Centerspace Reports Second Quarter 2026 Financial & Operating Results and Updates Financial Outlook Due to Disposition Activity
Rhea-AI Summary
Centerspace (NYSE: CSR) reported second quarter 2026 revenue of $65.8 million, down 4.0% from $68.5 million a year earlier, mainly due to prior-year asset sales. Net loss was $0.07 per diluted share versus a loss of $0.87, reflecting prior-year impairment charges. Q2 diluted Core FFO was $1.27, slightly below $1.28 in 2025, with same-store NOI up 0.3% year over year and 4.8% sequentially.
During Q2, Centerspace sold a 176-home Denver community for $30.0 million and repurchased 45,310 shares at an average price of $55.54. Subsequent to quarter-end, it disposed of seven additional communities for $139.8 million. Liquidity totaled $242.6 million. The company updated 2026 guidance, now targeting diluted FFO per share of $4.37–$4.50 and Core FFO of $4.58–$4.68, down from prior ranges of $4.65–$4.92 and $4.81–$5.05, respectively, incorporating a deleveraging-focused disposition program with expected gross proceeds of $315–$320 million and potential special distributions of $50–$60 million.
Positive
- Net loss per share improved to ($0.07) from ($0.87) year over year
- Same-store NOI grew 0.3% year over year and 4.8% sequentially in Q2 2026
- Completed Q2 and July property sales totaling at least $169.8 million in proceeds
- Updated 2026 plan targets disposition proceeds of $315–$320 million for deleveraging
- Total liquidity at quarter-end was $242.6 million, including $234.0 million of credit capacity
- Company is evaluating potential 2026 special distributions of $50–$60 million
Negative
- Q2 2026 revenue declined 4.0% to $65.8 million versus $68.5 million
- Q2 diluted FFO per share fell to $1.20 from $1.24 a year earlier
- Q2 diluted Core FFO per share edged down 0.8% to $1.27
- Updated 2026 FFO guidance cut to $4.37–$4.50 from $4.65–$4.92
- Updated 2026 Core FFO guidance reduced to $4.58–$4.68 from $4.81–$5.05
- 2026 same-store NOI outlook now between (1.0%) and 0.0% growth
News Explained
On
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 04 | Q1 earnings report | Negative | -4.8% | Revenue and same-store NOI declined while 2026 guidance was revised. |
| Feb 17 | Annual earnings report | Positive | +1.0% | Net income, Core FFO, operating income, and same-store NOI improved. |
| Nov 03 | Q3 earnings report | Positive | +2.3% | Revenue, same-store NOI, net income, and operating expectations increased. |
| Aug 04 | Q2 earnings report | Neutral | -0.8% | Operating growth and Core FFO improved despite a wider net loss. |
| May 01 | Q1 earnings report | Neutral | +2.1% | Revenue, same-store NOI, occupancy, and liquidity improved while Core FFO declined. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions were aligned with directional event assessments in 3 of 5 cases; the tag-specific average move was -0.03%.
Key Terms
funds from operations (ffo) financial
core ffo financial
net operating income (noi) financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
Per Common Share | 2026 | 2025 | 2026 | 2025 | ||||
Net loss - diluted | $ (0.07) | $ (0.87) | $ (0.83) | $ (1.09) | ||||
FFO - diluted(1) | $ 1.20 | $ 1.24 | $ 2.27 | $ 2.42 | ||||
Core FFO - diluted(1) | $ 1.27 | $ 1.28 | $ 2.39 | $ 2.50 | ||||
Year-Over-Year Comparison | Sequential Comparison | YTD Comparison | ||||
Same-Store Results(2) | Q2 2026 vs. Q2 2025 | Q2 2026 vs. Q1 2026 | 2026 vs. 2025 | |||
Revenues | 0.1 % | 1.1 % | — % | |||
Expenses | (0.1) % | (4.4) % | 2.0 % | |||
NOI(1) | 0.3 % | 4.8 % | (1.3) % | |||
Three months ended | Six months ended | |||||||||
Same-Store Results(2) | June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||
Weighted Average Occupancy | 96.0 % | 95.4 % | 95.9 % | 95.7 % | 95.9 % | |||||
Effective New Lease Rate Growth | (0.6) % | (2.5) % | 1.5 % | (1.4) % | 0.2 % | |||||
Effective Renewal Lease Rate Growth | 3.4 % | 2.8 % | 2.6 % | 3.2 % | 2.8 % | |||||
Effective Blended Lease Rate Growth (3) | 1.8 % | — % | 2.2 % | 1.2 % | 1.6 % | |||||
Retention Rate | 61.3 % | 54.0 % | 62.2 % | 58.9 % | 60.0 % | |||||
(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. The current same-store results include 44 apartment communities. During the six months ended June 30, 2026, we reclassified 13 apartment communities from same-store to held for sale and disposed of one apartment community. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental Financial and Operating Data within. | |
(3) | Effective blended lease rate growth is weighted by lease count. |
Overview of the Second Quarter
- Disposed of an apartment community consisting of 176 homes in
Denver, Colorado for an aggregate sales price of$30.0 million - Revenue decreased by
$2.8 million 4.0% to$65.8 million $68.5 million - Same-store revenues and expenses remained relatively unchanged with a
0.3% increase in same-store NOI compared to the same period of the prior year; - Net loss was
$0.07 $0.87 - Core FFO per diluted share decreased
0.8% to$1.27 $1.28 - Repurchased 45,310 common shares for an average of
$55.54
Balance Sheet
At the end of the second quarter, Centerspace had
Subsequent Events
On July 9, 2026, Centerspace completed the disposition of five apartment communities, consisting of 474 homes, located in
On July 14, 2026, Centerspace completed the disposition of two apartment communities, consisting of 312 homes, located in
The Company expects to use the proceeds from these dispositions to paydown its line of credit and for general working capital purposes.
Updated 2026 Financial Outlook
Centerspace updated its 2026 financial outlook. The updated outlook includes the impact of expected dispositions and the deleveraging plan. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2026 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
Updated Outlook for 2026(1) | |||
Low | High | ||
Net income per Share – diluted | |||
Same-Store Growth | |||
Revenue | 0.00 % | 1.00 % | |
Expenses | 1.50 % | 2.50 % | |
NOI | (1.00) % | 0.00 % | |
FFO per Share – diluted | |||
Core FFO per Share – diluted | |||
(1) | Updated same-store outlook excludes 13 apartment communities designated as held for sale as of June 30, 2026 and one community disposed during the three months ended June 30, 2026. |
Additional assumptions:
- Same-store recurring capital expenditures of
$1,250 $1,350 - Value-add expenditures of
$3.5 million $6.0 million - Gross proceeds from dispositions of
$315.0 million $320.0 million - Potential special distributions to common shareholders and operating partnership unitholders of
$50.0 million $60.0 million
Previous Outlook for 2026(1) | |||
Low | High | ||
FFO per Share – diluted | |||
Core FFO per Share – diluted | |||
(1) | Previous same-store information is not comparable due to dispositions and apartment communities designated as held for sale and accordingly is not included. |
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 "2026 Financial Outlook" in the Supplemental Financial and Operating Data within.
Earnings Call
Management will host a conference call to discuss those results on Tuesday, August 4, 2026, at 10:00 a.m. Eastern Time.
Interested parties may access the conference call via the following:
Live Webcast: https://events.q4inc.com/attendee/119929565
Operator Assisted Dial-In: 1-833-461-5787
Meeting ID: 119929565
Replay Details: Following the conclusion of the earnings call, a replay of the webcast will be hosted at ir.centerspacehomes.com and at https://events.q4inc.com/attendee/119929565 for one year.
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended June 30, 2026 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, 2026, Centerspace owned 60 apartment communities consisting of 12,090 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a Top Workplace in 2026 by USA Today and for the seventh consecutive year in 2026 by the Minnesota Star Tribune. For more information, please visit www.centerspacehomes.com.
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, 2025, in its subsequent quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. In addition, such risks, uncertainties, and other factors include, but are not limited to, the ability of the Company to complete its proposed dispositions on a timely basis, or at all, risks that the Company's completed or proposed dispositions disrupt current plans and operations; the anticipated costs related to the Company's recently completed and proposed dispositions; the ability of the Company to realize the anticipated benefits of its recently completed and proposed dispositions and the intended use of proceeds therefrom, as well as the Company's strategic review. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Contact Information
Investor Relations
Justin Ziegler
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