention, restrictions under the Merger Agreement on the conduct of our business, including the payment of dividends, pending completion of the Mergers, litigation relating to the Mergers, the ability to complete the Mergers and integration of CSR and IRT successfully, the increase in our indebtedness and the availability of financing on anticipated terms in connection with the Mergers, limitations under tax protection agreements we expect to assume in the Mergers, unknown liabilities of CSR and potential impairment charges following the Mergers, the dilution caused by IRT’s issuance of additional shares of its capital stock in connection with the Mergers, our ability to continue to pay dividends at current rates following the Mergers, 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, delays in the completion of, and failure to achieve anticipated benefits of, our projects with our joint venture partners, inability to sell certain assets, including those assets design…
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, 2026, we owned and operated 116 multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 33,898 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, 2026, we owned one newly developed property in Austin, Texas that contains 378 units. As of June 30, 2026, we also owned interests in three unconsolidated joint ventures, one of which owns and operates a multifamily apartment community that contains 275 units and two of which that are developing multifamily apartment communities that will contain, upon completion, an aggregate of 642 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 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, 2026, we owned and operated 115 multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 33,398 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, 2026, we owned one newly developed property in Austin, Texas that contains 378 units. As of September 30, 2026, we also owned interests in three unconsolidated joint ventures, one of which owns and operates a multifamily apartment community that contains 275 units and two of which that are developing multifamily apartment communities that will contain, upon completion, an aggregate of 642 units. We do not have any foreign operations and our business is not seasonal.
Previous wording
As of June 30, 2026, we owned and consolidated 116 multifamily apartment properties, totaling 33,898 units. Below is a summary of our consolidated property portfolio by market.
Current wording
As of September 30, 2026, we owned and consolidated 115 multifamily apartment properties, totaling 33,398 units. Below is a summary of our consolidated property portfolio by market.
Previous wording
As of June 30, 2026 and December 31, 2025, we had investments in unconsolidated real estate entities of $70.0 million and $98.3 million, respectively.
Current wording
As of September 30, 2026 and December 31, 2025, we had investments in unconsolidated real estate entities of $77.8 million and $98.3 million, respectively.
Previous wording
As of June 30, 2026, we had one investment in real estate under development of $67.8 million, which contains an aggregate of 378 units and is currently in lease-up. During the three months ended June 30, 2026, our previously disclosed development property in Denver, Colorado was completed and transitioned into our stabilized operating portfolio, and is included in the multifamily apartment properties.
Current wording
As of September 30, 2026, we had one investment in real estate under development of $59.2 million, which contains an aggregate of 378 units and is currently in lease-up. During the three months ended June 30, 2026, our previously disclosed development property in Denver, Colorado was completed and transitioned into our stabilized operating portfolio, and is included in the multifamily apartment properties.
Previous wording
Strategically renovating communities where there is the potential for outsized rent growth (our "Value Add Program") provides us with the opportunity to improve long-term growth through targeted unit and/or common area investments. We completed renovations on 600 units during the three months ended June 30, 2026. From inception of our Value Add Program in January 2018 through June 30, 2026, we completed renovations on 12,471 of the 18,592 units currently in our Value Add Program, achieving a return on investment of 15.9% (and approximately 18.0% 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 Program") provides us with the opportunity to improve long-term growth through targeted unit and/or common area investments. We completed renovations on 744 units during the three months ended September 30, 2026. From inception of our Value Add Program in January 2018 through September 30, 2026, we completed renovations on 13,212 of the 18,592 units currently in our Value Add Program, achieving a return on investment of 15.8% (and approximately 17.9% 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 February 11, 2026, Independence Realty Operating Partnership, LP (“IROP”) entered into the Sixth Amended and Restated Credit Agreement (the “Sixth Restated Credit Agreement”) by and among IROP, as borrower, Independence Realty Trust, Inc., as parent guarantor, KeyBank National Association, as administrative agent, and the other agents and lender parties thereto, which amended and restated in its entirety the Fifth Amended and Restated Credit Agreement dated as of January 8, 2025 (the “Fifth Restated Credit Agreement”). The Fifth Restated Credit Agreement provided for a $750.0 million unsecured revolving credit facility (the “Unsecured Revolver”) with a January 8, 2029 scheduled maturity date and two unsecured term loans, specifically: (i) a $200.0 million term loan with a May 18, 2026 maturity date (the “2026 Term Loan”) and (ii) a $400.0 million term loan with a January 28, 2028 maturity date (the “2028 Term Loan”). The Sixth Restated Credit Agreement provides for a new $350.0 million unsecured term loan with a maturity date of February 11, 2030, subject to a one year extension option (the “2030 Term Loan”). A portion of the proceeds from the 2030 Term Loan were used to pay off outstanding borrowings under the 2026 Term Loan.
