Centerspace Announces Financial and Operating Results for the Year Ended December 31, 2025 and Provides 2026 Financial Outlook

Core Viewpoint - Centerspace reported its financial and operating results for the year ended December 31, 2025, showing improvements in key metrics such as net income, funds from operations (FFO), and core FFO, while also providing a financial outlook for 2026 [1][2]. Financial Performance - For the year ended December 31, 2025, net income per diluted share was $1.02, compared to a net loss of $1.27 per diluted share in 2024 [1]. - FFO per diluted share increased to $4.74 in 2025 from $4.49 in 2024, while core FFO per diluted share rose to $4.93 from $4.88 [1]. - Same-store revenues grew by 2.4% year-over-year, and same-store NOI increased by 3.5% [1]. Operational Highlights - The company sold twelve non-core apartment communities and one corporate office building for a total of $215.5 million [1]. - Centerspace repurchased 62,973 shares at an average price of $54.86 per share [1]. - The company acquired two apartment communities for a total purchase price of $281.2 million, including the assumption of $76.5 million in mortgage debt [1]. Occupancy and Lease Metrics - The weighted average occupancy rate was 95.7% for the year ended December 31, 2025, compared to 95.4% in 2024 [1]. - New lease rate growth decreased by 4.8% year-over-year, while renewal lease rate growth was 3.9% [1]. - The retention rate dropped to 55.2% from 61.8% in the previous year [1]. Balance Sheet and Liquidity - As of December 31, 2025, Centerspace had total liquidity of $267.9 million, including $255.1 million available on lines of credit and $12.8 million in cash [1]. Dividend Distribution - The Board of Trustees announced a quarterly distribution of $0.77 per share/unit, payable on April 14, 2026 [1]. 2026 Financial Outlook - For 2026, the company projects a diluted net income per share range of $(0.49) to $(0.19) and FFO per share between $4.61 and $4.89 [1]. - Core FFO per share is expected to range from $4.81 to $5.05 [1]. Strategic Review - The Board is currently reviewing strategic alternatives to maximize shareholder value, with no definitive timetable for the process [1].