Centerspace (CSR) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 4.94%
• Average Volume (3M): 107.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -1.81%
• EPS Growth: -33.33%
• Country: US
• Employees: 374
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Residential
• EPS (TTM): -0.22
• Shares Outstanding: 16,735,008
• 10 Day Avg. Volume: 112,842
• 30 Day Avg. Volume: 107,381
• PEG Ratio: -51.70
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $71.45
• Price Target Upside: 16.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: $66.00 ▲( 7.91% Upside)

Centerspace's score is driven primarily by stable financial performance with significant leverage risks, balanced by strong occupancy and revenue growth. Technical indicators and market sentiment provide additional support, though valuation concerns persist due to profitability issues.

Positive Factors

Financial Performance

CSR is in a good position from a liquidity standpoint with $11.9 million of cash along with $211.3 million available on the line of credit for total liquidity of $223.2 million.

Occupancy Rates

Weighted average occupancy was 95.8% which was up 120 basis points year-over-year and up 20 basis points from the previous quarter, highlighting the company's focus on maintaining strong occupancy.

Valuation

CSR shares trade at a significant discount to NAV and large-cap multifamily sector averages, presenting a potential investment opportunity.

Negative Factors

Market Performance

Denver continues to drag, with NOI decreasing 4.2% year-over-year.

Retention Rates

Retention rate decelerated significantly to 49.2%.

Supply Analysis

CSR scored worse than expected in our proprietary supply analysis despite a positive outlook in markets outside of Denver.

Centerspace Business Overview & Revenue Model

Company Description

Centerspace (CSR) is a real estate investment trust (REIT) that specializes in the ownership, management, acquisition, and redevelopment of apartment communities. The company operates primarily in the residential real estate sector, focusing on providing quality living spaces across various markets in the upper Midwest region of the United States. Centerspace is committed to enhancing the living experience of its residents through customer service excellence and community engagement.

How the Company Makes Money

Centerspace generates revenue primarily through the rental income of its multifamily residential properties. The company earns money by leasing apartments to individuals and families, collecting monthly rent payments as its main source of income. Additional revenue streams may include fees for services such as pet fees, parking, and other tenant-related charges. Centerspace's earnings are also influenced by its strategic acquisitions and redevelopment projects, which aim to improve property value and increase rental income. The company's performance is further supported by its property management operations, which help to maintain high occupancy rates and customer satisfaction. Significant partnerships with local businesses and service providers can also contribute to its revenue by enhancing the overall living experience for residents, thus attracting and retaining tenants.

Centerspace Financial Statement Overview

Summary

Centerspace presents a mixed financial picture with stable revenue growth but persistent profitability challenges. The high leverage poses a risk, though the company maintains a solid equity base. Cash flows remain robust, providing some cushion against operational hurdles. Overall, the financial health is stable but requires attention to debt levels and profitability improvement.

Income Statement

Centerspace shows moderate revenue growth over the periods, with a slight increase in TTM revenue. However, consistent net losses indicate profitability challenges. The gross profit margin remains strong, yet declining EBIT and EBITDA margins reflect operational cost pressures. Revenue growth is positive but slowing, suggesting stability with caution needed on profitability.

Balance Sheet

The balance sheet shows a stable equity position relative to total assets, indicating a solid foundation. However, the debt-to-equity ratio is high, suggesting significant leverage risk. The return on equity has fluctuated, with recent periods showing negative returns due to net losses, highlighting profit generation issues.

