MINNEAPOLIS, Oct. 30,
2023 /PRNewswire/ -- Centerspace (NYSE: CSR)
announced today its financial and operating results for the three
and nine months ended September 30, 2023. The tables below
show Net Income (Loss), Funds from Operations ("FFO")1,
and Core FFO1, all on a per common share basis, for the
three and nine months ended September 30, 2023; Same-Store
Revenues, Expenses, and Net Operating Income (Loss)
("NOI")1 over comparable periods; and
Same-Store1 Weighted-Average Occupancy for each of the
three months ended September 30, 2023, June 30, 2023, and September 30, 2022.
|
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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Per Common
Share
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income (loss) -
diluted
|
|
$
0.41
|
|
$
(0.14)
|
|
$
2.96
|
|
$
(1.11)
|
|
FFO -
diluted(1)
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|
$
1.15
|
|
$
1.13
|
|
$
3.15
|
|
$
3.16
|
|
Core FFO -
diluted(1)
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|
$
1.20
|
|
$
1.15
|
|
$
3.56
|
|
$
3.25
|
|
|
Year-Over-Year
Comparison
|
|
Sequential
Comparison
|
|
YTD
Comparison
|
|
Same-Store
Results(2)
|
|
Q3 2023 vs. Q3
2022
|
|
Q3 2023 vs. Q2
2023
|
|
2023 vs.
2022
|
|
Revenues
|
|
5.7 %
|
|
0.6 %
|
|
8.3 %
|
|
Expenses
|
|
6.1 %
|
|
7.4 %
|
|
6.6 %
|
|
NOI(1)
|
|
5.4 %
|
|
(3.7) %
|
|
9.5 %
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
Same-Store
Results(2)
|
|
September 30,
2023
|
|
June 30,
2023
|
|
September 30,
2022
|
|
September 30,
2023
|
|
September 30,
2022
|
|
Weighted Average
Occupancy
|
|
94.7 %
|
|
95.2 %
|
|
94.5 %
|
|
94.9 %
|
|
94.5 %
|
|
(1)
|
NOI, FFO, Core FFO, and
same-store results are non-GAAP financial measures. For more
information on their usage and presentation, and a reconciliation
to the most directly comparable GAAP measures, refer to "Non-GAAP
Financial Measures and Reconciliations" in supplemental and
financial operating data within.
|
|
(2)
|
Same-store results are
updated for disposition activity. Refer to "Non-GAAP Financial
Measures and Reconciliations" in supplemental and financial
operating data within.
|
Highlights
- During the three months ended September
30, 2023, Centerspace successfully executed the sale of four
non-core apartment communities and associated commercial space in
Minot, North Dakota for an
aggregate sales price of $82.5
million, resulting in a gain on sale of $11.3 million;
- Net income increased to $0.41 per
diluted share for the third quarter of 2023, compared to Net loss
of $0.14 per diluted share for the
same period of 2022;
- Core FFO per diluted share increased 4.3% to $1.20 for the three months ended September 30, 2023, compared to $1.15 for the three months ended September 30, 2022;
- Same-store revenues increased by 5.7% for the third quarter of
2023 compared to the third quarter of 2022, driving a 5.4% increase
in NOI compared to the same period of the prior year; and
- Narrowed the 2023 financial outlook ranges for net income per
diluted share and FFO per diluted share and raised the mid-point
for Core FFO per diluted share. Refer to page S-18 in the
supplemental and financial operating date within for additional
detail.
Balance Sheet
At the end of the third quarter, Centerspace had $285.7 million of total liquidity on its balance
sheet, consisting of $256.0 million
available under the lines of credit and cash and cash equivalents
of $29.7 million.
As of September 30, 2023, the Company had no outstanding
variable rate debt and only $30.6
million in debt maturing through 2025.
Subsequent Events
On October 11, 2023, the Company
acquired Lake Vista Apartment Homes in Loveland, Colorado, for an aggregate purchase
price of $94.5 million. The
acquisition was financed through the assumption of $52.7 million in mortgage debt and cash.