Current wording
On February 11, 2026, IROP entered into the Sixth Amended and Restated Credit Agreement (the “Sixth Restated Credit Agreement”) by and among IROP, as borrower, Independence Realty Trust, Inc., as parent guarantor, KeyBank National Association, as administrative agent, and the other agents and lender parties thereto, which amended and restated in its entirety the Fifth Amended and Restated Credit Agreement dated as of January 8, 2025 (the “Fifth Restated Credit Agreement”). The Fifth Restated Credit Agreement provided for a $750.0 million unsecured revolving credit facility (the “Unsecured Revolver”) with a January 8, 2029 scheduled maturity date and two unsecured term loans, specifically: (i) a $200.0 million term loan with a May 18, 2026 maturity date (the “2026 Term Loan”) and (ii) a $400.0 million term loan with a January 28, 2028 maturity date (the “2028 Term Loan”). The Sixth Restated Credit Agreement provides for a new $350.0 million unsecured term loan with a maturity date of February 11, 2030, subject to a one year extension option (the “2030 Term Loan”). A portion of the proceeds from the 2030 Term Loan were used to pay off outstanding borrowings under the 2026 Term Loan.
Previous wording
On May 18, 2022, our board of directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250.0 million in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time. During the six months ended June 30, 2026, we repurchased and retired 1.8 million shares of common stock under our Stock Repurchase Program at a weighted average price of $16.24 per share at a total cost of $29.9 million. No shares were repurchased under our Stock Repurchase Program during the three months ended June 30, 2026. As of June 30, 2026, $190.1 million in shares of our common stock remained authorized for repurchase under our Stock Repurchase Program.
Current wording
On May 18, 2022, our board of directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250.0 million in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors, including the price and availability of our shares, trading volumes and general market conditions. The Stock Repurchase Program has no time limit and may be suspended or discontinued at any time. During the nine months ended September 30, 2026, we repurchased and retired 1.8 million shares of common stock under our Stock Repurchase Program at a weighted average price of $16.24 per share at a total cost of $29.9 million. No shares were repurchased under our Stock Repurchase Program during the three months ended September 30, 2026. As of September 30, 2026, $190.1 million in shares of our common stock remained authorized for repurchase under our Stock Repurchase Program.
Previous wording
As of June 30, 2026, we owned and consolidated 116 multifamily apartment properties, of which 109 comprised the Same-Store Portfolio.
Current wording
As of September 30, 2026, we owned and consolidated 115 multifamily apartment properties, of which 109 comprised the Same-Store Portfolio.
Previous wording
Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio increased $5.2 million to $167.1 million for the three months ended June 30, 2026 from $161.9 million for the three months ended June 30, 2025. The increase was attributable to a $3.8 million increase in non same-store rental and other property revenue primarily driven by two newly developed properties and the acquisition of three properties since June 30, 2025 earning a full quarter of rental and other property revenue in 2026 and a $1.5 million increase in same-store rental and other property revenue driven by higher other income, lower bad debt and higher average monthly rent 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 $5.1 million to $172.0 million for the three months ended September 30, 2026 from $166.9 million for the three months ended September 30, 2025. The increase was attributable to a $3.1 million, or 2.0% increase in same-store rental and other property revenue driven by higher other income from the rollout of the Wi-Fi program of $2.3 million, lower bad debt and higher average monthly rent compared to the prior year period and a $2.0 million increase in non same-store rental and other property revenue primarily driven by two newly developed properties and the acquisition of two properties since September 30, 2025 earning a full quarter of rental and other property revenue in 2026.
Previous wording
*Property operating expenses.*Property operating expenses increased $2.4 million to $63.4 million for the three months ended June 30, 2026 from $60.9 million for the three months ended June 30, 2025. The increase was primarily driven by a $2.2 million increase in non same-store operating expenses due to the acquisition of three properties since June 30, 2025 incurring a full quarter of operating expenses in 2026. In addition, the $0.3 million increase in same-store operating expenses was due to higher payroll costs, utilities and contract services, partially offset by lower insurance expenses.
