Centerspace Reports Third Quarter 2024 Financial Results and Raises Mid-Point for 2024 Core FFO per Share Guidance
Rhea-AI Summary
Centerspace (NYSE: CSR) reported its Q3 2024 financial results, showing a net loss of $0.40 per diluted share compared to net income of $0.41 in Q3 2023. Core FFO per diluted share increased 3.4% to $3.68 for the nine months ended September 30, 2024. Same-store revenues grew 3.0% year-over-year, driving a 2.8% increase in same-store NOI. The company raised its 2024 Core FFO guidance to $4.82-$4.90 per share. During Q3, Centerspace issued 1.5 million common shares for $105.1 million and used proceeds to redeem Series C preferred shares worth $97.0 million.
Positive
- Core FFO per share increased 3.4% to $3.68 for nine months ended September 30, 2024
- Same-store revenues increased 3.0% YoY in Q3 2024
- Same-store NOI grew 2.8% YoY in Q3 2024
- Raised 2024 Core FFO guidance
- Strong liquidity position with $235.5 million available
Negative
- Net loss of $0.40 per share in Q3 2024 vs. net income of $0.41 in Q3 2023
- New lease rate growth declined to -1.2% in Q3 2024
- Sequential NOI decreased 3.7% in Q3 2024 vs. Q2 2024
- Blended lease rate growth decreased to 1.5% from 3.6% in previous quarter
News Market Reaction 1 Alert
On the day this news was published, CSR declined 2.59%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
Per Common Share | 2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) - diluted | $ (0.40) | $ 0.41 | $ (0.96) | $ 2.96 | ||||
FFO - diluted(1) | $ 1.01 | $ 1.15 | $ 3.40 | $ 3.15 | ||||
Core FFO - diluted(1) | $ 1.18 | $ 1.20 | $ 3.68 | $ 3.56 | ||||
Year-Over-Year Comparison | Sequential Comparison | YTD Comparison | ||||
Same-Store Results(2) | Q3 2024 vs. Q3 2023 | Q3 2024 vs. Q2 2024 | 2024 vs. 2023 | |||
Revenues | 3.0 % | — % | 3.3 % | |||
Expenses | 3.2 % | 5.8 % | 2.0 % | |||
NOI(1) | 2.8 % | (3.7) % | 4.2 % |
Three months ended | Nine months ended | |||||||||
Same-Store Results(2) | September 30, | June 30, 2024 | September 30, | September 30, | September 30, | |||||
Weighted Average Occupancy | 95.3 % | 95.3 % | 94.6 % | 95.1 % | 94.9 % | |||||
New Lease Rate Growth | (1.2) % | 3.6 % | 2.0 % | 0.8 % | 3.1 % | |||||
Renewal Lease Rate Growth | 3.2 % | 3.6 % | 4.7 % | 3.3 % | 4.9 % | |||||
Blended Lease Rate Growth (3) | 1.5 % | 3.6 % | 3.6 % | 2.2 % | 4.0 % | |||||
(1) | NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a |
(2) | Same-store results are updated for disposition activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in |
(3) | Blended lease rate growth is weighted by lease count. |
Highlights for the Third Quarter and Year-to-Date
- Centerspace raised the mid-point and narrowed the 2024 financial outlook ranges for net loss per diluted share and Core FFO per diluted share. Refer to page S-17 in the Supplemental and Financial Operating Data within for additional detail;
- Centerspace issued approximately 1.5 million common shares for net consideration of
$105.1 million $71.12 $97.0 million 6.625% ; - Net loss was
$0.40 $0.41 - Core FFO per diluted share increased
3.4% to$3.68 $3.56 - Same-store revenues increased by
3.0% for the third quarter of 2024 compared to the third quarter of 2023, driving a2.8% increase in same-store NOI compared to the same period of the prior year.
Balance Sheet
At the end of the third quarter, Centerspace had
Updated 2024 Financial Outlook
Centerspace updated its 2024 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended September 30, 2024 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 2024 | Updated Outlook for 2024 | |||
Low | High | Low | High | |
Net income per Share – diluted | ||||
Same-Store Revenue | 3.25 % | 4.25 % | 3.00 % | 3.50 % |
Same-Store Expenses | 3.50 % | 4.75 % | 2.50 % | 3.25 % |
Same-Store NOI | 3.00 % | 4.00 % | 3.25 % | 3.75 % |
FFO per Share – diluted | ||||
Core FFO per Share – diluted | ||||
Additional assumptions:
- Same-store recurring capital expenditures of
$1,100 $1,150 - Value-add expenditures of
$23.0 million $25.0 million
Note: FFO and Core FFO 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 "2024 Financial Outlook" in the Supplemental Financial and Operating Data within.
Subsequent Events
On October 1, 2024, Centerspace closed on the acquisition of The Lydian in
Upcoming Events
Centerspace is scheduled to participate in Nareit's REITworld conference in
Earnings Call
Live webcast and replay: https://ir.centerspacehomes.com | ||||
Live Conference Call | Conference Call Replay | |||
Tuesday, October 29, 2024, at 10:00 AM ET | Replay available until November 12, 2024 | |||
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 | 050510 | Access Code | 581939 | |
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended September 30, 2024 included herein ("Supplemental Information"), is available in the Investors section on Centerspace's website at 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 September 30, 2024, Centerspace owned interests in 70 apartment communities consisting of 12,883 apartment homes located in
Forward-Looking Statements
Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on the company's current expectations and assumptions, and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, uncertainties, and other factors that might cause such differences include, but are not limited to those risks and uncertainties detailed from time to time in Centerspace's filings with the Securities and Exchange Commission, including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in its Annual Report on Form 10-K for the year ended December 31, 2023, in its subsequent quarterly reports on Form 10-Q, and in other public reports. 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
What was Centerspace's (CSR) net income per share in Q3 2024?
What is Centerspace's (CSR) updated Core FFO guidance for 2024?
How much did Centerspace's (CSR) same-store revenues grow in Q3 2024?
