Sep. 15, 2015, 12:52 PM
- Independence Realty Trust (IRT +3.1%) shareholders approve the issuance of shares toward the company's acquisition of Trade Street Residential (TSRE +1.5%), and in a separate vote, TSRE owners approve the company's sale.
- The deal is expected to close on Thursday, and TSRE shareholders will receive $3.80 in cash and 0.4108 shares of IRT for each share of TSRE they own.
- TSRE will be delisted after the close on Thursday.
Jun. 22, 2015, 12:48 PM
- Home Properties is up 2.3% after agreeing to sell itself to Lone Star Funds, but the news isn't doing a whole lot to lift M&A animal spirits in the sector for now.
- As part of the deal UDR (UDR +0.5%) will acquire from Lone Star up to $908M of Home Properties' apartments in the D.C. area. The purchase is expected to boost AFFO by $0.015 per share in 2016.
- Presentation slides
- Earlier this year, Associated Estates agreed to sell itself to a Brookfield Asset Management fund, and last year there was Essex Property Trust's purchase of BRE Properties.
- Equity Residential (EQR -0.3%), AvalonBay (AVB), Post Properties (PPS -0.2%), Aimco (AIV +0.2%), Camden Property (CPT +0.1%), Mid-America (MAA +0.2%), Trade Street Residential (TSRE), Investors Real Estate (IRET -0.4%), NexPoint Residential (NXRT -0.5%), Bluerock Residential (BRG -1.4%).
May 11, 2015, 8:42 AM
- Independence Realty Trust (NYSEMKT:IRT) speeds its scale-up with an agreement to purchase Trade Street Residential (NASDAQ:TSRE) for cash and stock. The deal will boost the number of properties owned by IRT to 50 from 31, with the number of units increasing 55% to 14,044.
- IRT's average property age will dip to 20 years from 25, and average base rents, occupancy levels, and operating margins will all rise.
- The deal is expected to be accretive to 2016 core FFO and AFFO per share.
- The TSRE chairman and CEO will each join IRT's board, expanding the size to 7 from 5.
- Consideration: $3.80 in cash and 0.4108 shares of IRT for each share of TSRE. At IRT's $8.57 close on Friday, it values TSRE at just $6.21 per share vs. its most recent close of $7.08. At IRT's "reference price" of $9.25 - a 1% premium to 45-day average - it values TSRE at $7.60 each. IRT has the option to increase the cash portion of the consideration to $4.56 per share, with a corresponding cut in the stock portion.
- IRT's property manager is RAIT Financial (NYSE:RAS) - also an owner of 23% of IRT - and it supports the deal
- Previously: Trade Street Residential misses by $0.01 (May 11)
Trade Street Residential Inc is a full service, vertically integrated, self-administered and self-managed corporation focused on acquiring, owning, operating and managing garden-style & mid-rise apartment communities in United States and Texas.
Industry: REIT - Retail
Country: United States