D/B/A Centerspace · NYSE:CSR
D/B/A Centerspace — Centerspace — Raymond James Conference 2021
24 slides from D/B/A Centerspace's conference presentation, March 2021
Slide 1: Investor Presentation
Investor Presentation March 2021
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: IRET Is Now Centerspace
IRET IS NOW CENTERSPACE Better Every Days A lot has changed since our business began, and our new name is a reflection of who we have become. “ The rebrand of the company reflects our mission to provide great homes for our residents, our teams, and our investors. It is about coming together for the
Slide 4: Company Snapshot: Differentiated Markets
COMPANY SNAPSHOT Focused on Growth in Multifamily Differentiated Strong Midwest markets led by Minneapolis and Denver Markets Nashville a new target market Internal Growth Enhanced operating platform Opportunity PORTFOLIO SUMMARY ▪ Founded in 1970, celebrating 50 Years Value-Add Deep value-add pipel
Slide 5: Portfolio Overview
PORTFOLIO OVERVIEW Differentiated Portfolio-Strong Midwest Markets Percent of NOI by State Avg. Rev per Occ. Region Homes Home(2) 6% Minot Grand Forks Target Markets Denver, CO (1) 1,713 $1,839 44% Billings Bismarck Minneapolis, MN 2,537 $1,620 18% St. Cloud North Dakota 2,422 $1,151 Rapid City Minn
Slide 6: Operations Update
OPERATIONS UPDATE January Leasing Trends Same-Store Lease-over-Lease Rate Changes New Renewal Blended 3.6% 3.2% 3.3% 2.3% 2.3% 1.3% 0.4% 0.6% 0.4% 0.0% (0.7%) (1.5%) (1.2%) (1.4%) (1.9%) (3.5%) (3.6%) (4.2%) January 2021 Full Year 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Leasing Activity Same-Store Weig
Slide 7: Unemployment
UNEMPLOYMENT Centerspace Lowest Unemployment Rate Among Peers and 31% Below the US Average December 2020 Weighted Average Unemployment Rate state unemployment rate weighted by unit count 8.6% 7.8% 8.0% 7.2% 7.3% 6.8% 6.8% 6.9% 6.6% 6.7% 6.7% 6.7% 6.2% 6.3% 6.1% 5.8% 4.7% CSR IRT UMH MAA AMH BRG US S
Slide 8: Rise By 5
RISE BY 5 Margin Growth through Operational Opportunities and Thoughtful Acquisitions and Dispositions Strong Operating Platform Buying Efficient Communities Same-Store communities continue to see NOI and gross margin growth Communities acquired have a weighted average margin of 62.3% T12(2) Same-St
Slide 9: Recent Acquisitions
RECENT ACQUISITIONS Focus on Expanding our Portfolio in Target Markets of Minneapolis and Denver UNION POINTE APARTMENTS PARKHOUSE APARTMENTS IRONWODD APARTMENTS DENVER, CO / $76.9 MILLION DENVER, CO / $144.7 MILLION MINNEAPOLIS, MN / $46.3 MILLION • A 256-home community built in 2019 • A 465-home c
Slide 10: Value-Add Opportunity
VALUE-ADD OPPORTUNITY Enhancing Portfolio Through Renovation Projects Highlights New SouthFork Clubhouse ▪ Currently, 10 communities are in the process of value-add projects ▪ Value-add opportunities across the portfolio feature unit renovations, common areas, and adding amenities including clubhous
Slide 11: Capital Recycling
CAPITAL RECYCLING Significantly Improved the Quality and Multifamily Focus Opportunity • $1.1B of dispositions since August 2016 • Used disposition proceeds to purchase five multifamily communities in Denver, five multifamily communities in Minneapolis, fund two multifamily development mezzanine loa
Slide 12: Capital Recycling: Improving Portfolio Metrics
CAPITAL RECYCLING Improving Portfolio Metrics We focus our energy and capital on Multifamily portfolio quality has improved since improving 3 long-term metrics 2017 2017 March 2021 Communities Communities Portfolio Quality 100 68 Homes Homes 13,212 12,166 Homes per Community Homes per Community NAV
Slide 13: Balance Sheet
BALANCE SHEET As of 12/31/2020 Adjusted for Recent Union Pointe and Private Placement $1.7B Total Capitalization Debt Summary Amount % of Wtd Avg Wtd Avg Total Int Rate Maturity Total Secured Debt 298,445,270 37% 3.93% 5.23 Secured Debt 16% $989M Line of Credit 179,771,384 23% 2.97% 1.78 Common Term
Slide 14: Minneapolis Market
MINNEAPOLIS MARKET COMMUNITIES: 14 / HOMES: 2,537 Oxbo Market Highlights ▪ Culturally vibrant and economically diverse metro driven by major employment in health and life sciences, food and water, consumer retail, financial services, and manufacturing; MN is headquarters for 24 Fortune 1,000 compani
Slide 15: Denver Market
DENVER MARKET COMMUNITIES: 5 / HOMES: 1,713 Westend Market Highlights ▪ Diverse economy and major hub of technology, energy, aviation and bioscience; 23 Fortune 1,000 companies have their headquarters in CO ▪ #2 on U.S. News Best Places to Live in the U.S. with highly desirable quality of life and r
Slide 16: Nashville Market
NASHVILLE MARKET New Target Market – A National Growth Leader in Household Income, Jobs, and Millennial Population Market Highlights ▪ True live-work-play community with a lively cultural scene boasting the highest concentration of music industry establishments in the nation and a diverse and growin
Slide 17: Focused Secondary Market Presence
FOCUSED SECONDARY MARKET PRESENCE These Four Markets, Plus Minneapolis-St. Paul and Denver Make Up 80% of Pro-Forma NOI Rochester, MN Omaha, NE Grand Forks, ND St. Cloud, MN Population 216,035 941,924 101,991 196,598 Median Household Income $71,501 $66,241 $53,413 $59,792 Unemployment Rate(1) 3.9% 3
Slide 18: Best-In-Class Governance
BEST-IN-CLASS GOVERNANCE High Caliber Leadership Focused on High Quality Governance Executive Management Team Mark O. Decker, Jr. John A. Kirchmann Anne M. Olson PRESIDENT AND CEO EVP AND CFO EVP AND COO CSR rated ISS’s top score of 1 - indicating highest quality corporate governance practices and l
Slide 19: ESG Highlights
ESG HIGHLIGHTS Strong Focus on Environmental, Social and Corporate Governance Completed LED lighting upgrades at 25 communities Energy Only ENERGY STAR rated Efficiency appliances used for replacement Provide shared cost water services encouraging lower consumption Water Serving the broader communit
Slide 20: Best-In-Class Governance
INVESTMENT HIGHLIGHTS Best-In-Class Governance centerspacehomes.com 20
Slide 21: Appendix
APPENDIX centerspacehomes.com 21
Slide 22: 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
Slide 23: Reconciliation to Non-GAAP Measures
RECONCILIATION TO NON -GAAP MEASURES centerspacehomes.com 23
Slide 24: Reconciliation to Non-GAAP Measures
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,