Centerspace Reports Third Quarter 2026 Financial & Operating Results

Apartment sales accompanied lower revenue and Core FFO, while credit-line repayment contributed to a $4.6 million decrease in interest expense.

Rhea-AI Summary

Centerspace (NYSE: CSR) reported third-quarter diluted net income of $7.28 per share, up from $3.19 a year earlier. Gains on sales of real estate and other investments rose to $150.3 million from $79.5 million. Revenue fell 16.6% to $59.5 million. Core funds from operations, a non-GAAP earnings measure, fell 6.7% to $1.11 per diluted share. Same-store revenue was flat; expenses rose 4.2%, reducing net operating income 2.7%.

Centerspace sold 13 communities for $288.8 million and fully repaid its credit-line balances. Quarter-end liquidity totaled $366.2 million. Its pending merger would exchange each eligible common share for 3.8 IRT shares, subject to agreement adjustments. Required shareholder approvals remain pending, with a special meeting scheduled for November 10, 2026. Citing the proposed merger, Centerspace stopped providing guidance and is not affirming past guidance.

10 points · 2 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointThird-quarter property sales generated $288.8 million from 13 apartment communities comprising 1,634 homes. 29% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.The signed IRT merger agreement provides 3.8 IRT shares per eligible Centerspace common share, subject to agreement adjustments.
• Moderate pointThird-quarter diluted net income rose to $7.28 per share from $3.19, primarily reflecting higher sale gains.
• Moderate pointCredit-line balances were fully repaid, contributing to interest expense falling $4.6 million year over year.
• Moderate pointNet debt to adjusted earnings before interest, taxes, depreciation and amortization reached 6.3 times following debt reduction.
• Moderate pointQuarter-end liquidity totaled $366.2 million: $250.0 million in available credit and $116.2 million in cash and equivalents.
• Moderate pointRenewal lease rate growth reached 3.4% versus 2.8% a year earlier; nine-month growth reached 3.3% versus 2.8%.
• Moderate pointBlended lease rate growth reached 1.7%, versus 0.5% a year earlier and 1.8% in the preceding quarter.

2 minor points

• Minor pointNine-month diluted net income increased to $6.46 per share from $2.12 in 2025.
• Minor pointNine-month blended lease rate growth increased to 1.3% from 1.2% in 2025.

Negative

• Major pointCenterspace will no longer provide guidance and is not affirming past guidance because of the proposed merger.
• Moderate pointThird-quarter revenue fell 16.6% to $59.5 million from $71.4 million, primarily reflecting apartment-community sales.
• Moderate pointThird-quarter Core funds from operations fell 6.7% to $1.11 per diluted share from $1.19.
• Moderate pointThird-quarter funds from operations declined to $0.83 per diluted share from $1.19 a year earlier.
• Moderate pointNine-month funds from operations declined to $3.10 per diluted share from $3.60.
• Moderate pointSame-store net operating income fell 2.7% year over year, 4.9% sequentially and 1.7% year to date.
• Moderate pointSame-store expenses increased 4.2% year over year, 8.1% sequentially and 2.7% year to date.
• Moderate pointNew lease rate growth was −1.9%, versus −3.7% a year earlier and −0.8% in the preceding quarter.
• Moderate pointNine-month resident retention declined to 60.2% from 62.3% in 2025.
• Moderate pointCredit-line borrowing capacity was reduced by $150.0 million to $250.0 million. 15% of market cap
• Moderate pointThe IRT merger remains subject to required shareholder approvals and other closing conditions.

6 minor points

• Minor pointNine-month Core funds from operations declined to $3.51 per diluted share from $3.68.
• Minor pointThird-quarter same-store expenses included a $200,000 one-time utility expense.
• Minor pointThird-quarter occupancy fell to 95.0% from 95.7% a year earlier and 96.0% in the preceding quarter.
• Minor pointNine-month occupancy declined to 95.5% from 95.8% in 2025.
• Minor pointNine-month new lease rate growth weakened to −1.7% from −1.2% in 2025.
• Minor pointThird-quarter resident retention fell to 61.5% from 61.9% a year earlier and 61.8% in the preceding quarter.

News Explained

Centerspace reports net debt to Adjusted EBITDA of 6.3x and says it repaid its line balances while reducing borrowing capacity by $150.0 million to $250.0 million.

Key Figures

Net income: $7.28 per diluted share Core FFO: $1.11 per diluted share, down 6.7% Revenue: $59.5 million, down 16.6% +5 more

Net income

$7.28 per diluted share

Q3 2026, compared with $3.19 in Q3 2025; higher gain on sale contributed

Core FFO

$1.11 per diluted share, down 6.7%

Q3 2026 versus $1.19 in Q3 2025

Revenue

$59.5 million, down 16.6%

Q3 2026 versus the same period of the prior year

Same-store NOI

Down 2.7%

Q3 2026 year over year

Property operating expenses

Up 4.2%

Same-store results, Q3 2026 year over year

Disposition proceeds

$288.8 million

Thirteen apartment communities comprising 1,634 homes sold during Q3

Total liquidity

$366.2 million

At the end of Q3 2026

Share exchange ratio

3.8 IRT shares per Centerspace share

Pending business combination; subject to agreement adjustments

Previous Earnings Reports

3 past events · Latest: Aug 03

Same Type 3 events

1. Aug 03

   Q2 earnings

   24h Move

   -1.6%

   Revenue declined, Core FFO edged lower, and the company reduced its financial outlook.

2. May 04

   Q1 earnings

   24h Move

   -4.8%

   Revenue and same-store NOI declined, and the company revised its financial outlook.

3. Nov 03

   Q3 earnings

   24h Move

   +2.3%

   Revenue and same-store NOI rose, alongside higher net income per diluted share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

funds from operations (ffo), net operating income (noi), non-gaap financial measures, adjusted ebitda

4 terms

funds from operations (ffo) financial

"Funds from Operations ("FFO")"

Funds from operations (FFO) is a performance measure commonly used for real estate companies that adjusts net income by adding back non‑cash items like building depreciation and removing one‑time gains or losses from property sales, to show recurring operating earnings. Investors use FFO to judge a property portfolio’s ability to generate cash for dividends and growth — think of it as measuring a car’s regular fuel efficiency rather than its accounting value or one‑off resale price.

net operating income (noi) financial

"Net Operating Income ("NOI")"

Net operating income (NOI) is the money a property or business generates from its regular operations after paying direct operating costs (like maintenance, utilities, and staff) but before paying financing costs, taxes, or accounting write‑downs. Investors use NOI to judge how well an asset produces cash from its core activity—think of it as the profit from running a store before paying the mortgage and taxes—so it helps compare properties and value income-producing investments.

non-gaap financial measures financial

"NOI, FFO, and Core FFO are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

adjusted ebitda financial

"driving net debt to Adjusted EBITDA of 6.3x"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MINNEAPOLIS, Nov. 2, 2026 /PRNewswire/ -- Centerspace (NYSE: CSR) (the "Company") announced today its financial and operating results for the three and nine months ended September 30, 2026. The tables below show Net Income, Funds from Operations ("FFO")¹, and Core FFO¹, all on a per diluted share basis, for the three and nine months ended September 30, 2026; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")¹ over comparable periods; and Same-Store Weighted Average Occupancy, Lease Rate Growth, and Resident Retention for each of the three months ended September 30, 2026, June 30, 2026, and September 30, 2025 and the nine months ended September 30, 2026 and 2025.

		Three Months Ended September 30,				Nine Months Ended September 30,
Per Common Share		2026		2025		2026		2025
Net income - diluted		$                7.28		$                3.19		$             6.46		$             2.12
FFO - diluted(1)		$                0.83		$                1.19		$             3.10		$             3.60
Core FFO - diluted(1)		$                1.11		$                1.19		$             3.51		$             3.68

 

		Year-Over-Year Comparison		Sequential Comparison		YTD Comparison
Same-Store Results(2)		Q3 2026 vs. Q3 2025		Q3 2026 vs. Q2 2026		2026 vs. 2025
Revenues		— %		— %		— %
Expenses		4.2 %		8.1 %		2.7 %
NOI(1)		(2.7) %		(4.9) %		(1.7) %

 

		Three months ended						Nine months ended
Same-Store Results(2)		September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Weighted Average Occupancy		95.0 %		96.0 %		95.7 %		95.5 %		95.8 %
Effective New Lease Rate Growth		(1.9) %		(0.8) %		(3.7) %		(1.7) %		(1.2) %
Effective Renewal Lease Rate Growth		3.4 %		3.4 %		2.8 %		3.3 %		2.8 %
Effective Blended Lease Rate Growth (3)		1.7 %		1.8 %		0.5 %		1.3 %		1.2 %
Retention Rate		61.5 %		61.8 %		61.9 %		60.2 %		62.3 %

 

(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 changes including acquisitions, dispositions, changes in held for sale classification, and repositioning activity. The current same-store results include 44 apartment communities. During the nine months ended September 30, 2026, we disposed of fourteen apartment communities. 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 Third Quarter

• Disposed of thirteen apartment communities consisting of 1,634 homes for an aggregate sales price of $288.8 million, bringing total aggregate sales price on dispositions during the year to $318.8 million;
• Fully repaid the line of credit balances and reduced borrowing capacity by $150.0 million to $250.0 million, contributing to a $4.6 million decrease in interest expense compared to the same period in the prior year and driving net debt to Adjusted EBITDA of 6.3x;
• Revenue decreased by $11.9 million or 16.6% to $59.5 million, compared to $71.4 million for the same period of the prior year, primarily due to the sale of 14 apartment communities during the nine months ended September 30, 2026 and 12 apartment communities in the prior year, offset by increased revenue from non-same-store communities;
• Same-store revenues were flat year over year, while property operating expenses increased by 4.2%, partially due to a large one-time utility expense of $200,000, resulting in a 2.7% decrease in same-store NOI compared to the same period of the prior year;
• Net income was $7.28 per diluted share, compared to net income of $3.19 per diluted share for the same period of the prior year primarily due to the higher gain on sale of real estate and other investments of $150.3 million compared to $79.5 million in the same period of the prior year; and
• Core FFO per diluted share decreased 6.7% to $1.11, compared to $1.19 for the same period of the prior year, primarily reflecting dispositions in 2026 and 2025, partially offset by higher NOI from non-same-store communities and lower casualty loss and lower interest expense.

Balance Sheet

At the end of the third quarter, Centerspace had $366.2 million of total liquidity on its balance sheet, consisting of $250.0 million available under its line of credit and cash and cash equivalents of $116.2 million.

Pending IRT Business Combination

On September 8, 2026, Centerspace entered into a merger agreement with Independence Realty Trust, Inc. ("IRT") and the other parties thereto. Under the agreement, as amended, each outstanding Centerspace common share, other than specified excluded shares, will be converted into the right to receive 3.8 shares of IRT common stock, subject to adjustments provided in the agreement, with cash paid in lieu of fractional shares. Completion remains subject to required shareholder approvals and other closing conditions. Centerspace has scheduled a special meeting of shareholders for November 10, 2026. Additional information is available in the definitive joint proxy statement/prospectus and the Company's SEC filings.

2026 Financial Outlook

In light of the proposed merger with IRT announced on September 8, 2026, Centerspace will no longer provide guidance nor is it affirming past guidance.

Upcoming Events

Centerspace to hold a special meeting of shareholders on November 10, 2026 at 9:30 a.m. Central Time.

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended September 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 September 30, 2026, Centerspace owned 47 apartment communities consisting of 10,456 homes located in Colorado, Minnesota, Montana, Nebraska, North 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 in the Company's 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" sections of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 and Annual Report on Form 10-K for the year ended December 31, 2025, and in its other filings with the SEC. In addition, such risks, uncertainties and other factors include, but are not limited to: the ability to complete the proposed business combination with Independence Realty Trust, Inc. ("IRT") on the terms or timeline currently contemplated, or at all; the ability to obtain required shareholder approvals and satisfy or obtain waivers of the other closing conditions; IRT's right to defer Closing under specified circumstances relating to lender consents; changes in the market price of IRT common stock and the resulting market value of the consideration payable to Centerspace shareholders; adjustments to the exchange ratio resulting from certain special distributions; substantial transaction costs and the potential obligation to pay a termination fee if the merger agreement is terminated under specified circumstances; restrictions on the Company's operations, financing and capital allocation activities and its ability to pursue alternative transactions during the pendency of the business combination; disruption of business relationships and uncertainty affecting employee recruitment and retention; diversion of management's attention from ongoing operations and other business opportunities; litigation or other proceedings relating to the business combination; adverse effects on the Company's business, financial condition, results of operations, share price and reputation if the business combination is delayed or not completed; the ability to realize the anticipated benefits of the business combination and manage transition and integration risks; Centerspace's ability to realize the anticipated benefits of its recently completed dispositions; and other risks described in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, its Annual Report on Form 10-K for the year ended December 31, 2025 and its other filings with the SEC. 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Centerspace's third-quarter 2026 earnings and Core FFO?

Centerspace reported $7.28 in diluted net income per share and $1.11 in Core funds from operations per diluted share. A year earlier, the figures were $3.19 and $1.19, respectively. Higher gains on sales primarily drove the net income increase, while dispositions primarily drove the Core FFO decline.

What will Centerspace shareholders receive in the proposed IRT merger?

Each eligible outstanding Centerspace common share would convert into the right to receive 3.8 IRT common shares, subject to adjustments under the merger agreement. Cash would be paid instead of fractional shares. Completion remains subject to required shareholder approvals and other closing conditions.