INDEPENDENCE REALTY TRUST, INC.

NOTE 1: Organization

Independence Realty Trust, Inc. (“IRT”), is a self-administered and self-managed Maryland corporation that was formed on* March 26, 2009and 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, 2026*, we owned and operated 115 multifamily apartment properties (includingone owned through a consolidated joint venture) that contain an aggregate of 33,398 units across non-gateway U.S. markets, including Atlanta, Columbus, Dallas, Denver, Houston, Indianapolis, Nashville, Oklahoma City, Raleigh-Durham, and Tampa. In addition, as of* September 30, 2026*, we ownedone newly developed property in Austin, Texas, that is currently in lease‑up and contains 378 units. As of* September 30, 2026*, we also owned interests inthree unco nsolidated joint ventures, one of which owns and operates a multifamily apartment community that contains 275 units andtwo of which are developing multifamily apartment communities that will, upon completion, contain an aggregate of 642 units. We own all of our assets and conduct substantially all of our operations through Independence Realty Operating Partnership, LP, a Delaware limited partnership (“IROP”), of which we are the sole general partner.

As used herein, the terms “we,” “our,” “us” and the “Company” refer to IRT and, as required by context, IROP and its subsidiaries.

Pending Merger

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”).

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.

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 intoone Series A Preferred Unit andone 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 thefourth quarter of2026.

In conjunction with the Mergers, we have incurred approximately $6,200 in merger-related transaction costs during thethree andnine 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.

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NOTE 2: Summary of Significant Accounting Policies

a. Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared by management in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presentednot misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended* December 31, 2025included in our Annual Report on Form10*-K for the year ended* December 31, 2025 (the“2025* Annual Report”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our condensed consolidated financial position and condensed consolidated results of operations and cash flows are included. The results of operations for the interim periods presented arenot necessarily indicative of the results for the full year. The Company evaluated subsequent events through the date its financial statements were issued.No significant recognized or non-recognized subsequent events were noted other than those described in the footnotes.

b. Principles of Consolidation

The condensed consolidated financial statements reflect our accounts and the accounts of IROP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Pursuant to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification Topic810, “Consolidation”, IROP is considered a variable interest entity of which we are the primary beneficiary. As our significant asset is our investment in IROP, substantially all of our assets and liabilities represent the assets and liabilities of IROP.

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c. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

d. Cash and Cash Equivalents

Cash and cash equivalents include cash held in banks and highly liquid investments with original maturities ofthree months or less when purchased. Cash, including amounts restricted,* mayat times exceed the Federal Deposit Insurance Corporation deposit insurance limit of$250* per institution. We mitigate credit risk by placing cash and cash equivalents with major financial institutions. To date, we havenot experienced any losses on cash and cash equivalents.

e. Restricted Cash

Restricted cash includes escrows of our funds held by lenders to fund certain expenditures, such as real estate taxes and insurance, or to be released at our discretion upon the occurrence of certain pre-specified events. As of* September 30, 2026* and* December 31, 2025*, we had $27,375 and $24,058, respectively, of restricted cash.

f. Investments in Real Estate

Investments in real estate are recorded at cost less accumulated depreciation. Costs, including internal costs, that both add value and appreciably extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are expensed as incurred.

Investments in real estate are classified as held for sale in the period in which certain criteria are met including when the sale of the asset is probable, necessary approvals are obtained, and actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan of sale will be made or the plan of sale will be withdrawn.

Allocation of Purchase Price of Acquired Assets

In accordance with FASB ASC Topic805 (“ASC805”), we evaluate our real estate acquisitions to determine if they should be accounted for as a business or as a group of assets. The evaluation includes an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the acquisition isnot a business. The properties we have acquired met the screen test and are accounted for as asset acquisitions. Under asset acquisition accounting, the costs to acquire real estate, including transaction costs related to the acquisition, are accumulated and then allocated to the individual assets and liabilities acquired based upon their relative fair value. Transaction costs and fees incurred related to the financing of an acquisition are capitalized and amortized over the life of the related financing.

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We estimate the fair value of acquired tangible assets (consisting of land, building and improvements), identified intangible assets (consisting of in-place leases), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date.

