MINNEAPOLIS, Nov. 1, 2021 /PRNewswire/ -- Centerspace
(NYSE: CSR) announced today its financial and operating results for
the three and nine months ended September 30, 2021. The tables
below show Net Income, Funds from Operations ("FFO")1,
and Core FFO1, all on a per share basis, for the three
and nine months ended September 30, 2021; 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 September 30, 2021,
June 30, 2021, and September 30,
2020.
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
Per
Share
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net Income -
diluted
|
|
$
|
(0.81)
|
|
|
$
|
1.38
|
|
|
$
|
0.12
|
|
|
$
|
0.33
|
|
FFO -
diluted
|
|
$
|
0.60
|
|
|
$
|
0.90
|
|
|
$
|
2.44
|
|
|
$
|
2.49
|
|
Core FFO -
diluted
|
|
$
|
0.98
|
|
|
$
|
0.94
|
|
|
$
|
2.91
|
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-Over-Year
Comparison
|
|
Sequential
Comparison
|
|
YTD
Comparison
|
Same-Store
Results
|
|
Q3 2021 vs. Q3
2020
|
|
Q3 2021 vs. Q2
2021
|
|
2021 vs.
2020
|
Revenues
|
|
6.2
|
%
|
|
3.7
|
%
|
|
3.3
|
%
|
Expenses
|
|
4.4
|
%
|
|
3.6
|
%
|
|
2.9
|
%
|
NOI
|
|
7.5
|
%
|
|
3.8
|
%
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Same-Store
Results
|
|
September 30,
2021
|
|
June 30,
2021
|
|
September 30,
2020
|
Weighted Average
Occupancy
|
|
94.3
|
%
|
|
94.9
|
%
|
|
94.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
NOI, FFO, Core FFO,
and same-store results 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" below.
|
Highlights
- Net Loss was $(0.81) per diluted
share for the third quarter of 2021, compared to Net Income of
$1.38 per diluted share for the same
period of 2020;
- Core FFO increased 4.3% to $0.98
per diluted share for the three months ended September 30, 2021, compared to $0.94 for the three months ended September 30, 2020 and 5.4% to $2.91 per diluted share for the nine months ended
September 30, 2021, compared to
$2.76 for the nine months ended
September 30, 2020;
- Same-store revenues increased by 6.2% for the third quarter of
2021 compared to the third quarter of 2020;
- Same-store new lease over lease rates were 10.8% for the third
quarter of 2021, compared to 0.0% in the same period of the prior
year. Same-store renewal lease over lease rates were 7.2% for the
third quarter of 2021, compared to 0.6% for the same period the
prior year. Same-store blended lease over lease rates were 9.0% for
the third quarter of 2021, compared to 0.4% for the same period the
prior year;
- Full year earnings per share mid-point outlook of $(0.30) resulting in a 3% increase in Core FFO
from our prior outlook;
- Continued to grow the portfolio through the strategic portfolio
acquisition comprised of 14 communities in Minneapolis, Minnesota and three communities
in St. Cloud, Minnesota totaling
2,696 apartment homes for an aggregate acquisition cost of
$359.9 million;
- Issued $125.0 million of
unsecured notes with a weighted average interest rate of 2.6% and
weighted average maturity of 10.5 years with tranches of
$35.0 million in 2030, $50.0 million in 2031, $25.0 million in 2032 and $15.0 million in 2034;
- Improved and extended $250.0
million revolving credit facility with an accordion feature
for up to $400.0 million which
matures in September 2025; and
- Continued to strengthen the balance sheet by issuing 199,000
common shares under the ATM program for net proceeds of
$19.6 million.
Acquisitions and Dispositions
On September 1, 2021, Centerspace
closed on its strategic portfolio acquisition in Minneapolis and St.
Cloud, Minnesota for an aggregate acquisition cost of
$359.9 million. The portfolio
is comprised of 14 communities in Minneapolis, Minnesota and three communities
in St. Cloud, Minnesota. The
acquisition added 2,696 apartments homes to the portfolio.
Centerspace fully funded the acquisition with the issuance of
$181.4 million of Convertible
Preferred Operating Partnership Units at $100.0 dollar par value that pay a 3.875%
dividend rate and are convertible into common units at an exchange
rate of 1.2048 common units per Convertible Preferred Operating
Partnership Units representing a conversion price of $83.00 per unit. The acquired assets were subject
to $126.5 million in mortgage
liabilities of which $20.0 million
was assumed at a rate of 4.31% with the remaining $106.5 million refinanced through a $198.9 million Fannie Mae Credit Facility. The
Fannie Mae Credit facility includes tranches in 7, 10 and 12-year
increments with a weighted average interest rate of 2.78%. The
additional proceeds from the refinancing were used to reduce the
outstanding balance under our bank credit facility.
Subsequent to the end of the quarter, Centerspace sold its sole
remaining commercial property Minot IPS located in Minot, North Dakota on October 18th for an aggregate sale price of
$2.3 million.
Balance Sheet
At the end of the third quarter, Centerspace had $219.8 million of total liquidity on its balance
sheet, consisting of $199.0 million
available under the line of credit and cash and cash equivalents of
$20.8 million.
In the three months ended September 30,
2021, Centerspace issued $125.0
million of unsecured notes with a weighted average interest
rate of 2.6% and weighted average maturity of 10.5 years.
During the quarter, Centerspace amended and extended our
existing $250.0 million revolving
credit facility. The new facility includes an accordion feature for
up to $400.0 million and matures in
September 2025 with two optional
six-month extensions.
Revised 2021 Financial Outlook
Centerspace revised its 2021 financial outlook, which includes
the acquisition of KMS on September 1,
2021. For additional information, see S-16 of the
Supplemental Financial and Operating Data for the quarter ended
September 30, 2021 included at the end of this release. These
ranges should be considered in their entirety. The revised outlook
is:
|
Previous Outlook
for 2021
|
Updated Outlook
for 2021
|
|
Low
|
High
|
Low
|
High
|
Earnings per Share –
diluted
|
$
|
0.58
|
|
$
|
0.76
|
|
$
|
(0.36)
|
|
$
|
(0.24)
|
|
Same-Store
Revenue
|
2.0
|
%
|
3.5
|
%
|
3.5
|
%
|
4.0
|
%
|
Same-Store
Expenses
|
4.0
|
%
|
6.0
|
%
|
4.5
|
%
|
5.0
|
%
|
Same-Store
NOI
|
0.5
|
%
|
2.0
|
%
|
3.0
|
%
|
3.5
|
%
|
FFO per Share –
diluted
|
$
|
3.64
|
|
$
|
3.83
|
|
$
|
3.40
|
|
$
|
3.52
|
|
Core FFO per Share –
diluted
|
$
|
3.78
|
|
$
|
3.94
|
|
$
|
3.92
|
|
$
|
4.02
|
|
COVID-19 Developments
The COVID-19 pandemic, including the associated economic
disruptions, has continued to impact business and operations since
March 2020. The company continues to
prioritize the health and well-being of its residents, team
members, and the communities it serves.
A discussion of the ongoing and potential effects of the
COVID-19 pandemic on financial condition, results of operations,
and cash flows can be found in "Management's Discussion and
Analysis of Financial Conditions and Results of Operations"
presented in the company's Annual Report on Form 10-K for the year
ended December 31, 2020, filed with
the SEC on February 22, 2021. For a
more detailed description of the risks and uncertainties affecting
business, see the risk factors presented in Item 1A in the
company's Annual Report on Form 10-K for the year ended
December 31, 2020, filed with the SEC
on February 22, 2021.
