UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Independence Realty Trust as Acquisitions Drive NAV Growth

In a report published Monday, Wunderlich Securities analyst Craig Kucera reiterated a Buy rating on Independence Realty Trust IRT, and raised the price target from $9.75 to $10.75. In the report, Wunderlich Securities noted, “We are raising our price target on Independence Realty Trust (IRT) as management continues to execute on a business model that is successfully navigating a challenging multifamily environment for small cap REITs from a cost of capital perspective. IRT is an externally managed apartment REIT with a focus on secondary apartment markets where IRT management's strategy is to acquire class-B multifamily assets below replacement cost. Initial cap rates continue to be in the 6.5%-7% range and can generally be financed at about 4%. IRT has a clear runway to growth, in our opinion, given management's capacity to leverage relationships within its RAIT Financial Trust (RAS-NR) network to source accretive acquisitions to the REIT and build NAV.” Independence Realty Trust closed on Friday at $9.70.