Based in Philadelphia, PA, Independence Realty Trust (IRT) scheduled an $42 million IPO with a market capitalization of $101 million at a price range mid-point of $10.5, for the week of August 5, 2013.
Nine other IPOs were scheduled for the week of August 5. The full IPO calendar can be found at IPOpremium.
- S-11A filed July 26, 2013
- Manager, Joint Managers: Ladenburg Thalmann; William Blair; JMP Securities; Compass Point
- Co-Managers: National Securities; Aegis Capital; C&Co-Prince Ridge; Drexel Hamilton
IRT has 18 apartment buildings on Arizona, Colorado, Georgia, Indiana, Texas and Virginia with a total of two thousand units.
Annualizing the Q1 '13 funds from operations of $1.3 suggests a maximum 5.2% dividend at the price range mid-point of $10.50, with no growth except rental increases, and perhaps some acquisitions.
annualizing Q1 '13
Independence Realty Trust
American Residential Properties (ARPI)
1-5, 5 is high
20 is perfect
Avoid IRT on the IPO.
To put the conclusions and observations in context, the following is reorganized, edited, and summarized from the full S-1 referenced above:
IRT is an externally advised by a wholly-owned subsidiary of RAIT (NYSE: RAS), a REIT that invests primarily in commercial mortgages and, to a lesser extent, apartment properties.
As of July 26, 2013, IRT owns eight apartment properties containing an aggregate of 2,004 apartment units in Arizona, Colorado, Georgia, Indiana, Texas and Virginia.
5% stockholder, pre-IPO
RAIT Financial Trust , the 'parent', $609 million market capitalization
Use of proceeds
IRT expects to net $38 million from its IPO.
IPO proceeds will be contributed to the operating partnership in exchange for units of the operating partnership. $3.6 million of the net proceeds will be used to redeem all of the Series A preferred stock and all of the Series B preferred units of the operating partnership.
Disclaimer: This IRT IPO report is based on a reading and analysis of IRT's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.