PHILADELPHIA — Independence Realty Trust Inc. (NYSE: IRT) and Centerspace (NYSE: CSR) have entered into a definitive merger agreement under which the two companies will combine in an all-stock transaction valued at $8.1 billion, including debt. The combined multifamily REIT will own and operate 163 properties totaling 44,354 units across 17 states.
According to Scott Schaeffer, chairman and CEO of IRT, the deal will pair IRT’s Sun Belt portfolio with Centerspace’s Midwest and Mountain West communities. He also cites greater efficiencies across a larger operating base and an expanded value-add renovation program. The combined company is expected to have a pro forma equity market capitalization of approximately $5 billion.
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Centerspace shareholders will receive 3.8 shares of IRT common stock for each share of Centerspace common stock owned. Upon closing, IRT stockholders will own approximately 78 percent of the combined company’s equity, while Centerspace shareholders will own roughly 22 percent.
IRT’s management team will continue to lead the combined company. Schaeffer will serve as chairman and CEO, and James Sebra will serve as president and CFO. Upon completion of the merger, the board of directors of IRT will be expanded to 11 members, including nine directors from IRT and two from Centerspace. The corporate headquarters will remain in Philadelphia.
The combined company will retain the IRT name and will continue to trade under the ticker symbol “IRT” on the New York Stock Exchange. IRT’s stock price opened at $15.11 per share Thursday, Sept. 10, down from $17.38 one year ago.
As of Sept. 9, Minneapolis-based Centerspace owned 47 apartment communities totaling 10,456 units in Colorado, Minnesota, Montana, Nebraska, North Dakota and Utah. The company was founded in 1970. Centerspace’s stock price opened at $58.30 per share Thursday, up slightly from $57.99 one year ago.
The merger is expected to close as early as the end of the fourth quarter of 2026, subject to approval by stockholders and other customary closing conditions.
— Kristin Harlow