MINNEAPOLIS, May 3, 2021 /PRNewswire/ -- Centerspace
(NYSE: CSR) announced today its financial and operating results for
the quarter ended March 31, 2021. The tables below show Net
Income, Funds from Operations ("FFO")1, and Core
FFO1, all on a per share basis, for the three months
ended March 31, 2021; Same-Store Revenues, Expenses, and Net
Operating Income ("NOI")1 over comparable periods; and
Same-Store Weighted-Average Occupancy for the three months ended
March 31, 2021, December 31,
2020, and March 31, 2020.
|
|
Three Months Ended
March 31,
|
Per
Share
|
|
2021
|
|
2020
|
Net Income -
diluted
|
|
$
|
(0.49)
|
|
|
$
|
(0.69)
|
|
FFO -
diluted
|
|
$
|
0.92
|
|
|
$
|
0.66
|
|
Core FFO -
diluted
|
|
$
|
0.95
|
|
|
$
|
0.90
|
|
|
|
Year-Over-Year
Comparison
|
|
Sequential
Comparison
|
Same-Store
Results
|
|
Q1 2021 vs. Q1
2020
|
|
Q1 2021 vs. Q4
2020
|
Revenues
|
|
0.4
|
%
|
|
(0.2)
|
%
|
Expenses
|
|
(0.9)
|
%
|
|
5.5
|
%
|
NOI
|
|
1.4
|
%
|
|
(3.9)
|
%
|
|
|
Three months
ended
|
Same-Store
Results
|
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
Weighted Average
Occupancy
|
|
94.9
|
%
|
|
94.7
|
%
|
|
95.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
NOI, FFO, Core FFO,
and same-store results 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" below.
|
Highlights
- In April 2021, Centerspace paid
its 200th consecutive quarterly distribution since its initial
dividend in 1971;
- Net Loss was $(0.49) per diluted
share for the first quarter of 2021, compared to Net Loss of
$(0.69) per diluted share for the
same period of 2020;
- Core FFO increased 5.6% to $0.95
per diluted share for the three months ended March 31, 2021, compared to $0.90 for the three months ended March 31, 2020;
- Same-store revenues increased by 0.4% for the first quarter of
2021 compared to the first quarter of 2020;
- Same-store expenses decreased by 0.9% for the first quarter of
2021 as compared to the first quarter of 2020, contributing to NOI
growth of 1.4%;
- In a press release issued April 19,
2021, the company announced a 122% increase to its mid-point
earnings per share outlook and a 4.2% increase to mid-point Core
FFO outlook for 2021;
- Continued to grow the portfolio in the core market of
Denver through the acquisition of
Union Pointe, a 256-home apartment community in Longmont, Colorado;
- Issued $50.0 million of 2.7%
unsecured Series C Notes due June 6,
2030. In concert with the issuance, the company amended and
expanded its Note Purchase Private Shelf Agreement to increase the
aggregate amount under the agreement from $150.0 million to $225.0
million; and
- Continued to strengthen the balance sheet by issuing 164,279
common shares under the 2019 ATM program for net proceeds of
$11.9 million.
Acquisitions and Dispositions
During the quarter, Centerspace acquired Union Pointe, a
256-home apartment community in Longmont,
Colorado for an aggregate purchase price of $76.9 million.
Subsequent to the end of the quarter, Centerspace received
$2.0 million of non-refundable
deposits and expects to complete the sale of select assets in
Rochester, Minnesota on
May 24th. The sale consists of 589
apartment homes in six communities with an aggregate sale price of
$60.0 million. The proceeds from this
disposition are expected to be used to pay down the line of credit
and increase liquidity.
Balance Sheet
At the end of the first quarter, Centerspace had $79.3 million of total liquidity on its balance
sheet, consisting of $68.5 million
available under the line of credit and cash and cash equivalents of
$10.8 million.
Improved 2021 Financial Outlook
Centerspace's 2021 financial outlook with midpoints of
$0.30 for Earnings per Share and
$3.60 for Core FFO is consistent with
its release issued April 19, 2021,
and up from its February expectation of $0.14 and $3.455,
respectively. For additional information, see S-14 of the
supplemental. These ranges should be considered in their entirety.
The revised outlook is:
|
Previous Outlook
for 2021
|
Updated Outlook
for 2021
|
|
Low
|
High
|
Low
|
High
|
Earnings per Share –
diluted
|
$(0.18)
|
$0.45
|
$0.10
|
$0.50
|
Same-Store
Revenue
|
(0.5)%
|
3.0%
|
0.0%
|
3.0%
|
Same-Store
Expenses
|
4.0%
|
7.5%
|
3.0%
|
5.0%
|
Same-Store
NOI
|
(3.5)%
|
(0.5)%
|
(1.5)%
|
1.5%
|
FFO per Share –
diluted
|
$3.17
|
$3.52
|
$3.38
|
$3.62
|
Core FFO per Share –
diluted
|
$3.29
|
$3.62
|
$3.48
|
$3.72
|
COVID-19 Developments
The COVID-19 pandemic, including the associated economic
disruptions, has continued to impact business and operations since
March 2020. The company continues to
prioritize the health and well-being of its residents, team
members, and the communities it serves.
A discussion of the ongoing and potential effects of the
COVID-19 pandemic on financial condition, results of operations,
and cash flows can be found in "Management's Discussion and
Analysis of Financial Conditions and Results of Operations"
presented in the company's Annual Report on Form 10-K for the year
ended December 31, 2020, filed with
the SEC on February 22, 2021. For a
more detailed description of the risks and uncertainties affecting
business, see the risk factors presented in Item 1A in the
company's Annual Report on Form 10-K for the year ended
December 31, 2020, filed with the SEC
on February 22, 2021.
Upcoming Events
On May 18, 2021, at 9:00 a.m. CDT, Centerspace will be holding its
2021 Annual Meeting of Shareholders live via the Internet.
Shareholders can participate in and/or vote at the Annual Meeting
via live webcast over the Internet at
www.virtualshareholdingmeeting.com/CSR2021. Shareholders must enter
the 16-digit control number found in their proxy materials, either
on the Notice of Internet Availability of Proxy Materials, the
proxy card, or in the instructions that accompanied the proxy
materials to enter the 2021 Annual Meeting. The company urges the
shareholders to vote and submit proxies in advance of the Annual
Meeting by one of the methods described in the proxy materials for
the Annual Meeting. The Annual Meeting webcast will begin promptly
at 9:00 a.m. CDT. On the day of the
Annual Meeting, the company recommends that you log into its
virtual meeting at least 15 minutes prior to the scheduled start
time to ensure you can access the meeting.
Earnings Call
Live webcast and
replay: https://ir.centerspacehomes.com
|
|
|
|
Live Conference
Call
|
|
Conference Call
Replay
|
Tuesday, May 4, 2021,
at 10:00 AM ET
|
|
Replay available
until May 18, 2021
|
USA Toll Free
Number
|
1-877-509-9785
|
|
USA Toll Free
Number
|
1-877-344-7529
|
International Toll
Free Number
|
1-412-902-4132
|
|
International Toll
Free Number
|
1-412-317-0088
|
Canada Toll Free
Number
|
1-855-669-9657
|
|
Canada Toll Free
Number
|
1-855-669-9658
|
|
|
|
Conference
Number
|
10153254
|
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended
March 31, 2021 included herein ("Supplemental Information"),
is available in the Investors section on Centerspace's website at
www.centerspacehomes.com or by calling Investor Relations at
701-837-7104. 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 March 31, 2021,
Centerspace owned 68 apartment communities consisting of
12,168 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
Centerspace was named a Top Workplace for 2020 by the
Minneapolis Star Tribune. For more information, please visit
www.centerspacehomes.com.
Forward-Looking Statements
Certain statements in this press release and the accompanying
Supplemental Operating and Financial Data are based on the
company's current expectations and assumptions, and are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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. Such risks, uncertainties, and other
factors that might cause such differences include, but are not
limited to those risks and uncertainties detailed from time to time
in Centerspace's filings with the Securities and Exchange
Commission, including the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Risk Factors"
contained in its Annual Report on Form 10-K for the year ended
December 31, 2020, in its subsequent quarterly reports on
Form 10-Q, and in other public reports. The company assumes no
obligation to update or supplement forward-looking statements that
become untrue due to subsequent events.
