Centerspace Reports Second Quarter 2024 Financial Results and Raises Mid-Point for 2024 Core FFO per Share Guidance
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Three Months Ended |
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Six Months Ended |
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Per Common Share |
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2024 |
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2023 |
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2024 |
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2023 |
Net income (loss) - diluted |
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$ (0.19) |
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$ (0.23) |
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$ (0.56) |
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$ 2.55 |
FFO - diluted(1) |
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$ 1.23 |
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$ 1.11 |
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$ 2.39 |
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$ 2.01 |
Core FFO - diluted(1) |
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$ 1.27 |
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$ 1.28 |
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$ 2.49 |
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$ 2.36 |
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Year-Over-Year Comparison |
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Sequential Comparison |
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YTD Comparison |
Same-Store Results(2) |
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Q2 2024 vs. Q2 2023 |
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Q2 2024 vs. Q1 2024 |
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2024 vs. 2023 |
Revenues |
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3.4 % |
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1.7 % |
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3.5 % |
Expenses |
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5.1 % |
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1.8 % |
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1.4 % |
NOI(1) |
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2.4 % |
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1.7 % |
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4.9 % |
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Three months ended |
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Six months ended |
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Same-Store Results(2) |
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Weighted Average Occupancy |
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95.3 % |
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94.6 % |
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95.2 % |
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94.9 % |
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95.0 % |
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(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 directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in Supplemental and Financial Operating Data within. |
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(2) |
Same-store results are updated for disposition activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial Operating Data within. |
Highlights
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Centerspace raised the mid-point and narrowed the 2024 financial outlook ranges for net loss per diluted share, FFO per diluted share and Core FFO per diluted share. Refer to page S-17 in the Supplemental and Financial Operating Data within for additional detail. - Net loss was
$0.19 per diluted share for the second quarter of 2024, compared to Net loss of$0.23 per diluted share for the same period of the prior year; - Core FFO per diluted share increased 5.5% to
$2.49 for the six months endedJune 30, 2024 , compared to$2.36 for the six months endedJune 30, 2023 ; - Same-store revenues increased by 3.4% for the second quarter of 2024 compared to the second quarter of 2023, driving a 2.4% increase in same-store NOI compared to the same period of the prior year; and
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Centerspace issued approximately 110,000 common shares for gross consideration of$7.7 million , and an average gross price of$69.82 per share during the second quarter of 2024 under its at-the-market offering program, compared to approximately 88,000 of repurchases in the first quarter of 2024 at an average repurchase price of$53.60 per share, excluding commissions.
Balance Sheet
At the end of the second 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 |
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Same-Store Revenue |
3.00 % |
4.50 % |
3.25 % |
4.25 % |
Same-Store Expenses |
4.00 % |
5.50 % |
3.50 % |
4.75 % |
Same-Store NOI |
2.50 % |
4.00 % |
3.00 % |
4.00 % |
FFO per Share – diluted |
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Core FFO per Share – diluted |
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Additional assumptions:
- Same-store recurring capital expenditures of
$1,100 per home to$1,150 per home - Value-add expenditures of
$23.0 million to$25.0 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.
Subsequent Events
Through
On
Upcoming Events
- NYSE Real Estate Investor Access Day which will be held virtually on
August 8 ; and -
Bank of America Global Real Estate Conference which will be held inNew York, NY ,September 10-12 .
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 |
1-404-975-4839 |
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International |
1-929-458-6194 |
Access Code |
811975 |
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Access Code |
732490 |
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: 952-401-6600
Email: IR@centerspacehomes.com
Marketing & Media
Phone: 952-401-6600
Email: kweber@centerspacehomes.com
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