Centerspace (CSR) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: 5.11%
• Average Volume (3M): 103.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -0.63%
• EPS Growth: -123.59%
• Country: US
• Employees: 374
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Residential
• EPS (TTM): -0.87
• Shares Outstanding: 16,756,690
• 10 Day Avg. Volume: 92,069
• 30 Day Avg. Volume: 103,531
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 8.37
• Enterprise Value/Gross Profit: 14.76
• Enterprise Value/Ebitda: 18.46
• 1Y Price Target: $67.13
• Price Target Upside: 12.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $63.00 ▲(5.88% Upside)

Centerspace's overall stock score is driven by solid financial performance with strong cash flow management, despite ongoing profitability challenges. Technical indicators suggest neutral momentum, while valuation reflects income potential through dividends. The earnings call highlighted strategic expansions and market challenges, balancing positive and negative aspects.

Positive Factors

Financial Performance

CSR had a 2Q25 Core FFOps beat, supported by strong sequential acceleration in lease spreads, improved occupancy, and easing SS expenses.

Liquidity Position

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.

Market Position

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

Negative Factors

Financial Guidance

CSR lowered FY25 Core FFOps guidance below the Street due to higher interest expense, as revolver borrowings rose ahead of $210-230M in planned dispositions.

Interest Expenses

FY25 interest expense guidance was raised significantly due to increased borrowing costs.

Regional Performance

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

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 derived from its multifamily and commercial properties. The company charges tenants monthly rent, which constitutes the bulk of its earnings. Additionally, Centerspace benefits from property management fees and may engage in the sale of properties to realize capital gains. The company often forms partnerships with local developers and municipalities to enhance its property offerings and expand its portfolio. Strategic investments in high-demand markets further contribute to its profitability, as increased occupancy rates and rental prices can significantly boost revenue.

Centerspace Financial Statement Overview

Summary

Centerspace demonstrates solid revenue growth and operational efficiency, as evidenced by improved gross profit and EBITDA margins. However, profitability remains a concern with persistent negative net income and ROE. The company has made strides in managing leverage, as seen in the improved debt-to-equity ratio. Strong free cash flow growth and cash conversion ratios highlight effective cash management, positioning the company well for future financial stability.

Income Statement

Centerspace shows a stable revenue growth with a TTM increase of 1.33%. The gross profit margin improved to 64.65% in TTM, indicating strong operational efficiency. However, the net profit margin remains negative at -2.21%, reflecting ongoing profitability challenges. The EBIT margin decreased to 6.63% in TTM, suggesting reduced operational profitability. EBITDA margin is healthy at 44.93%, showing strong cash flow generation from operations.

Balance Sheet

The debt-to-equity ratio improved to 0.73 in TTM, indicating better leverage management compared to previous years. However, the return on equity remains negative at -0.87%, highlighting challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced capital structure, but the negative ROE indicates potential profitability issues.

Cash Flow

Free cash flow growth is strong at 13.36% in TTM, reflecting improved cash generation. The operating cash flow to net income ratio is 0.20, indicating a solid conversion of earnings into cash. The free cash flow to net income ratio is high at 1.35, suggesting effective cash management despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	267.08M	260.98M	261.31M	256.72M	201.71M	177.99M
Gross Profit	151.43M	148.61M	146.14M	138.18M	111.10M	99.03M
EBITDA	121.08M	130.23M	188.83M	121.62M	122.06M	85.59M
Net Income	-20.20M	-10.69M	41.97M	-15.02M	-31.38M	-24.00M
Balance Sheet
Total Assets	2.01B	1.91B	1.93B	2.03B	1.94B	1.46B
Cash, Cash Equivalents and Short-Term Investments	12.38M	12.03M	8.63M	10.46M	31.27M	392.00K
Total Debt	515.58M	955.38M	916.02M	1.01B	856.05M	719.19M
Total Liabilities	1.17B	1.01B	978.78M	1.07B	918.45M	774.80M
Stockholders Equity	710.05M	670.46M	726.39M	746.10M	797.36M	634.77M
Cash Flow
Free Cash Flow	137.26M	98.25M	89.52M	35.30M	48.15M	30.91M
Operating Cash Flow	101.68M	98.25M	89.52M	91.99M	84.03M	61.23M
Investing Cash Flow	-186.77M	-50.72M	120.21M	-160.09M	-267.23M	-164.97M
Financing Cash Flow	87.87M	-43.67M	-212.35M	41.37M	214.51M	64.93M

Centerspace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 59.5 is above the 20-day moving average (MA) of 55.92, above the 50-day MA of 57.89, and below the 200-day MA of 61.45, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 91.49 is Negative, 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
CSR	66 Neutral	$1.05B	―	-3.35%	5.11%	-0.63%	-123.59%
UMH	63 Neutral	$1.33B	117.04	3.64%	5.61%	8.39%	―
VRE	55 Neutral	$1.47B	―	-1.91%	1.97%	0.26%	77.82%
NXRT	55 Neutral	$863.09M	866.19	-11.85%	5.77%	-6.02%	-156.44%
Sector *	53 Neutral	$1.21B	2.91	-5.63%	5.83%	-2.74%	-80.64%
AIV	50 Neutral	$1.11B	―	-38.53%	7.66%	7.07%	69.54%
BRT	48 Neutral	$297.15M	―	-4.52%	6.25%	2.16%	11.18%

Centerspace Corporate Events

Centerspace Releases 2024 ESG and TCFD Reports

On August 13, 2025, Centerspace announced the release of its 2024 Environmental, Social, and Governance (ESG) Report, along with its first Task Force on Climate Related Financial Disclosures (TCFD) report. This marks the company’s sixth annual ESG report, highlighting its dedication to sustainable practices in the multifamily industry. The 2024 report aligns with GRI’s Universal and Topic Standards and the United Nations Sustainable Development Goals, achieving four out of five ESG goals ahead of schedule, and improving its GRESB score from 63 to 70. Centerspace’s commitment to sustainability is further demonstrated by its efforts in climate risk mitigation and resource management, aiming to synthesize growth with environmental care.

Centerspace Announces $100 Million Share Buyback Program

On August 4, 2025, Centerspace announced a share repurchase program authorized by its Board of Trustees, allowing the company to buy back up to $100 million of its common shares by July 31, 2026. The program’s implementation will depend on market conditions and other considerations, with no obligation to repurchase a specific number of shares. Additionally, Centerspace reported its second-quarter 2025 financial results, highlighting a net loss of $0.87 per diluted share and a 5.4% increase in revenue compared to the previous year. The company also acquired its first apartment community in Salt Lake City for $149 million and updated its 2025 financial outlook, projecting improvements in same-store revenue and NOI.

Centerspace Expands with Salt Lake City Acquisition

On May 30, 2025, Centerspace closed on its first acquisition in Salt Lake City for $149 million, marking its expansion into this market. The company also plans to acquire a community in Fort Collins, CO, and is marketing its Saint Cloud, MN, and parts of its Minneapolis portfolios for sale. These transactions are part of Centerspace’s strategy to enhance its Midwest and Mountain West multifamily REIT focus. Additionally, Centerspace increased its credit facility to $400 million to support these activities and declared a quarterly dividend of $0.77 per share/unit, payable on July 10, 2025.