STOCK TITAN
  1. Home
  2. Sec-filings
  3. CSR
  4. [8-K] CENTERSPACE Reports Material Event

Centerspace (NYSE: CSR) revises 2026 outlook amid major property sales

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Centerspace reported Q2 2026 results reflecting ongoing portfolio repositioning and asset sales. Revenue was $65.8 million, down $2.8 million or 4.0% from Q2 2025, primarily due to prior-year sales of 12 communities. Net loss was $(0.07) per diluted share versus $(0.87) a year earlier, largely because of impairment recorded in the prior year.

FFO per diluted share was $1.20 compared with $1.24 in Q2 2025, and Core FFO per diluted share was $1.27 versus $1.28, a 0.8% decrease. Same-store results were stable, with Q2 same-store NOI up 0.3% year over year and weighted average occupancy at 96.0%. The company also repurchased 45,310 common shares at an average price of $55.54.

Centerspace continued its disposition and deleveraging strategy, selling a 176-home Denver community for $30.0 million in Q2 and, after quarter-end, seven additional communities totaling 786 homes for $139.8 million. Quarter-end liquidity was $242.6 million, including $234.0 million of revolver capacity. The updated 2026 outlook projects net income per diluted share of $6.42–$6.82, FFO of $4.37–$4.50, Core FFO of $4.58–$4.68, expected disposition proceeds of $315.0–$320.0 million, and potential special distributions of $50.0–$60.0 million.

Positive

  • None.

Negative

  • None.

Filing Explained

The 2026 FFO outlook is lower than the prior range while disposition proceeds are earmarked for line-credit paydown and working capital.

On August 3, 2026, Centerspace furnished second-quarter results and an updated 2026 outlook; two post-quarter-end property sales were completed on July 9, 2026 and July 14, 2026, with the company expecting to use the proceeds to pay down its line of credit and fund general working capital.

The completed sales are reported as closed transactions, while the $315.0 million–$320.0 million gross disposition range and $50.0 million–$60.0 million of potential special distributions remain outlook amounts rather than completed distributions.

On the same 2026 full-year basis, the updated FFO outlook of $4.37–$4.50 per diluted share is below the previous $4.65–$4.92 range, and updated Core FFO of $4.58–$4.68 is below the previous $4.81–$5.05 range; the company says the update incorporates expected dispositions and deleveraging.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 revenue $65.8 million Revenue decreased by $2.8 million or 4.0% versus Q2 2025
Q2 2026 net loss per diluted share $(0.07) per share Compared to net loss of $(0.87) per diluted share in Q2 2025
Q2 2026 FFO per diluted share $1.20 FFO per diluted share versus $1.24 in Q2 2025
Q2 2026 Core FFO per diluted share $1.27 Core FFO per diluted share decreased 0.8% from $1.28 in Q2 2025
Quarter-end liquidity $242.6 million Includes $234.0 million available under lines of credit and $8.6 million of cash
2026 FFO per share outlook $4.37–$4.50 Updated full-year 2026 guidance range for FFO per diluted share
Projected 2026 disposition proceeds $315.0–$320.0 million Gross proceeds from planned property dispositions in 2026
Net debt to Adjusted EBITDA 7.32x Net debt divided by Adjusted EBITDA as of June 30, 2026
Funds from Operations financial
"The tables below show Net Loss, Funds from Operations ("FFO")1, and Core FFO1"
Funds from operations (FFO) measures the cash a real estate-focused company generates from its core property operations by adjusting net income to add back non-cash expenses like building depreciation and removing one-time gains or losses from property sales. Investors use FFO like a household’s monthly take-home pay—it's a clearer view of ongoing cash available to pay dividends, maintain properties and fund growth than raw accounting profit.
Core FFO financial
"Core FFO per diluted share decreased 0.8% to $1.27, compared to $1.28"
Core FFO (Core Funds From Operations) is a real estate industry measure of a property owner's recurring cash earnings calculated by starting with net income and removing non-cash accounting items and one-time gains or losses so the number reflects ongoing operating performance. Investors use it like a trimmed-down paycheck: it helps compare cash-generating ability across periods and companies by focusing on the stable, repeatable income rather than temporary or accounting-driven swings.
Net operating income financial
"Same-store revenues and expenses remained relatively unchanged with a 0.3% increase in same-store NOI"
Net operating income is the profit a business makes from its core operations after subtracting the costs directly related to running those operations, but before accounting for taxes, interest, or other expenses. It shows how efficiently a company is generating income from its main activities. Investors use this figure to assess the company's operational performance and profitability.
Adjusted EBITDA financial
"Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute"
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.
same-store controllable expenses financial
"Same-store controllable expenses is a non-GAAP measure"
Debt service coverage ratio financial
"Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense"
Debt service coverage ratio measures how many times a company's available cash flow can pay its scheduled debt payments (interest plus principal). Think of it like checking how many months of take-home pay it would take to cover your mortgage and loan bills; a higher number means a bigger cushion against missed payments. Investors use it to gauge credit risk, the likelihood of default, and whether a company can afford dividends or new borrowing.
Revenue $65.8 million (Q2 2026) Decreased by $2.8 million or 4.0% from $68.5 million in Q2 2025
Net loss per diluted share $(0.07) (Q2 2026) Compared to net loss of $(0.87) per diluted share in Q2 2025, primarily due to prior-year impairment
FFO per diluted share $1.20 (Q2 2026) Compared to $1.24 per diluted share in Q2 2025
Core FFO per diluted share $1.27 (Q2 2026) Decreased 0.8% from $1.28 per diluted share in Q2 2025
Same-store NOI Q2 2026 Increased 0.3% versus Q2 2025
Guidance

For full-year 2026, Centerspace projects net income per diluted share of $6.42–$6.82, FFO of $4.37–$4.50, and Core FFO of $4.58–$4.68, assuming $315.0–$320.0 million of disposition proceeds and same-store recurring capital expenditures of $1,250–$1,350 per home.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

What were Centerspace (CSR) earnings per share in Q2 2026?
Centerspace reported a net loss of $0.07 per diluted share in Q2 2026, with FFO of $1.20 and Core FFO of $1.27 per diluted share. These REIT measures adjust for depreciation, gains or losses on sales, and other non-core items.

How did Centerspace (CSR) revenue perform in Q2 2026 versus last year?
Q2 2026 revenue was $65.8 million, a decrease of $2.8 million or 4.0% from $68.5 million in Q2 2025. Management attributes this decline primarily to the impact of previously completed sales of 12 apartment communities.

What apartment community sales has Centerspace (CSR) completed in 2026 so far?
In Q2 2026, Centerspace sold a 176-home Denver community for $30.0 million. After quarter-end, it disposed of five Rapid City communities (474 homes) for $66.0 million and two Minneapolis communities (312 homes) for $73.8 million, with proceeds expected to reduce its credit line and support working capital.

What is Centerspace’s (CSR) updated 2026 FFO and earnings guidance?
For 2026, Centerspace guides to FFO per diluted share of $4.37–$4.50 and Core FFO of $4.58–$4.68. Net income per diluted share is projected at $6.42–$6.82, reflecting expected gains on asset sales and the company’s deleveraging plan.

What liquidity and leverage levels does Centerspace (CSR) report at June 30, 2026?
As of June 30, 2026, Centerspace had $242.6 million of total liquidity, comprising $234.0 million available on its credit lines and $8.6 million of cash. Total debt to total market capitalization was 48.0%, and net debt to Adjusted EBITDA stood at 7.32x.