The aggregate value of in-place leases is determined by evaluating various factors, including the terms of the leases that are in place and assumed lease-up periods. The value assigned to these intangible assets is amortized over the assumed lease up period, typicallynine months. During thethree andnine months ended* September 30, 2026*, we acquired in-place leases with a value of $0 and $753, respectively, related to our acquisitions that are discussed further in Note3 “Investments in Real Estate". During thethree andnine months ended* September 30, 2025*, we acquired in-place leases with a value of $6,227 and $8,056, respectively. During thethree andnine months ended* September 30, 2026*, we recorded $251 and $3,556, respectively, of amortization for intangible assets. During thethree andnine months ended* September 30, 2025*, we recorded $2,419 and $6,248, respectively, of amortization for intangible assets. For thenine months ended* September 30, 2026and2025*, we wrote-off fully amortized intangible assets of $6,227 and $4,949, respectively. As of* September 30, 2026*, we expect to record additional amortization expense on current in-place intangible assets of $167 for the remainder of2026.

Impairment of Long-Lived Assets

Management evaluates the recoverability of our investments in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic360, “Property, Plant and Equipment”. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that recoverability of the assets isnot assured.

We review our long-lived assets on an ongoing basis and evaluate the recoverability of the carrying value when there is an indicator of impairment. An impairment charge is recognized when it is determined that the carrying value of the asset exceeds the fair value. The estimated cash flows and estimated fair value used in the impairment analysis are determined based on our plans for the respective assets, including the expected hold period, and our assessment of market and economic conditions. The estimates consider matters such as current and historical rental rates and collection levels, occupancies for the respective and/or comparable properties, and recent sales data for comparable properties. Changes in our plans or views of market and economic conditions* mayresult in adjustments to estimated future cash flows, which could lead to recognition of impairment losses. These losses, as guided by the applicable accounting standards, could be significant. For thenine* months ended* September 30, 2026*, we recordedno impairment charges on account of real estate classified as held for sale and sold properties. For thenine months ended* September 30, 2025*, we recorded impairment charges of $12,841 on account of real estate classified as held for sale.

Depreciation Expense

Depreciation expense for real estate assets is computed using a straight-line method based on a life of 40 years for buildings and improvements andfive toten years for furniture, fixtures, and equipment. For thethree andnine months ended* September 30, 2026*, we recorded $65,047 and $190,170 of depreciation expense, respectively. Forthree andnine months ended* September 30, 2025*, we recorded $58,863 and $172,713 of depreciation expense, respectively. During thethree andnine months ended* September 30, 2026*, we wrote-off fully depreciated fixed assets of $8,765 and $20,433, respectively. During thethree andnine months ended* September 30, 2025*, we wrote-off fully depreciated fixed assets of $7,543 and $23,631, respectively.

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Casualty Related Costs

Occasionally, we incur losses at our communities from wind storms, floods, fires and similar hazards. In these cases, we estimate the carrying value of the damaged property and record a casualty loss for the difference between the estimated carrying value and the insurance proceeds, if any. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in casualty losses, net when the proceeds are received. During thethree andnine months ended* September 30, 2026*, we recorded $498 and $22 of casualty losses, net, respectively. During thethree andnine months ended* September 30, 2025*, we recorded $419 and $559 of casualty losses, net, respectively.

g. Investments in Real Estate Under Development

We capitalize direct and indirect project costs incurred during the development period such as construction, insurance, architectural, legal, interest costs, and real estate taxes. At such time as the development is considered substantially complete, the capitalization of certain indirect costs such as real estate taxes, interest costs, and all project-related costs in real estate under development are reclassified to investments in real estate. For thethree andnine months ended* September 30, 2026*, we recorded $1,062 and $4,139, respectively, of capitalized interest expense on our investments in real estate under development. For thethree andnine months ended* September 30, 2025*, we recorded $1,305 and $4,451, respectively, of capitalized interest expense on our investments in real estate under development.

