Centerspace Reports First Quarter 2024 Financial Results and Raises Mid-Point for 2024 Core FFO per Share Guidance
Three Months Ended |
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Per Common Share |
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2024 |
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2023 |
Net income (loss) - diluted |
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$ (0.37) |
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$ 2.76 |
FFO - diluted(1) |
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$ 1.16 |
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$ 0.89 |
Core FFO - diluted(1) |
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$ 1.23 |
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$ 1.07 |
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Year-Over-Year Comparison |
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Sequential Comparison |
Same-Store Results(2) |
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Q1 2024 vs. Q1 2023 |
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Q1 2024 vs. Q4 2023 |
Revenues |
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3.5 % |
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0.5 % |
Expenses |
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(2.2) % |
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(0.1) % |
NOI(1) |
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7.5 % |
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0.9 % |
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Three months ended |
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Same-Store Results(2) |
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Weighted Average Occupancy |
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94.6 % |
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94.8 % |
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94.9 % |
(1) |
NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most |
(2) |
Same-store results are updated for disposition activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial |
Highlights
- During the three months ended
March 31, 2024 ,Centerspace successfully executed the sale of two non-core apartment communities inMinnesota for an aggregate sales price of$19.0 million ; - Net loss decreased to
$0.37 per diluted share for the first quarter of 2024, compared to Net income of$2.76 per diluted share for the same period of the prior year; - Core FFO per diluted share increased 15.0% to
$1.23 for the three months endedMarch 31, 2024 , compared to$1.07 for the three months endedMarch 31, 2023 ; - Same-store revenues increased by 3.5% for the first quarter of 2024 compared to the first quarter of 2023, driving a 7.5% increase in same-store NOI compared to the same period of the prior year;
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Centerspace repurchased 87,722 common shares for total consideration of$4.7 million and an average price of$53.62 per share; and -
Centerspace narrowed the 2024 financial outlook ranges for net income per diluted share and FFO per diluted share and raised the mid-point for Core FFO per diluted share. Refer to page S-15 in the Supplemental and Financial Operating Data within for additional detail.
Balance Sheet
At the end of the first quarter,
Revised 2024 Financial Outlook
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Previous Outlook for 2024 |
Updated Outlook for 2024 |
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Low |
High |
Low |
High |
Net income per Share – diluted |
$ (1.31) |
$ (0.99) |
$ (1.34) |
$ (1.10) |
Same-Store Revenue |
3.00 % |
5.00 % |
3.00 % |
4.50 % |
Same-Store Expenses |
5.50 % |
7.00 % |
4.00 % |
5.50 % |
Same-Store NOI |
1.50 % |
3.50 % |
2.50 % |
4.00 % |
FFO per Share – diluted |
$ 4.54 |
$ 4.80 |
$ 4.57 |
$ 4.76 |
Core FFO per Share – diluted |
$ 4.68 |
$ 4.92 |
$ 4.74 |
$ 4.92 |
Additional assumptions:
- Same-store recurring capital expenditures of
$1,075 per home to$1,150 per home - Value-add expenditures of
$25.0 million to$27.0 million - Proceeds from dispositions of
$19.0 million
Note: FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to "2024 Financial Outlook" in the Supplemental Financial and Operating Data within.
Upcoming Events
- BTIG 4th Annual
Housing Ecosystem Conference which will be held inNew York, NY ,May 6-7, 2024 ; - BMO 2024 Real Estate conference which will be held in
New York, NY ,May 8, 2024 ; and -
National Association of Real Estate Investment Trusts ("Nareit") REITweek: 2024 Investor Conference which will be held inNew York, NY ,June 4-5, 2024 .
Earnings Call
Live webcast and replay: https://ir.centerspacehomes.com |
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Live Conference Call |
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Conference Call Replay |
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Replay available until |
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1-833-470-1428 |
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1-866-813-9403 |
International |
1-929-526-1599 |
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International |
1-929-458-6194 |
Canada Toll Free |
1-833-950-0062 |
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1-226-828-7578 |
Access Code |
748370 |
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Access Code |
274742 |
Supplemental Information
Supplemental Operating and Financial Data for the quarter ended
About
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. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. 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. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the company's control and could differ materially from actual results and performance. 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
Contact Information
Investor Relations
Phone: 701-837-7104
Email: IR@centerspacehomes.com
Marketing & Media
Phone: 701-837-7104
Email: kweber@centerspacehomes.com
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