Scott Schaeffer, chairman and CEO of Independence Realty Trust (NYSE: IRT), participated in a video interview at Nareit’s REITworld: 2019 Annual Conference in Los Angeles.
Schaeffer said Independence Realty Trust’s value-add initiative—kitchen, bath, and common area upgrade investments of $11,000 per unit—is a very important piece of the company’s long-term strategy. He added that 20 communities, containing more than 6,300 units, will go through the process soon.
“To date, we’ve completed about 2,400 of those units, generating anywhere from 16% to 18% return along the investment,” Schaeffer said.
Turning to supply and demand fundamentals, Schaeffer said Independence Realty Trust is looking for areas of superior job and population growth in its markets.
“As far as supply, we’re a class B investor,” he said. “We feel that our portfolio is well-insulated against new construction.”
Schaeffer added that strong job and population growth fundamentals, partnered with the competitive product that Independence Realty Trust offers at a lower price, positions the company well for the future.