Current wording
*Property operating expenses.*Property operating expenses increased $2.6 million to $64.3 million for the three months ended September 30, 2026 from $61.7 million for the three months ended September 30, 2025. The increase was primarily driven by a $1.5 million increase in same-store operating expenses due to higher contract services, real estate taxes and advertising expenses, partially offset by lower insurance expenses. In addition, non same-store operating expenses increased $1.2 million due to the acquisition of two properties since September 30, 2025 incurring a full quarter of operating expenses in 2026.
Previous wording
Depreciation and amortization expense. Depreciation and amortization expense increased $5.1 million to$64.9 million for the three months ended June 30, 2026 from$59.8 million for the three months ended June 30, 2025. The increase was primarily due to our Value Add Program and properties acquired or placed in service since January 1, 2025, offset by our held for sale and sold properties for which depreciation ceased.
Current wording
Depreciation and amortization expense. Depreciation and amortization expense increased $4.1 million to$65.9 million for the three months ended September 30, 2026 from$61.7 million for the three months ended September 30, 2025. The increase was primarily due to our Value Add Program and properties acquired or placed in service since January 1, 2025, partially offset by our held for sale and sold properties for which depreciation ceased.
Previous wording
Interest expense. Interest expense increased $2.8 million to $21.6 million for the three months ended June 30, 2026 from $18.8 million for the three months ended June 30, 2025. The increase during the three months ended June 30, 2026, was primarily driven by the higher average debt balance associated with our acquisitions and a decrease in capitalized interest associated with our real estate under development.
Current wording
Interest expense. Interest expense increased $2.3 million to $22.7 million for the three months ended September 30, 2026, from $20.4 million for the three months ended September 30, 2025. The increase during the three months ended September 30, 2026, was primarily driven by a higher average debt balance resulting from borrowings on our lines of credit to fund our 2026 acquisitions and a mortgage assumed in connection with one of those acquisitions, and a decrease in capitalized interest associated with our real estate under development, partially offset by lower SOFR rates.
Previous wording
Loss from investments in unconsolidated real estate entities. Loss from investments in unconsolidated real estate entities increased $0.7 million to $1.9 million for the six months ended June 30, 2026 from $1.2 million for the six months ended June 30, 2025. The increase in loss from investments in unconsolidated real estate entities is primarily driven by higher depreciation expense from our unconsolidated real estate entities during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
(Loss) income from investments in unconsolidated real estate entities.(Loss) income from investments in unconsolidated real estate entities changed by $10.4 million to a loss of $0.6 million for the three months ended September 30, 2026 from income of $9.8 million for the three months ended September 30, 2025. The change was primarily driven by the $10.4 million gain recorded during the three months ended September 30, 2025 related to the sale by our joint venture partner of the Metropolis at Innsbrook property and higher depreciation expense from our unconsolidated real estate entities during the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
As of June 30, 2026, we owned and consolidated 116 multifamily apartment properties, of which 109 comprised the Same-Store Portfolio.
Current wording
As of September 30, 2026, we owned and consolidated 115 multifamily apartment properties, of which 109 comprised the Same-Store Portfolio.
Previous wording
Rental and other property revenue. Revenue from rental and other property revenue of the consolidated portfolio increased $9.5 million to $332.3 million for the six months ended June 30, 2026 from $322.8 million for the six months ended June 30, 2025. The increase was attributable to a $6.0 million increase in non same-store rental and other property revenue primarily driven by two newly developed properties and the acquisition of three properties in 2025 earning rental and other property revenue for the full period in 2026 and a $3.6 million increase in same-store rental and other property revenue driven by higher other income, lower bad debt and higher average monthly rent 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 $14.6 million to $504.3 million for the nine months ended September 30, 2026 from $489.7 million for the nine months ended September 30, 2025. The increase was attributable to a $6.6 million, or 1.4%, increase in same-store rental and other property revenue driven by higher other income from the rollout of the Wi-Fi program of $2.8 million, lower bad debt and higher average monthly rent compared to the prior year period and an $8.0 million increase in non same-store rental and other property revenue primarily driven by two newly developed properties and the acquisition of three properties in 2025 earning rental and other property revenue for the full period in 2026.
