CENTERSPACE COMPLETES SALE OF FIVE ST. CLOUD COMMUNITIES FOR $124.0 MILLION

Rhea-AI Summary

Centerspace (NYSE: CSR) has completed the sale of five communities in St. Cloud, MN for $124.0 million, comprising 832 homes. This transaction marks CSR's complete exit from the St. Cloud market, while a planned disposition of seven Minneapolis communities is expected to close in Q4 2025.

The sale is part of a broader portfolio repositioning strategy announced in June 2025. The proceeds will be used for debt reduction and general corporate purposes. CEO Anne Olson indicated that following recent acquisitions in Salt Lake City and Fort Collins, the company is considering various capital allocation options, including deleveraging, value-add investments, share buybacks, and dividends.

Positive

• Strategic sale of St. Cloud portfolio for $124.0 million, demonstrating portfolio value
• Portfolio diversification through recent acquisitions in Salt Lake City and Fort Collins
• Multiple capital allocation options available including deleveraging and shareholder returns
• Additional seven Minneapolis properties disposition on track for Q4 2025

Negative

• Complete exit from St. Cloud market reduces geographic presence
• Current market conditions and share price potentially affecting future investment decisions

MINNEAPOLIS, Sept. 23, 2025 /PRNewswire/ -- Centerspace (NYSE: CSR) announced it has completed the disposition of five communities comprising 832 homes in the St. Cloud, MN, market for an aggregate sale price of $124.0 million. This transaction marks the Company's exit from the St. Cloud market, while the Company's planned disposition of seven communities in Minneapolis remains on track with an expected closing in Q4 2025.

These sales are part of the larger portfolio repositioning that the Company outlined in June 2025. Proceeds will be used to decrease leverage and for general corporate purposes. 

"Combined with our recent acquisitions in Salt Lake City and Fort Collins, this transaction activity improves the quality and diversification of our communities while demonstrating the compelling value our portfolio offers," said Anne Olson, Centerspace CEO. 

"As we evaluate future disposition activity, management and our board will be prudently considering capital allocation in light of the current market and relative share price. Specifically, our options are not limited to investments that continue our trajectory of improved portfolio quality and growth but also may include accelerated deleveraging, value-add investments within our current portfolio, share buy backs, and dividends to investors, among other things," Ms. Olson continued. "Our goal is to create value for our shareholders and to provide information and demonstrate action so that the value of Centerspace is better recognized."

CBRE acted as broker for the St. Cloud portfolio sale. 

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, Centerspace owns 68 apartment communities consisting of 12,941 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a top workplace for the sixth consecutive year in 2025 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.  

If you would like more information about this topic, please contact Josh Klaetsch, Investor Relations, at (952) 401-6600 or IR@centerspacehomes.com.

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SOURCE Centerspace

FAQ

How much did Centerspace (NYSE: CSR) sell its St. Cloud communities for?

Centerspace sold five St. Cloud communities for $124.0 million, comprising 832 homes.

What will Centerspace do with the proceeds from the St. Cloud sale?

The proceeds will be used to decrease leverage (reduce debt) and for general corporate purposes.

What are Centerspace's plans for its Minneapolis properties?

Centerspace plans to sell seven communities in Minneapolis, with the transaction expected to close in Q4 2025.

What capital allocation options is Centerspace considering after the sale?

Centerspace is considering deleveraging, value-add investments in current portfolio, share buybacks, dividends, and other options to create shareholder value.

How many properties does Centerspace own after the St. Cloud sale?

Following the sale, Centerspace owns 68 apartment communities consisting of 12,941 homes across Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah.