Centerspace, a North Dakota-based real estate investment trust (REIT), entered into a definitive merger agreement on September 8, 2026, to be acquired by Independence Realty Trust, Inc. (IRT) in an all-stock transaction. The agreement was unanimously approved by the boards of directors of both companies.
Under the terms of the agreement, Centerspace will merge with a wholly owned subsidiary of IRT. At the effective time of the merger, each share of Centerspace common stock will be converted into the right to receive 3.8 shares of IRT common stock, subject to adjustment. Additionally, the partnership interests of Centerspace will be converted into IROP common units or preferred units, with specific exchange ratios for Series D and Series E preferred units.
The merger is structured to create a combined enterprise value of approximately $8.1 billion, focused on high-growth, non-gateway markets. The combined entity is expected to have approximately 44,354 units and a 2027E core FFO accretion of about 5%, with leverage expected to remain neutral.
Post-closing, IRT’s board will include two independent trustees from Centerspace’s current board. The transaction is subject to various closing conditions, including the approval of shareholders from both companies, the effectiveness of a registration statement on Form S-4, and the receipt of tax and REIT status opinions. The agreement includes termination fees of $45 million for Centerspace and $60 million for IRT if the deal is terminated under specified circumstances.
Both companies may pay regular quarterly cash dividends prior to the closing, with Centerspace limited to $0.77 per share per quarter and IRT limited to $0.18 per share per quarter.
