EX-99.2 3 irt-20230215xsupex992.htm EX-99.2
Exhibit 99.2
NYSE: IRT
WWW.IRTLIVING.COM

TABLE OF CONTENTS

Company Information | 3
Forward-Looking Statements | 4
Earnings Release Text | 5
Financial & Operating Highlights | 12
Balance Sheets | 13
Statements of Operations, FFO & CORE FFO |
Trailing Five Quarters | 14
Three and Twelve Months Ended December 31, 2022 and 2021 | 15
Adjusted EBITDA Reconciliations and Coverage Ratio |
Trailing Five Quarters | 16
Three and Twelve Months Ended December 31, 2022 and 2021 | 16
Combined Same-Store Portfolio Net Operating Income |
Trailing Five Quarters | 17
Three and Twelve Months Ended December 31, 2022 and 2021 | 18
Net Operating Income Bridge | 19
Combined Same-Store Portfolio Net Operating Income by Market |
Three Months Ended December 31, 2022 and 2021 | 20
Twelve Months Ended December 31, 2022 and 2021 | 21
Total Portfolio NOI Exposure by Market | 22
Value Add Summary | 23
Investment & Development Activity | 24
Debt Summary | 25
Debt Covenant & Unencumbered Asset Statistics | 26
Definitions | 27
Appendix A | 30

Independence Realty Trust
December 31, 2022
Company Information:
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX , and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.

Corporate Headquarters | 1835 Market Street, Suite 2601
| Philadelphia, PA 19103
| 267.270.4800
Trading Symbol | NYSE: “IRT”
Investor Relations Contact | Edelman Smithfield
| Ted McHugh and Lauren Torres
| 917-365-7979
| IRT@edelman.com

3

Forward-Looking Statements
This release contains 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 “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.
These forward-looking statements involve estimates, projections, forecasts and assumptions and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, increased regulations generally and specifically on the rental housing market including legislation that may regulate rents or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of COVID-19 and other potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2021, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.
These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake 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.
4

Independence Realty Trust Announces Fourth Quarter and Full Year 2022 Financial Results
Introduces Full Year 2023 Guidance
PHILADELPHIA – (BUSINESS WIRE) – February 15, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its fourth quarter and full year 2022 financial results and introduced its full year 2023 guidance.
Fourth Quarter Highlights
•Net income available to common shares of $33.6 million for the quarter ended December 31, 2022 compared to $28.6 million for the quarter ended December 31, 2021.
•Earnings per diluted share of $0.15 for the quarter ended December 31, 2022 compared to $0.23 for the quarter ended December 31, 2021.
•Combined same-store portfolio net operating income (“NOI”) growth of 13.0% for the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021.
•Core Funds from Operations (“CFFO”) of $66.8 million for the quarter ended December 31, 2022 compared to $31.0 million for the quarter ended December 31, 2021. CFFO per share was $0.29 for the fourth quarter of 2022, as compared to $0.24 for the fourth quarter of 2021.
•Adjusted EBITDA of $93.0 million for the quarter ended December 31, 2022 compared to $42.3 million for the quarter ended December 31, 2021.
•Value add program has completed renovations at 656 units during the quarter ended December 31, 2022, achieving a weighted average return on investment during the quarter of 20.5%.
Full Year Highlights
•Net income available to common shares of $117.2 million for the year ended December 31, 2022 compared to $44.6 million for the year ended December 31, 2021.
•Earnings per diluted share of $0.53 for the year ended December 31, 2022 compared to $0.41 for the year ended December 31, 2021.
•Combined same-store portfolio NOI growth of 13.7% for the year ended December 31, 2022 compared to the year ended December 31, 2021.
•CFFO of $247.4 million for the year ended December 31, 2022 compared to $92.0 million for the year ended December 31, 2021. CFFO per share was $1.08 for the year ended December 31, 2022, as compared to $0.84 for the year ended December 31, 2021.
•Adjusted EBITDA of $346.9 million for the year ended December 31, 2022 compared to $128.9 million for the year ended December 31, 2021.
•Value add program has completed renovations at 1,451 units during the year ended December 31, 2022, achieving a weighted average return on investment during the year of 24.1%.
2023 Guidance Highlights
•Earnings per diluted share of $0.25 at the mid-point of our guidance range.
•CFFO per share of $1.14 at the mid-point of our guidance range.
•2023 same store NOI growth of 6.5% at the mid-point of our guidance range.
5

Included later in this press release are definitions of NOI, CFFO, Adjusted EBITDA and other Non-GAAP financial measures and reconciliations of such measures to their most comparable financial measures as calculated and presented in accordance with GAAP.
Management Commentary
“We are pleased with our accomplishments in 2022, as we integrated the STAR portfolio while successfully operating our business during volatile market conditions,” said Scott Schaeffer, Chairman and CEO of IRT. “We delivered fourth quarter and full year same store NOI growth of 13.0% and 13.7%, respectively and Core FFO per share growth of nearly 30% in 2022. While we expect macroeconomic uncertainty to persist, we remain confident in our portfolio in attractive markets and expect favorable demand trends to support our performance. Looking ahead to 2023, our guidance reflects another year of growth at IRT, as we continue to focus on executing our value add strategy and operating our well-positioned portfolio of middle market communities.”
Combined Same-Store Portfolio(1) Operating Results

| Fourth Quarter 2022 Compared to Fourth Quarter 2021 | Full Year 2022 Compared to Full Year 2021 |
Rental and other property revenue (2) | 9.8% increase | 10.7% increase |
Property operating expenses | 4.6% increase | 5.9% increase |
Net operating income (“NOI”) (2) | 13.0% increase | 13.7% increase |
Average occupancy | 220 bps decrease to 93.8% | 130 bps decrease to 94.7% |
Average rental rate | 12.2% increase to $1,514 | 12.0% increase to $1,446 |
NOI Margin | 180 bps increase to 64.6% | 160 bps increase to 63.1% |

(1)Combined same-store portfolio includes 112 properties, which represent 33,527 units.
(2)Reflects upfront concessions recorded on a straight-line basis. With upfront concessions recorded on a cash basis, the increase in rental and other property revenue would be 9.6% and 10.3%, for the three and twelve months ended December 31, 2022, respectively, and the increase in NOI would be 12.6% and 13.0% for the three and twelve months ended December 31, 2022, respectively.
6

Operating Metrics
The table below summarizes operating metrics for the combined same-store portfolio for the applicable periods.

| 4Q 2022 | 1Q 2023 (3)
Combined Same-Store Portfolio (1) |  |
Average Occupancy | 93.8 | % | 93.2 | %
Lease Over Lease Effective Rental Rate Growth: (2) |  |
New Leases | 6.4 | % | 4.6 | %
Renewal Leases | 7.6 | % | 4.9 | %
Blended | 7.0 | % | 4.8 | %
Resident retention rate | 45.4 | % | 51.0 | %
Combined Same-Store Portfolio excluding Ongoing Value Add |  |
Average Occupancy | 94.6 | % | 94.0 | %
Lease Over Lease Effective Rental Rate Growth: (2) |  |
New Leases | 5.2 | % | 3.7 | %
Renewal Leases | 6.8 | % | 4.5 | %
Blended | 6.0 | % | 4.2 | %
Resident retention rate | 46.7 | % | 51.3 | %
Value Add (18 properties with Ongoing Value Add) |  |
Average Occupancy | 90.2 | % | 89.8 | %
Lease Over Lease Effective Rental Rate Growth: (2) |  |
New Leases | 11.6 | % | 7.7 | %
Renewal Leases | 11.4 | % | 7.1 | %
Blended | 11.5 | % | 7.4 | %
Resident retention rate | 39.3 | % | 49.3 | %

(1)Combined same-store portfolio for 4Q 2022 includes 112 properties, which represent 33,527 units. Combined same-store portfolio for 1Q 2023 includes 116 properties, which represent 34,571 units.
(2)Lease-over-lease effective rent growth represents the change in effective monthly rent, as adjusted for concessions, for each unit that had a prior lease and current lease that are for a term of 9-13 months.
(3)1Q 2023 average occupancy and resident retention rates are as through February 13, 2023. 1Q 2023 new lease and renewal rates are for leases commencing during 1Q 2023 that were signed as of February 13, 2023.
Value Add Program
We completed renovations on 656 units during the quarter ended December 31, 2022, bringing our total renovations completed during the year ended December 31, 2022 to 1,451 units. For the 1,451 units renovated during the year ended December 31, 2022 we achieved a return on investment of 24.1%, with an average cost per unit renovated of $13,659, and an average rent increase per renovated unit of $270. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of December 31, 2022.
Investment Activity
Held for Sale
As of December 31, 2022, in connection with our ongoing capital recycling program, we had one property in Indianapolis, IN, classified as held for sale. We expect the disposition to close in the first quarter of 2023. The proceeds from the disposition will be used to reduce indebtedness.
7

Dispositions
During the quarter ended December 31, 2022, we sold two previously held for sale properties, one in Louisville, KY and one in Terre Haute, IN. The combined sale price was $99.0 million and we recognized a net gain on sale of $17.0 million.
Capital Expenditures
For the quarter ended December 31, 2022, recurring capital expenditures for the total portfolio were $4.6 million, or $129 per unit. For the year ended December 31, 2022, recurring capital expenditures for the total portfolio were $24.3 million, or $680 per unit.
Dividend Distribution
On December 12, 2022, our Board of Directors declared a quarterly cash dividend of $0.14 per share of our common stock, which was paid on January 20, 2023 to stockholders of record at the close of business on December 30, 2022.
2023 Full Year EPS and CFFO Guidance
We are introducing 2023 full year guidance. Earnings per diluted share is projected to be in the range of $0.23 to $0.27. A reconciliation of IRT's projected net income allocable to common shares to its projected CFFO per share is included below. See the schedules and definitions at the end of this release for further information regarding how IRT calculates CFFO and for management’s definition and rationale for the usefulness of CFFO.

2023 Full Year EPS and CFFO Guidance (1)(2) |  |  |  |  | Low |  | High |  |
Earnings per share |  |  |  |  | $0.23 |  | $0.27 |  |
Adjustments: |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  | 0.95 |  | 0.95 |  |
Gain on sale of real estate assets (3) |  |  |  |  | (0.01) |  | (0.01) |  |
Loan (premium accretion) discount amortization, net |  |  |  |  | (0.05) |  | (0.05) |  |
Core FFO per share |  |  |  |  | $1.12 |  | $1.16 |  |

(1)This guidance, including the underlying assumptions presented in the table below, constitutes forward-looking information. Actual full year 2023 EPS and CFFO could vary significantly from the projections presented. See “Forward-Looking Statements” below. Our guidance is based on the key guidance assumptions detailed below.
(2)Per share guidance is based on 230.0 million weighted average shares and units outstanding.
(3)Gains on sale of real estate assets includes one property identified as held for sale as of December 31, 2022.
8

2023 Guidance Assumptions
Our key guidance assumptions for 2023 are enumerated below. See definitions at the end of this release for further information regarding our same-store definitions.

Combined Same-Store Portfolio |  | 2023 Outlook (1) |
Number of properties/units |  | 116 properties / 34,571 units |
Property revenue growth |  | 5.7% to 7.0% |
Controllable operating expense growth |  | 3.3% to 5.4% |
Real estate tax and insurance expense growth |  | 8.1% to 9.1% |
Total operating expense growth |  | 5.2% to 6.9% |
Property NOI growth |  | 5.0% to 8.0% |
Corporate Expenses |  |  |
General and administrative & Property management expenses |  | $51.5 million to $53.5 million |
Interest expense (2) |  | $104.5 million to $106.5 million |
Transaction/Investment Volume (3) |  |  |
Acquisition volume |  | None |
Disposition volume |  | $35.0 million to $40.0 million |
Capital Expenditures |  |  |
Recurring |  | $19.0 million to $21.0 million |
Value add & non-recurring |  | $78.0 million to $82.0 million |
Development |  | $80.0 million to $90.0 million |

(1)This guidance, including the underlying assumptions, constitutes forward-looking information. Actual results could vary significantly from the projections presented. See “Forward-Looking Statements” below.
(2)Interest expense includes amortization of deferred financing costs but excludes loan premium accretion, net. As a result of purchase accounting associated with the merger with Steadfast Apartment REIT, Inc. (“STAR”) on December 16, 2021, we recorded a $72.1 million loan premium, net, related to STAR debt. This loan premium will be accreted into and reduce GAAP interest expense over the remaining term of the associated debt. However, loan premium accretion will be excluded from CFFO.
(3)Includes one property identified as held for sale as of December 31, 2022. We continue to evaluate our portfolio for capital recycling opportunities so actual acquisitions and dispositions could vary significantly from our projections. We undertake no duty to update these assumptions. See “Forward-Looking Statements” below.
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Selected Financial Information
See the schedules at the end of this earnings release for selected financial information for IRT.
Non-GAAP Financial Measures and Definitions
We disclose the following non-GAAP financial measures in this earnings release: FFO, CFFO, NOI and Adjusted EBITDA. Included at the end of this release are definitions of these non-GAAP financial measures and a reconciliation of our reported net income to our FFO and CFFO, a reconciliation of our same store NOI to our reported net income, a reconciliation of our Adjusted EBITDA to net income, and management’s rationales for the usefulness of each of these and other non-GAAP financial measures used in this release.
Conference Call
All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, February 16, 2023 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.844.200.6205, access code 513491. For those who are not available to listen to the live call, the replay will be available shortly following the live call from the investor relations section of IRT’s website and telephonically until Thursday, February 23, 2022 by dialing 1.866.813.9403, access code 910516.
Supplemental Information
We produce 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 our website, www.irtliving.com, through the "Investor Relations" section.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Oklahoma City, OK, Raleigh-Durham, NC, Houston, TX, Nashville, TN, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.
10

Forward-Looking Statements
This release contains 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 “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.
These forward-looking statements involve estimates, projections, forecasts and assumptions and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, increased regulations generally and specifically on the rental housing market including legislation that may regulate rents or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of COVID-19 and other potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2021, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.
These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake 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.
11