Previous wording
*Property operating expenses.*Property operating expenses increased $5.3 million to $125.5 million for the six months ended June 30, 2026 from $120.2 million for the six months ended June 30, 2025. The increase was primarily driven by a $3.9 million increase in non same-store operating expenses due to two newly developed properties and the acquisition of three properties in 2025 incurring operating expenses for the full period in 2026. In addition, the $1.4 million increase in same-store operating expenses was due to higher payroll costs, utilities and contract services, partially offset by lower insurance expenses.
Current wording
*Property operating expenses.*Property operating expenses increased $7.9 million to $189.8 million for the nine months ended September 30, 2026 from $181.9 million for the nine months ended September 30, 2025. The increase was primarily driven by a $2.9 million increase in same-store operating expenses due to higher payroll costs, utilities and contract services, partially offset by lower insurance expenses. In addition, non same-store operating expenses increased $5.1 million due to two newly developed properties and the acquisition of three properties in 2025 incurring operating expenses for the full period in 2026.
Previous wording
Property management expenses. Property management expenses increased $0.6 million to $16.2 million for the six months ended June 30, 2026 from $15.5 million for the six months ended June 30, 2025.* *The increase was primarily driven by $0.4 million of costs associated with an expanded new hire training program that was launched in mid-2025.
Current wording
Property management expenses. Property management expenses increased $0.4 million to $23.8 million for the nine months ended September 30, 2026 from $23.4 million for the nine months ended September 30, 2025.* *The increase was primarily driven by $0.4 million of costs associated with an expanded new hire training program that was launched in mid-2025, but operated for all of the nine months ended September 30, 2026, partially offset by lower software costs, meeting and conference costs and legal fees.
Previous wording
Depreciation and amortization expense. Depreciation and amortization expense increased $11.0 million to$129.5 million for thesix months ended June 30, 2026 from$118.5 million for the six months ended June 30, 2025. The increase was primarily due to our Value Add Program and properties acquired or placed in service since January 1, 2025, offset by our held for sale and sold properties for which depreciation ceased.
Current wording
Depreciation and amortization expense. Depreciation and amortization expense increased $15.1 million to$195.4 million for thenine months ended September 30, 2026 from$180.3 million for the nine months ended September 30, 2025. The increase was primarily due to our Value Add Program and properties acquired or placed in service since January 1, 2025, partially offset by our held for sale and sold properties for which depreciation ceased.
Previous wording
Casualty (gains) losses, net. During the six months ended June 30, 2026 and June 30, 2025 we incurred casualty gain of $0.5 million and casualty loss of $0.1 million, respectively. The gain was primarily due to insurance recoveries in excess of the amount of losses incurred for casualty events.
Current wording
Casualty losses, net. During the nine months ended September 30, 2026 and 2025, we incurred casualty losses, net, of less than $0.1 million and $0.6 million, respectively. The decrease was primarily due to insurance recoveries in excess of the amount of losses incurred for casualty events during thenine months ended September 30, 2026, primarily related to the settlement of several prior-period fire claims.
Previous wording
Interest expense. Interest expense increased $4.2 million to $42.3 million for the six months ended June 30, 2026 from $38.1 million for the six months ended June 30, 2025. The increase during the six months ended June 30, 2026, was primarily driven by the higher average debt balance associated with our acquisitions and a decrease in capitalized interest associated with our real estate under development.
Current wording
Interest expense. Interest expense increased $6.5 million to $65.0 million for the nine months ended September 30, 2026, from $58.5 million for the nine months ended September 30, 2025. The increase during the nine months ended September 30, 2026, was primarily driven by a higher average debt balance resulting from borrowings on our lines of credit to fund our 2026 acquisitions and a mortgage assumed in connection with one of those acquisitions, and a decrease in capitalized interest associated with our real estate under development, partially offset by lower SOFR rates.
Previous wording
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.
Current wording
We believe that funds from operations (“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, loss on impairment (gain on sale) of real estate and unconsolidated real estate entities, 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.
Previous wording
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 depreciation and amortization of other items not included in FFO, and other non-cash or non-operating gains or losses related to items such as casualty (gains) losses, loan premium accretion and discount amortization and debt extinguishment costs from the determination of FFO.
Current wording
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 depreciation and amortization of other items not included in FFO, and other non-cash, non-operating gains or losses or non-recurring items related to items such as merger and integration costs, which are cash costs that we do not consider indicative of our ongoing operations, casualty (gains) losses, loan premium accretion and discount amortization and debt extinguishment costs from the determination of FFO.
