Financial Performance - Centerspace (CSR) reported quarterly funds from operations (FFO) of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, but down from $1.20 per share a year ago, representing an FFO surprise of 0.85% [1] - The company posted revenues of $65.03 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2%, compared to $64.57 million in the same quarter last year [2] - Over the last four quarters, Centerspace has surpassed consensus FFO estimates four times but has not beaten consensus revenue estimates [2] Stock Performance and Outlook - Centerspace shares have increased approximately 20.9% since the beginning of the year, while the S&P 500 has gained 21.8% [3] - The future price movement of the stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][6] - The current consensus FFO estimate for the upcoming quarter is $1.20 on revenues of $67 million, and for the current fiscal year, it is $4.83 on revenues of $262.9 million [7] Industry Context - The REIT and Equity Trust - Residential industry, to which Centerspace belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can impact Centerspace's stock performance [5]

[Earnings Release](index=2&type=section&id=Earnings%20Release) [Financial & Operating Highlights](index=2&type=section&id=Financial%20%26%20Operating%20Highlights) Centerspace reported a Q3 2024 net loss of $0.40 per diluted share, Core FFO of $1.18, 2.8% same-store NOI growth, and raised its 2024 Core FFO guidance Q3 & YTD 2024 Key Financial Metrics (Per Diluted Share) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $(0.40) | $0.41 | $(0.96) | $2.96 | | FFO | $1.01 | $1.15 | $3.40 | $3.15 | | Core FFO | $1.18 | $1.20 | $3.68 | $3.56 | Q3 2024 Same-Store Performance vs. Prior Periods | Same-Store Metric | Q3 2024 vs Q3 2023 | Q3 2024 vs Q2 2024 | YTD 2024 vs YTD 2023 | | :--- | :--- | :--- | :--- | | Revenues | 3.0% | —% | 3.3% | | Expenses | 3.2% | 5.8% | 2.0% | | NOI | 2.8% | (3.7)% | 4.2% | - Weighted average occupancy for the same-store portfolio remained stable at **95.3%** in Q3 2024, up from 94.6% in Q3 2023[4](index=4&type=chunk) - The company raised the mid-point and narrowed the 2024 financial outlook for net loss and Core FFO per diluted share[5](index=5&type=chunk) - During Q3 2024, Centerspace issued approximately **1.5 million** common shares for **$105.1 million** and used the proceeds to redeem all outstanding Series C preferred shares for **$97.0 million**, which carried a 6.625% distribution rate[5](index=5&type=chunk) [Balance Sheet & Liquidity](index=3&type=section&id=Balance%20Sheet%20%26%20Liquidity) Centerspace maintained a solid liquidity position of $235.5 million at Q3 2024, comprising available lines of credit and cash equivalents - Total liquidity at the end of Q3 2024 stood at **$235.5 million**[7](index=7&type=chunk) Components of Liquidity (as of September 30, 2024) | Component | Amount (in millions) | | :--- | :--- | | Available under lines of credit | $221.0 | | Cash and cash equivalents | $14.5 | | **Total Liquidity** | **$235.5** | [Updated 2024 Financial Outlook](index=3&type=section&id=Updated%202024%20Financial%20Outlook) Centerspace updated its 2024 financial outlook, raising the Core FFO per share midpoint to $4.82-$4.90 and narrowing same-store NOI growth to 3.25%-3.75% Updated Full-Year 2024 Guidance | Metric | Previous Outlook | Updated Outlook | | :--- | :--- | :--- | | Net income per Share – diluted | $(1.21) - $(1.01) | $(1.21) - $(1.06) | | Same-Store Revenue Growth | 3.25% - 4.25% | 3.00% - 3.50% | | Same-Store Expense Growth | 3.50% - 4.75% | 2.50% - 3.25% | | Same-Store NOI Growth | 3.00% - 4.00% | 3.25% - 3.75% | | Core FFO per Share – diluted | $4.78 - $4.92 | $4.82 - $4.90 | - Additional assumptions for 2024 include same-store recurring capital expenditures of **$1,100 to $1,150 per home** and value-add expenditures of **$23.0 million to $25.0 million**[9](index=9&type=chunk) [Subsequent Events](index=3&type=section&id=Subsequent%20Events) Centerspace acquired The Lydian in Denver, CO, for $54.0 million on October 1, 2024, financed by assumed debt, operating partnership units, and cash - On October 1, 2024, Centerspace acquired The Lydian in Denver, CO, for **$54.0 million**[10](index=10&type=chunk) - The acquisition was funded by assuming mortgage debt, issuing common operating partnership units, and using cash[10](index=10&type=chunk) [Supplemental Financial and Operating Data](index=6&type=section&id=Supplemental%20Financial%20and%20Operating%20Data) [Common