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].

Financial Data and Key Metrics Changes - Core FFO per share for Q4 2025 was $0.32, and for the full year, it was $1.17, aligning with guidance [9] - Same-store NOI grew by 1.8% in Q4 and 2.4% for the full year, driven by a 2% increase in same-store revenue [9][10] - Operating expenses increased by 2.4% in Q4 and were modestly higher for the full year due to various factors, including higher repairs and maintenance [11] Business Line Data and Key Metrics Changes - The company renovated 2,003 units in 2025, achieving an average unlevered return on investment of 15.3% [6] - In 2026, the company plans to renovate between 2,000 and 2,500 units, adding six new communities to the Value-Add Program [7] Market Data and Key Metrics Changes - Job growth in the company's markets is forecasted to average 60 basis points, double the national average of 30 basis points [8] - The company generates nearly 70% of its NOI from communities in seven of the ten highest in-migration states, supporting apartment demand [8] Company Strategy and Development Direction - The company aims to capitalize on growth opportunities by focusing on operational efficiencies and cost savings through technology adoption [5] - Capital allocation will prioritize investments in the value-add program, with expectations of improved market fundamentals in 2026 [6][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, citing improving market fundamentals and strong demand driven by job and population growth [23] - The company anticipates same-store NOI growth of 80 basis points in 2026, with a focus on maintaining operational stability [17][19] Other Important Information - The company sold a 356-unit community for $50 million and entered a new joint venture in Indianapolis for a 318-unit community [13] - A $350 million unsecured term loan was secured to improve liquidity and manage debt maturities [15] Q&A Session Summary Question: How does the new lease rate growth assumption incorporate market rent growth? - Management indicated that the new lease growth starts negative in January but is expected to improve throughout the year, with first-half growth down about 2.25% and second-half growth up roughly 75 basis points [25] Question: Can you discuss the performance of non-same-store properties? - Management noted that non-same-store properties are performing in line with expectations, but two development deals are behind schedule due to higher concessions [27] Question: What impact will concessions burning off have on rent growth projections? - Management expects lower concessions in the back half of the year, which should improve rental rate growth, particularly for renewals [32] Question: Can you elaborate on the performance of specific markets? - Management highlighted strong performance in markets like Atlanta and Nashville, while noting challenges in Memphis due to slower macro growth [40] Question: What is the strategy regarding fixed and floating rate debt? - Management plans to maintain a flexible approach, favoring floating rate debt in the current environment while monitoring interest rate markets closely [86]

Financial Data and Key Metrics Changes - Core FFO per share for Q4 and full year 2025 was $0.32 and $1.17 respectively, aligning with guidance [9] - Same-store NOI grew 1.8% in Q4 and 2.4% for the full year, driven by a 2% increase in same-store revenue [9][10] - Average effective monthly rents increased by 60 basis points in Q4 and 80 basis points for the full year [11][12] Business Line Data and Key Metrics Changes - Same-store revenue growth in Q4 was supported by a 124 basis point improvement in bad debt and a 60 basis point increase in average effective monthly rents [10] - For 2025, same-store operating expenses were modestly higher due to increased advertising and contract service costs, offset by lower insurance and real estate taxes [11] Market Data and Key Metrics Changes - Job growth in major markets is forecasted to average 60 basis points, double the national average of 30 basis points [8] - The majority of NOI is generated from communities in high in-migration states, with nearly 70% of NOI from seven of the ten highest in-migration states [8] Company Strategy and Development Direction - The company plans to renovate between 2,000 and 2,500 units in 2026, with a focus on value-add programs [7] - The strategy includes maintaining operational stability and efficiency to maximize revenue growth while capitalizing on market recovery [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of market fundamentals, driven by job and population growth exceeding national averages [23] - The company anticipates same-store NOI growth of 1.7% and a 3.4% increase in total same-store operating expenses for 2026 [18][20] Other Important Information - The company sold a 356-unit community for $50 million and entered a new joint venture for a 318-unit community [14] - A $350 million unsecured term loan was secured to improve liquidity and manage debt maturities [16] Q&A Session Summary Question: How does the new lease rate growth assumption incorporate market rent