EX-99.2 3 irt-20230426xsupex992.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 | 11
Balance Sheets | 12
Statements of Operations, FFO & CORE FFO |
Trailing Five Quarters | 13
Three Months Ended March 31, 2023 and 2022 | 14
Adjusted EBITDA Reconciliations and Coverage Ratio |
Trailing Five Quarters | 15
Same-Store Portfolio Net Operating Income and NOI Bridge |
Trailing Five Quarters | 16
Three Months Ended March 31, 2023 and 2022 | 17
Same-Store Portfolio Net Operating Income by Market |
Three Months Ended March 31, 2023 and 2022 | 18
Total Portfolio NOI Exposure by Market | 19
Value Add Summary | 20
Investment & Development Activity | 21
Debt Summary | 22
Debt Covenant & Unencumbered Asset Statistics | 23
Definitions | 24

Independence Realty Trust
March 31, 2023
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, 2022, 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 First Quarter 2023 Financial Results
PHILADELPHIA – (BUSINESS WIRE) – April 26, 2023 — Independence Realty Trust, Inc. (“IRT”) (NYSE: IRT), a multifamily apartment REIT, today announced its first quarter 2023 financial results.
First Quarter Highlights
•Net income available to common shares of $8.6 million for the quarter ended March 31, 2023 compared to $74.6 million for the quarter ended March 31, 2022.
•Earnings per diluted share of $0.04 for the quarter ended March 31, 2023 compared to $0.34 for the quarter ended March 31, 2022.
•Same-store portfolio net operating income (“NOI”) growth of 8.2% for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022.
•Core Funds from Operations (“CFFO”) of $62.5 million for the quarter ended March 31, 2023 compared to $57.7 million for the quarter ended March 31, 2022. CFFO per share was $0.27 for the first quarter of 2023, as compared to $0.25 for the first quarter of 2022.
•Adjusted EBITDA of $87.6 million for the quarter ended March 31, 2023 compared to $81.4 million for the quarter ended March 31, 2022.
•Value add program completed renovations at 635 units during the quarter ended March 31, 2023, achieving a weighted average return on investment during the quarter of 17.8%.
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
“For the first quarter of 2023, we delivered an 8.2% increase in same-store NOI, led by blended lease over lease rental growth of 4.0%”, said Scott Schaeffer, Chairman and CEO of IRT. “ As the second quarter progresses, our focus on improving occupancy is materializing, as we’re nearing 95% occupancy at our same-store non-value add communities. In addition, the value add program continues to deliver outsized results and we are on track to achieve our volume targets for 2023 with 635 units renovated during the first quarter. We remain confident in the long-term benefits of our portfolio, as we continue to see strong fundamentals in our sunbelt markets and property class type.”
Same-Store Portfolio(1) Operating Results

| First Quarter 2023 Compared to First Quarter 2022 |  |
Rental and other property revenue | 7.5% increase |  |
Property operating expenses | 6.4% increase |  |
Net operating income (“NOI”) | 8.2% increase |  |
Portfolio average occupancy | 220 bps decrease to 93.1% |  |
Portfolio average rental rate | 10.8% increase to $1,530 |  |
NOI Margin | 40 bps increase to 63.3% |  |

(1)Same-store portfolio includes 116 properties, which represent 34,571 units.
5

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

| 1Q 2023 | 2Q 2023(3)
Same-Store Portfolio(1) |  |  |
Average Occupancy | 93.1 | % | 93.9 | % | (4)
Lease Over Lease Effective Rental Rate Growth:(2) |  |  |
New Leases | 3.1 | % | 4.2 | % |
Renewal Leases | 4.8 | % | 1.7 | % |
Blended | 4.0 | % | 2.4 | % |
Resident retention rate | 48.2 | % | 56.7 | % |
Same-Store Portfolio excluding Ongoing Value Add |  |  |
Average Occupancy | 93.8 | % | 94.4 | % | (4)
Lease Over Lease Effective Rental Rate Growth:(2) |  |  |
New Leases | 2.6 | % | 3.9 | % |
Renewal Leases | 4.2 | % | 1.7 | % |
Blended | 3.4 | % | 2.3 | % |
Resident retention rate | 48.5 | % | 56.9 | % |
Value Add (19 properties with Ongoing Value Add) |  |  |
Average Occupancy | 90.1 | % | 91.7 | % | (4)
Lease Over Lease Effective Rental Rate Growth:(2) |  |  |
New Leases | 5.4 | % | 5.4 | % |
Renewal Leases | 7.3 | % | 1.7 | % |
Blended | 6.3 | % | 2.9 | % |
Resident retention rate | 46.5 | % | 56.2 | % |

(1)Same-store portfolio 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)2Q 2023 average occupancy and resident retention rates are as through April 24, 2023. 2Q 2023 new lease and renewal rates are for leases commencing during 2Q 2023 that were signed as of April 24, 2023.
(4)As of April 24, 2023, same-store portfolio occupancy was 94.3%, same-store portfolio excluding ongoing value add occupancy was 94.7%, and value add occupancy was 92.3%.
Value Add Program
We completed renovations on 635 units during the quarter ended March 31, 2023, achieving a return on investment of 17.8%, with an average cost per unit renovated of $15,408, and average rent increase per renovated unit of $228. See the Value Add Summary page of our supplemental for additional information on our projects life to date as of March 31, 2023.
Investment Activity
Dispositions
On February 28, 2023, we sold Eagle Lake Landing apartments located in Indianapolis, Indiana for $37.3 million and recognized a gain on sale of $1.0 million. Proceeds from the sale were used to reduce indebtedness.
Capital Expenditures
For the three months ended March 31, 2023, recurring capital expenditures for the total portfolio were $4.1 million, or $117 per unit.
6

Capital Markets
New Swap Agreement
On March 16, 2023, we entered into an interest rate swap contract with a notional value of $200.0 million, a strike rate of 3.39% and a maturity date of March 17, 2030.
Dividend Distribution
On March 14, 2023, our Board of Directors declared a quarterly cash dividend of $0.14 per share of our common stock, which was paid on April 21, 2023 to stockholders of record at the close of business on March 31, 2023.
2023 EPS and CFFO Guidance
We affirm our EPS and CFFO per share and same-store NOI targets. 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)Gain on sale of real estate assets includes one asset sale that occurred during the first quarter of 2023.
7

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.

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 million to $40 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, 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)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.
8

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, April 27, 2023 from the investor relations section of the IRT website at www.irtliving.com or by dialing 1.833.470.1428, access code 034663. 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 until the next earnings release. A playback of the conference call can also be accessed telephonically until Thursday, May 4, 2023 by dialing 1.866.813.9403, access code 284598.
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, 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.
9

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, 2022, 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.
10

