Centerspace(CSR) - 2024 Q4 - Annual Results

Financial Performance - Net loss per diluted share for the year ended December 31, 2024, was $(1.27), compared to net income of $2.32 per diluted share for the year ended December 31, 2023[5] - Core FFO increased to $4.88 per diluted share for the year ended December 31, 2024, a 2.1% increase from $4.78 for the year ended December 31, 2023[5] - The company provided guidance for 2025, projecting a diluted net loss per share range of $(0.71) to $(0.45) and FFO per share range of $4.73 to $4.97[10] - Total revenue for the twelve months ended December 31, 2024, was $260,983,000, a slight decrease of $326,000 or 0.1% compared to the previous year[34] - The company reported a net income (loss) per common share of $(0.31) for the three months ended December 31, 2024, compared to $(0.40) in the previous quarter[24] - The company reported a significant decrease in operating income for the twelve months ended December 31, 2024, down to $20,475,000 from $84,453,000, a decline of $63,978,000 or 75.8%[34] - The company reported a net loss available to common shareholders for the twelve months ended December 31, 2024, was $(19,660) million, with a guidance range for 2025 between $(10,845) million and $(5,945) million[80] Revenue and Growth - Same-store revenue growth was 3.3% year-over-year, contributing to a 3.7% increase in same-store NOI[5] - Revenue for the three months ended December 31, 2024, was $66,409 million, a slight increase from $65,025 million in the previous quarter[24] - Revenue from same-store properties for the three months ended December 31, 2024, was $63,127,000, an increase of $517,000 or 0.8% sequentially and $1,897,000 or 3.1% year-over-year[33] - Same-store revenues for 2024 reached $249.872 million, a 3.3% increase from $241.989 million in 2023[64] - The company reported a 7.2% revenue growth in North Dakota, with revenues reaching $29.119 million in 2024[64] Expenses and Liabilities - Total expenses for the three months ended December 31, 2024, were $63,551 million, compared to $58,675 million in the previous quarter, reflecting a 8.5% increase[24] - Property operating expenses for the three months ended December 31, 2024, totaled $26,327,000, a decrease of $332,000 or 1.2% sequentially and an increase of $1,229,000 or 4.9% year-over-year[36] - Total liabilities as of December 31, 2024, were $1,014,704 million, compared to $982,266 million as of September 30, 2024, indicating a 3.7% increase[26] - Total debt as of December 31, 2024, is $966,623,000, with a total market capitalization of $2,280,054,000, resulting in a total debt to total market capitalization ratio of 42.4%[52] Capital Expenditures - Same-store capital expenditures ranged from $1,125 to $1,175 per home, with value-add expenditures estimated between $16.0 million and $18.0 million[14] - Total capital expenditures for all properties in 2024 amounted to $7.294 million, down from $23.759 million in 2023[72] - Recurring capital expenditures per apartment home for same-store properties decreased to $238, down from $476 in 2023[72] - The company plans to maintain a focus on capital expenditures for value-add projects, with total value-add expenditures for same-store properties at $3.093 million in 2024[72] Shareholder Information - Centerspace issued approximately 1.6 million common shares for net proceeds of $112.6 million, with an average price of $71.66 per share[6] - Closing common shares outstanding increased to 16,719 thousand as of December 31, 2024, from 14,963 thousand a year earlier[21] - The company reported dividends to Series D preferred unitholders totaling $640,000 for the twelve months ended December 31, 2024, consistent with the previous year[42] - Total common distribution declared for the twelve months ended December 31, 2024, was $49,911,000, compared to $46,442,000 for the previous year[54] Operational Metrics - The weighted average occupancy rate for the same-store portfolio improved to 95.5%, up from 94.8% in Q4 2023, marking a 0.7% growth[57] - Average monthly rental rates increased to $1,573, a 1.6% rise from $1,548 in Q4 2023[57] - The average monthly revenue per occupied apartment home for same-store properties was $1,751, an increase of 4.0% from $1,683 in 2023[68] - The company emphasizes the importance of Net Operating Income (NOI) as a supplemental measure of operating performance, excluding various non-operational costs[99] Guidance and Projections - The guidance for 2025 indicates a continued focus on revenue growth and occupancy improvement strategies[75] - Revenue for the twelve months ended December 31, 2024, was $252,269 million, with same-store growth projected between 1.50% and 3.50% for 2025[77] - Total NOI for the same period was $157,739 million, with a guidance range for 2025 between $161,300 million and $164,800 million[77] - Core FFO applicable to common shares and Units for the twelve months ended December 31, 2024, was $91,319 million, with a projected range for 2025 between $96,800 million and $101,625 million[80]