New York City-based Argosy-Lionbridge Management disclosed a new position in Independence Realty Trust, reporting the addition of 744,935 shares worth an estimated $12.2 million during the third quarter.
What Happened
According to a filing with the Securities and Exchange Commission (SEC) dated November 14, Argosy-Lionbridge Management initiated a new position in Independence Realty Trust (IRT 0.48%). The fund reported holding 744,935 shares valued at $12.2 million as of September 30, reflecting a new allocation equal to 8% of its reportable assets.
What Else to Know
Top holdings after the filing:
- NYSE: REXR: $24.9 million (16.4% of AUM)
- NYSE: AIV: $23.1 million (15.2% of AUM)
- NYSE: ELME: $21.5 million (14.1% of AUM)
- NYSE: FR: $20.8 million (13.7% of AUM)
- NYSE: LEN: $19.6 million (12.9% of AUM)
As of Monday, shares of Independence Realty Trust were priced at $16.45, down 22.5% over the past year and well underperforming the S&P 500, which is up 12% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $4 billion |
| Revenue (TTM) | $651.5 million |
| Net Income (TTM) | $22.3 million |
| Dividend Yield | 4% |
Company Snapshot
- Independence Realty Trust owns and operates multifamily apartment properties, generating revenue primarily from rental income across non-gateway U.S. markets.
- The company operates as a real estate investment trust (REIT), focusing on portfolio management and capital appreciation to deliver consistent distributions to shareholders.
- It targets residents seeking amenity-rich living in submarkets with quality schools, retail, and employment centers, primarily in cities such as Atlanta, Louisville, Memphis, and Raleigh.
Independence Realty Trust, Inc. is a large-scale residential REIT with a portfolio concentrated in high-demand, non-gateway U.S. markets. The company’s strategy centers on scaling within amenity-rich submarkets to drive operational performance and deliver attractive risk-adjusted returns. Through disciplined management and a focus on stable rental income, IRT aims to provide consistent value to its shareholders.
Foolish Take
Buying into a beaten-down residential REIT seems like the type of move motivated by a belief that fundamentals — and not sentiment — will ultimately drive returns. That’s the backdrop for Argosy-Lionbridge’s new position in Independence Realty Trust, a multifamily operator delivering modest but steady operating gains even as the stock trades far below its 2022 highs. Same-store NOI rose 2.7% in the third quarter, portfolio occupancy held above 95%, and value-add renovations generated an average 14.8% return, according to the company’s latest earnings release.
IRT’s footprint across non-gateway markets — Atlanta, Raleigh, Louisville, Memphis — may appeal to investors looking for demographic tailwinds and lower supply risk as compared with coastal markets. Management reaffirmed full-year core funds from operations guidance and highlighted improving bad debt trends and accretive acquisitions in Orlando, another mark of operational discipline.
For long-term investors, the key question is whether stable occupancy, improving operating margins, and disciplined capital recycling can outweigh broader valuation pressure — and create an attractive entry point at depressed levels.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or investment held by an individual or institution.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Real estate investment trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income to shareholders.
Non-gateway markets: Cities or regions outside of the largest, most established U.S. metropolitan areas, often with lower costs and growth potential.
Submarkets: Smaller geographic areas within a larger market, often with distinct characteristics or demographics.
Risk-adjusted returns: Investment returns evaluated in relation to the amount of risk taken to achieve them.
Capital appreciation: The increase in the value of an asset or investment over time.
Distributions: Payments made by a fund or company to its investors, often from profits or income.
TTM: The 12-month period ending with the most recent quarterly report.