What disposition and capital spending assumptions guide Centerspace’s (CSR) 2026 outlook?
The 2026 outlook assumes $315.0–$320.0 million of gross disposition proceeds, same-store recurring capital expenditures of $1,250–$1,350 per home, and $3.5–$6.0 million of value-add spending. It also includes potential special distributions totaling $50.0–$60.0 million.
0000798359false00007983592026-08-032026-08-03



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): August 3, 2026
 
CENTERSPACE
(Exact name of Registrant as specified in its charter)
North Dakota001-3562445-0311232
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Shares of Beneficial Interest, no par valueCSRNew 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 August 3, 2026, announcing certain financial and operational results for the three and six months ended June 30, 2026. 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 the earnings release furnished as Exhibit 99.1 under Item 9.01, 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
NumberDescription
99.1
Earnings Release and Supplemental Operating and Financial Data, dated August 3, 2026.
104Cover 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: August 3, 2026President and Chief Executive Officer



Exhibit 99.1
q2_2026colora.jpg


Earnings Release
cs-centered_bluea.jpg  
Centerspace Reports Second Quarter 2026 Financial & Operating Results and Updates Financial Outlook Due to Disposition Activity
MINNEAPOLIS, MN, August 3, 2026 – Centerspace (NYSE: CSR) (the “Company”) announced today its financial and operating results for the three and six months ended June 30, 2026. The tables below show Net Loss, Funds from Operations (“FFO”)1, and Core FFO1, all on a per diluted share basis, for the three and six months ended June 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 June 30, 2026, March 31, 2026, and June 30, 2025 and the six months ended June 30, 2026 and 2025.
Three Months Ended June 30,Six Months Ended June 30,
Per Common Share2026202520262025
Net loss - diluted
$(0.07)$(0.87)$(0.83)$(1.09)
FFO - diluted(1)
$1.20 $1.24 $2.27 $2.42 
Core FFO - diluted(1)
$1.27 $1.28 $2.39 $2.50 
Year-Over-Year
Comparison		Sequential
Comparison		YTD Comparison
Same-Store Results(2)
Q2 2026 vs. Q2 2025
Q2 2026 vs. Q1 2026
2026 vs. 2025
Revenues0.1%1.1%—%
Expenses(0.1)%(4.4)%2.0%
NOI(1)
0.3%4.8%(1.3)%
Three months endedSix months ended
Same-Store Results(2)
June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Weighted Average Occupancy96.0%95.4%95.9%95.7%95.9%
Effective New Lease Rate Growth
(0.6)%(2.5)%1.5%(1.4)%0.2%
Effective Renewal Lease Rate Growth
3.4%2.8%2.6%3.2%2.8%
Effective Blended Lease Rate Growth (3)
1.8%—%2.2%1.2%1.6%
Retention Rate61.3%54.0%62.2%58.9%60.0%
(1)NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures refer to “Non-GAAP Financial Measures and Reconciliations” and “Non-GAAP Financial Measures and Other Terms” in the Supplemental Financial and Operating Data below.
(2)Same-store results are updated for annual composition change including acquisition, disposition, changes in held for sale classification, and repositioning activity. The current same-store results include 44 apartment communities. During the six months ended June 30, 2026, we reclassified 13 apartment communities from same-store to held for sale and disposed of one apartment community. Refer to “Non-GAAP Financial Measures and Reconciliations” in Supplemental Financial and Operating Data within.
(3)Effective blended lease rate growth is weighted by lease count.
Overview of the Second Quarter
•Disposed of an apartment community consisting of 176 homes in Denver, Colorado for an aggregate sales price of $30.0 million;
•Revenue decreased by $2.8 million or 4.0% to $65.8 million, compared to $68.5 million for the same period of the prior year, primarily due to the sale of 12 apartment communities in the prior year;
1

•Same-store revenues and expenses remained relatively unchanged with a 0.3% increase in same-store NOI compared to the same period of the prior year;
•Net loss was $0.07 per diluted share, compared to net loss of $0.87 per diluted share for the same period of the prior year primarily due to impairment recognized in the prior year;
•Core FFO per diluted share decreased 0.8% to $1.27, compared to $1.28 for the same period of the prior year, primarily due to the sale of 12 apartment communities in the prior year, offset by increased NOI from non-same-store communities and decreased casualty loss; and
•Repurchased 45,310 common shares for an average of $55.54 per share.
Balance Sheet
At the end of the second quarter, Centerspace had $242.6 million of total liquidity on its balance sheet, consisting of $234.0 million available under lines of credit and cash and cash equivalents of $8.6 million.
Subsequent Events
On July 9, 2026, Centerspace completed the disposition of five apartment communities, consisting of 474 homes, located in Rapid City, South Dakota, for an aggregate sale price of $66.0 million.
On July 14, 2026, Centerspace completed the disposition of two apartment communities, consisting of 312 homes, located in Minneapolis, Minnesota, with associated commercial space and tax increment financing note receivable for an aggregate sale price of $73.8 million.
The Company expects to use the proceeds from these dispositions to paydown its line of credit and for general working capital purposes.
Updated 2026 Financial Outlook
Centerspace updated its 2026 financial outlook. The updated outlook includes the impact of expected dispositions and the deleveraging plan. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2026 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
Updated Outlook for 2026(1)
LowHigh
Net income per Share – diluted$6.42$6.82
Same-Store Growth
Revenue0.00%1.00%
Expenses1.50%2.50%
NOI(1.00)%0.00%
FFO per Share – diluted$4.37$4.50
Core FFO per Share – diluted$4.58$4.68
(1)Updated same-store outlook excludes 13 apartment communities designated as held for sale as of June 30, 2026 and one community disposed during the three months ended June 30, 2026.
Additional assumptions:
•Same-store recurring capital expenditures of $1,250 per home to $1,350 per home
•Value-add expenditures of $3.5 million to $6.0 million
•Gross proceeds from dispositions of $315.0 million to $320.0 million
•Potential special distributions to common shareholders and operating partnership unitholders of $50.0 million to $60.0 million
Previous Outlook for 2026(1)
LowHigh
FFO per Share – diluted$4.65$4.92
Core FFO per Share – diluted$4.81$5.05
(1)Previous same-store information is not comparable due to dispositions and apartment communities designated as held for sale and accordingly is not included.
2

Note: FFO, Core FFO. and NOI are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to “2026 Financial Outlook” in the Supplemental Financial and Operating Data within.
Earnings Call
Management will host a conference call to discuss those results on Tuesday, August 4, 2026, at 10:00 a.m. Eastern Time.
Interested parties may access the conference call via the following:
Live Webcast: https://events.q4inc.com/attendee/119929565
Operator Assisted Dial-In: 1-833-461-5787
Meeting ID: 119929565
Replay Details: Following the conclusion of the earnings call, a replay of the webcast will be hosted at ir.centerspacehomes.com and at https://events.q4inc.com/attendee/119929565 for one year.
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended June 30, 2026 included herein (“Supplemental Information”) is available in the Investors section on Centerspace’s website at https://www.centerspacehomes.com or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.  
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2026, Centerspace owned 60 apartment communities consisting of 12,090 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a Top Workplace in 2026 by USA Today and for the seventh consecutive year in 2026 by the Minnesota Star Tribune. For more information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company's current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions, or other items related to the future. Forward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “assumes,” “may,” “projects,” “outlook,” “future,” and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission (“SEC”), including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, in its subsequent quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. In addition, such risks, uncertainties, and other factors include, but are not limited to, the ability of the Company to complete its proposed dispositions on a timely basis, or at all, risks that the Company's completed or proposed dispositions disrupt current plans and operations; the anticipated costs related to the Company's recently completed and proposed dispositions; the ability of the Company to realize the anticipated benefits of its recently completed and proposed dispositions and the intended use of proceeds therefrom, as well as the Company's strategic review. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
3

