INDEPENDENCE REALTY TRUST, INC. (IRT)

CIK: 0001466085. SIC: 6798 Real Estate Investment Trusts. Latest 10-K as of: 2026-02-17.

SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1466085. Latest filing source: 0001437749-26-004376.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001466085.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001466085.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001437749-26-014234.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-04-30. Report date: 2026-03-31.

Item 2.         Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

The Securities and Exchange Commission (the “SEC”), encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This report contains or incorporates by reference such “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Words such as “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify forward-looking statements.

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 March 31, 2026, the assumptions underlying the determination of the fair value of our impairment charge for one of our properties held for sale as of March 31, 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.

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 Initiatives and failure to achieve rent increases and occupancy levels on account of the Value Add Initiatives, unexpected impairments or impairments in excess of our estimates, 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 the “Risk Factors” sections of our 2025 Annual Report, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this Quarterly Report on Form 10-Q and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake 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.

Overview

Our Company

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 March 31, 2026, we owned and operated 115 multifamily apartment properties (including one owned through a consolidated joint venture) that contain an aggregate of 33,602 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 March 31, 2026, we owned two newly developed properties, including one in Denver, Colorado, that contains 296 units and one in Austin, Texas that contains 378 units. As of March 31, 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.

Our Business Objective and Investment Strategies

Our primary business objective is to maximize stockholder value through diligent portfolio management, strong operational performance, and a consistent return of capital through distributions and capital appreciation. Our investment strategy is focused on the following:

•

gaining scale within key amenity rich submarkets of non-gateway cities that offer good school districts, high-quality retail and major employment centers and are unlikely to experience substantial new apartment construction in the foreseeable future;

•

increasing cash flows at our existing apartment properties through prudent property management and strategic renovation projects; and

•

acquiring additional properties that have strong and stable occupancies and support a rise in rental rates or that have the potential for repositioning through capital expenditures or tailored management strategies.

19

Table of Contents

Consolidated Property Portfolio (1)

As of March 31, 2026, we owned and consolidated 115 multifamily apartment properties, totaling 33,602 units. Below is a summary of our consolidated property portfolio by market.

(Dollars in thousands, except per unit data)

As of March 31, 2026

For the Three Months Ended March 31, 2026

Market

Number of Properties

Units

Gross Real Estate Assets

Period End Occupancy

Average Effective Monthly Rent per Unit

Net Operating Income

% of NOI

Atlanta, GA

13

5,180

$

1,137,836

94.2

%

$

1,581

$

15,093

14.7

%

Dallas, TX

14

4,007

903,078

95.6

%

1,801

13,618

13.3

%

Columbus, OH

11

2,650

415,152

95.8

%

1,577

7,932

7.5

%

Tampa-St. Petersburg, FL

6

1,791

398,938

94.5

%

1,935

6,731

6.6

%

Indianapolis, IN

8

2,259

363,126

95.2

%

1,493

6,435

6.3

%

Denver, CO (1)(2)(3)

7

1,722

492,923

93.2

%

1,777

5,953

5.8

%

Oklahoma City, OK

8

2,147

349,402

95.8

%

1,270

5,648

5.5

%

Nashville, TN

5

1,508

380,546

95.4

%

1,611

5,096

5.0

%

Raleigh - Durham, NC

6

1,690

260,822

95.2

%

1,541

5,045

4.9

%

Orlando, FL

4

1,260

283,939

86.2

%

1,891

3,850

3.7

%

Memphis, TN (3)

4

1,383

161,712

92.7

%

1,444

3,769

3.7

%

Charlotte, NC

4

1,014

263,552

95.9

%

1,662

3,450

3.4

%

Houston, TX

5

1,308

218,783

95.6

%

1,457

3,253

3.2

%

Lexington, KY

3

886

168,939

95.4

%

1,527

3,137

3.1

%

Huntsville, AL

4

1,051

243,111

95.6

%

1,395

2,862

2.8

%

Louisville, KY

3

794

100,620

95.5

%

1,350

2,201

2.1

%

Cincinnati, OH

2

542

127,521

97.4

%

1,713

1,896

1.8

%

Greenville, SC

1

702

128,075

93.4

%

1,285

1,743

1.7

%

Charleston, SC

2

518

85,093

95.3

%

1,778

1,721

1.7

%

Myrtle Beach, SC - Wilmington, NC

3

628

70,210

94.6

%

1,387

1,665

1.6

%

San Antonio, TX

1

306

57,889

98.4

%

1,437

861

0.8

%

Austin, TX (1)

1

256

61,782

96.9

%

1,756

804

0.8

%

Total/Weighted Average

115

33,602

$

6,673,049

94.7

%

$

1,593

$

102,763

100.0

%

(1)

Excludes our development properties. See Non-GAAP financial measures for the definition of a development property.

(2)

Includes properties in our Fort Collins, CO and Colorado Springs, CO markets.

(3)

Includes one property that was held for sale as of March 31, 2026.