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

| For the Three Months Ended
| Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Selected Financial Information: |  |  |  |  |  |  |  |  |
Operating Statistics: |  |  |  |  |  |  |  |  |
Net income (loss) available to common shares | $8,648 |  | $33,631 |  | $16,223 |  | $(7,205) |  | $74,600
Earnings (loss) per share -- diluted | $0.04 |  | $0.15 |  | $0.07 |  | $(0.03) |  | $0.34
Rental and other property revenue | $161,135 |  | $162,493 |  | $160,300 |  | $154,643 |  | $149,977
Property operating expenses | $59,255 |  | $57,450 |  | $59,967 |  | $58,976 |  | $55,883
NOI | $101,880 |  | $105,043 |  | $100,333 |  | $95,667 |  | $94,094
NOI margin | 63.2% |  | 64.6% |  | 62.6% |  | 61.9% |  | 62.7%
Adjusted EBITDA | $87,594 |  | $93,017 |  | $89,264 |  | $83,228 |  | $81,375
CORE FFO per share | $0.27 |  | $0.29 |  | $0.28 |  | $0.26 |  | $0.25
Dividends per share | $0.14 |  | $0.14 |  | $0.14 |  | $0.14 |  | $0.12
CORE FFO payout ratio | 51.9% |  | 48.3% |  | 50.0% |  | 53.8% |  | 48.0%
Portfolio Data: |  |  |  |  |  |  |  |  |
Total gross assets | $7,045,306 |  | $7,034,902 |  | $7,097,280 |  | $6,801,034 |  | $6,731,377
Total number of operating properties | 119 |  | 120 |  | 122 |  | 120 |  | 119
Total units | 35,249 |  | 35,526 |  | 36,176 |  | 35,594 |  | 35,498
Period end occupancy | 94.1% |  | 93.6% |  | 94.6% |  | 95.7% |  | 95.4%
Total portfolio average occupancy | 93.1% |  | 93.9% |  | 94.2% |  | 95.5% |  | 95.2%
Total portfolio average effective monthly rent, per unit | $1,535 |  | $1,522 |  | $1,484 |  | $1,414 |  | $1,374
Same-store portfolio period end occupancy (a) | 94.1% |  | 93.6% |  | 94.6% |  | 95.4% |  | 95.6%
Same-store portfolio average occupancy (a) | 93.1% |  | 93.9% |  | 94.2% |  | 95.5% |  | 95.3%
Same-store portfolio average effective monthly rent, per unit (a) | $1,530 |  | $1,520 |  | $1,487 |  | $1,420 |  | $1,381
Capitalization: |  |  |  |  |  |  |  |  |
Total debt (b) | $2,628,632 |  | $2,631,645 |  | $2,713,625 |  | $2,552,936 |  | $2,542,088
Common share price, period end | $16.03 |  | $16.86 |  | $16.73 |  | $20.73 |  | $26.44
Market equity capitalization | $3,694,970 |  | $3,880,432 |  | $3,850,365 |  | $4,729,580 |  | $6,031,873
Total market capitalization | $6,323,602 |  | $6,512,077 |  | $6,563,990 |  | $7,282,516 |  | $8,573,961
Total debt/total gross assets | 37.3% |  | 37.4% |  | 38.2% |  | 37.5% |  | 37.8%
Net debt to Adjusted EBITDA (c) | 7.3x |  | 6.9x |  | 7.2x |  | 7.4x |  | 7.6x
Interest coverage | 4.0x |  | 4.0x |  | 4.0x |  | 4.0x |  | 4.0x
Common shares and OP Units: |  |  |  |  |  |  |  |  |
Shares outstanding | 224,556,870 |  | 224,064,940 |  | 224,056,179 |  | 222,060,280 |  | 221,163,391
OP units outstanding | 5,946,571 |  | 6,091,171 |  | 6,091,171 |  | 6,091,171 |  | 6,970,993
Common shares and OP units outstanding | 230,503,441 |  | 230,156,111 |  | 230,147,350 |  | 228,151,451 |  | 228,134,384
Weighted average common shares and OP units | 230,186,297 |  | 229,994,927 |  | 228,051,780 |  | 227,964,753 |  | 227,778,484

(a)Same-store portfolio consists of 116 properties, which represent 34,571 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 March 31, 2023, net debt to Adjusted EBITDA excluding adjustments for these items was 7.3x, 6.9x, 7.4x, 7.4x, and 7.5x, respectively.
11

BALANCE SHEETS
Dollars in thousands, except per share data

| As of
| Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Assets: |  |  |  |  |  |  |  |  |
Real estate held for investment, at cost | $ | 6,648,907 |  |  | $ | 6,615,243 |  |  | $ | 6,634,087 |  |  | $ | 6,428,482 |  |  | $ | 6,382,324 |
Less: accumulated depreciation | (475,001) |  |  | (425,034) |  |  | (379,171) |  |  | (329,903) |  |  | (283,666) |
Real estate held for investment, net | 6,173,906 |  |  | 6,190,209 |  |  | 6,254,916 |  |  | 6,098,579 |  |  | 6,098,658 |
Real estate held for sale | — |  |  | 35,777 |  |  | 82,178 |  |  | 81,818 |  |  | 80,992 |
Real estate under development | 124,983 |  |  | 105,518 |  |  | 86,763 |  |  | 61,777 |  |  | 48,959 |
Cash and cash equivalents | 12,448 |  |  | 16,084 |  |  | 23,753 |  |  | 11,378 |  |  | 23,971 |
Restricted cash | 22,385 |  |  | 27,933 |  |  | 35,829 |  |  | 31,017 |  |  | 26,789 |
Investment in unconsolidated real estate entities | 92,882 |  |  | 80,220 |  |  | 70,608 |  |  | 54,178 |  |  | 43,541 |
Other assets | 34,360 |  |  | 34,846 |  |  | 34,480 |  |  | 26,707 |  |  | 27,281 |
Derivative assets | 32,783 |  |  | 41,109 |  |  | 43,967 |  |  | 21,162 |  |  | 12,944 |
Intangible assets, net | — |  |  | 399 |  |  | 1,039 |  |  | 18 |  |  | 24,187 |
Total assets | $ | 6,493,747 |  |  | $ | 6,532,095 |  |  | $ | 6,633,533 |  |  | $ | 6,386,634 |  |  | $ | 6,387,322 |
Liabilities and Equity: |  |  |  |  |  |  |  |  |
Indebtedness, net | $ | 2,628,632 |  |  | $ | 2,631,645 |  |  | $ | 2,667,183 |  |  | $ | 2,506,375 |  |  | $ | 2,495,410 |
Indebtedness associated with real estate held for sale, net | — |  |  | — |  |  | 46,442 |  |  | 46,561 |  |  | 46,678 |
Accounts payable and accrued expenses | 105,873 |  |  | 109,677 |  |  | 126,310 |  |  | 98,173 |  |  | 81,498 |
Accrued interest payable | 7,979 |  |  | 7,713 |  |  | 11,019 |  |  | 6,891 |  |  | 6,955 |
Dividends payable | 32,232 |  |  | 32,189 |  |  | 32,188 |  |  | 31,907 |  |  | 27,345 |
Derivative liabilities | 2,283 |  |  | — |  |  | — |  |  | — |  |  | 128 |
Other liabilities | 11,813 |  |  | 13,004 |  |  | 13,816 |  |  | 15,077 |  |  | 15,921 |
Total liabilities | 2,788,812 |  |  | 2,794,228 |  |  | 2,896,958 |  |  | 2,704,984 |  |  | 2,673,935 |
Equity: |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
Preferred shares, $0.01 par value per share | — |  |  | — |  |  | — |  |  | — |  |  | — |
Common shares, $0.01 par value per share | 2,246 |  |  | 2,241 |  |  | 2,241 |  |  | 2,221 |  |  | 2,212 |
Additional paid in capital | 3,753,074 |  |  | 3,751,056 |  |  | 3,749,550 |  |  | 3,698,763 |  |  | 3,678,478 |
Accumulated other comprehensive income | 25,101 |  |  | 35,102 |  |  | 37,569 |  |  | 18,430 |  |  | 9,958 |
Accumulated deficit | (214,775) |  |  | (191,735) |  |  | (194,014) |  |  | (178,902) |  |  | (140,643) |
Total shareholders' equity | 3,565,646 |  |  | 3,596,664 |  |  | 3,595,346 |  |  | 3,540,512 |  |  | 3,550,005 |
Noncontrolling Interests | 139,289 |  |  | 141,203 |  |  | 141,229 |  |  | 141,138 |  |  | 163,382 |
Total equity | 3,704,935 |  |  | 3,737,867 |  |  | 3,736,575 |  |  | 3,681,650 |  |  | 3,713,387 |
Total liabilities and equity | $ | 6,493,747 |  |  | $ | 6,532,095 |  |  | $ | 6,633,533 |  |  | $ | 6,386,634 |  |  | $ | 6,387,322 |

