2nd Quarter 2024 // Quarter Ended June 30, 2024 Sunset Trail // Rochester, MN Exhibit 99.1 Centerspace Reports Second Quarter 2024 Financial Results and Raises Mid-Point for 2024 Core FFO per Share Guidance | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------|-------|-----------------------------------------------|----------|--------------|-------|---------------------------------------------|-------|-------------| | Per Common Share \nNet income (loss) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-35624 CENTERSPACE (Exact name of registrant as specified in its charter) | North Dakota | | | | 45-0311232 | | --- | ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------|------------------------------------|--------|---------------------|--------|---------------------|---------------------------|---------------|-------| | Per Common Share | Three Months Ended June 30, \n2024 | | \n2023 | | 2024 | Six Months Ended June 30, | 2023 | | | 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 ...

MINNEAPOLIS, July 9, 2024 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today the appointment of Jay Rosenberg to its Board of Trustees on July 8, 2024. Mr. Rosenberg will also serve on Centerspace's Nominating and Corporate Governance Committee. Mr. Rosenberg recently retired as Head of Public Real Assets for Nuveen, where he oversaw strategy, investment process and performance of the firm's listed real assets platform while also serving as a member of Nuveen's global investment committee. Additionally ...

MINNEAPOLIS, June 3, 2024 /PRNewswire/ --NYSE: CSR. Centerspace's Board of Trustees announced today that it has declared a regular quarterly distribution of $0.75 per share/unit, payable on July 10, 2024, to common shareholders and unitholders of record at the close of business on June 28, 2024. The Board of Trustees also declared a distribution of $0.4140625 per share on the 6.625% Series C Cumulative Redeemable Preferred Shares (NYSE: CSR PRC), payable on June 28, 2024, to holders of record at the close o ...

Industry Overview - The housing market in 2023 has been characterized by rising prices and mortgage rates, leading to increased monthly mortgage payments, impacting both aspiring and existing homeowners [1] - The restrictive monetary policy by the Federal Reserve aimed at controlling inflation has significantly contributed to the alarming rise in home prices [2] - New home sales showed fluctuations, with a seasonally adjusted annual rate of 634,000 in April, down 4.7% from March [3] - Existing home sales also declined by 1.9% in April, totaling a seasonally adjusted annual rate of 4.14 million, reflecting a similar year-over-year decrease [3] Future Projections - The National Association of Realtors forecasts a 9% increase in existing home sales in 2024, reaching 4.46 million, and a further 13.2% increase in 2025 to 5.05 million [4] - Housing starts are expected to rise by 1.2% in 2024 to 1.43 million and by 4.9% in 2025 to 1.5 million [4] Current Market Conditions - The median price for an existing home is currently $393,500, marking a 4.8% increase from the previous year, continuing a trend of year-over-year price increases for nine consecutive months [5] - Despite potential improvements in mortgage rates, they remain at a high level, prompting potential buyers to consider waiting for further rate reductions before making investment decisions [5] Investment Opportunities - Three residential stocks are highlighted as potential investment opportunities, all holding a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B, indicating favorable metrics for selection [6] - M/I Homes, Inc. (MHO) has an expected earnings growth rate of 12.2% for the current year, with a Zacks Consensus Estimate improvement of 11.9% over the past 60 days [7] - KB Home (KBH) is projected to have a 13.9% earnings growth rate for the current year, with a 2.8% improvement in the Zacks Consensus Estimate over the past 60 days [8] - Centerspace (CSR) is expected to see a 4.9% earnings growth rate for the next year, with a 2% improvement in the Zacks Consensus Estimate over the past 60 days [8]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $1.23 for Q1 2024, reflecting a 7.5% year-over-year increase in same-store NOI [9][18] - Revenues from same-store communities increased by 3.5% compared to the same period in 2023, driven by a 3.9% growth in average monthly revenue per occupied home [18] - Property operating expenses decreased by 2.2% year-over-year, attributed to lower