irt-ex992_57.htm

Exhibit 99.2

TABLE OF CONTENTS

Company Information		3

Forward-Looking Statements		4

Earnings Release Text		5

Financial Highlights		9

Balance Sheets		10

Statements of Operations, FFO & CORE FFO
Trailing 5 Quarters		11
Three Months Ended March 31, 2016		12

Adjusted EBITDA Reconciliations
Trailing 5 Quarters		13
Three Months Ended March 31, 2016		13

Same-Store Portfolio Net Operating Income
Trailing 5 Quarters		14
Three Months Ended March 31, 2016		15

Net Operating Income Bridge		16

Debt and Capitalization Overview		17

Property Summary		18

NOI Exposure by Market		19

Definitions		20

Independence Realty Trust

March 31, 2016

Company Information:

Independence Realty Trust, Inc. (NYSE MKT: IRT) is a real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates. IRT seeks to provide stockholders with attractive risk-adjusted returns, with an emphasis on distributions and capital appreciation. IRT is externally advised by a wholly-owned subsidiary of RAIT Financial Trust (NYSE: RAS).

Corporate Headquarters		Two Logan Square
		100 N. 18^th Street, 23^rd Floor
		Philadelphia, Pa 19103
		215.207.2100

Trading Symbol		NYSE MKT: “IRT”

Investor Relations Contact		Andres Viroslav
		Two Logan Square
		100 N. 18^th Street, 23^rd Floor
		Philadelphia, Pa 19103
		215.207.2100

	For the Three Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Common Shares & Units:
Share Price, period end	$	7.12		$	7.51		$	7.21		$	7.53		$	9.49
Share Price, high	$	7.78		$	8.13		$	8.57		$	9.65		$	9.78
Share Price, low	$	5.97		$	6.88		$	6.95		$	7.45		$	9.07
Dividends declared	$	0.18		$	0.18		$	0.18		$	0.18		$	0.18
Dividend yield, period end		10.1	%		9.6	%		10.0	%		9.6	%		7.6	%

Forward-Looking Statements

This supplemental information may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," “trend”, "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," “seek,” “outlook,” “project,” “guidance” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. 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. These risks, uncertainties and contingencies include, but are not limited to, those disclosed in IRT’s filings with the Securities and Exchange Commission. IRT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

Independence Realty Trust Announces First Quarter 2016 Financial Results

PHILADELPHIA, PA — May 4, 2016 — Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT) today announced its first quarter 2016 financial results. All per share results are reported on a diluted basis.

Results for the Quarter

Core Funds from Operations (“CFFO”) per share increased 11% to $0.21 for the quarter ended March 31, 2016 from $0.19 for the quarter ended March 31, 2015.

Earnings per share (“EPS”) was $(0.00) for the quarter ended March 31, 2016 as compared to $(0.01) for the quarter ended March 31, 2015.

Earnings before interest, taxes, depreciation and amortization and before acquisition expenses (“Adjusted EBITDA”), increased 90.9% to $18.9 million for the quarter ended March 31, 2016 from $9.9 million for the quarter ended March 31, 2015.

Property Sales and Refinancing Activity

On February 18, 2016, IRT sold a 222 unit apartment property located in Atlanta, Georgia for $18.0 million. IRT received net cash proceeds of approximately $9.7 million, after transaction costs and full repayment of the debt underlying the property.

On April 7, 2016, IRT sold a 162 unit apartment property located in Denver, Colorado for $23.0 million. IRT received net cash proceeds of approximately $11.6 million, after transaction costs and full repayment of the debt underlying the property.

On March 29, 2016, IRT refinanced the $43.9 million first mortgage on its Oklahoma City portfolio, which had a maturity date in April 2016, with a loan made pursuant to IRT’s secured credit facility.

Scott Schaeffer, IRT’s Chairman and CEO said, “During the quarter, we continued executing on our previously announced strategy of maximizing the operating performance of the portfolio while selling non-core apartment communities to reduce leverage. We’ve sold two communities so far this year and expect to close on a third sale during the second quarter. We are also in the process of refinancing three communities which are currently on our credit facility with long-term, fixed rate mortgages.”

Same-Store Property Operating Results


	First Quarter 2016 Compared to First Quarter 2015⁽¹⁾
Rental income	3.1% increase
Total revenues	3.5% increase
Property level operating expenses	3.3% increase
Net operating income (“NOI”)	3.7% increase
Portfolio average occupancy	93.3%, no change
Portfolio average rental rate	3.4% increase to $856
NOI Margin	0.1% increase to 53.4%

⁽¹⁾

Same store portfolio for the three months ended March 31, 2016 and 2015 consists of 28 properties with 8,277 apartment units.

Capital Expenditures

For the three months ended March 31, 2016, our recurring capital expenditures for the total portfolio was $1.6 million, or $117 per unit.

2016 CFFO Guidance

IRT reaffirms its estimate and underlying assumptions that 2016 full year CFFO per diluted share will be in a range of $0.82-$0.88 per common share. A reconciliation of IRT's projected net income (loss) allocable to common shares to its projected CFFO, a non-GAAP financial measure, is included below. Also included below are the primary assumptions underlying this estimate. See Schedule II to this release for further information regarding how IRT calculates CFFO and Schedule V to this release for management’s definition and rationale for the usefulness of CFFO.



