Profit swing and portfolio moves at Centerspace (NYSE: CSR) in 2025

Q: What were Centerspace’s 2025 FFO and Core FFO results?

In 2025, Centerspace generated FFO per diluted share of $4.74 and Core FFO per diluted share of $4.93 , up from $4.49 and $4.88 respectively in 2024. Core FFO growth reflected stronger NOI, partly offset by higher interest and operating expenses, indicating slightly improved cash earnings power.

Q: What portfolio acquisitions and sales did Centerspace (CSR) complete in 2025?

Centerspace acquired two apartment communities, Sugarmont and Railway Flats , for an aggregate $281.2 million , including $76.5 million of assumed mortgage debt. It also sold twelve non-core communities in Minnesota and one corporate office building for $215.5 million , sharpening its multifamily focus.

Q: What is Centerspace’s balance sheet and liquidity position at December 31, 2025?

At year-end 2025, Centerspace reported $1.0539 billion of total debt (before premiums/discounts), with a weighted average interest rate of 3.64%. Liquidity totaled $267.9 million , including $255.1 million available on revolving credit lines and $12.8 million in cash and cash equivalents.

Q: What dividend is Centerspace paying and what is the payout ratio?

Centerspace’s board declared a quarterly distribution of $0.77 per share/unit , or $3.08 annualized , for common shareholders and unitholders. For 2025, the payout ratio was 62.5% of Core FFO per diluted share and unit, indicating distributions covered by recurring cash earnings.

Q: What guidance did Centerspace (CSR) provide for 2026 FFO and Core FFO?

For 2026, Centerspace guides FFO per diluted share to a range of $4.61–$4.89 and Core FFO per diluted share to $4.81–$5.05 . The outlook assumes modest same-store NOI growth, same-store revenue growth of up to 1.75%, and same-store recurring capital spending of $1,250–$1,350 per home.

Q: What is Centerspace’s strategic review process and its purpose?

In November, Centerspace’s board began a strategic review of alternatives with a stated focus on maximizing shareholder value. The process is ongoing with no deadline or definitive timetable, and there is explicitly no assurance it will result in a transaction or other particular strategic outcome.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Centerspace reported a return to profitability in 2025 and issued its 2026 outlook. Net income was $22.96 million, or $1.02 per diluted share, compared with a net loss of $14.19 million, or $(1.27) per share, in 2024. Core FFO per diluted share inched up to $4.93 from $4.88, while total NOI rose 6.1% to $167.4 million, driven by a 3.5% increase in same-store NOI on 2.4% revenue growth and tightly controlled expenses.

The company reshaped its portfolio, acquiring two communities for $281.2 million (including $76.5 million of assumed mortgage debt) and selling twelve non-core communities plus one office building for $215.5 million. At December 31, 2025, liquidity totaled $267.9 million, including $255.1 million of undrawn credit capacity and $12.8 million of cash. Centerspace’s board maintained an annualized common distribution of $3.08 per share/unit and has an ongoing strategic review of alternatives with no set timetable.

For 2026, management guides to diluted net income per share between $(0.49) and $(0.19), FFO per diluted share of $4.61–$4.89, and Core FFO per diluted share of $4.81–$5.05, implying relatively stable cash earnings alongside modest same-store NOI growth expectations.

Insights

Centerspace moved back to profit, modestly grew cash earnings, and tightened its balance sheet while reshaping the portfolio.

Centerspace produced 2025 net income of $22.964M after a prior-year loss, with diluted EPS at $1.02. Core FFO per diluted share rose slightly to $4.93, and total NOI increased 6.1% to $167.389M, supported by same-store NOI growth of 3.5%.

Portfolio actions were significant: acquisitions totaled $281.2M, including $76.5M of assumed mortgage debt, while dispositions generated $215.5M. Year-end liquidity of $267.9M and total debt of $1.0539B left net debt at about 7.5x adjusted EBITDA, indicating moderate leverage but with ample credit capacity.

The 2026 outlook points to steady cash earnings, with Core FFO per diluted share guided to $4.81–$5.05 and same-store NOI targeted between a 0.5% decline and 2.0% growth. An ongoing strategic review, explicitly aimed at maximizing shareholder value and without a fixed deadline, adds an additional potential catalyst, though outcomes are uncertain based on the provided information.

02/17/2026 - 04:15 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 17, 2026

CENTERSPACE

(Exact name of Registrant as specified in its charter)

North Dakota

001-35624

45-0311232

(State or Other Jurisdiction
of Incorporation or Organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

1324 20th Avenue SW, Post Office Box 1988, Minot, ND 58702-1988

(Address of principal executive offices) (Zip code)

(701) 837-4738

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares of Beneficial Interest, no par value	CSR	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

Centerspace (the "Company") issued an earnings release on February 17, 2026, announcing certain financial and operational results for the year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 and incorporated herein by reference.

The information in this Item 2.02 and Item 9.01, including the press release furnished as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any Company filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d)Exhibits



Exhibit
Number			Description

99.1			Earnings Release and Supplemental Operating and Financial Data, dated February 17, 2026.
104			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL Document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	Centerspace

	By	/s/ Anne Olson
		Anne Olson
Date: February 17, 2026		President and Chief Executive Officer

Exhibit 99.1

Earnings Release

Centerspace Announces Financial and Operating Results for the Year Ended

December 31, 2025 and Provides 2026 Financial Outlook

MINNEAPOLIS, MN, February 17, 2026 – Centerspace (NYSE: CSR) (the “Company”) announced today its financial and operating results for the year ended December 31, 2025. The tables below show Net Income (Loss), Funds from Operations (“FFO”)1, and Core FFO1, all on a per diluted share basis, for the year ended December 31, 2025; 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 December 31, 2025, September 30, 2025, and December 31, 2024, and the twelve months ended December 31, 2025 and 2024.


	Three Months Ended December 31,				Twelve Months Ended December 31,
Per Common Share	2025		2024		2025		2024
Net income (loss) per share - diluted	$	(1.10)	$	(0.31)	$	1.02	$	(1.27)
FFO - diluted(1)	$	1.14	$	1.09	$	4.74	$	4.49
Core FFO - diluted(1)	$	1.25	$	1.21	$	4.93	$	4.88


	Year-Over-Year Comparison		Sequential Comparison		YTD Comparison
Same-Store Results(2)	Q4 2025 vs Q4 2024		Q4 2025 vs Q3 2025		CY 2025 vs. CY 2024
Revenues	1.0	%	(0.8)	%	2.4	%
Expenses	(5.1)	%	(7.4)	%	0.6	%
NOI(1)	4.8	%	3.3	%	3.5	%


	Three months ended						Twelve months ended
Same-Store Results(2)	December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Weighted Average Occupancy	95.3	%	95.8	%	95.7	%	95.7	%	95.4	%
New Lease Rate Growth	(4.8)	%	(1.7)	%	(3.7)	%	(1.2)	%	—	%
Renewal Lease Rate Growth	3.9	%	2.9	%	3.0	%	3.1	%	3.2	%
Blended Lease Rate Growth(3)	0.1	%	1.3	%	0.2	%	1.3	%	1.8	%
Retention Rate	55.2	%	59.9	%	57.1	%	58.2	%	61.8	%

(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.

Highlights for the Year Ended December 31, 2025

•Net Income was $1.02 per diluted share for the year ended December 31, 2025, compared to Net Loss of $1.27 per diluted share for the year ended December 31, 2024;

•Core FFO(1) increased to $4.93 per diluted share for the year ended December 31, 2025, compared to $4.88 per diluted share for the year ended December 31, 2024;

•Operating income increased to $64.5 million for the year ended December 31, 2025, compared to $20.5 million for the year ended December 31, 2024;


			1

•Same-store year-over-year NOI(1) grew 3.5% driven by same-store revenue growth of 2.4%;

•The Company acquired two apartment communities during the year, Sugarmont in Salt Lake City, Utah, and Railway Flats in Loveland, Colorado, for an aggregate purchase price of $281.2 million, which includes the assumption of $76.5 million in mortgage debt;

•The Company repurchased 62,973 shares at an average price of $54.86 per share, including commissions; and

•The Company sold twelve non-core apartment communities throughout Minnesota and one corporate office building for an aggregate sales price of $215.5 million.

Balance Sheet

At December 31, 2025, Centerspace had $267.9 million of total liquidity on its balance sheet, including $255.1 million available on its lines of credit and $12.8 million in cash and cash equivalents.

Dividend Distributions

Centerspace’s Board of Trustees announced a quarterly distribution of $0.77 per share/unit, payable on April 14, 2026, to common shareholders and unitholders of record at the close of business on March 30, 2026.

2026 Financial Outlook

Centerspace is providing the following guidance for its 2026 performance.


