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Note 4 - Investments in Unconsolidated Real Estate

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 4: Investments in Unconsolidated Real Estate

As of September 30, 2025, our investments in unconsolidated real estate entities had aggregate land, building, and capitalized construction in progress costs of $279,882 and aggregate construction debt of $171,904. We do not guarantee any debt, capital payout or other obligations associated with these entities. We recognize earnings or losses from our investments in unconsolidated real estate entities consisting of our proportionate share of the net earnings or losses of the joint ventures. We recognized income (losses) of $9,814 and $8,663 from equity method investments during the three and nine months ended September 30, 2025, respectively, and ($703) and ($2,382), respectively, during the three and nine months ended September 30, 2024. The income (losses) were recorded in income (loss) from investments in unconsolidated real estate entities in our condensed consolidated statements of operations.

The following table summarizes our investments in unconsolidated real estate entities as of September 30, 2025 and December 31, 2024:

												*Carrying Value As Of*
Investments in Unconsolidated Real Estate Entities		*Location*		*Units (1)*				*IRT Ownership Interest*				*September 30, 2025*				*December 31, 2024*
Metropolis at Innsbrook (2)		Richmond, VA			402				84.8	%		$	—			$	21,163
Views of Music City II (3)		Nashville, TN			209				50.0	%			5,912				5,905
Lakeline Station (4)		Austin, TX			378				90.0	%			40,983				36,106
The Mustang (5)		Dallas, TX			275				85.0	%			31,038				28,801
Nexton Pine Hollow		Charleston, SC			324				90.0	%			16,032				—
Total					1,588							$	93,965			$	91,975

(1)

Represents the total number of units after development is complete and each property is placed in service.

(2)

The Metropolis at Innsbrook is an operating property that was sold on July 21, 2025. We had an 84.8% ownership interest in this property at the time of sale. We received $31,085 in proceeds from the sale, comprised of a return of our initial investment of $24,501 and equity proceeds of $6,584. We recognized a gain of $10,389 from this sale during the three months ended September 30, 2025.

	(3)	Views of Music City II is an operating property. On October 9, 2025, our joint venture partner redeemed our investment in this property, comprised of a return of our initial capital of $5,912 and a preferred return of $3,248. We recognized the preferred return of $3,248 in income (loss) from investments in unconsolidated real estate entities in our condensed consolidated statements of operations in October 2025. Under the terms of our joint venture agreement, we are entitled to the right of first refusal on the sale of the property.
	(4)	Lakeline Station is an operating property consisting of 378 units. We have an open-ended call option that gives us the right to buy the property.

(5)

The Mustang is an operating property consisting of 275 total units. We have an open-ended call option that gives us the right to buy the property.

Subsequent Investment in Unconsolidated Real Estate Entity

On October 8, 2025, we entered into a joint venture for the development of The Approach, a to-be-built multifamily apartment project comprised of 318 units just outside Indianapolis, Indiana. We have committed to invest an aggregate of $20,049 in this joint venture, and, as of October 8, 2025, had funded $1,711 on account of this commitment.