NYSE$CSR

Centerspace · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Centerspace reported results for the third quarter of 2023, with core FFO guidance raised.

Centerspace reported increased net income and core FFO per diluted share for Q3 2023 compared to Q3 2022. Same-store revenues also increased, driving NOI growth. The company successfully executed the sale of four non-core apartment communities and revised its 2023 financial outlook.

  • Centerspace successfully executed the sale of four non-core apartment communities and associated commercial space in Minot, North Dakota for an aggregate sales price of $82.5 million, resulting in a gain on sale of $11.3 million.
  • Net income increased to $0.41 per diluted share for the third quarter of 2023, compared to Net loss of $0.14 per diluted share for the same period of 2022.
  • Core FFO per diluted share increased 4.3% to $1.20 for the three months ended September 30, 2023, compared to $1.15 for the three months ended September 30, 2022.
  • Same-store revenues increased by 5.7% for the third quarter of 2023 compared to the third quarter of 2022, driving a 5.4% increase in NOI compared to the same period of the prior year.

Headline financials

Total Revenue

$64.6M

Previous: $65.4M-1.3%
EPS (adj)

$1.20

Previous: $1.15+4.3%
Weighted Average Occupancy

94.7%

Previous: 94.5%+0.2%
Same-Store NOI

$34M

No prior period
Capital Expenditures

-$39.4M

Previous: -$138M+71.5%
Free Cash Flow

-$31.6M

Previous: -$139M+77.2%
Net Income

$7.77M

Previous: -$523K+1586.4%
Operating Income

$17.4M

Previous: $7.03M+147.4%
Gross Profit

$62.4M

Previous: $62.9M-0.8%
Cash & Equivalents

$29.7M

Previous: $15M+98.6%
Total Assets

$1.88B

Previous: $2.04B-7.9%
Stock-Based Comp

$603K

Previous: $709K-15.0%

Revenue & EPS history

Centerspace · Revenue · Quarterly

$64.6M

Q3 2023-1.3%vs Q3 2022
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 2023 financial outlook, narrowing the ranges for net income per diluted share and FFO per diluted share, and raising the mid-point for Core FFO per diluted share.

Tailwinds

  • Same-store Revenue: Increased from 6.50%-8.00% to 7.00%-7.50%
  • Same-store Expenses: Maintained at 4.00%-4.50%
  • Same-store NOI: Increased from 8.50%-10.00% to 9.00%-9.50%
  • FFO per Share – diluted: Increased from $4.14-$4.35 to $4.20-$4.27
  • Core FFO per Share – diluted: Increased from $4.55-$4.75 to $4.63-$4.71

Headwinds

  • Net income per Share – diluted: Decreased from $2.84-$3.64 to $2.90-$3.56
  • Same-store capital expenditures of $1,000 per home to $1,050 per home
  • Value-add expenditures of $30.0 million to $31.5 million
  • Acquisitions of $94.5 million
  • Proceeds from dispositions of $226.8 million

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 2023

Historical avgQ3 2023

-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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