2016 Full Year CFFO Guidance ⁽¹⁾	Low		High
Net income (loss) available to common shares	$0.34	-	$0.39

Adjustments:
Depreciation and amortization	0.95	-	0.95
Gains on asset sales	(0.56)	-	(0.56)
Share base compensation	0.02	-	0.03
Amortization of deferred financing fees	0.07	-	0.07
CORE FFO per diluted share allocated to common shareholders	$0.82	-	$0.88

(1)

This guidance, including the underlying assumptions, constitutes forward-looking information. Actual full 2016 CFFO could vary significantly from the projections presented. Our estimate is based on the following key operating assumptions:

(a)

For 2016, a same store pool of 26 properties totaling 7,755 units. For purposes of this guidance, the same store pool reflects properties which have been or are expected to be sold subsequent to March 31, 2016 as discussed in (e) below.

(b)

Same store NOI growth of 4.5% to 5.5%, driven by revenue growth of 4% to 5% and property operating expense growth of 2% to 3%.

(c)

The portfolio of properties acquired from TSRE, which is not included in the same store pool, experiences NOI growth of 6% to 7%, driven by revenue growth of 4% to 5% and an improved operating margin of 56%, up from 54% in 2015. The improved operating margin is driven through reduced operating expenses for property insurance.

(d)

No property acquisitions in 2016.

(e)

Reflects the completion of the sale of Cumberland Glen in February 2016 for $18 million and the sale of Belle Creek in April 2016 for $23 million and assumes the completion of the sale of Tresa at Arrowhead in May 2016 for $47 million. Assumes substantially all net cash proceeds from the sales of these assets are used to repay the KeyBank interim facility.

(f)

General and administrative expenses of approximately $1.25 million to $1.75 million.

Selected Financial Information

See Schedule I to this Release for selected financial information for IRT.

Non-GAAP Financial Measures and Definitions

IRT discloses the following non-GAAP financial measures in this release: funds from operations (“FFO”), CFFO, Adjusted EBITDA and NOI. A reconciliation of IRT’s reported net income (loss) to its FFO and CFFO is included as Schedule II to this release. A reconciliation of IRT’s same store NOI to its reported net income (loss) is included as Schedule III to this release. A reconciliation of IRT’s Adjusted EBITDA, to net income (loss) is included as Schedule IV to this release. See Schedule V to this release for management’s respective definitions and rationales for the usefulness of each of these non-GAAP financial measures and other definitions used in this release.

Distributions

On April 14, 2016, IRT’s Board of Directors declared monthly cash dividends for the second quarter of 2016 on IRT’s shares of common stock in the amount of $0.06 per share per month. The monthly dividends total $0.18 per share for the second quarter. The month for which each dividend was declared is set forth below, with the relevant amount per share, record date and payment date set forth opposite the month:

Month

Amount

Record Date

Payment Date

April 2016

$0.06

04/29/2016

05/16/2016

May 2016

$0.06

05/31/2016

06/15/2016

June 2016

$0.06

06/30/2016

07/15/2016

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Wednesday, May 4, 2016 from the investor relations section of the IRT website at www.irtreit.com or by dialing 1.877.787.3988, access code 91313256. For those who are not available to listen to the live call, the replay will be available shortly following the live call on IRT’s website and telephonically until Wednesday, May 11, 2016, by dialing 855.859.2056, access code 91313256.

Supplemental Information

IRT produces supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store information and other useful information for investors. The supplemental information is available via the Company's website, www.irtreit.com, through the "Investor Relations" section.

About Independence Realty Trust, Inc.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," “trend”, "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," “seek,” “outlook,” “in the process,” “assumption,” “project,” “guidance” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. 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. These risks, uncertainties and contingencies include, but are not limited to, whether IRT will be able to refinance properties currently financed under its secured credit facility with long-term, fixed rate mortgages; whether IRT can maintain its assumed same store pool in 2016; whether it can achieve projected same store NOI growth and revenue growth and limit projected property operating expense growth; whether the TSRE portfolio of properties achieves projected NOI growth, revenue growth, improved operating margins and reduced operating expenses for property

insurance; whether IRT will not make any property acquisitions in 2016; whether the sale of Tresa at Arrowhead can be completed at the expected time on the projected terms generating the expected net cash proceeds; whether substantially all net proceeds from such sales will be available to be used to repay the KeyBank interim facility; whether general and administrative expenses can be limited to projected levels; and those disclosed in IRT’s filings with the Securities and Exchange Commission. IRT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

