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

Centerspace (NYSE: CSR) posts Q1 2026 loss but reaffirms Core FFO outlook

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

Rhea-AI Filing Summary

Centerspace reported first-quarter 2026 results showing lower earnings but stable property performance and reaffirmed its core outlook. Revenue was $65.1 million, down 3.0% from $67.1 million a year earlier, mainly because the company sold 12 apartment communities in the prior year. Net loss widened to $0.77 per diluted share, compared with a net loss of $0.22 per diluted share in the prior-year quarter.

On a cash-flow basis, FFO was $1.07 per diluted share and Core FFO was $1.12, both down from $1.17 and $1.21 a year ago, largely reflecting the smaller portfolio. Same-store revenue was essentially flat year over year, while same-store NOI declined 1.1% as property operating expenses rose 1.7%. Weighted average same-store occupancy remained high at 95.4%.

The company ended the quarter with $267.1 million of total liquidity, including $259.6 million of available credit and $7.6 million of cash. For 2026, Centerspace reaffirmed its Core FFO per diluted share outlook of $4.81 to $5.05, slightly increased its FFO guidance range, and kept same-store revenue and NOI growth ranges unchanged.

Positive

  • None.

Negative

  • None.

Insights

Results show modest earnings pressure, but cash-flow guidance is reaffirmed.

Centerspace posted lower Q1 2026 profitability, with revenue down 3.0% to $65.1 million and net loss per diluted share widening to $(0.77). The main driver is prior-year asset sales, which reduced the size of the portfolio.

Operationally, same-store revenue was flat while expenses rose 1.7%, leading to a 1.1% decline in same-store NOI. Core FFO per diluted share fell to $1.12, a 7.4% decrease from the prior year. Liquidity remains sizable at $267.1 million, and total debt carries a 3.60% weighted average interest rate.

For 2026, management reaffirmed its Core FFO per diluted share range of $4.81–$5.05 and slightly raised the FFO range, while keeping same-store revenue and NOI growth targets intact. This suggests expectations for full-year cash generation are largely unchanged despite softer first-quarter margins.

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.
Q1 2026 Revenue $65.1 million Quarter ended March 31, 2026; down 3.0% year over year
Net loss per diluted share $(0.77) Quarter ended March 31, 2026; vs. $(0.22) in Q1 2025
Core FFO per diluted share $1.12 Quarter ended March 31, 2026; down 7.4% from $1.21
Same-store NOI change -1.1% Q1 2026 vs. Q1 2025
Same-store occupancy 95.4% Weighted average occupancy, Q1 2026
Total liquidity $267.1 million As of March 31, 2026, including cash and available credit
Total debt outstanding $1.05 billion Debt balances outstanding, March 31, 2026 (before costs/premiums)
2026 Core FFO guidance $4.81–$5.05 per diluted share Reaffirmed 2026 outlook range
Funds from Operations (FFO) financial
"The tables below show Net Loss, Funds from Operations (“FFO”)1, and Core FFO1, all on a per diluted share basis"
Funds from operations (FFO) is a performance measure commonly used for real estate companies that adjusts net income by adding back non‑cash items like building depreciation and removing one‑time gains or losses from property sales, to show recurring operating earnings. Investors use FFO to judge a property portfolio’s ability to generate cash for dividends and growth — think of it as measuring a car’s regular fuel efficiency rather than its accounting value or one‑off resale price.
Core Funds from Operations (Core FFO) financial
"Core FFO per diluted share decreased 7.4% to $1.12, compared to $1.21 for the same period"
Core funds from operations (core FFO) is a measure used mainly for real estate companies to show the recurring cash profit from property operations after removing one-time items, unusual gains or losses, and other non-recurring accounting adjustments. Investors use it like a household’s steady paycheck—helping judge the business’s ongoing ability to pay dividends and cover operating costs without being misled by temporary events or accounting quirks.
Net Operating Income (NOI) financial
"Same-Store Revenues, Expenses, and Net Operating Income (“NOI”)1 over comparable periods"
Net operating income (NOI) is the money a property or business generates from its regular operations after paying direct operating costs (like maintenance, utilities, and staff) but before paying financing costs, taxes, or accounting write‑downs. Investors use NOI to judge how well an asset produces cash from its core activity—think of it as the profit from running a store before paying the mortgage and taxes—so it helps compare properties and value income-producing investments.
Adjusted EBITDA financial
"CENTERSPACE RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS TO ADJUSTED EBITDA(1)"
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 financial
"Same-store revenues remained consistent while property operating expenses increased, resulting in a 1.1% decrease in same-store NOI"
Same-store describes a performance measure that compares sales or activity only at locations open for a defined prior period, excluding results from newly opened or recently closed outlets. Investors use it to see underlying, organic trends—like checking whether an established shop’s customers are buying more or less—so growth isn’t overstated by expansion or distorted by openings and closures.
Payout ratio financial
"Payout ratio (Core FFO per diluted share and unit basis) (1)"
The payout ratio measures what portion of a company’s profit is returned to shareholders, usually as cash dividends and sometimes including share buybacks. Investors use it like checking how big a slice of a cake the company gives away versus how much it keeps to fund growth or build a cushion; a very high ratio can signal limited room to sustain payouts, while a very low ratio may mean more reinvestment or potential for higher future payments.
Revenue $65.1 million -3.0% vs. Q1 2025
Net loss per diluted share $(0.77) vs. $(0.22) in Q1 2025
FFO per diluted share $1.07 vs. $1.17 in Q1 2025
Core FFO per diluted share $1.12 vs. $1.21 in Q1 2025
Same-store NOI growth -1.1% Q1 2026 vs. Q1 2025
Guidance

For 2026, Centerspace guides to FFO per diluted share of $4.65–$4.92 and reaffirms Core FFO per diluted share of $4.81–$5.05, with same-store revenue growth of 0.00%–1.75% and same-store NOI growth of (0.50)%–2.00%.

