D/b/a Centerspace · NYSE:CSR
D/b/a Centerspace — Investors Real Estate Trust — Raymond James Institutional Investor Conference 2020
20 slides from D/b/a Centerspace's conference presentation, Mar 2, 2020
Slide 1: Raymond James Institutional Investor Conference
Raymond James Institutional Investor Conference Orlando, Florida March 1-4, 2020
Slide 2: Safe Harbor Statement and Legal Disclosure
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 that may cause actual resu
Slide 3: Company Snapshot and Portfolio Summary
COMPANY SNAPSHOT PORTFOLIO SUMMARY Increased exposure to target Differentiated markets in Minneapolis and ▪ Founded in 1970 Markets Denver through disciplined ▪ Apartment owner/operator with 11,953 homes capital recycling in differentiated markets ▪ Publicly traded since 1997 Enhanced operating Inte
Slide 4: Portfolio Overview
PORTFOLIO OVERVIEW % of Pro Avg. Rev Region Forma 2020 Homes per Home NOI Minot Grand Forks Minneapolis, MN 26% 2,355 $1,682 Billings Bismarck St. Cloud Denver, CO 15% 992 $1,986 Rapid Minneapolis City Rochester Rochester, MN 15% 1,711 $1,325 Omaha Grand Forks, ND 9% 1,555 $994 Denver Omaha, NE 8% 1
Slide 5: 2019 Highlights
2019 HIGHLIGHTS (1) Acquisition/Disposition Activity Core FFO per Share ▪ Acquired three new properties in our core markets for an 4Q19 vs 4Q18 2019 vs 2018 aggregate purchase price of $169.3 million $0.96 ▪ Lugano at Cherry Creek, a 328-home community in $3.72 Denver, CO ▪ FreightYard Townhomes and
Slide 6: Strong Operating Results
STRONG OPERATING RESULTS Our plan is producing consistent growth YoY Same-Store NOI % Growth Trailing 3 Months 10.0% 9.0% 8.7% 8.0% 7.0% 6.4% 6.0% 5.8% 5.3% 5.0% 4.7% 4.6% 4.0% 2.8% 3.0% 2.6% 2.0% 1.0% 0.2% 0.0% 1/31/2018 4/30/2018 7/31/2018 10/31/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/
Slide 7: Operational and Margin-Enhancing Initiatives
OPERATIONAL AND MARGIN-ENHANCING INITIATIVES Focusing efforts to harvest organic growth from operational enhancements and margin-enhancing initiatives ▪ “Rise By 5” margin expansion program targets key 60% 59% 61% opportunities to sustainably increase cash flow, including: 58% 62% ▪ Revenue optimiza
Slide 8: 2020 Guidance
2020 GUIDANCE Operating Expense Multifamily REITs FFO/Share Rev Growth Growth NOI Growth Low High Low High Low High Low High NexPoint Residential Trust, Inc. 11.40% 17.62% 5.00% 6.00% 5.30% 6.30% 5.00% 7.00% Independence Realty Trust, Inc. 3.95% 7.89% 4.00% 6.00% 4.25% 6.25% 4.00% 5.50% UDR, Inc. 4.
Slide 9: Value-Add Opportunity
VALUE-ADD OPPORTUNITY Highlights ▪ Currently, we have approved $40.9 million of value-add projects in about a third of the homes in our portfolio ▪ Expected investment of $10.0 - $15.0 million in 2020 Duration of Estimated Estimated Region Projects Cost ROI1 Minneapolis, MN 1.0 – 4.0 $21,500,000 16%
Slide 10: Capital Recycling
CAPITAL RECYCLING Significantly improved the quality of our portfolio since 2017 We focus our energy and capital on Portfolio quality has improved since 2017 improving 3 Long-Term Metrics FY2017 Today NOI Margin NOI Margin 55.3% 58.3% Portfolio Quality Communities Communities 92 69 Homes per Propert
Slide 11: December 31, 2019 Capital Structure
DECEMBER 31, 2019 CAPITAL STRUCTURE A strong and flexible balance sheet allows us to execute our investment and operational strategies $ in thousands, except where noted $1.7B Total Capitalization % of Weighted Weighted Debt Summary Amount Total Avg. Rate Avg. Maturity Debt Summary $954M $651M Total
Slide 12: Recent Acquisitions
RECENT ACQUISITIONS SouthFork Lugano at FreightYard Townhomes Cherry Creek Townhomes and Flats Minneapolis, MN Denver, CO Minneapolis, MN $44.0 million $99.3 million $26.0 million ▪ A 272‐unit community built in 1988 & 1990 ▪ 328 homes and 13,262 square feet of retail ▪ Unique 96-home community loca
Slide 13: Top Market Fundamentals
TOP MARKET FUNDAMENTALS Minneapolis – St. Paul and Denver boast extremely tight job markets, characterized by a highly educated workforce Educational Attainment: % of Adult Population with Bachelor's Degree or Higher Unemployment Rate(1) Washington-Arlington-Alexandria, DC-VA-MD-WV MSA 51.6% 3.5% Sa
Slide 14: Focused Secondary Market Presence
FOCUSED SECONDARY MARKET PRESENCE These four markets, plus Minneapolis-St. Paul and Denver make up 81% of pro forma NOI Rochester, MN Omaha, NE Grand Forks, ND St. Cloud, MN Population 219,802 942,198 102,277 199,801 Median Household Income $72,129 $66,241 $54,659 $60,759 Unemployment Rate(1) 3.0% 2
Slide 15: Best in Class Governance
BEST IN CLASS GOVERNANCE Executive Management Team Mark O. Decker, Jr. John A. Kirchmann Anne M. Olson PRESIDENT AND CEO EVP AND CFO EVP AND COO IRET rated ISS’s top score of 1 - indicating highest quality corporate governance practices and lowest governance risk Jeffrey P. Caira Michael T. Dance Ma
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS Differentiated Market Exposure Internal Growth Opportunities Value-Add Opportunities Flexible Balance Sheet Best in Class Governance www.iretapartments.com 16
Slide 17: Appendix
Appendix www.iretapartments.com 17
Slide 18: 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 We use the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit defines FFO as n
Slide 19: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON-GAAP MEASURES (in thousands, except per share amounts) Three Months Ended Twelve Months Ended 12/31/2019 9/30/2019 6/30/2019 3/31/19 12/31/2018 12/31/2019 12/31/2018 Net (loss) income available to common shareholders $ 46,953 $ 29,891 $ 1,407 $ (6,403 ) $ (5,811 ) $ 71,848 $ (2
Slide 20: Reconciliation to Non-GAAP Measures: Adjusted EBITDA
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 real estate investments, g
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