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…
Earnings analysis · 10-Q
CSR earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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,…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.07
What stood out
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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.
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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.
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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%.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.