Independence Realty Trust (IRT) Traded Down in Q2 Due to Economic Concerns

Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Independence Realty Trust, Inc. (NYSE:IRT). Independence Realty Trust, Inc. (NYSE:IRT) is a real estate investment trust that owns and operates multifamily communities. The one-month return of Independence Realty Trust, Inc. (NYSE:IRT) was -5.74%, and its shares lost 14.05% of their value over the last 52 weeks.  On August 1, 2025, Independence Realty Trust, Inc. (NYSE:IRT) stock closed at $16.76 per share, with a market capitalization of $4.018 billion.

Baron Real Estate Fund stated the following regarding Independence Realty Trust, Inc. (NYSE:IRT) in its second quarter 2025 investor letter:

“Independence Realty Trust, Inc. (NYSE:IRT) was a detractor during the quarter due to economic concerns of tariff policies impacting lower income consumers, softer-than-expected pricing power on new leases, and mixed investor reception of the company’s select acquisitions. IRT owns 33,000 apartment units that cater to a more affordable income demographic. We believe the return prospects for the stock continue to be attractive given the company’s discounted public market valuation relative to both recent private market transactions and publicly traded peers that have communities in overlapping markets, its “value-add” program that provides enhanced growth prospects versus peers, abating supply deliveries in its markets that should enhance pricing power and its superior management team.”

Is Independence Realty Trust, Inc. (IRT) The Best Residential Real Estate Stock To Buy According to Analysts?

A close-up of a luxurious apartment building, surrounded by lush landscaping.

Independence Realty Trust, Inc. (NYSE:IRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Independence Realty Trust, Inc. (NYSE:IRT) at the end of the first quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of Independence Realty Trust, Inc. (NYSE:IRT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INDEPENDENCE REALTY TRUST, INC. (NYSE:IRT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.