Executive Summary

Q1 2025 Core FFO per share was $1.21, essentially flat year over year (down 1.6%) as higher same-store property taxes offset healthy occupancy and revenue; GAAP diluted EPS was a loss of $0.22 vs. loss of $0.37 last year . Revenue rose 4.0% to $67.1M, driven by +120 bps YoY occupancy to 95.8% .
Versus S&P Global consensus, revenue modestly beat ($67.09M vs. $66.67M est.) while GAAP EPS modestly missed (-$0.21/-$0.22 vs. -$0.18 est.); FFO/share of $1.17 was modestly below a $1.22 est., while Core FFO/share of $1.21 was in line (see Estimates Context) . Values retrieved from S&P Global.*
Management reaffirmed full-year 2025 guidance, including Core FFO/share $4.86–$5.10 and same-store NOI growth 1.25%–3.25%, citing in-line Q1 performance and expected leasing cadence; liquidity stood at $223.2M, with weighted average debt cost of 3.6% and 5.4-year tenor .
Stock reaction catalysts: reaffirmed guidance, signs of sequential improvement in Denver new lease spreads into April (+200 bps m/m, new lease +2.4% in April), and strong Midwest momentum could bolster narrative; property-tax headwinds and Denver supply digestion remain watch items .

What Went Well and What Went Wrong

What Went Well

Healthy topline and occupancy: Revenue +4.0% YoY to $67.1M; occupancy +120 bps YoY to 95.8% supported same-store revenue +3.5% YoY and same-store NOI +2.1% YoY .
Midwest and Omaha/North Dakota strength: “North Dakota is again leading…blended leasing spreads of 5.3% YTD and Omaha has delivered similarly positive results,” with Minneapolis also ahead of portfolio average in leasing spreads .
Early Q2 momentum and stable renter health: April new lease spreads improved to +2.4%; rent-to-income was 21.6% and bad debt ~40 bps, consistent with expectations .

What Went Wrong

Property tax headwinds: Core FFO/share decreased 1.6% YoY to $1.21, driven by ~$0.06/share impact from higher same-store property taxes vs. prior-year tax refunds; CFO quantified ~$680k refunds in Q1’24 creating a tough comp, plus higher assessments (notably Denver) .
Denver softness persists near-term: Lowest new/renewal rate growth YTD in the portfolio, though management expects an inflection over the next ~12 months; April showed ~200 bps m/m improvement in new lease spreads, but supply digestion continues .
Retention dip in Q1: Retention was 49.2% (seasonally fewer expirations, plus forced move-outs tied to value-add in Omaha), though April improved to ~58–59% .

Financial Results

Income Statement, Profitability, and Cash Metrics

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	—	$66.41*	$67.09
GAAP Diluted EPS ($)	$(0.40)	$(0.31)	$(0.22)
FFO/share – diluted ($)	$1.01	$1.09	$1.17
Core FFO/share – diluted ($)	$1.18	$1.21	$1.21
EBITDA Margin (%)	—	49.52%*	49.08%*
EBIT Margin (%)	—	7.90%*	7.87%*

Notes: Revenue Q4 2024 and margin figures are from S&P Global and marked with an asterisk. Values retrieved from S&P Global.*

Same-Store Results (YoY and Sequential)

Metric	YoY: Q1 2025 vs Q1 2024	Seq: Q1 2025 vs Q4 2024
Same-Store Revenues	3.5%	0.9%
Same-Store Expenses	5.8%	1.1%
Same-Store NOI	2.1%	0.8%

Operating KPIs – Same-Store

KPI	Q1 2024	Q4 2024	Q1 2025
Weighted Avg Occupancy	94.6%	95.6%	95.8%
New Lease Rate Growth	—	(3.5)%	(1.1)%
Renewal Lease Rate Growth	3.2%	3.1%	3.5%
Blended Lease Rate Growth	1.4%	0.3%	0.7%
Retention Rate	53.4%	54.7%	49.2%

Balance sheet snapshot: liquidity $223.2M (cash $11.9M; $211.3M available on lines) at quarter-end; weighted avg debt cost 3.6%; WAM 5.4 years .

Guidance Changes

Metric	Period	Previous Guidance (Feb 18, 2025)	Current Guidance (May 1, 2025)	Change
Net loss/share – diluted	FY 2025	$(0.71) to $(0.45)	$(0.71) to $(0.45)	Maintained
Same-Store Revenue	FY 2025	1.50% to 3.50%	1.50% to 3.50%	Maintained
Same-Store Expenses	FY 2025	2.00% to 4.00%	2.00% to 4.00%	Maintained
Same-Store NOI	FY 2025	1.25% to 3.25%	1.25% to 3.25%	Maintained
FFO/share – diluted	FY 2025	$4.73 to $4.97	$4.73 to $4.97	Maintained
Core FFO/share – diluted	FY 2025	$4.86 to $5.10	$4.86 to $5.10	Maintained
Same-store recurring capex	FY 2025	$1,125–$1,175/home	$1,125–$1,175/home	Maintained
Value-add expenditures	FY 2025	$16–$18M	$16–$18M	Maintained
Dividend	Next declared	$0.77/share payable Apr 8, 2025 (announced Feb 18)	$0.77/share payable Jul 10, 2025 (announced Jun 2)	Maintained run-rate

Management reiterated confidence in achieving Core FFO midpoint ($4.98) and ~2.25% same-store NOI growth .

