Deutsche Bank Reinstates Independence Realty Trust (IRT) at Hold

Deutsche Bank reinstated coverage on Independence Realty Trust (NYSE: IRT) with a Hold rating and a price target of $9.00.

Analyst Vin Chao said, "Although we think IRT’s acquisition of Trade Street Residential has strategic merit, the reality is that the deal was made in a difficult capital market environment, leaving IRT’s balance sheet in less than ideal shape. Though we see value in the shares, we are reinstating coverage with a Hold rating in light of IRT’s current cost of capital challenges that will limit the company’s ability to de-lever and execute on its external growth strategy. Also in light of the broader REIT sell-off, we see better risk-adjusted returns in other parts of our coverage universe. Positively, our model suggests the current 9% dividend yield should be sustainable, which may be appealing to yield-oriented investors. However, depending on the timing and size of future deleveraging activities, we see some downside risk to our estimates."

For an analyst ratings summary and ratings history on Independence Realty Trust click here. For more ratings news on Independence Realty Trust click here.

Shares of Independence Realty Trust closed at $7.73 yesterday.

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