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

Independence Realty Trust (NYSE: IRT) and Centerspace (NYSE: CSR) announced a definitive all-stock merger agreement that would create a combined residential real estate investment trust with a pro forma equity market capitalization of approximately $5.0 billion and a total enterprise value of approximately $8.1 billion.

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

The combined portfolio would include 163 multifamily communities totaling 44,354 apartment units across 17 states. Pro forma net operating income would be derived 58% from Sunbelt markets, 27% from Midwest markets, and 15% from Mountain West markets.

The companies estimate approximately $24 million in annualized synergies and project the transaction to be approximately 5% accretive to IRT's 2027 Core FFO per share on a leverage-neutral basis. Integration is expected to be completed within 12 months following closing.

IRT's management team will lead the combined company, with Scott Schaeffer continuing as Chairman and Chief Executive Officer and James Sebra 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 and NYSE ticker "IRT," and will be headquartered in Philadelphia.

IRT expects to maintain 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 shareholder 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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