Upcoming Events
Centerspace is scheduled to participate in the upcoming National
Association of Real Estate Investment Trusts ("Nareit") REITworld
2021 Annual Conference, which will be held virtually November 9-11.
Earnings Call
Live webcast and
replay: https://ir.centerspacehomes.com
|
|
|
|
Live Conference
Call
|
|
Conference Call
Replay
|
Tuesday, November 2,
2021, at 10:00 AM ET
|
|
Replay available
until November 16, 2021
|
USA Toll Free
Number
|
1-877-509-9785
|
|
USA Toll Free
Number
|
1-877-344-7529
|
International Toll
Free Number
|
1-412-902-4132
|
|
International Toll
Free Number
|
1-412-317-0088
|
Canada Toll Free
Number
|
1-855-669-9657
|
|
Canada Toll Free
Number
|
1-855-669-9658
|
|
|
|
Conference
Number
|
10160003
|
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended
September 30, 2021 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 September 30, 2021,
Centerspace owned 79 apartment communities consisting of
14,275 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
Centerspace was named a Top Workplace for 2021 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. 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. 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, 2020, 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
Emily Miller
Phone: 701-837-7104
IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 701-837-7104
kweber@centerspacehomes.com
Supplemental
Financial and Operating Data
|
Table of
Contents
|
September 30,
2021
|
|
Page
|
|
|
Common Share
Data
|
S-1
|
|
|
Key Financial
Data
|
|
Condensed Consolidated
Statements of Operations
|
S-2
|
Condensed Consolidated
Balance Sheets
|
S-3
|
|
|
Non-GAAP Financial
Measures and Reconciliations
|
|
Net Operating
Income
|
S-4
|
Same-Store
Controllable Expenses
|
S-5
|
Funds From Operations
and Core Funds From Operations
|
S-6
|
Adjusted
EBITDA
|
S-9
|
|
|
Debt and Capital
Analysis
|
|
Debt
Analysis
|
S-10
|
Capital
Analysis
|
S-11
|
|
|
Portfolio
Analysis
|
|
Same-Store
Comparison
|
S-12
|
Portfolio
Summary
|
S-15
|
Capital
Expenditures
|
S-16
|
|
|
2021 Financial
Outlook
|
S-17
|
Common Share Data
(NYSE: CSR)
|
|
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
High closing
price
|
|
$
|
105.42
|
|
|
$
|
79.71
|
|
|
$
|
73.42
|
|
|
$
|
74.55
|
|
|
$
|
73.53
|
|
Low closing
price
|
|
$
|
78.42
|
|
|
$
|
67.28
|
|
|
$
|
68.00
|
|
|
$
|
65.79
|
|
|
$
|
61.87
|
|
Average closing
price
|
|
$
|
94.10
|
|
|
$
|
71.99
|
|
|
$
|
71.37
|
|
|
$
|
70.30
|
|
|
$
|
70.15
|
|
Closing price at end
of quarter
|
|
$
|
94.50
|
|
|
$
|
78.90
|
|
|
$
|
68.00
|
|
|
$
|
70.64
|
|
|
$
|
65.17
|
|
Common share
distributions – annualized
|
|
$
|
2.88
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
Closing dividend
yield – annualized
|
|
3.1
|
%
|
|
3.6
|
%
|
|
4.1
|
%
|
|
4.0
|
%
|
|
4.3
|
%
|
Closing common shares
outstanding (thousands)
|
|
14,281
|
|
|
14,045
|
|
|
13,220
|
|
|
13,027
|
|
|
12,976
|
|
Closing limited
partnership units outstanding (thousands)
|
|
845
|
|
|
881
|
|
|
950
|
|
|
977
|
|
|
1,018
|
|
Closing Series E
preferred units outstanding, as converted
(thousands)
|
|
2,186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Closing market value
of outstanding common shares, plus imputed closing market value of
outstanding limited partnership units (thousands)
|
|
$
|
1,635,984
|
|
|
$
|
1,177,661
|
|
|
$
|
963,560
|
|
|
$
|
989,243
|
|
|
$
|
911,989
|
|
CENTERSPACE
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
(in
thousands)
|
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
|
9/30/2021
|
|
9/30/2020
|
REVENUE
|
|
$
|
50,413
|
|
|
$
|
46,656
|
|
|
$
|
46,648
|
|
|
$
|
45,540
|
|
|
$
|
44,138
|
|
|
|
$
|
143,717
|
|
|
$
|
132,454
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, excluding real estate taxes
|
|
14,434
|
|
|
13,018
|
|
|
13,449
|
|
|
12,668
|
|
|
13,129
|
|
|
|
40,901
|
|
|
38,957
|
|
Real estate
taxes
|
|
5,916
|
|
|
5,742
|
|
|
5,792
|
|
|
5,256
|
|
|
5,402
|
|
|
|
17,450
|
|
|
16,277
|
|
Property management
expense
|
|
2,203
|
|
|
2,085
|
|
|
1,767
|
|
|
1,460
|
|
|
1,442
|
|
|
|
6,055
|
|
|
4,341
|
|
Casualty (gain)
loss
|
|
(10)
|
|
|
(27)
|
|
|
101
|
|
|
331
|
|
|
91
|
|
|
|
64
|
|
|
1,331
|
|
Depreciation/amortization
|
|
22,447
|
|
|
19,308
|
|
|
19,992
|
|
|
20,282
|
|
|
18,995
|
|
|
|
61,747
|
|
|
55,311
|
|
General and
administrative expenses
|
|
4,279
|
|
|
3,797
|
|
|
3,906
|
|
|
3,733
|
|
|
3,077
|
|
|
|
11,982
|
|
|
9,707
|
|
TOTAL
EXPENSES
|
|
$
|
49,269
|
|
|
$
|
43,923
|
|
|
$
|
45,007
|
|
|
$
|
43,730
|
|
|
$
|
42,136
|
|
|
|
$
|
138,199
|
|
|
$
|
125,924
|
|
Operating
income
|
|
1,144
|
|
|
2,733
|
|
|
1,641
|
|
|
1,810
|
|
|
2,002
|
|
|
|
5,518
|
|
|
6,530
|
|
Interest
expense
|
|
(7,302)
|
|
|
(7,089)
|
|
|
(7,231)
|
|
|
(6,903)
|
|
|
(6,771)
|
|
|
|
(21,622)
|
|
|
(20,622)
|
|
Interest and other
income (loss)
|
|
(5,082)
|
|
|
619
|
|
|
431
|
|
|
404
|
|
|
277
|
|
|
|
(4,032)
|
|
|
(1,979)
|
|
Income (loss) before
gain (loss) on sale of real estate and other investments
|
|
(11,240)
|
|
|
(3,737)
|
|
|
(5,159)
|
|
|
(4,689)
|
|
|
(4,492)
|
|
|
|
(20,136)
|
|
|
(16,071)
|
|
Gain (loss) on sale of
real estate and other investments
|
|
—
|
|
|
26,840
|
|
|
—
|
|
|
17
|
|
|
25,676
|
|
|
|
26,840
|
|
|
25,486
|
|
Net income
(loss)
|
|
$
|
(11,240)
|
|
|
$
|
23,103
|
|
|
$
|
(5,159)
|
|
|
$
|
(4,672)
|
|
|
$
|
21,184
|
|
|
|
$
|
6,704
|
|
|
$
|
9,415
|
|
Dividends to Series D
preferred unitholders
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
|
(480)
|
|
|
(480)
|
|
Net (income) loss
attributable to noncontrolling interest – Operating Partnership and
Series E preferred units
|
|
1,930
|
|
|
(1,386)
|
|
|
469
|
|
|
460
|
|
|
(1,387)
|
|
|
|
1,013
|
|
|
(248)
|
|
Net (income) loss
attributable to noncontrolling interests – consolidated real estate
entities
|
|
(22)
|
|
|
(19)
|
|
|
(17)
|
|
|
(6)
|
|
|
(8)
|
|
|
|
(58)
|
|
|
132
|
|
Net income (loss)
attributable to controlling interests
|
|
(9,492)
|
|
|
21,538
|
|
|
(4,867)
|
|
|
(4,378)
|
|
|
19,629
|
|
|
|
7,179
|
|
|
8,819
|
|
Dividends to
preferred shareholders
|
|
(1,607)
|
|
|
(1,607)
|
|
|
(1,607)
|
|
|
(1,607)
|
|
|
(1,607)
|
|
|
|
(4,821)
|
|
|
(4,921)
|
|
Discount (premium) on
redemption of preferred shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
|
—
|
|
|
297
|
|
NET INCOME (LOSS)
AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
(11,099)
|
|
|
$
|
19,931
|
|
|
$
|
(6,474)
|
|
|
$
|
(5,985)
|
|
|
$
|
18,021
|
|
|
|
$
|
2,358
|
|
|
$
|
4,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share – basic
|
|
$
|
(0.79)
|
|
|
$
|
1.49
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.40
|
|
|
|
$
|
0.17
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share – diluted
|
|
$
|
(0.81)
|
|
|
$
|
1.48
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.38
|
|
|
|
$
|
0.12
|
|
|
$
|
0.33
|
|
CENTERSPACE
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Real estate
investments
|
|
|
|
|
|
|
|
|
|
|
Property
owned
|
|
$
|
2,203,606
|
|
|
$
|
1,838,837
|
|
|
$
|
1,883,407
|
|
|
$
|
1,812,557
|
|
|
$
|
1,805,390
|
|
Less accumulated
depreciation
|
|
(426,926)
|
|
|
(407,400)
|
|
|
(408,014)
|
|
|
(399,249)
|
|
|
(380,392)
|
|
|
|
1,776,680
|
|
|
1,431,437
|
|
|
1,475,393
|
|
|
1,413,308
|
|
|
1,424,998
|
|
Mortgage loans
receivable
|
|
42,160
|
|
|
37,457
|
|
|
30,107
|
|
|
24,661
|
|
|
17,986
|
|
Total real estate
investments
|
|
1,818,840
|
|
|
1,468,894
|
|
|
1,505,500
|
|
|
1,437,969
|
|
|
1,442,984
|
|
Cash and cash
equivalents
|
|
20,816
|
|
|
5,194
|
|
|
10,816
|
|
|
392
|
|
|
16,804
|
|
Restricted
cash
|
|
2,376
|
|
|
8,444
|
|
|
1,610
|
|
|
6,918
|
|
|
2,199
|
|
Other
assets
|
|
34,919
|
|
|
17,218
|
|
|
18,427
|
|
|
18,904
|
|
|
16,947
|
|
TOTAL
ASSETS
|
|
$
|
1,876,951
|
|
|
$
|
1,499,750
|
|
|
$
|
1,536,353
|
|
|
$
|
1,464,183
|
|
|
$
|
1,478,934
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
58,092
|
|
|
$
|
52,413
|
|
|
$
|
53,852
|
|
|
$
|
55,609
|
|
|
$
|
58,596
|
|
Revolving line of
credit
|
|
57,000
|
|
|
87,000
|
|
|
181,544
|
|
|
152,871
|
|
|
135,000
|
|
Notes payable, net of
loan costs
|
|
299,454
|
|
|
319,286
|
|
|
319,236
|
|
|
269,246
|
|
|
269,202
|
|
Mortgages payable, net
of loan costs
|
|
489,140
|
|
|
287,143
|
|
|
293,709
|
|
|
297,074
|
|
|
313,065
|
|
TOTAL
LIABILITIES
|
|
$
|
903,686
|
|
|
$
|
745,842
|
|
|
$
|
848,341
|
|
|
$
|
774,800
|
|
|
$
|
775,863
|
|
|
|
|
|
|
|
|
|
|
|
|
SERIES D PREFERRED
UNITS
|
|
$
|
21,585
|
|
|
$
|
18,022
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Series C Preferred
Shares of Beneficial Interest
|
|
93,530
|
|
|
93,530
|
|
|
93,530
|
|
|
93,530
|
|
|
93,530
|
|
Common Shares of
Beneficial Interest
|
|
1,092,130
|
|
|
1,033,940
|
|
|
980,453
|
|
|
968,263
|
|
|
968,436
|
|
Accumulated
distributions in excess of net income
|
|
(454,691)
|
|
|
(433,310)
|
|
|
(443,409)
|
|
|
(427,681)
|
|
|
(412,577)
|
|
Accumulated other
comprehensive income (loss)
|
|
(5,784)
|
|
|
(12,064)
|
|
|
(12,798)
|
|
|
(15,905)
|
|
|
(17,256)
|
|
Total shareholders'
equity
|
|
$
|
725,185
|
|
|
$
|
682,096
|
|
|
$
|
617,776
|
|
|
$
|
618,207
|
|
|
$
|
632,133
|
|
Noncontrolling
interests – Operating Partnership and Series E preferred
units
|
|
225,850
|
|
|
53,133
|
|
|
53,007
|
|
|
53,930
|
|
|
53,669
|
|
Noncontrolling
interests – consolidated real estate entities
|
|
645
|
|
|
657
|
|
|
669
|
|
|
686
|
|
|
709
|
|
Total
equity
|
|
$
|
951,680
|
|
|
$
|
735,886
|
|
|
$
|
671,452
|
|
|
$
|
672,823
|
|
|
$
|
686,511
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
$
|
1,876,951
|
|
|
$
|
1,499,750
|
|
|
$
|
1,536,353
|
|
|
$
|
1,464,183
|
|
|
$
|
1,478,934
|
|
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
us, may not be comparable to non-GAAP financial measures reported
by other REITs that do not define each of the non-GAAP financial
measures exactly as Centerspace does.
The company provides certain information on a same-store and
non-same-store basis. Same-store apartment communities are owned or
in service for substantially all of the periods being compared,
and, in the case of newly-constructed properties, have achieved a
target level of physical occupancy of 90%. 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 us to evaluate full period-over-period operating
comparisons for existing apartment communities and their
contribution to net income. 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,
renewing the leases on existing residents, controlling operating
costs, and making prudent capital improvements.
Reconciliation of Operating Income to 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.
