Centerspace(CSR) - 2025 Q1 - Quarterly Report

Revenue and Income - For the three months ended March 31, 2025, revenue increased by $2.6 million or 4.0$67.1 million, compared to $64.5 million for the same period in 2024[116]. - Same-store revenues increased by 3.5$67.1 million, up 4.0% from $64.5 million in the same period of 2024[124]. - Revenue from same-store communities increased by 3.5$2.2 million, for the three months ended March 31, 2025, compared to the same period in the prior year[127]. - Operating income increased by $671,000 or 16.5$4.746 million for the three months ended March 31, 2025, compared to $4.075 million for the same period in 2024[122]. - Net operating income (NOI) increased by$925,000 or 2.3% to $40.362 million for the three months ended March 31, 2025, compared to$39.437 million for the same period in 2024[122]. - Net operating income (NOI) for same-store communities increased by $781,000 to$38.9 million for the three months ended March 31, 2025[127]. - Funds from Operations (FFO) applicable to common shares increased to $23.2 million for the three months ended March 31, 2025, a 10.9$20.9 million in the prior year[143]. - Core FFO applicable to common shares and units rose to $23.979 million in Q1 2025, compared to$22.046 million in Q1 2024, marking an increase of about 8.8%[145]. Loss and Expenses - Net loss was $0.22 per diluted share for the three months ended March 31, 2025, compared to a net loss of$0.37 per diluted share for the same period in 2024[116]. - Net loss available to common shareholders was $3.7 million for the three months ended March 31, 2025, compared to a net loss of$5.5 million in the same period of 2024, representing a 32.3% improvement[137]. - General and administrative expenses increased by $374,000 to$5.0 million in Q1 2025, primarily due to higher share-based compensation and consulting fees[133]. - Casualty loss decreased to $532,000 in Q1 2025 from$820,000 in the same period of 2024, reflecting less claim activity[131]. - Property operating expenses for same-store communities increased by 5.8%, or $1.4 million, in the three months ended March 31, 2025[127]. - Interest expense rose by 4.6$9.6 million for the three months ended March 31, 2025, compared to $9.2 million in the same period of 2024[135]. Assets and Liquidity - Property owned at historical cost was$2.5 billion as of March 31, 2025[112]. - The company owned interests in 71 apartment communities consisting of 13,012 apartment homes as of March 31, 2025[112]. - As of March 31, 2025, total liquidity was approximately $223.2 million, slightly down from$224.6 million as of December 31, 2024[153]. - Cash and cash equivalents decreased to $11.9 million as of March 31, 2025, from$12.0 million as of December 31, 2024[165]. - The company had a multibank revolving line of credit with total commitments of $250 million, with$46 million outstanding as of March 31, 2025, leaving $204 million available for borrowing[154]. - The weighted average interest rate on mortgage debt was 4.02$418.5 million[160]. Distributions - The company has paid quarterly distributions continuously since its first distribution in 1971[113]. - Distributions declared for common shares were $0.77 per share in Q1 2025, compared to$0.75 per share in Q1 2024[148]. - The company paid distributions on common shares, Series E preferred units, and Units totaling $14.7 million[173]. Capital and Investments - The company funded capital improvements for apartment communities amounting to approximately$5.0 million[173]. - The company repaid $1.9 million of mortgage principal during the reporting period[173]. - The company had no acquisitions or dispositions during the three months ended March 31, 2025[147]. - The company amended its equity distribution agreement to increase the maximum aggregate offering price of common shares available for sale from$250 million to $500 million[161]. Market and Economic Conditions - The company is facing supply chain challenges and inflationary pressures, which are likely to increase operating expenses, particularly in energy, labor, and construction materials[169]. - Rising interest rates could negatively impact the company's borrowing costs for variable rate borrowings or refinancing activities[170]. - The company's exposure to market risk is primarily related to fluctuations in interest rates on fixed and variable rate debt obligations[175]. - Future revenue and cash flows are dependent on prevailing market prices and interest rates[174]. - The company does not enter into derivative instruments for trading or speculative purposes[175]. Accounting and Compliance - There have been no significant changes to critical accounting policies during the three months ended March 31, 2025[172]. - As of March 31, 2025, the company had no significant off-balance sheet arrangements[171].