INVESTOR PRESENTATION February 27, 2026 centerspacehomes.com Noko Apartments – Minneapolis, MN SAFE HARBOR STATEMENT & LEGAL DISCLOSURES Certain statements in this presentation are based on Centerspace'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 re ...

Core Insights - Centerspace is currently undergoing a strategic review to maximize shareholder value, which has temporarily paused stock buybacks despite having a repurchase authorization in place [1][6][2] Financial Performance - For Q4 2025, Centerspace reported a Core FFO of $1.25 per diluted share, with same-store NOI increasing by 4.8% year-over-year [5][13] - The company expects full-year 2026 Core FFO to be around $4.93, indicating stability year-over-year, with modest rent growth and mid-90s occupancy [5][14] Portfolio and Transactions - In 2025, Centerspace executed approximately $493 million in transactions, including entering the Salt Lake City market and expanding in Fort Collins [4][9] - The company repurchased 3.5 million shares and increased its unsecured credit facility by $150 million while assuming $76 million in long-term debt [4][11] Market Dynamics - The company noted that the Denver market is experiencing supply pressures, with rental concessions expected to persist into the first half of 2026 [19][12] - Minneapolis remains stable, with minimal impacts from recent immigration enforcement actions, while regulatory scrutiny is increasing across various municipalities [20][21] Operational Insights - Centerspace achieved a same-store NOI growth of 3.5% for the year, outperforming peers due to steady occupancy and expense discipline [7] - The company anticipates controllable costs to rise by 1% and non-controllable costs by 2% in 2026, with a focus on maintaining operational excellence [15][22]

Financial Data and Key Metrics Changes - The company reported fourth quarter Core FFO of $1.25 per diluted share, reflecting a 4.8% year-over-year increase in Q4 same-store NOI [12] - Revenues from same-store communities increased by 1% compared to the same quarter in 2024, driven by a 1.5% increase in average monthly revenue per occupied home, despite a 40 basis point decline in occupancy [12] - Same-store expenses decreased by 5.1% year-over-year, with improvements in both controllable and non-controllable expenses [12] Business Line Data and Key Metrics Changes - Same-store NOI growth was 3.5%, outpacing peers due to steady occupancy and expense discipline [5] - Blended leasing spreads increased by 10 basis points, with renewal spreads showing the highest growth of the year at 3.9% [6] - Retention for the full year was 58.2%, indicating relative affordability for residents [6] Market Data and Key Metrics Changes - Favorable absorption in Minneapolis, the largest market, led to positive blended increases of 1.1%, while North Dakota led the portfolio with blended increases of 4.5% in the quarter [7] - In Denver, blended rent trade outs decreased by 4.3% due to supply pressures, although absorption rates remained above historical norms [8] Company Strategy and Development Direction - The company is undergoing a strategic review to evaluate alternatives for maximizing shareholder value, initiated from a position of strength after transforming into a pure-play multifamily REIT [4][5] - The company executed $493 million in transaction activity in 2025, including entering new markets and pruning holdings, aimed at improving portfolio diversification and cash flow [9] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be a year of stability and growth, particularly in Minneapolis, while acknowledging ongoing pressures in Denver due to new deliveries and slow job growth [10][11] - The company anticipates Core FFO per diluted share to remain stable year-over-year, with same-store NOI expected to increase by 75 basis points [13] Other Important Information - The company expanded its unsecured credit facility by $150 million and repurchased 3.5 million common shares, reinforcing confidence in its stock value [10] - The leverage profile improved to 7.5x net debt to EBITDA following a disposition in Minneapolis [15] Q&A Session Summary Question: Can you talk us through some of your assumptions within the 2026 revenue guide? - Management expects blended rent growth to be in the mid-1% range, with renewals leading the way and new lease trade outs improving in most Midwest markets [19] Question: How do you see the Denver market playing out in 2026? - Management anticipates continued concessionary pressure in the first half of 2026, with expectations for improvement as supply dynamics normalize [21][22] Question: Is the underlying plan for the company continuing while the strategic review is ongoing? - Management confirmed that strategic initiatives executed in 2025 are still in effect, while the strategic review focuses on capital allocation [27] Question: Do you have any January or quarter-to-date leasing stats? - Management reported that overall blends were flat to slightly negative, with renewals remaining strong in the mid-3% range [28] Question: What is driving the lower retention rate forecast for 2026? - Management indicated that the lower retention rate is a conservative estimate based on recent performance and market conditions [52] Question: How has the experience in Denver and Minneapolis affected assessments of other markets? - Management noted that business friendliness and regulatory environments are key considerations for new market assessments, with no significant changes in current markets [38]

