EX-99.1 2 d786259dex991.htm EX-99.1

Independence Realty Trust, Inc. September 2014 Exhibit 99.1

Forward Looking Statements, Non-GAAP Financial Measures and Disclaimers 2 This document and the related presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about Independence Realty Trust, Inc.’s (“IRT”) plans, objectives, expectations and intentions with respect to future operations, projected acquisitions of properties under contract or in IRT’s pipeline and other statements that are not historical facts. Forward-looking statements are sometimes identified by the words “may”, “will”, “should”, “potential”, “predict”, “continue”, “project”, “guide”, or other similar words or expressions. These forward-looking statements are based upon the current beliefs and expectations of IRT's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within IRT’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. IRT does not guarantee that the assumptions underlying such forward looking statements are free from errors. Actual results may differ materially from the anticipated results discussed in these forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the risk factors and other disclosure contained in filings by IRT with the Securities and Exchange Commission (“SEC”), including, without limitation, IRT’s most recent annual and quarterly reports filed with SEC. IRT’s SEC filings are available on IRT’s website at www.irtreit.com. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. All subsequent written and oral forward-looking statements attributable to IRT or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this document and the related presentation. Except to the extent required by applicable law or regulation, IRT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. This document and the related presentation may contain non-U.S. generally accepted accounting principles (“GAAP”) financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is included in this document and/or IRT’s most recent annual and quarterly reports. This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of IRT.

• IRT is an apartment REIT focused on building a portfolio of well-located apartment properties in supply constrained secondary and tertiary markets which generate attractive current returns with the potential for rent increases and improved operating efficiency. – Listed on the NYSE MKT in August 2013 – “IRT” – Targets markets with strong demographic and employment trends with minimal new supply – 19 properties in 11 states representing 5,342 units at June 30, 2014 – Focused on delivering strong risk-adjusted returns – Monthly common dividend of $0.06 or $0.72 annually representing a 7.1% yield with a $10.08 stock price at September 4, 2014 – IRT is externally managed by a subsidiary of RAIT Financial Trust (NYSE: RAS) – a multi-strategy commercial real estate company with a vertically integrated platform and significant experience owning and lending against apartment properties – Seasoned external manager with significant resources for IRT’s benefit Who are we? 3

Attractive Apartment Industry Dynamics Support Strong Demand 4 IRT expects conditions will remain favorable for apartment fundamentals for the foreseeable future in secondary markets. • Positive Demographic Factors. The Echo boom generation (born early 80’s – ’00’s), which is significantly larger than Gen X (born early 60’s – 80’s), is entering the rental market. Harvard research suggests that renters could make up half of all new households by 2020. This equates to up to 7 million new renter households this decade. • Supply Shortage. Supply has been constrained since the recession; U.S. needs 300,000 new apartments every year to meet demand. Supply is still playing catch-up from the impacts of the recession. In 2010, there were only 100,804 new apartments built. In 2013, 134,520 new apartments were built. The majority of new developments since the downturn have been focused on primary markets. • Low homeownership. Changing demographic factors and lifestyles plus stringent mortgage lending standards and competition from own-to-rent investors have resulted in the homeownership rate at levels last seen in the mid-1990s Positive Trends Data Source: U.S. Census Bureau, National Multifamily Housing Council (NMHC), Economy.com, RAIT Financial Trust