12

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

| For the Three Months Ended
| Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Revenue: |  |  |  |  |  |  |  |  |
Rental and other property revenue | $ | 161,135 |  |  | $ | 162,493 |  |  | $ | 160,300 |  |  | $ | 154,643 |  |  | $ | 149,977 |
Other revenue | 239 |  | 306 |  | 300 |  | 120 |  | 385
Total revenue | 161,374 |  | 162,799 |  | 160,600 |  | 154,763 |  | 150,362
Expenses: |  |  |  |  |  |  |  |  |
Property operating expenses | 59,255 |  | 57,450 |  | 59,967 |  | 58,976 |  | 55,883
Property management expenses | 6,371 |  | 6,593 |  | 5,744 |  | 6,139 |  | 5,556
General and administrative expenses (a) | 8,154 |  | 5,739 |  | 5,625 |  | 6,968 |  | 7,928
Depreciation and amortization expense | 53,536 |  | 52,161 |  | 49,722 |  | 72,793 |  | 78,174
Casualty losses (gains), net | 151 |  | (1,690) |  | (191) |  | (5,592) |  | (1,393)
Total expenses | 127,467 |  | 120,253 |  | 120,867 |  | 139,284 |  | 146,148
Interest expense | (22,124) |  | (23,337) |  | (22,093) |  | (20,994) |  | (20,531)
Gain on sale of real estate assets, net | 985 |  | 17,044 |  | — |  | — |  | 94,712
Other income, net | 93 |  | 57 |  | 765 |  | 294 |  | 443
(Loss) gain from investments in unconsolidated real estate entities | (776) |  | 242 |  | (1,477) |  | (871) |  | (63)
Merger and integration costs | — |  | (2,028) |  | (275) |  | (1,307) |  | (1,895)
Restructuring costs | (3,213) |  |  | — |  |  | — |  |  | — |  |  | — |
Net income (loss) | $ | 8,872 |  |  | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |
(Income) loss allocated to noncontrolling interests | (224) |  | (893) |  | (430) |  | 194 |  | (2,280)
Net income (loss) available to common shares | $ | 8,648 |  |  | $ | 33,631 |  |  | $ | 16,223 |  |  | $ | (7,205) |  |  | $ | 74,600 |
EPS - basic | $ | 0.04 |  |  | $ | 0.15 |  |  | $ | 0.07 |  |  | $ | (0.03) |  |  | $ | 0.34 |
Weighted-average shares outstanding - Basic | 224,226,873 |  | 223,903,756 |  | 221,960,609 |  | 221,164,284 |  | 220,798,692
EPS - diluted | $ | 0.04 |  |  | $ | 0.15 |  |  | $ | 0.07 |  |  | $ | (0.03) |  |  | $ | 0.34 |
Weighted-average shares outstanding - Diluted | 225,088,659 |  | 224,915,128 |  | 222,867,546 |  | 221,164,284 |  | 222,045,286
Funds From Operations (FFO): |  |  |  |  |  |  |  |  |
Net income (loss) | $ | 8,872 |  |  | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |
Add-Back (Deduct): |  |  |  |  |  |  |  |  |
Real estate depreciation and amortization | 53,287 |  | 51,957 |  | 49,347 |  | 72,298 |  | 77,943
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities | 418 |  | 416 |  | 1,388 |  | 515 |  | —
Gain on sale of real estate assets, net, excluding prepayment gains | (314) |  | (16,635) |  | — |  | — |  | (94,712)
FFO | $ | 62,263 |  |  | $ | 70,262 |  |  | $ | 67,388 |  |  | $ | 65,414 |  |  | $ | 60,111 |
FFO per share | $ | 0.27 |  |  | $ | 0.31 |  |  | $ | 0.30 |  |  | $ | 0.29 |  |  | $ | 0.26 |
CORE Funds From Operations (CFFO): |  |  |  |  |  |  |  |  |
FFO | $ | 62,263 |  |  | $ | 70,262 |  |  | $ | 67,388 |  |  | $ | 65,414 |  |  | $ | 60,111 |
Add-Back (Deduct): |  |  |  |  |  |  |  |  |
Other depreciation and amortization | 249 |  | 204 |  | 375 |  | 495 |  | 231
Casualty losses (gains), net | 151 |  | (1,690) |  | (191) |  | (5,592) |  | (1,393)
Loan (premium accretion) discount amortization, net | (2,755) |  | (2,760) |  | (2,750) |  | (2,741) |  | (2,754)
Prepayment (gains) losses on asset dispositions | (670) |  | (409) |  | — |  | — |  | —
Other expense (income), net | 42 |  | (860) |  | (765) |  | (294) |  | (380)
Merger and integration costs | — |  | 2,028 |  | 275 |  | 1,307 |  | 1,895
Restructuring costs | 3,213 |  |  | — |  |  | — |  |  | — |  |  | — |
CFFO | $ | 62,493 |  |  | $ | 66,775 |  |  | $ | 64,332 |  |  | $ | 58,589 |  |  | $ | 57,710 |
CFFO per share | $ | 0.27 |  |  | $ | 0.29 |  |  | $ | 0.28 |  |  | $ | 0.26 |  |  | $ | 0.25 |
Weighted-average shares and units outstanding | 230,186,297 |  | 229,994,927 |  | 228,051,780 |  | 227,966,261 |  | 227,778,484

(a)Included in the three months ended March 31, 2023 and 2022 is $2.7 million and $2.4 million, respectively, of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.
13

STATEMENTS OF OPERATIONS, FFO & CORE FFO
THREE MONTHS ENDED MARCH 31, 2023 and 2022
Dollars in thousands, except per share data

| For the Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
Revenue: |  |  |  |  |  |  |
Rental and other property revenue | $ | 161,135 |  |  | $ | 149,977 |  |  |  |  |
Other revenue | 239 |  | 385 |  |  |  |
Total revenue | 161,374 |  | 150,362 |  |  |  |
Expenses: |  |  |  |  |  |  |
Property operating expenses | 59,255 |  | 55,883 |  |  |  |
Property management expenses | 6,371 |  | 5,556 |  |  |  |
General and administrative expenses (a) | 8,154 |  | 7,928 |  |  |  |
Depreciation and amortization expense | 53,536 |  | 78,174 |  |  |  |
Casualty losses (gains), net | 151 |  | (1,393) |  |  |  |
Total expenses | 127,467 |  | 146,148 |  |  |  |
Interest expense | (22,124) |  | (20,531) |  |  |  |
Gain on sale of real estate assets, net | 985 |  | 94,712 |  |  |  |
Other income, net | 93 |  | 443 |  |  |  |
Loss from investments in unconsolidated real estate entities | (776) |  | (63) |  |  |  |
Merger and integration costs | — |  | (1,895) |  |  |  |
Restructuring costs | (3,213) |  |  | — |  |  |  |  |
Net income (loss) | 8,872 |  |  | 76,880 |  |  |  |  |
(Income) loss allocated to noncontrolling interests | (224) |  | (2,280) |  |  |  |
Net income (loss) available to common shares | $ | 8,648 |  |  | $ | 74,600 |  |  |  |  |
EPS - basic | $ | 0.04 |  |  | $ | 0.34 |  |  |  |  |
Weighted-average shares outstanding - Basic | 224,226,873 |  | 220,798,692 |  |  |  |
EPS - diluted | $ | 0.04 |  |  | $ | 0.34 |  |  |  |  |
Weighted-average shares outstanding - Diluted | 225,088,659 |  | 222,045,286 |  |  |  |
Funds From Operations (FFO): |  |  |  |  |  |  |
Net income (loss) | $ | 8,872 |  |  | $ | 76,880 |  |  |  |  |
Add-Back (Deduct): |  |  |  |  |  |  |
Real estate depreciation and amortization | 53,287 |  | 77,943 |  |  |  |
Our share of real estate depreciation and amortization from investments in unconsolidated real estate entities | 418 |  | — |  |  |  |
Gain on sale of real estate assets, net, excluding prepayment gains | (314) |  | (94,712) |  |  |  |
FFO | $ | 62,263 |  |  | $ | 60,111 |  |  |  |  |
FFO per share | $ | 0.27 |  |  | $ | 0.26 |  |  |  |  |
CORE Funds From Operations (CFFO): |  |  |  |  |  |  |
FFO | $ | 62,263 |  |  | $ | 60,111 |  |  |  |  |
Add-Back (Deduct): |  |  |  |  |  |  |
Other depreciation and amortization | 249 |  | 231 |  |  |  |
Casualty losses (gains), net | 151 |  | (1,393) |  |  |  |
Loan (premium accretion) discount amortization, net | (2,755) |  | (2,754) |  |  |  |
Prepayment (gains) losses on asset dispositions | (670) |  | — |  |  |  |
Other expense (income), net | 42 |  | (380) |  |  |  |
Merger and integration costs | — |  | 1,895 |  |  |  |
Restructuring costs | 3,213 |  |  | — |  |  |  |  |
CFFO | $ | 62,493 |  |  | $ | 57,710 |  |  |  |  |
CFFO per share | $ | 0.27 |  |  | $ | 0.25 |  |  |  |  |
Weighted-average shares and units outstanding | 230,186,297 |  | 227,778,484 |  |  |  |

(a)Included in the three months ended March 31, 2023 and 2022 is $2.7 million and $2.4 million, respectively, of stock compensation expense recorded with respect to stock awards granted during the respective period to retirement eligible employees.
14