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
4

Supplemental Financial and Operating Data
Table of Contents
June 30, 2026
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 Revised Financial Outlook
S-17
Non-GAAP Financial Measures and Other Terms
S-19


CENTERSPACE
COMMON SHARE DATA (NYSE: CSR)
Three Months Ended
June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025
High closing price$68.89 $67.00 $67.73 $61.09 $65.22 
Low closing price$54.89 $57.05 $57.41 $53.18 $56.21 
Average closing price$63.04 $62.88 $62.84 $57.79 $61.34 
Closing price at end of quarter$56.19 $57.45 $66.72 $58.90 $60.19 
Common share distributions – annualized$3.08 $3.08 $3.08 $3.08 $3.08 
Closing price dividend yield – annualized
5.5 %5.4 %4.6 %5.2 %5.1 %
Closing common shares outstanding (thousands)
16,792 16,803 16,761 16,703 16,757 
Closing limited partnership units outstanding (thousands)
882 901 920 963 968 
Closing Series E preferred units, as converted (thousands)
1,878 1,884 1,892 1,894 1,898 
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)
19,552 19,588 19,573 19,560 19,623 
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units and Series E preferred units, as converted (thousands)
$1,098,627 $1,125,331 $1,305,911 $1,152,084 $1,181,108 

S-1


CENTERSPACE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands)
Three Months EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
REVENUE$65,782 $65,069 $66,621 $71,399 $68,549 $130,851 $135,642 
EXPENSES
Property operating expenses, excluding real estate taxes17,625 18,242 18,496 21,210 18,853 35,867 37,921 
Real estate taxes7,022 7,332 6,140 7,165 7,678 14,354 15,341 
Property management expense2,094 2,379 2,323 2,489 2,393 4,473 4,826 
Casualty loss, net of recoveries(206)(21)(242)127 399 (227)931 
Depreciation and amortization25,075 26,498 29,424 29,056 27,097 51,573 54,751 
Impairment of real estate investments— 9,700 14,500 8,676 14,543 9,700 14,543 
General and administrative expenses5,659 6,332 6,542 4,997 4,382 11,991 9,379 
TOTAL EXPENSES$57,269 $70,462 $77,183 $73,720 $75,345 $127,731 $137,692 
Gain (loss) on sale of real estate and other investments
271 — (61)79,531 — 271 — 
Operating income (loss)
8,784 (5,393)(10,623)77,210 (6,796)3,391 (2,050)
Interest expense(10,623)(10,470)(11,536)(12,989)(10,724)(21,093)(20,359)
Loss on extinguishment of debt— — (95)(3)— — — 
Interest and other income
709 890 776 1,190 735 1,599 1,443 
NET INCOME (LOSS)
$(1,130)$(14,973)$(21,478)$65,408 $(16,785)$(16,103)$(20,966)
Distributions to Series D preferred unitholders(58)(57)(57)(109)(160)(115)(320)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units
168 2,141 3,102 (9,197)2,483 2,309 3,126 
Net income attributable to noncontrolling interests – consolidated real estate entities
— — — (2,319)(53)— (89)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
$(1,020)$(12,889)$(18,433)$53,783 $(14,515)$(13,909)$(18,249)
Per Share Data - Basic
Net income (loss) per common share – basic
$(0.07)$(0.77)$(1.10)$3.22 $(0.87)$(0.83)$(1.09)
Per Share Data - Diluted
Net income (loss) per common share – diluted
$(0.07)$(0.77)$(1.10)$3.19 $(0.87)$(0.83)$(1.09)
S-2

CENTERSPACE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
6/30/20263/31/202612/31/20259/30/20256/30/2025
ASSETS
Real estate investments
Property owned$2,261,220 $2,518,162 $2,524,020 $2,536,166 $2,422,435 
Less accumulated depreciation(605,402)(685,769)(660,124)(638,217)(612,827)
Total real estate investments1,655,818 1,832,393 1,863,896 1,897,949 1,809,608 
Cash and cash equivalents8,560 7,555 12,833 12,896 12,378 
Restricted cash1,883 2,710 2,818 52,943 5,815 
Other assets38,993 44,928 46,620 47,516 48,072 
Assets held for sale, net135,111 — — 86,302 137,366 
TOTAL ASSETS$1,840,365 $1,887,586 $1,926,167 $2,097,606 $2,013,239 
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses$51,370 $55,872 $59,247 $66,124 $56,070 
Revolving lines of credit176,000 150,429 154,925 222,500 216,030 
Notes payable, net299,608 299,594 299,579 299,564 299,550 
Mortgages payable, net513,975 565,611 566,660 622,074 595,668 
Liabilities held for sale, net1,460 — — 420 1,029 
TOTAL LIABILITIES$1,042,413 $1,071,506 $1,080,411 $1,210,682 $1,168,347 
SERIES D PREFERRED UNITS$5,940 $5,940 $5,940 $5,940 $11,310 
EQUITY
Common Shares of Beneficial Interest1,369,753 1,370,461 1,368,834 1,366,980 1,369,376 
Accumulated distributions in excess of net income(689,530)(675,493)(649,678)(618,341)(659,266)
Accumulated other comprehensive loss— — — — (58)
Total shareholders’ equity$680,223 $694,968 $719,156 $748,639 $710,052 
Noncontrolling interests – Operating Partnership and Series E preferred units 111,789 115,172 120,660 128,038 121,439 
Noncontrolling interests – consolidated real estate entities— — — 4,307 2,091 
TOTAL EQUITY$792,012 $810,140 $839,816 $880,984 $833,582 
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY$1,840,365 $1,887,586 $1,926,167 $2,097,606 $2,013,239 

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 six months ended June 30, 2026 and 2025, 44 apartment communities were same-store and three apartment communities and two apartment community were non-same-store, respectively. Communities designated as held for sale are included in “Non-same-store and held for sale.” For the six months ended June 30, 2026, 13 apartment communities were designated as held for sale and included in “Non-same-store and held for sale.” Sold communities are included in “Dispositions,” while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties. During the three and six months ended June 30, 2026, the Company disposed of one apartment community consisting of 176 apartment homes. During the year ended December 31, 2025, the Company disposed of 12 apartment communities consisting of 1,511 apartment homes.
S-4

