Home›Real Estate›REITs›Activist Irenic Capital urges Independence Realty Trus…

Activist Irenic Capital urges Independence Realty Trust to abandon merger

Irenic Capital, which owns about 2% of Independence Realty Trust, says the planned deal would involve issuing stock at 26% below its estimated fair value and create a 44,000-unit multifamily REIT.

Reported · Written up by our desk · REITs

Independence Realty Trust is facing public opposition to its planned merger with Centerspace, which would combine their assets into a 44,000-unit multifamily REIT, according to Bisnow. Bisnow reports that Irenic Capital Management, a major Independence Realty Trust shareholder with roughly a 2% stake, urged the REIT board not to proceed and instead suggested the company should sell itself for better value. In a letter published Tuesday, Irenic argued that the merger would be destructive to both net asset value and earnings growth, and said Independence Realty Trust would be issuing stock at 26% below the company’s estimated fair value. Irenic also contended that Centerspace is overvalued and that the merger would broaden Independence Realty Trust’s portfolio beyond its Sun Belt exposure into markets it described as having less positive demographic profiles, Bisnow reported.

More like this

Sources