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Indebtedness
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Indebtedness Indebtedness
The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale as of December 31, 2024:
Debt:Outstanding PrincipalUnamortized Debt Issuance CostsUnamortized Loan (Discount)/PremiumsCarrying AmountType
Weighted
Average Contractual Rate (3)
Weighted Average Effective Rate (4)
Weighted
Average
Maturity
(in years)
Unsecured
 revolver (1)
$194,478 $(526)$— $193,952 Floating5.5%4.8%4.0
Unsecured
 term loans		600,000 (1,831)— 598,169 Floating5.6%4.0%2.5
Secured
 credit
  facilities		585,635 (1,901)17,034 600,768 Fixed4.2%4.4%3.9
Mortgages (2)780,794 (3,175)14,687 792,306 Fixed3.8%4.0%3.7
Unsecured
  notes		150,000 (1,512)— 148,488 Fixed5.4%5.6%8.3
Total Debt$2,310,907 $(8,945)$31,721 $2,333,683 4.6%4.3%3.8
(1)The unsecured revolver total capacity was $500,000, of which $194,478 was outstanding as of December 31, 2024. On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029.
(2)Includes indebtedness secured by real estate held for sale of $59,032.
(3)Represents the weighted average of the contractual interest rates in effect as of year-end without regard to any interest rate swaps or collars.
(4)Represents the total weighted average effective interest rate for the three months ended December 31, 2024, including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferred financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.
Original maturities on or before December 31,
Debt:20252026202720282029Thereafter
Unsecured revolver (1)$— $194,478 $— $— $— $— 
Unsecured term loans— 200,000 — 400,000 — — 
Secured credit facilities3,065 9,111 10,081 453,937 2,669 106,772 
Mortgages (2)44,780 127,773 12,341 179,861 416,039 — 
Unsecured notes— — — — — 150,000 
Total$47,845 $531,362 $22,422 $1,033,798 $418,708 $256,772 
(1)The unsecured revolver total capacity was $500,000, of which $194,478 was outstanding as of December 31, 2024. On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029.
(2)Includes indebtedness secured by real estate held for sale of $59,032.
The following table contains summary information concerning our consolidated indebtedness as of December 31, 2023:
Debt:Outstanding PrincipalUnamortized Debt Issuance CostsUnamortized Loan (Discount)/PremiumsCarrying
 Amount		Type
Weighted
Average Contractual Rate (3)
Weighted
Average Effective Rate (4)
Weighted
Average
Maturity
(in years)
Unsecured revolver (1)
$234,479 $(1,117)$— $233,362 Floating6.6%5.4%2.1
Unsecured term loans600,000 (2,456)— 597,544 Floating6.5%3.9%3.5
Secured credit
  facilities		586,286 (1,949)21,762 606,099 Floating/Fixed4.2%4.6%4.9
Mortgages (2)1,094,933 (5,250)22,721 1,112,404 Fixed3.8%4.0%4.3
Total Debt$2,515,698 $(10,772)$44,483 $2,549,409 4.8%4.2%4.0
(1)The unsecured revolver total capacity was $500,000, of which $234,479 was outstanding as of December 31, 2023.
(2)Includes indebtedness secured by real estate held for sale of $122,621.
(3)Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2023 without regard to any interest rate swaps or collars.
(4)Represents the total weighted average effective interest rates for the full year ended December 31, 2023, after giving effect to all components of interest expense including the impact of interest rate swaps and collars, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.
As of December 31, 2024 we were in compliance with all financial covenants contained in our consolidated indebtedness.
Private Placement of $150 Million of Unsecured Notes
On August 19, 2024, we entered into a Note and Guaranty Agreement granting us the right to sell up to $150,000 of unsecured notes (the “Private Placement”), consisting of $75,000 aggregate principal amount of unsecured notes due October 1, 2031 and $75,000 aggregate principal amount of unsecured notes due October 1, 2034 (each a “note” and collectively, the “notes”), to an institutional investor in the Private Placement at fixed annual interest rates of 5.32% and 5.53%, respectively. The entire unpaid principal balance of each note shall be due and payable on the maturity date thereof. On October 1, 2024, the notes were executed and funded. We incurred $1,120 of deferred financing costs attributable to the Private Placement which have been allocated evenly between the notes and will be amortized into interest expense over their respective 7- or 10-year terms, respectively. The net proceeds have been or will be used to repay secured mortgage debt scheduled to mature in 2024 and 2025 and to reduce the borrowings under our unsecured revolver. As of December 31, 2024, $99,556 of property mortgages have been repaid with proceeds from the notes.