ADJUSTED EBITDA RECONCILIATION AND COVERAGE RATIO
Dollars in thousands

| Three Months Ended
ADJUSTED EBITDA: | Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Net income (loss) | $ | 8,872 |  |  | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |
Add-Back (Deduct): |  |  |  |  |  |  |  |  |
Interest expense | 22,124 |  |  | 23,337 |  |  | 22,093 |  |  | 20,994 |  |  | 20,531 |
Depreciation and amortization | 53,536 |  |  | 52,161 |  |  | 49,722 |  |  | 72,793 |  |  | 78,174 |
Casualty losses (gains), net | 151 |  |  | (1,690) |  |  | (191) |  |  | (5,592) |  |  | (1,393) |
Gain on sale of real estate assets, net | (985) |  |  | (17,044) |  |  | — |  |  | — |  |  | (94,712) |
Merger and integration costs | — |  |  | 2,028 |  |  | 275 |  |  | 1,307 |  |  | 1,895 |
Loss (gain) from investments in unconsolidated real estate entities | 776 |  |  | (242) |  |  | 1,477 |  |  | 1,125 |  |  | — |
Other income, net | (93) |  |  | (57) |  |  | (765) |  |  | — |  |  | — |
Restructuring costs | 3,213 |  |  | — |  |  | — |  |  | — |  |  | — |
Adjusted EBITDA | $ | 87,594 |  |  | $ | 93,017 |  |  | $ | 89,264 |  |  | $ | 83,228 |  |  | $ | 81,375 |
INTEREST COST: |  |  |  |  |  |  |  |  |
Interest expense | $ | 22,124 |  |  | $ | 23,337 |  |  | $ | 22,093 |  |  | $ | 20,994 |  |  | $ | 20,531 |
INTEREST COVERAGE: | 4.0x |  | 4.0x |  | 4.0x |  | 4.0x |  | 4.0x

15

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

| For the Three-Months Ended
| Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Revenue: |  |  |  |  |  |  |  |  |
Rental and other property revenue | $ | 156,813 |  |  | $ | 156,897 |  |  | $ | 155,515 |  |  | $ | 150,892 |  |  | $ | 145,826 |
Property Operating Expenses: |  |  |  |  |  |  |  |  |
Real estate taxes | 19,609 |  |  | 19,557 |  |  | 18,977 |  |  | 20,013 |  |  | 19,390 |
Property insurance | 3,191 |  |  | 3,359 |  |  | 3,582 |  |  | 3,050 |  |  | 2,842 |
Personnel expenses | 12,013 |  |  | 12,215 |  |  | 12,227 |  |  | 12,585 |  |  | 12,344 |
Utilities | 8,036 |  |  | 7,935 |  |  | 8,148 |  |  | 7,200 |  |  | 7,464 |
Repairs and maintenance | 5,882 |  |  | 3,973 |  |  | 6,097 |  |  | 6,135 |  |  | 4,275 |
Contract services | 5,480 |  |  | 5,131 |  |  | 5,440 |  |  | 5,254 |  |  | 4,867 |
Advertising expenses | 1,370 |  |  | 1,214 |  |  | 1,502 |  |  | 1,266 |  |  | 1,222 |
Other expenses | 1,929 |  |  | 2,094 |  |  | 1,920 |  |  | 1,823 |  |  | 1,656 |
Total property operating expenses | 57,510 |  |  | 55,478 |  |  | 57,893 |  |  | 57,326 |  |  | 54,060 |
Same-store portfolio NOI | $ | 99,303 |  |  | $ | 101,419 |  |  | $ | 97,622 |  |  | $ | 93,566 |  |  | $ | 91,766 |

Same-store portfolio NOI margin | 63.3 | % |  | 64.6 | % |  | 62.8 | % |  | 62.0 | % |  | 62.9 | %
Average occupancy | 93.1 | % |  | 93.9 | % |  | 94.2 | % |  | 95.5 | % |  | 95.3 | %

Average effective monthly rent, per unit | $ | 1,530 |  |  | $ | 1,520 |  |  | $ | 1,487 |  |  | $ | 1,420 |  |  | $ | 1,381 |

| For the Three Months Ended
| Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Rental and other property revenue |  |  |  |  |  |  |  |  |
Same-store portfolio | $ | 156,813 |  |  | $ | 156,897 |  |  | $ | 155,515 |  |  | $ | 150,892 |  |  | $ | 145,826 |
Non same-store portfolio | 4,322 |  |  | 5,596 |  |  | 4,785 |  |  | 3,751 |  |  | 4,151 |
Total rental and other property revenue | 161,135 |  |  | 162,493 |  |  | 160,300 |  |  | 154,643 |  |  | 149,977 |
Property operating expenses |  |  |  |  |  |  |  |  |
Same-store portfolio | 57,510 |  |  | 55,478 |  |  | 57,893 |  |  | 57,326 |  |  | 54,060 |
Non same-store portfolio | 1,745 |  |  | 1,972 |  |  | 2,074 |  |  | 1,650 |  |  | 1,823 |
Total property operating expenses | 59,255 |  |  | 57,450 |  |  | 59,967 |  |  | 58,976 |  |  | 55,883 |
NOI |  |  |  |  |  |  |  |  |
Same-store portfolio | 99,303 |  |  | 101,419 |  |  | 97,622 |  |  | 93,566 |  |  | 91,766 |
Non same-store portfolio | 2,577 |  |  | 3,624 |  |  | 2,711 |  |  | 2,101 |  |  | 2,328 |
Total property NOI | $ | 101,880 |  |  | $ | 105,043 |  |  | $ | 100,333 |  |  | $ | 95,667 |  |  | $ | 94,094 |

(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.
(b)See definitions at the end of this release for a reconciliation from GAAP net income (loss) to NOI.
16

SAME-STORE PORTFOLIO NET OPERATING INCOME (a)
THREE MONTHS ENDED MARCH 31, 2023 and 2022
Dollars in thousands, except per unit data

| For the Three Months Ended March 31, |  |
| 2023 |  | 2022 |  | % change |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenue | $ | 156,813 |  |  | $ | 145,826 |  |  | 7.5 | % |  |  |  |  |  |
Property Operating Expenses: |  |  |  |  |  |  |  |  |  |  |
Real estate taxes | 19,609 |  |  | 19,390 |  |  | 1.1 | % |  |  |  |  |  |
Property insurance | 3,191 |  |  | 2,842 |  |  | 12.3 | % |  |  |  |  |  |
Personnel expenses | 12,013 |  |  | 12,344 |  |  | (2.7) | % |  |  |  |  |  |
Utilities | 8,036 |  |  | 7,464 |  |  | 7.7 | % |  |  |  |  |  |
Repairs and maintenance | 5,882 |  |  | 4,275 |  |  | 37.6 | % |  |  |  |  |  |
Contract services | 5,480 |  |  | 4,867 |  |  | 12.6 | % |  |  |  |  |  |
Advertising expenses | 1,370 |  |  | 1,222 |  |  | 12.1 | % |  |  |  |  |  |
Other expenses | 1,929 |  |  | 1,656 |  |  | 16.5 | % |  |  |  |  |  |
Total property operating expenses | 57,510 |  |  | 54,060 |  |  | 6.4 | % |  |  |  |  |  |
Same-store portfolio NOI | $ | 99,303 |  |  | $ | 91,766 |  |  | 8.2 | % |  |  |  |  |  |

Same-store portfolio NOI margin | 63.3 | % |  | 62.9 | % |  | 0.4 | % |  |  |  |  |  |
Average occupancy | 93.1 | % |  | 95.3 | % |  | (2.2) | % |  |  |  |  |  |
Average effective monthly rent, per unit | $ | 1,530 |  |  | $ | 1,381 |  |  | 10.8 | % |  |  |  |  |  |

(a)Same-store portfolio consists of 116 properties, which represent 34,571 units.
17

