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Shareholders Approve Merger of Steadfast REITs

Shareholders of Steadfast Income REIT Inc and Steadfast Apartment REIT III Inc., two affiliated publicly registered non-traded REITs, have approved the merger into Steadfast Apartment REIT.

Shareholders of Steadfast Income REIT Inc and Steadfast Apartment REIT III Inc., two affiliated publicly registered non-traded REITs, have approved the merger into Steadfast Apartment REIT to create a combined company with approximately $3.3 billion in total real estate assets.

In August 2019, Steadfast Apartment REIT announced plans to acquire the two affiliated REITs in separate stock-for-stock, tax-free transactions, and noted that the combined company expects to maintain its focus on multifamily properties with an emphasis on moderate income apartments.

At Steadfast Apartment REIT III’s special meeting of shareholders held on Monday, nearly 4.5 million shares voted in favor of the merger, approximately 72,300 shares voted against, and 195,000 abstained.

At the Steadfast Income REIT special meeting, nearly 38.8 million shares voted in favor of the merger, approximately 1.8 million shares voted against, and 1.8 million abstained.

Steadfast Apartment REIT shareholders did not vote on the proposed transaction.

As previously reported, if the mergers occurred on September 30, 2019, the combined portfolio would consist of 70 properties in 14 states with a total value of $3.2 billion.

Steadfast Income REIT and Steadfast Apartment REIT III stockholders will receive 0.5934 and 1.43 shares, respectively, of Steadfast Apartment REIT common stock.

Following the closing of the transactions, Steadfast Apartment REIT stockholders will own approximately 48.1 percent of the of the combined company, while Steadfast Income REIT and Steadfast Apartment REIT III stockholders will own 40.6 percent and 11.3 percent, respectively.

The Steadfast Apartment REIT board will add one independent director from the Steadfast Income REIT and Steadfast Apartment REIT III boards, increasing the number of directors from five to seven.

Steadfast Apartment REIT, Steadfast Income REIT and Steadfast Apartment REIT III invest in mid-tier apartment communities across the United States and are sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies.

Steadfast Apartment REIT closed its $1 billion offering in March 2016 after launching in December 2013. The company raised $804.4 million as of the third quarter of 2019.

Steadfast Income REIT, which launched in July 2010, closed its $1 billion initial offering in December 2013 and raised $769.6 million in investor equity.

Steadfast Apartment REIT III Inc. closed its $1 billion primary offering at the end of August 2018 after raising $208.2 million in investor equity. The offering was declared effective in February 2016.

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