Share Data](index=7&type=section&id=Common%20Share%20Data) Centerspace's common stock closed Q3 2024 at $70.47 with a 4.3% dividend yield, and total shares outstanding increased to 19.4 million Q3 2024 Common Share Performance (as of Sep 30, 2024) | Metric | Value | | :--- | :--- | | High closing price | $75.50 | | Low closing price | $67.04 | | Closing price at end of quarter | $70.47 | | Closing dividend yield – annualized | 4.3% | | Total closing common shares & units (thousands) | 19,415 | [Key Financial Data](index=8&type=section&id=Key%20Financial%20Data) This section presents unaudited consolidated statements of operations and balance sheets, detailing YTD 2024 revenues, net loss, and total assets [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Centerspace reported Q3 2024 revenue of $65.0 million and a net loss of $6.2 million, with YTD 2024 revenue at $194.6 million and a net loss of $14.6 million Statement of Operations Highlights (in thousands) | Line Item | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $65,025 | $64,568 | $194,574 | $197,241 | | Total Expenses | $58,675 | $58,408 | $176,380 | $179,746 | | Gain (loss) on sale of real estate | $0 | $11,235 | $(577) | $71,327 | | Net Income (Loss) Available to Common Shareholders | $(6,166) | $6,167 | $(14,581) | $44,661 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of Q3 2024, Centerspace's total assets were $1.89 billion and total liabilities $982.3 million, with Series C Preferred Shares redeemed during the quarter Balance Sheet Highlights (in thousands) | Line Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total real estate investments, net | $1,834,080 | $1,889,443 | | Cash and cash equivalents | $14,453 | $8,630 | | **Total Assets** | **$1,887,405** | **$1,926,361** | | Total Liabilities | $982,266 | $978,776 | | Series C Preferred Shares | $0 | $93,530 | | **Total Equity** | **$888,579** | **$931,025** | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section reconciles key non-GAAP metrics like NOI, FFO, Core FFO, and Adjusted EBITDA, used to evaluate core operational performance [Net Operating Income (NOI)](index=11&type=section&id=Net%20Operating%20Income%20%28NOI%29) Q3 2024 total NOI increased 1.4% to $38.4 million, driven by a 2.8% rise in same-store NOI, which grew 4.2% year-to-date Same-Store NOI Performance | Period | Revenue Growth | Expense Growth | NOI Growth | | :--- | :--- | :--- | :--- | | Q3 2024 vs Q3 2023 | 3.0% | 3.2% | 2.8% | | YTD 2024 vs YTD 2023 | 3.3% | 2.0% | 4.2% | [Same-Store Controllable Expenses](index=13&type=section&id=Same-Store%20Controllable%20Expenses) Q3 2024 same-store property operating expenses increased 3.2% year-over-year, primarily due to a 7.6% rise in non-controllable expenses, while controllable expenses grew 0.8% Q3 2024 vs Q3 2023 Same-Store Expense Growth | Expense Category | % Change YoY | | :--- | :--- | | Controllable Expenses | 0.8% | | Non-controllable Expenses | 7.6% | | - Real estate taxes | 1.1% | | - Insurance | 26.5% | | **Total Same-Store Expenses** | **3.2%** | [Funds From Operations (FFO) and Core FFO](index=14&type=section&id=Funds%20From%20Operations%20%28FFO%29%20and%20Core%20FFO) Q3 2024 FFO per diluted share was $1.01 and Core FFO was $1.18, with year-to-date Core FFO increasing 3.4% to $3.68 FFO and Core FFO Reconciliation Highlights (Per Diluted Share) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $(0.40) | $0.41 | $(0.96) | $2.96 | | FFO | $1.01 | $1.15 | $3.40 | $3.15 | | Core FFO | $1.18 | $1.20 | $3.68 | $3.56 | [Adjusted EBITDA](index=15&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q3 2024 was $31.8 million, a slight increase from Q3 2023, with year-to-date Adjusted EBITDA at $97.2 million Adjusted EBITDA Performance (in thousands) | Period | Adjusted EBITDA | | :--- | :--- | | Q3 2024 | $31,757 | | Q3 2023 | $31,692 | | YTD 2024 | $97,178 | | YTD 2023 | $96,773 | [Debt and Capital Analysis](index=16&type=section&id=Debt%20and%20Capital%20Analysis) This section details Centerspace's debt structure and capital position, showing $921.3 million in total debt at 3.59% weighted average interest and stable credit metrics [Debt Analysis](index=16&type=section&id=Debt%20Analysis) As of Q3 2024, Centerspace had $921.3 million in total debt at a 3.59% weighted average interest rate, with a well-structured maturity profile extending beyond 2028 - Total debt outstanding as of Q3 2024 was **$921.3 