MINNEAPOLIS, Nov. 3, 2025 /PRNewswire/ -- Centerspace (NYSE: CSR) (the "Company") announced today its financial and operating results for the three and nine months ended September 30, 2025. 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, 2025; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted Average Occupancy, Lease Rate Growth, and Resident Retention for each of the three months ended September 30, 2025, June 30, 2025, and September 30, 2024 and the nine months ended September 30, 2025 and 2024.
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | ||||
| Per Common Share | | 2025 | | 2024 | | 2025 | | 2024 |
| Net income (loss) - diluted | | $ 3.19 | | $ (0.40) | | $ 2.12 | | $ (0.96) |
| FFO - diluted(1) | | $ 1.19 | | $ 1.01 | | $ 3.60 | | $ 3.40 |
| Core FFO - diluted(1) | | $ 1.19 | | $ 1.18 | | $ 3.68 | | $ 3.68 |
| | | Year-Over-Year Comparison | | Sequential Comparison | | YTD Comparison |
| Same-Store Results (2) | | Q3 2025 vs. Q3 2024 | | Q3 2025 vs. Q2 2025 | | 2025 vs. 2024 |
| Revenues | | 2.4 % | | - % | | 2.8 % |
| Expenses | | (0.8) % | | 3.0 % | | 2.6 % |
| NOI(1) | | 4.5 % | | (1.8) % | | 3.0 % |
| | | Three months ended | | Nine months ended | ||||||
| Same-Store Results (2) | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| Weighted Average Occupancy | | 95.8 % | | 96.1 % | | 95.6 % | | 95.9 % | | 95.3 % |
| New Lease Rate Growth | | (1.7) % | | 2.1 % | | (1.3) % | | (0.3) % | | 0.8 % |
| Renewal Lease Rate Growth | | 2.9 % | | 2.6 % | | 3.0 % | | 2.9 % | | 3.2 % |
| Blended Lease Rate Growth (3) | | 1.3 % | | 2.4 % | | 1.3 % | | 1.6 % | | 2.1 % |
| Retention Rate | | 59.9 % | | 60.2 % | | 61.3 % | | 58.6 % | | 61.1 % |
| | |
| (1) | NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below. |
| (2) | Same-store results are updated for annual composition change including acquisition, disposition, changes in held for sale classification, and repositioning activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial Operating Data within. |
| (3) | Blended lease rate growth is weighted by lease count. |
Overview of the Third Quarter
- Acquired Railway Flats in Loveland, Colorado consisting of 420 homes for an aggregate purchase price of $132.2 million, which includes the assumption of $76.5 million in mortgage debt;
- Sold five apartment communities in St. Cloud, Minnesota for an aggregate sale price of $124.0 million;
- Revenue increased by $6.4 million or 9.8% to $71.4 million, compared to $65.0 million for the same period of the prior year;
- Same-store revenues increased by 2.4%, driving a 4.5% increase in same-store NOI compared to the same period of the prior year;
- Net income was $3.19 per diluted share, compared to net loss of $0.40 per diluted share for the same period of the prior year;
- Core FFO per diluted share increased 0.8% to $1.19, compared to $1.18 for the same period of the prior year; and
- Repurchased 62,973 common shares for total consideration of $3.5 million and an average price of $54.86 per share.
Balance Sheet
At the end of the third quarter, Centerspace had $200.4 million of total liquidity on its balance sheet, consisting of $187.5 million available under lines of credit and cash and cash equivalents of $12.9 million.
Updated 2025 Financial Outlook
Centerspace updated its 2025 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended September 30, 2025 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
| | Previous Outlook for 2025 | Updated Outlook for 2025 | ||
| | Low | High | Low | High |
| Net income per Share - diluted | $2.50 | $2.76 | $1.97 | $2.19 |
| Same-Store Revenue | 2.00 % | 3.00 % | 2.00 % | 2.50 % |
| Same-Store Expenses | 1.00 % | 2.50 % | 0.50 % | 1.00 % |
| Same-Store NOI | 2.50 % | 3.50 % | 3.00 % | 3.50 % |
| FFO per Share - diluted | $4.70 | $4.83 | $4.73 | $4.82 |
| Core FFO per Share - diluted | $4.88 | $5.00 | $4.88 | $4.96 |
Additional assumptions:
- Same-store recurring capital expenditures of $1,150 per home to $1,200 per home
- Value-add expenditures of $14.0 million to $16.0 million
- Proceeds from dispositions of $210.0 million to $215.0 million
Note: FFO, Core FFO. and NOI are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to "2025 Financial Outlook" in the Supplemental Financial and Operating Data within.
Upcoming Events
Centerspace is scheduled to participate in the UBS Conference, December 1-4, 2025.
Earnings Call
| Live webcast and replay: https://ir.centerspacehomes.com | ||||
| | | | ||
| Live Conference Call | | Conference Call Replay | ||
| Tuesday, November 4, 2025, at 10:00 AM ET | | Replay available until November 11, 2025 | ||
| USA Toll Free | 1-833-470-1428 | | USA Toll Free | 1-866-813-9403 |
| USA Local | 1-646-844-6383 | | USA Local | 1-929-458-6194 |
| Canada Toll Free | 1-833-950-0062 | | | |
| Access Code | 885094 | | Access Code | 272530 |
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended September 30, 2025 included herein ("Supplemental Information") is available in the Investors section on Centerspace's website at https://www.centerspacehomes.com or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2025, Centerspace owned 68 apartment communities consisting of 12,941 apartment homes located in Colorad o, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a top workplace for the sixth consecutive year in 2025 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company's current expectations and assumptions, and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions, or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission ("SEC"), including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, in its subsequent quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 952-401-6600
Email: [email protected]
Marketing & Media
Kelly Weber
Phone: 952-401-6600
Email: [email protected]
SOURCE Centerspace
