NAREIT Company Highlights: Positive Vibes, Terrible Elevators

Research evidence excerpt

NAREIT Company Highlights: Positive Vibes, Terrible Elevators

tes will reach breakeven by year-end, albeit

timing remains elusive. Renewals for July are expected in the high-4%.

Supply Chapter Over. IRT firmly believes that the industry is turning the page on the supply wave and

is seeing concrete evidence as occupancies are approaching 88-89% across its markets (historically

92-93%). Roughly 40% of submarkets have seen market occupancies climb above 90%. IRT estimates

2026 supply at +2.6% followed by +1.2% in 2027 and +1.3% in 2028. Barring healthy demand, this

tailwind could translate into long-term CAGR on par with pre-COVID averages between +5-6%.

Value-Add Potential. IRT has pursued 2,000-2,500 value-add units annually over the past few years

with rent premiums of +15%. However, under normalizing supply conditions, IRT has historically seen

premiums between +20-30% with renewal rates running at +6% compared to 1Q26 value-add same store

of +3.2%. IRT noted that it is able to push its value-add program towards 3,000 units annually without

straining resources or putting pressure on operations.

Reshoring Opportunity. IRT continues to see strength across select markets with nearby anchoring chip

manufacturing such as Columbus, OH and Dallas, TX with key companies including Anduril, Intel, and

Texas Instruments.

Wi-Fi Bonus. IRT is currently rolling out its wi-fi program which will boost 2026 revenue and NOI by $6M

and $3M, respectively. For 2027, these figures are estimated at $12M and $6M, respectively.

Insurance Update. IRT completed its insurance renewal on May 15th with premiums down -24.5%

compared to initial guidance of -20%.

UDR sees a more normalized

leasing season with a peak UDR (UDR, Outperform, TP $41)

that may extend into June/

July Operating Update.