Current Developments

Acquisitions

On January 15, 2026, we acquired The Retreat at Canal in Columbus, Ohio, a 140-unit community for $29.5 million. The acquisition increased our exposure in Columbus, Ohio from 2,510 units to 2,650 units.

Investments in Unconsolidated Real Estate Entities

To create another avenue for accretive capital allocation and to increase our options for capital investment, we have partnered with, and may in the future partner with, developers through preferred equity investments and joint venture relationships focused on new multifamily development.

On January 20, 2026, we acquired our joint venture partner's 10% membership interest and assumed full operational control and 100% equity ownership of the Tisdale at Lakeline Station property underlying this joint venture. The property is a newly constructed 378-unit community in Austin, Texas and was consolidated into our financial results effective January 20, 2026. The property will be classified as a development property until reaching 90% occupancy.

As of March 31, 2026 and December 31, 2025, we had investments in unconsolidated real estate entities of $66.6 million and $98.3 million, respectively.

Investments in Real Estate Under Development

As of March 31, 2026, we had two investments in real estate under development of $127.8 million, which contain an aggregate of 674 units and are currently in lease-up.

Value Add Initiative

Strategically renovating communities where there is the potential for outsized rent growth (our "Value Add Initiative") provides us with the opportunity to improve long-term growth through targeted unit and/or common area investments. We completed renovations on 426 units during the three months ended March 31, 2026. From inception of our Value Add Initiative in January 2018 through March 31, 2026, we completed renovations on 11,871 of the 18,788 units currently in our Value Add Initiative, achieving a return on investment of 16.1% (and approximately 18.1% on the interi

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-17. Report date: 2025-12-31.

ITEM 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help provide an understanding of our business, financial condition and results of operations. This MD&A should be read in conjunction with our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements included elsewhere in this Annual Report. This Annual Report, including the following MD&A, contains forward-looking statements regarding future events or trends that are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We assume no obligation to update or supplement forward-looking statements because of subsequent events. Actual results may differ materially from the anticipated results discussed in these forward-looking statements. Factors which may cause our actual results or performance to differ materially from those contemplated by forward-looking statements include, but are not limited to, the following:

•

Unfavorable changes in economic conditions, either nationally or regionally in one or more of the markets in which we operate, could adversely impact us;

•

Short-term leases expose us to the effects of declining rents;

•

Competition could limit our ability to lease our units or increase or maintain rental income;

•

Redevelopment risks could impact our profitability;

•

Impairment charges;

•

Labor and materials required for maintenance, repair, renovation or capital expenditure may be more expensive than anticipated or significantly delayed;

•

Competition could adversely affect our ability to acquire properties;

•

Our acquisition strategy may not produce the cash flows expected;

•

Failure to qualify as a REIT could have adverse consequences;

•

Litigation risks could affect our business;

•

A cybersecurity incident and other technology disruptions could negatively impact our business;

•

Damage from catastrophic weather and other natural events could result in losses;

•

Volatility in capital markets may result in fluctuations in our share price;

•

Debt financing and other required capital may not be available to us or may only be available on adverse terms;

•

Substantial inflationary or deflationary pressures could adversely affect our financial condition or results of operations;

•         

Rising interest rates could both increase our borrowing costs, thereby adversely affecting our cash flows and the amounts available for distribution to our stockholders, and decrease our share price, if investors seek higher yields through other investments;

•

any future downturn or increased volatility in the U.S. economy and the related reduction in spending, reduced home prices and high unemployment may result in resident defaults  under leases, vacancies at our multifamily communities and concessions or reduced rental rates under new leases due to reduced demand;

•

international military conflicts or geopolitical tensions could affect oil and gas prices, cause supply chain disruptions and increase cybersecurity risks;

•

fluctuations in the costs, availability and quality of building materials and supplies, due to tariffs, trade barriers or otherwise, could adversely affect our financial condition or results of operations;

•

Failure to hedge effectively against interest rates may adversely affect results of operations; and

•

Additional factors as discussed in Item 1A. “Risk Factors”.

Forward-looking statements and related uncertainties are also included in the Notes to Consolidated Financial Statements in this report.

Overview

See Item 1. Business for an overview of our company.

Business Objective and Investment Strategies

See Item 1. Business for discussion regarding our business objective and investment strategies and for an additional discussion regarding developments in our business during 2025.

35

Table of Contents

Results of Operations

The following discussion is based on our Consolidated Financial Statements for the years ended December 31, 2025 and 2024. Refer to Item 7, “Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a comparison of the year ended December 31, 2024 to the year ended December 31, 2023.

Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024

SAME-STORE PORTFOLIO

NON SAME-STORE PORTFOLIO

CONSOLIDATED

(Dollars in thousands)

Year Ended December 31,

Year Ended December 31,

Year Ended December 31,

Increase

%

Increase

%

Increase

%

2025

2024

(Decrease)

Change

2025

2024

(Decrease)

Change

2025

2024

(Decrease)

Change

Property Data:

Number of properties (1)

105

105

—

—

9

8

1

12.5

%

114

113

1

0.9

%

Number of units (1)

30,502

30,502

—

—

2,960

3,113

(153

)

(4.9

)%

33,462

33,615

(153

)

(0.5

)%

Average occupancy (1)

95.4

%

95.1

%

0.3

%

0.3

%

91.1

%

90.3

%

0.8

%

0.9

%

95.0

%

95.0

%

(0.0

)%

(0.0

)%

Average effective monthly rent, per unit (1)

$

1,578

$

1,565

$

13

0.8

%

$

1,765

$

1,604

$

161

10.0

%

$

1,588

$

1,572

$

16

1.0

%

Revenue:

Rental and other property revenue

$

595,601

$

585,431

$

10,170

1.7

%

$

60,880

$

53,482

$

7,398

13.8

%

$

656,481

$

638,913

$

17,568

2.7

%

Expenses:

Property operating expenses

215,550

214,436

1,114

0.5

%

23,607

21,152

2,455

11.6

%

239,157

235,588

3,569

1.5

%

Net Operating Income

$

380,051

$

370,995

$

9,056

2.4

%

$

37,273

$

32,330

$

4,943

15.3

%

$

417,324

$

403,325

$

13,999

3.5

%

Other Revenue:

Other revenue

$

1,215

$

1,122

$

93

8.3

%

Corporate and other expenses:

Property management expenses

30,107

29,923

184

0.6

%

General and administrative expenses

23,966

24,245

(279

)

(1.2

)%

Depreciation and amortization expense

243,241

220,854

22,387

10.1

%

Casualty losses

1,314

3,935

(2,621

)

(66.6

)%

Interest expense

(78,998

)

(76,141

)

(2,857

)

3.8

%

Gain on sale (loss on impairment) of real estate assets, net

6,147

(9,862

)

16,009

(162.3

)%

(Loss) gain on extinguishment of debt

(67

)

200

(267

)

(133.5

)%

Other loss

(352

)

(1

)

(351

)

35100.0

%

Income from investments in unconsolidated

real estate entities

11,066

347

10,719

3089.0

%

Net income

$

57,707

$

40,033

$

17,674

44.1

%

Income allocated to noncontrolling interests

(1,149

)

(742

)

(407

)

54.9

%

Net income available to common shares

$

56,558

$

39,291

$

17,267

43.9

%

(1)

Excludes our one development project. See Non-GAAP Financial Measures for our definition of a development property and our methodology for determining same-store properties.

(2)

Excludes one former development project that reached overall occupancy of 90.0% during the three months ended December 31, 2024.

36

Table of Contents

Revenue

Rental and other property revenue. Rental and other property revenue increased $17.6 million to $656.5 million for the year ended December 31, 2025 from $638.9 million for the year ended December 31, 2024. The increase was primarily attributable to a $10.2 million increase in same-store rental and other property revenue, driven by a 0.8% increase in average effective monthly rents and a 0.3% increase in average occupancy compared to the prior year period and to a $7.4 million increase in non same-store rental and other property revenue driven by the acquisition of three properties in the second half of 2024, and three properties in 2025.

Expenses

Property operating expenses. Property operating expenses increased $3.6 million to $239.2 million for the year ended December 31, 2025 from $235.6 million for the year ended December 31, 2024. The increase was primarily due to a $2.5 million increase in non same-store property operating expenses, due to the acquisition of  three properties in the second half of 2024 and three properties in 2025 and by a $1.1 million increase in same-store property operating expenses primarily due to higher advertising expense, contract services (landscaping, trash, cable/internet, janitorial), and utilities costs, partially offset by a decrease in property insurance, turnover costs, payroll expense and real estate taxes.

Depreciation and amortization expense. Depreciation and amortization expense increased $22.4 million to $243.2 million for the year ended December 31, 2025 from $220.9 million for the year ended December 31, 2024. The increase was primarily due to depreciation expenses driven by capital expenditures related to our Value Add Initiative and higher intangible asset amortization expenses from our property acquisitions in 2025, compared to the prior year period. This was partially offset by lower depreciation expenses from the sale of seven properties in 2024 compared to the sale of two properties in 2025.

Casualty losses. Casualty losses decreased $2.6 million to $1.3 million for the year ended December 31, 2025 from $3.9 million for the year ended December 31, 2024. The decrease was primarily due to a decrease in the number and severity of casualty events in 2025 compared to 2024 where the carrying value of the damage exceeded insurance proceeds due to policy deductibles.

Interest expense. Interest expense increased $2.9 million to $79.0 million for the year ended December 31, 2025 from $76.1 million for the year ended December 31, 2024 primarily due to lower capitalized interest on our real estate under development, higher amortization of deferred financing costs associated with the refinancing of our unsecured credit agreement on January 8, 2025, partially offset by lower average borrowings under our unsecured revolver.

