CSR earnings analysis
What we found in CSR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Centerspace reported Q2 revenue of $65.8 million, down 4.0% year over year due primarily to prior dispositions, but modestly above the implied Q1 level. GAAP EPS improved materially to a $0.07 loss from a $0.87 loss, largely because the prior-year quarter included a $14.5 million impairment; underlying Core FFO per diluted share slipped to $1.27 from $1.28. Same-store results were essentially flat and liquidity remained substantial at $242.6 million, though ongoing dispositions, held-for-sale impairment exposure, higher G&A, and increased revolver borrowings temper the outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue down 4.0% year over year
- Q2 revenue was $65.8 million, down $2.8 million (4.0%) from $68.5 million a year earlier, primarily reflecting the prior-year sale of 12 apartment communities. Revenue increased from approximately $65.1 million in Q1 2026, based on six-month revenue of $130.9 million.
- GAAP loss narrowed sharply
- Net loss per diluted share improved to $0.07 from a $0.87 loss a year earlier. Operating income was $8.8 million versus a $6.8 million operating loss, aided by the absence of the prior-year $14.5 million real-estate impairment.
- Same-store operations remained stable
- Same-store NOI increased 0.3% to $31.2 million, as 0.1% higher revenue and a $19,000 reduction in property operating expense offset flat average monthly revenue per occupied home. Weighted average same-store occupancy improved to 96.0% from 95.9%.
- Newer assets offset disposition drag
- Non-same-store and held-for-sale NOI rose $2.9 million to $9.0 million, driven by two communities added during Q2 and Q3 2025. This growth partly offset a $4.0 million decline in NOI from disposed properties.
- Operations funded capital spending
- Liquidity was approximately $242.6 million at June 30, including $8.6 million of cash and $234.0 million available on credit lines. Six-month operating cash flow was $44.1 million and capital improvements were approximately $13.0 million, implying approximately $31.1 million of calculated six-month pre-financing free cash flow.
- Dispositions funded deleveraging and buybacks
- The company sold one 176-home Denver community for $30.0 million and received $29.5 million in net proceeds. It also repurchased 45,310 shares for $2.5 million at an average $55.54 per share, with $94.0 million remaining under the authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Asset-sale program reduces recurring NOI
- Disposition activity continues to pressure earnings: disposition revenue fell $7.3 million and disposition NOI fell $4.0 million year over year in Q2. The company had 13 communities classified as held for sale at June 30, 2026.
- Strategic-review and severance costs rose
- General and administrative expense increased $1.3 million (29.1%) to $5.7 million in Q2, including $835,000 of severance and related costs. For the first six months, strategic-review fees totaled $1.1 million.
- Held-for-sale valuation risk persists
- The company recorded a $9.7 million real-estate impairment in the first six months of 2026 for one community written down to estimated fair value. While there was no Q2 impairment, this reflects valuation risk around planned asset sales.
- Cash declined and revolver usage increased
- Cash and cash equivalents declined to $8.6 million from $12.8 million at year-end, while unsecured credit-facility borrowings increased to $176.0 million from $154.0 million. Total liquidity declined to $242.6 million from $267.9 million.
- No formal risk-factor update; cost pressure remains
- No material changes were made to the risk factors disclosed in the 2025 Form 10-K. However, management cites inflation and supply-chain pressures that could raise energy, labor and construction-material costs, while the six-month same-store NOI declined $790,000 to $61.0 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.07
- Gross margin
- 62.5%
- Operating margin
- 13.4%
- Segment
- Same-store revenue: $50.0 million, up $65,000 (0.1%) year over year; same-store NOI: $31.2 million, up $84,000 (0.3%).
- Segment
- Non-same-store and held-for-sale revenue: $14.2 million, up $4.3 million year over year; NOI: $9.0 million, up $2.9 million.
- Segment
- Other properties revenue: $917,000, up $138,000 (17.7%) year over year; NOI: $622,000, up $80,000.
- Segment
- Disposition revenue: $657,000, down $7.3 million year over year; NOI: $285,000, down $4.0 million.
What they said about what is next.
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management states that it believes liquidity is sufficient for reasonably anticipated demands, while warning that inflation, financing conditions and disposition execution could affect future results.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 4, 2026
- Centerspace's Q1 2026 results showed a 3% decline in revenue to $65.1 million, missing analysts' expectations. The company experienced a significant increase in net loss, reporting $12.9 million, compared to $3.7…
- 10-K · February 17, 2026
- Centerspace (CSR) positions itself as an operationally focused multifamily REIT concentrating on redevelopment, resident experience and selective acquisitions in the Minneapolis/St. Paul, Denver, Boulder/Fort Collins…
- 10-Q · July 29, 2024
- Centerspace reported stable revenue of $65,043,000 for the quarter (up $267,000 vs. Q2 2023) and improved operating income of $7,192,000 (up $1,226,000). Despite operating margin expansion, higher financing and one-time…
- 10-K · February 20, 2024
- Centerspace’s 2023 Form 10-K emphasizes an operations-first multifamily REIT strategy focused on operational enhancements, redevelopment, and selective acquisitions in larger markets (notably Minneapolis/St. Paul and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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