Contact Information
Investor Relations
Emily Miller
Phone: 701-837-7104
E-mail: IR@centerspacehomes.com
Marketing & Media
Kelly Weber
Phone: 701-837-7104
kweber@centerspacehomes.com
Common Share Data
(NYSE: CSR)
|
|
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
High closing
price
|
|
$
|
73.42
|
|
|
$
|
74.55
|
|
|
$
|
73.53
|
|
|
$
|
76.82
|
|
|
$
|
84.68
|
|
Low closing
price
|
|
$
|
68.00
|
|
|
$
|
65.79
|
|
|
$
|
61.87
|
|
|
$
|
44.36
|
|
|
$
|
52.55
|
|
Average closing
price
|
|
$
|
71.37
|
|
|
$
|
70.30
|
|
|
$
|
70.15
|
|
|
$
|
63.91
|
|
|
$
|
71.62
|
|
Closing price at end
of quarter
|
|
$
|
68.00
|
|
|
$
|
70.64
|
|
|
$
|
65.17
|
|
|
$
|
70.49
|
|
|
$
|
55.00
|
|
Common share
distributions – annualized
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
|
$
|
2.80
|
|
Closing dividend
yield – annualized
|
|
4.1
|
%
|
|
4.0
|
%
|
|
4.3
|
%
|
|
4.0
|
%
|
|
5.1
|
%
|
Closing common shares
outstanding (thousands)
|
|
13,220
|
|
|
13,027
|
|
|
12,976
|
|
|
12,827
|
|
|
12,164
|
|
Closing limited
partnership units outstanding (thousands)
|
|
950
|
|
|
977
|
|
|
1,018
|
|
|
1,022
|
|
|
1,044
|
|
Closing market value
of outstanding common shares, plus imputed closing market value of
outstanding limited partnership units (thousands)
|
|
$
|
963,560
|
|
|
$
|
989,243
|
|
|
$
|
911,989
|
|
|
$
|
976,216
|
|
|
$
|
726,440
|
|
CENTERSPACE
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in
thousands)
|
|
|
|
Three Months Ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
REVENUE
|
|
$
|
46,648
|
|
|
$
|
45,540
|
|
|
$
|
44,138
|
|
|
$
|
43,910
|
|
|
$
|
44,406
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses, excluding real estate taxes
|
|
13,449
|
|
|
12,668
|
|
|
13,129
|
|
|
12,360
|
|
|
13,468
|
|
Real estate
taxes
|
|
5,792
|
|
|
5,256
|
|
|
5,402
|
|
|
5,410
|
|
|
5,465
|
|
Property management
expense
|
|
1,767
|
|
|
1,460
|
|
|
1,442
|
|
|
1,345
|
|
|
1,554
|
|
Casualty
loss
|
|
101
|
|
|
331
|
|
|
91
|
|
|
913
|
|
|
327
|
|
Depreciation/amortization
|
|
19,992
|
|
|
20,282
|
|
|
18,995
|
|
|
18,156
|
|
|
18,160
|
|
General and
administrative expenses
|
|
3,906
|
|
|
3,733
|
|
|
3,077
|
|
|
3,202
|
|
|
3,428
|
|
TOTAL
EXPENSES
|
|
$
|
45,007
|
|
|
$
|
43,730
|
|
|
$
|
42,136
|
|
|
$
|
41,386
|
|
|
$
|
42,402
|
|
Operating
income
|
|
1,641
|
|
|
1,810
|
|
|
2,002
|
|
|
2,524
|
|
|
2,004
|
|
Interest
expense
|
|
(7,231)
|
|
|
(6,903)
|
|
|
(6,771)
|
|
|
(6,940)
|
|
|
(6,911)
|
|
Loss on extinguishment
of debt
|
|
—
|
|
|
(2)
|
|
|
(4)
|
|
|
(17)
|
|
|
—
|
|
Interest and other
income (loss)
|
|
431
|
|
|
406
|
|
|
281
|
|
|
538
|
|
|
(2,777)
|
|
Income (loss) before
gain (loss) on sale of real estate and other
investments, and gain (loss) on litigation settlement
|
|
(5,159)
|
|
|
(4,689)
|
|
|
(4,492)
|
|
|
(3,895)
|
|
|
(7,684)
|
|
Gain (loss) on sale of
real estate and other investments
|
|
—
|
|
|
17
|
|
|
25,676
|
|
|
(190)
|
|
|
—
|
|
Net income
(loss)
|
|
$
|
(5,159)
|
|
|
$
|
(4,672)
|
|
|
$
|
21,184
|
|
|
$
|
(4,085)
|
|
|
$
|
(7,684)
|
|
Dividends to
preferred unitholders
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
|
(160)
|
|
Net (income) loss
attributable to noncontrolling interest – Operating
Partnership
|
|
469
|
|
|
460
|
|
|
(1,387)
|
|
|
447
|
|
|
692
|
|
Net (income) loss
attributable to noncontrolling interests – consolidated
real estate entities
|
|
(17)
|
|
|
(6)
|
|
|
(8)
|
|
|
(5)
|
|
|
145
|
|
Net income (loss)
attributable to controlling interests
|
|
(4,867)
|
|
|
(4,378)
|
|
|
19,629
|
|
|
(3,803)
|
|
|
(7,007)
|
|
Dividends to
preferred shareholders
|
|
(1,607)
|
|
|
(1,607)
|
|
|
(1,607)
|
|
|
(1,609)
|
|
|
(1,705)
|
|
Discount (premium) on
redemption of preferred shares
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
25
|
|
|
273
|
|
NET INCOME (LOSS)
AVAILABLE TO COMMON
SHAREHOLDERS
|
|
$
|
(6,474)
|
|
|
$
|
(5,985)
|
|
|
$
|
18,021
|
|
|
$
|
(5,387)
|
|
|
$
|
(8,439)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Basic
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share – basic
|
|
$
|
(0.49)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.40
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.69)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data -
Diluted
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share – diluted
|
|
$
|
(0.49)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.38
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.69)
|
|
CENTERSPACE
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
(in
thousands)
|
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Real estate
investments
|
|
|
|
|
|
|
|
|
|
|
Property
owned
|
|
$
|
1,883,407
|
|
|
$
|
1,812,557
|
|
|
$
|
1,805,390
|
|
|
$
|
1,694,033
|
|
|
$
|
1,687,436
|
|
Less accumulated
depreciation
|
|
(408,014)
|
|
|
(399,249)
|
|
|
(380,392)
|
|
|
(383,917)
|
|
|
(366,307)
|
|
|
|
1,475,393
|
|
|
1,413,308
|
|
|
1,424,998
|
|
|
1,310,116
|
|
|
1,321,129
|
|
Unimproved
land
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,376
|
|
Mortgage loans
receivable
|
|
30,107
|
|
|
24,661
|
|
|
17,986
|
|
|
10,961
|
|
|
16,775
|
|
Total real estate
investments
|
|
1,505,500
|
|
|
1,437,969
|
|
|
1,442,984
|
|
|
1,321,077
|
|
|
1,339,280
|
|
Cash and cash
equivalents
|
|
10,816
|
|
|
392
|
|
|
16,804
|
|
|
52,714
|
|
|
26,338
|
|
Restricted
cash
|
|
1,610
|
|
|
6,918
|
|
|
2,199
|
|
|
2,535
|
|
|
2,344
|
|
Other
assets
|
|
18,427
|
|
|
18,904
|
|
|
16,947
|
|
|
16,484
|
|
|
21,124
|
|
TOTAL
ASSETS
|
|
$
|
1,536,353
|
|
|
$
|
1,464,183
|
|
|
$
|
1,478,934
|
|
|
$
|
1,392,810
|
|
|
$
|
1,389,086
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
53,852
|
|
|
$
|
55,609
|
|
|
$
|
58,596
|
|
|
$
|
54,883
|
|
|
$
|
52,337
|
|
Revolving line of
credit
|
|
181,544
|
|
|
152,871
|
|
|
135,000
|
|
|
63,000
|
|
|
83,000
|
|
Notes payable, net of
loan costs
|
|
319,236
|
|
|
269,246
|
|
|
269,202
|
|
|
269,155
|
|
|
269,106
|
|
Mortgages payable, net
of loan costs
|
|
293,709
|
|
|
297,074
|
|
|
313,065
|
|
|
323,705
|
|
|
328,367
|
|
TOTAL
LIABILITIES
|
|
$
|
848,341
|
|
|
$
|
774,800
|
|
|
$
|
775,863
|
|
|
$
|
710,743
|
|
|
$
|
732,810
|
|
|
|
|
|
|
|
|
|
|
|
|
SERIES D PREFERRED
UNITS
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Series C Preferred
Shares of Beneficial Interest
|
|
93,530
|
|
|
93,530
|
|
|
93,530
|
|
|
93,579
|
|
|
96,046
|
|
Common Shares of
Beneficial Interest
|
|
980,453
|
|
|
968,263
|
|
|
968,436
|
|
|
958,292
|
|
|
912,653
|
|
Accumulated
distributions in excess of net income
|
|
(443,409)
|
|
|
(427,681)
|
|
|
(412,577)
|
|
|
(421,515)
|
|
|
(407,150)
|
|
Accumulated other
comprehensive income (loss)
|
|
(12,798)
|
|
|
(15,905)
|
|
|
(17,256)
|
|
|
(18,139)
|
|
|
(17,360)
|
|
Total shareholders'
equity
|
|
$
|
617,776
|
|
|
$
|
618,207
|
|
|
$
|
632,133
|
|
|
$
|
612,217
|
|
|
$
|
584,189
|
|
Noncontrolling
interests – Operating Partnership
|
|
53,007
|
|
|
53,930
|
|
|
53,669
|
|
|
52,558
|
|
|
54,777
|
|
Noncontrolling
interests – consolidated real estate entities
|
|
669
|
|
|
686
|
|
|
709
|
|
|
732
|
|
|
750
|
|
Total
equity
|
|
$
|
671,452
|
|
|
$
|
672,823
|
|
|
$
|
686,511
|
|
|
$
|
665,507
|
|
|
$
|
639,716
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY, AND EQUITY
|
|
$
|
1,536,353
|
|
|
$
|
1,464,183
|
|
|
$
|
1,478,934
|
|
|
$
|
1,392,810
|
|
|
$
|
1,389,086
|
|
CENTERSPACE
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATIONS (unaudited)
This release contains certain non-GAAP financial measures. The
non-GAAP financial measures should not be considered a substitute
for operating results determined in accordance with accounting
principles generally accepted in the
United States of America ("GAAP"). The definitions and
calculations of these non-GAAP financial measures, as calculated by
us, may not be comparable to non-GAAP financial measures reported
by other REITs that do not define each of the non-GAAP financial
measures exactly as Centerspace does.
