Centerspace’s Growth Potential Highlighted by Improved Lease Spreads and Occupancy Rates Amidst Rising Expenses

John Kim, an analyst from BMO Capital, maintained the Buy rating on Centerspace (CSR – Research Report). The associated price target remains the same with $77.00.

John Kim has given his Buy rating due to a combination of factors that highlight Centerspace’s potential for growth despite some challenges. The company experienced a sequential improvement in new lease spreads, outperforming the Apartment sector average, and further gains were observed in April. This indicates a positive trend in lease growth rates, with new and blended lease rates showing significant improvement in the second quarter compared to the first quarter.
Additionally, Centerspace saw an increase in occupancy rates and a decrease in costs related to administration, marketing, insurance, and repairs and maintenance. These positive developments were partially offset by rising same-store expenses, particularly due to increased real estate taxes and utility costs. However, the overall outlook remains favorable, as evidenced by the company’s ability to maintain its 2025 guidance above market expectations.

In another report released on April 21, Raymond James also upgraded the stock to a Buy with a $66.00 price target.