utilities costs and successful real estate tax appeals [20] Business Line Data and Key Metrics Changes - In the same-store portfolio, market rent increased year-over-year by 2.5%, with positive lease over lease growth [10] - New lease trade-outs were flat for the quarter, while renewal pricing increased by an average of 3.4% [10] - Occupancy rates remained slightly above 95%, with indications of new lease trade-outs of approximately 3.5% in April [11] Market Data and Key Metrics Changes - Minneapolis ranked eighth in the nation for apartment absorption over the last 12 months and was the number one search market for four consecutive months [14] - Denver and Minneapolis are the markets with the highest levels of supply, but the supply profile remains relatively muted overall [13] Company Strategy and Development Direction - The company is committed to growing its business despite a challenging economic environment, focusing on capital recycling and maintaining a flexible balance sheet [16][24] - The company plans to spend around $20 million on value-add initiatives this year to keep its product competitive [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio, citing low bad debt of just 26 basis points in Q1 and stability in the regional economy [12] - The company raised its guidance for 2024, expecting core FFO growth year-over-year of 1% [12][21] Other Important Information - The company closed the sale of two communities in Minneapolis for gross proceeds of $19 million, which were used to pay down debt [15] - The company has approximately $230 million of liquidity at quarter end via cash and line of credit capacity [23] Q&A Session Summary Question: Strength in smaller markets - Management noted strong performance in smaller markets, particularly in North Dakota, due to low supply and strong job markets [28] Question: Ground conditions in smaller markets - Management confirmed continued strength in rental increases and steady occupancy across smaller markets [32] Question: Minneapolis demand drivers - Management highlighted low unemployment and rising housing costs as key demand drivers in Minneapolis [35] Question: New lease growth expectations - Management expects new lease pricing to continue to accelerate, with renewals projected around 3% to 3.5% for the quarter [39] Question: Pricing environment for assets - Management indicated that there is a bid-ask spread in the market, with high net worth and private capital buyers being the most aggressive [66] Question: Financing environment - Management stated that financing remains available, although the term loan environment is somewhat challenged [61]

Centerspace (CSR) came out with quarterly funds from operations (FFO) of $1.23 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to FFO of $1.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 9.82%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.11 per share when it actually produced FFO of $1.22, delivering a surprise of 9.91%.Over the last four quarters, ...

[Earnings Release](index=2&type=section&id=Earnings%20Release) Centerspace's Q1 2024 earnings report details financial performance, revised outlook, and key operational activities [Overview and Highlights](index=2&type=section&id=Overview%20and%20Highlights) Centerspace reported its first quarter 2024 financial results, showing a net loss but significant year-over-year increases in Core FFO and Same-Store NOI. Key operational activities included the sale of non-core assets and share repurchases Q1 2024 Key Financial Performance | Per Common Share | 2024 | 2023 | | :----------------------- | :--- | :--- | | Net income (loss) - diluted | $(0.37) | $2.76 | | FFO - diluted | $1.16 | $0.89 | | Core FFO - diluted | $1.23 | $1.07 | Q1 2024 Same-Store Results (Year-Over-Year Comparison) | Same-Store Results | Q1 2024 vs. Q1 2023 | | :----------------- | :------------------ | | Revenues | 3.5% | | Expenses | (2.2)% | | NOI | 7.5% | - **Core FFO per diluted share increased 15.0% to $1.23** for Q1 2024 compared to $1.07 for Q1 2023[4](index=4&type=chunk) - Centerspace successfully executed the sale of two non-core apartment communities for an aggregate sales price of **$19.0 million**[4](index=4&type=chunk) - Centerspace repurchased **87,722 common shares** for total consideration of **$4.7 million** at an average price of **$53.62 per share**[4](index=4&type=chunk) [Balance Sheet Summary](index=3&type=section&id=Balance%20Sheet%20Summary) At the end of the first quarter, Centerspace maintained a strong liquidity