Financial Data and Key Metrics Changes - Centerspace reported core FFO for Q4 2022 of $1.17 per diluted share, bringing the full year core FFO to $4.43 per diluted share, an increase of 11% over the prior year [36][4] - The same-store portfolio achieved a 9% growth in net operating income compared to 2021, with revenue growth of 10% for the full year [34][4] - Total debt as of December 31, 2022, was $1 billion with a weighted average interest rate of 3.62% [15] Business Line Data and Key Metrics Changes - The same-store portfolio saw an average new lease increase of 8% and renewals increased by 8.4% during 2022 [12] - In Q4, same-store new lease rates increased by 1.8% on average, while same-store renewals achieved average increases of 7.2% [34] - The company experienced a 26% increase in utility expenses contributing to the overall same-store expense increase in 2022 [35] Market Data and Key Metrics Changes - The company noted that its portfolio is among the least exposed to new supply in the public markets, providing a strong value proposition to residents [10] - The financial health of residents remains strong, with a weighted average occupancy increase of 40 basis points to 94.9% in Q4 [12] Company Strategy and Development Direction - Centerspace plans to continue improving its portfolio and has deployed about $125 million in capital for acquisitions and share buybacks [8] - The company expects to close on the sale of 11 assets for approximately $155 million to $165 million, which will be used to pay down debt [17] - The management is focused on enhancing operational efficiencies and maintaining strong revenue growth despite inflationary pressures [14][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's fundamentals and the ability to navigate expense challenges, particularly in the Midwest and Mountain West markets [7] - The outlook for 2023 anticipates core FFO to be roughly flat compared to 2022 at $4.42 per share, with total expenses expected to grow by 5.5% [16][9] Other Important Information - The company closed on a $100 million unsecured term loan facility to enhance balance sheet flexibility during market volatility [15] - Management indicated that the majority of inflationary increases were realized in the second half of 2022, suggesting moderated expense growth moving forward [35] Q&A Session Summary Question: Can you walk through the asset dispositions and their impact? - Management detailed the locations of the assets being sold and estimated a dilutive impact of $0.08 to $0.10 on guidance [20][21] Question: What is the status of the RUBS program? - The RUBS program is expected to contribute to revenue growth, with utility expenses projected to remain flat due to residents being responsible for their own utilities [22][42] Question: What are the expectations for bad debt and occupancy in 2023? - Projections for bad debt in 2023 are about 40 basis points, with occupancy expected to remain around 95% [47] Question: How does the company view its dividend levels? - Management indicated that the dividend is considered secure, with a strong asset base providing financial security [49] Question: What is the acquisition pipeline looking like? - Management noted that while there are opportunities, the volume of transactions has decreased compared to previous years [71]

Part I [Business Overview](index=4&type=section&id=Item%201.%20Business) Centerspace is a REIT specializing in owning, managing, and developing apartment communities across the Midwest and Mountain West - Centerspace is a REIT focused on owning, managing, and developing apartment communities, with **84 communities** and **15,065 homes** and a net real estate investment of **$2.0 billion** as of December 31, 2022[15](index=15&type=chunk)[40](index=40&type=chunk) - The company operates as an Umbrella Partnership Real Estate Investment Trust (UPREIT) through its operating partnership, facilitating tax-deferred property contributions[17](index=17&type=chunk)[43](index=43&type=chunk) - Business strategies focus on enhancing resident experience, scaling for efficiency, leveraging technology, and committing to ESG initiatives[20](index=20&type=chunk)[21](index=21&type=chunk) - As of December 31, 2022, the company had **471 employees**, with **52.0% identifying as female** and diverse ethnic representation[85](index=85&type=chunk)[34](index=34&type=chunk) - The company faces direct competition from other apartment communities, single-family homes, and various real estate investors, including REITs[36](index=36&type=chunk)[104](index=104&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, financial, and stock-related risks, including macroeconomic volatility, sector concentration, and REIT status maintenance - Operations are materially affected by uncertain global macroeconomic and political conditions, including inflation and geopolitical instability[62](index=62&type=chunk)[92](index=92&type=chunk) - Investments are significantly concentrated in the multifamily sector, increasing vulnerability to market downturns[68](index=68&type=chunk) - The company faces risks from security breaches and cyber-attacks, having previously experienced a non-material ransomware attack[77](index=77&type=chunk)[108](index=108&type=chunk) - Financing risks include inability to refinance debt on favorable terms due to high interest rates and restrictive debt covenants[115](index=115&type=chunk)[116](index=116&type=chunk)[131](index=131&type=chunk) - Failure to qualify as a REIT would result in federal income tax at corporate rates, significantly reducing funds for distribution and investment[148](index=148&type=chunk)[170](index=170&type=chunk) [Unresolved Staff Comments](index=22&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the SEC staff - No unresolved staff comments were reported[179](index=179&type=chunk) [Properties](index=22&type=section&id=Item%202.