Independence Realty Trust and Centerspace agree to $8.1B all-stock merger

Independence Realty Trust (NYSE: IRT) and Centerspace (NYSE: CSR) have entered into a definitive merger agreement to combine in an all-stock transaction valued at approximately $8.1 billion in total enterprise value, the companies announced in a press release.

Under the terms of the deal, unanimously approved by both boards, Centerspace shareholders will receive 3.800 shares of IRT common stock for each Centerspace share held. The exchange will result in the issuance of approximately 67.6 million IRT shares and common partnership units. Upon closing, IRT stockholders will own approximately 78% of the combined company, with Centerspace shareholders holding the remaining 22%, on a fully diluted basis excluding preferred units.

The combined company would hold more than 44,000 apartment units across 163 communities in 17 states, with a pro forma equity market capitalization of approximately $5.0 billion. The portfolio's net operating income would be derived 58% from Sunbelt markets, 27% from Midwest markets, and 15% from Mountain West markets.

The transaction is expected to generate approximately $24 million in annualized synergies and is projected to be approximately 5% accretive to IRT's 2027 Core FFO per share on a leverage-neutral basis.

IRT's management team will lead the combined company. Scott Schaeffer will continue as Chairman and Chief Executive Officer, and James Sebra will serve as President and Chief Financial Officer. The board will expand to 11 members, including two directors from Centerspace. The combined company will retain the Independence Realty Trust name, trade under the ticker IRT on the New York Stock Exchange, and maintain its corporate headquarters in Philadelphia.

IRT expects to continue paying its quarterly dividend of $0.18 per share following closing. Centerspace will pay a prorated stub cash dividend of $0.09 in the quarter in which the closing occurs.

The transaction is expected to close as early as the end of the fourth quarter of 2026, subject to stockholder approvals from both companies, lender consents, and other customary closing conditions. The deal is expected to qualify as a tax-free reorganization for U.S. federal income tax purposes.

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