Independence Realty Trust, Inc. (IRT) announced on September 8, 2026, that it has entered into an Agreement and Plan of Merger with Centerspace, a North Dakota real estate investment trust (CSR). The agreement was executed by IRT, its operating partnership, Islanders OP Sub, LLC, and CSR, along with its operating partnership, Centerspace, LP.
Under the terms of the agreement, IRT will form a wholly owned subsidiary, IRT Merger Sub, which will merge with and into CSR. Following this transaction, CSR will survive as a North Dakota REIT. Simultaneously, IRT's operating partnership will merge with and into CSR's operating partnership.
The merger consideration is structured as a stock-for-stock exchange. At the effective time of the merger, each share of Centerspace common stock will be converted into the right to receive 3.800 shares of IRT common stock. Cash will be paid in lieu of fractional shares. The exchange ratio is fixed and will not adjust based on market fluctuations prior to closing.
Both companies have agreed to restrictions on dividend payments during the merger process. Centerspace may pay regular quarterly cash dividends of up to $0.77 per share per quarter, except for the quarter in which the closing occurs. Independence Realty Trust may pay regular quarterly cash dividends of up to $0.18 per share per quarter. Additionally, Centerspace may pay a one-time cash dividend to holders of record as of the business day immediately preceding the closing, calculated at $0.09 divided by the number of days in the quarter multiplied by the number of days elapsed since the start of the quarter.
The agreement outlines the treatment of outstanding equity awards. Restricted stock units (RSUs) and stock options held by Centerspace employees will be converted into similar awards denominated in IRT common stock, based on the exchange ratio. Unvested restricted stock units without performance conditions will become fully vested at the effective time.
