Centerspace Reports Strong First Quarter 2021 Financial Results - PRNewswire

MINNEAPOLIS, May 3, 2021 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the quarter ended March 31, 2021. The tables below show Net Income, Funds from Operations ("FFO")1, and Core FFO1, all on a per share basis, for the three months ended March 31, 2021; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted-Average Occupancy for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020.
























































Three Months Ended March 31,



Per Share




2021




2020



Net Income - diluted




$



(0.49)





$



(0.69)




FFO - diluted




$



0.92





$



0.66




Core FFO - diluted




$



0.95





$



0.90

























































Year-Over-Year


Comparison




Sequential


Comparison



Same-Store Results




Q1 2021 vs. Q1 2020




Q1 2021 vs. Q4 2020



Revenues




0.4



%




(0.2)



%



Expenses




(0.9)



%




5.5



%



NOI




1.4



%




(3.9)



%





















































Three months ended



Same-Store Results




March 31, 2021




December 31, 2020




March 31, 2020



Weighted Average Occupancy




94.9



%




94.7



%




95.3



%

































(1)



NOI, FFO, Core FFO, and same-store results are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" below.






Highlights



  • In April 2021, Centerspace paid its 200th consecutive quarterly distribution since its initial dividend in 1971;

  • Net Loss was $(0.49) per diluted share for the first quarter of 2021, compared to Net Loss of $(0.69) per diluted share for the same period of 2020;

  • Core FFO increased 5.6% to $0.95 per diluted share for the three months ended March 31, 2021, compared to $0.90 for the three months ended March 31, 2020;

  • Same-store revenues increased by 0.4% for the first quarter of 2021 compared to the first quarter of 2020;

  • Same-store expenses decreased by 0.9% for the first quarter of 2021 as compared to the first quarter of 2020, contributing to NOI growth of 1.4%;

  • In a press release issued April 19, 2021, the company announced a 122% increase to its mid-point earnings per share outlook and a 4.2% increase to mid-point Core FFO outlook for 2021;

  • Continued to grow the portfolio in the core market of Denver through the acquisition of Union Pointe, a 256-home apartment community in Longmont, Colorado;

  • Issued $50.0 million of 2.7% unsecured Series C Notes due June 6, 2030. In concert with the issuance, the company amended and expanded its Note Purchase Private Shelf Agreement to increase the aggregate amount under the agreement from $150.0 million to $225.0 million; and

  • Continued to strengthen the balance sheet by issuing 164,279 common shares under the 2019 ATM program for net proceeds of $11.9 million.


Acquisitions and Dispositions


During the quarter, Centerspace acquired Union Pointe, a 256-home apartment community in Longmont, Colorado for an aggregate purchase price of $76.9 million.


Subsequent to the end of the quarter, Centerspace received $2.0 million of non-refundable deposits and expects to complete the sale of select assets in Rochester, Minnesota on May 24th. The sale consists of 589 apartment homes in six communities with an aggregate sale price of $60.0 million. The proceeds from this disposition are expected to be used to pay down the line of credit and increase liquidity.


Balance Sheet


At the end of the first quarter, Centerspace had $79.3 million of total liquidity on its balance sheet, consisting of $68.5 million available under the line of credit and cash and cash equivalents of $10.8 million.


Improved 2021 Financial Outlook


Centerspace's 2021 financial outlook with midpoints of $0.30 for Earnings per Share and $3.60 for Core FFO is consistent with its release issued April 19, 2021, and up from its February expectation of $0.14 and $3.455, respectively. For additional information, see S-14 of the supplemental. These ranges should be considered in their entirety. The revised outlook is:
































































Previous Outlook for 2021



Updated Outlook for 2021




Low



High



Low



High



Earnings per Share – diluted



$(0.18)



$0.45



$0.10



$0.50



Same-Store Revenue



(0.5)%



3.0%



0.0%



3.0%



Same-Store Expenses



4.0%



7.5%



3.0%



5.0%



Same-Store NOI



(3.5)%



(0.5)%



(1.5)%



1.5%



FFO per Share – diluted



$3.17



$3.52



$3.38



$3.62



Core FFO per Share – diluted



$3.29



$3.62



$3.48



$3.72






COVID-19 Developments


The COVID-19 pandemic, including the associated economic disruptions, has continued to impact business and operations since March 2020. The company continues to prioritize the health and well-being of its residents, team members, and the communities it serves.


A discussion of the ongoing and potential effects of the COVID-19 pandemic on financial condition, results of operations, and cash flows can be found in "Management's Discussion and Analysis of Financial Conditions and Results of Operations" presented in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021. For a more detailed description of the risks and uncertainties affecting business, see the risk factors presented in Item 1A in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021.


Upcoming Events


On May 18, 2021, at 9:00 a.m. CDT, Centerspace will be holding its 2021 Annual Meeting of Shareholders live via the Internet. Shareholders can participate in and/or vote at the Annual Meeting via live webcast over the Internet at www.virtualshareholdingmeeting.com/CSR2021. Shareholders must enter the 16-digit control number found in their proxy materials, either on the Notice of Internet Availability of Proxy Materials, the proxy card, or in the instructions that accompanied the proxy materials to enter the 2021 Annual Meeting. The company urges the shareholders to vote and submit proxies in advance of the Annual Meeting by one of the methods described in the proxy materials for the Annual Meeting. The Annual Meeting webcast will begin promptly at 9:00 a.m. CDT. On the day of the Annual Meeting, the company recommends that you log into its virtual meeting at least 15 minutes prior to the scheduled start time to ensure you can access the meeting.


Earnings Call























































Live webcast and replay:  https://ir.centerspacehomes.com






Live Conference Call




Conference Call Replay



Tuesday, May 4, 2021, at 10:00 AM ET




Replay available until May 18, 2021



USA Toll Free Number



1-877-509-9785




USA Toll Free Number



1-877-344-7529



International Toll Free Number



1-412-902-4132




International Toll Free Number



1-412-317-0088



Canada Toll Free Number



1-855-669-9657




Canada Toll Free Number



1-855-669-9658






Conference Number



10153254






Supplemental Information


Supplemental Operating and Financial Data for the quarter ended March 31, 2021 included herein ("Supplemental Information"), is available in the Investors section on Centerspace's website at www.centerspacehomes.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.  


About Centerspace


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 March 31, 2021, Centerspace owned 68 apartment communities consisting of 12,168 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2020 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.


Forward-Looking Statements


Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on the company's current expectations and assumptions, and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Such risks, uncertainties, and other factors that might cause such differences include, but are not limited to those risks and uncertainties detailed from time to time in Centerspace's filings with the Securities and Exchange Commission, including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in its Annual Report on Form 10-K for the year ended December 31, 2020, in its subsequent quarterly reports on Form 10-Q, and in other public reports. The company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.


Contact Information


Investor Relations
Emily Miller

Phone: 701-837-7104

E-mail: [email protected]


Marketing & Media
Kelly Weber

Phone: 701-837-7104

[email protected]







































































































































Common Share Data (NYSE: CSR)






1st Quarter




4th Quarter




3rd Quarter




2nd Quarter




1st Quarter





2021




2020




2020




2020




2020



High closing price




$



73.42





$



74.55





$



73.53





$



76.82





$



84.68




Low closing price




$



68.00





$



65.79





$



61.87





$



44.36





$



52.55




Average closing price




$



71.37





$



70.30





$



70.15





$



63.91





$



71.62




Closing price at end of quarter




$



68.00





$



70.64





$



65.17





$



70.49





$



55.00




Common share distributions – annualized




$<