Investment Thesis
Independence Realty Trust (IRT) delivered a solid Q2 2019 with mid-single-digit same-store top line and bottom line growth. The REIT should continue to benefit from favorable demographic trends. It also has a redevelopment pipeline to help grow its net operating income. However, IRT faces elevated supplies in many of its markets. It also has an elevated debt level. Even though IRT pays a 5.5%-yielding dividend, the payout ratio is high. Although its shares are trading at a discount to its peers, we are not comfortable about its leverage ratio. We think