As of* September 30, 2026* and* December 31, 2025*, the carrying value of our investments in real estate under development in Denver, Colorado and Austin, Texas, as applicable, totaled $59,230 and $60,116, respectively, net of $192,977 and $67,511 placed in service, respectively, and was recorded as a separate line item in our condensed consolidated balance sheets. During thethree months ended* June 30, 2026,*our previously disclosed development property in Denver, Colorado was completed and transitioned into our stabilized operating portfolio.

h. Investments in Unconsolidated Real Estate Entities

We have entered into joint ventures with unrelatedthird parties to acquire, develop, own, operate, and manage real estate assets. Our joint ventures are funded with a combination of debt and equity. We will consolidate entities that we control as well as any variable interest entity ("VIE") where we are the primary beneficiary. Under the VIE model, we consolidate an entity when we have the ability to direct the activities of the VIE and the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, we consolidate an entity when we control the entity through ownership of a majority voting interest. We separately analyzed the initial accounting for each of our investments in unconsolidated real estate entities and concluded that each investment is a voting interest entity. Our equity interest varies for each of our investments in unconsolidated real estate entities between 66.6% and 90% but, in each case, we share control of the major decisions that most significantly impact the joint ventures with our partners. Since we donot control the joint venture through our ownership interest, they are accounted for under the equity method of accounting, and are included in investments in unconsolidated real estate entities on our condensed consolidated balance sheets. Under the equity method of accounting, the investments are carried at cost plus our share of net earnings or losses. For thethree andnine months ended* September 30, 2026*, we recorded $599 and $1,584, respectively, of capitalized interest expense on our investments in unconsolidated real estate entities in our condensed consolidated balance sheets. For thethree andnine months ended* September 30, 2025*, we recorded $993 and $2,961, respectively, of capitalized interest expense on our investments in unconsolidated real estate entities in our condensed consolidated balance sheets.

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i. Revenue and Expenses

Rental and Other Property Revenue

We apply FASB ASC Topic842, “Leases” (“ASC842”) with respect to our accounting for rental income. We primarily lease apartment units under operating leases generally with terms ofone year or less. Rental payments are generally due monthly and rental revenues are recognized on an accrual basis when earned. We have elected to account for lease (i.e., fixed payments including base rent) and non-lease components (i.e., tenant reimbursements and certain other service fees) as a single combined operating lease component since (1) the timing and pattern of transfer of the lease and non-lease components is the same, (2) the lease component is the predominant element, and (3) the combined single lease component would be classified as an operating lease.

We make ongoing estimates of the collectability of our base rents, tenant reimbursements, and other service fees included within rental and other property revenue. If collectability isnot probable, we adjust rental and other property income for the amount of uncollectible revenue.

j. Derivative Instruments

We* mayuse derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure, as well as to hedge specific anticipated transactions. While these instruments mayimpact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we, and our affiliates, mayalso have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we donot* anticipate that any of the counterparties will fail to meet their obligations.

In accordance with FASB ASC Topic815, “Derivatives and Hedging”, we measure each derivative instrument at fair value and record such amounts in our condensed consolidated balance sheets as either an asset or liability. For derivatives designated as cash flow hedges, the changes in the fair value of the effective portions of the derivative are reported in other comprehensive income and changes in the fair value of the ineffective portions of cash flow hedges, if any, are recognized in earnings. For derivativesnot designated as hedges, the changes in fair value of the derivative instrument are recognized in earnings. Any derivatives that we designate in hedge relationships are done so at inception. At inception, we determine whether ornot the derivative is highly effective in offsetting changes in the designated interest rate risk associated with the identified indebtedness using regression analysis. At each reporting period, we update our regression analysis and use the hypothetical derivative method to measure any ineffectiveness.

k. Fair Value of Financial Instruments

In accordance with FASB ASC Topic820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs arenot available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows:

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FASB ASC Topic825, “Financial Instruments” requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value. Given that cash and cash equivalents and restricted cash are short term in nature with limited fair value volatility, the carrying amount is deemed to be a reasonable approximation of fair value and the fair value input is classified as a Level1 fair value measurement. The fair value input for derivatives is classified as a Level2 fair value measurement within the fair value hierarchy. The fair value of our unsecured revolver, term loans, and mortgage indebtedness is based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level3 fair value measurement within the fair value hierarchy. We determine appropriate credit spreads based on the type of debt and its maturity. There wereno transfers between levels in the fair value hierarchy for thenine months ended* September 30, 2026*. The following table summarizes the carrying amount and the fair value of our financial instruments as of the periods indicated:

l. Deferred Financing Costs

Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method.

