MeritValue

INDEPENDENCE REALTY TRUST, INC.

IRTdata completeness 88%16 fiscal years on file
The thesis, from the filings

INDEPENDENCE REALTY TRUST, INC. earns about 1% on equity, but has diluted owners by 114% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $1.97 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$250.3M1$628.5M2$661M3$640M3$657.7M3
Net income$44.6M4$117.2M5−$17.2M6$39.3M6$56.6M6
Operating cash flow$52.3M7$249.5M8$262.2M9$259.8M9$282.1M9
Capital expenditure$177,00010————
Free cash flow (derived)$52.1M7————
Total debt$2.71B11$2.63B12$2.55B13$2.33B14$2.28B14
Cash & equivalents$36M15$16.1M16$22.9M17$21.2M17$23.6M17
Diluted shares109.8M223.1M224.4M225.6M234.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$147.39
your share of equity
Profit it earned you last year
$2.41
Free cash flow it threw off
—
Debt you’d be carrying
$97.19

10 shares is a claim on $147.39 of net worth that earned you $2.41 last year, against $97.19 of debt.

iii. Is this a good business?
Moat signal · return on equity
1% avg · 5y
FY21 1%FY22 3%FY23 -1%FY24 1%FY25 2%

It earned an average 1% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+114% shares · 5y

Share count is up 114% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 16% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$1.97
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$44.6M
  • growthAssumed0.0%
Graham Number
$8.92
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001466085-24-000023 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001466085-25-000021 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001437749-26-004376 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001466085-24-000023 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001466085-25-000021 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001437749-26-004376 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001466085-24-000023 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001466085-25-000021 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001437749-26-004376 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001564590-22-006764 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2021-12-31 · accession 0001466085-23-000024 (LongTermDebt)
  12. 10-K · period ending 2022-12-31 · accession 0001466085-24-000023 (LongTermDebt)
  13. 10-K · period ending 2023-12-31 · accession 0001466085-25-000021 (LongTermDebt)
  14. 10-K · period ending 2024-12-31 · accession 0001437749-26-004376 (LongTermDebt)
  15. 10-K · period ending 2021-12-31 · accession 0001466085-24-000023 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001466085-25-000021 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001437749-26-004376 (CashAndCashEquivalentsAtCarryingValue)