Understanding 8-K Material Events →
0000798359false00007983592026-05-042026-05-04



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): May 4, 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 May 4, 2026, announcing certain financial and operational results for the three months ended March 31, 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 May 4, 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: May 4, 2026President and Chief Executive Officer



Exhibit 99.1
q1_2026.jpg


Earnings Release
cs-centered_blue.jpg  
Centerspace Reports First Quarter 2026 Financial & Operating Results and Reaffirms 2026 Core Financial Outlook
MINNEAPOLIS, MN, May 4, 2026 – Centerspace (NYSE: CSR) (the “Company”) announced today its financial and operating results for the three months ended March 31, 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 months ended March 31, 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 March 31, 2026, December 31, 2025, and March 31, 2025.
 Three Months Ended March 31,
Per Common Share20262025
Net loss - diluted
$(0.77)$(0.22)
FFO - diluted(1)
$1.07 $1.17 
Core FFO - diluted(1)
$1.12 $1.21 
 Year-Over-Year
Comparison		Sequential
Comparison
Same-Store Results(2)
Q1 2026 vs. Q1 2025
Q1 2026 vs. Q4 2025
Revenues—%(0.3)%
Expenses1.7%8.2%
NOI(1)
(1.1)%(5.1)%
Three months ended
Same-Store Results(2)
March 31, 2026December 31, 2025March 31, 2025
Weighted Average Occupancy95.4%95.3%95.8%
Effective New Lease Rate Growth
(2.1)%(6.1)%(1.4)%
Effective Renewal Lease Rate Growth
3.1%3.9%3.4%
Effective Blended Lease Rate Growth (3)
0.4%(0.4)%0.5%
Retention Rate54.1%55.5%52.2%
(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)Effective blended lease rate growth is weighted by lease count.
Overview of the First Quarter
•Revenue decreased by $2.0 million or 3.0% to $65.1 million, compared to $67.1 million for the same period of the prior year, primarily due to the sale of 12 apartment communities in the prior year;
•Same-store revenues remained consistent while property operating expenses increased, resulting in a 1.1% decrease in same-store NOI compared to the same period of the prior year;
•Net loss was $0.77 per diluted share, compared to net loss of $0.22 per diluted share for the same period of the prior year; and
•Core FFO per diluted share decreased 7.4% to $1.12, compared to $1.21 for the same period of the prior year, primarily due to the sale of 12 apartment communities in the prior year.
1

Balance Sheet
At the end of the first quarter, Centerspace had $267.1 million of total liquidity on its balance sheet, consisting of $259.6 million available under lines of credit and cash and cash equivalents of $7.6 million.
Updated 2026 Financial Outlook
Centerspace updated its 2026 financial outlook. For additional information, see S-15 of the Supplemental Financial and Operating Data for the quarter ended March 31, 2026 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
Previous Outlook for 2026
Updated Outlook for 2026
LowHighLowHigh
Net loss per Share – diluted
$(0.49)$(0.19)$(0.95)$(0.66)
Same-Store Revenue0.00%1.75%0.00%1.75%
Same-Store Expenses1.00%2.00%1.00%2.00%
Same-Store NOI(0.50)%2.00%(0.50)%2.00%
FFO per Share – diluted$4.61$4.89$4.65$4.92
Core FFO per Share – diluted$4.81$5.05$4.81$5.05
Additional assumptions:
•Same-store recurring capital expenditures of $1,250 per home to $1,350 per home
•Value-add expenditures of $2.5 million to $12.5 million
•The outlook does not include any acquisitions or dispositions
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.
Strategic Review Update
During 2025, we announced that our Board has undertaken a proactive process to review strategic alternatives that may be available to Centerspace, engaging both legal and financial advisors.
This process remains ongoing, and we are appreciative of the engagement and feedback we have received from our stakeholders. We have been thorough and deliberate, and the Board and its advisors continue to make progress. The board currently expects to be able to provide shareholders with a more substantive update on the status of the review process before or in connection with our second quarter earnings release.
There can be no assurance as to the timing or outcome of this process. There can be no assurance that the review process will result in a transaction or other strategic change or outcome. We do not intend to disclose or comment further on developments related to this review unless or until we determine that further disclosure is appropriate or required by law.
Earnings Call
Management will host a conference call to discuss those results on Tuesday, May 5, 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/110927308
Operator Assisted Dial-In: 1-833-461-5787
Meeting ID: 110927308
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/110927308 for one year.
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended March 31, 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.  
2

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 March 31, 2026, Centerspace owned 61 apartment communities consisting of 12,263 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 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 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. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 952-401-6600
Email: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 952-401-6600
Email: kweber@centerspacehomes.com
3

Supplemental Financial and Operating Data
Table of Contents
March 31, 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-6
Funds From Operations and Core Funds From Operations
S-7
Adjusted EBITDA
S-8
Debt and Capital Analysis
Debt Analysis
S-9
Capital Analysis
S-10
Portfolio Analysis
Same-Store Comparisons
S-11
Portfolio Summary
S-13
Capital Expenditures
S-14
2026 Financial Outlook
S-15
Non-GAAP Financial Measures and Other Terms
S-17


CENTERSPACE
COMMON SHARE DATA (NYSE: CSR)
Three Months Ended
 March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
High closing price$67.00 $67.73 $61.09 $65.22 $66.19 
Low closing price$57.05 $57.41 $53.18 $56.21 $60.29 
Average closing price$62.88 $62.84 $57.79 $61.34 $63.04 
Closing price at end of quarter$57.45 $66.72 $58.90 $60.19 $64.75 
Common share distributions – annualized$3.08 $3.08 $3.08 $3.08 $3.08 
Closing price dividend yield – annualized
5.4 %4.6 %5.2 %5.1 %4.8 %
Closing common shares outstanding (thousands)
16,803 16,761 16,703 16,757 16,735 
Closing limited partnership units outstanding (thousands)
901 920 963 968 972 
Closing Series E preferred units, as converted (thousands)
1,884 1,892 1,894 1,898 1,906 
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)
19,588 19,573 19,560 19,623 19,613 
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)
$1,125,331 $1,305,911 $1,152,084 $1,181,108 $1,269,942 