2026 Financial Outlook
			Range for 2026
	2025 Actual		Low		High
Net income (loss) per Share - diluted	$	1.02	$	(0.49)	$	(0.19)
FFO per Share - diluted	$	4.74	$	4.61	$	4.89
Core FFO per Share - diluted	$	4.93	$	4.81	$	5.05

Additional assumptions:

•Same-store capital expenditures of $1,250 per home to $1,350 per home

•Value-add expenditures of $2.5 million to $12.5 million

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, please refer to "2026 Financial Outlook" in the Supplemental Financial and Operating Data below.

Strategic Review

In November, we announced that our Board has undertaken a proactive process to review strategic alternatives that may be available to Centerspace. Our focus remains on maximizing shareholder value. This review remains ongoing and there is no deadline or definitive timetable and there can be no assurance that this process will result in a transaction or any other strategic outcome. Centerspace will not be making disclosures or commenting relating to this process until it determines disclosure is required or appropriate.

Earnings Call

Live webcast and replay: https://www.ir.centerspacehomes.com

Live Conference Call

Conference Call Replay

Wednesday, February 18, 2026 at 10:00 AM ET

Replay available until February 25, 2026

USA Local Number

1-646-844-6383

USA Local Number

1-929-458-6194

USA Toll Free Number

1-833-470-1428

USA Toll Free Number

1-866-813-9403

Conference Number

250430

Conference Number

894072


			2

Supplemental Information

Supplemental Operating and Financial Data for the year ended December 31, 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 December 31, 2025, Centerspace owned 61 apartment communities consisting of 12,262 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a top workplace for the sixth consecutive year in 2025 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, in 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

E-mail: IR@centerspacehomes.com

Marketing & Media

Kelly Weber

Phone: 952-401-6600

E-mail: kweber@centerspacehomes.com


			3

Supplemental Financial and Operating Data

Table of Contents

December 31, 2025


			Page

Common Share Data			S-1

Key Financial Data
Condensed Consolidated Statements of Operations			S-2
Condensed Consolidated Balance Sheets			S-3

Non-GAAP Financial Measures and Reconciliations
Net Operating Income			S-5
Same-Store Controllable Expenses			S-7
Funds from Operations and Core Funds from Operations			S-8
Adjusted EBITDA			S-9

Debt and Capital Analysis
Debt Analysis			S-10
Capital Analysis			S-11

Portfolio Analysis
Same-Store Comparisons			S-12
Portfolio Summary			S-15
Capital Expenditures			S-16

2026 Financial Outlook			S-17

Non-GAAP Financial Measures and Other Terms			S-19

Common Share Data (NYSE: CSR)


	Three Months Ended
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
High closing price	$	67.73		$	61.09		$	65.22		$	66.19		$	75.02
Low closing price	$	57.41		$	53.18		$	56.21		$	60.29		$	64.75
Average closing price	$	62.84		$	57.79		$	61.34		$	63.04		$	70.30
Closing price at end of quarter	$	66.72		$	58.90		$	60.19		$	64.75		$	66.15
Common share distributions—annualized	$	3.08		$	3.08		$	3.08		$	3.08		$	3.00
Closing price dividend yield—annualized	4.6		%	5.2		%	5.1		%	4.8		%	4.5		%
Closing common shares outstanding (thousands)	16,761			16,703			16,757			16,735			16,719
Closing limited partnership units outstanding (thousands)	920			963			968			972			980
Closing Series E preferred units, as converted (thousands)	1,892			1,894			1,898			1,906			1,906
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)	19,573			19,560			19,623			19,613			19,605
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	1,305,911		$	1,152,084		$	1,181,108		$	1,269,942		$	1,296,871


			S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share amounts)


	Three Months Ended										Twelve Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		12/31/2025		12/31/2024
REVENUE	$	66,621	$	71,399	$	68,549	$	67,093	$	66,409	$	273,662	$	260,983
EXPENSES
Property operating expenses, excluding real estate taxes	18,496		21,210		18,853		19,068		19,838		77,627		76,338
Real estate taxes	6,140		7,165		7,678		7,663		6,489		28,646		26,906
Property management expenses	2,323		2,489		2,393		2,433		2,334		9,638		9,128
Casualty (gain) loss	(242)		127		399		532		2,389		816		3,307
Depreciation and amortization	29,424		29,056		27,097		27,654		27,640		113,231		106,450
Impairment of real estate investments	14,500		8,676		14,543		—		—		37,719		—
General and administrative expenses	6,542		4,997		4,382		4,997		4,861		20,918		17,802
TOTAL EXPENSES	$	77,183	$	73,720	$	75,345	$	62,347	$	63,551	$	288,595	$	239,931
Gain (loss) on sale of real estate and other investments	(61)		79,531		—		—		—		79,470		(577)

Operating income (loss)	(10,623)		77,210		(6,796)		4,746		2,858		64,537		20,475
Interest expense	(11,536)		(12,989)		(10,724)		(9,635)		(9,795)		(44,884)		(37,280)
Loss on extinguishment of debt	(95)		(3)		—		—		—		(98)		—
Interest and other income	776		1,190		735		708		1,151		3,409		2,613


NET INCOME (LOSS)	$	(21,478)	$	65,408	$	(16,785)	$	(4,181)	$	(5,786)	$	22,964	$	(14,192)
Distributions to Series D preferred unitholders	(57)		(109)		(160)		(160)		(160)		(486)		(640)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units	3,102		(9,197)		2,483		643		900		(2,969)		3,635
Net income attributable to noncontrolling interests – consolidated real estate entities	—		(2,319)		(53)		(36)		(33)		(2,408)		(131)
Net income (loss) attributable to controlling interests	(18,433)		53,783		(14,515)		(3,734)		(5,079)		17,101		(11,328)
Distributions to Series C preferred shareholders	—		—		—		—		—		—		(4,821)
Redemption of Series C preferred shares	—		—		—		—		—		—		(3,511)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	(18,433)	$	53,783	$	(14,515)	$	(3,734)	$	(5,079)	$	17,101	$	(19,660)




Net income (loss) per common share – basic	$	(1.10)	$	3.22	$	(0.87)	$	(0.22)	$	(0.31)	$	1.02	$	(1.27)




Net income (loss) per common share – diluted	$	(1.10)	$	3.19	$	(0.87)	$	(0.22)	$	(0.31)	$	1.02	$	(1.27)


			S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)


	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024
ASSETS
Real estate investments
Property owned	$	2,524,020	$	2,536,166	$	2,422,435	$	2,484,111	$	2,480,741
Less accumulated depreciation	(660,124)		(638,217)		(612,827)		(652,368)		(625,980)



Total real estate investments	1,863,896		1,897,949		1,809,608		1,831,743		1,854,761
Cash and cash equivalents	12,833		12,896		12,378		11,916		12,030
Restricted cash	2,818		52,943		5,815		6,144		1,099
Other assets	46,620		47,516		48,072		43,281		45,817
Assets held for sale, net	—		86,302		137,366		—		—
TOTAL ASSETS	$	1,926,167	$	2,097,606	$	2,013,239	$	1,893,084	$	1,913,707

LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	59,247	$	66,124	$	56,070	$	57,631	$	59,319
Revolving lines of credit	154,925		222,500		216,030		48,734		47,359
Notes payable, net of unamortized loan costs	299,579		299,564		299,550		299,535		299,520
Mortgages payable, net of unamortized loan costs	566,660		622,074		595,668		607,184		608,506
Liabilities held for sale, net	—		420		1,029		—		—
TOTAL LIABILITIES	$	1,080,411	$	1,210,682	$	1,168,347	$	1,013,084	$	1,014,704


SERIES D PREFERRED UNITS	$	5,940	$	5,940	$	11,310	$	16,560	$	16,560
EQUITY

Common Shares of Beneficial Interest	1,368,834		1,366,980		1,369,376		1,368,276		1,367,637
Accumulated distributions in excess of net income	(649,678)		(618,341)		(659,266)		(631,855)		(615,242)
Accumulated other comprehensive loss	—		—		(58)		(232)		(407)
Total shareholders’ equity	$	719,156	$	748,639	$	710,052	$	736,189	$	751,988
Noncontrolling interests – Operating Partnership and Series E preferred units	120,660		128,038		121,439		126,597		129,782
Noncontrolling interests – consolidated real estate entities	—		4,307		2,091		654		673
TOTAL EQUITY	$	839,816	$	880,984	$	833,582	$	863,440	$	882,443
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY	$	1,926,167	$	2,097,606	$	2,013,239	$	1,893,084	$	1,913,707


			S-3

CENTERSPACE

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)

This release contains certain non-GAAP financial measures. The non-GAAP financial measures should not be considered a substitute for operating results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The definitions and calculations of these non-GAAP financial measures, as calculated by the Company, may not be comparable to non-GAAP measures reported by other REITs that do not define each of the non-GAAP financial measures exactly as Centerspace does. The non-GAAP financial measures are defined and further explained on pages S-19 through S-23, “Non-GAAP Financial Measures and Other Terms.”

