Centerspace to merge into Independence Realty Trust

Centerspace agrees to merge into Independence Realty Trust, forming a larger Sunbelt- and Midwest-focused apartment REIT pending shareholder approvals.

Rhea-AI Filing Summary

CENTERSPACE (CSR) plans to merge with Independence Realty Trust (IRT) to create a combined middle-market apartment REIT, subject to stockholder approvals and other customary closing conditions. The combined company is expected to own 163 apartment communities with approximately 44,000 apartment homes across 17 states, with about 58% of homes in the Sunbelt, 27% in the Midwest and 15% in the Mountain West.

Centerspace currently owns approximately 10,500 apartment homes in 47 communities, primarily in the Midwest and Mountain West. Following the merger, the surviving company will retain the Independence Realty Trust name and NYSE ticker IRT, be headquartered in Philadelphia, and have an expanded 11‑member board, including two directors from Centerspace. The companies state that they expect scale benefits, geographic diversification, and an expanded renovation and Wi‑Fi upgrade pipeline, and they plan to file a registration statement on Form S‑4 with a joint proxy statement/prospectus for shareholder votes.

Positive

• Strategic merger to create a larger REIT: Centerspace will combine with Independence Realty Trust, forming a leading middle-market apartment REIT with a broader footprint and stated expectations of scale benefits, synergies, and a larger pipeline for value‑add renovations and Wi‑Fi programs.
• Increased portfolio scale and diversification: The combined company is expected to own 163 communities and about 44,000 apartment homes across 17 states, with exposure to the Sunbelt, Midwest, and Mountain West, providing greater geographic diversification than Centerspace alone.

Negative

• Completion of the merger is uncertain: The transaction is subject to shareholder approvals and other customary closing conditions, and risk factors include possible delays, legal proceedings, or termination events that could prevent the merger from closing as anticipated.
• Potential dilution and integration risks: The companies highlight the risk of dilution from IRT’s issuance of additional shares in the transaction and note that anticipated benefits may not be realized due to integration challenges, higher-than-expected costs, or adverse market conditions.

Filing Explained

The merger is proposed, not closed; any IRT share issuance could dilute existing holders, but this filing gives no amount.

The proposed merger has been agreed but not completed: until closing, IRT and Centerspace remain separate, and IRT says issuing additional shares could dilute existing IRT holders.

The filing does not itself offer or sell securities; the proposed transaction remains subject to shareholder approvals and other customary closing conditions.

The disclosed dilution is a possible ownership change, not a stated issuance amount: the communication gives no exchange ratio, number of new shares, or dilution estimate.

The next formal voting materials are expected in IRT's Form S-4, which will include a joint proxy statement/prospectus; closing is targeted as early as the end of 2026 but is not assured.

Key Figures

Centerspace apartment homes: 10,500 apartment homes Centerspace communities: 47 communities Combined communities: 163 apartment communities +5 more

8 metrics

Centerspace apartment homes 10,500 apartment homes Owned by Centerspace across 47 communities before the merger

Centerspace communities 47 communities Centerspace properties across the Midwest and Mountain West

Combined communities 163 apartment communities Expected portfolio size of the combined company

Combined apartment homes 44,000 apartment homes Approximate total homes in the combined portfolio

Regional exposure Sunbelt 58% Share of combined apartment homes in the Sunbelt

Regional exposure Midwest 27% Share of combined apartment homes in the Midwest

Regional exposure Mountain West 15% Share of combined apartment homes in the Mountain West

Post‑merger board size 11 directors Combined company board, including nine from IRT and two from Centerspace

Key Terms

middle-market apartment REIT, forward-looking statements, registration statement on Form S-4, joint proxy statement/prospectus, +2 more

6 terms

middle-market apartment REIT financial

"to create a leading middle-market apartment REIT"

forward-looking statements regulatory

"The information contained in this communication may contain certain forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

registration statement on Form S-4 regulatory

"IRT will file with the SEC a registration statement on Form S-4"