Centerspace believes that NOI is an important supplemental measure
of operating performance for real estate because it provides a
measure of operations that is unaffected by depreciation,
amortization, financing, property management overhead, casualty
losses, 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, net
income available for common shareholders, or cash flow from
operating activities as a measure of financial performance.
|
(in thousands, except percentages)
|
|
Three Months
Ended
|
|
|
Sequential
|
|
Year-Over-Year
|
|
9/30/2021
|
|
6/30/2021
|
|
9/30/2020
|
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
Operating
income
|
$
|
1,144
|
|
|
$
|
2,733
|
|
|
$
|
2,002
|
|
|
|
$
|
(1,589)
|
|
|
(58.1)
|
%
|
|
$
|
(858)
|
|
|
(42.9)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management
expenses
|
2,203
|
|
|
2,085
|
|
|
1,442
|
|
|
|
118
|
|
|
5.7
|
%
|
|
761
|
|
|
52.8
|
%
|
Casualty (gain)
loss
|
(10)
|
|
|
(27)
|
|
|
91
|
|
|
|
17
|
|
|
(63.0)
|
%
|
|
(101)
|
|
|
(111.0)
|
%
|
Depreciation and
amortization
|
22,447
|
|
|
19,308
|
|
|
18,995
|
|
|
|
3,139
|
|
|
16.3
|
%
|
|
3,452
|
|
|
18.2
|
%
|
General and
administrative expenses
|
4,279
|
|
|
3,797
|
|
|
3,077
|
|
|
|
482
|
|
|
12.7
|
%
|
|
1,202
|
|
|
39.1
|
%
|
Net operating
income
|
$
|
30,063
|
|
|
$
|
27,896
|
|
|
$
|
25,607
|
|
|
|
$
|
2,167
|
|
|
7.8
|
%
|
|
$
|
4,456
|
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
$
|
42,034
|
|
|
$
|
40,521
|
|
|
$
|
39,571
|
|
|
|
$
|
1,513
|
|
|
3.7
|
%
|
|
$
|
2,463
|
|
|
6.2
|
%
|
Non-same-store
|
7,214
|
|
|
4,436
|
|
|
1,117
|
|
|
|
2,778
|
|
|
62.6
|
%
|
|
6,097
|
|
|
545.8
|
%
|
Other
properties
|
1,120
|
|
|
646
|
|
|
833
|
|
|
|
474
|
|
|
73.4
|
%
|
|
287
|
|
|
34.5
|
%
|
Dispositions
|
45
|
|
|
1,053
|
|
|
2,617
|
|
|
|
(1,008)
|
|
|
(95.7)
|
%
|
|
(2,572)
|
|
|
(98.3)
|
%
|
Total
|
50,413
|
|
|
46,656
|
|
|
44,138
|
|
|
|
3,757
|
|
|
8.1
|
%
|
|
6,275
|
|
|
14.2
|
%
|
Property operating
expenses, including real estate taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
17,126
|
|
|
16,528
|
|
|
16,409
|
|
|
|
598
|
|
|
3.6
|
%
|
|
717
|
|
|
4.4
|
%
|
Non-same-store
|
2,940
|
|
|
1,439
|
|
|
491
|
|
|
|
1,501
|
|
|
104.3
|
%
|
|
2,449
|
|
|
498.8
|
%
|
Other
properties
|
317
|
|
|
268
|
|
|
229
|
|
|
|
49
|
|
|
18.3
|
%
|
|
88
|
|
|
38.4
|
%
|
Dispositions
|
(33)
|
|
|
525
|
|
|
1,402
|
|
|
|
(558)
|
|
|
(106.3)
|
%
|
|
(1,435)
|
|
|
(102.4)
|
%
|
Total
|
20,350
|
|
|
18,760
|
|
|
18,531
|
|
|
|
1,590
|
|
|
8.5
|
%
|
|
1,819
|
|
|
9.8
|
%
|
Net operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
24,908
|
|
|
23,993
|
|
|
23,162
|
|
|
|
915
|
|
|
3.8
|
%
|
|
1,746
|
|
|
7.5
|
%
|
Non-same-store
|
4,274
|
|
|
2,997
|
|
|
626
|
|
|
|
1,277
|
|
|
42.6
|
%
|
|
3,648
|
|
|
582.7
|
%
|
Other
properties
|
803
|
|
|
378
|
|
|
604
|
|
|
|
425
|
|
|
112.4
|
%
|
|
199
|
|
|
32.9
|
%
|
Dispositions
|
78
|
|
|
528
|
|
|
1,215
|
|
|
|
(450)
|
|
|
(100.0)
|
%
|
|
(1,137)
|
|
|
(93.6)
|
%
|
Total
|
$
|
30,063
|
|
|
$
|
27,896
|
|
|
$
|
25,607
|
|
|
|
$
|
2,167
|
|
|
7.8
|
%
|
|
$
|
4,456
|
|
|
17.4
|
%
|
|
|
|
(in thousands,
except percentages)
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
$ Change
|
|
% Change
|
Operating
income
|
$
|
5,518
|
|
|
$
|
6,530
|
|
|
$
|
(1,012)
|
|
|
(15.5)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
Property management
expenses
|
6,055
|
|
|
4,341
|
|
|
1,714
|
|
|
39.5
|
%
|
Casualty (gain)
loss
|
64
|
|
|
1,331
|
|
|
(1,267)
|
|
|
(95.2)
|
%
|
Depreciation and
amortization
|
61,747
|
|
|
55,311
|
|
|
6,436
|
|
|
11.6
|
%
|
General and
administrative expenses
|
11,982
|
|
|
9,707
|
|
|
2,275
|
|
|
23.4
|
%
|
Net operating
income
|
$
|
85,366
|
|
|
$
|
77,220
|
|
|
$
|
8,146
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
Same-store
|
$
|
122,555
|
|
|
$
|
118,627
|
|
|
$
|
3,928
|
|
|
3.3
|
%
|
Non-same-store
|
15,892
|
|
|
2,319
|
|
|
13,573
|
|
|
585.3
|
%
|
Other
properties
|
2,415
|
|
|
2,208
|
|
|
207
|
|
|
9.4
|
%
|
Dispositions
|
2,855
|
|
|
9,300
|
|
|
(6,445)
|
|
|
(69.3)
|
%
|
Total
|
143,717
|
|
|
132,454
|
|
|
11,263
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
Property operating
expenses, including real estate taxes
|
|
|
|
|
|
|
|
Same-store
|
50,032
|
|
|
48,631
|
|
|
1,401
|
|
|
2.9
|
%
|
Non-same-store
|
5,875
|
|
|
995
|
|
|
4,880
|
|
|
490.5
|
%
|
Other
properties
|
873
|
|
|
759
|
|
|
114
|
|
|
15.0
|
%
|
Dispositions
|
1,571
|
|
|
4,849
|
|
|
(3,278)
|
|
|
(67.6)
|
%
|
Total
|
58,351
|
|
|
55,234
|
|
|
3,117
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
|
|
|
|
|
|
Same-store
|
72,523
|
|
|
69,996
|
|
|
2,527
|
|
|
3.6
|
%
|
Non-same-store
|
10,017
|
|
|
1,324
|
|
|
8,693
|
|
|
656.6
|
%
|
Other
properties
|
1,542
|
|
|
1,449
|
|
|
93
|
|
|
6.4
|
%
|
Dispositions
|
1,284
|
|
|
4,451
|
|
|
(3,167)
|
|
|
(71.2)
|
%
|
Total
|
$
|
85,366
|
|
|
$
|
77,220
|
|
|
$
|
8,146
|
|
|
10.5
|
%
|
Reconciliation of Same-Store Controllable Expenses to Total
Property Operating Expenses, Including Real Estate Taxes
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.
|
(in thousands, except percentages)
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
$ Change
|
|
% Change
|
|
|
2021
|
|
2020
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Controllable
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On-site
compensation(1)
|
$
|
4,488
|
|
|
$
|
4,362
|
|
|
$
|
126
|
|
|
2.9
|
%
|
|
|
$
|
13,182
|
|
|
$
|
12,908
|
|
|
$
|
274
|
|
|
2.1
|
%
|
Repairs and
maintenance
|
2,562
|
|
|
2,804
|
|
|
(242)
|
|
|
(8.6)
|
%
|
|
|
7,060
|
|
|
7,469
|
|
|
(409)
|
|
|
(5.5)
|
%
|
Utilities
|
2,941
|
|
|
2,609
|
|
|
332
|
|
|
12.7
|
%
|
|
|
8,239
|
|
|
7,689
|
|
|
550
|
|
|
7.2
|
%
|
Administrative and
marketing
|
956
|
|
|
853
|
|
|
103
|
|
|
12.1
|
%
|
|
|
2,701
|
|
|
2,595
|
|
|
106
|
|
|
4.1
|
%
|
Total
|
$
|
10,947
|
|
|
$
|
10,628
|
|
|
$
|
319
|
|
|
3.0
|
%
|
|
|
$
|
31,182
|
|
|
$
|
30,661
|
|
|
$
|
521
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controllable
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
$
|
4,812
|
|
|
$
|
4,795
|
|
|
$
|
17
|
|
|
0.4
|
%
|
|
|
$
|
14,665
|
|
|
$
|
14,513
|
|
|
$
|
152
|
|
|
1.0
|
%
|
Insurance
|
1,367
|
|
|
986
|
|
|
381
|
|
|
38.6
|
%
|
|
|
4,185
|
|
|
3,457
|
|
|
728
|
|
|
21.1
|
%
|
Total
|
$
|
6,179
|
|
|
$
|
5,781
|
|
|
$
|
398
|
|
|
6.9
|
%
|
|
|
$
|
18,850
|
|
|
$
|
17,970
|
|
|
$
|
880
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, including real estate taxes - non-same-store
|
$
|
2,940
|
|
|
$
|
491
|
|
|
$
|
2,449
|
|
|
498.8
|
%
|
|
|
$
|
5,875
|
|
|
$
|
995
|
|
|
$
|
4,880
|
|
|
490.5
|
%
|
Property operating
expenses, including real estate taxes - other properties
|
317
|
|
|
229
|
|
|
88
|
|
|
38.4
|
%
|
|
|
873
|
|
|
759
|
|
|
114
|
|
|
15.0
|
%
|
Property operating
expenses, including real estate taxes - dispositions
|
(33)
|
|
|
1,402
|
|
|
(1,435)
|
|
|
(102.4)
|
%
|
|
|
1,571
|
|
|
4,849
|
|
|
(3,278)
|
|
|
(67.6)
|
%
|
Total property
operating expenses, including real estate taxes
|
$
|
20,350
|
|
|
$
|
18,531
|
|
|
$
|
1,819
|
|
|
9.8
|
%
|
|
|
$
|
58,351
|
|
|
$
|
55,234
|
|
|
$
|
3,117
|
|
|
5.6
|
%
|
_________________
|
(1)
|
On-site compensation
for administration, leasing, and maintenance personnel.