The Company provides certain information on a same-store and non-same-store basis. Same-store apartment communities are owned or stabilized for substantially all of the periods being compared and, in the case of newly-acquired or constructed communities, have achieved a target level of physical occupancy of 90%, or re-positioned communities when they have achieved stabilized operations. Non-same store communities are communities not owned or stabilized as of the beginning of the previous year, including re-positioned communities, and excluding communities held for sale and the non-multifamily components of mixed-use properties.

On the first day of each calendar year, Centerspace determines the composition of its same-store pool for that year as well as adjusts the previous year, which allows the Company to evaluate the performance of existing apartment communities and their contribution to net operating income (“NOI”). The Company believes that measuring performance on a same-store basis is useful to investors because it enables evaluation of how a fixed pool of its communities are performing year-over-year. Centerspace uses this measure to assess whether or not the company has been successful in increasing NOI (defined and reconciled below), raising average rental revenue, renewing leases on existing residents, controlling operating costs, and making prudent capital improvements.

For the comparison of the years ended December 31, 2025 and 2024, 57 apartment communities were classified as same-store and four apartment communities and two apartment communities, respectively, were non-same-store. Sold communities and communities designated as held for sale are included in “Held for sale and dispositions,” while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties. During the three months ended and the year ended December 31, 2025, the Company disposed of seven apartment communities consisting of 679 apartment homes and twelve apartment communities consisting of 1,511 apartment homes, respectively. During the year ended December 31, 2024, the Company disposed of two apartment communities consisting of 205 apartment homes.


			S-4

CENTERSPACE

RECONCILIATIONS OF OPERATING INCOME TO NET OPERATING INCOME (1)


	(dollars in thousands)
	Three Months Ended						Sequential				Year-Over-Year
	12/31/2025		9/30/2025		12/31/2024		$ Change		% Change		$ Change		% Change
Operating income (loss)	$	(10,623)	$	77,210	$	2,858	$	(87,833)	(113.8)	%	$	(13,481)	(471.7)	%
Adjustments:
Property management expenses	2,323		2,489		2,334		(166)		(6.7)	%	(11)		(0.5)	%
Casualty (gain) loss	(242)		127		2,389		(369)		(290.6)	%	(2,631)		(110.1)	%
Depreciation and amortization	29,424		29,056		27,640		368		1.3	%	1,784		6.5	%
Impairment of real estate investments	14,500		8,676		—		5,824		67.1	%	14,500		N/A
General and administrative expenses	6,542		4,997		4,861		1,545		30.9	%	1,681		34.6	%
(Gain) loss on sale of real estate and other investments	61		(79,531)		—		79,592		*		61		N/A

Net Operating Income(1)	$	41,985	$	43,024	$	40,082	$	(1,039)	(2.4)	%	$	1,903	4.7	%

Revenue
Same-store	$	57,583	$	58,061	$	57,019	$	(478)	(0.8)	%	$	564	1.0	%
Non-same-store	6,594		5,760		1,903		834		14.5	%	4,691		*
Other properties	963		899		774		64		7.1	%	189		24.4	%
Dispositions	1,481		6,679		6,713		(5,198)		(77.8)	%	(5,232)		*
Total	66,621		71,399		66,409		(4,778)		(6.7)	%	212		0.3	%
Property operating expenses, including real estate taxes
Same-store	20,873		22,530		21,999		(1,657)		(7.4)	%	(1,126)		(5.1)	%
Non-same-store	2,557		2,494		892		63		2.5	%	1,665		*
Other properties	241		287		313		(46)		(16.0)	%	(72)		(23.0)	%
Dispositions	965		3,064		3,123		(2,099)		(68.5)	%	(2,158)		*
Total	24,636		28,375		26,327		(3,739)		(13.2)	%	(1,691)		(6.4)	%
Net Operating Income(1)
Same-store	36,710		35,531		35,020		1,179		3.3	%	1,690		4.8	%
Non-same-store	4,037		3,266		1,011		771		23.6	%	3,026		*
Other properties	722		612		461		110		18.0	%	261		56.6	%
Dispositions	516		3,615		3,590		(3,099)		(85.7)	%	(3,074)		*
Total	$	41,985	$	43,024	$	40,082	$	(1,039)	(2.4)	%	$	1,903	4.7	%

*Not a meaningful percentage

(1)Net Operating Income is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information. Non-GAAP financial measures should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.


			S-5

CENTERSPACE

RECONCILIATIONS OF OPERATING INCOME TO NET OPERATING INCOME (1)


	(dollars in thousands)
	Twelve Months Ended December 31,
	2025		2024		$ Change		% Change
Operating income	$	64,537	$	20,475	$	44,062	215.2	%
Adjustments:
Property management expenses	9,638		9,128		510		5.6	%
Casualty loss	816		3,307		(2,491)		(75.3)	%
Depreciation and amortization	113,231		106,450		6,781		6.4	%
Impairment of real estate investments	37,719		—		37,719		N/A
General and administrative expenses	20,918		17,802		3,116		17.5	%
(Gain) loss on sale of real estate and other investments	(79,470)		577		(80,047)		*

Net Operating Income(1)	$	167,389	$	157,739	$	9,650	6.1	%

Revenue
Same-store	$	231,136	$	225,762	$	5,374	2.4	%
Non-same-store	17,041		5,597		11,444		*
Other properties	3,470		2,464		1,006		40.8	%
Dispositions	22,015		27,160		(5,145)		*
Total	273,662		260,983		12,679		4.9	%
Property operating expenses, including real estate taxes
Same-store	87,439		86,898		541		0.6	%
Non-same-store	7,289		2,575		4,714		*
Other properties	1,101		937		164		17.5	%
Dispositions	10,444		12,834		(2,390)		*
Total	106,273		103,244		3,029		2.9	%
Net Operating Income(1)
Same-store	143,697		138,864		4,833		3.5	%
Non-same-store	9,752		3,022		6,730		*
Other properties	2,369		1,527		842		55.1	%
Dispositions	11,571		14,326		(2,755)		*
Total	$	167,389	$	157,739	$	9,650	6.1	%

*Not a meaningful percentage

(1)Net Operating Income is a non-GAAP measure. Refer to pages S-19 through S-23 “Reconciliations of non-GAAP Financial Measures and Other Terms” for additional information. Non-GAAP financial measures should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.


			S-6

CENTERSPACE

RECONCILIATIONS OF SAME-STORE CONTROLLABLE EXPENSES TO TOTAL PROPERTY OPERATING EXPENSES, INCLUDING REAL ESTATE TAXES (1)


	(dollars in thousands)
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change

Same-store controllable expenses(1)
On-site compensation(2)	$	5,654	$	5,858	$	(204)	(3.5)	%	$	23,133	$	22,967	$	166	0.7	%
Repairs and maintenance(3)	2,984		3,420		(436)		(12.7)	%	12,434		12,796		(362)		(2.8)	%
Utilities	3,310		3,216		94		2.9	%	13,684		12,877		807		6.3	%
Administrative and marketing	1,403		1,625		(222)		(13.7)	%	5,660		5,854		(194)		(3.3)	%
Total	$	13,351	$	14,119	$	(768)	(5.4)	%	$	54,911	$	54,494	$	417	0.8	%

Same-store non-controllable expenses
Real estate taxes	$	5,117	$	5,516	$	(399)	(7.2)	%	$	23,926	$	23,077	$	849	3.7	%
Insurance	2,405		2,364		41		1.7	%	8,602		9,327		(725)		(7.8)	%
Total	$	7,522	$	7,880	$	(358)	(4.5)	%	$	32,528	$	32,404	$	124	0.4	%
Total property operating expenses, including real estate taxes - same-store	$	20,873	$	21,999	$	(1,126)	(5.1)	%	$	87,439	$	86,898	$	541	0.6	%

Property operating expenses, including real estate taxes - non-same-store	$	2,557	$	892	$	1,665	*		$	7,289	$	2,575	$	4,714	*
Property operating expenses, including real estate taxes - other properties	241		313		(72)		(23.0)	%	1,101		937		164		17.5	%
Property operating expenses, including real estate taxes - dispositions	965		3,123		(2,158)		*		10,444		12,834		(2,390)		*
Total property operating expenses, including real estate taxes	$	24,636	$	26,327	$	(1,691)	(6.4)	%	$	106,273	$	103,244	$	3,029	2.9	%

*Not a meaningful percentage

(1)Same-store controllable expenses is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.

(2)On-site compensation for administration, leasing, and maintenance personnel.

(3)Includes turnover expense.