position, primarily supported by available lines of credit and cash reserves - Total liquidity on the balance sheet was **$228.3 million** at the end of Q1 2024[5](index=5&type=chunk) - Liquidity consisted of **$215.6 million** available under lines of credit and **$12.7 million** in cash and cash equivalents[5](index=5&type=chunk) [Revised 2024 Financial Outlook](index=3&type=section&id=Revised%202024%20Financial%20Outlook) Centerspace revised its 2024 financial outlook, narrowing the ranges for net income and FFO per diluted share, and raising the mid-point for Core FFO per diluted share, reflecting updated expectations for same-store revenues and expenses Revised 2024 Financial Outlook Comparison | Metric | Previous Outlook (Low) | Previous Outlook (High) | Updated Outlook (Low) | Updated Outlook (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 | [Company Information and Forward-Looking Statements](index=4&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) Centerspace, established in 1970, operates 70 apartment communities across six states. The release includes a standard disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties - Centerspace was founded in **1970** and as of March 31, 2024, owned interests in **70 apartment communities**[10](index=10&type=chunk) - The company's portfolio consists of **12,883 apartment homes** located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota[10](index=10&type=chunk) - The press release contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[11](index=11&type=chunk) [Upcoming Events and Supplemental Information Access](index=3&type=section&id=Upcoming%20Events%20and%20Supplemental%20Information%20Access) Centerspace announced its participation in several upcoming investor conferences and provided details for accessing the Q1 2024 earnings call webcast and supplemental financial data - Centerspace is scheduled to participate in the **BTIG 4th Annual Housing Ecosystem Conference (May 6-7, 2024)**, **BMO 2024 Real Estate conference (May 8, 2024)**, and **Nareit REITweek: 2024 Investor Conference (June 4-5, 2024)**[9](index=9&type=chunk) - The Q1 2024 Earnings Call was scheduled for **Tuesday, April 30, 2024, at 10:00 AM ET**, with a live webcast and replay available[8](index=8&type=chunk) - Supplemental Operating and Financial Data is available in the Investors section of Centerspace's website[9](index=9&type=chunk) [Supplemental Financial and Operating Data](index=5&type=section&id=Supplemental%20Financial%20and%20Operating%20Data) This section provides detailed financial statements, non-GAAP reconciliations, debt analysis, and portfolio performance metrics [Common Share Data](index=6&type=section&id=Common%20Share%20Data) This section provides a detailed overview of Centerspace's common share and unit data, including historical closing prices, dividend yields, and outstanding share/unit counts across the last five quarters Common Share Data (Three Months Ended March 31, 2024) | Metric | Value | | :------------------------------------ | :------ | | High closing price | $58.00 | | Low closing price | $52.65 | | Average closing price | $55.68 | | Closing price at end of quarter | $57.14 | | Common share distributions – annualized | $3.00 | | Closing dividend yield – annualized | 5.3 % | | Closing common shares outstanding (thousands) | 14,912 | | Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands) | 17,818 | [Key Financial Data](index=7&type=section&id=Key%20Financial%20Data) This section presents Centerspace's condensed consolidated statements of operations and balance sheets, offering a comprehensive view of the company's financial performance and position over the past five quarters [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents Centerspace's consolidated statements of operations, detailing revenues, expenses, and net income (loss) over recent quarters Condensed Consolidated Statements of Operations (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | REVENUE | $64,506 | $64,068 | $67,897 | | TOTAL EXPENSES | $59,854 | $64,490 | $65,459 | | Operating income (loss) | $4,075 | $(1,505) | $62,597 | | Net income (loss) | $(4,792) | $(9,885) | $52,327 | | NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $(5,512) | $(9,764) | $41,964 | | Net income (loss) per common share – diluted | $(0.37) | $(0.65) | $2.76 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section outlines Centerspace's consolidated balance sheets, presenting assets, liabilities, and equity at key reporting dates Condensed