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IRT and STAR Merger | 12 Months Ended
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Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
IRT and STAR Merger | IRT and STAR Merger On December 16, 2021, the STAR Merger closed. In the STAR Merger, each share of common stock, par value $0.01 per share, of STAR issued and outstanding immediately prior to the STAR Merger was converted into 0.905 newly issued shares of IRT common stock, par value $0.01 per share, with cash paid in lieu of fractional shares. In addition, each then outstanding unit of limited partnership of STAR OP (other than units owned by STAR) was automatically converted into 0.905 common units of limited partnership of IROP (each such unit, an “IROP unit”). Following the STAR Merger, continuing IRT common stockholders and IROP unitholders, as a group, held approximately 53% of the issued and outstanding shares of common stock of the combined company and former STAR common stockholders and STAR OP unitholders, as a group, held approximately 47% (assuming, in each case, an exchange of each IROP unit for a share of IRT common stock). The STAR Merger was consummated in order to increase the scale and scope of our business, provide enhanced portfolio diversification and exposure to high growth markets, and to unlock synergies. Through the STAR Merger, we acquired 68 apartment communities that contained 21,394 units and two apartment communities under development and that will contain upon completion an aggregate of 621 units (unaudited). The consolidated net assets and results of operations of STAR are included in our consolidated financial statements from the closing date of December 16, 2021, going forward. 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 |
We accounted for the STAR Merger as a business combination under the acquisition method of accounting under ASC 805, which requires, among other things, the assets and liabilities assumed to be recognized at their fair values as of the acquisition date. Management engaged a third-party valuation specialist to assist with the fair value assessment of the investments in real estate, which included an allocation of the purchase price. Similar to management’s methods, the third party generally used income, market, and cost approaches to determine the fair value of the assets acquired. The third party used stabilized NOI and market specific capitalization and discount rates. Management reviewed the inputs used by the third party specialist as well as the allocation of the purchase price provided by the third party to ensure reasonableness and that the procedures were performed in accordance with management’s policy. For the period from December 16, 2021 through December 31, 2021, STAR contributed $15,589 of revenues and $18,388 of net loss to our results of operations, inclusive of certain merger and integration costs. We incurred total merger and integration related expenses of $0, $5,505 and $47,063 for the years ended December 31, 2023, 2022, and 2021, respectively. These amounts were expensed as incurred, and are included in the consolidated statements of operations in the item titled “Merger and integration costs”, and primarily consist of technology migration and implementation costs, consulting and professional fees and employee severance costs. The following unaudited pro forma operating information is presented as if the STAR Merger occurred in 2021 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
Revenue | $ | 591,292 |  |  |
Net income (loss) (a) | $ | 103,932 |  |  |
Net (income) loss attributable to noncontrolling interests | $ | (3,426) |  |  |
Net income (loss) attributable to common stockholders | $ | 100,506 |  |  |
Net income (loss) attributable to common stockholders per share - basic and diluted | $ | 0.45 |  |  |
| (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.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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