Independence Realty Trust Reports Q2 2026 Results: Full Earnings Call Transcript

Independence Realty Trust (NYSE: IRT ) released second-quarter financial results and hosted an earnings call on Tuesday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit View the webcast at Summary Independence Realty Trust reported a 120 basis point improvement in new lease rates in Q2 2026, driven by rental rate growth and reduced concessions.

The company successfully implemented the first phase of a community Wi-Fi initiative, contributing to revenue growth and expected to add to Core FFO per share in 2027.

Same-store NOI growth outperformed expectations, leading to an increased full-year guidance of 1.5%, while same-store revenue growth guidance remains at 1.7%.

Value-add renovation programs achieved a 16% ROI, and the company plans to accelerate this initiative given the shortened renovation timelines and improving market conditions.

Management highlighted strong demand in Sunbelt and Midwest markets, with a notable reduction in concession use and positive new lease spreads in several key markets.

Full Transcript Stephanie, Investor Relations To discuss second quarter 2026 results on the call.

With me today are Scott Schaeffer, Chairman and Chief Executive Officer; James Sebra, Chief Financial Officer; Janice Richards, Executive Vice President of Operations; and Jason Lynch, Senior Vice President of Acquisitions.

Before we begin, please note that any forward-looking statements made during this call are based on our current expectations and beliefs as to future events and financial performance.

These statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially.

Such statements are made in good faith pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and Independence Realty Trust does not undertake to update them except as may be required by law.

Please refer to Independence Realty Trust's press release, supplemental information, and filings with the SEC for further information about these risks.

A copy of Independence Realty Trust's earnings press release and supplemental information is attached to Independence Realty Trust's current report on Form 8-K that is available in the Investors section of our website.

They contain reconciliations of non-GAAP financial measures referenced on this call to the most direct comparable GAAP financial measure.

With that, it's my pleasure to turn the call over to Scott Schaeffer.

Scott Schaeffer, Chairman and Chief Executive Officer Thanks, Stephanie, and thank you all for joining us this morning.

I am pleased to report that operating momentum is building across our portfolio as market conditions continue to improve.

As our results demonstrate, rental rate growth has improved throughout the year, driving a 120 basis point sequential improvement in new lease rates during the second quarter, with further improvement in July.

Additionally, as of today, with 65% of new lease activity completed for the month of August, new lease spreads for like-kind leases are slightly positive.

The consistent upward trajectory in leasing spreads is a clear signal that our markets are in recovery, which, when combined with the new Wi—Fi revenue stream that we've established, supports our confidence in our guidance for same-store revenue growth.

As expected, the volume of new deliveries has declined in our markets, and macroeconomic drivers of demand continue to outpace national averages.

Recent employment data continues to highlight health care as the primary driver of national job gains over the past year.

This is visible across our footprint.

Education and healthcare employment grew faster than total employment in every one of our 10 largest markets over the trailing year, aligning with our residents' income profile.

People continue to relocate to the Sunbelt and Midwest markets for employment opportunities and quality of life.

The high cost of home ownership continues to support rental demand, and Independence Realty Trust's value proposition—namely larger apartment units, good school districts, proximity to essential retail and employment centers, with monthly rents that are meaningfully less than new construction—continues to attract and retain residents.

Bearing this point, the steady improvement in market conditions has resulted in greater lead generation volumes over last year and a decrease in concession use.

Importantly, overall market occupancies across our portfolio have generally reached levels that support market-wide rent growth.

The combination of durable demand, rising market rents, and normalizing concessions has driven sequential improvement in rental rates that I mentioned earlier.

New lease trade-outs for like-term leases at our Midwest communities were positive 2.3% in the second quarter and a positive 2.1% in July.

New lease spreads at our Sunbelt communities were a negative 3.8% in the second quarter and improved 180 basis points in July.

And in the West, new lease trade-outs were negative 3.2% in the second quarter and improved 340 basis points to a positive 20 basis points in July.

Taken together, net effective rental rate growth in our markets is gaining steam.

With the recovery that is upon us, rent premiums from our value-add activity will also increase because we perform a full repositioning of the apartment community.