Key Statistics - Strong Momentum in the Business 5 • Since June 30, 2013, IRT has more than doubled its portfolio by number of units and properties (1) Weighted average monthly effective rent per occupied unit represents the average monthly rent collected for all occupied units after giving effect to tenant concessions. We do not report average effective rent per unit in the month of acquisition as it is not representative of a fullmonth of operations. Same Store weighted average effective rent per unit was $798, $795, $792, $784, and $784 for the periods presented above, respectively. Same Store is defined as properties in the portfolio as of March 31, 2013. As of or For the Three-Month Periods Ended June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 Financial Statistics: Total revenue .................................... $ 11,649 $ 8,135 $ 5,768 $ 4,787 $ 4,700 Earnings (loss) per share-diluted ........ $ (0.01) $ 0.19 $ 0.03 $ 0.03 $ 0.01 Funds from Operations (“FFO”) per share ............................................ $ 0.18 $ 0.33 $ 0.17 $ 0.17 $ 0.23 Core funds from operations (“CFFO”) per share ...................................... $ 0.19 $ 0.17 $ 0.20 $ 0.17 $ 0.23 Dividends declared per common share ............................................ $ 0.18 $ 0.18 $ 0.16 $ 0.16 $ 0.16 Total Shares Outstanding ................... 17,751,540 17,742,540 9,652,540 9,643,540 5,643,540 Apartment Property Portfolio: Reported investments in real estate at cost ........................................... $ 362,323 $ 320,437 $ 190,096 $ 166,665 $ 154,040 Net operating income ........................ $ 6,081 $ 4,147 $ 3,159 $ 2,373 $ 2,459 Number of properties owned............. 19 17 10 9 8 Multifamily units owned .................... 5,342 4,970 2,790 2,358 2,004 Portfolio weighted average occupancy ..................................... 93.1 93.9 94.6% 94.4% 94.2% Weighted average monthly effective rent per unit ............................... $ 764 $ 730 $ 765 $ 784 $ 784 (1)

• IRT seeks to acquire well-located, stable apartment properties in secondary and tertiary markets – IRT owned 19 apartment properties totaling 5,342 units in 11 states at June 30, 2014 – IRT corporate office – Philadelphia, PA Where we are? 6 (1) Figures are as of and for the three months ended June 30, 2014. Geographic Diversity (by units) (1) National Footprint (1) Apartment Property

IRT Portfolio 7 Raindance Apts Oklahoma City, Oklahoma Tresa at Arrowhead Phoenix, Arizona Augusta Apts Oklahoma City, Oklahoma Belle Creek Henderson, Colorado Invitational Apts Oklahoma City, Oklahoma Centrepoint Tucson, Arizona Heritage Park Apts Oklahoma City, Oklahoma Cumberland Glen Smyrna, Georgia Windrush Edmund, Oklahoma Crestmont Marietta, Georgia The Reserve at Eagle Ridge Waukegan, Illinois At June 30, 2014 Runaway Bay Indianapolis, Indiana Heritage Trace Newport News, Virginia Copper Mill Austin, Texas The Crossings Jackson, Mississippi Berkshire Square Indianapolis, Indiana King’s Landing Creve Coeur, Missouri Arbors at the Reservoir Ridgeland, MS Carrington Park Little Rock, AR