Independence Realty Trust, Inc. Contact

Andres Viroslav

215.207.2100

aviroslav@irtreit.com

HIGHLIGHTS

	For the Three-Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015				June 30, 2015			March 31, 2015
Selected Financial Information:
Operating Statistics:
Total revenue	$	38,666		$	39,709		$	25,492			$	22,718		$	21,657
Total property operating expenses	$	17,120		$	17,398		$	11,945			$	10,517		$	10,095
Net operating income	$	21,546		$	22,311		$	13,547			$	12,201		$	11,562
NOI margin		55.7	%		56.2	%		53.1	%			53.7	%		53.4	%
Adjusted EBITDA	$	18,924		$	19,720		$	11,742			$	10,518		$	9,851
Net income available to common shares	$	(75	)	$	4,123		$	24,015			$	337		$	(233	)
Earnings (loss) per share -- diluted	$	-		$	0.09		$	0.71			$	0.01		$	(0.01	)
FFO per share -- diluted	$	0.18		$	0.19		$	0.86			$	0.18		$	0.18
CORE FFO per share -- diluted	$	0.21		$	0.22		$	0.20			$	0.19		$	0.19
Dividends per share	$	0.18		$	0.18		$	0.18			$	0.18		$	0.18
CORE FFO payout ratio		85.7	%		81.8	%		90.0	%			94.7	%		94.7	%
Portfolio Data:
Total gross assets (total assets plus accumulated depreciation)	$	1,389,072		$	1,422,826		$	1,437,858			$	751,355		$	718,339
Total number of properties		48			49			50				31			30
Total units		13,502			13,724			14,044				9,055			8,819
Total portfolio average occupancy		93.5	%		93.6	%		94.0	%			93.6	%		93.5	%
Total portfolio average effective monthly rent, per unit	$	952		$	947		$	949			$	840		$	827
Same store portfolio average occupancy (a)		93.3	%		92.7	%		93.6	%			93.7	%		93.3	%
Same store portfolio average effective monthly rent, per unit (a)	$	856		$	852		$	846			$	839		$	828
Capitalization:
Total debt	$	940,336		$	966,611		$	983,207			$	454,210		$	419,659
Common share price, period end	$	7.12		$	7.51		$	7.21			$	7.53		$	9.49
Market equity capitalization	$	358,913		$	377,194		$	362,127			$	249,915		$	314,852
Total market capitalization	$	1,299,249		$	1,343,805		$	1,345,334			$	704,125		$	734,511
Total debt/total gross assets		67.7	%		67.9	%		68.4	%			60.5	%		58.4	%
Net debt (b) to adjusted EBITDA		12.1	x		11.8	x		12.2	x	(c)		10.3	x		10.2	x
Interest coverage		1.9	x		1.9	x		2.1	x	(c)		2.5	x		2.4	x
Common shares and OP Units:
Shares outstanding		47,458,250			47,070,678			47,070,678				31,933,218			31,894,751
OP units outstanding		2,950,816			3,154,936			3,154,936				1,255,983			1,282,450
Common shares and OP units outstanding		50,409,066			50,225,614			50,225,614				33,189,201			33,177,201
Weighted average common shares and units		50,113,693			50,101,609			35,472,807				33,066,770			31,768,468

(a)	Same store portfolio includes 28 properties which represents 8,277 units.

(b)	Net debt equals total debt less cash and cash equivalents.

(c)	Annualized assuming the TSRE merger which closed September 17, 2015 occurred at the beginning of the period.

BALANCE SHEETS

Dollars in thousands, except per share data

	As of
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Assets
Investments in real estate at cost	$	1,357,338		$	1,372,015		$	1,400,892		$	716,581		$	689,867
Less: accumulated depreciation		(44,422	)		(39,638	)		(35,304	)		(31,188	)		(27,261	)
Investments in real estate, net		1,312,916			1,332,377			1,365,588			685,393			662,606
Cash and cash equivalents		21,924			38,301			16,939			21,568			19,084
Restricted cash		7,015			5,413			7,330			6,335			6,228
Accounts receivable and other assets		2,795			3,362			5,153			6,689			1,818
Intangible assets, net		-			3,735			7,544			182			1,342
Total assets	$	1,344,650		$	1,383,188		$	1,402,554		$	720,167		$	691,078
Liabilities and Equity
Total indebtedness	$	940,336		$	966,611		$	983,207		$	454,210		$	419,659
Accounts payable and accrued expenses		16,089			19,304			18,724			10,922			10,691
Accrued interest payable		1,175			1,239			558			30			31
Dividends payable		3,007			3,006			2,427			1,982			1,982
Other liabilities		3,071			2,998			3,183			1,893			1,860
Total liabilities		963,678			993,158			1,008,099			469,037			434,223
Equity
Shareholders' Equity:
Preferred shares, $0.01 par value per share		—			—			—			—			—
Common shares, $0.01 par value per share		475			471			471			318			318
Additional paid in capital		380,152			378,187			377,989			267,566			267,695
Accumulated other comprehensive income (loss)		(26	)		(8	)		5			—			—
Retained earnings (deficit)		(23,094	)		(14,500	)		(10,174	)		(28,065	)		(22,680	)
Total shareholders' equity		357,507			364,150			368,291			239,819			245,333
Noncontrolling Interests		23,465			25,880			26,164			11,311			11,522
Total equity		380,972			390,030			394,455			251,130			256,855
Total liabilities and equity	$	1,344,650		$	1,383,188		$	1,402,554		$	720,167		$	691,078

