Slide 1: Investor Presentation May 2022
Investor Presentation May 2022
Slide 2: Safe Harbor Statement and Legal Disclosure
centerspacehomes.com 2 SAFE HARBOR STATEMENT AND LEGAL DISCLOSURE Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors tha
Slide 3: Strong Operating Results Driven by Consistent Occupancy and Accelerating Rent Growth
centerspacehomes.com 3 Strong Operating Results Driven by Consistent Occupancy and Accelerating Rent Growth ▪ Same-store lease over lease growth was 6.9% in Q1 compared to 5.8% in Q4 2021 and 0.7% in Q1 2021 ▪ Same-store renewal lease growth accelerated to 9.6% in Q1 compared to 7.8% in Q4 2021 and
Slide 4: Company Snapshot: Focused on Growth in Multifamily
centerspacehomes.com 4 Differentiated Markets Unique Midwest/Mountain West footprint Internal Growth Opportunity Enhanced operating platform Value-Add Opportunity Deep value-add pipeline Balance Sheet Flexibility Strong balance sheet with sufficient liquidity to capitalize on future opportunities Ex
Slide 5: Portfolio Overview: Differentiated Portfolio
centerspacehomes.com 5 Region Homes Q1 Avg. Rev per Occ. Home(1) Denver, CO 1,888 $2,002 Minneapolis, MN (2) 5,293 $1,487 North Dakota 2,421 $1,185 Omaha, NE 1,370 $1,118 Rochester, MN 1,121 $1,601 St. Cloud, MN 1,524 $1,175 Other Mountain West(3) 1,221 $1,264 Total / Average 14,838 $1,428 (4) Multi
Slide 6: 2022 Financial Outlook
centerspacehomes.com 6 2022 FINANCIAL OUTLOOK F u l l Y e a r O u t l o o k Full Year 2021 YTD Actual Low High Mid-Point Earnings per Share $(0.47) $(0.68) $(0.37) $(0.11) $(0.24) Revenue $179,348 $46,891 7.00% 9.00% 8.00% Total Expenses $72,010 $19,215 5.50% 7.50% 6.50% NOI $107,338 $27,676 8.00% 1
Slide 7: Leasing Update: Leasing Trends Accelerate into Leasing Season
centerspacehomes.com 7 Occupancy Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 April 2022 94.7% 94.9% 94.3% 93.4% 93.9% 95.3% 0.7% 10.0% 10.8% 10.8% 6.9% 11.5% 4.0% 5.6% 7.2% 7.8% 9.6% 9.5% 2.0% 7.5% 9.0% 6.4% 7.9% 10.8% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Apr-22 New Renewal Blended LEASING UPDATE L e
Slide 8: MSP and KMS: September Acquisition of 2,364 Homes in Minneapolis
centerspacehomes.com 8 MSP and KMS T h e S e p t e m b e r 2 0 2 1 A c q u i s i t i o n o f 2 , 3 6 4 H o m e s i n M i n n e a p o l i s B r o u g h t O p p o r t u n i t i e s t o R e a l i z e S t r o n g M a r k e t R e n t G r o w t h -1.0% 4.9% 7.1% -1.3% 6.6% 15.5% Q4 2021 Q1 2022 Apr Same S
Slide 9: Strong Operating Platform: Margins Continue to Improve
centerspacehomes.com 9 Strong Operating Platform RISE BY 5 M a r g i n s C o n t i n u e t o I m p r o v e Same-Store communities continue to see NOI margin growth Buying Efficient Communities Communities acquired since 2018 have a weighted average margin of 57.2% Selling Inefficient Communities Com
Slide 10: Value-Add Opportunity: Enhancing Portfolio Through Renovation Projects
centerspacehomes.com 10 Highlights VALUE-ADD OPPORTUNITY E n h a n c i n g P o r t f o l i o T h r o u g h R e n o v a t i o n P r o j e c t s ▪ Value-add opportunities to drive maximum revenue across the portfolio feature unit renovations, common areas, and adding amenities including clubhouses, fi
Slide 11: Balance Sheet Positioned for Growth