The company provides certain information on a same-store and
non-same-store basis. Same-store apartment communities are owned or
in service for substantially all of the periods being compared,
and, in the case of newly-constructed properties, have achieved a
target level of physical occupancy of 90%. On the first day of each
calendar year, Centerspace determines the composition of its
same-store pool for that year as well as adjusts the previous year,
which allows us to evaluate full period-over-period operating
comparisons for existing apartment communities and their
contribution to net income. The company believes that measuring
performance on a same-store basis is useful to investors because it
enables evaluation of how a fixed pool of its communities are
performing year-over-year. Centerspace uses this measure to assess
whether or not the company has been successful in increasing NOI,
renewing the leases on existing residents, controlling operating
costs, and making prudent capital improvements.
Reconciliation of Operating Income to Net Operating
Income
Net operating income, or NOI, is a non-GAAP financial measure
which the company defines as total real estate revenues less
property operating expenses, including real estate taxes.
Centerspace believes that NOI is an important supplemental measure
of operating performance for real estate because it provides a
measure of operations that is unaffected by depreciation,
amortization, financing, property management overhead, casualty
losses, and general and administrative expenses. NOI does not
represent cash generated by operating activities in accordance with
GAAP and should not be considered an alternative to net income, net
income available for common shareholders, or cash flow from
operating activities as a measure of financial performance.
|
(in thousands, except percentages)
|
|
Three Months
Ended
|
|
|
Sequential
|
|
Year-Over-Year
|
|
3/31/2021
|
|
12/31/2020
|
|
3/31/2020
|
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
1,641
|
|
|
$
|
1,810
|
|
|
$
|
2,004
|
|
|
|
$
|
(169)
|
|
|
(9.3)
|
%
|
|
$
|
(363)
|
|
|
(18.1)
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management
expenses
|
1,767
|
|
|
1,460
|
|
|
1,554
|
|
|
|
307
|
|
|
21.0
|
%
|
|
213
|
|
|
13.7
|
%
|
Casualty
loss
|
101
|
|
|
331
|
|
|
327
|
|
|
|
(230)
|
|
|
(69.5)
|
%
|
|
(226)
|
|
|
(69.1)
|
%
|
Depreciation and
amortization
|
19,992
|
|
|
20,282
|
|
|
18,160
|
|
|
|
(290)
|
|
|
(1.4)
|
%
|
|
1,832
|
|
|
10.1
|
%
|
General and
administrative expenses
|
3,906
|
|
|
3,733
|
|
|
3,428
|
|
|
|
173
|
|
|
4.6
|
%
|
|
478
|
|
|
13.9
|
%
|
Net operating
income
|
$
|
27,407
|
|
|
$
|
27,616
|
|
|
$
|
25,473
|
|
|
|
$
|
(209)
|
|
|
(0.8)
|
%
|
|
$
|
1,934
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
$
|
41,743
|
|
|
$
|
41,831
|
|
|
$
|
41,573
|
|
|
|
$
|
(88)
|
|
|
(0.2)
|
%
|
|
$
|
170
|
|
|
0.4
|
%
|
Non-same-store
|
4,240
|
|
|
3,104
|
|
|
272
|
|
|
|
1,136
|
|
|
36.6
|
%
|
|
3,968
|
|
|
1,458.8
|
%
|
Other
properties
|
650
|
|
|
571
|
|
|
972
|
|
|
|
79
|
|
|
13.8
|
%
|
|
(322)
|
|
|
(33.1)
|
%
|
Dispositions
|
15
|
|
|
34
|
|
|
1,589
|
|
|
|
(19)
|
|
|
(55.9)
|
%
|
|
(1,574)
|
|
|
(99.1)
|
%
|
Total
|
46,648
|
|
|
45,540
|
|
|
44,406
|
|
|
|
1,108
|
|
|
2.4
|
%
|
|
2,242
|
|
|
5.0
|
%
|
Property operating
expenses, including real estate
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
17,385
|
|
|
16,485
|
|
|
17,540
|
|
|
|
900
|
|
|
5.5
|
%
|
|
(155)
|
|
|
(0.9)
|
%
|
Non-same-store
|
1,496
|
|
|
1,156
|
|
|
120
|
|
|
|
340
|
|
|
29.4
|
%
|
|
1,376
|
|
|
1,146.7
|
%
|
Other
properties
|
289
|
|
|
249
|
|
|
278
|
|
|
|
40
|
|
|
16.1
|
%
|
|
11
|
|
|
4.0
|
%
|
Dispositions
|
71
|
|
|
34
|
|
|
995
|
|
|
|
37
|
|
|
108.8
|
%
|
|
(924)
|
|
|
(92.9)
|
%
|
Total
|
19,241
|
|
|
17,924
|
|
|
18,933
|
|
|
|
1,317
|
|
|
7.3
|
%
|
|
308
|
|
|
1.6
|
%
|
Net operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
|
24,358
|
|
|
25,346
|
|
|
24,033
|
|
|
|
(988)
|
|
|
(3.9)
|
%
|
|
325
|
|
|
1.4
|
%
|
Non-same-store
|
2,744
|
|
|
1,948
|
|
|
152
|
|
|
|
796
|
|
|
40.9
|
%
|
|
2,592
|
|
|
1,705.3
|
%
|
Other
properties
|
361
|
|
|
322
|
|
|
694
|
|
|
|
39
|
|
|
12.1
|
%
|
|
(333)
|
|
|
(48.0)
|
%
|
Dispositions
|
(56)
|
|
|
—
|
|
|
594
|
|
|
|
(56)
|
|
|
(100.0)
|
%
|
|
(650)
|
|
|
(109.4)
|
%
|
Total
|
$
|
27,407
|
|
|
$
|
27,616
|
|
|
$
|
25,473
|
|
|
|
$
|
(209)
|
|
|
(0.8)
|
%
|
|
$
|
1,934
|
|
|
7.6
|
%
|
Reconciliation of Same-Store Controllable Expenses to Total
Property Operating Expenses, Including Real Estate Taxes
Same-store controllable expenses exclude real estate taxes and
insurance, in order to provide a measure of expenses that are
within management's control, and is used for the purposes of
budgeting, business planning, and performance evaluation. This is a
non-GAAP financial measure and should not be considered an
alternative to total expenses or total property operating
expenses.
|
(in thousands, except percentages)
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
Controllable
expenses
|
|
|
|
|
|
|
|
On-site
compensation(1)
|
$
|
4,553
|
|
|
$
|
4,697
|
|
|
$
|
(144)
|
|
|
(3.1)
|
%
|
Repairs and
maintenance
|
2,283
|
|
|
2,386
|
|
|
(103)
|
|
|
(4.3)
|
%
|
Utilities
|
3,083
|
|
|
3,054
|
|
|
29
|
|
|
0.9
|
%
|
Administrative and
marketing
|
901
|
|
|
908
|
|
|
(7)
|
|
|
(0.8)
|
%
|
Total
|
$
|
10,820
|
|
|
$
|
11,045
|
|
|
$
|
(225)
|
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
Non-controllable
expenses
|
|
|
|
|
|
|
|
Real estate
taxes
|
$
|
5,094
|
|
|
$
|
5,111
|
|
|
$
|
(17)
|
|
|
(0.3)
|
%
|
Insurance
|
1,471
|
|
|
1,384
|
|
|
87
|
|
|
6.3
|
%
|
Total
|
$
|
6,565
|
|
|
$
|
6,495
|
|
|
$
|
70
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
Property operating
expenses, including real estate taxes - non-same-store
|
$
|
1,496
|
|
|
$
|
120
|
|
|
$
|
1,376
|
|
|
1,146.7
|
%
|
Property operating
expenses, including real estate taxes - other properties
|
289
|
|
|
278
|
|
|
11
|
|
|
4.0
|
%
|
Property operating
expenses, including real estate taxes - dispositions
|
71
|
|
|
995
|
|
|
(924)
|
|
|
(92.9)
|
%
|
Total property
operating expenses, including real estate taxes
|
$
|
19,241
|
|
|
$
|
18,933
|
|
|
$
|
308
|
|
|
1.6
|
%
|
______________________________
|
(1)
|
On-site compensation
for administration, leasing, and maintenance personnel.
|
Reconciliation of Net Income (Loss) Available to Common
Shareholders to Funds From Operations and Core Funds From
Operations
Centerspace believes that FFO, which is a non-GAAP
financial measure used as a standard supplemental measure for
equity real estate investment trusts, is helpful to investors in
understanding its operating performance, primarily because its
calculation does not assume that the value of real estate assets
diminishes predictably over time, as implied by the historical cost
convention of GAAP and the recording of depreciation.
Centerspace uses the definition of FFO adopted by the National
Association of Real Estate Investment Trusts, Inc. ("Nareit").
Nareit defines FFO as net income or loss calculated in accordance
with GAAP, excluding:
- depreciation and amortization related to real estate;
- gains and losses from the sale of certain real estate assets;
and
- impairment write-downs of certain real estate assets and
investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity.
The exclusion in Nareit's definition of FFO of impairment
write-downs and gains and losses from the sale of real estate
assets helps to identify the operating results of the long-term
assets that form the base of the company's investments, and assists
management and investors in comparing those operating results
between periods.
