Independence Realty Trust executes $8.1 billion Centerspace merger

• Independence Realty Trust (NYSE:IRT) and Centerspace (NYSE:CSR) executed an all-stock merger to create a combined residential real estate company with an $8.1 billion enterprise value.
• The transaction will issue approximately 67.6 million new shares, distributing 78% of the equity to Independence Realty Trust shareholders and 22% to Centerspace investors.
• Management stated the transaction is expected to generate $24 million in annualized synergies while expanding the combined portfolio across the Sunbelt, Midwest, and Mountain West markets.

Independence Realty Trust (NYSE:IRT) and Centerspace (NYSE:CSR) entered into a definitive all-stock merger agreement to create a combined residential real estate portfolio with an estimated enterprise value of $8.1 billion.

The transaction shifts both organizations away from standalone operations by combining 44,354 apartment units across 17 states to increase geographic diversification outside of major gateway cities.

Under the terms of the agreement, Centerspace investors will receive 3.8 shares of Independence Realty Trust stock for each share owned, resulting in the issuance of approximately 67.6 million new shares.

Management stated the combined entity will generate 58% of its net operating income from Sunbelt markets, with the remainder coming from the Midwest and Mountain West.

The company also stated that the combined platform is expected to generate $24 million in annualized synergies and reduce general and administrative costs to 0.37% of total assets.