NYSE$CSR

Centerspace · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Centerspace's financial performance reflected a mix of revenue growth and increased expenses, impacting profitability.

Centerspace reported a net loss of $0.14 per diluted share for Q3 2022, an improvement compared to the $0.79 loss in Q3 2021. Core FFO per diluted share increased by 17.3% to $1.15. Same-store revenues grew by 11.1%, driving an 11.4% increase in NOI. The company revised its 2022 financial outlook, with a net loss per share guidance of $0.50 to $0.41 and a Core FFO guidance range of $4.42 to $4.50 per diluted share.

  • Net loss was $0.14 per diluted share, compared to a net loss of $0.79 per diluted share for the same period of 2021.
  • Core FFO per diluted share increased 17.3% to $1.15.
  • Same-store revenues increased by 11.1%, driving an 11.4% increase in NOI.
  • Revised 2022 financial outlook with net loss per share guidance of $0.50 to $0.41 and Core FFO guidance range of $4.42 to $4.50 per diluted share.

Headline financials

Total Revenue

$65.4M

Previous: $50.4M+29.8%
EPS (adj)

$1.15

Previous: $0.98+17.3%
Weighted Average Occupancy

94.5%

Previous: 94.3%+0.2%
Capital Expenditures

-$138M

Previous: -$230M+40.0%
Free Cash Flow

-$139M

Previous: -$240M+42.1%
Net Income

-$523K

Previous: -$9.49M+94.5%
Operating Income

$7.03M

Previous: $1.14M+514.6%
Gross Profit

$62.9M

Previous: $48.2M+30.4%
Cash & Equivalents

$15M

Previous: $20.8M-28.1%
Total Assets

$2.04B

Previous: $1.88B+8.6%
Stock-Based Comp

$709K

Previous: $601K+18.0%

Revenue & EPS history

Centerspace · Revenue · Quarterly

$65.4M

Q3 2022+29.8%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Centerspace · $63.1M total across 3 segments · Q2 2022

  • Same-store Revenue
    $48.9M
  • Non-same-store Revenue
    $13.3M
  • Other Properties Revenue
    $915K

Forward guidance

Centerspace revised its 2022 financial outlook, adjusting guidance for net loss per share, same-store revenue, expenses, and NOI, as well as FFO and Core FFO per share.

Tailwinds

  • Same-store revenue is expected to grow between 9.75% and 10.25%.
  • The acquisition of Lyra Apartments is expected to improve overall portfolio and earnings quality.
  • Centerspace repurchased 426,773 common shares for $28.7 million.
  • The company had $99.5 million of total liquidity at the end of the third quarter.
  • Participating in the upcoming Nareit REITWorld 2022 Annual Conference and Jefferies 2022 Real Estate Conference.

Headwinds

  • The guidance range for net loss per share is $(0.50) to $(0.41).
  • Persistent cost pressures were higher than previously anticipated.
  • Experienced a higher than usual volume of noncontrollable unreimbursable losses across the portfolio.
  • Expense growth projections were increased for both same-store and non-same-store properties.
  • The acquisition of Lyra Apartments is expected to result in a reduction of $0.02 per share in Q4 2022 relative to prior projections.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.0%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.4%

Avg return

30 days after

48%

30 / 62 earnings

Positive

+9.5%

Q2 2023

Best reaction

-9.0%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-1.7%-13.1%
Q4 2025+1.4%-1.3%-9.3%
Q3 2025+1.8%+1.4%+9.6%
Q1 2025+1.9%+0.8%+6.0%
Q4 2024+2.5%+3.5%+2.5%
Q3 2024-1.8%-5.1%+4.1%
Q2 2024-1.9%+0.1%+5.9%
Q1 2024+4.1%+6.4%+2.0%
Q4 2023+3.4%+0.4%+3.0%
Q3 2023+1.6%+6.3%+11.9%
Q2 2023+9.5%+5.5%+6.9%
Q1 2023+0.5%+5.3%+4.3%
Q4 2022-2.2%-3.0%-19.9%
Q3 2022-3.2%-9.5%-6.9%
Q2 2022-0.2%-2.1%-12.2%
Q1 2022-6.4%-10.1%-9.0%
Q4 2021-3.3%+7.2%+1.5%
Q3 2021-2.4%-0.3%-0.3%
Q2 2021+3.1%+5.5%+13.4%
Q1 2021-1.0%+1.2%+2.0%
Q4 2020+1.8%-1.5%-1.3%
Q3 2020+3.6%+0.0%+6.5%
Q2 2020-1.0%+0.7%-1.6%
Q1 2020-3.9%-1.3%+19.0%
Q4 2019-9.0%-9.4%-34.5%
Q3 2019-1.2%+0.2%+4.2%
Q2 2019+7.8%+5.9%+12.6%
Q1 2019+1.1%+1.5%+1.8%
Q4 2018-3.7%-5.9%-8.5%
Q3 2018+2.7%+4.2%+13.1%
Q2 2018-2.0%-2.7%-4.1%
Q1 2018-5.3%-5.0%+1.6%
Q4 2017+1.1%+9.6%+2.6%
Q3 2017-1.7%-1.7%+3.2%
Q2 2017+5.3%+4.8%+10.1%
Q1 2017-9.0%-13.7%-14.1%
Q4 2016+0.0%+0.3%+2.3%
Q3 2016+9.5%
Q2 2016-5.9%
Q1 2016+1.1%
Q4 2015+1.0%
Q3 2015+2.0%
Q2 2015-0.6%
Q1 2015-1.2%
Q4 2014-2.7%
Q3 2013-1.5%
Q2 2013-2.9%
Q1 2013+0.5%
Q4 2013+0.7%
Q4 2012+0.6%
Q3 2012+2.9%
Q2 2012-2.4%
Q1 2012+2.0%
Q4 2011+4.1%
Q3 2011-4.1%
Q2 2011+4.6%
Q1 2011+1.5%
Q4 2010-1.0%
Q3 2010-1.4%
Q2 2010+0.0%
Q1 2010-2.4%
Q4 2009-1.2%

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