JMP maintains $25 target on Independence Realty Trust stock

Published 05/05/2025, 10:06
JMP maintains $25 target on Independence Realty Trust stock

Monday’s trading session saw Independence Realty Trust (NYSE:IRT) maintain its Market Outperform rating and a $25.00 price target from JMP analysts. According to InvestingPro data, the company maintains a Fair financial health score, with particularly strong price momentum. Following the release of the company’s first-quarter results for 2025, analyst commentary highlighted the alignment of core Funds From Operations (FFO) with both JMP and consensus estimates at $0.27 per share. With a market capitalization of $4.6 billion and an EBITDA of $351 million in the last twelve months, Independence Realty Trust’s management confirmed their 2025 guidance across all key metrics after these results.

The company’s lease rate growth for the quarter was noted to be slightly underwhelming, but this was deemed marginal in the broader context of positive supply and demand dynamics. Independence Realty Trust has also been proactive in capitalizing on its share price by issuing additional equity through an at-the-market (ATM) offering. InvestingPro analysis reveals the company has maintained dividend payments for 13 consecutive years, with a current dividend yield of 3.26%.

JMP analysts expect that the fundamental drivers of the company will lead to significant Net Operating Income (NOI) growth, serving as a catalyst for the stock’s performance. The positive outlook is further supported by demographic shifts, with substantial population growth in the Sunbelt and Midwest regions. Additionally, a projected decrease in apartment deliveries, influenced by the Federal Reserve’s rate policies post-pandemic, combined with historically low homeownership affordability, is expected to benefit the residential rental market.

These factors are anticipated to contribute to a sustained trend that underpins JMP’s confidence in the Market Outperform rating for Independence Realty Trust. The analysts’ price target implies a 30.4% potential for capital appreciation, coupled with a current yield of approximately 3.3%, leading to a total anticipated return of 33.7%. InvestingPro subscribers have access to 10 additional key insights about IRT, including detailed valuation metrics and growth indicators. Get the complete picture with the comprehensive Pro Research Report, available exclusively to subscribers.

In other recent news, Independence Realty Trust reported its first-quarter 2025 earnings, revealing core funds from operations per share at $0.27, consistent with the previous year. The company’s revenue reached $160.91 million, falling short of the forecasted $164.15 million. Despite the revenue miss, the company maintained its full-year guidance, projecting rental rate gains and improved fundamentals. Independence Realty Trust also completed the sale of its final asset in Birmingham, Alabama, for $111 million, and expanded in Indianapolis with a $59.5 million acquisition. The company entered a joint venture to develop a 324-unit community in Charleston, South Carolina. Analysts from RBC and KeyBanc Capital Markets noted the company’s stable demand trends and pricing power. Independence Realty Trust plans to renovate 5,000-6,000 units in 2025, aiming for a mid-five net debt to adjusted EBITDA ratio by year-end. The company expects rental growth to accelerate in the second half of 2025.

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