STATEMENTS OF OPERATIONS, FFO & CORE FFO

TRAILING 5 QUARTERS

Dollars in thousands, except per share data

	For the Three-Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Revenue:
Rental income	$	34,753		$	35,747		$	22,758		$	20,268		$	19,443
Reimbursement and other income		3,913			3,962			2,734			2,450			2,214
Total revenue		38,666			39,709			25,492			22,718			21,657
Expenses:
Real estate operating expenses		17,120			17,398			11,945			10,517			10,095
General and administrative expenses		926			709			546			423			499
Asset management fees - Base		1,631			1,690			1,259			1,046			1,001
Asset management fees - Incentive		65			192			-			214			211
Acquisition and integration expenses		10			524			12,830			168			33
Depreciation and amortization expense		11,527			11,632			4,704			5,720			6,038
Total expenses		31,279			32,145			31,284			18,088			17,877
Operating Income (loss)		7,387			7,564			(5,792	)		4,630			3,780
Interest expense		(9,977	)		(10,160	)		(5,094	)		(4,277	)		(4,022	)
Interest income		—			—			18			—			1
Net gains (losses) on sale of assets		2,453			6,412			—			—			—
TSRE financing extinguishment and employee separation expenses		—			—			(27,508	)		—			—
Gains (losses) on TSRE merger and property acquisitions		91			592			64,012			—			—
Net income (loss)		(46	)		4,408			25,636			353			(241	)
(Income) loss allocated to noncontrolling interests		(29	)		(285	)		(1,621	)		(16	)		8
Net income (loss) available to common shares	$	(75	)	$	4,123		$	24,015		$	337		$	(233	)
EPS - basic	$	-		$	0.09		$	0.71		$	0.01		$	(0.01	)
Weighted-average shares outstanding - Basic		47,093,343			46,946,678			33,962,015			31,794,822			31,768,468
EPS - diluted	$	-		$	0.09		$	0.71		$	0.01		$	(0.01	)
Weighted-average shares outstanding - Diluted		47,093,343			46,966,605			33,962,015			33,066,770			31,768,468
Funds From Operations (FFO):
Net Income (loss)	$	(46	)	$	4,408		$	25,636		$	353		$	(241	)
Add-Back (Deduct):
Depreciation		11,527			11,632			4,704			5,720			6,038
Net (gains) losses on sale of assets		(2,453	)		(6,412	)		—			—			—
FFO	$	9,028		$	9,628		$	30,340		$	6,073		$	5,797
FFO per share--diluted	$	0.18		$	0.19		$	0.86		$	0.18		$	0.18
CORE Funds From Operations (CFFO):
FFO	$	9,028		$	9,628		$	30,340		$	6,073		$	5,797
Add-Back (Deduct):
Equity based compensation		205			198			217			10			70
Amortization of deferred financing costs		1,197			1,034			151			150			147
Acquisition and integration expenses		10			524			12,830			168			33
TSRE financing extinguishment and employee separation expenses		—			—			27,508			—			—
(Gains) losses on TSRE merger and property acquisitions		(91	)		(592	)		(64,012	)		—			—
CFFO	$	10,349		$	10,792		$	7,034		$	6,401		$	6,047
CFFO per share--diluted	$	0.21		$	0.22		$	0.20		$	0.19		$	0.19
Weighted-average shares and units outstanding		50,113,693			50,101,609			35,472,807			33,066,770			31,768,468

STATEMENTS OF OPERATIONS, FFO & CORE FFO

THREE MONTHS ENDED MARCH 31, 2016

Dollars in thousands, except per share data

	Three Months-Ended March 31,
	2016			2015			$ Variance			% Variance
Revenue:
Rental income	$	34,753		$	19,443		$	15,310			79	%
Reimbursement and other income		3,913			2,214			1,699			77	%
Total revenue		38,666			21,657			17,009			79	%
Expenses:
Real estate operating expenses		17,120			10,095			7,025			70	%
General and administrative expenses		926			499			427			86	%
Asset management fees - Base		1,631			1,001			630			63	%
Asset management fees - Incentive		65			211			(146	)		-69	%
Acquisition and integration expenses		10			33			(23	)		-70	%
Depreciation and amortization expense		11,527			6,038			5,489			91	%
Total expenses		31,279			17,877			13,402			75	%
Operating Income (loss)		7,387			3,780			3,607			95	%
Interest expense		(9,977	)		(4,022	)		(5,955	)		148	%
Interest income		—			1			(1	)		-100	%
Net gains (losses) on sale of assets		2,453			—			2,453		N/M
Gains (losses) on TSRE merger and property acquisitions		91			—			91		N/M
Net income (loss)		(46	)		(241	)		195			-81	%
(Income) loss allocated to noncontrolling interests		(29	)		8			(37	)		-463	%
Net income (loss) available to common shares	$	(75	)	$	(233	)	$	158			-68	%
EPS - basic	$	-		$	(0.01	)	$	0.01			-100	%
Weighted-average shares outstanding - Basic		47,093,343			31,768,468
EPS - diluted	$	-		$	(0.01	)	$	0.01			-100	%
Weighted-average shares outstanding - Diluted		47,093,343			31,768,468

Funds From Operations:
Net Income (loss)	$	(46	)	$	(241	)	$	195			-81	%
Adjustments:
Real estate depreciation and amortization		11,527			6,038			5,489			91	%
Net (gains) losses on sale of assets		(2,453	)		—			(2,453	)	N/M
Funds From Operations	$	9,028		$	5,797		$	3,231			56	%
FFO per share--diluted	$	0.18		$	0.18			(0.00	)		-1	%
Core Funds From Operations:
Funds From Operations	$	9,028		$	5,797		$	3,231			56	%
Adjustments:
Equity based compensation		205			70			135			193	%
Amortization of deferred financing costs		1,197			147			1,050			714	%
Acquisition and integration expenses		10			33			(23	)		-70	%
(Gains) losses on TSRE merger and property acquisitions		(91	)		—			(91	)	N/M
Core Funds From Operations	$	10,349		$	6,047		$	4,302			71	%
CFFO per share--diluted	$	0.21		$	0.19		$	0.02			11	%
Weighted-average shares and units outstanding		50,113,693			31,768,468

ADJUSTED EBITDA RECONCILIATIONS

Dollars in thousands, except per share data

	Three-Months Ended
	March 31,
	2016			2015
Net income (loss)	$	(46	)	$	(241	)
Add-Back (Deduct):
Depreciation and amortization		11,527			6,038
Interest expense		9,977			4,022
Interest Income		—			(1	)
Acquisition and integration expenses		10			33
Net (gains) losses on sale of assets		(2,453	)		—
(Gains) losses on TSRE merger and property acquisitions		(91	)		—
Adjusted EBITDA	$	18,924		$	9,851

	For the Three-Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015		March 31, 2015
Net income (loss)	$	(46	)	$	4,408		$	25,636		$	353	$	(241	)
Add-Back (Deduct):
Depreciation and amortization		11,527			11,632			4,704			5,720		6,038
Interest expense		9,977			10,160			5,094			4,277		4,022
Interest Income		—			—			(18	)		—		(1	)
Acquisition and integration expenses		10			524			12,830			168		33
Net (gains) losses on sale of assets		(2,453	)		(6,412	)		—			—		—
TSRE financing extinguishment and employee separation expenses		—			—			27,508			—		—
(Gains) losses on TSRE merger and property acquisitions		(91	)		(592	)		(64,012	)		—		—
Adjusted EBITDA	$	18,924		$	19,720		$	11,742		$	10,518	$	9,851

