Seeking Alpha
Editor's notes: The recent dividend increase reflects Independent Realty's management's confidence in its pipeline. IRT remains overlooked by investors and has 30% upside.

The Buy Thesis

Relative to its peer group (multi-family REITs), Independence Realty Trust (IRT) is a vastly superior investment in the following ways.

  1. Valuation - by FFO multiple and discount to NAV
  2. Growth rate - a superior acquisition pipeline combined with access to capital fuels rapid growth

We believe IRT will generate substantial outperformance as its market pricing increases to make its valuation more in line with its peers. This capital appreciation could be catalyzed by the establishment of a track record, along with further dividend increases and the cessation of perceptions currently adversely influencing its market pricing.

Valuation

Relative to its peer group, IRT trades at the lowest 2015 FFO multiple by a large margin. Its 10.87%...

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