Centerspace : CSR 2Q23 Supplemental

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2023

CENTERSPACE

(Exact name of Registrant as specified in its charter)

North Dakota	001-35624	45-0311232
(State or Other Jurisdiction	(Commission File Number)	(I.R.S. Employer Identification No.)
of Incorporation or Organization)

3100 10th Street SW, Post Office Box 1988, Minot, ND 58702-1988

(Address of principal executive offices) (Zip code)

[phone]

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• Written communications pursuant to Rule 425 under the Securities Act
• Soliciting material pursuant to Rule 14a-12 under the Exchange Act
• Pre-commencementcommunications pursuant to Rule 14d-2(b) under the Exchange Act
• Pre-commencementcommunications pursuant to Rule 13e-4(c) under the Exchange Act Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares of Beneficial Interest, no par value	CSR	New York Stock Exchange
Series C Cumulative Redeemable Preferred Shares	CSR -PRC	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

The Company issued an earnings release on July 31, 2023, announcing certain financial and operational results for the three and six months ended June 30, 2023. A copy of the press release is furnished as Exhibit 99.1 and incorporated herein by reference.

The information in this Item 2.02 and item 9.01, including the press release furnished as Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any Company filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01 Financial Statements and Exhibits

1. Exhibits

Exhibit

Number Description

99.1 Earnings Release and Supplemental Operating and Financial Data, dated July 31, 2023.

104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL Document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Centerspace

By	/s/ Anne Olson
	Anne Olson
Date: July 31, 2023	President and Chief Executive Officer

Exhibit 99.1

Earnings Release

Centerspace Reports Second Quarter 2023 Financial Results and Increases 2023 Core FFO

Guidance

MINNEAPOLIS, MN, July 31, 2023 - Centerspace (NYSE: CSR) announced today its financial and operating results for the three and six months ended June 30, 2023. The tables below show Net Income (Loss), Funds from Operations ("FFO")1, and Core FFO1, all on a per common share basis, for the three and six months ended June 30, 2023; Same-Store Revenues, Expenses, and Net Operating Income (Loss) ("NOI")1 over comparable periods; and Same-Store1 Weighted-Average Occupancy for each of the three months ended June 30, 2023, March 31, 2023, and June 30, 2022.

	Three Months Ended June 30,			Six Months Ended June 30,
Per Common Share	2023		2022			2023			2022
Net income (loss) - diluted	$	(0.23)	$	(0.30)	$	2.55	$	(0.97)
FFO - diluted(1)	$	1.11	$	1.02	$	2.01	$	2.03
Core FFO - diluted(1)	$	1.28	$	1.12	$	2.36	$	2.10

	Year-Over-Year	Sequential	YTD Comparison
	Comparison	Comparison
Same-Store Results	Q2 2023 vs. Q2 2022	Q2 2023 vs. Q1 2023	2023 vs. 2022
Revenues	8.5%	2.1%	9.5%
Expenses	3.3%	(4.9)%	6.6%
NOI(1)	12.1%	7.2%	11.6%

		Three months ended			Six months ended
Same-Store Results	June 30, 2023	March 31, 2023	June 30, 2022		June 30, 2023	June 30, 2022
Weighted Average Occupancy	95.2%	94.8%	95.0%		95.0%	94.5%

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" in supplemental and financial operating data within.

Highlights

• Net loss increased 23.3% to $0.23 per diluted share for the second quarter of 2023, compared to Net loss of $0.30 per diluted share for the same period of 2022;
• Core FFO per diluted share increased 14.3% to $1.28 for the three months ended June 30, 2023, compared to $1.12 for the three months ended June 30, 2022;
• Same-storerevenues increased by 8.5% for the second quarter of 2023 compared to the second quarter of 2022, driving a 12.1% increase in NOI compared to the same period of the prior year;
• Total expenses decreased by $3.4 million to $55.9 million for the three months ended June 30, 2023, compared to $59.3 million for the three months ended June 30, 2022; and
• Increased the 2023 financial outlook ranges for net income per diluted share, FFO per diluted share, and Core FFO per diluted share. Refer to page S-18 in the supplemental and financial operating date within for additional detail.

Balance Sheet

At the end of the second quarter, Centerspace had $246.7 million of total liquidity on its balance sheet, consisting of $237.0 million available under the lines of credit and cash and cash equivalents of $9.7 million.

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