Previous wording
Set forth below is a reconciliation of net income to FFO and CFFO for the three and six months ended June 30, 2026 and 2025 (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, 2026 and 2025 (in thousands, except share and per share information):
Previous wording
We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful supplemental measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expenses, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative 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 insofar as the measure reflects only operating income and expense at the property level. 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, financing expenses, and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.
Current wording
We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful supplemental measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding interest expenses, depreciation and amortization, casualty related costs and gains, merger and integration costs, property management expenses, general and administrative 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 insofar as the measure reflects only operating income and expense at the property level. 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, financing expenses, and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as a supplemental measure of our financial performance and should not be considered as an alternative to net income or any other GAAP measure.
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, 2026 and 2025 (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, 2026 and 2025 (in thousands):
Previous wording
Set forth below is Same-Store Portfolio(a) NOI for the three and six months ended June 30, 2026 and 2025 (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, 2026 and 2025 (in thousands, except per unit data):
Previous wording
As of June 30, 2026 and 2025, we maintained cash and cash equivalents, and restricted cash of approximately $46.7 million and $42.5 million, respectively. Our cash and cash equivalents were generated from the following activities (dollars in thousands):
Current wording
As of September 30, 2026 and 2025, we maintained cash and cash equivalents, and restricted cash of approximately $43.3 million and $50.9 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, 2026 and 2025 were primarily driven by ongoing operations of our properties. The $6.4 million decrease in cash inflows from operating activities during the six months ended June 30, 2026 was primarily driven by $4.5 million in timing of real estate tax payments and $1.7 million in prepaid rents.
Current wording
Our cash inflows from operating activities during the nine months ended September 30, 2026 and 2025 were primarily driven by ongoing operations of our properties. The $4.5 million decrease in cash inflows from operating activities during the nine months ended September 30, 2026 was primarily driven by $9.2 million in timing of real estate tax payments and $2.2 million in prepaid rents.
Previous wording
Our cash outflows from investing activities during the six months ended June 30, 2026 were primarily due to the acquisition of one multifamily property in the amount of $29.4 million, $63.9 million of capital expenditures, $16.5 million of investments in unconsolidated real estate entities and $4.1 million of investments in real estate under development. Our cash outflows from investing activities during the six months ended June 30, 2025 were primarily due to $58.6 million to acquire one multifamily property, $53.7 million of capital expenditures, $16.1 million of investments in unconsolidated real estate entities and $12.2 million of investments in real estate under development, partially offset by $109.2 million of proceeds from the disposition of one property.
Current wording
Our cash outflows from investing activities during the nine months ended September 30, 2026 were primarily due to the acquisition of one multifamily property in the amount of $29.4 million, $107.6 million of capital expenditures, $25.2 million of investments in unconsolidated real estate entities and $5.6 million of investments in real estate under development, partially offset by $54.4 million of proceeds from the disposition of one property. 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.
Previous wording
Our cash outflows from financing activities during the six months ended June 30, 2026 were primarily due to $122.0 million of mortgage principal repayments and payoffs, the payment of dividends on our common stock and noncontrolling interests of $82.6 million and repurchases of common stock under the Stock Repurchase Program in an aggregate amount of $29.9 million, partially offset by $215.9 million of net proceeds from our unsecured revolver and term loan. 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.
Current wording
Our cash outflows from financing activities during the nine months ended September 30, 2026 were primarily due to $165.7 million of mortgage principal repayments and payoffs, the payment of dividends on our common stock and noncontrolling interests of $126.1 million and repurchases of common stock under the Stock Repurchase Program in an aggregate amount of $29.9 million, partially offset by $218.6 million of net proceeds from our unsecured revolver and term loan. Our cash outflows from financing activities during the nine months ended September 30, 2025 were primarily due to mortgage principal repayments of $97.4 million, payment of dividends on our common stock and noncontrolling interests of $116.7 million and payments for deferred financing costs of $6.2 million, partially offset by the $150.7 million issuance of common stock from our forward equity transactions.
Previous wording
There were no off-balance sheet arrangements during the six months ended June 30, 2026 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, 2026 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Casualty (gains) losses, net. During the three months ended June 30, 2026 and June 30, 2025 we incurred casualty gain of $0.5 million and casualty loss of $0.2 million, respectively. The gain was primarily due to insurance recoveries in excess of the amount of losses incurred for casualty events.