Concerned about your investment in Independence Realty Trust Inc. (IRT)?
Are you concerned about your investment in Independence Realty Trust Inc. LLC? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Independence Realty Trust, Inc., a real estate investment trust, reportedly acquires, owns, operates, improves and manages multifamily apartment communities across non-gateway U.S. markets.
On July 26, 2021, Steadfast Apartment REIT, Inc. and Independence Realty Trust, Inc. (NYSE: IRT) announced the definitive merger agreement under which Steadfast will merge with and into IRT, with IRT surviving as the continuing public company. The merger has been approved by shareholders this week and is expected to close on or before Thursday, December 16, 2021.
The combined company will reportedly own a portfolio of 131 apartment communities comprising approximately 38,000 units across 16 states in the Sunbelt on a proforma basis. The combined company is expected to have a pro forma equity market capitalization of approximately $4 billion and a pro forma total enterprise value of approximately $7 billion, according to the announcement.
Under the terms of the merger agreement, each Steadfast common share will be converted into 0.905 shares of newly issued IRT common stock, including cash in lieu of fractional shares.
Following the merger, on a proforma basis, IRT stockholders are expected to own approximately 50% of the combined company’s equity, and Steadfast stockholders are expected to own approximately 50%. The transaction is expected to close during the fourth quarter of 2021, subject to customary closing conditions, including approval of both IRT and STAR stockholders. This strategic transaction was unanimously approved by the Board of Directors of IRT and the Board of Directors of STAR, according to the announcement.
The Effects of a Merger on Shareholders
Companies often merge as part of a strategic effort to boost shareholder value, often by creating new business lines and/or gaining greater market share. However, the economic environment at the time of the merger, size of the companies and management of the merger process all play a part in future returns for shareholders.
Shareholders may experience a significant loss of voting power, and while the spike in trading volume tends to inflate share prices, if economic conditions are not favorable at the time of the merger, shareholders may see significant losses.
How to Recover Investment Losses
The White Law Group is investigating potential securities claims involving FINRA registered brokerage firms who may have unsuitably recommended high risk investments to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
If a broker dealer fails to perform due diligence on any investment that they recommend, they may be held responsible for investment losses.
If you are concerned about your investment in Independence Realty Trust Inc. (IRT) the White Law Group may be able to help you. To speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.