Centerspace(CSR) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, revenue increased by $457,000 or 0.7$65.0 million compared to $64.6 million for the same period in 2023[128]. - Same-store revenues increased by 3.0$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$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$64.568 million in Q3 2023[141]. - Net income (loss) for Q3 2024 was $(1.951) million, a decrease of 121.3$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$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$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$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$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].