Financial Data and Key Metrics Changes - The company reported core FFO of $1.27 per diluted share for Q2 2024, reflecting stable revenue growth and disciplined expense management [13][25]. - Same-store revenue increased by 3.4% year-over-year, driven by a 3.3% increase in revenue per occupied home and a 10 basis point increase in weighted average occupancy to 95.3% [17][26]. - Property operating expenses rose by 5.1% year-over-year, primarily due to higher repairs and maintenance costs and increased insurance premiums [27]. Business Line Data and Key Metrics Changes - Same-store new lease trade outs averaged 3.5% during the quarter, with renewal rates also averaging 3.5% [18]. - The company experienced a leveling off of new lease pricing in July, with blended trade outs expected to be around 2.8% [19]. - Resident retention rates exceeded projections, aiding in maintaining occupancy and driving rental rates [20]. Market Data and Key Metrics Changes - The company noted a muted supply profile across its portfolio, with Denver having the highest levels of supply at 6.7% of existing stock under construction [52]. - In Minneapolis, the supply pipeline has been tapering, currently at 3.6% of existing stock under construction, down from 6% in mid-2023 [52]. - Secondary Midwest markets showed little to no supply, with pipelines ranging from 0.5% to 4.5% of existing stock [52]. Company Strategy and Development Direction - The company aims to be a premier provider of apartment homes and vibrant communities, focusing on consistent earnings growth for investors [16]. - There is a strategic shift towards acquisitions due to high construction costs and tighter capital for development deals [3]. - The company is optimistic about its cost of capital and ability to execute on external growth despite economic volatility and higher interest rates [23]. Management's Comments on Operating Environment and Future Outlook - Management raised the midpoint of full-year earnings guidance by $0.02 to $4.85 per share, reflecting confidence in current trends [22]. - The company does not anticipate additional transactions in 2024, focusing instead on optimizing existing operations [24]. - Management expressed cautious optimism regarding acquisition opportunities, noting a recent uptick in transaction activity [42]. Other Important Information - The company issued shares on its ATM program, raising approximately $37 million to reduce leverage, contrasting with previous stock buybacks [14][34]. - A recast of the line of credit was completed, extending maturity to 2028, which strengthens the balance sheet [15][36]. Q&A Session Summary Question: What is the strategy behind equity issuances? - The company uses equity issuance to pay down higher-rate floating debt, balancing leverage with growth opportunities [41]. Question: What acquisition opportunities are being seen? - Transaction volume remains down significantly, but there has been an uptick in activity, particularly in Denver and Minneapolis, with pricing in the 5% to 5.25% cap range [42]. Question: What are the supply issues faced in the portfolio? - The highest supply issues are in Denver, with 6.7% of existing stock under construction, while Minneapolis has seen a tapering supply pipeline [52]. Question: How is the company addressing lower occupancy in Omaha? - Lower occupancy in Omaha is attributed to ongoing value-add projects, with expectations of improvement post-renovation [53]. Question: What is the outlook for revenue growth in the second half of the year? - The company expects to maintain similar blended rates as the first half, with improved occupancy and lesser use of concessions compared to the previous year [55].

Over the last four quarters, the company has surpassed consensus FFO estimates four times. Centerspace shares have added about 20.9% since the beginning of the year versus the S&P 500's gain of 14.5%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately. It will be interesting to see ...

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, ...