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Centerspace(CSR) - 2024 Q4 - Annual Results
CSRCenterspace(CSR)2025-02-18 21:31

Financial Performance - Net loss per diluted share for the year ended December 31, 2024, was (1.27),comparedtonetincomeof(1.27), compared to net income of 2.32 per diluted share for the year ended December 31, 2023[5] - Core FFO increased to 4.88perdilutedsharefortheyearendedDecember31,2024,a2.14.88 per diluted share for the year ended December 31, 2024, a 2.1% increase from 4.78 for the year ended December 31, 2023[5] - The company provided guidance for 2025, projecting a diluted net loss per share range of (0.71)to(0.71) to (0.45) and FFO per share range of 4.73to4.73 to 4.97[10] - Total revenue for the twelve months ended December 31, 2024, was 260,983,000,aslightdecreaseof260,983,000, a slight decrease of 326,000 or 0.1% compared to the previous year[34] - The company reported a net income (loss) per common share of (0.31)forthethreemonthsendedDecember31,2024,comparedto(0.31) for the three months ended December 31, 2024, compared to (0.40) in the previous quarter[24] - The company reported a significant decrease in operating income for the twelve months ended December 31, 2024, down to 20,475,000from20,475,000 from 84,453,000, a decline of 63,978,000or75.863,978,000 or 75.8%[34] - The company reported a net loss available to common shareholders for the twelve months ended December 31, 2024, was (19,660) million, with a guidance range for 2025 between (10,845)millionand(10,845) million and (5,945) million[80] Revenue and Growth - Same-store revenue growth was 3.3% year-over-year, contributing to a 3.7% increase in same-store NOI[5] - Revenue for the three months ended December 31, 2024, was 66,409million,aslightincreasefrom66,409 million, a slight increase from 65,025 million in the previous quarter[24] - Revenue from same-store properties for the three months ended December 31, 2024, was 63,127,000,anincreaseof63,127,000, an increase of 517,000 or 0.8% sequentially and 1,897,000or3.11,897,000 or 3.1% year-over-year[33] - Same-store revenues for 2024 reached 249.872 million, a 3.3% increase from 241.989millionin2023[64]−Thecompanyreporteda7.2241.989 million in 2023[64] - The company reported a 7.2% revenue growth in North Dakota, with revenues reaching 29.119 million in 2024[64] Expenses and Liabilities - Total expenses for the three months ended December 31, 2024, were 63,551million,comparedto63,551 million, compared to 58,675 million in the previous quarter, reflecting a 8.5% increase[24] - Property operating expenses for the three months ended December 31, 2024, totaled 26,327,000,adecreaseof26,327,000, a decrease of 332,000 or 1.2% sequentially and an increase of 1,229,000or4.91,229,000 or 4.9% year-over-year[36] - Total liabilities as of December 31, 2024, were 1,014,704 million, compared to 982,266millionasofSeptember30,2024,indicatinga3.7982,266 million as of September 30, 2024, indicating a 3.7% increase[26] - Total debt as of December 31, 2024, is 966,623,000, with a total market capitalization of 2,280,054,000,resultinginatotaldebttototalmarketcapitalizationratioof42.42,280,054,000, resulting in a total debt to total market capitalization ratio of 42.4%[52] Capital Expenditures - Same-store capital expenditures ranged from 1,125 to 1,175perhome,withvalue−addexpendituresestimatedbetween1,175 per home, with value-add expenditures estimated between 16.0 million and 18.0million[14]−Totalcapitalexpendituresforallpropertiesin2024amountedto18.0 million[14] - Total capital expenditures for all properties in 2024 amounted to 7.294 million, down from 23.759millionin2023[72]−Recurringcapitalexpendituresperapartmenthomeforsame−storepropertiesdecreasedto23.759 million in 2023[72] - Recurring capital expenditures per apartment home for same-store properties decreased to 238, down from 476in2023[72]−Thecompanyplanstomaintainafocusoncapitalexpendituresforvalue−addprojects,withtotalvalue−addexpendituresforsame−storepropertiesat476 in 2023[72] - The company plans to maintain a focus on capital expenditures for value-add projects, with total value-add expenditures for same-store properties at 3.093 million in 2024[72] Shareholder Information - Centerspace issued approximately 1.6 million common shares for net proceeds of 112.6million,withanaveragepriceof112.6 million, with an average price of 71.66 per share[6] - Closing common shares outstanding increased to 16,719 thousand as of December 31, 2024, from 14,963 thousand a year earlier[21] - The company reported dividends to Series D preferred unitholders totaling 640,000forthetwelvemonthsendedDecember31,2024,consistentwiththepreviousyear[42]−TotalcommondistributiondeclaredforthetwelvemonthsendedDecember31,2024,was640,000 for the twelve months ended December 31, 2024, consistent with the previous year[42] - Total common distribution declared for the twelve months ended December 31, 2024, was 49,911,000, compared to 46,442,000forthepreviousyear[54]OperationalMetrics−Theweightedaverageoccupancyrateforthesame−storeportfolioimprovedto95.546,442,000 for the previous year[54] Operational Metrics - The weighted average occupancy rate for the same-store portfolio improved to 95.5%, up from 94.8% in Q4 2023, marking a 0.7% growth[57] - Average monthly rental rates increased to 1,573, a 1.6% rise from 1,548inQ42023[57]−Theaveragemonthlyrevenueperoccupiedapartmenthomeforsame−storepropertieswas1,548 in Q4 2023[57] - The average monthly revenue per occupied apartment home for same-store properties was 1,751, an increase of 4.0% from 1,683in2023[68]−ThecompanyemphasizestheimportanceofNetOperatingIncome(NOI)asasupplementalmeasureofoperatingperformance,excludingvariousnon−operationalcosts[99]GuidanceandProjections−Theguidancefor2025indicatesacontinuedfocusonrevenuegrowthandoccupancyimprovementstrategies[75]−RevenueforthetwelvemonthsendedDecember31,2024,was1,683 in 2023[68] - The company emphasizes the importance of Net Operating Income (NOI) as a supplemental measure of operating performance, excluding various non-operational costs[99] Guidance and Projections - The guidance for 2025 indicates a continued focus on revenue growth and occupancy improvement strategies[75] - Revenue for the twelve months ended December 31, 2024, was 252,269 million, with same-store growth projected between 1.50% and 3.50% for 2025[77] - Total NOI for the same period was 157,739million,withaguidancerangefor2025between157,739 million, with a guidance range for 2025 between 161,300 million and 164,800million[77]−CoreFFOapplicabletocommonsharesandUnitsforthetwelvemonthsendedDecember31,2024,was164,800 million[77] - Core FFO applicable to common shares and Units for the twelve months ended December 31, 2024, was 91,319 million, with a projected range for 2025 between 96,800millionand96,800 million and 101,625 million[80]