Financial Data and Key Metrics Changes - The company reported fourth quarter Core FFO of $1.25 per diluted share, reflecting a 4.8% year-over-year increase in Q4 same-store NOI [12] - Revenues from same-store communities increased by 1% compared to the same quarter in 2024, driven by a 1.5% increase in average monthly revenue per occupied home, despite a 40 basis point decline in occupancy [12][13] - Same-store expenses decreased by 5.1% year-over-year, with improvements in both controllable and non-controllable expenses [12] Business Line Data and Key Metrics Changes - Same-store NOI growth of 3.5% outpaced peers, supported by steady occupancy and expense discipline [5] - Blended leasing spreads increased by 10 basis points, with renewal spreads showing their highest growth of the year at 3.9% [6] - Retention for the full year was 58.2%, indicating relative affordability for residents [6] Market Data and Key Metrics Changes - Favorable absorption in Minneapolis, the largest market, led to positive blended increases of 1.1%, while North Dakota saw blended increases of 4.5% in the quarter [7] - In Denver, blended rent trade outs decreased by 4.3% due to supply pressures, although absorption rates remained above historical norms [8] Company Strategy and Development Direction - The company is undergoing a strategic review to evaluate alternatives for maximizing shareholder value, initiated from a position of strength after transforming into a pure-play multifamily REIT [4][5] - The company executed $493 million in transaction activity in 2025, including entering new markets and pruning holdings, aimed at diversifying cash flow and improving portfolio metrics [9] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be a year of stability and growth, particularly in Minneapolis, while acknowledging ongoing pressures in Denver due to new deliveries and regulatory changes [10][11] - The company anticipates Core FFO per share to remain stable year-over-year, with guidance for same-store NOI increases of 75 basis points and revenues increasing by 88 basis points [13] Other Important Information - The company expanded its unsecured credit facility by $150 million and repurchased 3.5 million common shares, indicating confidence in its stock value [10] - The leverage profile improved to 7.5x net debt to EBITDA following a disposition in Minneapolis [15] Q&A Session Summary Question: Can you talk us through some of your assumptions within the 2026 revenue guide? - Management expects blended rent growth to be in the mid-1% range, with renewals leading the way and new lease trade outs improving in most Midwest markets [17][19] Question: How do you see the Denver market playing out in 2026? - Management anticipates continued concessionary pressure in the first half of 2026, but expects improvements as supply dynamics normalize [21][22] Question: Is the underlying plan for the company continuing while the strategic review is ongoing? - Management confirmed that strategic initiatives executed in 2025 are still in effect, while the strategic review focuses on capital allocation [26][27] Question: Do you have any January or quarter-to-date leasing stats? - Management reported that overall blends were flat to slightly negative, with renewals remaining strong [28] Question: What is driving the lower retention rate forecast for 2026? - Management indicated a conservative approach to retention expectations, reflecting a slight downtick in Q4 [53] Question: How has the experience in Denver and Minneapolis affected assessments of other markets? - Management noted that business friendliness and regulatory environments are key considerations for new market assessments [36][38] Question: Are there concerns about affordability given the current economic conditions? - Management reported strong affordability metrics, with income growth outpacing rent increases across markets [59]

Financial Data and Key Metrics Changes - Centerspace reported fourth quarter Core FFO of $1.25 per diluted share, reflecting a 4.8% year-over-year increase in same-store NOI [12] - Revenues from same-store communities increased by 1% compared to the same quarter in 2024, driven by a 1.5% increase in average monthly revenue per occupied home [12] - Same-store expenses decreased by 5.1% year-over-year, with improvements in both controllable and non-controllable expenses [12] Business Line Data and Key Metrics Changes - Same-store NOI growth was 3.5%, outpacing peers due to steady occupancy and expense discipline [5] - Blended leasing spreads increased by 10 basis points, with renewal spreads showing their highest growth of the year at 3.9% [6] - Retention for the full year was 58.2%, indicating relative affordability for residents [6] Market Data and Key Metrics Changes - Minneapolis, the largest market, experienced positive