SAME-STORE PORTFOLIO NET OPERATING INCOME BY MARKET
THREE MONTHS ENDED MARCH 31, 2023
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 |  | 2023 |  | 2022 |  | % Change |  | 2023 |  | 2022 |  | % Change |  | 2023 |  | 2022 |  | % Change |  | 2023 |  | 2022 |  | % Change |  | 2023 |  | 2022 |  | % Change
Atlanta, GA |  | 13 |  | 5,180 |  | $ | 23,671 |  |  | $ | 22,244 |  |  | 6.4 | % |  | $ | 8,404 |  |  | $ | 7,591 |  |  | 10.7 | % |  | $ | 15,270 |  |  | $ | 14,651 |  |  | 4.2 | % |  | 91.9 | % |  | 94.6 | % |  | (2.7) | % |  | $ | 1,637 |  |  | $ | 1,458 |  |  | 12.3 | %
Dallas, TX |  | 14 |  | 4,007 |  | 21,223 |  |  | 19,733 |  |  | 7.6 | % |  | 8,823 |  |  | 8,400 |  |  | 5.0 | % |  | 12,400 |  |  | 11,333 |  |  | 9.4 | % |  | 93.1 | % |  | 95.9 | % |  | (2.8) | % |  | 1,783 |  |  | 1,608 |  |  | 10.9 | %
Denver, CO |  | 9 |  | 2,292 |  | 11,910 |  |  | 10,856 |  |  | 9.7 | % |  | 3,531 |  |  | 3,337 |  |  | 5.8 | % |  | 8,379 |  |  | 7,519 |  |  | 11.4 | % |  | 93.8 | % |  | 95.5 | % |  | (1.7) | % |  | 1,698 |  |  | 1,555 |  |  | 9.2 | %
Columbus, OH |  | 10 |  | 2,510 |  | 10,228 |  |  | 9,499 |  |  | 7.7 | % |  | 3,612 |  |  | 3,644 |  |  | (0.9) | % |  | 6,616 |  |  | 5,855 |  |  | 13.0 | % |  | 94.5 | % |  | 95.8 | % |  | (1.3) | % |  | 1,356 |  |  | 1,234 |  |  | 9.9 | %
Raleigh - Durham, NC |  | 6 |  | 1,690 |  | 7,755 |  |  | 6,741 |  |  | 15.0 | % |  | 2,520 |  |  | 2,443 |  |  | 3.2 | % |  | 5,234 |  |  | 4,298 |  |  | 21.8 | % |  | 93.7 | % |  | 95.2 | % |  | (1.5) | % |  | 1,530 |  |  | 1,321 |  |  | 15.8 | %
Indianapolis, IN |  | 7 |  | 1,979 |  | 7,908 |  |  | 7,363 |  |  | 7.4 | % |  | 2,927 |  |  | 2,759 |  |  | 6.1 | % |  | 4,981 |  |  | 4,604 |  |  | 8.2 | % |  | 92.5 | % |  | 95.5 | % |  | (3.0) | % |  | 1,334 |  |  | 1,201 |  |  | 11.1 | %
Oklahoma City, OK |  | 8 |  | 2,147 |  | 7,528 |  |  | 7,084 |  |  | 6.3 | % |  | 2,560 |  |  | 2,452 |  |  | 4.4 | % |  | 4,967 |  |  | 4,631 |  |  | 7.3 | % |  | 91.7 | % |  | 95.4 | % |  | (3.7) | % |  | 1,163 |  |  | 1,054 |  |  | 10.3 | %
Nashville, TN |  | 4 |  | 1,412 |  | 6,545 |  |  | 6,388 |  |  | 2.5 | % |  | 2,218 |  |  | 2,231 |  |  | (0.6) | % |  | 4,327 |  |  | 4,157 |  |  | 4.1 | % |  | 90.3 | % |  | 95.7 | % |  | (5.4) | % |  | 1,596 |  |  | 1,457 |  |  | 9.5 | %
Houston, TX |  | 7 |  | 1,932 |  | 8,448 |  |  | 7,954 |  |  | 6.2 | % |  | 4,128 |  |  | 3,788 |  |  | 9.0 | % |  | 4,320 |  |  | 4,166 |  |  | 3.7 | % |  | 94.6 | % |  | 94.4 | % |  | 0.2 | % |  | 1,427 |  |  | 1,338 |  |  | 6.7 | %
Memphis, TN |  | 4 |  | 1,383 |  | 6,044 |  |  | 5,548 |  |  | 8.9 | % |  | 1,982 |  |  | 1,897 |  |  | 4.5 | % |  | 4,061 |  |  | 3,651 |  |  | 11.2 | % |  | 93.7 | % |  | 94.2 | % |  | (0.5) | % |  | 1,501 |  |  | 1,373 |  |  | 9.3 | %
Tampa-St. Petersburg, FL |  | 4 |  | 1,104 |  | 5,988 |  |  | 5,080 |  |  | 17.9 | % |  | 2,295 |  |  | 1,973 |  |  | 16.3 | % |  | 3,693 |  |  | 3,107 |  |  | 18.9 | % |  | 94.9 | % |  | 94.4 | % |  | 0.5 | % |  | 1,780 |  |  | 1,531 |  |  | 16.3 | %
Birmingham, AL |  | 2 |  | 1,074 |  | 4,533 |  |  | 4,603 |  |  | (1.5) | % |  | 1,746 |  |  | 1,637 |  |  | 6.7 | % |  | 2,787 |  |  | 2,965 |  |  | (6.0) | % |  | 89.4 | % |  | 93.8 | % |  | (4.4) | % |  | 1,475 |  |  | 1,397 |  |  | 5.6 | %
Huntsville, AL |  | 3 |  | 873 |  | 4,016 |  |  | 3,886 |  |  | 3.3 | % |  | 1,341 |  |  | 1,221 |  |  | 9.8 | % |  | 2,675 |  |  | 2,665 |  |  | 0.4 | % |  | 94.5 | % |  | 95.6 | % |  | (1.1) | % |  | 1,545 |  |  | 1,441 |  |  | 7.2 | %
Lexington, KY |  | 3 |  | 886 |  | 3,610 |  |  | 3,353 |  |  | 7.7 | % |  | 1,067 |  |  | 1,183 |  |  | (9.8) | % |  | 2,542 |  |  | 2,170 |  |  | 17.1 | % |  | 94.9 | % |  | 95.3 | % |  | (0.4) | % |  | 1,272 |  |  | 1,166 |  |  | 9.1 | %
Louisville, KY |  | 4 |  | 1,150 |  | 4,438 |  |  | 4,280 |  |  | 3.7 | % |  | 1,897 |  |  | 1,804 |  |  | 5.2 | % |  | 2,541 |  |  | 2,476 |  |  | 2.6 | % |  | 92.8 | % |  | 95.1 | % |  | (2.3) | % |  | 1,285 |  |  | 1,156 |  |  | 11.2 | %
Charlotte, NC |  | 2 |  | 480 |  | 2,635 |  |  | 2,271 |  |  | 16.0 | % |  | 805 |  |  | 727 |  |  | 10.7 | % |  | 1,830 |  |  | 1,544 |  |  | 18.5 | % |  | 95.4 | % |  | 96.0 | % |  | (0.6) | % |  | 1,758 |  |  | 1,524 |  |  | 15.4 | %
Myrtle Beach, SC - Wilmington, NC |  | 3 |  | 628 |  | 2,611 |  |  | 2,287 |  |  | 14.2 | % |  | 784 |  |  | 711 |  |  | 10.3 | % |  | 1,827 |  |  | 1,577 |  |  | 15.9 | % |  | 94.7 | % |  | 96.7 | % |  | (2.0) | % |  | 1,396 |  |  | 1,177 |  |  | 18.6 | %
Cincinnati, OH |  | 2 |  | 542 |  | 2,556 |  |  | 2,450 |  |  | 4.3 | % |  | 967 |  |  | 848 |  |  | 14.0 | % |  | 1,589 |  |  | 1,603 |  |  | (0.9) | % |  | 92.1 | % |  | 96.8 | % |  | (4.7) | % |  | 1,553 |  |  | 1,413 |  |  | 9.9 | %
Charleston, SC |  | 2 |  | 518 |  | 2,534 |  |  | 2,277 |  |  | 11.3 | % |  | 1,000 |  |  | 935 |  |  | 7.0 | % |  | 1,534 |  |  | 1,342 |  |  | 14.3 | % |  | 93.6 | % |  | 96.5 | % |  | (2.9) | % |  | 1,603 |  |  | 1,409 |  |  | 13.8 | %
Greenville, SC |  | 1 |  | 702 |  | 2,440 |  |  | 2,346 |  |  | 4.0 | % |  | 944 |  |  | 855 |  |  | 10.4 | % |  | 1,497 |  |  | 1,491 |  |  | 0.4 | % |  | 92.2 | % |  | 95.3 | % |  | (3.1) | % |  | 1,231 |  |  | 1,131 |  |  | 8.8 | %
Chicago, IL |  | 1 |  | 374 |  | 1,997 |  |  | 1,877 |  |  | 6.4 | % |  | 771 |  |  | 770 |  |  | 0.1 | % |  | 1,226 |  |  | 1,107 |  |  | 10.7 | % |  | 95.9 | % |  | 95.3 | % |  | 0.6 | % |  | 1,772 |  |  | 1,645 |  |  | 7.7 | %
Orlando, FL |  | 1 |  | 297 |  | 1,537 |  |  | 1,372 |  |  | 12.0 | % |  | 668 |  |  | 562 |  |  | 18.9 | % |  | 869 |  |  | 810 |  |  | 7.3 | % |  | 94.5 | % |  | 96.8 | % |  | (2.3) | % |  | 1,787 |  |  | 1,534 |  |  | 16.5 | %
Asheville, NC |  | 1 |  | 252 |  | 1,142 |  |  | 976 |  |  | 17.0 | % |  | 304 |  |  | 272 |  |  | 11.8 | % |  | 838 |  |  | 705 |  |  | 18.9 | % |  | 97.0 | % |  | 97.8 | % |  | (0.8) | % |  | 1,488 |  |  | 1,272 |  |  | 17.0 | %
San Antonio, TX |  | 1 |  | 306 |  | 1,454 |  |  | 1,444 |  |  | 0.7 | % |  | 673 |  |  | 616 |  |  | 9.3 | % |  | 780 |  |  | 828 |  |  | (5.8) | % |  | 95.7 | % |  | 96.9 | % |  | (1.2) | % |  | 1,483 |  |  | 1,455 |  |  | 1.9 | %
Fort Wayne, IN |  | 1 |  | 222 |  | 994 |  |  | 920 |  |  | 8.0 | % |  | 295 |  |  | 307 |  |  | (3.9) | % |  | 700 |  |  | 613 |  |  | 14.2 | % |  | 93.2 | % |  | 94.6 | % |  | (1.4) | % |  | 1,431 |  |  | 1,314 |  |  | 8.9 | %
Austin, TX |  | 1 |  | 256 |  | 1,310 |  |  | 1,258 |  |  | 4.1 | % |  | 611 |  |  | 524 |  |  | 16.6 | % |  | 699 |  |  | 733 |  |  | (4.6) | % |  | 89.0 | % |  | 96.8 | % |  | (7.8) | % |  | 1,788 |  |  | 1,567 |  |  | 14.1 | %
Norfolk, VA |  | 1 |  | 183 |  | 985 |  |  | 941 |  |  | 4.7 | % |  | 340 |  |  | 272 |  |  | 25.0 | % |  | 645 |  |  | 670 |  |  | (3.7) | % |  | 93.8 | % |  | 95.5 | % |  | (1.7) | % |  | 1,882 |  |  | 1,731 |  |  | 8.7 | %
Chattanooga, TN |  | 1 |  | 192 |  | 773 |  |  | 795 |  |  | (2.8) | % |  | 297 |  |  | 301 |  |  | (1.3) | % |  | 476 |  |  | 495 |  |  | (3.8) | % |  | 92.5 | % |  | 97.3 | % |  | (4.8) | % |  | 1,374 |  |  | 1,327 |  |  | 3.5 | %
Total / Weighted Average |  | 116 |  | 34,571 |  | $ | 156,813 |  |  | $ | 145,826 |  |  | 7.5 | % |  | $ | 57,510 |  |  | $ | 54,060 |  |  | 6.4 | % |  | $ | 99,303 |  |  | $ | 91,766 |  |  | 8.2 | % |  | 93.1 | % |  | 95.3 | % |  | (2.2) | % |  | $ | 1,530 |  |  | $ | 1,381 |  |  | 10.8 | %