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m. Office Leases

In accordance with FASB ASC Topic842, “Leases”, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet at the lease commencement date for all leases, except those leases with terms of less than a year. We lease corporate office space under leases with terms of up to 10 years and that* mayinclude extension options, but that donot* include any residual value guarantees or restrictive covenants. As of* September 30, 2026* and* December 31, 2025*, we had $2,303 and $2,771, respectively, of operating lease right-of-use assets and $2,569 and $3,082, respectively, of operating lease liabilities related to our corporate office leases. The operating lease right-of-use assets are presented within other assets and the operating lease liabilities are presented within other liabilities in our condensed consolidated balance sheets. During thethree andnine months ended* September 30, 2026*, we recorded $200 and $594, respectively, of total operating lease expense which is recorded within property management expense and general and administrative expenses in our condensed consolidated statements of operations. During thethree andnine months ended* September 30, 2025*, we recorded $185 and $422, respectively, of total operating lease expense which is recorded within property management expense and general and administrative expenses in our condensed consolidated statements of operations.

n. Income Taxes

We have elected to be taxed as a REIT. Accordingly, we recordedno income tax expense for thethree andnine months ended* September 30, 2026and2025*.

To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least90% of our ordinary taxable income to stockholders. As a REIT, we generally arenot subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes on our taxable income at regular corporate rates and willnot be permitted to qualify for treatment as a REIT for federal income tax purposes forfour years following the year during which qualification is lost unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders; however, we believe that we are organized and operate in such a manner as to qualify and maintain treatment as a REIT and intend to operate in such a manner so that we will remain qualified as a REIT for federal income tax purposes.

o. Recent Accounting Pronouncements

Below is a brief description of recent accounting pronouncements that could have a material effect on our condensed consolidated financial statements.

In* December 2025,the Financial Accounting Standards Board (“FASB”) issued ASU2025*-12, Codification Improvements, as part of its ongoing project to clarify, correct and improve various topics within the Accounting Standards Codification (“ASC”). The amendments cover33 specific issues,two of which are particularly relevant to REITs, (i) clarifications on the calculation of diluted earnings per share when a loss from continuing operations exists (Topic260), and (ii) the exclusion of certain lease receivables from enhanced credit loss disclosures (Topic310). The standard is effective for the Company for annual reporting periods beginning after* December 15, 2026,and interim periods within those years. Early adoption is permitted on an issue-by-issue basis. The Company is currently evaluating the impact of ASU2025*-12 on its consolidated financial position, results of operations and disclosures.

In* November 2025,the FASB issued ASU2025*-09, Derivatives and Hedging (Topic815*): Hedge Accounting Improvements*. The update is designed to better align hedge accounting with an entity's risk management activities by making targeted improvements to the hedge accounting model. Key amendments include, Similar Risk Assessment, which replaces the “shared risk exposure” requirement for grouping forecasted transactions in a cash flow hedge with a “similar risk exposure” requirement, permitting broader aggregation of hedged risks, Choose-Your-Rate Debt which introduces a model for hedging interest payments on variable-rate borrowings where the borrower can change reference rates without automatically triggering hedge de-designation, and Net Written Options which clarifies that certain instruments, such as, interest rate swaps with floors,* mayqualify as hedging instruments without being subject to the net written option test, provided. The standard is effective for the Company for annual reporting periods beginning after December 15, 2026,and interim periods within those years. Early adoption is permitted. The guidance is generally required to be applied on a prospective basis. The Company is currently evaluating the impact of ASU2025*-09 on its consolidated financial position, results of operations and disclosures.

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In* November 2024,the FASB issued ASU2024*-03, Disaggregation of Income Statement Expenses, which requires disclosure of information about specific cost and expense categories in the notes to the financial statements. This ASU is effective for the Company for annual reporting periods beginning after* December 15, 2026,and for interim reporting periods commencing in2028* and* may*be applied either prospectively or retrospectively. The Company is currently evaluating the effect that the ASU will have on its consolidated financial position, results of operations and disclosures.

NOTE 3: Investments in Real Estate

As of* September 30, 2026*, our investments in real estate consisted of 115 operating apartment properties, includingone owned through a consolidated joint venture, that contain an aggregate of 33,398 units. The following table summarizes our investments in real estate except forone property that we classified as held for sale as of* September 30, 2026*:

The following table summarizes our properties held for sale as of* September 30, 2026*:

Acquisitions

The following table summarizes our asset acquisition for thenine months ended* September 30, 2026*:

The following table summarizes the relative fair value of the assets and liabilities associated with acquisitions during thenine months ended* September 30, 2026*, on the date of acquisition accounted for under FASB ASC Topic805-50-15-3.

Dispositions

The following table summarizes our dispositions for thenine months ended* September 30, 2026*.