CENTERSPACE
RECONCILIATIONS OF OPERATING INCOME (LOSS) TO NET OPERATING INCOME (1)
(dollars in thousands)
Three Months EndedSequentialYear-Over-Year
6/30/20263/31/20266/30/2025$ Change% Change$ Change% Change
Operating income (loss)$8,784 $(5,393)$(6,796)$14,177 (262.9)%$15,580 (229.3)%
Adjustments:
Property management expenses2,094 2,379 2,393 (285)(12.0)%(299)(12.5)%
Casualty loss, net of recoveries(206)(21)399 (185)881.0 %(605)(151.6)%
Depreciation and amortization25,075 26,498 27,097 (1,423)(5.4)%(2,022)(7.5)%
Impairment of real estate investments— 9,700 14,543 (9,700)(100.0)%(14,543)(100.0)%
General and administrative expenses5,659 6,332 4,382 (673)(10.6)%1,277 29.1 %
Gain on sale of real estate and other investments
(271)— — (271)N/A(271)N/A
Net operating income(1)
$41,135 $39,495 $42,018 $1,640 4.2 %$(883)(2.1)%
Revenue
Same-store$49,996 $49,430 $49,931 $566 1.1 %$65 0.1 %
Non-same-store and held for sale14,212 13,925 9,909 287 *4,303 *
Other properties917 911 779 6 0.7 %138 17.7 %
Dispositions657 803 7,930 (146)*(7,273)*
Total65,782 65,069 68,549 713 1.1 %(2,767)(4.0)%
Property operating expenses, including real estate taxes
Same-store18,790 19,647 18,809 (857)(4.4)%(19)(0.1)%
Non-same-store and held for sale5,190 5,275 3,797 (85)*1,393 *
Other properties295 302 237 (7)(2.3)%58 24.5 %
Dispositions372 350 3,688 22 *(3,316)*
Total24,647 25,574 26,531 (927)(3.6)%(1,884)(7.1)%
Net operating income(1)
Same-store31,206 29,783 31,122 1,423 4.8 %84 0.3 %
Non-same-store and held for sale9,022 8,650 6,112 372 *2,910 *
Other properties622 609 542 13 2.1 %80 14.8 %
Dispositions285 453 4,242 (168)*(3,957)*
Total$41,135 $39,495 $42,018 $1,640 4.2 %$(883)(2.1)%
(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.
* Not a meaningful percentage.

S-5

(dollars in thousands)
Six Months Ended June 30,
20262025$ Change% Change
Operating income (loss)$3,391 $(2,050)$5,441 (265.4)%
Adjustments:
Property management expenses4,473 4,826 (353)(7.3)%
Casualty loss, net of recoveries(227)931 (1,158)(124.4)%
Depreciation and amortization51,573 54,751 (3,178)(5.8)%
Impairment of real estate investments9,700 14,543 (4,843)(33.3)%
General and administrative expenses11,991 9,379 2,612 27.8 %
Gain on sale of real estate and other investments
(271)— (271)N/A
Net operating income(1)
$80,630 $82,380 $(1,750)(2.1)%
Revenue
Same-store$99,426 $99,464 $(38)— %
Non-same-store and held for sale28,137 18,823 9,314 *
Other properties1,828 1,580 248 15.7 %
Dispositions1,460 15,775 (14,315)*
Total130,851 135,642 (4,791)(3.5)%
Property operating expenses, including real estate taxes
Same-store38,437 37,685 752 2.0 %
Non-same-store and held for sale10,467 7,617 2,850 *
Other properties596 564 32 5.7 %
Dispositions721 7,396 (6,675)*
Total50,221 53,262 (3,041)(5.7)%
Net operating income(1)
Same-store60,989 61,779 (790)(1.3)%
Non-same-store and held for sale17,670 11,206 6,464 *
Other properties1,232 1,016 216 21.3 %
Dispositions739 8,379 (7,640)*
Total$80,630 $82,380 $(1,750)(2.1)%
(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.
* Not a meaningful percentage.

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 June 30,Six Months Ended June 30,
20262025$ Change% Change20262025$ Change% Change
Same-store controllable expenses
On-site compensation(2)
$5,096 $5,053 $43 0.9 %$10,037 $9,996 $41 0.4 %
Repairs and maintenance(3)
2,612 2,731 (119)(4.4)%5,019 4,871 148 3.0 %
Utilities2,625 2,571 54 2.1 %6,066 5,883 183 3.1 %
Administrative and marketing1,282 1,237 45 3.6 %2,616 2,323 293 12.6 %
Total$11,615 $11,592 $23 0.2 %$23,738 $23,073 $665 2.9 %
Same-store non-controllable expenses
Real estate taxes$5,361 $5,553 $(192)(3.5)%$10,989 $11,150 $(161)(1.4)%
Insurance1,814 1,664 150 9.0 %3,710 3,462 248 7.2 %
Total$7,175 $7,217 $(42)(0.6)%$14,699 $14,612 $87 0.6 %
Total property operating expenses, including real estate taxes - same-store$18,790 $18,809 $(19)(0.1)%$38,437 $37,685 $752 2.0 %
Property operating expenses, including real estate taxes - non-same-store and held for sale$5,190 $3,797 $1,393 *$10,467 $7,617 $2,850 *
Property operating expenses, including real estate taxes - other properties295 237 58 24.5 %596 564 32 5.7 %
Property operating expenses, including real estate taxes - dispositions372 3,688 (3,316)*721 7,396 (6,675)*
Total property operating expenses, including real estate taxes$24,647 $26,531 $(1,884)(7.1)%$50,221 $53,262 $(3,041)(5.7)%
(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.
* Not a meaningful percentage.
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 EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
Funds from Operations(1)
Net income (loss) available to common shareholders
$(1,020)$(12,889)$(18,433)$53,783 $(14,515)$(13,909)$(18,249)
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units(168)(2,141)(3,102)9,197 (2,483)(2,309)(3,126)
Depreciation and amortization25,075 26,498 29,424 29,056 27,097 51,573 54,751 
Less depreciation – non real estate(67)(67)(83)(85)(84)(134)(167)
Less depreciation – partially owned entities— — — — (21)— (43)
Impairment of real estate investments— 9,700 14,500 8,676 14,543 9,700 14,543 
(Gain) loss on sale of real estate
(271)— 61 (79,531)— (271)— 
Less gain on sale of real estate - partially owned entities— — 1 2,251 — — — 
Add loss on sale of non real estate assets— — (50)— — — — 
FFO applicable to common shares and Units$23,549 $21,101 $22,318 $23,347 $24,537 $44,650 $47,709 
Adjustments to Core FFO(1):
Non-cash casualty loss (recovery)
(65)(193)229 (123)149 (258)431 
Loss on extinguishment of debt— — 95 3 — — — 
Interest rate swap amortization— — — 58 174 — 349 
Amortization of assumed debt489 365 593 530 418 854 835 
Severance and related costs880 — — — — 880 — 
Legal and other costs related to strategic review127 977 1,336 — — 1,104 — 
Other miscellaneous items(2)
— (209)(4)(455)19 (209)(48)
Core FFO applicable to common shares and Units$24,980 $22,041 $24,567 $23,360 $25,297 $47,021 $49,276 
FFO applicable to common shares and Units$23,549 $21,101 $22,318 $23,347 $24,537 $44,650 $47,709 
Distributions to Series D preferred unitholders58 57 57 109 160 115 320 
FFO applicable to common shares and Units - diluted$23,607 $21,158 $22,375 $23,456 $24,697 $44,765 $48,029 
Core FFO applicable to common shares and Units$24,980 $22,041 $24,567 $23,360 $25,297 $47,021 $49,276 
Distributions to Series D preferred unitholders58 57 57 109 160 115 320 
Core FFO applicable to common shares and Units - diluted$25,038 $22,098 $24,624 $23,469 $25,457 $47,136 $49,596 
Per Share Data
Net income (loss) per share and Unit - diluted$(0.07)$(0.77)$(1.10)$3.19 $(0.87)$(0.83)$(1.09)
FFO per share and Unit - diluted(1)
$1.20 $1.07 $1.14 $1.19 $1.24 $2.27 $2.42 
Core FFO per share and Unit - diluted(1)
$1.27 $1.12 $1.25 $1.19 $1.28 $2.39 $2.50 
Weighted average shares - basic for net income (loss)16,810 16,775 16,719 16,726 16,741 16,792 16,734 
Effect of operating partnership Units for net income, FFO and Core FFO895 914 948 966 971 905 975 
Effect of Series D preferred units for net income, FFO and Core FFO82 82 82 155 228 82 228 
Effect of Series E preferred units for net income, FFO and Core FFO1,883 1,892 1,894 1,898 1,905 1,888 1,906 
Effect of dilutive restricted stock units and stock options for net income, FFO and Core FFO29 29 56 26 25 29 25 
Weighted average shares and Units for net income, FFO and Core FFO - diluted19,699 19,692 19,699 19,771 19,870 19,696 19,868 
(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.
S-8