FINANCIAL & OPERATING HIGHLIGHTS
Dollars in thousands, except per share data

| For the Three Months Ended
| Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Selected Financial Information: |  |  |  |  |  |  |  |  |
Operating Statistics: |  |  |  |  |  |  |  |  |
Net income (loss) available to common shares | $ | 33,631 |  |  | $ | 16,223 |  |  | $ | (7,205) |  |  | $ | 74,600 |  |  | $ | 28,615 |
Earnings (loss) per share -- diluted | $ | 0.15 |  |  | $ | 0.07 |  |  | $ | (0.03) |  |  | $ | 0.34 |  |  | $ | 0.23 |
Rental and other property revenue | $ | 162,493 |  |  | $ | 160,300 |  |  | $ | 154,643 |  |  | $ | 149,977 |  |  | $ | 76,803 |
Property operating expenses | $ | 57,450 |  |  | $ | 59,967 |  |  | $ | 58,976 |  |  | $ | 55,883 |  |  | $ | 26,952 |
NOI | $ | 105,043 |  |  | $ | 100,333 |  |  | $ | 95,667 |  |  | $ | 94,094 |  |  | $ | 49,851 |

NOI margin | 64.6 | % |  | 62.6 | % |  | 61.9 | % |  | 62.7 | % |  | 64.9 | %

Adjusted EBITDA | $ | 93,017 |  |  | $ | 89,264 |  |  | $ | 83,228 |  |  | $ | 81,375 |  |  | $ | 42,301 |
CORE FFO per share | $ | 0.29 |  |  | $ | 0.28 |  |  | $ | 0.26 |  |  | $ | 0.25 |  |  | $ | 0.24 |
Dividends per share | $ | 0.14 |  |  | $ | 0.14 |  |  | $ | 0.14 |  |  | $ | 0.12 |  |  | $ | 0.12 |

CORE FFO payout ratio | 48.3 | % |  | 50.0 | % |  | 53.8 | % |  | 48.0 | % |  | 50.0 | %

Portfolio Data: |  |  |  |  |  |  |  |  |
Total gross assets | $ | 7,034,902 |  |  | $ | 7,097,280 |  |  | $ | 6,801,034 |  |  | $ | 6,731,377 |  |  | $ | 6,785,648 |
Total number of operating properties | 120 |  |  | 122 |  |  | 120 |  |  | 119 |  |  | 123 |
Total units | 35,526 |  |  | 36,176 |  |  | 35,594 |  |  | 35,498 |  |  | 36,831 |

Period end occupancy | 93.6 | % |  | 94.6 | % |  | 95.7 | % |  | 95.4 | % |  | 95.6 | %
Total portfolio average occupancy | 93.9 | % |  | 94.2 | % |  | 95.5 | % |  | 95.2 | % |  | 96.0 | %

Total portfolio average effective monthly rent, per unit | $ | 1,522 |  |  | $ | 1,484 |  |  | $ | 1,414 |  |  | $ | 1,374 |  |  | $ | 1,329 |

Combined same-store portfolio period end occupancy (a) | 93.5 | % |  | 94.5 | % |  | 95.4 | % |  | 95.6 | % |  | 95.7 | %
Combined same-store portfolio average occupancy (a) | 93.8 | % |  | 94.2 | % |  | 95.6 | % |  | 95.3 | % |  | 96.0 | %

Combined same-store portfolio average effective monthly rent, per unit (a) | $ | 1,514 |  |  | $ | 1,481 |  |  | $ | 1,414 |  |  | $ | 1,375 |  |  | $ | 1,349 |
Capitalization: |  |  |  |  |  |  |  |  |
Total debt (b) | $ | 2,631,645 |  |  | $ | 2,713,625 |  |  | $ | 2,552,936 |  |  | $ | 2,542,088 |  |  | $ | 2,705,336 |
Common share price, period end | $ | 16.86 |  |  | $ | 16.73 |  |  | $ | 20.73 |  |  | $ | 26.44 |  |  | $ | 25.83 |
Market equity capitalization | $ | 3,880,432 |  |  | $ | 3,850,365 |  |  | $ | 4,729,580 |  |  | $ | 6,031,873 |  |  | $ | 5,882,410 |
Total market capitalization | $ | 6,512,077 |  |  | $ | 6,563,990 |  |  | $ | 7,282,516 |  |  | $ | 8,573,961 |  |  | $ | 8,587,746 |

Total debt/total gross assets | 37.4 | % |  | 38.2 | % |  | 37.5 | % |  | 37.8 | % |  | 39.9 | %
Net debt to Adjusted EBITDA (c) | 6.9x |  | 7.2x |  | 7.4x |  | 7.6x |  | 7.7x
Interest coverage | 4.0x |  | 4.0x |  | 4.0x |  | 4.0x |  | 3.9x

Common shares and OP Units: |  |  |  |  |  |  |  |  |
Shares outstanding | 224,064,940 |  |  | 224,056,179 |  |  | 222,060,280 |  |  | 221,163,391 |  |  | 220,753,735 |
OP units outstanding | 6,091,171 |  |  | 6,091,171 |  |  | 6,091,171 |  |  | 6,970,993 |  |  | 6,981,841 |
Common shares and OP units outstanding | 230,156,111 |  |  | 230,147,350 |  |  | 228,151,451 |  |  | 228,134,384 |  |  | 227,735,577 |
Weighted average common shares and OP units | 229,994,927 |  |  | 228,051,780 |  |  | 227,964,753 |  |  | 227,778,484 |  |  | 127,046,225 |

(a)Combined same-store portfolio consists of 112 properties, which represent 33,527 units.
(b)Includes indebtedness associated with real estate held for sale, as applicable.
(c)Reflects net debt to Adjusted EBITDA for each period presented, including adjustments for the timing of acquisitions and dispositions, impacting quarterly EBITDA. For the five quarters ended December 31, 2022, net debt to Adjusted EBITDA excluding adjustments for timing of acquisitions and dispositions was 6.9x, 7.4x, 7.4x, 7.5x, and 15.4x, respectively.
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BALANCE SHEETS
Dollars in thousands, except per share data

| As of
| Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Assets: |  |  |  |  |  |  |  |  |
Real estate held for investment, at cost | $ | 6,615,243 |  |  | $ | 6,634,087 |  |  | $ | 6,428,482 |  |  | $ | 6,382,324 |  |  | $ | 6,462,355 |
Less: accumulated depreciation | (425,034) |  |  | (379,171) |  |  | (329,903) |  |  | (283,666) |  |  | (243,475) |
Real estate held for investment, net | 6,190,209 |  |  | 6,254,916 |  |  | 6,098,579 |  |  | 6,098,658 |  |  | 6,218,880 |
Real estate held for sale | 35,777 |  |  | 82,178 |  |  | 81,818 |  |  | 80,992 |  |  | 61,560 |
Real estate under development | 105,518 |  |  | 86,763 |  |  | 61,777 |  |  | 48,959 |  |  | 41,777 |
Cash and cash equivalents | 16,084 |  |  | 23,753 |  |  | 11,378 |  |  | 23,971 |  |  | 35,972 |
Restricted cash | 27,933 |  |  | 35,829 |  |  | 31,017 |  |  | 26,789 |  |  | 29,699 |
Investment in unconsolidated real estate entities | 80,220 |  |  | 70,608 |  |  | 54,178 |  |  | 43,541 |  |  | 24,999 |
Other assets | 34,846 |  |  | 34,480 |  |  | 26,707 |  |  | 27,281 |  |  | 38,052 |
Derivative assets | 41,109 |  |  | 43,967 |  |  | 21,162 |  |  | 12,944 |  |  | 2,488 |
Intangible assets, net | 399 |  |  | 1,039 |  |  | 18 |  |  | 24,187 |  |  | 53,269 |
Total assets | $ | 6,532,095 |  |  | $ | 6,633,533 |  |  | $ | 6,386,634 |  |  | $ | 6,387,322 |  |  | $ | 6,506,696 |
Liabilities and Equity: |  |  |  |  |  |  |  |  |
Indebtedness, net | $ | 2,631,645 |  |  | $ | 2,667,183 |  |  | $ | 2,506,375 |  |  | $ | 2,495,410 |  |  | $ | 2,705,336 |
Indebtedness associated with real estate held for sale, net | — |  |  | 46,442 |  |  | 46,561 |  |  | 46,678 |  |  | — |
Accounts payable and accrued expenses | 109,677 |  |  | 126,310 |  |  | 98,173 |  |  | 81,498 |  |  | 106,332 |
Accrued interest payable | 7,713 |  |  | 11,019 |  |  | 6,891 |  |  | 6,955 |  |  | 7,175 |
Dividends payable | 32,189 |  |  | 32,188 |  |  | 31,907 |  |  | 27,345 |  |  | 16,792 |
Derivative liabilities | — |  |  | — |  |  | — |  |  | 128 |  |  | 11,896 |
Other liabilities | 13,004 |  |  | 13,816 |  |  | 15,077 |  |  | 15,921 |  |  | 17,089 |
Total liabilities | 2,794,228 |  |  | 2,896,958 |  |  | 2,704,984 |  |  | 2,673,935 |  |  | 2,864,620 |
Equity: |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
Preferred shares, $0.01 par value per share | — |  |  | — |  |  | — |  |  | — |  |  | — |
Common shares, $0.01 par value per share | 2,241 |  |  | 2,241 |  |  | 2,221 |  |  | 2,212 |  |  | 2,208 |
Additional paid in capital | 3,751,056 |  |  | 3,749,550 |  |  | 3,698,763 |  |  | 3,678,478 |  |  | 3,678,903 |
Accumulated other comprehensive income (loss) | 35,102 |  |  | 37,569 |  |  | 18,430 |  |  | 9,958 |  |  | (11,940) |
Retained earnings (deficit) | (191,735) |  |  | (194,014) |  |  | (178,902) |  |  | (140,643) |  |  | (188,410) |
Total shareholders' equity | 3,596,664 |  |  | 3,595,346 |  |  | 3,540,512 |  |  | 3,550,005 |  |  | 3,480,761 |
Noncontrolling Interests | 141,203 |  |  | 141,229 |  |  | 141,138 |  |  | 163,382 |  |  | 161,315 |
Total equity | 3,737,867 |  |  | 3,736,575 |  |  | 3,681,650 |  |  | 3,713,387 |  |  | 3,642,076 |
Total liabilities and equity | $ | 6,532,095 |  |  | $ | 6,633,533 |  |  | $ | 6,386,634 |  |  | $ | 6,387,322 |  |  | $ | 6,506,696 |

13

STATEMENTS OF OPERATIONS, FFO & CORE FFO
TRAILING FIVE QUARTERS
Dollars in thousands, except per share data

| For the Three Months Ended
| Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Revenue: |  |  |  |  |  |  |  |  |
Rental and other property revenue | $ | 162,493 |  |  | $ | 160,300 |  |  | $ | 154,643 |  |  | $ | 149,977 |  |  | $ | 76,803 |
Other revenue | 306 |  | 300 |  | 120 |  | 385 |  | 113
Total revenue | 162,799 |  | 160,600 |  | 154,763 |  | 150,362 |  | 76,916
Expenses: |  |  |  |  |  |  |  |  |
Property operating expenses | 57,450 |  | 59,967 |  | 58,976 |  | 55,883 |  | 26,952
Property management expenses | 6,593 |  | 5,744 |  | 6,139 |  | 5,556 |  | 3,221
General and administrative expenses (a) | 5,739 |  | 5,625 |  | 6,968 |  | 7,928 |  | 4,442
Depreciation and amortization expense | 52,161 |  | 49,722 |  | 72,793 |  | 78,174 |  | 26,210
Casualty losses (gains), net | (1,690) |  | (191) |  | (5,592) |  | (1,393) |  | —
Total expenses | 120,253 |  | 120,867 |  | 139,284 |  | 146,148 |  | 60,825
Interest expense | (23,337) |  | (22,093) |  | (20,994) |  | (20,531) |  | (10,757)
Gain on sale (loss on impairment) of real estate assets, net | 17,044 |  | — |  | — |  | 94,712 |  | 76,179
Loss on extinguishment of debt | — |  | — |  | — |  | — |  | (10,261)
Other income, net | 57 |  | 765 |  | 294 |  | 443 |  | —
Gain (loss) from investments in unconsolidated real estate entities | 242 |  | (1,477) |  | (871) |  | (63) |  | —
Merger and integration costs | (2,028) |  | (275) |  | (1,307) |  | (1,895) |  | (41,787)
Net income (loss) | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |  |  | $ | 29,465 |
(Income) loss allocated to noncontrolling interests | (893) |  | (430) |  | 194 |  | (2,280) |  | (850)
Net income (loss) available to common shares | $ | 33,631 |  |  | $ | 16,223 |  |  | $ | (7,205) |  |  | $ | 74,600 |  |  | $ | 28,615 |
EPS - basic | $ | 0.15 |  |  | $ | 0.07 |  |  | $ | (0.03) |  |  | $ | 0.34 |  |  | $ | 0.23 |
Weighted-average shares outstanding - Basic | 223,903,756 |  | 221,960,609 |  | 221,164,284 |  | 220,798,692 |  | 125,375,694
EPS - diluted | $ | 0.15 |  |  | $ | 0.07 |  |  | $ | (0.03) |  |  | $ | 0.34 |  |  | $ | 0.23 |
Weighted-average shares outstanding - Diluted | 224,915,128 |  | 222,867,546 |  | 221,164,284 |  | 222,045,286 |  | 126,675,551
Funds From Operations (FFO): |  |  |  |  |  |  |  |  |
Net income (loss) | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |  |  | $ | 29,465 |
Add-Back (Deduct): |  |  |  |  |  |  |  |  |
Real estate depreciation and amortization | 51,957 |  | 49,347 |  | 72,298 |  | 77,943 |  | 26,068
Real estate depreciation and amortization from investments in unconsolidated real estate entities | 416 |  | 1,388 |  | 515 |  | — |  | —
(Gain on sale) loss on impairment of real estate assets, net, excluding prepayment (gains) losses | (16,635) |  | — |  | — |  | (94,712) |  | (78,490)
FFO | $ | 70,262 |  |  | $ | 67,388 |  |  | $ | 65,414 |  |  | $ | 60,111 |  |  | $ | (22,957) |
FFO per share | $ | 0.31 |  |  | $ | 0.30 |  |  | $ | 0.29 |  |  | $ | 0.26 |  |  | $ | (0.18) |
CORE Funds From Operations (CFFO): |  |  |  |  |  |  |  |  |
FFO | $ | 70,262 |  |  | $ | 67,388 |  |  | $ | 65,414 |  |  | $ | 60,111 |  |  | $ | (22,957) |
Add-Back (Deduct): |  |  |  |  |  |  |  |  |
Other depreciation and amortization | 204 |  | 375 |  | 495 |  | 231 |  | 142
Casualty losses (gains), net | (1,690) |  | (191) |  | (5,592) |  | (1,393) |  | —
Loan (premium accretion) discount amortization, net | (2,760) |  | (2,750) |  | (2,741) |  | (2,754) |  | (501)
Prepayment (gains) losses on asset dispositions | (409) |  | — |  | — |  | — |  | 2,312
Loss on extinguishment of debt | — |  | — |  | — |  | — |  | 10,261
Other income, net | (860) |  | (765) |  | (294) |  | (380) |  | —
Merger and integration costs | 2,028 |  | 275 |  | 1,307 |  | 1,895 |  | 41,787
CFFO | $ | 66,775 |  |  | $ | 64,332 |  |  | $ | 58,589 |  |  | $ | 57,710 |  |  | $ | 31,044 |
CFFO per share | $ | 0.29 |  |  | $ | 0.28 |  |  | $ | 0.26 |  |  | $ | 0.25 |  |  | $ | 0.24 |
Weighted-average shares and units outstanding | 229,994,927 |  | 228,051,780 |  | 227,966,261 |  | 227,778,484 |  | 127,046,225