centerspacehomes.com 11 $22,254 $42,305 $77,907 $53,125 $51,849 $116,000 $103,000 $85,000 $198,000 $25,000 $78,850 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Common Equity 64% Secured Debt 19% Unsecured Debt 13% Series C Preferred 3%Series D Preferred 1% Debt Summary Amount % o
Slide 12: Improvement in Portfolio
centerspacehomes.com 12 IMPROVEMENT IN PORTFOLIO Multifamily portfolio quality has improved since 2017 Multifamily portfolio quality has improved since 2017 through thoughtful capital allocation and creative deal structuring I m p r o v i n g P o r t f o l i o M e t r i c s t h r o u g h P o r t f o
Slide 13: Recent Acquisitions
centerspacehomes.com 13 RECENT ACQUISITIONS F o c u s o n E x p a n d i n g o u r P o r t f o l i o i n T a r g e t M a r k e t s o f M i n n e a p o l i s a n d D e n v e r • A 130-home community built in 2021 • Conveniently located adjacent to Lake Nokomis and features walkability and connectivity
Slide 14: Minneapolis Market
centerspacehomes.com 14 MINNEAPOLIS MARKET C O M M U N I T I E S : 3 2 / H O M E S : 5 , 2 9 3 ▪ 16th largest MSA in the nation ▪ 2.5% unemployment rate (1) ▪ #6 on U.S. News best places to live in the U.S. ▪ $83,698 median household income ▪ 24% projected population increase by 2035 ▪ 442,000 jobs
Slide 15: Denver Market
centerspacehomes.com 15 DENVER MARKET C O M M U N I T I E S : 6 / H O M E S : 1 , 8 8 8 ▪ 19th largest MSA in the nation ▪ 3.6% unemployment rate (1) ▪ #2 on U.S. News best places to live in the U.S. ▪ $83,289 median household income ▪ 6th fast growing state between 2010 and 2020 ▪ 804,100 jobs to b
Slide 16: Market Overview: Secondary Markets See Strong Fundamentals
centerspacehomes.com 16 MARKET OVERVIEW S e c o n d a r y M a r k e t s S e e S t r o n g F u n d a m e n t a l s Region % of NOI(1) Population Market Units(2) Median HH Income Unemployment Rate(3) 3-Month Avg Job Growth(3) Median Home Value T12 Deliveries(4) Market Vacancy(5) Market Rent Growth(5)
Slide 17: Best-in-Class Governance
centerspacehomes.com 17 Jeffrey P. Caira Since 2015 Michael T. Dance Since 2016 Mark O. Decker Jr. Since 2017 Emily Nagle Green Since 2018 Linda J. Hall Since 2011 John A. Schissel Since 2016 Mary J. Twinem Since 2018 BEST-IN-CLASS GOVERNANCE D i s c i p l i n e d , F o c u s e d , D i v e r s e Exe
Slide 18: ESG Highlights
centerspacehomes.com 18 Value-add opportunities across the portfolio implement ESG initiatives to further green in our portfolio by conserving water, reduce energy waste and implement environmentally friendly alternatives when able. ESG considerations include: • LED lighting • ENERGY Star rated appl
Slide 19: Investment Highlights: Best-In-Class Governance
centerspacehomes.com 19 INVESTMENT HIGHLIGHTS Best-In-Class Governance
Slide 20: Appendix
centerspacehomes.com 20 APPENDIX
Slide 21: Reconciliation to Non-GAAP Measures
centerspacehomes.com 21 RECONCILIATION TO NON-GAAP MEASURES Reconciliation of Net Income (Loss) Available to Common Shareholders to Funds From Operations and Core Funds From Operations We use the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”).
Slide 22: Reconciliation to Non-GAAP Measures
centerspacehomes.com 22 RECONCILIATION TO NON-GAAP MEASURES
Slide 23: Reconciliation to Non-GAAP Measures: Adjusted EBITDA
centerspacehomes.com 23 RECONCILIATION TO NON-GAAP MEASURES Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted EBITDA Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of re