csr-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 001-35624

CENTERSPACE

(Exact name of registrant as specified in its charter)

North Dakota

45-0311232

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1324 20th Avenue SW

Post Office Box 1988

Minot

58702-1988

(Address of principal executive offices)

(Zip code)

(701) 837-4738

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for at least the past 90 days.

Yes

☑

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes

☑

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller Reporting Company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☑

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares of Beneficial Interest, no par value	CSR	New York Stock Exchange

The number of common shares of beneficial interest outstanding as of April 27, 2026, was 16,803,148.858.

Table of Contents

TABLE OF CONTENTS


			Page
Part I. Financial Information
Item 1. Financial Statements - First Quarter - 2026			3
Condensed Consolidated Balance Sheets March 31, 2026 (unaudited) and December 31, 2025			3
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) For the Three Months E nded March 31, 2026 and 2025			4

Condensed Consolidated Statements of Equity (unaudited) For the Three Months E nded March 31, 2026 and 2025			5
Condensed Consolidated Statements of Cash Flows (unaudited) For the Three Months E nded March 31, 2026 and 2025			6
Notes to Condensed Consolidated Financial Statements (unaudited)			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			20
Item 3. Quantitative and Qualitative Disclosures About Market Risk			32
Item 4. Controls and Procedures			33

Part II. Other Information
Item 1. Legal Proceedings			34
Item 1A. Risk Factors			34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			34
Item 3. Defaults Upon Senior Securities			34
Item 4. Mine Safety Disclosures			34
Item 5. Other Information			34
Item 6. Exhibits			35
Signatures			36

Table of Contents

PART I

Item 1. Financial Statements

CENTERSPACE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


	(in thousands, except per share data)
	March 31, 2026		December 31, 2025
ASSETS	(unaudited)
Real estate investments
Property owned	$	2,518,162	$	2,524,020
Less accumulated depreciation	(685,769)		(660,124)



Total real estate investments	1,832,393		1,863,896
Cash and cash equivalents	7,555		12,833
Restricted cash	2,710		2,818
Other assets	44,928		46,620

TOTAL ASSETS	$	1,887,586	$	1,926,167
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	55,872	$	59,247
Revolving lines of credit	150,429		154,925
Notes payable, net	299,594		299,579
Mortgages payable, net	565,611		566,660

TOTAL LIABILITIES	$	1,071,506	$	1,080,411
COMMITMENTS AND CONTINGENCIES (NOTE 10)

SERIES D PREFERRED UNITS (Cumulative convertible preferred units, $100 par value, 59 units issued and outstanding at March 31, 2026 and December 31, 2025, aggregate liquidation preference of $5,940 at March 31, 2026)	$	5,940	$	5,940
EQUITY

Common Shares of Beneficial Interest (Unlimited authorization, no par value, 16,803 shares issued and outstanding at March 31, 2026 and 16,761 shares issued and outstanding at December 31, 2025)	1,370,461		1,368,834
Accumulated distributions in excess of net income	(675,493)		(649,678)

Total shareholders’ equity	$	694,968	$	719,156
Noncontrolling interests – Operating Partnership and Series E preferred units	115,172		120,660

TOTAL EQUITY	$	810,140	$	839,816
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY	$	1,887,586	$	1,926,167

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

CENTERSPACE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)


	(in thousands, except per share data)
	Three Months Ended March 31,
	2026		2025
REVENUE	$	65,069	$	67,093
EXPENSES
Property operating expenses, excluding real estate taxes	18,242		19,068
Real estate taxes	7,332		7,663
Property management expense	2,379		2,433
Casualty loss, net of recoveries	(21)		532
Depreciation and amortization	26,498		27,654
Impairment of real estate investments	9,700		—

SEC Form 10-Q filed by D/B/A Centerspace