0000798359false00007983592024-07-292024-07-290000798359us-gaap:CommonClassAMember2024-07-292024-07-290000798359us-gaap:RedeemableConvertiblePreferredStockMember2024-07-292024-07-29



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 29, 2024
 
CENTERSPACE
(Exact name of Registrant as specified in its charter)
North Dakota001-3562445-0311232
(State or Other Jurisdiction
of Incorporation or Organization)		(Commission File Number)(I.R.S. Employer Identification No.)
 
3100 10th Street SW, Post Office Box 1988, Minot, ND 58702-1988
(Address of principal executive offices) (Zip code)

(701) 837-4738
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares of Beneficial Interest, no par valueCSRNew York Stock Exchange
Series C Cumulative Redeemable Preferred SharesCSR -PRCNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
Centerspace (the "Company") issued an earnings release on July 29, 2024, announcing certain financial and operational results for the three and six months ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 and incorporated herein by reference.
The information in this Item 2.02 and the earnings release furnished as Exhibit 99.1 under Item 9.01, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any Company filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01    Financial Statements and Exhibits
(d)Exhibits
Exhibit
NumberDescription
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL Document.
    



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Centerspace
By/s/ Anne Olson
Anne Olson
Date: July 29, 2024President and Chief Executive Officer



Exhibit 99.1
q2_2024.jpg


Earnings Release
cs-centered_blue.jpg  
Centerspace Reports Second Quarter 2024 Financial Results and Raises Mid-Point for 2024 Core FFO per Share Guidance
MINNEAPOLIS, MN, July 29, 2024 – Centerspace (NYSE: CSR) announced today its financial and operating results for the three and six months ended June 30, 2024. 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 six months ended June 30, 2024; Same-Store Revenues, Expenses, and Net Operating Income (“NOI”)1 over comparable periods; and Same-Store Weighted-Average Occupancy for each of the three months ended June 30, 2024, March 31, 2024, and June 30, 2023.
 Three Months Ended June 30,Six Months Ended June 30,
Per Common Share2024202320242023
Net income (loss) - diluted
$(0.19)$(0.23)$(0.56)$2.55 
FFO - diluted(1)
$1.23 $1.11 $2.39 $2.01 
Core FFO - diluted(1)
$1.27 $1.28 $2.49 $2.36 
 Year-Over-Year
Comparison		Sequential
Comparison		YTD Comparison
Same-Store Results(2)
Q2 2024 vs. Q2 2023Q2 2024 vs. Q1 20242024 vs. 2023
Revenues3.4%1.7%3.5%
Expenses5.1%1.8%1.4%
NOI(1)
2.4%1.7%4.9%
Three months endedSix months ended
Same-Store Results(2)
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Weighted Average Occupancy95.3%94.6%95.2%94.9%95.0%
(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 Supplemental and Financial Operating Data within.
(2)Same-store results are updated for disposition activity. Refer to “Non-GAAP Financial Measures and Reconciliations” in Supplemental and Financial Operating Data within.
Highlights
•Centerspace raised the mid-point and narrowed the 2024 financial outlook ranges for net loss per diluted share, FFO per diluted share and Core FFO per diluted share. Refer to page S-17 in the Supplemental and Financial Operating Data within for additional detail.
•Net loss was $0.19 per diluted share for the second quarter of 2024, compared to Net loss of $0.23 per diluted share for the same period of the prior year;
•Core FFO per diluted share increased 5.5% to $2.49 for the six months ended June 30, 2024, compared to $2.36 for the six months ended June 30, 2023;
•Same-store revenues increased by 3.4% for the second quarter of 2024 compared to the second quarter of 2023, driving a 2.4% increase in same-store NOI compared to the same period of the prior year; and
•Centerspace issued approximately 110,000 common shares for gross consideration of $7.7 million, and an average gross price of $69.82 per share during the second quarter of 2024 under its at-the-market offering program, compared to approximately 88,000 of repurchases in the first quarter of 2024 at an average repurchase price of $53.60 per share, excluding commissions.
1

Balance Sheet
At the end of the second quarter, Centerspace had $222.3 million of total liquidity on its balance sheet, consisting of $208.0 million available under the lines of credit and cash and cash equivalents of $14.3 million.
Revised 2024 Financial Outlook
Centerspace revised its 2024 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2024 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the revised outlook.
Previous Outlook for 2024Updated Outlook for 2024
LowHighLowHigh
Net income per Share – diluted$(1.34)$(1.10)$(1.21)$(1.01)
Same-Store Revenue3.00%4.50%3.25%4.25%
Same-Store Expenses4.00%5.50%3.50%4.75%
Same-Store NOI2.50%4.00%3.00%4.00%
FFO per Share – diluted$4.57$4.76$4.61$4.76
Core FFO per Share – diluted$4.74$4.92$4.78$4.92
Additional assumptions:
•Same-store recurring capital expenditures of $1,100 per home to $1,150 per home
•Value-add expenditures of $23.0 million to $25.0 million
•Proceeds from dispositions of $19.0 million
Note: FFO and Core FFO 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 “2024 Financial Outlook” in the Supplemental Financial and Operating Data within.
Subsequent Events
Through July 29, 2024, Centerspace sold 431,000 common shares under its 10b5-1 trading arrangement at an average gross price per share of 69.54, totaling $30.0 million.
On July 26, 2024, Centerspace amended its Unsecured Credit Facility to extend the maturity date to July 2028. The borrowing capacity remained at $250.0 million.
Upcoming Events
Centerspace is scheduled to participate in the following conferences:
•NYSE Real Estate Investor Access Day which will be held virtually on August 8; and
•Bank of America Global Real Estate Conference which will be held in New York, NY, September 10-12.
Earnings Call
Live webcast and replay:  https://ir.centerspacehomes.com
 
Live Conference CallConference Call Replay
Tuesday, July 30, 2024, at 10:00 AM ET
Replay available until August 13, 2024
USA Toll Free
1-833-470-1428
USA Toll Free
1-866-813-9403
International
1-404-975-4839
International
1-929-458-6194
Access Code
811975
Access Code
732490
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended June 30, 2024 included herein (“Supplemental Information”), is available in the Investors section on Centerspace’s website at www.centerspacehomes.com or by calling Investor Relations at 701-837-7104. 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.  
2

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 June 30, 2024, Centerspace owned interests in 70 apartment communities consisting of 12,883 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a top workplace for the fifth consecutive year in 2024 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on the company's current expectations and assumptions, and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, uncertainties, and other factors that might cause such differences include, but are not limited to those risks and uncertainties detailed from time to time in Centerspace's filings with the Securities and Exchange Commission, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in its Annual Report on Form 10-K for the year ended December 31, 2023, in its subsequent quarterly reports on Form 10-Q, and in other public reports. 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: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 952-401-6600
Email: kweber@centerspacehomes.com
3