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NOTE4: Investments in Unconsolidated Real Estate

As of* September 30, 2026*, our investments in unconsolidated real estate entities had aggregate land, building, and capitalized construction in progress costs of $203,046 and aggregate construction debt of $109,712. We donot guarantee any debt, capital payout or other obligations associated with these entities. We recognize earnings or losses from our investments in unconsolidated real estate entities consisting of our proportionate share of the net earnings or losses of the joint ventures. We recognized losses of $555 and $2,438 from equity method investments during thethree andnine months ended* September 30, 2026*, respectively, and income of $9,814 and $8,663, respectively, during thethree andnine months ended* September 30, 2025*, and these were recognized within (loss) income from investments in unconsolidated real estate entities in our condensed consolidated statements of operations.

The following table summarizes our investments in unconsolidated real estate entities as of* September 30, 2026* and* December 31, 2025*:** **

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The following table summarizes the assets and liabilities recognized upon the consolidation of Tisdale at Lakeline Station, our former unconsolidated real estate entity during thenine months ended* September 30, 2026* on the date of consolidation of* January 20, 2026.*

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NOTE 5: Indebtedness

Unsecured Revolver and Term Loans

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, IRT 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 $750,000 unsecured revolving credit facility (the “Unsecured Revolver”) with a January 8, 2029scheduled maturity date andtwo* unsecured term loans, specifically: (i) a $200,000 term loan with a* May 18, 2026maturity date (the“2026* Term Loan”) and (ii) a $400,000 term loan with a* January 28, 2028maturity date (the“2028* Term Loan”). The Sixth Restated Credit Agreement provides for a new $350,000 unsecured term loan with a maturity date of* February 11, 2030,subject to aone* year extension option (the*“2030* Term Loan”). A portion of the proceeds from the2030 Term Loan were used to pay off outstanding borrowings under the2026 Term Loan.

The Sixth Restated Credit Agreement increased the aggregate amount of borrowings under the credit agreement to $1,500,000 and permits IROP to request the capacity be further increased to $2,000,000 subject to certain terms and conditions, including receipt of commitments fromone or more lenders, whether ornot currently parties to the Sixth Restated Credit Agreement, to provide such increased amounts, which increase* maybe allocated, at IROP’s option, to the Unsecured Revolver and/or toone* or more of the term loans, in accordance with the Sixth Restated Credit Agreement. Refer to our2025 Annual Report for additional borrowing terms and financial covenant details.

The following tables contain summary information concerning our consolidated indebtedness as of* September 30, 2026*:

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The following table contains summary information concerning our consolidated indebtedness as of* December 31, 2025*:

As of* September 30, 2026*, we were in compliance with all financial covenants contained in our consolidated indebtedness.

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NOTE 6: Derivative Financial Instruments

The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of* September 30, 2026* and* December 31, 2025*:

Effective interest rate swaps and collars are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is recorded as derivative assets or liabilities on the face of our condensed consolidated balance sheets.

For our interest rate swaps and collars that are considered highly effective hedges, we reclassified realized gains of $1,718 and $5,825 to earnings within interest expense for thethree andnine months ended* September 30, 2026*, respectively, and we expect gains of $9,693 to be reclassified out of accumulated other comprehensive income to earnings over the next12 months. For thethree andnine months ended* September 30, 2025*, we reclassified realized gains of $3,484 and $10,195, respectively, to earnings within interest expense.

NOTE 7: Stockholders' Equity and Noncontrolling Interests

Stockholders’* Equity*

On* September 8, 2026*, our board of directors declared a dividend of $0.18 per share on our common stock, which was paid on* October 23, 2026* to common stockholders of record as of* September 30, 2026*.

On* May 13, 2026*, our board of directors declared a dividend of $0.18 per share on our common stock, which represented a 5.9% increase over the prior quarterly rate of $0.17 per share. Thesecond quarter dividend was paid on* July 17, 2026* to common stockholders of record as of* June 26, 2026*.

On* March 9, 2026*, our board of directors declared a dividend of $0.17 per share on our common stock, which was paid on* April 17, 2026* to common stockholders of record as of* March 27, 2026*.

