Centerspace : First Quarter 2026 CSR 1Q26 Supplemental

Published: 2026-05-04 17:10:27 ET CSR

Published on 05/04/2026 at 05:10 pm EDT

‌

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.

Per Common Share

2026

2025

Net loss - diluted

(0.77)

(0.22)

FFO - diluted(1)

1.07

1.17

Core FFO - diluted(1)

1.12

1.21

Same-Store Results(2)

Year-Over-Year Comparison

Q1 2026 vs. Q1 2025 Q1

Sequential Comparison

2026 vs. Q4 2025

Revenues

(0.3)%

Expenses

1.7%

8.2%

NOI(1)

(1.1)%

(5.1)%

Three months ended

Same-Store Results(2)

March 31,

2026

December 31, 2025

March 31,

2025

Weighted Average Occupancy

95.4%

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 Rate

54.1%

55.5%

52.2%

NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below.

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.

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.

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.

Low

High

Low

High

Net loss per Share - diluted

$(0.49)

$(0.19)

$(0.95)

$(0.66)

Same-Store Revenue

0.00%

1.75%

0.00%

1.75%

Same-Store Expenses

1.00%

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

Additional assumptions:

$4.81

$5.05

$4.81

$5.05

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.

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 https://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: [email protected]

Marketing & Media Kelly Weber

Phone: 952-401-6600

Email: [email protected]

March 31, 2026

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

COMMON SHARE DATA (NYSE: CSR)

Three Months Ended

March 31, 2026

December 31,

2025

September 30,

2025

June 30, 2025

March 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

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

REVENUE

$ 65,069

$ 66,621

$ 71,399

$ 68,549

$ 67,093

EXPENSES

Property operating expenses, excluding real estate taxes

18,242

18,496

21,210

18,853

19,068

Real estate taxes

7,332

6,140

7,165

7,678

7,663

Property management expense

2,379

2,323

2,489

2,393

2,433

Casualty loss, net of recoveries

(21)

(242)

127

399

532

Depreciation and amortization

26,498

29,424

29,056

27,097

27,654

Impairment of real estate investments

9,700

14,500

8,676

14,543

General and administrative expenses

6,332

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)

(109)

(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)

‌CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)‌

(in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

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 investments

1,832,393

1,863,896

1,897,949

1,809,608

1,831,743

Cash and cash equivalents

7,555

12,833

12,896

12,378

11,916

Restricted cash

2,710

2,818

52,943

5,815

6,144

Other assets

44,928

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 credit

150,429

154,925

222,500

216,030

48,734

Notes payable, net

299,594

299,579

299,564

299,550

299,535

Mortgages payable, net

565,611

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

11,310

16,560

EQUITY

Common Shares of Beneficial Interest

1,370,461

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

‌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.

‌RECONCILIATIONS OF OPERATING INCOME (LOSS) TO NET OPERATING INCOME (1)‌

(dollars in thousands)

Three Months Ended

Seque

ntial

Year-Over-Year

3/31/2026

12/31/2025

3/31/2025

$ Change

% Change

$ Change

% Change

Operating income (loss)

$ (5,393)

$ (10,623)

$ 4,746

$ 5,230

(49.2)%

$ (10,139)

(213.6)%

Adjustments:

Property management expenses

2,379

2,323

2,433

2.4 %

(54)

(2.2)%

Casualty loss, net of recoveries

(21)

(242)

532

221

(91.3)%

(553)

(103.9)%

Depreciation and amortization

26,498

29,424

27,654

(2,926)

(9.9)%

(1,156)

(4.2)%

Impairment of real estate investments

9,700

14,500

(4,800)

(33.1)%

9,700

N/A

General and administrative expenses

6,332

6,542

4,997

(210)

(3.2)%

1,335

26.7 %

Loss on sale of real estate and other investments

(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-store

5,958

5,802

1,210

156

4,748

Other properties

921

963

817

(42)

(4.4)%

104

12.7 %

Dispositions

(8)

1,481

6,873

(1,489)

(6,881)

Total

65,069

66,621

67,093

(1,552)

(2.3)%

(2,024)

(3.0)%

Property operating expenses, including real estate taxes

Same-store

22,929

21,192

22,536

1,737

8.2 %

393

1.7 %

Non-same-store

2,367

2,238

632

129

1,735

Other properties

305

241

332

26.6 %

(27)

(8.1)%

Dispositions

(27)

965

3,231

(992)

(3,258)

Total

25,574

24,636

26,731

938

3.8 %

(1,157)

(4.3)%

Net operating income(1)

Same-store

35,269

37,183

35,657

(1,914)

(5.1)%

(388)

(1.1)%

Non-same-store

3,591

3,564

578

3,013

Other properties

616

722

485

(106)

(14.7)%

131

27.0 %

Dispositions

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.

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

(dollars in thousands)

2026

2025

$ 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 %

Utilities

4,090

4,009

2.0 %

Administrative and marketing

1,565

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)%

Insurance

2,160

2,143

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 properties

305

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)%

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.

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

Includes turnover expense.

* Not a meaningful percentage.

‌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)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

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 amortization

26,498

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 investments

9,700

14,500

8,676

14,543

(Gain) loss on sale of real estate

(79,531)

Less gain on sale of real estate - partially owned entities

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

Interest rate swap amortization

174

175

Amortization of assumed debt

365

593

530

418

417

Legal and other costs related to strategic review

977

1,336

Other miscellaneous items(2)

(209)

(4)

(455)

(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 unitholders

109

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 unitholders

109

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 FFO

914

948

966

971

980

Effect of Series D preferred units for net income, FFO and Core FFO

155

228

Effect of Series E preferred units for net income, FFO and Core FFO

1,892

1,894

1,898

1,905

1,906

Effect of dilutive restricted stock units and stock options for net income, FFO and Core FFO

Weighted average shares and Units for net income, FFO and Core FFO - diluted

19,692

19,699

19,771

19,870

19,876

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.

Consists of (gain) loss on investments.

‌RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS TO ADJUSTED EBITDA(1)‌

(in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

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 unitholders

109

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 expense

10,470

11,537

12,989

10,719

9,622

Loss on extinguishment of debt

Depreciation and amortization related to real estate investments

26,498

29,424

29,056

27,076

27,632

Impairment of real estate investments

9,700

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

(77,280)

Legal and other costs related to strategic review

977

1,336

Other miscellaneous items(2)

(209)

(4)

(455)

(67)

Adjusted EBITDA

$ 31,626

$ 34,894

$ 35,231

$ 34,939

$ 32,636

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.

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

DEBT ANALYSIS

(in thousands)

Secured Fixed Debt

Unsecured Fixed Debt

Unsecured Variable Debt

Total Debt

% of Total Debt

Weighted Average Interest Rate(1)

2026 (remainder)

$ 50,955

$ -

$ 429

$ 51,384

4.9 %

3.47 %

2027

46,677

4.5 %

3.47 %

2028

60,000

50,000

150,000

260,000

24.8 %

4.13 %

2029

19,288

75,000

94,288

9.0 %

3.94 %

2030

85,000

8.1 %

2.62 %

Thereafter

420,497

90,000

510,497

48.7 %

3.45 %

Subtotal

597,417

300,000

150,429

1,047,846

100.0 %

3.60 %

Premiums and discounts, net

(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.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

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 facility

198,850

Unsecured variable rate line of credit

150,429

154,925

222,500

216,030

48,734

Unsecured senior notes

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)

(3,560)

Debt total

$1,015,634

$1,021,164

$1,144,138

$1,111,248

$ 955,453

Weighted average interest rates

Mortgages payable - other rate

3.88 %

3.87 %

4.03 %

4.02 %

Mortgages payable - Fannie Mae Credit Facility rate

2.78 %

Lines of credit rate(2)

4.88 %

5.12 %

5.51 %

5.75 %

5.76 %

Unsecured senior notes rate

3.12 %

Total debt

3.60 %

3.64 %

3.80 %

3.90 %

3.57 %

Excludes premiums, discounts, and deferred financing costs.

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.

Reclassified from Accumulated OCI into interest expense $ - $ - $ 58 $ 174 $ 175

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Equity Capitalization

Common shares outstanding

16,803

16,761

16,703

16,757

16,735

Operating partnership units outstanding

901

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, outstanding

19,588

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

$ 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 %

Excludes deferred financing costs and debt premiums and discounts.

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.

3/31/2026 12/31/2025

9/30/2025

6/30/2025

3/31/2025

Debt service coverage ratio(1)

2.63

2.59

2.35

2.78

2.83

Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization(1)

2.62

2.58

2.33

2.74

2.79

Net debt/Adjusted EBITDA(1)

8.22

7.46

7.90

7.93

7.31

Net debt and preferred equity/Adjusted EBITDA(1)

8.27

7.50

7.94

8.02

7.44

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

Payout ratio (Core FFO per diluted share and unit basis)(1) 68.8 % 61.6 % 64.7 % 60.2 % 63.6 %

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.

SAME-STORE FIRST QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

Apartment

Revenues

Expenses

NOI(2)

Regions

Included

Q1 2026 Q1 2025

% Change Q1 2026

Q1 2025

% Change Q1 2026

Q1 2025

% Change

Denver, CO

1,977

$ 11,912 $ 12,615

(5.6)% $ 4,681

$ 4,842

(3.3)% $ 7,231

$ 7,773

(7.0)%

Minneapolis, MN

3,745

19,655 19,375

1.4 % 8,336

8,119

2.7 % 11,319

11,256

0.6 %

Boulder/Ft. Collins, CO

559

3,384 3,461

(2.2)% 1,242

1,050

18.3 % 2,142

2,411

(11.2)%

North Dakota

1,710

7,866 7,516

4.7 % 3,024

3,003

0.7 % 4,842

4,513

7.3 %

Omaha, NE

872

3,884 3,751

3.5 % 1,336

1,418

(5.8)% 2,548

2,333

9.2 %

Rochester, MN

1,129

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 Total

11,214

$ 58,198 $ 58,193

- % $ 22,929

$ 22,536

1.7 % $ 35,269

$ 35,657

(1.1)%

Homes

Weighted Average Occupancy (3)

Average Monthly Rental Rate (3)

Average Monthly Revenue per Occupied Home (3)

Regions

% of NOI

Q1 2026

Q1 2025

Growth

Q1 2026

Q1 2025

% Change

Q1 2026

Q1 2025

% Change

Denver, CO

20.5 %

93.5 %

94.7 %

(1.2)%

$ 1,936

$ 1,976

(2.0)%

$ 2,148

$ 2,275

(5.6)%

Minneapolis, MN

32.1 %

96.2 %

- %

1,622

1,590

2.0 %

1,819

1,794

1.4 %

Boulder/Ft. Collins, CO

6.1 %

95.4 %

96.2 %

(0.8)%

1,913

1,910

0.2 %

2,114

2,145

(1.4)%

North Dakota

13.7 %

95.7 %

96.9 %

(1.2)%

1,462

1,380

5.9 %

1,603

1,513

5.9 %

Omaha, NE

7.2 %

95.5 %

94.1 %

1.4 %

1,427

1,378

3.6 %

1,554

1,524

2.0 %

Rochester, MN

10.6 %

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 Total

100.0 %

95.4 %

95.8 %

(0.4)%

$ 1,643

$ 1,616

1.7 %

$ 1,813

- %

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

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.

Refer to pages S-17 through S-21 "Non-GAAP Financial Measures and Other Terms" for definitions.

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

Apartment

Revenues

Expenses

NOI(2)

Regions

Included

Q1 2026 Q4 2025

% Change Q1 2026

Q4 2025

% Change Q1 2026

Q4 2025

% Change

Denver, CO

1,977

$ 11,912 $ 12,121

(1.7)% $ 4,681

$ 4,308

8.7 % $ 7,231

$ 7,813

(7.4)%

Minneapolis, MN

3,745

19,655 19,580

0.4 % 8,336

8,420

(1.0)% 11,319

11,160

1.4 %

Boulder/Ft. Collins, CO

559

3,384 3,441

(1.7)% 1,242

1,064

16.7 % 2,142

2,377

(9.9)%

North Dakota

1,710

7,866 7,868

- % 3,024

2,533

19.4 % 4,842

5,335

(9.2)%

Omaha, NE

872

3,884 3,893

(0.2)% 1,336

890

50.1 % 2,548

3,003

(15.2)%

Rochester, MN

1,129

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 Total

11,214

$ 58,198 $ 58,375

(0.3)% $ 22,929

$ 21,192

8.2 % $ 35,269

$ 37,183

(5.1)%

Homes

Weighted Average Occupancy (3)

Average Monthly Rental Rate (3)

Average Monthly Revenue per Occupied Home (3)

Regions

% of NOI

Q1 2026

Q4 2025

Growth

Q1 2026

Q4 2025

% Change

Q1 2026

Q4 2025

% Change

Denver, CO

20.5 %

93.5 %

93.9 %

(0.4)%

$ 1,936

$ 1,938

(0.1)%

$ 2,148

$ 2,186

(1.7)%

Minneapolis, MN

32.1 %

96.2 %

95.8 %

0.4 %

1,622

1,620

0.1 %

1,819

- %

Boulder/Ft. Collins, CO

6.1 %

95.4 %

95.8 %

(0.4)%

1,913

1,903

0.5 %

2,114

2,142

(1.3)%

North Dakota

13.7 %

95.7 %

96.1 %

(0.4)%

1,462

1,455

0.5 %

1,603

1,597

0.4 %

Omaha, NE

7.2 %

95.5 %

95.2 %

0.3 %

1,427

1,423

0.3 %

1,554

1,564

(0.6)%

Rochester, MN

10.6 %

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 Total

100.0 %

95.4 %

95.3 %

0.1 %

$ 1,643

$ 1,640

0.2 %

$ 1,813

$ 1,819

(0.3)%

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

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.

Refer to pages S-17 through S-21 "Non-GAAP Financial Measures and Other Terms" for definitions.

‌PORTFOLIO SUMMARY(1)‌

Number of Apartment Homes at Period End

Same-Store

11,214

11,084

12,595

Non-Same-Store

1,049

1,178

758

417

All Communities(2)

12,263

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-Store

1,848

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-Store

2,058

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-Store

95.4 %

95.3 %

95.8 %

96.1 %

95.8 %

Non-Same-Store

92.0 %

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-Store

41.5 %

38.3 %

41.6 %

40.6 %

42.4 %

Non-Same-Store

40.7 %

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

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

Excludes apartment communities classified as held for sale as of September 30, 2025 and June 30, 2025.

Refer to pages S-17 through S-21 "Non-GAAP Financial Measures and Other Terms" for definitions.

‌CAPITAL EXPENDITURES‌

(dollars in thousands, except per home amounts)

Capital Expenditures

3/31/2026

3/31/2025

Total Same-Store Apartment Homes

11,214

11,213

All Properties - Weighted Average Apartment Homes(3)

12,263

13,012

Same-Store

Building - Exterior

$ 466

$ 564

Building - Interior

143

Mechanical, Electrical, & Plumbing

688

445

Furniture & Equipment

Landscaping & Grounds

234

Turnover Replacements

832

750

Work in progress - net change

(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

All Properties

1,445 $

564

Total Capital Spend - All Properties

$ 4,857

$ 3,871

Total Capital Spend per Weighted Average Apartment Home - All Properties

$ 396

$ 297

Refer to pages S-17 through S-21 "Non-GAAP Financial Measures and Other Terms" for definitions.

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

Includes all properties, including held for sale and dispositions.

‌2026 Financial Outlook‌

(in thousands, except per share and per home amounts)

Centerspace reaffirmed its financial outlook for 2026 in the table below.

Three Months Ended

Low

High

Low

High

March 31, 2026

Amount

Same-store growth

Revenue

$ 58,198

0.00 %

1.75 %

0.00 %

1.75 %

Controllable expenses

14,295

0.50 %

1.50 %

0.50 %

1.50 %

Non-controllable expenses

8,634

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 properties

616

2,400

2,600

2,400

2,600

Dispositions

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

(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 income

890

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 debt

365

1,554

1,284

Legal and other costs related to strategic review

977

1,500

750

1,500

1,000

Other miscellaneous items

(209)

(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 - diluted

19,692

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

$ -

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.

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.

Three Months Ended March 31, 2026

Previous Outlook

12 Months Ended

December 31, 2026

Updated Outlook

12 Months Ended

December 31, 2026

Actual

Low

High

Low

High

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 amortization

26,498

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

Distributions to Series D preferred unitholders

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 debt

365

1,554

1,284

Legal and other costs related to strategic review

977

1,500

750

1,500

1,000

Other miscellaneous items

(209)

(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

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.

Three Months Ended March 31, 2026

Previous Outlook

12 Months Ended

December 31, 2026

Updated Outlook

12 Months Ended

December 31, 2026

Actual

Low

High

Low

High

Operating income (loss)

(5,393)

$ 29,703

$ 34,853

$ 20,753

$ 25,653

Adjustments:

General and administrative and property management expenses

8,711

30,400

29,550

30,050

29,450

Casualty loss, net of recoveries

(21)

1,650

1,550

1,250

1,150

Depreciation and amortization

26,498

100,597

100,397

100,597

100,397

Impairment of real estate investments

9,700

Net operating income

39,495

$ 162,350

$ 166,350

$ 162,350

$ 166,350

NON-GAAP FINANCIAL MEASURES AND OTHER TERMS

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 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 is scheduled rent divided by the total number of apartment homes.

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 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.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Adjusted EBITDA

$ 31,626

$ 34,894

$ 35,231

$ 34,939

$ 32,636

Interest Expense

10,470

11,537

12,989

10,719

9,622

Principal Amortization

1,567

1,939

2,000

1,853

1,906

Total Interest Expense and Principal Amortization

12,037

13,476

14,989

12,572

11,528

Distributions paid to Series D preferred unitholders

109

160

Total Interest Expense, Principal Amortization, and preferred distributions

12,094

13,533

15,098

12,732

11,688

Debt Service Coverage Ratio

2.63

2.59

2.35

2.78

2.83

Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization

2.62

2.58

2.33

2.74

2.79

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 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.

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.

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.

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.

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.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Total debt(1)

$ 1,047,846

$ 1,053,909

$ 1,177,284

$ 1,121,292

$ 966,092

Less: cash and cash equivalents

7,555

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 EBITDA

8.22

7.46

7.90

7.93

7.31

Preferred Equity

$ 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 EBITDA

8.27

7.50

7.94

8.02

7.44

Excludes premiums, discounts, and deferred financing costs.

Annualized for periods less than one year.

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.

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) 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.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Common distribution per share and unit

$ 0.77

Core FFO per common share and unit diluted

1.12

1.25

1.19

1.28

1.21

Payout ratio

68.8 %

61.6 %

64.7 %

60.2 %

63.6 %

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.

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

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 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.

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

Weighted average occupancy 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.

Disclaimer

Centerspace published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:02 UTC.