Centerspace(CSR) - 2025 Q1 - Quarterly Results

Financial Performance - Centerspace reported a net loss of $0.22 per diluted share for Q1 2025, an improvement from a net loss of$ 0.37 per diluted share in Q1 2024[4]. - Revenue for Q1 2025 increased by $2.6 million or 4.0% to$ 67.1 million compared to $64.5 million in Q1 2024[4]. - Same-store revenues rose by 3.5% year-over-year, contributing to a 2.1% increase in same-store Net Operating Income (NOI)[4]. - Core FFO per diluted share decreased by 1.6% to$ 1.21 in Q1 2025, down from $1.23 in Q1 2024, primarily due to increased property taxes[4]. - The weighted average occupancy rate improved to 95.8% in Q1 2025 from 94.6% in Q1 2024[4]. - The net loss attributable to common shareholders was$ 3,734 million, an improvement from a net loss of $5,079 million in the previous quarter[20]. - Operating income for Q1 2025 was$ 4,746,000, an increase of $1,888,000 or 66.1% sequentially and$ 671,000 or 16.5% year-over-year[29]. - Net operating income for Q1 2025 was $40,362,000, reflecting a$ 280,000 increase or 0.7% sequentially and a $925,000 increase or 2.3% year-over-year[29]. - The company reported a net loss per common share of$ 0.22, an improvement from $0.31 in the previous quarter[20]. Liquidity and Capital Structure - Centerspace has total liquidity of$ 223.2 million at the end of Q1 2025, consisting of $211.3 million available under lines of credit and$ 11.9 million in cash[5]. - Total debt as of March 31, 2025, was $955,453,000, slightly down from$ 966,623,000 at the end of the previous quarter[44]. - The debt service coverage ratio improved to 2.83x for the three months ended March 31, 2025, compared to 2.80x in the previous quarter[50]. - The total debt to total market capitalization ratio was 42.9% as of March 31, 2025, compared to 42.4% in the previous quarter[48]. - The average interest rate on total debt was 3.57% for the quarter ended March 31, 2025, slightly down from 3.58% in the previous quarter[44]. Revenue and Expense Trends - Total expenses decreased to $62,347 million from$ 63,551 million in the previous quarter, reflecting a reduction in property operating expenses[20]. - Total property operating expenses, including real estate taxes, rose to $26,731,000, an increase of$ 404,000 or 1.5% sequentially and $1,662,000 or 6.6% year-over-year[32]. - Same-store controllable expenses totaled$ 15,710,000, an increase of $316,000 or 2.1% year-over-year[32]. - Real estate taxes increased by$ 1,221,000 or 20.3% year-over-year, totaling $7,236,000 in Q1 2025[32]. - The overall expenses for same-store properties increased by 5.8% to$ 25,380,000 in Q1 2025 from $24,000,000 in Q1 2024[53]. Outlook and Guidance - The updated financial outlook for 2025 maintains the same-store revenue growth guidance at 1.50% to 3.50%[7]. - The company anticipates FFO per share to remain between$ 4.73 and $4.97 for 2025[7]. - The Core FFO per diluted share is projected to be between$ 4.86 and $5.10 for 2025, compared to$ 4.73 in the previous year[67]. - Non-controllable expenses for 2025 are expected to range from $9,670,000 to$ 9,670,000, reflecting an increase of 5.75% to 7.75%[67]. - The total NOI for Same-Store properties is projected to be $38,878,000, with a growth rate of 1.25% to 3.25%[67]. Operational Metrics - The average monthly rental rate increased by 1.7% to$ 1,586 in Q1 2025, up from $1,559 in Q1 2024[53]. - The average monthly revenue per occupied home rose by 2.2% to$ 1,775 in Q1 2025, compared to $1,737 in Q1 2024[53]. - The Average Monthly Rental Rate for Same-Store properties increased to$ 1,586, up from $1,573 in the previous quarter, representing a growth of 0.8%[60]. - The Weighted Average Occupancy for Same-Store properties improved to 95.8%, compared to 95.5% in the prior quarter[60]. - The number of Same-Store apartment homes was 12,595, showing a slight increase from 12,580 on December 31, 2024[60]. Market and Regional Performance - North Dakota reported a significant NOI increase of 12.2% year-over-year, reaching$ 4,513,000 in Q1 2025[53]. - Minneapolis, MN achieved a 3.4% revenue growth, totaling $22,482,000 in Q1 2025, compared to$ 21,736,000 in Q1 2024[53]. - Omaha, NE experienced a 5.1% revenue increase to $3,751,000 in Q1 2025, up from$ 3,568,000 in Q1 2024[53]. - The company reported a 4.5% increase in revenues for the Other Mountain West region, totaling $5,332,000 in Q1 2025[53]. Non-GAAP Measures and Definitions - The company emphasizes that FFO and Core FFO are non-GAAP measures that provide additional insights into operational performance, excluding certain non-routine items[82]. - Net Operating Income (NOI) is defined as total real estate revenues less property operating expenses, excluding various costs, and is considered an important measure of operating performance[91]. - Total debt to total market capitalization is a non-GAAP measure that assesses the proportion of total debt relative to the overall market capitalization, providing insight into financial leverage[103]. - Same-store controllable expenses exclude real estate taxes and insurance, providing a measure of expenses within management's control for budgeting and performance evaluation[100].