Slide 1: Investor Presentation June 2023
INVESTOR PRESENTATION June 2023 Civic Lofts – Denver, CO
Slide 2: Safe Harbor Statement and Legal Disclosure
centerspacehomes.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 materi
Slide 3: Company Overview
centerspacehomes.com 3(1) See page 7 for breakdown Differentiated Multifamily Market Exposure 13,497 Apartments owned and operated NYSE: CSR $2.0 Billion(1) Total capitalizationKey Indices S&P SmallCap 600 MSCI US REIT Russell 2000 RISE is Centerspace’s commitment to Results, Innovation, Service, an
Slide 4: Results – 2023 Financial Outlook
centerspacehomes.com 4 Q1 2023 -------------------2023 Guidance Range-------------------- Actual Low Mid-Point High Revenue 10.5% 6.00% 7.00% 8.00% Expenses 9.9% 4.75% 5.50% 6.25% NOI 11.0% 7.00% 8.00% 9.00% Earnings $2.76 $2.73 $3.18 $3.62 FFO $0.89 $4.03 $4.18 $4.33 Core FFO $1.07 $4.27 $4.42 $4.5
Slide 5: Results – Portfolio Stability and Resiliency
centerspacehomes.com 5 SAME STORE LEASING -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% $ 1,150 $ 1,200 $ 1,250 $ 1,300 $ 1,350 $ 1,400 $ 1,450 $ 1,500 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Avg Rent Occupied Units New % Change Renewal % Change Blended % Change Q1 2022 Q2 2022
Slide 6: Results – Positive Leasing Trends Continue
centerspacehomes.com 6 6.2% 12.6% 7.9% 1.6% 2.5% 5.0% 9.8% 7.8% 8.9% 7.4% 5.7% 5.2% 7.5% 10.7% 8.5% 4.1% 3.8% 5.1% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 QTD thru May New Renewal Blended RESULTS - POSITIVE LEASING TRENDS CONTINUE SAME STORE LEASING UPDATE
Slide 7: Results – NOI Composition and Rental Rate Growth
centerspacehomes.com 7 -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 2023 vs 2022 Year-to-Date Rental Rate Growth New Lease Rents Renewal Rents Market % of NOI Contribution Minneapolis, MN 34.4% Denver, CO 23.7% North Dakota 13.8% Rochester, MN 9.3% Other Mountain West 9.0% Omaha, NE 5.3% St. Cloud, MN 4.5% Total
Slide 8: Large Permanent Capital Base
centerspacehomes.com 8 Common Equity 49% Secured Debt 23% Unsecured Debt 22% Series C Preferred 5% Series D Preferred 1% *Share price $54.63 as of 3/31/2023 Large Permanent Capital Base ($2.0B Total Capitalization) $0.9B Total Debt $1.0B Common Equity $110M Preferred Equity % of Total Maturing 2.4%
Slide 9: Stable Underlying Portfolio and Consistent Earnings
centerspacehomes.com 9 STABLE UNDERLYING PORFOLIO = CONSISTENT EARNINGSRESULTS – STABLE UNDE LYING PORTFOLIO AND CONSISTE T EARNINGS Differentiated and low supply exposure markets insulate portfolio from broader economic and multifamily fundamental weakness 9.1% 1.6% 5.6% 11.0% 2019 2020 2021 2022 C
Slide 10: Innovation – Portfolio Improvement Since 2017
centerspacehomes.com 10 Acquired 33 communities in our target markets for $1.4 billion including through unique deal structuring which has provided a competitive advantage in transaction market $500 million in non-core dispositions as we reduce our exposure to less efficient communities in lower
Slide 11: Innovation – Advancing Portfolio Construction Through Dispositions
centerspacehomes.com 11 INNOVATION – ADVANCING PORTFOLIO CONSTRUCTION THOUGH DISPOSITIONS Average capitalization rate of the 2023 dispositions was 5.9%, while the implied capitalization rate for the portfolio is 7.6% based upon the common stock closing price at 3/31/2023 ($54.63 per share) Proce
Slide 12: Innovation – Growth in Denver
centerspacehomes.com 12 7 CSR communities, 2,104 homes, entered Denver 4Q 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 t
Slide 13: Innovation – Competitive Advantage in Minneapolis
centerspacehomes.com 13 29 CSR communities, 4,916 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 Diversifi
Slide 14: Market Data by Region
centerspacehomes.com 14 Region % of NOI (1) Population Market Homes Median Household Income Unemployment Rate 3-Month Avg Job Growth Median Home Value Trailing 12- Month Deliveries (4) Market Vacancy (4) YoY Market Rent Growth (4) Homes Under Construction / % of Stock (4) Centerspace YTD Avg Annual
Slide 15: Low Unemployment and Limited New Supply
centerspacehomes.com 15 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 compani
Slide 16: Value-Add Highlights
centerspacehomes.com 16 VALUE-ADD HIGHLIGHTS Value-add opportunities to drive maximum revenue across the portfolio include home and common area renovations and adding amenities including clubhouses, fitness centers, dog park, outdoor kitchens, and package locker solutions. Enhancements improve ass
Slide 17: Technology Platform
centerspacehomes.com 17 AI Leasing Assistant responds to email and text inquiries 24-hours a day Websites, resident and applicant portals, resident app, and robust CRM solution Full-service property management platform Mobile maintenance platform Electronic invoicing, vendor marketplace, and automat
Slide 18: Service – Enhancing Customer Experience
centerspacehomes.com 18 66.58 62.88 58 60 62 64 66 68 Centerspace ORA Score National Property Average ORA Score 2022 J Turner ORA Score ORA TOP PERFORMERS Red 20 Apartments in Minneapolis, MN and Ironwood Apartments in New Hope, MN were named to the 2022 Elite 1% in the J Turner Research 2022 ORA Po
Slide 19: Environmental Social Governance
centerspacehomes.com 19 ENVIRONMENTAL SOCIAL GOVERNANCE • Participated in the GRESB annual assessment to identify risks and opportunities and benchmark performance amongst real estate peers • Implemented an Environmental Management System (EMS) aligned with ISP 14001 to gather, track, and improve up
Slide 20: Executive Management Team
centerspacehomes.com 20 EXECUTIVE MANAGEMENT TEAM Anne Olson President and CEO Bhairav Patel EVP and 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 and Operations Support E
Slide 21: Appendix
centerspacehomes.com 21 APPENDIX
Slide 22: Reconciliation to Non-GAAP Measures
centerspacehomes.com 22 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 eq
Slide 23: Reconciliation to Non-GAAP Measures – FFO
centerspacehomes.com 23 RECONCILIATION TO NON-GAAP MEASURES Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Funds From Operations Net (loss) income available to common shareholders 41,964 (3,613) (2,130) (4,598) (10,196) Adjustments: Noncontrolling interests – Operating Partner
Slide 24: Reconciliation to Adjusted EBITDA
centerspacehomes.com 24 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 lo