Supplemental Financial and Operating Data
Table of Contents
June 30, 2024


Common Share Data (NYSE: CSR)
Three Months Ended
 June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
High closing price$70.93 $58.00 $59.33 $66.57 $64.18 
Low closing price$55.48 $52.65 $47.82 $59.39 $53.98 
Average closing price$65.88 $55.68 $54.61 $62.52 $58.61 
Closing price at end of quarter$67.63 $57.14 $58.20 $60.26 $61.36 
Common share distributions – annualized$3.00 $3.00 $2.92 $2.92 $2.92 
Closing dividend yield – annualized4.4 %5.3 %5.0 %4.8 %4.8 %
Closing common shares outstanding (thousands)
15,057 14,912 14,963 15,052 14,949 
Closing limited partnership units outstanding (thousands)
828 844 861 864 961 
Closing Series E preferred units outstanding, as converted (thousands)
2,053 2,062 2,078 2,087 2,094 
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)
17,938 17,818 17,902 18,003 18,004 
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units and Series E preferred units, as converted (thousands)
$1,213,147 $1,018,121 $1,041,896 $1,084,861 $1,104,725 

S-1


CENTERSPACE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands)
 Three Months EndedSix Months Ended
 6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
REVENUE$65,043 $64,506 $64,068 $64,568 $64,776 $129,549 $132,673 
EXPENSES
Property operating expenses, excluding real estate taxes18,108 18,764 18,237 19,602 17,872 36,872 39,214 
Real estate taxes7,081 6,305 6,861 7,143 7,174 13,386 14,755 
Property management expense2,222 2,330 2,341 2,197 2,247 4,552 4,815 
Casualty loss
510 820 853 937 53 1,330 305 
Depreciation and amortization25,714 27,012 26,617 24,697 24,371 52,726 50,364 
Impairment of real estate investments— — 5,218 — — — — 
General and administrative expenses4,216 4,623 4,363 3,832 4,162 8,839 11,885 
TOTAL EXPENSES$57,851 $59,854 $64,490 $58,408 $55,879 $117,705 $121,338 
Gain (loss) on sale of real estate and other investments
— (577)(83)11,235 (67)(577)60,092 
Loss on litigation settlement— — (1,000)— (2,864)— (2,864)
Operating income (loss)
7,192 4,075 (1,505)17,395 5,966 11,267 68,563 
Interest expense(9,332)(9,207)(8,913)(8,556)(8,641)(18,539)(18,960)
Interest and other income
477 340 533 330 295 817 344 
Net income (loss)
$(1,663)$(4,792)$(9,885)$9,169 $(2,380)$(6,455)$49,947 
Dividends to Series D preferred unitholders(160)(160)(160)(160)(160)(320)(320)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units
561 1,079 1,917 (1,204)712 1,640 (7,854)
Net income attributable to noncontrolling interests – consolidated real estate entities
(34)(32)(29)(31)(35)(66)(65)
Net income (loss) attributable to controlling interests
(1,296)(3,905)(8,157)7,774 (1,863)(5,201)41,708 
Dividends to preferred shareholders(1,607)(1,607)(1,607)(1,607)(1,607)(3,214)(3,214)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
$(2,903)$(5,512)$(9,764)$6,167 $(3,470)$(8,415)$38,494 
Per Share Data - Basic
Net income (loss) per common share – basic
$(0.19)$(0.37)$(0.65)$0.41 $(0.23)$(0.56)$2.57 
Per Share Data - Diluted
Net income (loss) per common share – diluted
$(0.19)$(0.37)$(0.65)$0.41 $(0.23)$(0.56)$2.55 
S-2

CENTERSPACE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
6/30/20243/31/202412/31/20239/30/20236/30/2023
ASSETS
Real estate investments
Property owned$2,428,290 $2,413,488 $2,420,146 $2,326,408 $2,434,138 
Less accumulated depreciation(578,691)(553,231)(530,703)(516,673)(543,264)
Total real estate investments1,849,599 1,860,257 1,889,443 1,809,735 1,890,874 
Cash and cash equivalents14,328 12,682 8,630 29,701 9,745 
Restricted cash1,084 1,066 639 22,496 566 
Other assets34,414 29,468 27,649 16,349 18,992 
TOTAL ASSETS$1,899,425 $1,903,473 $1,926,361 $1,878,281 $1,920,177 
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses$52,885 $54,614 $62,754 $62,674 $56,713 
Revolving lines of credit48,000 40,357 30,000 — 18,989 
Notes payable, net of unamortized loan costs299,490 299,475 299,459 299,443 299,428 
Mortgages payable, net of unamortized loan costs584,193 585,382 586,563 539,245 563,079 
TOTAL LIABILITIES$984,568 $979,828 $978,776 $901,362 $938,209 
SERIES D PREFERRED UNITS$16,560 $16,560 $16,560 $16,560 $16,560 
EQUITY
Series C Preferred Shares of Beneficial Interest93,530 93,530 93,530 93,530 93,530 
Common Shares of Beneficial Interest1,167,055 1,160,492 1,165,694 1,169,025 1,169,501 
Accumulated distributions in excess of net income(579,139)(564,951)(548,273)(527,586)(522,796)
Accumulated other comprehensive loss(749)(922)(1,119)(1,434)(1,758)
Total shareholders’ equity$680,697 $688,149 $709,832 $733,535 $738,477 
Noncontrolling interests – Operating Partnership and Series E preferred units216,901 218,255 220,544 226,205 226,294 
Noncontrolling interests – consolidated real estate entities699 681 649 619 637 
TOTAL EQUITY$898,297 $907,085 $931,025 $960,359 $965,408 
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY$1,899,425 $1,903,473 $1,926,361 $1,878,281 $1,920,177 
S-3

CENTERSPACE
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)
This release contains certain non-GAAP financial measures. The non-GAAP financial measures should not be considered a substitute for operating results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The definitions and calculations of these non-GAAP financial measures, as calculated by the company, may not be comparable to non-GAAP financial measures reported by other REITs that do not define each of the non-GAAP financial measures exactly as Centerspace does. The non-GAAP financial measures are defined and further explained on pages S-19 through S-22, “Non-GAAP Financial Measures and Other Terms.”
The company provides certain information on a same-store and non-same-store basis. Same-store apartment communities are owned or in service for substantially all of the periods being compared, and, in the case of newly-constructed properties, have achieved a target level of physical occupancy of 90%. On the first day of each calendar year, Centerspace determines the composition of its same-store pool for that year as well as adjusts the previous year, which allows the company to evaluate the performance of existing apartment communities and their contribution to net operating income. The company believes that measuring performance on a same-store basis is useful to investors because it enables evaluation of how a fixed pool of its communities are performing year-over-year. Centerspace uses this measure to assess whether or not the company has been successful in increasing NOI (defined and reconciled below), raising average rental revenue, renewing leases on existing residents, controlling operating costs, and making prudent capital improvements.
For the comparison of the six months ended June 30, 2024 and 2023, one apartment community was non-same-store. Sold communities are included in “Dispositions,” while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties.
S-4

CENTERSPACE
RECONCILIATIONS OF OPERATING INCOME TO NET OPERATING INCOME (1)
 (in thousands, except percentages)
 Three Months EndedSequentialYear-Over-Year
 6/30/20243/31/20246/30/2023$ Change% Change$ Change% Change
Operating income (loss)$7,192 $4,075 $5,966 $3,117 76.5 %$1,226 20.5 %
Adjustments:
Property management expenses2,222 2,330 2,247 (108)(4.6)%(25)(1.1)%
Casualty loss
510 820 53 (310)(37.8)%457 *
Depreciation and amortization25,714 27,012 24,371 (1,298)(4.8)%1,343 5.5 %
General and administrative expenses4,216 4,623 4,162 (407)(8.8)%54 1.3 %
(Gain) loss on sale of real estate and other investments
— 577 67 (577)(100.0)%(67)(100.0)%
Loss on litigation settlement— — 2,864 — N/A(2,864)(100.0)%
Net operating income(1)
$39,854 $39,437 $39,730 $417 1.1 %$124 0.3 %
Revenue
Same-store$62,599 $61,536 $60,531 $1,063 1.7 %$2,068 3.4 %
Non-same-store1,867 1,803 — 64 3.5 %1,867 N/A
Other properties577 638 663 (61)(9.6)%(86)(13.0)%
Dispositions— 529 3,582 (529)(100.0)%(3,582)(100.0)%
Total65,043 64,506 64,776 537 0.8 %267 0.4 %
Property operating expenses, including real estate taxes
Same-store24,416 23,995 23,228 421 1.8 %1,188 5.1 %
Non-same-store537 566 — (29)(5.1)%537 N/A
Other properties236 182 189 54 29.7 %47 24.9 %
Dispositions— 326 1,629 (326)(100.0)%(1,629)(100.0)%
Total25,189 25,069 25,046 120 0.5 %143 0.6 %
Net operating income(1)
Same-store38,183 37,541 37,303 642 1.7 %880 2.4 %
Non-same-store1,330 1,237 — 93 7.5 %1,330 N/A
Other properties341 456 474 (115)(25.2)%(133)(28.1)%
Dispositions— 203 1,953 (203)(100.0)%(1,953)(100.0)%
Total$39,854 $39,437 $39,730 $417 1.1 %$124 0.3 %
* Not a meaningful percentage
(1)Net operating income is a non-GAAP measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.

S-5

CENTERSPACE
RECONCILIATIONS OF OPERATING INCOME TO NET OPERATING INCOME (1)
(in thousands, except percentages)
Six Months Ended June 30,
20242023$ Change% Change
Operating income$11,267 $68,563 $(57,296)(83.6)%
Adjustments:
Property management expenses4,552 4,815 (263)(5.5)%
Casualty loss
1,330 305 1,025 336.1 %
Depreciation and amortization52,726 50,364 2,362 4.7 %
General and administrative expenses8,839 11,885 (3,046)(25.6)%
(Gain) loss on sale of real estate and other investments
577 (60,092)60,669 (101.0)%
Loss on litigation settlement— 2,864 (2,864)(100.0)%
Net operating income(1)
$79,291 $78,704 $587 0.7 %
Revenue
Same-store$124,135 $119,971 $4,164 3.5 %
Non-same-store3,671 — 3,671 N/A
Other properties1,214 1,338 (124)(9.3)%
Dispositions529 11,364 (10,835)(95.3)%
Total129,549 132,673 (3,124)(2.4)%
Property operating expenses, including real estate taxes
Same-store48,411 47,753 658 1.4 %
Non-same-store1,102 — 1,102 N/A
Other properties418 276 142 51.4 %
Dispositions327 5,940 (5,613)(94.5)%
Total50,258 53,969 (3,711)(6.9)%
Net operating income(1)
Same-store75,724 72,218 3,506 4.9 %
Non-same-store2,569 — 2,569 N/A
Other properties796 1,062 (266)(25.0)%
Dispositions202 5,424 (5,222)(96.3)%
Total$79,291 $78,704 $587 0.7 %
* Not a meaningful percentage
(1)Net operating income is a non-GAAP measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.


S-6

CENTERSPACE
RECONCILIATIONS OF SAME-STORE CONTROLLABLE EXPENSES TO TOTAL PROPERTY OPERATING EXPENSES, INCLUDING REAL ESTATE TAXES (1)
 (in thousands, except percentages)
 Three Months Ended June 30,Six Months Ended June 30,
 20242023$ Change% Change20242023$ Change% Change
Controllable expenses
On-site compensation(2)
$6,499 $6,484 $15 0.2 %$13,040 $12,485 $555 4.4 %
Repairs and maintenance3,602 3,140 462 14.7 %6,807 6,517 290 4.4 %
Utilities3,366 3,342 24 0.7 %7,419 8,226 (807)(9.8)%
Administrative and marketing1,617 1,351 266 19.7 %3,189 2,640 549 20.8 %
Total$15,084 $14,317 $767 5.4 %$30,455 $29,868 $587 2.0 %
Non-controllable expenses
Real estate taxes$6,811 $6,669 $142 2.1 %$12,819 $13,444 $(625)(4.6)%
Insurance2,521 2,242 279 12.4 %5,137 4,441 696 15.7 %
Total$9,332 $8,911 $421 4.7 %$17,956 $17,885 $71 0.4 %
Total property operating expenses, including real estate taxes - same-store$24,416 $23,228 $1,188 5.1 %$48,411 $47,753 $658 1.4 %
Property operating expenses, including real estate taxes - non-same-store$537 $— $537 N/A$1,102 $— $1,102 N/A
Property operating expenses, including real estate taxes - other properties236 189 47 24.9 %418 276 142 51.4 %
Property operating expenses, including real estate taxes - dispositions— 1,629 (1,629)(100.0)%327 5,940 (5,613)(94.5)%
Total property operating expenses, including real estate taxes$25,189 $25,046 $143 0.6 %$50,258 $53,969 $(3,711)(6.9)%
(1)Same-store controllable expenses is a non-GAAP measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)On-site compensation for administration, leasing, and maintenance personnel.
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CENTERSPACE
RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS AND CORE FUNDS FROM OPERATIONS (1)
(in thousands, except per share amounts)
Three Months EndedSix Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Funds From Operations(1)
     
Net income (loss) available to common shareholders
$(2,903)$(5,512)$(9,764)$6,167 $(3,470)$(8,415)$38,494 
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units(561)(1,079)(1,917)1,204 (712)(1,640)7,854 
Depreciation and amortization25,714 27,012 26,617 24,697 24,371 52,726 50,364 
Less depreciation – non real estate(82)(85)(85)(56)(89)(167)(180)
Less depreciation – partially owned entities(25)(24)(22)(20)(19)(49)(38)
Impairment of real estate— — 5,218 — — — — 
(Gain) loss on sale of real estate and other assets
— 577 82 (11,235)71 577 (60,088)
FFO applicable to common shares and Units$22,143 $20,889 $20,129 $20,757 $20,152 $43,032 $36,406 
Adjustments to Core FFO(1):
Non-cash casualty (recovery) loss
191 702 535 854 (52)893 (39)
Interest rate swap amortization173 197 315 324 159 370 297 
Amortization of assumed debt263 263 136 (116)(116)526 (232)
Severance and transition related costs— — (10)— (19)— 3,180 
Loss on litigation settlement and associated trial costs(2)
— 37 1,035 34 3,201 37 3,201 
Other miscellaneous items(3)
31 (42)(35)(129)(22)(11)32 
Core FFO applicable to common shares and Units$22,801 $22,046 $22,105 $21,724 $23,303 $44,847 $42,845 
FFO applicable to common shares and Units$22,143 $20,889 $20,129 $20,757 $20,152 $43,032 $36,406 
Dividends to Series D preferred unitholders160 160 160 160 160 320 320 
FFO applicable to common shares and Units - diluted$22,303 $21,049 $20,289 $20,917 $20,312 $43,352 $36,726 
Core FFO applicable to common shares and Units$22,801 $22,046 $22,105 $21,724 $23,303 $44,847 $42,845 
Dividends to Series D preferred unitholders160 160 160 160 160 320 320 
Core FFO applicable to common shares and Units - diluted$22,961 $22,206 $22,265 $21,884 $23,463 $45,167 $43,165 
Per Share Data
Net income (loss) per share and Unit - diluted$(0.19)$(0.37)$(0.65)$0.41 $(0.23)$(0.56)$2.55 
FFO per share and Unit - diluted$1.23 $1.16 $1.11 $1.15 $1.11 $2.39 $2.01 
Core FFO per share and Unit - diluted$1.27 $1.23 $1.22 $1.20 $1.28 $2.49 $2.36 
Weighted average shares - basic14,972 14,922 15,013 14,989 14,949 14,947 14,987 
Effect of redeemable operating partnership Units for FFO and Core FFO835 854 862 908 965 845 967 
Effect of Series D preferred units for FFO and Core FFO228 228 228 228 228 228 228 
Effect of Series E preferred units for FFO and Core FFO2,062 2,078 2,087 2,093 2,103 2,070 2,111 
Effect of dilutive restricted stock units and stock options for FFO and Core FFO32 20 31 28 24 26 20 
Weighted average shares and Units for FFO and Core FFO - diluted18,129 18,102 18,221 18,246 18,269 18,116 18,313 
(1)Funds from operations and Core funds from operations are non-GAAP measures. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Consists of $37,000 in associated trial costs related to the litigation matter for the six months ended June 30, 2024. Consists of a $3.9 million loss on litigation settlement for a trial judgment entered against the Company and $406,000 in associated trial costs related to the litigation matter for the year ended December 31, 2023.
(3)Consists of (gain) loss on investments and pursuit costs.
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CENTERSPACE
RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS
TO ADJUSTED EBITDA(1)
(in thousands)
Three Months EndedSix Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Adjusted EBITDA
Net income (loss) available to controlling interests
$(1,296)$(3,905)$(8,157)$7,774 $(1,863)$(5,201)$41,708 
Adjustments: 
Dividends to Series D preferred unitholders160 160 160 160 160 320 320 
Noncontrolling interests – Operating Partnership and Series E preferred units(561)(1,079)(1,917)1,204 (712)(1,640)7,854 
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units
$(1,697)$(4,824)$(9,914)$9,138 $(2,415)$(6,521)$49,882 
Adjustments:  
Interest expense9,318 9,193 8,900 8,542 8,626 18,511 18,931 
Depreciation and amortization related to real estate investments25,689 26,988 26,595 24,675 24,351 52,677 50,322 
Impairment of real estate investments— — 5,218 — — — — 
Non-cash casualty loss (recovery)191 702 535 854 (52)893 (39)
Interest income(462)(280)(316)(187)(248)(742)(340)
(Gain) loss on sale of real estate and other investments
— 577 83 (11,235)71 577 (60,088)
Severance and transition related costs— — (10)— (19)— 3,180 
Loss on litigation settlement and associated trial costs(2)
— 37 1,035 34 3,201 37 3,201 
Other miscellaneous items(3)
31 (42)(35)(129)(22)(11)32 
Adjusted EBITDA$33,070 $32,351 $32,091 $31,692 $33,493 $65,421 $65,081 
(1)Adjusted EBITDA is a non-GAAP measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Consists of $37,000 in associated trial costs related to the litigation matter for the six months ended June 30, 2024. Consists of a $3.9 million loss on litigation settlement for a trial judgment entered against the Company and $406,000 in associated trial costs related to the litigation matter for the year ended December 31, 2023.
(3)Consists of (gain) loss on investments and pursuit costs.

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CENTERSPACE
DEBT ANALYSIS
(in thousands)
Debt Maturity Schedule
Annual Expirations
Future Maturities of Debt
Secured Fixed
Debt		Unsecured Fixed
Debt		Unsecured Variable DebtTotal
Debt		% of
Total Debt
Weighted
Average Interest Rate(1)
2024 (remainder)$— $— $— $— — — %
202529,970 — 48,000 77,970 8.3 %5.54 %
2026102,446 — — 102,446 10.9 %3.59 %
202749,029 — — 49,029 5.2 %3.47 %
202865,737 50,000 — 115,737 12.4 %3.14 %
Thereafter340,817 250,000 — 590,817 63.2 %3.47 %
Subtotal587,999 300,000 48,000 935,999 100.0 %3.62 %
Premiums and discounts, net(608)— — (608)
Deferred financing costs, net(3,198)(510)— (3,708)
Total debt$584,193 $299,490 $48,000 $931,683 
(1)Weighted average interest rate of debt that matures during the year.

6/30/20243/31/202412/31/20239/30/20236/30/2023
Debt Balances Outstanding(1)
     
Secured fixed rate - mortgages payable - other$388,541 $389,874 $391,140 $343,709 $367,679 
Secured fixed rate - Fannie Mae credit facility198,850 198,850 198,850 198,850 198,850 
Unsecured variable rate lines of credit48,000 40,357 30,000 — 18,989 
Unsecured senior notes300,000 300,000 300,000 300,000 300,000 
Debt total$935,391 $929,081 $919,990 $842,559 $885,518 
Mortgages payable - other rate4.05 %4.05 %4.05 %4.14 %4.14 %
Fannie Mae Credit Facility rate2.78 %2.78 %2.78 %2.78 %2.78 %
Lines of credit rate(2)
6.69 %6.68 %6.74 %— 6.56 %
Unsecured senior notes rate3.12 %3.12 %3.12 %3.12 %3.12 %
Total debt3.62 %3.59 %3.54 %3.46 %3.54 %
(1)Excludes deferred financing costs.
(2)Interest rate excludes any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps, as shown in the table below.
Three Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/2023
Reclassified from Accumulated OCI into interest expense$173 $197 $315 $324 $159 
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CENTERSPACE 
CAPITAL ANALYSIS 
(in thousands, except per share and unit amounts)
Three Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/2023
Equity Capitalization
Common shares outstanding15,057 14,912 14,963 15,052 14,949 
Operating partnership units outstanding828 844 861 864 961 
Series E preferred units (as converted)2,053 2,062 2,078 2,087 2,094 
Total common shares, Units, and Series E preferred units, as converted, outstanding17,938 17,818 17,902 18,003 18,004 
Market price per common share (closing price at end of period)$67.63 $57.14 $58.20 $60.26 $61.36 
Equity capitalization-common shares and units$1,213,147 $1,018,121 $1,041,896 $1,084,861 $1,104,725 
Recorded book value of preferred shares$93,530 $93,530 $93,530 $93,530 $93,530 
Total equity capitalization$1,306,677 $1,111,651 $1,135,426 $1,178,391 $1,198,255 
Series D Preferred Units$16,560 $16,560 $16,560 $16,560 $16,560 
Debt Capitalization
Total debt$935,391 $929,081 $919,990 $842,559 $885,518 
Total market capitalization
$2,258,628 $2,057,292 $2,071,976 $2,037,510 $2,100,333 
Total debt to total market capitalization(1)
41.4 %45.2 %44.4 %41.4 %42.2 %
(1)Total debt to total market capitalization is a non-GAAP financial measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
Three Months EndedSix Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Debt service coverage ratio(1)
3.03  x3.02  x3.09  x3.11  x3.33  x3.02  x2.99  x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization2.61  x2.59  x2.64  x2.65  x2.83  x2.60  x2.57  x
Net debt/Adjusted EBITDA(2)
6.96  x7.08  x7.10  x6.41  x6.54  x7.04  x6.73  x
Net debt and preferred equity/Adjusted EBITDA(2)
7.80  x7.93  x7.96  x7.28  x7.36  x7.88  x7.57  x
Distribution Data
Common shares and Units outstanding at record date15,875 15,756 15,824 15,916 15,910 15,875 15,910 
Total common distribution declared
$11,907 $11,805 $11,551 $11,615 $11,608 $23,712 $23,276 
Common distribution per share and Unit
$0.75 $0.75 $0.73 $0.73 $0.73 $1.50 $1.46 
Payout ratio (Core FFO per diluted share and unit basis)(3)
59.1 %61.0 %59.8 %60.8 %57.0 %60.2 %61.9 %
(1)Debt service coverage ratio is a non-GAAP financial measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Net debt divided by adjusted EBITDA and net debt and preferred equity divided by adjusted EBITDA are non-GAAP financial measures. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(3)Payout ratio (Core FFO per diluted share and unit basis) is a non-GAAP financial measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.


S-11

CENTERSPACE
SAME-STORE SECOND QUARTER COMPARISONS
(in thousands, except property data amounts and percentages)

 Apartment Homes IncludedRevenuesExpenses
NOI(2)
RegionsQ2 2024Q2 2023% ChangeQ2 2024Q2 2023% ChangeQ2 2024Q2 2023% Change
Denver, CO2,104 $13,513 $13,348 1.2 %$4,623 $4,399 5.1 %$8,890 $8,949 (0.7)%
Minneapolis, MN4,711 23,426 22,590 3.7 %10,045 9,599 4.6 %13,381 12,991 3.0 %
North Dakota1,710 7,262 6,767 7.3 %2,684 2,510 6.9 %4,578 4,257 7.5 %
Omaha, NE872 3,563 3,443 3.5 %1,559 1,381 12.9 %2,004 2,062 (2.8)%
Rochester, MN1,129 5,964 5,760 3.5 %2,126 2,137 (0.5)%3,838 3,623 5.9 %
St. Cloud, MN832 3,638 3,459 5.2 %1,464 1,405 4.2 %2,174 2,054 5.8 %
Other Mountain West(1)
1,222 5,233 5,164 1.3 %1,915 1,797 6.6 %3,318 3,367 (1.5)%
Same-Store Total12,580 $62,599 $60,531 3.4 %$24,416 $23,228 5.1 %$38,183 $37,303 2.4 %


 % of NOI Contribution
Weighted Average Occupancy (3)
Average Monthly
Rental Rate (3)
Average Monthly
Revenue per Occupied Home (3)
RegionsQ2 2024Q2 2023GrowthQ2 2024Q2 2023% ChangeQ2 2024Q2 2023% Change
Denver, CO23.3 %95.5 %95.7 %(0.2)%$1,982 $1,948 1.7 %$2,242 $2,209 1.5 %
Minneapolis, MN35.0 %95.5 %95.1 %0.4 %1,537 1,506 2.1 %1,736 1,681 3.3 %
North Dakota12.0 %96.1 %96.4 %(0.3)%1,329 1,242 7.0 %1,474 1,368 7.7 %
Omaha, NE5.2 %93.1 %94.7 %(1.6)%1,343 1,262 6.4 %1,463 1,389 5.3 %
Rochester, MN10.1 %96.1 %95.0 %1.1 %1,735 1,688 2.8 %1,832 1,790 2.3 %
St. Cloud, MN5.7 %93.7 %91.7 %2.0 %1,364 1,343 1.6 %1,555 1,512 2.8 %
Other Mountain West(1)
8.7 %94.4 %95.3 %(0.9)%1,349 1,327 1.7 %1,511 1,479 2.2 %
Same-Store Total100.0 %95.3 %95.2 %0.1 %$1,558 $1,515 2.8 %$1,741 $1,685 3.3 %
(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.
(2)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(3)Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for definitions.

S-12

CENTERSPACE
SAME-STORE SEQUENTIAL QUARTER COMPARISONS
(in thousands, except property data amounts and percentages)

Apartment Homes IncludedRevenuesExpenses
NOI(2)
RegionsQ2 2024Q1 2024% ChangeQ2 2024Q1 2024% ChangeQ2 2024Q1 2024% Change
Denver, CO2,104 $13,513 $13,354 1.2 %$4,623 $4,589 0.7 %$8,890 $8,765 1.4 %
Minneapolis, MN4,711 23,426 22,978 1.9 %10,045 9,414 6.7 %13,381 13,564 (1.3)%
North Dakota1,710 7,262 6,995 3.8 %2,684 2,972 (9.7)%4,578 4,023 13.8 %
Omaha, NE872 3,563 3,568 (0.1)%1,559 1,474 5.8 %2,004 2,094 (4.3)%
Rochester, MN1,129 5,964 5,915 0.8 %2,126 2,103 1.1 %3,838 3,812 0.7 %
St. Cloud, MN832 3,638 3,626 0.3 %1,464 1,614 (9.3)%2,174 2,012 8.1 %
Other Mountain West(1)
1,222 5,233 5,100 2.6 %1,915 1,829 4.7 %3,318 3,271 1.4 %
Same-Store Total12,580 $62,599 $61,536 1.7 %$24,416 $23,995 1.8 %$38,183 $37,541 1.7 %

% of NOI Contribution
Weighted Average Occupancy (3)
Average Monthly
Rental Rate (3)
Average Monthly
Revenue per Occupied Home (3)
RegionsQ2 2024Q1 2024GrowthQ2 2024Q1 2024% ChangeQ2 2024Q1 2024% Change
Denver, CO23.3 %95.5 %95.3 %0.2 %$1,982 $1,976 0.3 %$2,242 $2,221 0.9 %
Minneapolis, MN35.0 %95.5 %94.5 %1.0 %1,537 1,529 0.5 %1,736 1,720 0.9 %
North Dakota12.0 %96.1 %95.6 %0.5 %1,329 1,303 2.0 %1,474 1,426 3.4 %
Omaha, NE5.2 %93.1 %93.3 %(0.2)%1,343 1,326 1.3 %1,463 1,462 0.1 %
Rochester, MN10.1 %96.1 %94.6 %1.5 %1,735 1,730 0.3 %1,832 1,846 (0.8)%
St. Cloud, MN5.7 %93.7 %93.8 %(0.1)%1,364 1,353 0.8 %1,555 1,549 0.4 %
Other Mountain West(1)
8.7 %94.4 %93.1 %1.3 %1,349 1,340 0.7 %1,511 1,494 1.1 %
Same-Store Total100.0 %95.3 %94.6 %0.7 %$1,558 $1,547 0.7 %$1,741 $1,724 1.0 %
(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.
(2)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(3)Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for definitions.




S-13

CENTERSPACE
SAME-STORE YEAR-TO-DATE COMPARISONS
(in thousands, except property data amounts and percentages)
Apartment Homes IncludedRevenuesExpenses
NOI(2)
Regions20242023% Change20242023% Change20242023% Change
Denver, CO2,104 $26,867 $26,464 1.5 %$9,212 $8,843 4.2 %$17,655 $17,621 0.2 %
Minneapolis, MN4,711 46,404 44,967 3.2 %19,459 19,681 (1.1)%26,945 25,286 6.6 %
North Dakota1,710 14,257 13,277 7.4 %5,656 5,354 5.6 %8,601 7,923 8.6 %
Omaha, NE872 7,131 6,799 4.9 %3,033 2,814 7.8 %4,098 3,985 2.8 %
Rochester, MN1,129 11,879 11,409 4.1 %4,229 4,365 (3.1)%7,650 7,044 8.6 %
St. Cloud, MN832 7,264 6,810 6.7 %3,078 3,095 (0.5)%4,186 3,715 12.7 %
Other Mountain West(1)
1,222 10,333 10,245 0.9 %3,744 3,601 4.0 %6,589 6,644 (0.8)%
Same-Store Total12,580 $124,135 $119,971 3.5 %$48,411 $47,753 1.4 %$75,724 $72,218 4.9 %

% of NOI Contribution
Weighted Average Occupancy (3)
Average Monthly
Rental Rate (3)
Average Monthly
Revenue per Occupied Home (3)
Regions20242023Growth20242023% Change20242023% Change
Denver, CO23.3 %95.4 %95.6 %(0.2)%$1,979 $1,941 2.0 %$2,231 $2,192 1.8 %
Minneapolis, MN35.6 %95.0 %95.0 %— %1,533 1,501 2.1 %1,728 1,675 3.2 %
North Dakota11.4 %95.8 %96.5 %(0.7)%1,316 1,228 7.2 %1,450 1,342 8.0 %
Omaha, NE5.4 %93.2 %94.4 %(1.2)%1,334 1,248 6.9 %1,462 1,377 6.2 %
Rochester, MN10.1 %95.4 %94.9 %0.5 %1,732 1,676 3.3 %1,839 1,774 3.7 %
St. Cloud, MN5.5 %93.8 %90.9 %2.9 %1,359 1,329 2.3 %1,552 1,501 3.4 %
Other Mountain West(1)
8.7 %93.8 %95.2 %(1.4)%1,344 1,323 1.6 %1,503 1,468 2.4 %
Same-Store Total100.0 %94.9 %95.0 %(0.1)%$1,552 $1,507 3.0 %$1,732 $1,672 3.6 %
(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.
(2)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
(3)Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for definitions.
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CENTERSPACE
PORTFOLIO SUMMARY(1)
As of and for the Three Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/2023
Number of Apartment Homes at Period End
Same-Store12,580 12,580 12,173 12,173 12,885 
Non-Same-Store303 303 915 612 612 
All Communities12,883 12,883 13,088 12,785 13,497 
Average Monthly Rental Rate(2)
Same-Store$1,558 $1,547 $1,522 $1,511 $1,467 
Non-Same-Store1,900 1,885 1,893 1,907 1,894 
All Communities$1,566 $1,555 $1,547 $1,530 $1,487 
Average Monthly Revenue per Occupied Apartment Home(2)
Same-Store$1,741 $1,724 $1,683 $1,676 $1,634 
Non-Same-Store2,125 2,053 2,055 2,072 2,072 
All Communities$1,750 $1,732 $1,708 $1,695 $1,654 
Weighted Average Occupancy(2)
Same-Store95.3 %94.6 %94.8 %94.7 %95.2 %
Non-Same-Store96.7 %96.6 %95.8 %93.5 %95.4 %
All Communities95.3 %94.6 %94.9 %94.6 %95.2 %
Property Operating Expenses as a % of Scheduled Rental Rent(2)
Same-Store41.5 %41.1 %41.5 %43.3 %41.2 %
Non-Same-Store31.1 %33.0 %35.7 %41.9 %38.8 %
All Communities41.2 %40.9 %41.0 %43.3 %41.1 %
Capital Expenditures
Total Recurring Capital Expenditures(2) per Apartment Home – Same-Store
$264 $209 $491 $389 $258 
(1)Previously reported amounts are not revised for changes in the composition of the same-store properties pool.
(2)Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for definitions.
S-15

CENTERSPACE
CAPITAL EXPENDITURES
($ in thousands, except per home amounts)
Three Months EndedSix Months Ended
Capital Expenditures
6/30/20246/30/20236/30/20246/30/2023
Total Same-Store Apartment Homes12,580 12,580 12,580 12,580 
All Properties - Weighted Average Apartment Homes12,883 13,497 12,950 14,019 
Same-Store
Building - Exterior$461 $125 $1,802 $125 
Building - Interior38 16 54 16 
Mechanical, Electrical, & Plumbing469 781 3,279 1,051 
Furniture & Equipment149 153 231 167 
Landscaping & Grounds734 6 1,237 6 
Turnover replacements1,011 674 1,889 1,369 
Work in progress - net change462 1,290 (2,538)1,677 
Recurring Capital Expenditures(1) - Same-Store
$3,324 $3,045 $5,954 $4,411 
Recurring Capital Expenditures(1) per Apartment Home - Same-Store
$264 $242 $473 $351 
Recurring Capital Expenditures(1) - All Properties
$3,372 $3,233 $6,050 $4,939 
Recurring Capital Expenditures(1) per Apartment Home - All Properties
$262 $240 $467 $352 
Value Add(1)
Same-Store
Interior - Units
$456 $4,499 $693 $5,718 
Common Areas and Exterior
11,902 1,354 $18,030 $2,598 
Work in Progress - net change
(5,961)123 $(2,801)$216 
Total Value Add - Same Store$6,397 $5,976 $15,922 $8,532 
All Properties
Interior - Units
$456 $4,499 $693 $5,718 
Common Areas and Exterior
12,342 1,354 $18,475 $2,672 
Work in Progress - net change
(6,389)123 $(2,801)$216 
Total Value Add - All Properties$6,409 $5,976 $16,367 $8,606 
Acquisition and Other Capital Expenditures(1)(2)
All Properties
$5,756 $5,296 8,337 10,133 
Total Capital Spend
Total Capital Spend - Same-Store(3)
$9,721 $9,021 $21,876 $12,943 
Total Capital Spend per Apartment Home - Same-Store(3)
$773 $717 $1,739 $1,029 
Total Capital Spend - All Properties$15,537 $14,505 $30,754 $23,678 
Total Capital Spend per Apartment Home - All Properties$1,206 $1,075 $2,375 $1,689 
(1)Refer to pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for definitions.
(2)Non-routine capital expenditures were reclassified for inclusion in the Acquisition and Other Capital Expenditures category. For the three and six months ended June 30, 2023, $6,000 and $171,000 was reclassified to Acquisition and Other Capital Expenditures, respectively.
(3)Includes value-add and excludes acquisition and other capital expenditures on same-store communities.
S-16

