Centerspace, a real estate investment trust (REIT) based in North Dakota, reported a significant turnaround in its financial performance for the fiscal year ending December 31, 2025. The company achieved a net income of $22.96 million, or $1.02 per diluted share, compared to a net loss of $14.19 million, or $1.27 per diluted share, in the previous year. This improvement was driven by a 4.9% increase in total revenue, which rose to $273.66 million from $260.98 million in 2024. The company's operating income also saw a substantial increase, reaching $64.54 million, up from $20.48 million in the prior year.
Centerspace's same-store net operating income (NOI) grew by 3.5%, reflecting a 2.4% increase in same-store revenue, attributed to higher average monthly revenue per occupied home and a slight uptick in occupancy rates. The company disposed of twelve non-core apartment communities and one corporate office building for a total of $215.5 million, while also acquiring two new properties, including Railway Flats in Loveland, Colorado, and Sugarmont in Salt Lake City, Utah, for a combined total of approximately $281.2 million. These strategic moves align with Centerspace's focus on enhancing its portfolio in attractive markets.
Operationally, Centerspace managed 61 apartment communities with a total of 12,262 homes as of December 31, 2025. The company reported a weighted average occupancy rate of 95.2%, slightly down from 95.3% in the previous year. The total real estate investment, net of accumulated depreciation, stood at $2.5 billion. The company also emphasized its commitment to improving resident experiences and operational efficiencies, which are central to its growth strategy.
In terms of financial health, Centerspace maintained a strong liquidity position with approximately $267.9 million available, including $255.1 million from lines of credit. The company has also expanded its borrowing capacity through its Unsecured Credit Facility, which now allows for up to $400 million. As of December 31, 2025, the company had a total indebtedness to total gross real estate investments ratio of 41.8%, indicating a manageable level of leverage.
Looking ahead, Centerspace plans to continue focusing on maximizing the financial performance of its existing portfolio while exploring new market opportunities. The company aims to enhance its operating margins through value-add investments and technology solutions, positioning itself for sustained growth in a competitive real estate landscape.
About CENTERSPACE
Centerspace is a real estate investment trust (REIT) specializing in the ownership, management, acquisition, development, and redevelopment of apartment communities primarily in the U.S. Midwest and Mountain West regions. It offers well-located multifamily rental homes targeting diverse price ranges, focusing on resident experience and operational efficiency. Centerspace’s business model emphasizes disciplined capital allocation, stable cash flow, and long-term value through property enhancements and market knowledge.
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