%20Properties) As of December 31, 2022, the portfolio included 84 apartment communities with 15,065 homes, concentrated in Minnesota and Colorado - As of December 31, 2022, the company owned **84 apartment communities** with **15,065 homes**, categorized into same-store and non-same-store pools[161](index=161&type=chunk) Properties by State (as of Dec 31, 2022) | State | Total Value (in thousands) | % of Total | | :--- | :--- | :--- | | Minnesota | $ 1,046,037 | 52.3 % | | Colorado | 632,310 | 31.6 % | | North Dakota | 203,955 | 10.2 % | | Nebraska | 73,023 | 3.7 % | | South Dakota | 24,179 | 1.2 % | | Montana | 19,219 | 1.0 % | | **Total** | **$ 1,998,723** | **100.0 %** | - The portfolio comprises **71 same-store communities** with **11,330 homes** and **24 non-same-store communities** with **3,735 homes**[162](index=162&type=chunk)[185](index=185&type=chunk)[203](index=203&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material pending or threatened legal proceedings - The company is not aware of any material pending or threatened legal proceedings[187](index=187&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - This item is not applicable[188](index=188&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common shares trade on the NYSE under 'CSR', with approximately 2,524 shareholders and recent share repurchases - The company's common shares are traded on the NYSE under the symbol **'CSR'**[189](index=189&type=chunk) - As of February 14, 2023, there were approximately **2,524 common shareholders** of record[190](index=190&type=chunk) - A stock performance graph compares the company's five-year cumulative total return against key industry indices[193](index=193&type=chunk)[213](index=213&type=chunk) - In Q4 2022, the company purchased **430,502 shares and units** at an average price of **$67.37**[192](index=192&type=chunk) [Reserved](index=27&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company reported strong operational performance in FY2022 with increased Core FFO and NOI, despite a net loss, driven by acquisitions and strategic financing Key Performance Metrics (FY 2022 vs. FY 2021) | Metric | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net Loss per Diluted Share | ($1.35) | ($0.47) | | Core FFO per Diluted Share | $4.43 | $3.99 | | Same-Store NOI Growth | 9.0% | N/A | - During 2022, the company acquired **five apartment communities** for **$211.9 million** and issued **321,000 common shares** via its ATM program for **$31.4 million** in net proceeds[248](index=248&type=chunk)[537](index=537&type=chunk)[47](index=47&type=chunk) Consolidated Results of Operations (in thousands) | Metric | FY 2022 | FY 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $256,716 | $201,705 | +27.3% | | Net Operating Income (NOI) | $148,079 | $119,848 | +23.6% | | Net Loss | ($17,641) | ($2,101) | +739.6% | Funds from Operations (FFO) and Core FFO (in thousands, except per share) | Metric | FY 2022 | FY 2021 | | :--- | :--- | :--- | | FFO applicable to common shares and Units | $79,928 | $54,925 | | Core FFO applicable to common shares and Units | $81,883 | $62,085 | | FFO per diluted share and Unit | $4.32 | $3.54 | | Core FFO per diluted share and Unit | $4.43 | $3.99 | - Total liquidity was approximately **$153.0 million** as of December 31, 2022, comprising **$142.5 million** in credit lines and **$10.5 million** in cash[268](index=268&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its **$213.5 million** variable-rate debt, with a **$2.1 million** annual impact per 100 basis points change - The primary market risk stems from interest rate fluctuations on variable rate debt obligations[289](index=289&type=chunk) - As of December 31, 2022, the company had **$213.5 million** in variable-rate borrowings, with a **100 basis point** interest rate change impacting net income by an estimated **$2.1 million** annually[314](index=314&type=chunk) - During 2022, the company terminated its remaining interest rate swaps, increasing exposure to variable rate movements[339](index=339&type=chunk) [Financial Statements and Supplementary Data](index=39&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates the consolidated financial statements and the independent auditor's report by reference, starting on page F-1 - Consolidated financial statements, related notes, and the Independent Registered Public Accounting Firm's Report are included starting on page F-1[316](index=316&type=chunk)[363](index=363&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=39&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - No changes in or disagreements with accountants were reported[342](index=342&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - Management concluded that disclosure controls and procedures were effective as of December 31, 2022[292](index=292&type=chunk) - Management assessed and found internal control over financial reporting effective as of December 31, 2022, as audited by Grant Thornton LLP[293](index=293&type=chunk)[347](index=347&type=chunk) - No material changes in internal control over financial reporting were identified during the fourth quarter[343](index=343&type=chunk) [Other Information](index=40&type=section&id=Item%209B.