MINNEAPOLIS, July 29,
2024 /PRNewswire/ -- Centerspace (NYSE: CSR)
announced today its financial and operating results for the three
and six months ended June 30, 2024.
The tables below show Net Income (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, 2024;
Same-Store Revenues, Expenses, and Net Operating Income
("NOI")1 over comparable periods; and Same-Store
Weighted-Average Occupancy for each of the three months ended
June 30, 2024, March 31, 2024, and June
30, 2023.
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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Per Common
Share
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2024
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2023
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2024
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2023
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Net income (loss) -
diluted
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$
(0.19)
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$
(0.23)
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$
(0.56)
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$
2.55
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FFO -
diluted(1)
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$
1.23
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$
1.11
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$
2.39
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$
2.01
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Core FFO -
diluted(1)
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$
1.27
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$
1.28
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$
2.49
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$
2.36
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Year-Over-Year
Comparison
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Sequential
Comparison
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YTD
Comparison
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Same-Store
Results(2)
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Q2 2024 vs. Q2
2023
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Q2 2024 vs. Q1
2024
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2024 vs.
2023
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Revenues
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3.4 %
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1.7 %
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3.5 %
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Expenses
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5.1 %
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1.8 %
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1.4 %
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NOI(1)
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2.4 %
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1.7 %
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4.9 %
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Three months
ended
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Six months
ended
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Same-Store
Results(2)
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June 30,
2024
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March 31,
2024
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June 30,
2023
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June 30,
2024
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June 30,
2023
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Weighted Average
Occupancy
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95.3 %
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94.6 %
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95.2 %
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94.9 %
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95.0 %
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(1)
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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 Supplemental and Financial Operating Data within.
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(2)
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Same-store results are
updated for disposition activity. Refer to "Non-GAAP Financial
Measures and Reconciliations" in Supplemental and Financial
Operating Data within.
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Highlights
- Centerspace raised the mid-point and narrowed the 2024
financial outlook ranges for net loss per diluted share, FFO per
diluted share and Core FFO per diluted share. Refer to page S-17 in
the Supplemental and Financial Operating Data within for additional
detail.
- Net loss was $0.19 per diluted
share for the second quarter of 2024, compared to Net loss of
$0.23 per diluted share for the same
period of the prior year;
- Core FFO per diluted share increased 5.5% to $2.49 for the six months ended June 30, 2024, compared to $2.36 for the six months ended June 30, 2023;
- Same-store revenues increased by 3.4% for the second quarter of
2024 compared to the second quarter of 2023, driving a 2.4%
increase in same-store NOI compared to the same period of the prior
year; and
- Centerspace issued approximately 110,000 common shares for
gross consideration of $7.7 million,
and an average gross price of $69.82
per share during the second quarter of 2024 under its at-the-market
offering program, compared to approximately 88,000 of repurchases
in the first quarter of 2024 at an average repurchase price of
$53.60 per share, excluding
commissions.
Balance Sheet
At the end of the second quarter, Centerspace had $222.3 million of total liquidity on its balance
sheet, consisting of $208.0 million
available under the lines of credit and cash and cash equivalents
of $14.3 million.
Revised 2024 Financial Outlook
Centerspace revised its 2024 financial outlook. For additional
information, see S-17 of the Supplemental Financial and Operating
Data for the quarter ended June 30, 2024 included at the
end of this release. These ranges should be considered in their
entirety. The table below reflects the revised outlook.
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Previous Outlook for
2024
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Updated Outlook for
2024
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Low
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High
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Low
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High
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Net income per Share –
diluted
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$(1.34)
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$(1.10)
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$(1.21)
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$(1.01)
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Same-Store
Revenue
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3.00 %
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4.50 %
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3.25 %
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4.25 %
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Same-Store
Expenses
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4.00 %
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5.50 %
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3.50 %
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4.75 %
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Same-Store
NOI
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2.50 %
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4.00 %
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3.00 %
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4.00 %
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FFO per Share –
diluted
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$4.57
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$4.76
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$4.61
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$4.76
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Core FFO per Share –
diluted
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$4.74
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$4.92
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$4.78
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$4.92
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Additional assumptions:
- Same-store recurring capital expenditures of $1,100 per home to $1,150 per home
- Value-add expenditures of $23.0
million to $25.0 million
- Proceeds from dispositions of $19.0
million
Note: FFO and Core FFO 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 "2024 Financial
Outlook" in the Supplemental Financial and Operating Data
within.
Subsequent Events
Through July 29, 2024, Centerspace sold 431,000 common
shares under its 10b5-1 trading arrangement at an average gross
price per share of 69.54, totaling $30.0
million.
On July 26, 2024, Centerspace
amended its Unsecured Credit Facility to extend the maturity date
to July 2028. The borrowing capacity
remained at $250.0 million.
Upcoming Events
Centerspace is scheduled to participate in the following
conferences:
- NYSE Real Estate Investor Access Day which will be held
virtually on August 8; and
- Bank of America Global Real Estate Conference which will be
held in New York, NY, September 10-12.
Earnings Call
Live webcast and
replay: https://ir.centerspacehomes.com
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Live Conference
Call
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Conference Call
Replay
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Tuesday, July 30, 2024,
at 10:00 AM ET
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Replay available until
August 13, 2024
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USA Toll
Free
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1-833-470-1428
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USA Toll
Free
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1-866-813-9403
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International
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1-404-975-4839
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International
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1-929-458-6194
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Access Code
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811975
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Access Code
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732490
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Supplemental Information
Supplemental Operating and Financial Data for the quarter ended
June 30, 2024 included herein ("Supplemental Information"), is
available in the Investors section on Centerspace's website at
www.centerspacehomes.com or by calling Investor Relations at
701-837-7104. 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, 2024,
Centerspace owned interests in 70 apartment communities
consisting of 12,883 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
Centerspace was named a top workplace for the fifth consecutive
year in 2024 by the Minneapolis Star Tribune. For more
information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the accompanying
Supplemental Operating and Financial Data are based on the
company's current expectations and assumptions, and are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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,
uncertainties, and other factors that might cause such differences
include, but are not limited to those risks and uncertainties
detailed from time to time in Centerspace's filings with the
Securities and Exchange Commission, including the "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and "Risk Factors" contained in its Annual Report on
Form 10-K for the year ended December 31, 2023, in its
subsequent quarterly reports on Form 10-Q, and in other public
reports. The company assumes no obligation to update or supplement
forward-looking statements that become untrue due to subsequent
events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 952-401-6600
Email: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 952-401-6600
Email: kweber@centerspacehomes.com
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SOURCE Centerspace