million**, with a weighted average interest rate of **3.59%**[35](index=35&type=chunk)[36](index=36&type=chunk) - The company has a staggered debt maturity profile, with **63.8%** of its debt maturing in 2029 or later[35](index=35&type=chunk) [Capital Analysis](index=17&type=section&id=Capital%20Analysis) At Q3 2024, Centerspace's total market capitalization was $2.31 billion, with a moderate leverage profile and a Core FFO payout ratio of 63.6% Key Capital & Credit Metrics (as of Sep 30, 2024) | Metric | Value | | :--- | :--- | | Total Market Capitalization | $2.31 billion | | Total Debt to Total Market Capitalization | 40.0% | | Net Debt / Adjusted EBITDA | 7.17x | | Payout Ratio (Core FFO basis) | 63.6% | [Portfolio Analysis](index=18&type=section&id=Portfolio%20Analysis) This section details Centerspace's portfolio performance, highlighting 2.8% Q3 same-store NOI growth, 95.3% occupancy, and $42.6 million in year-to-date capital expenditures [Same-Store Comparisons](index=18&type=section&id=Same-Store%20Comparisons) Q3 2024 same-store NOI grew 2.8% year-over-year, led by North Dakota's 10.6% growth, though sequential NOI decreased 3.7% due to higher expenses Q3 2024 vs Q3 2023 Same-Store NOI Growth by Region | Region | % of NOI Contribution | NOI % Change YoY | | :--- | :--- | :--- | | Denver, CO | 23.0% | 0.2% | | Minneapolis, MN | 34.4% | 2.5% | | North Dakota | 12.6% | 10.6% | | Omaha, NE | 5.9% | 6.2% | | **Same-Store Total** | **100.0%** | **2.8%** | - Sequentially, same-store NOI decreased by **3.7%** from Q2 2024 to Q3 2024, as revenues were flat while expenses increased by **5.8%**[45](index=45&type=chunk) - For the first nine months of 2024, same-store NOI increased by **4.2%** compared to the same period in 2023[48](index=48&type=chunk) [Portfolio Summary](index=21&type=section&id=Portfolio%20Summary) As of Q3 2024, Centerspace's portfolio comprised 12,883 homes with 95.3% weighted average occupancy and an average monthly rental rate of $1,577 Portfolio Metrics (All Communities, as of Sep 30, 2024) | Metric | Value | | :--- | :--- | | Number of Apartment Homes | 12,883 | | Weighted Average Occupancy | 95.3% | | Average Monthly Rental Rate | $1,577 | | Average Monthly Revenue per Occupied Home | $1,750 | [Capital Expenditures](index=22&type=section&id=Capital%20Expenditures) Year-to-date Q3 2024 capital expenditures totaled $42.6 million, including $10.3 million in recurring and $20.6 million in value-add investments for the same-store portfolio Capital Expenditures - YTD 2024 (in thousands) | Category (Same-Store) | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Recurring Capital Expenditures | $10,316 | $8,684 | | Total Value Add | $20,608 | $15,478 | | **Total Same-Store Capital Spend** | **$30,924** | **$24,162** | - Year-to-date recurring capital expenditures for the same-store portfolio were **$820 per apartment home**, up from $690 in the prior year period[52](index=52&type=chunk) [2024 Financial Outlook](index=23&type=section&id=2024%20Financial%20Outlook) Centerspace updated its 2024 financial outlook, raising Core FFO per diluted share guidance to $4.82-$4.90 and same-store NOI growth to 3.25%-3.75% Updated 2024 Full-Year Guidance Ranges | Metric | Updated Low | Updated High | | :--- | :--- | :--- | | Same-Store Revenue Growth | 3.00% | 3.50% | | Same-Store Total Expense Growth | 2.50% | 3.25% | | Same-Store NOI Growth | 3.25% | 3.75% | | FFO per diluted share | $4.50 | $4.59 | | Core FFO per diluted share | $4.82 | $4.90 | - The updated outlook for Net Loss per share is now **$(1.21) to $(1.06)**[56](index=56&type=chunk) [Non-GAAP Financial Measures and Other Terms](index=25&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Terms) This section defines key non-GAAP financial measures and operational terms, explaining their calculation and utility for evaluating company performance - Defines key non-GAAP metrics including Adjusted EBITDA, FFO, Core FFO, and NOI, explaining their calculation and utility for investors[60](index=60&type=chunk)[66](index=66&type=chunk)[73](index=73&type=chunk) - Provides definitions for operational terms such as Average Monthly Rental Rate, Blended Lease Rate Growth, and Weighted Average Occupancy[61](index=61&type=chunk)[63](index=63&type=chunk)[84](index=84&type=chunk) - Explains the components of capital expenditures, distinguishing between Recurring Capital Expenditures and Value Add investments[78](index=78&type=chunk)[83](index=83&type=chunk)