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to Funds From Operations and Core Funds From
Operations
Centerspace 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.
Centerspace 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;
and
- 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.
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 or any other GAAP measurement of performance, but rather
should be considered as an additional, supplemental measure. FFO
also does not represent cash generated from operating activities in
accordance with GAAP, nor is it indicative of funds available to
fund all cash flow needs, including the ability to service
indebtedness or make distributions to shareholders.
Core Funds from Operations ("Core FFO") is FFO as adjusted for
non-routine items or items not considered core to business
operations. By further adjusting for items that are not considered
part of core business operations, the company believes that Core
FFO provides investors with additional information to compare core
operating and financial performance between periods. Core FFO
should not be considered as an alternative to net income, 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.
|
|
(in thousands, except per share
amounts)
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
|
9/30/2021
|
|
9/30/2020
|
Funds From
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
(11,099)
|
|
|
$
|
19,931
|
|
|
$
|
(6,474)
|
|
|
$
|
(5,985)
|
|
|
$
|
18,021
|
|
|
|
$
|
2,358
|
|
|
$
|
4,195
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests – Operating Partnership
|
|
(1,930)
|
|
|
1,386
|
|
|
(469)
|
|
|
(460)
|
|
|
1,387
|
|
|
|
(1,013)
|
|
|
248
|
|
Depreciation and
amortization
|
|
22,447
|
|
|
19,308
|
|
|
19,992
|
|
|
20,282
|
|
|
18,995
|
|
|
|
61,747
|
|
|
55,311
|
|
Less depreciation –
non real estate
|
|
(80)
|
|
|
(87)
|
|
|
(98)
|
|
|
(87)
|
|
|
(85)
|
|
|
|
(265)
|
|
|
(266)
|
|
Less depreciation –
partially owned entities
|
|
(24)
|
|
|
(24)
|
|
|
(24)
|
|
|
(33)
|
|
|
(31)
|
|
|
|
(72)
|
|
|
(346)
|
|
(Gain) loss on sale of
real estate
|
|
—
|
|
|
(26,840)
|
|
|
—
|
|
|
(17)
|
|
|
(25,676)
|
|
|
|
(26,840)
|
|
|
(25,486)
|
|
FFO applicable to
common shares and Units
|
|
$
|
9,314
|
|
|
$
|
13,674
|
|
|
$
|
12,927
|
|
|
$
|
13,700
|
|
|
$
|
12,611
|
|
|
|
$
|
35,915
|
|
|
$
|
33,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casualty (gain)
loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|
545
|
|
|
|
—
|
|
|
545
|
|
Loss on extinguishment
of debt
|
|
530
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
|
533
|
|
|
21
|
|
Rebranding
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
402
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Technology
implementation costs
|
|
625
|
|
|
447
|
|
|
413
|
|
|
—
|
|
|
—
|
|
|
|
1,485
|
|
|
—
|
|
(Gain) loss on
marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
3,378
|
|
(Discount) premium on
redemption of preferred shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
|
—
|
|
|
(297)
|
|
Commercial lease
termination proceeds
|
|
(450)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(450)
|
|
|
—
|
|
Acquisition related
costs
|
|
140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
140
|
|
|
—
|
|
Interest rate swap
termination and amortization
|
|
5,353
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5,353
|
|
|
—
|
|
Amortization of
assumed debt
|
|
(27)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(27)
|
|
|
—
|
|
Other miscellaneous
items
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(3)
|
|
|
—
|
|
Core FFO applicable to
common shares and Units
|
|
$
|
15,482
|
|
|
$
|
14,124
|
|
|
$
|
13,340
|
|
|
$
|
14,308
|
|
|
$
|
13,161
|
|
|
|
$
|
42,946
|
|
|
$
|
37,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
applicable to common shares and Units
|
|
$
|
9,314
|
|
|
$
|
13,674
|
|
|
$
|
12,927
|
|
|
$
|
13,700
|
|
|
$
|
12,611
|
|
|
|
$
|
35,915
|
|
|
$
|
33,656
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
|
480
|
|
|
480
|
|
Funds from operations
applicable to common shares and Units - diluted
|
|
$
|
9,474
|
|
|
$
|
13,834
|
|
|
$
|
13,087
|
|
|
$
|
13,860
|
|
|
$
|
12,771
|
|
|
|
$
|
36,395
|
|
|
$
|
34,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations applicable to common shares and Units
|
|
$
|
15,482
|
|
|
$
|
14,124
|
|
|
$
|
13,340
|
|
|
$
|
14,308
|
|
|
$
|
13,161
|
|
|
|
$
|
42,946
|
|
|
$
|
37,303
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
|
480
|
|
|
480
|
|
Core funds from
operations applicable to common shares and Units -
diluted
|
|
$
|
15,642
|
|
|
$
|
14,284
|
|
|
$
|
13,500
|
|
|
$
|
14,468
|
|
|
$
|
13,321
|
|
|
|
$
|
43,426
|
|
|
$
|
37,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share and Unit - diluted
|
|
$
|
(0.81)
|
|
|
$
|
1.48
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.38
|
|
|
|
$
|
0.12
|
|
|
$
|
0.33
|
|
FFO per share and
Unit - diluted
|
|
$
|
0.60
|
|
|
$
|
0.95
|
|
|
$
|
0.92
|
|
|
$
|
0.97
|
|
|
$
|
0.90
|
|
|
|
$
|
2.44
|
|
|
$
|
2.49
|
|
Core FFO per share
and Unit - diluted
|
|
$
|
0.98
|
|
|
$
|
0.98
|
|
|
$
|
0.95
|
|
|
$
|
1.02
|
|
|
$
|
0.94
|
|
|
|
$
|
2.91
|
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares and Units - diluted
|
|
15,922
|
|
|
14,514
|
|
|
14,282
|
|
|
14,222
|
|
|
14,143
|
|
|
|
14,917
|
|
|
13,704
|
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to 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, the cost of debt, 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.
|
|
(in thousands)
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
|
9/30/2021
|
|
9/30/2020
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
(9,492)
|
|
|
$
|
21,538
|
|
|
$
|
(4,867)
|
|
|
$
|
(4,378)
|
|
|
$
|
19,629
|
|
|
|
$
|
7,179
|
|
|
$
|
8,819
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to preferred
unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
|
480
|
|
|
480
|
|
Noncontrolling
interests – Operating Partnership
|
|
(1,930)
|
|
|
1,386
|
|
|
(469)
|
|
|
(460)
|
|
|
1,387
|
|
|
|
(1,013)
|
|
|
248
|
|
Income (loss) before
noncontrolling interests – Operating Partnership
|
|
$
|
(11,262)
|
|
|
$
|
23,084
|
|
|
$
|
(5,176)
|
|
|
$
|
(4,678)
|
|
|
$
|
21,176
|
|
|
|
$
|
6,646
|
|
|
$
|
9,547
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
7,287
|
|
|
7,075
|
|
|
7,216
|
|
|
6,888
|
|
|
6,756
|
|
|
|
21,578
|
|
|
20,446
|
|
Loss on extinguishment
of debt
|
|
530
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
|
533
|
|
|
21
|
|
Depreciation/amortization related to real estate
investments
|
|
22,423
|
|
|
19,284
|
|
|
19,969
|
|
|
20,250
|
|
|
18,964
|
|
|
|
61,676
|
|
|
54,965
|
|
Casualty (gain)
loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|
545
|
|
|
|
—
|
|
|
545
|
|
Interest
income
|
|
(769)
|
|
|
(583)
|
|
|
(407)
|
|
|
(328)
|
|
|
(256)
|
|
|
|
(1,759)
|
|
|
(1,184)
|
|
(Gain) loss on sale of
real estate and other investments
|
|
—
|
|
|
(26,840)
|
|
|
—
|
|
|
(17)
|
|
|
(25,676)
|
|
|
|
(26,840)
|
|
|
(25,486)
|
|
Technology
implementation costs
|
|
625
|
|
|
447
|
|
|
413
|
|
|
—
|
|
|
—
|
|
|
|
1,486
|
|
|
—
|
|
(Gain) loss on
marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
3,378
|
|
Commercial lease
termination proceeds
|
|
(450)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(450)
|
|
|
—
|
|
Acquisition related
costs
|
|
140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
140
|
|
|
—
|
|
Interest rate swap
termination
|
|
5,361
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5,361
|
|
|
—
|
|
Other miscellaneous
items
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(3)
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
23,882
|
|
|
$
|
22,470
|
|
|
$
|
22,015
|
|
|
$
|
22,321
|
|
|
$
|
21,513
|
|
|
|
$
|
68,368
|
|
|
$
|
62,232
|
|
CENTERSPACE
|
DEBT
ANALYSIS
|
(in
thousands)
|
|
Debt Maturity
Schedule
|
Annual
Expirations
|
|
|
|
Future Maturities of Debt
|
|
|
Secured
Fixed
Debt
|
|
Unsecured
Fixed
Debt(1)
|
|
Total
Debt
|
|
% of
Total Debt
|
|
Weighted
Average
Interest
Rate(2)
|
|
2021
(remainder)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
2022
|
|
29,822
|
|
|
—
|
|
|
29,822
|
|
|
3.5
|
%
|
|
4.07
|
%
|
|
2023
|
|
42,875
|
|
|
—
|
|
|
42,875
|
|
|
5.1
|
%
|
|
4.02
|
%
|
|
2024
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2025
|
|
32,316
|
|
|
57,000
|
|
|
89,316
|
|
|
10.5
|
%
|
|
2.83
|
%
|
|
Thereafter
|
|
387,384
|
|
|
300,000
|
|
|
687,384
|
|
|
80.9
|
%
|
|
3.20
|
%
|
Total debt
|
|
$
|
492,397
|
|
|
$
|
357,000
|
|
|
$
|
849,397
|
|
|
100.0
|
%
|
|
3.23
|
%
|
__________________
|
(1)
|
The line of credit is
fixed with an interest rate swap.
|
(2)
|
Weighted average
interest rate of debt that matures during the year, including the
effect of interest rate swaps on the term loans and line of
credit.