CENTERSPACE
2024 Financial Outlook
(in thousands, except per share and per home amounts)
Centerspace revised its financial outlook for 2024 in the table below.
2024 Previous Outlook Range
2024 Revised Outlook Range
Six Months EndedLowHighLowHigh
June 30, 2024AmountAmountAmountAmount
Same-store growth
Revenue$124,135 3.00 %4.50 %3.25 %4.25 %
Controllable expenses30,455 4.00 %5.50 %3.25 %4.25 %
Non-controllable expenses17,956 4.00 %5.50 %3.50 %5.00 %
Total Expenses$48,411 4.00 %5.50 %3.50 %4.75 %
Same-store NOI(1)
$75,724 2.50 %4.00 %3.00 %4.00 %
Components of NOI(1)
Same-store$75,724 $148,900 $151,000 $149,600 $151,000 
Non-same-store2,569 4,900 5,100 5,000 5,200 
Other properties796 1,750 1,850 1,750 1,850 
Dispositions202 $203 $203 $203 $203 
Total NOI(1)
$79,291 $155,753 $158,153 $156,553 $158,253 
Other operating income and expenses
General and administrative and property management(13,391)(28,000)(27,500)(27,900)(27,400)
Casualty loss(1,330)(1,850)(1,750)(2,050)(1,950)
Non-real estate depreciation and amortization(216)(400)(350)(400)(350)
Non-controlling interest(66)(120)(130)(120)(130)
Total other operating income and expenses$(15,003)$(30,370)$(29,730)$(30,470)$(29,830)
Interest expense$(18,539)(38,200)(37,800)(36,850)(36,500)
Interest and other income817 $1,800 $2,000 $1,800 $2,000 
Dividends to preferred shareholders(3,214)(6,428)(6,428)(6,428)(6,428)
FFO applicable to common shares and Units - diluted(1)
$43,352 $82,555 $86,195 $84,605 $87,495 
Non-core income and expenses
Non-cash casualty loss
$893 $1,050 $1,000 $1,150 $1,100 
Interest rate swap amortization370 725 700 725 700 
Amortization of assumed debt526 1,075 1,025 1,075 1,025 
Loss on litigation settlement and associated trial costs
37 125 100 125 100 
Other miscellaneous items(11)100 50 100 50 
Total non-core income and expenses$1,815 $3,075 $2,875 $3,175 $2,975 
Core FFO applicable to common shares and Units - diluted(1)
$45,167 $85,630 $89,070 $87,780 $90,470 
Net loss per share - diluted
$(0.56)$(1.34)$(1.10)$(1.21)$(1.01)
FFO per diluted share(1)
$2.39 $4.57 $4.76 $4.61 $4.76 
Core FFO per diluted share(1)
$2.49 $4.74 $4.92 $4.78 $4.92 
Weighted average shares outstanding - diluted18,116 18,075 18,100 18,350 18,375 
Additional Assumptions
Same-store recurring capital expenditures (per home)
$473 $1,075 $1,150 $1,100 $1,150 
Value-add expenditures$16,367 $25,000 $27,000 $23,000 $25,000 
Proceeds from Dispositions
$19,000 $19,000 $19,000 $19,000 $19,000 
(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" in the Supplemental Financial and Operating Data" above and pages S-19 through S-22 “Non-GAAP Financial Measures and Other Terms” for additional information.
S-17

Reconciliation of Net Income (Loss) Available to Common Shareholders to FFO and Core FFO
The following table presents reconciliations of Net income (loss) available to common shareholders to FFO and Core FFO, which are non-GAAP financial measures described in greater detail under “Non-GAAP Financial Measures and Other Terms.” They should not be considered as alternatives to net income (loss) or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO and Core FFO also do not represent cash generated from operating activities in accordance with GAAP, nor are they indicative of funds available to fund all cash needs, including the ability to service indebtedness or make distributions to shareholders. The outlook and projections provided below are based on current expectations and are forward-looking statements under applicable U.S. federal securities laws.
Previous OutlookRevised Outlook
Six Months Ended12 Months Ended12 Months Ended
June 30, 2024December 31, 2024December 31, 2024
ActualLowHighLowHigh
Net loss available to common shareholders
$(8,415)$(16,468)$(11,953)$(14,418)$(10,653)
Noncontrolling interests - Operating Partnership and Series E preferred units(1,640)(7,795)(7,885)(7,795)(7,885)
Depreciation and amortization52,726 106,098 105,298 106,098 105,298 
Less depreciation - non real estate(167)(400)(350)(400)(350)
Less depreciation - partially owned entities(49)(120)(130)(120)(130)
Loss on sale of real estate
577 600 575 600 575 
Dividends to preferred unitholders320 640 640 640 640 
FFO applicable to common shares and Units - diluted$43,352 $82,555 $86,195 $84,605 $87,495 
Adjustments to Core FFO:
Non-cash casualty loss
893 1,050 1,000 1,150 1,100 
Interest rate swap amortization
370 725 700 725 700 
Amortization of assumed debt526 1,075 1,025 1,075 1,025 
Loss on litigation settlement and associated trial costs
37 125 100 125 100 
Other miscellaneous items(11)100 50 100 50 
Core FFO applicable to common shares and Units - diluted$45,167 $85,630 $89,070 $87,780 $90,470 
Net loss per share - diluted
$(0.56)$(1.34)$(1.10)$(1.21)$(1.01)
FFO per share - diluted$2.39 $4.57 $4.76 $4.61 $4.76 
Core FFO per share - diluted$2.49 $4.74 $4.92 $4.78 $4.92 
Reconciliation of Operating Income to Net Operating Income
Net operating income, or NOI, is a non-GAAP financial measure which the company defines as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by sales of real estate and other investments, impairment, depreciation, amortization, financing costs, property management expenses, casualty losses, loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.
Previous OutlookRevised Outlook
Six Months Ended12 Months Ended12 Months Ended
June 30, 2024December 31, 2024December 31, 2024
ActualLowHighLowHigh
Operating income$11,267 $19,080 $22,930 $19,780 $22,930 
Adjustments:
General and administrative and property management expenses13,391 28,000 27,500 27,900 27,400 
Casualty loss1,330 1,850 1,750 2,050 1,950 
Depreciation and amortization52,726 106,098 105,298 106,098 105,298 
Loss on sale of real estate and other investments
577 600 575 600 575 
Loss on litigation settlement and associated trial costs
— 125 100 125 100 
Net operating income$79,291 $155,753 $158,153 $156,553 $158,253 

S-18

CENTERSPACE
NON-GAAP FINANCIAL MEASURES AND OTHER TERMS
Acquisition and Other Capital Expenditures
Acquisition and other non-routine capital expenditures represent capital additions contemplated in the underwriting at recently acquired communities. These amounts are considered when determining expected returns. Other includes casualty and other non-routine capital items including, but not limited to, tenant improvements, real estate special assessments, and capital expenditures incurred to dispose of properties. Casualty represents capitalized costs incurred in connection with the restoration of an apartment community after a casualty event.
Adjusted EBITDA
Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt, gain/loss from involuntary conversion; and other non-routine items or items not considered core to business operations. The Company considers Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, financing costs, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP.
Average Monthly Rental Rate
Average monthly rental rate is scheduled rent divided by the total number of apartment homes.
Average Monthly Revenue per Occupied Home
Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.
Debt Service Coverage Ratio
Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within this Non-GAAP Financial Measures and Other Terms section.
Three Months EndedSix Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Adjusted EBITDA$33,070 $32,351 $32,091 $31,692 $33,493 $65,421 $65,081 
Interest Expense9,318 9,193 8,913 8,556 8,641 18,511 18,960 
Principal Amortization1,596 1,529 1,487 1,646 1,416 3,125 2,799 
Total Interest Expense and Principal Amortization10,91410,72210,40010,20210,05721,63621,759
Distributions paid to Series C preferred shareholders and Series D preferred unitholders1,7671,7671,7671,7671,7673,5343,534
Total Interest Expense, Principal Amortization, and preferred distributions12,68112,48912,16711,96911,82425,17025,293
Debt Service Coverage Ratio3.033.023.093.113.333.022.99
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization2.612.592.642.652.832.602.57
Funds From Operations and Core Funds From Operations
The Company believes that FFO, which is a non-GAAP financial measure used as a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding its operating performance, primarily because its calculation does not assume that the value of real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation and amortization.
The Company uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit defines FFO as net income or loss calculated in accordance with GAAP, excluding:
S-19

•depreciation and amortization related to real estate;
•gains and losses from the sale of certain real estate assets;
•impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity; and
•similar adjustments for partially owned consolidated real estate entities.
The exclusion in Nareit’s definition of FFO of gains and losses from the sale of real estate assets and impairment write-downs helps to identify the operating results of the long-term assets that form the base of the Company's investments, and assists management and investors in comparing those operating results between periods.
Due to the limitations of the Nareit FFO definition, Centerspace has made certain interpretations in applying this definition. The Company believes that all such interpretations not specifically identified in the Nareit definition are consistent with this definition. Nareit’s FFO White Paper 2018 Restatement clarified that impairment write-downs of land related to a REIT’s main business are excluded from FFO and a REIT has the option to exclude impairment write-downs of assets that are incidental to its main business.
While FFO is widely used by Centerspace as a primary performance metric, not all real estate companies use the same definition of FFO or calculate FFO in the same way. Accordingly, FFO presented here is not necessarily comparable to FFO presented by other real estate companies. FFO should not be considered as an alternative to net income (loss) or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund all cash flow needs, including the ability to service indebtedness or make distributions to shareholders.
Core Funds from Operations (“Core FFO”) is FFO as adjusted for non-routine items or items not considered core to business operations. By further adjusting for items that are not considered part of core business operations, the Company believes that Core FFO provides investors with additional information to compare core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income (loss), or any other GAAP measurement of performance, but rather should be considered an additional supplemental measure. Core FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund the Company's cash needs, including its ability to service indebtedness or make distributions to shareholders. Core FFO is a non-GAAP and non-standardized financial measure that may be calculated differently by other REITs and should not be considered a substitute for operating results determined in accordance with GAAP.
Net Debt Divided by Adjusted EBITDA
Net debt is the total outstanding debt balance less cash and cash equivalents. Preferred equity is the sum of the book value of Series C preferred shares and Series D preferred units outstanding. Adjusted EBITDA is annualized for periods less than one year. Net debt and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within this Non-GAAP Financial Measures and Other Terms section.
As of and for the
As of and for the
Three Months EndedSix Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Total debt$935,391 $929,081 $919,990 $842,559 $885,518 $935,391 $885,518 
Less: cash and cash equivalents14,328 12,682 8,630 29,701 9,745 14,328 9,745 
Net debt$921,063 $916,399 $911,360 $812,858 $875,773 $921,063 $875,773 
Adjusted EBITDA(1)
$132,280 $129,404 $128,364 $126,768 $133,972 $130,842 $130,162 
Net debt/Adjusted EBITDA6.967.087.106.416.547.046.73
Preferred Equity
$110,090 $110,090 $110,090 $110,090 $110,090 $110,090 $110,090 
Net debt and preferred equity$1,031,153 $1,026,489 $1,021,450 $922,948 $985,863 $1,031,153 $985,863 
Adjusted EBITDA(1)
$132,280 $129,404 $128,364 $126,768 $133,972 $130,842 $130,162 
Net debt and preferred equity/Adjusted EBITDA7.807.937.967.287.367.887.57
(1)Annualized for periods less than one year.
S-20

Net Operating Income
Net operating income, or NOI, is a non-GAAP financial measure which the Company defines as total real estate revenues less property operating expenses, including real estate taxes. The Company believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation and amortization, financing costs, property management expenses, casualty losses, loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.
Payout Ratio (Core FFO per Diluted Share and Unit Basis)
Payout ratio (Core FFO per diluted share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per diluted share and unit. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Core FFO definition included within this Non-GAAP Financial Measures and Other Terms section.
Three Months EndedSix Months Ended
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Common distribution per share and unit$0.75 $0.75 $0.73 $0.73 $0.73 $1.50 $1.46 
Core FFO per common share and unit diluted1.27 1.23 1.22 1.20 1.28 2.49 2.36 
Payout ratio59.1 %61.0 %59.8 %60.8 %57.0 %60.2 %61.9 %
Recurring Capital Expenditures
Recurring capital expenditures represent expenditures necessary to help preserve the value of and maintain the functionality at communities. Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing items used to operate the communities such as appliances, mechanical equipment, flooring to roof replacement, paving, siding, and major landscaping.
Same-Store Controllable Expenses
The Company defines same-store controllable expenses as property operating expenses excluding real estate taxes and insurance. Same-store controllable expenses exclude real estate taxes and insurance, in order to provide a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP financial measure and should not be considered an alternative to total expenses or total property operating expenses and real estate taxes.
Scheduled Rental Revenue
Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.
Total Debt to Total Market Capitalization
Total debt to total market capitalization, a non-GAAP financial measure, is total debt not adjusted for unamortized deferred financing costs or unamortized debt premiums and discounts from the balance sheet divided by the sum of total debt from the balance sheet, market value of common shares, operating partnership units, and the as converted Series E preferred units, and book value of Series C preferred shares and Series D preferred units outstanding at the end of the period. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP.
Value Add
Value add represents expenditures that are expected to result in increased income generation or decreased expense growth over time to improve a community’s cash flow and competitive position. This includes elective capital expenditures such as full-scale renovations including new amenities, interior unit turn renovations, enhanced clubhouses and common area hallways and certain resource management initiatives including smart home automation as well as environmental and sustainability initiatives for higher rental levels or expense savings in their respective markets.
S-21

Weighted Average Occupancy
Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rental revenue. Scheduled rental revenue represents the value of all apartment homes, with occupied homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes. The Company believes that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy, and the calculation of weighted average occupancy may not be comparable to that disclosed by other REITs and other real estate companies.
S-22
v3.24.2
Cover Page Cover Page
Jul. 29, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 29, 2024
Entity Registrant Name CENTERSPACE
Entity Incorporation, State or Country Code ND
Entity File Number 001-35624
Entity Tax Identification Number 45-0311232
Entity Address, Address Line One 3100 10th Street SW
Entity Address, Address Line Two Post Office Box 1988
Entity Address, City or Town Minot
Entity Address, State or Province ND
Entity Address, Postal Zip Code 58702
City Area Code 701
Local Phone Number 837-4738
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000798359
Amendment Flag false
Common Shares  
Entity Information [Line Items]  
Title of 12(b) Security Common Shares of Beneficial Interest, no par value
Trading Symbol CSR
Security Exchange Name NYSE
Series C Cumulative Redeemable Preferred Shares  
Entity Information [Line Items]  
Title of 12(b) Security Series C Cumulative Redeemable Preferred Shares
Trading Symbol CSR -PRC
Security Exchange Name NYSE
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