Due to the limitations of the Nareit FFO definition, Centerspace
has made certain interpretations in applying this definition. The
company believes that all such interpretations not specifically
identified in the Nareit definition are consistent with this
definition. Nareit's FFO White Paper 2018 Restatement clarified
that impairment write-downs of land related to a REIT''s main
business are excluded from FFO and a REIT has the option to exclude
impairment write-downs of assets that are incidental to its main
business.
While FFO is widely used by Centerspace as a primary performance
metric, not all real estate companies use the same definition of
FFO or calculate FFO in the same way. Accordingly, FFO presented
here is not necessarily comparable to FFO presented by other real
estate companies. FFO should not be considered as an alternative to
net income or any other GAAP measurement of performance, but rather
should be considered as an additional, supplemental measure. FFO
also does not represent cash generated from operating activities in
accordance with GAAP, nor is it indicative of funds available to
fund all cash flow needs, including the ability to service
indebtedness or make distributions to shareholders.
Core Funds from Operations ("Core FFO") is FFO as adjusted for
non-routine items or items not considered core to business
operations. By further adjusting for items that are not considered
part of core business operations, the company believes that Core
FFO provides investors with additional information to compare core
operating and financial performance between periods. Core FFO
should not be considered as an alternative to net income, or any
other GAAP measurement of performance, but rather should be
considered an additional supplemental measure. Core FFO also does
not represent cash generated from operating activities in
accordance with GAAP, nor is it indicative of funds available to
fund the company's cash needs, including its ability to service
indebtedness or make distributions to shareholders. Core FFO is a
non-GAAP and non-standardized financial measure that may be
calculated differently by other REITs and should not be considered
a substitute for operating results determined in accordance with
GAAP.
|
|
(in thousands, except per share
amounts)
|
|
|
Three Months Ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
Funds From
Operations
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
(6,474)
|
|
|
$
|
(5,985)
|
|
|
$
|
18,021
|
|
|
$
|
(5,387)
|
|
|
$
|
(8,439)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests – Operating Partnership
|
|
(469)
|
|
|
(460)
|
|
|
1,387
|
|
|
(447)
|
|
|
(692)
|
|
Depreciation and
amortization
|
|
19,992
|
|
|
20,282
|
|
|
18,995
|
|
|
18,156
|
|
|
18,160
|
|
Less depreciation –
non real estate
|
|
(98)
|
|
|
(87)
|
|
|
(85)
|
|
|
(88)
|
|
|
(93)
|
|
Less depreciation –
partially owned entities
|
|
(24)
|
|
|
(33)
|
|
|
(31)
|
|
|
(33)
|
|
|
(282)
|
|
(Gain) loss on sale of
real estate
|
|
—
|
|
|
(17)
|
|
|
(25,676)
|
|
|
190
|
|
|
—
|
|
FFO applicable to
common shares and Units
|
|
$
|
12,927
|
|
|
$
|
13,700
|
|
|
$
|
12,611
|
|
|
$
|
12,391
|
|
|
$
|
8,654
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
|
|
|
|
Casualty
loss (recovery)
|
|
—
|
|
|
204
|
|
|
545
|
|
|
—
|
|
|
—
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
2
|
|
|
4
|
|
|
17
|
|
|
—
|
|
Rebranding costs
|
|
—
|
|
|
402
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Technology implementation costs
|
|
413
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Gain)
loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(175)
|
|
|
3,553
|
|
(Discount) premium on redemption of preferred shares
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(25)
|
|
|
(273)
|
|
Core FFO applicable to
common shares and Units
|
|
$
|
13,340
|
|
|
$
|
14,308
|
|
|
$
|
13,161
|
|
|
$
|
12,208
|
|
|
$
|
11,934
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
applicable to common shares and Units
|
|
$
|
12,927
|
|
|
$
|
13,700
|
|
|
$
|
12,611
|
|
|
$
|
12,391
|
|
|
$
|
8,654
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
Funds from operations
applicable to common shares and Units - diluted
|
|
$
|
13,087
|
|
|
$
|
13,860
|
|
|
$
|
12,771
|
|
|
$
|
12,551
|
|
|
$
|
8,814
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations applicable to common shares and Units
|
|
$
|
13,340
|
|
|
$
|
14,308
|
|
|
$
|
13,161
|
|
|
$
|
12,208
|
|
|
$
|
11,934
|
|
Dividends to
preferred unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
Core funds from
operations applicable to common shares and Units -
diluted
|
|
$
|
13,500
|
|
|
$
|
14,468
|
|
|
$
|
13,321
|
|
|
$
|
12,368
|
|
|
$
|
12,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share and Unit - diluted
|
|
$
|
(0.49)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.38
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.69)
|
|
FFO per share and
Unit - diluted
|
|
$
|
0.92
|
|
|
$
|
0.97
|
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
$
|
0.66
|
|
Core FFO per share
and Unit - diluted
|
|
$
|
0.95
|
|
|
$
|
1.02
|
|
|
$
|
0.94
|
|
|
$
|
0.91
|
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares and Units - diluted
|
|
14,282
|
|
|
14,222
|
|
|
14,143
|
|
|
13,558
|
|
|
13,401
|
|
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, gain/loss
on extinguishment of debt, and gain/loss from involuntary
conversion. The company considers Adjusted EBITDA to be an
appropriate supplemental performance measure because it permits
investors to view income from operations without the effect of
depreciation, the cost of debt, or non-operating gains and losses.
Adjusted EBITDA is a non-GAAP financial measure and should not be
considered a substitute for operating results determined in
accordance with GAAP.
|
|
(in thousands)
|
|
|
Three Months Ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
(4,867)
|
|
|
$
|
(4,378)
|
|
|
$
|
19,629
|
|
|
$
|
(3,803)
|
|
|
$
|
(7,007)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Dividends to preferred
unitholders
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
|
160
|
|
Noncontrolling
interests – Operating Partnership
|
|
(469)
|
|
|
(460)
|
|
|
1,387
|
|
|
(447)
|
|
|
(692)
|
|
Income (loss) before
noncontrolling interests – Operating Partnership
|
|
$
|
(5,176)
|
|
|
$
|
(4,678)
|
|
|
$
|
21,176
|
|
|
$
|
(4,090)
|
|
|
$
|
(7,539)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
7,216
|
|
|
6,888
|
|
|
6,756
|
|
|
6,926
|
|
|
6,764
|
|
Loss on extinguishment
of debt
|
|
—
|
|
|
2
|
|
|
4
|
|
|
17
|
|
|
—
|
|
Depreciation/amortization related to real estate
investments
|
|
19,969
|
|
|
20,250
|
|
|
18,964
|
|
|
18,123
|
|
|
17,878
|
|
Casualty loss
(recovery)
|
|
—
|
|
|
204
|
|
|
545
|
|
|
—
|
|
|
—
|
|
Interest
income
|
|
(407)
|
|
|
(328)
|
|
|
(256)
|
|
|
(331)
|
|
|
(597)
|
|
(Gain) loss on sale of
real estate and other investments
|
|
—
|
|
|
(17)
|
|
|
(25,676)
|
|
|
190
|
|
|
—
|
|
Technology
implementation costs
|
|
413
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Gain) loss on
marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(175)
|
|
|
3,553
|
|
Adjusted
EBITDA
|
|
$
|
22,015
|
|
|
$
|
22,321
|
|
|
$
|
21,513
|
|
|
$
|
20,660
|
|
|
$
|
20,059
|
|
CENTERSPACE
DEBT
ANALYSIS
(in
thousands)
|
|
Debt Maturity
Schedule
Annual
Expirations
|
|
|
|
Future Maturities of Debt
|
|
|
Secured
Fixed
Debt
|
|
Unsecured
Fixed
Debt(1)
|
|
Unsecured
Variable
Debt
|
|
Total
Debt
|
|
% of
Total Debt
|
|
Weighted
Average
Interest
Rate(2)
|
|
2021
(remainder)
|
|
$
|
18,091
|
|
|
$
|
—
|
|
|
$
|
1,544
|
|
|
$
|
19,635
|
|
|
2.5
|
%
|
|
5.40
|
%
|
|
2022
|
|
33,269
|
|
|
50,000
|
|
|
130,000
|
|
|
213,269
|
|
|
26.8
|
%
|
|
2.16
|
%
|
|
2023
|
|
43,442
|
|
|
—
|
|
|
—
|
|
|
43,442
|
|
|
5.4
|
%
|
|
4.02
|
%
|
|
2024
|
|
—
|
|
|
70,000
|
|
|
—
|
|
|
70,000
|
|
|
8.8
|
%
|
|
3.63
|
%
|
|
2025
|
|
32,717
|
|
|
75,000
|
|
|
—
|
|
|
107,717
|
|
|
13.5
|
%
|
|
4.30
|
%
|
|
Thereafter
|
|
167,482
|
|
|
175,000
|
|
|
—
|
|
|
342,482
|
|
|
43.0
|
%
|
|
3.58
|
%
|
Total debt
|
|
$
|
295,001
|
|
|
$
|
370,000
|
|
|
$
|
131,544
|
|
|
$
|
796,545
|
|
|
100.0
|
%
|
|
3.37
|
%
|
______________________________
|
(1)
|
Term loans have
variable interest rates that are fixed with interest rate swaps and
$50.0 million of the variable interest, line of credit is fixed
with an interest rate swap.
|
(2)
|
Weighted average
interest rate of debt that matures during the year, including the
effect of interest rate swaps on the term loans and line of
credit.