Consolidated Balance Sheets (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | Total real estate investments | $1,860,257 | $1,889,443 | $1,901,744 | | Cash and cash equivalents | $12,682 | $8,630 | $8,939 | | TOTAL ASSETS | $1,903,473 | $1,926,361 | $1,978,884 | | TOTAL LIABILITIES | $979,828 | $978,776 | $974,519 | | TOTAL EQUITY | $907,085 | $931,025 | $987,805 | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including Net Operating Income (NOI), Funds From Operations (FFO), Core FFO, and Adjusted EBITDA. It also outlines the company's methodology for same-store comparisons, emphasizing their importance for evaluating operational performance - Non-GAAP financial measures like **NOI, FFO, and Core FFO** are provided as supplemental information and should not be considered substitutes for GAAP results[25](index=25&type=chunk) - Same-store apartment communities are owned or in service for substantially all periods being compared and have achieved a target physical occupancy of **90%**[25](index=25&type=chunk) [Net Operating Income (NOI) Reconciliation](index=10&type=section&id=Net%20Operating%20Income%20(NOI)%20Reconciliation) This section reconciles operating income to Net Operating Income (NOI), including same-store revenue and expense comparisons Net Operating Income Reconciliation (in thousands) | Metric | Q1 2024 | Q4 2023 | Q1 2023 | Sequential % Change | Year-Over-Year % Change | | :------------------------------------ | :------ | :------ | :------ | :------------------ | :---------------------- | | Operating income (loss) | $4,075 | $(1,505) | $62,597 | (370.8)% | (93.5)% | | Net operating income | $39,437 | $38,970 | $38,974 | 1.2 % | 1.2 % | | Same-store Revenue | $61,536 | $61,230 | $59,439 | 0.5 % | 3.5 % | | Same-store Property operating expenses, including real estate taxes | $23,995 | $24,013 | $24,526 | (0.1)% | (2.2)% | | Same-store Net operating income | $37,541 | $37,217 | $34,913 | 0.9 % | 7.5 % | [Same-Store Controllable Expenses Reconciliation](index=11&type=section&id=Same-Store%20Controllable%20Expenses%20Reconciliation) This section details the breakdown and reconciliation of same-store controllable and non-controllable property operating expenses Same-Store Controllable Expenses (in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :------------------------------------ | :------ | :------ | :------- | | **Controllable expenses:** | | | | | On-site compensation | $6,541 | $6,003 | 9.0 % | | Repairs and maintenance | $3,205 | $3,376 | (5.1)% | | Utilities | $4,053 | $4,884 | (17.0)% | | Administrative and marketing | $1,572 | $1,289 | 22.0 % | | **Total Controllable expenses** | **$15,371** | **$15,552** | **(1.2)%** | | **Non-controllable expenses:** | | | | | Real estate taxes | $6,008 | $6,775 | (11.3)% | | Insurance | $2,616 | $2,199 | 19.0 % | | **Total Non-controllable expenses** | **$8,624** | **$8,974** | **(3.9)%** | | Total property operating expenses, including real estate taxes | $25,069 | $28,923 | (13.3)% | [Funds From Operations (FFO) and Core FFO Reconciliation](index=12&type=section&id=Funds%20From%20Operations%20(FFO)%20and%20Core%20FFO%20Reconciliation) This section provides a reconciliation of net income to FFO and Core FFO, presenting per-share amounts for key performance indicators FFO and Core FFO Reconciliation (in thousands, except per share amounts) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | Net income (loss) available to common shareholders | $(5,512) | $(9,764) | $41,964 | | FFO applicable to common shares and Units | $20,889 | $20,129 | $16,254 | | Core FFO applicable to common shares and Units | $22,046 | $22,105 | $19,542 | | FFO per share and Unit - diluted | $1.16 | $1.11 | $0.89 | | Core FFO per share and Unit - diluted | $1.23 | $1.22 | $1.07 | [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section reconciles net income to Adjusted EBITDA, a non-GAAP measure used to assess operational profitability Adjusted EBITDA Reconciliation (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | Net income (loss) available to controlling interests | $(3,905) | $(8,156) | $43,571 | | Adjusted EBITDA | $32,351 | $32,091 | $31,588 | [Debt and Capital Analysis](index=14&type=section&id=Debt%20and%20Capital%20Analysis) This section provides a detailed analysis of Centerspace's debt structure, including maturity schedules and outstanding balances, alongside key capital ratios such as total debt to total capitalization, debt service coverage, and payout ratio [Debt Analysis](index=14&type=section&id=Debt%20Analysis) This