Centerspace (CSR)

In November 2025, Centerspace confirmed a strategic review by its Board of Trustees, considering options like a sale or merger. Centerspace reported Q3 2025 revenue of $71.4 million, a 9.8% year-over-year increase, and net income of $3.19 per diluted share, influenced by a $52.9 million gain from asset sales. The full-year 2025 Core Funds From Operations (FFO) guidance was narrowed to $4.88 to $4.96 per diluted share in November 2025 and reaffirmed at $4.98 per share as of January 5, 2026. Centerspace sold five communities in St. Cloud, Minnesota, for $124.0 million in September 2025, acquired its first community in Salt Lake City, Utah, for $149 million in June 2025, and signed an agreement to acquire a community in Fort Collins, Colorado. A regular quarterly distribution of $0.77 per share/unit was declared in December 2025. UBS adjusted its price target on Centerspace to $66 from $63 in January 2026, maintaining a Neutral rating. The share price as of December 22, 2025, was $65.50, a 0.80% decline from December 23, 2024.

Demand for Centerspace's residential rental housing exhibits some seasonality, with an anticipated tapering of new lease rates towards the end of the year. Strong demand is expected to drive lease rates positive by year-end 2025 and into 2026 in markets like Denver. Centerspace projects an average occupancy of 95% for the full year 2025, with current occupancy at 96% heading into the peak leasing season. Sustained demand and a downward trend in new supply additions across its markets have been observed, with demand expected to outpace supply in the latter half of 2026 and into 2027. The affordability of housing in Centerspace's markets is comparable to coastal and Sunbelt markets, with a low percentage of departing residents citing homeownership as their reason for moving.

Centerspace is a real estate investment trust (REIT) focused on owning, managing, acquiring, redeveloping, and developing apartment communities within the Real Estate sector, specifically the Residential REIT industry. The company's core product is residential rental housing, and it employs a strategic approach of capital recycling, shifting its portfolio mix from older, lower-growth properties to newer, higher-quality assets in more institutional markets.

Centerspace concentrates its operations in the Midwest and Mountain West regions of the United States. As of September 30, 2025, it owned 68 apartment communities, totaling 12,941 homes across seven states: Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. In 2025, Centerspace expanded into Salt Lake City, Utah, with a $149 million acquisition and strengthened its Colorado presence with an agreement to acquire a community in Fort Collins. The company divested older assets, including the sale of its five-community portfolio in St. Cloud, Minnesota, for $124.0 million in September 2025.

Centerspace has maintained a positive brand reputation over the past year. The company was named a "Top Workplace" for the sixth consecutive year in 2025 by the Minneapolis Star Tribune. Centerspace published its fifth annual Environmental, Social, and Governance (ESG) Report in August 2024, highlighting its commitment to sustainable business practices and responsible operations. The company's 2023 ESG report showed a 14.5% improvement in its GRESB score.

Centerspace's ownership is heavily concentrated among institutional investors, holding between 79.04% and over 88.14% of the company's stock. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, State Street Corp, Silvercrest Asset Management Group Llc, Macquarie Group Ltd, Land & Buildings Investment Management, LLC, Geode Capital Management, Llc, Renaissance Technologies Llc, and Charles Schwab Investment Management Inc. Individual investors and company insiders hold smaller percentages of the outstanding shares.