MINNEAPOLIS, Feb. 20, 2024 /PRNewswire/ -- Centerspace (NYSE:CSR) announced today its financial and operating results for the year ended December 31, 2023. The tables below show Net Income (Loss), Funds from Operations ("FFO")¹, and Core FFO¹, all on a per diluted share basis, for the year ended December 31, 2023; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")¹ over comparable periods; and Same-Store Weighted Average Occupancy for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022 and the twelve months ended December 31, 2023 and 2022.

	Three Months Ended December 31,		Twelve Months Ended December 31,
Per Share	2023	2022	2023	2022
Net income (loss) per share - diluted	$ (0.65)	$ (0.24)	$ 2.32	$ (1.35)
FFO - diluted⁽¹⁾	1.11	1.16	4.27	4.32
Core FFO - diluted⁽¹⁾	1.22	1.17	4.78	4.43

	Year-Over-Year Comparison	Sequential Comparison	YTD Comparison
Same-Store Results	4Q23 vs 4Q22	4Q23 vs. 3Q23	CY23 vs. CY22
Revenues	3.9 %	0.5 %	7.2 %
Expenses	(1.2) %	(3.6) %	4.6 %
Net Operating Income ("NOI")⁽¹⁾	7.6 %	3.4 %	9.0 %

	Three months ended			Twelve months ended
Same-Store Results	December 31, 2023	September 30, 2023	December 31, 2022	December 31, 2023	December 31, 2022
Weighted Average Occupancy	94.8 %	94.7 %	94.8 %	94.9 %	94.6 %


(1)	NOI, Funds from Operations, 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.

Highlights for the Year Ended December 31, 2023

Net Income was $2.32 per diluted share for the year ended December 31, 2023, compared to Net Loss of $1.35 per diluted share for the year ended December 31, 2022;
Core FFO⁽¹⁾ increased to $4.78 or 7.9% per diluted share for the year ended December 31, 2023, compared to $4.43 for the year ended December 31, 2022;
Operating income increased to $84.5 million for the year ended December 31, 2023 compared to $13.9 million for the prior year;
Same-store year-over-year NOI⁽¹⁾ grew to 9.0% driven by same-store revenue growth of 7.2%;
Continued to grow Colorado portfolio through acquisition of an apartment community in Loveland, Colorado consisting of 303 homes for an aggregate purchase price of $94.5 million;
Thirteen communities in Minnesota, Nebraska, and North Dakota were sold for an aggregate sales price of $226.8 million. The sale included four communities in the St. Cloud market comprising 692 homes, two communities in the Omaha-Lincoln market comprising 498 homes, three communities in the Minneapolis-St. Paul market comprising 377 homes, and four communities in the Minot market comprising 712 homes and related commercial space.
216,000 common shares repurchased for total consideration of $11.5 million and an average of $53.44 per share.

Balance Sheet

At December 31, 2023, Centerspace had $234.6 million of total liquidity on its balance sheet, including $226.0 million available on its lines of credit.

Subsequent Events

Subsequent to December 31, 2023, Centerspace entered into definitive purchase and sale agreements for two communities with expected gross proceeds of $18.9 million. The Company believes the sales will close in the first quarter. The closing of pending transactions is subject to certain conditions and restrictions; therefore, there can be no assurance that the transactions will be consummated or that the final terms will not differ in material respects.

Subsequent to December 31, 2023, Centerspace repurchased 87,722 common shares for total consideration of $4.7 million and an average price of $53.62 per share.

Dividend Distributions

Centerspace's Board of Trustees announced a quarterly distribution of $0.75 per share/unit, payable on April 8, 2024, to common shareholders and unitholders of record at the close of business on March 28, 2024. The announced distribution represents a $0.02 increase over the prior distribution.

The Board of Trustees also declared a distribution of $0.4140625 per share on the 6.625% Series C Cumulative Redeemable Preferred Shares (NYSE:CSR), payable on March 28, 2024, to holders of record at the close of business on March 15, 2024. Series C preferred share distributions are cumulative and payable quarterly in arrears at an annual rate of $1.65625 per share.

2024 Financial Outlook

Centerspace is providing the following guidance for its 2024 performance.

2024 Financial Outlook
		Range for 2024
	2023 Actual	Low	High
Net income (loss) per Share - diluted	$ 2.32	$ (1.31)	$ (0.99)
FFO per Share - diluted	$ 4.27	$ 4.54	$ 4.80
Core FFO per Share - diluted	$ 4.78	$ 4.68	$ 4.92

Additional assumptions:

Same-store capital expenditures of $1,075 per home to $1,150 per home
Value-add expenditures of $25.0 million to $27.0 million
Proceeds from potential dispositions of $18.8 million to $19.0 million

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, please refer to "2024 Financial Outlook" in the Supplemental Financial and Operating Data below.

Earnings Call

Live webcast and replay: https://www.ir.centerspacehomes.com

Live Conference Call		Conference Call Replay
Wednesday, February 21, 2024 at 10:00 AM ET		Replay available until March 6, 2024
USA Toll Free Number	1-833-470-1428	USA Toll Free Number	1-866-813-9403
International Toll Free Number	1-929-526-1599	International Toll Free Number	1-929-458-6194
Canada Toll Free Number	1-833-950-0062	Canada Toll Free Number	1-226-828-7578
Conference Number	373306	Conference Number	297696

Supplemental Information

Supplemental Operating and Financial Data for the year ended December 31, 2023, is available in the Investors section on Centerspace's website at https://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 December 31, 2023, Centerspace owned 72 apartment communities consisting of 13,088 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. In 2022, Centerspace was named the National Apartment Association's Leading Organization in Diversity, Equity, and Inclusion.. For more information, please visit www.centerspacehomes.com.

Forward-Looking Statements

Certain statements in this press release 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 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, in 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: 701-837-7104

E-mail: IR@centerspacehomes.com

Marketing & Media

Kelly Weber

Phone: 701-837-7104

E-mail: kweber@centerspacehomes.com

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SOURCE Centerspace

Centerspace Announces Financial and Operating Results for the Year Ended December 31, 2023, Provides 2024 Financial Outlook and Dividend Increase