Centerspace Reports First Quarter 2024 Financial Results and Raises Mid-Point for 2024 Core FFO per Share Guidance

D/B/A Centerspace Common Stock -0.04%

D/B/A Centerspace Common Stock

CSR

69.62

-0.04%

MINNEAPOLIS, April 29, 2024 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the three months ended March 31, 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 months ended March 31, 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 March 31, 2024, December 31, 2023, and March 31, 2023.

Three Months Ended March 31,





Per Common Share







2024



2023

Net income (loss) - diluted







$                       (0.37)



$                         2.76

FFO - diluted(1)







$                         1.16



$                         0.89

Core FFO - diluted(1)







$                         1.23



$                         1.07





































Year-Over-Year

Comparison



Sequential

Comparison

Same-Store Results(2)







Q1 2024 vs. Q1 2023



Q1 2024 vs. Q4 2023

Revenues







3.5 %



0.5 %

Expenses







(2.2) %



(0.1) %

NOI(1)







7.5 %



0.9 %

































Three months ended

Same-Store Results(2)



March 31, 2024



December 31, 2023



March 31, 2023

Weighted Average Occupancy                                                                         



94.6 %



94.8 %



94.9 %

(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

  • During the three months ended March 31, 2024, Centerspace successfully executed the sale of two non-core apartment communities in Minnesota for an aggregate sales price of $19.0 million;
  • Net loss decreased to $0.37 per diluted share for the first quarter of 2024, compared to Net income of $2.76 per diluted share for the same period of the prior year;
  • Core FFO per diluted share increased 15.0% to $1.23 for the three months ended March 31, 2024, compared to $1.07 for the three months ended March 31, 2023;
  • Same-store revenues increased by 3.5% for the first quarter of 2024 compared to the first quarter of 2023, driving a 7.5% increase in same-store NOI compared to the same period of the prior year;
  • Centerspace repurchased 87,722 common shares for total consideration of $4.7 million and an average price of $53.62 per share; and
  • Centerspace narrowed the 2024 financial outlook ranges for net income per diluted share and FFO per diluted share and raised the mid-point for Core FFO per diluted share. Refer to page S-15 in the Supplemental and Financial Operating Data within for additional detail.

Balance Sheet

At the end of the first quarter, Centerspace had $228.3 million of total liquidity on its balance sheet, consisting of $215.6 million available under the lines of credit and cash and cash equivalents of $12.7 million.

Revised 2024 Financial Outlook

Centerspace revised its 2024 financial outlook. For additional information, see S-15 of the Supplemental Financial and Operating Data for the quarter ended March 31, 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 2024

Updated Outlook for 2024



Low

High

Low

High

Net income per Share – diluted

$                       (1.31)

$                       (0.99)

$                       (1.34)

$                       (1.10)

Same-Store Revenue

3.00 %

5.00 %

3.00 %

4.50 %

Same-Store Expenses

5.50 %

7.00 %

4.00 %

5.50 %

Same-Store NOI

1.50 %

3.50 %

2.50 %

4.00 %

FFO per Share – diluted

$                         4.54

$                         4.80

$                         4.57

$                         4.76

Core FFO per Share – diluted

$                         4.68

$                         4.92

$                         4.74

$                         4.92

Additional assumptions:

  • Same-store recurring capital expenditures of $1,075 per home to $1,150 per home
  • Value-add expenditures of $25.0 million to $27.0 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.

Upcoming Events

Centerspace is scheduled to participate in the following conferences:

  • BTIG 4th Annual Housing Ecosystem Conference which will be held in New York, NY, May 6-7, 2024;
  • BMO 2024 Real Estate conference which will be held in New York, NY, May 8, 2024; and
  • National Association of Real Estate Investment Trusts ("Nareit") REITweek: 2024 Investor Conference which will be held in New York, NY, June 4-5, 2024.

Earnings Call

Live webcast and replay:  https://ir.centerspacehomes.com







Live Conference Call



Conference Call Replay

Tuesday, April 30, 2024, at 10:00 AM ET



Replay available until May 14, 2024

USA Toll Free

1-833-470-1428



USA Toll Free

1-866-813-9403

International

1-929-526-1599



International

1-929-458-6194

Canada Toll Free

1-833-950-0062



Canada

1-226-828-7578

Access Code

748370



Access Code

274742

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended March 31, 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.  

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, 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. In 2022, Centerspace was named the National Apartment Association's Leading Organization in Diversity, Equity, and Inclusion. 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: 701-837-7104

Email: IR@centerspacehomes.com  

Marketing & Media

Kelly Weber

Phone: 701-837-7104

Email: kweber@centerspacehomes.com

(PRNewsfoto/Centerspace)

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SOURCE Centerspace

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