Independence Realty Trust priced the 6 million shares of common stock in its public offering at $9.60 a share, for gross proceeds of $57.6 million. The underwriters of the offering have a 30-day option to buy up to 900,000 additional shares of common stock.
The company said it plans to use the net proceeds from the offering to acquire more apartment properties in the course of its business, with some of the money also used for general corporate purposes and as working capital.
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TheStreet Ratings team rates INDEPENDENCE REALTY TRUST as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INDEPENDENCE REALTY TRUST (IRT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IRT's very impressive revenue growth greatly exceeded the industry average of 13.8%. Since the same quarter one year prior, revenues leaped by 172.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, INDEPENDENCE REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 121.8% when compared to the same quarter one year ago, falling from $0.26 million to -$0.06 million.
- The gross profit margin for INDEPENDENCE REALTY TRUST is rather low; currently it is at 17.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.42% is significantly below that of the industry average.
- You can view the full analysis from the report here: IRT Ratings Report