📊 IRT Key Takeaways
Is IRT a Good Investment? Thesis Analysis
Independence Realty Trust demonstrates solid operational cash generation with 42.9% FCF margin and modest revenue growth of 2.8% YoY, but profitability metrics are weak with 1.9% operating margin and concerning 0.6x interest coverage ratio. The company's financial structure is burdened by $2.3B in long-term debt against only $23.6M in cash, creating refinancing risk despite a moderate 0.66x debt-to-equity ratio.
Why Buy IRT? Key Strengths
- Strong free cash flow generation of $282.0M with 42.9% FCF margin, typical of stable REIT operations
- Positive net income of $56.6M with 8.6% net margin and improving diluted EPS (+41.2% YoY)
- Substantial asset base of $6.0B with conservative debt-to-equity ratio of 0.66x indicating reasonable leverage
IRT Investment Risks to Consider
- Dangerously low interest coverage ratio of 0.6x suggests insufficient operating income to service debt obligations
- Minimal cash position of $23.6M relative to $2.3B long-term debt creates liquidity vulnerability and refinancing risk
- Poor return metrics (ROE 1.6%, ROA 0.9%) and compressed operating margin of 1.9% indicate challenged profitability and operational efficiency
Key Metrics to Watch
- Interest coverage ratio trend - critical indicator of debt service sustainability
- Operating cash flow consistency and cash position growth to address liquidity concerns
- Revenue growth acceleration and operating margin expansion to improve profitability
IRT Financial Metrics
💡 AI Analyst Insight
The 42.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
IRT Profitability Ratios
IRT vs Default Sector
How INDEPENDENCE REALTY TRUST, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IRT Overvalued or Undervalued?
Based on fundamental analysis, INDEPENDENCE REALTY TRUST, INC. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
IRT Balance Sheet & Liquidity
IRT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: INDEPENDENCE REALTY TRUST, INC.'s revenue has grown significantly by 164% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.08 indicates the company is currently unprofitable.
IRT Growth Metrics (YoY)
IRT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $160.1M | $6.9M | $0.03 |
| Q2 2025 | $158.4M | $8.0M | $0.03 |
| Q1 2025 | $160.5M | $8.4M | $0.04 |
| Q3 2024 | $160.1M | $3.9M | $0.02 |
| Q2 2024 | $158.4M | $10.4M | $0.05 |
| Q1 2024 | $160.5M | $8.6M | $0.04 |
| Q3 2023 | $160.6M | $3.9M | $0.02 |
| Q2 2023 | $154.8M | -$7.2M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IRT Capital Allocation
IRT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for INDEPENDENCE REALTY TRUST, INC. (CIK: 0001466085)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IRT
What is the AI rating for IRT?
INDEPENDENCE REALTY TRUST, INC. (IRT) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are IRT's key strengths?
Claude: Strong free cash flow generation of $282.0M with 42.9% FCF margin, typical of stable REIT operations. Positive net income of $56.6M with 8.6% net margin and improving diluted EPS (+41.2% YoY).
What are the risks of investing in IRT?
Claude: Dangerously low interest coverage ratio of 0.6x suggests insufficient operating income to service debt obligations. Minimal cash position of $23.6M relative to $2.3B long-term debt creates liquidity vulnerability and refinancing risk.
What is IRT's revenue and growth?
INDEPENDENCE REALTY TRUST, INC. reported revenue of $657.7M.
Does IRT pay dividends?
INDEPENDENCE REALTY TRUST, INC. pays dividends, with $154.4M distributed to shareholders in the trailing twelve months.
Where can I find IRT SEC filings?
Official SEC filings for INDEPENDENCE REALTY TRUST, INC. (CIK: 0001466085) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IRT's EPS?
INDEPENDENCE REALTY TRUST, INC. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IRT a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, INDEPENDENCE REALTY TRUST, INC. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IRT stock overvalued or undervalued?
Valuation metrics for IRT: ROE of 1.6% (sector avg: 15%), net margin of 8.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy IRT stock in 2026?
Our dual AI analysis gives INDEPENDENCE REALTY TRUST, INC. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IRT's free cash flow?
INDEPENDENCE REALTY TRUST, INC.'s operating cash flow is $282.1M, with capital expenditures of $177.0K. FCF margin is 42.9%.
How does IRT compare to other Default stocks?
Vs Default sector averages: Net margin 8.6% (avg: 12%), ROE 1.6% (avg: 15%), current ratio N/A (avg: 1.8).