Centerspace (CSR) M&A announcement summary

Deal rationale and strategic fit

• The merger creates a leading multifamily REIT with 44,354 apartment homes across 17 states and an $8.1 billion enterprise value, focusing on high-growth, non-gateway markets.

• The combined portfolio balances Sun Belt, Midwest, and Mountain West exposure, with no single market exceeding 11% of NOI and 80% of NOI from top quartile population growth markets.

• Portfolio mix includes 33% Class A and 67% Class B properties, supporting risk-adjusted returns and long-term demand.

• Pro forma markets are projected to see population growth more than 3x the U.S. average, with above-average NOI growth and less volatility than the U.S. average.

• Scale enhances access to capital markets, lowers cost of capital, and supports long-term value creation.

Financial terms and conditions

• All-stock merger: each Centerspace share/unit converts into 3.8 IRT shares/units, issuing about 67.6 million IRT shares/units.

• IRT shareholders will own 78% and Centerspace shareholders 22% of the combined company (excluding preferred units).

• Pro forma equity market cap is $5 billion; enterprise value is $8.1 billion.

• The transaction is expected to qualify as a tax-free reorganization for U.S. federal income tax purposes.

• Break fees: $45 million for Centerspace, $60 million for IRT.

Synergies and expected cost savings

• $24 million in annualized synergies identified, with $19 million from G&A overlap/corporate-level and $5 million from property-level efficiencies and incremental revenue.

• G&A load as a percentage of assets drops by 24% vs. IRT standalone and 57% vs. Centerspace standalone.

• Most synergies expected within 12 months of closing.

• Long-term upside from expanded value-add renovation pipeline and scaled income initiatives such as Wi-Fi.