Independence Realty Trust's 10%: A 'Sucker Yield'?

Independence Realty Trust (NYSEMKT:IRT) is an apartment REIT focused on building a portfolio of well-located apartment properties that generate attractive risk adjusted returns, stable occupancy and the potential for property appreciation through rent increases and improved operating efficiency.
The REIT is externally managed by a subsidiary of RAIT Financial Trust (NYSE: RAS), which is a multi-strategy commercial real estate company with a vertically integrated platform and significant experience owning, operating and lending against apartment properties.
We have often stated that externally managed REITs start out with a higher hurdle to prove to investors that they will be managed in the interests of the shareholders, not the management team and the management agreement. That said, we are keeping an open mind on this high yield multifamily REIT.
Properties
IRT focuses on the Midwest and Southeastern markets and has been acquisitive within these markets, most recently acquiring Trade Street Residential ("TSRE"). The focus on "non-gateway" markets lowers the number of larger competitors in the REITs markets and the development (or over development) of these markets, which should lead to a more stable occupancy profile as well as the ability to increase rents.

The acquisition of Trade Street (2015) increased the number of properties in the IRT portfolio by 55% and added a significant number of newer units to the portfolio. TSRE added... Read more