MINNEAPOLIS, Oct. 28, 2024 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the three and nine months ended September 30, 2024. The tables below show Net Income (Loss), Funds from Operations ("FFO")1, and Core FFO1, all on a per diluted share basis, for the three and nine months ended September 30, 2024; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; along with SameStore Weighted-Average Occupancy and leasing rates for ...

Financial Performance - For the three months ended September 30, 2024, revenue increased by $457,000 or 0.7% to $65.0 million compared to $64.6 million for the same period in 2023[128]. - Same-store revenues increased by 3.0% for the three months ended September 30, 2024, contributing to a 2.8% increase in same-store NOI[129]. - Non-GAAP Core Funds from Operations (Core FFO) for the three months ended September 30, 2024, increased by $245,000 or 1.1% to $22.0 million compared to $21.7 million for the same period in 2023[132]. - The net loss was $0.40 per diluted share for the three months ended September 30, 2024, compared to net income of $0.41 per diluted share for the same period in the prior year[131]. - Net operating income (NOI) for the three months ended September 30, 2024, was $38.4 million, reflecting a 1.4% increase from $37.8 million in the same period of 2023[138]. - Total revenue for the three months ended September 30, 2024, was $65.025 million, a 0.7% increase from $64.568 million in Q3 2023[141]. - Net income (loss) for Q3 2024 was $(1.951) million, a decrease of 121.3% compared to net income of $9.169 million in Q3 2023[141]. - Net loss available to common shareholders decreased to $14.6 million for the nine months ended September 30, 2024, compared to net income of $44.7 million in the same period in the prior year[165]. - FFO applicable to common shares for the nine months ended September 30, 2024, increased to $61.7 million, representing an increase of 8.0% compared to the prior year[173]. - Core FFO applicable to common shares and units for the three months ended September 30, 2024, was $21,969 thousand, slightly up from $21,724 thousand in 2023[175]. Property Management and Operations - The company owned interests in 70 apartment communities consisting of 12,883 apartment homes, with property valued at $2.4 billion[126]. - The company disposed of two apartment communities consisting of 205 apartment homes during the nine months ended September 30, 2024, compared to thirteen communities with 2,279 homes in the same period of 2023[136]. - Property management expenses for the three months ended September 30, 2024, were $2.2 million, a 2.0% increase from $2.2 million in the same period of 2023[138]. - General and administrative expenses increased by 7.0% to $4.1 million for the three months ended September 30, 2024, compared to $3.8 million for the same period in 2023[138]. - Same-store revenue increased by 3.0%, or $1.8 million, for the three months ended September 30, 2024, compared to the same period in the prior year[144]. - Weighted average occupancy for same-store properties rose to 95.3% in Q3 2024 from 94.6% in Q3 2023[143]. - Property operating expenses for same-store communities increased by 3.2%, or $807,000, in Q3 2024 compared to Q3 2023[144]. - Same-store net operating income (NOI) increased by $1.0 million to $36.8 million for the three months ended September 30, 2024, compared to $35.8 million in the same period of the prior year[144]. Revenue and Expenses - Revenue from same-store communities increased by 3.3%, or $6.0 million, for the nine months ended September 30, 2024, compared to the same period in the prior year[145]. - Same-store NOI increased by $4.5 million to $112.5 million for the nine months ended September 30, 2024, compared to $108.0 million in the same period of the prior year[145]. - Revenue from non-same-store communities increased by $5.5 million for the nine months ended September 30, 2024, compared to the same period in the prior year[147]. - NOI at non-same-store communities increased by $3.8 million for the nine months ended September 30, 2024, compared to the same period in the prior year[147]. - Revenue from dispositions decreased by $13.9 million for the nine months ended September 30, 2024, compared to the same period in the prior year[150]. - General and administrative expenses decreased by 17.7% to $12.9 million for the nine months ended September 30, 2024, compared to $15.7 million in the same period of the prior