			S-7

CENTERSPACE

RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS AND CORE FUNDS FROM OPERATIONS (1)


	(in thousands, except per share amounts)
	Three Months Ended										Twelve Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		12/31/2025		12/31/2024
Funds from Operations:(1)
Net (loss) income available to common shareholders	$	(18,433)	$	53,783	$	(14,515)	$	(3,734)	$	(5,079)	$	17,101	$	(19,660)
Adjustments:
Noncontrolling interests - Operating Partnership and Series E preferred units	(3,102)		9,197		(2,483)		(643)		(900)		2,969		(3,635)
Depreciation and amortization	29,424		29,056		27,097		27,654		27,640		113,231		106,450
Less depreciation - non real estate	(83)		(85)		(84)		(83)		(79)		(335)		(327)
Less depreciation - partially owned entities	—		—		(21)		(22)		(24)		(43)		(98)
Impairment of real estate investments	14,500		8,676		14,543				—		37,719		—
(Gain) loss on sale of real estate	61		(79,531)		—		—		—		(79,470)		577
Less gain on sale of real estate - partially owned entities	1		2,251		—		—		—		2,252		—
Add loss on sale of non real estate assets	(50)		—		—		—		—		(50)		—
FFO applicable to common shares and Units	$	22,318	$	23,347	$	24,537	$	23,172	$	21,558	$	93,374	$	83,307

Adjustments to Core FFO(1):
Non-cash casualty loss (recovery)	229		(123)		149		282		2,171		537		2,432
Loss on extinguishment of debt	95		3		—		—		—		98		—






Interest rate swap amortization	—		58		174		175		171		407		712
Amortization of assumed debt	593		530		418		417		417		1,958		1,206




Legal and other costs related to strategic review	1,336		—		—		—		—		1,336		—
Redemption of Series C preferred shares	—		—		—		—		—		—		3,511
Other miscellaneous items(2)	(4)		(455)		19		(67)		(454)		(507)		(489)
Core FFO applicable to common shares and Units	$	24,567	$	23,360	$	25,297	$	23,979	$	23,863	$	97,203	$	90,679

FFO applicable to common shares and Units	$	22,318	$	23,347	$	24,537	$	23,172	$	21,558	$	93,374	$	83,307
Distributions to Series D preferred unitholders	57		109		160		160		160		486		640
FFO applicable to common shares and Units - diluted	$	22,375	$	23,456	$	24,697	$	23,332	$	21,718	$	93,860	$	83,947

Core FFO applicable to common shares and Units	$	24,567	$	23,360	$	25,297	$	23,979	$	23,863	$	97,203	$	90,679
Distributions to Series D preferred unitholders	57		109		160		160		160		486		640
Core FFO applicable to common shares and Units - diluted	$	24,624	$	23,469	$	25,457	$	24,139	$	24,023	$	97,689	$	91,319

Per Share Data
Net income (loss) per share and Unit - diluted	$	(1.10)	$	3.19	$	(0.87)	$	(0.22)	$	(0.31)	$	1.02	$	(1.27)
FFO per share and Unit - diluted(1)	$	1.14	$	1.19	$	1.24	$	1.17	$	1.09	$	4.74	$	4.49
Core FFO per share and Unit - diluted(1)	$	1.25	$	1.19	$	1.28	$	1.21	$	1.21	$	4.93	$	4.88

Weighted average shares - basic for net income (loss)	16,719		16,726		16,741		16,727		16,583		16,728		15,504
Effect of operating partnership Units for FFO and Core FFO	948		966		971		980		939		966		870
Effect of Series D preferred units, as converted, for FFO and Core FFO	82		155		228		228		228		173		228
Effect of Series E preferred units, as converted, for FFO and Core FFO	1,894		1,898		1,905		1,906		2,033		1,901		2,056
Effect of dilutive restricted stock units and stock options for FFO and Core FFO	56		26		25		35		56		47		36
Weighted average shares and Units for FFO and Core FFO - diluted	19,699		19,771		19,870		19,876		19,839		19,815		18,694

(1)Funds from operations and Core funds from operations are non-GAAP measures. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.

(2)Consists of (gain) loss on investments and one-time professional fees.


			S-8

CENTERSPACE

RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS

TO ADJUSTED EBITDA(1)


	(in thousands)
	Three Months Ended										Twelve Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		12/31/2025		12/31/2024
Adjusted EBITDA
Net income (loss) attributable to controlling interests	$	(18,433)	$	53,783	$	(14,515)	$	(3,734)	$	(5,079)	$	17,101	$	(11,328)
Adjustments:
Distributions to Series D preferred unitholders	57		109		160		160		160		486		640
Noncontrolling interests – Operating Partnership and Series E preferred units	(3,102)		9,197		(2,483)		(643)		(900)		2,969		(3,635)
Income (loss) before noncontrolling interests – Operating Partnership	(21,478)		63,089		(16,838)		(4,217)		(5,819)		20,556		(14,323)
Adjustments:
Interest expense	11,537		12,989		10,719		9,622		9,782		44,867		37,225
Loss on extinguishment of debt	95		3		—		—		—		98		—
Depreciation and amortization related to real estate investments	29,424		29,056		27,076		27,632		27,616		113,188		106,352
Impairment of real estate investments	14,500		8,676		14,543		—		—		37,719		—
Non-cash casualty loss (recovery)	229		(123)		149		282		2,171		537		2,432
Interest income	(757)		(724)		(729)		(616)		(662)		(2,826)		(1,962)
(Gain) loss on sale of real estate	12		(77,280)		—		—		—		(77,268)		577









Legal and other costs related to strategic review	1,336		—		—		—		—		1,336		—
Other miscellaneous items(2)	(4)		(455)		19		(67)		(455)		(507)		(490)
Adjusted EBITDA	$	34,894	$	35,231	$	34,939	$	32,636	$	32,633	$	137,700	$	129,811

(1)Adjusted EBITDA is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.

(2)Consists of (gain) loss on investments and one-time professional fees.


			S-9

CENTERSPACE

DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations


	Future Maturities of Debt
	Secured Fixed Debt		Unsecured Fixed Debt		Unsecured Variable Debt		Total Debt		% of Total Debt		Weighted Average Interest Rate(1)
2026	$	51,220	$	—	$	925	$	52,145	4.9	%	3.49	%
2027	47,022		—		—		47,022		4.5	%	3.47	%
2028	60,000		50,000		154,000		264,000		25.0	%	4.28	%
2029	19,377		75,000		—		94,377		9.0	%	3.94	%
2030	—		85,000		—		85,000		8.1	%	2.62	%
Thereafter	421,365		90,000		—		511,365		48.5	%	3.45	%
Subtotal	598,984		300,000		154,925		1,053,909		100.0	%	3.64	%
Premiums and discounts, net	(29,387)		—		—		(29,387)
Deferred financing costs, net	(2,937)		(421)		—		(3,358)
Total debt	$	566,660	$	299,579	$	154,925	$	1,021,164

(1)Weighted average interest rate of debt that matures during the year.


	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Debt Balances Outstanding
Secured fixed rate - mortgages payable - other	$	400,134		$	455,934		$	406,412		$	418,508		$	420,414
Secured fixed rate - mortgages payable - Fannie Mae credit facility	198,850			198,850			198,850			198,850			198,850

Unsecured variable rate line of credit	154,925			222,500			216,030			48,734			47,359

Unsecured senior notes	300,000			300,000			300,000			300,000			300,000
Subtotal(1)	$	1,053,909		$	1,177,284		$	1,121,292		$	966,092		$	966,623
Premiums and discounts, net	(29,387)			(29,763)			(6,661)			(7,079)			(7,496)
Deferred financing costs, net	(3,358)			(3,383)			(3,383)			(3,560)			(3,742)
Debt total	$	1,021,164		$	1,144,138		$	1,111,248		$	955,453		$	955,385
Weighted Average Interest Rates
Mortgages payable - other rate	3.88		%	3.87		%	4.03		%	4.02		%	4.02		%
Mortgages payable - Fannie Mae Credit Facility rate	2.78		%	2.78		%	2.78		%	2.78		%	2.78		%
Lines of credit rate(2)	5.12		%	5.51		%	5.75		%	5.76		%	5.86		%

Unsecured senior notes rate	3.12		%	3.12		%	3.12		%	3.12		%	3.12		%
Total debt	3.64		%	3.80		%	3.90		%	3.57		%	3.58		%

(1) Excludes premiums, discounts, and deferred financing costs.

(2) Interest rate excludes any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps, as shown in the table below.


	Three Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024
Reclassified from Accumulated OCI into interest expense	$	—	$	58	$	174	$	175	$	171


			S-10

CENTERSPACE

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)


	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Equity Capitalization
Common shares outstanding	16,761			16,703			16,757			16,735			16,719
Operating partnership units outstanding	920			963			968			972			980
Series E preferred units (as converted)	1,892			1,894			1,898			1,906			1,906
Total common shares, Units, and Series E preferred units, as converted, outstanding	19,573			19,560			19,623			19,613			19,605
Market price per common share (closing price at end of period)	$	66.72		$	58.90		$	60.19		$	64.75		$	66.15
Equity capitalization-common shares and Units	$	1,305,911		$	1,152,084		$	1,181,108		$	1,269,942		$	1,296,871



Series D preferred units	$	5,940		$	5,940		$	11,310		$	16,560		16,560

Debt Capitalization
Total debt(1)	1,053,909			1,177,284			1,121,292			966,092			966,623
Total market capitalization	$	2,365,760		$	2,335,308		$	2,313,710		$	2,252,594		$	2,280,054

Total debt to total market capitalization(2)	44.5		%	50.4		%	48.5		%	42.9		%	42.4		%

(1)Excludes deferred financing costs and debt premiums and discounts.

(2)Total debt to total market capitalization is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.


	Three Months Ended															Twelve Months Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024			12/31/2025			12/31/2024
Debt service coverage ratio(1)	2.59		x	2.35		x	2.78		x	2.83		x	2.80		x	2.62		x	2.94		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization(1)	2.58		x	2.33		x	2.74		x	2.79		x	2.76		x	2.60		x	2.61		x
Net debt/Adjusted EBITDA(1)	7.46		x	7.90		x	7.93		x	7.31		x	7.31		x	7.56		x	7.35		x
Net debt and preferred equity/Adjusted EBITDA(1)	7.50		x	7.94		x	8.02		x	7.44		x	7.44		x	7.60		x	7.48		x

Distribution Data
Common shares and Units outstanding at record date (in thousands)	17,679			17,662			17,717			17,706			17,571			17,679			17,571
Total common distribution declared (in thousands)	$	13,613		$	13,600		$	13,642		$	13,633		$	13,177		$	54,488		$	49,911
Common distribution per share and Unit	$	0.77		$	0.77		$	0.77		$	0.77		$	0.75		$	3.08		$	3.00

Payout ratio (Core FFO per diluted share and unit basis)(1)	61.6		%	64.7		%	60.2		%	63.6		%	62.0		%	62.5		%	61.5		%

(1)Debt service coverage ratio, adjusted EBITDA divided by interest expense plus preferred distributions and principal amortization, net debt divided by adjusted EBITDA, net debt and preferred equity divided by adjusted EBITDA, and payout ratio are non-GAAP financial measures. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.


			S-11

CENTERSPACE

SAME-STORE FOURTH QUARTER COMPARISONS

(dollars in thousands)


	Apartment Homes Included	Revenues						Expenses						NOI (2)
Regions		Q4 2025		Q4 2024		% Change		Q4 2025		Q4 2024		% Change		Q4 2025		Q4 2024		% Change
Denver, CO	1,848	$	11,329	$	11,975	(5.4)	%	$	3,989	$	4,327	(7.8)	%	$	7,340	$	7,648	(4.0)	%
Minneapolis, MN	3,744	19,580		19,003		3.0	%	8,420		8,532		(1.3)	%	11,160		10,471		6.6	%
Boulder/Ft. Collins, CO	559	3,441		3,379		1.8	%	1,064		999		6.5	%	2,377		2,380		(0.1)	%
North Dakota	1,710	7,868		7,463		5.4	%	2,533		2,986		(15.2)	%	5,335		4,477		19.2	%
Omaha, NE	872	3,893		3,787		2.8	%	890		1,042		(14.6)	%	3,003		2,745		9.4	%
Rochester, MN	1,129	6,094		6,046		0.8	%	2,343		2,294		2.1	%	3,751		3,752		—	%

Other Mountain West(1)	1,222	5,378		5,366		0.2	%	1,634		1,819		(10.2)	%	3,744		3,547		5.6	%
Same-Store Total	11,084	$	57,583	$	57,019	1.0	%	$	20,873	$	21,999	(5.1)	%	$	36,710	$	35,020	4.8	%


	% of NOI		Weighted Average Occupancy (3)						Average Monthly Rental Rate (3)						Average Monthly Revenue per Occupied Home (3)
Regions			Q4 2025		Q4 2024		Growth		Q4 2025		Q4 2024		% Change		Q4 2025		Q4 2024		% Change
Denver, CO	20.0	%	93.8	%	95.4	%	(1.6)	%	$	1,952	$	2,000	(2.4)	%	$	2,178	$	2,263	(3.8)	%
Minneapolis, MN	30.4	%	95.8	%	95.4	%	0.4	%	1,620		1,586		2.1	%	1,819		1,773		2.6	%
Boulder/Ft. Collins, CO	6.5	%	95.8	%	95.2	%	0.6	%	1,903		1,905		(0.1)	%	2,142		2,116		1.2	%
North Dakota	14.5	%	96.1	%	96.7	%	(0.6)	%	1,455		1,374		5.9	%	1,597		1,505		6.1	%
Omaha, NE	8.2	%	95.2	%	96.3	%	(1.1)	%	1,423		1,369		3.9	%	1,564		1,503		4.1	%
Rochester, MN	10.2	%	95.0	%	96.0	%	(1.0)	%	1,802		1,759		2.4	%	1,893		1,859		1.8	%

Other Mountain West(1)	10.2	%	95.3	%	95.7	%	(0.4)	%	1,364		1,352		0.9	%	1,540		1,530		0.7	%
Same-Store Total	100.0	%	95.3	%	95.7	%	(0.4)	%	$	1,639	$	1,613	1.6	%	$	1,818	$	1,791	1.5	%

(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.

(2)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.

(3)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.


			S-12

CENTERSPACE

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(dollars in thousands)


	Apartment Homes Included	Revenues						Expenses						NOI (2)
Regions		Q4 2025		Q3 2025		% Change		Q4 2025		Q3 2025		% Change		Q4 2025		Q3 2025		% Change
Denver, CO	1,848	$	11,329	$	11,715	(3.3)	%	$	3,989	$	3,994	(0.1)	%	$	7,340	$	7,721	(4.9)	%
Minneapolis, MN	3,744	19,580		19,590		(0.1)	%	8,420		8,516		(1.1)	%	11,160		11,074		0.8	%
Boulder/Ft. Collins, CO	559	3,441		3,450		(0.3)	%	1,064		1,092		(2.6)	%	2,377		2,358		0.8	%
North Dakota	1,710	7,868		7,836		0.4	%	2,533		2,799		(9.5)	%	5,335		5,037		5.9	%
Omaha, NE	872	3,893		3,832		1.6	%	890		1,631		(45.4)	%	3,003		2,201		36.4	%
Rochester, MN	1,129	6,094		6,217		(2.0)	%	2,343		2,433		(3.7)	%	3,751		3,784		(0.9)	%

Other Mountain West(1)	1,222	5,378		5,421		(0.8)	%	1,634		2,065		(20.9)	%	3,744		3,356		11.6	%
Same-Store Total	11,084	$	57,583	$	58,061	(0.8)	%	$	20,873	$	22,530	(7.4)	%	$	36,710	$	35,531	3.3	%


	% of NOI		Weighted Average Occupancy (3)						Average Monthly Rental Rate (3)						Average Monthly Revenue per Occupied Home (3)
Regions			Q4 2025		Q3 2025		Growth		Q4 2025		Q3 2025		% Change		Q4 2025		Q3 2025		% Change
Denver, CO	20.0	%	93.8	%	94.5	%	(0.7)	%	$	1,952	$	1,956	(0.2)	%	$	2,178	$	2,236	(2.6)	%
Minneapolis, MN	30.4	%	95.8	%	96.1	%	(0.3)	%	1,620		1,607		0.8	%	1,819		1,815		0.2	%
Boulder/Ft. Collins, CO	6.5	%	95.8	%	96.4	%	(0.6)	%	1,903		1,905		(0.1)	%	2,142		2,133		0.4	%
North Dakota	14.5	%	96.1	%	97.0	%	(0.9)	%	1,455		1,431		1.7	%	1,597		1,575		1.4	%
Omaha, NE	8.2	%	95.2	%	93.9	%	1.4	%	1,423		1,401		1.6	%	1,564		1,560		0.3	%
Rochester, MN	10.2	%	95.0	%	95.8	%	(0.8)	%	1,802		1,799		0.2	%	1,893		1,916		(1.2)	%

Other Mountain West(1)	10.2	%	95.3	%	96.4	%	(1.1)	%	1,364		1,360		0.3	%	1,540		1,534		0.4	%
Same-Store Total	100.0	%	95.3	%	95.8	%	(0.5)	%	$	1,639	$	1,629	0.6	%	$	1,818	$	1,823	(0.3)	%

(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.

(2)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.

(3)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.