growth? - The new lease growth starts negative in January and improves throughout the year, with first half guidance at -2.25% and second half at +75 basis points [25] Question: Can you discuss the performance of non-same-store properties? - Non-same-store properties are performing in line with expectations, but two development deals are behind schedule due to higher concessions [27] Question: What impact do concessions have on rent growth projections? - Lower concessions are expected in the second half of the year, which should improve rental rate growth [31] Question: What are the expectations for occupancy stabilization at the Flatirons development? - Occupancy is expected to stabilize at about 90% by June, which is a quarter behind expectations due to market supply pressures [80] Question: What is the strategy regarding fixed and floating rate debt? - The company plans to maintain a more floating rate debt strategy in the current environment, with a focus on managing interest rate expenses [87]

Financial Data and Key Metrics Changes - Core FFO per share for Q4 2025 was $0.32, and for the full year, it was $1.17, aligning with guidance [8] - Same-store NOI grew by 1.8% in Q4 and 2.4% for the full year, driven by a 2% increase in same-store revenue [8][10] - Average effective monthly rents increased by 60 basis points in Q4 and 80 basis points for the full year [10][12] Business Line Data and Key Metrics Changes - The company renovated 2,003 units in 2025, achieving an average unlevered return on investment of 15.3% [5] - In 2026, the company expects to renovate between 2,000 and 2,500 units, with six new communities added to the Value-Add Program [6][19] Market Data and Key Metrics Changes - Job growth in the company's markets is forecasted to average 60 basis points, double the national average of 30 basis points [7] - The company generates nearly 70% of its NOI from communities in seven of the ten highest in-migration states [7] Company Strategy and Development Direction - The company plans to focus on operational stability and efficiency to maximize revenue growth while maintaining a well-maintained environment for residents [22] - Capital allocation will prioritize investments in the value-add program, with expectations of improved market fundamentals in 2026 [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, citing improving market fundamentals and strong demand driven by job and population growth [22] - The company anticipates same-store NOI increases of 80 basis points at the midpoint for 2026, with a focus on maintaining low operating costs [17][19] Other Important Information - The company sold a 356-unit community for $50 million and entered a new joint venture in Indianapolis for a 318-unit community [12] - The company repurchased 1.9 million shares at an average price of $16 per share, taking advantage of market dislocation [5][13] Q&A Session Summary Question: How does the new lease rate growth assumption incorporate market rent growth? - Management indicated that new lease growth starts negative in January but improves throughout the year, with first-half growth down about 2.25% and second-half growth up roughly 75 basis points [25] Question: Can you discuss the performance of non-same-store properties? - Management noted that non-same-store properties are performing in line with expectations, but two development deals are behind schedule due to higher concessions [27] Question: What impact do concessions have on rent growth projections? - Management expects lower concessions in the second half of the year, which should improve rental rate growth, particularly for renewals [33] Question: Can you comment on the performance of specific markets? - Management highlighted strong performance in markets like Atlanta and Nashville, while Memphis is expected to face challenges due to slower macro growth [40] Question: What is the strategy regarding fixed and floating rate debt? - Management plans to maintain a balance between fixed and floating rate debt, with a preference for floating rates in the current environment [88]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported FFOA per share of $0.64 and full-year FFOA per share of $2.54, achieving the midpoints of previously provided guidance ranges [11][12] - Same-store revenue growth met guidance, while same-store expense and NOI growth results exceeded expectations [11][12] - The company repurchased approximately $93 million of common stock at a weighted average share price of $35.56, reflecting a sizable discount to NAV [13] Business Line Data and Key Metrics Changes - The acquisition of the Enclave at Potomac Club for $147 million is expected to outperform the market based on predictive analytics [12] - The company contributed four apartment communities to a joint venture, increasing its size to approximately $850 million [12] - The company anticipates blended lease rate growth of 1.5% to 2% in 2026, which is approximately 100 basis points higher than 2025 [21][22] Market Data and Key Metrics Changes - The company noted a slowdown in supply completions across its markets, which is expected to bolster growth [8][16] - The average rent-to-income ratio for residents remains below the long-term average, indicating affordability for rent increases [15] - The company expects a more muted job growth environment but anticipates continued demand due to high home prices and mortgage rates [14][15] Company Strategy and Development Direction - The company emphasizes a culture of innovation and data-driven decision-making to enhance shareholder value [6][7] - Ongoing investments in customer experience and AI tools are expected to drive incremental NOI growth [9][27] - The company plans to be a net seller of assets in 2026, actively marketing numerous apartment communities for sale [18][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating momentum achieved in late 2025 continuing into 2026, with expectations for high occupancy and lease rate growth [8][29] - The company is focused on optimizing occupancy and reducing turnover, with expectations for continued strong performance in key markets [38][81] - Management acknowledged potential regulatory risks but remains confident in the company's ability to navigate these challenges [72][74] Other Important Information - The company welcomed Ellen Goitia as a new board member, enhancing its governance expertise [9][10] - The company reported that its same-store revenue growth was at or above peer median across 13 of 14 markets shared with public peers in 2025 [30] Q&A Session Summary Question: Can you talk about your blended rate growth expectation for the full year? - Management noted that they are off to a better start than expected, with January's blended rate growth at about 1%, which is 50-75 basis points better than originally thought [32][34] Question: What are your thoughts on occupancy and retention? - Management emphasized efficiency in the turn process and expects to maintain occupancy around 96% while pushing for renewals in the 5% range [36][39] Question: Can you provide detail on the variance across your regions? - Management indicated stronger acceleration in the Sunbelt markets compared to coastal markets, with Dallas showing positive trends [41][42] Question: How much could you step on the gas on dispositions this year? - Management stated they are comfortable executing on a midpoint of dispositions while being mindful of tax gain capacity [46][48] Question: What factors will drive the contribution from other revenues in 2026? - Management expects mid-single-digit growth from initiatives like Wi-Fi and parking, with a focus on optimizing storage and pet rent [50][52] Question: What is your expectation for key coastal markets? - Management expects stronger performance in New York and San Francisco, while Boston and D.C. may not perform as well [78][81]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported FFOA per share of $0.64 and $2.54 for the full year, achieving the midpoints of previously provided guidance ranges [11][12] - Same-store revenue growth met guidance, while same-store expense and NOI growth results exceeded expectations [11][12] - The company repurchased approximately $120 million of its stock during 2025, reflecting a disciplined capital allocation strategy [9] Business Line Data and Key Metrics Changes - The acquisition of the Enclave at Potomac Club for $147 million is expected to outperform the market based on predictive analytics [12] - The company contributed four apartment communities to a joint venture, increasing its size to approximately $850 million [12] - The company anticipates blended lease rate growth of 1.5% to 2% in 2026, which is approximately 100 basis points higher than 2025 [21] Market Data and Key Metrics Changes - The company noted a slowdown in supply completions across its markets, which is expected to bolster its growth profile [8] - The average rent-to-income ratio for residents remains below the long-term average, indicating affordability for rent increases [15] - The company expects a more muted job growth environment but anticipates continued demand due to high home prices and mortgage rates [14] Company Strategy and Development Direction - The company emphasizes a culture of innovation and data-driven decision-making to enhance shareholder value [6][7] - Ongoing investments in customer experience and AI tools are expected to drive incremental NOI growth [9][27] - The company plans to be a net seller of assets in 2026, actively marketing several apartment communities for sale [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating momentum continuing into 2026, with expectations for further acceleration in lease rate growth and high occupancy [8][29] - The company is mindful of regulatory risks and consumer confidence, which has recently hit its lowest level in a decade [14] - Management highlighted the importance of maintaining strong occupancy levels and reducing turnover to drive cash flow [39] Other Important Information - The company welcomed Ellen Goitia as a new board member, enhancing its governance expertise [10] - The company reported that its same-store revenue growth was at or above peer median across 13 of 14 markets shared with public peers [30] Q&A Session Summary Question: Can you talk about your blended rate growth expectation for the full year? - Management noted that they are off to a better start than expected, with January achieving a 1% growth, which is 50-75 basis points better than originally thought [33] Question: What are your thoughts on occupancy and retention? - Management emphasized efficiency in the turn process and expects to maintain occupancy around 97%, with a focus on reducing turnover [39] Question: Can you provide detail on the variance across your regions? - Management indicated stronger acceleration in the Sunbelt markets compared to coastal markets, with Dallas showing positive trends [42] Question: How much could you step on the gas on dispositions this year? - Management stated they are comfortable executing on a midpoint of dispositions while being mindful of tax gain capacity [48] Question: What factors will drive the contribution from other revenues in 2026? - Management expects mid-single-digit growth from initiatives like Wi-Fi and parking, with a focus on optimizing storage and pet rent [51] Question: What is your expectation for key coastal markets? - Management expects strong performance in markets like San Francisco and New York, while Boston is anticipated to be a decent performer [80]

Financial Data and Key Metrics Changes - For full year 2025, FFOA per share was $2.54, achieving the midpoint of previously provided guidance ranges, while fourth quarter FFOA per share was $0.64 [9] - Same-store revenue growth met guidance, while same-store expense and NOI growth results exceeded expectations [9][14] - The company reported a 1,000 basis points improvement in resident retention, resulting in approximately $35 million of higher annualized cash flow [5] Business Line Data and Key Metrics Changes - The acquisition of the Enclave at Potomac Club for $147 million is expected to outperform the market based on predictive analytics [10] - The company contributed four apartment communities to a joint venture, expanding it to approximately $850 million, which facilitated debt repayment and stock repurchase [10] Market Data and Key Metrics Changes - The company anticipates a less competitive supply environment, which should bolster growth profiles moving forward [6] - The average rent-to-income ratio for residents remains below the long-term average, indicating affordability for rent increases [12] - Supply completions have significantly slowed, with expectations for 2027 being 60% below 2025 levels [13] Company Strategy and Development Direction - The company emphasizes a culture of innovation and disciplined capital allocation, utilizing AI tools to enhance decision-making and drive cash flow growth [4][5] - Ongoing investments in customer experience and technology are expected to drive incremental NOI and market-level growth [7] - The company plans to be a net seller of assets in 2026, actively marketing several apartment communities for sale [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating momentum continuing into 2026, with expectations for blended lease rate growth between 1.5% and 2% [18] - The company is cautious about a muted job growth environment and regulatory risks affecting consumer confidence [11] - Management highlighted the importance of data-driven decisions in enhancing cash flow and shareholder value [25] Other Important Information - The company welcomed Ellen Goitia as a new board member, enhancing the board's expertise in accounting and corporate governance [7] - The company has a strong balance sheet with nearly $1 billion in liquidity at the end of 2025, reducing future refinancing risk [16] Q&A Session Summary Question: Can you talk about your blended rate growth expectation for the full year? - Management noted that they are off to a better start than expected, with a blended lease rate growth of 1% in January, which is 50-75 basis points better than originally thought [30] Question: What are your thoughts on occupancy and retention? - Management emphasized efficiency in the turn process and reducing vacant days, aiming for a turnover rate around 5% [35] Question: Can you provide details on regional performance? - Management indicated stronger acceleration in the Sunbelt region compared to coastal markets, with Dallas showing positive trends [39] Question: How do you plan to manage dispositions and share buybacks? - Management plans to execute on dispositions while being mindful of tax gain capacity, with a focus on maintaining a balance between selling assets and share repurchases [44] Question: What factors will drive other revenue growth in 2026? - Management expects contributions from Wi-Fi and parking initiatives, along with optimizing storage and pet rent, to drive mid-single-digit growth [48]

INVESTOR TELECONFERENCE PRESENTATION FOURTH QUARTER 2025 FEBRUARY 5, 2026 Avalon Ocean Avenue San Francisco, CA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, For the reasons described in the referenced forward-looking statements, our historical results may not be indicative of future results. Avalon Belltown Towers Seattle, WA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERF ...

Financial Data and Key Metrics Changes - The company reported Core FFO for Q4 2025 at $2.23 per diluted share, aligning with the midpoint of guidance, contributing to a full-year Core FFO of $8.74 per share [18] - Same-store NOI for Q4 was in line with guidance, with same-store revenues slightly unfavorable by one cent, offset by favorable expenses [18] - The net debt-to-EBITDA ratio was 4.3 times, with 87% of outstanding debt fixed at an average maturity of 6.4 years and an effective rate of 3.8% [20] Business Line Data and Key Metrics Changes - Average physical occupancy improved to 95.7%, a 10 basis point increase from Q4 2024 and Q3 2025 [12] - Renewal lease rates improved by 50 basis points, while new lease rates remained flat [12] - The company completed 1,227 interior unit upgrades in Q4, totaling 5,995 units for the year, achieving rent increases of $95 above non-upgraded units [15] Market Data and Key Metrics Changes - The company noted strong pricing power in mid-tier markets, particularly in Virginia and South Carolina, with Charleston, Greenville, Richmond, and the DC area showing strong occupancy [13] - Austin was identified as the weakest market in terms of pricing, still working through a significant inventory delivered over the past four years [14] - The company expects to see a job growth of approximately 340,000-350,000 jobs in its markets for 2026, supporting demand [79] Company Strategy and Development Direction - The company plans to expand its capital investments in technology initiatives by over 10% in 2026 to enhance resident experience and operational efficiency [7] - The development pipeline is currently valued at $932 million, with plans to start construction on 5-7 new projects in 2026 [9] - The company aims to leverage its strong balance sheet to invest in growth opportunities, particularly in a market with limited access to capital for others [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with stronger fundamentals, expecting a 110-160 basis point improvement in blended lease rates and an 85 basis point improvement in effective rent growth compared to 2025 [5] - The company anticipates that demand will remain solid, supported by stable job growth, immigration, and healthy wage gains [6] - Management acknowledged that while uncertainty remains in the broader economy, it appears lower than in 2025, with expectations for sustained GDP growth [5] Other Important Information - The company repurchased 207,000 shares at a weighted average price of $131.61, marking its first repurchase since 2001 [20] - Initial earnings guidance for 2026 projects Core FFO between $8.35 and $8.71 per share, with a midpoint of $8.53 [21] - The company expects same-store operating expenses to grow at a midpoint of 2.65% for the year [22] Q&A Session Summary Question: Can you run through the new renewal and blended outlook numbers again? - Management provided guidance of about 1%-1.5% for blended rates in 2026, with renewals expected to be in the 5.25% range [30] Question: Can you comment on the transaction market and your decision to focus on development? - Management noted that the transaction market remains aggressive for core assets, with a 50-75 basis point spread between core and value-add assets [34] Question: What gives you confidence in new lease growth despite macro challenges? - Management highlighted improving fundamentals and a significant decline in new deliveries, which should support stronger demand and pricing [51] Question: How do you expect turnover to impact your leasing strategy? - Management expects consistent turnover, with no significant increases anticipated, supporting renewal performance [58] Question: What is your outlook on job growth and its impact on demand? - Management projected job growth in their markets to be slightly up compared to last year, supporting positive demand metrics [79]

Core Insights - Mid-America Apartment Communities, Inc. (MAA) reported its operating results for the three and twelve months ended December 31, 2025, showing a decline in earnings per share and funds from operations compared to the previous year [1][2][35]. Financial Performance - For Q4 2025, diluted earnings per share were $0.48, down from $1.42 in Q4 2024. For the full year 2025, diluted earnings per share were $3.78, compared to $4.49 in 2024 [2][35]. - Funds from operations (FFO) per diluted share for Q4 2025 was $1.79, down from $2.21 in Q4 2024. For the full year 2025, FFO per diluted share was $8.32, compared to $8.77 in 2024 [2][35]. - Core FFO per diluted share remained stable at $2.23 for Q4 2025, but decreased from $8.74 in 2024 to $8.32 in 2025 [2][35]. Same Store Operating Results - Same Store revenues for Q4 2025 showed a slight decrease of 0.1% compared to Q4 2024, while net operating income (NOI) increased by 0.7% [4]. - The effective blended lease rate growth for Same Store properties was -1.7% in Q4 2025, showing a 40 basis point improvement from the previous year [6]. - Resident turnover in the Same Store Portfolio was historically low at 40.2%, with only 11.1% of move-outs attributed to buying single-family homes [6]. Development and Acquisition Activity - MAA completed the initial lease-up of MAA Vale in Raleigh, North Carolina, and began construction on a new multifamily apartment community in Phoenix, Arizona [6][12]. - In October 2025, MAA acquired land parcels in Kansas City and Phoenix for future development, and in January 2026, it acquired land in Northern Virginia for a 287-unit multifamily community [8][9]. Balance Sheet and Financing - As of December 31, 2025, MAA had $879.2 million in cash and available capacity under its unsecured revolving credit facility [13]. - MAA issued $400 million of unsecured senior notes with a coupon rate of 4.650% and amended its revolving credit facility to increase borrowing capacity to $1.5 billion [6][15][16]. 2026 Guidance - MAA provided initial guidance for 2026, expecting diluted earnings per share to range from $4.11 to $4.47, and Core FFO per diluted share to range from $8.35 to $8.71 [24][26]. - The Same Store Portfolio is projected to experience property revenue growth between -0.20% and 1.30% for 2026 [26].