Cheap Stocks to Buy: Independence Realty Trust (IRT)
Stock Price: ~$9
Independence Realty Trust Inc (NYSEMKT:IRT) focuses on the apartment side of real estate, and is mostly active in the Midwest and Southeastern part of the country. It focuses mostly on Class A and B properties with almost 13,000 units.
IRT is somewhat overlevered with 72% debt-to-capitalization and 13 times debt-to-EBITDA — almost twice as high as peers. However, that leverage is not terribly expensive and laddered over many years.
I think Independence Realty Trust is undervalued anyway, but I think 2017 is going to be the year of the apartment bubble. Rents are insanely high, and I think that will drive the prices of all apartment REITs up.
Smaller players like IRT, which sits around just $625 million in market capitalization, could be buyout bait if that comes to pass.