(a)Included in the three months ended March 31, 2022 is $2.4 million of stock compensation expense recorded with respect to stock awards granted to retirement eligible employees.
14

STATEMENTS OF OPERATIONS, FFO & CORE FFO
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2022 AND 2021
Dollars in thousands, except per share data

| For the Three Months Ended December 31, |  | For the Twelve Months Ended December 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
Revenue: |  |  |  |  |  |  |
Rental and other property revenue | $ | 162,493 |  |  | $ | 76,803 |  |  | $ | 627,414 |  |  | $ | 249,492 |
Other revenue | 306 |  | 113 |  | 1,111 |  |  | 760 |
Total revenue | 162,799 |  | 76,916 |  | 628,525 |  |  | 250,252 |
Expenses: |  |  |  |  |  |  |
Property operating expenses | 57,450 |  | 26,952 |  | 232,275 |  |  | 93,252 |
Property management expenses | 6,593 |  | 3,221 |  | 24,033 |  |  | 9,539 |
General and administrative expenses | 5,739 |  | 4,442 |  | 26,260 |  |  | 18,610 |
Depreciation and amortization expense | 52,161 |  | 26,210 |  | 252,849 |  |  | 76,909 |
Casualty losses (gains), net | (1,690) |  | — |  | (8,866) |  |  | 359 |
Total expenses | 120,253 |  | 60,825 |  | 526,551 |  |  | 198,669 |
Interest expense | (23,337) |  | (10,757) |  | (86,955) |  |  | (36,401) |
Gain on sale (loss on impairment) of real estate assets, net | 17,044 |  | 76,179 |  | 111,756 |  |  | 87,671 |
Loss on extinguishment of debt | — |  | (10,261) |  | — |  |  | (10,261) |
Other income, net | 57 |  | — |  | 1,558 |  |  | — |
Gain (loss) from investments in unconsolidated real estate entities | 242 |  | — |  | (2,169) |  |  | — |
Merger and integration costs | (2,028) |  | (41,787) |  | (5,505) |  |  | (47,063) |
Net income (loss) | 34,524 |  |  | 29,465 |  |  | 120,659 |  |  | 45,529 |
(Income) loss allocated to noncontrolling interests | (893) |  | (850) |  | (3,410) |  |  | (940) |
Net income (loss) available to common shares | $ | 33,631 |  |  | $ | 28,615 |  |  | $ | 117,249 |  |  | $ | 44,589 |
EPS - basic | $ | 0.15 |  |  | $ | 0.23 |  |  | $ | 0.53 |  |  | $ | 0.41 |
Weighted-average shares outstanding - Basic | 223,903,756 |  | 125,375,694 |  | 221,965,460 |  | 108,552,185
EPS - diluted | $ | 0.15 |  |  | $ | 0.23 |  |  | $ | 0.53 |  |  | $ | 0.41 |
Weighted-average shares outstanding - Diluted | 224,915,128 |  | 126,675,551 |  | 223,012,828 |  | 109,831,520
Funds From Operations (FFO): |  |  |  |  |  |  |
Net income (loss) | $ | 34,524 |  |  | $ | 29,465 |  |  | $ | 120,659 |  |  | $ | 45,529 |
Add-Back (Deduct): |  |  |  |  |  |  |
Real estate depreciation and amortization | 51,957 |  | 26,068 |  | 251,545 |  |  | 76,487 |
Real estate depreciation and amortization from investments in unconsolidated real estate entities | 416 |  | — |  | 2,320 |  |  | — |
(Gain on sale) loss on impairment of real estate assets, net, excluding prepayment (gains) losses | (16,635) |  | (78,490) |  | (111,347) |  |  | (90,277) |
FFO | $ | 70,262 |  |  | $ | (22,957) |  |  | $ | 263,177 |  |  | $ | 31,739 |
FFO per share | $ | 0.31 |  |  | $ | (0.18) |  |  | $ | 1.15 |  |  | $ | 0.29 |
CORE Funds From Operations (CFFO): |  |  |  |  |  |  |
FFO | $ | 70,262 |  |  | $ | (22,957) |  |  | $ | 263,177 |  |  | $ | 31,739 |
Add-Back (Deduct): |  |  |  |  |  |  |
Other depreciation and amortization | 204 |  | 142 |  | 1,304 |  |  | 423 |
Casualty losses (gains), net | (1,690) |  | — |  | (8,866) |  |  | 359 |
Loan (premium accretion) discount amortization, net | (2,760) |  | (501) |  | (11,005) |  |  | (501) |
Prepayment (gains) losses on asset dispositions | (409) |  | 2,312 |  | (409) |  |  | 2,607 |
Loss on extinguishment of debt | — |  | 10,261 |  | — |  |  | 10,261 |
Other income, net | (860) |  | — |  | (2,298) |  |  | — |
Merger and integration costs | 2,028 |  | 41,787 |  | 5,505 |  |  | 47,063 |
CFFO | $ | 66,775 |  |  | $ | 31,044 |  |  | $ | 247,408 |  |  | $ | 91,951 |
CFFO per share | $ | 0.29 |  |  | $ | 0.24 |  |  | $ | 1.08 |  |  | $ | 0.84 |
Weighted-average shares and units outstanding | 229,994,927 |  | 127,046,225 |  | 228,452,958 |  | 109,418,810

15

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO
Dollars in thousands

| Three Months Ended
ADJUSTED EBITDA: | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Net income (loss) | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |  |  | $ | 29,465 |
Add-Back (Deduct): |  |  |  |  |  |  |  |  |
Interest expense | 23,337 |  |  | 22,093 |  |  | 20,994 |  |  | 20,531 |  |  | 10,757 |
Depreciation and amortization | 52,161 |  |  | 49,722 |  |  | 72,793 |  |  | 78,174 |  |  | 26,210 |
Casualty losses (gains), net | (1,690) |  |  | (191) |  |  | (5,592) |  |  | (1,393) |  |  | — |
(Gain on sale) loss on impairment of real estate assets, net | (17,044) |  |  | — |  |  | — |  |  | (94,712) |  |  | (76,179) |
Loss on extinguishment of debt | — |  |  | — |  |  | — |  |  | — |  |  | 10,261 |
Merger and integration costs | 2,028 |  |  | 275 |  |  | 1,307 |  |  | 1,895 |  |  | 41,787 |
(Gain) loss from investments in unconsolidated real estate entities | (242) |  |  | 1,477 |  |  | 1,125 |  |  | — |  |  | — |
Other income, net | (57) |  |  | (765) |  |  | — |  |  | — |  |  | — |
Adjusted EBITDA | $ | 93,017 |  |  | $ | 89,264 |  |  | $ | 83,228 |  |  | $ | 81,375 |  |  | $ | 42,301 |
INTEREST COST: |  |  |  |  |  |  |  |  |
Interest expense | $ | 23,337 |  |  | $ | 22,093 |  |  | $ | 20,994 |  |  | $ | 20,531 |  |  | $ | 10,757 |
INTEREST COVERAGE: | 4.0x |  | 4.0x |  | 4.0x |  | 4.0x |  | 3.9x

| For the Three Months Ended December 31, |  | For the Twelve Months Ended December 31,
ADJUSTED EBITDA: | 2022 |  | 2021 |  | 2022 |  | 2021
Net income (loss) | $ | 34,524 |  |  | $ | 29,465 |  |  | $ | 120,659 |  |  | $ | 45,529 |
Add-Back (Deduct): |  |  |  |  |  |  |
Interest expense | 23,337 |  |  | 10,757 |  |  | 86,955 |  |  | 36,401 |
Depreciation and amortization | 52,161 |  |  | 26,210 |  |  | 252,849 |  |  | 76,909 |
Casualty losses (gains), net | (1,690) |  |  | — |  |  | (8,866) |  |  | 359 |
(Gain on sale) loss on impairment of real estate assets, net | (17,044) |  |  | (76,179) |  |  | (111,756) |  |  | (87,671) |
Loss on extinguishment of debt | — |  |  | 10,261 |  |  | — |  |  | 10,261 |
Merger and integration costs | 2,028 |  |  | 41,787 |  |  | 5,505 |  |  | 47,063 |
(Gain) loss from investments in unconsolidated real estate entities | (242) |  |  | — |  |  | 2,360 |  |  | — |
Other income, net | (57) |  |  | — |  |  | (822) |  |  | — |
Adjusted EBITDA | $ | 93,017 |  |  | $ | 42,301 |  |  | $ | 346,884 |  |  | $ | 128,851 |
INTEREST COST: |  |  |  |  |  |  |
Interest expense | $ | 23,337 |  |  | $ | 10,757 |  |  | $ | 86,955 |  |  | $ | 36,401 |
INTEREST COVERAGE: | 4.0x |  | 3.9x |  | 4.0x |  | 3.5x

16

COMBINED SAME-STORE PORTFOLIO(a) NET OPERATING INCOME
TRAILING FIVE QUARTERS
Dollars in thousands, except per unit data

| For the Three-Months Ended
| Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Revenue: |  |  |  |  |  |  |  |  |
Rental and other property revenue | $ | 151,392 |  |  | $ | 150,011 |  |  | $ | 145,611 |  |  | $ | 140,763 |  |  | $ | 137,827 |
Property Operating Expenses: |  |  |  |  |  |  |  |  |
Real estate taxes | 18,810 |  |  | 18,299 |  |  | 19,231 |  |  | 18,648 |  |  | 16,408 |
Property insurance | 3,268 |  |  | 3,487 |  |  | 2,972 |  |  | 2,761 |  |  | 3,006 |
Personnel expenses (b) | 11,814 |  |  | 11,810 |  |  | 12,135 |  |  | 11,924 |  |  | 12,131 |
Utilities | 7,711 |  |  | 7,914 |  |  | 7,014 |  |  | 7,245 |  |  | 7,017 |
Repairs and maintenance | 3,913 |  |  | 5,963 |  |  | 5,973 |  |  | 4,147 |  |  | 5,205 |
Contract services | 4,967 |  |  | 5,260 |  |  | 5,077 |  |  | 4,686 |  |  | 4,730 |
Advertising expenses | 1,164 |  |  | 1,447 |  |  | 1,212 |  |  | 1,169 |  |  | 1,314 |
Other expenses | 1,971 |  |  | 1,790 |  |  | 1,734 |  |  | 1,545 |  |  | 1,472 |
Total property operating expenses | 53,618 |  |  | 55,970 |  |  | 55,348 |  |  | 52,125 |  |  | 51,283 |
Combined same-store portfolio NOI | $ | 97,774 |  |  | $ | 94,041 |  |  | $ | 90,263 |  |  | $ | 88,638 |  |  | $ | 86,544 |

Combined same-store portfolio NOI margin | 64.6 | % |  | 62.7 | % |  | 62.0 | % |  | 63.0 | % |  | 62.8 | %
Average occupancy | 93.8 | % |  | 94.2 | % |  | 95.6 | % |  | 95.3 | % |  | 96.0 | %

Average effective monthly rent, per unit | $ | 1,514 |  |  | $ | 1,481 |  |  | $ | 1,414 |  |  | $ | 1,375 |  |  | $ | 1,349 |
Reconciliation of combined same-store portfolio NOI to net income (loss):
Combined same-store portfolio NOI | $ | 97,774 |  |  | $ | 94,041 |  |  | $ | 90,263 |  |  | $ | 88,638 |  |  | $ | 86,544 |
Combined non same-store portfolio NOI | 7,269 |  |  | 6,292 |  |  | 5,404 |  |  | 5,456 |  |  | 8,393 |
Pre-Merger STAR Portfolio NOI | — |  |  | — |  |  | — |  |  | — |  |  | (45,086) |
Other revenue | 306 |  |  | 300 |  |  | 120 |  |  | 385 |  |  | 113 |
Property management expenses | (6,593) |  |  | (5,744) |  |  | (6,139) |  |  | (5,556) |  |  | (3,221) |
General and administrative expenses | (5,739) |  |  | (5,625) |  |  | (6,968) |  |  | (7,928) |  |  | (4,442) |
Depreciation and amortization expense | (52,161) |  |  | (49,722) |  |  | (72,793) |  |  | (78,174) |  |  | (26,210) |
Casualty (losses) gains, net | 1,690 |  |  | 191 |  |  | 5,592 |  |  | 1,393 |  |  | — |
Interest expense | (23,337) |  |  | (22,093) |  |  | (20,994) |  |  | (20,531) |  |  | (10,757) |
Gain on sale (loss on impairment) of real estate assets, net | 17,044 |  |  | — |  |  | — |  |  | 94,712 |  |  | 76,179 |
Loss on extinguishment of debt | — |  |  | — |  |  | — |  |  | — |  |  | (10,261) |
Other income, net | 57 |  |  | 765 |  |  | 294 |  |  | 443 |  |  | — |
Gain (loss) from investments in unconsolidated real estate entities | 242 |  |  | (1,477) |  |  | (871) |  |  | (63) |  |  | — |
Merger and integration costs | (2,028) |  |  | (275) |  |  | (1,307) |  |  | (1,895) |  |  | (41,787) |
Net income (loss) | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |  |  | $ | 29,465 |

