Independence Realty Trust to buy apartment operator Centerspace for $1.02 billion (updated)

Independence Realty Trust

09/09/2026 11:40

Adds graphic and analyst comment in paragraph 6, updates shares
IRT shareholders to own about 78% of combined REIT 
Deal could generate about $24 million in annualized synergies, companies say
Combined portfolio to exceed 44,000 units, with most income from Sunbelt markets
By Anshuman  Tripathy
Sept 9 (Reuters) - Independence Realty Trust IRT.N said on Wednesday it would buy Centerspace CSR.N in an all-stock deal valuing the smaller rival at about $1.02 billion, as the real estate investment trust (REIT) seeks to expand its residential portfolio in key U.S. markets.
Shares of Centerspace were up 11% in morning trading, while IRT fell 1.6%.
The apartment REIT industry is seeing signs of consolidation in the U.S. as elevated interest rates and higher operating costs pressure company earnings. 
Earlier this year, AvalonBay Communities and Equity Residential agreed to merge in a landmark $69 billion all-stock deal, creating the largest apartment REIT in the country.
The acquisition of Centerspace, which owns and operates apartment communities, will give IRT access to the Midwest and Mountain West markets.
Analysts at BTIG said the larger company could benefit from higher trading volumes and greater investor interest, with the merger providing additional opportunities for value-add investments.
Upon completion, IRT stockholders will own about 78% and Centerspace shareholders about 22% of the combined REIT, which will be worth about $8.1 billion. 
With a portfolio of more than 44,000 apartment units, about 58% of its net operating income will come from Sunbelt markets, 27% from the Midwest and 15% from the Mountain West, the companies said. 
The deal, expected to close by the end of the fourth quarter of 2026, will also generate estimated annualized synergies of about $24 million and boost IRT's 2027 core funds from operations by about 5%, they added.
IRT's CEO Scott Schaeffer will be chief executive of the merged entity and James Sebra its president and finance chief.
     The combined company will retain the name Independence Realty Trust and continue trading on the New York Stock Exchange under the symbol "IRT."    
RBC Capital Markets and Rothschild & Co. served as financial advisors to IRT, while BMO Capital Markets was the financial advisor for Centerspace.

Shares of Independence Realty Trust, Centerspace have largely trailed the broader market so far this year https://tmsnrt.rs/4cyKxCd
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Jonathan Ananda)
((Anshuman.Tripathy@thomsonreuters.com;))