MINNEAPOLIS, Feb. 20,
2024 /PRNewswire/ -- Centerspace (NYSE: CSR)
announced today its financial and operating results for the year
ended December 31, 2023. The tables
below show Net Income (Loss), Funds from Operations
("FFO")1, and Core FFO1, all on a per diluted
share basis, for the year ended December 31, 2023; Same-Store
Revenues, Expenses, and Net Operating Income
("NOI")1 over comparable periods; and Same-Store
Weighted Average Occupancy for the three months ended
December 31, 2023, September 30,
2023, and December 31, 2022 and the twelve months ended
December 31, 2023 and 2022.
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
Per
Share
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income (loss) per
share - diluted
|
|
$
(0.65)
|
|
$
(0.24)
|
|
$
2.32
|
|
$
(1.35)
|
FFO -
diluted(1)
|
|
1.11
|
|
1.16
|
|
4.27
|
|
4.32
|
Core FFO -
diluted(1)
|
|
1.22
|
|
1.17
|
|
4.78
|
|
4.43
|
|
|
Year-Over-Year
Comparison
|
|
Sequential
Comparison
|
|
YTD
Comparison
|
Same-Store
Results
|
|
4Q23 vs
4Q22
|
|
4Q23 vs.
3Q23
|
|
CY23 vs.
CY22
|
Revenues
|
|
3.9 %
|
|
0.5 %
|
|
7.2 %
|
Expenses
|
|
(1.2) %
|
|
(3.6) %
|
|
4.6 %
|
Net Operating Income
("NOI")(1)
|
|
7.6 %
|
|
3.4 %
|
|
9.0 %
|
|
|
Three months
ended
|
|
Twelve months
ended
|
Same-Store
Results
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Weighted Average
Occupancy
|
|
94.8 %
|
|
94.7 %
|
|
94.8 %
|
|
94.9 %
|
|
94.6 %
|
|
|
(1)
|
NOI, Funds from
Operations, and Core FFO 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" and "Non-GAAP Financial
Measures and Other Terms" in the Supplemental Financial and
Operating Data below.
|
Highlights for the Year Ended December
31, 2023
- Net Income was $2.32 per diluted
share for the year ended December 31,
2023, compared to Net Loss of $1.35 per diluted share for the year ended
December 31, 2022;
- Core FFO(1) increased to $4.78 or 7.9% per diluted share for the year
ended December 31, 2023, compared to
$4.43 for the year ended December 31, 2022;
- Operating income increased to $84.5
million for the year ended December
31, 2023 compared to $13.9
million for the prior year;
- Same-store year-over-year NOI(1) grew to 9.0% driven
by same-store revenue growth of 7.2%;
- Continued to grow Colorado
portfolio through acquisition of an apartment community in
Loveland, Colorado consisting of
303 homes for an aggregate purchase price of $94.5 million;
- Thirteen communities in Minnesota, Nebraska, and North
Dakota were sold for an aggregate sales price of
$226.8 million. The sale included
four communities in the St. Cloud
market comprising 692 homes, two communities in the Omaha-Lincoln
market comprising 498 homes, three communities in the Minneapolis-St. Paul market comprising 377
homes, and four communities in the Minot market comprising 712
homes and related commercial space.
- 216,000 common shares repurchased for total consideration of
$11.5 million and an average of
$53.44 per share.
Balance Sheet
At December 31, 2023, Centerspace had $234.6 million of total liquidity on its balance
sheet, including $226.0 million
available on its lines of credit.
Subsequent Events
Subsequent to December 31, 2023, Centerspace entered into
definitive purchase and sale agreements for two communities with
expected gross proceeds of $18.9 million. The Company believes the
sales will close in the first quarter. The closing of pending
transactions is subject to certain conditions and restrictions;
therefore, there can be no assurance that the transactions will be
consummated or that the final terms will not differ in material
respects.
Subsequent to December 31, 2023, Centerspace repurchased
87,722 common shares for total consideration of $4.7 million and an average price of $53.62 per share.
Dividend Distributions
Centerspace's Board of Trustees announced a quarterly
distribution of $0.75 per share/unit,
payable on April 8, 2024, to common
shareholders and unitholders of record at the close of business on
March 28, 2024. The announced
distribution represents a $0.02
increase over the prior distribution.
The Board of Trustees also declared a distribution of
$0.4140625 per share on the 6.625%
Series C Cumulative Redeemable Preferred Shares (NYSE: CSR PRC),
payable on March 28, 2024, to holders
of record at the close of business on March
15, 2024. Series C preferred share distributions are
cumulative and payable quarterly in arrears at an annual rate of
$1.65625 per share.
2024 Financial Outlook
Centerspace is providing the following guidance for its 2024
performance.
2024 Financial
Outlook
|
|
|
|
Range for
2024
|
|
2023
Actual
|
|
Low
|
|
High
|
Net income (loss) per
Share - diluted
|
$
2.32
|
|
$
(1.31)
|
|
$
(0.99)
|
FFO per Share -
diluted
|
$
4.27
|
|
$
4.54
|
|
$
4.80
|
Core FFO per Share -
diluted
|
$
4.78
|
|
$
4.68
|
|
$
4.92
|
Additional assumptions:
- Same-store capital expenditures of $1,075 per home to $1,150 per home
- Value-add expenditures of $25.0
million to $27.0 million
- Proceeds from potential dispositions of $18.8 million to $19.0
million
FFO and Core FFO are non-GAAP financial measures. For more
information on their usage and presentation, and a reconciliation
to the most directly comparable GAAP measures, please refer to
"2024 Financial Outlook" in the Supplemental Financial and
Operating Data below.
Earnings Call
Live webcast and
replay: https://www.ir.centerspacehomes.com
|
|
|
|
Live Conference
Call
|
|
Conference Call
Replay
|
Wednesday, February 21,
2024 at 10:00 AM ET
|
|
Replay available until
March 6, 2024
|
USA Toll Free
Number
|
1-833-470-1428
|
|
USA Toll Free
Number
|
1-866-813-9403
|
International Toll Free
Number
|
1-929-526-1599
|
|
International Toll Free
Number
|
1-929-458-6194
|
Canada Toll Free
Number
|
1-833-950-0062
|
|
Canada Toll Free
Number
|
1-226-828-7578
|
Conference
Number
|
373306
|
|
Conference
Number
|
297696
|
Supplemental Information
Supplemental Operating and Financial Data for the year ended
December 31, 2023, is available in the Investors section on
Centerspace's website at https://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 December 31, 2023,
Centerspace owned 72 apartment communities consisting of 13,088
homes located in Colorado,
Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
In 2022, Centerspace was named the National Apartment Association's
Leading Organization in Diversity, Equity, and Inclusion.. For more
information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release are based on the
Company's current expectations and assumptions, and are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. 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. Any statements
contained herein that are not statements of historical fact should
be deemed forward-looking statements. 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 and
uncertainties are detailed from time to time in filings with the
SEC, including the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Risk Factors"
contained in the Company's Annual Report on Form 10-K, in quarterly
reports on Form 10-Q, and in other reports the Company files with
the SEC from time to time. 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
E-mail: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 701-837-7104
E-mail: kweber@centerspacehomes.com
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SOURCE Centerspace