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ATM Program

On* July 28, 2023,we entered into an equity distribution agreement pursuant to which we were permitted from time to time to offer and sell shares of our common stock under our prior shelf registration statement having an aggregate offering price of up to $450,000 (the “Previous ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule415* under the Securities Act of1933, as amended (the “Securities Act”). Under the Previous ATM Program, we were also permitted to enter intoone or more forward sale transactions for the sale of shares of our common stock on a forward basis. There wereno forward sale transactions andno shares of our common stock were sold under the Previous ATM Program during2026 through its termination on* June 12, 2026.*There was $107,617 in shares of our common stock sold under the Previous ATM Program prior to its termination.

Stock Repurchase Program

On* May 18, 2022,our board of directors authorized a common stock repurchase program (the "Stock Repurchase Program") covering up to $250,000 in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, maypurchase 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 hasno* time limit and* maybe suspended or discontinued at any time. During thenine* months ended* September 30, 2026*, we repurchased and retired 1,839,460 shares of common stock under our Stock Repurchase Program at a weighted average price of $16.24 per share at a total cost of $29,937. No shares were repurchased under our Stock Repurchase Program during thethree months ended* September 30, 2026*. No shares were repurchased under our Stock Repurchase Program during thethree andnine months ended* September 30, 2025*. As of* September 30, 2026*, $190,087 in shares of our common stock remained authorized for repurchase under our Stock Repurchase Program.

Noncontrolling Interest

During thenine months ended* September 30, 2026*,no holders of IROP Common Units exchanged units for shares of our common stock. As of* September 30, 2026*,5,941,643 IROP Common Units held by unaffiliatedthird parties remain outstanding.

On* September 8, 2026*, our board of directors declared a dividend of $0.18 per IROP Common Unit, which was paid on* October 23, 2026* to holders of IROP Common Units of record as of* September 30, 2026*.

On* May 13, 2026*, our board of directors declared a dividend of $0.18 per IROP Common Unit, which was paid on* July 17, 2026* to holders of IROP Common Units of record as of* June 26, 2026*.

On* March 9, 2026*, our board of directors declared a dividend of $0.17 per IROP Common Unit, which was paid on* April 17, 2026* to holders of IROP Common Units of record as of* March 27, 2026*.

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NOTE 8: Equity Compensation Plans

Long Term Incentive Plan

On* May 18, 2022,our stockholders approved our2022* Long Term Incentive Plan (the “2022 Incentive Plan”). The2022 Incentive Plan provides for grants of equity and equity-based awards to our employees, officers, directors, consultants and other service providers, and such awards* maytake the form of restricted or unrestricted shares of common stock, non-qualified stock options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”), dividend equivalents and other equity and cash-based awards. A maximum of 8,000,000 shares of our common stock maybe issued under the2022* Incentive Plan (plus up to an additional 702,300 shares of our common stock remain available from our prior incentive plan, to the extent that shares subject to outstanding awards under a prior plan are recycled into the2022 Incentive Plan), subject to customary adjustment for stock splits, reverse stock splits and similar corporate events or transactions affecting shares of our common stock.

The restricted shares and RSUs granted under the Incentive Plan generally vest or vested over atwo- tofour-year period. In addition, we have granted unrestricted shares to our non-employee directors. These awards generally vest or vested immediately. A summary of restricted and unrestricted common share awards and RSU activity is presented below.

On* February 3, 2026,*our compensation committee awarded 194,574 performance share units (“PSUs”) (measured at target) to our executive officers. The number of PSUs earned will be based on attainment of certain performance criteria over athree-year period, with the actual number of shares issuable ranging between 0% and 150% of the target number of PSUs granted. Half of any PSUs earned will vest, and shares will be issued in respect thereof, immediately following the end of thethree-year performance period; the remaining half of any PSUs earned will vest, and shares will be issued in respect thereof, after an additionalone-year period of service.

During thenine months ended* September 30, 2026and2025*, a portion of the RSUs and PSUs granted were issued to employees who are retirement eligible. The fact that the grantees are retirement eligible resulted in immediate recognition of the associated stock-based compensation expense totaling $2,437 and $2,826, respectively.

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NOTE 9: Earnings Per Share

The following table presents a reconciliation of basic and diluted earnings per share for thethree andnine months ended* September 30, 2026and2025*:

Certain IROP Common Units and RSUs were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 5,955,517 and 5,958,506 for thethree andnine months ended* September 30, 2026*. Certain IROP Common Units and shares deliverable under the forward sale agreements pursuant to the Previous ATM Program were excluded from the earnings per share computation because their effect would have been anti-dilutive, totaling 8,923,243 and 8,923,243 for thethree andnine months ended* September 30, 2025*, respectively.

