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Centerspace (CSR)
NYSE:CSR
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Centerspace
(NYSE:CSR)
Select Model
Select Model
Rating:59Neutral
Price Target:
$65.00
▼(-0.96% Downside)
Centerspace's overall score reflects mixed financial performance with concerns over profitability and cash flow management. Technical indicators suggest potential bearish momentum, while valuation metrics indicate possible overvaluation. Positive earnings call highlights and strategic corporate events provide some optimism.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Centerspace's properties, supporting long-term business stability and expansion potential.
Strategic Transactions
Strategic transactions enhance geographic footprint and portfolio quality, improving market diversification and operational efficiency.
Same-Store NOI Growth
Strong same-store NOI growth reflects effective property management and operational execution, contributing to sustainable income streams.
Negative Factors
Profitability Concerns
Negative profitability indicates challenges in cost management and pricing strategy, potentially affecting long-term financial health.
Declining Free Cash Flow
Declining free cash flow may limit Centerspace's ability to invest in growth opportunities and manage debt, impacting future financial flexibility.
Denver Market Challenges
Supply pressures in Denver could lead to reduced rental income and occupancy rates, affecting overall revenue growth and market performance.
Centerspace (CSR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield4.75%
Average Volume (3M)202.95K
Price to Earnings (P/E)48.7
Beta (1Y)0.44
Revenue Growth36.82%
EPS GrowthN/A
CountryUS
Employees374
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)3.19
Shares Outstanding16,703,468
10 Day Avg. Volume213,722
30 Day Avg. Volume202,950
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)1.53
Price to Sales (P/S)3.93
P/FCF Ratio10.44
Enterprise Value/Market Cap2.09
Enterprise Value/Revenue8.71
Enterprise Value/Gross Profit13.26
Enterprise Value/Ebitda20.98
Forecast
1Y Price Target
$68.61Price Target Upside4.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)-0.54
Revenue Forecast (FY)$277.58M
Centerspace Business Overview & Revenue Model
Company DescriptionCenterspace (CSR) is a real estate investment trust (REIT) focused on the acquisition, development, and management of multifamily residential properties. The company operates primarily in the Midwest and Northern Plains regions of the United States, providing high-quality living spaces that cater to a diverse range of residents. Centerspace aims to enhance community living through well-designed properties and exceptional tenant services.
How the Company Makes MoneyCenterspace generates revenue primarily through rental income from its multifamily properties. The company leases residential units to tenants, which provides a steady stream of monthly rental payments. Additionally, Centerspace benefits from lease renewals and rent increases, which can enhance revenue over time. The company may also derive income from ancillary services such as parking fees, maintenance services, and community amenities. Strategic partnerships with local businesses and service providers can also create additional revenue opportunities through referrals and joint promotions, further contributing to its earnings.
Centerspace Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in same-store NOI growth, successful capital recycling, and positive market trends in Minneapolis and North Dakota. However, challenges in the Denver market and adjustments in Core FFO guidance due to increased expenses and strategic transactions were notable lowlights.Q3-2025 Updates
Positive Updates
Same-Store NOI Growth
Reported 4.5% year-over-year growth in NOI within the same-store portfolio. This growth was driven by solid increases in revenue and excellent execution on expenses.
Capital Recycling and Strategic Transactions
Recycled approximately $212 million of capital through strategic transactions, including acquisitions in Colorado and Utah and dispositions in Minnesota. This activity improved the quality and efficiency of the portfolio.
Minneapolis Market Performance
Results benefited from improved occupancy and increasing rental rates, with blended increases of 2.1%. Projections indicate Minneapolis will outperform historical growth in 2026.
North Dakota Market Outperformance
North Dakota continued to be a standout market with portfolio-leading blended increases of 5.2% in the quarter.
Occupancy and Rent Growth
Retention exceeded expectations, hitting 60% in peak leasing quarters. Lease rates remained positive, up 1.3% on a blended basis in the quarter and 1.6% year-to-date.
Negative Updates
Core FFO Guidance Adjustment
Lowered the midpoint of Core FFO guidance by $0.02 to $4.92 due to timing adjustments related to planned strategic transactions and associated G&A costs.
Denver Market Challenges
Denver portfolio faced challenges with supply pressures, resulting in a 3.5% decrease in Q3 blended lease rates. Concession levels in Denver range up to 6 weeks free, affecting revenue.
Higher G&A and Interest Expenses
Increased expectations for G&A and interest expenses contributed to the lower Core FFO guidance.
