#USA #Minneapolis #Centerspace #Financial Outlook #Q1 2026

Centerspace Announces First Quarter 2026 Results

Centerspace (NYSE: CSR) has officially shared its financial results for the first quarter ending on March 31, 2026. The report detailed various metrics, including net loss, Funds from Operations (FFO), and core FFO on a per diluted share basis, alongside a comparison of key performance indicators from previous quarters.

Financial Overview

During Q1 2026, Centerspace reported a net loss of $0.77 per diluted share. This marks a significant decline compared to a loss of $0.22 for the same quarter last year. The company experienced a decline in revenue, falling by $2.0 million, or 3.0%, to $65.1 million, down from $67.1 million. This decrease was largely attributed to the sale of 12 apartment communities in 2025.

Despite the decrease in revenue, Centerspace's same-store revenues remained stable. However, property operating expenses saw an uptick, leading to a 1.1% decrease in same-store Net Operating Income (NOI) compared to the same period last year.

Here is a snapshot of selected financial metrics:

• - Net Loss (Diluted): 2026 - $(0.77), 2025 - $(0.22)
• - FFO (Diluted): 2026 - $1.07, 2025 - $1.17
• - Core FFO (Diluted): 2026 - $1.12, 2025 - $1.21

Operational Insights

In terms of occupancy, Centerspace reported a slight improvement with a weighted average occupancy rate of 95.4%, up from 95.3% in the previous quarter, but down from 95.8% a year earlier. Effective new lease rate growth saw a downturn of 2.1% while effective renewal lease rate growth remained relatively robust at 3.1%. The retention rate for residents increased to 54.1%, which is a positive trend compared to the prior year.

The year-on-year comparisons reflect several strategic choices made by Centerspace, particularly the divestment of apartment communities that played a role in the shifting financial landscape.

Balance Sheet and Liquidity

By the end of Q1 2026, Centerspace had liquidity of $267.1 million on its balance sheet, comprising $259.6 million in available lines of credit and $7.6 million in cash and cash equivalents. This strong liquidity position aids in addressing operational expenses and pursuing future growth initiatives.

Updated Financial Outlook

Centerspace has revised its financial outlook for 2026. The adjusted numbers include:

• - Net Loss per Share – diluted: Updated to range from $(0.95) to $(0.66).
• - Same-Store Revenue: Expected to remain between 0.00% and 1.75%.
• - Same-Store NOI: Projected to range from (0.50)% to 2.00%.
• - Core FFO per Share – diluted: Expected to be between $4.81 to $5.05.

These financial outlook metrics reflect Centerspace's strategy and market conditions for the upcoming quarters, as the company seeks to balance operational efficiency with growth potential.

Strategic Review Update

In 2025, Centerspace's Board embarked on a proactive evaluation of strategic alternatives, engaging in discussions with legal and financial advisors. The ongoing review process aims to refine its strategic direction, and the Board anticipates providing further updates to shareholders around the time of the upcoming second-quarter earnings release.

Conclusion and Future Steps

In conclusion, while Centerspace faced challenges in Q1 2026, it continues to see potential in operational metrics and maintains a solid liquidity position. The management is scheduled to hold a conference call on May 5, 2026, at 10:00 AM ET to further discuss these results. Interested parties can access the call through the live webcast or by dialing in using provided details.

For more detailed information and to follow up on Centerspace's progress, stakeholders are encouraged to stay tuned for additional updates and insights from the upcoming earnings report.