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Steadfast Apartment REIT Stockholders Approve Merger with Independence Realty Trust

Shareholders of Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust, have approved the proposed merger with publicly traded REIT, Independence Realty Trust Inc (NYSE: IRT).

Shareholders of Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust, have approved the proposed merger with publicly traded REIT, Independence Realty Trust Inc (NYSE: IRT).

The companies each held separate special stockholders meetings yesterday in connection with the proposed merger. At the Steadfast special meeting, approximately 58 million shares voted in favor of the proposal, 1 million voted against, and 2.1 million abstained. Shareholders also voted on an executive compensation proposal which received 51.3 million votes in favor, 5.1 million votes against, and 4.7 million abstentions.

During Independence Realty’s special meeting, stockholders approved the issuance of company shares to Steadfast stockholders in connection with the merger.

Under the terms of the merger agreement, each share of Steadfast Apartment REIT will be converted into 0.905 shares of newly issued Independence Realty Trust common stock, including cash in lieu of fractional shares.

Following the merger, Independence Realty Trust and Steadfast stockholders will each own approximately 50 percent of the combined company’s equity.

As previously reported, the combined company will own a portfolio of 131 apartment communities with approximately 38,000 units across 16 states, concentrated in the Sunbelt and Midwest. It 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. The company is expected to maintain its multifamily investment focus with an emphasis on value-add Class B properties.

Shares of Independence Realty Trust closed at $24.94 on Monday, up $0.45 or 1.84 percent from the previous close.

The merger is expected to close on or before Thursday, December 16, 2021.

Steadfast Apartment REIT invests in multifamily communities throughout the United States that have demonstrated high occupancy and income levels across market cycles. In March 2020, Steadfast Apartment REIT completed its mergers with affiliated non-traded REITs, Steadfast Income REIT Inc. and Steadfast Apartment REIT III Inc. Steadfast’s most recent net asset value per share of $15.55 as of December 31, 2020.

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