D/b/a Centerspace · NYSE:CSR
D/b/a Centerspace — Q1 2025 Earnings Presentation
26 slides from D/b/a Centerspace's earnings presentation, May 2, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION June 2, 2025 Sugarmont Apartments – Salt Lake City, UT
Slide 2: Safe Harbor Statement & Legal Disclosures
SAFE HARBOR STATEMENT & LEGAL DISCLOSURES Certain statements in this presentation are based on Centerspace’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 discus
Slide 3: Table of Contents
TABLE OF CONTENTS Sugarmont – Salt Lake City, UT Arcata – Golden Valley, MN Westend – Denver, CO TABLE OF CONTENTS OUR VISION 1. Why Centerspace 4 To be the premier provider of 2. Operational Updates 5 apartment homes in vibrant 3. 2025 Transaction Activity 8 communities by focusing on 4. Strong Fun
Slide 4: Why Centerspace
WHY CENTERSPACE NYSE: CSR Geographic Diversity o Differentiated exposure in Midwest and Mountain West provides comparable growth with lower volatility Best-in-Class Operations o SmartHome technologies, centralized staffing models and regional scale drive efficiencies o Five-time "Best Place to Work"
Slide 5: Operational Updates
OPERATIONAL UPDATES centerspacehomes.com 5
Slide 6: Strong Leasing Trends into Peak Season
STRONG LEASING TRENDS INTO PEAK SEASON SAME STORE LEASING SPREADS(1) YTD SAME STORE LEASING SPREADS BY REGION(1) New Lease Rents Renewal Rents Blended Rents 3.4% 3.5% 3.5% 3.5% 3.1% 3.1% 0.3% 0.3% 3.0% 0.2% 2.6% 2.5% 3.6% 3.3% 3.5% 3.4% 3.2% 5.4% 5.5% 2.5% 2.2% 3.7% 5.7% 1.0% 1.6% 3.1% 1.5% 1.4% 1.1
Slide 7: Exceptional Resident Experience and Current Resident Profile
EXCEPTIONAL RESIDENT EXPERIENCE AND CURRENT RESIDENT PROFILE Lifetime Average Reputation Scores 2025 J Turner ORA Score 2025 Same-Store Retention (As of 5/1/2025) (As of 5/1/2025) 4 3.95 3.93 64.9% 70% 3.9 National Property Average ORA 56.0% 57.5% 56.4% 3.81 Score 62.58 60% 53.2% 49.7% 48.1% 3.8 50%
Slide 8: 2025 Transaction Activity
2025 TRANSACTION ACTIVITY centerspacehomes.com 8
Slide 9: Enhancing Long-Term Portfolio Returns with Upgrades
ENHANCING LONG-TERM PORTFOLIO RETURNS WITH UPGRADES TO MARKET EXPOSURES AND ASSET QUALITY 2025 transaction plan improves our diversification within target markets and enhances overall portfolio quality Planned 2025 dispositions exits us from the St. Cloud, MN, market and reduces Minneapolis multifam
Slide 10: Enhancing Long-Term Portfolio Returns with Upgrades
ENHANCING LONG-TERM PORTFOLIO RETURNS WITH UPGRADES TO MARKET EXPOSURES AND ASSET QUALITY ACQUISITIONS FINANCING DISPOSITIONS Acquisition and Disposition Outcomes ➢ May 30, 2025: Salt Lake City, ➢ Line of credit expansion ➢ $200M-$230M total sale Higher long-term growth profile UT acquisition closed
Slide 11: Strategic Capital Recycling Drives Improvements
STRATEGIC CAPITAL RECYCLING DRIVES IMPROVEMENTS TO PORTFOLIO COMPOSITION AND DIVERSIFICATION 2017 Q1 2025 Pro Forma (1) Portfolio NOI Composition Q1 2025 Pro Forma (1) Communities 100 71 61 Homes 13,212 13,012 12,262 Homes per Community 132 183 201 41% 33% 36% 30% Average Monthly Rent $980 $1,585 $1
Slide 12: Enhanced Geographic Differentiation Through Improved Market Exposures
ENHANCED GEOGRAPHIC DIFFERENTIATION THROUGH IMPROVED MARKET EXPOSURES PUBLIC MULTIFAMILY REIT MARKET OVERVIEW GEOGRAPHIC FOCUS (% OF UNITS) 33% 67% 3% 42% 10% 17% 28% 6% 49% 10% 17% 18% 4% 85% 7% 100% 27% 34% 21% 17% 5% 13% 71% 10% 4% 21% 73% 5% 95% 25% 75% 24% 76% 6% 92% 3% Mountain West Midwest We
Slide 13: Salt Lake City: Market Entry Improves Cash Flow Exposures
SALT LAKE CITY: MARKET ENTRY IMPROVES CASH FLOW EXPOSURES WHILE MAINTAINING DIFFERENTIATED FOOTPRINT MARKET HIGHLIGHTS CSR RECENT ACQUISITION NOTABLE EMPLOYERS ▪ One CSR community, 341 homes. Pursuing ▪ Sugarmont, a 341-home community delivered in 2021. 95% occupied with additional scale $2,222 aver
