Centerspace (CSR) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 4.58%
• Average Volume (3M): 225.99K
• Price to Earnings (P/E): 61.7
• Beta (1Y): 0.40
• Revenue Growth: 36.82%
• EPS Growth: N/A
• Country: US
• Employees: 374
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -1.10
• Shares Outstanding: 16,774,338
• 10 Day Avg. Volume: 266,135
• 30 Day Avg. Volume: 225,989
• PEG Ratio: -0.35
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 3.16
• P/FCF Ratio: 11.34
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 5.84
• Enterprise Value/Gross Profit: 191.54
• Enterprise Value/Ebitda: 11.41
• 1Y Price Target: $70.71
• Price Target Upside: 12.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.41
• Revenue Forecast (FY): $272.53M

• Rating: 55 Neutral
• Price Target: $65.00 ▲(3.34% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mid-range financial performance (steady cash generation and improved leverage offset by volatile net income and weaker 2025 FCF growth). Technicals add downside pressure due to negative momentum signals, while valuation is held back by a high P/E despite a supportive dividend. Earnings-call guidance points to limited near-term upside with market and regulatory headwinds, partially offset by improved liquidity and disciplined execution.

Positive Factors

Improved Leverage & Balance Sheet

A materially lower debt load and debt-to-equity reduction to ~0.63 meaningfully improves financial flexibility. This reduces refinancing risk, supports covenant headroom, and gives management durable optionality for capex, dividends, and selective transactions over the next several quarters.

Steady Operating Cash Flow & Liquidity

Consistent OCF in the $84M–$98M band and substantial liquidity provide a durable cash cushion to fund operations, cover near-term maturities, and sustain distributions. Reliable cash generation helps absorb earnings volatility and finance targeted value-add spending without immediate external funding.

Disciplined Portfolio Repositioning

Active, selective transactions that raised average rents and NOI reflect durable portfolio optimization. Shifting into higher-quality, higher-rent communities and pruning underperformers strengthens recurring revenue mix and long-term competitive positioning in Midwest and select growth markets.

Negative Factors

Earnings & FCF Volatility

Volatile reported earnings and a sharp deceleration in FCF growth undermine predictability of distributable cash and capital allocation. Persistent bottom-line swings can impair dividend coverage, limit buyback or acquisition capacity, and raise scrutiny from lenders across the next several quarters.

Colorado Regulatory Headwinds

Regulatory cuts to RUBS recoveries create a recurring revenue headwind in Colorado, reducing expense pass-throughs and compressing net revenue. This structural policy shift lowers recoverable income and will materially dent margins and growth in that market over the coming year unless offset by pricing or cost actions.

Denver Oversupply & Concession Pressure

Elevated new deliveries and resulting concessioning in Denver are a durable demand-supply imbalance that depresses new-lease spreads and occupancy. Protracted concessions and weaker leasing can reduce long-term revenue momentum and limit margin expansion for properties exposed to that market.

Centerspace Business Overview & Revenue Model

Company Description

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2021, Centerspace owned 62 apartment communities consisting of 11,579 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

How the Company Makes Money

Centerspace 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 Financial Statement Overview

Summary

Mixed fundamentals: revenue is growing and operating cash flow is steady, with a meaningful leverage improvement in 2025. Offsetting that, reported net income has been volatile (profit in 2023 followed by losses in 2024–2025) and free-cash-flow growth weakened in 2025 with reduced cash-flow coverage versus debt.

Income Statement

Revenue has generally trended up (2025: +7.8% after a flat 2024), and profitability at the operating level looks solid with very high gross margin in 2025 and a strong EBITDA margin. The key weakness is bottom-line volatility: net income swung from a strong profit in 2023 to losses in 2024 and a near-breakeven loss in 2025, keeping net margin weak/unstable despite decent operating performance.

Balance Sheet

Leverage has improved materially, with total debt dropping sharply in 2025 and debt-to-equity moving from ~1.26–1.42 (2023–2024) down to ~0.63 in 2025, which strengthens financial flexibility. The offset is that shareholder returns have been inconsistent (negative in 2024 and not supported by positive earnings in 2025), and the balance sheet still carries meaningful debt for the size of equity.