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
Debt Balances
Outstanding
|
|
|
|
|
|
|
|
|
|
|
Secured fixed
rate
|
|
$
|
295,001
|
|
|
$
|
298,445
|
|
|
$
|
314,511
|
|
|
$
|
325,230
|
|
|
$
|
329,988
|
|
Unsecured fixed rate
line of credit(1)
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
Unsecured variable
rate line of credit
|
|
131,544
|
|
|
102,871
|
|
|
85,000
|
|
|
13,000
|
|
|
33,000
|
|
Unsecured term
loans
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
|
145,000
|
|
Unsecured senior
notes
|
|
175,000
|
|
|
125,000
|
|
|
125,000
|
|
|
125,000
|
|
|
125,000
|
|
Debt total
|
|
$
|
796,545
|
|
|
$
|
721,316
|
|
|
$
|
719,511
|
|
|
$
|
658,230
|
|
|
$
|
682,988
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage debt
weighted average interest rate
|
|
3.92
|
%
|
|
3.93
|
%
|
|
3.99
|
%
|
|
4.01
|
%
|
|
4.01
|
%
|
Lines of credit rate
(rate with swap)
|
|
2.18
|
%
|
|
2.35
|
%
|
|
3.35
|
%
|
|
2.97
|
%
|
|
3.18
|
%
|
Term loan rate (rate
with swap)
|
|
4.11
|
%
|
|
4.18
|
%
|
|
4.18
|
%
|
|
4.12
|
%
|
|
4.13
|
%
|
Senior notes
rate
|
|
3.47
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
|
3.78
|
%
|
Total debt
|
|
3.37
|
%
|
|
3.62
|
%
|
|
3.68
|
%
|
|
3.87
|
%
|
|
3.92
|
%
|
______________________________
|
(1)
|
A portion of the
primary line of credit is fixed through an interest rate
swap.
|
CENTERSPACE
CAPITAL
ANALYSIS
(in thousands,
except per share and unit amounts)
|
|
|
|
Three Months Ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
Equity
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
13,220
|
|
|
13,027
|
|
|
12,976
|
|
|
12,827
|
|
|
12,164
|
|
Operating partnership
units outstanding
|
|
950
|
|
|
977
|
|
|
1,018
|
|
|
1,022
|
|
|
1,044
|
|
Total common shares
and units outstanding
|
|
14,170
|
|
|
14,004
|
|
|
13,994
|
|
|
13,849
|
|
|
13,208
|
|
Market price per
common share (closing price at end of period)
|
|
$
|
68.00
|
|
|
$
|
70.64
|
|
|
$
|
65.17
|
|
|
$
|
70.49
|
|
|
$
|
55.00
|
|
Equity
capitalization-common shares and units
|
|
$
|
963,560
|
|
|
$
|
989,243
|
|
|
$
|
911,989
|
|
|
$
|
976,216
|
|
|
$
|
726,440
|
|
Recorded book value of
preferred shares
|
|
$
|
93,530
|
|
|
$
|
93,530
|
|
|
$
|
93,530
|
|
|
$
|
93,579
|
|
|
$
|
96,046
|
|
Total equity
capitalization
|
|
$
|
1,057,090
|
|
|
$
|
1,082,773
|
|
|
$
|
1,005,519
|
|
|
$
|
1,069,795
|
|
|
$
|
822,486
|
|
|
|
|
|
|
|
|
|
|
|
|
Series D Preferred
Units
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
$
|
16,560
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Capitalization
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
796,545
|
|
|
$
|
721,317
|
|
|
$
|
719,511
|
|
|
$
|
658,230
|
|
|
$
|
682,988
|
|
Total
capitalization
|
|
$
|
1,870,195
|
|
|
$
|
1,820,650
|
|
|
$
|
1,741,590
|
|
|
$
|
1,744,585
|
|
|
$
|
1,522,034
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to total
capitalization(1)
|
|
43.1
|
%
|
|
39.6
|
%
|
|
41.3
|
%
|
|
37.7
|
%
|
|
44.9
|
%
|
______________________________
|
(1)
|
Total debt to total
market capitalization is total debt from the balance sheet divided
by the sum of total debt from the balance sheet, market value of
common shares and operating partnership units, and book value of
Series C preferred shares and Series D preferred units outstanding
at the end of the period.
|
|
|
Three Months Ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
Debt service coverage
ratio(1)
|
|
2.53
|
x
|
|
2.73
|
x
|
|
2.65
|
x
|
|
2.48
|
x
|
|
2.42
|
x
|
Adjusted
EBITDA/Interest expense plus preferred distributions and
principal amortization
|
|
2.14
|
x
|
|
2.28
|
x
|
|
2.21
|
x
|
|
2.05
|
x
|
|
1.97
|
x
|
Net debt/Adjusted
EBITDA(2)
|
|
8.92
|
x
|
|
8.07
|
x
|
|
8.17
|
x
|
|
7.33
|
x
|
|
8.18
|
x
|
Net debt and
preferred equity/Adjusted EBITDA(2)
|
|
10.17
|
x
|
|
9.31
|
x
|
|
9.45
|
x
|
|
8.66
|
x
|
|
9.59
|
x
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
Data
|
|
|
|
|
|
|
|
|
|
|
Common shares and
Units outstanding at record date
|
|
14,171
|
|
|
14,004
|
|
|
13,994
|
|
|
13,849
|
|
|
13,208
|
|
Total common
distribution declared
|
|
$
|
9,919
|
|
|
$
|
9,803
|
|
|
$
|
9,796
|
|
|
$
|
9,694
|
|
|
$
|
9,245
|
|
Common distribution
per share and Unit
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
Payout ratio (Core
FFO per diluted share and unit basis)(3)
|
|
73.7
|
%
|
|
68.6
|
%
|
|
74.5
|
%
|
|
76.9
|
%
|
|
77.8
|
%
|
______________________________
|
(1)
|
Debt service coverage
ratio is computed by dividing Adjusted EBITDA by interest expense
and principal amortization. This term is a non-GAAP financial
measure and should not be considered a substitute for operating
results determined in accordance with GAAP. Refer to the Adjusted
EBITDA definition included within the Non-GAAP Financial Measures
and Reconciliations section.
|
(2)
|
Net debt is the total
debt balance less cash and cash equivalents and net tax deferred
exchange proceeds (included within restricted cash). Adjusted
EBITDA is annualized for periods less than one year. Net debt and
adjusted EBITDA are non-GAAP financial measures and should not be
considered a substitute for operating results determined in
accordance with GAAP. Refer to the Adjusted EBITDA definition
included within the Non-GAAP Financial Measures and Reconciliations
section.
|
(3)
|
Payout ratio (Core
FFO per diluted share and unit basis) is the ratio of the current
quarterly or annual distribution rate per common share and unit
divided by quarterly or annual Core FFO per diluted share and unit.
This term is a non-GAAP financial measure and should not be
considered a substitute for operating results determined in
accordance with GAAP.
