IRT Cuts 2026 EPS Outlook as Same-Store NOI Growth Accelerates

The Tip Desk · November 3, 2026 · 4 min read

Core funds from operations were $0.29 a share in the third quarter as the multifamily REIT reaffirmed full-year CFFO of $1.13 to $1.15 a share.

Independence Realty Trust, Inc. (IRT), a multifamily apartment REIT, cut its 2026 earnings-per-share outlook after same-store net operating income growth accelerated to 1.6% in the third quarter, even as it reaffirmed core funds from operations per share of $1.13 to $1.15.

The company now expects full-year EPS of $0.18 to $0.20, a $0.05 reduction at the midpoint from the prior $0.22 to $0.27 range. CFFO per share guidance was unchanged. The company said the lower EPS range reflects merger and integration costs incurred through September 30, 2026, and that the proposed Centerspace transaction is not expected to have a significant impact on full-year 2026 guidance because it is expected to close as early as the end of the fourth quarter.

Net income available to common shares was $25.1 million, or $0.11 a share, compared with $6.9 million, or $0.03 a share, a year earlier. CFFO was $70.7 million, or $0.29 a share, versus $70.0 million, or $0.29 a share, in the year-ago quarter. Adjusted EBITDA was $95.1 million.

Same-store rental and other property revenue rose 2.0% year over year, faster than the 0.9% increase in the second quarter. Property operating expenses rose 2.5%, after a 0.5% increase in the prior quarter. NOI margin compressed 20 basis points year over year to 63.2%. Same-store average occupancy held at 95.0%. The average rental rate rose 0.6% to $1,605.

Leasing spreads continued to improve. Blended lease-over-lease effective rental rate growth on like-term leases accelerated to 2.8% year over year from 1.3% in the second quarter. New like-term lease growth improved 310 basis points year over year to a 0.6% decline from a 3.7% decline in the year-ago quarter. Renewal like-term growth was 4.6%. Resident retention rose to 60.5%, up 2.4 percentage points sequentially from 58.1%.

Chairman and Chief Executive Officer Scott Schaeffer said leasing momentum continued to build and that the company believes IRT is well positioned for stronger growth in 2027 as concessions burn off, the Wi-Fi program ramps, and supply-demand fundamentals improve.

The Value Add Program completed 744 unit renovations in the quarter, with a weighted average return on investment of 14.2%, an average cost of $20,597 per unit, and an average monthly rent increase of $244 over unrenovated comparable units. For the nine months ended September 30, 2026, the program completed 1,770 renovations with a 14.9% weighted average ROI.

On September 9, 2026, IRT announced a definitive agreement to merge with Centerspace, expected to create an $8 billion multifamily REIT with 163 communities and about 44,400 units. Centerspace shareholders will receive 3.800 shares of IRT common stock for each Centerspace share. Legacy IRT stockholders and IROP common-unit holders are expected to own about 78% of the combined company. Based on $24 million in annual synergies, the company said the transaction should be 5% accretive to CFFO. Stockholder votes are scheduled for November 10, 2026.

On September 10, 2026, IRT sold Stonebridge Crossing in Memphis for a gross price of $55.8 million, producing a gain of approximately $26.5 million. Subsequent to quarter-end, on October 1, 2026, it acquired its joint venture partner’s 15% interest in The Mustang in Dallas, taking 100% ownership of a 275-unit community that will be consolidated effective October 1.

At September 30, 2026, net debt to Adjusted EBITDA was 6.2x, down from 6.5x at June 30. Liquidity was approximately $491.6 million. The weighted average effective interest rate on consolidated debt, including hedges, was 4.3%, with 86.5% of debt fixed or hedged. The board declared a quarterly dividend of $0.18 a share.

Same-store 2026 NOI growth guidance was reaffirmed at a 1.5% midpoint, with the range narrowed to 1.2% to 1.8% from 1.0% to 2.0%. Property revenue growth guidance held at a 1.7% midpoint. Acquisition volume guidance was raised to $266 million from $145 million, reflecting a Columbus property acquired in the first quarter and the consolidation of two joint-venture properties.