Independence Realty's stock suffering biggest-ever loss after stock offering, acquisition
Shares of Independence Realty Trust Inc. plunged 9.6% in afternoon trade Wednesday, after the real estate investment trust announced a share offering to help pay for an acquisition. Both the percentage loss, which is enough to pace the New York Stock Exchange's decliners, and the price loss of $1.00, are on track to be the biggest one-day selloffs since the stock started trading on Aug. 13, 2013. The company said late Tuesday that it was buying a portfolio of nine communities totaling 2,353 units for $228.1 million. To help fund a portion of that purchase, the company announced a public offering of 12.5 million shares, which represents 18% of the total shares outstanding. The company is also offering the underwriters of the offering options to buy an additional 1.875 million shares. The stock, which had closed Tuesday at the highest price since Sept. 26, has gained 5.3% year to date, while the SPDR Real Estate Select Sector ETF has climbed 7.4% and the S&P 500 has gained 10.2%.
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