%20Other%20Information) No information is reported under this item - No information is reported[348](index=348&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=40&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - This item is not applicable[349](index=349&type=chunk) Part III [Trustees, Executive Officers and Corporate Governance](index=40&type=section&id=Item%2010.%20Trustees%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on trustees, executive officers, and corporate governance is incorporated by reference from the 2023 proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2023 Annual Meeting of Shareholders[322](index=322&type=chunk) [Executive Compensation](index=40&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information, including tables, is incorporated by reference from the 2023 proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2023 Annual Meeting of Shareholders[323](index=323&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=40&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Security ownership information for beneficial owners and management is incorporated by reference from the 2023 proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2023 Annual Meeting of Shareholders[324](index=324&type=chunk) [Certain Relationships and Related Transactions, and Trustee Independence](index=40&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Trustee%20Independence) Information on related party transactions and trustee independence is incorporated by reference from the 2023 proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2023 Annual Meeting of Shareholders[325](index=325&type=chunk) [Principal Accountant Fees and Services](index=40&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2023 proxy statement - Information is incorporated by reference from the definitive proxy statement for the 2023 Annual Meeting of Shareholders[326](index=326&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=40&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules, including Schedule III, filed with or incorporated into the report - This section lists the financial statements, Schedule III (Real Estate and Accumulated Depreciation), and all exhibits filed with the report[327](index=327&type=chunk)[351](index=351&type=chunk) [10-K Summary](index=41&type=section&id=Item%2016.%2010-K%20Summary) The company has not provided a summary for this item - No summary has been provided for this item[331](index=331&type=chunk) Financial Statements and Supplementary Data [Reports of Independent Registered Public Accounting Firm](index=47&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued unqualified opinions on the consolidated financial statements and internal control over financial reporting - Grant Thornton LLP issued an unqualified opinion on the fair presentation of financial statements in conformity with GAAP[391](index=391&type=chunk) - An unqualified opinion was also issued on the effectiveness of internal control over financial reporting as of December 31, 2022[365](index=365&type=chunk)[368](index=368&type=chunk) - The firm determined there were no critical audit matters from the current period audit[393](index=393&type=chunk) [Consolidated Financial Statements](index=49&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements for FY2022 show total assets of **$2.03 billion**, a net loss of **$17.6 million**, and increased operating cash flow Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Real Estate Investments | $1,998,723 | $1,870,854 | | **Total Assets** | **$2,033,301** | **$1,940,061** | | Total Liabilities | $1,066,445 | $918,450 | | **Total Equity** | **$950,296** | **$996,280** | Consolidated Statement of Operations Data (in thousands) | Account | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | Revenue | $256,716 | $201,705 | $177,994 | | Operating Income | $13,861 | $29,892 | $33,843 | | **Net Loss** | **($17,641)** | **($2,101)** | **$4,743 (Income)** | Consolidated Cash Flow Data (in thousands) | Account | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $91,991 | $84,028 | | Net Cash from Investing Activities | ($160,094) | ($267,225) | | Net Cash from Financing Activities | $41,369 | $214,512 | [Notes to Consolidated Financial Statements](index=55&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, **$1.01 billion** in debt, **$211.9 million** in 2022 acquisitions, and share-based compensation plans - The company operates as an UPREIT, holding an **82.9% interest** in its Operating Partnership as of December 31, 2022, with financial statements relying on real estate valuation estimates[410](index=410&type=chunk)[440](index=440&type=chunk)[442](index=442&type=chunk) Total Debt Summary (as of Dec 31, 2022, in thousands) | Debt Type | Balance | Weighted Avg. Maturity (Years) | | :--- | :--- | :--- | | Lines of credit | $113,500 | 2.75 | | Term loans | $100,000 | 0.89 | | Unsecured senior notes | $300,000 | 8.26 | | Mortgages payable | $498,277 | 6.69 | | **Total Debt** | **$1,011,777** | **5.76** | - In 2022, the company acquired **five apartment communities** for **$211.9 million**, with no property dispositions during the year[537](index=537&type=chunk)[566](index=566&type=chunk)[568](index=568&type=chunk) - Total share-based compensation expense was **$2.6 million** in 2022, including grants of **30,245 stock options** and various RSUs to employees and trustees[604](index=604&type=chunk)[487](index=487&type=chunk)[578](index=578&type=chunk)

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 September 30, 2022 or ☐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 (State or other jurisdict ...