Stable, Geographically Diversified Portfolio 8 (1) All dates are for the year in which a significant renovation program was completed, except for Runaway Bay, King's Landing, Carrington Park and Arbors at the Reservoir, which is the year construction was completed. (2) Units represents the total number of apartment units available for rent at June 30, 2014. (3) Physical occupancy for each of our properties is calculated as (i) total units rented as of June 30, 2014 divided by (ii) total units available as of June 30, 2014, expressed as a percentage. (4) Average monthly effective rent per occupied unit represents the average monthly rent for all occupied units for the three-month period ended June 30, 2014. (5) Does not include 6,256 square feet of retail space in six units, of which 1,010 square feet of space is occupied by RAIT Residential for use as the leasing office. The remaining 5,246 square feet of space is 86% occupied by four tenants with an average monthly base rent of $1,603, or $16 per square foot per year. These five tenants engaged in the following businesses: grocery, retail and various retail services. (6) Acquired as part of the Oklahoma City Portfolio for an aggregate purchase price of $65,000. (7) Assumed as part of the Oklahoma City Portfolio and currently has an aggregate outstanding balance of $45,435. (8) We do not report average effective rent per unit in the month of acquisition as it is not representative of a full month of operations. Average effective rent during the period of acquisition for Arbors at the Reservoir was $1,064. Property Name Location Acquisition Date Purchase Price Debt Year Built or Renovated(1) Units(2) Physical Occupancy(3) Average Monthly Effective Rent per Occupied Unit(4) Belle Creek Henderson, Colorado 4/29/2011 14,100 $ 10,575 $ 2011 162 (5) 97.5% 989 $ Copper Mill Austin, Texas 4/29/2011 14,715 7,245 2010 320 97.5% 786 Crestmont Marietta, Georgia 4/29/2011 13,500 6,653 2010 228 99.1% 716 Cumberland Smyrna, Georgia 4/29/2011 13,800 6,802 2010 222 96.4% 704 Heritage Trace Newport News, Virginia 4/29/2011 11,000 5,422 2010 200 90.5% 687 Tresa Phoenix, Arizona 4/29/2011 36,675 27,500 2006 360 95.0% 821 Centrepoint Tucson, Arizona 12/16/2011 29,500 17,600 2006 320 95.9% 816 Runaway Bay Indianapolis, Indiana 10/11/2012 15,750 10,128 2002 192 95.3% 909 Berkshire Square Indianapolis, Indiana 9/19/2013 13,250 8,612 2012 354 92.1% 584 The Crossings Jackson, Mississippi 11/22/2013 23,000 15,313 2012 432 92.4% 735 Reserve at Eagle Ridge Waukegan, Illinois 1/31/2014 29,000 18,850 2008 370 94.6% 934 Augusta Oklahoma City, Oklahoma 2/28/2014 65,000 (6) 45,435 (7) 2011 197 82.2% 724 Heritage Park Oklahoma City, Oklahoma 2/28/2014 - (6) - (7) 2011 453 90.5% 619 Invitational Oklahoma City, Oklahoma 2/28/2014 - (6) - (7) 2011 344 93.0% 673 Raindance Oklahoma City, Oklahoma 2/28/2014 - (6) - (7) 2011 504 90.5% 532 Windrush Edmond, Oklahoma 2/28/2014 - (6) - (7) 2011 160 85.6% 775 King's Landing Creve Coeur, Missouri 3/31/2014 32,700 21,200 2005 152 93.5% 1,460 Carrington Park Little Rock, Arkansas 5/07/2014 21,500 - 1999 202 92.6% 1,066 Arbors at the Reservoir Ridgeland, Mississippi 6/4/2014 20,250 - 2000 170 93.5% - (8) Total/Weighted Average 353,740 $ 201,335 $ 5,342 93.1% 764 $ At June 30, 2014 ($ in thousands, except per unit data)

Disciplined Approach to Acquisitions 9 • Focus on acquiring assets in supply constrained submarkets – Secondary and tertiary markets – Sub-markets with no substantial new apartment construction – Stable resident bases and occupancy rates – Positive net migration trends – Markets with strong employment drivers • Source acquisitions through existing relationships and established channels – Existing RAIT relationships – Existing property manager relationships – Brokerage community – Off-market transactions – TIC Syndicates • Target Profile for Acquisitions – Mid-rise/garden style (150-500 units) with good amenities – Acquire at less than replacement cost in the $10 - $35M price range; with 5 to 15 year operating track record – In-place cash flow with room to grow rents – Operating efficiencies through professional property management – Well-located property with good access and favorable local work force conditions Markets Sourcing Assets 1 2 3

Property Acquisition & Pipeline Update Since 6/30/2014 10 (1) IRT cannot assure you that it will acquire this property or that any actual acquisition price will not be significantly different from what IRT currently estimates. (2) IRT has determined that no acquisitions in the pipeline are probable as of the date of this presentation. IRT cannot assure you that it will acquire any of the properties in the pipeline or that any actual acquisition price will not be significantly different from what IRT currently estimates. • Since June 30, 2014, IRT has acquired 2 properties totaling 626 units for purchase prices aggregating approximately $52.2 million - 360 units in Memphis, TN for $27.9 million - 266 units in Raleigh, NC for $24.3 million • Property under contract (1) - 500 unit property in Memphis, TN for $29.8 million (expected mid-September closing) • Additionally, IRT currently has an acquisition pipeline of approximately 2,171 units with an estimated aggregate purchase price of $229.5 million (2)

Sponsor: RAIT Financial Trust (NYSE: RAS) 11 • RAIT is a multi-strategy commercial real estate company organized as an internally-managed REIT with $5.3 billion of assets under management as of June 30, 2014 – RAIT’s IPO – January 1998 – Offices in Philadelphia, New York, Chicago, and Charlotte – Since its inception, RAIT has originated in excess of $1.8 billion of apartment loans and has owned more than $1.1 billion of apartment properties – Allows RAIT to source attractive, off-market acquisition opportunities – Provides significant competitive advantage in targeting geographically diversified portfolios • Scalable “in-house” commercial real estate platform with approximately 700 employees, including property management personnel • Seasoned executive team with extensive real estate equity and debt experience • Substantial expertise lending to, owning and managing apartment properties • Extensive networks of contacts in the apartment industry • RAIT Residential, an apartment property management company that is majority-owned by RAIT, manages over 12,500 apartments in 17 states

