Centerspace(US:CSR)2025-11-03 21:34Financial Performance - Net income for Q3 2025 was $3.19 per diluted share, compared to a net loss of $0.40 per diluted share in Q3 2024[12] - Funds from Operations (FFO) per diluted share increased to $1.19, up from $1.01 in the same period last year, representing a year-over-year increase of 17.8%[12] - Core FFO per diluted share remained stable at $1.19, slightly up from $1.18 in Q3 2024[12] - Revenue for Q3 2025 was $71.4 million, a $6.4 million increase or 9.8% compared to $65.0 million in Q3 2024[5] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $53,783 million, compared to a net loss of $14,515 million in the previous quarter[23] - Operating income for the three months ended September 30, 2025, was $77,210 million, a significant recovery from an operating loss of $6,796 million in the previous quarter[23] - Total revenue for the three months ended September 30, 2025, reached $71,399, up 4.2% from the previous quarter and 9.8% year-over-year[32] - Same-store revenues for Q3 2025 reached $58,061,000, a 2.4% increase from $56,707,000 in Q3 2024[58] Financial Outlook - The company updated its 2025 financial outlook, projecting diluted net income per share to range from $1.97 to $2.19, down from the previous outlook of $2.50 to $2.76[8] - Same-store NOI is expected to grow between 3.00% and 3.50% for 2025, compared to the previous guidance of 2.50% to 3.50%[8] - Revenue for the nine months ended September 30, 2025, is projected to be $173,552 million, with same-store growth expected between 2.00% and 3.00%[77] - Funds from operations (FFO) applicable to common shares and units is expected to be $71,485 million, with a high estimate of $96,200 million[80] - Core FFO per diluted share is projected to be $3.68, with a high estimate of $5.00[80] - The company expects a net income available to common shareholders of $35,534 million, with a high estimate of $47,110 million[80] Asset and Liability Management - As of the end of Q3 2025, Centerspace had total liquidity of $200.4 million, consisting of $187.5 million available under lines of credit and $12.9 million in cash[6] - The total assets as of September 30, 2025, amounted to $2,097,606 million, an increase from $2,013,239 million as of June 30, 2025[25] - The total liabilities as of September 30, 2025, were $1,210,682 million, up from $1,168,347 million as of June 30, 2025[25] - Total debt as of September 30, 2025, is $1,144,138, with a weighted average interest rate of 3.80%[50] - The company has $1,177,284 in total debt, representing 50.4% of total market capitalization as of September 30, 2025[54] - The total debt to total market capitalization ratio has increased from 40.1% in the previous year to 50.4%[54] Operational Highlights - Same-store revenues increased by 2.4% year-over-year, contributing to a 4.5% increase in same-store Net Operating Income (NOI)[5] - The company disposed of five apartment communities during the three months ended September 30, 2025, consisting of 832 apartment homes[30] - The company reported a gain on the sale of real estate investments of $79,531 million for the three months ended September 30, 2025[23] - Average monthly rental rate in Denver, CO decreased by 1.9% to $1,956 in Q3 2025 from $1,993 in Q3 2024[58] - The average monthly revenue per occupied home rose by 2.2% to $1,823 in Q3 2025 from $1,784 in Q3 2024[58] Expense Management - Total expenses for the three months ended September 30, 2025, were $73,720 million, a decrease of 2.8% compared to $75,345 million in the previous quarter[23] - Property operating expenses for the three months ended September 30, 2025, totaled $28,375, a 6.4% increase from the previous quarter and a 6.1% increase year-over-year[39] - General and administrative expenses for the three months ended September 30, 2025, increased to $4,997, a 14.0% rise compared to the previous quarter[32] - Same-store controllable expenses for the three months ended September 30, 2025, were $14,564, up 3.4% from the previous quarter[39] Debt and Financing - The debt service coverage ratio for the three months ended September 30, 2025, is 2.35x, compared to 2.78x for the previous quarter[56] - The company reported a net debt to adjusted EBITDA ratio of 7.90x for the three months ended September 30, 2025[56] - The total debt to total market capitalization is a non-GAAP financial measure that includes total debt divided by the sum of total debt, market value of common shares, and preferred units[113] Capital Expenditures - Total capital expenditures for all properties amounted to $9.379 million in Q3 2025, down from $11.852 million in Q3 2024[74] - Recurring capital expenditures per apartment home for same-store properties decreased to $350 in Q3 2025 from $363 in Q3 2024[74] - Total same-store capital spend was $7.165 million in Q3 2025, down from $8.157 million in Q3 2024[74] Regional Performance - North Dakota reported a 5.9% increase in revenues, totaling $7,836,000 in Q3 2025 compared to $7,398,000 in Q3 2024[58] - Minneapolis, MN's NOI increased by 3.4% to $11,074,000 in Q3 2025 from $10,706,000 in Q3 2024[58] - The company maintained a strong performance in the Boulder/Ft. Collins region, with revenues increasing by 1.6% to $3,450,000 in Q3 2025[58] - North Dakota region showed the highest revenue growth of 6.8%, with revenues increasing to $23.135 million in 2025 from $21.656 million in 2024[66]