Revised 2023 Financial Outlook
Centerspace revised its 2023 financial outlook. For additional
information, see S-18 of the Supplemental Financial and Operating
Data for the quarter ended September 30, 2023 included at the
end of this release. These ranges should be considered in their
entirety. The table below reflects the revised outlook.
|
Previous Outlook for
2023
|
Updated Outlook for
2023
|
|
Low
|
High
|
Low
|
High
|
|
Net income per Share –
diluted
|
$
2.84
|
$
3.64
|
$
2.90
|
$
3.56
|
|
Same-Store
Revenue
|
6.50 %
|
8.00 %
|
7.00 %
|
7.50 %
|
|
Same-Store
Expenses
|
4.00 %
|
5.25 %
|
4.00 %
|
4.50 %
|
|
Same-Store
NOI
|
8.50 %
|
10.00 %
|
9.00 %
|
9.50 %
|
|
FFO per Share –
diluted
|
$
4.14
|
$
4.35
|
$
4.20
|
$
4.27
|
|
Core FFO per Share –
diluted
|
$
4.55
|
$
4.75
|
$
4.63
|
$
4.71
|
Additional assumptions:
- Same-store capital expenditures of $1,000 per home to $1,050 per home
- Value-add expenditures of $30.0
million to $31.5 million
- Acquisitions of $94.5
million
- Proceeds from dispositions of $226.8
million
Earnings Call
|
Live webcast and
replay: https://ir.centerspacehomes.com
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|
|
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Live Conference
Call
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Conference Call
Replay
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Tuesday, October 31,
2023, at 10:00 AM ET
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Replay available until
November 14, 2023
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USA Toll Free
Number
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1-833-470-1428
|
|
USA Toll Free
Number
|
1-929-458-6194
|
|
International Toll Free
Number
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1-929-526-1599
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International Toll Free
Number
|
1-929-458-6194
|
|
Canada Toll Free
Number
|
1-833-950-0062
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Canada Toll Free
Number
|
1-226-828-7575
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|
Conference
Number
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775561
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Conference
Number
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468138
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Supplemental Information
Supplemental Operating and Financial Data for the quarter ended
September 30, 2023 included herein ("Supplemental
Information"), is available in the Investors section on
Centerspace's website at www.centerspacehomes.com or by calling
Investor Relations at 701-837-7104. Non-GAAP financial measures and
other capitalized terms, as used in this earnings release, are
defined and reconciled in the Supplemental Financial and Operating
Data, which accompanies this earnings release.
About Centerspace
Centerspace is an owner and operator of apartment communities
committed to providing great homes by focusing on integrity and
serving others. Founded in 1970, as of September 30, 2023,
Centerspace owned interests in 71 apartment communities
consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
Centerspace was named a Top Workplace for the fourth consecutive
year in 2023 by the Minneapolis Star Tribune. For more
information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the accompanying
Supplemental Operating and Financial Data are based on the
company's current expectations and assumptions, and are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements do not discuss historical fact, but instead include
statements related to expectations, projections, intentions or
other items related to the future. Forward-looking statements are
typically identified by the use of terms such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "will," "assumes," "may," "projects," "outlook,"
"future," and variations of such words and similar expressions.
These forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual results,
performance, or achievements to be materially different from the
results of operations, financial conditions, or plans expressed or
implied by the forward-looking statements. Although the company
believes the expectations reflected in its forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that the expectations will be achieved. As a result,
reliance should not be placed on these forward-looking statements,
as these statements are subject to known and unknown risks,
uncertainties, and other factors beyond the company's control and
could differ materially from actual results and performance. Such
risks, uncertainties, and other factors that might cause such
differences include, but are not limited to those risks and
uncertainties detailed from time to time in Centerspace's filings
with the Securities and Exchange Commission, including the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" and "Risk Factors" contained in its Annual
Report on Form 10-K for the year ended December 31, 2022, in
its subsequent quarterly reports on Form 10-Q, and in other
public reports. The company assumes no obligation to update or
supplement forward-looking statements that become untrue due to
subsequent events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 701-837-7104
Email: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 701-837-7104
Email: kweber@centerspacehomes.com
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SOURCE Centerspace