|
CENTERSPACE
SAME-STORE FIRST
QUARTER COMPARISONS
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
Q1
2021
|
|
Q1
2020
|
|
%
Change
|
|
Q1
2021
|
|
Q1
2020
|
|
%
Change
|
|
Q1
2021
|
|
Q1
2020
|
|
%
Change
|
Denver, CO
|
|
992
|
|
|
$
|
5,408
|
|
|
$
|
5,510
|
|
|
(1.9)
|
%
|
|
$
|
1,868
|
|
|
$
|
1,804
|
|
|
3.5
|
%
|
|
$
|
3,540
|
|
|
$
|
3,706
|
|
|
(4.5)
|
%
|
Minneapolis,
MN
|
|
2,355
|
|
|
10,466
|
|
|
10,768
|
|
|
(2.8)
|
%
|
|
4,431
|
|
|
4,566
|
|
|
(3.0)
|
%
|
|
6,035
|
|
|
6,202
|
|
|
(2.7)
|
%
|
North
Dakota
|
|
2,422
|
|
|
7,949
|
|
|
7,711
|
|
|
3.1
|
%
|
|
3,271
|
|
|
3,487
|
|
|
(6.2)
|
%
|
|
4,678
|
|
|
4,224
|
|
|
10.7
|
%
|
Omaha, NE
|
|
1,370
|
|
|
4,026
|
|
|
3,814
|
|
|
5.6
|
%
|
|
1,762
|
|
|
1,626
|
|
|
8.4
|
%
|
|
2,264
|
|
|
2,188
|
|
|
3.5
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
6,385
|
|
|
6,539
|
|
|
(2.4)
|
%
|
|
2,993
|
|
|
2,823
|
|
|
6.0
|
%
|
|
3,392
|
|
|
3,716
|
|
|
(8.7)
|
%
|
St. Cloud,
MN
|
|
1,192
|
|
|
3,656
|
|
|
3,611
|
|
|
1.2
|
%
|
|
1,635
|
|
|
1,756
|
|
|
(6.9)
|
%
|
|
2,021
|
|
|
1,855
|
|
|
8.9
|
%
|
Other
Markets
|
|
1,223
|
|
|
3,853
|
|
|
3,620
|
|
|
6.4
|
%
|
|
1,425
|
|
|
1,478
|
|
|
(3.6)
|
%
|
|
2,428
|
|
|
2,142
|
|
|
13.4
|
%
|
Same-Store
Total
|
|
11,265
|
|
|
$
|
41,743
|
|
|
$
|
41,573
|
|
|
0.4
|
%
|
|
$
|
17,385
|
|
|
$
|
17,540
|
|
|
(0.9)
|
%
|
|
$
|
24,358
|
|
|
$
|
24,033
|
|
|
1.4
|
%
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy (1)
|
|
Average
Monthly
Rental Rate
(2)
|
|
Average
Monthly
Revenue per
Occupied Home (3)
|
Regions
|
|
|
Q1
2021
|
|
Q1
2020
|
|
Growth
|
|
Q1
2021
|
|
Q1
2020
|
|
%
Change
|
|
Q1
2021
|
|
Q1
2020
|
|
%
Change
|
Denver, CO
|
|
14.5
|
%
|
|
94.5
|
%
|
|
94.2
|
%
|
|
0.3
|
%
|
|
$
|
1,715
|
|
|
$
|
1,793
|
|
|
(4.4)
|
%
|
|
$
|
1,922
|
|
|
$
|
1,965
|
|
|
(2.2)
|
%
|
Minneapolis,
MN
|
|
24.8
|
%
|
|
92.9
|
%
|
|
94.3
|
%
|
|
(1.4)
|
%
|
|
1,494
|
|
|
1,485
|
|
|
0.6
|
%
|
|
1,595
|
|
|
1,616
|
|
|
(1.3)
|
%
|
North
Dakota
|
|
19.2
|
%
|
|
96.2
|
%
|
|
96.1
|
%
|
|
0.1
|
%
|
|
1,061
|
|
|
1,037
|
|
|
2.3
|
%
|
|
1,138
|
|
|
1,104
|
|
|
3.1
|
%
|
Omaha, NE
|
|
9.3
|
%
|
|
95.1
|
%
|
|
94.3
|
%
|
|
0.8
|
%
|
|
912
|
|
|
893
|
|
|
2.1
|
%
|
|
1,030
|
|
|
984
|
|
|
4.7
|
%
|
Rochester,
MN
|
|
13.9
|
%
|
|
95.2
|
%
|
|
97.1
|
%
|
|
(1.9)
|
%
|
|
1,240
|
|
|
1,239
|
|
|
0.1
|
%
|
|
1,307
|
|
|
1,312
|
|
|
(0.4)
|
%
|
St. Cloud,
MN
|
|
8.3
|
%
|
|
94.6
|
%
|
|
94.9
|
%
|
|
(0.3)
|
%
|
|
970
|
|
|
944
|
|
|
2.8
|
%
|
|
1,081
|
|
|
1,064
|
|
|
1.6
|
%
|
Other
Markets
|
|
10.0
|
%
|
|
97.7
|
%
|
|
96.2
|
%
|
|
1.5
|
%
|
|
985
|
|
|
941
|
|
|
4.7
|
%
|
|
1,075
|
|
|
1,025
|
|
|
4.9
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.9
|
%
|
|
95.3
|
%
|
|
(0.4)
|
%
|
|
$
|
1,200
|
|
|
$
|
1,190
|
|
|
0.8
|
%
|
|
$
|
1,302
|
|
|
$
|
1,291
|
|
|
0.8
|
%
|
______________________________
|
(1)
|
Weighted average
occupancy is defined as the percentage resulting from dividing
actual rental revenue by scheduled rent. Scheduled rental revenue
represents the value of all apartment homes, with occupied
apartment homes valued at contractual rates pursuant to leases and
vacant apartment homes valued at estimated market rents. When
calculating actual rents for occupied apartment homes and market
rents for vacant homes, delinquencies and concessions are not taken
into account. Market rates are determined using the currently
offered effective rates on new leases at the community and are used
as the starting point in determination of the market rates of
vacant apartment homes.
|
(2)
|
Average monthly
rental rate is scheduled rent divided by the total number of
apartment homes.
|
(3)
|
Average monthly
revenue per occupied home is defined as total rental revenues
divided by the weighted average occupied apartment homes for the
period.
|
CENTERSPACE
SAME-STORE SEQUENTIAL
QUARTER COMPARISONS
(in thousands,
except property data amounts and percentages)
|
|
|
|
Apartment
Homes
Included
|
|
Revenues
|
|
Expenses
|
|
NOI
|
Regions
|
|
|
Q1
2021
|
|
Q4
2020
|
|
%
Change
|
|
Q1
2021
|
|
Q4
2020
|
|
%
Change
|
|
Q1
2021
|
|
Q4
2020
|
|
%
Change
|
Denver, CO
|
|
992
|
|
|
$
|
5,408
|
|
|
$
|
5,399
|
|
|
0.2
|
%
|
|
$
|
1,868
|
|
|
$
|
1,635
|
|
|
14.3
|
%
|
|
$
|
3,540
|
|
|
$
|
3,764
|
|
|
(6.0)
|
%
|
Minneapolis,
MN
|
|
2,355
|
|
|
10,466
|
|
|
10,605
|
|
|
(1.3)
|
%
|
|
4,431
|
|
|
4,488
|
|
|
(1.3)
|
%
|
|
6,035
|
|
|
6,117
|
|
|
(1.3)
|
%
|
North
Dakota
|
|
2,422
|
|
|
7,949
|
|
|
8,011
|
|
|
(0.8)
|
%
|
|
3,271
|
|
|
3,070
|
|
|
6.5
|
%
|
|
4,678
|
|
|
4,941
|
|
|
(5.3)
|
%
|
Omaha, NE
|
|
1,370
|
|
|
4,026
|
|
|
3,891
|
|
|
3.5
|
%
|
|
1,762
|
|
|
1,648
|
|
|
6.9
|
%
|
|
2,264
|
|
|
2,243
|
|
|
0.9
|
%
|
Rochester,
MN
|
|
1,711
|
|
|
6,385
|
|
|
6,357
|
|
|
0.4
|
%
|
|
2,993
|
|
|
2,771
|
|
|
8.0
|
%
|
|
3,392
|
|
|
3,586
|
|
|
(5.4)
|
%
|
St. Cloud,
MN
|
|
1,192
|
|
|
3,656
|
|
|
3,656
|
|
|
—
|
|
|
1,635
|
|
|
1,602
|
|
|
2.1
|
%
|
|
2,021
|
|
|
2,054
|
|
|
(1.6)
|
%
|
Other
Markets
|
|
1,223
|
|
|
3,853
|
|
|
3,912
|
|
|
(1.5)
|
%
|
|
1,425
|
|
|
1,271
|
|
|
12.1
|
%
|
|
2,428
|
|
|
2,641
|
|
|
(8.1)
|
%
|
Same-Store
Total
|
|
11,265
|
|
|
$
|
41,743
|
|
|
$
|
41,831
|
|
|
(0.2)
|
%
|
|
$
|
17,385
|
|
|
$
|
16,485
|
|
|
5.5
|
%
|
|
$
|
24,358
|
|
|
$
|
25,346
|
|
|
(3.9)
|
%
|
|
|
% of NOI
Contribution
|
|
Weighted Average
Occupancy
|
|
Average
Monthly
Rental
Rate
|
|
Average
Monthly
Revenue per
Occupied Home
|
Regions
|
|
|
Q1
2021
|
|
Q4
2020
|
|
Growth
|
|
Q1
2021
|
|
Q4
2020
|
|
%
Change
|
|
Q1
2021
|
|
Q4
2020
|
|
%
Change
|
Denver, CO
|
|
14.5
|
%
|
|
94.5
|
%
|
|
94.3
|
%
|
|
0.2
|
%
|
|
$
|
1,715
|
|
|
$
|
1,727
|
|
|
(0.7)
|
%
|
|
$
|
1,922
|
|
|
$
|
1,924
|
|
|
(0.1)
|
%
|
Minneapolis,
MN
|
|
24.8
|
%
|
|
92.9
|
%
|
|
93.2
|
%
|
|
(0.3)
|
%
|
|
1,494
|
|
|
1,502
|
|
|
(0.5)
|
%
|
|
1,595
|
|
|
1,611
|
|
|
(1.0)
|
%
|
North
Dakota
|
|
19.2
|
%
|
|
96.2
|
%
|
|
95.8
|
%
|
|
0.4
|
%
|
|
1,061
|
|
|
1,061
|
|
|
—
|
|
|
1,138
|
|
|
1,151
|
|
|
(1.1)
|
%
|
Omaha, NE
|
|
9.3
|
%
|
|
95.1
|
%
|
|
93.8
|
%
|
|
1.3
|
%
|
|
912
|
|
|
912
|
|
|
—
|
|
|
1,030
|
|
|
1,010
|
|
|
2.0
|
%
|
Rochester,
MN
|
|
13.9
|
%
|
|
95.2
|
%
|
|
95.0
|
%
|
|
0.2
|
%
|
|
1,240
|
|
|
1,242
|
|
|
(0.2)
|
%
|
|
1,307
|
|
|
1,304
|
|
|
0.2
|
%
|
St. Cloud,
MN
|
|
8.3
|
%
|
|
94.6
|
%
|
|
94.6
|
%
|
|
—
|
|
|
970
|
|
|
971
|
|
|
(0.1)
|
%
|
|
1,081
|
|
|
1,080
|
|
|
0.1
|
%
|
Other
Markets
|
|
10.0
|
%
|
|
97.7
|
%
|
|
98.1
|
%
|
|
(0.4)
|
%
|
|
985
|
|
|
980
|
|
|
0.5
|
%
|
|
1,075
|
|
|
1,087
|
|
|
(1.1)
|
%
|
Same-Store
Total
|
|
100.0
|
%
|
|
94.9
|
%
|
|
94.7
|
%
|
|
0.2
|
%
|
|
$
|
1,200
|
|
|
$
|
1,203
|
|
|
(0.2)
|
%
|
|
$
|
1,302
|
|
|
$
|
1,307
|
|
|
(0.4)
|
%
|
CENTERSPACE
PORTFOLIO
SUMMARY(1)
|
|
|
|
Three Months
Ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
9/30/2020
|
|
6/30/2020
|
|
3/31/2020
|
Number of Apartment
Homes at Period End
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
11,265
|
|
|
10,567
|
|
|
10,567
|
|
|
11,257
|
|
|
11,257
|
|
Non-Same-Store
|
|
903
|
|
|
1,343
|
|
|
1,343
|
|
|
878
|
|
|
878
|
|
All
Communities
|
|
12,168
|
|
|
11,910
|
|
|
11,910
|
|
|
12,135
|
|
|
12,135
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly
Rental Rate(2)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,200
|
|
|
$
|
1,177
|
|
|
$
|
1,178
|
|
|
$
|
1,142
|
|
|
$
|
1,135
|
|
Non-Same-Store
|
|
1,584
|
|
|
1,599
|
|
|
1,597
|
|
|
1,594
|
|
|
1,572
|
|
All
Communities
|
|
$
|
1,229
|
|
|
$
|
1,225
|
|
|
$
|
1,210
|
|
|
$
|
1,175
|
|
|
$
|
1,163
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly
Revenue per Occupied Apartment Home(3)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
$
|
1,302
|
|
|
$
|
1,282
|
|
|
$
|
1,271
|
|
|
$
|
1,232
|
|
|
$
|
1,237
|
|
Non-Same-Store
|
|
1,705
|
|
|
1,708
|
|
|
1,729
|
|
|
1,681
|
|
|
1,658
|
|
All
Communities
|
|
$
|
1,332
|
|
|
$
|
1,330
|
|
|
$
|
1,307
|
|
|
$
|
1,264
|
|
|
$
|
1,263
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Occupancy(4)
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
94.9
|
%
|
|
95.0
|
%
|
|
94.4
|
%
|
|
94.6
|
%
|
|
95.4
|
%
|
Non-Same-Store
|
|
91.8
|
%
|
|
92.3
|
%
|
|
93.9
|
%
|
|
93.9
|
%
|
|
93.3
|
%
|
All
Communities
|
|
94.6
|
%
|
|
94.6
|
%
|
|
94.3
|
%
|
|
94.5
|
%
|
|
95.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses as
a % of Scheduled Rent
|
|
|
|
|
|
|
|
|
|
|
Same-Store
|
|
42.9
|
%
|
|
41.2
|
%
|
|
43.4
|
%
|
|
41.5
|
%
|
|
45.0
|
%
|
Non-Same-Store
|
|
34.9
|
%
|
|
35.3
|
%
|
|
39.7
|
%
|
|
36.1
|
%
|
|
37.0
|
%
|
All
Communities
|
|
42.1
|
%
|
|
40.3
|
%
|
|
43.0
|
%
|
|
41.0
|
%
|
|
44.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Expenditures per Apartment Home – Same-Store
|
|
$
|
131
|
|
|
$
|
326
|
|
|
$
|
293
|
|
|
$
|
262
|
|
|
$
|
151
|
|
______________________________
|
(1)
|
Previously reported
amounts are not revised for changes in the composition of the
same-store properties pool.
|
(2)
|
Average monthly
rental rate is scheduled rent divided by the total number of
apartment homes. Scheduled rental revenue represents the value of
all apartment homes, with occupied apartment homes valued at
contractual rates pursuant to leases and vacant apartment homes
valued at estimated market rents. When calculating actual rents for
occupied apartment homes and market rents for vacant homes,
delinquencies and concessions are not taken into account. Market
rates are determined using the currently offered effective rates on
new leases at the community and are used as the starting point in
determination of the market rates of vacant apartment
homes.
|
(3)
|
Average monthly
revenue per occupied home is defined as total rental revenues
divided by the weighted average occupied apartment homes for the
period.
|
(4)
|
Weighted average
occupancy is the percentage resulting from dividing actual rental
revenue by scheduled rent. The company believes that weighted
average occupancy is a meaningful measure of occupancy because it
considers the value of each vacant unit at its estimated market
rate. Weighted average occupancy may not completely reflect
short-term trends in physical occupancy and the calculation of
weighted average occupancy may not be comparable to that disclosed
by other REITs.
|
CENTERSPACE
CAPITAL
EXPENDITURES
($ in thousands,
except per home amounts)
|
|
|
|
Three Months
Ended
|
|
|
3/31/2021
|
|
3/31/2020
|
Total Same-Store
Apartment Homes
|
|
11,263
|
|
|
11,263
|
|
|
|
|
|
|
|
|
|
|
|
Building -
Exterior
|
|
$
|
495
|
|
|
$
|
192
|
|
Building -
Interior
|
|
61
|
|
|
135
|
|
Mechanical,
Electrical, & Plumbing
|
|
121
|
|
|
285
|
|
Furniture &
Equipment
|
|
30
|
|
|
103
|
|
Landscaping &
Grounds
|
|
73
|
|
|
97
|
|
Turnover
|
|
699
|
|
|
643
|
|
Capital
Expenditures - Same-Store
|
|
$
|
1,479
|
|
|
$
|
1,455
|
|
Capital
Expenditures per Apartment Home - Same-Store
|
|
$
|
131
|
|
|
$
|
129
|
|
|
|
|
|
|
Value Add
|
|
$
|
2,631
|
|
|
$
|
2,031
|
|
Total Capital Spend
- Same-Store
|
|
$
|
4,110
|
|
|
$
|
3,486
|
|
Total Capital Spend
per Apartment Home - Same-Store
|
|
$
|
365
|
|
|
$
|
310
|
|
|
|
|
|
|
All Properties -
Weighted Average Apartment Homes
|
|
12,166
|
|
|
11,324
|
|
|
|
|
|
|
Capital
Expenditures
|
|
$
|
1,555
|
|
|
$
|
1,810
|
|
Capital
Expenditures per Apartment Home
|
|
$
|
128
|
|
|
$
|
160
|
|
|
|
|
|
|
Value Add
|
|
2,631
|
|
|
2,031
|
|
Acquisition
Capital
|
|
558
|
|
|
1,478
|
|
Total Capital
Spend
|
|
4,744
|
|
|
5,319
|
|
Total Capital Spend
per Apartment Home
|
|
$
|
390
|
|
|
$
|
470
|
|
|
|
|
|
|
Value Add Capital
Expenditures
|
|
|
|
|
Interior -
Units
|
|
|
|
|
Same-Store
|
|
$
|
1,691
|
|
|
$
|
782
|
|
Non-Same-Store
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Interior
Units
|
|
$
|
1,691
|
|
|
$
|
782
|
|
Expected Year 1
Annual ROI
|
|
16.8
|
%
|
|
16.1
|
%
|
|
|
|
|
|
Common Areas and
Exteriors
|
|
|
|
|
Same-Store
|
|
$
|
940
|
|
|
$
|
1,249
|
|
Non-Same-Store
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Common Areas
and Exteriors
|
|
$
|
940
|
|
|
$
|
1,249
|
|
Expected Year 1
Annual ROI
|
|
8.2
|
%
|
|
11.8
|
%
|
|
|
|
|
|
Total Value-Add Capital
Expenditures
|
|
|
|
|
Same-Store
|
|
$
|
2,631
|
|
|
$
|
2,031
|
|
Non-Same-Store
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Portfolio
Value-Add
|
|
$
|
2,631
|
|
|
$
|
2,031
|
|
Expected Year 1
Annual ROI
|
|
13.8
|
%
|
|
13.5
|
%
|
CENTERSPACE
2021 Financial
Outlook
(in thousands,
except per share amounts)
|
|
Centerspace revised
its outlook for 2021 in the company's Current Report on Form 8-K
filed with the Securities and Exchange Commission on April 19,
2021. The revised outlook for 2021 is shown in the table
below.
