Centerspace (CSR) Q1 2025 earnings summary

Executive summary

• Revenue rose 4.0% year-over-year to $67.1 million in Q1 2025, with same-store revenues up 3.5% and same-store NOI up 2.1%.

• Net loss per diluted share improved to $0.22 from $0.37 year-over-year, reflecting higher NOI and lower casualty losses.

• Core FFO per diluted share was $1.21, down 1.6% due to a one-time property tax refund in the prior year.

• Weighted average occupancy for same-store communities increased to 95.8% from 94.6% year-over-year.

• No acquisitions or dispositions occurred during the quarter; portfolio consisted of 71 apartment communities with 13,012 homes.

Financial highlights

• Same-store revenue increased 3.5% and same-store NOI rose 2.1% year-over-year.

• Net operating income (NOI) grew 2.3% to $40.4 million.

• Property operating expenses increased 6.6% to $26.7 million, mainly due to higher property taxes.

• Core FFO per share was $1.21 for Q1 2025; FFO per diluted share was $1.17.

• Total liquidity at quarter-end was $223.2 million, including $211.3 million in credit availability and $11.9 million in cash.

Outlook and guidance

• 2025 Core FFO per diluted share guidance reaffirmed at $4.86–$5.10; same-store NOI growth expected at 1.25%–3.25%.

• Expect occupancy to average 95% for the year, with current levels at 96% as of April.

• Non-controllable spend midpoint increased by 2.25% due to new property tax assessments.

• Recurring capital expenditures projected at $1,125–$1,175 per home; value-add expenditures at $16–$18 million.

• Anticipate new lease rates to peak in May/June and taper off seasonally by year-end.