(a)Combined same-store portfolio consists of 112 properties, which represent 33,527 units.
(b)Included in the quarter ended September 30, 2022 is a refund of previously paid employer payroll taxes of $0.7 million from a portion of an employee retention credit received.
17

COMBINED SAME-STORE PORTFOLIO(a) NET OPERATING INCOME
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2022 AND 2021
Dollars in thousands, except per unit data

| For the Three Months Ended December 31, |  | For the Twelve Months Ended December 31,
| 2022 |  | 2021 |  | % change |  | 2022 |  | 2021 |  | % change
Revenue: |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenue | $ | 151,392 |  |  | $ | 137,827 |  |  | 9.8 | % |  | $ | 587,777 |  |  | $ | 531,097 |  |  | 10.7 | %
Property Operating Expenses: |  |  |  |  |  |  |  |  |  |  |
Real estate taxes | 18,810 |  |  | 16,408 |  |  | 14.6 | % |  | 74,988 |  |  | 69,299 |  |  | 8.2 | %
Property insurance | 3,268 |  |  | 3,006 |  |  | 8.7 | % |  | 12,488 |  |  | 11,485 |  |  | 8.7 | %
Personnel expenses (b) | 11,814 |  |  | 12,131 |  |  | (2.6) | % |  | 47,683 |  |  | 47,062 |  |  | 1.3 | %
Utilities | 7,711 |  |  | 7,017 |  |  | 9.9 | % |  | 29,884 |  |  | 28,000 |  |  | 6.7 | %
Repairs and maintenance | 3,913 |  |  | 5,205 |  |  | (24.8) | % |  | 19,996 |  |  | 19,255 |  |  | 3.8 | %
Contract services | 4,967 |  |  | 4,730 |  |  | 5.0 | % |  | 19,990 |  |  | 18,601 |  |  | 7.5 | %
Advertising expenses | 1,164 |  |  | 1,314 |  |  | (11.4) | % |  | 4,992 |  |  | 5,183 |  |  | (3.7) | %
Other expenses | 1,971 |  |  | 1,472 |  |  | 33.9 | % |  | 7,040 |  |  | 6,026 |  |  | 16.8 | %
Total property operating expenses | 53,618 |  |  | 51,283 |  |  | 4.6 | % |  | 217,061 |  |  | 204,911 |  |  | 5.9 | %
Combined same-store portfolio NOI | $ | 97,774 |  |  | $ | 86,544 |  |  | 13.0 | % |  | $ | 370,716 |  |  | $ | 326,186 |  |  | 13.7 | %

Combined same-store portfolio NOI margin | 64.6 | % |  | 62.8 | % |  | 1.8 | % |  | 63.1 | % |  | 61.4 | % |  | 1.7 | %
Average occupancy | 93.8 | % |  | 96.0 | % |  | (2.2) | % |  | 94.7 | % |  | 96.0 | % |  | (1.3) | %

Average effective monthly rent, per unit | $ | 1,514 |  |  | $ | 1,349 |  |  | 12.2 | % |  | $ | 1,446 |  |  | $ | 1,291 |  |  | 12.0 | %
Reconciliation of combined same-store portfolio NOI to net income (loss):
Combined same-store portfolio NOI | $ | 97,774 |  |  | $ | 86,544 |  |  |  |  | $ | 370,716 |  |  | $ | 326,186 |  |  |
Combined non same-store portfolio NOI | 7,269 |  |  | 8,393 |  |  |  |  | 24,423 |  |  | 26,666 |  |  |
Pre-Merger STAR Portfolio NOI | — |  |  | (45,086) |  |  |  |  | — |  |  | (196,612) |  |  |
Other revenue | 306 |  |  | 113 |  |  |  |  | 1,111 |  |  | 760 |  |  |
Property management expenses | (6,593) |  |  | (3,221) |  |  |  |  | (24,033) |  |  | (9,539) |  |  |
General and administrative expenses | (5,739) |  |  | (4,442) |  |  |  |  | (26,260) |  |  | (18,610) |  |  |
Depreciation and amortization expense | (52,161) |  |  | (26,210) |  |  |  |  | (252,849) |  |  | (76,909) |  |  |
Casualty (losses) gains, net | 1,690 |  |  | — |  |  |  |  | 8,866 |  |  | (359) |  |  |
Interest expense | (23,337) |  |  | (10,757) |  |  |  |  | (86,955) |  |  | (36,401) |  |  |
Gain on sale (loss on impairment) of real estate assets, net | 17,044 |  |  | 76,179 |  |  |  |  | 111,756 |  |  | 87,671 |  |  |
Loss on extinguishment of debt | — |  |  | (10,261) |  |  |  |  | — |  |  | (10,261) |  |  |
Other income, net | 57 |  |  | — |  |  |  |  | 1,558 |  |  | — |  |  |
Gain (loss) from investments in unconsolidated real estate entities | 242 |  |  | — |  |  |  |  | (2,169) |  |  | — |  |  |
Merger and integration costs | (2,028) |  |  | (41,787) |  |  |  |  | (5,505) |  |  | (47,063) |  |  |
Net income (loss) | $ | 34,524 |  |  | $ | 29,465 |  |  |  |  | $ | 120,659 |  |  | $ | 45,529 |  |  |

(a)Combined same-store portfolio consists of 112 properties, which represent 33,527 units.
(b)Included in the twelve months ended December 31, 2022 is a refund of previously paid employer payroll taxes of $0.7 million from a portion of an employee retention credit received.
18

NET OPERATING INCOME BRIDGE
TRAILING FIVE QUARTERS
Dollars in thousands

| For the Three Months Ended
| Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Rental and other property revenue |  |  |  |  |  |  |  |  |
Combined same-store portfolio (a) | $ | 151,392 |  |  | $ | 150,011 |  |  | $ | 145,611 |  |  | $ | 140,763 |  |  | $ | 137,827 |
Combined non same-store portfolio | 11,101 |  |  | 10,289 |  |  | 9,032 |  |  | 9,214 |  |  | 13,431 |
Total rental and other property revenue | 162,493 |  |  | 160,300 |  |  | 154,643 |  |  | 149,977 |  |  | 151,258 |
Property operating expenses |  |  |  |  |  |  |  |  |
Combined same-store portfolio (a) | 53,618 |  |  | 55,970 |  |  | 55,348 |  |  | 52,125 |  |  | 51,283 |
Combined non same-store portfolio | 3,832 |  |  | 3,997 |  |  | 3,628 |  |  | 3,758 |  |  | 5,038 |
Total property operating expenses | 57,450 |  |  | 59,967 |  |  | 58,976 |  |  | 55,883 |  |  | 56,321 |
NOI |  |  |  |  |  |  |  |  |
Combined same-store portfolio (a) | 97,774 |  |  | 94,041 |  |  | 90,263 |  |  | 88,638 |  |  | 86,544 |
Combined non same-store portfolio | 7,269 |  |  | 6,292 |  |  | 5,404 |  |  | 5,456 |  |  | 8,393 |
Total property NOI | $ | 105,043 |  |  | $ | 100,333 |  |  | $ | 95,667 |  |  | $ | 94,094 |  |  | $ | 94,937 |
Reconciliation of NOI to net income (loss) |  |  |  |  |  |  |  |  |
Total property NOI | $ | 105,043 |  |  | $ | 100,333 |  |  | $ | 95,667 |  |  | $ | 94,094 |  |  | $ | 94,937 |
Pre-Merger STAR Portfolio NOI | — |  |  | — |  |  | — |  |  | — |  |  | (45,086) |
Other revenue | 306 |  |  | 300 |  |  | 120 |  |  | 385 |  |  | 113 |
Property management expenses | (6,593) |  |  | (5,744) |  |  | (6,139) |  |  | (5,556) |  |  | (3,221) |
General and administrative expenses | (5,739) |  |  | (5,625) |  |  | (6,968) |  |  | (7,928) |  |  | (4,442) |
Depreciation and amortization expense | (52,161) |  |  | (49,722) |  |  | (72,793) |  |  | (78,174) |  |  | (26,210) |
Casualty (losses) gains, net | 1,690 |  |  | 191 |  |  | 5,592 |  |  | 1,393 |  |  | — |
Interest expense | (23,337) |  |  | (22,093) |  |  | (20,994) |  |  | (20,531) |  |  | (10,757) |
Gain on sale (loss on impairment) of real estate assets, net | 17,044 |  |  | — |  |  | — |  |  | 94,712 |  |  | 76,179 |
Loss on extinguishment of debt | — |  |  | — |  |  | — |  |  | — |  |  | (10,261) |
Other income, net | 57 |  |  | 765 |  |  | 294 |  |  | 443 |  |  | — |
Gain (loss) from unconsolidated real estate entities | 242 |  |  | (1,477) |  |  | (871) |  |  | (63) |  |  | — |
Merger and integration costs | (2,028) |  |  | (275) |  |  | (1,307) |  |  | (1,895) |  |  | (41,787) |
Net income (loss) | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |  |  | $ | 29,465 |

(a)Combined same-store portfolio consists of 112 properties, which represent 33,527 units.
19

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET
THREE MONTHS ENDED DECEMBER 31, 2022 AND 2021
Dollars in thousands, except rent per unit