year[158]. - Interest expense was comparable at $27.5 million for the nine months ended September 30, 2024, and 2023[162]. - Casualty loss decreased to $918,000 for the nine months ended September 30, 2024, compared to $1.2 million in the same period of the prior year[154]. Capital and Financing - The company issued approximately 1.5 million common shares for $105.1 million under its at-the-market offering program, using proceeds to redeem all outstanding Series C preferred shares for $97.0 million[130]. - Total liquidity as of September 30, 2024, was approximately $235.5 million, including $221.0 million available on lines of credit and $14.5 million in cash[183]. - The company had $39.0 million outstanding on its revolving line of credit, with additional borrowing availability of $211.0 million[184]. - The company had a multibank revolving line of credit with total commitments of $250.0 million, which matures in July 2028[184]. - The company issued $175.0 million in unsecured senior promissory notes, with an amended shelf agreement extending borrowing capacity to $300.0 million[187]. - The company has a $198.9 million Fannie Mae Credit Facility Agreement, secured by mortgages on 11 apartment communities, with a blended average interest rate of 2.78%[188]. - Mortgage loan indebtedness, excluding the FMCF, was $387.3 million as of September 30, 2024, down from $392.3 million at December 31, 2023[189]. - The company redeemed all 3.9 million Series C preferred shares for an aggregate price of $97.0 million on September 30, 2024[190]. - The company amended its equity distribution agreement to increase the maximum aggregate offering price of common shares from $250.0 million to $500.0 million[191]. - During the nine months ended September 30, 2024, the company generated $112.2 million in net proceeds from the issuance of common shares[196]. - The company has a share repurchase program authorized for up to $50.0 million, with $4.7 million remaining as of September 30, 2024[193]. - The company funded capital improvements for apartment communities of approximately $47.4 million during the nine months ended September 30, 2024[196]. - The weighted average interest rate on mortgage debt was 4.05% as of September 30, 2024[189]. Market and Operational Challenges - The company continues to monitor supply chain challenges and inflationary pressures that may increase operating expenses[200]. - The Company is currently not involved in any material pending legal proceedings, aside from ordinary routine litigation incidental to its business operations[212].

Investors interested in REIT and Equity Trust - Residential stocks are likely familiar with Centerspace (CSR) and American Homes 4 Rent (AMH) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targ ...

Group 1 - Shares of Centerspace (CSR) have lost 5% over the past four weeks, but a hammer chart pattern formed in the last trading session suggests potential support and a trend reversal [1] - The hammer pattern indicates a possible exhaustion of selling pressure, which, combined with rising optimism among Wall Street analysts regarding future earnings, enhances the prospects for a trend reversal [1] Group 2 - The hammer chart pattern is characterized by a small candle body and a long lower wick, signaling a potential trend reversal when formed at the bottom of a downtrend [2] - Hammer candles can occur on various timeframes and are used by both short-term and long-term investors, but should be combined with other bullish indicators for confirmation [2] Group 3 - There has been an upward trend in earnings estimate revisions for CSR, with the consensus EPS estimate increasing by 0.1% over the last 30 days, indicating bullish sentiment among analysts [3] - CSR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3] - The Zacks Rank serves as a timing indicator, suggesting that CSR's prospects are beginning to improve, further supporting the potential for a trend reversal [3]

MINNEAPOLIS, Oct. 7, 2024 /PRNewswire/ -- Centerspace (NYSE: CSR) will release its operating results for the quarter ended September 30, 2024, after the market closes on Monday, October 28, 2024. Management will host a conference call to discuss those results on the following day, Tuesday, October 29, 2024, at 10:00 a.m. Eastern Time. Interested parties may access the conference call via the following: Live Conference Call Details: Live webcast: https://events.q4inc.com/attendee/841168447 Operator Assisted ...