section details Centerspace's debt maturity schedule, outstanding balances, and weighted average interest rates Debt Maturity Schedule (as of 3/31/2024, in thousands) | Year | Total Debt | % of Total Debt | Weighted Average Interest Rate | | :--- | :--------- | :-------------- | :----------------------------- | | 2024 (remainder) | $357 | — | 7.72 % | | 2025 | $70,193 | 7.6 % | 5.39 % | | 2026 | $99,527 | 10.7 % | 3.59 % | | 2027 | $49,353 | 5.3 % | 3.47 % | | 2028 | $115,810 | 12.5 % | 3.14 % | | Thereafter | $593,841 | 63.9 % | 3.48 % | | **Total debt** | **$929,081** | **100.0 %** | **3.59 %** | Debt Balances Outstanding and Rates (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | Secured fixed rate - mortgages payable - other | $389,874 | $391,140 | $279,340 | | Secured fixed rate - Fannie Mae credit facility | $198,850 | $198,850 | $198,850 | | Unsecured variable rate lines of credit | $40,357 | $30,000 | $143,469 | | Unsecured senior notes | $300,000 | $300,000 | $300,000 | | **Debt total** | **$929,081** | **$919,990** | **$921,659** | | Mortgages payable - other rate | 4.05 % | 4.05 % | 3.85 % | | Fannie Mae Credit Facility rate | 2.78 % | 2.78 % | 2.78 % | | Lines of credit rate | 6.68 % | 6.74 % | 6.19 % | | Unsecured senior notes rate | 3.12 % | 3.12 % | 3.12 % | | **Total debt rate** | **3.59 %** | **3.54 %** | **3.71 %** | [Capital Analysis](index=15&type=section&id=Capital%20Analysis) This section analyzes Centerspace's capital structure, including equity, debt capitalization, and key debt service ratios Equity and Debt Capitalization (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | Total equity capitalization | $1,111,651 | $1,135,426 | $1,082,442 | | Total debt | $929,081 | $919,990 | $921,659 | | Total capitalization | $2,057,292 | $2,071,976 | $2,020,661 | | Total debt to total capitalization | 45.2 % | 44.4 % | 45.6 % | Debt Service and Distribution Data | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | | Debt service coverage ratio | 3.02 x | 3.09 x | 2.70 x | | Net debt/Adjusted EBITDA | 7.08 x | 7.10 x | 7.22 x | | Common distribution per share and Unit | $0.75 | $0.73 | $0.73 | | Payout ratio (Core FFO per diluted share and unit basis) | 61.0 % | 59.8 % | 68.2 % | [Portfolio Analysis](index=16&type=section&id=Portfolio%20Analysis) This section offers a comprehensive analysis of Centerspace's apartment portfolio, including detailed same-store comparisons (year-over-year and sequential), occupancy and rental rate trends, and a breakdown of capital expenditures across various categories [Same-Store Comparisons (Year-Over-Year)](index=16&type=section&id=Same-Store%20Comparisons%20(Year-Over-Year)) This section provides a year-over-year comparison of same-store revenues, expenses, NOI, occupancy, and rental rates Same-Store Performance (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :------------------------------------ | :------ | :------ | :------- | | Revenues | $61,536 | $59,439 | 3.5 % | | Expenses | $23,995 | $24,526 | (2.2)% | | NOI | $37,541 | $34,913 | 7.5 % | | Weighted Average Occupancy | 94.6 % | 94.9 % | (0.3)% | | Average Monthly Rental Rate | $1,547 | $1,499 | 3.2 % | | Average Monthly Revenue per Occupied Home | $1,724 | $1,660 | 3.9 % | - St. Cloud, MN region showed the highest year-over-year NOI growth at **21.2%**, driven by an **8.2% increase in revenues** and a **4.6% decrease in expenses**[51](index=51&type=chunk) [Same-Store Comparisons (Sequential Quarter)](index=17&type=section&id=Same-Store%20Comparisons%20(Sequential%20Quarter)) This section presents a sequential quarter comparison of same-store revenues, expenses, NOI, occupancy, and rental rates Same-Store Performance (Q1 2024 vs Q4 2023, in thousands) | Metric | Q1 2024 | Q4 2023 | % Change | | :------------------------------------ | :------ | :------ | :------- | | Revenues | $61,536 | $61,230 | 0.5 % | | Expenses | $23,995 | $24,013 | (0.1)% | | NOI | $37,541 | $37,217 | 0.9 % | | Weighted Average Occupancy | 94.6 % | 94.8 % | (0.2)% | | Average Monthly Rental Rate | $1,547 | $1,548 | (0.1)% | | Average Monthly Revenue per Occupied Home | $1,724 | $1,711 | 0.8 % | - Minneapolis, MN region experienced a **4.8% sequential increase in NOI**, despite a slight revenue decrease, due to a **6.7% reduction in expenses**[55](index=55&type=chunk) [Portfolio Summary](index=18&type=section&id=Portfolio%20Summary) This section summarizes key metrics for Centerspace's apartment portfolio, distinguishing between same-store and non-same-store