|
|
|
|
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
Debt Balances
Outstanding
|
|
|
|
|
|
|
|
|
|
|
Secured fixed rate -
other mortgages
|
|
$
|
293,547
|
|
|
$
|
288,363
|
|
|
$
|
295,001
|
|
|
$
|
298,445
|
|
|
$
|
314,511
|
|
Secured fixed rate -
Fannie Mae credit facility
|
|
198,850
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Unsecured fixed rate
line of credit(1)
|
|
57,000
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
Unsecured variable
rate line of credit
|
|
—
|
|
|
37,000
|
|
|
131,544
|
|
|
102,871
|
|
|
85,000
|
|
Unsecured term
loans
|
|
—
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
Unsecured senior
notes
|
|
300,000
|
|
|
175,000
|
|
|
175,000
|
|
|
125,000
|
|
|
125,000
|
|
Debt total
|
|
$
|
849,397
|
|
|
$
|
695,363
|
|
|
$
|
796,545
|
|
|
$
|
721,316
|
|
|
$
|
719,511
|
|
|
|
|
|
|
|
|
|
|
|
|
Other mortgages
rate
|
|
3.83
|
%
|
|
3.90
|
%
|
|
3.92
|
%
|
|
3.93
|
%
|
|
3.99
|
%
|
Fannie Mae Credit
Facility rate
|
|
2.78
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Lines of credit rate
(rate with swap)
|
|
2.79
|
%
|
|
2.24
|
%
|
|
2.18
|
%
|
|
2.35
|
%
|
|
3.35
|
%
|
Term loan rate (rate
with swap)
|
|
—
|
|
|
4.19
|
%
|
|
4.11
|
%
|
|
4.18
|
%
|
|
4.18
|
%
|
Senior notes
rate
|
|
3.12
|
%
|
|
3.47
|
%
|
|
3.47
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
Total debt
|
|
3.23
|
%
|
|
3.70
|
%
|
|
3.37
|
%
|
|
3.62
|
%
|
|
3.68
|
%
|
__________________
|
(1)
|
A portion of the
primary line of credit is fixed through an interest rate
swap.
|
CENTERSPACE
|
CAPITAL
ANALYSIS
|
(in thousands,
except per share and unit amounts)
|
|
|
|
Three Months Ended
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
Equity
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
14,281
|
|
|
14,045
|
|
|
13,220
|
|
|
13,027
|
|
|
12,976
|
|
Operating partnership
units outstanding
|
|
845
|
|
|
881
|
|
|
950
|
|
|
977
|
|
|
1,018
|
|
Series E preferred
units (as converted)
|
|
2,186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total common shares
and units outstanding
|
|
17,312
|
|
|
14,926
|
|
|
14,170
|
|
|
14,004
|
|
|
13,994
|
|
Market price per
common share (closing price at end of period)
|
|
$
|
94.50
|
|
|
$
|
78.90
|
|
|
$
|
68.00
|
|
|
$
|
70.64
|
|
|
$
|
65.17
|
|
Equity
capitalization-common shares and units
|
|
$
|
1,635,984
|
|
|
$
|
1,177,661
|
|
|
$
|
963,560
|
|
|
$
|
989,243
|
|
|
$
|
911,989
|
|
Recorded book value of
preferred shares
|
|
$
|
93,530
|
|
|
$
|
93,530
|
|
|
$
|
93,530
|
|
|
$
|
93,530
|
|
|
$
|
93,530
|
|
Total equity
capitalization
|
|
$
|
1,729,514
|
|
|
$
|
1,271,191
|
|
|
$
|
1,057,090
|
|
|
$
|
1,082,773
|
|
|
$
|
1,005,519
|
|
|
|
|
|
|
|
|
|
|
|
|
Series D Preferred
Units
|
|
$
|
21,585
|
|
|
$
|
18,022
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
849,397
|
|
|
$
|
695,363
|
|
|
$
|
796,545
|
|
|
$
|
721,317
|
|
|
$
|
719,511
|
|
Total
capitalization
|
|
$
|
2,600,496
|
|
|
$
|
1,984,576
|
|
|
$
|
1,870,195
|
|
|
$
|
1,820,650
|
|
|
$
|
1,741,590
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to total
capitalization(1)
|
|
33.1
|
%
|
|
35.0
|
%
|
|
43.1
|
%
|
|
39.6
|
%
|
|
41.3
|
%
|
________________________
|
(1)
|
Total debt to total
market capitalization is total debt from the balance sheet divided
by the sum of total debt from the balance sheet, market value of
common shares and operating partnership units, and book value of
Series C preferred shares and Series D preferred units outstanding
at the end of the period.
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
|
9/30/2021
|
|
9/30/2020
|
Debt service coverage
ratio(1)
|
|
2.75
|
x
|
|
2.62
|
x
|
|
2.53
|
x
|
|
2.73
|
x
|
|
2.65
|
x
|
|
|
2.63
|
x
|
|
2.52
|
x
|
Adjusted
EBITDA/Interest expense plus preferred distributions and principal
amortization
|
|
2.32
|
x
|
|
2.21
|
x
|
|
2.14
|
x
|
|
2.28
|
x
|
|
2.21
|
x
|
|
|
2.22
|
x
|
|
2.08
|
x
|
Net debt/Adjusted
EBITDA(2)
|
|
8.67
|
x
|
|
7.68
|
x
|
|
8.92
|
x
|
|
8.07
|
x
|
|
8.17
|
x
|
|
|
9.09
|
x
|
|
8.47
|
x
|
Net debt and
preferred equity/Adjusted EBITDA(2)
|
|
9.88
|
x
|
|
8.92
|
x
|
|
10.17
|
x
|
|
9.31
|
x
|
|
9.45
|
x
|
|
|
10.35
|
x
|
|
9.80
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares and
Units outstanding at record date
|
|
15,126
|
|
|
14,926
|
|
|
14,171
|
|
|
14,004
|
|
|
13,994
|
|
|
|
15,126
|
|
|
13,994
|
|
Total common
distribution declared
|
|
$
|
10,890
|
|
|
$
|
10,448
|
|
|
$
|
9,919
|
|
|
$
|
9,803
|
|
|
$
|
9,796
|
|
|
|
$
|
31,257
|
|
|
$
|
28,735
|
|
Common distribution
per share and Unit
|
|
$
|
0.72
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
|
$
|
2.12
|
|
|
$
|
2.10
|
|
Payout ratio (Core
FFO per diluted share and unit basis)(3)
|
|
73.5
|
%
|
|
71.4
|
%
|
|
73.7
|
%
|
|
68.6
|
%
|
|
74.5
|
%
|
|
|
72.9
|
%
|
|
76.1
|
%
|
_________________________________
|
(1)
|
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 the Non-GAAP Financial Measures
and Reconciliations section.
|
(2)
|
Net debt is the total
debt balance less cash and cash equivalents and net tax deferred
exchange proceeds (included within restricted cash). 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 the Non-GAAP Financial Measures and Reconciliations
section.
|
(3)
|
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.
|
CENTERSPACE
|
SAME-STORE THIRD
QUARTER COMPARISONS
|
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
Q3
2021
|
|
Q3
2020
|
|
%
Change
|
|
Q3
2021
|
|
Q3
2020
|
|
%
Change
|
|
Q3
2021
|
|
Q3
2020
|
|
%
Change
|
Denver, CO
|
|
992
|
|
|
$
|
5,565
|
|
|
$
|
5,372
|
|
|
3.6
|
%
|
|
$
|
1,899
|
|
|
$
|
1,916
|
|
|
(0.9)
|
%
|
|
$
|
3,666
|
|
|
$
|
3,456
|
|
|
6.1
|
%
|
Minneapolis,
MN
|
|
2,355
|
|
|
11,361
|
|
|
10,547
|
|
|
7.7
|
%
|
|
4,548
|
|
|
4,462
|
|
|
1.9
|
%
|
|
6,813
|
|
|
6,085
|
|
|
12.0
|
%
|
North
Dakota
|
|
2,422
|
|
|
8,183
|
|
|
7,852
|
|
|
4.2
|
%
|
|
3,378
|
|
|
3,146
|
|
|
7.4
|
%
|
|
4,805
|
|
|
4,706
|
|
|
2.1
|
%
|
Omaha, NE
|
|
1,370
|
|
|
4,166
|
|
|
3,884
|
|
|
7.3
|
%
|
|
1,933
|
|
|
1,790
|
|
|
8.0
|
%
|
|
2,233
|
|
|
2,094
|
|
|
6.6
|
%
|
Rochester,
MN
|
|
1,122
|
|
|
4,874
|
|
|
4,577
|
|
|
6.5
|
%
|
|
1,924
|
|
|
2,064
|
|
|
(6.8)
|
%
|
|
2,950
|
|
|
2,513
|
|
|
17.4
|
%
|
St. Cloud,
MN
|
|
1,192
|
|
|
3,683
|
|
|
3,548
|
|
|
3.8
|
%
|
|
1,750
|
|
|
1,603
|
|
|
9.2
|
%
|
|
1,933
|
|
|
1,945
|
|
|
(0.6)
|
%
|
Other Mountain
West
|
|
1,223
|
|
|
4,202
|
|
|
3,791
|
|
|
10.8
|
%
|
|
1,694
|
|
|
1,428
|
|
|
18.6
|
%
|
|
2,508
|
|
|
2,363
|
|
|
6.1
|
%
|
Same-Store
Total
|
|
10,676
|
|
|
$
|
42,034
|
|
|
$
|
39,571
|
|
|
6.2
|
%
|
|
$
|
17,126
|
|
|
$
|
16,409
|
|
|
4.4
|
%
|
|
$
|
24,908
|
|
|
$
|
23,162
|
|
|
7.5
|
%
|
|
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy (1)
|
|
Average
Monthly
Rental Rate
(2)
|
|
Average
Monthly
Revenue per Occupied Home (3)
|
Regions
|
|
|
Q3
2021
|
|
Q3
2020
|
|
Growth
|
|
Q3
2021
|
|
Q3
2020
|
|
%
Change
|
|
Q3
2021
|
|
Q3
2020
|
|
%
Change
|
Denver, CO
|
|
14.7
|
%
|
|
94.5
|
%
|
|
93.4
|
%
|
|
1.1
|
%
|
|
$
|
1,779
|
|
|
$
|
1,750
|
|
|
1.7
|
%
|
|
$
|
1,978
|
|
|
$
|
1,932
|
|
|
2.5
|
%
|
Minneapolis,
MN
|
|
27.3
|
%
|
|
94.6
|
%
|
|
93.1
|
%
|
|
1.5
|
%
|
|
1,558
|
|
|
1,504
|
|
|
3.6
|
%
|
|
1,699
|
|
|
1,603
|
|
|
6.2
|
%
|
North
Dakota
|
|
19.3
|
%
|
|
94.2
|
%
|
|
95.5
|
%
|
|
(1.3)
|
%
|
|
1,107
|
|
|
1,054
|
|
|
5.0
|
%
|
|
1,195
|
|
|
1,131
|
|
|
5.5
|
%
|
Omaha, NE
|
|
9.0
|
%
|
|
94.6
|
%
|
|
93.8
|
%
|
|
0.8
|
%
|
|
962
|
|
|
913
|
|
|
5.4
|
%
|
|
1,072
|
|
|
1,008
|
|
|
6.5
|
%
|
Rochester,
MN
|
|
11.8
|
%
|
|
93.2
|
%
|
|
93.8
|
%
|
|
(0.6)
|
%
|
|
1,462
|
|
|
1,385
|
|
|
5.6
|
%
|
|
1,554
|
|
|
1,450
|
|
|
7.1
|
%
|
St. Cloud,
MN
|
|
7.8
|
%
|
|
91.5
|
%
|
|
94.4
|
%
|
|
(2.9)
|
%
|
|
1,063
|
|
|
963
|
|
|
10.4
|
%
|
|
1,125
|
|
|
1,051
|
|
|
6.7
|
%
|
Other Mountain
West
|
|
10.1
|
%
|
|
96.6
|
%
|
|
97.1
|
%
|
|
(0.5)
|
%
|
|
1,080
|
|
|
970
|
|
|
11.3
|
%
|
|
1,185
|
|
|
1,064
|
|
|
11.3
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.3
|
%
|
|
94.3
|
%
|
|
—
|
|
|
$
|
1,279
|
|
|
$
|
1,215
|
|
|
5.3
|
%
|
|
$
|
1,392
|
|
|
$
|
1,311
|
|
|
6.2
|
%
|
______________________
|
(1)
|
Weighted average
occupancy is defined as the percentage resulting from dividing
actual rental revenue by scheduled rent. Scheduled rental revenue
represents the value of all apartment homes, with occupied
apartment homes valued at contractual 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.