A registration statement on Form S-4 is a formal filing with the U.S. Securities and Exchange Commission used when a company issues shares or other securities as part of a merger, acquisition, exchange offer or similar corporate deal. It bundles the transaction terms, financial statements, risk factors and shareholder vote materials so investors can assess the deal; think of it as a detailed prospectus or buyer’s packet that explains what you would own and how the deal could change your stake.

joint proxy statement/prospectus regulatory

"will include a joint proxy statement of Centerspace and IRT and a prospectus"

A joint proxy statement/prospectus is a single, combined document that both asks shareholders to vote on a proposed transaction and provides the detailed information required when new securities are being offered. Think of it as a combined ballot and product brochure that explains the deal, the companies’ finances, key risks and how ownership will change. Investors rely on it to understand the terms, evaluate risks and make informed voting and investment decisions.

merger agreement financial

"the right of one or both of the parties to terminate the merger agreement"

A merger agreement is a binding contract that lays out the exact terms for two companies to combine, including the price, what each side will deliver, and the conditions that must be met before the deal is completed. Investors care because it sets the timetable, payouts and risks — like a blueprint or prenup that shows whether the deal is likely to close, how ownership will change, and what could cancel or alter the payout they expect.

customary closing conditions financial

"subject to stockholder approvals and other customary closing conditions"

"Customary closing conditions" are standard rules or checks that must be met before a business deal can be finalized, like making sure all paperwork is in order or that certain approvals are obtained. They matter because they help protect both parties, ensuring everything is in place and reducing the risk of surprises or problems after the deal is closed.

FAQ

What transaction involving CSR was announced in this Form 425?

Centerspace (CSR) announced an agreement to merge with Independence Realty Trust to form a larger middle‑market apartment REIT. The combined company will retain the Independence Realty Trust name and ticker IRT and be headquartered in Philadelphia, subject to required approvals.

How large will the combined Centerspace and IRT portfolio be after the merger?

The combined company is expected to own 163 apartment communities with approximately 44,000 apartment homes across 17 states. About 58% of homes will be in the Sunbelt, 27% in the Midwest, and 15% in the Mountain West.

What is Centerspace’s current portfolio size before the merger?

Centerspace currently owns approximately 10,500 apartment homes in 47 communities across the Midwest and Mountain West, with its largest presence in Minneapolis and Denver, according to the communication.

When do Centerspace and IRT expect the merger to close?

They state that the merger is expected to be finalized as early as the end of 2026, subject to stockholder approvals and other customary closing conditions, and they note that delays or termination events could affect this timing.

How will governance and leadership look after the Centerspace–IRT merger?

The combined company’s board is expected to have 11 members, including nine from Independence Realty Trust and two from Centerspace. Scott Schaeffer is expected to remain Chairman and CEO and Jim Sebra President and CFO of the combined company.

What regulatory filings will be made for the Centerspace (CSR) merger with IRT?

Independence Realty Trust plans to file a registration statement on Form S‑4 with the SEC, including a joint proxy statement/prospectus for Centerspace and IRT shareholders, which will contain detailed information about the proposed transaction.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 09/09/2026 - 04:19 PM Accepted by SEC EDGAR 09/09/2026 - 04:15 PM Learn about SEC filing dates

Filed by Independence Realty Trust, Inc. 
pursuant to Rule 425 under the Securities Act of 1933, as amended 
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934, as amended
Subject Company: Centerspace
Commission File No. 001-35624

Employee Announcement

Dear IRTeam,

I am excited to announce that Independence Realty Trust (IRT) and Centerspace (CSR) have reached an agreement to merge our two companies to create a leading middle-market apartment REIT. This is an important announcement that marks the next phase of growth for our company.
 

The combination joins together two high-quality portfolios with complementary geographic footprints. Centerspace owns approximately 10,500 apartment homes in 47 communities across the Midwest and Mountain West, with its largest presence in Minneapolis and Denver. The combined company will own 163 apartment communities, comprising approximately 44,000 apartment homes across 17 states — approximately 58% in the Sunbelt, 27% in the Midwest and 15% in the Mountain West. This leads to immediate scale benefits and synergies, greater geographic diversification, and an expanded pipeline for our value-add renovation and Wi-Fi programs.
 

