#USA #Minneapolis #financial results #Centerspace #Core FFO

Centerspace's Financial Overview for Q1 2025

In a recent announcement, Centerspace (NYSE: CSR) revealed its financial and operational results for the first quarter ended March 31, 2025. This report marks an important point for the company as it aims to affirm its guidance for core Funds from Operations (FFO) per share while showcasing growth in several key performance indicators.

Financial Highlights

During Q1 2025, Centerspace reported a net loss of $0.22 per diluted share, reflecting an improvement from a net loss of $0.37 per share for the same period last year. Notably, the Funds from Operations (FFO) showed a slight increase to $1.17 per diluted share, compared to $1.16 in Q1 2024. Core FFO also saw a minor decrease of 1.6%, landing at $1.21 per diluted share, as rising property taxes impacted the financial results.

Revenue Growth

The company reported total revenues amounting to $67.1 million, which is an increase of $2.6 million or 4.0% compared to the $64.5 million recorded in the first quarter of the previous year. This growth is largely attributed to the 3.5% increase in same-store revenues, amplifying the company's ability to generate income from its existing properties.

Operational Metrics

Centerspace also provided updates on critical operational metrics:

• - The weighted average occupancy rate rose to 95.8%, compared to 94.6% in Q1 2024.
• - New lease rate growth showed a slight decline of (1.1%), while renewal lease rate growth improved to 3.5%.
• - Retention rates faced a modest drop, landing at 49.2%, but the overall increases in occupancy suggest a strengthening market position.

Adjusted Outlook for 2025

Centerspace also updated its financial outlook for 2025, keeping forecasts for net loss per share and same-store revenue growth within previously established ranges. The latest projections indicate that total expenses might range between 2.00% and 4.00% for same-store properties.

Balance Sheet Integrity

At the close of Q1, Centerspace's balance sheet reflected a healthy liquidity position with $223.2 million in total liquidity, consisting of $211.3 million available under lines of credit and $11.9 million in cash. This robust financial foundation will support the company's operational and strategic initiatives throughout the year.

Upcoming Engagements

Looking ahead, Centerspace is set to participate in several industry conferences, including the Wells Fargo Real Estate Securities Conference on May 6-7, 2025, and the BMO North American Real Estate Conference on May 13, 2025. Additionally, the company prepares for the Nareit REITweek 2025 Investor Conference from June 2-4, 2025, demonstrating its commitment to engaging with investors and stakeholders.

Conclusion

Overall, the results from Centerspace reflect a company on a path of recovery and improvement, marked by strategic revenue growth and efforts to enhance its operational metrics. As the market continues to evolve, Centerspace's focus on robust financial management and community engagement positions it favorably in the competitive landscape of property management and investments. For further details, interested parties can visit Centerspace's official website.