Slide 1: Investor Presentation May 2024
INVESTOR PRESENTATION May 2024 Lake Vista – Fort Collins, CO
Slide 2: Safe Harbor Statement & Legal Disclosure
centerspacehom es. com 2 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 that may cause actual results to differ mate
Slide 3: Mission & Vision
OUR MISSION To provide a great home— for our residents, our team members, and our investors. OUR VISION To be the premier provider of apartment homes in vibrant communities by focusing on integrity and serving others. 71 France – Edina, MN MISSION & VISION 3centerspacehom es. com
Slide 4: Company Overview
centerspacehom es. com 4 1. As of March 31, 2024 2. See page 11 for breakdown Differentiated Multifamily Market Exposure 12,883(1) Apartments owned and operated NYSE: CSR $2.1 Billion(2) Total capitalizationKey Indices S&P SmallCap 600 MSCI US REIT Russell 2000 RISE is Centerspace’s commitment to Re
Slide 5: Cash Flow Growth Focus
TO EXECUTE THIS, WE FOCUS ON: CENTERSPACE is guided by the north star of increasing distributable cash flow Exceptional customer experience Diverse talent to enable a culture of engagement Enhancing efficiencies by scaling the business Managing the balance sheet to maximize financial flexibility Inv
Slide 6: Results – 2024 Financial Outlook
centerspacehom es. com 6 2023 -------------------2024 Guidance Range-------------------- Actual Low Mid-Point High Revenues 7.2% 3.0% 3.8% 4.5% Expenses 4.6% 4.0% 4.8% 5.5% NOI 9.0% 2.5% 3.3% 4.0% Net Income $2.32 ($1.34) ($1.22) ($1.10) FFO $4.27 $4.57 $4.67 $4.76 Core FFO $4.78 $4.74 $4.83 $4.92 S
Slide 7: Results – Favorable Growth Profile
centerspacehom es. com RESULTS – FAVORABLE GROWTH PROFILE 7Note: Data is based on midpoint of initial guidance ranges provided by noted peers. SMID Cap Apt group includes ELME, IRT, an d NXRT. Non-coastal/Sunbelt group includes CPT, ELME, IRT, MAA, and NXRT. All multifamily group includes AVB, CPT,
Slide 8: Results – Leasing Spreads Accelerating into Leasing Season
centerspacehom es. com 8 Note: Data represents 2024 Same Store pool. QTD leasing spreads are through April 29, 2024 RESULTS – LEASING SPREADS ACCELERATING INTO LEASING SEASON Oxbo – St. Paul, MN 4.7% 2.0% -3.2% 0.0% 3.5% 4.7% 4.7% 3.6% 3.4% 3.3% 4.7% 3.6% 0.3% 1.5% 3.4% Q2 2023 Q3 2023 Q4 2023 Q1 20
Slide 9: Results – Portfolio Stability & Resiliency
centerspacehom es. com 9 -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 QTD SAME STORE LEASING Avg Rent Occupied New % Change Renewal % Change Blended % Change Q2 2023
Slide 10: Results – NOI Composition & Rental Rate Growth
centerspacehom es. com 10 -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2023 vs 2022 Year-to-Date Rental Rate Growth New Lease Rents Renewal Rents Market % of Total NOI Minneapolis, MN 33.8% Denver, CO 22.7% North Dakota 11.3% Rochester, MN 9.4% Other Mountain West 8.8% Omaha, NE 6.2% St. Cloud, MN 5.0
Slide 11: Diversified Permanent Capital Base
centerspacehom es. com 11 Common Equity 49% Secured Debt 29% Unsecured Debt 16% Series C Preferred 5% Series D Preferred 1%*Share price $57.14 as of 3/30/2024 Diversified Permanent Capital Base $2.1B Total Capitalization $929M Total Debt $1,018M Common Equity $110M Preferred Equity % of Total Maturi
Slide 12: Innovation – Portfolio Improvement Since 2017
centerspacehom es. com 12 ▪ Acquired 34 communities for $1.5 billion through unique deal structuring which has provided a competitive advantage in transaction market ▪ $599 million of dispositions as we have reduced our exposure to less efficient communities in lower-growth markets 2017 Today(1) Com
Slide 13: Innovation – Recent Capital Recycling
centerspacehom es. com SEPTEMBER 2023 & FEBRUARY 2024 DISPOSITIONS MINOT, ND & MINNEAPOLIS, MN Communities 6 Homes 917+ 50k SF office Avg. Monthly Rent/Home $1,072 Homes/Community 153 Avg Community Age 30 Years NOI Margin 52.1% OCTOBER 2023 ACQUISITION LAKE VISTA APARTMENT HOMES, FORT COLLINS, CO Co
Slide 14: Innovation – Approach to Investments & Dispositions
centerspacehom es. com DEMOGRAPHIC AND ECONOMIC CONSIDERATIONS MULTIFAMILY FUNDAMENTALS CONSIDERATIONS OTHER CONSIDERATIONS Population Trends Population Characteristics Labor Force Health Employment Economic Composition Rents Occupancy Market Size and Liquidity Supply and Demand General Housing Envi
Slide 15: Innovation – Geographic Differentiation
