INDEPENDENCE REALTY TRUST, INC. Segments Disclosure

NOTE 11: Segment Reporting

 

Each of our multifamily properties is considered an operating segment that earns revenues through the leasing of apartment homes and incurs associated expenses. Individual operating results for each of our multifamily properties is reviewed and discrete financial information is available. Our multifamily properties have similar long-term economic characteristics and provide similar products and services to a similar class of residents. All operations are within the United States and no individual multifamily property comprises more than 10% of consolidated revenues or assets. We aggregate our multifamily properties on a same-store and non same-store basis, and as a result, have identified two reportable segments.

 

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Same-Store includes properties that were owned and not a development property as of January 1, 2024, and that have not been sold or identified as held for sale.

 

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Non Same-Store includes properties that did not meet the definition of a same-store property as of January 1, 2024.

 

GAAP guidance requires that segment disclosures present the measures used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing segment performance. As a group, our executive officers, including the CEO, President and CFO, CAO, and EVP of Operations act as the CODM. The CODM manages and reviews our operations on both a property-by-property basis and same-store and non same-store basis and uses net operating income (“NOI”) as the primary financial measure to evaluate operating results of our multifamily properties, including analyses compared to prior periods and budgeted operating results. NOI is defined as total property revenues less total property operating expenses, excluding interest expenses, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expense, net gains on sale of assets and restructuring costs.

 

Segment assets consist of real estate held for investment, real estate held for sale and investments in real estate under development. Non-segment assets consist of assets in the Company’s other non-reportable segments and corporate non-segment assets, which are comprised of cash and cash equivalents, restricted cash, investments in unconsolidated real estate entities, other assets, derivative assets and intangible assets. Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources.

 

 

The following table details NOI for our two reportable segments for the years ended December 31, 2025, 2024 and 2023, and reconciles NOI to Net income (loss) on the consolidated statements of operations. The segments are classified as same-store or non same-store based on the individual property’s status as of December 31, 2025 for the years ended  December 31, 2025 and 2024 and at December 31, 2024 for the year ended December 31, 2023.

 

			For the Year Ended December 31,
		2025				2024				2023
Revenue:
Same-store(1) rental and other property revenue		$	595,601			$	585,431			$	585,277
Non same-store(1) rental and other property revenue			60,880				53,482				74,564
Total reportable segments revenue			656,481				638,913				659,841
Other income			1,215				1,122				1,142
Total consolidated revenue		$	657,696			$	640,035			$	660,983
Operating Expenses:
Same-store
Real estate taxes			67,926				68,534				72,518
Property insurance			13,323				15,174				14,618
Personnel expenses			47,460				48,068				45,592
Utilities			29,720				28,923				28,296
Repairs and maintenance			18,836				18,872				20,122
Contract services			22,927				21,276				21,584
Advertising expenses			9,079				7,380				6,342
Other property operating expenses (2)			6,279				6,209				6,625
Total same-store operating expenses			215,550				214,436				215,697
Non same-store
Total non same-store operating expenses			23,607				21,152				28,633
Total reportable segments operating expenses			239,157				235,588				244,330
Net Operating Income:
Same-store NOI			380,051				370,995				369,580
Non same-store NOI			37,273				32,330				45,931
Total reportable segments NOI			417,324				403,325				415,511
Adjustments:
Other revenue			1,215				1,122				1,142
Property management expenses			(30,107	)			(29,923	)			(27,081	)
General and administrative expenses			(23,966	)			(24,245	)			(22,766	)
Depreciation and amortization			(243,241	)			(220,854	)			(218,968	)
Casualty losses			(1,314	)			(3,935	)			(925	)
Interest expense			(78,998	)			(76,141	)			(89,921	)
Gain on sale (loss on impairment) of real estate assets, net			6,147				(9,862	)			(66,547	)
(Loss) gain on extinguishment of debt			(67	)			200				(124	)
Other loss			(352	)			(1	)			(427	)
Income (loss) from investments in unconsolidated real estate entities			11,066				347				(4,488	)
Restructuring costs			—				—				(3,213	)
Net income (loss)		$	57,707			$	40,033			$	(17,807	)

 

	(1)	Same-store portfolio consists of 105 properties, which represent 30,502 units. Non same-store portfolio consists of 9 properties, which represent 2,960 units.
	(2)	Other property operating expenses includes property office, administrative and legal costs.