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Centerspace Reports First Quarter 2025 Financial & Operating Results and Reaffirms 2025 Core FFO per Share Guidance

1. Centerspace reports a net loss reduction from $0.37 to $0.22 per share. 2. Revenue increased by 4% to $67.1 million compared to last year. 3. Core FFO decreased to $1.21 per share, representing a 1.6% decline. 4. Weighted average occupancy rose to 95.8%, indicating strong tenant demand. 5. Updated financial outlook projects stable revenue and expense growth.

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$60.1305/01 04:49 PM EDTEvent Start
$61.4205/02 11:17 PM EDTLatest Updated
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FAQ

Why Bullish?

The reduction in net loss and increased revenue are positive indicators. Historically, similar reports from real estate firms have led to bullish market reactions.

How important is it?

The financial results and forecasts are crucial to assessing Centerspace's market stability. Positive growth signals can lead to increased investor confidence.

Why Short Term?

Immediate changes in stock prices are likely due to quarterly results. Short-term investor sentiment may react quickly to these updates.

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AMTPLDESS
, /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the three months ended March 31, 2025. The tables below show Net Loss, Funds from Operations ("FFO")1, and Core FFO1, all on a per diluted share basis, for the three months ended March 31, 2025; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted Average Occupancy, Lease Rate Growth, and Resident Retention for each of the three months ended March 31, 2025, December 31, 2024, and March 31, 2024. Three Months Ended March 31, Per Common Share 2025 2024 Net loss - diluted $                        (0.22) $                        (0.37) FFO - diluted(1) $                          1.17 $                          1.16 Core FFO - diluted(1) $                          1.21 $                          1.23 Year-Over-Year Comparison Sequential Comparison Same-Store Results(2) Q1 2025 vs. Q1 2024 Q1 2025 vs. Q4 2024 Revenues 3.5 % 0.9 % Expenses 5.8 % 1.1 % Net Operating Income ("NOI")(1) 2.1 % 0.8 % Three months ended Same-Store Results(2) March 31, 2025 December 31, 2024 March 31, 2024 Weighted Average Occupancy 95.8 % 95.6 % 94.6 % New Lease Rate Growth (1.1) % (3.5) % — % Renewal Lease Rate Growth 3.5 % 3.1 % 3.2 % Blended Lease Rate Growth (3) 0.7 % 0.3 % 1.4 % Retention Rate 49.2 % 54.7 % 53.4 % (1) NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below. (2) Same-store results are updated for annual composition change including acquisition, disposition, and repositioning activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial Operating Data within. (3) Blended lease rate growth is weighted by lease count. Overview of the First Quarter Revenue for the first quarter of 2025 increased by $2.6 million or 4.0% to $67.1 million, compared to $64.5 million for the first quarter of 2024; Same-store revenues increased by 3.5% for the first quarter of 2025 compared to the first quarter of 2024, driving a 2.1% increase in same-store NOI compared to the same period of the prior year Net loss was $0.22 per diluted share for the first quarter of 2025, compared to net loss of $0.37 per diluted share for the same period of the prior year; and Core FFO per diluted share decreased 1.6% to $1.21 for the three months ended March 31, 2025, compared to $1.23 for the three months ended March 31, 2024, driven by a $0.06 per share increase in same-store property taxes in the first quarter of 2025 after experiencing one-time property tax refunds in the first quarter of 2024. Balance Sheet At the end of the first quarter, Centerspace had $223.2 million of total liquidity on its balance sheet, consisting of $211.3 million available under the lines of credit and cash and cash equivalents of $11.9 million. Updated 2025 Financial Outlook Centerspace updated its 2025 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended March 31, 2025 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook. Previous Outlook for 2025 Updated Outlook for 2025 Low High Low High Net loss per Share – diluted $(0.71) $(0.45) $(0.71) $(0.45) Same-Store Revenue 1.50 % 3.50 % 1.50 % 3.50 % Same-Store Expenses 2.00 % 4.00 % 2.00 % 4.00 % Same-Store NOI 1.25 % 3.25 % 1.25 % 3.25 % FFO per Share – diluted $4.73 $4.97 $4.73 $4.97 Core FFO per Share – diluted $4.86 $5.10 $4.86 $5.10 Additional assumptions: Same-store recurring capital expenditures of $1,125 per home to $1,175 per home Value-add expenditures of $16.0 million to $18.0 million Note: FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to "2025 Financial Outlook" in the Supplemental Financial and Operating Data within. Upcoming Events Centerspace is scheduled to participate in the following conferences: Wells Fargo Real Estate Securities Conference, May 6-7, 2025; BMO North American Real Estate Conference, May 13, 2025; and National Association of Real Estate Investment Trusts ("Nareit") REITweek: 2025 Investor Conference, June 2-4, 2025. Earnings Call Live webcast and replay:  https://ir.centerspacehomes.com Live Conference Call Conference Call Replay Friday, May 2, 2025, at 1:00 PM ET Replay available until May 9, 2025 USA Toll Free                                           1-833-470-1428 USA Toll Free 1-866-813-9403 International 1-404-975-4839 International 1-929-458-6194 Canada Toll Free 1-833-950-0062 Access Code 591644 Access Code 484784 Supplemental Information Supplemental Operating and Financial Data for the quarter ended March 31, 2025 included herein ("Supplemental Information"), is available in the Investors section on Centerspace's website at https://www.centerspacehomes.com or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.   About Centerspace Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of March 31, 2025, Centerspace owned 71 apartment communities consisting of 13,012 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a top workplace for the fifth consecutive year in 2024 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com. Forward-Looking Statements Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company's current expectations and assumptions, and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission ("SEC"), including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, in its subsequent quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events. Contact Information Investor RelationsJosh KlaetschPhone: 952-401-6600Email: [email protected] Marketing & MediaKelly WeberPhone: 952-401-6600Email: [email protected] SOURCE Centerspace WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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