CENTERSPACE
RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS
TO ADJUSTED EBITDA(1)
(in thousands)
Three Months EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
Adjusted EBITDA
Net income (loss) attributable to controlling interests
$(1,020)$(12,889)$(18,433)$53,783 $(14,515)$(13,909)$(18,249)
Adjustments:
Distributions to Series D preferred unitholders58 57 57 109 160 115 320 
Noncontrolling interests – Operating Partnership and Series E preferred units(168)(2,141)(3,102)9,197 (2,483)(2,309)(3,126)
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units
$(1,130)$(14,973)$(21,478)$63,089 $(16,838)$(16,103)$(21,055)
Adjustments:
Interest expense10,623 10,470 11,537 12,989 10,719 21,093 20,341 
Loss on extinguishment of debt— — 95 3 — — — 
Depreciation and amortization related to real estate investments25,075 26,498 29,424 29,056 27,076 51,573 54,708 
Impairment of real estate investments— 9,700 14,500 8,676 14,543 9,700 14,543 
Non-cash casualty loss (recovery) (65)(193)229 (123)149 (258)431 
Interest income(658)(644)(757)(724)(729)(1,302)(1,345)
(Gain) loss on sale of real estate
(271)— 12 (77,280)— (271)— 
Severance related costs880 — — — — 880 — 
Legal and other costs related to strategic review127 977 1,336 — — 1,104 — 
Other miscellaneous items(2)
— (209)(4)(455)19 (209)(48)
Adjusted EBITDA$34,581 $31,626 $34,894 $35,231 $34,939 $66,207 $67,575 
(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
by Expiration
Future Maturities of Debt
Secured Fixed
Debt		Unsecured Fixed
Debt		Unsecured Variable DebtTotal
Debt		% of
Total Debt
Weighted
Average Interest Rate(1)
2026 (remainder)$— $— $— $— — %— %
202746,330 — — 46,330 4.5 %3.47 %
202860,000 50,000 176,000 286,000 28.0 %4.19 %
202919,198 75,000 — 94,198 9.2 %3.94 %
2030— 85,000 — 85,000 8.3 %2.62 %
Thereafter419,619 90,000 — 509,619 50.0 %3.45 %
Subtotal545,147 300,000 176,000 1,021,147 100.0 %3.63 %
Premiums and discounts, net(28,533)— — (28,533)
Deferred financing costs, net(2,639)(392)— (3,031)
Total debt$513,975 $299,608 $176,000 $989,583 
(1)Weighted average interest rate of debt that matures during the year.

6/30/20263/31/202612/31/20259/30/20256/30/2025
Debt Balances Outstanding
Secured fixed rate - mortgages payable - other$346,297 $398,567 $400,134 $455,934 $406,412 
Secured fixed rate - mortgages payable - Fannie Mae credit facility198,850 198,850 198,850 198,850 198,850 
Unsecured variable rate line of credit176,000 150,429 154,925 222,500 216,030 
Unsecured senior notes300,000 300,000 300,000 300,000 300,000 
Subtotal(1)
$1,021,147 $1,047,846 $1,053,909 $1,177,284 $1,121,292 
Premiums and discounts, net(28,533)(29,023)(29,387)(29,763)(6,661)
Deferred financing costs, net(3,031)(3,189)(3,358)(3,383)(3,383)
Debt total$989,583 $1,015,634 $1,021,164 $1,144,138 $1,111,248 
Weighted average interest rates
Mortgages payable - other rate3.94 %3.88 %3.88 %3.87 %4.03 %
Mortgages payable - Fannie Mae credit facility rate2.78 %2.78 %2.78 %2.78 %2.78 %
Lines of credit rate(2)
4.87 %4.88 %5.12 %5.51 %5.75 %
Unsecured senior notes rate3.12 %3.12 %3.12 %3.12 %3.12 %
Total debt3.63 %3.60 %3.64 %3.80 %3.90 %
(1)Excludes premiums, discounts, and deferred financing costs.
(2)Interest rate excludes any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps, as shown in the table below.
Three Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/2025
Reclassified from Accumulated OCI into interest expense$— $— $— $58 $174 
S-10

CENTERSPACE 
CAPITAL ANALYSIS 
(in thousands, except per share and unit amounts)
Three Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/2025
Equity Capitalization
Common shares outstanding16,792 16,803 16,761 16,703 16,757 
Operating partnership units outstanding882 901 920 963 968 
Series E preferred units (as converted)1,878 1,884 1,892 1,894 1,898 
Total common shares, Units, and Series E preferred units, as converted, outstanding19,552 19,588 19,573 19,560 19,623 
Market price per common share (closing price at end of period)$56.19 $57.45 $66.72 $58.90 $60.19 
Equity capitalization-common shares and Units
$1,098,627 $1,125,331 $1,305,911 $1,152,084 $1,181,108 
Series D preferred units$5,940 $5,940 $5,940 $5,940 $11,310 
Debt Capitalization
Total debt(1)
$1,021,147 $1,047,846 $1,053,909 $1,177,284 $1,121,292 
Total market capitalization
$2,125,714 $2,179,117 $2,365,760 $2,335,308 $2,313,710 
Total debt to total market capitalization(2)
48.0 %48.1 %44.5 %50.4 %48.5 %
(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 EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
Debt service coverage ratio(1)
2.86  x2.63  x2.59  x2.35  x2.78  x2.74  x2.80  x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization(1)
2.84  x2.62  x2.58  x2.33  x2.74  x2.73  x2.77  x
Net debt/Adjusted EBITDA(1)
7.32  x8.22  x7.46  x7.90  x7.93  x7.65  x8.21  x
Net debt and preferred equity/Adjusted EBITDA(1)
7.36  x8.27  x7.50  x7.94  x8.02  x7.69  x8.29  x
Distribution Data
Common shares and Units outstanding at record date (in thousands)
17,685 17,692 17,679 17,662 17,717 17,685 17,717 
Total common distribution declared (in thousands)
$13,618 $13,624 $13,613 $13,600 $13,642 $27,242 $27,275 
Common distribution per share and Unit
$0.77 $0.77 $0.77 $0.77 $0.77 $1.54 $1.54 
Payout ratio (FFO per share and Unit basis)
Payout ratio (Core FFO per diluted share and unit basis)(1)
60.6 %68.8 %61.6 %64.7 %60.2 %64.4 %61.6 %
(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 SECOND QUARTER COMPARISONS
(in thousands, except property data amounts and percentages)