The Centerspace team shares our strong corporate culture and commitment to residents. Employees of both companies will benefit from the expanded expertise and resources that will result from our combined strengths.
 

We will retain our corporate name and ticker symbol (NYSE: IRT), and our headquarters will remain in Philadelphia. I will remain as Chairman and Chief Executive Officer and Jim Sebra will remain as President and Chief Financial Officer. Our Board of Directors will expand to 11 members, nine from IRT and two from Centerspace. Until closing, IRT and Centerspace will continue to operate as two separate, independent companies.  
 

Since going public in 2013, we have created a resilient portfolio and business model positioned for long-term value creation, and in 2021 we successfully integrated the Steadfast portfolio within six months of closing. We can execute exciting transactions like this one due to your unwavering efforts to support our ongoing growth strategy.
 

Undoubtedly, you will have questions about this merger. We invite you to refer to the attached Frequently Asked Questions for additional details. Jim and I will host an all-employee call at 11:00am ET today to answer your questions directly.
 

We expect this merger to be finalized as early as the end of 2026, subject to stockholder approvals and other customary closing conditions, and will provide updates to keep you informed along the way. In the meantime, we will continue to run our business with the same dedication and professionalism that has made our company great. I am very proud of the work we do together, and excited for this next chapter in the company’s evolution.

Best,

Scott Schaeffer
Chairman and Chief Executive Officer 
 

Cautionary Statement Regarding Forward-Looking Information

The information contained in this communication may contain certain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectations and intentions of Centerspace and IRT, the expected timing of completion of the proposed transaction, and other statements that are not historical facts.  Such statements are subject to numerous assumptions, risks, estimates, uncertainties and other important factors that change over time and could cause actual results to differ materially from any results, performance, or events expressed or implied by such forward-looking statements, including as a result of the factors referenced below.  Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “assumes,” “may,” “projects,” “outlook,” “future,” and variations of those words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial condition, or plans expressed or implied by the forward-looking statements. Although we believe the expectations reflected in these forward-looking statements are based upon reasonable assumptions, we can give no assurance that IRT’s and Centerspace’s expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, undue reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond IRT’s and Centerspace’s control and could differ materially from actual results and performance.
 

The forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond Centerspace’s and IRT’s control. The following factors, among others, could cause our future results to differ materially from those expressed in the forward-looking statements:

●	IRT’s and Centerspace’s ability to complete the transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary stockholder approvals and satisfaction of other closing conditions to consummate the transaction;
●	the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Centerspace and IRT;
●	the outcome of any legal proceedings that may be instituted against Centerspace or IRT;
●	delays in completing the proposed transaction involving Centerspace and IRT;
●	the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Centerspace and IRT do business;
●	the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events;
●	the ability of Centerspace and IRT to meet expectations regarding the timing, completion and accounting and tax treatment of the transaction;
●	diversion of IRT’s and Centerspace’s management’s attention from ongoing business operations and opportunities;
●	potential adverse reactions or changes to business, customer or employee relationships, including those resulting from the announcement or completion of the transaction;
●	the ability to complete the transaction and integration of Centerspace and IRT successfully;
●	the dilution caused by IRT’s issuance of additional shares of its capital stock in connection with the transaction;
●	financing risks, including IRT’s and Centerspace’s potential inability to meet existing covenants in IRT’s and Centerspace’s existing credit facilities or to obtain new debt or equity financing on favorable terms, or at all;
●	uncertain global macro-economic and political conditions, the impact of actual or threatened wars or other international conflicts, such as in Ukraine, the Middle East, and South America, including sanctions imposed by the U.S. and other countries, on inflation, trade, and general economic conditions;
●	deteriorating economic conditions and rising unemployment rates, energy costs, and inflation, in the markets where we own apartment communities or in which we may invest in the future;
●	rental conditions in IRT’s and Centerspace’s markets, including occupancy levels and rental rates, IRT’s and Centerspace’s potential inability to renew residents or obtain new residents upon expiration of existing leases, IRT’s and Centerspace’s ability to identify and consummate attractive acquisitions and dispositions on favorable terms, IRT’s and Centerspace’s ability to reinvest sales proceeds successfully, IRT’s and Centerspace’s inability to accommodate any significant decline in the market value of real estate serving as collateral for IRT’s and Centerspace’s debt and mortgage obligations; changes in tax and housing laws, including rent control laws, or other factors;
●	timely access to material and labor required to renovate and maintain apartment communities;
●	adverse changes in IRT’s and Centerspace’s markets, including future demand for apartment homes in those markets, barriers of entry into new markets, limitations on IRT’s and Centerspace’s ability to increase rental rates, IRT’s and Centerspace’s ability to identify and consummate attractive acquisitions and dispositions on favorable terms, IRT’s and Centerspace’s ability to reinvest sales proceeds successfully, and inability to accommodate any significant decline in market value of real estate serving as collateral for IRT’s and Centerspace’s debt and mortgage obligations;
●	the ability of Centerspace to complete its proposed dispositions on a timely basis, or at all;
●	risks that Centerspace’s recently completed or proposed dispositions disrupt current plans and operations; and
●	other factors that may affect the future results of Centerspace and IRT.

