Centerspace Announces Financial and Operating Results for the Year Ended December 31, 2025 and Provides 2026 Financial Outlook
MWN-AI** Summary
Centerspace announced its financial and operational results for the fiscal year ending December 31, 2025, showcasing significant improvements compared to the previous year. Notably, the company reported a net income of $1.02 per diluted share, a turnaround from a loss of $1.27 per share in 2024. Funds from Operations (FFO) and Core FFO also increased, standing at $4.74 and $4.93 per diluted share, respectively, both reflecting year-over-year growth.
For the entire year, Centerspace experienced a 3.5% growth in Same-Store Net Operating Income (NOI), attributed to a 2.4% revenue increase. The company maintained a strong average occupancy rate of 95.7% across its managed properties. During the year, Centerspace enhanced its portfolio through acquisitions, including the purchase of two apartment communities for a total of $281.2 million and the sale of twelve non-core assets for $215.5 million.
Looking ahead, Centerspace provided its 2026 financial outlook, predicting diluted earnings between a loss of $0.49 to a loss of $0.19, with FFO per share anticipated to range from $4.61 to $4.89. Additionally, the company announced a quarterly dividend of $0.77 per share, reflecting its ongoing commitment to return capital to shareholders.
Centerspace is also evaluating strategic alternatives to maximize shareholder value and will pursue various opportunities without a definitive timeline. With a solid liquidity position totaling $267.9 million, including cash and credit facilities, Centerspace is well-positioned for future growth as it continues to focus on enhancing its residential portfolio across multiple states.
MWN-AI** Analysis
Centerspace's recent announcement regarding its financial and operational results for 2025 reveals a significant shift in its earnings trajectory. The company reported a net income of $1.02 per diluted share, marking a pivotal recovery from a previous net loss of $1.27 per share in 2024. This positive turnaround, supported by a 3.5% increase in same-store net operating income (NOI), highlights Centerspace's ability to navigate challenging economic conditions. However, investors should remain cautious regarding the mixed indicators within the broader financial outlook for 2026.
While the forecast suggests continued growth in Funds from Operations (FFO) and Core FFO—projected between $4.61 and $4.89 per share—there are concerning signs as well. Notably, the anticipated dip in new lease rate growth at -4.8%, compounded by a decline in retention rates to 55.2%, could hinder revenue momentum. Moreover, the company has opted for a strategic review, generating uncertainty around its future operations and potential asset management strategies.
In light of these factors, potential investors should adopt a balanced perspective. On one hand, Centerspace is successfully increasing its operational income and reducing expenses, which bodes well for its overall financial health. On the other hand, the mixed outlook for 2026 and the low tenant retention rates suggest challenges ahead that could impact stock performance.
Considering this, investors might want to monitor Centerspace closely for acquisition developments and lease adjustments that could affect future performance. A prudent strategy could entail a cautious entry position, waiting for more clarity on operational strategies and market conditions before making significant commitments. Overall, while Centerspace shows promising recovery, its path forward warrants careful scrutiny.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
MINNEAPOLIS, Feb. 17, 2026 /PRNewswire/ -- Centerspace (NYSE: CSR) (the "Company") announced today its financial and operating results for the year ended December 31, 2025. The tables below show Net Income (Loss), Funds from Operations ("FFO")1, and Core FFO1, all on a per diluted share basis, for the year ended December 31, 2025; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted Average Occupancy, Lease Rate Growth, and Resident Retention for each of the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, and the twelve months ended December 31, 2025 and 2024.
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
Per Common Share | 2025 | 2024 | 2025 | 2024 | ||||
Net income (loss) per share - diluted | (1.10) | (0.31) | 1.02 | (1.27) | ||||
FFO - diluted(1) | 1.14 | 1.09 | 4.74 | 4.49 | ||||
Core FFO - diluted(1) | 1.25 | 1.21 | 4.93 | 4.88 |
Year-Over-Year | Sequential Comparison | YTD Comparison | ||||
Same-Store Results(2) | Q4 2025 vs Q4 2024 | Q4 2025 vs Q3 2025 | CY 2025 vs. CY 2024 | |||
Revenues | 1.0 % | (0.8) % | 2.4 % | |||
Expenses | (5.1) % | (7.4) % | 0.6 % | |||
NOI(1) | 4.8 % | 3.3 % | 3.5 % |
Three months ended | Twelve months ended | |||||||||
Same-Store Results(2) | December 31, | September 30, | December 31, | December 31, | December 31, | |||||
Weighted Average Occupancy | 95.3 % | 95.8 % | 95.7 % | 95.7 % | 95.4 % | |||||
New Lease Rate Growth | (4.8) % | (1.7) % | (3.7) % | (1.2) % | — % | |||||
Renewal Lease Rate Growth | 3.9 % | 2.9 % | 3.0 % | 3.1 % | 3.2 % | |||||
Blended Lease Rate Growth(3) | 0.1 % | 1.3 % | 0.2 % | 1.3 % | 1.8 % | |||||
Retention Rate | 55.2 % | 59.9 % | 57.1 % | 58.2 % | 61.8 % |
(1) | NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below. |
(2) | Same-store results are updated for annual composition change including acquisition, disposition, changes in held for sale classification, and repositioning activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial Operating Data within. |
(3) | Blended lease rate growth is weighted by lease count. |
Highlights for the Year Ended December 31, 2025
- Net Income was $1.02 per diluted share for the year ended December 31, 2025, compared to Net Loss of $1.27 per diluted share for the year ended December 31, 2024;
- Core FFO(1) increased to $4.93 per diluted share for the year ended December 31, 2025, compared to $4.88 per diluted share for the year ended December 31, 2024;
- Operating income increased to $64.5 million for the year ended December 31, 2025, compared to $20.5 million for the year ended December 31, 2024;
- Same-store year-over-year NOI(1) grew 3.5% driven by same-store revenue growth of 2.4%;
- The Company acquired two apartment communities during the year, Sugarmont in Salt Lake City, Utah, and Railway Flats in Loveland, Colorado, for an aggregate purchase price of $281.2 million, which includes the assumption of $76.5 million in mortgage debt;
- The Company repurchased 62,973 shares at an average price of $54.86 per share, including commissions; and
- The Company sold twelve non-core apartment communities throughout Minnesota and one corporate office building for an aggregate sales price of $215.5 million.