|  |  |  |  |  | Rental and Other Property Revenue |  | Property Operating Expenses |  | Net Operating Income |  | Average Occupancy |  | Average Effective Monthly Rent per Unit
Market |  | Number of Properties |  | Units |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change
Atlanta, GA |  | 13 |  | 5,180 |  | $ | 23,610 |  |  | $ | 21,875 |  |  | 7.9 | % |  | $ | 8,460 |  |  | $ | 7,484 |  |  | 13.0 | % |  | $ | 15,146 |  |  | $ | 14,391 |  |  | 5.3 | % |  | 92.6 | % |  | 96.0 | % |  | (3.4) | % |  | $ | 1,615 |  |  | $ | 1,420 |  |  | 13.7 | %
Dallas, TX |  | 13 |  | 3,685 |  | 19,564 |  |  | 17,696 |  |  | 10.6 | % |  | 7,946 |  |  | 7,446 |  |  | 6.7 | % |  | 11,618 |  |  | 10,251 |  |  | 13.3 | % |  | 94.2 | % |  | 97.0 | % |  | (2.8) | % |  | 1,761 |  |  | 1,569 |  |  | 12.2 | %
Denver, CO |  | 9 |  | 2,292 |  | 11,884 |  |  | 10,586 |  |  | 12.3 | % |  | 3,755 |  |  | 3,908 |  |  | (3.9) | % |  | 8,129 |  |  | 6,678 |  |  | 21.7 | % |  | 94.3 | % |  | 94.9 | % |  | (0.6) | % |  | 1,685 |  |  | 1,539 |  |  | 9.4 | %
Columbus, OH |  | 10 |  | 2,510 |  | 10,391 |  |  | 9,361 |  |  | 11.0 | % |  | 3,503 |  |  | 3,402 |  |  | 3.0 | % |  | 6,888 |  |  | 5,959 |  |  | 15.6 | % |  | 95.3 | % |  | 96.2 | % |  | (0.9) | % |  | 1,348 |  |  | 1,219 |  |  | 10.6 | %
Raleigh - Durham, NC |  | 6 |  | 1,690 |  | 7,622 |  |  | 6,690 |  |  | 13.9 | % |  | 2,346 |  |  | 2,160 |  |  | 8.6 | % |  | 5,275 |  |  | 4,530 |  |  | 16.4 | % |  | 94.8 | % |  | 95.4 | % |  | (0.6) | % |  | 1,519 |  |  | 1,300 |  |  | 16.9 | %
Oklahoma City, OK |  | 8 |  | 2,147 |  | 7,497 |  |  | 7,050 |  |  | 6.3 | % |  | 2,423 |  |  | 2,571 |  |  | (5.8) | % |  | 5,075 |  |  | 4,479 |  |  | 13.3 | % |  | 92.2 | % |  | 96.3 | % |  | (4.1) | % |  | 1,152 |  |  | 1,038 |  |  | 11.0 | %
Indianapolis, IN |  | 7 |  | 1,979 |  | 7,953 |  |  | 7,179 |  |  | 10.8 | % |  | 2,915 |  |  | 2,793 |  |  | 4.4 | % |  | 5,038 |  |  | 4,386 |  |  | 14.9 | % |  | 93.6 | % |  | 96.2 | % |  | (2.6) | % |  | 1,317 |  |  | 1,180 |  |  | 11.7 | %
Houston, TX |  | 7 |  | 1,932 |  | 8,337 |  |  | 7,705 |  |  | 8.2 | % |  | 3,539 |  |  | 3,786 |  |  | (6.5) | % |  | 4,798 |  |  | 3,920 |  |  | 22.4 | % |  | 94.0 | % |  | 96.7 | % |  | (2.7) | % |  | 1,423 |  |  | 1,315 |  |  | 8.2 | %
Memphis, TN |  | 4 |  | 1,383 |  | 6,186 |  |  | 5,517 |  |  | 12.1 | % |  | 1,884 |  |  | 1,748 |  |  | 7.8 | % |  | 4,302 |  |  | 3,769 |  |  | 14.1 | % |  | 93.3 | % |  | 94.5 | % |  | (1.2) | % |  | 1,521 |  |  | 1,343 |  |  | 13.3 | %
Nashville, TN |  | 3 |  | 1,236 |  | 5,710 |  |  | 5,379 |  |  | 6.2 | % |  | 1,815 |  |  | 1,579 |  |  | 15.0 | % |  | 3,895 |  |  | 3,800 |  |  | 2.5 | % |  | 90.4 | % |  | 96.9 | % |  | (6.5) | % |  | 1,593 |  |  | 1,409 |  |  | 13.1 | %
Tampa-St. Petersburg, FL |  | 4 |  | 1,104 |  | 5,735 |  |  | 4,897 |  |  | 17.1 | % |  | 2,008 |  |  | 1,880 |  |  | 6.8 | % |  | 3,727 |  |  | 3,017 |  |  | 23.5 | % |  | 95.7 | % |  | 95.6 | % |  | 0.1 | % |  | 1,763 |  |  | 1,470 |  |  | 20.0 | %
Lexington, KY |  | 3 |  | 886 |  | 3,663 |  |  | 3,294 |  |  | 11.2 | % |  | 966 |  |  | 1,093 |  |  | (11.6) | % |  | 2,697 |  |  | 2,201 |  |  | 22.5 | % |  | 96.6 | % |  | 96.4 | % |  | 0.2 | % |  | 1,270 |  |  | 1,154 |  |  | 10.1 | %
Louisville, KY |  | 4 |  | 1,150 |  | 4,381 |  |  | 4,127 |  |  | 6.2 | % |  | 1,779 |  |  | 1,725 |  |  | 3.2 | % |  | 2,602 |  |  | 2,402 |  |  | 8.3 | % |  | 93.7 | % |  | 95.9 | % |  | (2.2) | % |  | 1,257 |  |  | 1,140 |  |  | 10.2 | %
Birmingham, AL |  | 2 |  | 1,074 |  | 4,654 |  |  | 4,337 |  |  | 7.3 | % |  | 2,136 |  |  | 1,722 |  |  | 24.0 | % |  | 2,518 |  |  | 2,615 |  |  | (3.7) | % |  | 90.3 | % |  | 94.4 | % |  | (4.1) | % |  | 1,473 |  |  | 1,359 |  |  | 8.4 | %
Myrtle Beach, SC - Wilmington, NC |  | 3 |  | 628 |  | 2,658 |  |  | 2,245 |  |  | 18.4 | % |  | 666 |  |  | 596 |  |  | 11.8 | % |  | 1,992 |  |  | 1,649 |  |  | 20.8 | % |  | 95.2 | % |  | 97.2 | % |  | (2.0) | % |  | 1,400 |  |  | 1,162 |  |  | 20.5 | %
Huntsville, AL |  | 2 |  | 599 |  | 2,684 |  |  | 2,544 |  |  | 5.5 | % |  | 810 |  |  | 643 |  |  | 26.0 | % |  | 1,875 |  |  | 1,901 |  |  | (1.4) | % |  | 95.0 | % |  | 97.4 | % |  | (2.4) | % |  | 1,486 |  |  | 1,369 |  |  | 8.5 | %
Cincinnati, OH |  | 2 |  | 542 |  | 2,570 |  |  | 2,347 |  |  | 9.5 | % |  | 843 |  |  | 938 |  |  | (10.2) | % |  | 1,727 |  |  | 1,409 |  |  | 22.6 | % |  | 94.1 | % |  | 97.0 | % |  | (2.9) | % |  | 1,544 |  |  | 1,382 |  |  | 11.7 | %
Charleston, SC |  | 2 |  | 518 |  | 2,447 |  |  | 2,286 |  |  | 7.0 | % |  | 833 |  |  | 1,008 |  |  | (17.4) | % |  | 1,614 |  |  | 1,278 |  |  | 26.3 | % |  | 95.3 | % |  | 95.7 | % |  | (0.4) | % |  | 1,585 |  |  | 1,391 |  |  | 13.9 | %
Greenville, SC |  | 1 |  | 702 |  | 2,430 |  |  | 2,263 |  |  | 7.4 | % |  | 889 |  |  | 843 |  |  | 5.5 | % |  | 1,541 |  |  | 1,419 |  |  | 8.6 | % |  | 95.0 | % |  | 95.6 | % |  | (0.6) | % |  | 1,234 |  |  | 1,103 |  |  | 11.9 | %
Chicago, IL |  | 1 |  | 374 |  | 1,978 |  |  | 1,872 |  |  | 5.7 | % |  | 736 |  |  | 747 |  |  | (1.5) | % |  | 1,242 |  |  | 1,125 |  |  | 10.4 | % |  | 94.4 | % |  | 94.4 | % |  | — | % |  | 1,746 |  |  | 1,638 |  |  | 6.6 | %
Charlotte, NC |  | 1 |  | 208 |  | 1,268 |  |  | 1,078 |  |  | 17.6 | % |  | 336 |  |  | 330 |  |  | 1.7 | % |  | 933 |  |  | 748 |  |  | 24.7 | % |  | 96.3 | % |  | 97.9 | % |  | (1.6) | % |  | 1,916 |  |  | 1,605 |  |  | 19.3 | %
Orlando, FL |  | 1 |  | 297 |  | 1,538 |  |  | 1,392 |  |  | 10.5 | % |  | 616 |  |  | 506 |  |  | 21.7 | % |  | 922 |  |  | 886 |  |  | 4.0 | % |  | 94.6 | % |  | 96.7 | % |  | (2.1) | % |  | 1,770 |  |  | 1,523 |  |  | 16.2 | %
San Antonio, TX |  | 1 |  | 306 |  | 1,466 |  |  | 1,375 |  |  | 6.6 | % |  | 624 |  |  | 655 |  |  | (4.8) | % |  | 842 |  |  | 720 |  |  | 16.9 | % |  | 97.6 | % |  | 96.9 | % |  | 0.7 | % |  | 1,506 |  |  | 1,415 |  |  | 6.4 | %
Asheville, NC |  | 1 |  | 252 |  | 1,097 |  |  | 966 |  |  | 13.6 | % |  | 295 |  |  | 267 |  |  | 10.6 | % |  | 802 |  |  | 699 |  |  | 14.7 | % |  | 96.8 | % |  | 98.5 | % |  | (1.7) | % |  | 1,475 |  |  | 1,240 |  |  | 18.9 | %
Fort Wayne, IN |  | 1 |  | 222 |  | 1,011 |  |  | 870 |  |  | 16.2 | % |  | 313 |  |  | 289 |  |  | 8.6 | % |  | 698 |  |  | 581 |  |  | 20.1 | % |  | 94.6 | % |  | 95.9 | % |  | (1.3) | % |  | 1,417 |  |  | 1,272 |  |  | 11.3 | %
Austin, TX |  | 1 |  | 256 |  | 1,258 |  |  | 1,199 |  |  | 4.9 | % |  | 563 |  |  | 585 |  |  | (3.9) | % |  | 696 |  |  | 613 |  |  | 13.5 | % |  | 87.3 | % |  | 95.7 | % |  | (8.4) | % |  | 1,741 |  |  | 1,541 |  |  | 12.9 | %
Norfolk, VA |  | 1 |  | 183 |  | 1,004 |  |  | 920 |  |  | 9.1 | % |  | 320 |  |  | 301 |  |  | 6.1 | % |  | 684 |  |  | 619 |  |  | 10.5 | % |  | 96.1 | % |  | 97.3 | % |  | (1.2) | % |  | 1,870 |  |  | 1,706 |  |  | 9.6 | %
Chattanooga, TN |  | 1 |  | 192 |  | 796 |  |  | 777 |  |  | 2.4 | % |  | 299 |  |  | 278 |  |  | 7.7 | % |  | 498 |  |  | 499 |  |  | (0.3) | % |  | 94.0 | % |  | 97.5 | % |  | (3.5) | % |  | 1,398 |  |  | 1,290 |  |  | 8.4 | %
Total / Weighted Average |  | 112 |  | 33,527 |  | $ | 151,392 |  |  | $ | 137,827 |  |  | 9.8 | % |  | $ | 53,618 |  |  | $ | 51,283 |  |  | 4.6 | % |  | $ | 97,774 |  |  | $ | 86,544 |  |  | 13.0 | % |  | 93.8 | % |  | 96.0 | % |  | (2.2) | % |  | $ | 1,514 |  |  | $ | 1,349 |  |  | 12.2 | %

20

COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET
TWELVE MONTHS ENDED DECEMBER 31, 2022 AND 2021
Dollars in thousands, except rent per unit