Gain on sale (loss on impairment) of real estate assets, net. During the year ended December 31, 2025, we sold two multifamily properties, recognizing a gain on sale of $19.0 million in connection with one of the properties and an impairment loss of $12.8 million in connection with one property held for sale. During the year ended December 31, 2024, we sold seven multifamily properties, resulting in an aggregate gain on sale of $11.1 million. In addition, as of December 31, 2024, we identified one multifamily property as held for sale and recorded a loss on impairment of $21.0 million as a result of the carrying value of the real estate exceeding the expected sales price, less transaction costs.

Income from investments in unconsolidated real estate entities. Income from investments in unconsolidated real estate entities increased by $10.7 million for the year ended December 31, 2025 from $0.3 million for the year ended December 31, 2024. The increase was primarily due to a gain on sale of $10.6 million during the three months ended September 30, 2025 attributable to the sale of an operating property in Richmond, Virginia on July 21, 2025 by an unconsolidated joint venture (Metropolis at Innsbrook) in which we held an 84.8% ownership interest.

37

Table of Contents

Non-GAAP Financial Measures

Funds from Operations (“FFO”) and Core Funds from Operations (“CFFO”)

We believe that FFO and 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 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.

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, debt extinguishment costs and restructuring costs from the determination of FFO.

Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.

Set forth below is a reconciliation of net income (loss) to FFO and CFFO for the years ended December 31, 2025, 2024 and 2023 (in thousands, except share and per share information):

For the Year Ended December 31,

For the Year Ended December 31,

For the Year Ended December 31,

2025

2024

2023

Amount

Per Share(1)

Amount

Per Share(2)

Amount

Per Share(2)

Net income (loss)

$

57,707

$

0.24

$

40,033

$

0.17

$

(17,807

)

$

(0.08

)

Adjustments:

Real estate depreciation and amortization

241,462

1.00

219,360

0.95

217,716

0.94

Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities

1,898

0.01

1,581

0.01

2,115

0.01

(Gain on sale) loss on impairment of real estate assets net, excluding prepayment gains

(4,577

)

(0.02

)

11,815

0.05

68,447

0.30

Gain on sale of real estate associated with unconsolidated real estate entities

(10,576

)

(0.04

)

—

—

—

—

FFO

$

285,914

$

1.19

$

272,789

$

1.18

$

270,471

$

1.17

FFO

$

285,914

$

1.19

$

272,789

$

1.18

$

270,471

$

1.17

Adjustments:

Other depreciation and amortization

1,779

0.01

1,493

0.01

1,252

0.01

Casualty losses

1,314

0.01

3,935

0.02

925

0.01

Loan (premium accretion) discount amortization, net

(8,028

)

(0.03

)

(9,167

)

(0.04

)

(10,899

)

(0.04

)

Prepayment (gains) losses on asset dispositions

(1,570

)

(0.01

)

(1,953

)

(0.01

)

(1,900

)

(0.01

)

Loss (gain) on extinguishment of debt

67

—

(200

)

—

124

—

Other loss

352

—

1

—

743

—

Restructuring costs

—

—

—

—

3,213

0.01

CFFO

$

279,828

$

1.17

$

266,898

$

1.16

$

263,929

$

1.15

(1)

Based on 239,865,259, 230,741,085, and 230,364,184 weighted average shares and units outstanding for the years ended December 31, 2025, 2024, and 2023, respectively.

38

Table of Contents

Same-Store Properties and Same-Store Portfolio

We review our same-store portfolio at the beginning of each calendar year. Properties are added into the same-store portfolio if they were owned and not a development property at the beginning of the previous year. Properties that are held for sale or have been sold are excluded from the same-store portfolio.

Non Same-Store Properties and Non Same-Store Portfolio

Properties that did not meet the definition of a same-store property as of the beginning of the previous year are added into the non same-store portfolio.

Development Property

A development property is a property that is either currently under development or is in lease-up prior to reaching overall occupancy of 90%.

Same-Store Portfolio Net Operating Income

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, net gains on sale of assets, and restructuring costs. 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.

Set forth below is a reconciliation of GAAP net income to Same-Store Portfolio(a) NOI for the years ended December 31, 2025 and 2024 (in thousands):

Year Ended December 31,

2025

2024

% change

Net income

$

57,707

$

40,033

44.1

%

Other revenue

(1,215

)

(1,122

)

8.3

%

Property management expenses

30,107

29,923

0.6

%

General and administrative expenses

23,966

24,245

(1.2

)%

Depreciation and amortization expense

243,241

220,854

10.1

%

Casualty losses

1,314

3,935

(66.6

)%

Interest expense

78,998

76,141

3.8

%

(Gain on sale) loss on impairment of real estate assets, net

(6,147

)

9,862

(162.3

)%

Loss (gain) on extinguishment of debt

67

(200

)

(133.5

)%

Other loss

352

1

35100.0

%

Income from investments in unconsolidated real estate entities

(11,066

)

(347

)

3089.0

%

NOI

417,324

403,325

3.5

%

Less: Non same-store portfolio NOI

37,273

32,330

15.3

%

Same-store portfolio (a) NOI

$

380,051

$

370,995

2.4

%

(a)

Same-Store Portfolio for the years ended December 31, 2025 and 2024 included 105 properties containing 30,502 units.