Group 1 - Centerspace announced the acquisition of The Lydian in Denver, CO, for a total consideration of $54 million [1] - The Lydian is a 129-home apartment community with 23,000 square feet of fully leased office and retail space, constructed in 2018 [3] - Centerspace has entered the Denver market in 2017 and now operates 2,536 homes across nine communities in the Denver and Fort Collins regions [3] Group 2 - The acquisition was financed through the assumption of $35 million in mortgage debt, issuance of $14.5 million in common operating partnership units, and cash [4] - The assumed mortgage debt has an interest rate of 3.72%, is interest-only until January 2032, and matures in February 2037 [4] - Centerspace completed the redemption of all outstanding 6.625% Series C Cumulative Redeemable Preferred Shares on September 30, 2024, and raised approximately $113.73 million through its ATM program [2] Group 3 - Centerspace's President and CEO, Anne Olson, expressed excitement about adding The Lydian to the portfolio, emphasizing the strategic financing and value addition for shareholders [5] - The company currently owns 71 apartment communities with a total of 13,012 homes across several states, including Colorado, Minnesota, and Montana [5]

Core Viewpoint - Centerspace (NYSE:CSR) is a multifamily REIT with a portfolio primarily in Minnesota and Colorado, facing challenges in growth and returns but showing potential due to undervaluation and favorable market conditions [2][10]. Company Overview - Centerspace was incorporated in 1970 and is headquartered in Minot, ND, owning and operating multifamily properties mainly in Minnesota and Colorado [1]. Portfolio and Market Outlook - The REIT's portfolio includes 70 communities with a total of 12,883 apartments across 6 states, with Minnesota representing 51.5% and Colorado 32.7% of the portfolio [3][4]. - Minnesota has stable population growth and a low unemployment rate of 3.20%, while Colorado's population growth is more volatile but generally higher, with an unemployment rate of 3.9% [4][5]. Rental Market Dynamics - High mortgage rates make home buying unattractive, leading to increased demand for rental properties, as rent prices are lower than combined maintenance, tax expenses, and mortgage payments [5][6]. - The supply of rental properties is relatively low, indicated by historically low vacancy rates and a decrease in building permits [7]. Financial Performance - The long-term stock price performance has been underwhelming, with current prices similar to those decades ago, underperforming peers [8]. - In 2023, average monthly revenue per occupied home increased by 6.9%, with an occupancy rate of 94.9% and same-store NOI rising by 8.95% YoY [8]. - Management projects a core FFO per share of $4.85 for 2024, indicating a 1.46% increase from 2023 [8]. Leverage and Liquidity - Centerspace maintains a moderate leverage level, with 54.85% of assets funded through various debt instruments and a low weighted average interest rate of 3.62% [9]. - The REIT has adequate liquidity, with annual maturities not exceeding 12% of total debt until 2028 and liquid assets comprising 35.16% of total debt [9]. Dividend and Valuation - The current quarterly dividend is $0.75 per share, yielding 4%, with a payout ratio of 61.85% [10]. - The forward AFFO yield is 6.47%, indicating good value for residential REITs, despite a low dividend yield compared to the sector median of 4.31% [10]. - Centerspace shares are undervalued, needing a 27.94% increase to reach the average FFO multiple and a 33.26% increase to reach NAV of $99.94 per share based on 2024 forecasts [11][13].

MINNEAPOLIS, Sept. 3, 2024 /PRNewswire/ -- (NYSE: CSR) Centerspace's (the "Company") Board of Trustees announced today that it has declared a regular quarterly distribution of $0.75 per share/unit, payable on October 10, 2024, to common shareholders and unitholders of record at the close of business on September 30, 2024. The Board of Trustees also declared a distribution of $0.4140625 per share on the 6.625% Series C Cumulative Redeemable Preferred Shares (NYSE: CSR-PRC), payable on September 30, 2024, to ...