• RAIT is the largest stockholder in IRT with 7.3 million shares or 28.2% of IRT’s outstanding common stock at August 20, 2014 • RAIT provides management and public company services to IRT • RAIT controls entities that advise and manage IRT and its properties – Externally managed by Independence Realty Advisors, a wholly-owned subsidiary of RAIT – Properties managed by RAIT Residential, a full-service apartment property manager that is majority-owned by RAIT with approximately 300 employees • Management agreement structured to incentivize performance – No acquisition, disposition, or financing fees and no management fees on shareholder equity – No management fee on 8 properties acquired prior to August 2013; approximately $154 million of real estate – Low management fee (75 bps of gross real estate assets) on properties acquired after August 2013 – Incentive fee (20% over a Core FFO yield of 7% (annualized)) Strong Alignment of Interests Between Sponsor and Stockholders 12

Scott F. Schaeffer Management Team 13 Chairman and CEO – Independence Realty Trust, Inc. and Chairman and CEO – RAIT Financial Trust CEO and Manager – Independent Realty Advisors, LLC Over 28 year career in real estate James J. Sebra CFO and Treasurer – Independence Realty Trust, Inc. and CFO and Treasurer – RAIT Financial Trust Treasurer – Independent Realty Advisors, LLC 17 years of real estate experience Farrell M. Ender President – Independence Realty Trust, Inc. and Senior Vice President – RAIT Financial Trust President – Independent Realty Advisors, LLC Over 10 years experience in the acquisition/disposition, property management, construction management of apartment properties Raphael Licht Manager – Independent Realty Advisors, LLC and General Counsel– RAIT Financial Trust 17 years of real estate experience

Attractive Dividend 14 (1) Dividend yields based on share price as of 9/2/2014 and most recently declared quarterly dividend annualized, except for IRT, which is based on most recently declared monthly dividend annualized. Dividend Yield (1) (%)

Core FFO per Share IRT Financial Highlights 15 Revenue NOI Dividends per Share ($ in millions, except per share data) Note: Refer to slide 18 for reconciliation of Core FFO to GAAP net income (loss). (1) Represents a monthly dividend of $0.06 or $0.18 per quarter for Q1, Q2 & Q3.

Highlights 16 Strong Momentum in the Business 1 Disciplined Acquisition Strategy with Robust Pipeline 2 Strong Sponsorship and Alignment of Interest with IRT Stockholders 3 Attractive Dividend 4 5 Stable Portfolio in Supply-Constrained Markets

Appendix XXX X

Income Statement 18 At June 30, 2014 ($ in millions, except per unit data) For the Three-Month Periods Ended June 30 For the Six-Month Periods Ended June 30 2014 2013 2014 2013 REVENUE: Rental income .............................................................................. $ 10,613 $ 4,218 $ 17,966 $ 8,396 Tenant reimbursement income..................................................... 436 220 802 443 Other income ............................................................................... 600 262 1,016 549 EXPENSES: Property operating expenses ........................................................ 5,585 2,241 9,573 4,406 General and administrative expenses ........................................... 378 94 546 271 Asset Management Fees ............................................................... 501 79 647 161 Acquisition expenses .................................................................... 152 — 514 — Depreciation and amortization ..................................................... 3,232 1,063 5,355 2,099 Total expenses .................................................................... 9,848 3,477 16,635 6,937 Operating income ........................................................................ 1,801 1,223 3,149 2,451 Interest expense ........................................................................... (1,930) (899 (3,229) (1,787) Interest income ............................................................................ 1 0 5 0 Gain (loss) on assets ..................................................................... — — 2,882 — Net income (loss): ........................................................................ (128) 324 2,807 664 Income allocated to preferred shares ........................................... 0 (4 0 (8) Income (loss) allocated to noncontrolling interest ......................... 0 (272 0 (604) Net income (loss) allocable to common shares ............................ $ (128) $ 48 $ 2,807 $ 52 Earnings (loss) per share: Basic ................................................................................... $ (0.01) $ 0.01 $ 0.17 $ 0.03 Diluted ................................................................................ $ (0.01) $ 0.01 $ 0.17 $ 0.03 Weighted-average shares: Basic ................................................................................... 17,707,287 3,556,349 16,459,623 1,959,998 Diluted ................................................................................ 17,707,287 3,556,349 16,484,357 1,959,998

