Centerspace Reports Third Quarter 2025 Financial & Operating Results and Updates 2025 Financial Outlook
Rhea-AI Summary
Centerspace (NYSE: CSR) reported Q3 2025 results and updated 2025 outlook on November 3, 2025. Revenue rose 9.8% to $71.4M and same-store revenues increased 2.4%, driving same-store NOI +4.5% year-over-year. Net income was $3.19 per diluted share versus a loss of $(0.40) a year earlier. Q3 FFO diluted was $1.19; Core FFO diluted was $1.19. The company acquired Railway Flats (420 homes) for $132.2M (including $76.5M mortgage assumption), sold five communities for $124.0M, repurchased 62,973 shares for $3.5M, and ended Q3 with $200.4M liquidity. Management narrowed and lowered full-year net income per share to $1.97–$2.19.
Positive
- Revenue +9.8% to $71.4M in Q3 2025
- Same-store NOI +4.5% year-over-year
- Acquired 420-home Railway Flats for $132.2M
- Ended Q3 with $200.4M total liquidity
- Repurchased 62,973 shares for $3.5M
Negative
- 2025 net income guidance lowered to $1.97–$2.19 per share
- Sequential Q3 NOI declined (Q3 vs Q2) by 1.8%
- New lease rate growth negative at (1.7)% in Q3 2025
News Market Reaction 1 Alert
On the day this news was published, CSR gained 2.32%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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Per Common Share |
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2025 |
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2024 |
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2025 |
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2024 |
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Net income (loss) - diluted |
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$ 3.19 |
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$ (0.40) |
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$ 2.12 |
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$ (0.96) |
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FFO - diluted(1) |
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$ 1.19 |
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$ 1.01 |
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$ 3.60 |
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$ 3.40 |
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Core FFO - diluted(1) |
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$ 1.19 |
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$ 1.18 |
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$ 3.68 |
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$ 3.68 |
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Year-Over-Year Comparison |
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Sequential Comparison |
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YTD Comparison |
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Same-Store Results(2) |
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Q3 2025 vs. Q3 2024 |
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Q3 2025 vs. Q2 2025 |
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2025 vs. 2024 |
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Revenues |
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2.4 % |
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— % |
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2.8 % |
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Expenses |
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(0.8) % |
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3.0 % |
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2.6 % |
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NOI(1) |
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4.5 % |
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(1.8) % |
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3.0 % |
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Three months ended |
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Nine months ended |
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Same-Store Results(2) |
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September 30, |
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June 30, |
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September 30, |
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September 30, |
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September 30, |
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Weighted Average Occupancy |
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95.8 % |
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96.1 % |
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95.6 % |
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95.9 % |
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95.3 % |
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New Lease Rate Growth |
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(1.7) % |
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2.1 % |
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(1.3) % |
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(0.3) % |
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0.8 % |
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Renewal Lease Rate Growth |
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2.9 % |
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2.6 % |
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3.0 % |
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2.9 % |
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3.2 % |
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Blended Lease Rate Growth (3) |
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1.3 % |
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2.4 % |
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1.3 % |
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1.6 % |
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2.1 % |
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Retention Rate |
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59.9 % |
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60.2 % |
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61.3 % |
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58.6 % |
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61.1 % |
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(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. |
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(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. |
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(3) |
Blended lease rate growth is weighted by lease count. |
Overview of the Third Quarter
- Acquired Railway Flats in
Loveland, Colorado consisting of 420 homes for an aggregate purchase price of$132.2 million $76.5 million - Sold five apartment communities in
St. Cloud, Minnesota for an aggregate sale price of$124.0 million - Revenue increased by
$6.4 million 9.8% to$71.4 million $65.0 million - Same-store revenues increased by
2.4% , driving a4.5% increase in same-store NOI compared to the same period of the prior year; - Net income was
$3.19 $0.40 - Core FFO per diluted share increased
0.8% to$1.19 $1.18 - Repurchased 62,973 common shares for total consideration of
$3.5 million $54.86
Balance Sheet
At the end of the third 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 September 30, 2025 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
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Previous Outlook for 2025 |
Updated Outlook for 2025 |
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Low |
High |
Low |
High |
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Net income per Share – diluted |
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Same-Store Revenue |
2.00 % |
3.00 % |
2.00 % |
2.50 % |
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Same-Store Expenses |
1.00 % |
2.50 % |
0.50 % |
1.00 % |
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Same-Store NOI |
2.50 % |
3.50 % |
3.00 % |
3.50 % |
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FFO per Share – diluted |
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Core FFO per Share – diluted |
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Additional assumptions:
- Same-store recurring capital expenditures of
$1,150 $1,200 - Value-add expenditures of
$14.0 million $16.0 million - Proceeds from dispositions of
$210.0 million $215.0 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.
Upcoming Events
Centerspace is scheduled to participate in the UBS Conference, December 1-4, 2025.
Earnings Call
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Live webcast and replay: https://ir.centerspacehomes.com |
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Live Conference Call |
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Conference Call Replay |
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Tuesday, November 4, 2025, at 10:00 AM ET |
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Replay available until November 11, 2025 |
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1-833-470-1428 |
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1-866-813-9403 |
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1-646-844-6383 |
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1-929-458-6194 |
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Canada Toll Free |
1-833-950-0062 |
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Access Code |
885094 |
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Access Code |
272530 |
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended September 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 September 30, 2025, Centerspace owned 68 apartment communities consisting of 12,941 apartment homes located in Colorad
o,
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
What were Centerspace (CSR) Q3 2025 revenues and year-over-year change?
How did Centerspace (CSR) report net income per share for Q3 2025?
What acquisition did Centerspace (CSR) complete in Q3 2025 and for how much?
How did Centerspace (CSR) update its 2025 net income outlook on November 3, 2025?
What was Centerspace (CSR) same-store NOI and revenue performance in Q3 2025?
How much liquidity did Centerspace (CSR) report at the end of Q3 2025?