SAME STORE PORTFOLIO NET OPERATING INCOME

TRAILING 5 QUARTERS

Dollars in thousands, except per share data

	For the Three-Months Ended (a)
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Revenue:
Rental income	$	18,839		$	18,738		$	18,723		$	18,551		$	18,269
Reimbursement and other income		2,208			2,178			2,225			2,266			2,070
Total revenue		21,047			20,916			20,948			20,817			20,339
Operating Expenses:
Real estate taxes		2,340			2,460			2,349			2,189			2,275
Property insurance		590			595			570			586			566
Personnel expenses		2,233			2,299			2,348			2,203			2,079
Utilities		1,663			1,481			1,648			1,487			1,721
Repairs and maintenance		763			831			1,006			975			660
Management fees		729			722			717			702			702
Contract services		623			622			620			611			622
Advertising expenses		269			268			282			286			295
Other expenses		602			607			640			715			582
Total operating expenses		9,812			9,885			10,180			9,754			9,502
Net operating income	$	11,235		$	11,031		$	10,768		$	11,063		$	10,837
NOI Margin		53.4	%		52.7	%		51.4	%		53.1	%		53.3	%
Average Occupancy		93.3	%		92.7	%		93.6	%		93.7	%		93.3	%
Average effective monthly rent, per unit	$	856		$	852		$	846		$	839		$	828
Reconciliation of Same-Store Net Operating Income to Net Income (loss)
Same-store net operating income (a)	$	11,235		$	11,031		$	10,768		$	11,063		$	10,837
Non same-store net operating income		10,311			11,280			2,779			1,138			725
Asset management fees		(1,696	)		(1,882	)		(1,259	)		(1,260	)		(1,212	)
General and administrative expenses		(926	)		(709	)		(546	)		(423	)		(499	)
Acquisition and integration expenses		(10	)		(524	)		(12,830	)		(168	)		(33	)
Depreciation and amortization		(11,527	)		(11,632	)		(4,704	)		(5,720	)		(6,038	)
Interest expense		(9,977	)		(10,160	)		(5,094	)		(4,277	)		(4,022	)
Interest income		—			—			18			—			1
Net gains (losses) on sale of assets		2,453			6,412			—			—			—
TSRE financing extinguishment and employee separation expenses		—			—			(27,508	)		—			—
Gains (losses) on TSRE merger and property acquisitions		91			592			64,012			—			—
Net income (loss)	$	(46	)	$	4,408		$	25,636		$	353		$	(241	)

(a)	Same store portfolio includes 28 properties which represents 8,277 units.

SAME STORE PORTFOLIO NET OPERATING INCOME

THREE MONTHS ENDED MARCH 31, 2016

Dollars in thousands, except per share data

	Three-Months Ended March 31 (a)
	2016			2015			% change
Revenue:
Rental income	$	18,839		$	18,269			3.1	%
Reimbursement and other income		2,208			2,070			6.7	%
Total revenue		21,047			20,339			3.5	%
Operating Expenses:
Real estate taxes		2,340			2,275			2.9	%
Property insurance		590			566			4.2	%
Personnel expenses		2,233			2,079			7.4	%
Utilities		1,663			1,721			-3.4	%
Repairs and maintenance		763			660			15.6	%
Management fees		729			702			3.8	%
Contract services		623			622			0.2	%
Advertising expenses		269			295			-8.8	%
Other expenses		602			582			3.4	%
Total operating expenses		9,812			9,502			3.3	%
Net operating income	$	11,235		$	10,837			3.7	%
NOI Margin		53.4	%		53.3	%		0.4	%
Average Occupancy		93.3	%		93.3	%		0.0	%
Average effective monthly rent, per unit	$	856		$	828			3.4	%
Reconciliation of Same-Store Net Operating Income to Net Income (loss)
Same-store portfolio net operating income (a) (b)	$	11,235		$	10,837
Non same-store net operating income		10,311			725
Asset management fees		(1,696	)		(1,212	)
General and administrative expenses		(926	)		(499	)
Acquisition and integration expenses		(10	)		(33	)
Depreciation and amortization		(11,527	)		(6,038	)
Interest expense		(9,977	)		(4,022	)
Interest income		—			1
Net gains (losses) on sale of assets		2,453			—
Gains (losses) on TSRE merger and property acquisitions		91			—
Net income (loss)	$	(46	)	$	(241	)

(a)	Same store portfolio for the three months ended March 31, 2016 and 2015 includes 28 properties which represents 8,277 units.