Set forth below is Same-Store Portfolio (a) NOI for the years ended December 31, 2025 and 2024 (in thousands, except per unit data):

Year Ended December 31,

2025

2024

% change

Revenue:

Rental and other property revenue

$

595,601

$

585,431

1.7

%

Property Operating Expenses

Real estate taxes

67,926

68,534

(0.9

)%

Property insurance

13,323

15,174

(12.2

)%

Personnel expenses

47,460

48,068

(1.3

)%

Utilities

29,720

28,923

2.8

%

Repairs and maintenance

18,836

18,872

(0.2

)%

Contract services

22,927

21,276

7.8

%

Advertising expenses

9,079

7,380

23.0

%

Other expenses

6,279

6,209

1.1

%

Total property operating expenses

215,550

214,436

0.5

%

Same-store portfolio (a) NOI

$

380,051

$

370,995

2.4

%

Same-store portfolio NOI Margin

63.8

%

63.4

%

0.4

%

Average Occupancy

95.4

%

95.1

%

0.3

%

Average effective monthly rent, per unit

$

1,578

$

1,565

0.8

%

(a)

Same-Store Portfolio for the years ended December 31, 2025 and 2024 included 105 properties containing 30,502 units.

39

Table of Contents

Liquidity and Capital Resources

Overview

Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain investments, pay distributions and other general business needs. We believe our available cash balances, financing arrangements and cash flows from operations will be sufficient to fund our liquidity requirements with respect to our existing portfolio for the next 12 months and the foreseeable future.

Our primary cash requirements are to:

•

make investments, continue our Value Add Initiatives, and improve the quality and performance of our properties;

•

repay our indebtedness;

•

fund costs necessary to maintain our properties;

•

continue funding our current real estate developments until completion;

•

pay our operating expenses; and

•

distribute a minimum of 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and excluding net capital gain) and to make investments in a manner that enables us to maintain our qualification as a REIT.

We intend to meet our liquidity requirements primarily through a combination of one or more of the following:

•

the use of our cash and cash equivalents of $23.6 million as of December 31, 2025;

•

existing and future unsecured financing, including advances under our unsecured revolver, and financing secured directly or indirectly by the apartment properties in our portfolio;

•

cash generated from operating activities;

•

net cash proceeds from property sales, including sales undertaken as part of our capital recycling strategy, and other sales; and

•

proceeds from the sales of our common stock and other equity securities, including common stock that may be sold under our ATM Program (as defined below).

Stock Repurchase Program

On May 18, 2022, our Board of Directors authorized a common stock repurchase program (the “Stock Repurchase Program”) covering up to $250.0 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 year ended December 31, 2025, we repurchased and retired 1.9 million shares of our common stock at a weighted average price of $16.00 per share, at a total cost of $30.0 million. As of December 31, 2025, $220.0 million in shares of our common stock remained authorized for repurchase under our Stock Repurchase Program.

Cash Flows

As of December 31, 2025 and 2024, we maintained cash, cash equivalents, and restricted cash of approximately $47.6 million and $43.5 million, respectively. Our cash and cash equivalents were generated from the following activities (dollars in thousands):

For the Years Ended December 31,

2025

2024

2023

Cash flows provided by operating activities

$

282,149

$

259,753

$

262,170

Cash flows used in investing activities

(142,911

)

(20,605

)

(1,712

)

Cash flows used in financing activities

(135,068

)

(246,428

)

(253,743

)

Net change in cash and cash equivalents, and restricted cash

4,170

(7,280

)

6,715

Cash and cash equivalents, and restricted cash, beginning of period

43,452

50,732

44,017

Cash and cash equivalents, and restricted cash, end of the period

$

47,622

$

43,452

$

50,732

Our cash flows provided by operating activities during the years ended December 31, 2025, 2024 and 2023 were primarily driven by the ongoing operations of our properties. For the year ended December 31, 2025, the $22.4 million increase in cash inflows from operating activities was primarily driven by returns from our ongoing operations, a decrease in cash paid for real estate taxes due to the timing of property acquisitions and dispositions.

Our cash flows used in investing activities during the year ended December 31, 2025 were primarily driven by $152.7 million of outflows related to the acquisitions of three multifamily apartment communities, $135.6 million of capital expenditures, $35.7 million of outflows related to payments to fund our investments in our unconsolidated real estate entities and $18.2 million in additions to real estate under development, partially offset by $157.9 million of inflows from property dispositions and $40.5 million of inflows from  returns of investments in unconsolidated real estate entities.