NOTE10: Segment Reporting

Each of our multifamily properties is considered an operating segment that earns revenues through the leasing of apartment homes and incurs associated expenses. We aggregate our multifamily properties on a same-store and non same-store basis, and as a result, have identifiedtwo reportable segments.

GAAP guidance requires that segment disclosures present the measures used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing segment performance. The CODM uses net operating income (“NOI”) as the primary financial measure to evaluate operating results of our multifamily properties, including analyses compared to prior periods and budgeted operating results. NOI is defined 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, net gains on sale of assets and merger and integration costs.

Segment assets consist of real estate held for investment, real estate held for sale and investments in real estate under development. Non-segment assets consist of assets in the Company’s other non-reportable segments and corporate non-segment assets, which are comprised of cash and cash equivalents, restricted cash, investments in unconsolidated real estate entities, other assets, derivative assets and intangible assets. Reportable segment asset information isnot provided to the CODM as the CODM doesnot use segment asset information to evaluate the business and allocate resources.

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The following table details NOI for ourtwo reportable segments for thethree andnine months ended* September 30, 2026and2025*, and reconciles NOI to Net income on the condensed consolidated statements of operations. The segments are classified as same-store or non same-store based on the individual property’s status as of* September 30, 2026*.

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NOTE 11: Other Disclosures

Litigation

We are subject to various legal proceedings and claims that arise in the ordinary course of our business operations. Matters which arise out of allegations of bodily injury, property damage, employment practices and professional liability are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, we currently believe the final outcome of such matters willnot have a material adverse effect on our financial position, results of operations or cash flows.

Starting around* November 2022,putative class action representatives began filing complaints in various United States District Courts across the country naming as defendants RealPage, Inc. (“RealPage”), a seller of revenue management products, and approximately50* defendants who own and/or manage multifamily residential rental housing, alleging that the defendants conspired to fix, raise, maintain, and stabilize rent prices in violation of Section1 of the Sherman Act. Some of the complaints, includingone filed on* November 14, 2022,in the U.S. District Court for the Northern District of Illinois, named us asone* of the defendants, and others didnot. The actions were consolidated for pretrial proceedings in the Middle District of Tennessee. Fact discovery has ended in the litigation, and the Court will be hearing and deciding motions concerning expert testimony and class certification early next year. We have recorded a loss contingency representing our estimate of the probable loss. We deny all allegations of wrongdoing, and we intend to continue to defend against these claims vigorously.

On* July 2, 2025,the Attorney General of Kentucky filed a complaint against RealPage andnine* other defendants who own and/or manage multifamily residential rental housing, including IRT, on behalf of the Commonwealth of Kentucky, also alleging that the defendants conspired to fix, raise, maintain, and stabilize rent prices in violation of Section1 of the Sherman Act. On* September 15, 2025,IRT and other defendants in the complaint filed motions to dismiss the case. On February 2, 2026,the court denied the motions to dismiss. This proceeding is in the early stages, and it isnot* possible for IRT to predict the outcome nor is it possible to estimate the amount of loss, if any, which* maybe associated with an adverse decision in this matter. We deny all allegations of wrongdoing in connection with the complaint and intend to defend against these claims vigorously. See Part II, Item1,* Legal Proceedings, for additional information regarding our legal proceedings.

Other Matters

To the extent that a natural disaster or similar event occurs with more than a remote risk of having a material impact on the consolidated financial statements, we will disclose the estimated range of possible outcomes, and, if an outcome is probable, accrue an appropriate liability.

Loss Contingencies

We record an accrual for loss contingencies when a loss is probable and the amount of the loss can be reasonably estimated. Management reviews these accruals quarterly and makes revisions based on changes in facts and circumstances. When a loss contingency isnot both probable and reasonably estimable, management doesnot accrue the loss. However, if the loss (or an additional loss in excess of an earlier accrual) is at least a reasonable possibility and material, then management discloses a reasonable estimate of the possible loss, or range of loss, if such reasonable estimate can be made. If we cannot make a reasonable estimate of the possible loss, or range of loss, then a statement to that effect is disclosed.

The loss contingencies are presented in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets. When we expect the losses to be covered by insurance, the related insurance recovery receivables are presented in other assets in the accompanying condensed consolidated balance sheets.