NET OPERATING INCOME (NOI) BRIDGE

Dollars in thousands, except per share data

	For the Three-Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Property revenue
Same store (a)	$	21,047		$	20,916		$	20,948		$	20,817		$	20,339
Non same store		17,619			18,793			4,544			1,901			1,318
Total property revenue		38,666			39,709			25,492			22,718			21,657
Property expenses
Same store (a)		9,812			9,885			10,180			9,754			9,502
Non same store		7,308			7,513			1,765			763			593
Total property expenses		17,120			17,398			11,945			10,517			10,095
Net operating income
Same store (a)		11,235			11,031			10,768			11,063			10,837
Non same store		10,311			11,280			2,779			1,138			725
Total property net operating income	$	21,546		$	22,311		$	13,547		$	12,201		$	11,562
Reconciliation of NOI to GAAP net income (loss)
Total property net operating income	$	21,546		$	22,311		$	13,547		$	12,201		$	11,562
General and administrative expense		(926	)		(709	)		(546	)		(423	)		(499	)
Asset management fees - base		(1,631	)		(1,690	)		(1,259	)		(1,046	)		(1,001	)
Asset management fees - incentive		(65	)		(192	)		—			(214	)		(211	)
Acquisition and integration expenses		(10	)		(524	)		(12,830	)		(168	)		(33	)
Depreciation and amortization expense		(11,527	)		(11,632	)		(4,704	)		(5,720	)		(6,038	)
Interest expense		(9,977	)		(10,160	)		(5,094	)		(4,277	)		(4,022	)
Interest income		—			-			18			—			1
Net gains (losses) on sale of assets		2,453			6,412
TSRE financing extinguishment and employee separation expenses		—			-			(27,508	)		—			—
Gains (losses) on TSRE merger and property acquisitions		91			592			64,012			—			—
Net income (loss)	$	(46	)	$	4,408		$	25,636		$	353		$	(241	)

(a)	Same store portfolio includes 28 properties which represents 8,277 units.

Debt Summary

(Unaudited, in thousands except shares and per share data)

	Amount			Rate			Type		Weighted Average Maturity (in years)
Debt:
Credit facility (a)	$	324,977			2.9	%	Floating	(b)		2.5
Bridge term loan (d)		90,216			5.4	%	Floating	(b)		1.0	(c)
Mortgages-Fixed rate		495,253			3.8	%	Fixed			7.3
Mortgages-Floating rate		38,075			2.8	%	Floating			5.2
Unamortized deferred costs		(8,185	)
Total Debt		940,336			3.6	%				5.0
Market Equity Capitalization, at period end		358,913
Total Capitalization	$	1,299,249

(a)	Credit facility total capacity is $325.0 million, of which $325.0 million was drawn as of March 31, 2016.

(b)	As of March 31, 2016, IRT maintained an interest rate cap, which caps 1-month LIBOR at 3.0% on $200 million in notional. This agreement has a maturity date of October 17, 2017.

(c)	Includes the initial 6 month extension included in the bridge term loan.

(d)	As of May 4, 2016, the Bridge term loan had an unpaid principal balance of $78.6 million.

Property Summary

(Unaudited, in thousands except shares and per share data)