|  |  |  |  |  | Rental and Other Property Revenue |  | Property Operating Expenses |  | Net Operating Income |  | Average Occupancy |  | Average Effective Monthly Rent per Unit
Market |  | Number of Properties |  | Units |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change |  | 2022 |  | 2021 |  | % Change
Atlanta, GA |  | 13 |  | 5,180 |  | $ | 92,760 |  |  | $ | 84,286 |  |  | 10.1 | % |  | $ | 33,960 |  |  | $ | 29,813 |  |  | 13.9 | % |  | $ | 58,799 |  |  | $ | 54,470 |  |  | 7.9 | % |  | 93.8 | % |  | 96.4 | % |  | (2.6) | % |  | $ | 1,540 |  |  | $ | 1,351 |  |  | 14.0 | %
Dallas, TX |  | 13 |  | 3,685 |  | 75,272 |  |  | 67,910 |  |  | 10.8 | % |  | 32,020 |  |  | 30,464 |  |  | 5.1 | % |  | 43,251 |  |  | 37,447 |  |  | 15.5 | % |  | 95.2 | % |  | 96.4 | % |  | (1.2) | % |  | 1,678 |  |  | 1,509 |  |  | 11.2 | %
Denver, CO |  | 9 |  | 2,292 |  | 45,612 |  |  | 41,156 |  |  | 10.8 | % |  | 14,321 |  |  | 14,310 |  |  | 0.1 | % |  | 31,291 |  |  | 26,847 |  |  | 16.6 | % |  | 95.1 | % |  | 95.4 | % |  | (0.3) | % |  | 1,622 |  |  | 1,483 |  |  | 9.3 | %
Columbus, OH |  | 10 |  | 2,510 |  | 39,759 |  |  | 35,812 |  |  | 11.0 | % |  | 14,778 |  |  | 14,008 |  |  | 5.5 | % |  | 24,981 |  |  | 21,804 |  |  | 14.6 | % |  | 95.1 | % |  | 95.6 | % |  | (0.5) | % |  | 1,292 |  |  | 1,172 |  |  | 10.2 | %
Oklahoma City, OK |  | 8 |  | 2,147 |  | 29,564 |  |  | 26,983 |  |  | 9.6 | % |  | 10,046 |  |  | 10,065 |  |  | (0.2) | % |  | 19,519 |  |  | 16,919 |  |  | 15.4 | % |  | 94.7 | % |  | 96.4 | % |  | (1.7) | % |  | 1,103 |  |  | 990 |  |  | 11.5 | %
Raleigh - Durham, NC |  | 6 |  | 1,690 |  | 29,033 |  |  | 26,140 |  |  | 11.1 | % |  | 9,617 |  |  | 8,689 |  |  | 10.7 | % |  | 19,416 |  |  | 17,451 |  |  | 11.3 | % |  | 95.1 | % |  | 95.7 | % |  | (0.6) | % |  | 1,417 |  |  | 1,245 |  |  | 13.8 | %
Indianapolis, IN |  | 7 |  | 1,979 |  | 30,604 |  |  | 27,555 |  |  | 11.1 | % |  | 11,764 |  |  | 10,966 |  |  | 7.3 | % |  | 18,841 |  |  | 16,589 |  |  | 13.6 | % |  | 94.7 | % |  | 96.6 | % |  | (1.9) | % |  | 1,257 |  |  | 1,119 |  |  | 12.3 | %
Houston, TX |  | 7 |  | 1,932 |  | 32,391 |  |  | 30,434 |  |  | 6.4 | % |  | 14,963 |  |  | 14,836 |  |  | 0.9 | % |  | 17,428 |  |  | 15,598 |  |  | 11.7 | % |  | 94.4 | % |  | 96.5 | % |  | (2.1) | % |  | 1,386 |  |  | 1,289 |  |  | 7.6 | %
Memphis, TN |  | 4 |  | 1,383 |  | 23,832 |  |  | 21,437 |  |  | 11.2 | % |  | 7,903 |  |  | 7,300 |  |  | 8.3 | % |  | 15,929 |  |  | 14,137 |  |  | 12.7 | % |  | 93.4 | % |  | 95.9 | % |  | (2.5) | % |  | 1,461 |  |  | 1,271 |  |  | 15.0 | %
Nashville, TN |  | 3 |  | 1,236 |  | 22,625 |  |  | 20,612 |  |  | 9.8 | % |  | 7,586 |  |  | 7,414 |  |  | 2.3 | % |  | 15,039 |  |  | 13,198 |  |  | 13.9 | % |  | 94.2 | % |  | 96.4 | % |  | (2.2) | % |  | 1,513 |  |  | 1,346 |  |  | 12.5 | %
Tampa-St. Petersburg, FL |  | 4 |  | 1,104 |  | 21,928 |  |  | 18,520 |  |  | 18.4 | % |  | 8,127 |  |  | 7,339 |  |  | 10.7 | % |  | 13,801 |  |  | 11,181 |  |  | 23.4 | % |  | 94.7 | % |  | 95.0 | % |  | (0.3) | % |  | 1,657 |  |  | 1,386 |  |  | 19.5 | %
Birmingham, AL |  | 2 |  | 1,074 |  | 18,565 |  |  | 17,172 |  |  | 8.1 | % |  | 7,404 |  |  | 6,545 |  |  | 13.1 | % |  | 11,161 |  |  | 10,628 |  |  | 5.0 | % |  | 93.3 | % |  | 94.8 | % |  | (1.5) | % |  | 1,425 |  |  | 1,312 |  |  | 8.7 | %
Louisville, KY |  | 4 |  | 1,150 |  | 17,406 |  |  | 15,816 |  |  | 10.1 | % |  | 7,259 |  |  | 6,926 |  |  | 4.8 | % |  | 10,148 |  |  | 8,889 |  |  | 14.2 | % |  | 94.2 | % |  | 93.9 | % |  | 0.3 | % |  | 1,202 |  |  | 1,096 |  |  | 9.7 | %
Lexington, KY |  | 3 |  | 886 |  | 14,044 |  |  | 12,437 |  |  | 12.9 | % |  | 4,409 |  |  | 4,413 |  |  | (0.1) | % |  | 9,635 |  |  | 8,024 |  |  | 20.1 | % |  | 96.4 | % |  | 96.7 | % |  | (0.3) | % |  | 1,218 |  |  | 1,085 |  |  | 12.3 | %
Huntsville, AL |  | 2 |  | 599 |  | 10,531 |  |  | 9,916 |  |  | 6.2 | % |  | 3,113 |  |  | 2,577 |  |  | 20.8 | % |  | 7,418 |  |  | 7,339 |  |  | 1.1 | % |  | 95.5 | % |  | 97.6 | % |  | (2.1) | % |  | 1,440 |  |  | 1,322 |  |  | 8.9 | %
Myrtle Beach, SC - Wilmington, NC |  | 3 |  | 628 |  | 10,001 |  |  | 8,609 |  |  | 16.2 | % |  | 2,925 |  |  | 2,693 |  |  | 8.6 | % |  | 7,077 |  |  | 5,916 |  |  | 19.6 | % |  | 95.5 | % |  | 95.8 | % |  | (0.3) | % |  | 1,303 |  |  | 1,112 |  |  | 17.1 | %
Cincinnati, OH |  | 2 |  | 542 |  | 10,138 |  |  | 8,779 |  |  | 15.5 | % |  | 3,287 |  |  | 3,445 |  |  | (4.6) | % |  | 6,851 |  |  | 5,333 |  |  | 28.5 | % |  | 96.0 | % |  | 96.3 | % |  | (0.3) | % |  | 1,473 |  |  | 1,313 |  |  | 12.2 | %
Greenville, SC |  | 1 |  | 702 |  | 9,706 |  |  | 8,836 |  |  | 9.8 | % |  | 3,582 |  |  | 3,559 |  |  | 0.7 | % |  | 6,123 |  |  | 5,277 |  |  | 16.0 | % |  | 95.0 | % |  | 94.7 | % |  | 0.3 | % |  | 1,185 |  |  | 1,059 |  |  | 11.8 | %
Charleston, SC |  | 2 |  | 518 |  | 9,627 |  |  | 8,872 |  |  | 8.5 | % |  | 3,648 |  |  | 3,901 |  |  | (6.5) | % |  | 5,979 |  |  | 4,972 |  |  | 20.3 | % |  | 95.6 | % |  | 95.8 | % |  | (0.2) | % |  | 1,510 |  |  | 1,351 |  |  | 11.8 | %
Chicago, IL |  | 1 |  | 374 |  | 7,751 |  |  | 7,072 |  |  | 9.6 | % |  | 2,893 |  |  | 2,827 |  |  | 2.3 | % |  | 4,858 |  |  | 4,245 |  |  | 14.4 | % |  | 95.0 | % |  | 95.0 | % |  | — | % |  | 1,699 |  |  | 1,573 |  |  | 8.0 | %
Orlando, FL |  | 1 |  | 297 |  | 5,792 |  |  | 5,392 |  |  | 7.4 | % |  | 2,376 |  |  | 2,151 |  |  | 10.5 | % |  | 3,416 |  |  | 3,241 |  |  | 5.4 | % |  | 94.5 | % |  | 96.6 | % |  | (2.1) | % |  | 1,655 |  |  | 1,473 |  |  | 12.4 | %
San Antonio, TX |  | 1 |  | 306 |  | 5,800 |  |  | 5,103 |  |  | 13.7 | % |  | 2,439 |  |  | 2,496 |  |  | (2.3) | % |  | 3,361 |  |  | 2,607 |  |  | 28.9 | % |  | 96.7 | % |  | 95.4 | % |  | 1.3 | % |  | 1,481 |  |  | 1,340 |  |  | 10.5 | %
Charlotte, NC |  | 1 |  | 208 |  | 4,736 |  |  | 4,160 |  |  | 13.9 | % |  | 1,422 |  |  | 1,320 |  |  | 7.7 | % |  | 3,314 |  |  | 2,840 |  |  | 16.7 | % |  | 96.0 | % |  | 96.3 | % |  | (0.3) | % |  | 1,771 |  |  | 1,548 |  |  | 14.4 | %
Asheville, NC |  | 1 |  | 252 |  | 4,181 |  |  | 3,704 |  |  | 12.9 | % |  | 1,178 |  |  | 1,111 |  |  | 6.0 | % |  | 3,003 |  |  | 2,593 |  |  | 15.8 | % |  | 96.7 | % |  | 98.1 | % |  | (1.4) | % |  | 1,373 |  |  | 1,188 |  |  | 15.6 | %
Austin, TX |  | 1 |  | 256 |  | 5,108 |  |  | 4,525 |  |  | 12.9 | % |  | 2,303 |  |  | 2,213 |  |  | 4.1 | % |  | 2,805 |  |  | 2,312 |  |  | 21.3 | % |  | 93.5 | % |  | 94.2 | % |  | (0.7) | % |  | 1,648 |  |  | 1,465 |  |  | 12.5 | %
Norfolk, VA |  | 1 |  | 183 |  | 3,898 |  |  | 3,623 |  |  | 7.6 | % |  | 1,237 |  |  | 1,176 |  |  | 5.2 | % |  | 2,660 |  |  | 2,447 |  |  | 8.7 | % |  | 95.6 | % |  | 97.7 | % |  | (2.1) | % |  | 1,804 |  |  | 1,610 |  |  | 12.1 | %
Fort Wayne, IN |  | 1 |  | 222 |  | 3,834 |  |  | 3,315 |  |  | 15.7 | % |  | 1,241 |  |  | 1,090 |  |  | 13.8 | % |  | 2,593 |  |  | 2,225 |  |  | 16.6 | % |  | 95.2 | % |  | 97.0 | % |  | (1.8) | % |  | 1,367 |  |  | 1,208 |  |  | 13.2 | %
Chattanooga, TN |  | 1 |  | 192 |  | 3,279 |  |  | 2,921 |  |  | 12.3 | % |  | 1,260 |  |  | 1,264 |  |  | (0.3) | % |  | 2,019 |  |  | 1,657 |  |  | 21.9 | % |  | 96.0 | % |  | 97.7 | % |  | (1.7) | % |  | 1,375 |  |  | 1,204 |  |  | 14.2 | %
Total / Weighted Average |  | 112 |  | 33,527 |  | $ | 587,777 |  |  | $ | 531,097 |  |  | 10.7 | % |  | $ | 217,061 |  |  | $ | 204,911 |  |  | 5.9 | % |  | $ | 370,716 |  |  | $ | 326,186 |  |  | 13.7 | % |  | 94.7 | % |  | 96.0 | % |  | (1.3) | % |  | $ | 1,446 |  |  | $ | 1,291 |  |  | 12.0 | %

21

TOTAL PORTFOLIO NOI EXPOSURE BY MARKET
Dollars in thousands, except rent per unit

|  |  |  |  |  |  |  |  |  | For the Three Months Ended December 31, 2022
Market |  | Number of Properties |  | Units |  | Gross Real Estate Assets |  | Period End Occupancy |  | Average Effective Monthly Rent per Unit |  | NOI |  | % of NOI
Atlanta, GA |  | 13 |  | 5,180 |  | $ | 1,061,732 |  |  | 92.5 | % |  | $ | 1,615 |  |  | $ | 15,146 |  |  | 14.5 | %
Dallas, TX |  | 14 |  | 4,007 |  | 849,346 |  |  | 93.7 | % |  | 1,770 |  |  | 12,766 |  |  | 12.2 | %
Denver, CO (a) |  | 9 |  | 2,292 |  | 605,320 |  |  | 94.1 | % |  | 1,685 |  |  | 8,129 |  |  | 7.8 | %
Columbus, OH |  | 10 |  | 2,510 |  | 367,204 |  |  | 95.0 | % |  | 1,348 |  |  | 6,888 |  |  | 6.6 | %
Indianapolis, IN (b) |  | 8 |  | 2,256 |  | 326,078 |  |  | 93.1 | % |  | 1,310 |  |  | 5,583 |  |  | 5.3 | %
Raleigh - Durham, NC |  | 6 |  | 1,690 |  | 255,291 |  |  | 94.4 | % |  | 1,519 |  |  | 5,275 |  |  | 5.0 | %
Oklahoma City, OK |  | 8 |  | 2,147 |  | 318,568 |  |  | 92.7 | % |  | 1,152 |  |  | 5,075 |  |  | 4.9 | %
Tampa-St. Petersburg, FL |  | 5 |  | 1,452 |  | 290,799 |  |  | 95.2 | % |  | 1,780 |  |  | 4,967 |  |  | 4.8 | %
Nashville, TN |  | 5 |  | 1,508 |  | 365,469 |  |  | 90.0 | % |  | 1,605 |  |  | 4,908 |  |  | 4.7 | %
Houston, TX |  | 7 |  | 1,932 |  | 322,075 |  |  | 94.5 | % |  | 1,423 |  |  | 4,798 |  |  | 4.6 | %
Memphis, TN |  | 4 |  | 1,383 |  | 159,297 |  |  | 94.3 | % |  | 1,521 |  |  | 4,302 |  |  | 4.1 | %
Charlotte, NC |  | 3 |  | 714 |  | 189,216 |  |  | 95.8 | % |  | 1,753 |  |  | 2,803 |  |  | 2.7 | %
Huntsville, AL |  | 3 |  | 873 |  | 189,691 |  |  | 93.8 | % |  | 1,515 |  |  | 2,749 |  |  | 2.6 | %
Lexington, KY |  | 3 |  | 886 |  | 159,840 |  |  | 94.9 | % |  | 1,270 |  |  | 2,697 |  |  | 2.6 | %
Louisville, KY |  | 4 |  | 1,150 |  | 148,564 |  |  | 93.2 | % |  | 1,257 |  |  | 2,602 |  |  | 2.5 | %
Birmingham, AL |  | 2 |  | 1,074 |  | 231,912 |  |  | 90.1 | % |  | 1,473 |  |  | 2,518 |  |  | 2.4 | %
Myrtle Beach, SC - Wilmington, NC |  | 3 |  | 628 |  | 67,766 |  |  | 95.4 | % |  | 1,400 |  |  | 1,992 |  |  | 1.9 | %
Cincinnati, OH |  | 2 |  | 542 |  | 122,104 |  |  | 93.7 | % |  | 1,544 |  |  | 1,727 |  |  | 1.7 | %
Charleston, SC |  | 2 |  | 518 |  | 81,208 |  |  | 95.0 | % |  | 1,585 |  |  | 1,614 |  |  | 1.5 | %
Greenville, SC |  | 1 |  | 702 |  | 123,165 |  |  | 95.0 | % |  | 1,234 |  |  | 1,541 |  |  | 1.5 | %
Chicago, IL |  | 1 |  | 374 |  | 90,127 |  |  | 95.2 | % |  | 1,746 |  |  | 1,242 |  |  | 1.2 | %
Orlando, FL |  | 1 |  | 297 |  | 50,140 |  |  | 95.9 | % |  | 1,770 |  |  | 922 |  |  | 0.9 | %
San Antonio, TX |  | 1 |  | 306 |  | 57,041 |  |  | 97.1 | % |  | 1,506 |  |  | 842 |  |  | 0.8 | %
Asheville, NC |  | 1 |  | 252 |  | 29,210 |  |  | 96.8 | % |  | 1,475 |  |  | 802 |  |  | 0.8 | %
Fort Wayne, IN |  | 1 |  | 222 |  | 44,140 |  |  | 93.2 | % |  | 1,417 |  |  | 698 |  |  | 0.7 | %
Austin, TX |  | 1 |  | 256 |  | 55,782 |  |  | 87.1 | % |  | 1,741 |  |  | 696 |  |  | 0.7 | %
Norfolk, VA |  | 1 |  | 183 |  | 54,057 |  |  | 94.5 | % |  | 1,870 |  |  | 684 |  |  | 0.7 | %
Chattanooga, TN |  | 1 |  | 192 |  | 36,942 |  |  | 94.8 | % |  | 1,398 |  |  | 498 |  |  | 0.5 | %
Total / Weighted Average |  | 120 |  | 35,526 |  | $ | 6,652,084 |  |  | 93.6 | % |  | $ | 1,522 |  |  | $ | 104,464 |  |  | 100.0 | %

(a)Includes properties in our Fort Collins, CO and Colorado Springs, CO markets.
(b)Includes one property classified as held for sale.
22