Company Guidance
During the Centerspace Q3 2025 earnings call, the company provided several key metrics regarding its financial performance and future outlook. The third quarter saw a 4.5% year-over-year growth in net operating income (NOI) within the same-store portfolio, attributed to a 2.4% increase in same-store revenues and a 20 basis point increase in occupancy. However, the company revised its Core FFO guidance down by $0.02 to $4.92 due to timing adjustments related to strategic transactions and general and administrative costs. Centerspace's capital recycling efforts led to approximately $212 million in capital being repositioned through acquisitions in Colorado and Utah and the planned sale of 7 communities in Minneapolis. Despite Denver facing a 3.5% decline in Q3 blended lease rates due to supply pressures, other markets like North Dakota showed strong performance with a 5.2% increase in blended lease rates. The company anticipates a full-year same-store NOI growth of 3% to 3.5% and aims to manage its net debt-to-EBITDA ratio to a low 7x level by year-end, with a pro forma debt profile averaging a 3.6% interest rate and 7.2 years to maturity.Centerspace Financial Statement Overview
Summary
Centerspace shows positive revenue growth but struggles with profitability, as indicated by a negative net profit margin. The balance sheet reflects improved leverage management, yet returns on equity are negative. Cash flow management is concerning due to declining free cash flow.Income Statement
Centerspace shows a consistent revenue growth trend, with a TTM revenue increase of 2.39%. However, profitability is a concern as indicated by a negative net profit margin of -7.56% in the TTM. The gross profit margin remains stable at around 56.7%, but the EBIT margin has decreased significantly from previous years, reflecting operational challenges.65
Positive
Balance Sheet
The company has a moderate debt-to-equity ratio of 0.73 in the TTM, showing improvement from previous years, which indicates better leverage management. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is stable, reflecting a balanced asset structure.55
Neutral
Cash Flow
Operating cash flow remains positive, but the free cash flow has decreased by 23.93% in the TTM, indicating potential cash management issues. The free cash flow to net income ratio is strong at 1.35, suggesting good cash generation relative to net income, despite the latter being negative.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 273.45M | 260.98M | 261.31M | 256.72M | 201.71M | 177.99M |
| Gross Profit | 179.54M | 148.61M | 146.14M | 138.18M | 111.10M | 99.03M |
| EBITDA | 113.52M | 130.74M | 188.83M | 121.32M | 123.00M | 110.42M |
| Net Income | -21.63M | -10.69M | 41.97M | -13.47M | 611.00K | 5.08M |
Balance Sheet | ||||||
| Total Assets | 2.10B | 1.91B | 1.93B | 2.03B | 1.94B | 1.46B |
| Cash, Cash Equivalents and Short-Term Investments | 12.90M | 12.03M | 8.63M | 10.46M | 31.27M | 392.00K |
| Total Debt | 522.06M | 955.38M | 916.02M | 1.01B | 856.05M | 719.19M |
| Total Liabilities | 1.21B | 1.01B | 978.78M | 1.07B | 918.45M | 774.80M |
| Stockholders Equity | 748.64M | 670.46M | 726.39M | 746.10M | 797.36M | 634.77M |
Cash Flow | ||||||
| Free Cash Flow | 104.41M | 98.25M | 89.52M | 35.30M | 48.15M | 30.91M |
| Operating Cash Flow | 104.41M | 98.25M | 89.52M | 91.99M | 84.03M | 61.23M |
| Investing Cash Flow | -117.28M | -50.72M | 120.21M | -160.09M | -267.23M | -164.97M |
| Financing Cash Flow | 61.46M | -43.67M | -212.35M | 41.37M | 214.51M | 64.93M |
Centerspace Technical Analysis
Positive
65.63
Price Trends
62.59
Positive
59.60
Positive
59.78
Positive
Market Momentum
0.36
Positive
56.76
Neutral
72.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSR, the sentiment is Positive. The current price of 65.63 is above the 20-day moving average (MA) of 65.12, above the 50-day MA of 62.59, and above the 200-day MA of 59.78, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSR.
Centerspace Risk Analysis
Centerspace disclosed 51 risk factors in its most recent earnings report. Centerspace reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Centerspace Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.38B | 211.81 | 3.02% | 5.48% | 8.91% | -39.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $1.36B | 22.51 | 5.33% | 2.19% | 3.37% | ― | |
59 Neutral | $1.14B | 48.66 | 4.30% | 4.75% | 36.82% | ― | |
51 Neutral | $826.99M | -5.71 | 171.00% | 7.48% | -4.63% | 42.39% | |
51 Neutral | $717.92M | -15.13 | -12.63% | 7.10% | -4.46% | -206.19% | |
48 Neutral | $285.31M | -28.65 | -4.89% | 6.68% | 1.62% | 11.38% |
* Real Estate Sector Average
CSR
Centerspace
65.63
3.08
4.92%
AIV
Apartment Investment & Management
5.72
0.24
4.38%
VRE
Veris Residential
14.80
-1.54
-9.42%
UMH
Umh
16.23
-1.91
-10.53%
BRT
BRT Apartments
15.11
-2.11
-12.25%
NXRT
NexPoint Residential
28.97
-10.96
-27.45%
Centerspace Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Centerspace Unveils Strategic Transactions in Investor Presentation
Positive
Nov 10, 2025
On November 10, 2025, Centerspace released an investor presentation detailing its financial and operational results for the first nine months of 2025. The company highlighted its strategic transactions, including the acquisition of properties in Salt Lake City and Fort Collins, which enhance its geographic footprint and portfolio quality. Centerspace also completed significant dispositions in St. Cloud and Minneapolis, aiming to improve market diversification and operational efficiency. These moves are part of Centerspace’s strategy to capitalize on valuation mismatches and strengthen its market position.
M&A TransactionsBusiness Operations and Strategy
Centerspace Completes $124M Sale in St. Cloud
Positive
Sep 23, 2025
On September 23, 2025, Centerspace announced the completion of the sale of five communities in St. Cloud, Minnesota, for $124 million, marking its exit from that market. This sale is part of a broader strategy to reposition its portfolio, improve community quality, and diversify holdings, with proceeds aimed at reducing leverage and supporting corporate purposes. The company is also considering various capital allocation strategies to enhance shareholder value.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.