40

Table of Contents

Our cash flows used in investing activities during the year ended December 31, 2024 were primarily driven by $238.6 million of outflows related to the acquisitions of three multifamily apartment communities, $118.3 million of capital expenditures, $56.8 million in additions to real estate under development, and $11.6 of outflows related to payments to fund our investments in four unconsolidated real estate entities, partially offset by $390.9 million of inflows from property dispositions, $9.1 million in return of investments in unconsolidated real estate entities and $4.7 million in proceeds from insurance claims.

Our cash flows used in investing activities during the year ended December 31, 2023 were primarily driven by $146.6 million of capital expenditures, $66.2 million in additions to real estate under development, and $26.0 million of outflows related to our investments in four unconsolidated real estate entities, partially offset by $230.8 million of inflows from property dispositions and $4.2 million in proceeds from insurance claims.

Our cash flows used in financing activities during the year ended December 31, 2025 were primarily driven by distributions of $158.3 million, mortgage principal repayments of $100.7 million and repurchases of common stock under our Share Repurchase Program of $30.0 million, partially offset by $162.4 million of proceeds from the issuance of common stock in connection with our public offering of an aggregate of 11.5 million shares of our common stock discussed below.

Our cash flows used in financing activities during the year ended December 31, 2024 were primarily driven by mortgage principal repayments of $314.1 million, distributions of $147.8 million, and repayments under our credit facilities, net of new borrowings of $40.7 million, partially offset by $150.0 million of proceeds from our private placement of unsecured notes, and $111.3 million of proceeds from the issuance of common stock in connection with our public offering of an aggregate of 11.5 million shares of our common stock discussed below.

Our cash flows used in financing activities during the year ended December 31, 2023 were primarily driven by distributions of $138.5 million and mortgage principal repayments of $129.6 million partially offset by new borrowings on the unsecured revolver, net of repayments of $19.7 million.

Capitalization

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 $750.0 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 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.

The Sixth Restated Credit Agreement also increases the aggregate amount of borrowings under the credit agreement to $1.5 billion and permits IROP to request an increase in such aggregate amount to up to $2.0 billion subject to certain terms and conditions, including receipt of commitments from one or more lenders, whether or not currently parties to the Sixth Restated Credit Agreement, to provide such increased amounts, which increase may be allocated, at IROP’s option, to the Unsecured Revolver and/or to one or more of the Term Loans, in accordance with the Sixth Restated Credit Agreement.

The margin for borrowings under the Unsecured Revolver, the 2028 Term Loan and the new 2030 Term Loan remain unchanged, with (1) Unsecured Revolver borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 72.5 to 140 basis points, or (ii) a base rate plus a margin of 0 to 40 basis points; and (2) 2028 Term Loan and new 2030 Term Loan borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 80 to 160 basis points, or (ii) a base rate plus a margin of 0 to 60 basis points. The applicable margin will be determined based upon IRT’s credit rating. At the time of closing, based upon IRT’s credit rating along with IROP’s consolidated leverage ratio, the applicable SOFR margin was 77.5 basis points for the Unsecured Revolver and 85 basis points for both the 2028 Term Loan and 2030 Term Loan.

The Sixth Restated Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on our ability to take the following actions: (i) make distributions after an event of default; (ii) incur debt; (iii) make investments; (iv) grant or suffer liens; (v) undertake mergers, consolidations, asset sales and other fundamental entity changes; (vi) make material changes to contracts and organizational documents; and (vii) enter into transactions with affiliates.

The Sixth Restated Credit Agreement also contains financial covenants applicable to us involving (i) maximum consolidated total debt to total asset value, (ii) maximum distributions, (iii) maximum secured debt to total asset value, (iv) maximum unsecured debt to eligible unencumbered properties, and (v) minimum consolidated fixed charge coverage. The Sixth Restated Credit Agreement provides for certain customary events of default, including among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of covenants, cross defaults with certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control.

41

Table of Contents

Public Offering of 11.5 Million Shares of Common Stock

On September 3, 2024, we entered into an underwriting agreement with Citigroup Global Markets Inc., KeyBanc Capital Markets Inc. and RBC Capital Markets LLC as representatives of the several underwriters named therein, (collectively, the “Underwriters”), and Citigroup Global Markets Inc. in its capacity as agent (in such capacity, the “Forward Seller”) for Citibank, N.A., as forward counterparty (the “Forward Counterparty”) and the Forward Counterparty related to the offering of an aggregate of 11.5 million shares of our common stock, par value $0.01 per share, at a price of $18.96 per share consisting of 11.5 million shares of our common stock offered by the Forward Seller in connection with the forward sale agreements described below (including 1.5 million shares offered pursuant to the Underwriters’ option to purchase additional shares, which was exercised in full). We did not initially receive any proceeds from the sale of our common stock by the Forward Seller. We completed the offering on September 5, 2024.