			S-13

CENTERSPACE

SAME-STORE YEAR-TO-DATE COMPARISONS

(dollars in thousands)


	Apartment Homes Included	Revenues						Expenses						NOI (2)
Regions		2025		2024		% Change		2025		2024		% Change		2025		2024		% Change
Denver, CO	1,848	$	46,655	$	47,571	(1.9)	%	$	16,878	$	16,972	(0.6)	%	$	29,777	$	30,599	(2.7)	%
Minneapolis, MN	3,744	78,133		75,938		2.9	%	32,846		32,078		2.4	%	45,287		43,860		3.3	%
Boulder/Ft. Collins, CO	559	13,825		13,582		1.8	%	4,368		4,239		3.0	%	9,457		9,343		1.2	%
North Dakota	1,710	31,003		29,119		6.5	%	11,080		11,401		(2.8)	%	19,923		17,718		12.4	%
Omaha, NE	872	15,247		14,622		4.3	%	5,438		5,616		(3.2)	%	9,809		9,006		8.9	%
Rochester, MN	1,129	24,725		23,952		3.2	%	9,289		8,951		3.8	%	15,436		15,001		2.9	%

Other Mountain West(1)	1,222	21,548		20,978		2.7	%	7,540		7,641		(1.3)	%	14,008		13,337		5.0	%
Same-Store Total	11,084	$	231,136	$	225,762	2.4	%	$	87,439	$	86,898	0.6	%	$	143,697	$	138,864	3.5	%


	% of NOI		Weighted Average Occupancy (3)						Average Monthly Rental Rate (3)						Average Monthly Revenue per Occupied Home (3)
Regions			2025		2024		Growth		2025		2024		% Change		2025		2024		% Change
Denver, CO	20.7	%	94.2	%	95.4	%	(1.3)	%	$	1,967	$	1,994	(1.4)	%	$	2,232	$	2,248	(0.7)	%
Minneapolis, MN	31.6	%	96.2	%	95.3	%	0.9	%	1,604		1,582		1.4	%	1,808		1,774		1.9	%
Boulder/Ft. Collins, CO	6.6	%	96.0	%	95.5	%	0.5	%	1,905		1,897		0.4	%	2,147		2,119		1.3	%
North Dakota	13.9	%	96.8	%	96.4	%	0.4	%	1,417		1,341		5.7	%	1,561		1,472		6.0	%
Omaha, NE	6.8	%	94.4	%	94.2	%	0.2	%	1,399		1,351		3.6	%	1,544		1,483		4.1	%
Rochester, MN	10.7	%	96.2	%	95.6	%	0.6	%	1,786		1,742		2.5	%	1,896		1,849		2.5	%

Other Mountain West(1)	9.7	%	96.1	%	94.7	%	1.5	%	1,355		1,349		0.4	%	1,529		1,511		1.2	%
Same-Store Total	100.0	%	95.7	%	95.4	%	0.3	%	$	1,626	$	1,602	1.5	%	$	1,815	$	1,779	2.0	%

(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.

(2)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.

(3)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.


			S-14

CENTERSPACE

PORTFOLIO SUMMARY (1)


	Three Months Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Number of Apartment Homes at Period End
Same-Store	11,084			11,084			11,084			12,595			12,580
Non-Same-Store	1,178			1,178			758			417			432
All Communities	12,262			12,262			11,842			13,012			13,012

Average Monthly Rental Rate(2)
Same-Store	$	1,639		$	1,629		$	1,621		$	1,586		$	1,573
Non-Same-Store	1,842			1,858			1,731			1,558			1,892
All Communities	$	1,658		$	1,649		$	1,625		$	1,585		$	1,584

Average Monthly Revenue per Occupied Apartment Home(2)
Same-Store	$	1,818		$	1,823		$	1,818		$	1,775		$	1,751
Non-Same-Store	2,080			2,090			1,951			1,786			2,042
All Communities	$	1,843		$	1,846		$	1,844		$	1,776		$	1,761

Weighted Average Occupancy(2)
Same-Store	95.3		%	95.8		%	96.1		%	95.8		%	95.5		%
Non-Same-Store	89.7		%	87.5		%	85.9		%	88.9		%	93.6		%
All Communities	94.7		%	95.0		%	94.5		%	95.6		%	95.4		%

Property Operating Expenses as a % of Scheduled Rental Revenue(2)
Same-Store	38.3		%	41.6		%	40.6		%	42.4		%	42.3		%
Non-Same-Store	39.3		%	42.6		%	44.0		%	51.9		%	35.8		%
All Communities	38.4		%	41.7		%	40.8		%	42.7		%	42.1		%

Capital Expenditures
Total Recurring Capital Expenditures(2) per Apartment Home – Same-Store	$	269		$	350		$	370		$	172		$	238

(1)Previously reported amounts are not revised for changes in the composition of the same-store properties pool.

(2)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.


			S-15

CENTERSPACE

CAPITAL EXPENDITURES

(dollars in thousands, except per home amounts)


	Three Months Ended				Twelve Months Ended
Capital Expenditures	12/31/2025		12/31/2024		12/31/2025		12/31/2024
Total Same-Store Apartment Homes	11,084		11,084		11,084		11,084
All Properties - Weighted Average Apartment Homes	12,528		13,012		13,059		12,948

Same-Store
Building - Exterior	$	1,520	$	856	$	4,896	$	3,901
Building - Interior	171		67		390		167
Mechanical, Electrical, & Plumbing	560		623		2,273		2,542
Furniture & Equipment	38		80		492		321
Landscaping & Grounds	409		830		1,601		2,519
Turnover Replacements	1,108		850		3,668		3,473
Work in progress - net change	(827)		(562)		(403)		(971)
Recurring Capital Expenditures(1) - Same-Store	$	2,979	$	2,744	$	12,917	$	11,952
Recurring Capital Expenditures(1) per Apartment Home - Same-Store	$	269	$	248	$	1,165	$	1,078

Recurring Capital Expenditures(1) - All Properties	$	3,499	$	3,035	$	15,211	$	13,476
Recurring Capital Expenditures(1) per Apartment Home - All Properties	$	279	$	233	$	1,165	$	1,041

Value Add(1)
Same-Store
Interior - Units	$	122	$	364	$	2,054	$	2,041
Common Areas and Exteriors	3,697		2,171		8,077		19,568
Work in Progress - net change	(237)		(854)		(46)		(2,379)
Total Value Add - Same-Store	$	3,582	$	1,681	$	10,085	$	19,230

All Properties
Interior - Units	$	265	$	1,390	$	4,185	$	3,081
Common Areas and Exteriors	3,762		2,608		8,990		25,553
Work in Progress - net change	(234)		(903)		(247)		(4,371)
Total Value Add - All Properties	$	3,793	$	3,095	$	12,928	$	24,263

Total Same-Store Capital Spend(2)
Capital Spend - Same-Store(2)	$	6,561	$	4,425	$	23,002	$	31,182
Capital Spend per Apartment Home - Same Store(2)	$	592	$	399	$	2,075	$	2,813

Acquisition and Other Capital Expenditures(1)
All Properties	$	1,476	$	1,164	$	4,935	$	12,161

Total Capital Spend
Total Capital Spend - All Properties	$	8,768	$	7,294	$	33,074	$	49,900
Total Capital Spend per Apartment Home - All Properties	$	700	$	561	$	2,533	$	3,854

(1)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.

(2)Includes value-add and excludes acquisition and other capital expenditures on same-store communities.


			S-16

CENTERSPACE

2026 Financial Outlook

(in thousands, except per share amounts)

Centerspace is providing guidance for 2026.


	Twelve Months Ended		2026 Full-Year Guidance Range
	December 31, 2025		Low			High
	Actual		Amount			Amount
Same-store growth (1)
Revenue	$	234,219	0.00		%	1.75		%

Controllable expenses	56,089		0.50		%	1.50		%
Non-controllable expenses	32,939		1.50		%	2.50		%
Total Expenses	$	89,028	1.00		%	2.00		%
Same-store NOI (1)(2)	$	145,191	(0.50)		%	2.00		%

Components of NOI(1)(2)
Same-store	$	145,191	$	144,500		$	148,100
Non-same-store	8,258		$	15,450		$	15,650
Other properties	2,369		$	2,400		$	2,600
Dispositions	11,571		—			—
Total NOI(2)	$	167,389	$	162,350		$	166,350


Other operating income and expenses

General and administrative and property management	(30,556)		(30,400)			(29,550)
Casualty loss	(816)		(1,650)			(1,550)

Non-real estate depreciation and amortization & partially owned entities	(378)		(350)			(300)
Non-controlling interest	(2,408)		—			—
Less gain on sale of real estate - partially owned entities	2,252		—			—
Add loss on sale of non real estate assets	(50)		$	—		$	—
Total other operating income and expenses	$	(31,956)	$	(32,400)		$	(31,400)

Interest expense	$	(44,884)	(41,750)			(41,150)
Interest and other income	3,311		2,600			2,700


FFO applicable to common shares and Units - diluted(2)	$	93,860	$	90,800		$	96,500

Non-core income and expenses
Non-cash casualty loss	$	537	$	950		$	850
Loss on extinguishment of debt	98		—			—
Interest rate swap amortization	407		—			—

Amortization of assumed debt	1,958		1,554			1,554


Legal and other costs related to strategic review	1,336		1,500			750
Other miscellaneous items	(507)		—			—
Total non-core income and expenses	$	3,829	$	4,004		$	3,154
Core FFO applicable to common shares and Units - diluted(2)	$	97,689	$	94,804		$	99,654

Net income (loss) per share - diluted	$	1.02	$	(0.49)		$	(0.19)
FFO per diluted share(2)	$	4.74	$	4.61		$	4.89
Core FFO per diluted share(2)	$	4.93	$	4.81		$	5.05
Weighted average shares outstanding - diluted	19,815		19,700			19,725

Additional Assumptions
Same-store recurring capital expenditures (per home)(1)	$	1,199	$	1,250		$	1,350
Value-add expenditures	$	12,928	2,500			12,500

(1)Amounts for the year ended December 31, 2025 reflect the 2026 same-store pool.

(2)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" in the Supplemental Financial and Operating Data" above and pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information. .


			S-17

Reconciliations of Net Income (Loss) Available to Common Shareholders to FFO and Core FFO

The following table presents reconciliations of net income (loss) available to common shareholders to FFO and Core FFO, which are non-GAAP financial measures described in greater detail under "Non-GAAP Financial Measures and Other Terms." They should not be considered as alternatives to net income or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO and Core FFO also do not represent cash generated from operating activities in accordance with GAAP, nor are they indicative of funds available to fund all cash needs, including the ability to service indebtedness or make distributions to shareholders. The outlook and projections provided below are based on current expectations and are forward-looking statements under applicable U.S. federal securities laws.


			Outlook
	Twelve Months Ended		Twelve Months Ended
	December 31, 2025		December 31, 2026
	Amount		Low		High
Net income (loss) available to common shareholders	$	17,101	$	(8,226)	$	(3,256)
Noncontrolling interests - Operating Partnership and Series E preferred units	2,969		(1,450)		(570)
Depreciation and amortization	113,231		100,597		100,397
Less depreciation - non real estate	(335)		(350)		(300)
Less depreciation - partially owned entities	(43)		—		—
Impairment of real estate	37,719		—		—
Gain on sale of real estate	(79,470)		—		—
Less gain on sale of real estate - partially owned entities	2,252		—		—
Less loss on sale of non real estate assets	(50)		—		—
Distributions to Series D preferred unitholders	486		229		229
FFO applicable to common shares and Units	$	93,860	$	90,800	$	96,500

Adjustments to Core FFO:
Non-cash casualty loss	537		950		850
Loss on extinguishment of debt	98		—		—



Interest rate swap amortization	407		—		—

Amortization of assumed debt	1,958		1,554		1,554



Legal and other costs related to strategic review	1,336		1,500		750
Other miscellaneous items	(507)		—		—
Core FFO applicable to common shares and Units	$	97,689	$	94,804	$	99,654

Net income (loss) per share - diluted	$	1.02	$	(0.49)	$	(0.19)
FFO per share - diluted	$	4.74	$	4.61	$	4.89
Core FFO per share - diluted	$	4.93	$	4.81	$	5.05

Reconciliations of Operating Income to Net Operating Income

Net operating income, or NOI, is a non-GAAP financial measure which the Company defines as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by sales of real estate and other investments, impairment, depreciation, amortization, financing, property management expenses, casualty losses, loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.


			Outlook
	12 Months Ended		12 Months Ended
	December 31, 2025		December 31, 2026
	Actual		Low		High
Operating income	$	64,537	$	29,703	$	34,853
Adjustments:
General and administrative and property management expenses	30,556		30,400		29,550
Casualty loss	816		1,650		1,550
Depreciation and amortization	113,231		100,597		100,397
Impairment of real estate	37,719		—		—
Gain on sale of real estate and other investments	(79,470)		—		—

Net operating income	$	167,389	$	162,350	$	166,350


			S-18

CENTERSPACE

NON-GAAP FINANCIAL MEASURES AND OTHER TERMS

Acquisition and Other Capital Expenditures

Acquisition and other non-routine capital expenditures represent capital additions contemplated in the underwriting at recently acquired communities. These amounts are considered when determining expected returns. Other capital expenditures includes casualty and other non-routine capital items including, but not limited to, tenant improvements, real estate special assessments, and capital expenditures incurred to dispose of properties. Casualty represents capitalized costs incurred in connection with the restoration of an apartment community after a casualty event.

Adjusted EBITDA

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt, gain/loss from involuntary conversion; and other non-routine items or items not considered core to business operations. The Company considers Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, financing costs, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP.

Average Monthly Rental Rate

Average monthly rental rate is scheduled rent divided by the total number of apartment homes.

Average Monthly Revenue per Occupied Home

Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.

Blended Lease Rate Growth

Blended lease rate growth is the weighted average rate change of new leases signed and renewal leases started within the given timeframe and the previous lease on the same unit.

Debt Service Coverage Ratio

Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within this Non-GAAP Financial Measures and Other Terms section.


	Three Months Ended										Twelve Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		12/31/2025		12/31/2024
Adjusted EBITDA	$	34,894	$	35,231	$	34,939	$	32,636	$	32,633	$	137,700	$	129,811

Interest Expense	11,537		12,989		10,719		9,622		9,782		44,867		37,225
Principal Amortization	1,939		2,000		1,853		1,906		1,881		7,698		6,860
Total Interest Expense and Principal Amortization	13,476		14,989		12,572		11,528		11,663		52,565		44,085
Distributions paid to Series C preferred shareholders and Series D preferred unitholders	57		109		160		160		160		486		5,461
Total Interest Expense, Principal Amortization, and preferred distributions	13,533		15,098		12,732		11,688		11,823		53,051		49,546

Debt Service Coverage Ratio	2.59		2.35		2.78		2.83		2.80		2.62		2.94

Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization	2.58		2.33		2.74		2.79		2.76		2.60		2.62


			S-19

Funds from Operations and Core Funds from Operations

The Company believes that FFO, which is a non-GAAP financial measure used as a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding its operating performance, primarily because its calculation does not assume that the value of real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation and amortization.

The Company uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit defines FFO as net income or loss calculated in accordance with GAAP, excluding:

•depreciation and amortization related to real estate;

•gains and losses from the sale of certain real estate assets;

•gains and losses from change in control;

•impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity; and

•similar adjustments for partially owned consolidated real estate entities.

The exclusion in Nareit’s definition of FFO of gains and losses from the sale of real estate assets and impairment write-downs helps to identify the operating results of the long-term assets that form the base of the Company's investments, and assists management and investors in comparing those operating results between periods.

Due to the limitations of the Nareit FFO definition, Centerspace has made certain interpretations in applying this definition. The Company believes that all such interpretations not specifically identified in the Nareit definition are consistent with this definition. Nareit’s FFO White Paper 2018 Restatement clarified that impairment write-downs of land related to a REIT’s main business are excluded from FFO and a REIT has the option to exclude impairment write-downs of assets that are incidental to its main business.

While FFO is widely used by Centerspace as a primary performance metric, not all real estate companies use the same definition of FFO or calculate FFO in the same way. Accordingly, FFO presented here is not necessarily comparable to FFO presented by other real estate companies. FFO should not be considered as an alternative to net income (loss) or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund all cash flow needs, including the ability to service indebtedness or make distributions to shareholders.

Core Funds from Operations (“Core FFO”) is FFO as adjusted for non-routine items or items not considered core to business operations. By further adjusting for items that are not considered part of core business operations, the Company believes that Core FFO provides investors with additional information to compare core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income (loss), or any other GAAP measurement of performance, but rather should be considered an additional supplemental measure. Core FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund the Company's cash needs, including its ability to service indebtedness or make distributions to shareholders. Core FFO is a non-GAAP and non-standardized financial measure that may be calculated differently by other REITs and should not be considered a substitute for operating results determined in accordance with GAAP.

Held For Sale

The Company classifies properties as held for sale when they meet the GAAP criteria, which include: (a) management commits to and initiates a plan to sell the asset; (b) the sale is probable and expected to be completed within one year under terms that are usual and customary for sales of such assets; and (c) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company generally considers these criteria met when the transaction has been approved by its Board of Trustees, there are no known significant contingencies related to the sale, and management believes it is probable that the sale will be completed within one year.


			S-20

Net Debt Divided by Adjusted EBITDA

Net debt is the total outstanding debt balance less cash and cash equivalents and net tax deferred proceeds held in restricted cash for exchanges under section 1031(b) of the Internal Revenue Code. Preferred equity is the sum of the book value of Series C preferred shares, when outstanding, and Series D preferred units outstanding. Adjusted EBITDA is annualized for periods less than one year. Net debt and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within this Non-GAAP Financial Measures and Other Terms section.