Balance Sheet
At December 31, 2025, Centerspace had $267.9 million of total liquidity on its balance sheet, including $255.1 million available on its lines of credit and $12.8 million in cash and cash equivalents.
Dividend Distributions
Centerspace's Board of Trustees announced a quarterly distribution of $0.77 per share/unit, payable on April 14, 2026, to common shareholders and unitholders of record at the close of business on March 30, 2026.
2026 Financial Outlook
Centerspace is providing the following guidance for its 2026 performance.
2026 Financial Outlook | |||||
Range for 2026 | |||||
2025 Actual | Low | High | |||
Net income (loss) per Share - diluted | 1.02 | (0.49) | (0.19) | ||
FFO per Share - diluted | 4.74 | 4.61 | 4.89 | ||
Core FFO per Share - diluted | 4.93 | 4.81 | 5.05 |
Additional assumptions:
- Same-store capital expenditures of $1,250 per home to $1,350 per home
- Value-add expenditures of $2.5 million to $12.5 million
FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, please refer to "2026 Financial Outlook" in the Supplemental Financial and Operating Data below.
Strategic Review
In November, we announced that our Board has undertaken a proactive process to review strategic alternatives that may be available to Centerspace. Our focus remains on maximizing shareholder value. This review remains ongoing and there is no deadline or definitive timetable and there can be no assurance that this process will?result?in a transaction or any other strategic outcome. Centerspace will not be making disclosures or commenting relating to this process until it determines disclosure is required or appropriate.
Earnings Call
Live webcast and replay: https://www.ir.centerspacehomes.com | ||||
Live Conference Call | Conference Call Replay | |||
Wednesday, February 18, 2026 at 10:00 AM ET | Replay available until February 25, 2026 | |||
USA Local Number | 1-646-844-6383 | USA Local Number | 1-929-458-6194 | |
USA Toll Free Number | 1-833-470-1428 | USA Toll Free Number | 1-866-813-9403 | |
Conference Number | 250430 | Conference Number | 894072 |
Supplemental Information
Supplemental Operating and Financial Data for the year ended December 31, 2025 included herein ("Supplemental Information"), is available in the Investors section on Centerspace's website at https://www.centerspacehomes.com or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of December 31, 2025, Centerspace owned 61 apartment communities consisting of 12,262 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a top workplace for the sixth consecutive year in 2025 by the Minnesota Star Tribune. For more information, please visit www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company'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 discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission ("SEC"), including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in the Company's Annual Report on Form 10-K, in quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.
Contact Information
Investor Relations
Josh Klaetsch
Phone: 952-401-6600
E-mail: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 952-401-6600
E-mail: kweber@centerspacehomes.com
SOURCE Centerspace
FAQ**
How does Centerspace's financial performance for 2025, such as the net income of $1.02 per diluted share, compare to its outlook for 2026, particularly considering the adjusted expectations for D/B/A Centerspace CSR?
Can you elaborate on the factors contributing to the 3.5% growth in same-store NOI for 2025, especially in light of D/B/A Centerspace CSR's strategic acquisitions and dispositions?
What specific strategic alternatives is the Board of D/B/A Centerspace CSR exploring, and how might these impact the company's financial outlook and shareholder value moving forward?
Given the rise in core FFO per diluted share to $4.93, what initiatives does D/B/A Centerspace CSR plan to implement in 2026 to maintain or enhance this performance against potential market challenges?
**MWN-AI FAQ is based on asking OpenAI questions about D/B/A Centerspace (NYSE: CSR).
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