18

TOTAL PORTFOLIO NET OPERATING INCOME EXPOSURE BY MARKET
Dollars in thousands, except rent per unit

|  |  |  |  |  |  |  |  |  | For the Three Months Ended March 31, 2023
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 |  | $ | 1,070,050 |  |  | 92.8 | % |  | $ | 1,637 |  |  | $ | 15,267 |  |  | 15.0 | %
Dallas, TX |  | 14 |  | 4,007 |  | 854,870 |  |  | 94.2 | % |  | 1,783 |  |  | 12,400 |  |  | 12.2 | %
Denver, CO (a) | -1 | 9 |  | 2,292 |  | 606,372 |  |  | 94.0 | % |  | 1,698 |  |  | 8,379 |  |  | 8.2 | %
Columbus, OH |  | 10 |  | 2,510 |  | 368,862 |  |  | 95.4 | % |  | 1,356 |  |  | 6,616 |  |  | 6.5 | %
Raleigh - Durham, NC |  | 6 |  | 1,690 |  | 255,624 |  |  | 94.8 | % |  | 1,530 |  |  | 5,234 |  |  | 5.2 | %
Indianapolis, IN |  | 7 |  | 1,979 |  | 290,841 |  |  | 94.6 | % |  | 1,334 |  |  | 4,981 |  |  | 4.9 | %
Oklahoma City, OK |  | 8 |  | 2,147 |  | 321,400 |  |  | 92.5 | % |  | 1,163 |  |  | 4,967 |  |  | 4.9 | %
Tampa-St. Petersburg, FL |  | 5 |  | 1,452 |  | 294,794 |  |  | 95.9 | % |  | 1,801 |  |  | 4,834 |  |  | 4.8 | %
Nashville, TN |  | 5 |  | 1,508 |  | 367,696 |  |  | 92.8 | % |  | 1,591 |  |  | 4,596 |  |  | 4.5 | %
Houston, TX |  | 7 |  | 1,932 |  | 323,339 |  |  | 95.4 | % |  | 1,427 |  |  | 4,320 |  |  | 4.3 | %
Memphis, TN |  | 4 |  | 1,383 |  | 160,176 |  |  | 94.2 | % |  | 1,501 |  |  | 4,061 |  |  | 4.0 | %
Birmingham, AL |  | 2 |  | 1,074 |  | 232,510 |  |  | 89.3 | % |  | 1,475 |  |  | 2,787 |  |  | 2.7 | %
Charlotte, NC |  | 3 |  | 714 |  | 189,350 |  |  | 95.4 | % |  | 1,756 |  |  | 2,675 |  |  | 2.6 | %
Huntsville, AL |  | 3 |  | 873 |  | 189,568 |  |  | 95.5 | % |  | 1,545 |  |  | 2,675 |  |  | 2.6 | %
Lexington, KY |  | 3 |  | 886 |  | 160,002 |  |  | 96.4 | % |  | 1,272 |  |  | 2,542 |  |  | 2.5 | %
Louisville, KY |  | 4 |  | 1,150 |  | 149,011 |  |  | 93.0 | % |  | 1,285 |  |  | 2,541 |  |  | 2.5 | %
Myrtle Beach, SC - Wilmington, NC |  | 3 |  | 628 |  | 68,527 |  |  | 95.4 | % |  | 1,396 |  |  | 1,827 |  |  | 1.8 | %
Cincinnati, OH |  | 2 |  | 542 |  | 122,355 |  |  | 93.9 | % |  | 1,553 |  |  | 1,589 |  |  | 1.6 | %
Charleston, SC |  | 2 |  | 518 |  | 81,314 |  |  | 95.9 | % |  | 1,603 |  |  | 1,534 |  |  | 1.5 | %
Greenville, SC |  | 1 |  | 702 |  | 123,319 |  |  | 95.0 | % |  | 1,231 |  |  | 1,497 |  |  | 1.5 | %
Chicago, IL |  | 1 |  | 374 |  | 90,195 |  |  | 95.7 | % |  | 1,772 |  |  | 1,226 |  |  | 1.2 | %
Orlando, FL |  | 1 |  | 297 |  | 50,174 |  |  | 93.2 | % |  | 1,787 |  |  | 869 |  |  | 0.9 | %
Asheville, NC |  | 1 |  | 252 |  | 29,233 |  |  | 97.6 | % |  | 1,488 |  |  | 838 |  |  | 0.8 | %
San Antonio, TX |  | 1 |  | 306 |  | 57,108 |  |  | 97.4 | % |  | 1,483 |  |  | 780 |  |  | 0.8 | %
Fort Wayne, IN |  | 1 |  | 222 |  | 44,221 |  |  | 91.0 | % |  | 1,431 |  |  | 700 |  |  | 0.7 | %
Austin, TX |  | 1 |  | 256 |  | 56,860 |  |  | 91.3 | % |  | 1,788 |  |  | 699 |  |  | 0.7 | %
Norfolk, VA |  | 1 |  | 183 |  | 54,131 |  |  | 98.4 | % |  | 1,882 |  |  | 645 |  |  | 0.6 | %
Chattanooga, TN |  | 1 |  | 192 |  | 37,005 |  |  | 92.7 | % |  | 1,374 |  |  | 476 |  |  | 0.5 | %
Total / Weighted Average |  | 119 |  | 35,249 |  | $ | 6,648,907 |  |  | 94.1 | % |  | $ | 1,535 |  |  | $ | 101,555 |  |  | 100.0 | %

