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Independence Realty Trust Completes Acquisition of 328-Unit Raleigh-Durham Community & Sale of Two Legacy Class C Communities

IRT

Independence Realty Trust Completes Acquisition of 328-Unit Raleigh-Durham Community & Sale of Two Legacy Class C Communities

Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT) today announced it has completed three transactions in June 2017, aggregating $70.6 million, related to its ongoing capital recycling strategy.

On June 30, 2017, IRT completed the acquisition of a 328-unit apartment community located in Durham, North Carolina for $42.95 million. Constructed in 2002, the community is located in the South Durham submarket; the fourth-fastest growing submarket by rent growth in the Raleigh-Durham MSA. As of May 31, 2017, the community was 95.2% occupied and for the three months ended May, 2017, had an average effective rent per occupied unit of $1,039. IRT used net proceeds from recent dispositions and its line of credit to acquire the community. IRT previously managed this property on behalf of RAIT Financial Trust.

During June 2017, IRT sold two class C communities, a 200-unit community in Newport News, Virginia on June 1 and a 354-unit community in Indianapolis, Indiana on June 9, for a combined sale price of $27.6 million. IRT expects to recognize a gain of approximately $7.8 million associated with the sales in the quarter ending June 30, 2017. Both communities were classified as held for sale.

“These transactions underline our commitment to strengthening our portfolio composition by investing in well-located, middle-market communities in attractive non-gateway markets,” said Scott Schaeffer, Chairman and CEO of IRT. “This acquisition is a perfect fit with our investment thesis as it increases our scale in the Raleigh-Durham market, which continues to benefit from its proximity to prestigious universities, a thriving workforce, and world-class employers. The disposition of the two legacy class C communities is a key milestone in the efficient execution of our capital recycling strategy initiatives.”

About Independence Realty Trust, Inc.

Independence Realty Trust (NYSE MKT: IRT) is a real estate investment trust that owns and operates 47 multifamily apartment properties, totaling 13,198 units, across non-gateway U.S. markets, including Louisville, Memphis, Atlanta and Raleigh. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and key employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return of capital through distributions and capital appreciation.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of IRT’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within IRT’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These risks, uncertainties and contingencies include, but are not limited to, how IRT will use the net cash proceeds of the sale, whether and how IRT will be able to implement its strategy to sell properties, the ultimate accounting treatment of the property sale and those disclosed in IRT’s filings with the Securities and Exchange Commission. IRT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

New Corporate Headquarters
Two Liberty Place
50 S. 16th Street, Suite 3575
Philadelphia, PA 19102
267-270-4800

For Independence Realty Trust, Inc.
Edelman Financial Communications & Capital Markets
Ted McHugh / Lauren Tarola, 212-277-4322
IRT@edelman.com