communities Portfolio Key Metrics (as of 3/31/2024) | Metric | Same-Store | Non-Same-Store | All Communities | | :------------------------------------ | :--------- | :------------- | :-------------- | | Number of Apartment Homes at Period End | 12,580 | 303 | 12,883 | | Average Monthly Rental Rate | $1,547 | $1,885 | $1,555 | | Average Monthly Revenue per Occupied Apartment Home | $1,724 | $2,053 | $1,732 | | Weighted Average Occupancy | 94.6 % | 96.6 % | 94.6 % | | Operating Expenses as a % of Scheduled Rent | 41.1 % | 33.0 % | 40.9 % | [Capital Expenditures](index=19&type=section&id=Capital%20Expenditures) This section details Centerspace's capital expenditures, categorizing them into recurring, value-add, and acquisition-related spending Capital Expenditures (Q1 2024, in thousands) | Category | Same-Store | All Properties | | :------------------------------------ | :--------- | :------------- | | Recurring Capital Expenditures | $2,630 | $2,677 | | Recurring Capital Expenditures per Apartment Home | $209 | $208 | | Total Value Add | $9,525 | $9,958 | | Acquisition and Other Capital Expenditures | N/A | $2,581 | | Total Capital Spend | $12,155 | $15,216 | | Total Capital Spend per Apartment Home | $966 | $1,181 | - Total Capital Spend for all properties in Q1 2024 was **$15.2 million**, significantly higher than **$9.2 million** in Q1 2023[63](index=63&type=chunk) [2024 Financial Outlook (Detailed)](index=20&type=section&id=2024%20Financial%20Outlook%20(Detailed)) This section provides a comprehensive breakdown of Centerspace's revised 2024 financial outlook, detailing projections for same-store growth, components of NOI, interest expenses, and non-core income/expenses, along with key per-share metrics and additional assumptions 2024 Revised Financial Outlook Ranges | Metric | Low | High | | :------------------------------------ | :---- | :---- | | Same-store Revenue Growth | 3.00 % | 4.50 % | | Same-store Total Expenses Growth | 4.00 % | 5.50 % | | Same-store NOI Growth | 2.50 % | 4.00 % | | Total NOI (thousands) | $155,753 | $158,153 | | FFO per diluted share | $4.57 | $4.76 | | Core FFO per diluted share | $4.74 | $4.92 | | Net loss per share - diluted | $(1.34) | $(1.10) | - Additional assumptions for 2024 include same-store recurring capital expenditures of **$1,075 to $1,150 per home**, value-add expenditures of **$25.0 million to $27.0 million**, and proceeds from dispositions of **$19.0 million**[67](index=67&type=chunk) [Non-GAAP Financial Measures and Other Terms](index=22&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Terms) This section provides comprehensive definitions and explanations for various non-GAAP financial measures and other key terms used throughout the earnings release and supplemental data, including Adjusted EBITDA, FFO, Core FFO, NOI, and different capital expenditure categories, along with their reconciliations to GAAP measures - **Adjusted EBITDA** is defined as earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment, and other non-routine items, used to view income from operations without certain non-cash or non-operating effects[74](index=74&type=chunk) - **Funds From Operations (FFO)** is a non-GAAP measure defined by Nareit, excluding depreciation and amortization related to real estate, gains/losses from real estate sales, and impairment write-downs, to help investors understand operating performance[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - **Core Funds from Operations (Core FFO)** further adjusts FFO for non-routine items not considered core to business operations, providing additional information for comparing core operating performance[84](index=84&type=chunk) - **Net Operating Income (NOI)** is defined as total real estate revenues less property operating expenses, including real estate taxes, providing a measure of operations unaffected by financing costs, depreciation, and general and administrative expenses[87](index=87&type=chunk) - **Recurring Capital Expenditures** are necessary to preserve the value and maintain functionality of communities, while **Value Add expenditures** are expected to increase income generation or decrease expense growth[90](index=90&type=chunk)[94](index=94&type=chunk)

Form 10-Q For the quarterly period ended March 31, 2024 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35624 | --- | |--------------------------------------| | | | 45-0311232 | | (I.R.S. Employer Identification No.) | | | | 58702-1988 | | (Zip code) | (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities ...