Independence Realty Trust Completes Management Internalization
December 20 2016 - 4:15PM
Business Wire
Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT) today
announced that IRT had successfully completed internalizing its
management at a closing contemplated by IRT’s previously announced
Securities and Asset Purchase Agreement (the “Purchase Agreement”)
with RAIT Financial Trust and certain of its subsidiaries (“RAIT”)
(NYSE: RAS). At the closing, IRT acquired its external advisor,
which was previously a subsidiary of RAIT, and certain assets
relating to the multifamily property management business of RAIT,
including property management contracts relating to apartment
properties owned by IRT, RAIT and third parties, for the purchase
price of $43 million, subject to pro-rations, plus the assumption
of certain liabilities relating to the multifamily property
management business.
Effective as of the closing, each of Scott F. Schaeffer, IRT’s
Chairman and Chief Executive Officer, Farrell Ender, IRT’s
President, and James J. Sebra, IRT’s Chief Financial Officer
(“CFO”), entered into employment agreements with IRT. Messrs.
Schaeffer and Ender ended their employment with RAIT and are now
solely employees of IRT. Mr. Sebra is expected to remain the CFO of
both IRT and RAIT until the later to occur of March 31, 2017 or the
filing of RAIT’s Annual Report on Form 10-K for the fiscal year
ending December 31, 2016 with the U.S. Securities and Exchange
Commission, after which time, he will end his employment with RAIT
and become the full-time CFO of IRT. At the closing under the
Purchase Agreement, IRT and RAIT entered into a shared services
agreement pursuant to which RAIT and IRT will provide each other
certain transitional services such as information technology, human
resources, insurance, investor relations, legal, tax and accounting
for a six-month transition period after the closing. As previously
announced, pursuant to the Purchase Agreement, IRT repurchased all
7.3 million shares of IRT common stock owned by certain RAIT
subsidiaries for $62.2 million on October 5, 2016, which
represented a portion of the proceeds derived from a public
offering of shares of common stock of IRT, which closed the same
day.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE MKT: IRT) is an
internally-managed real estate investment trust that seeks to own
well-located apartment properties in geographic submarkets that it
believes support strong occupancy and the potential for growth in
rental rates. IRT seeks to provide stockholders with attractive
risk-adjusted returns, with an emphasis on distributions and
capital appreciation.
Forward Looking Statements
Certain statements in this press release, other than purely
historical information, are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally are identified by the
use of the words “believe,” “project,” “expect,” “anticipate,”
“estimate,” “plan,” “may,” “will,” “will continue,” “intend,”
“should,” “may” or similar expressions. Although we believe that
the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, beliefs and expectations, such
forward-looking statements are not predictions of future events or
guarantees of future performance and our actual results could
differ materially from those set forth in the forward-looking
statements. One factor that might cause such a difference is
whether IRT and RAIT will adequately provide each other certain
transitional services under the shared services agreement. A
discussion of this risk and other risks and uncertainties that
could cause actual results and events to differ materially from
such forward-looking statements is included in “Risk Factors” of
IRT’s Annual Report on Form 10-K for the year ended December 31,
2015 and in IRT’s subsequent filings with the Securities and
Exchange Commission. Given these uncertainties, undue reliance
should not be place on such statements. Except as required by law,
we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20161220006003/en/
Independence Realty Trust, Inc.Andres
Viroslav215.207.2100aviroslav@irtreit.com
Independence Realty (NYSE:IRT)
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