|
(2)
|
Average monthly
rental rate is scheduled rent divided by the total number of
apartment homes.
|
(3)
|
Average monthly
revenue per occupied home is defined as total rental revenues
divided by the weighted average occupied apartment homes for the
period.
|
CENTERSPACE
|
SAME-STORE SEQUENTIAL
QUARTER COMPARISONS
|
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
Q3
2021
|
|
Q2
2021
|
|
%
Change
|
|
Q3
2021
|
|
Q2
2021
|
|
%
Change
|
|
Q3
2021
|
|
Q2
2021
|
|
%
Change
|
Denver, CO
|
|
992
|
|
|
$
|
5,565
|
|
|
$
|
5,486
|
|
|
1.4
|
%
|
|
$
|
1,899
|
|
|
$
|
1,837
|
|
|
3.4
|
%
|
|
$
|
3,666
|
|
|
$
|
3,649
|
|
|
0.4
|
%
|
Minneapolis,
MN
|
|
2,355
|
|
|
11,361
|
|
|
10,538
|
|
|
7.8
|
%
|
|
4,548
|
|
|
4,649
|
|
|
(2.2)
|
%
|
|
6,813
|
|
|
5,889
|
|
|
15.7
|
%
|
North
Dakota
|
|
2,422
|
|
|
8,183
|
|
|
8,078
|
|
|
1.3
|
%
|
|
3,378
|
|
|
3,199
|
|
|
5.6
|
%
|
|
4,805
|
|
|
4,879
|
|
|
(1.5)
|
%
|
Omaha, NE
|
|
1,370
|
|
|
4,166
|
|
|
4,037
|
|
|
3.2
|
%
|
|
1,933
|
|
|
1,885
|
|
|
2.5
|
%
|
|
2,233
|
|
|
2,152
|
|
|
3.8
|
%
|
Rochester,
MN
|
|
1,122
|
|
|
4,874
|
|
|
4,709
|
|
|
3.5
|
%
|
|
1,924
|
|
|
1,937
|
|
|
(0.7)
|
%
|
|
2,950
|
|
|
2,772
|
|
|
6.4
|
%
|
St. Cloud,
MN
|
|
1,192
|
|
|
3,683
|
|
|
3,634
|
|
|
1.3
|
%
|
|
1,750
|
|
|
1,582
|
|
|
10.6
|
%
|
|
1,933
|
|
|
2,052
|
|
|
(5.8)
|
%
|
Other Mountain
West
|
|
1,223
|
|
|
4,202
|
|
|
4,039
|
|
|
4.0
|
%
|
|
1,694
|
|
|
1,439
|
|
|
17.7
|
%
|
|
2,508
|
|
|
2,600
|
|
|
(3.5)
|
%
|
Same-Store
Total
|
|
10,676
|
|
|
$
|
42,034
|
|
|
$
|
40,521
|
|
|
3.7
|
%
|
|
$
|
17,126
|
|
|
$
|
16,528
|
|
|
3.6
|
%
|
|
$
|
24,908
|
|
|
$
|
23,993
|
|
|
3.8
|
%
|
|
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy
|
|
Average
Monthly
Rental
Rate
|
|
Average
Monthly
Revenue per
Occupied Home
|
Regions
|
|
|
Q3
2021
|
|
Q2
2021
|
|
Growth
|
|
Q3
2021
|
|
Q2
2021
|
|
%
Change
|
|
Q3
2021
|
|
Q2
2021
|
|
%
Change
|
Denver, CO
|
|
14.7
|
%
|
|
94.5
|
%
|
|
94.2
|
%
|
|
0.3
|
%
|
|
$
|
1,779
|
|
|
$
|
1,727
|
|
|
3.0
|
%
|
|
$
|
1,978
|
|
|
$
|
1,957
|
|
|
1.1
|
%
|
Minneapolis,
MN
|
|
27.3
|
%
|
|
94.6
|
%
|
|
94.2
|
%
|
|
0.4
|
%
|
|
1,558
|
|
|
1,510
|
|
|
3.2
|
%
|
|
1,699
|
|
|
1,584
|
|
|
7.4
|
%
|
North
Dakota
|
|
19.3
|
%
|
|
94.2
|
%
|
|
95.9
|
%
|
|
(1.7)
|
%
|
|
1,107
|
|
|
1,078
|
|
|
2.7
|
%
|
|
1,195
|
|
|
1,159
|
|
|
3.0
|
%
|
Omaha, NE
|
|
9.0
|
%
|
|
94.6
|
%
|
|
95.5
|
%
|
|
(0.9)
|
%
|
|
962
|
|
|
927
|
|
|
3.8
|
%
|
|
1,072
|
|
|
1,029
|
|
|
4.1
|
%
|
Rochester,
MN
|
|
11.8
|
%
|
|
93.2
|
%
|
|
94.5
|
%
|
|
(1.3)
|
%
|
|
1,462
|
|
|
1,403
|
|
|
4.2
|
%
|
|
1,554
|
|
|
1,480
|
|
|
4.8
|
%
|
St. Cloud,
MN
|
|
7.8
|
%
|
|
91.5
|
%
|
|
92.7
|
%
|
|
(1.2)
|
%
|
|
1,063
|
|
|
1,005
|
|
|
5.8
|
%
|
|
1,125
|
|
|
1,097
|
|
|
2.5
|
%
|
Other Mountain
West
|
|
10.1
|
%
|
|
96.6
|
%
|
|
98.1
|
%
|
|
(1.5)
|
%
|
|
1,080
|
|
|
1,014
|
|
|
6.5
|
%
|
|
1,185
|
|
|
1,122
|
|
|
5.5
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.3
|
%
|
|
94.9
|
%
|
|
(0.6)
|
%
|
|
$
|
1,279
|
|
|
$
|
1,233
|
|
|
3.7
|
%
|
|
$
|
1,392
|
|
|
$
|
1,333
|
|
|
4.4
|
%
|
CENTERSPACE
|
SAME-STORE
YEAR-TO-DATE COMPARISONS
|
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
2021
|
|
2020
|
|
%
Change
|
|
2021
|
|
2020
|
|
%
Change
|
|
2021
|
|
2020
|
|
%
Change
|
Denver, CO
|
|
992
|
|
|
$
|
16,459
|
|
|
$
|
16,170
|
|
|
1.8
|
%
|
|
$
|
5,604
|
|
|
$
|
5,332
|
|
|
5.1
|
%
|
|
$
|
10,855
|
|
|
$
|
10,838
|
|
|
0.2
|
%
|
Minneapolis,
MN
|
|
2,355
|
|
|
32,365
|
|
|
32,024
|
|
|
1.1
|
%
|
|
13,627
|
|
|
13,125
|
|
|
3.8
|
%
|
|
18,738
|
|
|
18,899
|
|
|
(0.9)
|
%
|
North
Dakota
|
|
2,422
|
|
|
24,209
|
|
|
23,331
|
|
|
3.8
|
%
|
|
9,848
|
|
|
9,791
|
|
|
0.6
|
%
|
|
14,361
|
|
|
13,540
|
|
|
6.1
|
%
|
Omaha, NE
|
|
1,370
|
|
|
12,229
|
|
|
11,536
|
|
|
6.0
|
%
|
|
5,580
|
|
|
5,199
|
|
|
7.3
|
%
|
|
6,649
|
|
|
6,337
|
|
|
4.9
|
%
|
Rochester,
MN
|
|
1,122
|
|
|
14,227
|
|
|
13,910
|
|
|
2.3
|
%
|
|
5,847
|
|
|
5,922
|
|
|
(1.3)
|
%
|
|
8,380
|
|
|
7,988
|
|
|
4.9
|
%
|
St. Cloud,
MN
|
|
1,192
|
|
|
10,972
|
|
|
10,705
|
|
|
2.5
|
%
|
|
4,967
|
|
|
4,883
|
|
|
1.7
|
%
|
|
6,005
|
|
|
5,822
|
|
|
3.1
|
%
|
Other Mountain
West
|
|
1,223
|
|
|
12,094
|
|
|
10,951
|
|
|
10.4
|
%
|
|
4,559
|
|
|
4,379
|
|
|
4.1
|
%
|
|
7,535
|
|
|
6,572
|
|
|
14.7
|
%
|
Same-Store
Total
|
|
10,676
|
|
|
$
|
122,555
|
|
|
$
|
118,627
|
|
|
3.3
|
%
|
|
$
|
50,032
|
|
|
$
|
48,631
|
|
|
2.9
|
%
|
|
$
|
72,523
|
|
|
$
|
69,996
|
|
|
3.6
|
%
|
|
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy
|
|
Average
Monthly
Rental
Rate
|
|
Average
Monthly
Revenue per
Occupied Home
|
Regions
|
|
|
2021
|
|
2020
|
|
Growth
|
|
2021
|
|
2020
|
|
%
Change
|
|
2021
|
|
2020
|
|
%
Change
|
Denver, CO
|
|
15.0
|
%
|
|
94.4
|
%
|
|
93.6
|
%
|
|
0.8
|
%
|
|
$
|
1,741
|
|
|
$
|
1,772
|
|
|
(1.7)
|
%
|
|
$
|
1,953
|
|
|
$
|
1,935
|
|
|
1.0
|
%
|
Minneapolis,
MN
|
|
25.7
|
%
|
|
93.9
|
%
|
|
93.8
|
%
|
|
0.1
|
%
|
|
1,521
|
|
|
1,495
|
|
|
1.7
|
%
|
|
1,626
|
|
|
1,611
|
|
|
1.0
|
%
|
North
Dakota
|
|
19.8
|
%
|
|
95.4
|
%
|
|
95.9
|
%
|
|
(0.5)
|
%
|
|
1,082
|
|
|
1,045
|
|
|
3.5
|
%
|
|
1,164
|
|
|
1,116
|
|
|
4.3
|
%
|
Omaha, NE
|
|
9.2
|
%
|
|
95.0
|
%
|
|
94.3
|
%
|
|
0.7
|
%
|
|
934
|
|
|
903
|
|
|
3.4
|
%
|
|
1,044
|
|
|
992
|
|
|
5.3
|
%
|
Rochester,
MN
|
|
11.6
|
%
|
|
94.4
|
%
|
|
95.5
|
%
|
|
(1.1)
|
%
|
|
1,413
|
|
|
1,383
|
|
|
2.2
|
%
|
|
1,493
|
|
|
1,443
|
|
|
3.4
|
%
|
St. Cloud,
MN
|
|
8.3
|
%
|
|
92.9
|
%
|
|
94.3
|
%
|
|
(1.4)
|
%
|
|
1,013
|
|
|
953
|
|
|
6.3
|
%
|
|
1,101
|
|
|
1,058
|
|
|
3.9
|
%
|
Other Mountain
West
|
|
10.4
|
%
|
|
97.5
|
%
|
|
95.9
|
%
|
|
1.6
|
%
|
|
1,026
|
|
|
954
|
|
|
7.5
|
%
|
|
1,127
|
|
|
1,037
|
|
|
8.8
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.7
|
%
|
|
94.7
|
%
|
|
—
|
|
|
$
|
1,242
|
|
|
$
|
1,208
|
|
|
2.8
|
%
|
|
$
|
1,347
|
|
|
$
|
1,304
|
|
|
3.3
|
%
|
CENTERSPACE
|
PORTFOLIO
SUMMARY(1)
|
|
|
|
Three Months
Ended
|
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
Number of Apartment
Homes at Period End