In connection with the offering, we also entered into two forward sale agreements. The first forward sale agreement (the “Initial Forward Sale Agreement”), dated September 3, 2024, with the Forward Seller and Forward Counterparty, and the second forward sale agreement (the “Additional Forward Sale Agreement”, together with the Initial Forward Sale Agreement, the “Forward Sale Agreements”), dated September 4, 2024, with the Forward Seller and the Forward Counterparty. In connection with the Forward Sale Agreements, the Forward Seller (or its affiliate) borrowed from third parties and sold to the Underwriters an aggregate of 11.5 million shares of our common stock that was sold in the offering.

On December 30, 2024, we physically settled 3.25 million shares of our common stock that was sold in the offering at a weighted average price of $19.04 per share, and we received net proceeds of $61.9 million. On March 31, 2025, we physically settled 2.65 million shares at a weighted average price of $18.89 per share and we received net proceeds of $50.1 million. On September 5, 2025, we amended the Forward Sale Agreements to extend the scheduled maturity date to December 31, 2025. On September 29, 2025, we physically settled 5.3 million shares at a weighted average price of $19.06 per share and we received net proceeds of $101.0 million. On December 31, 2025, we net cash settled the remaining 0.3 million shares of common stock at a weighted average price of $17.53 per share against a weighted average forward price of $19.01 per share, resulting in net proceeds to us of $0.4 million. All of the net proceeds were used to fund new acquisitions. As of December 31, 2025, no shares of our common stock remained to be settled under the Forward Sale Agreements.

ATM Program

On July 28, 2023, we entered into an equity distribution agreement pursuant to which we may from time to time offer and sell shares of our common stock under our shelf registration statement having an aggregate offering price of up to $450.0 million (the “ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act. Under the ATM Program, we may also enter into one or more forward sale transactions for the sale of shares of our common stock on a forward basis.

During the three months ended March 31, 2025, we entered into forward sales transactions under the ATM Program for the forward sale of an aggregate of 2.7 million shares of our common stock at a weighted average price of $20.96 per share. On December 23, 2025, we net cash settled all 2.7 million shares of common stock at a weighted average price of $16.81 per share against a weighted average forward price of $21.02 per share, resulting in net proceeds to us of $11.3 million. We used substantially all of the net proceeds to fund the repurchase of shares of common stock under our Stock Repurchase Program. As of December 31, 2025, approximately $342.4 million remained available for issuance under our ATM Program.

Stock Repurchase Program

On May 18, 2022, our Board of Directors authorized a common stock repurchase program (the “Stock Repurchase Program”) covering the repurchase of up to $250 million in shares of our common stock. Under the Stock Repurchase Program, we, in our discretion, may purchase our shares of common stock 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 of common stock, 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 year ended December 31, 2025, we repurchased and retired 1.9 million shares of our common stock at a weighted average price of $16.00 per share, at a total cost of $30.0 million. As of December 31, 2025, $220.0 million in shares of our common stock remained authorized for repurchase under our Stock Repurchase Program.

Quarterly Dividend Distribution

On December 15, 2025, our Board of Directors declared a quarterly dividend of $0.17 per share of common stock, which was paid on January 23, 2026 to stockholders of record at the close of business on December 31, 2025.

42

Table of Contents

Consolidated Debt

The following tables contain summary information concerning our consolidated indebtedness as of December 31, 2025 (dollars in thousands):

Consolidated Debt:

Outstanding Principal

Unamortized Debt Issuance Costs

Unamortized Loan (Discount)/Premiums

Carrying Amount

Type

Weighted Average Contractual Rate (2)

Weighted Average Effective Rate (3)

Weighted Average Maturity (in years)

Unsecured revolver (1)

$

198,892

$

(4,535

)

$

—

$

194,357

Floating

4.5

%

4.8

%

3.0

Unsecured term loans

600,000

(1,142

)

—

598,858

Floating

4.6

%

4.0

%

1.5

Secured credit facilities

582,535

(1,525

)

12,157

593,167

Fixed

4.2

%

4.4

%

2.9

Mortgages

739,596

(2,741

)

9,693

746,548

Fixed

3.9

%

4.0

%

3.3

Unsecured notes

150,000

(1,455

)

—

148,545

Fixed

5.4

%

5.6

%

7.3

Total Consolidated Debt

$

2,271,023

$

(11,398

)

$

21,850

$

2,281,475

4.3

%

4.3

%

3.0

(1)

The unsecured revolver total capacity is $750,000, of which $198,892 was outstanding as of December 31, 2025. On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029.

(2)

Represents the weighted average of the contractual interest rates in effect as of year-end without regard to any interest rate swaps or collars.

(3)

Represents the weighted average effective interest rate for the three months ended December 31, 2025, including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferred financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.

Original maturities on or before December 31,

Debt:

2026

2027

2028

2029

2030

Thereafter

Unsecured revolver (1)

$

—

$

—

$

—

$

198,892

$

—

$

—

Unsecured term loans

200,000

—

400,000

—

—

—

Secured credit facilities

9,111

10,081

453,936

2,670

106,737

—

Mortgages

126,763

11,281

126,019

416,031

—

59,502

Unsecured notes

—

—

—

—

—

150,000

Total

$

335,874

$

21,362

$

979,955

$

617,593

$

106,737

$

209,502

(1)

On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029.