Apartment Homes IncludedRevenuesExpenses
NOI(3)
RegionsQ2 2026Q2 2025% ChangeQ2 2026Q2 2025% ChangeQ2 2026Q2 2025% Change
Denver, CO1,801 $10,935 $11,585 (5.6)%$4,133 $4,351 (5.0)%$6,802 $7,234 (6.0)%
Minneapolis, MN3,433 18,141 17,780 2.0 %7,053 6,964 1.3 %11,088 10,816 2.5 %
Boulder/Ft. Collins, CO559 3,367 3,472 (3.0)%1,174 1,162 1.0 %2,193 2,310 (5.1)%
North Dakota(1)
865 3,969 3,754 5.7 %1,404 1,378 1.9 %2,565 2,376 8.0 %
Omaha, NE872 3,861 3,771 2.4 %1,483 1,499 (1.1)%2,378 2,272 4.7 %
Rochester, MN1,129 6,369 6,271 1.6 %2,409 2,319 3.9 %3,960 3,952 0.2 %
Other Mountain West(2)
748 3,354 3,298 1.7 %1,134 1,136 (0.2)%2,220 2,162 2.7 %
Same-Store Total(5)
9,407 $49,996 $49,931 0.1 %$18,790 $18,809 (0.1)%$31,206 $31,122 0.3 %


% of NOI
Weighted Average Occupancy (4)
Average Monthly
Rental Rate (4)
Average Monthly
Revenue per Occupied Home (4)
RegionsQ2 2026Q2 2025GrowthQ2 2026Q2 2025% ChangeQ2 2026Q2 2025% Change
Denver, CO21.8 %94.6 %93.9 %0.7 %$1,962 $2,000 (1.9)%$2,140 $2,284 (6.3)%
Minneapolis, MN35.6 %96.7 %96.8 %(0.1)%1,611 1,581 1.9 %1,822 1,785 2.1 %
Boulder/Ft. Collins, CO7.0 %95.7 %95.6 %0.1 %1,921 1,902 1.0 %2,097 2,167 (3.2)%
North Dakota(1)
8.2 %97.0 %96.9 %0.1 %1,409 1,339 5.2 %1,577 1,498 5.3 %
Omaha, NE7.6 %94.6 %94.2 %0.4 %1,428 1,393 2.5 %1,561 1,530 2.0 %
Rochester, MN12.7 %97.4 %97.6 %(0.2)%1,814 1,779 2.0 %1,930 1,896 1.8 %
Other Mountain West(2)
7.1 %95.1 %96.5 %(1.4)%1,390 1,364 1.9 %1,572 1,524 3.1 %
Same-Store Total(5)
100.0 %96.0 %95.9 %0.1 %$1,668 $1,647 1.3 %$1,846 $1,845 0.1 %
(1)Includes apartment communities in Grand Forks, North Dakota.
(2)Includes apartment communities in Billings, Montana.
(3)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.
(4)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(5)Same-store comparisons exclude 13 communities designated as held for sale.

S-12

CENTERSPACE
SAME-STORE SEQUENTIAL QUARTER COMPARISONS
(in thousands, except property data amounts and percentages)

Apartment Homes IncludedRevenuesExpenses
NOI(3)
RegionsQ2 2026Q1 2026% ChangeQ2 2026Q1 2026% ChangeQ2 2026Q1 2026% Change
Denver, CO1,801 $10,935 $11,110 (1.6)%$4,133 $4,308 (4.1)%$6,802 $6,802 — %
Minneapolis, MN3,433 18,141 17,788 2.0 %7,053 7,510 (6.1)%11,088 10,278 7.9 %
Boulder/Ft. Collins, CO559 3,367 3,384 (0.5)%1,174 1,242 (5.5)%2,193 2,142 2.4 %
North Dakota(1)
865 3,969 3,832 3.6 %1,404 1,667 (15.8)%2,565 2,165 18.5 %
Omaha, NE872 3,861 3,884 (0.6)%1,483 1,336 11.0 %2,378 2,548 (6.7)%
Rochester, MN1,129 6,369 6,180 3.1 %2,409 2,457 (2.0)%3,960 3,723 6.4 %
Other Mountain West(2)
748 3,354 3,252 3.1 %1,134 1,127 0.6 %2,220 2,125 4.5 %
Same-Store Total(5)
9,407 $49,996 $49,430 1.1 %$18,790 $19,647 (4.4)%$31,206 $29,783 4.8 %

% of NOI
Weighted Average Occupancy (4)
Average Monthly
Rental Rate (4)
Average Monthly
Revenue per Occupied Home (4)
RegionsQ2 2026Q1 2026GrowthQ2 2026Q1 2026% ChangeQ2 2026Q1 2026% Change
Denver, CO21.8 %94.6 %93.8 %0.8 %$1,962 $1,973 (0.6)%$2,140 $2,193 (2.4)%
Minneapolis, MN35.6 %96.7 %96.1 %0.6 %1,611 1,605 0.4 %1,822 1,798 1.3 %
Boulder/Ft. Collins, CO7.0 %95.7 %95.4 %0.3 %1,921 1,913 0.4 %2,097 2,114 (0.8)%
North Dakota(1)
8.2 %97.0 %96.1 %0.9 %1,409 1,399 0.7 %1,577 1,537 2.6 %
Omaha, NE7.6 %94.6 %95.5 %(0.9)%1,428 1,427 0.1 %1,561 1,554 0.5 %
Rochester, MN12.7 %97.4 %97.0 %0.4 %1,814 1,806 0.4 %1,930 1,881 2.6 %
Other Mountain West(2)
7.1 %95.1 %93.9 %1.2 %1,390 1,382 0.6 %1,572 1,543 1.9 %
Same-Store Total(5)
100.0 %96.0 %95.4 %0.6 %$1,668 $1,665 0.2 %$1,846 $1,835 0.6 %
(1)Includes apartment communities in Grand Forks, North Dakota.
(2)Includes apartment communities in Billings, Montana.
(3)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.
(4)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(5)Same-store comparisons exclude 13 communities designated as held for sale.


