Independence Realty Trust, Inc.

preventing a background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during that time, press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star followed by the number one. I would now hand today's call over to Maddie Zimba. Please go ahead.

Thank you and good morning, everyone. Thank you for joining us to review Independence Realty Trust's fourth quarter and full year 2024 financial results. On the call with me today are Scott Schaefer, Chief Executive Officer, Jim Sivra, Chief Financial Officer, and Janice Richards, Executive Vice President of Operations. Today's call is being webcast on our website at irtliving.com. There will be a replay of the call available via webcast on our Investor Relations website and telephonically, beginning at approximately 12 p.m. Eastern Time today. Before I turn the call over to Scott, I'd like to remind everyone that there may be forward-looking statements made on this call. These forward-looking statements reflect IRT's current views with respect to future events and financial performance. Actual results could differ substantially and materially from what IRT has projected. Such statements are made in good faith pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to IRT's press release, Supplemental Information of Violence with the FCC for Factors, that could affect the accuracy of our expectations or cause our future results to differ materially from those expectations. Participants may discuss non-GAAP financial measures during this call. A copy of IRT's earnings press release and supplemental information containing financial information, other statistical information, and a reconciliation of non-GAAP financial measures to the most direct comparable GAAP financial measures attached to IRT's current report on the form 8K available at IRT's website under Investor Relations. IRT's other SEC filings are also available through this link. IRT does not undertake to update forward-looking statements on this call or with respect to matters described herein, except as may be required by law. With that, it's my pleasure to turn the call over to Scott Schaefer.

Thanks, Maddie, and thank you all for joining us this morning. 2024 marked another strong year for IRT, both in terms of operational performance and in achieving strategic milestones that position our company for growth. Regarding operations, Core FFO per share for the year of $1.16 was at the high end of guidance and was driven primarily by solid same-store NOI growth of 3.2%. Our regional leaders and leasing teams adapted to the changing market dynamics, including the impact of elevated supply, to achieve our goal of attaining higher stabilized occupancy while also managing average rent growth. During the year, we increased same-store average occupancy by 110 basis points to 95.2%, and still achieved a 1.3% increase in average effective rental rates. These gains were supported by a solid resident renewal rate of 62.7%. Same-store results were further supported by the notable progress we made in advancing our value-add program. In the fourth quarter, we completed 395 units, achieving a weighted average return on investment of 15.1%. For the year, we completed 1,671 renovations, that drove a $239 average increase in monthly rent per unit with unrenovated comps and equated to a 15% return on investment. In 2025, we look to capitalize on our solid occupancy levels and the improving rental rate environment by significantly accelerating value-add renovation volumes. During 2024, we also strengthened our portfolio and future growth potential by investing $240 million at a blended economic cap rate of 5.7% to acquire three properties in high-growth markets. These properties contain 908 units and expand our presence in Charlotte, Tampa, and Orlando. Additionally, we are under contract and expect to close this month on a 280-unit community in Indianapolis for $59.5 million. By expanding our footprint in these markets, our operating expenses should also benefit from enhanced scale and synergies. Regarding strategic milestones, in early 2024, we completed our portfolio optimization and deleveraging strategy, which we launched in the fourth quarter of 2023 with two objectives. First, to sell 10 properties in order to reduce our presence in non-core markets, which would also improve our portfolio's overall quality and operating efficiency. And second, to significantly deleverage our balance sheet thereby broadening our access to capital. Executing on this initiative significantly improved our financial flexibility and enabled us to become an investment grade issuer. Proceeds from asset sales reduced our net debt to adjusted EBITDA on nearly a full term to 5.9 times at year end. As a result, we received a BBB flat rating with stable outlook from both S&P and Fitch. Our investment-grade ratings provides us with access to new forms of capital and, as demonstrated by the terms of our new unsecured credit agreement, significantly improve our cost of debt capital. We enter 2025 with high sustainable occupancies, strong leasing momentum, and a balance sheet geared for growth. Our business plan for the year is very simple. Drive NOI and core SFO growth by delivering rental rate growth on our existing properties and deploying capital into new strategic investments. Supply and demand fundamentals have improved meaningfully as compared to a year ago and support our expectation to capture higher rents without sacrificing occupancy. We expect a couple of our markets to continue working through the tail end of new supply. These include Denver and Charlotte, which are forecasting supply to increase 5.4% on a combined basis this year. On balance, however, we expect a steep decline in new deliveries across our markets in 2025 and for the pace of new deliveries to decline even further in 2026. Looking at Coast Guard data, new supply in our same-store markets increased 6.2% in 2024, with 2025 now forecast to increase by only 2.1%, a 60% decrease in apartment unit deliveries. In 2026, the pace of new deliveries is forecasted to further decrease to 1.5% of existing units. Across our top 10 markets, which generate nearly 75% of total NOI, supply increased 5.8% during 2024, but is forecasted to increase by just 1.8% and 1.3% in 2025 and 2026, respectively. From the demand perspective, our markets continue to benefit from population growth due to lower cost of living and higher job growth than the national average. In addition, our portfolio of high-quality, largely Class B communities in the Sunbelt and Midwest markets represents a strong value proposition for residents, which further supports demand. In light of continuing strong demand and significant declines in supply, we expect to enjoy greater pricing power without sacrificing occupancy in 2025, a dynamic that should accelerate during the year and as we advance into 2026. In terms of deploying capital in 2025, we have nearly three-quarters of a billion dollars of liquidity, including $156 million available on our forward equity commitments. This liquidity will be used to fund strategic investments and drive growth. As Jim will discuss in further detail, we intend to increase the number of value-add renovations that, on average, have generated ROIs in the mid-to-high teens and to pursue additional accretive acquisitions. Before handing the call over to Jim, I want to state how proud I am of the IRT team's hard work and dedication throughout 2024. Your efforts made it possible for us to achieve the strategic milestones that are central building blocks of our future growth. I'll now turn the call over to Jim.