Centerspace (NYSE:CSR) Q2 2022 Earnings Conference Call August 2, 2022 10:00 AM ET Company Participants Joe McComish - VP, Finance Mark Decker - CEO Bhairav Patel - CFO Anne Olson - COO Conference Call Participants John Kim - BMO Brad Heffern - RBC Capital Markets Rob Stevenson - Janney Connor Mitchell - Piper Sandler Buck Horne - Raymond James Wes Golladay - Baird Operator Good morning and welcome to today's Centerspace Second Quarter Earnings Call. My name is Candice and I'll be your moderator for today's ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) This section presents Centerspace's unaudited condensed consolidated financial statements, detailing balance sheets, operations, and cash flows, highlighting asset stability, net loss, and acquisition-related financing [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to **$1.948 billion**, driven by property investments, while total liabilities remained stable and equity grew to **$1.011 billion** due to share issuances | Balance Sheet Items | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total real estate investments** | $1,913,593 | $1,870,854 | | Cash and cash equivalents | $13,156 | $31,267 | | **TOTAL ASSETS** | **$1,947,613** | **$1,940,061** | | **TOTAL LIABILITIES** | **$918,368** | **$918,450** | | **Total equity** | **$1,010,618** | **$996,280** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $3.7 million** for Q2 2022, a shift from prior-year net income, primarily due to the absence of a large gain on real estate sales | Metric (in thousands, except EPS) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Revenue** | $63,116 | $46,656 | | **Total Expenses** | $59,308 | $43,923 | | Gain on sale of real estate | $27 | $26,840 | | **Operating Income** | $3,835 | $29,573 | | **Net Income (Loss)** | $(3,743) | $23,103 | | **Net Loss Available to Common Shareholders** | $(4,598) | $19,931 | | **Diluted EPS** | $(0.30) | $1.48 | | Metric (in thousands, except EPS) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Revenue** | $123,430 | $93,304 | | **Total Expenses** | $123,533 | $88,930 | | Gain on sale of real estate | $27 | $26,840 | | **Operating Loss** | $(76) | $31,214 | | **Net Loss** | $(14,306) | $17,944 | | **Net Loss Available to Common Shareholders** | $(14,794) | $13,457 | | **Diluted EPS** | $(0.97) | $1.02 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$34.5 million**, while investing and financing activities resulted in net cash usage, reflecting acquisitions and debt payments | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $34,491 | $30,574 | | Net cash used by investing activities | $(23,547) | $(40,792) | | Net cash used by financing activities | $(34,499) | $16,546 | | **Net decrease in cash** | **$(23,555)** | **$6,328** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, debt structure of **$874.2 million**, termination of interest rate swaps, and **$116.9 million** in property acquisitions, operating as a multifamily REIT - As of June 30, 2022, Centerspace owned interests in **83 apartment communities** comprising **14,838 apartment homes**[33](index=33&type=chunk) - During the six months ended June 30, 2022, the company acquired **four apartment communities** in Minneapolis, MN, for a total cost of **$116.9 million**; there were no dispositions in the period[102](index=102&type=chunk)[104](index=104&type=chunk) - In February 2022, the company paid **$3.2 million** to terminate its remaining interest rate swaps, and as of June 30, 2022, the company had no interest rate swaps[85](index=85&type=chunk) | Debt Summary | June 30, 2022 (in thousands) | | :--- | :--- | | Unsecured debt | $373,000 | | Mortgages payable | $501,210 | | **Total debt** | **$874,210** | | Weighted average interest rate | 3.27% | | Weighted average maturity | 6.96 years | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022 financial results, highlighting strong revenue growth, a net loss due to non-recurring gains, **11.5% same-store NOI growth**, and a **$196.2 million liquidity position** [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2022 saw **total revenue increase 35.3% to $63.1 million** and **NOI grow 32.3%**, driven by acquisitions and same-store revenue growth, despite a net loss due to prior-year gains | Performance Metric | Three Months Ended June 30, 2022 (in thousands) | Three Months Ended June 30, 2021 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $63,116 | $46,656 | 35.3% | | Same-Store Revenue | $48,867 | $43,762 | 11.7% | | **Total NOI** | $36,900 | $27,896 | 32.3% | | Same-Store NOI | $29,167 | $26,152 | 11.5% | | Same-Store Avg. Occupancy | 94.8% | 94.9% | (0.1)% | - The increase in same-store revenue for Q2 2022 was primarily driven by an **11.8% growth in average monthly revenue per occupied home**[147](index=147&type=chunk) - General and administrative expenses increased by **37.5%** in Q2 2022, mainly due to **$1.1 million** in abandoned pursuit costs and higher professional fees and travel