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Supply/demand; Denver & Minneapolis	Past peak supply; still softness in Denver; Minneapolis stabilizing; cap rates mid–high 4s in Denver	Past peak deliveries; Minneapolis improvement sooner; Denver more defined tailwinds in 2026	April new lease +2.4%; Denver new lease spreads improved ~200 bps m/m; inflection in ~12 months	Gradual improvement
Occupancy/retention	Occupancy 95.3%; retention >58% in Q3	Occupancy 95.5% in Q4; retention 56.6% FY	Occupancy 95.8% in Q1; Q1 retention 49.2% seasonally, April ~58–59%	Solid occupancy; retention normalizing seasonally
Costs (taxes/insurance)	Noncontrollables pressured by insurance; controllables muted	2025 guide assumes noncontrollables +4.5%; insurance renewal -12% (~$900k) benefit	Q1 expenses +5.8% YoY; property tax comp headwind and higher assessments (esp. Denver)	Near-term tax headwind; insurance tailwind
Renter health/bad debt	Bad debt 45–50 bps; hedged utilities via RUBS	Healthy rent-to-income; stable bad debt outlook	Rent-to-income 21.6%; bad debt ~40 bps	Healthy
Capital allocation & market	ATM issuance, preferred redemption; Denver acquisition; private cap rates mid–high 4s vs. public implied	Focus on growth with cost of capital discipline; pipeline constrained by bid-ask spread	Liquidity $223M; favorable private pricing vs. stock; selective on opportunities	Opportunistic, disciplined

Management Commentary

“Our first quarter demonstrated our team’s ability to drive exceptional results with strong occupancy and expense control… We feel great about the first quarter… and are reaffirming our guidance for the full year.” – CEO Anne Olson .
“We reported core FFO of $1.21… Revenues… increased by 3.5%… offset by… same-store expenses… up 5.8% year-over-year. The primary driver… was property taxes… we received $680,000 in… refunds in the first quarter of last year.” – CFO Bhairav Patel .
“In Colorado and Minneapolis… institutional quality assets are pricing at mid- to high 4% and low 5% cap rates… This represents favorable private market pricing compared to that implied by our stock price.” – SVP Grant Campbell .

Q&A Highlights

Guidance conservatism vs. strong Midwest start: Management said results are “right on plan”; plan assumes ~95% occupancy for the year with flexibility to push rate if demand persists .
OpEx lumpiness and taxes: Expect lumpiness in Q1/Q4 due to appeals timing; raised midpoint of noncontrollable spend by ~~2.25% (~~$650k) on higher assessments (Denver, Minneapolis, Nebraska) .
Retention: Q1 lower due to seasonality and Omaha value-add non-renewals; April retention improved to ~58–59% .
Denver trajectory: April saw ~200 bps m/m improvement in new lease spreads; expect positive new lease trade-outs toward end of 2025; stronger tailwinds into 2026 .
Leasing cadence: Expect peak new lease rate growth in May/June, then flatten and seasonally taper into year-end; full-year thesis intact .

Estimates Context

Metric (Q1 2025)	S&P Global Consensus	Actual	Result
Revenue ($M)	$66.67M (7 est.)*	$67.09M	Beat
GAAP Primary EPS ($)	$(0.18) (3 est.)*	$(0.22)	Miss
FFO/share (REIT) ($)	$1.22*	$1.17 ; Core FFO $1.21	FFO slight miss; Core in line

Notes: Asterisks indicate S&P Global consensus values; Values retrieved from S&P Global.*

Implications: Expect minor upward tweaks to revenue forecasts and limited change to Core FFO trajectory given reaffirmed guidance and in-line Core FFO; GAAP EPS diffs largely reflect timing of property tax and non-cash items, less central to REIT valuation.

Key Takeaways for Investors

Core FFO and operations are tracking guidance; reaffirmation signals confidence despite property tax headwinds and Denver supply digestion .
Occupancy strength (+120 bps YoY to 95.8%) and improving new lease spreads into April underpin near-term revenue stability heading into peak leasing season .
Property tax was the key variance driver YoY in Q1; investors should monitor appeals cadence and Denver assessment outcomes through Q4 .
Private market pricing (mid–high 4% caps in Denver) remains favorable vs. implied public valuation; with >$223M liquidity and low-cost, laddered debt, CSR retains optionality for disciplined external growth .
Midwest and smaller markets continue to provide ballast; Minneapolis improving sooner, Denver showing early signs of inflection—narrative could pivot as supply clears through late 2025/2026 .
For near-term trading, headline catalysts include any leasing updates showing sustained positive new lease spreads in Denver/Minneapolis and any portfolio moves (Salt Lake City entry post-Q1, Fort Collins) that enhance growth profile .
Medium-term, watch Core FFO cadence vs. $4.98 midpoint, expense control from centralization and insurance savings, and recycling into higher-growth Mountain West assets at attractive structures .

Additional references:

Q1 2025 earnings press release (financials, KPIs, guidance reaffirmation) .
Q1 2025 earnings call (prepared remarks, Q&A detail, debt/liquidity metrics) –.
Prior quarter releases for trend context: Q4 2024 (per-share metrics, 2025 initial guidance) ; Q3 2024 (per-share metrics, 2024 updated outlook) –.
Post-quarter strategic update: entry into Salt Lake City; dividend declaration .

CENTERSPACE (CSR)·Q1 2025 Earnings Summary