(a)Includes properties in our Fort Collins, CO and Colorado Springs, CO markets.
19

VALUE ADD SUMMARY BY MARKET
PROJECT LIFE TO DATE AS OF MARCH 31, 2023

|  |  |  |  |  |  | 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 |  |  |  |  |  |  |  |  |  |  |
Memphis, TN | 1 | 362 |  | 239 |  | 242 |  | $ | 374 |  | 34.8 | % | $ | 14,683 |  | $ | 807 |  | $ | 15,490 |  | 30.6 | % | 29.0 | %
Raleigh-Durham, NC | 1 | 318 |  | 182 |  | 183 |  | 183 |  | 14.7 | % | 15,058 |  | 1,046 |  | 16,104 |  | 14.6 | % | 13.6 | %
Indianapolis, IN | 1 | 236 |  | 126 |  | 123 |  | 246 |  | 22.3 | % | 14,534 |  | 805 |  | 15,339 |  | 20.3 | % | 19.2 | %
Tampa-St. Petersburg, FL | 3 | 888 |  | 414 |  | 426 |  | 332 |  | 24.8 | % | 12,449 |  | 847 |  | 13,296 |  | 32.0 | % | 30.0 | %
Columbus, OH | 2 | 546 |  | 212 |  | 202 |  | 245 |  | 19.9 | % | 13,610 |  | 918 |  | 14,527 |  | 21.6 | % | 20.2 | %
Oklahoma City, OK | 2 | 541 |  | 210 |  | 208 |  | 117 |  | 14.5 | % | 15,660 |  | 670 |  | 16,330 |  | 9.0 | % | 8.6 | %
Atlanta, GA | 5 | 2,180 |  | 775 |  | 822 |  | 264 |  | 21.9 | % | 13,048 |  | 1,235 |  | 14,284 |  | 24.2 | % | 22.1 | %
Austin, TX | 1 | 256 |  | 78 |  | 72 |  | 217 |  | 14.4 | % | 15,028 |  | 1,104 |  | 16,132 |  | 17.3 | % | 16.1 | %
Dallas, TX | 3 | 845 |  | 198 |  | 205 |  | 276 |  | 18.1 | % | 16,959 |  | 1,544 |  | 18,503 |  | 19.6 | % | 17.9 | %
Nashville, TN | 1 | 724 |  | 159 |  | 124 |  | 165 |  | 11.5 | % | 14,036 |  | 1,664 |  | 15,700 |  | 14.1 | % | 12.6 | %
Total / Weighted Average | 20 | 6,896 |  | 2,593 |  | 2,607 |  | $ | 260 |  | 21.3 | % | $13,993 | $ | 1,148 |  | $ | 15,140 |  | 23.5 | % | 22.0 | %
Future (e) |  |  |  |  |  |  |  |  |  |  |
Atlanta, GA | 1 |  | 180 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Columbus, OH | 1 |  | 240 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Dallas, TX | 1 |  | 354 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Oklahoma City, OK | 2 |  | 546 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total / Weighted Average | 5 |  | 1,320 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Completed (f) |  |  |  |  |  |  |  |  |  |  |
Raleigh-Durham, NC | 1 |  | 328 |  | 325 |  | 323 |  | $ | 184 |  | 18.0 | % | $ | 14,648 |  | $ | 2,108 |  | $ | 16,756 |  | 15.1 | % | 13.2 | %
Louisville, KY | 2 |  | 728 |  | 710 |  | 763 |  | 213 |  | 24.0 | % | 15,345 |  | 2,173 |  | 17,518 |  | 16.7 | % | 14.6 | %
Wilmington, NC | 1 |  | 288 |  | 275 |  | 278 |  | 74 |  | 7.5 | % | 7,686 |  | 56 |  | 7,742 |  | 11.6 | % | 11.5 | %
Atlanta, GA | 1 |  | 494 |  | 454 |  | 451 |  | 175 |  | 17.5 | % | 9,102 |  | 1,773 |  | 10,875 |  | 23.0 | % | 19.3 | %
Memphis, TN | 2 |  | 691 |  | 618 |  | 612 |  | 190 |  | 18.8 | % | 11,450 |  | 974 |  | 12,424 |  | 19.9 | % | 18.4 | %
Tampa-St. Petersburg, FL | 1 |  | 348 |  | 306 |  | 305 |  | 208 |  | 18.3 | % | 13,988 |  | 2,155 |  | 16,143 |  | 17.9 | % | 15.5 | %
Columbus, OH | 3 |  | 763 |  | 670 |  | 669 |  | 203 |  | 22.4 | % | 10,114 |  | 666 |  | 10,779 |  | 24.1 | % | 22.6 | %
Total / Weighted Average | 11 |  | 3,640 |  | 3,358 |  | 3,401 |  | $ | 187 |  | 19.6 | % | $ | 11,922 |  | $ | 1,400 |  | $ | 13,277 |  | 19.0 | % | 16.9 | %
Grand Total/Weighted Average | 36 |  | 11,856 |  | 5,951 |  | 6,008 |  | $ | 238 |  | 20.3 | % | $ | 12,824 |  | $ | 1,235 |  | $ | 14,059 |  | 20.9 | % | 19.1 | %

(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 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).
20

INVESTMENT AND DEVELOPMENT ACTIVITY
Dollars in thousands

2023 DISPOSITIONS

Property |  | Location |  | Units |  | Disposition Date |  | Sale Price |  | Price per Unit |  | Average Rent Per Unit at Disposition |  | Gain on Sale of Real Estate, Net
Eagle Lake Landing |  | Indianapolis, IN |  | 277 |  | February 28, 2023 |  | $ | 37,300 |  |  | $ | 135 |  |  | $ | 1,184 |  |  | $ | 985 |

REAL ESTATE UNDER DEVELOPMENT

|  |  |  |  |  |  |  | Projected |  | Development Costs
Property |  | Location |  | Planned Units |  | Start Date |  | Initial Occupancy Date |  | Completion Date |  | Stabilization Date |  | Total Estimated |  | Total through 3/31/23 |  | Remaining
Destination at Arista |  | Denver, CO |  | 325 |  | 3Q 2021 |  | 2Q 2023 |  | 4Q 2023 |  | 1Q 2025 |  | $ | 102,100 |  |  | $ | 93,348 |  |  | $ | 8,752 |
Flatirons Apartments |  | Denver, CO |  | 296 |  | 4Q 2022 |  | 3Q 2024 |  | 3Q 2024 |  | 3Q 2026 |  | 119,800 |  |  | 31,636 |  |  | 88,164 |
Total |  |  |  | 621 |  |  |  |  |  |  |  |  |  | $ | 221,900 |  |  | $ | 124,983 |  |  | $ | 96,917 |

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

Property |  | Location |  | Units |  | Estimated Delivery Date |  | Total Construction Budget |  | Total Project Debt |  | IRT Equity Interest in JV |  | Remaining Expected IRT Investment |  | Carrying Value of IRT’s Investment
Metropolis at Innsbrook |  | Richmond, VA |  | 402 |  |  | Q2 2023 |  | $ | 85,883 |  |  | $ | 64,000 |  |  | 84.8 | % |  | $ | 1,048 |  |  | $ | 17,583 |
Views of Music City II / The Crockett (a) |  | Nashville, TN |  | 408 |  |  | Q3 2023 |  | 66,079 |  |  | 43,275 |  |  | 50.0 | % |  | — |  |  | 11,483 |
Virtuoso (b) |  | Huntsville, AL |  | 178 |  |  | — |  | 57,491 |  |  | 39,281 |  |  | 90.0 | % |  | — |  |  | 13,647 |
Lakeline Station |  | Austin, TX |  | 378 |  |  | Q3 2024 |  | 109,524 |  |  | 76,500 |  |  | 90.0 | % |  | — |  |  | 30,571 |
The Mustang |  | Dallas, TX |  | 275 |  |  | Q4 2024 |  | 109,583 |  |  | 79,447 |  |  | 85.0 | % |  | 6,382 |  |  | 19,598 |
Total |  |  |  | 1,641 |  |  |  |  | $ | 428,560 |  |  | $ | 302,503 |  |  |  |  | $ | 7,430 |  |  | $ | 92,882 |

(a)Views of Music City phase II consists of 209 units with an estimated delivery date of Q3 2023. The Crockett is an operating property consisting of 199 units delivered in Q1 2023. We have one year from the delivery date to exercise our purchase option on The Crockett.
(b)The Virtuoso investment made on March 31, 2022 is an operating property.
21

DEBT SUMMARY AS OF MARCH 31, 2023
Dollars in thousands

|  | Amount |  | Weighted Average Rate (d) |  | Type |  | Weighted Average Maturity (in years)
Debt: |  |  |  |  |  |  |  |
Unsecured revolver (a) |  | $ | 185,478 |  |  | 5.8 | % |  | Floating |  | 2.8
Unsecured term loans (b) |  | 600,000 |  |  | 5.7 | % |  | Floating |  | 4.3
Secured credit facilities (c) |  | 617,115 |  |  | 4.3 | % |  | Floating/Fixed |  | 5.7
Mortgages |  | 1,183,435 |  |  | 3.9 | % |  | Fixed |  | 4.9
Total Principal |  | 2,586,028 |  |  | 4.5 | % |  |  |  | 4.8
Loan premiums (discounts), net |  | 56,256 |  |  |  |  |  |  |
Unamortized deferred financing costs |  | (13,652) |  |  |  |  |  |  |
Total Consolidated Debt |  | 2,628,632 |  |  |  |  |  |  |
Market Equity Capitalization, at period end |  | 3,694,970 |  |  |  |  |  |  |
Total Capitalization |  | $ | 6,323,602 |  |  |  |  |  |  |

(a)Unsecured revolver total capacity is $500,000, of which $185,478 was drawn as of March 31, 2023. 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) $540,867 secured credit facility, three tranches of which, in an aggregate principal amount of $500,399, 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 March 31, 2023, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization, discount accretion, and interest capitalization was 4.1%.
(e)As of March 31, 2023, 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 |  | 2.18 | % |  | — |  |  | — |
Swap |  | $ | 150,000 |  |  | 5/17/2022 |  | 5/17/2027 |  | 0.99 | % |  | — |  |  | — |
Swap |  | $ | 200,000 |  |  | 3/17/2023 |  | 3/17/2030 |  | 3.39 | % |  | — |  |  | — |
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 MARCH 31, 2023
Dollars in thousands
Debt Covenant Summary (a)

|  | Requirement |  | Actual |  | Compliance
Consolidated leverage ratio |  | ≤ 60% |  | 33.6% |  | Yes
Consolidated fixed charge coverage ratio |  | ≥ 1.5x |  | 2.7x |  | Yes
Unsecured leverage ratio |  | ≤ 60% |  | 25.0% |  | 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 |  | Q1 2023 NOI |  | % of Total
Unencumbered assets |  | 18,164 |  |  | 51.5 | % |  | $ | 3,433,382 |  |  | 48.7 | % |  | $ | 51,663 |  |  | 50.9 | %
Encumbered assets |  | 17,085 |  |  | 48.5 | % |  | 3,611,924 |  |  | 51.3 | % |  | 49,892 |  |  | 49.1 | %
|  | 35,249 |  |  | 100.0 | % |  | $ | 7,045,306 |  |  | 100.0 | % |  | $ | 101,555 |  |  | 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, income (loss) from investments in unconsolidated real estate entities, and restructuring costs. 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 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, loan premium accretion and discount amortization, debt extinguishment costs, merger and integration costs, and restructuring 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
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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 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).

|  | As of
|  | Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Total debt |  | $ | 2,628,632 |  |  | $ | 2,631,645 |  |  | $ | 2,713,625 |  |  | $ | 2,552,936 |  |  | $ | 2,542,088 |
Less: cash and cash equivalents |  | (12,448) |  |  | (16,084) |  |  | (23,753) |  |  | (11,378) |  |  | (23,971) |
Less: loan discounts and premiums, net |  | (56,256) |  |  | (59,937) |  |  | (63,340) |  |  | (66,091) |  |  | (68,832) |
Total net debt |  | $ | 2,559,928 |  |  | $ | 2,555,624 |  |  | $ | 2,626,532 |  |  | $ | 2,475,467 |  |  | $ | 2,449,285 |

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.
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 interest expense, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expenses, net gains on sale of assets, merger and integration costs, and restructuring costs.
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.
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A reconciliation from GAAP net income (loss) to NOI is provided below:

| For the Three Months Ended
| Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Net income (loss) | $ | 8,872 |  |  | $ | 34,524 |  |  | $ | 16,653 |  |  | $ | (7,399) |  |  | $ | 76,880 |
Other revenue | (239) |  |  | (306) |  |  | (300) |  |  | (120) |  |  | (385) |
Property management expenses | 6,371 |  |  | 6,593 |  |  | 5,744 |  |  | 6,139 |  |  | 5,556 |
General and administrative expenses | 8,154 |  |  | 5,739 |  |  | 5,625 |  |  | 6,968 |  |  | 7,928 |
Depreciation and amortization expense | 53,536 |  |  | 52,161 |  |  | 49,722 |  |  | 72,793 |  |  | 78,174 |
Casualty losses (gains), net | 151 |  |  | (1,690) |  |  | (191) |  |  | (5,592) |  |  | (1,393) |
Interest expense | 22,124 |  |  | 23,337 |  |  | 22,093 |  |  | 20,994 |  |  | 20,531 |
Gain on sale of real estate assets, net | (985) |  |  | (17,044) |  |  | — |  |  | — |  |  | (94,712) |
Other income, net | (93) |  |  | (57) |  |  | (765) |  |  | (294) |  |  | (443) |
Loss (gain) from investments in unconsolidated real estate entities | 776 |  |  | (242) |  |  | 1,477 |  |  | 871 |  |  | 63 |
Merger and integration costs | — |  |  | 2,028 |  |  | 275 |  |  | 1,307 |  |  | 1,895 |
Restructuring costs | 3,213 |  |  | — |  |  | — |  |  | — |  |  | — |
NOI | $ | 101,880 |  |  | $ | 105,043 |  |  | $ | 100,333 |  |  | $ | 95,667 |  |  | $ | 94,094 |
Less: Non same-store portfolio NOI | 2,577 |  |  | 3,624 |  |  | 2,711 |  |  | 2,101 |  |  | 2,328 |
Same-store portfolio NOI | $ | 99,303 |  |  | $ | 101,419 |  |  | $ | 97,622 |  |  | $ | 93,566 |  |  | $ | 91,766 |

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.
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
|  | Mar 31, 2023 |  | Dec 31, 2022 |  | Sep 30, 2022 |  | Jun 30, 2022 |  | Mar 31, 2022
Total assets |  | $ | 6,493,747 |  |  | $ | 6,532,095 |  |  | $ | 6,633,533 |  |  | $ | 6,386,634 |  |  | $ | 6,387,322 |
Plus: accumulated depreciation (a) |  | 475,001 |  |  | 426,097 |  |  | 386,606 |  |  | 337,338 |  |  | 291,199 |
Plus: accumulated amortization |  | 76,558 |  |  | 76,710 |  |  | 77,141 |  |  | 77,062 |  |  | 52,856 |
Total gross assets |  | $ | 7,045,306 |  |  | $ | 7,034,902 |  |  | $ | 7,097,280 |  |  | $ | 6,801,034 |  |  | $ | 6,731,377 |

(a)Includes accumulated depreciation associated with real estate held for sale, as applicable.
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