 Additional factors that could cause results to differ materially from those described above can be found in Centerspace’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarter ended June 30, 2026, each of which is on file with the Securities and Exchange Commission (the “SEC”) and available on the “Investor Relations” section of Centerspace’s website, www.centerspacehomes.com, under the heading “Investors” and in other documents Centerspace files with the SEC, and in IRT’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its subsequent Quarterly Reports on Form 10-Q, including for the quarter ended June 30, 2026, each of which is on file with the SEC and available on IRT’s website, www.irtliving.com, under the heading “Investors” and in other documents IRT files with the SEC.

 All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above.  Forward-looking statements speak only as of the date they are made and are based on information available at that time.  Neither Centerspace nor IRT assume any obligation to update forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in circumstances or other factors affecting forward-looking statements that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws.  If Centerspace or IRT updates one or more forward-looking statements, no inference should be drawn that Centerspace or IRT will make additional updates with respect to those or other forward-looking statements.  As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. 

 Important Additional Information about the Proposed Transaction and Where to Find It

 In connection with the proposed transaction, IRT will file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of Centerspace and IRT and a prospectus of IRT, as well as other relevant documents concerning the proposed transaction.  The proposed transaction involving Centerspace and IRT will be submitted to Centerspace’s shareholders and IRT’s shareholders for their consideration. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.  INVESTORS, SHAREHOLDERS OF CENTERSPACE AND SHAREHOLDERS OF IRT ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.  Investors and shareholders will be able to obtain the registration statement and the definitive joint proxy statement/prospectus free of charge from the SEC’s website or from Centerspace or IRT.  The documents filed by Centerspace with the SEC may be obtained free of charge at Centerspace’s website at www.centerspacehomes.com or at the SEC’s website at www.sec.gov.  The documents filed by IRT with the SEC may be obtained free of charge at IRT’s website at www.irtliving.com or at the SEC’s website at www.sec.gov. 

 Participants in the Solicitation

Centerspace, IRT, and certain of their respective trustees or directors, as applicable, and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Centerspace and stockholders of IRT in connection with the proposed transaction.  Information regarding the interests of the trustees or directors, as applicable, and executive officers of Centerspace and IRT and other persons who may be deemed to be participants in the solicitation of shareholders of Centerspace and IRT in connection with the transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the definitive joint proxy statement/prospectus related to the transaction, which will be filed by Centerspace with the SEC.  Information regarding Centerspace’s trustees and executive officers is available in its definitive joint proxy statement relating to its 2026 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2026, and other documents filed by Centerspace with the SEC. Information regarding IRT’s directors and executive officers is available in its definitive proxy statement relating to its 2026 Annual Meeting of Stockholders, which was filed with the SEC on March 19, 2026, and other documents filed by IRT with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials filed with the SEC by Centerspace and IRT, respectively.  Free copies of these documents may be obtained as described above under “Important Additional Information.”

No Offer or Solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.