Balance Sheet 19 At June 30, 2014 ($ in millions, except per unit data) As of June 30, 2014 As of December 31, 2013 ASSETS: Investments in real estate: Investments in real estate at cost ................................................................................................ $ 362,323 $ 190,096 Accumulated depreciation ........................................................................................................... (18,804) (15,775) Investments in real estate, net ..................................................................................................... 343,519 174,321 Cash and cash equivalents .................................................................................................................... 8,054 3,334 Restricted cash ..................................................................................................................................... 2,698 1,122 Accounts receivable and other assets.................................................................................................... 2,682 1,731 Intangible assets, net of accumulated amortization of $2,513 and $569, respectively ............................ 1,126 517 Deferred costs, net of accumulated amortization of $293 and $151, respectively .................................. 1,568 846 Total Assets .......................................................................................................................................... $ 359,647 $ 181,871 LIABILITIES AND EQUITY: Indebtedness ........................................................................................................................................ $ 215,628 $ 103,303 Accounts payable and accrued expenses ............................................................................................... 5,725 2,374 Accrued interest payable ...................................................................................................................... 30 63 Dividends payable ................................................................................................................................ 1,076 515 Other liabilities ..................................................................................................................................... 946 708 Total Liabilities...................................................................................................................................... 223,405 106,963 Equity: Stockholders’ equity: ................................................................................................................... Preferred stock, $0.01 par value; 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively ............................................................................................... — — Common stock, $0.01 par value; 300,000,000 shares authorized, 17,751,540 and 9,652,540 shares issued and outstanding, including 40,000 unvested restricted common share awards, as of June 30, 2014 .................................................................... 177 96 Additional paid-in capital .................................................................................................... 140,973 78,112 Retained earnings (accumulated deficit) ............................................................................. (6,867) (3,300) Total shareholders’ equity .................................................................................................. 134,283 74,908 Noncontrolling interests .............................................................................................................. 1,959 — Total Equity .......................................................................................................................................... 136,242 74,908 Total Liabilities and Equity .................................................................................................................... $ 359,647 $ 181,871

Mortgage Indebtedness 20 At June 30, 2014 ($ in millions, except per unit data) Outstanding Principal Carrying Amount Effective Interest Rate Maturity Date Belle Creek Apartments…….. $ 10,575 $ 10,575 2.4%(1) April 28, 2021 Berkshire Square Apartments .. 8,612 8,612 4.4%(2) January 1, 2021 Centrepoint Apartments .......... 17,600 17,600 3.7%(3) January 1, 2019 Copper Mill Apartments ........... 7,245 7,245 5.7% May 1, 2021 Crestmont Apartments ............. 6,653 6,653 5.7% May 1, 2021 Cumberland Glen Apartments .. 6,802 6,802 5.7% May 1, 2021 Heritage Trace Apartments ...... 5,422 5,422 5.7% May 1, 2021 Runaway Bay Apartments ........ 10,128 10,128 3.6% November 1, 2022 Tresa at Arrowhead .................. 27,500 27,500 2.4%(1) April 28, 2021 Reserve at Eagle Ridge ............. 18,850 18,850 4.7% March 1, 2024 OKC Portfolio ............................ 45,435 47,578 2.8%(4) April 1, 2016 Kings’ Landing ........................... 21,200 21,200 4.0%(5) June 1, 2021 Crossings ................................... 15,313 15,313 3.9%(5) June 1, 2024 Total mortgage debt/ Weighted-Average............... $ 201,335 $ 203,478 3.7% Secured Credit Facility .............. 12,150 12,150 2.9%(6) October 25, 2016 Total indebtedness /Weighted- Average ............................... $ 213,485 $ 215,628 3.6%

Non-GAAP Financial Measures: FFO and CFFO (1) 21