Cash Flow

Operating cash flow has been steady and resilient (~$84M–$98M across recent years), supporting the business through earnings swings, and free cash flow is strong in 2024–2025 at roughly the same level as operating cash flow. However, free cash flow growth turned sharply negative in 2025, and cash flow relative to debt weakened meaningfully in 2025 versus 2024, implying less cushion if refinancing conditions tighten.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	353.13M	260.98M	261.31M	256.72M	201.71M
Gross Profit	10.76M	148.61M	146.14M	138.18M	111.10M
EBITDA	180.67M	130.74M	188.83M	121.32M	123.00M
Net Income	17.59M	-10.69M	41.97M	-13.47M	611.00K
Balance Sheet
Total Assets	1.93B	1.91B	1.93B	2.03B	1.94B
Cash, Cash Equivalents and Short-Term Investments	12.83M	12.03M	8.63M	10.46M	31.27M
Total Debt	1.02B	955.38M	916.02M	1.01B	856.05M
Total Liabilities	1.08B	1.01B	978.78M	1.07B	918.45M
Stockholders Equity	725.10M	670.46M	726.39M	746.10M	797.36M
Cash Flow
Free Cash Flow	98.45M	98.25M	89.52M	35.30M	48.15M
Operating Cash Flow	98.45M	98.25M	89.52M	91.99M	84.03M
Investing Cash Flow	-26.87M	-50.72M	120.21M	-160.09M	-267.23M
Financing Cash Flow	-69.06M	-43.67M	-212.35M	41.37M	214.51M

Centerspace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 62.9 is below the 20-day moving average (MA) of 63.51, below the 50-day MA of 64.64, and above the 200-day MA of 60.43, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 27.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSR.

Centerspace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UMH	63 Neutral	$1.28B	214.20	2.91%	5.66%	8.91%	-39.58%
VRE	62 Neutral	$1.76B	23.49	5.33%	2.17%	3.37%	―
CSR	55 Neutral	$1.11B	61.70	4.30%	4.58%	36.82%	―
BRT	52 Neutral	$279.03M	-27.82	-4.89%	6.98%	1.62%	11.38%
NXRT	47 Neutral	$719.24M	-22.34	-12.63%	7.06%	-4.46%	-206.19%
AIV	45 Neutral	$635.37M	-4.40	171.00%	7.42%	-4.63%	42.39%

Centerspace Corporate Events

Centerspace Outlines 2026 Outlook and Portfolio Strategy

On February 27, 2026, Centerspace released an investor presentation outlining 2025 performance and its 2026 financial outlook, showing modest same-store revenue growth guidance centered around 0.9% and NOI growth around 0.8%, alongside Core FFO per share guidance roughly flat to slightly up versus 2025. The company plans same-store capital expenditures of $1,250 to $1,350 per home and value-add spending of up to $12.5 million, positioning its growth profile as favorable relative to small- and mid-cap apartment peers and broader multifamily benchmarks.

The presentation detailed portfolio and operating trends, including leasing spreads normalizing to seasonal patterns through early 2026, strong resident satisfaction scores above national averages, stable retention near 50%, and higher-income applicant profiles. It also highlighted $493 million of 2025 transaction activity, including entering Salt Lake City, expanding in Fort Collins, exiting St. Cloud, and pruning Minneapolis assets, which has raised average rents, boosted NOI margins, and supported share repurchases that took advantage of what management sees as a persistent discount of CSR’s trading price to private-market asset values.

Since 2017, Centerspace has reshaped its portfolio by acquiring 37 higher-quality communities for $1.8 billion and selling 77 less efficient assets for $811 million, increasing homes per community and shifting more NOI into large metropolitan areas. These moves, combined with innovation in deal structuring and operating practices, are intended to enhance long-term portfolio returns, strengthen balance-sheet flexibility, and improve the company’s competitive positioning in the multifamily REIT sector.

The most recent analyst rating on (CSR) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Centerspace stock, see the CSR Stock Forecast page.