As of December 31, 2025 we were in compliance with all financial covenants contained in our consolidated indebtedness.

Contractual Obligations

The table below summarizes our material cash requirement related to contractual obligations, which primarily consist of principal and interest payments on our outstanding consolidated debt obligations and operating lease obligations as of December 31, 2025 (dollars in thousands).

2026

2027

2028

2029

2030

Thereafter

Total

Principal payments on outstanding debt obligations (1)

$

335,874

$

21,362

$

979,955

$

617,593

$

106,737

$

209,502

$

2,271,023

Interest payments on outstanding debt obligations (2)

90,911

84,081

58,183

27,057

12,788

117,473

390,493

Operating lease obligations

811

827

796

649

228

—

3,311

Total

$

427,596

$

106,270

$

1,038,934

$

645,299

$

119,753

$

326,975

$

2,664,827

(1)

On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029. On February 11, 2026, we amended and restated our unsecured credit agreement, which provides for a new $350,000 term loan with a maturity date of February 11, 2030, subject to a one year extension option. A portion of the proceeds were used to repay the $200,000 term loan with a maturity date of May 18, 2026.

(2)

Our unsecured revolver and term loans assumed a SOFR rate of 3.87% as of December 31, 2025.

43

Table of Contents

Terms of Leases and Resident Characteristics

The leases for our portfolio typically follow standard forms customarily used between landlords and residents in the geographic area in which the relevant property is located. Under such leases, the resident typically agrees to pay an initial deposit (generally one month’s rent) or deposit alternative, and/or associated application and move in-fees, and then pays rent on a monthly basis during the term of the lease. As landlord, we are directly responsible for all real estate taxes, sales and use taxes, special assessments, property-level utilities, insurance, building repairs, and other building operation and management costs. Individual residents are generally responsible for the utility costs of their unit. Our lease terms are generally for one year or less and average twelve months.

Our apartment resident composition varies across the regions in which we operate, includes singles, roommates and family renters and is generally reflective of the principal employers in the relevant region. Our apartment properties predominantly consist of one-bedroom and two-bedroom units, although some of our apartment properties also have studio and three-bedroom units.

Insurance

Our multifamily properties are covered by all risk property insurance covering the replacement cost for each building and business interruption and rental loss insurance. On a case-by-case basis, based on an assessment of the likelihood of the risk, availability and cost of insurance, and in accordance with standard market practice, we obtain earthquake, windstorm, flood, terrorism and boiler and machinery insurance. We carry comprehensive liability insurance and umbrella policies for each of our properties at levels which we believe are prudent in light of our business activities and are in accordance with standard market practice. We seek certain extensions of coverage, valuation clauses, and deductibles in accordance with standard market practice and availability. Although we may carry insurance for potential losses associated with our multifamily properties, we may still incur losses due to uninsured risks, deductibles, co-payments or losses in excess of applicable insurance coverage and those losses may be material. In addition, we generally obtain title insurance policies when we acquire a property, with each policy covering an amount equal to the initial purchase price of each property. Accordingly, any of our title insurance policies may be in an amount less than the current value of the related property.

Inflation

Our resident leases at our apartment communities allow, at the time of renewal, for adjustments in the rent payable thereunder, and thus may enable us to seek rent increases. Almost all leases are for approximately one year or less. The short-term nature of these leases has generally served to reduce our risk to adverse effects of inflation. However, substantial inflationary pressures have had and could continue to have a negative effect on rental rates and property operating expenses. The general risk of inflation is that interest on our debt, general and administrative expenses and other expenses, including our costs of capital improvements and expenditures, increase at a rate faster than increases in our residential rental rates, which would adversely affect our financial condition or results of operations. Additionally, substantial inflationary pressures may dampen consumer spending, which may negatively impact the demand for resident leases at our apartment communities. While there is debate among economists as to whether inflationary pressures, coupled with recent periods of economic contractions in the U.S., indicate that the U.S. has entered, or in the near term will enter, a recession, it remains difficult to predict the full impact of any future changes in inflation.

Critical Accounting Estimates and Policies

We consider the accounting policies discussed below to be critical to an understanding of how we report our financial condition and results of operations because their application places the most significant demands on the judgment and estimates of our management.

Our financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make use of 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.

Investments in Real Estate

Allocation of Purchase Price of Acquired Assets

In accordance with FASB ASC Topic 805, we evaluate our real estate acquisitions to determine if they should be accounted for as a business or 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 is not 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.

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.

Impairment of Long-Lived Assets

Management evaluates the recoverability of its investment in real estate assets, including related identifiable intangible assets, in accordance with FASB ASC Topic 360, “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 is not assured.

44

Table of Contents

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, 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 may result 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.