VALUE ADD SUMMARY BY MARKET
PROJECT LIFE TO DATE AS OF DECEMBER 31, 2022

|  |  |  |  |  |  | Renovation Costs per Unit (b) |  |
Market | Total Properties | Total Units To Be Renovated | Units Complete | Units Leased | Rent Premium (a) | % Rent Increase | Interior | Exterior | Total | ROI - Interior Costs (c) | ROI - Total Costs (d)
Ongoing |  |  |  |  |  |  |  |  |  |  |
Tampa-St. Petersburg, FL | 2 | 540 |  | 388 |  | 377 |  | $ | 329 |  | 29.0 | % | $ | 12,202 |  | $ | 774 |  | $ | 12,976 |  | 32.1 | % | 30.1 | %
Memphis, TN | 1 | 362 |  | 221 |  | 217 |  | 393 |  | 33.8 | % | 14,469 |  | 807 |  | 15,276 |  | 32.6 | % | 30.9 | %
Raleigh-Durham, NC | 1 | 318 |  | 166 |  | 152 |  | 189 |  | 15.2 | % | 15,017 |  | 1,046 |  | 16,063 |  | 15.1 | % | 14.2 | %
Indianapolis, IN | 1 | 236 |  | 106 |  | 87 |  | 243 |  | 20.9 | % | 13,028 |  | 805 |  | 13,833 |  | 22.4 | % | 21.1 | %
Columbus, OH | 2 | 546 |  | 151 |  | 136 |  | 269 |  | 22.5 | % | 13,137 |  | 831 |  | 13,968 |  | 24.4 | % | 23.0 | %
Atlanta, GA | 5 | 2,180 |  | 569 |  | 529 |  | 271 |  | 32.9 | % | 11,305 |  | 843 |  | 12,149 |  | 30.7 | % | 28.8 | %
Oklahoma City, OK | 2 | 541 |  | 131 |  | 125 |  | 136 |  | 9.6 | % | 17,268 |  | 748 |  | 18,016 |  | 9.5 | % | 9.0 | %
Austin, TX | 1 | 256 |  | 48 |  | 32 |  | 178 |  | 14.9 | % | 14,032 |  | 1,104 |  | 15,136 |  | 15.2 | % | 14.1 | %
Dallas, TX | 2 | 586 |  | 99 |  | 93 |  | 244 |  | 18.2 | % | 16,172 |  | 1,110 |  | 17,282 |  | 18.3 | % | 17.2 | %
Nashville, TN | 1 | 724 |  | 99 |  | 51 |  | 131 |  | 9.6 | % | 11,261 |  | 1,664 |  | 12,926 |  | 14.0 | % | 12.2 | %
Total / Weighted Average | 18 | 6,289 |  | 1,978 |  | 1,799 |  | $ | 269 |  | 24.5 | % | $13,155 | $ | 1,108 |  | $ | 14,263 |  | 24.5 | % | 22.6 | %
Future (e) |  |  |  |  |  |  |  |  |  |  |
Atlanta, GA | 2 |  | 644 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Dallas, TX | 3 |  | 876 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Tampa-St. Petersburg, FL | 1 |  | 348 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Oklahoma City, OK | 2 |  | 546 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Columbus, OH | 1 |  | 240 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total / Weighted Average | 9 |  | 2,654 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Completed (f) |  |  |  |  |  |  |  |  |  |  |
Raleigh-Durham, NC | 1 |  | 328 |  | 325 |  | 312 |  | $ | 183 |  | 15.2 | % | $ | 14,446 |  | $ | 2,108 |  | $ | 16,554 |  | 15.2 | % | 13.3 | %
Louisville, KY | 2 |  | 728 |  | 707 |  | 687 |  | 220 |  | 17.4 | % | 14,912 |  | 2,252 |  | 17,163 |  | 17.9 | % | 15.2 | %
Wilmington, NC | 1 |  | 288 |  | 271 |  | 260 |  | 69 |  | 11.1 | % | 7,381 |  | 56 |  | 7,436 |  | 11.3 | % | 11.2 | %
Atlanta, GA | 1 |  | 494 |  | 454 |  | 443 |  | 177 |  | 23.3 | % | 8,682 |  | 1,773 |  | 10,456 |  | 24.4 | % | 20.3 | %
Memphis, TN | 2 |  | 691 |  | 611 |  | 595 |  | 190 |  | 21.5 | % | 10,722 |  | 970 |  | 11,692 |  | 21.1 | % | 19.4 | %
Columbus, OH | 3 |  | 763 |  | 668 |  | 642 |  | 202 |  | 23.6 | % | 9,833 |  | 664 |  | 10,497 |  | 23.6 | % | 22.1 | %
Tampa-St. Petersburg, FL | 1 |  | 348 |  | 302 |  | 292 |  | 207 |  | 17.9 | % | 13,964 |  | 2,155 |  | 16,119 |  | 17.8 | % | 15.4 | %
Total / Weighted Average | 11 |  | 3,640 |  | 3,338 |  | 3,231 |  | $ | 188 |  | 19.5 | % | $ | 11,541 |  | $ | 1,429 |  | $ | 12,970 |  | 19.6 | % | 17.4 | %
Grand Total/Weighted Average | 38 |  | 12,583 |  | 5,316 |  | 5,030 |  | $ | 219 |  | 21.2 | % | $ | 12,142 |  | $ | 1,215 |  | $ | 13,357 |  | 21.6 | % | 19.6 | %
Sold/Held for Sale Properties (g) |  | 1,212 |  | 807 |  | 782 |  | $ | 154 |  | 19.2 | % | $ | 9,663 |  | $ | 2,145 |  | $ | 11,807 |  | 20.1 | % | 15.7 | %

(a) The rent premium reflects the per unit per month difference between the rental rate on the renovated unit and the market rent for an unrenovated unit as of the date presented, as determined by management consistent with its customary rent-setting and evaluation procedures.
(b)Includes all costs to renovate the interior units and make certain exterior renovations, including clubhouses and amenities. Interior costs per unit are based on units leased. Exterior costs per unit are based on total units at the community. Excludes overhead costs to support and manage the value add program as those costs relate to the entire program and cannot be allocated to individual projects.
(c)Calculated using the rent premium per unit per month, multiplied by 12, divided by the interior renovation costs per unit.
(d)Calculated using the rent premium per unit per month, multiplied by 12, divided by the total renovation costs per unit.
(e)Renovation project start dates are scheduled in Q1 2023 through Q3 2023.
(f)We consider value add projects completed when over 85% of the property’s units to be renovated have been completed. We continue to renovate remaining unrenovated units as leases expire until we complete 100% of the property’s units.
(g)Includes Meadows, Haverford, Crestmont and Creekside that were formerly a part of the value add program but were sold in October 2022 (with respect to Meadows), February 2022 (with respect to Haverford) and December 2021 (with respect to Crestmont and Creekside).
23

INVESTMENT AND DEVELOPMENT ACTIVITY
Dollars in thousands with respect to Contract Price and Price per Unit

2022 ACQUISITIONS

Property |  | Market |  | Units |  | Acquisition Date |  | Purchase Price |  | Price per Unit |  | Average Rent Per Unit at Acquisition
Views of Music City (Phase I) |  | Nashville, TN |  | 96 |  | April 6, 2022 |  | $ | 25,440 |  |  | $ | 265 |  |  | $ | 1,483 |
Cyan Mallard Creek |  | Charlotte, NC |  | 234 |  | August 16, 2022 |  | 80,000 |  |  | 342 |  |  | 1,701 |
The Enclave at Tranquility Lake |  | Tampa, FL |  | 348 |  | September 13, 2022 |  | 98,000 |  |  | 282 |  |  | 1,714 |
Total |  |  |  | 678 |  |  |  | $ | 203,440 |  |  | $ | 300 |  |  | $ | 1,677 |

2022 DISPOSITIONS

Property |  | Location |  | Units |  | Disposition Date |  | Sale Price |  | Price per Unit |  | Average Rent Per Unit at Disposition |  | Gain on sale (loss on impairment), net
Riverchase |  | Indianapolis, IN |  | 216 |  | January 18, 2022 |  | $ | 31,000 |  |  | $ | 144 |  |  | $ | 1,028 |  |  | $ | 12,901 |
Heritage Park |  | Oklahoma City, OK |  | 453 |  | February 2, 2022 |  | 48,500 |  |  | 107 |  |  | 767 |  |  | 31,366 |
Raindance |  | Oklahoma City, OK |  | 504 |  | February 2, 2022 |  | 47,500 |  |  | 94 |  |  | 669 |  |  | 33,748 |
Haverford |  | Louisville, KY |  | 160 |  | February 2, 2022 |  | 31,050 |  |  | 194 |  |  | 1,146 |  |  | 16,697 |
Meadows Apartments |  | Louisville, KY |  | 400 |  | October 26, 2022 |  | 57,000 |  |  | 143 |  |  | 1,154 |  |  | 20,573 |
Sycamore Terrace |  | Terre Haute, IN |  | 250 |  | December 6, 2022 |  | 42,000 |  |  | 168 |  |  | 1,349 |  |  | (3,529) |
Total |  |  |  | 1,983 |  |  |  | $ | 257,050 |  |  | $ | 130 |  |  | $ | 952 |  |  | $ | 111,756 |

ASSETS HELD FOR SALE AS OF DECEMBER 31, 2022

Property |  | Location |  | Units |  |
Eagle Lake Landing |  | Indianapolis, IN |  | 277 |  |

REAL ESTATE UNDER DEVELOPMENT

|  |  |  |  |  |  |  | Projected |  | Development Costs
Real estate Under Development |  | Location |  | Planned Units |  | Start Date |  | Initial Occupancy Date |  | Completion Date |  | Stabilization Date |  | Total Estimated |  | Total through Dec 31, 2022 |  | Remaining
Destination at Arista |  | Denver, CO |  | 325 |  | 3Q 2021 |  | 2Q 2023 |  | 4Q 2023 |  | 1Q 2025 |  | $ | 102,100 |  |  | $ | 82,416 |  |  | $ | 19,684 |
Flatirons Apartments |  | Denver, CO |  | 296 |  | 4Q 2022 |  | 3Q 2024 |  | 3Q 2024 |  | 2Q 2026 |  | 119,400 |  |  | 23,102 |  |  | 96,298 |
Total |  |  |  | 621 |  |  |  |  |  |  |  |  |  | $ | 221,500 |  |  | $ | 105,518 |  |  | $ | 115,982 |

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

Investments in Unconsolidated Real Estate Entities |  | Location |  | Units |  | Estimated Delivery Date |  | Total Construction Budget |  | Total Project Debt |  | IRT Equity Interest in JV |  | Remaining Expected IRT Investment |  | Carrying Value - IRT Investment |  |
Metropolis at Innsbrook |  | Richmond, VA |  | 402 |  | Q2 2023 |  | $ | 83,383 |  |  | $ | 64,000 |  |  | 84.8 | % |  | $ | — |  |  | $ | 17,331 |  |  |
Views of Music City II / The Crockett (a) |  | Nashville, TN |  | 408 |  | Q1 2023 |  | 66,079 |  |  | 43,275 |  |  | 50.0 | % |  | — |  |  | 11,363 |  |  |
Virtuoso (b) |  | Huntsville, AL |  | 178 |  | — |  | 57,491 |  |  | 39,281 |  |  | 90.0 | % |  | — |  |  | 14,422 |  |  |
Lakeline Station |  | Austin, TX |  | 378 |  | Q2 2024 |  | 109,524 |  |  | 76,500 |  |  | 90.0 | % |  | 4,850 |  |  | 25,292 |  |  |
The Mustang |  | Dallas, TX |  | 275 |  | Q3 2024 |  | 109,583 |  |  | 79,447 |  |  | 85.0 | % |  | 13,941 |  |  | 11,812 |  |  |
Total |  |  |  | 1,641 |  |  |  | $ | 426,060 |  |  | $ | 302,503 |  |  |  |  | $ | 18,791 |  |  | $ | 80,220 |  |  |

(a)Views of Music City phase II consists of 209 units with an estimated delivery date of Q4 2023. The Crockett, formerly known as the Jackson, consists of 199 units with an estimated delivery date of Q1 2023.
(b)The Virtuoso investment made on March 31, 2022 is an operating property.
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DEBT SUMMARY AS OF DECEMBER 31, 2022
Dollars in thousands

|  | Amount |  | Weighted Average Rate (d) |  | Type |  | Weighted Average Maturity (in years)
Debt: |  |  |  |  |  |  |  |
Unsecured revolver (a) |  | $ | 165,978 |  |  | 4.9 | % |  | Floating |  | 3.1
Unsecured term loans (b) |  | 600,000 |  |  | 5.1 | % |  | Floating |  | 4.5
Secured credit facilities (c) |  | 635,128 |  |  | 4.3 | % |  | Floating/Fixed |  | 5.9
Mortgages |  | 1,185,246 |  |  | 3.9 | % |  | Fixed |  | 5.2
Total Principal |  | 2,586,352 |  |  | 4.3 | % |  |  |  | 5.1
Loan premiums (discounts), net |  | 59,937 |  |  |  |  |  |  |
Unamortized deferred financing costs |  | (14,644) |  |  |  |  |  |  |
Total Debt |  | 2,631,645 |  |  |  |  |  |  |
Market Equity Capitalization, at period end |  | 3,880,432 |  |  |  |  |  |  |
Total Capitalization |  | $ | 6,512,077 |  |  |  |  |  |  |

(a)Unsecured revolver total capacity is $500,000, of which $165,978 was drawn as of December 31, 2022. The maturity date of borrowings under the unsecured revolver is January 31, 2026.
(b)Consists of a (i) $200,000 unsecured term loan with a maturity date of May 18, 2026 and a (ii) $400,000 unsecured term loan with a maturity date of January 28, 2028.
(c)Consists of a (i) $558,880 secured credit facility, three tranches of which, in an aggregate principal amount of $518,412, have a maturity date of August 1, 2028 and the fourth tranche of which, in the principal amount of $40,468, has a maturity date of March 1, 2030 and a (ii) $76,248 secured credit facility with a maturity date of July 1, 2030.
(d)Represents the weighted average of the contractual interest rates in effect as of quarter-end without regard to any interest rate swaps or collars. Our total weighted average effective interest rate during the quarter ended December 31, 2022, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization and discount accretion was 4.1%.
(e)As of December 31, 2022, we maintained the following hedges that have effectively fixed a portion of our floating rates debt.

