Centerspace (CSR) Q4 2024 earnings summary

Executive summary

• Achieved $4.88 core FFO per share for 2024, a 2.1% year-over-year increase, with sector-leading same-store NOI growth and strong occupancy rates, despite market headwinds and supply pressures.

• Reported net loss of $1.27 per diluted share for 2024, down from net income of $2.32 per diluted share in 2023, impacted by litigation settlement costs.

• Expanded portfolio in Denver and Fort Collins, improved balance sheet by redeeming Series C preferred shares, and raised over $112 million through ATM equity issuance.

• Increased quarterly dividend to $0.77 per share, with an annualized payout of $3.00 and a payout ratio of 61.5% of Core FFO.

• Maintained high resident satisfaction and retention, with a 56.6%–59.0% same-store resident retention rate and multiple industry awards.

Financial highlights

• Reported Q4 core FFO of $1.21 per diluted share, with full-year Core FFO per share at $4.88 and FFO per share at $4.49.

• Total revenue for 2024 was $260.98 million, nearly flat year-over-year.

• Same-store revenues rose 3.3% for the full year, with occupancy at 95.2%–95.5%, up year-over-year.

• Same-store NOI grew 3.7% year-over-year, driven by 3.3% revenue growth.

• Adjusted EBITDA for 2024 was $129.8 million.

Outlook and guidance

• 2025 core FFO guidance set at $4.98 per share midpoint, with a range of $4.86–$5.10, representing 2% growth over 2024 and 3.75% above initial 2024 guidance.

• 2025 FFO per diluted share guidance: $4.73–$4.97; net loss per diluted share guidance: $(0.71)–$(0.45).

• Anticipates same-store NOI growth of 1.25%–3.25%, revenue growth of 2.5%, and expense growth of 3% for 2025.

• Blended leasing spreads expected at 2.4%, with renewals leading new lease spreads.

• Planned same-store capital expenditures of $1,125–$1,175 per home and value-add spending of $16–$18 million.