IRT and STAR Merger (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Purchase Price of STAR Merger

The following table summarizes the purchase price of STAR as of the date of the STAR Merger:

	Common Stock		OP Units		Amount
Shares of STAR common stock and STAR OP common units exchanged		110,188,893		7,104,399		117,293,292
Exchange ratio		0.905		0.905		0.905
Shares of IRT common stock and IRT OP common units issued		99,720,948		6,429,481		106,150,429
Closing stock price of IRT on December 15, 2021	$	24.45	$	24.45	$	24.45
Fair value of IRT common stock and IRT OP common units issued to former holders of STAR common stock and STAR OP common units	$	2,438,177	$	157,200	$	2,595,378
STAR indebtedness paid off in connection with the Mergers						288,530
Consideration transferred					$	2,883,908
Fair value of STAR debt assumed by IRT						1,793,614
Total purchase price					$	4,677,522

The below table summarizes asset acquisitions for the year ended December 31, 2021:

Property Name	Date of Purchase	Market	Units (unaudited)		Purchase Price
Solis City Park	05/18/2021	Charlotte, NC		272	$	66,544
Cyan Craig Ranch	06/08/2021	Dallas, TX		322		73,372
Total				594	$	139,916

The below table summarizes asset acquisitions for the year ended December 31, 2020:

Property Name	Date of Purchase	Market	Units (unaudited)		Purchase Price
Adley at Craig Ranch	02/11/2020	Dallas, TX		251	$	51,204
Legacy at Jones Farm	12/01/2020	Huntsville, AL		421		94,027
Total				672	$	145,231

Summary of Purchase Price Allocation of Identifiable Assets and Liabilities Assumed

The following table shows the purchase price allocation of STAR’s identifiable assets and liabilities assumed as of the date of the STAR Merger:

	Amount
Assets:
Real estate held for investment	$	4,547,608
Real estate held for development		38,949
Cash and cash equivalents		69,179
Restricted cash		33,228
Other assets		23,596
Derivative assets		90
Intangible assets		58,048
Total assets	$	4,770,698

Liabilities:
Indebtedness	$	1,793,614
Accounts payable and accrued liabilities		79,099
Accrued interest payable		3,113
Other liabilities		10,965
Total liabilities		1,886,791
Net assets acquired	$	2,883,907

The following table summarizes the aggregate fair value of the assets and liabilities associated with asset acquisition of properties during the year ended December 31, 2021, on the date of acquisition.

Description	Fair Value of Assets Acquired During the Year Ended December 31, 2021
Assets acquired:
Investments in real estate (a)	$	139,336
Other assets		33
Intangible assets		757
Total assets acquired	$	140,126
Liabilities assumed:
Accounts payable and accrued expenses	$	795
Other liabilities		100
Total liabilities assumed		895
Estimated fair value of net assets acquired	$	139,231

(a)

Includes $177 of property related acquisition costs capitalized during the year ended December 31, 2021.

Summary of Unaudited Condensed Proforma Operating Information

The following unaudited condensed pro forma operating information is presented as if the STAR Merger occurred in 2020 and had been included in operations as of January 1, 2020. This pro forma information does not purport to represent what the actual results of the Company would have been had the STAR Merger occurred on this date, nor does it purport to predict the results of operations for future periods.

	Unaudited Year Ended December 31,
	2021			2020
Revenue	$	591,292		$	540,516
Net income (loss) (a)	$	103,932		$	(44,899	)
Net (income) loss attributable to noncontrolling interests	$	(3,426	)	$	1,480
Net income (loss) attributable to common stockholders	$	100,506		$	(43,419	)
Net income (loss) attributable to common stockholders per share - basic and diluted	$	0.45		$	(0.22	)

(a)

Contemporaneously with the closing of the STAR Merger, we hired 485 employees, previously employed by STAR, to operate the properties acquired in the STAR Merger in addition to serving in corporate positions.