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
10,676
|
|
|
10,676
|
|
|
11,265
|
|
|
10,567
|
|
|
10,567
|
|
Non-Same-Store
|
|
3,599
|
|
|
903
|
|
|
903
|
|
|
1,343
|
|
|
1,343
|
|
All
Communities
|
|
14,275
|
|
|
11,579
|
|
|
12,168
|
|
|
11,910
|
|
|
11,910
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly
Rental Rate(2)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,279
|
|
|
$
|
1,233
|
|
|
$
|
1,200
|
|
|
$
|
1,177
|
|
|
$
|
1,178
|
|
Non-Same-Store
|
|
1,506
|
|
|
1,617
|
|
|
1,584
|
|
|
1,599
|
|
|
1,597
|
|
All
Communities
|
|
$
|
1,293
|
|
|
$
|
1,263
|
|
|
$
|
1,229
|
|
|
$
|
1,225
|
|
|
$
|
1,210
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly
Revenue per Occupied Apartment Home(3)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,392
|
|
|
$
|
1,333
|
|
|
$
|
1,302
|
|
|
$
|
1,282
|
|
|
$
|
1,271
|
|
Non-Same-Store
|
|
1,606
|
|
|
1,739
|
|
|
1,705
|
|
|
1,708
|
|
|
1,729
|
|
All
Communities
|
|
$
|
1,397
|
|
|
$
|
1,365
|
|
|
$
|
1,332
|
|
|
$
|
1,330
|
|
|
$
|
1,307
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Occupancy(4)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
94.3
|
%
|
|
94.9
|
%
|
|
94.9
|
%
|
|
95.0
|
%
|
|
94.4
|
%
|
Non-Same-Store
|
|
95.1
|
%
|
|
94.2
|
%
|
|
91.8
|
%
|
|
92.3
|
%
|
|
93.9
|
%
|
All
Communities
|
|
94.4
|
%
|
|
94.8
|
%
|
|
94.6
|
%
|
|
94.6
|
%
|
|
94.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses as
a % of Scheduled Rent
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
41.8
|
%
|
|
41.9
|
%
|
|
42.9
|
%
|
|
41.2
|
%
|
|
43.4
|
%
|
Non-Same-Store
|
|
39.9
|
%
|
|
32.9
|
%
|
|
34.9
|
%
|
|
35.3
|
%
|
|
39.7
|
%
|
All
Communities
|
|
41.6
|
%
|
|
41.0
|
%
|
|
42.1
|
%
|
|
40.3
|
%
|
|
43.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Expenditures per Apartment Home – Same-Store
|
|
$
|
255
|
|
|
$
|
159
|
|
|
$
|
131
|
|
|
$
|
326
|
|
|
$
|
293
|
|
___________________
|
(1)
|
Previously reported
amounts are not revised for changes in the composition of the
same-store properties pool.
|
(2)
|
Average monthly
rental rate is scheduled rent divided by the total number of
apartment homes. Scheduled rental revenue represents the value of
all apartment homes, with occupied apartment homes valued at
contractual 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.
|
(3)
|
Average monthly
revenue per occupied home is defined as total rental revenues
divided by the weighted average occupied apartment homes for the
period.
|
(4)
|
Weighted average
occupancy is the percentage resulting from dividing actual rental
revenue by scheduled rent. 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.
|
CENTERSPACE
|
CAPITAL
EXPENDITURES
|
($ in thousands,
except per home amounts)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
9/30/2021
|
|
9/30/2020
|
|
|
9/30/2021
|
|
9/30/2020
|
Total Same-Store
Apartment Homes
|
|
10,676
|
|
|
10,676
|
|
|
|
10,676
|
|
|
10,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building -
Exterior
|
|
$
|
1,236
|
|
|
$
|
707
|
|
|
|
$
|
2,013
|
|
|
$
|
2,796
|
|
Building -
Interior
|
|
128
|
|
|
154
|
|
|
|
431
|
|
|
370
|
|
Mechanical,
Electrical, & Plumbing
|
|
145
|
|
|
—
|
|
|
|
476
|
|
|
—
|
|
Furniture &
Equipment
|
|
13
|
|
|
19
|
|
|
|
76
|
|
|
237
|
|
Landscaping &
Grounds
|
|
211
|
|
|
727
|
|
|
|
|
|
|
Turnover
|
|
989
|
|
|
1,071
|
|
|
|
2,371
|
|
|
2,553
|
|
Capital
Expenditures - Same-Store
|
|
$
|
2,722
|
|
|
$
|
2,678
|
|
|
|
$
|
5,737
|
|
|
$
|
7,136
|
|
Capital
Expenditures per Apartment Home - Same-Store
|
|
$
|
255
|
|
|
$
|
251
|
|
|
|
$
|
537
|
|
|
$
|
668
|
|
|
|
|
|
|
|
|
|
|
|
Value Add
|
|
$
|
7,209
|
|
|
$
|
4,118
|
|
|
|
$
|
14,384
|
|
|
$
|
10,267
|
|
Total Capital Spend
- Same-Store
|
|
$
|
9,931
|
|
|
$
|
6,796
|
|
|
|
$
|
20,121
|
|
|
$
|
17,403
|
|
Total Capital Spend
per Apartment Home - Same-Store
|
|
$
|
930
|
|
|
$
|
637
|
|
|
|
$
|
1,885
|
|
|
$
|
1,630
|
|
|
|
|
|
|
|
|
|
|
|
All Properties -
Weighted Average Apartment Homes
|
|
12,475
|
|
|
11,600
|
|
|
|
12,140
|
|
|
11,456
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$
|
2,827
|
|
|
$
|
2,761
|
|
|
|
$
|
5,939
|
|
|
$
|
7,755
|
|
Capital
Expenditures per Apartment Home
|
|
$
|
227
|
|
|
$
|
238
|
|
|
|
$
|
489
|
|
|
$
|
677
|
|
|
|
|
|
|
|
|
|
|
|
Value Add
|
|
7,209
|
|
|
4,118
|
|
|
|
14,396
|
|
|
10,267
|
|
Acquisition
Capital
|
|
336
|
|
|
730
|
|
|
|
1,297
|
|
|
1,265
|
|
Total Capital
Spend
|
|
10,372
|
|
|
7,609
|
|
|
|
21,632
|
|
|
19,287
|
|
Total Capital Spend
per Apartment Home
|
|
$
|
831
|
|
|
$
|
656
|
|
|
|
$
|
1,782
|
|
|
$
|
1,684
|
|
|
|
|
|
|
|
|
|
|
|
Value Add Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
Interior -
Units
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
4,823
|
|
|
$
|
2,228
|
|
|
|
$
|
9,622
|
|
|
$
|
4,581
|
|
Non-Same-Store
|
|
—
|
|
|
—
|
|
|
|
8
|
|
|
—
|
|
Total Interior
Units
|
|
$
|
4,823
|
|
|
$
|
2,228
|
|
|
|
$
|
9,630
|
|
|
$
|
4,581
|
|
Expected Year 1
Annual ROI
|
|
16.0
|
%
|
|
17.3
|
%
|
|
|
16.3
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Common Areas and
Exteriors
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
2,386
|
|
|
$
|
1,890
|
|
|
|
$
|
4,762
|
|
|
$
|
5,686
|
|
Non-Same-Store
|
|
—
|
|
|
—
|
|
|
|
4
|
|
|
—
|
|
Total Common Areas
and Exteriors
|
|
$
|
2,386
|
|
|
$
|
1,890
|
|
|
|
$
|
4,766
|
|
|
$
|
5,686
|
|
Expected Year 1
Annual ROI
|
|
8.6
|
%
|
|
11.7
|
%
|
|
|
8.4
|
%
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Total Value-Add Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
7,209
|
|
|
$
|
4,118
|
|
|
|
$
|
14,384
|
|
|
$
|
10,267
|
|
Non-Same-Store
|
|
—
|
|
|
—
|
|
|
|
12
|
|
|
—
|
|
Total Portfolio
Value-Add
|
|
$
|
7,209
|
|
|
$
|
4,118
|
|
|
|
$
|
14,396
|
|
|
$
|
10,267
|
|
Expected Year 1
Annual ROI
|
|
13.6
|
%
|
|
14.7
|
%
|
|
|
13.7
|
%
|
|
14.1
|
%
|
CENTERSPACE
|
2021 Financial
Outlook
|
(in thousands,
except per share and per home amounts)
|
|
Centerspace revised
its outlook for 2021 in the table below.
|
|
Nine Months
Ended
|
|
2021 Previous
Outlook Range
|
|
2021 Revised
Outlook Range
|
|
September 30,
2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
YTD Actual
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
Same-store
growth
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
122,555
|
|
|
2.0
|
%
|
|
3.5
|
%
|
|
3.5
|
%
|
|
4.0
|
%
|
Controllable
expenses
|
$
|
31,182
|
|
|
3.0
|
%
|
|
5.0
|
%
|
|
3.8
|
%
|
|
4.3
|
%
|
Non-controllable
expenses
|
$
|
18,850
|
|
|
5.5
|
%
|
|
7.5
|
%
|
|
6.3
|
%
|
|
6.8
|
%
|
Total
Expenses
|
$
|
50,032
|
|
|
4.0
|
%
|
|
6.0
|
%
|
|
4.5
|
%
|
|
5.0
|
%
|
Same-store
NOI
|
$
|
72,523
|
|
|
0.5
|
%
|
|
2.0
|
%
|
|
3.0
|
%
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Components of
NOI
|
|
|
|
|
|
|
|
|
|
Same-store
NOI
|
$
|
72,523
|
|
|
$
|
95,100
|
|
|
$
|
96,300
|
|
|
$
|
97,300
|
|
|
$
|
97,800
|
|
Non-same-store
NOI
|
$
|
10,017
|
|
|
$
|
11,800
|
|
|
$
|
12,000
|
|
|
$
|
17,200
|
|
|
$
|
17,800
|
|
Other Commercial
NOI
|
$
|
1,542
|
|
|
$
|
1,800
|
|
|
$
|
1,900
|
|
|
$
|
2,100
|
|
|
$
|
2,200
|
|
Other Sold
NOI
|
$
|
1,284
|
|
|
$
|
1,200
|
|
|
$
|
1,200
|
|
|
$
|
1,200
|
|
|
$
|
1,200
|
|
Total NOI
|
$
|
85,366
|
|
|
$
|
109,900
|
|
|
$
|
111,400
|
|
|
$
|
117,800
|
|
|
$
|
119,000
|
|
|
|
|
|
|
|
|
|
|
|
Accretion (dilution)
from investments and capital market activity, excluding impact from
change in share count
|
$
|
—
|
|
|
4,350
|
|
|
4,500
|
|
|
30
|
|
|
40
|
|
Interest
expense
|
$
|
(21,622)
|
|
|
(28,700)
|
|
|
(28,500)
|
|
|
(29,100)
|
|
|
(28,900)
|
|
Preferred
dividends
|
$
|
(4,821)
|
|
|
(6,430)
|
|
|
(6,430)
|
|
|
(6,430)
|
|
|
(6,430)
|
|
|
|
|
|
|
|
|
|
|
|
Recurring income
and expenses
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
$
|
(4,104)
|
|
|
2,580
|
|
|
2,580
|
|
|
(3,330)
|
|
|
(3,330)
|
|
General and
administrative and property management
|
$
|
(18,037)
|
|
|
(23,500)
|
|
|
(23,000)
|
|
|
(25,100)
|
|
|
(24,800)
|
|
Casualty
losses
|
$
|
(64)
|
|
|
(1,245)
|
|
|
(755)
|
|
|
(600)
|
|
|
(400)
|
|
Non-real estate
depreciation and amortization
|
$
|
(265)
|
|
|
(280)
|
|
|
(280)
|
|
|
(320)
|
|
|
(330)
|
|
Non-controlling
interest
|
$
|
(58)
|
|
|
(70)
|
|
|
(65)
|
|
|
(70)
|
|
|
(65)
|
|
Total recurring income
and expenses
|
$
|
(22,528)
|
|
|
(22,515)
|
|
|
$
|
(21,520)
|
|
|
(29,420)
|
|
|
$
|
(28,925)
|
|
FFO
|
$
|
36,395
|
|
|
$
|
56,605
|
|
|
$
|
59,450
|
|
|
$
|
52,880
|
|
|
$
|
54,785
|
|
|
|
|
|
|
|
|
|
|
|
Non-core income
and expenses
|
|
|
|
|
|
|
|
|
|
Casualty
loss
|
$
|
—
|
|
|
$
|
280
|
|
|
$
|
120
|
|
|
$
|
280
|
|
|
$
|
120
|
|
Technology
implementation costs
|
1,485
|
|
|
1,800
|
|
|
1,600
|
|
|
2,000
|
|
|
1,900
|
|
Interest rate swap
termination and amortization
|
5,353
|
|
|
—
|
|
|
—
|
|
|
5,400
|
|
|
5,400
|
|
Other miscellaneous
items
|
193
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|
400
|
|
Total non-core income
and expenses
|
$
|
7,031
|
|
|
$
|
2,080
|
|
|
$
|
1,720
|
|
|
$
|
8,080
|
|
|
$
|
7,820
|
|
Core
FFO
|
$
|
43,426
|
|
|
$
|
58,685
|
|
|
$
|
61,170
|
|
|
$
|
60,960
|
|
|
$
|
62,605
|
|
|
|
|
|
|
|
|
|
|
|
EPS -
Diluted
|
$
|
0.12
|
|
|
$
|
0.58
|
|
|
$
|
0.76
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.24)
|
|
FFO per diluted
share
|
$
|
2.44
|
|
|
$
|
3.64
|
|
|
$
|
3.83
|
|
|
$
|
3.40
|
|
|
$
|
3.52
|
|
Core FFO per
diluted share
|
$
|
2.91
|
|
|
$
|
3.78
|
|
|
$
|
3.94
|
|
|
$
|
3.92
|
|
|
$
|
4.02
|
|
Weighted average
shares outstanding - diluted
|
14,917
|
|
|
15,541
|
|
|
15,541
|
|
|
15,562
|
|
|
15,570
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Assumptions
|
|
|
|
|
|
|
|
|
|
Same-store capital
expenditures (per home)
|
$
|
537
|
|
|
$
|
875
|
|
|
$
|
925
|
|
|
$
|
885
|
|
|
915
|
|
Value-add
expenditures
|
$
|
14,396
|
|
|
$
|
15,000
|
|
|
$
|
20,000
|
|
|
$
|
22,000
|
|
|
$
|
23,000
|
|
Investments
|
$
|
400,000
|
|
|
$
|
400,000
|
|
|
$
|
400,000
|
|
|
$
|
401,000
|
|
|
$
|
401,000
|
|
Dispositions
|
$
|
60,000
|
|
|
$
|
60,000
|
|
|
$
|
60,000
|
|
|
$
|
62,300
|
|
|
$
|
62,300
|
|
Equity issuance
proceeds
|
$
|
86,127
|
|
|
$
|
66,500
|
|
|
$
|
66,500
|
|
|
$
|
101,100
|
|
|
$
|
111,100
|
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to FFO and Core FFO
The following table presents reconciliations of Net income
(loss) available to common shareholders to FFO and Core FFO, which
are non-GAAP financial measures described in greater detail under
"Non-GAAP Financial Measures and Reconciliations." They should not
be considered as alternatives to net income or any other GAAP
measurement of performance, but rather should be considered as an
additional, supplemental measure. FFO and Core FFO also do not
represent cash generated from operating activities in accordance
with GAAP, nor are they indicative of funds available to fund all
cash needs, including the ability to service indebtedness or make
distributions to shareholders. The outlook and projections provided
below are based on current expectations and are
forward-looking.
|
|
|
Previous
Outlook
|
|
Revised
Outlook
|
|
Nine Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
September 30,
2021
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Actual
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net income (loss)
available to common shareholders
|
$
|
2,358
|
|
|
$
|
10,479
|
|
|
$
|
13,324
|
|
|
$
|
(4,180)
|
|
|
$
|
(2,270)
|
|
Noncontrolling
interests - Operating Partnership and Series E preferred
units
|
(1,013)
|
|
|
(1,456)
|
|
|
(1,456)
|
|
|
(6,518)
|
|
|
(6,518)
|
|
Depreciation and
amortization
|
61,747
|
|
|
74,157
|
|
|
74,157
|
|
|
90,452
|
|
|
90,452
|
|
Less depreciation -
non real estate
|
(265)
|
|
|
(280)
|
|
|
(280)
|
|
|
(320)
|
|
|
(330)
|
|
Less depreciation -
partially owned entities
|
(72)
|
|
|
(95)
|
|
|
(95)
|
|
|
(70)
|
|
|
(65)
|
|
(Gain) loss on sale
of real estate
|
(26,840)
|
|
|
(26,840)
|
|
|
(26,840)
|
|
|
(27,124)
|
|
|
(27,124)
|
|
Dividends to
preferred unitholders
|
480
|
|
|
640
|
|
|
640
|
|
|
640
|
|
|
640
|
|
FFO applicable to
common shares and Units
|
$
|
36,395
|
|
|
$
|
56,605
|
|
|
$
|
59,450
|
|
|
$
|
52,880
|
|
|
$
|
54,785
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
|
|
|
Casualty loss write
off
|
—
|
|
|
280
|
|
|
120
|
|
|
280
|
|
|
120
|
|
Technology
implementation costs
|
1,485
|
|
|
1,800
|
|
|
1,600
|
|
|
2,000
|
|
|
1,900
|
|
Interest rate swap
termination and amortization
|
5,353
|
|
|
—
|
|
|
—
|
|
|
5,400
|
|
|
5,400
|
|
Other miscellaneous
items
|
193
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|
400
|
|
Core FFO applicable
to common shares and Units
|
$
|
43,426
|
|
|
$
|
58,685
|
|
|
$
|
61,170
|
|
|
$
|
60,960
|
|
|
$
|
62,605
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
$
|
0.12
|
|
|
$
|
0.58
|
|
|
$
|
0.76
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.24)
|
|
FFO per share -
diluted
|
$
|
2.44
|
|
|
$
|
3.64
|
|
|
$
|
3.83
|
|
|
$
|
3.40
|
|
|
$
|
3.52
|
|
Core FFO per share -
diluted
|
$
|
2.91
|
|
|
$
|
3.78
|
|
|
$
|
3.94
|
|
|
$
|
3.92
|
|
|
$
|
4.02
|
|
Reconciliation of Operating Income to 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.
Centerspace believes that NOI is an important supplemental measure
of operating performance for real estate because it provides a
measure of operations that is unaffected by depreciation,
amortization, financing, property management overhead, casualty
losses, 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, net
income available for common shareholders, or cash flow from
operating activities as a measure of financial
performance.
|
|
|
Previous
Outlook
|
|
Revised
Outlook
|
|
Nine Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
September 30,
2021
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Actual
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Operating
income
|
$
|
5,518
|
|
|
$
|
10,998
|
|
|
$
|
13,488
|
|
|
$
|
1,648
|
|
|
$
|
3,348
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
General and
administrative and property management expenses
|
18,037
|
|
|
23,500
|
|
|
23,000
|
|
|
25,100
|
|
|
24,800
|
|
Casualty
loss
|
64
|
|
|
1,245
|
|
|
755
|
|
|
600
|
|
|
400
|
|
Depreciation and
amortization
|
61,747
|
|
|
74,157
|
|
|
74,157
|
|
|
90,452
|
|
|
90,452
|
|
Net operating
income
|
$
|
85,366
|
|
|
$
|
109,900
|
|
|
$
|
111,400
|
|
|
$
|
117,800
|
|
|
$
|
119,000
|
|
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SOURCE Centerspace