	Three Months Ended										Twelve Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		12/31/2025		12/31/2024
Total debt (1)	$	1,053,909	$	1,177,284	$	1,121,292	$	966,092	$	966,623	$	1,053,909	$	966,623
Less: cash and cash equivalents	12,833		12,896		12,378		11,916		12,030		12,833		12,030
Less: 1031 funds in restricted cash	—		50,941		—		—		—		—		—
Net debt	$	1,041,076	$	1,113,447	$	1,108,914	$	954,176	$	954,593	$	1,041,076	$	954,593

Adjusted EBITDA(2)	$	139,576	$	140,924	$	139,756	$	130,544	$	130,532	$	137,700	$	129,811
Net debt/Adjusted EBITDA	7.46		7.90		7.93		7.31		7.31		7.56		7.35

Preferred Equity	$	5,940	$	5,940	$	11,310	$	16,560	$	16,560	$	5,940	$	16,560
Net debt and preferred equity	$	1,047,016	$	1,119,387	$	1,120,224	$	970,736	$	971,153	$	1,047,016	$	971,153
Adjusted EBITDA(2)	$	139,576	$	140,924	$	139,756	$	130,544	$	130,532	$	137,700	$	129,811
Net debt and preferred equity/Adjusted EBITDA	7.50		7.94		8.02		7.44		7.44		7.60		7.48

(1)Excludes premiums, discounts, and deferred financing costs.

(2)Annualized for periods less than one year.

Net Operating Income

Net operating income, or NOI, is a non-GAAP financial measure which the Company defines as total real estate revenues less property operating expenses, including real estate taxes. The Company believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation and amortization, financing costs, property management expenses, casualty gains or losses, loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.

New Lease Rate Growth

New lease rate growth is the average rate change of new leases that were signed within the given timeframe and the previous lease on the same unit.

Non-stabilized Community

A non-stabilized community is a development community that is either currently under construction or undergoing lease-up or is a recent acquisition prior to reaching overall occupancy of 90%.

Payout Ratio (Core FFO per Diluted Share and Unit Basis)

Payout ratio (Core FFO per diluted share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per diluted share and unit. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Core FFO definition included within this Non-GAAP Financial Measures and Other Terms section.


	Three Months Ended															Twelve Months Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024			12/31/2025			12/31/2024
Common distribution per share and unit	$	0.77		$	0.77		$	0.77		$	0.77		$	0.75		$	3.08		$	3.00
Core FFO per common share and unit diluted	1.25			1.19			1.28			1.21			1.21			4.93			4.88
Payout ratio	61.6		%	64.7		%	60.2		%	63.6		%	62.0		%	62.5		%	61.5		%


			S-21

Recurring Capital Expenditures

Recurring capital expenditures represent expenditures necessary to help preserve the value of and maintain the functionality at communities. Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing items used to operate the communities such as appliances, mechanical equipment, flooring to roof replacement, paving, siding, and major landscaping.

Renewal Lease Rate Growth

Renewal lease rate growth is the average rate change of renewal leases that started within the given timeframe and the previous lease on the same unit.

Re-positioned Community

The Company defines a re-positioned community as having significant development and construction activity on existing buildings pursuant to an authorized plan, which has an impact on current operating results, occupancy and the ability to lease space with the intended result of improved community cash flow and competitive position through extensive unit and amenity upgrades. We categorize a re-positioned community as same-store when the development and construction activity has been completed, and operations have stabilized. This is typically reaching an overall occupancy of 90%. Not all communities undergoing value add are considered a re-positioned community.

Retention Rate

Retention rate is the percentage of leases expiring within the given timeframe that were converted to a term renewal.

Same-Store Controllable Expenses

The Company defines same-store controllable expenses as property operating expenses excluding real estate taxes and insurance. Same-store controllable expenses exclude real estate taxes and insurance, in order to provide a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP financial measure and should not be considered an alternative to total expenses or total property operating expenses and real estate taxes.

Scheduled Rental Revenue

Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.

Stabilized Community

The Company defines stabilized communities as past development lease-up or a recent acquisition reaching an overall occupancy of 90%. A re-positioned community is considered stabilized when substantial redevelopment activities are complete and operations have stabilized. This is typically reaching an overall occupancy of 90% occupancy or is consistent occupancy for 90 days.

Total Debt to Total Market Capitalization

Total debt to total market capitalization, a non-GAAP financial measure, is total debt not adjusted for unamortized deferred financing costs or unamortized debt premiums and discounts from the balance sheet divided by the sum of total debt from the balance sheet, market value of common shares, operating partnership units, and the as converted Series E preferred units, and book value of Series C preferred shares, when outstanding, and Series D preferred units outstanding at the end of the period. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP.


			S-22

Value Add

Value add represents expenditures that are expected to result in increased income generation or decreased expense growth over time to improve a community’s cash flow and competitive position. This includes elective capital expenditures such as full-scale renovations including new amenities, interior unit turn renovations, enhanced clubhouses and common area hallways and certain resource management initiatives including smart home automation as well as environmental and sustainability initiatives for higher rental levels or expense savings in their respective markets.

Weighted Average Occupancy

Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rental revenue. Scheduled rental revenue represents the value of all apartment homes, with occupied homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes. The Company believes that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy, and the calculation of weighted average occupancy may not be comparable to that disclosed by other REITs and other real estate companies.


			S-23

Source: View Original Filing on SEC EDGAR

FAQ

How did Centerspace (CSR) perform financially in 2025?

Centerspace returned to profitability in 2025, reporting net income of $22.96 million, or $1.02 per diluted share, compared with a net loss of $14.19 million, or $(1.27) per share, in 2024. Total NOI increased 6.1% to $167.4 million on higher same-store NOI and portfolio changes.

What were Centerspace’s 2025 FFO and Core FFO results?

In 2025, Centerspace generated FFO per diluted share of $4.74 and Core FFO per diluted share of $4.93, up from $4.49 and $4.88 respectively in 2024. Core FFO growth reflected stronger NOI, partly offset by higher interest and operating expenses, indicating slightly improved cash earnings power.

What portfolio acquisitions and sales did Centerspace (CSR) complete in 2025?

Centerspace acquired two apartment communities, Sugarmont and Railway Flats, for an aggregate $281.2 million, including $76.5 million of assumed mortgage debt. It also sold twelve non-core communities in Minnesota and one corporate office building for $215.5 million, sharpening its multifamily focus.

What is Centerspace’s balance sheet and liquidity position at December 31, 2025?

At year-end 2025, Centerspace reported $1.0539 billion of total debt (before premiums/discounts), with a weighted average interest rate of 3.64%. Liquidity totaled $267.9 million, including $255.1 million available on revolving credit lines and $12.8 million in cash and cash equivalents.

What dividend is Centerspace paying and what is the payout ratio?

Centerspace’s board declared a quarterly distribution of $0.77 per share/unit, or $3.08 annualized, for common shareholders and unitholders. For 2025, the payout ratio was 62.5% of Core FFO per diluted share and unit, indicating distributions covered by recurring cash earnings.

What guidance did Centerspace (CSR) provide for 2026 FFO and Core FFO?

For 2026, Centerspace guides FFO per diluted share to a range of $4.61–$4.89 and Core FFO per diluted share to $4.81–$5.05. The outlook assumes modest same-store NOI growth, same-store revenue growth of up to 1.75%, and same-store recurring capital spending of $1,250–$1,350 per home.

What is Centerspace’s strategic review process and its purpose?

In November, Centerspace’s board began a strategic review of alternatives with a stated focus on maximizing shareholder value. The process is ongoing with no deadline or definitive timetable, and there is explicitly no assurance it will result in a transaction or other particular strategic outcome.

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How did Centerspace (CSR) perform financially in 2025?

What were Centerspace’s 2025 FFO and Core FFO results?

What portfolio acquisitions and sales did Centerspace (CSR) complete in 2025?

What is Centerspace’s balance sheet and liquidity position at December 31, 2025?

What dividend is Centerspace paying and what is the payout ratio?

What guidance did Centerspace (CSR) provide for 2026 FFO and Core FFO?

What is Centerspace’s strategic review process and its purpose?

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Profit swing and portfolio moves at Centerspace (NYSE: CSR) in 2025

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REIT and cash-flow analyst neutral

FAQ

How did Centerspace (CSR) perform financially in 2025?

What were Centerspace’s 2025 FFO and Core FFO results?

What portfolio acquisitions and sales did Centerspace (CSR) complete in 2025?

What is Centerspace’s balance sheet and liquidity position at December 31, 2025?

What dividend is Centerspace paying and what is the payout ratio?

What guidance did Centerspace (CSR) provide for 2026 FFO and Core FFO?

What is Centerspace’s strategic review process and its purpose?

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