|
|
|
Three Months
Ended
|
|
2021 Full-Year
Outlook Range
|
|
2021 Revised
Outlook Range
|
|
March 31,
2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
YTD Actual
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
Same-store
growth
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
41,743
|
|
|
(0.5)
|
%
|
|
3.0
|
%
|
|
—
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Controllable
expenses
|
$
|
10,820
|
|
|
5.0
|
%
|
|
8.5
|
%
|
|
3.5
|
%
|
|
4.5
|
%
|
Non-controllable
expenses
|
$
|
6,565
|
|
|
2.5
|
%
|
|
6.0
|
%
|
|
2.5
|
%
|
|
6.0
|
%
|
Total
Expenses
|
$
|
17,385
|
|
|
4.0
|
%
|
|
7.5
|
%
|
|
3.0
|
%
|
|
5.0
|
%
|
Same-store
NOI
|
$
|
24,358
|
|
|
(3.5)
|
%
|
|
(0.5)
|
%
|
|
(1.5)
|
%
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Components of
NOI
|
|
|
|
|
|
|
|
|
|
Same-store
NOI
|
$
|
24,358
|
|
|
$
|
94,200
|
|
|
$
|
97,600
|
|
|
$
|
96,500
|
|
|
$
|
99,200
|
|
Non-same-store
NOI
|
$
|
2,744
|
|
|
$
|
7,900
|
|
|
$
|
8,200
|
|
|
$
|
11,400
|
|
|
$
|
11,600
|
|
Other Commercial
NOI
|
$
|
361
|
|
|
$
|
1,700
|
|
|
$
|
1,800
|
|
|
$
|
1,700
|
|
|
$
|
1,800
|
|
Other Sold
NOI
|
$
|
(56)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total NOI
|
$
|
27,407
|
|
|
$
|
103,800
|
|
|
$
|
107,600
|
|
|
$
|
109,600
|
|
|
$
|
112,600
|
|
|
|
|
|
|
|
|
|
|
|
Accretion from
investments and capital market activity, excluding impact from
change in share count
|
$
|
—
|
|
|
1,300
|
|
|
990
|
|
|
(800)
|
|
|
(1,100)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
(7,231)
|
|
|
(28,650)
|
|
|
(30,000)
|
|
|
(29,800)
|
|
|
(31,100)
|
|
Preferred
dividends
|
$
|
(1,607)
|
|
|
(6,430)
|
|
|
(6,430)
|
|
|
(6,430)
|
|
|
(6,430)
|
|
|
|
|
|
|
|
|
|
|
|
Recurring income
and expenses
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
$
|
407
|
|
|
2,580
|
|
|
2,580
|
|
|
2,580
|
|
|
2,580
|
|
General and
administrative and property management
|
$
|
(5,673)
|
|
|
(23,670)
|
|
|
(22,000)
|
|
|
(23,300)
|
|
|
(22,500)
|
|
Casualty
losses
|
$
|
(101)
|
|
|
(1,750)
|
|
|
(1,250)
|
|
|
(1,750)
|
|
|
(1,250)
|
|
Non-real estate
depreciation and amortization
|
$
|
(98)
|
|
|
(280)
|
|
|
(280)
|
|
|
(280)
|
|
|
(280)
|
|
Non-controlling
interest
|
$
|
(17)
|
|
|
(65)
|
|
|
(70)
|
|
|
(65)
|
|
|
(70)
|
|
Total recurring income
and expenses
|
$
|
(5,482)
|
|
|
(23,185)
|
|
|
$
|
(21,020)
|
|
|
(22,815)
|
|
|
$
|
(21,520)
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
13,087
|
|
|
$
|
46,835
|
|
|
$
|
51,140
|
|
|
$
|
49,755
|
|
|
$
|
52,450
|
|
|
|
|
|
|
|
|
|
|
|
Non-core income
and expenses
|
|
|
|
|
|
|
|
|
|
Casualty
loss
|
$
|
—
|
|
|
$
|
580
|
|
|
$
|
420
|
|
|
$
|
480
|
|
|
$
|
420
|
|
Technology
implementation costs
|
413
|
|
|
1,190
|
|
|
990
|
|
|
1,090
|
|
|
990
|
|
Total non-core income
and expenses
|
$
|
413
|
|
|
$
|
1,770
|
|
|
$
|
1,410
|
|
|
$
|
1,570
|
|
|
$
|
1,410
|
|
|
|
|
|
|
|
|
|
|
|
Core
FFO
|
$
|
13,500
|
|
|
$
|
48,605
|
|
|
$
|
52,550
|
|
|
$
|
51,325
|
|
|
$
|
53,860
|
|
|
|
|
|
|
|
|
|
|
|
EPS -
Diluted
|
$
|
(0.49)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.45
|
|
|
$
|
0.10
|
|
|
$
|
0.50
|
|
FFO per diluted
share
|
$
|
0.92
|
|
|
$
|
3.17
|
|
|
$
|
3.52
|
|
|
$
|
3.38
|
|
|
$
|
3.62
|
|
Core FFO per
diluted share
|
$
|
0.95
|
|
|
$
|
3.29
|
|
|
$
|
3.62
|
|
|
$
|
3.48
|
|
|
$
|
3.72
|
|
Weighted average
shares outstanding - diluted
|
14,282
|
|
|
14,773
|
|
|
14,515
|
|
|
14,731
|
|
|
14,472
|
|
Additional assumptions:
- Same-store capital expenditures of $912 per home to $1,012 per home
- Value-add expenditures of $15.0
million to $20.0 million
- Investments of $145.0 million to
$170.0 million, which includes the
January 2021 acquisition of Union
Pointe in Longmont, Colorado
- Dispositions of $55.0 million to
$75.0 million
- Proceeds of $50.0 million to
$70.0 million from equity
issuance
Reconciliation of Net Income (Loss) Available to Common
Shareholders to FFO and Core FFO
The following table presents reconciliations of Net income
(loss) available to common shareholders to FFO and Core FFO, which
are non-GAAP financial measures described in greater detail under
"Non-GAAP Financial Measures and Reconciliations." They should not
be considered as alternatives to net income or any other GAAP
measurement of performance, but rather should be considered as an
additional, supplemental measure. FFO and Core FFO also do not
represent cash generated from operating activities in accordance
with GAAP, nor are they indicative of funds available to fund all
cash needs, including the ability to service indebtedness or make
distributions to shareholders. The outlook and projections provided
below are based on current expectations and are
forward-looking.
|
|
|
Previous
Outlook
|
|
Revised
Outlook
|
|
Three Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
March 31,
2021
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Actual
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net income (loss)
available to common shareholders
|
$
|
(6,474)
|
|
|
$
|
(1,274)
|
|
|
$
|
8,031
|
|
|
$
|
2,929
|
|
|
$
|
8,692
|
|
Noncontrolling
interests - Operating Partnership
|
(469)
|
|
|
(1,456)
|
|
|
(1,456)
|
|
|
(1,456)
|
|
|
(1,456)
|
|
Depreciation and
amortization
|
19,992
|
|
|
71,424
|
|
|
71,424
|
|
|
72,391
|
|
|
72,323
|
|
Less depreciation -
non real estate
|
(98)
|
|
|
(280)
|
|
|
(280)
|
|
|
(280)
|
|
|
(280)
|
|
Less depreciation -
partially owned entities
|
(24)
|
|
|
(95)
|
|
|
(95)
|
|
|
(95)
|
|
|
(95)
|
|
(Gain) loss on sale
of real estate
|
—
|
|
|
(22,124)
|
|
|
(27,124)
|
|
|
(24,374)
|
|
|
(27,374)
|
|
Dividends to
preferred unitholders
|
$
|
160
|
|
|
$
|
640
|
|
|
$
|
640
|
|
|
$
|
640
|
|
|
$
|
640
|
|
FFO applicable to
common shares and Units
|
$
|
13,087
|
|
|
$
|
46,835
|
|
|
$
|
51,140
|
|
|
$
|
49,755
|
|
|
$
|
52,450
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Core
FFO:
|
|
|
|
|
|
|
|
|
|
Casualty loss write
off
|
—
|
|
|
580
|
|
|
420
|
|
|
480
|
|
|
420
|
|
Technology
implementation costs
|
413
|
|
|
1,190
|
|
|
990
|
|
|
1,090
|
|
|
990
|
|
Core FFO applicable
to common shares and Units
|
$
|
13,500
|
|
|
$
|
48,605
|
|
|
$
|
52,550
|
|
|
$
|
51,325
|
|
|
$
|
53,860
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
$
|
(0.49)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.45
|
|
|
$
|
0.10
|
|
|
$
|
0.50
|
|
FFO per share -
diluted
|
$
|
0.92
|
|
|
$
|
3.17
|
|
|
$
|
3.52
|
|
|
$
|
3.38
|
|
|
$
|
3.62
|
|
Core FFO per share -
diluted
|
$
|
0.95
|
|
|
$
|
3.29
|
|
|
$
|
3.62
|
|
|
$
|
3.48
|
|
|
$
|
3.72
|
|
Reconciliation of Operating Income to Net Operating
Income
Net operating income, or NOI, is a non-GAAP financial measure
which the company defines as total real estate revenues less
property operating expenses, including real estate taxes.
Centerspace believes that NOI is an important supplemental measure
of operating performance for real estate because it provides a
measure of operations that is unaffected by depreciation,
amortization, financing, property management overhead, casualty
losses, and general and administrative expenses. NOI does not
represent cash generated by operating activities in accordance with
GAAP and should not be considered an alternative to net income, net
income available for common shareholders, or cash flow from
operating activities as a measure of financial
performance.
|
|
|
Previous
Outlook
|
|
Revised
Outlook
|
|
Three Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
March 31,
2021
|
|
December 31,
2021
|
|
December 31,
2021
|
|
Actual
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Operating
income
|
$
|
1,641
|
|
|
$
|
6,956
|
|
|
$
|
12,926
|
|
|
$
|
12,159
|
|
|
$
|
16,527
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
General and
administrative and property management
expenses
|
5,673
|
|
|
23,670
|
|
|
22,000
|
|
|
23,300
|
|
|
22,500
|
|
Casualty
loss
|
101
|
|
|
1,750
|
|
|
1,250
|
|
|
1,750
|
|
|
1,250
|
|
Depreciation and
amortization
|
19,992
|
|
|
71,424
|
|
|
71,424
|
|
|
72,391
|
|
|
72,323
|
|
Net operating
income
|
$
|
27,407
|
|
|
$
|
103,800
|
|
|
$
|
107,600
|
|
|
$
|
109,600
|
|
|
$
|
112,600
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/centerspace-reports-strong-first-quarter-2021-financial-results-301282508.html
SOURCE Centerspace