Centerspace Announces Financial and Operating Results for the Year Ended December 31, 2024 and Provides 2025 Financial Outlook
Rhea-AI Summary
Centerspace (NYSE: CSR) reported financial results for 2024 and provided 2025 outlook. The company recorded a net loss of $1.27 per diluted share in 2024, compared to net income of $2.32 per share in 2023. Core FFO increased 2.1% to $4.88 per diluted share.
Same-store NOI grew 3.7% year-over-year, driven by 3.3% revenue growth. The company issued 1.6 million common shares raising $112.6 million at $71.66 per share, using proceeds to redeem Series C preferred shares worth $97.0 million. Centerspace acquired a 129-home Denver property for $54 million and sold two non-core properties for $19.0 million.
For 2025, Centerspace projects net loss per share between ($0.71) and ($0.45), and Core FFO per share between $4.86 and $5.10. The company declared a quarterly dividend of $0.77 per share, payable April 8, 2025.
Positive
- Core FFO increased 2.1% to $4.88 per diluted share in 2024
- Same-store NOI grew 3.7% year-over-year
- Same-store revenue increased 3.3%
- Weighted average occupancy improved to 95.2% in 2024 from 94.9% in 2023
- Strong liquidity position with $224.6 million available
Negative
- Net loss of $1.27 per diluted share in 2024 compared to net income of $2.32 in 2023
- New lease rate growth declined to 0.1% in 2024 from 1.8% in 2023
- Blended lease rate growth decreased to 1.9% in 2024 from 3.3% in 2023
- Retention rate dropped to 56.6% in 2024 from 59.0% in 2023
- Projected net loss for 2025 between ($0.71) and ($0.45) per share
Insights
The 2024 results and 2025 outlook for Centerspace present a complex picture of operational resilience amid challenging market conditions. The company's Core FFO growth of 2.1% to
A critical examination of operational metrics reveals both strengths and concerns. The improvement in weighted average occupancy to
The company's capital structure optimization through the redemption of
The strategic expansion in Denver through a
Looking ahead to 2025, the projected Core FFO range of
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
Per Share | 2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) per share - diluted | $ (0.31) | $ (0.65) | $ (1.27) | $ 2.32 | ||||
FFO - diluted(1) | $ 1.09 | $ 1.11 | $ 4.49 | $ 4.27 | ||||
Core FFO - diluted(1) | $ 1.21 | $ 1.22 | $ 4.88 | $ 4.78 | ||||
Year-Over-Year | Sequential Comparison | YTD Comparison | ||||
Same-Store Results(2) | 4Q24 vs 4Q23 | 4Q24 vs. 3Q24 | CY24 vs. CY23 | |||
Revenues | 3.1 % | 0.8 % | 3.3 % | |||
Expenses | 4.6 % | (2.7) % | 2.7 % | |||
Net Operating Income ("NOI")(1) | 2.1 % | 3.3 % | 3.7 % |
Three months ended | Twelve months ended | |||||||||
Same-Store Results(2) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||
Weighted Average Occupancy | 95.5 % | 95.3 % | 94.8 % | 95.2 % | 94.9 % | |||||
New Lease Rate Growth | (3.3) % | (1.2) % | (3.4) % | 0.1 % | 1.8 % | |||||
Renewal Lease Rate Growth | 3.2 % | 3.2 % | 3.6 % | 3.3 % | 4.6 % | |||||
Blended Lease Rate Growth(3) | 0.4 % | 1.5 % | 0.2 % | 1.9 % | 3.3 % | |||||
Retention Rate | 54.5 % | 58.9 % | 53.1 % | 56.6 % | 59.0 % | |||||
(1) | NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation |
(2) | Same-store results are updated for disposition activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental |
(3) | Blended lease rate growth is weighted by lease count. |
Highlights for the Year Ended December 31, 2024
- Net Loss was
$1.27 $2.32 - Core FFO(1) increased to
$4.88 2.1% per diluted share for the year ended December 31, 2024, compared to$4.78 - Same-store year-over-year NOI(1) grew
3.7% driven by same-store revenue growth of3.3% ; - Centerspace issued approximately 1.6 million common shares for net consideration of
$112.6 million $71.66 $53.62 $97.0 million 6.625% ; - Continued to grow our
Colorado portfolio through the acquisition of an apartment community inDenver, Colorado consisting of 129 homes for an aggregate purchase price of$54 million - Sold two non-core apartment communities for an aggregate sales price of
$19.0 million
Balance Sheet
At December 31, 2024, Centerspace had
Dividend Distributions
Centerspace's Board of Trustees announced a quarterly distribution of
2025 Financial Outlook
Centerspace is providing the following guidance for its 2025 performance.
2025 Financial Outlook | |||||
Range for 2025 | |||||
2024 Actual | Low | High | |||
Net income (loss) per Share - diluted | $ (1.27) | $ (0.71) | $ (0.45) | ||
FFO per Share - diluted | $ 4.49 | $ 4.73 | $ 4.97 | ||
Core FFO per Share - diluted | $ 4.88 | $ 4.86 | $ 5.10 | ||
Additional assumptions:
- Same-store capital expenditures of
$1,125 $1,175 - Value-add expenditures of
$16.0 million $18.0 million
FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, please refer to "2025 Financial Outlook" in the Supplemental Financial and Operating Data below.
Upcoming Events
Centerspace is attending the Citi Global Property CEO conference March 2-4.
Earnings Call
Live webcast and replay: https://www.ir.centerspacehomes.com | ||||
Live Conference Call | Conference Call Replay | |||
Wednesday, February 19, 2025 at 10:00 AM ET | Replay available until February 26, 2025 | |||
1-404-975-4839 | 1-929-458-6194 | |||
1-833-470-1428 | 1-866-813-9403 | |||
Canada Toll Free Number | 1-833-950-0062 | |||
Conference Number | 075110 | Conference Number | 939247 | |
Supplemental Information
Supplemental Operating and Financial Data for the year ended December 31, 2024, is available in the Investors section on Centerspace's website at https://www.centerspacehomes.com or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of December 31, 2024, Centerspace owned 71 apartment communities consisting of 13,012 homes located in
Forward-Looking Statements
Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company's current expectations and assumptions, and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission ("SEC"), including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in the Company's Annual Report on Form 10-K, in quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 952-401-6600
E-mail: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 952-401-6600
E-mail: kweber@centerspacehomes.com
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SOURCE Centerspace
FAQ
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