Centerspace (CSR) investor relations material

Executive summary

• Completed or under contract to sell 20 communities for $530 million over 14 months, improving portfolio quality and reducing leverage.

• Revenue for Q2 2026 decreased 4.0% year-over-year to $65.8 million, mainly due to asset dispositions.

• Net loss per diluted share improved to $0.07 from $0.87 year-over-year; Core FFO per diluted share was $1.27, down slightly from $1.28.

• Repurchased 45,310 common shares at an average price of $55.54 per share.

• Portfolio repositioning increased exposure to institutional markets and eliminated tertiary market risk.

Financial highlights

• Q2 Core FFO was $1.27 per diluted share, driven by a 30 basis point year-over-year increase in same-store NOI.

• Revenue was flat or down 4% year-over-year, impacted by asset sales and concessions in Denver.

• Weighted average occupancy for same-store communities was 96.0% in Q2 2026.

• Expenses declined 10 basis points year-over-year, mainly from lower R&M costs, but G&A increased due to severance and strategic review.

• Blended lease growth was 1.8% in Q2 and held steady through July; renewal lease rate growth was 3.4%.

Outlook and guidance

• 2026 Core FFO per diluted share guidance lowered to $4.58–$4.68, reflecting expected dispositions and deleveraging.

• Net income per diluted share outlook raised to $6.42–$6.82, driven by gains on asset sales.

• Same-store NOI growth expected between flat and 1.5% for 2026.

• Expect $100 million cash on hand, with $50–$60 million earmarked for a special distribution to maintain REIT status.

• Proceeds from dispositions to be used for debt reduction and working capital.