centerspacehom es. com 15Regency Park – St Cloud, MN GEOGRAPHIC FOCUS (% OF UNITS) Source: SNL, March 11, 2024, adjusted for CSR dispositions INNOVATION – GEOGRAPHIC DIFFERENTIATION PUBLIC MULTIFAMILY REIT MARKET OVERVIEW 24% 3% 5% 8% 5% 76% 21% 6% 43% 54% 4% 100% 27% 14% 31% 24% 7% 5% 86% 34% 71% 2
Slide 16: Innovation – Competitive Advantage in Minneapolis
centerspacehom es. com 16 ▪ 27 CSR communities, 4,711 homes, scaled portfolio with opportunities in operating partnership unit transactions, mezzanine financing and development participation, and capital recycling ▪ 16th largest MSA, 3.7M population ▪ 15 Fortune 500 companies headquartered ▪ Diversi
Slide 17: Innovation – Growth in Denver
centerspacehom es. com 17 ▪ 7 CSR communities, 2,104 homes, entered Denver Q4 2017 and achieved critical mass ▪ 19th largest MSA, 3.0M population ▪ 21 Fortune 1,000 companies headquartered in Colorado ▪ Diversified economy with large presence of aviation/aerospace, healthcare, telecommunications and
Slide 18: Market Data by Region
centerspacehom es. com 18 Region % of NOI(1) Population Market Homes Median Household Income Unemployment Rate 3-Month Avg Job Growth Median Single-Family Home Value Trailing 12- Month Net Deliveries(4) Market Vacancy(4) YoY Market Rent Growth(4) Homes Under Construction / % of Stock(4) CSR YTD Avg
Slide 19: Portfolio Compares Favorably on Unemployment & Supply
centerspacehom es. com 19 ▪ Low unemployment in our portfolio relative to all housing sectors- apartment, manufactured housing, and single-family rentals, is leading to strong collection rates ▪ Centerspace’s portfolio has the lowest weighted average unemployment rate among public multifamily compan
Slide 20: Innovation – Value Add Program
centerspacehom es. com 0 20 40 60 80 100 120 140 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2018 2019 2020 2021 2022 2023 2018-2023 Value Add Spend Actual Spend 2023 Reforecast Achieved Premium U/W Cumulative Premium 1. Includes unit renovations, common are
Slide 21: Service – Enhancing Customer Experience
centerspacehom es. com 21 69.76 61.57 54 56 58 60 62 64 66 68 70 Centerspace ORA Score National Property Average ORA Score 2024 J Turner ORA Score (As of 3/1/2024) ORA TOP PERFORMER Red 20 Apartments in Minneapolis, MN was named to the 2023 Elite 1% in the J Turner Research 2023 ORA Power Rankings r
Slide 22: Environmental Social Governance
centerspacehom es. com 22 ENVIRONMENTAL SOCIAL GOVERNANCE • Established formal ESG targets and published them for the first time in the 2022 annual report • Submitted our second annual GRESB submission and increased our score 15%, from 55 in year one to 63 in year two • Implemented smart home techno
Slide 23: Executive Management Team
centerspacehom es. com 23 EXECUTIVE MANAGEMENT TEAM Anne Olson President & CEO Bhairav Patel EVP & CFO ISS rated top score of 1 - indicating highest quality corporate governance practices and lowest governance risk SENIOR LEADERSHIP TEAM Susan Picotte SVP, Asset Management & Operations Support Jim M
Slide 24: Key Takeaways
centerspacehom es. com GEOGRAPHIC DIFFERENTIATION VALUE KEY TAKEAWAYS PROVEN EXECUTION 24
Slide 25: Appendix
centerspacehom es. com 25 APPENDIX
Slide 26: Reconciliation to Non-GAAP Measures – FFO
centerspacehom es. com 26 RECONCILIATION TO NON-GAAP MEASURES Reconciliation of Net Income (Loss) Available to Common Shareholders to Funds From Operations and Core Funds From Operations Centerspace believes that FFO, which is a non-GAAP financial measure used as a standard supplemental measure for
Slide 27: Reconciliation to Non-GAAP Measures
centerspacehom es. com 27 RECONCILIATION TO NON-GAAP MEASURES UpdatedRECONCILIATION TO NON-GAAP MEASURESRECONCILIATION TO NON-GAAP MEASURES 1. Consists of $37,000 in associated trial costs related to the litigation matter for the three months ended March 31, 2024. Consists of a $3.9 million loss on
Slide 28: Reconciliation to Adjusted EBITDA
centerspacehom es. com 28 Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted EBITDA Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain or loss on sale of real estate and other investments, impairment of real estate investments, gain or
Slide 29: Reconciliation of Operating Income to Net Operating Income
centerspacehom es. com 29 Reconciliations of Operating Income to Net Operating Income Net operating income, or NOI, is a non-GAAP financial measure which the Company defines as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is