blended increases of 1.1%, while North Dakota led with blended increases of 4.5% in the quarter [6] - In Denver, blended rent trade outs decreased by 4.3% due to supply pressures, although absorption rates remained above historical norms [7] - The company expects Denver fundamentals to normalize as new construction starts have significantly decreased [7] Company Strategy and Development Direction - Centerspace is undergoing a strategic review to evaluate alternatives for maximizing shareholder value, initiated from a position of strength [4] - The company executed $493 million in transaction activity in 2025, including entering new markets and pruning holdings [9] - Looking ahead to 2026, the company anticipates momentum in many markets driven by measured supply profiles and strong local economies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health and resilience of their markets, expecting stability and growth in Minneapolis [10] - In Denver, management noted ongoing concessionary pressures but expects improvements as the year progresses [21] - The company highlighted strong resident financial health and affordability, with income growth outpacing rent increases [57] Other Important Information - The company expanded its unsecured credit facility by $150 million and repurchased 3.5 million common shares [9] - For 2026, the company expects Core FFO per diluted share to remain stable year-over-year, with guidance for same-store NOI increases of 75 basis points [13] Q&A Session Summary Question: Can you talk us through some of your assumptions within the 2026 revenue guide? - Management expects blended rent growth to be in the mid-1% range, with renewals leading the way [18] Question: How do you see the Denver market playing out in 2026? - Management anticipates continued concessionary pressure in the first half of 2026 but expects improvements later in the year [21] Question: Is the underlying plan for the company continuing while the strategic review is ongoing? - Management confirmed that they feel good about their strategic execution in 2025, but the strategic review is focused on capital allocation [26] Question: Do you have any January or quarter-to-date leasing stats? - Management reported that blends were flat to slightly negative, with renewals remaining strong [28] Question: Are you able to buy back stock while the strategic review is ongoing? - Management stated that they need to complete the strategic review before resuming stock buybacks [35] Question: How has the experience in Denver and Minneapolis affected your assessment of other markets? - Management noted that business friendliness is a key consideration for new markets, and they are happy with their current market status [38] Question: Is there any concern about affordability given the trends in tax refunds? - Management indicated that rent-to-income ratios have held steady, with incomes increasing faster than rent [57] Question: What is driving the lower retention rate forecast for 2026? - Management is being conservative in their retention expectations due to slight downticks observed in Q4 [51] Question: Why is the expected value-add range wider and lower than in 2025? - Management is being selective with projects due to higher capital costs and the ongoing strategic review [52]

分组1 - Centerspace (CSR) reported quarterly funds from operations (FFO) of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.21 per share, and showing an increase from $1.21 per share a year ago, resulting in an FFO surprise of +3.31% [1] - The company posted revenues of $66.62 million for the quarter ended December 2025, which was 4.14% below the Zacks Consensus Estimate, but slightly higher than the year-ago revenues of $66.41 million [2] - Centerspace has surpassed consensus FFO estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has underperformed the market, losing about 4.7% since the beginning of the year, compared to a decline of 0.1% for the S&P 500 [3] - The current consensus FFO estimate for the coming quarter is $1.21 on revenues of $68.8 million, and for the current fiscal year, it is $4.81 on revenues of $276.8 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - As of December 31, 2025, the company had $154.9 million in variable-rate borrowings under its lines of credit, with a potential $1.5 million reduction in net income for a 100 basis point increase in 30-day SOFR[253] - Mortgage loan indebtedness decreased by $20.3 million as of December 31, 2025, totaling $400.1 million, with a weighted average interest rate of 3.88%[254] - The average interest rate on fixed-rate mortgage debt was 3.43% as of December 31, 2025[256] - The company aims to maintain a low exposure to interest rate risk, with all mortgage debt at fixed rates of interest[254] Team Member Engagement and Diversity - As of December 31, 2025, 79.7% of team members self-identified as white, 7.7% as Hispanic and/or Latino, and 2.9% as Black or African American[48] - The average tenure of team members was 4.7 years as of December 31, 2025[44] - The company conducts annual team member engagement surveys to gather feedback on performance[47] Training and Development - The company completed approximately 14,800 training courses and nearly 6,600 online training events during the year ended December 31, 2025[46] Corporate Social Responsibility - Team members completed over 2,700 volunteer hours during the year ended December 31, 2025, as part of the company's ESG initiatives[45] Compensation and Benefits - The company’s total rewards program includes competitive compensation and a robust benefits program, aligning team members with overall company performance[44]