Slide 14: Salt Lake City: Expansion into High-Growth Institutional Market
SALT LAKE CITY: INNOVATION EXPANSION – PROVIDING INTO HIGH-GROWTH DIFFERENTIATED INSTITUTIONAL MARKET EXPOSURE Salt Lake City is the most supply constrained market relative to total population Salt Lake City Demand Drivers among largest publicly-traded multifamily REIT peer markets Strong demographi
Slide 15: Flexible Balance Sheet with Well Laddered Debt Maturities
FLEXIBLE BALANCE SHEET WITH WELL LADDERED DEBT MATURITIES AND ACCESS TO MULTIPLE FORMS OF CAPITAL Diversified Permanent Capital Base $2.3B Pro Forma Total Capitalization (2) Quarterly Net Debt / Annualized Trailing EBITDA(1) 4-Quarter Moving Average Most Recent Quarter 9.0x 8.5x 1% 8.0x 16% 7.5x 7.0
Slide 16: Strong Fundamentals
STRONG FUNDAMENTALS centerspacehomes.com 16
Slide 17: Denver: Scaled Portfolio with Long-Term Growth
DENVER: SCALED PORTFOLIO WITH LONG-TERM GROWTH MARKET HIGHLIGHTS CSR HIGHLIGHTS ▪ 7 CSR communities, 1,977 homes. Entered Location by % of NOI Asset Class by % of NOI CSR Portfolio NOI % 19.7% market Q4 2017 and achieved critical mass CSR Denver Portfolio ▪ Diversified economy with large presence of
Slide 18: Minneapolis: Competitive Advantage
MINNEAPOLIS: COMPETITIVE ADVANTAGE MARKET HIGHLIGHTS CSR HIGHLIGHTS CSR Portfolio NOI % 30.0% ▪ Proforma 20 CSR communities, 4,032 Location by % of NOI Asset Class by % of NOI homes. Opportunistic focus market 8% CSR Minneapolis Portfolio ▪ Diversified economy with large presence of healthcare, medi
Slide 19: Differentiated Geographic Exposure
DIFFERENTIATED GEOGRAPHIC INNOVATION – PROVIDING EXPOSURE EXPOSURE DIFFERENTIATED Portfolio hallmarks include low unemployment rates, affordability of rents, resident financial strength, and diversified economies Forecasted Next Median Median Trailing 12-Month 12-Month Net Homes Under CSR YTD CSR YT
Slide 20: Rental Affordability vs Homeownership & Income Growth
RENTAL AFFORDABILITY VS HOMEOWNERSHIP & INCOME GROWTH Rent Vs. Own Affordability Gap in CSR Markets Income Growth Has Outpaced Rent Growth in CSR Markets Median Household Income Growth Minus Rent Growth: 2017 Q1 to 2025 Q1 $3,500 22% $3,000 15% 14% 13% 13% Monthly Payment $2,500 9% 9% 10% 8% $2,000
Slide 21: Supply/Demand Dynamic Expected to Become a Tailwind
SUPPLY/DEMAND DYNAMIC EXPECTED TO BECOME A TAILWIND Net Deliveries, Combined CSR Markets Net Deliveries, Minneapolis 16,000 5,000 14,000 4,500 4,000 12,000 3,500 10,000 3,000 Units Units 8,000 2,500 6,000 2,000 4,000 1,500 1,000 2,000 500 0 0 2026 1Q 2026 2Q 2025 3Q 2021 4Q 2022 4Q 2024 1Q 2024 2Q 2
Slide 22: Appendix
APPENDIX centerspacehomes.com 22
Slide 23: Reconciliation to Non-GAAP Measures
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 equity real estate investm
Slide 24: Reconciliation to Non-GAAP Measures
RECONCILIATION RECONCILIATIONTOTO RECONCILIATION TONON-GAAP NON-GAAP NON-GAAP MEASURES MEASURES MEASURES Updated (in thousands, except per share amounts) Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Funds from Operations Net loss available to common shareholders $ (3,734)
Slide 25: Reconciliation to Non-GAAP Measures
RECONCILIATIONTOTONON-GAAP RECONCILIATION NON-GAAPMEASURES MEASURES (in thousands) Reconciliation of Net Income (Loss) Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Available to Common Shareholders to Adjusted EBITDA Adjusted EBITDA Net loss attributable to controlling inter
Slide 26: Reconciliation to Non-GAAP Measures
RECONCILIATIONTOTONON-GAAP RECONCILIATION NON-GAAPMEASURES MEASURES Net Debt Divided by Adjusted EBITDA Three Months Ended Net debt is the total outstanding debt balance less cash 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 and cash equivalents. Adjusted EBITDA is annualized for (1) Total de