costs[157](index=157&type=chunk) [Funds from Operations (FFO)](index=27&type=section&id=Funds%20from%20Operations%20(FFO)) **FFO increased 39.6% to $19.1 million** for Q2 2022, with Core FFO at **$21.0 million**, driven by higher NOI from both same-store and non-same-store communities | FFO Metric (in thousands, except per share) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net Loss Available to Common Shareholders | $(4,598) | $19,931 | | **FFO applicable to common shares and Units** | **$19,085** | **$13,674** | | **Core FFO applicable to common shares and units** | **$21,016** | **$14,124** | | FFO per share and Unit - diluted | $1.02 | $0.95 | | Core FFO per share and Unit - diluted | $1.12 | $0.98 | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity stood at **$196.2 million**, comprising cash and available credit, with capital used for acquisitions, debt repayments, and improvements, partially offset by ATM program proceeds - Total liquidity was approximately **$196.2 million** as of June 30, 2022, down from **$211.3 million** at year-end 2021[182](index=182&type=chunk) - The company has a **$250.0 million** revolving line of credit with an accordion option to increase capacity to **$400.0 million**, with **$177.0 million** available as of June 30, 2022[183](index=183&type=chunk) - On June 13, 2022, the Board approved a new share repurchase program authorizing the repurchase of up to **$50.0 million** of common shares, with no shares repurchased under this program as of June 30, 2022[191](index=191&type=chunk)[69](index=69&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure to interest rate fluctuations has increased due to the termination of all interest rate swaps, impacting variable-rate debt - Centerspace's exposure to market risk from interest rate fluctuations has increased as of June 30, 2022, due to the termination of its interest rate swaps which previously fixed the variable rate on its line of credit[202](index=202&type=chunk)[203](index=203&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective[205](index=205&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[206](index=206&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond routine litigation incidental to its business operations - As of the filing date, Centerspace is not involved in any material pending legal proceedings[209](index=209&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights the potential negative impact of inflation and price volatility, where rising costs may outpace the ability to increase rents - A new risk factor has been added regarding the impact of inflation and price volatility, noting that rising operating and borrowing costs could adversely affect results if they increase faster than the company's ability to raise rents[210](index=210&type=chunk)[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued **615 unregistered Common Shares** in exchange for Operating Partnership Units and purchased **3,552 units** for cash at an average price of **$92.03** - On April 30, 2022, the Company issued **615 unregistered Common Shares** in exchange for Operating Partnership Units under the private offering exemption[213](index=213&type=chunk) | Period | Total Units Purchased | Average Price Paid per Unit | | :--- | :--- | :--- | | April 1 - 30, 2022 | 2,899 | $93.67 | | May 1 - 31, 2022 | 353 | $85.85 | | June 1 - 30, 2022 | 300 | $83.45 | | **Total** | **3,552** | **$92.03** | [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q report, including corporate governance documents and officer certifications

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 March 31, 2022 or ☐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 (State or other jurisdiction ...

Centerspace (NYSE:CSR) Q4 2021 Earnings Conference Call March 1, 2022 10:00 AM ET Company Participants Mark Decker - President and CEO Anne Olson - COO Bhairav Patel - EVP and CFO John Kirchmann - EVP Conference Call Participants Rob Stevenson - Janney Alexander Goldfarb - Piper Sandler John Kim - BMO Capital Markets Buck Horne - Raymond James Operator Good day and welcome to the Centerspace Q4 2021 Earnings Call. My name is Brica and I'll be today's event specialist. [Operator Instructions] I would now lik ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2021 or ☐ 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 58702- ...

Centerspace (NYSE:CSR) Q3 2021 Earnings Conference Call November 2, 2021 10:00 AM ET Company Participants Mark Decker - CEO Anne Olson - COO John Kirchmann - CFO Conference Call Participants John Kim - BMO Capital Markets Gaurav Mehta - National Securities Rob Stevenson - Janney Daniel Santos - Piper Sandler Buck Horne - Raymond James Amanda Sweitzer - Baird Operator Good morning, and welcome to the Centerspace Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is b ...

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 September 30, 2021 or ☐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 (State or other jurisdict ...