Financial Performance - Net income per diluted share for the year ended December 31, 2025, was $1.02, compared to a net loss of $1.27 per diluted share for the year ended December 31, 2024[5]. - Core FFO increased to $4.93 per diluted share for the year ended December 31, 2025, up from $4.88 per diluted share for the year ended December 31, 2024[5]. - Revenue for the twelve months ended December 31, 2025, was $273.662 million, an increase of 4.9% compared to $260.983 million for the same period in 2024[24]. - Total expenses for the twelve months ended December 31, 2025, were $288.595 million, up from $239.931 million in 2024, reflecting a 20.3% increase[24]. - Operating income for the twelve months ended December 31, 2025, was $64.537 million, significantly higher than $20.475 million in 2024[24]. - Funds from operations (FFO) applicable to common shares and units for the twelve months ended December 31, 2025, totaled $93,374,000, an increase from $83,307,000 in the previous year[39]. - Core FFO applicable to common shares and units for the twelve months ended December 31, 2025, was $97,203,000, up from $90,679,000 year-over-year[39]. - Adjusted EBITDA for the twelve months ended December 31, 2025, is $137,700,000, up from $129,811,000 for the previous year[101]. Occupancy and Revenue Growth - Same-store revenues grew by 2.4% year-over-year, contributing to a 3.5% increase in same-store NOI[12]. - Same-store weighted average occupancy was 95.3% for the three months ended December 31, 2025[12]. - Same-store revenue for the twelve months ended December 31, 2025, was $231,136 thousand, reflecting an increase of $5,374 thousand or 2.4% year-over-year[34]. - Same-store revenues for Q4 2025 reached $57,583, a 1.0% increase from $57,019 in Q4 2024[54]. - Total NOI for same-store properties in Q4 2025 was $36,710, reflecting a 4.8% increase compared to $35,020 in Q4 2024[54]. - The average monthly rental rate for Q4 2025 was $1,639, up 1.6% from $1,613 in Q4 2024[54]. - Weighted average occupancy for same-store properties was 95.7% in 2025, a slight increase from 95.4% in 2024[64]. - The company anticipates a continued increase in rental rates and occupancy levels for 2026, reflecting positive market trends[71]. Strategic Initiatives and Guidance - Centerspace is providing guidance for 2026 with diluted net income per share expected to range from $(0.49) to $(0.19) and FFO per share expected to range from $4.61 to $4.89[9]. - Centerspace is currently reviewing strategic alternatives to maximize shareholder value, with no definitive timetable for the process[10]. - The company plans to continue focusing on market expansion and enhancing user experience through new product developments[54]. - The company anticipates same-store recurring capital expenditures per home to be between $1,250 million and $1,350 million for 2026[73]. Capital Structure and Debt Management - Total debt amounts to $1,021,164, with secured fixed debt at $598,984 and unsecured debt at $422,180[46]. - The weighted average interest rate for total debt is 3.64%[46]. - The debt service coverage ratio for the three months ended December 31, 2025, is 2.59x, indicating strong ability to cover debt obligations[52]. - The company reported a net debt to adjusted EBITDA ratio of 7.46x for the three months ended December 31, 2025[52]. - Total debt as of December 31, 2025, is $1,053,909,000, a decrease from $1,177,284,000 as of September 30, 2025[95]. - Net debt is reported at $1,041,076,000 as of December 31, 2025, compared to $1,113,447,000 as of September 30, 2025, indicating a reduction in leverage[95]. Asset Management and Dispositions - The company acquired two apartment communities for an aggregate purchase price of $281.2 million, including the assumption of $76.5 million in mortgage debt[12]. - The company disposed of seven apartment communities consisting of 679 apartment homes during the three months ended December 31, 2025[31]. - Total assets as of December 31, 2025, were $1.926 billion, a decrease from $1.914 billion as of December 31, 2024[26]. - Total liabilities as of December 31, 2025, were $1.080 billion, down from $1.015 billion as of December 31, 2024[26]. Shareholder Returns - The company announced a quarterly distribution of $0.77 per share/unit, payable on April 14, 2026[7]. - The company repurchased 62,973 shares at an average price of $54.86 per share during the year[12]. - Common distribution per share is $0.77 for the three months ended December 31, 2025, with a total common distribution declared of $13,613[52]. - Distributions to Series D preferred unitholders for the twelve months ended December 31, 2025, were $486,000, compared to $640,000 in the previous year[41].