S-13

CENTERSPACE
SAME-STORE YEAR TO DATE COMPARISONS
(in thousands, except property data amounts and percentages)
Apartment Homes IncludedRevenuesExpenses
NOI(3)
Regions20262025% Change20262025% Change20262025% Change
Denver, CO1,801 $22,045 $23,243 (5.2)%$8,441 $8,720 (3.2)%$13,604 $14,523 (6.3)%
Minneapolis, MN3,433 35,929 35,341 1.7 %14,563 14,186 2.7 %21,366 21,155 1.0 %
Boulder/Ft. Collins, CO559 6,751 6,933 (2.6)%2,416 2,212 9.2 %4,335 4,721 (8.2)%
North Dakota(1)
865 7,801 7,420 5.1 %3,071 2,984 2.9 %4,730 4,436 6.6 %
Omaha, NE872 7,745 7,522 3.0 %2,819 2,917 (3.4)%4,926 4,605 7.0 %
Rochester, MN1,129 12,549 12,414 1.1 %4,866 4,513 7.8 %7,683 7,901 (2.8)%
Other Mountain West(2)
748 6,606 6,591 0.2 %2,261 2,153 5.0 %4,345 4,438 (2.1)%
Same-Store Total(5)
9,407 $99,426 $99,464 — %$38,437 $37,685 2.0 %$60,989 $61,779 (1.3)%

% of NOI
Weighted Average Occupancy (4)
Average Monthly
Rental Rate (4)
Average Monthly
Revenue per Occupied Home (4)
Regions20262025Growth20262025% Change20262025% Change
Denver, CO22.3 %94.2 %94.3 %(0.1)%$1,968 $2,008 (2.0)%$2,166 $2,281 (5.0)%
Minneapolis, MN35.0 %96.4 %96.5 %(0.1)%1,608 1,577 2.0 %1,810 1,778 1.8 %
Boulder/Ft. Collins, CO7.1 %95.6 %95.9 %(0.3)%1,917 1,906 0.6 %2,106 2,156 (2.3)%
North Dakota(1)
7.8 %96.5 %97.6 %(1.1)%1,404 1,322 6.2 %1,557 1,470 5.9 %
Omaha, NE8.1 %95.0 %94.2 %0.8 %1,427 1,386 3.0 %1,558 1,527 2.0 %
Rochester, MN12.6 %97.2 %97.1 %0.1 %1,810 1,771 2.2 %1,906 1,887 1.0 %
Other Mountain West(2)
7.1 %94.5 %96.4 %(1.9)%1,386 1,360 1.9 %1,557 1,523 2.2 %
Same-Store Total(5)
100.0 %95.7 %95.9 %(0.2)%$1,666 $1,644 1.3 %$1,840 $1,838 0.1 %
(1)Includes apartment communities in Grand Forks, North Dakota.
(2)Includes apartment communities in Billings, Montana.
(3)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.
(4)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(5)Same-store comparisons exclude 13 communities designated as held for sale.

S-14

CENTERSPACE
PORTFOLIO SUMMARY(1)
As of and for the Three Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/2025
Number of Apartment Homes at Period End
Same-Store9,407 11,214 11,084 11,084 11,084 
Non-Same-Store and Held for Sale(2)
2,683 1,049 1,178 1,178 758 
All Communities(2)
12,090 12,263 12,262 12,262 11,842 
Average Monthly Rental Rate(3)
Same-Store$1,668 $1,643 $1,639 $1,629 $1,621 
Non-Same-Store and Held for Sale(2)
1,662 1,848 1,842 1,858 1,731 
All Communities(2)
$1,666 $1,660 $1,658 $1,649 $1,625 
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store$1,846 $1,813 $1,818 $1,823 $1,818 
Non-Same-Store and Held for Sale(2)
1,840 2,058 2,080 2,090 1,951 
All Communities(2)
$1,844 $1,834 $1,843 $1,846 $1,844 
Weighted Average Occupancy(3)
Same-Store96.0 %95.4 %95.3 %95.8 %96.1 %
Non-Same-Store and Held for Sale(2)
95.9 %92.0 %89.7 %87.5 %85.9 %
All Communities(2)
96.0 %95.1 %94.7 %95.0 %94.5 %
Property Operating Expenses, including Real Estate Taxes as a % of Scheduled Rent(3)
Same-Store39.9 %41.5 %38.3 %41.6 %40.6 %
Non-Same-Store and Held for Sale(2)
38.8 %40.7 %39.3 %42.6 %44.0 %
All Communities(2)
39.7 %41.4 %38.4 %41.7 %40.8 %
Capital Expenditures
Total Recurring Capital Expenditures(3) per Apartment Home – Same-Store
$303 $198 $269 $350 $370 
(1)Previously reported amounts are not revised for changes in the composition of the same-store properties pool.
(2)Includes apartment communities classified as held for sale as of June 30, 2026 and excludes apartment communities classified as held for sale as of September 30, 2025, and June 30, 2025.
(3)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 EndedSix Months Ended
Capital Expenditures6/30/20266/30/20256/30/20266/30/2025
Total Same-Store Apartment Homes9,407 9,406 9,407 9,406 
All Properties - Weighted Average Apartment Homes(3)
12,262 13,132 12,264 13,072 
Same-Store
Building - Exterior$667 $1,218 $935 $1,340 
Building - Interior23 13 97 149 
Mechanical, Electrical, & Plumbing595 526 1,157 874 
Furniture & Equipment90 195 153 212 
Landscaping & Grounds215 139 266 221 
Turnover Replacements817 665 1,524 1,303 
Work in progress - net change448 281 518 460 
Recurring Capital Expenditures(1) - Same-Store
$2,855 $3,037 $4,650 $4,559 
Recurring Capital Expenditures(1) per Apartment Home - Same-Store
$303 $323 $494 $485 
Recurring Capital Expenditures(1) - All Properties
$3,562 $5,105 $5,731 $7,323 
Recurring Capital Expenditures(1) per Weighted Average Apartment Home - All Properties
$290 $389 $467 $560 
Value Add(1)
Same-Store
Interior - Units
$42 $642 $36 $1,019 
Common Areas and Exteriors
1,162 546 2,672 1,675 
Work in Progress - net change
647 1,309 131 348 
Total Value Add - Same Store$1,851 $2,497 $2,839 $3,042 
All Properties
Interior - Units
$42 $1,557 $36 $2,341 
Common Areas and Exteriors
1,497 983 3,213 2,437 
Work in Progress - net change
438 1,320 (30)171 
Total Value Add - All Properties$1,977 $3,860 $3,219 $4,949 
Total Same-Store Capital Spend(2)
Capital Spend - Same-Store(2)
$4,706 $5,534 $7,489 $7,601 
Capital Spend per Apartment Home - Same-Store(2)
$500 $588 $796 $808 
Acquisition and Other Capital Expenditures(1)
All Properties
$2,548 $2,091 $3,993 $2,655 
Total Capital Spend
Total Capital Spend - All Properties$8,087 $11,056 $12,943 $14,927 
Total Capital Spend per Weighted Average Apartment Home - All Properties$660 $842 $1,055 $1,142 
(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.
(3)Includes all properties, including held for sale and dispositions.
S-16

