Centerspace (CSR) Q2 2024 earnings summary

Executive summary

• Q2 2024 core FFO per diluted share was $1.27, with same-store revenue up 3.4% and NOI up 2.4% year-over-year, driven by stable revenue growth and disciplined expense management.

• Q2 2024 revenue increased 0.4% year-over-year to $65.0 million, and net loss available to common shareholders improved to $2.9 million from $3.5 million in Q2 2023.

• Weighted average occupancy for same-store properties was 95.3% in Q2 2024, up from 95.2% in Q2 2023.

• Raised $37 million through ATM equity issuance at an average price of $69.60 per share, used to reduce leverage.

• Recast/amended line of credit, extending maturity to 2028, and welcomed a new board member.

Financial highlights

• Q2 2024 revenue was $65.0 million (+0.4% YoY); six-month revenue was $129.5 million.

• Core FFO per share and unit (diluted) was $1.27 in Q2 2024, compared to $1.28 in Q2 2023.

• NOI for Q2 2024 was $39.9 million, up 0.3% year-over-year.

• Property operating expenses increased 5.1% year-over-year, mainly due to higher repairs, maintenance, and insurance.

• Disposed two apartment communities for $19.0 million in Q1 2024, resulting in a $577,000 loss.

Outlook and guidance

• 2024 Core FFO per diluted share guidance raised to $4.78–$4.92, with midpoint up to $4.85.

• Same-store NOI growth midpoint increased to 3.5% for 2024; expected range is 3.0%–4.0%.

• Lowered projected same-store total expense growth to 4.1% for the year.

• No additional acquisitions, dispositions, or borrowings included in current guidance.

• Net loss per diluted share guidance improved to $(1.21)–$(1.01) for 2024.