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Mar 31, 2023
Centerspace Q1 2023 Earnings Report
Centerspace's financial performance for Q1 2023 was announced, highlighted by a gain on sale of real estate and an increase in core FFO per share.
Key Takeaways
Centerspace reported a net income of $2.76 per diluted share for Q1 2023, a significant increase compared to the net loss of $0.68 per diluted share in Q1 2022. Core FFO per diluted share also increased by 9.2% to $1.07. Same-store revenues grew by 10.5%, driving an 11.0% increase in NOI.
Successfully executed the sale of nine non-core apartment communities for $144.3 million, resulting in a gain on sale of $60.2 million.
Net income was $2.76 per diluted share, a significant improvement from the net loss of $0.68 per diluted share in the same period last year.
Core FFO per diluted share increased by 9.2% to $1.07.
Same-store revenues increased by 10.5%, leading to an 11.0% increase in NOI.
Revenue by Geographic Location
Forward Guidance
Centerspace revised its 2023 financial outlook, maintaining the same-store revenue growth and expense projections, while adjusting the net income and FFO per share ranges.
Positive Outlook
- Same-store revenue growth is projected to be between 6.00% and 8.00%.
- Same-store controllable expenses are expected to increase between 3.00% and 4.50%.
- Non-controllable expenses are projected to increase between 8.00% and 9.50%.
- Value-add expenditures are estimated to be between $24.5 million and $27.5 million.
- Potential dispositions are projected to generate proceeds between $155.0 million and $165.0 million.
Challenges Ahead
- General and administrative and property management expenses are expected to be between $32.3 million and $31.5 million.
- Casualty losses are projected to be between $1.5 million and $1.3 million.
- Interest expense is estimated to be between $37.4 million and $36.9 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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