					Investments in Real Estate
Property Name	Location	Acquisition Date	Year Built / Renovated ^(a)		Gross Cost		Accumulated Depreciation			Net Book Value		Units ^(b)		Period End Occupancy ^(c)			Average Occupancy ^(d)			Average Effective Rent per Occupied Unit^(e)
Belle Creek	Henderson, CO	4/29/2011		2011	$	10,016	$	(1,703	)	$	8,313	162			96.9	%		96.5	%	$	1,178
Copper Mill	Austin, TX	4/29/2011		2010		18,195		(3,305	)		14,890	320			97.2	%		97.2	%		937
Crestmont	Marietta, GA	4/29/2011		2010 (f)		16,832		(2,987	)		13,845	228			89.0	%		81.1	%		790
Heritage Trace	Newport News, VA	4/29/2011		2010		14,158		(2,615	)		11,543	200			97.5	%		96.7	%		706
Tresa	Phoenix, AZ	4/29/2011		2006		36,330		(5,295	)		31,035	360			98.6	%		98.4	%		884
Runaway Bay	Indianapolis, IN	10/11/2012		2002		15,912		(1,218	)		14,694	192			95.8	%		96.2	%		964
Berkshire Square	Indianapolis, IN	9/19/2013		2012		13,475		(734	)		12,741	354			94.1	%		92.6	%		627
The Crossings	Jackson, MS	11/22/2013		2012		23,145		(1,149	)		21,996	432			91.4	%		89.6	%		780
Reserve at Eagle Ridge	Waukegan, IL	1/31/2014		2008		28,848		(1,284	)		27,564	370			96.8	%		95.6	%		977
Windrush	Edmond, OK	2/28/2014		2011		9,306		(419	)		8,887	160			91.3	%		90.0	%		792
Heritage Park	Oklahoma City, OK	2/28/2014	2011 (f)			17,112		(721	)		16,391	453			91.0	%		89.5	%		661
Raindance	Oklahoma City, OK	2/28/2014		2011		14,026		(605	)		13,421	504			92.7	%		94.6	%		559
Augusta	Oklahoma City, OK	2/28/2014		2011		11,494		(567	)		10,927	197			93.4	%		94.6	%		732
Invitational	Oklahoma City, OK	2/28/2014		2011		19,212		(958	)		18,254	344			92.7	%		92.0	%		665
King's Landing	Creve Coeur, MO	3/31/2014		2005		32,538		(1,508	)		31,030	152			91.5	%		92.3	%		1,481
Carrington Park	Little Rock, AR	5/7/2014		1999		21,711		(967	)		20,744	202			95.5	%		93.4	%		1,012
Arbors at the Reservoir	Ridgeland, MS	6/4/2014		2000		20,586		(819	)		19,767	170			91.8	%		92.9	%		1,092
Walnut Hill	Cordova, TN	8/28/2014		2001		27,941		(1,067	)		26,874	360			92.5	%		92.8	%		920
Lenoxplace	Raleigh, NC	9/5/2014		2012		24,268		(821	)		23,447	268			96.3	%		95.6	%		866
Stonebridge Crossing	Cordova, TN	9/15/2014		1994		29,834		(1,039	)		28,795	500			95.0	%		91.4	%		760
Bennington Pond	Groveport, OH	11/24/2014		2000		17,588		(527	)		17,061	240			94.6	%		95.0	%		838
Prospect Park	Louisville, KY	12/8/2014		1990		14,124		(359	)		13,765	138			97.1	%		95.4	%		904
Brookside	Louisville, KY	12/8/2014		1987		20,853		(539	)		20,314	224			97.8	%		96.6	%		799
Jamestown	Louisville, KY	12/8/2014	1970 (f)			35,260		(908	)		34,352	355			91.6	%		90.4	%		1,015
Meadows	Louisville, KY	12/8/2014		1988		37,706		(977	)		36,729	400			96.0	%		95.7	%		803
Oxmoor	Louisville, KY	12/8/2014	1999-2000 (f)			55,017		(1,505	)		53,512	432			93.3	%		91.2	%		975
Stonebridge at the Ranch	Little Rock, AR	12/16/2014		2005		31,397		(883	)		30,514	260			91.2	%		93.3	%		925
Iron Rock Ranch	Austin, TX	12/30/2014	2001-2002			35,075		(936	)		34,139	300			96.3	%		95.3	%		1,210
Bayview Club	Indianapolis, IN	5/1/2015		2004		25,381		(497	)		24,884	236			95.3	%		93.5	%		930
Arbors River Oaks	Memphis, TN	9/17/2015	1990 (f)			21,253		(242	)		21,011	191			95.3	%		94.4	%		1,137
Aston	Wake Forest, NC	9/17/2015		2013		37,796		(429	)		37,367	288			96.9	%		93.5	%		1,018
Avenues at Craig Ranch	McKinneuy, TX	9/17/2015		2013		47,579		(527	)		47,052	334			92.8	%		90.8	%		1,228
Bridge Pointe	Huntsville, AL	9/17/2015		2002		15,842		(180	)		15,662	178			95.5	%		97.1	%		817
Creekstone at RTP	Durham, NC	9/17/2015		2012		38,126		(410	)		37,716	256			94.1	%		92.1	%		1,108
Fountains Southend	Charlotte, NC	9/17/2015		2013		41,634		(466	)		41,168	208			93.8	%		96.6	%		1,367
Fox Trails	Plano, TX	9/17/2015		1981		27,728		(276	)		27,452	286			96.9	%		96.0	%		975
Lakeshore on the Hill	Chattanooga, TN	9/17/2015		2015		11,175		(129	)		11,046	123			95.9	%		97.3	%		920
Millenia 700	Orlando, FL	9/17/2015		2012		47,292		(524	)		46,768	297			92.6	%		95.1	%		1,304
Miller Creek at German Town	Memphis, TN	9/17/2015		2013		56,827		(670	)		56,157	330			93.3	%		93.8	%		1,194
Pointe at Canyon Ridge	Atlanta, GA	9/17/2015	1986 (f)			48,221		(467	)		47,754	494			93.5	%		91.3	%		857
St James at Goose Creek	Goose Creek, SC	9/17/2015		2009		31,611		(355	)		31,256	244			94.7	%		93.9	%		1,031
Talison Row at Daniel Island	Daniel Island, SC	9/17/2015		2013		46,944		(519	)		46,425	274			88.7	%		86.8	%		1,486
The Aventine Greenville	Greenville, SC	9/17/2015		2013		48,064		(549	)		47,515	346			92.8	%		93.1	%		1,126
Trails at Signal Mountain	Chattanooga, TN	9/17/2015		2015		14,180		(163	)		14,017	172			98.8	%		98.4	%		890
Vue at Knoll Trail	Dallas, TX	9/17/2015		2015		9,209		(78	)		9,131	114			96.5	%		95.2	%		849
Waterstone at Brier Creek	Raleigh, NC	9/17/2015		2014		38,884		(434	)		38,450	232			92.7	%		94.2	%		1,193
Waterstone Big Creek	Alpharetta, GA	9/17/2015		2014		69,587		(775	)		68,812	370			94.9	%		96.5	%		1,324
Westmont Commons	Asheville, NC	9/17/2015		2003		28,046		(317	)		27,729	252			96.4	%		96.5	%		986
TOTAL					$	1,357,338	$	(44,422	)	$	1,312,916		13,502		94.2	%		93.5	%	$	952

(a)

All dates are for the year in which a significant renovation program was completed, except for Runaway Bay, Arbors at the Reservoir, King’s Landing, Walnut Hill, Stonebridge, Bennington Pond, Prospect Park, Brookside, Jamestown, Meadows, Oxmoor, Stonebridge at the Ranch and Iron Rock Ranch which is the year construction was completed.

(b)	Units represent the total number of apartment units available for rent at March 31, 2016.

(c)	Physical occupancy for each of our properties is calculated as (i) total units rented as of March 31, 2016 divided by (ii) total units available as of March 31, 2016, expressed as a percentage.

(d)	Average occupancy represents the daily average occupied units for the three-month period ended March 31, 2016.

(e)	Average monthly effective monthly rent, per unit, represents the average monthly rent for all occupied units for the three-month period ended March 31, 2016.

(f)	Properties are undergoing renovation.

