Centerspace Reports 4% Revenue Growth and Improved Net Loss in Q1 2025

Centerspace, a North Dakota-based real estate investment trust (REIT), reported its financial results for the first quarter of 2025, revealing a revenue increase of 4.0% to $67.1 million, up from $64.5 million in the same period last year. The growth was attributed to higher revenues from both same-store and non-same-store communities, despite a decline in revenue from property dispositions. The company’s net loss for the quarter was $4.2 million, or $0.22 per diluted share, an improvement from a net loss of $4.8 million, or $0.37 per diluted share, in the prior year.

In terms of operational performance, Centerspace reported a 3.5% increase in same-store revenues, which contributed to a 2.1% rise in same-store net operating income (NOI) to $38.9 million. The weighted average occupancy for same-store communities improved to 95.8% from 94.6% year-over-year. The company’s total assets as of March 31, 2025, were approximately $1.89 billion, a slight decrease from $1.91 billion at the end of 2024, primarily due to changes in cash and cash equivalents and restricted cash.

Centerspace did not engage in any acquisitions or dispositions during the first quarter of 2025, maintaining its focus on operational efficiency and enhancing resident satisfaction. The company continues to manage a portfolio of 71 apartment communities, comprising 13,012 apartment homes. The total number of common shares outstanding increased to 16.7 million as of April 24, 2025, reflecting ongoing share-based compensation activities.

The company’s financial position remains stable, with total liquidity of approximately $223.2 million, including $211.3 million available on lines of credit and $11.9 million in cash and cash equivalents. Centerspace has a revolving line of credit with a borrowing capacity of $250 million, which was amended in July 2024 to extend its maturity to July 2028. The company’s debt levels are manageable, with a weighted average interest rate of 4.02% on its mortgage loans.

Looking ahead, Centerspace aims to continue focusing on core fundamentals, including generating positive cash flows and maintaining appropriate debt levels. The company acknowledges potential risks from inflation, supply chain challenges, and geopolitical uncertainties that could impact its operations and financial performance. However, it remains committed to enhancing its portfolio and delivering value to shareholders through strategic management of its assets.