Independence Realty Trust Shows Continued Price Strength

Independence Realty Trust Inc. IRT owns and operates multifamily apartment properties nationwide with an eye toward benefiting shareholders through cash flow and possible increased value of the underlying real estate. 

The Philadelphia-based real estate investment trust (REIT) trades on the New York Stock Exchange with an average daily volume of 1.86 million shares.

Market capitalization is $4.34 billion, not one of the majors in the industry compared to REITs like American Tower Corp. AMT, which has a market cap of $100 billion, but big enough to be followed by some of the major analysts. 

Independence Realty is trading with a price-earnings ratio of 32 at 1.19 times its book value. In 2022, funds from operations (FFO) increased by 160% and over the past five years grew at a 33% rate. 

Wall Street analysts in January downgraded the REIT. Jefferies Group moved it from its Buy list to its Hold list and reduced the price target from $20 to $17. Deutsche Bank took it from Buy to Hold with a price target reduction from $20 to $17. JMP Securities initiated coverage with a Market Perform rating.

Independence Realty is paying a dividend of 2.9%.

The daily price chart is here:

After establishing a four-month high in early February, the REIT appears to be consolidating following the consumer price index report for January that showed slowing inflation. Note that the price remains just slightly above the downtrending 200-day moving average (the red line) and well above the uptrending 50-day moving average (the blue line).

The October price low was $15, and it’s now trading at $19 — a 26% gain in just a few months.

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The weekly chart for Independence Realty looks like this:

The REIT has a long way to go to top the early 2022 peak of almost $28, but February’s price action looks positive so far. Although it’s been quite a drop during 2022, it’s good for investors that the price remains above the 50-week moving average. 

Not investment advice. For educational purposes only.

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