v3.25.4
Note 4 - Investments in Unconsolidated Real Estate Entities
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 4: Investments in Unconsolidated Real Estate Entities

 

As of December 31, 2025, our investments in unconsolidated real estate entities had aggregate land, building, and construction in progress costs capitalized of $269,739 and aggregate construction debt of $151,979. 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 (loss) of $11,066, $347, and ($4,488) from equity method investments during the years ended December 31, 2025, 2024, and 2023, respectively, and the income or losses were recorded in income (loss) from investments in unconsolidated real estate entities in our consolidated statements of operations.

 

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

 

            

Carrying Value As Of

 

Investments in Unconsolidated Real Estate Entities

 

Location

 Units (unaudited) (1)  

IRT Ownership Interest

  

December 31, 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%     5,905 

Lakeline Station (4)

 

Austin, TX

  378   90.0%  42,179   36,106 

The Mustang (5)

 

Dallas, TX

  275   85.0%  30,578   28,801 

Nexton Pine Hollow

 

Charleston, SC

  324   90.0%  22,097    

The Approach (6)

 

Indianapolis, IN

  318   66.6%  3,409    

Total

  1,906     $98,263  $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 consisting of 402 units (unaudited) that was sold on July 21, 2025. We had an 84.8% ownership interest in the property at the time of sale. We received $31,356 in proceeds from the sale, comprised of a return of our initial investment of $24,501 and equity proceeds of $6,855. We recognized a gain of $10,576 from the sale during the year ended December 31, 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 investment 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 consolidated statements of operations during the year ended December 31, 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 (unaudited). Subsequent to year-end, on January 20, 2026, we acquired our joint venture partner's 10% membership interest and assumed full operational control and 100% equity ownership of the Tisdale at Lakeline Station property. We began consolidating the assets and liabilities of the property and its operating results effective January 20, 2026.

 

(5)

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

 (6)On October 8, 2025, we entered into a joint venture to develop a 318-unit (unaudited) multifamily project in Indianapolis, IN. We have committed to invest an aggregate of $20.0 million in this joint venture in exchange for a 66.6% preferred equity interest, and, as of December 31, 2025, we had funded $3.4 million on account of this commitment.