NOI Exposure by Market

Dollars in thousands, except per share data

								For the Three Months Ended March 31, 2016
Market	Units		Gross Real Estate Assets		Period End Occupancy			Average Effective Monthly Rent per Unit		Net Operating Income (a)		% of NOI
Atlanta, GA		1,092	$	134,641		93.0	%	$	1,001	$	1,975		9.2	%
Louisville. KY		1,549		162,962		94.6	%		908		2,294		10.7	%
Raleigh, NC		1,044		139,073		95.1	%		1,040		1,984		9.2	%
Memphis, TN		1,381		135,854		94.0	%		957		2,071		9.6	%
Oklahoma City, OK		1,658		71,151		92.2	%		652		1,596		7.4	%
Dallas, TX		734		84,515		95.0	%		1,070		1,327		6.2	%
Charleston, SC		518		78,556		91.5	%		1,272		985		4.6	%
Austin, TX		620		53,269		96.8	%		1,069		1,067		5.0	%
Jackson, MS		602		43,731		91.8	%		868		769		3.6	%
Indianapolis, IN		782		54,767		94.9	%		801		896		4.2	%
Greenville, SC		346		48,064		92.8	%		1,126		724		3.4	%
Little Rock, AR		462		53,108		93.1	%		963		790		3.7	%
Orlando, FL		297		47,292		92.6	%		1,304		701		3.3	%
Phoenix, AZ		360		36,330		98.6	%		884		639		3.0	%
Charlotte, NC		208		41,634		93.8	%		1,367		649		3.0	%
Chicago, IL		370		28,848		96.8	%		977		558		2.6	%
Asheville, NC		252		28,046		96.4	%		986		480		2.2	%
St. Louis, MO		152		32,538		91.5	%		1,481		419		2.0	%
Chattanooga, TN		295		25,355		97.6	%		903		412		1.9	%
Denver, CO		162		10,016		96.9	%		1,178		390		1.8	%
Columbus, OH		240		17,588		94.6	%		838		323		1.5	%
Huntsville, AL		178		15,842		95.5	%		817		262		1.2	%
Norfolk, VA		200		14,158		97.5	%		706		162		0.8	%
Total/Weighted Average		13,502	$	1,357,338		94.2	%	$	952	$	21,473		100.0	%

(a)	Net operating income for the three months ended March 31, 2016 excludes $74 for a property sold on February 18, 2016.

Definitions

Average Effective Monthly Rent per Unit

Average effective rent per unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented. We believe average effective rent is a helpful measurement in evaluating average pricing. This metric, when presented, reflects the average effective rent per month.

Average Occupancy

Average occupancy represents the average of the daily physical occupancy for the period presented.

Adjusted EBITDA

EBITDA is defined as net income before gains or losses on asset sales, gains or losses on debt extinguishments, depreciation and amortization expenses, interest expense, income taxes, and amortization of deferred financing costs. Adjusted EBITDA is EBITDA before acquisition expenses and gains. EBITDA and Adjusted EBITDA are each non-GAAP measures. We consider EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of our performance because it eliminates depreciation, income taxes, interest and acquisition expenses and gains relating to IRT’s acquisition of TSRE, which permits investors to view income from operations without non-cash items such as depreciation, amortization, the cost of debt or items specific to the TSRE acquisition. The table is a reconciliation of net income applicable to common stockholders to Adjusted EBITDA. IRT’s calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, IRT’s Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.

Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)

IRT believes that FFO and CFFO, each of which is a non-GAAP measure, are additional appropriate measures of the operating performance of a REIT and IRT in particular. IRT computes FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT, as net income or loss allocated to common stock (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, gains or losses on sales of real estate and the cumulative effect of changes in accounting principles.

CFFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including acquisition and integration expenses, expensed costs related to the issuance of shares of our common stock, gains or losses on real estate transactions and equity-based compensation expenses, from the determination of FFO. IRT incurs acquisition expenses in connection with acquisitions of real estate properties and expenses those costs when incurred in accordance with U.S. GAAP. As these expenses are one-time and reflective of investing activities rather than operating performance, IRT adds back these costs to FFO in determining CFFO. In connection with the TSRE transaction, IRT modified the calculation of CFFO to adjust for amortization of deferred financing costs and TSRE financing extinguishment and employee separation expenses because these are non-cash items or reflective of investing activities rather than operating performance similar to the other CFFO adjustments. The effect of these modifications on prior periods is reflected in the reconciliation of IRT’s reported net income (loss) allocable to common shares to its FFO and CFFO included herein.

IRT’s calculation of CFFO differs from the methodology used for calculating CFFO by certain other REITs and, accordingly, IRT’s CFFO may not be comparable to CFFO reported by other REITs. IRT’s management utilizes FFO and CFFO as measures of IRT’s operating performance, and believes they are also useful to investors, because they facilitate an understanding of IRT’s operating performance after adjustment for certain non-cash items, such as depreciation and amortization expenses, equity based compensation, amortization of deferred financing fees, TSRE financing extinguishment and employee separation costs, gains (loss) on TSRE transaction and property acquisitions and acquisition expenses and pursuit costs that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and that may not accurately compare IRT’s operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, IRT also believes that FFO and CFFO may provide IRT and our investors with an additional useful measure to compare IRT’s financial performance to certain other REITs. IRT also uses CFFO for purposes of determining the quarterly incentive fee, if any, payable to our advisor. Neither FFO nor CFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor CFFO should be considered as an alternative to net income as an indicator of IRT’s operating performance or as an alternative to cash flow from operating activities as a measure of IRT’s liquidity.

Net Operating Income

IRT believes that Net Operating Income (“NOI”), a non-GAAP measure, is a useful measure of its operating performance. IRT defines NOI as total property revenues less total property operating expenses, excluding depreciation and amortization, asset management fees, acquisition expenses and general administrative expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same store and non-same store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as an alternative measure of our financial performance.

Same Store Properties and Same Store Portfolio

IRT reviews its same store properties or portfolio at the beginning of each calendar year. Properties are added into the same store portfolio if they were owned at the beginning of the previous year. Properties that have been sold are excluded from the same store portfolio.