CENTERSPACE
2026 Revised Financial Outlook
(in thousands, except per share and per home amounts)
Centerspace updated its financial outlook for 2026 in the table below. The updated outlook includes the impact of expected dispositions and the deleveraging plan.
2026 Updated Outlook Range(1)
Six Months EndedLowHigh
June 30, 2026AmountAmount
Same-store growth(2)
Revenue$99,426 0.00 %1.00 %
Controllable expenses23,738 0.50 %1.50 %
Non-controllable expenses14,699 3.50 %4.50 %
Total Expenses$38,437 1.50 %2.50 %
Same-store NOI(3)
$60,989 (1.00)%0.00 %
Components of NOI(3)
Same-store$60,989 $122,600 $123,900 
Non-same-store and held for sale17,670 27,150 27,350 
Other properties1,232 2,200 2,300 
Dispositions739 — — 
Total NOI(2)(3)
$80,630 $151,950 $153,550 
Other operating income and expenses
General and administrative and property management(16,464)(30,950)(30,300)
Casualty loss, net of recoveries227 (650)(550)
Non-real estate depreciation and amortization(134)(300)(250)
 Loss on sale of non real estate assets— (179)(184)
Total other operating income and expenses$(16,371)$(32,079)$(31,284)
Interest expense$(21,093)(37,700)(37,600)
Interest and other income1,599 3,800 4,100 
FFO applicable to common shares and Units - diluted(3)
$44,765 $85,971 $88,766 
Non-core income and expenses
Non-cash casualty loss (recovery)$(258)$250 $150 
Amortization of assumed debt854 1,284 1,284 
Severance and related costs880 1,050 1,000 
Legal and other costs related to strategic review1,104 1,600 1,100 
Other miscellaneous items(209)(71)(16)
Total non-core income and expenses$2,371 $4,113 $3,518 
Core FFO applicable to common shares and Units - diluted(3)
$47,136 $90,084 $92,284 
Net loss per share - diluted$(0.83)$6.42 $6.82 
FFO per diluted share(3)
$2.27 $4.37 $4.50 
Core FFO per diluted share(3)
$2.39 $4.58 $4.68 
Weighted average shares outstanding - diluted19,696 19,690 19,715 
Additional Assumptions
Same-store recurring capital expenditures (per home)$494 $1,250 $1,350 
Value-add expenditures$3,219 $3,500 $6,000 
Gross proceeds from dispositions$30,000 $315,000 $320,000 
Potential special distributions to common shares and operating partnership units$— $50,000 $60,000 
(1)Updated same-store pool as a result of the disposition of one community during the three months ended June 30, 2026 and 13 apartment communities designated as held for sale as of June 30, 2026.
(2)Updated outlook range has new same-store pool which excludes apartment communities designated as held for sale or disposed and includes expected impact of dispositions and deleveraging.
(3)NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage, components, 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 outlook and projections provided below are based on current expectations and are forward-looking statements under applicable U.S. federal securities laws.
Updated Outlook(2)
Six Months Ended12 Months Ended
June 30, 2026December 31, 2026
ActualLowHigh
Net loss available to common shareholders$(13,909)$129,226 $136,331 
Noncontrolling interests - Operating Partnership and Series E preferred units(2,309)(2,795)(1,950)
Depreciation and amortization51,573 96,590 96,390 
Less depreciation - non real estate(134)(300)(250)
Impairment of real estate investments9,700 9,700 9,700 
Gain on sale of real estate(271)(146,500)(151,500)
 Loss on sale of non real estate assets— (179)(184)
Distributions to Series D preferred unitholders115 229 229 
FFO applicable to common shares and Units - diluted(1)
$44,765 $85,971 $88,766 
Adjustments to Core FFO:
Non-cash casualty loss (recovery)(258)250 150 
Amortization of assumed debt854 1,284 1,284 
Severance and related costs880 1,050 1,000 
Legal and other costs related to strategic review1,104 1,600 1,100 
Other miscellaneous items(209)(71)(16)
Core FFO applicable to common shares and Units - diluted(1)
$47,136 $90,084 $92,284 
Net loss per share - diluted$(0.83)$6.42 $6.82 
FFO per share - diluted$2.27 $4.37 $4.50 
Core FFO per share - diluted$2.39 $4.58 $4.68 
(1)FFO and Core FFO are non-GAAP financial measures. For more information on their usage, components, 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.
(2)Updated outlook range has new same-store pool which excludes apartment communities designated as held for sale or disposed and includes expected impact of dispositions and deleveraging.
Reconciliations of Operating Income to Net Operating Income
The outlook and projections provided below are based on current expectations and are forward-looking statements under applicable U.S. federal securities laws.

Updated Outlook(2)
Six Months Ended12 Months Ended
June 30, 2026December 31, 2026
ActualLowHigh
Operating income$3,391 $160,560 $168,110 
Adjustments:
General and administrative and property management expenses16,464 30,950 30,300 
Casualty loss, net of recoveries(227)650 550 
Depreciation and amortization51,573 96,590 96,390 
Impairment of real estate investments9,700 9,700 9,700 
Gain on sale of real estate and other assets(271)(146,500)(151,500)
Net operating income(1)
$80,630 $151,950 $153,550 
(1)NOI is a non-GAAP financial measure. For more information on its usage, components, 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.
(2)Updated outlook range has new same-store pool which excludes apartment communities designated as held for sale or disposed and includes expected impact of dispositions and deleveraging.
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.
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.
As of and for the
Three Months EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
Adjusted EBITDA$34,581 $31,626 $34,894 $35,231 $34,939 $66,207 $67,575 
Interest Expense10,623 10,470 11,537 12,989 10,719 21,093 20,341 
Principal Amortization1,488 1,567 1,939 2,000 1,853 3,055 3,759 
Total Interest Expense and Principal Amortization12,11112,03713,47614,98912,57224,14824,100
Distributions paid to Series D preferred unitholders585757109160115320
Total Interest Expense, Principal Amortization, and preferred distributions12,16912,09413,53315,09812,73224,26324,420
Debt Service Coverage Ratio2.862.632.592.352.782.742.80
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization2.842.622.582.332.742.732.77
Effective Blended Lease Rate Growth
Effective blended lease rate growth is the weighted average of effective new lease rate growth and effective renewal lease rate growth within the given timeframe.
Effective New Lease Rate Growth
Effective new lease rate growth is the growth in gross rents after the effect of leasing concessions for new leases that became effective within the given timeframe as compared to the prior lease.
S-19

Effective Renewal Lease Rate Growth
Effective renewal lease rate growth is the growth in gross rents after the effect of leasing concessions for renewal leases that became effective within the given timeframe as compared to the prior lease.
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”), a non-GAAP measure, 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 value of 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 EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
Total debt(1)
$1,021,147 $1,047,846 $1,053,909 $1,177,284 $1,121,292 $1,021,147 $1,121,292 
Less: cash and cash equivalents8,560 7,555 12,833 12,896 12,378 8,560 12,378 
Less: 1031 funds in restricted cash— — — 50,941 — — — 
Net debt$1,012,587 $1,040,291 $1,041,076 $1,113,447 $1,108,914 $1,012,587 $1,108,914 
Adjusted EBITDA(2)
$138,324 $126,504 $139,576 $140,924 $139,756 $132,414 $135,150 
Net debt/Adjusted EBITDA7.328.227.467.907.937.658.21
Preferred Equity
$5,940 $5,940 $5,940 $5,940 $11,310 $5,940 $11,310 
Net debt and preferred equity$1,018,527 $1,046,231 $1,047,016 $1,119,387 $1,120,224 $1,018,527 $1,120,224 
Adjusted EBITDA(2)
$138,324 $126,504 $139,576 $140,924 $139,756 $132,414 $135,150 
Net debt and preferred equity/Adjusted EBITDA7.368.277.507.948.027.698.29
(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, including interest and other income, losses on extinguishment of debt, and interest expense, property management expenses, casualty losses net of recoveries, 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.
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 EndedSix Months Ended
6/30/20263/31/202612/31/20259/30/20256/30/20256/30/20266/30/2025
Common distribution per share and unit$0.77 $0.77 $0.77 $0.77 $0.77 $1.54 $1.54 
Core FFO per common share and unit diluted1.27 1.12 1.25 1.19 1.28 2.39 2.50 
Payout ratio60.6 %68.8 %61.6 %64.7 %60.2 %64.4 %61.6 %
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.
Repositioned 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 communities 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 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.
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.
S-22

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

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents