Why Independence Realty Trust Stock Sank Today
It's essentially acquiring a peer REIT.
Overview
The latest marriage proposal in the real estate investment trust (REIT) world wasn't making its suitor popular on Wednesday. Investors traded out of Independence Realty Trust's (NYSE: IRT) stock after the company and its target revealed plans for what's tantamount to a buyout. Independence's shares declined by more than 4% across the trading session.
That morning, Independence and fellow residential REIT Centerspace (NYSE: CSR) announced they would combine in an all-stock deal. The companies said that fusing their businesses together would create a REIT with a pro forma market cap of around $5 billion and an enterprise value of roughly $8.1 billion.
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Originally published at www.fool.com.