S-1


CENTERSPACE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands)
 Three Months Ended
 3/31/202612/31/20259/30/20256/30/20253/31/2025
REVENUE$65,069 $66,621 $71,399 $68,549 $67,093 
EXPENSES
Property operating expenses, excluding real estate taxes18,242 18,496 21,210 18,853 19,068 
Real estate taxes7,332 6,140 7,165 7,678 7,663 
Property management expense2,379 2,323 2,489 2,393 2,433 
Casualty loss, net of recoveries(21)(242)127 399 532 
Depreciation and amortization26,498 29,424 29,056 27,097 27,654 
Impairment of real estate investments9,700 14,500 8,676 14,543 — 
General and administrative expenses6,332 6,542 4,997 4,382 4,997 
TOTAL EXPENSES$70,462 $77,183 $73,720 $75,345 $62,347 
Gain (loss) on sale of real estate and other investments
— (61)79,531 — — 
Operating income (loss)
(5,393)(10,623)77,210 (6,796)4,746 
Interest expense(10,470)(11,536)(12,989)(10,724)(9,635)
Loss on extinguishment of debt— (95)(3)— — 
Interest and other income
890 776 1,190 735 708 
NET INCOME (LOSS)
$(14,973)$(21,478)$65,408 $(16,785)$(4,181)
Distributions to Series D preferred unitholders(57)(57)(109)(160)(160)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units
2,141 3,102 (9,197)2,483 643 
Net income attributable to noncontrolling interests – consolidated real estate entities
— — (2,319)(53)(36)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
$(12,889)$(18,433)$53,783 $(14,515)$(3,734)
Per Share Data - Basic
Net income (loss) per common share – basic
$(0.77)$(1.10)$3.22 $(0.87)$(0.22)
Per Share Data - Diluted
Net income (loss) per common share – diluted
$(0.77)$(1.10)$3.19 $(0.87)$(0.22)
S-2

CENTERSPACE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
3/31/202612/31/20259/30/20256/30/20253/31/2025
ASSETS
Real estate investments
Property owned$2,518,162 $2,524,020 $2,536,166 $2,422,435 $2,484,111 
Less accumulated depreciation(685,769)(660,124)(638,217)(612,827)(652,368)
Total real estate investments1,832,393 1,863,896 1,897,949 1,809,608 1,831,743 
Cash and cash equivalents7,555 12,833 12,896 12,378 11,916 
Restricted cash2,710 2,818 52,943 5,815 6,144 
Other assets44,928 46,620 47,516 48,072 43,281 
Assets held for sale, net— — 86,302 137,366 — 
TOTAL ASSETS$1,887,586 $1,926,167 $2,097,606 $2,013,239 $1,893,084 
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses$55,872 $59,247 $66,124 $56,070 $57,631 
Revolving lines of credit150,429 154,925 222,500 216,030 48,734 
Notes payable, net299,594 299,579 299,564 299,550 299,535 
Mortgages payable, net565,611 566,660 622,074 595,668 607,184 
Liabilities held for sale, net— — 420 1,029 — 
TOTAL LIABILITIES$1,071,506 $1,080,411 $1,210,682 $1,168,347 $1,013,084 
SERIES D PREFERRED UNITS$5,940 $5,940 $5,940 $11,310 $16,560 
EQUITY
Common Shares of Beneficial Interest1,370,461 1,368,834 1,366,980 1,369,376 1,368,276 
Accumulated distributions in excess of net income(675,493)(649,678)(618,341)(659,266)(631,855)
Accumulated other comprehensive loss— — — (58)(232)
Total shareholders’ equity$694,968 $719,156 $748,639 $710,052 $736,189 
Noncontrolling interests – Operating Partnership and Series E preferred units 115,172 120,660 128,038 121,439 126,597 
Noncontrolling interests – consolidated real estate entities— — 4,307 2,091 654 
TOTAL EQUITY$810,140 $839,816 $880,984 $833,582 $863,440 
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY$1,887,586 $1,926,167 $2,097,606 $2,013,239 $1,893,084 

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-17 through S-21, “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 three months ended March 31, 2026 and 2025, 58 apartment communities were same-store and three apartment communities and one apartment community were non-same-store, respectively. Sold communities are included in “Dispositions,” while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties. During the year ended December 31, 2025, the Company disposed of twelve 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
 3/31/202612/31/20253/31/2025$ Change% Change$ Change% Change
Operating income (loss)$(5,393)$(10,623)$4,746 $5,230 (49.2)%$(10,139)(213.6)%
Adjustments:
Property management expenses2,379 2,323 2,433 56 2.4 %(54)(2.2)%
Casualty loss, net of recoveries(21)(242)532 221 (91.3)%(553)(103.9)%
Depreciation and amortization26,498 29,424 27,654 (2,926)(9.9)%(1,156)(4.2)%
Impairment of real estate investments9,700 14,500 — (4,800)(33.1)%9,700 N/A
General and administrative expenses6,332 6,542 4,997 (210)(3.2)%1,335 26.7 %
Loss on sale of real estate and other investments
— 61 — (61)(100.0)%— N/A
Net operating income(1)
$39,495 $41,985 $40,362 $(2,490)(5.9)%$(867)(2.1)%
Revenue
Same-store$58,198 $58,375 $58,193 $(177)(0.3)%$5 — %
Non-same-store5,958 5,802 1,210 156 *4,748 *
Other properties921 963 817 (42)(4.4)%104 12.7 %
Dispositions(8)1,481 6,873 (1,489)*(6,881)*
Total65,069 66,621 67,093 (1,552)(2.3)%(2,024)(3.0)%
Property operating expenses, including real estate taxes
Same-store22,929 21,192 22,536 1,737 8.2 %393 1.7 %
Non-same-store2,367 2,238 632 129 *1,735 *
Other properties305 241 332 64 26.6 %(27)(8.1)%
Dispositions(27)965 3,231 (992)*(3,258)*
Total25,574 24,636 26,731 938 3.8 %(1,157)(4.3)%
Net operating income(1)
Same-store35,269 37,183 35,657 (1,914)(5.1)%(388)(1.1)%
Non-same-store3,591 3,564 578 27 *3,013 *
Other properties616 722 485 (106)(14.7)%131 27.0 %
Dispositions19 516 3,642 (497)*(3,623)*
Total$39,495 $41,985 $40,362 $(2,490)(5.9)%$(867)(2.1)%
(1)Net operating income is a non-GAAP measure. Refer to pages S-17 through S-21 “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