Unsecured Revolver and Term Loans
On January 8, 2025, IROP entered into the Fifth Amended and Restated Credit Agreement (the “Fifth Restated Credit Agreement”) by and among IROP, as borrower, IRT as parent guarantor, KeyBank National Association, as administrative agent, and the other agents and lender parties thereto, which amended and restated in its entirety the Fourth Amended and Restated Credit Agreement dated as of July 25, 2022 (the “Fourth Restated Credit Agreement”). The Fourth Restated Credit Agreement provided for a $500,000 unsecured revolving credit facility (the “Unsecured Revolver”) with a January 31, 2026 scheduled maturity date and two unsecured term loans, specifically: (i) a $200,000 term loan with a May 18, 2026 maturity date (the “2026 Term Loan”) and (ii) a $400,000 term loan with a January 28, 2028 maturity date (the “2028 Term Loan”). We recognized the restructuring of the Fifth Restated Credit Agreement as a modification of debt for all lenders except for two and incurred deferred financing costs of $1,615 associated with the transaction. The Fifth Restated Credit Agreement increases the maximum principal amount of the Unsecured Revolver to $750,000, which represents an increase of $250,000 over the Fourth Restated Credit Agreement and extends its maturity date until January
8, 2029. The Fifth Restated Credit Agreement also releases the Subsidiary Guarantors which were parties to the Fourth Restated Credit Agreement. We recognized the portion of debt associated with the lenders no longer participating in the Fifth Restated Credit Agreement as an extinguishment of debt and wrote off their de minimis deferred financing costs.
The Fifth Restated Credit Agreement increases the aggregate amount of borrowings under the credit agreement to $1,350,000 and permits IROP to request an increase in such aggregate amount to up to $2,000,000 subject to certain terms and conditions, including receipt of commitments from one or more lenders, whether or not currently parties to the Fifth Restated Credit Agreement, to provide such increased amounts, which increase may be allocated, at IROP’s option, to the Unsecured Revolver and/or to one or more of the Term Loans, in accordance with the Fifth Restated Credit Agreement.
Borrowings under the 2026 Term Loan bear interest at a rate equal to either (i) the SOFR rate plus a margin of 80 to 160 basis points, or (ii) a base rate plus a margin of 0 to 60 basis points. These margins represent a 5-basis point decrease from those applicable to the 2026 Term Loan. The margin for borrowings under the Unsecured Revolver and the 2028 Term Loan remain unchanged, with (1) Unsecured Revolver borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 72.5 to 140 basis points, or (ii) a base rate plus a margin of 0 to 40 basis points; and (2) 2028 Term Loan borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 80 to 160 basis points, or (ii) a base rate plus a margin of 0 to 60 basis points. The applicable margin will be determined based upon IRT’s credit rating. At the time of closing, based on IRT’s credit rating along with IROP’s consolidated leverage ratio, the applicable SOFR margin was 77.5 basis points for the Unsecured Revolver and 85 basis points for both the 2026 Term Loan and 2028 Term Loan. Overall, this reflects a weighted average reduction in margin of approximately 34 basis points compared to the interest rate margins in place prior to IRT’s receipt of investment grade credit ratings.
The Fifth Restated Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on our ability to take the following actions: (i) make distributions after an event of default; (ii) incur debt; (iii) make investments; (iv) grant or suffer liens; (v) undertake mergers, consolidations, asset sales and other fundamental entity changes; (vi) make material changes to contracts and organizational documents; and (vii) enter into transactions with affiliates.
The Fifth Restated Credit Agreement also contains financial covenants applicable to us involving (i) maximum consolidated total debt to total asset value, (ii) maximum distributions, (iii) maximum secured debt to total asset value, (iv) maximum unsecured debt to eligible unencumbered properties, and (v) minimum consolidated fixed charge coverage. The Fifth Restated Credit Agreement provides for certain customary events of default, including among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of covenants, cross defaults with certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control.
On July 25, 2022, we entered into the Fourth Restated Credit Agreement which amended and restated in its entirety the Third Amended and Restated Credit Agreement dated as of December 14, 2021 (the “Third Restated Credit Agreement”). The Fourth Restated Credit Agreement provided for an aggregate amount available for borrowing of $1,100,000, which consisted of (i) a $500,000 Unsecured Revolver with a January 31, 2026 scheduled maturity date, (ii) the 2028 Term Loan; and (iii) the 2026 Term Loan. The Fourth Restated Credit Agreement represented an increase of $100,000 over the Third Restated Credit Agreement which provided for (i) the Unsecured Revolver, (ii) the 2026 Term Loan, and (iii) two additional term loans of $200,000 and $100,000, which had maturity dates of January 17, 2024 and November 20, 2024, respectively (collectively, the “2024 Term Loans”). Proceeds of the 2028 Term Loan were used to (i) repay and retire the 2024 Term Loans, and (ii) reduce $100,000 of outstanding borrowings under the Unsecured Revolver. In addition, the Fourth Restated Credit Agreement changed the LIBOR interest rate option to SOFR. The Fourth Restated Credit Agreement otherwise continued, without material change, the 2026 Term Loan and the Unsecured Revolver. We recognized the restructuring of the Fourth Restated Credit Agreement as a modification of debt for all lenders except for one and incurred deferred financing costs of $1,477 associated with the transaction. We recognized the portion of debt
associated with the lender no longer participating in the Fourth Restated Credit Agreement as an extinguishment of debt and wrote off their de minimis deferred financing costs.
Secured Credit Facilities
PNC Secured Credit Facility
On December 16, 2021, in connection with the STAR Merger, we assumed the PNC MCFA, a fixed rate multifamily note and other loan documents for the benefit of PNC Bank. The PNC MCFA provides for a fixed rate loan in the aggregate principal amount of $79,170 that accrues interest at 2.82% per annum and has a maturity date of July 1, 2030. As of December 31, 2024, and 2023, the outstanding principal balance was $76,249 and $76,248, respectively.
Newmark Secured Credit Facility
On December 16, 2021, in connection with the STAR Merger, we assumed the Newmark MCFA, which consists of four tranches: (1) a fixed rate loan in the aggregate principal amount of $331,001 that accrues interest at 4.43% per annum; (2) a fixed rate loan in the aggregate principal amount of $137,917 that accrues interest at 4.57% per annum; (3) a variable rate loan in the aggregate principal amount of $49,493 that accrues interest at the one-month LIBOR plus 1.70% per annum; and (4) a fixed rate loan in the aggregate principal amount of $40,468 that accrues interest at 3.34% per annum. The first three tranches have a maturity date of August 1, 2028, and the fourth tranche has a maturity date of March 1, 2030, unless in each case the maturity date is accelerated in accordance with the terms of the loan documents. Interest only payments are payable monthly through August 1, 2025 and April 1, 2027 on the first three tranches and fourth tranche, respectively, with interest and principal payments due monthly thereafter. As of December 31, 2023, the outstanding balance on tranche 3 was $652. In January 2024, tranche 3 was repaid and retired with proceeds from the 2023 property sales.
Mortgages
The following table summarizes the mortgage payoffs during the years ended December 31, 2024 and 2023:
AmountWeighted Average Interest Rate
Mortgage payoffs in 2023
$121,018 5.87 %
Mortgage payoffs in 2024
303,464 3.83 %
$424,482 4.41 %
Subsequent to the year ended December 31, 2024, we paid off one property mortgage in the amount of $14,406 using proceeds from our private placement of unsecured notes. Additionally, subsequent to the year ended December 31, 2024, we paid off the Ridge Crossings mortgage in the amount of $56,884 as a result of the sale of Ridge Crossings.