Independence Realty Trust, Inc. (NYSE MKT:IRT) Q1 2018 Earnings Conference Call - Final Transcript

Apr 25, 2018 • 09:30 am ET

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Independence Realty Trust, Inc. (NYSE MKT:IRT) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Independence Realty Trust First Quarter 2018 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Ms. Lauren Tarola with Investor Relations. Ma'am, you may begin.

Executive
Lauren Tarola

Thank you. Good morning, everyone. Thank you for joining us today to review Independence Realty Trust's first quarter 2018 financial results. On the call with me today are Scott Schaeffer, our Chief Executive Officer; Jim Sebra, our Chief Financial Officer; and Farrell Ender, President of IRT. Today's call is being webcast on our website at www.irtliving.com. There will be a replay of the call available via webcast on our Investor Relations website and telephonically beginning at approximately 12:00 PM Eastern time today.

Before I turn the call over to Scott, I would like to remind everyone that there may be forward-looking statements made in this this call. These forward-looking statements reflect IRT's current views with respect to future events and financial performance. Actual results could differ substantially and materially from what IRT has projected. Such statements are made in good faith pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to IRT's press release, supplemental information and filings with the SEC for factors that could affect the accuracy of our expectations or cause our future results to differ materially from those expectations.

Participants may discuss non-GAAP financial measures during this call. A copy of IRT's press release and supplemental information containing financial information, other statistical information and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is attached to IRT's most recent current report on the Form 8-K available on IRT's website. IRT's other SEC filings are also available through this link. IRT does not undertake to update forward-looking statements in this call or with respect to matters described herein, except as may be required by law.

Now, it is my pleasure to turn the call over to Scott Schaeffer.

Executive
Scott Schaeffer

Thank you, Lauren; and thank you for joining us this morning. First quarter of 2018 produced positive results that were in line with our expectations and guidance provided on our last earnings call. The quarter was highlighted by successfully completing the integration and onboarding of communities acquired in late-2017 and early-2018, as well as the initiation of the first phase of our value-add program. As of quarter-end, all five communities identified in Phase 1 of our program have renovations now underway.

Starting with a brief overview of our financial performance and operating results, IRT reported core FFO per share of $0.18, in line with the first quarter of 2017; and adjusted EBITDA of $23 million, up 18% year-over-year. Revenue growth was strong, up 8% sequentially and 17% year-over-year.

Same-store NOI for the quarter grew 2% year-over-year. Our same-store NOI growth was impacted by severe weather-related incidents across a number of our core markets that led to heightened operating cost and softened leasing traffic. With the seasonal first quarter