Cash Flow

Centerspace has shown positive operating cash flow throughout the periods, with recent improvements in free cash flow. However, the free cash flow growth rate is inconsistent. The operating cash flow covers net income, showcasing strong cash generation capability despite profitability issues. Financing activities show a decrease, indicating reduced external funding reliance.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
263.57M	260.98M	261.31M	256.72M	201.71M	177.99M
	Gross Profit
123.72M	148.61M	146.14M	138.18M	111.10M	99.03M
	EBIT
21.66M	20.48M	84.45M	13.86M	2.72M	8.34M
	EBITDA
133.10M	130.23M	188.83M	121.62M	122.06M	85.59M
	Net Income Common Stockholders
-6.98M	-10.69M	41.97M	-15.02M	-31.38M	-24.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.92M	12.03M	8.63M	10.46M	31.27M	392.00K
	Total Assets
1.89B	1.91B	1.93B	2.03B	1.94B	1.46B
	Total Debt
955.45M	955.38M	916.02M	1.01B	856.05M	719.19M
	Net Debt
943.54M	943.36M	907.39M	997.17M	824.78M	718.80M
	Total Liabilities
1.01B	1.01B	978.78M	1.07B	918.45M	774.80M
	Stockholders Equity
653.36M	670.46M	726.39M	746.10M	797.36M	634.77M
Cash Flow		Free Cash Flow
121.08M	98.25M	89.52M	35.30M	48.15M	30.91M
	Operating Cash Flow
99.27M	98.25M	89.52M	91.99M	84.03M	61.23M
	Investing Cash Flow
-46.57M	-50.72M	120.21M	-160.09M	-267.23M	-164.97M
	Financing Cash Flow
-48.39M	-43.67M	-212.35M	41.37M	214.51M	64.93M

Centerspace Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSR, the sentiment is Negative. The current price of 61.16 is below the 20-day moving average (MA) of 61.33, above the 50-day MA of 61.07, and below the 200-day MA of 65.66, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSR.

Centerspace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSR	67 Neutral	$1.08B	―	-1.55%	4.94%	-1.81%	-33.33%
UMH	65 Neutral	$1.38B	147.98	3.45%	5.22%	8.01%	―
Sector *	60 Neutral	$2.76B	10.33	0.49%	8507.90%	5.95%	-17.56%
NXRT	55 Neutral	$845.40M	866.19	-7.19%	5.84%	-7.44%	-143.64%
BRT	54 Neutral	$288.46M	―	-4.28%	6.55%	2.39%	-407.57%
VRE	52 Neutral	$1.36B	―	-2.76%	1.99%	-3.20%	76.43%
AIV	48 Neutral	$1.11B	―	-48.27%	―	9.28%	34.42%

Centerspace Corporate Events

Centerspace Reports Q1 2025 Financial Results

Centerspace, a company listed on the NYSE under the ticker CSR, reported its financial and operational results for the first quarter of 2025 on May 1, 2025. The company experienced a 4.0% increase in revenue compared to the first quarter of 2024, reaching $67.1 million. Despite a net loss of $0.22 per diluted share, this was an improvement from the $0.37 loss per share in the same period last year. The Core FFO per diluted share slightly decreased to $1.21, attributed to a rise in same-store property taxes. Centerspace also updated its financial outlook for 2025, maintaining its previous guidance ranges.

Centerspace Board Member Jeffrey Caira Announces Retirement

On March 7, 2025, Jeffrey P. Caira, a member of Centerspace’s Board of Trustees, announced his decision to retire and not seek re-election at the upcoming Annual Meeting of Shareholders on May 14, 2025. Caira’s retirement marks a significant transition for the company, as he has played a crucial role in guiding Centerspace’s strategic focus towards multifamily operations since his appointment in 2015. The company has been actively refreshing its board, adding new members in 2024, which aligns with its ongoing commitment to growth and operational excellence.

Centerspace Unveils 2024 Financial Results and 2025 Outlook

On February 28, 2025, Centerspace released an investor presentation detailing its financial and operational results for the year ending December 31, 2024. The company reported growth in average rents despite economic volatility and outlined its strategic focus on increasing distributable cash flow and enhancing operational efficiencies. The presentation also highlighted Centerspace’s portfolio improvements since 2017, including strategic acquisitions and dispositions to optimize its market presence. The company’s financial outlook for 2025 includes guidance on revenue, expenses, and net income, with a focus on maintaining a strong balance sheet to support growth.