MINNEAPOLIS, May 1, 2025 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the three months ended March 31, 2025. The tables below show Net Loss, Funds from Operations ("FFO")1, and Core FFO1, all on a per diluted share basis, for the three months ended March 31, 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 March 31, 2025, December 31, 2024, and March 31, 2024.
Three Months Ended March 31,
Per Common Share
2025
2024
Net loss - diluted
$ (0.22)
$ (0.37)
FFO - diluted(1)
$ 1.17
$ 1.16
Core FFO - diluted(1)
$ 1.21
$ 1.23
Year-Over-Year
Comparison
Sequential
Comparison
Same-Store Results(2)
Q1 2025 vs. Q1 2024
Q1 2025 vs. Q4 2024
Revenues
3.5 %
0.9 %
Expenses
5.8 %
1.1 %
Net Operating Income ("NOI")(1)
2.1 %
0.8 %
Three months ended
Same-Store Results(2)
March 31, 2025
December 31, 2024
March 31, 2024
Weighted Average Occupancy
95.8 %
95.6 %
94.6 %
New Lease Rate Growth
(1.1) %
(3.5) %
— %
Renewal Lease Rate Growth
3.5 %
3.1 %
3.2 %
Blended Lease Rate Growth (3)
0.7 %
0.3 %
1.4 %
Retention Rate
49.2 %
54.7 %
53.4 %
(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, 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 First Quarter
Revenue for the first quarter of 2025 increased by $2.6 million or 4.0% to $67.1 million, compared to $64.5 million for the first quarter of 2024;
Same-store revenues increased by 3.5% for the first quarter of 2025 compared to the first quarter of 2024, driving a 2.1% increase in same-store NOI compared to the same period of the prior year
Net loss was $0.22 per diluted share for the first quarter of 2025, compared to net loss of $0.37 per diluted share for the same period of the prior year; and
Core FFO per diluted share decreased 1.6% to $1.21 for the three months ended March 31, 2025, compared to $1.23 for the three months ended March 31, 2024, driven by a $0.06 per share increase in same-store property taxes in the first quarter of 2025 after experiencing one-time property tax refunds in the first quarter of 2024.
Balance Sheet
At the end of the first quarter, Centerspace had $223.2 million of total liquidity on its balance sheet, consisting of $211.3 million available under the lines of credit and cash and cash equivalents of $11.9 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 March 31, 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 loss per Share – diluted
$(0.71)
$(0.45)
$(0.71)
$(0.45)
Same-Store Revenue
1.50 %
3.50 %
1.50 %
3.50 %
Same-Store Expenses
2.00 %
4.00 %
2.00 %
4.00 %
Same-Store NOI
1.25 %
3.25 %
1.25 %
3.25 %
FFO per Share – diluted
$4.73
$4.97
$4.73
$4.97
Core FFO per Share – diluted
$4.86
$5.10
$4.86
$5.10
Additional assumptions:
Same-store recurring capital expenditures of $1,125 per home to $1,175 per home
Value-add expenditures of $16.0 million to $18.0 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 "2025 Financial Outlook" in the Supplemental Financial and Operating Data within.
Upcoming Events
Centerspace is scheduled to participate in the following conferences:
Wells Fargo Real Estate Securities Conference, May 6-7, 2025;
BMO North American Real Estate Conference, May 13, 2025; and
National Association of Real Estate Investment Trusts ("Nareit") REITweek: 2025 Investor Conference, June 2-4, 2025.
Supplemental Operating and Financial Data for the quarter ended March 31, 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 March 31, 2025, Centerspace owned 71 apartment communities consisting of 13,012 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 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.
