CALL INVITE -> Long IRT; Excellent Allocation Record

In our view IRT is a fascinating, often-overlooked and "underrated" MF platform that is perhaps a "must own" over a TAIL duration. In addition to its Sunbelt exposure (~15% of NOI in Atlanta + another ~14% in Dallas, for example), IRT maintains a presence across several other "non-gateway" markets (Denver at ~5.3% of NOI + additional in-process developments). Following the combination with STAR, the company has been focusing on (1) value-add renovations of existing units, from which it earns very high incremental ROICs, and (2) selected ground-up development as opposed to more bulk acquisitions. Very quietly over the past few years IRT has (1) positioned itself to carry net leverage more consistent with other public MF REITs (~5-6x versus ~8-9x not too long ago) despite recycling capital, and (2) improved its ROIC/ROA to pre-STAR transaction levels, despite the 2023-present MF growth slowdown. Both of these are exceptional and, in our view, evidence a very adept and disciplined approach to capital allocation. We think IRT is a low-to-mid ~20/share stock + easily supports and is poised to grow its yield (on cost), which we will go through.