Core Viewpoint - Centerspace reported its financial and operating results for the year ended December 31, 2025, showing improvements in key metrics such as net income, funds from operations (FFO), and core FFO, while also providing a financial outlook for 2026 [1][2]. Financial Performance - For the year ended December 31, 2025, net income per diluted share was $1.02, compared to a net loss of $1.27 per diluted share in 2024 [1]. - FFO per diluted share increased to $4.74 in 2025 from $4.49 in 2024, while core FFO per diluted share rose to $4.93 from $4.88 [1]. - Same-store revenues grew by 2.4% year-over-year, and same-store NOI increased by 3.5% [1]. Operational Highlights - The company sold twelve non-core apartment communities and one corporate office building for a total of $215.5 million [1]. - Centerspace repurchased 62,973 shares at an average price of $54.86 per share [1]. - The company acquired two apartment communities for a total purchase price of $281.2 million, including the assumption of $76.5 million in mortgage debt [1]. Occupancy and Lease Metrics - The weighted average occupancy rate was 95.7% for the year ended December 31, 2025, compared to 95.4% in 2024 [1]. - New lease rate growth decreased by 4.8% year-over-year, while renewal lease rate growth was 3.9% [1]. - The retention rate dropped to 55.2% from 61.8% in the previous year [1]. Balance Sheet and Liquidity - As of December 31, 2025, Centerspace had total liquidity of $267.9 million, including $255.1 million available on lines of credit and $12.8 million in cash [1]. Dividend Distribution - The Board of Trustees announced a quarterly distribution of $0.77 per share/unit, payable on April 14, 2026 [1]. 2026 Financial Outlook - For 2026, the company projects a diluted net income per share range of $(0.49) to $(0.19) and FFO per share between $4.61 and $4.89 [1]. - Core FFO per share is expected to range from $4.81 to $5.05 [1]. Strategic Review - The Board is currently reviewing strategic alternatives to maximize shareholder value, with no definitive timetable for the process [1].

Core Insights - Diamond Hill Capital's "Small Cap Strategy" reported a favorable performance in Q4 2025, with the Russell 2000 Index gaining 2.19% and a yearly gain of 12.81% despite geopolitical risks [1] - The Strategy outperformed the Russell 2000 Index with a return of 4.88% (net of fees) in the quarter [1] Company Focus - Centerspace (NYSE:CSR) was added to the portfolio during Q4 2025, identified as a REIT focused on apartment communities [2] - As of February 3, 2026, Centerspace's stock closed at $64.18, with a market capitalization of $1.138 billion [2] - Centerspace delivered a -4.18% return in the past month but has increased by 3.03% over the past twelve months [2] Investment Perspective - The company believes Centerspace is well-positioned for long-term growth due to its quality portfolio in differentiated markets and potential operational upside [3] - Centerspace is not among the 30 most popular stocks among hedge funds, with 14 hedge fund portfolios holding the stock at the end of Q3 2025, a slight decrease from 15 in the previous quarter [5] - While acknowledging Centerspace's potential, the company suggests that certain AI stocks may offer greater upside potential and lower downside risk [5]