Hedges: |  | Notional |  | Start |  | End |  | Swap Rate |  | Floor Rate |  | Cap Rate
Collar |  | $ | 100,000 |  |  | 11/17/2017 |  | 11/17/2024 |  | — |  |  | 1.25 | % |  | 2.00 | %
Collar |  | $ | 150,000 |  |  | 10/17/2018 |  | 1/17/2024 |  | — |  |  | 2.25 | % |  | 2.50 | %
Swap |  | $ | 150,000 |  |  | 6/17/2021 |  | 6/17/2026 |  | 2.176 | % |  | — |  |  | — |
Swap |  | $ | 150,000 |  |  | 5/17/2022 |  | 5/17/2027 |  | 0.985 | % |  | — |  |  | — |
Forward starting collar |  | $ | 100,000 |  |  | 1/17/2024 |  | 1/17/2028 |  | — |  |  | 1.50 | % |  | 2.50 | %
Forward starting collar |  | $ | 100,000 |  |  | 11/17/2024 |  | 1/17/2028 |  | — |  |  | 1.50 | % |  | 2.50 | %

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DEBT COVENANT AND UNENCUMBERED ASSET STATS AS OF DECEMBER 31, 2022
Dollars in thousands
Debt Covenant Summary (a)

|  | Requirement |  | Actual |  | Compliance
Consolidated leverage ratio |  | ≤ 60% |  | 33.3% |  | Yes
Consolidated fixed charge coverage ratio |  | ≥ 1.5x |  | 3.0x |  | Yes
Unsecured leverage ratio |  | ≤ 60% |  | 23.9% |  | Yes

(a)For a complete listing of all debt covenants along with definitions of each covenant calculation see the Fourth Amended, Restated and Consolidated Credit Agreement, which is included as exhibit 10.1 of the Form 8-K filed on July 27, 2022.
Encumbered & Unencumbered Statistics

|  | Total Units |  | % of Total |  | Gross Assets |  | % of Total |  | Q4 2022 NOI |  | % of Total
Unencumbered assets |  | 18,164 |  |  | 51.1 | % |  | $ | 3,496,789 |  |  | 49.7 | % |  | $ | 53,837 |  |  | 51.5 | %
Encumbered assets |  | 17,362 |  |  | 48.9 | % |  | 3,538,113 |  |  | 50.3 | % |  | 50,627 |  |  | 48.5 | %
|  | 35,526 |  |  | 100.0 | % |  | $ | 7,034,902 |  |  | 100.0 | % |  | $ | 104,464 |  |  | 100.0 | %

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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 occupied units for the reporting period divided by the average of total units available for rent for the reporting period.
EBITDA and Adjusted EBITDA
Each of EBITDA and Adjusted EBITDA is a non-GAAP financial measure. EBITDA is defined as net income before interest expense including amortization of deferred financing costs, income tax expense, and depreciation and amortization expenses. Adjusted EBITDA is EBITDA before certain other non-cash or non-operating gains or losses related to items such as asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty (gains) losses, merger and integration costs, and income (loss) from investments in unconsolidated real estate entities. We consider each of EBITDA and Adjusted EBITDA to be an appropriate supplemental measure of performance because it eliminates interest, income taxes, depreciation and amortization, and other non-cash or non-operating gains and losses, which permits investors to view income from operations without these non-cash or non-operating items. Our calculation of Adjusted EBITDA differs from the methodology used for calculating Adjusted EBITDA by certain other REITs and, accordingly, our Adjusted EBITDA may not be comparable to Adjusted EBITDA reported by other REITs.
Funds From Operations (“FFO”) and Core Funds From Operations (“CFFO”)
We believe that FFO and Core FFO (“CFFO”), each of which is a non-GAAP financial measure, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), as net income or loss allocated to common shares (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. While our calculation of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to FFO computations of such other REITs.
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 depreciation and amortization of other items not included in FFO, and other non-cash or non-operating gains or losses related to items such as casualty (gains) losses, abandoned deal costs, loan premium accretion and discount amortization, debt extinguishment costs, and merger and integration costs from the determination of FFO.
Our calculation of CFFO may differ from the methodology used for calculating CFFO by other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance, and believe they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash or non-recurring items that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and our operating performance between periods. Furthermore, although FFO, CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we believe that FFO and CFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. 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. Accordingly, FFO and CFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. Neither FFO nor CFFO should be considered as an alternative to net income or any other
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GAAP measurement as an indicator of our operating performance or as an alternative to cash flow from operating, investing, and financing activities as a measure of our liquidity.
Interest Coverage
Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.
Net Debt
Net debt, a non-GAAP financial measure, equals total consolidated debt less cash and cash equivalents and loan premiums and discounts. The following table provides a reconciliation of total consolidated debt to net debt (Dollars in thousands).
We present net debt and net debt to Adjusted EBITDA because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is limited because we may not always be able to use cash to repay debt on a dollar for dollar basis.

|  | As of
|  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Total debt |  | $ | 2,631,645 |  |  | $ | 2,713,625 |  |  | $ | 2,552,936 |  |  | $ | 2,542,088 |  |  | $ | 2,705,336 |
Less: cash and cash equivalents |  | (16,084) |  |  | (23,753) |  |  | (11,378) |  |  | (23,971) |  |  | (35,972) |
Less: loan discounts and premiums, net |  | (59,937) |  |  | (63,340) |  |  | (66,091) |  |  | (68,832) |  |  | (71,586) |
Total net debt |  | $ | 2,555,624 |  |  | $ | 2,626,532 |  |  | $ | 2,475,467 |  |  | $ | 2,449,285 |  |  | $ | 2,597,778 |

Net Operating Income
We believe that Net Operating Income (“NOI”), a non-GAAP financial measure, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding depreciation and amortization, casualty related costs and gains, property management expenses, general administrative expenses, interest expense, and net gains on sale of assets.
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
We review our same-store 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 are held-for-sale or have been sold are excluded from the same-store portfolio. Because our portfolio of properties changed significantly as a result of our STAR Merger, which closed on December 16, 2021, we may also present, as described below, information on the IRT Same-Store Portfolio, STAR Same-Store Portfolio and Combined Same-Store Portfolio.
IRT Same-Store Portfolio
IRT Same-Store Portfolio represents the 48 properties that IRT owned and consolidated as of January 1, 2021 and through December 31, 2022 (other than properties held for sale as of December 31, 2022).
STAR Same-Store Portfolio
STAR Same-Store Portfolio represents the 64 properties that STAR owned and consolidated as of January 1, 2021 and that, following the consummation of the Merger on December 16, 2021, continued to be owned and consolidated by IRT through December 31, 2022 (other than properties held for sale as of December 31, 2022).
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Combined Same-Store Portfolio
Combined Same-Store Portfolio represents the combination of the IRT Same-Store Portfolio and the STAR Same-Store Portfolio considered as a single portfolio of 112 properties which represent 33,527 units.
Combined Non Same-Store Portfolio
Combined Non Same-Store Portfolio represents the combination of five IRT non same-store properties and three STAR non same-store properties considered as a single non same-store portfolio of eight properties which represent 1,999 units acquired after January 1, 2021 (includes one property held for sale as of December 31, 2022).
Pre-Merger STAR Portfolio NOI
In order to reconcile Combined Same-Store Portfolio NOI to net income for periods prior to our December 16, 2021 merger with STAR, our reconciliation excludes NOI generated by the STAR Portfolio because IRT did not own these properties prior to December 16, 2021.
Total Gross Assets
Total Gross Assets equals total assets plus accumulated depreciation and accumulated amortization, including fully depreciated or amortized real estate and real estate related assets. The following table provides a reconciliation of total assets to total gross assets (dollars in thousands).

|  | As of
|  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022 |  | Dec 31, 2021
Total assets |  | $ | 6,532,095 |  |  | $ | 6,633,533 |  |  | $ | 6,386,634 |  |  | $ | 6,387,322 |  |  | $ | 6,506,696 |
Plus: accumulated depreciation (a) |  | 426,097 |  |  | 386,606 |  |  | 337,338 |  |  | 291,199 |  |  | 254,123 |
Plus: accumulated amortization |  | 76,710 |  |  | 77,141 |  |  | 77,062 |  |  | 52,856 |  |  | 24,829 |
Total gross assets |  | $ | 7,034,902 |  |  | $ | 7,097,280 |  |  | $ | 6,801,034 |  |  | $ | 6,731,377 |  |  | $ | 6,785,648 |

(a)Includes accumulated depreciation associated with real estate held for sale.
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APPENDIX A
COMBINED SAME-STORE PORTFOLIO NET OPERATING INCOME
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2022 and 2021
Dollars in thousands, except per unit data

| IRT Same-Store Portfolio (a) |  | STAR Same-Store Portfolio (b) |  | Combined Same-Store Portfolio (c)
| Q4 2022 | Q4 2021 | % Change |  | Q4 2022 | Q4 2021 | % Change |  | Q4 2022 | Q4 2021 | % Change
Revenue: |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenue | $57,648 |  | 51,783 |  | 11.3 | % |  | 93,744 |  | $86,044 |  | 8.9 | % |  | $151,392 |  | $137,827 |  | 9.8 | %
Property Operating Expenses: |  |  |  |  |  |  |  |  |  |
Real estate taxes | 6,164 |  | 5,252 |  | 17.4 | % |  | 12,646 |  | 11,156 |  | 13.4 | % |  | 18,810 |  | 16,408 |  | 14.6 | %
Property insurance | 1,259 |  | 1,060 |  | 18.8 | % |  | 2,009 |  | 1,946 |  | 3.2 | % |  | 3,268 |  | 3,006 |  | 8.7 | %
Personnel expenses | 4,537 |  | 4,298 |  | 5.6 | % |  | 7,277 |  | 7,833 |  | (7.1) | % |  | 11,814 |  | 12,131 |  | (2.6) | %
Utilities | 2,828 |  | 2,559 |  | 10.5 | % |  | 4,883 |  | 4,458 |  | 9.5 | % |  | 7,711 |  | 7,017 |  | 9.9 | %
Repairs and maintenance | 1,295 |  | 1,461 |  | (11.4) | % |  | 2,618 |  | 3,744 |  | (30.1) | % |  | 3,913 |  | 5,205 |  | (24.8) | %
Contract services | 1,948 |  | 1,752 |  | 11.2 | % |  | 3,019 |  | 2,978 |  | 1.4 | % |  | 4,967 |  | 4,730 |  | 5.0 | %
Advertising expenses | 481 |  | 454 |  | 5.9 | % |  | 683 |  | 860 |  | (20.6) | % |  | 1,164 |  | 1,314 |  | (11.4) | %
Other expenses | 834 |  | 591 |  | 41.1 | % |  | 1,137 |  | 881 |  | 29.1 | % |  | 1,971 |  | 1,472 |  | 33.9 | %
Total property operating expenses | 19,346 |  | 17,427 |  | 11.0 | % |  | 34,272 |  | 33,856 |  | 1.2 | % |  | 53,618 |  | 51,283 |  | 4.6 | %
Same-store NOI (a) | $38,302 |  | 34,356 |  | 11.5 | % |  | 59,472 |  | $52,188 |  | 14.0 | % |  | $97,774 |  | $86,544 |  | 13.0 | %

Same-store NOI margin | 66.4 | % | 66.3 | % | 0.1 | % |  | 63.4 | % | 60.7 | % | 2.8 | % |  | 64.6 | % | 62.8 | % | 1.8 | %
Average occupancy | 94.2 | % | 96.0 | % | (1.8) | % |  | 93.5 | % | 96.1 | % | (2.6) | % |  | 93.8 | % | 96.0 | % | (2.2) | %

Average effective monthly rent, per unit | $ | 1,483 |  | $ | 1,289 |  | 15.0 | % |  | $ | 1,534 |  | $ | 1,387 |  | 10.6 | % |  | $ | 1,514 |  | $ | 1,349 |  | 12.2 | %

| IRT Same-Store Portfolio (a) |  | STAR Same-Store Portfolio (b) |  | Combined Same-Store Portfolio (c)
| YTD 2022 | YTD 2021 | % Change |  | YTD 2022 | YTD 2021 | % Change |  | YTD 2022 | YTD 2021 | % Change
Revenue: |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenue | $221,512 |  | 199,330 |  | 11.1 | % |  | 366,265 |  | $331,767 |  | 10.4 | % |  | $587,777 |  | $531,097 |  | 10.7 | %
Property Operating Expenses: |  |  |  |  |  |  |  |  |  |
Real estate taxes | 24,779 |  | 23,339 |  | 6.2 | % |  | 50,209 |  | 45,960 |  | 9.2 | % |  | 74,988 |  | 69,299 |  | 8.2 | %
Property insurance | 4,952 |  | 4,337 |  | 14.2 | % |  | 7,536 |  | 7,148 |  | 5.4 | % |  | 12,488 |  | 11,485 |  | 8.7 | %
Personnel expenses | 18,714 |  | 17,127 |  | 9.3 | % |  | 28,969 |  | 29,935 |  | (3.2) | % |  | 47,683 |  | 47,062 |  | 1.3 | %
Utilities | 10,881 |  | 9,907 |  | 9.8 | % |  | 19,003 |  | 18,093 |  | 5.0 | % |  | 29,884 |  | 28,000 |  | 6.7 | %
Repairs and maintenance | 7,482 |  | 7,054 |  | 6.1 | % |  | 12,514 |  | 12,201 |  | 2.6 | % |  | 19,996 |  | 19,255 |  | 3.8 | %
Contract services | 7,741 |  | 7,294 |  | 6.1 | % |  | 12,249 |  | 11,307 |  | 8.3 | % |  | 19,990 |  | 18,601 |  | 7.5 | %
Advertising expenses | 2,128 |  | 1,890 |  | 12.6 | % |  | 2,864 |  | 3,293 |  | (13.0) | % |  | 4,992 |  | 5,183 |  | (3.7) | %
Other expenses | 2,830 |  | 2,140 |  | 32.2 | % |  | 4,210 |  | 3,886 |  | 8.3 | % |  | 7,040 |  | 6,026 |  | 16.8 | %
Total property operating expenses | 79,507 |  | 73,088 |  | 8.8 | % |  | 137,554 |  | 131,823 |  | 4.3 | % |  | 217,061 |  | 204,911 |  | 5.9 | %
Same-store NOI (a) | $142,005 |  | 126,242 |  | 12.5 | % |  | 228,711 |  | $199,944 |  | 14.4 | % |  | $370,716 |  | $326,186 |  | 13.7 | %

Same-store NOI margin | 64.1 | % | 63.3 | % | 0.8 | % |  | 62.4 | % | 60.3 | % | 2.2 | % |  | 63.1 | % | 61.4 | % | 1.7 | %
Average occupancy | 94.7 | % | 95.9 | % | (1.2) | % |  | 94.7 | % | 96.1 | % | (1.4) | % |  | 94.7 | % | 96.0 | % | (1.3) | %

Average effective monthly rent, per unit | $ | 1,399 |  | $ | 1,232 |  | 13.6 | % |  | $ | 1,475 |  | $ | 1,329 |  | 11.0 | % |  | $ | 1,446 |  | $ | 1,291 |  | 12.0 | %

(a)IRT Same-Store Portfolio consists of 48 properties, which represent 13,110 units.
(b)STAR Same-Store Portfolio consists of 64 properties, which represent 20,417 units.
(c)Combined Same-Store Portfolio consists of 112 properties, which represent 33,527 units.
30