CENTERSPACE
RECONCILIATIONS OF SAME-STORE CONTROLLABLE EXPENSES TO TOTAL PROPERTY OPERATING EXPENSES, INCLUDING REAL ESTATE TAXES (1)
 
(dollars in thousands)
 Three Months Ended March 31,
 20262025$ Change% Change
Same-store controllable expenses
On-site compensation(2)
$5,807 $5,836 $(29)(0.5)%
Repairs and maintenance(3)
2,833 2,651 182 6.9 %
Utilities4,090 4,009 81 2.0 %
Administrative and marketing1,565 1,309 256 19.6 %
Total$14,295 $13,805 $490 3.5 %
Same-store non-controllable expenses
Real estate taxes$6,474 $6,588 $(114)(1.7)%
Insurance2,160 2,143 17 0.8 %
Total$8,634 $8,731 $(97)(1.1)%
Total property operating expenses, including real estate taxes - same-store$22,929 $22,536 $393 1.7 %
Property operating expenses, including real estate taxes - non-same-store$2,367 $632 $1,735 *
Property operating expenses, including real estate taxes - other properties305 332 (27)(8.1)%
Property operating expenses, including real estate taxes - held for sale and dispositions(27)3,231 (3,258)*
Total property operating expenses, including real estate taxes$25,574 $26,731 $(1,157)(4.3)%
(1)Same-store controllable expenses is a non-GAAP measure. Refer to pages S-17 through S-21 “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-6

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
3/31/202612/31/20259/30/20256/30/20253/31/2025
Funds from Operations(1)
     
Net income (loss) available to common shareholders
$(12,889)$(18,433)$53,783 $(14,515)$(3,734)
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units(2,141)(3,102)9,197 (2,483)(643)
Depreciation and amortization26,498 29,424 29,056 27,097 27,654 
Less depreciation – non real estate(67)(83)(85)(84)(83)
Less depreciation – partially owned entities— — — (21)(22)
Impairment of real estate investments9,700 14,500 8,676 14,543 — 
(Gain) loss on sale of real estate
— 61 (79,531)— — 
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$21,101 $22,318 $23,347 $24,537 $23,172 
Adjustments to Core FFO(1):
Non-cash casualty loss (recovery)
(193)229 (123)149 282 
Loss on extinguishment of debt— 95 3 — — 
Interest rate swap amortization— — 58 174 175 
Amortization of assumed debt365 593 530 418 417 
Legal and other costs related to strategic review977 1,336 — — — 
Other miscellaneous items(2)
(209)(4)(455)19 (67)
Core FFO applicable to common shares and Units$22,041 $24,567 $23,360 $25,297 $23,979 
FFO applicable to common shares and Units$21,101 $22,318 $23,347 $24,537 $23,172 
Distributions to Series D preferred unitholders57 57 109 160 160 
FFO applicable to common shares and Units - diluted$21,158 $22,375 $23,456 $24,697 $23,332 
Core FFO applicable to common shares and Units$22,041 $24,567 $23,360 $25,297 $23,979 
Distributions to Series D preferred unitholders57 57 109 160 160 
Core FFO applicable to common shares and Units - diluted$22,098 $24,624 $23,469 $25,457 $24,139 
Per Share Data
Net income (loss) per share and Unit - diluted$(0.77)$(1.10)$3.19 $(0.87)$(0.22)
FFO per share and Unit - diluted(1)
$1.07 $1.14 $1.19 $1.24 $1.17 
Core FFO per share and Unit - diluted(1)
$1.12 $1.25 $1.19 $1.28 $1.21 
Weighted average shares - basic for net income (loss)16,775 16,719 16,726 16,741 16,727 
Effect of operating partnership Units for net income, FFO and Core FFO914 948 966 971 980 
Effect of Series D preferred units for net income, FFO and Core FFO82 82 155 228 228 
Effect of Series E preferred units for net income, FFO and Core FFO1,892 1,894 1,898 1,905 1,906 
Effect of dilutive restricted stock units and stock options for net income, FFO and Core FFO29 56 26 25 35 
Weighted average shares and Units for net income, FFO and Core FFO - diluted19,692 19,699 19,771 19,870 19,876 
(1)Funds from operations and Core funds from operations are non-GAAP measures. Refer to pages S-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Consists of (gain) loss on investments.
S-7

CENTERSPACE
RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS
TO ADJUSTED EBITDA(1)
(in thousands)
Three Months Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Adjusted EBITDA
Net income (loss) attributable to controlling interests
$(12,889)$(18,433)$53,783 $(14,515)$(3,734)
Adjustments:
Distributions to Series D preferred unitholders57 57 109 160 160 
Noncontrolling interests – Operating Partnership and Series E preferred units(2,141)(3,102)9,197 (2,483)(643)
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units
$(14,973)$(21,478)$63,089 $(16,838)$(4,217)
Adjustments:
Interest expense10,470 11,537 12,989 10,719 9,622 
Loss on extinguishment of debt— 95 3 — — 
Depreciation and amortization related to real estate investments26,498 29,424 29,056 27,076 27,632 
Impairment of real estate investments9,700 14,500 8,676 14,543 — 
Non-cash casualty loss (recovery) (193)229 (123)149 282 
Interest income(644)(757)(724)(729)(616)
(Gain) loss on sale of real estate
— 12 (77,280)— — 
Legal and other costs related to strategic review977 1,336 — — — 
Other miscellaneous items(2)
(209)(4)(455)19 (67)
Adjusted EBITDA$31,626 $34,894 $35,231 $34,939 $32,636 
(1)Adjusted EBITDA is a non-GAAP measure. Refer to pages S-17 through S-21 “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
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)$50,955 $— $429 $51,384 4.9 %3.47 %
202746,677 — — 46,677 4.5 %3.47 %
202860,000 50,000 150,000 260,000 24.8 %4.13 %
202919,288 75,000 — 94,288 9.0 %3.94 %
2030— 85,000 — 85,000 8.1 %2.62 %
Thereafter420,497 90,000 — 510,497 48.7 %3.45 %
Subtotal597,417 300,000 150,429 1,047,846 100.0 %3.60 %
Premiums and discounts, net(29,023)— — (29,023)
Deferred financing costs, net(2,783)(406)— (3,189)
Total debt$565,611 $299,594 $150,429 $1,015,634 
(1)Weighted average interest rate of debt that matures during the year.

3/31/202612/31/20259/30/20256/30/20253/31/2025
Debt Balances Outstanding     
Secured fixed rate - mortgages payable - other$398,567 $400,134 $455,934 $406,412 $418,508 
Secured fixed rate - mortgages payable - Fannie Mae credit facility198,850 198,850 198,850 198,850 198,850 
Unsecured variable rate line of credit150,429 154,925 222,500 216,030 48,734 
Unsecured senior notes300,000 300,000 300,000 300,000 300,000 
Subtotal(1)
$1,047,846 $1,053,909 $1,177,284 $1,121,292 $966,092 
Premiums and discounts, net(29,023)(29,387)(29,763)(6,661)(7,079)
Deferred financing costs, net(3,189)(3,358)(3,383)(3,383)(3,560)
Debt total$1,015,634 $1,021,164 $1,144,138 $1,111,248 $955,453 
Weighted average interest rates
Mortgages payable - other rate3.88 %3.88 %3.87 %4.03 %4.02 %
Mortgages payable - Fannie Mae Credit Facility rate2.78 %2.78 %2.78 %2.78 %2.78 %
Lines of credit rate(2)
4.88 %5.12 %5.51 %5.75 %5.76 %
Unsecured senior notes rate3.12 %3.12 %3.12 %3.12 %3.12 %
Total debt3.60 %3.64 %3.80 %3.90 %3.57 %
(1)Excludes premiums, discounts, and deferred financing costs.
(2)Interest rate excludes any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps, as shown in the table below.
Three Months Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Reclassified from Accumulated OCI into interest expense$— $— $58 $174 $175 
S-9

CENTERSPACE 
CAPITAL ANALYSIS 
(in thousands, except per share and unit amounts)
Three Months Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Equity Capitalization
Common shares outstanding16,803 16,761 16,703 16,757 16,735 
Operating partnership units outstanding901 920 963 968 972 
Series E preferred units (as converted)1,884 1,892 1,894 1,898 1,906 
Total common shares, Units, and Series E preferred units, as converted, outstanding19,588 19,573 19,560 19,623 19,613 
Market price per common share (closing price at end of period)$57.45 $66.72 $58.90 $60.19 $64.75 
Equity capitalization-common shares and Units
$1,125,331 $1,305,911 $1,152,084 $1,181,108 $1,269,942 
Series D preferred units$5,940 $5,940 $5,940 $11,310 $16,560 
Debt Capitalization
Total debt(1)
$1,047,846 $1,053,909 $1,177,284 $1,121,292 $966,092 
Total market capitalization
$2,179,117 $2,365,760 $2,335,308 $2,313,710 $2,252,594 
Total debt to total market capitalization(2)
48.1 %44.5 %50.4 %48.5 %42.9 %
(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-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for additional information.
Three Months Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Debt service coverage ratio(1)
2.63  x2.59  x2.35  x2.78  x2.83  x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization(1)
2.62  x2.58  x2.33  x2.74  x2.79  x
Net debt/Adjusted EBITDA(1)
8.22  x7.46  x7.90  x7.93  x7.31  x
Net debt and preferred equity/Adjusted EBITDA(1)
8.27  x7.50  x7.94  x8.02  x7.44  x
Distribution Data
Common shares and Units outstanding at record date (in thousands)
17,692 17,679 17,662 17,717 17,706 
Total common distribution declared (in thousands)
$13,624 $13,613 $13,600 $13,642 $13,633 
Common distribution per share and Unit
$0.77 $0.77 $0.77 $0.77 $0.77 
Payout ratio (Core FFO per diluted share and unit basis)(1)
68.8 %61.6 %64.7 %60.2 %63.6 %
(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-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for additional information.

S-10


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

 Apartment Homes IncludedRevenuesExpenses
NOI(2)
RegionsQ1 2026Q1 2025% ChangeQ1 2026Q1 2025% ChangeQ1 2026Q1 2025% Change
Denver, CO1,977 $11,912 $12,615 (5.6)%$4,681 $4,842 (3.3)%$7,231 $7,773 (7.0)%
Minneapolis, MN3,745 19,655 19,375 1.4 %8,336 8,119 2.7 %11,319 11,256 0.6 %
Boulder/Ft. Collins, CO559 3,384 3,461 (2.2)%1,242 1,050 18.3 %2,142 2,411 (11.2)%
North Dakota1,710 7,866 7,516 4.7 %3,024 3,003 0.7 %4,842 4,513 7.3 %
Omaha, NE872 3,884 3,751 3.5 %1,336 1,418 (5.8)%2,548 2,333 9.2 %
Rochester, MN1,129 6,180 6,143 0.6 %2,457 2,194 12.0 %3,723 3,949 (5.7)%
Other Mountain West(1)
1,222 5,317 5,332 (0.3)%1,853 1,910 (3.0)%3,464 3,422 1.2 %
Same-Store Total11,214 $58,198 $58,193 — %$22,929 $22,536 1.7 %$35,269 $35,657 (1.1)%


 % of NOI
Weighted Average Occupancy (3)
Average Monthly
Rental Rate (3)
Average Monthly
Revenue per Occupied Home (3)
RegionsQ1 2026Q1 2025GrowthQ1 2026Q1 2025% ChangeQ1 2026Q1 2025% Change
Denver, CO20.5 %93.5 %94.7 %(1.2)%$1,936 $1,976 (2.0)%$2,148 $2,275 (5.6)%
Minneapolis, MN32.1 %96.2 %96.2 %— %1,622 1,590 2.0 %1,819 1,794 1.4 %
Boulder/Ft. Collins, CO6.1 %95.4 %96.2 %(0.8)%1,913 1,910 0.2 %2,114 2,145 (1.4)%
North Dakota13.7 %95.7 %96.9 %(1.2)%1,462 1,380 5.9 %1,603 1,513 5.9 %
Omaha, NE7.2 %95.5 %94.1 %1.4 %1,427 1,378 3.6 %1,554 1,524 2.0 %
Rochester, MN10.6 %97.0 %96.6 %0.4 %1,806 1,763 2.4 %1,881 1,878 0.2 %
Other Mountain West(1)
9.8 %94.4 %95.9 %(1.5)%1,367 1,345 1.6 %1,536 1,517 1.3 %
Same-Store Total100.0 %95.4 %95.8 %(0.4)%$1,643 $1,616 1.7 %$1,813 $1,813 — %
(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.
(2)NOI is a non-GAAP financial measure. Refer to pages S-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for additional information.
(3)Refer to pages S-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for definitions.

S-11

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

Apartment Homes IncludedRevenuesExpenses
NOI(2)
RegionsQ1 2026Q4 2025% ChangeQ1 2026Q4 2025% ChangeQ1 2026Q4 2025% Change
Denver, CO1,977 $11,912 $12,121 (1.7)%$4,681 $4,308 8.7 %$7,231 $7,813 (7.4)%
Minneapolis, MN3,745 19,655 19,580 0.4 %8,336 8,420 (1.0)%11,319 11,160 1.4 %
Boulder/Ft. Collins, CO559 3,384 3,441 (1.7)%1,242 1,064 16.7 %2,142 2,377 (9.9)%
North Dakota1,710 7,866 7,868 — %3,024 2,533 19.4 %4,842 5,335 (9.2)%
Omaha, NE872 3,884 3,893 (0.2)%1,336 890 50.1 %2,548 3,003 (15.2)%
Rochester, MN1,129 6,180 6,094 1.4 %2,457 2,343 4.9 %3,723 3,751 (0.7)%
Other Mountain West(1)
1,222 5,317 5,378 (1.1)%1,853 1,634 13.4 %3,464 3,744 (7.5)%
Same-Store Total11,214 $58,198 $58,375 (0.3)%$22,929 $21,192 8.2 %$35,269 $37,183 (5.1)%

% of NOI
Weighted Average Occupancy (3)
Average Monthly
Rental Rate (3)
Average Monthly
Revenue per Occupied Home (3)
RegionsQ1 2026Q4 2025GrowthQ1 2026Q4 2025% ChangeQ1 2026Q4 2025% Change
Denver, CO20.5 %93.5 %93.9 %(0.4)%$1,936 $1,938 (0.1)%$2,148 $2,186 (1.7)%
Minneapolis, MN32.1 %96.2 %95.8 %0.4 %1,622 1,620 0.1 %1,819 1,819 — %
Boulder/Ft. Collins, CO6.1 %95.4 %95.8 %(0.4)%1,913 1,903 0.5 %2,114 2,142 (1.3)%
North Dakota13.7 %95.7 %96.1 %(0.4)%1,462 1,455 0.5 %1,603 1,597 0.4 %
Omaha, NE7.2 %95.5 %95.2 %0.3 %1,427 1,423 0.3 %1,554 1,564 (0.6)%
Rochester, MN10.6 %97.0 %95.0 %2.0 %1,806 1,802 0.2 %1,881 1,893 (0.6)%
Other Mountain West(1)
9.8 %94.4 %95.3 %(0.9)%1,367 1,364 0.2 %1,536 1,540 (0.3)%
Same-Store Total100.0 %95.4 %95.3 %0.1 %$1,643 $1,640 0.2 %$1,813 $1,819 (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-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for additional information.
(3)Refer to pages S-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for definitions.




S-12

CENTERSPACE
PORTFOLIO SUMMARY(1)
As of and for the Three Months Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Number of Apartment Homes at Period End
Same-Store11,214 11,084 11,084 11,084 12,595 
Non-Same-Store1,049 1,178 1,178 758 417 
All Communities(2)
12,263 12,262 12,262 11,842 13,012 
Average Monthly Rental Rate(3)
Same-Store$1,643 $1,639 $1,629 $1,621 $1,586 
Non-Same-Store1,848 1,842 1,858 1,731 1,558 
All Communities(2)
$1,660 $1,658 $1,649 $1,625 $1,585 
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store$1,813 $1,818 $1,823 $1,818 $1,775 
Non-Same-Store2,058 2,080 2,090 1,951 1,786 
All Communities(2)
$1,834 $1,843 $1,846 $1,844 $1,776 
Weighted Average Occupancy(3)
Same-Store95.4 %95.3 %95.8 %96.1 %95.8 %
Non-Same-Store92.0 %89.7 %87.5 %85.9 %88.9 %
All Communities(2)
95.1 %94.7 %95.0 %94.5 %95.6 %
Property Operating Expenses, including Real Estate Taxes as a % of Scheduled Rent(3)
Same-Store41.5 %38.3 %41.6 %40.6 %42.4 %
Non-Same-Store40.7 %39.3 %42.6 %44.0 %51.9 %
All Communities(2)
41.4 %38.4 %41.7 %40.8 %42.7 %
Capital Expenditures
Total Recurring Capital Expenditures(3) per Apartment Home – Same-Store
$198 $269 $350 $370 $172 
(1)Previously reported amounts are not revised for changes in the composition of the same-store properties pool.
(2)Excludes apartment communities classified as held for sale as of September 30, 2025 and June 30, 2025.
(3)Refer to pages S-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for definitions.
S-13

CENTERSPACE
CAPITAL EXPENDITURES
(dollars in thousands, except per home amounts)
Three Months Ended
Capital Expenditures3/31/20263/31/2025
Total Same-Store Apartment Homes11,214 11,213 
All Properties - Weighted Average Apartment Homes(3)
12,263 13,012 
Same-Store
Building - Exterior$466 $564 
Building - Interior83 143 
Mechanical, Electrical, & Plumbing688 445 
Furniture & Equipment64 32 
Landscaping & Grounds56 234 
Turnover Replacements832 750 
Work in progress - net change35 (166)
Recurring Capital Expenditures(1) - Same-Store
$2,224 $2,002 
Recurring Capital Expenditures(1) per Apartment Home - Same-Store
$198 $179 
Recurring Capital Expenditures(1) - All Properties
$2,170 $2,218 
Recurring Capital Expenditures(1) per Weighted Average Apartment Home - All Properties
$177 $170 
Value Add(1)
Same-Store
Interior - Units
$— $377 
Common Areas and Exteriors
1,716 1,141 
Work in Progress - net change
(474)(946)
Total Value Add - Same Store$1,242 $572 
All Properties
Interior - Units
$— $784 
Common Areas and Exteriors
1,716 1,454 
Work in Progress - net change
(474)(1,149)
Total Value Add - All Properties$1,242 $1,089 
Total Same-Store Capital Spend(2)
Capital Spend - Same-Store(2)
$3,466 $2,574 
Capital Spend per Apartment Home - Same-Store(2)
$309 $230 
Acquisition and Other Capital Expenditures(1)
All Properties
$1,445 $564 
Total Capital Spend
Total Capital Spend - All Properties$4,857 $3,871 
Total Capital Spend per Weighted Average Apartment Home - All Properties$396 $297 
(1)Refer to pages S-17 through S-21 “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-14

CENTERSPACE
2026 Financial Outlook
(in thousands, except per share and per home amounts)
Centerspace reaffirmed its financial outlook for 2026 in the table below.
2026 Previous Outlook Range
2026 Updated Outlook Range
Three Months EndedLowHighLowHigh
March 31, 2026AmountAmountAmountAmount
Same-store growth
Revenue$58,198 0.00 %1.75 %0.00 %1.75 %
Controllable expenses14,295 0.50 %1.50 %0.50 %1.50 %
Non-controllable expenses8,634 1.50 %2.50 %1.50 %2.50 %
Total Expenses$22,929 1.00 %2.00 %1.00 %2.00 %
Same-store NOI(1)
$35,269 (0.50)%2.00 %(0.50)%2.00 %
Components of NOI(1)
Same-store$35,269 $144,500 $148,100 $144,500 $148,100 
Non-same-store
3,591 15,450 15,650 15,450 15,650 
Other properties616 2,400 2,600 2,400 2,600 
Dispositions
19 — — — — 
Total NOI(1)
$39,495 $162,350 $166,350 $162,350 $166,350 
Other operating income and expenses
General and administrative and property management(8,711)(30,400)(29,550)(30,050)(29,450)
Casualty loss, net of recoveries
21 (1,650)(1,550)(1,250)(1,150)
Non-real estate depreciation and amortization(67)(350)(300)(350)(300)
Total other operating income and expenses$(8,757)$(32,400)$(31,400)$(31,650)$(30,900)
Interest expense$(10,470)(41,750)(41,150)(41,900)(41,400)
Interest and other income890 2,600 2,700 2,750 2,950 
FFO applicable to common shares and Units - diluted(1)
$21,158 $90,800 $96,500 $91,550 $97,000 
Non-core income and expenses
Non-cash casualty loss (recovery)
$(193)$950 $850 $550 $450 
Amortization of assumed debt365 1,554 1,554 1,284 1,284 
Legal and other costs related to strategic review
977 1,500 750 1,500 1,000 
Other miscellaneous items(209)— — (200)(200)
Total non-core income and expenses$940 $4,004 $3,154 $3,134 $2,534 
Core FFO applicable to common shares and Units - diluted(1)
$22,098 $94,804 $99,654 $94,684 $99,534 
Net loss per share - diluted
$(0.77)$(0.49)$(0.19)$(0.95)$(0.66)
FFO per diluted share(1)
$1.07 $4.61 $4.89 $4.65 $4.92 
Core FFO per diluted share(1)
$1.12 $4.81 $5.05 $4.81 $5.05 
Weighted average shares outstanding - diluted19,692 19,700 19,725 19,700 19,725 
Additional Assumptions
Same-store recurring capital expenditures (per home)
$198 $1,250 $1,350 $1,250 $1,350 
Value-add expenditures$— $2,500 $12,500 $2,500 $12,500 
Acquisitions
$— $— $— $— $— 
Proceeds from Dispositions
$— $— $— $— $— 
(1)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-17 through S-21 “Non-GAAP Financial Measures and Other Terms” for additional information.

S-15

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 (loss) 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.
Previous Outlook
Updated Outlook
Three Months Ended12 Months Ended12 Months Ended
March 31, 2026December 31, 2026December 31, 2026
ActualLowHighLowHigh
Net loss available to common shareholders
$(12,889)$(8,226)$(3,256)$(15,831)$(11,076)
Noncontrolling interests - Operating Partnership and Series E preferred units(2,141)(1,450)(570)(2,795)(1,950)
Depreciation and amortization26,498 100,597 100,397 100,597 100,397 
Less depreciation - non real estate(67)(350)(300)(350)(300)
Impairment of real estate investments
9,700 — — 9,700 9,700 
Distributions to Series D preferred unitholders
57 229 229 229 229 
FFO applicable to common shares and Units - diluted$21,158 $90,800 $96,500 $91,550 $97,000 
Adjustments to Core FFO:
Non-cash casualty loss (recovery)
(193)950 850 550 450 
Amortization of assumed debt365 1,554 1,554 1,284 1,284 
Legal and other costs related to strategic review
977 1,500 750 1,500 1,000 
Other miscellaneous items(209)— — (200)(200)
Core FFO applicable to common shares and Units - diluted$22,098 $94,804 $99,654 $94,684 $99,534 
Net loss per share - diluted
$(0.77)$(0.49)$(0.19)$(0.95)$(0.66)
FFO per share - diluted$1.07 $4.61 $4.89 $4.65 $4.92 
Core FFO per share - diluted$1.12 $4.81 $5.05 $4.81 $5.05 
Reconciliations of Operating Income (Loss) 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 costs, including interest and other income, losses on extinguishment of debt, interest expense, 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.
Previous Outlook
Updated Outlook
Three Months Ended12 Months Ended12 Months Ended
March 31, 2026December 31, 2026December 31, 2026
ActualLowHighLowHigh
Operating income (loss)
$(5,393)$29,703 $34,853 $20,753 $25,653 
Adjustments:
General and administrative and property management expenses8,711 30,400 29,550 30,050 29,450 
Casualty loss, net of recoveries
(21)1,650 1,550 1,250 1,150 
Depreciation and amortization26,498 100,597 100,397 100,597 100,397 
Impairment of real estate investments
9,700 — — 9,700 9,700 
Net operating income$39,495 $162,350 $166,350 $162,350 $166,350 
S-16

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 Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Adjusted EBITDA$31,626 $34,894 $35,231 $34,939 $32,636 
Interest Expense10,470 11,537 12,989 10,719 9,622 
Principal Amortization1,567 1,939 2,000 1,853 1,906 
Total Interest Expense and Principal Amortization12,03713,47614,98912,57211,528
Distributions paid to Series D preferred unitholders5757109160160
Total Interest Expense, Principal Amortization, and preferred distributions12,09413,53315,09812,73211,688
Debt Service Coverage Ratio2.632.592.352.782.83
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization2.622.582.332.742.79
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-17

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”) 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-18

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 Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Total debt(1)
$1,047,846 $1,053,909 $1,177,284 $1,121,292 $966,092 
Less: cash and cash equivalents7,555 12,833 12,896 12,378 11,916 
Less: 1031 funds in restricted cash— — 50,941 — — 
Net debt$1,040,291 $1,041,076 $1,113,447 $1,108,914 $954,176 
Adjusted EBITDA(2)
$126,504 $139,576 $140,924 $139,756 $130,544 
Net debt/Adjusted EBITDA8.227.467.907.937.31
Preferred Equity
$5,940 $5,940 $5,940 $11,310 $16,560 
Net debt and preferred equity$1,046,231 $1,047,016 $1,119,387 $1,120,224 $970,736 
Adjusted EBITDA(2)
$126,504 $139,576 $140,924 $139,756 $130,544 
Net debt and preferred equity/Adjusted EBITDA8.277.507.948.027.44
(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, 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 Ended
3/31/202612/31/20259/30/20256/30/20253/31/2025
Common distribution per share and unit$0.77 $0.77 $0.77 $0.77 $0.77 
Core FFO per common share and unit diluted1.12 1.25 1.19 1.28 1.21 
Payout ratio68.8 %61.6 %64.7 %60.2 %63.6 %
S-19

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.
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 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-20

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-21

Source: View Original Filing on SEC EDGAR

FAQ

How did Centerspace (CSR) perform financially in Q1 2026?

Centerspace reported Q1 2026 revenue of $65.1 million, down 3.0% from $67.1 million a year earlier, mainly due to prior-year asset sales. Net loss was $(0.77) per diluted share, compared with $(0.22) per diluted share in the same quarter of 2025.

What were Centerspace’s Q1 2026 FFO and Core FFO per share?

For Q1 2026, Centerspace generated FFO of $1.07 per diluted share and Core FFO of $1.12 per diluted share. Both metrics declined from Q1 2025, when FFO and Core FFO were $1.17 and $1.21 per diluted share, reflecting the impact of property dispositions.

How did Centerspace’s same-store portfolio perform in Q1 2026?

Centerspace’s Q1 2026 same-store revenue was essentially flat year over year, while same-store NOI declined 1.1% as expenses increased 1.7%. Same-store weighted average occupancy remained high at 95.4%, indicating solid leasing levels despite modest margin pressure.

What is Centerspace’s 2026 outlook for FFO and Core FFO?

For full-year 2026, Centerspace guides to FFO per diluted share of $4.65 to $4.92 and reaffirms Core FFO per diluted share of $4.81 to $5.05. These ranges reflect management’s expectations for stable cash-flow performance despite current earnings headwinds.

What is Centerspace’s balance sheet and liquidity position as of Q1 2026?

At quarter-end, Centerspace had $267.1 million of total liquidity, including $259.6 million available under credit lines and $7.6 million of cash. Total debt was $1.05 billion with a 3.60% weighted average interest rate, and debt-to-market capitalization was 48.1%.

How much is Centerspace paying in common distributions relative to Core FFO?

For Q1 2026, Centerspace declared a common distribution of $0.77 per share and unit. This represents a payout ratio of 68.8% when compared with Q1 2026 Core FFO of $1.12 per diluted share and unit, indicating coverage by operating cash-flow metrics.

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents