Centerspace Reports Second Quarter 2026 Financial & Operating Results and Updates Financial Outlook Due to Disposition Activity
MINNEAPOLIS, MN, August 3, 2026 – Centerspace (NYSE: CSR) (the “Company”) announced today its financial and operating results for the three and six months ended June 30, 2026. The tables below show Net Loss, Funds from Operations (“FFO”)1, and Core FFO1, all on a per diluted share basis, for the three and six months ended June 30, 2026; Same-Store Revenues, Expenses, and Net Operating Income (“NOI”)1 over comparable periods; and Same-Store Weighted Average Occupancy, Lease Rate Growth, and Resident Retention for each of the three months ended June 30, 2026, March 31, 2026, and June 30, 2025 and the six months ended June 30, 2026 and 2025.
Three Months Ended June 30,
Six Months Ended June 30,
Per Common Share
2026
2025
2026
2025
Net loss - diluted
$
(0.07)
$
(0.87)
$
(0.83)
$
(1.09)
FFO - diluted(1)
$
1.20
$
1.24
$
2.27
$
2.42
Core FFO - diluted(1)
$
1.27
$
1.28
$
2.39
$
2.50
Year-Over-Year Comparison
Sequential Comparison
YTD Comparison
Same-Store Results(2)
Q2 2026 vs. Q2 2025
Q2 2026 vs. Q1 2026
2026 vs. 2025
Revenues
0.1%
1.1%
—%
Expenses
(0.1)%
(4.4)%
2.0%
NOI(1)
0.3%
4.8%
(1.3)%
Three months ended
Six months ended
Same-Store Results(2)
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Weighted Average Occupancy
96.0%
95.4%
95.9%
95.7%
95.9%
Effective New Lease Rate Growth
(0.6)%
(2.5)%
1.5%
(1.4)%
0.2%
Effective Renewal Lease Rate Growth
3.4%
2.8%
2.6%
3.2%
2.8%
Effective Blended Lease Rate Growth (3)
1.8%
—%
2.2%
1.2%
1.6%
Retention Rate
61.3%
54.0%
62.2%
58.9%
60.0%
(1)NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures refer to “Non-GAAP Financial Measures and Reconciliations” and “Non-GAAP Financial Measures and Other Terms” in the Supplemental Financial and Operating Data below.
(2)Same-store results are updated for annual composition change including acquisition, disposition, changes in held for sale classification, and repositioning activity. The current same-store results include 44 apartment communities. During the six months ended June 30, 2026, we reclassified 13 apartment communities from same-store to held for sale and disposed of one apartment community. Refer to “Non-GAAP Financial Measures and Reconciliations” in Supplemental Financial and Operating Data within.
(3)Effective blended lease rate growth is weighted by lease count.
Overview of the Second Quarter
•Disposed of an apartment community consisting of 176 homes in Denver, Colorado for an aggregate sales price of $30.0 million;
•Revenue decreased by $2.8 million or 4.0% to $65.8 million, compared to $68.5 million for the same period of the prior year, primarily due to the sale of 12 apartment communities in the prior year;
1
•Same-store revenues and expenses remained relatively unchanged with a 0.3% increase in same-store NOI compared to the same period of the prior year;
•Net loss was $0.07 per diluted share, compared to net loss of $0.87 per diluted share for the same period of the prior year primarily due to impairment recognized in the prior year;
•Core FFO per diluted share decreased 0.8% to $1.27, compared to $1.28 for the same period of the prior year, primarily due to the sale of 12 apartment communities in the prior year, offset by increased NOI from non-same-store communities and decreased casualty loss; and
•Repurchased 45,310 common shares for an average of $55.54 per share.
Balance Sheet
At the end of the second quarter, Centerspace had $242.6 million of total liquidity on its balance sheet, consisting of $234.0 million available under lines of credit and cash and cash equivalents of $8.6 million.
Subsequent Events
On July 9, 2026, Centerspace completed the disposition of five apartment communities, consisting of 474 homes, located in Rapid City, South Dakota, for an aggregate sale price of $66.0 million.
On July 14, 2026, Centerspace completed the disposition of two apartment communities, consisting of 312 homes, located in Minneapolis, Minnesota, with associated commercial space and tax increment financing note receivable for an aggregate sale price of $73.8 million.
The Company expects to use the proceeds from these dispositions to paydown its line of credit and for general working capital purposes.
Updated 2026 Financial Outlook
Centerspace updated its 2026 financial outlook. The updated outlook includes the impact of expected dispositions and the deleveraging plan. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2026 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated outlook.
Updated Outlook for 2026(1)
Low
High
Net income per Share – diluted
$6.42
$6.82
Same-Store Growth
Revenue
0.00%
1.00%
Expenses
1.50%
2.50%
NOI
(1.00)%
0.00%
FFO per Share – diluted
$4.37
$4.50
Core FFO per Share – diluted
$4.58
$4.68
(1)Updated same-store outlook excludes 13 apartment communities designated as held for sale as of June 30, 2026 and one community disposed during the three months ended June 30, 2026.
Additional assumptions:
•Same-store recurring capital expenditures of $1,250 per home to $1,350 per home
•Value-add expenditures of $3.5 million to $6.0 million
•Gross proceeds from dispositions of $315.0 million to $320.0 million
•Potential special distributions to common shareholders and operating partnership unitholders of $50.0 million to $60.0 million
Previous Outlook for 2026(1)
Low
High
FFO per Share – diluted
$4.65
$4.92
Core FFO per Share – diluted
$4.81
$5.05
(1)Previous same-store information is not comparable due to dispositions and apartment communities designated as held for sale and accordingly is not included.
2
Note: FFO, Core FFO. and NOI are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to “2026 Financial Outlook” in the Supplemental Financial and Operating Data within.
Earnings Call
Management will host a conference call to discuss those results on Tuesday, August 4, 2026, at 10:00 a.m. Eastern Time.
Interested parties may access the conference call via the following:
Live Webcast: https://events.q4inc.com/attendee/119929565
Operator Assisted Dial-In: 1-833-461-5787
Meeting ID: 119929565
Replay Details: Following the conclusion of the earnings call, a replay of the webcast will be hosted at ir.centerspacehomes.com and at https://events.q4inc.com/attendee/119929565 for one year.
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended June 30, 2026 included herein (“Supplemental Information”) is available in the Investors section on Centerspace’s website at https://www.centerspacehomes.com or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2026, Centerspace owned 60 apartment communities consisting of 12,090 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a Top Workplace in 2026 by USA Today and for the seventh consecutive year in 2026 by the Minnesota Star Tribune. For more information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company's current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions, or other items related to the future. Forward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “assumes,” “may,” “projects,” “outlook,” “future,” and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission (“SEC”), including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, in its subsequent quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. In addition, such risks, uncertainties, and other factors include, but are not limited to, the ability of the Company to complete its proposed dispositions on a timely basis, or at all, risks that the Company's completed or proposed dispositions disrupt current plans and operations; the anticipated costs related to the Company's recently completed and proposed dispositions; the ability of the Company to realize the anticipated benefits of its recently completed and proposed dispositions and the intended use of proceeds therefrom, as well as the Company's strategic review. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Closing limited partnership units outstanding (thousands)
882
901
920
963
968
Closing Series E preferred units, as converted (thousands)
1,878
1,884
1,892
1,894
1,898
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)
19,552
19,588
19,573
19,560
19,623
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units and Series E preferred units, as converted (thousands)
$
1,098,627
$
1,125,331
$
1,305,911
$
1,152,084
$
1,181,108
S-1
CENTERSPACE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands)
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
REVENUE
$
65,782
$
65,069
$
66,621
$
71,399
$
68,549
$
130,851
$
135,642
EXPENSES
Property operating expenses, excluding real estate taxes
17,625
18,242
18,496
21,210
18,853
35,867
37,921
Real estate taxes
7,022
7,332
6,140
7,165
7,678
14,354
15,341
Property management expense
2,094
2,379
2,323
2,489
2,393
4,473
4,826
Casualty loss, net of recoveries
(206)
(21)
(242)
127
399
(227)
931
Depreciation and amortization
25,075
26,498
29,424
29,056
27,097
51,573
54,751
Impairment of real estate investments
—
9,700
14,500
8,676
14,543
9,700
14,543
General and administrative expenses
5,659
6,332
6,542
4,997
4,382
11,991
9,379
TOTAL EXPENSES
$
57,269
$
70,462
$
77,183
$
73,720
$
75,345
$
127,731
$
137,692
Gain (loss) on sale of real estate and other investments
271
—
(61)
79,531
—
271
—
Operating income (loss)
8,784
(5,393)
(10,623)
77,210
(6,796)
3,391
(2,050)
Interest expense
(10,623)
(10,470)
(11,536)
(12,989)
(10,724)
(21,093)
(20,359)
Loss on extinguishment of debt
—
—
(95)
(3)
—
—
—
Interest and other income
709
890
776
1,190
735
1,599
1,443
NET INCOME (LOSS)
$
(1,130)
$
(14,973)
$
(21,478)
$
65,408
$
(16,785)
$
(16,103)
$
(20,966)
Distributions to Series D preferred unitholders
(58)
(57)
(57)
(109)
(160)
(115)
(320)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units
168
2,141
3,102
(9,197)
2,483
2,309
3,126
Net income attributable to noncontrolling interests – consolidated real estate entities
—
—
—
(2,319)
(53)
—
(89)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
$
(1,020)
$
(12,889)
$
(18,433)
$
53,783
$
(14,515)
$
(13,909)
$
(18,249)
Per Share Data - Basic
Net income (loss) per common share – basic
$
(0.07)
$
(0.77)
$
(1.10)
$
3.22
$
(0.87)
$
(0.83)
$
(1.09)
Per Share Data - Diluted
Net income (loss) per common share – diluted
$
(0.07)
$
(0.77)
$
(1.10)
$
3.19
$
(0.87)
$
(0.83)
$
(1.09)
S-2
CENTERSPACE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
ASSETS
Real estate investments
Property owned
$
2,261,220
$
2,518,162
$
2,524,020
$
2,536,166
$
2,422,435
Less accumulated depreciation
(605,402)
(685,769)
(660,124)
(638,217)
(612,827)
Total real estate investments
1,655,818
1,832,393
1,863,896
1,897,949
1,809,608
Cash and cash equivalents
8,560
7,555
12,833
12,896
12,378
Restricted cash
1,883
2,710
2,818
52,943
5,815
Other assets
38,993
44,928
46,620
47,516
48,072
Assets held for sale, net
135,111
—
—
86,302
137,366
TOTAL ASSETS
$
1,840,365
$
1,887,586
$
1,926,167
$
2,097,606
$
2,013,239
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses
$
51,370
$
55,872
$
59,247
$
66,124
$
56,070
Revolving lines of credit
176,000
150,429
154,925
222,500
216,030
Notes payable, net
299,608
299,594
299,579
299,564
299,550
Mortgages payable, net
513,975
565,611
566,660
622,074
595,668
Liabilities held for sale, net
1,460
—
—
420
1,029
TOTAL LIABILITIES
$
1,042,413
$
1,071,506
$
1,080,411
$
1,210,682
$
1,168,347
SERIES D PREFERRED UNITS
$
5,940
$
5,940
$
5,940
$
5,940
$
11,310
EQUITY
Common Shares of Beneficial Interest
1,369,753
1,370,461
1,368,834
1,366,980
1,369,376
Accumulated distributions in excess of net income
(689,530)
(675,493)
(649,678)
(618,341)
(659,266)
Accumulated other comprehensive loss
—
—
—
—
(58)
Total shareholders’ equity
$
680,223
$
694,968
$
719,156
$
748,639
$
710,052
Noncontrolling interests – Operating Partnership and Series E preferred units
111,789
115,172
120,660
128,038
121,439
Noncontrolling interests – consolidated real estate entities
—
—
—
4,307
2,091
TOTAL EQUITY
$
792,012
$
810,140
$
839,816
$
880,984
$
833,582
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY
$
1,840,365
$
1,887,586
$
1,926,167
$
2,097,606
$
2,013,239
S-3
CENTERSPACE
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)
This release contains certain non-GAAP financial measures. The non-GAAP financial measures should not be considered a substitute for operating results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The definitions and calculations of these non-GAAP financial measures, as calculated by the Company, may not be comparable to non-GAAP measures reported by other REITs that do not define each of the non-GAAP financial measures exactly as Centerspace does. The non-GAAP financial measures are defined and further explained on pages S-19 through S-23, “Non-GAAP Financial Measures and Other Terms.”
The Company provides certain information on a same-store and non-same-store basis. Same-store apartment communities are owned or stabilized for substantially all of the periods being compared and, in the case of newly-acquired or constructed communities, have achieved a target level of physical occupancy of 90%, or re-positioned communities when they have achieved stabilized operations. Non-same store communities are communities not owned or stabilized as of the beginning of the previous year, including re-positioned communities, and excluding communities held for sale and the non-multifamily components of mixed-use properties.
On the first day of each calendar year, Centerspace determines the composition of its same-store pool for that year as well as adjusts the previous year, which allows the Company to evaluate the performance of existing apartment communities and their contribution to net operating income (“NOI”). The Company believes that measuring performance on a same-store basis is useful to investors because it enables evaluation of how a fixed pool of its communities are performing year-over-year. Centerspace uses this measure to assess whether or not the Company has been successful in increasing NOI (defined and reconciled below), raising average rental revenue, renewing leases on existing residents, controlling operating costs, and making prudent capital improvements.
For the comparison of the six months ended June 30, 2026 and 2025, 44 apartment communities were same-store and three apartment communities and two apartment community were non-same-store, respectively. Communities designated as held for sale are included in “Non-same-store and held for sale.” For the six months ended June 30, 2026, 13 apartment communities were designated as held for sale and included in “Non-same-store and held for sale.” Sold communities are included in “Dispositions,” while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties. During the three and six months ended June 30, 2026, the Company disposed of one apartment community consisting of 176 apartment homes. During the year ended December 31, 2025, the Company disposed of 12 apartment communities consisting of 1,511 apartment homes.
S-4
CENTERSPACE
RECONCILIATIONS OF OPERATING INCOME (LOSS) TO NET OPERATING INCOME (1)
(dollars in thousands)
Three Months Ended
Sequential
Year-Over-Year
6/30/2026
3/31/2026
6/30/2025
$ Change
% Change
$ Change
% Change
Operating income (loss)
$
8,784
$
(5,393)
$
(6,796)
$
14,177
(262.9)
%
$
15,580
(229.3)
%
Adjustments:
Property management expenses
2,094
2,379
2,393
(285)
(12.0)
%
(299)
(12.5)
%
Casualty loss, net of recoveries
(206)
(21)
399
(185)
881.0
%
(605)
(151.6)
%
Depreciation and amortization
25,075
26,498
27,097
(1,423)
(5.4)
%
(2,022)
(7.5)
%
Impairment of real estate investments
—
9,700
14,543
(9,700)
(100.0)
%
(14,543)
(100.0)
%
General and administrative expenses
5,659
6,332
4,382
(673)
(10.6)
%
1,277
29.1
%
Gain on sale of real estate and other investments
(271)
—
—
(271)
N/A
(271)
N/A
Net operating income(1)
$
41,135
$
39,495
$
42,018
$
1,640
4.2
%
$
(883)
(2.1)
%
Revenue
Same-store
$
49,996
$
49,430
$
49,931
$
566
1.1
%
$
65
0.1
%
Non-same-store and held for sale
14,212
13,925
9,909
287
*
4,303
*
Other properties
917
911
779
6
0.7
%
138
17.7
%
Dispositions
657
803
7,930
(146)
*
(7,273)
*
Total
65,782
65,069
68,549
713
1.1
%
(2,767)
(4.0)
%
Property operating expenses, including real estate taxes
Same-store
18,790
19,647
18,809
(857)
(4.4)
%
(19)
(0.1)
%
Non-same-store and held for sale
5,190
5,275
3,797
(85)
*
1,393
*
Other properties
295
302
237
(7)
(2.3)
%
58
24.5
%
Dispositions
372
350
3,688
22
*
(3,316)
*
Total
24,647
25,574
26,531
(927)
(3.6)
%
(1,884)
(7.1)
%
Net operating income(1)
Same-store
31,206
29,783
31,122
1,423
4.8
%
84
0.3
%
Non-same-store and held for sale
9,022
8,650
6,112
372
*
2,910
*
Other properties
622
609
542
13
2.1
%
80
14.8
%
Dispositions
285
453
4,242
(168)
*
(3,957)
*
Total
$
41,135
$
39,495
$
42,018
$
1,640
4.2
%
$
(883)
(2.1)
%
(1)Net operating income is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information. Non-GAAP financial measures should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.
* Not a meaningful percentage.
S-5
(dollars in thousands)
Six Months Ended June 30,
2026
2025
$ Change
% Change
Operating income (loss)
$
3,391
$
(2,050)
$
5,441
(265.4)
%
Adjustments:
Property management expenses
4,473
4,826
(353)
(7.3)
%
Casualty loss, net of recoveries
(227)
931
(1,158)
(124.4)
%
Depreciation and amortization
51,573
54,751
(3,178)
(5.8)
%
Impairment of real estate investments
9,700
14,543
(4,843)
(33.3)
%
General and administrative expenses
11,991
9,379
2,612
27.8
%
Gain on sale of real estate and other investments
(271)
—
(271)
N/A
Net operating income(1)
$
80,630
$
82,380
$
(1,750)
(2.1)
%
Revenue
Same-store
$
99,426
$
99,464
$
(38)
—
%
Non-same-store and held for sale
28,137
18,823
9,314
*
Other properties
1,828
1,580
248
15.7
%
Dispositions
1,460
15,775
(14,315)
*
Total
130,851
135,642
(4,791)
(3.5)
%
Property operating expenses, including real estate taxes
Same-store
38,437
37,685
752
2.0
%
Non-same-store and held for sale
10,467
7,617
2,850
*
Other properties
596
564
32
5.7
%
Dispositions
721
7,396
(6,675)
*
Total
50,221
53,262
(3,041)
(5.7)
%
Net operating income(1)
Same-store
60,989
61,779
(790)
(1.3)
%
Non-same-store and held for sale
17,670
11,206
6,464
*
Other properties
1,232
1,016
216
21.3
%
Dispositions
739
8,379
(7,640)
*
Total
$
80,630
$
82,380
$
(1,750)
(2.1)
%
(1)Net operating income is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information. Non-GAAP financial measures should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.
* Not a meaningful percentage.
S-6
CENTERSPACE
RECONCILIATIONS OF SAME-STORE CONTROLLABLE EXPENSES TO TOTAL PROPERTY OPERATING EXPENSES, INCLUDING REAL ESTATE TAXES (1)
(dollars in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
$ Change
% Change
2026
2025
$ Change
% Change
Same-store controllable expenses
On-site compensation(2)
$
5,096
$
5,053
$
43
0.9
%
$
10,037
$
9,996
$
41
0.4
%
Repairs and maintenance(3)
2,612
2,731
(119)
(4.4)
%
5,019
4,871
148
3.0
%
Utilities
2,625
2,571
54
2.1
%
6,066
5,883
183
3.1
%
Administrative and marketing
1,282
1,237
45
3.6
%
2,616
2,323
293
12.6
%
Total
$
11,615
$
11,592
$
23
0.2
%
$
23,738
$
23,073
$
665
2.9
%
Same-store non-controllable expenses
Real estate taxes
$
5,361
$
5,553
$
(192)
(3.5)
%
$
10,989
$
11,150
$
(161)
(1.4)
%
Insurance
1,814
1,664
150
9.0
%
3,710
3,462
248
7.2
%
Total
$
7,175
$
7,217
$
(42)
(0.6)
%
$
14,699
$
14,612
$
87
0.6
%
Total property operating expenses, including real estate taxes - same-store
$
18,790
$
18,809
$
(19)
(0.1)
%
$
38,437
$
37,685
$
752
2.0
%
Property operating expenses, including real estate taxes - non-same-store and held for sale
$
5,190
$
3,797
$
1,393
*
$
10,467
$
7,617
$
2,850
*
Property operating expenses, including real estate taxes - other properties
295
237
58
24.5
%
596
564
32
5.7
%
Property operating expenses, including real estate taxes - dispositions
372
3,688
(3,316)
*
721
7,396
(6,675)
*
Total property operating expenses, including real estate taxes
$
24,647
$
26,531
$
(1,884)
(7.1)
%
$
50,221
$
53,262
$
(3,041)
(5.7)
%
(1)Same-store controllable expenses is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)On-site compensation for administration, leasing, and maintenance personnel.
(3)Includes turnover expense.
* Not a meaningful percentage.
S-7
CENTERSPACE
RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS AND CORE FUNDS FROM OPERATIONS (1)
(in thousands, except per share amounts)
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Funds from Operations(1)
Net income (loss) available to common shareholders
$
(1,020)
$
(12,889)
$
(18,433)
$
53,783
$
(14,515)
$
(13,909)
$
(18,249)
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units
(168)
(2,141)
(3,102)
9,197
(2,483)
(2,309)
(3,126)
Depreciation and amortization
25,075
26,498
29,424
29,056
27,097
51,573
54,751
Less depreciation – non real estate
(67)
(67)
(83)
(85)
(84)
(134)
(167)
Less depreciation – partially owned entities
—
—
—
—
(21)
—
(43)
Impairment of real estate investments
—
9,700
14,500
8,676
14,543
9,700
14,543
(Gain) loss on sale of real estate
(271)
—
61
(79,531)
—
(271)
—
Less gain on sale of real estate - partially owned entities
—
—
1
2,251
—
—
—
Add loss on sale of non real estate assets
—
—
(50)
—
—
—
—
FFO applicable to common shares and Units
$
23,549
$
21,101
$
22,318
$
23,347
$
24,537
$
44,650
$
47,709
Adjustments to Core FFO(1):
Non-cash casualty loss (recovery)
(65)
(193)
229
(123)
149
(258)
431
Loss on extinguishment of debt
—
—
95
3
—
—
—
Interest rate swap amortization
—
—
—
58
174
—
349
Amortization of assumed debt
489
365
593
530
418
854
835
Severance and related costs
880
—
—
—
—
880
—
Legal and other costs related to strategic review
127
977
1,336
—
—
1,104
—
Other miscellaneous items(2)
—
(209)
(4)
(455)
19
(209)
(48)
Core FFO applicable to common shares and Units
$
24,980
$
22,041
$
24,567
$
23,360
$
25,297
$
47,021
$
49,276
FFO applicable to common shares and Units
$
23,549
$
21,101
$
22,318
$
23,347
$
24,537
$
44,650
$
47,709
Distributions to Series D preferred unitholders
58
57
57
109
160
115
320
FFO applicable to common shares and Units - diluted
$
23,607
$
21,158
$
22,375
$
23,456
$
24,697
$
44,765
$
48,029
Core FFO applicable to common shares and Units
$
24,980
$
22,041
$
24,567
$
23,360
$
25,297
$
47,021
$
49,276
Distributions to Series D preferred unitholders
58
57
57
109
160
115
320
Core FFO applicable to common shares and Units - diluted
$
25,038
$
22,098
$
24,624
$
23,469
$
25,457
$
47,136
$
49,596
Per Share Data
Net income (loss) per share and Unit - diluted
$
(0.07)
$
(0.77)
$
(1.10)
$
3.19
$
(0.87)
$
(0.83)
$
(1.09)
FFO per share and Unit - diluted(1)
$
1.20
$
1.07
$
1.14
$
1.19
$
1.24
$
2.27
$
2.42
Core FFO per share and Unit - diluted(1)
$
1.27
$
1.12
$
1.25
$
1.19
$
1.28
$
2.39
$
2.50
Weighted average shares - basic for net income (loss)
16,810
16,775
16,719
16,726
16,741
16,792
16,734
Effect of operating partnership Units for net income, FFO and Core FFO
895
914
948
966
971
905
975
Effect of Series D preferred units for net income, FFO and Core FFO
82
82
82
155
228
82
228
Effect of Series E preferred units for net income, FFO and Core FFO
1,883
1,892
1,894
1,898
1,905
1,888
1,906
Effect of dilutive restricted stock units and stock options for net income, FFO and Core FFO
29
29
56
26
25
29
25
Weighted average shares and Units for net income, FFO and Core FFO - diluted
19,699
19,692
19,699
19,771
19,870
19,696
19,868
(1)Funds from operations and Core funds from operations are non-GAAP measures. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Consists of (gain) loss on investments.
S-8
CENTERSPACE
RECONCILIATIONS OF NET INCOME (LOSS) AVAILABLE TO CONTROLLING INTERESTS
TO ADJUSTED EBITDA(1)
(in thousands)
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Adjusted EBITDA
Net income (loss) attributable to controlling interests
$
(1,020)
$
(12,889)
$
(18,433)
$
53,783
$
(14,515)
$
(13,909)
$
(18,249)
Adjustments:
Distributions to Series D preferred unitholders
58
57
57
109
160
115
320
Noncontrolling interests – Operating Partnership and Series E preferred units
(168)
(2,141)
(3,102)
9,197
(2,483)
(2,309)
(3,126)
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units
$
(1,130)
$
(14,973)
$
(21,478)
$
63,089
$
(16,838)
$
(16,103)
$
(21,055)
Adjustments:
Interest expense
10,623
10,470
11,537
12,989
10,719
21,093
20,341
Loss on extinguishment of debt
—
—
95
3
—
—
—
Depreciation and amortization related to real estate investments
25,075
26,498
29,424
29,056
27,076
51,573
54,708
Impairment of real estate investments
—
9,700
14,500
8,676
14,543
9,700
14,543
Non-cash casualty loss (recovery)
(65)
(193)
229
(123)
149
(258)
431
Interest income
(658)
(644)
(757)
(724)
(729)
(1,302)
(1,345)
(Gain) loss on sale of real estate
(271)
—
12
(77,280)
—
(271)
—
Severance related costs
880
—
—
—
—
880
—
Legal and other costs related to strategic review
127
977
1,336
—
—
1,104
—
Other miscellaneous items(2)
—
(209)
(4)
(455)
19
(209)
(48)
Adjusted EBITDA
$
34,581
$
31,626
$
34,894
$
35,231
$
34,939
$
66,207
$
67,575
(1)Adjusted EBITDA is a non-GAAP measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Consists of (gain) loss on investments and one-time professional fees.
S-9
CENTERSPACE
DEBT ANALYSIS
(in thousands)
Debt Maturity Schedule
by Expiration
Future Maturities of Debt
Secured Fixed Debt
Unsecured Fixed Debt
Unsecured Variable Debt
Total Debt
% of Total Debt
Weighted
Average Interest Rate(1)
2026 (remainder)
$
—
$
—
$
—
$
—
—
%
—
%
2027
46,330
—
—
46,330
4.5
%
3.47
%
2028
60,000
50,000
176,000
286,000
28.0
%
4.19
%
2029
19,198
75,000
—
94,198
9.2
%
3.94
%
2030
—
85,000
—
85,000
8.3
%
2.62
%
Thereafter
419,619
90,000
—
509,619
50.0
%
3.45
%
Subtotal
545,147
300,000
176,000
1,021,147
100.0
%
3.63
%
Premiums and discounts, net
(28,533)
—
—
(28,533)
Deferred financing costs, net
(2,639)
(392)
—
(3,031)
Total debt
$
513,975
$
299,608
$
176,000
$
989,583
(1)Weighted average interest rate of debt that matures during the year.
Mortgages payable - Fannie Mae credit facility rate
2.78
%
2.78
%
2.78
%
2.78
%
2.78
%
Lines of credit rate(2)
4.87
%
4.88
%
5.12
%
5.51
%
5.75
%
Unsecured senior notes rate
3.12
%
3.12
%
3.12
%
3.12
%
3.12
%
Total debt
3.63
%
3.60
%
3.64
%
3.80
%
3.90
%
(1)Excludes premiums, discounts, and deferred financing costs.
(2)Interest rate excludes any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps, as shown in the table below.
Three Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Reclassified from Accumulated OCI into interest expense
$
—
$
—
$
—
$
58
$
174
S-10
CENTERSPACE
CAPITAL ANALYSIS
(in thousands, except per share and unit amounts)
Three Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Equity Capitalization
Common shares outstanding
16,792
16,803
16,761
16,703
16,757
Operating partnership units outstanding
882
901
920
963
968
Series E preferred units (as converted)
1,878
1,884
1,892
1,894
1,898
Total common shares, Units, and Series E preferred units, as converted, outstanding
19,552
19,588
19,573
19,560
19,623
Market price per common share (closing price at end of period)
$
56.19
$
57.45
$
66.72
$
58.90
$
60.19
Equity capitalization-common shares and Units
$
1,098,627
$
1,125,331
$
1,305,911
$
1,152,084
$
1,181,108
Series D preferred units
$
5,940
$
5,940
$
5,940
$
5,940
$
11,310
Debt Capitalization
Total debt(1)
$
1,021,147
$
1,047,846
$
1,053,909
$
1,177,284
$
1,121,292
Total market capitalization
$
2,125,714
$
2,179,117
$
2,365,760
$
2,335,308
$
2,313,710
Total debt to total market capitalization(2)
48.0
%
48.1
%
44.5
%
50.4
%
48.5
%
(1)Excludes deferred financing costs and debt premiums and discounts.
(2)Total debt to total market capitalization is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Debt service coverage ratio(1)
2.86
x
2.63
x
2.59
x
2.35
x
2.78
x
2.74
x
2.80
x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization(1)
2.84
x
2.62
x
2.58
x
2.33
x
2.74
x
2.73
x
2.77
x
Net debt/Adjusted EBITDA(1)
7.32
x
8.22
x
7.46
x
7.90
x
7.93
x
7.65
x
8.21
x
Net debt and preferred equity/Adjusted EBITDA(1)
7.36
x
8.27
x
7.50
x
7.94
x
8.02
x
7.69
x
8.29
x
Distribution Data
Common shares and Units outstanding at record date (in thousands)
17,685
17,692
17,679
17,662
17,717
17,685
17,717
Total common distribution declared (in thousands)
$
13,618
$
13,624
$
13,613
$
13,600
$
13,642
$
27,242
$
27,275
Common distribution per share and Unit
$
0.77
$
0.77
$
0.77
$
0.77
$
0.77
$
1.54
$
1.54
Payout ratio (FFO per share and Unit basis)
Payout ratio (Core FFO per diluted share and unit basis)(1)
60.6
%
68.8
%
61.6
%
64.7
%
60.2
%
64.4
%
61.6
%
(1)Debt service coverage ratio, adjusted EBITDA divided by interest expense plus preferred distributions and principal amortization, net debt divided by adjusted EBITDA, net debt and preferred equity divided by adjusted EBITDA, and payout ratio are non-GAAP financial measures. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
S-11
CENTERSPACE
SAME-STORE SECOND QUARTER COMPARISONS
(in thousands, except property data amounts and percentages)
Apartment Homes Included
Revenues
Expenses
NOI(3)
Regions
Q2 2026
Q2 2025
% Change
Q2 2026
Q2 2025
% Change
Q2 2026
Q2 2025
% Change
Denver, CO
1,801
$
10,935
$
11,585
(5.6)
%
$
4,133
$
4,351
(5.0)
%
$
6,802
$
7,234
(6.0)
%
Minneapolis, MN
3,433
18,141
17,780
2.0
%
7,053
6,964
1.3
%
11,088
10,816
2.5
%
Boulder/Ft. Collins, CO
559
3,367
3,472
(3.0)
%
1,174
1,162
1.0
%
2,193
2,310
(5.1)
%
North Dakota(1)
865
3,969
3,754
5.7
%
1,404
1,378
1.9
%
2,565
2,376
8.0
%
Omaha, NE
872
3,861
3,771
2.4
%
1,483
1,499
(1.1)
%
2,378
2,272
4.7
%
Rochester, MN
1,129
6,369
6,271
1.6
%
2,409
2,319
3.9
%
3,960
3,952
0.2
%
Other Mountain West(2)
748
3,354
3,298
1.7
%
1,134
1,136
(0.2)
%
2,220
2,162
2.7
%
Same-Store Total(5)
9,407
$
49,996
$
49,931
0.1
%
$
18,790
$
18,809
(0.1)
%
$
31,206
$
31,122
0.3
%
% of NOI
Weighted Average Occupancy (4)
Average Monthly
Rental Rate (4)
Average Monthly Revenue per Occupied Home (4)
Regions
Q2 2026
Q2 2025
Growth
Q2 2026
Q2 2025
% Change
Q2 2026
Q2 2025
% Change
Denver, CO
21.8
%
94.6
%
93.9
%
0.7
%
$
1,962
$
2,000
(1.9)
%
$
2,140
$
2,284
(6.3)
%
Minneapolis, MN
35.6
%
96.7
%
96.8
%
(0.1)
%
1,611
1,581
1.9
%
1,822
1,785
2.1
%
Boulder/Ft. Collins, CO
7.0
%
95.7
%
95.6
%
0.1
%
1,921
1,902
1.0
%
2,097
2,167
(3.2)
%
North Dakota(1)
8.2
%
97.0
%
96.9
%
0.1
%
1,409
1,339
5.2
%
1,577
1,498
5.3
%
Omaha, NE
7.6
%
94.6
%
94.2
%
0.4
%
1,428
1,393
2.5
%
1,561
1,530
2.0
%
Rochester, MN
12.7
%
97.4
%
97.6
%
(0.2)
%
1,814
1,779
2.0
%
1,930
1,896
1.8
%
Other Mountain West(2)
7.1
%
95.1
%
96.5
%
(1.4)
%
1,390
1,364
1.9
%
1,572
1,524
3.1
%
Same-Store Total(5)
100.0
%
96.0
%
95.9
%
0.1
%
$
1,668
$
1,647
1.3
%
$
1,846
$
1,845
0.1
%
(1)Includes apartment communities in Grand Forks, North Dakota.
(2)Includes apartment communities in Billings, Montana.
(3)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(4)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(5)Same-store comparisons exclude 13 communities designated as held for sale.
S-12
CENTERSPACE
SAME-STORE SEQUENTIAL QUARTER COMPARISONS
(in thousands, except property data amounts and percentages)
Apartment Homes Included
Revenues
Expenses
NOI(3)
Regions
Q2 2026
Q1 2026
% Change
Q2 2026
Q1 2026
% Change
Q2 2026
Q1 2026
% Change
Denver, CO
1,801
$
10,935
$
11,110
(1.6)
%
$
4,133
$
4,308
(4.1)
%
$
6,802
$
6,802
—
%
Minneapolis, MN
3,433
18,141
17,788
2.0
%
7,053
7,510
(6.1)
%
11,088
10,278
7.9
%
Boulder/Ft. Collins, CO
559
3,367
3,384
(0.5)
%
1,174
1,242
(5.5)
%
2,193
2,142
2.4
%
North Dakota(1)
865
3,969
3,832
3.6
%
1,404
1,667
(15.8)
%
2,565
2,165
18.5
%
Omaha, NE
872
3,861
3,884
(0.6)
%
1,483
1,336
11.0
%
2,378
2,548
(6.7)
%
Rochester, MN
1,129
6,369
6,180
3.1
%
2,409
2,457
(2.0)
%
3,960
3,723
6.4
%
Other Mountain West(2)
748
3,354
3,252
3.1
%
1,134
1,127
0.6
%
2,220
2,125
4.5
%
Same-Store Total(5)
9,407
$
49,996
$
49,430
1.1
%
$
18,790
$
19,647
(4.4)
%
$
31,206
$
29,783
4.8
%
% of NOI
Weighted Average Occupancy (4)
Average Monthly
Rental Rate (4)
Average Monthly Revenue per Occupied Home (4)
Regions
Q2 2026
Q1 2026
Growth
Q2 2026
Q1 2026
% Change
Q2 2026
Q1 2026
% Change
Denver, CO
21.8
%
94.6
%
93.8
%
0.8
%
$
1,962
$
1,973
(0.6)
%
$
2,140
$
2,193
(2.4)
%
Minneapolis, MN
35.6
%
96.7
%
96.1
%
0.6
%
1,611
1,605
0.4
%
1,822
1,798
1.3
%
Boulder/Ft. Collins, CO
7.0
%
95.7
%
95.4
%
0.3
%
1,921
1,913
0.4
%
2,097
2,114
(0.8)
%
North Dakota(1)
8.2
%
97.0
%
96.1
%
0.9
%
1,409
1,399
0.7
%
1,577
1,537
2.6
%
Omaha, NE
7.6
%
94.6
%
95.5
%
(0.9)
%
1,428
1,427
0.1
%
1,561
1,554
0.5
%
Rochester, MN
12.7
%
97.4
%
97.0
%
0.4
%
1,814
1,806
0.4
%
1,930
1,881
2.6
%
Other Mountain West(2)
7.1
%
95.1
%
93.9
%
1.2
%
1,390
1,382
0.6
%
1,572
1,543
1.9
%
Same-Store Total(5)
100.0
%
96.0
%
95.4
%
0.6
%
$
1,668
$
1,665
0.2
%
$
1,846
$
1,835
0.6
%
(1)Includes apartment communities in Grand Forks, North Dakota.
(2)Includes apartment communities in Billings, Montana.
(3)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(4)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(5)Same-store comparisons exclude 13 communities designated as held for sale.
S-13
CENTERSPACE
SAME-STORE YEAR TO DATE COMPARISONS
(in thousands, except property data amounts and percentages)
Apartment Homes Included
Revenues
Expenses
NOI(3)
Regions
2026
2025
% Change
2026
2025
% Change
2026
2025
% Change
Denver, CO
1,801
$
22,045
$
23,243
(5.2)
%
$
8,441
$
8,720
(3.2)
%
$
13,604
$
14,523
(6.3)
%
Minneapolis, MN
3,433
35,929
35,341
1.7
%
14,563
14,186
2.7
%
21,366
21,155
1.0
%
Boulder/Ft. Collins, CO
559
6,751
6,933
(2.6)
%
2,416
2,212
9.2
%
4,335
4,721
(8.2)
%
North Dakota(1)
865
7,801
7,420
5.1
%
3,071
2,984
2.9
%
4,730
4,436
6.6
%
Omaha, NE
872
7,745
7,522
3.0
%
2,819
2,917
(3.4)
%
4,926
4,605
7.0
%
Rochester, MN
1,129
12,549
12,414
1.1
%
4,866
4,513
7.8
%
7,683
7,901
(2.8)
%
Other Mountain West(2)
748
6,606
6,591
0.2
%
2,261
2,153
5.0
%
4,345
4,438
(2.1)
%
Same-Store Total(5)
9,407
$
99,426
$
99,464
—
%
$
38,437
$
37,685
2.0
%
$
60,989
$
61,779
(1.3)
%
% of NOI
Weighted Average Occupancy (4)
Average Monthly
Rental Rate (4)
Average Monthly Revenue per Occupied Home (4)
Regions
2026
2025
Growth
2026
2025
% Change
2026
2025
% Change
Denver, CO
22.3
%
94.2
%
94.3
%
(0.1)
%
$
1,968
$
2,008
(2.0)
%
$
2,166
$
2,281
(5.0)
%
Minneapolis, MN
35.0
%
96.4
%
96.5
%
(0.1)
%
1,608
1,577
2.0
%
1,810
1,778
1.8
%
Boulder/Ft. Collins, CO
7.1
%
95.6
%
95.9
%
(0.3)
%
1,917
1,906
0.6
%
2,106
2,156
(2.3)
%
North Dakota(1)
7.8
%
96.5
%
97.6
%
(1.1)
%
1,404
1,322
6.2
%
1,557
1,470
5.9
%
Omaha, NE
8.1
%
95.0
%
94.2
%
0.8
%
1,427
1,386
3.0
%
1,558
1,527
2.0
%
Rochester, MN
12.6
%
97.2
%
97.1
%
0.1
%
1,810
1,771
2.2
%
1,906
1,887
1.0
%
Other Mountain West(2)
7.1
%
94.5
%
96.4
%
(1.9)
%
1,386
1,360
1.9
%
1,557
1,523
2.2
%
Same-Store Total(5)
100.0
%
95.7
%
95.9
%
(0.2)
%
$
1,666
$
1,644
1.3
%
$
1,840
$
1,838
0.1
%
(1)Includes apartment communities in Grand Forks, North Dakota.
(2)Includes apartment communities in Billings, Montana.
(3)NOI is a non-GAAP financial measure. Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(4)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(5)Same-store comparisons exclude 13 communities designated as held for sale.
S-14
CENTERSPACE
PORTFOLIO SUMMARY(1)
As of and for the Three Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
Number of Apartment Homes at Period End
Same-Store
9,407
11,214
11,084
11,084
11,084
Non-Same-Store and Held for Sale(2)
2,683
1,049
1,178
1,178
758
All Communities(2)
12,090
12,263
12,262
12,262
11,842
Average Monthly Rental Rate(3)
Same-Store
$
1,668
$
1,643
$
1,639
$
1,629
$
1,621
Non-Same-Store and Held for Sale(2)
1,662
1,848
1,842
1,858
1,731
All Communities(2)
$
1,666
$
1,660
$
1,658
$
1,649
$
1,625
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store
$
1,846
$
1,813
$
1,818
$
1,823
$
1,818
Non-Same-Store and Held for Sale(2)
1,840
2,058
2,080
2,090
1,951
All Communities(2)
$
1,844
$
1,834
$
1,843
$
1,846
$
1,844
Weighted Average Occupancy(3)
Same-Store
96.0
%
95.4
%
95.3
%
95.8
%
96.1
%
Non-Same-Store and Held for Sale(2)
95.9
%
92.0
%
89.7
%
87.5
%
85.9
%
All Communities(2)
96.0
%
95.1
%
94.7
%
95.0
%
94.5
%
Property Operating Expenses, including Real Estate Taxes as a % of Scheduled Rent(3)
Same-Store
39.9
%
41.5
%
38.3
%
41.6
%
40.6
%
Non-Same-Store and Held for Sale(2)
38.8
%
40.7
%
39.3
%
42.6
%
44.0
%
All Communities(2)
39.7
%
41.4
%
38.4
%
41.7
%
40.8
%
Capital Expenditures
Total Recurring Capital Expenditures(3) per Apartment Home – Same-Store
$
303
$
198
$
269
$
350
$
370
(1)Previously reported amounts are not revised for changes in the composition of the same-store properties pool.
(2)Includes apartment communities classified as held for sale as of June 30, 2026 and excludes apartment communities classified as held for sale as of September 30, 2025, and June 30, 2025.
(3)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
S-15
CENTERSPACE
CAPITAL EXPENDITURES
(dollars in thousands, except per home amounts)
Three Months Ended
Six Months Ended
Capital Expenditures
6/30/2026
6/30/2025
6/30/2026
6/30/2025
Total Same-Store Apartment Homes
9,407
9,406
9,407
9,406
All Properties - Weighted Average Apartment Homes(3)
12,262
13,132
12,264
13,072
Same-Store
Building - Exterior
$
667
$
1,218
$
935
$
1,340
Building - Interior
23
13
97
149
Mechanical, Electrical, & Plumbing
595
526
1,157
874
Furniture & Equipment
90
195
153
212
Landscaping & Grounds
215
139
266
221
Turnover Replacements
817
665
1,524
1,303
Work in progress - net change
448
281
518
460
Recurring Capital Expenditures(1) - Same-Store
$
2,855
$
3,037
$
4,650
$
4,559
Recurring Capital Expenditures(1) per Apartment Home - Same-Store
$
303
$
323
$
494
$
485
Recurring Capital Expenditures(1) - All Properties
$
3,562
$
5,105
$
5,731
$
7,323
Recurring Capital Expenditures(1) per Weighted Average Apartment Home - All Properties
$
290
$
389
$
467
$
560
Value Add(1)
Same-Store
Interior - Units
$
42
$
642
$
36
$
1,019
Common Areas and Exteriors
1,162
546
2,672
1,675
Work in Progress - net change
647
1,309
131
348
Total Value Add - Same Store
$
1,851
$
2,497
$
2,839
$
3,042
All Properties
Interior - Units
$
42
$
1,557
$
36
$
2,341
Common Areas and Exteriors
1,497
983
3,213
2,437
Work in Progress - net change
438
1,320
(30)
171
Total Value Add - All Properties
$
1,977
$
3,860
$
3,219
$
4,949
Total Same-Store Capital Spend(2)
Capital Spend - Same-Store(2)
$
4,706
$
5,534
$
7,489
$
7,601
Capital Spend per Apartment Home - Same-Store(2)
$
500
$
588
$
796
$
808
Acquisition and Other Capital Expenditures(1)
All Properties
$
2,548
$
2,091
$
3,993
$
2,655
Total Capital Spend
Total Capital Spend - All Properties
$
8,087
$
11,056
$
12,943
$
14,927
Total Capital Spend per Weighted Average Apartment Home - All Properties
$
660
$
842
$
1,055
$
1,142
(1)Refer to pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for definitions.
(2)Includes value-add and excludes acquisition and other capital expenditures on same-store communities.
(3)Includes all properties, including held for sale and dispositions.
S-16
CENTERSPACE
2026 Revised Financial Outlook
(in thousands, except per share and per home amounts)
Centerspace updated its financial outlook for 2026 in the table below. The updated outlook includes the impact of expected dispositions and the deleveraging plan.
2026 Updated Outlook Range(1)
Six Months Ended
Low
High
June 30, 2026
Amount
Amount
Same-store growth(2)
Revenue
$
99,426
0.00
%
1.00
%
Controllable expenses
23,738
0.50
%
1.50
%
Non-controllable expenses
14,699
3.50
%
4.50
%
Total Expenses
$
38,437
1.50
%
2.50
%
Same-store NOI(3)
$
60,989
(1.00)
%
0.00
%
Components of NOI(3)
Same-store
$
60,989
$
122,600
$
123,900
Non-same-store and held for sale
17,670
27,150
27,350
Other properties
1,232
2,200
2,300
Dispositions
739
—
—
Total NOI(2)(3)
$
80,630
$
151,950
$
153,550
Other operating income and expenses
General and administrative and property management
(16,464)
(30,950)
(30,300)
Casualty loss, net of recoveries
227
(650)
(550)
Non-real estate depreciation and amortization
(134)
(300)
(250)
Loss on sale of non real estate assets
—
(179)
(184)
Total other operating income and expenses
$
(16,371)
$
(32,079)
$
(31,284)
Interest expense
$
(21,093)
(37,700)
(37,600)
Interest and other income
1,599
3,800
4,100
FFO applicable to common shares and Units - diluted(3)
$
44,765
$
85,971
$
88,766
Non-core income and expenses
Non-cash casualty loss (recovery)
$
(258)
$
250
$
150
Amortization of assumed debt
854
1,284
1,284
Severance and related costs
880
1,050
1,000
Legal and other costs related to strategic review
1,104
1,600
1,100
Other miscellaneous items
(209)
(71)
(16)
Total non-core income and expenses
$
2,371
$
4,113
$
3,518
Core FFO applicable to common shares and Units - diluted(3)
$
47,136
$
90,084
$
92,284
Net loss per share - diluted
$
(0.83)
$
6.42
$
6.82
FFO per diluted share(3)
$
2.27
$
4.37
$
4.50
Core FFO per diluted share(3)
$
2.39
$
4.58
$
4.68
Weighted average shares outstanding - diluted
19,696
19,690
19,715
Additional Assumptions
Same-store recurring capital expenditures (per home)
$
494
$
1,250
$
1,350
Value-add expenditures
$
3,219
$
3,500
$
6,000
Gross proceeds from dispositions
$
30,000
$
315,000
$
320,000
Potential special distributions to common shares and operating partnership units
$
—
$
50,000
$
60,000
(1)Updated same-store pool as a result of the disposition of one community during the three months ended June 30, 2026 and 13 apartment communities designated as held for sale as of June 30, 2026.
(2)Updated outlook range has new same-store pool which excludes apartment communities designated as held for sale or disposed and includes expected impact of dispositions and deleveraging.
(3)NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage, components, and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" in the Supplemental Financial and Operating Data" above and pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
S-17
Reconciliations of Net Income (Loss) Available to Common Shareholders to FFO and Core FFO
The outlook and projections provided below are based on current expectations and are forward-looking statements under applicable U.S. federal securities laws.
Updated Outlook(2)
Six Months Ended
12 Months Ended
June 30, 2026
December 31, 2026
Actual
Low
High
Net loss available to common shareholders
$
(13,909)
$
129,226
$
136,331
Noncontrolling interests - Operating Partnership and Series E preferred units
(2,309)
(2,795)
(1,950)
Depreciation and amortization
51,573
96,590
96,390
Less depreciation - non real estate
(134)
(300)
(250)
Impairment of real estate investments
9,700
9,700
9,700
Gain on sale of real estate
(271)
(146,500)
(151,500)
Loss on sale of non real estate assets
—
(179)
(184)
Distributions to Series D preferred unitholders
115
229
229
FFO applicable to common shares and Units - diluted(1)
$
44,765
$
85,971
$
88,766
Adjustments to Core FFO:
Non-cash casualty loss (recovery)
(258)
250
150
Amortization of assumed debt
854
1,284
1,284
Severance and related costs
880
1,050
1,000
Legal and other costs related to strategic review
1,104
1,600
1,100
Other miscellaneous items
(209)
(71)
(16)
Core FFO applicable to common shares and Units - diluted(1)
$
47,136
$
90,084
$
92,284
Net loss per share - diluted
$
(0.83)
$
6.42
$
6.82
FFO per share - diluted
$
2.27
$
4.37
$
4.50
Core FFO per share - diluted
$
2.39
$
4.58
$
4.68
(1)FFO and Core FFO are non-GAAP financial measures. For more information on their usage, components, and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" in the Supplemental Financial and Operating Data" above and pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Updated outlook range has new same-store pool which excludes apartment communities designated as held for sale or disposed and includes expected impact of dispositions and deleveraging.
Reconciliations of Operating Income to Net Operating Income
The outlook and projections provided below are based on current expectations and are forward-looking statements under applicable U.S. federal securities laws.
Updated Outlook(2)
Six Months Ended
12 Months Ended
June 30, 2026
December 31, 2026
Actual
Low
High
Operating income
$
3,391
$
160,560
$
168,110
Adjustments:
General and administrative and property management expenses
16,464
30,950
30,300
Casualty loss, net of recoveries
(227)
650
550
Depreciation and amortization
51,573
96,590
96,390
Impairment of real estate investments
9,700
9,700
9,700
Gain on sale of real estate and other assets
(271)
(146,500)
(151,500)
Net operating income(1)
$
80,630
$
151,950
$
153,550
(1)NOI is a non-GAAP financial measure. For more information on its usage, components, and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" in the Supplemental Financial and Operating Data" above and pages S-19 through S-23 “Non-GAAP Financial Measures and Other Terms” for additional information.
(2)Updated outlook range has new same-store pool which excludes apartment communities designated as held for sale or disposed and includes expected impact of dispositions and deleveraging.
S-18
CENTERSPACE
NON-GAAP FINANCIAL MEASURES AND OTHER TERMS
Acquisition and Other Capital Expenditures
Acquisition and other non-routine capital expenditures represent capital additions contemplated in the underwriting at recently acquired communities. These amounts are considered when determining expected returns. Other capital expenditures includes casualty and other non-routine capital items including, but not limited to, tenant improvements, real estate special assessments, and capital expenditures incurred to dispose of properties. Casualty represents capitalized costs incurred in connection with the restoration of an apartment community after a casualty event.
Adjusted EBITDA
Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt, gain/loss from involuntary conversion; and other non-routine items or items not considered core to business operations. The Company considers Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, financing costs, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP.
Average Monthly Rental Rate
Average monthly rental rate is scheduled rent divided by the total number of apartment homes.
Average Monthly Revenue per Occupied Home
Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.
Debt Service Coverage Ratio
Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within this Non-GAAP Financial Measures and Other Terms section.
As of and for the
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Adjusted EBITDA
$
34,581
$
31,626
$
34,894
$
35,231
$
34,939
$
66,207
$
67,575
Interest Expense
10,623
10,470
11,537
12,989
10,719
21,093
20,341
Principal Amortization
1,488
1,567
1,939
2,000
1,853
3,055
3,759
Total Interest Expense and Principal Amortization
12,111
12,037
13,476
14,989
12,572
24,148
24,100
Distributions paid to Series D preferred unitholders
58
57
57
109
160
115
320
Total Interest Expense, Principal Amortization, and preferred distributions
12,169
12,094
13,533
15,098
12,732
24,263
24,420
Debt Service Coverage Ratio
2.86
2.63
2.59
2.35
2.78
2.74
2.80
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization
2.84
2.62
2.58
2.33
2.74
2.73
2.77
Effective Blended Lease Rate Growth
Effective blended lease rate growth is the weighted average of effective new lease rate growth and effective renewal lease rate growth within the given timeframe.
Effective New Lease Rate Growth
Effective new lease rate growth is the growth in gross rents after the effect of leasing concessions for new leases that became effective within the given timeframe as compared to the prior lease.
S-19
Effective Renewal Lease Rate Growth
Effective renewal lease rate growth is the growth in gross rents after the effect of leasing concessions for renewal leases that became effective within the given timeframe as compared to the prior lease.
Funds From Operations and Core Funds From Operations
The Company believes that FFO, which is a non-GAAP financial measure used as a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding its operating performance, primarily because its calculation does not assume that the value of real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation and amortization.
The Company uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit defines FFO as net income or loss calculated in accordance with GAAP, excluding:
•depreciation and amortization related to real estate;
•gains and losses from the sale of certain real estate assets;
•gains and losses from change in control;
•impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity; and
•similar adjustments for partially owned consolidated real estate entities.
The exclusion in Nareit’s definition of FFO of gains and losses from the sale of real estate assets and impairment write-downs helps to identify the operating results of the long-term assets that form the base of the Company's investments, and assists management and investors in comparing those operating results between periods.
Due to the limitations of the Nareit FFO definition, Centerspace has made certain interpretations in applying this definition. The Company believes that all such interpretations not specifically identified in the Nareit definition are consistent with this definition. Nareit’s FFO White Paper 2018 Restatement clarified that impairment write-downs of land related to a REIT’s main business are excluded from FFO and a REIT has the option to exclude impairment write-downs of assets that are incidental to its main business.
While FFO is widely used by Centerspace as a primary performance metric, not all real estate companies use the same definition of FFO or calculate FFO in the same way. Accordingly, FFO presented here is not necessarily comparable to FFO presented by other real estate companies. FFO should not be considered as an alternative to net income (loss) or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund all cash flow needs, including the ability to service indebtedness or make distributions to shareholders.
Core Funds from Operations (“Core FFO”), a non-GAAP measure, is FFO as adjusted for non-routine items or items not considered core to business operations. By further adjusting for items that are not considered part of core business operations, the Company believes that Core FFO provides investors with additional information to compare core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income (loss), or any other GAAP measurement of performance, but rather should be considered an additional supplemental measure. Core FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund the Company's cash needs, including its ability to service indebtedness or make distributions to shareholders. Core FFO is a non-GAAP and non-standardized financial measure that may be calculated differently by other REITs and should not be considered a substitute for operating results determined in accordance with GAAP.
Held For Sale
The Company classifies properties as held for sale when they meet the GAAP criteria, which include: (a) management commits to and initiates a plan to sell the asset; (b) the sale is probable and expected to be completed within one year under terms that are usual and customary for sales of such assets; and (c) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company generally considers these criteria met when the transaction has been approved by its Board of Trustees, there are no known significant contingencies related to the sale, and management believes it is probable that the sale will be completed within one year.
S-20
Net Debt Divided by Adjusted EBITDA
Net debt is the total outstanding debt balance less cash and cash equivalents and net tax deferred proceeds held in restricted cash for exchanges under section 1031(b) of the Internal Revenue Code. Preferred equity is the value of Series D preferred units outstanding. Adjusted EBITDA is annualized for periods less than one year. Net debt and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within this Non-GAAP Financial Measures and Other Terms section.
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Total debt(1)
$
1,021,147
$
1,047,846
$
1,053,909
$
1,177,284
$
1,121,292
$
1,021,147
$
1,121,292
Less: cash and cash equivalents
8,560
7,555
12,833
12,896
12,378
8,560
12,378
Less: 1031 funds in restricted cash
—
—
—
50,941
—
—
—
Net debt
$
1,012,587
$
1,040,291
$
1,041,076
$
1,113,447
$
1,108,914
$
1,012,587
$
1,108,914
Adjusted EBITDA(2)
$
138,324
$
126,504
$
139,576
$
140,924
$
139,756
$
132,414
$
135,150
Net debt/Adjusted EBITDA
7.32
8.22
7.46
7.90
7.93
7.65
8.21
Preferred Equity
$
5,940
$
5,940
$
5,940
$
5,940
$
11,310
$
5,940
$
11,310
Net debt and preferred equity
$
1,018,527
$
1,046,231
$
1,047,016
$
1,119,387
$
1,120,224
$
1,018,527
$
1,120,224
Adjusted EBITDA(2)
$
138,324
$
126,504
$
139,576
$
140,924
$
139,756
$
132,414
$
135,150
Net debt and preferred equity/Adjusted EBITDA
7.36
8.27
7.50
7.94
8.02
7.69
8.29
(1)Excludes premiums, discounts, and deferred financing costs.
(2)Annualized for periods less than one year.
Net Operating Income
Net operating income, or NOI, is a non-GAAP financial measure which the Company defines as total real estate revenues less property operating expenses, including real estate taxes. The Company believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation and amortization, financing costs, including interest and other income, losses on extinguishment of debt, and interest expense, property management expenses, casualty losses net of recoveries, loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.
Non-stabilized Community
A non-stabilized community is a development community that is either currently under construction or undergoing lease-up or is a recent acquisition prior to reaching overall occupancy of 90%.
Payout Ratio (Core FFO per Diluted Share and Unit Basis)
Payout ratio (Core FFO per diluted share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per diluted share and unit. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Core FFO definition included within this Non-GAAP Financial Measures and Other Terms section.
Three Months Ended
Six Months Ended
6/30/2026
3/31/2026
12/31/2025
9/30/2025
6/30/2025
6/30/2026
6/30/2025
Common distribution per share and unit
$
0.77
$
0.77
$
0.77
$
0.77
$
0.77
$
1.54
$
1.54
Core FFO per common share and unit diluted
1.27
1.12
1.25
1.19
1.28
2.39
2.50
Payout ratio
60.6
%
68.8
%
61.6
%
64.7
%
60.2
%
64.4
%
61.6
%
S-21
Recurring Capital Expenditures
Recurring capital expenditures represent expenditures necessary to help preserve the value of and maintain the functionality at communities. Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing items used to operate the communities such as appliances, mechanical equipment, flooring to roof replacement, paving, siding, and major landscaping.
Repositioned Community
The Company defines a re-positioned community as having significant development and construction activity on existing buildings pursuant to an authorized plan, which has an impact on current operating results, occupancy and the ability to lease space with the intended result of improved community cash flow and competitive position through extensive unit and amenity upgrades. We categorize a re-positioned community as same-store when the development and construction activity has been completed, and operations have stabilized. This is typically reaching an overall occupancy of 90%. Not all communities undergoing value add are considered a re-positioned community.
Retention Rate
Retention rate is the percentage of leases expiring within the given timeframe that were converted to a term renewal.
Same-Store Controllable Expenses
The Company defines same-store controllable expenses as property operating expenses excluding real estate taxes and insurance. Same-store controllable expenses exclude real estate taxes and insurance, in order to provide a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP financial measure and should not be considered an alternative to total expenses or total property operating expenses and real estate taxes.
Scheduled Rental Revenue
Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.
Stabilized Community
The Company defines stabilized communities as communities past development lease-up or a recent acquisition reaching an overall occupancy of 90%. A re-positioned community is considered stabilized when substantial redevelopment activities are complete and operations have stabilized. This is typically reaching an overall occupancy of 90% occupancy or is consistent occupancy for 90 days.
Total Debt to Total Market Capitalization
Total debt to total market capitalization, a non-GAAP financial measure, is total debt not adjusted for unamortized deferred financing costs or unamortized debt premiums and discounts from the balance sheet divided by the sum of total debt from the balance sheet, market value of common shares, operating partnership units, and the as converted Series E preferred units, and Series D preferred units outstanding at the end of the period. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP.
Value Add
Value add represents expenditures that are expected to result in increased income generation or decreased expense growth over time to improve a community’s cash flow and competitive position. This includes elective capital expenditures such as full-scale renovations including new amenities, interior unit turn renovations, enhanced clubhouses and common area hallways and certain resource management initiatives including smart home automation as well as environmental and sustainability initiatives for higher rental levels or expense savings in their respective markets.
S-22
Weighted Average Occupancy
Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rental revenue. Scheduled rental revenue represents the value of all apartment homes, with occupied homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes. The Company believes that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy, and the calculation of weighted average occupancy may not be comparable to that disclosed by other REITs and other real estate companies.
