Centerspace Reports Second Quarter 2025 Financial & Operating Results and Updates 2025 Financial Outlook
Rhea-AI Summary
Centerspace (NYSE: CSR), an apartment community owner and operator, reported mixed Q2 2025 financial results. The company posted a net loss of $0.87 per diluted share, wider than the $0.19 loss in Q2 2024, while Core FFO increased 0.8% to $1.28 per share.
Key operational highlights include a 2.7% increase in same-store revenues and a 2.9% rise in same-store NOI. The company maintained strong occupancy at 96.1% with a 2.4% blended lease rate growth. Centerspace expanded its portfolio by acquiring Sugarmont in Salt Lake City for $149.0 million and Railway Flats in Loveland, CO for $132.2 million.
The company updated its 2025 outlook, projecting Core FFO per share of $4.88-$5.00 and same-store NOI growth of 2.50%-3.50%, reflecting improved operational expectations.
Positive
- Same-store NOI increased by 2.9% year-over-year
- Core FFO per share grew 0.8% to $1.28
- Strong occupancy rate of 96.1%, up from 95.5% year-over-year
- Strategic expansion with two major acquisitions totaling $281.2 million
- Improved 2025 same-store NOI guidance to 2.50-3.50% from previous 1.25-3.25%
- Substantial liquidity position of $206.3 million
Negative
- Net loss widened to $0.87 per diluted share from $0.19 year-over-year
- New lease rate growth declined to 2.1% from 3.2% year-over-year
- Blended lease rate growth decreased to 2.4% from 3.4% year-over-year
News Market Reaction
On the day this news was published, CSR declined 0.83%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
Per Common Share | 2025 | 2024 | 2025 | 2024 | ||||
Net loss - diluted | $ (0.87) | $ (0.19) | $ (1.09) | $ (0.56) | ||||
FFO - diluted(1) | $ 1.24 | $ 1.23 | $ 2.42 | $ 2.39 | ||||
Core FFO - diluted(1) | $ 1.28 | $ 1.27 | $ 2.50 | $ 2.49 | ||||
Year-Over-Year Comparison | Sequential Comparison | |||
Same-Store Results(2) | Q2 2025 vs. Q2 2024 | Q2 2025 vs. Q1 2025 | ||
Revenues | 2.7 % | 1.1 % | ||
Expenses | 2.4 % | (1.3) % | ||
Net Operating Income ("NOI")(1) | 2.9 % | 2.6 % |
Three months ended | Six months ended | |||||||||
Same-Store Results(2) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||
Weighted Average Occupancy | 96.1 % | 95.9 % | 95.5 % | 96.0 % | 95.1 % | |||||
New Lease Rate Growth | 2.1 % | (1.2) % | 3.2 % | 0.6 % | 1.9 % | |||||
Renewal Lease Rate Growth | 2.6 % | 3.4 % | 3.5 % | 2.8 % | 3.5 % | |||||
Blended Lease Rate Growth (3) | 2.4 % | 0.6 % | 3.4 % | 1.8 % | 2.7 % | |||||
Retention Rate | 60.2 % | 49.2 % | 59.1 % | 56.8 % | 58.5 % | |||||
(1) | NOI, 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, refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below. |
(2) | Same-store results are updated for annual composition change including acquisition, disposition, changes in held for sale classification, and repositioning activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial Operating Data within. |
(3) | Blended lease rate growth is weighted by lease count. |
Overview of the Second Quarter
- Acquired Sugarmont, the Company's first apartment community in
Salt Lake City, Utah , consisting of 341 homes for an aggregate purchase price of$149.0 million - Revenue for the second quarter of 2025 increased by
$3.5 million 5.4% to$68.5 million $65.0 million - Same-store revenues increased by
2.7% for the second quarter of 2025 compared to the second quarter of 2024, driving a2.9% increase in same-store NOI compared to the same period of the prior year; - Net loss was
$0.87 $0.19 - Core FFO per diluted share increased
0.8% to$1.28 $1.27
Balance Sheet
At the end of the second quarter, Centerspace had
Updated 2025 Financial Outlook
Centerspace updated its 2025 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2025 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
Previous Outlook for 2025 | Updated Outlook for 2025 | |||
Low | High | Low | High | |
Net loss per Share – diluted | ||||
Same-Store Revenue | 1.50 % | 3.50 % | 2.00 % | 3.00 % |
Same-Store Expenses | 2.00 % | 4.00 % | 1.00 % | 2.50 % |
Same-Store NOI | 1.25 % | 3.25 % | 2.50 % | 3.50 % |
FFO per Share – diluted | ||||
Core FFO per Share – diluted | ||||
Additional assumptions:
- Same-store recurring capital expenditures of
$1,150 $1,200 - Value-add expenditures of
$16.0 million $18.0 million - Proceeds from dispositions of
$210.0 million $230.0 million
Note: FFO, Core FFO. and NOI are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to "2025 Financial Outlook" in the Supplemental Financial and Operating Data within.
Subsequent Events
On July 29, 2025, Centerspace closed on the acquisition of Railway Flats a 420 home apartment community located in
Earnings Call
Live webcast and replay: https://ir.centerspacehomes.com | ||||
Live Conference Call | Conference Call Replay | |||
Tuesday, August 5, 2025, at 10:00 AM ET | Replay available until August 12, 2025 | |||
1-833-470-1428 | 1-866-813-9403 | |||
International | 1-404-975-4839 | International | 1-929-458-6194 | |
Canada Toll Free | 1-833-950-0062 | |||
Access Code | 547256 | Access Code | 134183 | |
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended June 30, 2025 included herein ("Supplemental Information"), 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 June 30, 2025, Centerspace owned 72 apartment communities consisting of 13,353 apartment homes located in Colorado,
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 for the year ended December 31, 2024, in its subsequent 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
Email: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 952-401-6600
Email: kweber@centerspacehomes.com
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SOURCE Centerspace
FAQ
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