3 unchanged sentences
(in thousands, except per share data)
−Removed: September 30, 2025 December 31, 2024
+Added: March 31, 2026 December 31, 2025
ASSETS (unaudited)
6 unchanged sentences
Other assets 44,928 46,620
−Removed: Assets held for sale, net 86,302 —
TOTAL ASSETS $ 1,887,586 $ 1,926,167
4 unchanged sentences
Mortgages payable, net 565,611 566,660
−Removed: Liabilities held for sale, net 420 —
TOTAL LIABILITIES $ 1,071,506 $ 1,080,411
COMMITMENTS AND CONTINGENCIES (NOTE 10)
−Removed: SERIES D PREFERRED UNITS (Cumulative convertible preferred units, $ 100 par value, 59 units issued and outstanding at September 30, 2025 and 166 units issued and outstanding at December 31, 2024, aggregate liquidation preference of $ 5,940 at September 30, 2025)
+Added: SERIES D PREFERRED UNITS (Cumulative convertible preferred units, $ 100 par value, 59 units issued and outstanding at March 31, 2026 and December 31, 2025, aggregate liquidation preference of $ 5,940 at March 31, 2026)
$ 5,940 $ 5,940
−Removed: Common Shares of Beneficial Interest (Unlimited authorization, no par value, 16,703 shares issued and outstanding at September 30, 2025 and 16,719 shares issued and outstanding at December 31, 2024)
+Added: Common Shares of Beneficial Interest ( Unlimited authorization, no par value, 16,803 shares issued and outstanding at March 31, 2026 and 16,761 shares issued and outstanding at December 31, 2025)
1,370,461 1,368,834
Accumulated distributions in excess of net income ( 675,493 ) ( 649,678 )
−Removed: Accumulated other comprehensive loss — ( 407 )
Total shareholders’ equity $ 694,968 $ 719,156
1 unchanged sentence
115,172 120,660
−Removed: Noncontrolling interests – consolidated real estate entities 4,307 673
TOTAL EQUITY $ 810,140 $ 839,816
4 unchanged sentences
(in thousands, except per share data)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
+Added: Three Months Ended March 31,
REVENUE $ 65,069 $ 67,093
2 unchanged sentences
Property management expense 2,379 2,433
−Removed: Casualty loss (gain)
−Removed: 127 ( 412 ) 1,058 918
+Added: Casualty loss, net of recoveries ( 21 ) 532
Depreciation and amortization 26,498 27,654
2 unchanged sentences
TOTAL EXPENSES $ 70,462 $ 62,347
−Removed: Gain (loss) on sale of real estate and other investments
−Removed: 79,531 — 79,531 ( 577 )
−Removed: Operating income
+Added: Operating income (loss)
( 5,393 ) 4,746
Interest expense ( 10,470 ) ( 9,635 )
−Removed: Loss on extinguishment of debt ( 3 ) — ( 3 ) —
Interest and other income
$ ( 14,973 ) $ ( 4,181 )
−Removed: NET INCOME (LOSS)
−Removed: $ 65,408 $ ( 1,951 ) $ 44,442 $ ( 8,406 )
Distributions to Series D preferred unitholders ( 57 ) ( 160 )
−Removed: Net (income) loss attributable to noncontrolling interests – Operating Partnership and Series E preferred units
−Removed: ( 9,197 ) 1,095 ( 6,071 ) 2,735
+Added: Net loss attributable to noncontrolling interests – Operating Partnership and Series E preferred units
Net income attributable to noncontrolling interests – consolidated real estate entities
−Removed: ( 2,319 ) ( 32 ) ( 2,408 ) ( 98 )
−Removed: Net income (loss) attributable to controlling interests
−Removed: 53,783 ( 1,048 ) 35,534 ( 6,249 )
−Removed: Distributions to preferred shareholders — ( 1,607 ) — ( 4,821 )
−Removed: Redemption of preferred shares — ( 3,511 ) — ( 3,511 )
−Removed: NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
+Added: NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
$ ( 12,889 ) $ ( 3,734 )
−Removed: NET INCOME (LOSS)
$ ( 14,973 ) $ ( 4,181 )
1 unchanged sentence
Loss on derivative instrument reclassified into earnings
−Removed: 58 171 407 541
−Removed: TOTAL COMPREHENSIVE INCOME (LOSS)
−Removed: $ 65,466 $ ( 1,780 ) $ 44,849 $ ( 7,865 )
−Removed: Net comprehensive (income) loss attributable to noncontrolling interests – Operating Partnership and Series E preferred units
+Added: TOTAL COMPREHENSIVE LOSS
$ ( 14,973 ) $ ( 4,006 )
+Added: Net comprehensive loss attributable to noncontrolling interests – Operating Partnership and Series E preferred units
Net income attributable to noncontrolling interests – consolidated real estate entities
−Removed: ( 2,319 ) ( 32 ) ( 2,408 ) ( 98 )
−Removed: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTERESTS
−Removed: $ 53,959 $ ( 691 ) $ 36,430 $ ( 5,142 )
−Removed: NET INCOME (LOSS) PER COMMON SHARE – BASIC
+Added: COMPREHENSIVE LOSS ATTRIBUTABLE TO CONTROLLING INTERESTS
$ ( 14,973 ) $ ( 3,373 )
−Removed: NET INCOME (LOSS) PER COMMON SHARE – DILUTED
+Added: NET LOSS PER COMMON SHARE – BASIC AND DILUTED
$ ( 0.77 ) $ ( 0.22 )
−Removed: Weighted average shares - basic 16,726 15,528 16,731 15,143
−Removed: Weighted average shares - diluted
+Added: Weighted average shares - basic and diluted
16,775 16,727
3 unchanged sentences
(in thousands, except per share data)
−Removed: Nine Months Ended September 30, 2024 PREFERRED
−Removed: SHARES NUMBER
+Added: Three Months Ended March 31, 2025 NUMBER
SHARES COMMON
10 unchanged sentences
( 12,879 ) ( 754 ) ( 13,633 )
−Removed: Distributions - Series C preferred shares ($ 1.2421875 per Series C share)
−Removed: ( 4,821 ) ( 4,821 )
Distributions - Series E preferred units ($ 0.96875 per unit)
1 unchanged sentence
Share-based compensation, net of forfeitures 8 858 858
−Removed: Sale of common shares, net 1,587 112,151 112,151
Redemption of Units for common shares 7 335 ( 335 ) —
1 unchanged sentence
Equity rebalancing ( 94 ) 94 —
−Removed: Shares repurchased ( 93,530 ) ( 88 ) ( 4,703 ) ( 3,511 ) ( 101,744 )
−Removed: Shares withheld for taxes ( 122 ) ( 122 )
Other 1 ( 474 ) ( 56 ) ( 530 )
−Removed: Balance at September 30, 2024 $ — 16,568 $ 1,356,013 $ ( 597,720 ) $ ( 578 ) $ 130,864 $ 888,579
−Removed: Nine Months Ended September 30, 2025
+Added: Balance at March 31, 2025 16,735 $ 1,368,276 $ ( 631,855 ) $ ( 232 ) $ 127,251 $ 863,440
+Added: Three Months Ended March 31, 2026
Balance at December 31, 2025 16,761 $ 1,368,834 $ ( 649,678 ) $ — $ 120,660 $ 839,816
−Removed: Net income attributable to controlling interests and noncontrolling interests
−Removed: 35,534 8,479 44,013
−Removed: Amortization of swap settlements 407 407
−Removed: Distributions - common shares and Units ($ 2.31 per share and unit)
−Removed: ( 38,633 ) ( 2,242 ) ( 40,875 )
−Removed: Distributions - Series E preferred units ($ 2.90625 per unit)
−Removed: ( 4,591 ) ( 4,591 )
−Removed: Share-based compensation, net of forfeitures 18 2,564 2,564
−Removed: Sale of common shares, net ( 329 ) ( 329 )
−Removed: Redemption of Units for common shares 17 750 ( 750 ) —
−Removed: Redemption of Series E preferred units for common shares 12 526 ( 526 ) —
−Removed: Equity rebalancing ( 297 ) 297 —
−Removed: Shares repurchased ( 63 ) ( 3,454 ) ( 3,454 )
−Removed: Contribution to noncontrolling interests - consolidated real estate entities 1,428 1,428
−Removed: Shares withheld for taxes ( 296 ) ( 296 )
−Removed: Other — ( 121 ) ( 205 ) ( 326 )
−Removed: Balance at September 30, 2025 $ — 16,703 $ 1,366,980 $ ( 618,341 ) $ — $ 132,345 $ 880,984
−Removed: See accompanying Notes to Condensed Consolidated Financial Statements.
−Removed: CENTERSPACE AND SUBSIDIARIES
−Removed: CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (unaudited)
−Removed: (in thousands, except per share data)
−Removed: Three Months Ended September 30, 2024 PREFERRED
−Removed: SHARES NUMBER
−Removed: SHARES COMMON
−Removed: SHARES ACCUMULATED
−Removed: DISTRIBUTIONS
−Removed: NET INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE LOSS
−Removed: NONCONTROLLING
−Removed: INTERESTS TOTAL
−Removed: Balance at June 30, 2024 $ 93,530 15,057 $ 1,255,399 $ ( 579,139 ) $ ( 749 ) $ 129,256 $ 898,297
Net loss attributable to controlling interests and noncontrolling interests
( 12,889 ) ( 2,141 ) ( 15,030 )
−Removed: Amortization of swap settlements 171 171
Distributions - common shares and Units ($ 0.77 per share and unit)
( 12,926 ) ( 698 ) ( 13,624 )
−Removed: Distributions - Series C preferred shares ($ 0.4140625 per Series C share)
−Removed: ( 1,607 ) ( 1,607 )
Distributions - Series E preferred units ($ 0.96875 per unit)
1 unchanged sentence
Share-based compensation, net of forfeitures 15 1,088 1,088
−Removed: Sale of common shares, net 1,477 104,831 104,831
Redemption of Units for common shares 19 811 ( 811 ) —
1 unchanged sentence
Equity rebalancing ( 49 ) 49 —
−Removed: Shares repurchased ( 93,530 ) — — ( 3,511 ) ( 97,041 )
−Removed: Other ( 2 ) ( 50 ) ( 52 )
−Removed: Balance at September 30, 2024 $ — 16,568 $ 1,356,013 $ ( 597,720 ) $ ( 578 ) $ 130,864 $ 888,579
−Removed: Three Months Ended September 30, 2025
−Removed: Balance at June 30, 2025 $ — 16,757 $ 1,369,376 $ ( 659,266 ) $ ( 58 ) $ 123,530 $ 833,582
−Removed: Net income attributable to controlling interests and noncontrolling interests
−Removed: 53,783 11,516 65,299
−Removed: Amortization of swap settlements 58 58
−Removed: Distributions - common shares and Units ($ 0.77 per share and unit)
−Removed: ( 12,858 ) ( 742 ) ( 13,600 )
−Removed: Distributions - Series E preferred units ($ 0.96875 per unit)
−Removed: ( 1,526 ) ( 1,526 )
−Removed: Share-based compensation, net of forfeitures — 873 873
−Removed: Redemption of Units for common shares 5 215 ( 215 ) —
−Removed: Redemption of Series E preferred units for common shares 4 189 ( 189 ) —
−Removed: Equity rebalancing ( 75 ) 75 —
−Removed: Shares repurchased ( 63 ) ( 3,454 ) ( 3,454 )
+Added: Shares withheld for taxes ( 423 ) ( 423 )
Other ( 1 ) ( 165 ) ( 1 ) ( 166 )
−Removed: Balance at September 30, 2025 $ — 16,703 $ 1,366,980 $ ( 618,341 ) $ — $ 132,345 $ 880,984
+Added: Balance at March 31, 2026 16,803 $ 1,370,461 $ ( 675,493 ) $ — $ 115,172 $ 810,140
See accompanying Notes to Condensed Consolidated Financial Statements.
2 unchanged sentences
(in thousands)
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
CASH FLOWS FROM OPERATING ACTIVITIES
−Removed: Net income (loss)
$ ( 14,973 ) $ ( 4,181 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by operating activities:
+Added: Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization, including amortization of capitalized loan costs 26,853 27,971
−Removed: (Gain) loss on sale of real estate and other investments
−Removed: ( 79,531 ) 577
Share-based compensation expense 1,088 858
−Removed: Loss on interest rate swap settlement amortization
Impairment of real estate investments 9,700 —
+Added: Provision for bad debt 288 301
Non-cash casualty loss 990 347
7 unchanged sentences
CASH FLOWS FROM INVESTING ACTIVITIES
−Removed: Increase in mortgages and real estate related notes receivable — ( 13,557 )
−Removed: Net proceeds from sale of real estate and other investments
−Removed: 122,351 18,251
−Removed: Payments for acquisitions of real estate investments ( 206,223 ) —
Proceeds from insurance 417 177
7 unchanged sentences
Principal payments on revolving lines of credit ( 29,750 ) ( 43,519 )
−Removed: Net proceeds from issuance of common shares — 112,218
−Removed: Repurchase of common shares ( 3,454 ) ( 4,703 )
−Removed: Redemption of Series C preferred shares — ( 97,041 )
−Removed: Redemption of Series D preferred units ( 10,620 ) —
Distributions paid to common shareholders ( 12,904 ) ( 12,443 )
−Removed: Distributions paid to preferred shareholders — ( 4,821 )
Distributions paid to Series D preferred unitholders ( 57 ) ( 160 )
Distributions paid to noncontrolling interests – Operating Partnership and Series E preferred units ( 2,230 ) ( 2,266 )
+Added: Payments related to tax withholding for share-based compensation ( 423 ) —
Other financing activities ( 110 ) ( 212 )
−Removed: Net cash provided by (used by) financing activities
+Added: Net cash used by financing activities
$ ( 21,786 ) $ ( 15,613 )
−Removed: NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
+Added: NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
+Added: ( 5,386 ) 4,931
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD 15,651 13,129
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD $ 10,265 $ 18,060
−Removed: See accompanying Notes to Condensed Consolidated Financial Statements.
−Removed: CENTERSPACE AND SUBSIDIARIES
−Removed: CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
5 unchanged sentences
Involuntary conversion of assets ( 1,014 ) ( 463 )
−Removed: Real estate assets acquired through assumption of debt 76,496 —
−Removed: Fair value adjustment to debt ( 23,632 ) —
Non-cash interest income 457 413
−Removed: Unrealized gain (loss) on investment 503 87
−Removed: Contribution to noncontrolling interests - consolidated real estate entities through issuance of note receivable 1,428 —
+Added: Unrealized gain on investment 209 67
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
1 unchanged sentence
(in thousands)
−Removed: Balance sheet description September 30, 2025 December 31, 2024 September 30, 2024
+Added: Balance Sheet Description
+Added: March 31, 2026 December 31, 2025 March 31, 2025
Cash and cash equivalents $ 7,555 $ 12,833 $ 11,916
4 unchanged sentences
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
−Removed: September 30, 2025
+Added: March 31, 2026
NOTE 1 • ORGANIZATION
Centerspace, collectively with its consolidated subsidiaries (“Centerspace,” the “Company,” “we,” “us,” or “our”), is a North Dakota real estate investment trust (“REIT”) focused on the ownership, management, acquisition, redevelopment, and development of apartment communities.
−Removed: As of September 30, 2025, Centerspace owned interests in 68 apartment communities consisting of 12,941 apartment homes.
+Added: As of March 31, 2026, Centerspace owned interests in 61 apartment communities consisting of 12,263 apartment homes.
NOTE 2 • BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
3 unchanged sentences
All intercompany balances and transactions are eliminated in consolidation.
−Removed: The Condensed Consolidated Financial Statements also reflect the Operating Partnership’s ownership of a joint venture entity in which the Operating Partnership has a general partner or controlling interest.
−Removed: This entity is consolidated into the Company’s operations, with noncontrolling interests reflecting the noncontrolling partners’ share of ownership, income, and expenses.
+Added: The Condensed Consolidated Financial Statements also reflected the Operating Partnership’s ownership of a joint venture entity in which the Operating Partnership had a general partner or controlling interest.
+Added: The joint venture entity no longer held any assets or liabilities and was deconsolidated as of December 31, 2025.
+Added: This entity was consolidated into the Company’s operations with noncontrolling interests reflecting the noncontrolling partners’ share of ownership, income, and expenses.
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
9 unchanged sentences
RECLASSIFICATIONS
−Removed: Certain previously reported amounts within net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current financial statement presentation.
−Removed: These reclassifications had no impact on net income (loss) as reported in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), total assets, liabilities or equity as reported in the Condensed Consolidated Balance Sheets and the classifications within the Condensed Consolidated Statements of Cash Flows.
−Removed: IMMATERIAL CORRECTION OF PRIOR PERIOD ERROR
−Removed: During the second quarter of 2025, the Company identified immaterial prior period errors in the consolidated financial statements related to the balance of common shares and noncontrolling interest within Total Equity on the consolidated balance sheets and condensed consolidated balance sheets.
−Removed: The errors related to the equity amount allocated between common shares and noncontrolling interest based on ownership percentage, and did not impact the amount of Total Equity.
−Removed: The Company assessed the materiality of this change on prior period consolidated financial statements in accordance with SEC Staff
−Removed: Accounting Bulletin No.
−Removed: 99, “Materiality,” (ASC Topic 250, Accounting for Changes and Error Corrections).
−Removed: Based on this assessment, the Company concluded that these error corrections are not material to any previously presented consolidated financial statements.
−Removed: Accordingly, the Company corrected the previously reported immaterial errors as of and for the years ended December 31, 2023 and 2024, the three months ended March 31, 2024, the three and six months ended June 30, 2024, the three and nine months ended September 30, 2024, and the three months ended March 31, 2025 in this Quarterly Report on Form 10-Q.
−Removed: The financial reporting periods affected by this error include the Company’s previously reported audited consolidated financial statements as of and for the years ended December 31, 2023 and 2024 and the Company’s previously reported interim unaudited condensed consolidated financial statements for the three months ended, March 31, 2024, the three and six months ended June 30, 2024, the three and nine months ended September 30, 2024, and the three months ended March 31, 2025.
−Removed: In addition, the Company expects to present the corrected interim 2024 amounts in its 2025 condensed consolidated interim financial statements upon the filing of each of its Quarterly Reports on Form 10-Q on a year-to-date basis as a correction to applicable 2024 periods.
−Removed: A summary of the immaterial corrections to the Company’s previously reported audited and unaudited consolidated financial statements follows.
−Removed: Corrected Consolidated Balance Sheet as of December 31, 2024 (in thousands)
−Removed: December 31, 2024
−Removed: Previously Reported Corrections As Corrected
−Removed: Common Shares of Beneficial Interest $ 1,269,549 $ 98,088 $ 1,367,637
−Removed: Total shareholders’ equity 653,900 98,088 751,988
−Removed: Noncontrolling interests – Operating Partnership and Series E preferred units 227,870 ( 98,088 ) 129,782
−Removed: Corrected Consolidated Statements of Cash Flows (in thousands)
−Removed: Three Months Ended March 31, 2025
−Removed: SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Previously Reported Corrections As Corrected
−Removed: Operating partnership units converted to common shares $ ( 1,002 ) $ 1,337 $ 335
−Removed: Series E preferred units converted to common shares ( 43 ) 57 14
−Removed: Nine Months Ended September 30, 2024
−Removed: SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Previously Reported Corrections As Corrected
−Removed: Operating partnership units converted to common shares $ ( 2,212 ) $ 4,558 $ 2,346
−Removed: Series E preferred units converted to common shares ( 2,271 ) 4,081 1,810
−Removed: Six Months Ended June 30, 2024
−Removed: SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Previously Reported Corrections As Corrected
−Removed: Operating partnership units converted to common shares $ ( 1,367 ) $ 2,901 $ 1,534
−Removed: Series E preferred units converted to common shares ( 1,220 ) 2,370 1,150
−Removed: Three Months Ended March 31, 2024
−Removed: SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Previously Reported Corrections As Corrected
−Removed: Operating partnership units converted to common shares $ ( 398 ) $ 1,195 $ 797
−Removed: Series E preferred units converted to common shares ( 702 ) 1,430 728
−Removed: Year Ended December 31, 2024
−Removed: SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Previously Reported Corrections As Corrected
−Removed: Operating partnership units converted to common shares $ ( 2,663 ) $ 5,881 $ 3,218
−Removed: Series E preferred units converted to common shares ( 8,938 ) 16,722 7,784
−Removed: Year Ended December 31, 2023
−Removed: SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Previously Reported Corrections As Corrected
−Removed: Operating partnership units converted to common shares $ ( 1,910 ) $ 7,134 $ 5,224
−Removed: Series E preferred units converted to common shares ( 1,390 ) 2,947 1,557
−Removed: Corrected Consolidated Statements of Equity (in thousands)
−Removed: Previously Reported COMMON SHARES Corrections As Corrected COMMON SHARES Previously Reported NONCONTROLLING INTERESTS Corrections As Corrected NONCONTROLLING INTERESTS
−Removed: Balance at December 31, 2022 $ 1,177,484 $ 74,658 $ 1,252,142 $ 220,759 $ ( 74,658 ) $ 146,101
−Removed: Redemption of Units for common shares ( 1,910 ) 7,134 5,224 1,910 ( 7,134 ) ( 5,224 )
−Removed: Redemption of Series E preferred units for common shares ( 1,390 ) 2,947 1,557 1,390 ( 2,947 ) ( 1,557 )
−Removed: Equity rebalancing — ( 933 ) ( 933 ) — 933 933
−Removed: Other ( 246 ) ( 60 ) ( 306 ) ( 682 ) 60 ( 622 )
−Removed: Balance at December 31, 2023 $ 1,165,694 $ 83,746 $ 1,249,440 $ 221,193 $ ( 83,746 ) $ 137,447
−Removed: Issuance of Units 5,296 ( 911 ) 4,385 8,579 911 9,490
−Removed: Redemption of Units for common shares ( 2,663 ) 5,881 3,218 2,663 ( 5,881 ) ( 3,218 )
−Removed: Redemption of Series E preferred units for common shares ( 8,938 ) 16,722 7,784 8,938 ( 16,722 ) ( 7,784 )
−Removed: Equity rebalancing — ( 7,350 ) ( 7,350 ) — 7,350 7,350
−Removed: Balance at December 31, 2024 $ 1,269,549 $ 98,088 $ 1,367,637 $ 228,543 $ ( 98,088 ) $ 130,455
−Removed: Three Months Ended March 31, 2025
−Removed: Redemption of Units for common shares ( 1,002 ) 1,337 335 1,002 ( 1,337 ) ( 335 )
−Removed: Redemption of Series E preferred units for common shares ( 43 ) 57 14 43 ( 57 ) ( 14 )
−Removed: Equity rebalancing — ( 94 ) ( 94 ) — 94 94
−Removed: Balance at March 31, 2025 $ 1,268,888 $ 99,388 $ 1,368,276 $ 226,639 $ ( 99,388 ) $ 127,251
−Removed: Three Months Ended
−Removed: Previously Reported COMMON SHARES Corrections As Corrected COMMON SHARES Previously Reported NONCONTROLLING INTERESTS Corrections As Corrected NONCONTROLLING INTERESTS
−Removed: Balance at December 31, 2023 $ 1,165,694 $ 83,746 $ 1,249,440 $ 221,193 $ ( 83,746 ) $ 137,447
−Removed: Redemption of Units for common shares ( 398 ) 1,195 797 398 ( 1,195 ) ( 797 )
−Removed: Redemption of Series E preferred units for common shares ( 702 ) 1,430 728 702 ( 1,430 ) ( 728 )
−Removed: Equity rebalancing — ( 122 ) ( 122 ) — 122 122
−Removed: Balance at March 31, 2024 $ 1,160,492 $ 86,249 $ 1,246,741 $ 218,936 $ ( 86,249 ) $ 132,687
−Removed: Redemption of Units for common shares ( 969 ) 1,706 737 969 ( 1,706 ) ( 737 )
−Removed: Redemption of Series E preferred units for common shares ( 518 ) 940 422 518 ( 940 ) ( 422 )
−Removed: Equity rebalancing — ( 551 ) ( 551 ) — 551 551
−Removed: Balance at June 30, 2024 $ 1,167,055 $ 88,344 $ 1,255,399 $ 217,600 $ ( 88,344 ) $ 129,256
−Removed: Redemption of Units for common shares ( 845 ) 1,657 812 845 ( 1,657 ) ( 812 )
−Removed: Redemption of Series E preferred units for common shares ( 1,051 ) 1,711 660 1,051 ( 1,711 ) ( 660 )
−Removed: Equity rebalancing — ( 6,451 ) ( 6,451 ) — 6,451 6,451
−Removed: Balance at September 30, 2024 $ 1,270,752 $ 85,261 $ 1,356,013 $ 216,125 $ ( 85,261 ) $ 130,864
−Removed: Six Months Ended June 30, 2024 Previously Reported COMMON SHARES Corrections As Corrected COMMON SHARES Previously Reported NONCONTROLLING INTERESTS Corrections As Corrected NONCONTROLLING INTERESTS
−Removed: Balance at December 31, 2023 $ 1,165,694 $ 83,746 $ 1,249,440 $ 221,193 $ ( 83,746 ) $ 137,447
−Removed: Redemption of Units for common shares ( 1,367 ) 2,901 1,534 1,367 ( 2,901 ) ( 1,534 )
−Removed: Redemption of Series E preferred units for common shares ( 1,220 ) 2,370 1,150 1,220 ( 2,370 ) ( 1,150 )
−Removed: Equity rebalancing — ( 673 ) ( 673 ) — 673 673
−Removed: Balance at June 30, 2024 $ 1,167,055 $ 88,344 $ 1,255,399 $ 217,600 $ ( 88,344 ) $ 129,256
−Removed: Nine Months Ended September 30, 2024 Previously Reported COMMON SHARES Corrections As Corrected COMMON SHARES Previously Reported NONCONTROLLING INTERESTS Corrections As Corrected NONCONTROLLING INTERESTS
−Removed: Balance at December 31, 2023 $ 1,165,694 $ 83,746 $ 1,249,440 $ 221,193 $ ( 83,746 ) $ 137,447
−Removed: Redemption of Units for common shares ( 2,212 ) 4,558 2,346 2,212 ( 4,558 ) ( 2,346 )
−Removed: Redemption of Series E preferred units for common shares ( 2,271 ) 4,081 1,810 2,271 ( 4,081 ) ( 1,810 )
−Removed: Equity rebalancing — ( 7,124 ) ( 7,124 ) — 7,124 7,124
−Removed: Balance at September 30, 2024 $ 1,270,752 $ 85,261 $ 1,356,013 $ 216,125 $ ( 85,261 ) $ 130,864
+Added: Certain previously reported amounts within net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows and amounts within the Condensed Consolidated Statements of Equity have been reclassified to conform to the current financial statement presentation.
+Added: These reclassifications had no impact on net loss as reported in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), total assets, liabilities or equity as reported in the Condensed Consolidated Balance Sheets and the classifications within the Condensed Consolidated Statements of Cash Flows.
RECENT ACCOUNTING PRONOUNCEMENTS
7 unchanged sentences
Early adoption is permitted.
−Removed: The ASU will require additional disclosure but is not expected to have a material impact on the Company.
+Added: The ASU will require additional disclosure but is not expected to have a material impact on the Consolidated Financial Statements.
+Added: ASU 2025-10, Government Grants (Topic 832) - Accounting for Government Grants Received by Business Entities
+Added: This ASU establishes authoritative guidance on the accounting for government grants received by business entities.
+Added: This ASU is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods.
+Added: This ASU is not expected to have a material impact on the Consolidated Financial Statements.
+Added: ASU 2025-11, Interim Reporting (Topic 270) - Narrow-Scope Improvements
+Added: This ASU is intended to provide clarity on the current interim reporting disclosure requirements.
+Added: This ASU is effective for interim reporting periods within annual periods beginning after December 15, 2027.
+Added: This ASU may require additional disclosure but is not expected to have a material impact on the Consolidated Financial Statements.
+Added: ASU 2025-12, Codification Improvements
+Added: This ASU is intended to provide technical corrections, clarifications, and minor improvements to the FASB Accounting Standards Codification.
+Added: This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.
+Added: This ASU is not expected to have a material impact on the Consolidated Financial Statements.
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
2 unchanged sentences
The Company is potentially exposed to credit risk for cash deposited with FDIC-insured financial institutions in accounts which, at times, may exceed federally insured limits.
−Removed: As of September 30, 2025 and December 31, 2024, restricted cash consisted of $ 52.9 million and $ 1.1 million, respectively, primarily of net tax deferred proceeds held for exchanges under Section 1031(b) of the Internal Revenue Code of 1986, as amended, along with real estate deposits, security deposits, and escrows held by lenders.
+Added: As of March 31, 2026 and December 31, 2025, restricted cash consisted of $ 2.7 million and $ 2.8 million, respectively, in escrows held by lenders and security deposits.
Escrows include funds deposited with a lender for payment of real estate taxes and insurance and reserves to be used for replacement of structural elements and mechanical equipment at certain communities.
3 unchanged sentences
Rental revenues are recognized in accordance with FASB Accounting Standards Codification (“ASC”) 842, Leases , using a method that represents a straight-line basis over the term of the lease.
−Removed: For the three months ended September 30, 2025 and 2024, rental income represented approximately 98.1 % of total revenues, and included gross market rent less adjustments for gain or loss to lease, concessions, vacancy loss, and bad debt.
−Removed: For the three months ended September 30, 2025 and 2024, other property revenues represented the remaining 1.9 % of total revenues, and are primarily driven by other fee income, which is typically recognized when earned, at a point in time.
−Removed: For the nine months ended September 30, 2025 and 2024, rental income represented approximately 98.2 % of total revenues.
−Removed: For the nine months ended September 30, 2025 and 2024, other property revenues represented the remaining 1.8 % of total revenues.
+Added: For the three months ended March 31, 2026 and 2025, rental income represented approximately 98.6 % and 98.4 % of total revenues, respectively.
+Added: For the three months ended March 31, 2026 and 2025, other property revenues represented the remaining 1.4 % and 1.6 %, respectively, of total revenues and are primarily driven by other fee income, which is typically recognized when earned, at a point in time.
Some of the Company’s apartment communities have commercial spaces available for lease.
Lease terms for these spaces typically range from three to fifteen years .
−Removed: The leases for commercial spaces generally include options to extend the lease for additional terms, subject to adjustments in rent and certain other terms.
+Added: The leases for commercial spaces generally include options to extend the lease for additional terms, subject to adjustments in rent and certain other items.
Many of the leases contain non-lease components for utility reimbursement from residents and common area maintenance from commercial tenants.
1 unchanged sentence
The combined components are included in lease income and are accounted for under ASC 842.
−Removed: The aggregate amount of future scheduled lease income on commercial operating leases, excluding any variable lease income and non-lease components, as of September 30, 2025, was as follows:
+Added: The aggregate amount of future scheduled lease income on commercial operating leases, excluding any variable lease income and non-lease components, as of March 31, 2026, was as follows:
(in thousands)
6 unchanged sentences
Centerspace recognizes revenue for these rental related items not included as a component of a lease as earned.
−Removed: The following table presents the disaggregation of revenue streams for the three and nine months ended September 30, 2025 and 2024:
+Added: The following table presents the disaggregation of revenue streams for the three months ended March 31, 2026 and 2025:
(in thousands)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Revenue Stream Applicable Standard 2026 2025
4 unchanged sentences
In addition to lease income and other property revenue, the Company recognizes gains or losses on the sale of real estate and other investments when the criteria for derecognition of an asset are met, including when (1) a contract exists and (2) the buyer obtained control of the nonfinancial asset that was sold.
−Removed: During the three months ended September 30, 2025, the Company recognized a gain of $ 79.5 million on the sale of real estate and other investments, compared to no gain or loss during the three months ended September 30, 2024.
−Removed: During the nine months ended September 30, 2025, the Company recognized a gain of $ 79.5 million on the sale of real estate and other investments, compared to a loss of $ 577,000 during the nine months ended September 30, 2024.
+Added: During the three months ended March 31, 2026 and 2025, the Company did not recognize any gain or loss on the sale of real estate and other investments.
Any gain or loss on real estate dispositions is net of certain closing and other costs associated with the disposition.
2 unchanged sentences
The amortization periods reflect the average remaining term of in-place leases acquired, which are generally less than one year for multifamily apartment homes and average lease term for the commercial spaces in the Company’s mixed use properties.
−Removed: During the three months ended September 30, 2025 and 2024, the Company recognized $ 3.6 million and $ 37,000 , respectively, of amortization expense related to intangibles.
−Removed: During the nine months ended September 30, 2025 and 2024, the Company recognized $ 4.7 million and $ 1.7 million, respectively, of amortization expense related to intangibles, included within depreciation and amortization in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
+Added: During the three months ended March 31, 2026 and 2025, the Company recognized $ 737,000 and $ 1.1 million, respectively, of amortization expense related to intangibles, included within depreciation and amortization in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
MARKET CONCENTRATION RISK
The Company is subject to increased exposure from economic and other competitive factors specific to markets where it holds a significant percentage of the carrying value of its real estate portfolio.
−Removed: As of September 30, 2025, Centerspace held more than 10% of the carrying value of its real estate portfolio in each of the Minneapolis, Minnesota and Denver, Colorado markets.
−Removed: HELD FOR SALE
−Removed: The Company classifies properties as held for sale when they meet the GAAP criteria, which include:
−Removed: (a) management commits to and initiates a plan to sell the asset;
−Removed: (b) the sale is probable and expected to be completed within one year under terms that are usual and customary for sales of such assets;
−Removed: and (c) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
−Removed: The Company generally considers these criteria met when the transaction has been approved by its Board of Trustees, there are no known significant contingencies related to the sale, and management believes it is probable that the sale will be completed within one year.
−Removed: The Company presents the assets and liabilities of any properties held for sale separately in the Condensed Consolidated Balance Sheets.
−Removed: Held for sale properties are reported at the lower of their carrying amount or estimated fair value less costs to sell.
−Removed: Both the real estate assets and corresponding liabilities are presented separately in the accompanying Condensed Consolidated Balance Sheets.
−Removed: Upon the classification of an asset as held for sale, no further depreciation is recorded.
−Removed: Disposals representing a strategic shift in operations (e.g., a disposal of a major geographic area, a major line of business or a major equity method investment) will be presented as discontinued operations.
−Removed: The Company had seven apartment communities currently under contract and classified as held for sale at September 30, 2025.
−Removed: During the nine months ended September 30, 2025, the Company’s Board of Trustees approved a plan to sell a specific list of apartment communities.
−Removed: The Company determined these apartment communities met the criteria to be classified as held for sale as of September 30, 2025.
−Removed: The Company did not have any apartment communities classified as held for sale at December 31, 2024.
−Removed: The table below presents the major components of assets and liabilities for apartment communities held for sale as of September 30, 2025:
−Removed: (in thousands)
−Removed: September 30, 2025
−Removed: Total real estate investments $ 86,302
−Removed: Assets held for sale, net $ 86,302
−Removed: Accounts payable and accrued expenses
−Removed: Liabilities held for sale, net
+Added: As of March 31, 2026, Centerspace held more than 10% of the carrying value of its real estate portfolio in the Minneapolis, Minnesota;
+Added: Denver, Colorado;
+Added: and Boulder / Ft.
+Added: Collins, Colorado markets.
IMPAIRMENT OF LONG-LIVED ASSETS
6 unchanged sentences
Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.
−Removed: During the three and nine months ended September 30, 2025, the Company incurred a loss of $ 8.7 million and $ 23.2 million, respectively, for the impairment of six apartment communities.
−Removed: These apartment communities were written-down to estimated fair value in connection with the communities’ classification as held for sale.
−Removed: During the three and nine months ended September 30, 2024 the Company did not record a loss for impairment on real estate.
+Added: During the three months ended March 31, 2026, the Company incurred a loss of $ 9.7 million for the impairment of one apartment community in Denver, Colorado.
+Added: During the three months ended March 31, 2025, the Company did not record a loss for impairment on real estate.
VARIABLE INTEREST ENTITIES
3 unchanged sentences
REAL ESTATE RELATED NOTES RECEIVABLE
−Removed: During the nine months ended September 30, 2025, the Company issued a variable rate note to the limited partner of its joint venture.
−Removed: As of September 30, 2025, the outstanding obligations under the note were $ 1.4 million.
−Removed: The note matures on April 30, 2026 and bears interest at a rate equal to 1.55 % above the adjusted secured overnight financing rate (“SOFR”).
−Removed: The note is secured by a pledge of all equity interests in the joint venture held by the limited partner.
−Removed: Subsequent to September 30, 2025, the note was paid in full.
In connection with the acquisition of The Lydian, an apartment community in Denver, Colorado, the Company has a tax increment financing note receivable (“TIF”) with an initial principal balance of $ 4.1 million.
−Removed: As of September 30, 2025 and December 31, 2024, the principal balance was $ 4.0 million and $ 4.1 million, respectively, which appears within other assets in the Condensed Consolidated Balance Sheets at fair value.
−Removed: The note bears interest at a rate of 6.0 % with payments due in March and July of each year.
−Removed: In connection with the acquisition of Ironwood, an apartment community in New Hope, Minnesota, the Company has a TIF note receivable with a principal balance of $ 4.9 million and $ 5.2 million as of September 30, 2025 and December 31, 2024, respectively, which appears within other assets in the Condensed Consolidated Balance Sheets at fair value.
+Added: As of March 31, 2026 and December 31, 2025, the principal balance was $ 3.9 million, which appears within other assets in the Condensed Consolidated Balance Sheets at fair value.
+Added: The note bears interest at a rate of 6.0 % and matures September 30, 2041.
+Added: In connection with the acquisition of Ironwood, an apartment community in New Hope, Minnesota, the Company has a TIF note receivable with an initial principal balance of $ 6.6 million.
+Added: As of March 31, 2026 and December 31, 2025, the principal balance was $ 4.6 million and $ 4.9 million, respectively, which appears within other assets in the Condensed Consolidated Balance Sheets at fair value.
The note bears interest at a rate of 4.5 % with payments due in February and August of each year.
1 unchanged sentence
In 2023, the Company originated a $ 15.1 million mezzanine loan for the development of an apartment community located in Inver Grove Heights, Minnesota.
−Removed: The mezzanine loan bears interest at 10.0 % per annum, which is added to the principal balance and is payable at maturity.
−Removed: As of September 30, 2025 and December 31, 2024, the Company had funded $ 15.1 million of the mezzanine loan.
+Added: The mezzanine loan bears interest at 10.0 % per annum, which accrues and is added to the principal balance and is payable at maturity.
+Added: As of March 31, 2026 and December 31, 2025, the Company had funded $ 15.1 million of the mezzanine loan.
+Added: As of March 31, 2026 and December 31, 2025, the principal balance was $ 18.4 million and $ 18.0 million, respectively.
The loan matures in December 2027 unless extended to December 2028 in accordance with the terms of the mezzanine loan agreement.
5 unchanged sentences
Advertising costs are expensed as incurred and reported on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) within the property operating expenses, excluding real estate taxes line item.
−Removed: During the three months ended September 30, 2025 and 2024, total advertising expense was $ 871,000 and $ 899,000 , respectively.
−Removed: During the nine months ended September 30, 2025 and 2024, total advertising expense was $ 2.2 million and $ 2.4 million, respectively.
+Added: During the three months ended March 31, 2026 and 2025, total advertising expense was $ 651,000 and $ 623,000 , respectively.
INVOLUNTARY CONVERSION OF ASSETS
−Removed: During the three months ended September 30, 2025, Centerspace recorded $ 187,000 in casualty losses resulting from updated loss estimates on previously reported events and $ 387,000 in insurance receivables within other assets on the Condensed Consolidated Balance Sheets.
−Removed: During the nine months ended September 30, 2025, the Company recorded $ 1.0 million in casualty losses resulting from two new insurance events and updated loss estimates from three previously reported events along with insurance receivables of $ 438,000 .
+Added: During the three months ended March 31, 2026, Centerspace recorded $ 936,000 in casualty losses resulting from one new loss event and updated loss estimates on previously reported events along with $ 698,000 in insurance receivables reported within other assets on the Condensed Consolidated Balance Sheets and receipt of insurance proceeds totaling $ 459,000 which was in excess of previously recorded receivables.
Any business interruption insurance proceeds will be recognized when received in accordance with ASC 610-30.
−Removed: During the three and nine months ended September 30, 2024, Centerspace recognized $ 546,000 and $ 1.3 million, respectively in casualty losses resulting from two new insurance events and updated loss estimates from six separate insurance events at apartment communities.
−Removed: The Company also recorded a $ 981,000 write-down of an apartment community asset along with an insurance receivable of $ 2.1 million within other assets on the Condensed Consolidated Balance Sheets due to storm damage at one apartment community during the three and nine months ended September 30, 2024.
−Removed: In April 2023, a portion of one of the Company’s apartment communities was destroyed by fire.
−Removed: The Company recorded a write-down of the apartment community asset, in accordance with ASC 610-30 on involuntary conversion of non-monetary assets, totaling $ 1.3 million with an offsetting insurance receivable recorded within other assets on the Condensed Consolidated Balance Sheets.
−Removed: During the nine months ended September 30, 2024, the claim was settled for $ 1.6 million, including remediation and other operating expenses.
+Added: During the three months ended March 31, 2025, Centerspace recognized $ 512,000 in casualty losses resulting from two new insurance events and updated loss estimates from two previously reported events.
+Added: Any business interruption insurance proceeds will be recognized when received in accordance with ASC 610-30.
NOTE 3 • NET INCOME (LOSS) PER SHARE
−Removed: Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares of beneficial interest (“common shares”) outstanding during the period.
+Added: Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares of beneficial interest (“common shares”) outstanding during the period.
Centerspace has issued restricted stock units (“RSUs”) and incentive stock options (“ISOs”) under its 2015 Incentive Plan, RSUs under its 2025 Incentive Plan (as defined below), Series D Convertible Preferred Units (“Series D preferred units”), and Series E Convertible Preferred Units (“Series E preferred units”), which could have a dilutive effect on net income (loss) per share upon the vesting of the RSUs, exercise of ISOs, or conversion of the Series D or Series E preferred units (refer to Note 4 for further discussion of the Series D and the Series E preferred units).
The Company calculates diluted net income (loss) per share using the treasury stock method for RSUs and ISOs and the if converted method for Series D preferred units and Series E preferred units.
−Removed: Other than the issuance of RSUs, ISOs, Series D preferred units, and Series E preferred units, there are no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of net income (loss).
+Added: Other than the issuance of RSUs, ISOs, Units, Series D preferred units, and Series E preferred units, there are no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of net income (loss).
Under the terms of the Operating Partnership’s Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”).
Upon the exercise of Exchange Rights, and in Centerspace’s sole discretion, it may issue common shares in exchange for Units on a one -for-one basis.
−Removed: The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted net income (loss) per share reported in the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2025 and 2024.
+Added: The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted net income (loss) per share reported in the Condensed Consolidated Financial Statements for the three months ended March 31, 2026 and 2025.
(in thousands, except per share data)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
−Removed: Net income (loss) attributable to controlling interests
−Removed: $ 53,783 $ ( 1,048 ) $ 35,534 $ ( 6,249 )
−Removed: Distributions to preferred shareholders — ( 1,607 ) — ( 4,821 )
−Removed: Redemption of preferred shares — ( 3,511 ) — ( 3,511 )
−Removed: Numerator for basic income (loss) per share – net income (loss) available to common shareholders
−Removed: 53,783 ( 6,166 ) 35,534 ( 14,581 )
−Removed: Noncontrolling interests – Operating Partnership and Series E preferred units (1)
−Removed: 9,197 — 6,071 —
−Removed: Distributions to Series D preferred unitholders (2)
−Removed: Numerator for diluted income (loss) per share (1)
+Added: Three Months Ended March 31,
+Added: Net loss attributable to controlling interests
$ ( 12,889 ) $ ( 3,734 )
−Removed: Denominator for basic income (loss) per share weighted average shares 16,726 15,528 16,731 15,143
−Removed: Effect of operating partnership units (1)
−Removed: Effect of Series D preferred units (2)
−Removed: Effect of Series E preferred units (1)
+Added: Numerator for basic and diluted loss per share – net loss available to common shareholders (1)
( 12,889 ) ( 3,734 )
−Removed: Effect of dilutive restricted stock units and stock options 26 — 25 —
−Removed: Denominator for diluted income (loss) per share 19,771 15,528 19,835 15,143
−Removed: NET INCOME (LOSS) PER COMMON SHARE – BASIC
+Added: Denominator for basic and diluted loss per share weighted average shares (1)
16,775 16,727
−Removed: NET INCOME (LOSS) PER COMMON SHARE – DILUTED
+Added: NET LOSS PER COMMON SHARE – BASIC AND DILUTED
$ ( 0.77 ) $ ( 0.22 )
−Removed: (1) For the three and nine months ended September 30, 2024, the impact of Units and Series E preferred units was excluded from the calculation of net income (loss) per common share - diluted as they were anti-dilutive.
−Removed: (2) For the three and nine months ended September 30, 2024, distributions to Series D preferred unitholders are excluded from the calculation of net income (loss) per common share - diluted as they were anti-dilutive.
−Removed: For the three months ended September 30, 2024, operating partnership units of 818,000 , Series D preferred units of 228,000 , as converted, Series E preferred units of 2.1 million, as converted, time-based RSUs of 49,000 , and performance-based RSUs of 41,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.
−Removed: For the nine months ended September 30, 2024, operating partnership units of 836,000 , Series D preferred units of 228,000 , as converted, Series E preferred units of 2.1 million, as converted, time-based RSUs of 32,000 , and performance-based RSUs of
−Removed: 41,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.
+Added: (1) For the three months ended March 31, 2026 and 2025, distributions to Series D preferred unitholders and the impact of Units and Series E preferred units were excluded from the calculation of net loss per common share - diluted as they were anti-dilutive.
+Added: For the three months ended March 31, 2026, weighted average operating partnership units of 914,000 , Series D preferred units of 82,000 , as converted, Series E preferred units of 1.9 million, as converted, time-based RSUs and options of 29,000 , and performance-based RSUs of 13,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.
+Added: For the three months ended March 31, 2025, weighted average operating partnership units of 980,000 , Series D preferred units of 228,000 , as converted, Series E preferred units of 1.9 million, as converted, time-based RSUs and options of 35,000 , and performance-based RSUs of 43,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.
NOTE 4 • MEZZANINE EQUITY AND EQUITY
Series D Preferred Units (Mezzanine Equity).
−Removed: Series D preferred units outstanding were 59,400 and 165,600 preferred units at September 30, 2025 and December 31, 2024, respectively.
+Added: Series D preferred units outstanding were 59,400 at March 31, 2026 and December 31, 2025.
The Series D preferred units have a par value of $ 100 per preferred unit.
The Series D preferred unit holders receive a preferred distribution at the rate of 3.862 % per year and have a put option which allows the holder to redeem any or all of the Series D preferred units for cash equal to the issuance price.
−Removed: During the three and nine months ended September 30, 2025, the Company redeemed 53,700 and 106,200 Series D preferred units, respectively, for an aggregate redemption price of $ 5.4 million and $ 10.6 million, respectively.
Each Series D preferred unit is convertible, at the holder’s option, into 1.37931 Units.
−Removed: The Series D preferred units had an aggregate liquidation value of $ 5.9 million and $ 16.6 million at September 30, 2025 and December 31, 2024, respectively.
+Added: The Series D preferred units had an aggregate liquidation value of $ 5.9 million at March 31, 2026 and December 31, 2025.
Changes in the redemption value are based on changes in the trading value of common shares and are charged to common shares on the Condensed Consolidated Balance Sheets each quarter.
−Removed: The holders of the Series D preferred units do not have voting rights.
+Added: The holders of the Series D preferred units do not have voting rights and do not participate in income or loss.
Distributions to Series D unitholders are presented in the Condensed Consolidated Statements of Equity within net income (loss) attributable to controlling interests and noncontrolling interests.
−Removed: Series C Preferred Shares.
−Removed: On August 30, 2024, we delivered notice to holders of the Series C preferred shares that we intended to redeem all 3.9 million Series C preferred shares at a redemption price equal to $ 25 per share plus any accrued but unpaid distributions per share up to and including the redemption date of September 30, 2024.
−Removed: On September 30, 2024, the Company completed the redemption of all the outstanding Series C preferred shares for an aggregate redemption price of $ 97.0 million, excluding distributions, which was $ 3.5 million in excess of the carrying value.
−Removed: Such shares were no longer outstanding as of September 30, 2025 and December 31, 2024.
−Removed: The Series C preferred shares were nonvoting and redeemable for cash at $ 25 per share at Centerspace’s option.
−Removed: Holders of these shares were entitled to cumulative distributions, payable quarterly (as and if declared by the Board of Trustees).
−Removed: Distributions accrued at an annual rate of $ 1.65625 per share, which is equal to 6.625 % of the $ 25 per share liquidation preference, quarterly until September 30, 2024.
Operating Partnership Units.
−Removed: The Operating Partnership had 963,000 and 980,000 outstanding Units at September 30, 2025 and December 31, 2024, respectively.
+Added: The Operating Partnership had 901,000 and 920,000 outstanding Units at March 31, 2026 and December 31, 2025, respectively.
Exchange Rights .
−Removed: Centerspace redeemed Units in exchange for common shares in connection with Unitholders exercising their exchange rights during the three and nine months ended September 30, 2025 and 2024 as detailed in the table below.
+Added: Centerspace redeemed Units in exchange for common shares in connection with Unitholders exercising their exchange rights during the three months ended March 31, 2026 and 2025 as detailed in the table below.
(in thousands)
−Removed: Three Months Ended September 30, Number of Units Net Book Basis
−Removed: 2024 19 $ 812
−Removed: Nine Months Ended September 30,
−Removed: 2025 17 $ 750
+Added: Three Months Ended March 31, Number of Units Total Book Value
2026 19 $ 811
Series E Preferred Units (Noncontrolling Interests).
−Removed: Centerspace had 1.6 million Series E preferred units outstanding as of September 30, 2025 and December 31, 2024.
+Added: Centerspace had 1.6 million Series E preferred units outstanding as of March 31, 2026 and December 31, 2025.
Each Series E preferred unit has a par value of $ 100 .
3 unchanged sentences
The Series E preferred units receive an allocation of net income (loss) based upon their participation in earnings or loss of the Company.
−Removed: The Series E preferred units had an aggregate liquidation preference of $ 157.2 million and $ 158.2 million as of September 30, 2025 and December 31, 2024, respectively.
+Added: The Series E preferred units had an aggregate liquidation preference of $ 156.3 million and $ 157.0 million as of March 31, 2026 and December 31, 2025, respectively.
The holders of the Series E preferred units do not have voting rights.
−Removed: The Company redeemed Series E preferred units in exchange for common shares in connection with Series E unitholders exercising their exchange rights during the three and nine months ended September 30, 2025 and 2024 as detailed below.
+Added: The Company redeemed Series E preferred units in exchange for common shares in connection with Series E unitholders exercising their exchange rights during the three months ended March 31, 2026 and 2025 as detailed below.
(in thousands)
−Removed: Three Months Ended September 30, Number of Series E Preferred Units Redeemed
+Added: Three Months Ended March 31, Number of Series E Preferred Units Redeemed
Number of Common Shares Issued
1 unchanged sentence
2025 — — $ 14
−Removed: Nine Months Ended September 30,
−Removed: 2025 10 12 $ 526
−Removed: 2024 33 40 $ 1,810
Common Shares and Equity Awards .
−Removed: Common shares outstanding as of September 30, 2025 and December 31, 2024, totaled 16.7 million.
−Removed: During the three and nine months ended September 30, 2025, Centerspace issued 82 and 17,735 common shares, respectively, with a total grant-date fair value of $ 6,000 and $ 1.5 million, respectively, as share-based compensation for employees and trustees under its 2015 Incentive Plan and 2025 Incentive Plan (as defined below).
−Removed: During the three and nine months ended September 30, 2024, Centerspace issued 46 and 13,511 common shares, respectively, with a total grant-date fair value of $ 4,000 and $ 1.0 million, respectively, as share-based compensation for employees and trustees under its 2015 Incentive Plan.
+Added: Common shares outstanding as of March 31, 2026 and December 31, 2025, totaled 16.8 million.
+Added: During the three months ended March 31, 2026 and 2025, Centerspace issued 15,122 and 7,818 common shares, respectively, with a total grant-date fair value of $ 1.1 million and $ 786,000 , respectively, as share-based compensation for employees and trustees under its 2015 Incentive Plan and 2025 Incentive Plan (as defined below).
These shares vested based on performance and service criteria.
Refer to Note 11 for additional details on share-based compensation.
−Removed: Equity Distribution Agreement.
−Removed: Centerspace has entered into an equity distribution agreement in connection with the at-the-market offering (“ATM Program”) through which it may offer and sell common shares in amounts and at times determined by management.
+Added: At-the-Market Program.
+Added: Centerspace has an at-the-market offering (“ATM Program”) through which it may offer and sell common shares in amounts and at times determined by management.
The maximum aggregate offering price of common shares available for offer and sale thereunder is $ 500.0 million.
1 unchanged sentence
The proceeds from the sale of common shares under the ATM Program may be used for general corporate purposes, including the funding of acquisitions, construction or mezzanine loans, community renovations, and the repayment of indebtedness.
−Removed: There were no sales of common shares under the ATM Program during the three and nine months ended September 30, 2025.
−Removed: The table below provides details on the sale of common shares during the three and nine months ended September 30, 2024 under the ATM Program.
−Removed: As of September 30, 2025, common shares having an aggregate offering price of up to $ 262.9 million remained available under the ATM Program.
−Removed: (in thousands, except per share amounts)
−Removed: Three Months Ended September 30, Number of Common Shares
−Removed: Net Consideration (1)(2)
−Removed: Average Net Price Per Share
−Removed: 2024 1,477 $ 105,052 $ 71.12
−Removed: Nine Months Ended September 30,
−Removed: 2024 1,587 $ 112,613 $ 71.66
−Removed: (1) Includes 869,000 shares sold on a forward basis for $ 62.7 million which were physically settled during the three months ended September 30, 2024.
−Removed: (2) Total consideration is net of $ 1.0 million and $ 1.1 million in commissions during the three and nine months ended September 30, 2024, respectively.
+Added: There were no sales of common shares under the ATM Program during the three months ended March 31, 2026 and 2025.
+Added: As of March 31, 2026, common shares having an aggregate offering price of up to $ 262.9 million remained available under the ATM Program.
Share Repurchase Program.
−Removed: The Company had a share repurchase program, providing for the repurchase of up to an aggregate of $ 50 million of the Company’s outstanding common shares.
−Removed: This program expired on March 10, 2025.
−Removed: Effective July 31, 2025, the Board of Trustees authorized a share repurchase program (the “Share Repurchase Program”), providing for the repurchase of an aggregate of $ 100.0 million for the Company’s outstanding common shares.
+Added: Effective July 31, 2025, the Board of Trustees authorized a share repurchase program (the “Share Repurchase Program”), providing for the repurchase of an aggregate of $ 100.0 million for the Company’s outstanding common
Under the Share Repurchase Program, the Company is authorized to repurchase common shares through open market purchases, privately-negotiated transactions, block trades or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
The specific timing and amount of repurchases may vary based on available capital resources or other financial and operational performance, market conditions, securities law limitations, and other factors.
−Removed: The table below provides details on the shares repurchased under these programs during the three and nine months ended September 30, 2025 and 2024.
−Removed: As of September 30, 2025, the Company had $ 96.5 million remaining authorized for purchase under the Share Repurchase Program.
−Removed: (in thousands, except per share amounts)
−Removed: Three Months Ended September 30, Number of Common Shares Aggregate Cost (1)
−Removed: Average Price Per Share (1)
−Removed: 2025 63 $ 3,454 $ 54.86
−Removed: Nine Months Ended September 30,
−Removed: 2025 63 $ 3,454 $ 54.86
−Removed: 2024 88 4,703 53.62
−Removed: (1) Amount includes commissions.
+Added: There were no shares repurchased under these programs during the three months ended March 31, 2026 and 2025.
+Added: As of March 31, 2026, the Company had $ 96.5 million remaining authorized for purchase under the Share Repurchase Program.
NOTE 5 • DEBT
−Removed: The following table summarizes the Company’s secured and unsecured debt at September 30, 2025 and December 31, 2024.
+Added: The following table summarizes the Company’s secured and unsecured debt at March 31, 2026 and December 31, 2025.
(in thousands)
−Removed: September 30, 2025 December 31, 2024
−Removed: Carrying Amount Weighted Average Interest Rate Carrying Amount Weighted Average Interest Rate Weighted Average Maturity in Years at September 30, 2025
+Added: March 31, 2026 December 31, 2025
+Added: Carrying Amount Weighted Average Interest Rate Carrying Amount Weighted Average Interest Rate Weighted Average Maturity in Years at March 31, 2026
Lines of credit (1)
15 unchanged sentences
(3) Represents apartment communities encumbered by mortgages;
−Removed: 13 at September 30, 2025 and 15 at December 31, 2024.
+Added: 10 at March 31, 2026 and December 31, 2025.
(4) Interest rate is fixed.
−Removed: (5) Includes mortgages payable of $ 12.7 million as of September 30, 2025, associated with apartment communities classified as held for sale
−Removed: (6) Includes mortgages payable of $ 76.5 million assumed as part of an acquisition discussed in Note 8 of the Notes to the Condensed Consolidated Financial Statements.
−Removed: As of September 30, 2025, 44 apartment communities were not encumbered by mortgages and were available to provide credit support for the unsecured borrowings.
+Added: As of March 31, 2026, 44 apartment communities were not encumbered by mortgages and were available to provide credit support for the unsecured borrowings.
The Company’s primary unsecured credit facility (the “Unsecured Credit Facility” or “Facility”) is a revolving, multi-bank line of credit, with Bank of Montreal serving as administrative agent.
1 unchanged sentence
Prior to the exercise of the accordion feature, the line of credit had total commitments and borrowing capacity of up to $ 250.0 million, based on the value of unencumbered properties.
−Removed: As of September 30, 2025, the Company had additional borrowing availability of $ 177.5 million beyond the $ 222.5 million drawn under the Facility, priced at an interest rate of 5.51 %.
−Removed: As of December 31, 2024, the Company had additional borrowing availability of $ 206.0 million beyond the $ 44.0 million drawn under the Facility, priced at an interest rate of 5.81 %.
−Removed: On July 26, 2024, the Unsecured Credit Facility was amended to extend maturity and to modify the leverage-based margin ratios applicable to borrowings.
−Removed: As amended, this Facility matures in July 2028, with an option to extend maturity for up to two additional six-month periods.
−Removed: SOFR is the benchmark alternative reference rate under the Facility.
+Added: As of March 31, 2026, the Company had additional borrowing availability of $ 250.0 million beyond the $ 150.0 million drawn under the Facility, bearing interest at a rate of 4.88 %.
+Added: As of December 31, 2025, the Company had additional borrowing availability of $ 246.0 million beyond the $ 154.0 million drawn under the Facility, bearing interest at a rate of 5.12 %.
+Added: As amended, this The Facility matures in July 2028, with an option to extend maturity for up to two additional six-month periods.
+Added: The Secured Overnight Financing Rate (“SOFR”) is the benchmark alternative reference rate under the Facility.
As amended, the interest rates on the line of credit are based on the consolidated leverage ratio, at the Company’s option, on either the lender’s base rate plus a margin, ranging from 20 - 80 basis points, or daily or term SOFR, plus a margin that ranges from 120 - 180 basis points with the consolidated leverage ratio described under the Third Amended and Restated Credit Agreement, as amended.
−Removed: The Unsecured Credit Facility and unsecured senior notes are subject to customary financial covenants and limitations.
−Removed: The Company believes that it was in compliance with all such financial covenants and limitations as of September 30, 2025.
Centerspace has an operating line of credit agreement with US Bank, N.A.
which has a borrowing capacity of up to $ 10.0 million and pricing based on SOFR.
−Removed: This operating line of credit terminates in September 2026 and is designed to enhance
−Removed: treasury management activities and more effectively manage cash balances.
−Removed: As of September 30, 2025 there was no outstanding balance on this line of credit compared to $ 3.4 million outstanding as of December 31, 2024.
+Added: This operating line of credit terminates in September 2026 and is designed to enhance treasury management activities and more effectively manage cash balances.
+Added: As of March 31, 2026 there was $ 429,000 outstanding balance on this line of credit, bearing interest at a rate of 5.88 %, compared to $ 925,000 outstanding as of December 31, 2025, bearing interest at a rate of 5.91 %.
Centerspace has a private shelf agreement with PGIM, Inc., an affiliate of Prudential Financial, Inc., and certain affiliates of PGIM, Inc.
2 unchanged sentences
The Company issued $ 125.0 million of senior unsecured promissory notes (the “Unsecured Club Notes”, and, collectively with the Unsecured Shelf Notes, the “unsecured senior notes”) under a separate private note purchase agreement with PGIM and certain other lenders.
−Removed: The following table shows the notes issued under both agreements as of September 30, 2025 and December 31, 2024.
+Added: The following table shows the notes issued under both agreements as of March 31, 2026 and December 31, 2025.
(in thousands)
10 unchanged sentences
The notes are interest-only, with varying maturity dates of 7 , 10 , and 12 years, and a blended, weighted average fixed interest rate of 2.78 %.
−Removed: As of September 30, 2025 and December 31, 2024, the FMCF had a balance of $ 198.9 million.
+Added: As of March 31, 2026 and December 31, 2025, the FMCF had a balance of $ 198.9 million.
The FMCF is included within mortgages payable on the Condensed Consolidated Balance Sheets.
−Removed: As of September 30, 2025, Centerspace owned 13 apartment communities that served as collateral for mortgage loans, in addition to the apartment communities secured by the FMCF.
+Added: As of March 31, 2026, Centerspace owned 10 apartment communities that served as collateral for mortgage loans, in addition to the apartment communities secured by the FMCF.
All of these mortgage loans were non-recourse to the Company other than for standard carve-out obligations.
−Removed: The Company believes that there were no material defaults or instances of material noncompliance in regard to any of these mortgage loans as of September 30, 2025.
−Removed: As of September 30, 2025 and December 31, 2024, the mortgage loans had a balance of $ 455.9 million and $ 420.4 million, respectively, excluding unamortized premiums and discounts.
+Added: The Company believes that there were no material defaults or instances of material noncompliance in regard to any of these mortgage loans as of March 31, 2026.
+Added: As of March 31, 2026 and December 31, 2025, the mortgage loans had a balance of $ 398.6 million and $ 400.1 million, respectively, excluding unamortized premiums and discounts.
The mortgage loans are included within mortgages payable on the Condensed Consolidated Balance Sheets.
−Removed: The aggregate amount of required future principal payments on outstanding debt as of September 30, 2025, was as follows:
+Added: The aggregate amount of required future principal payments on outstanding debt as of March 31, 2026, was as follows:
(in thousands)
4 unchanged sentences
Deferred financing costs on notes payable, net ( 406 )
−Removed: (1) Includes mortgages payable associated with apartment communities classified as held for sale.
+Added: The Company’s borrowings are subject to customary covenants and limitations.
+Added: The Company believes that it was in compliance with all such covenants and limitations as of March 31, 2026.
NOTE 6 • DERIVATIVE INSTRUMENTS
2 unchanged sentences
Changes in the fair value of derivatives designated and that qualified as cash flow hedges were recorded in accumulated other comprehensive loss and subsequently reclassified into earnings in the period that the hedged transaction affects earnings.
−Removed: Amounts reported in accumulated other comprehensive loss were reclassified to interest expense in the periods in which interest
−Removed: payments were incurred on variable rate debt.
−Removed: As of September 30, 2025, the Company fully amortized the amounts in accumulated other comprehensive loss.
−Removed: As of September 30, 2025 and December 31, 2024 the Company had no remaining interest rate swaps.
−Removed: The table below presents the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as of September 30, 2025 and 2024.
+Added: Amounts reported in accumulated other comprehensive loss were reclassified to interest expense in the periods in which interest payments were incurred on variable rate debt.
+Added: As of March 31, 2026 and December 31, 2025 the Company had no remaining interest rate swaps and all amounts in accumulated other comprehensive loss were fully amortized during the prior year.
+Added: The table below presents the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as of March 31, 2026 and 2025.
(in thousands)
Gain Recognized in OCI Location of Loss Reclassified from Accumulated OCI into Income Loss Reclassified from Accumulated OCI into Income (Loss)
−Removed: Three months ended September 30, 2025 2024 2025 2024
−Removed: Total derivatives in cash flow hedging relationships - Interest rate contracts $ — $ — Interest expense $ ( 58 ) $ ( 171 )
−Removed: Nine months ended September 30,
+Added: Three months ended March 31, 2026 2025 2026 2025
Total derivatives in cash flow hedging relationships - Interest rate contracts $ — $ — Interest expense $ — $ ( 175 )
NOTE 7 • FAIR VALUE MEASUREMENTS
−Removed: Cash and cash equivalents, restricted cash, accounts payable, accrued expenses, and other liabilities are carried at amounts that reasonably approximate their fair value due to their short-term nature.
−Removed: For variable rate line of credit debt that re-prices frequently, fair values are based on carrying values.
In determining the fair value of other financial instruments, Centerspace applies FASB ASC 820, “ Fair Value Measurement and Disclosures.
4 unchanged sentences
Balance Sheet Location Total Level 1 Level 2 Level 3
−Removed: September 30, 2025
+Added: March 31, 2026
Real estate related notes receivable Other assets $ 26,630 — — $ 26,630
6 unchanged sentences
Fair Value Measurement Other Gains Interest Income Total Changes in Fair Value Included in Current-Period Earnings
−Removed: Nine months ended September 30, 2025
+Added: Three months ended March 31, 2026
Real estate related notes receivable $ 26,630 $ 9 $ 569 $ 578
−Removed: Nine months ended September 30, 2024
+Added: Three months ended March 31, 2025
Real estate related notes receivable $ 25,406 $ 9 $ 531 $ 540
−Removed: As of September 30, 2025 and December 31, 2024, Centerspace had investments totaling $ 3.4 million and $ 2.7 million, respectively, in real estate technology venture funds consisting of privately held entities that develop technology related to the real estate industry.
+Added: As of March 31, 2026 and December 31, 2025, Centerspace had investments totaling $ 3.7 million and $ 3.5 million, respectively, in real estate technology venture funds consisting of privately held entities that develop technology related to the real estate industry.
These investments appear within other assets on the Condensed Consolidated Balance Sheets.
The investments are measured at net asset value (“NAV”) as a practical expedient under ASC 820.
−Removed: As of September 30, 2025, the Company had unfunded commitments of $ 750,000 .
+Added: As of March 31, 2026, the Company had unfunded commitments of $ 650,000 .
+Added: The portion of unrealized gains and losses for the three months ended March 31, 2026 and 2025 related to equity securities still held at the reporting date is shown in the table below.
+Added: (in thousands)
+Added: Three Months Ended March 31,
+Added: Unrealized gains and losses on equity securities still held at the reporting date $ 209 $ 67
Fair Value Measurements on a Nonrecurring Basis
−Removed: Non-financial assets measured at fair value on a nonrecurring basis at September 30, 2025 consisted of real estate investments that were written-down to estimated fair value in connection with the impairment recorded on six apartment communities during the nine months ended September 30, 2025.
−Removed: There were no non-financial assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2024.
−Removed: The Company’s determination of fair value is based on market offers to purchase the communities net of estimated costs to sell and other market data.
−Removed: Due to uncertainties in the estimation process, actual results could differ from such estimates.
+Added: Non-financial assets measured at fair value on a nonrecurring basis at March 31, 2026 and December 31, 2025 consisted of real estate investments that were written down to estimated fair value in connection with impairment recorded on one apartment community during the three months ended March 31, 2026 and the year ended December 31, 2025.
(in thousands)
Balance Sheet Location Total Level 1 Level 2 Level 3
−Removed: September 30, 2025
+Added: March 31, 2026
Real estate investments measured at fair value Assets held for sale, net $ 29,500 $ — $ — $ 29,500
+Added: December 31, 2025
+Added: Real estate investments measured at fair value Assets held for sale, net $ 39,700 $ — $ — $ 39,700
Financial Assets and Liabilities Not Measured at Fair Value
+Added: Cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses, and other liabilities are carried at amounts that reasonably approximate their fair value due to their short-term nature.
+Added: For variable rate line of credit debt that re-prices frequently, fair values are based on carrying values.
The fair value of unsecured senior notes and mortgages payable is estimated based on the discounted cash flows of the loans using market research and management estimates of comparable interest rates, excluding any prepayment penalties (Level 3).
−Removed: The estimated fair values of the Company’s financial instruments as of September 30, 2025 and December 31, 2024, respectively, are as follows:
+Added: The estimated fair values of the Company’s financial instruments as of March 31, 2026 and December 31, 2025, respectively, are as follows:
(in thousands)
−Removed: September 30, 2025 December 31, 2024
+Added: March 31, 2026 December 31, 2025
Balance Sheet Location Amount
1 unchanged sentence
FINANCIAL ASSETS
−Removed: Cash and cash equivalents Cash and cash equivalents $ 12,896 $ 12,896 $ 12,030 $ 12,030
−Removed: Restricted cash Restricted cash $ 52,943 $ 52,943 $ 1,099 $ 1,099
+Added: Cash and cash equivalents (Level 1) Cash and cash equivalents $ 7,555 $ 7,555 $ 12,833 $ 12,833
+Added: Restricted cash (Level 1) Restricted cash $ 2,710 $ 2,710 $ 2,818 $ 2,818
FINANCIAL LIABILITIES
−Removed: Revolving lines of credit (1)
−Removed: Revolving lines of credit $ 222,500 $ 222,500 $ 47,359 $ 47,359
−Removed: Unsecured senior notes (1)
+Added: Revolving lines of credit (Level 3) Revolving lines of credit $ 150,429 $ 150,429 $ 154,925 $ 154,925
+Added: Unsecured senior notes (Level 3) (1)
Notes payable $ 300,000 $ 265,466 $ 300,000 $ 267,420
−Removed: Mortgages payable - Fannie Mae credit facility (1)
−Removed: Mortgages payable $ 198,850 $ 175,372 $ 198,850 $ 166,679
−Removed: Mortgages payable - other (1)
+Added: Mortgages payable - Fannie Mae credit facility (Level 3) Mortgages payable $ 198,850 $ 176,256 $ 198,850 $ 175,996
+Added: Mortgages payable - other (Level 3) (1)
Mortgages payable $ 398,567 $ 358,590 $ 400,134 $ 358,627
1 unchanged sentence
NOTE 8 • ACQUISITIONS AND DISPOSITIONS
−Removed: Centerspace acquired $ 132.2 million and $ 281.2 million of new real estate during the three and nine months ended September 30, 2025, respectively.
−Removed: Centerspace did not acquire new real estate during the three and nine months ended September 30, 2024.
−Removed: The acquisitions for the nine months ended September 30, 2025 are detailed below.
−Removed: (in thousands)
−Removed: Form of Consideration
−Removed: Investment Allocation
−Removed: Building & Improvements
−Removed: Intangible Assets (3)
−Removed: 341 homes - Sugarmont - Salt Lake City, UT
−Removed: May 30, 2025 $ 149,000 $ — $ 20,086 $ 124,649 $ 4,265 $ —
−Removed: 420 homes - Railway Flats - Loveland, CO
−Removed: July 29, 2025 55,704 76,496 10,387 94,198 4,046 23,569
−Removed: Total Acquisitions
−Removed: $ 204,704 $ 76,496 $ 30,473 $ 218,847 $ 8,311 $ 23,569
−Removed: (1) Excludes $ 1.5 million in capitalized transaction cost.
−Removed: (2) Assumption of seller’s debt upon closing.
−Removed: (3) Intangible assets consist of in-place leases valued at the time of acquisition.
−Removed: (4) Debt premium on assumed mortgages acquired.
−Removed: Centerspace disposed of five apartment communities in one transaction for an aggregate sales price of $ 124.0 million during the three and nine months ended September 30, 2025.
−Removed: Centerspace did not dispose of any real estate during the three months ended September 30, 2024.
−Removed: During the nine months ended September 30, 2024, Centerspace disposed of two apartment communities in two transactions for an aggregate sales price of $ 19.0 million.
−Removed: The dispositions for the nine months ended September 30, 2025 and 2024 are detailed below.
−Removed: Nine Months Ended September 30, 2025
−Removed: (in thousands)
−Removed: Dispositions Date
−Removed: Disposed Sale Price Net Book Value and Transaction Costs
−Removed: 832 homes - 5 St.
−Removed: Cloud apartment communities
−Removed: September 23, 2025 $ 124,000 $ 44,469 $ 79,531
−Removed: Total Dispositions $ 124,000 $ 44,469 $ 79,531
−Removed: Nine Months Ended September 30, 2024
−Removed: (in thousands)
−Removed: Dispositions Date
−Removed: Disposed Sale Price Net Book Value and Transaction Costs
−Removed: 69 homes - Southdale Parc - Richfield, MN
−Removed: February 29, 2024 $ 6,200 $ 6,497 $ ( 297 )
−Removed: 136 homes - Wingate - New Hope, MN
−Removed: February 29, 2024 12,800 13,080 ( 280 )
−Removed: Total Dispositions $ 19,000 $ 19,577 $ ( 577 )
+Added: Centerspace did not acquire new real estate during the three months ended March 31, 2026 and 2025.
+Added: Centerspace did not dispose of any real estate during the three months ended March 31, 2026 and 2025.
NOTE 9 • SEGMENTS
4 unchanged sentences
The Company defines NOI as total real estate revenues less property operating expenses, including real estate taxes.
−Removed: Centerspace believes that NOI is an important measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation, amortization, financing costs, including interest and other income, losses on extinguishment of debt, and interest expense, property management expenses, loss on litigation settlement, casualty gains (losses), and general and administrative expense.
+Added: Centerspace believes that NOI is an important measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation, amortization, financing costs, including interest and other income, losses on extinguishment of debt, and interest expense, property management expenses, loss on litigation settlement, casualty losses net of recoveries, and general and administrative expense.
The apartment communities have similar long-term economic characteristics and similar operating characteristics, such as type and length of lease, services offered to residents, and property management practices.
2 unchanged sentences
“All other” is composed of non-multifamily properties, non-multifamily components of mixed-use properties and apartment communities the Company has disposed or designated as held for sale, which did not meet the aggregation criteria.
−Removed: For the three and nine months ended September 30, 2025 and 2024, seven apartment communities designated as held for sale were included in “all other”.
−Removed: During the three and nine months ended September 30, 2025, the Company disposed of five apartment communities.
−Removed: During the nine months ended September 30, 2024, the Company disposed of two apartment communities.
−Removed: For the three and nine months ended September 30, 2025 and 2024, the disposed apartment communities were included in “all other”.
−Removed: The following tables present NOI for the three and nine months ended September 30, 2025 and 2024, respectively, along with reconciliations to net income (loss) as reported in the Condensed Consolidated Financial Statements.
+Added: During the year ended December 31, 2025, the Company disposed of 12 communities which are included in “all other.”
+Added: The following tables present NOI for the three months ended March 31, 2026 and 2025, respectively, along with reconciliations to net income (loss) as reported in the Condensed Consolidated Financial Statements.
Segment assets are also reconciled to total assets as reported in the Condensed Consolidated Financial Statements.
(in thousands)
−Removed: Three Months Ended September 30, 2025 Multifamily All Other Total
−Removed: Revenue $ 63,821 $ 7,578 $ 71,399
−Removed: Property operating expenses
−Removed: On-site compensation (1)
−Removed: 6,522 918 7,440
−Removed: Repairs and maintenance (2)
−Removed: 4,157 511 4,668
−Removed: Utilities 3,822 544 4,366
−Removed: Administrative and marketing 1,722 205 1,927
−Removed: Insurance 2,490 319 2,809
−Removed: Real estate taxes 6,311 854 7,165
−Removed: Net operating income $ 38,797 $ 4,227 $ 43,024
−Removed: Property management expense ( 2,489 )
−Removed: Casualty loss
−Removed: Depreciation and amortization ( 29,056 )
−Removed: Impairment of real estate investments ( 8,676 )
−Removed: General and administrative expenses ( 4,997 )
−Removed: Gain on sale of real estate and other investments
−Removed: Interest expense ( 12,989 )
−Removed: Loss on debt extinguishment ( 3 )
−Removed: Interest and other income 1,190
−Removed: (1) On-site compensation for administration, leasing, and maintenance personnel.
−Removed: (2) Includes turnover expense.
−Removed: (in thousands)
−Removed: Three Months Ended September 30, 2024 Multifamily All Other Total
−Removed: Revenue $ 57,896 $ 7,129 $ 65,025
−Removed: Property operating expenses
−Removed: On-site compensation (1)
−Removed: 5,922 885 6,807
−Removed: Repairs and maintenance (2)
−Removed: 3,589 510 4,099
−Removed: Utilities 3,340 509 3,849
−Removed: Administrative and marketing 1,603 278 1,881
−Removed: Insurance 2,609 383 2,992
−Removed: Real estate taxes 6,218 813 7,031
−Removed: Net operating income $ 34,615 $ 3,751 $ 38,366
−Removed: Property management expense ( 2,242 )
−Removed: Casualty gain
−Removed: Depreciation and amortization ( 26,084 )
−Removed: General and administrative expenses ( 4,102 )
−Removed: Interest expense ( 8,946 )
−Removed: Interest and other income
−Removed: (1) On-site compensation for administration, leasing, and maintenance personnel.
−Removed: (2) Includes turnover expense.
−Removed: (in thousands)
−Removed: Nine Months Ended September 30, 2025 Multifamily All Other Total
+Added: Three Months Ended March 31, 2026 Multifamily All Other Total
Revenue $ 64,156 $ 913 $ 65,069
10 unchanged sentences
Property management expense ( 2,379 )
−Removed: Casualty loss
+Added: Casualty loss, net of recoveries 21
Depreciation and amortization ( 26,498 )
1 unchanged sentence
General and administrative expenses ( 6,332 )
−Removed: Gain on sale of real estate and other investments
Interest expense ( 10,470 )
−Removed: Loss on debt extinguishment ( 3 )
Interest and other income 890
2 unchanged sentences
(in thousands)
−Removed: Nine Months Ended September 30, 2024 Multifamily All Other Total
+Added: Three Months Ended March 31, 2025 Multifamily All Other Total
Revenue $ 59,403 $ 7,690 $ 67,093
10 unchanged sentences
Property management expense ( 2,433 )
−Removed: Casualty loss
+Added: Casualty loss, net of recoveries ( 532 )
Depreciation and amortization ( 27,654 )
General and administrative expenses ( 4,997 )
−Removed: Loss on sale of real estate and other investments
Interest expense ( 9,635 )
3 unchanged sentences
Segment Assets and Accumulated Depreciation
−Removed: Segment assets are summarized as follows as of September 30, 2025, and December 31, 2024, respectively, along with reconciliations to the Condensed Consolidated Financial Statements:
+Added: Segment assets are summarized as follows as of March 31, 2026, and December 31, 2025, respectively, along with reconciliations to the Condensed Consolidated Financial Statements:
(in thousands)
−Removed: As of September 30, 2025 Multifamily All Other Total
+Added: As of March 31, 2026 Multifamily All Other Total
Segment assets
5 unchanged sentences
Other assets 44,928
−Removed: Assets held for sale, net 86,302
Total Assets $ 1,887,586
(in thousands)
−Removed: As of December 31, 2024 Multifamily All Other (1)
+Added: As of December 31, 2025 Multifamily All Other Total
Segment assets
6 unchanged sentences
Total Assets $ 1,926,167
−Removed: (1) Includes the assets for the 7 apartment communities designated as held for sale.
NOTE 10 • COMMITMENTS AND CONTINGENCIES
4 unchanged sentences
Limitations on Taxable Dispositions.
−Removed: Twenty-eight properties, consisting of approximately 5,445 apartment homes, are subject to limitations on taxable dispositions under agreements entered into with certain sellers or contributors of the properties and are effective for varying periods.
+Added: Sixteen properties, consisting of approximately 3,796 apartment homes, are subject to limitations on taxable dispositions under agreements entered into with certain sellers or contributors of the properties and are effective for varying periods.
Centerspace does not believe that the agreements materially affect the conduct of its business or its decisions whether to dispose of these properties during the limitation period because it generally holds these and other properties for investment purposes rather than for sale.
2 unchanged sentences
Unfunded Commitments.
−Removed: As of September 30, 2025, Centerspace had unfunded commitments of $ 750,000 in two real estate technology venture funds.
+Added: As of March 31, 2026, Centerspace had unfunded commitments of $ 650,000 in two real estate technology venture funds.
Refer to Note 7 - Fair Value Measurements for additional information regarding these investments.
4 unchanged sentences
The terms of the long-term incentive awards granted under the revised program may vary from year to year.
−Removed: Through September 30, 2025, awards under the 2025 Incentive Plan consisted of RSUs.
+Added: Through March 31, 2026, awards under the 2025 Incentive Plan consisted of RSUs.
The Company accounts for forfeitures of restricted and unrestricted common shares, RSUs, and stock options when they occur instead of estimating the forfeitures.
Prior to the approval of the 2025 Incentive Plan, share based awards were provided to officers, non-officer employees, and trustees under the 2015 Incentive Plan approved by shareholders on September 15, 2015, as amended and restated on May 18, 2021 (the “2015 Incentive Plan”), which allowed for awards in the form of cash, unrestricted and restricted common shares, stock options, stock appreciation rights, and RSUs up to an aggregate of 775,000 shares over the ten-year period in which the plan was in effect.
−Removed: Through September 30, 2025, awards under the 2015 Incentive Plan consisted of restricted and unrestricted common shares, RSUs, and stock options.
+Added: Through March 31, 2026, awards under the 2015 Incentive Plan consisted of restricted and unrestricted common shares, RSUs, and stock options.
2026 LTIP Awards
11 unchanged sentences
The share price at the grant date, January 1, 2026, was $ 66.72 per share.
−Removed: Awards granted to trustees on June 1, 2025, under the 2025 Incentive Plan, consist of 9,527 time-based RSUs, which vest on June 1, 2026.
−Removed: These awards are classified as equity awards.
−Removed: Awards granted to employees on September 1, 2025, under the 2025 Incentive Plan, consist of 363 time-based RSUs and 2,682 performance RSUs based on TSR.
−Removed: The time-based RSUs vest as to one-third of the shares on each of September 1, 2026, January 1, 2027, and January 1, 2028.
−Removed: The performance RSUs are based on the Company’s TSR, as described above.
−Removed: The maximum number of performance RSUs eligible to be earned is 5,364 RSUs, which is 200 % of the performance RSUs granted.
−Removed: The terms of this performance award are consistent with the terms of the performance awards described above.
Share-Based Compensation Expense
−Removed: Total share-based compensation expense recognized in the Condensed Consolidated Financial Statements for all outstanding share-based awards was $ 873,000 and $ 764,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 2.6 million and $ 2.2 million for the nine months ended September 30, 2025 and 2024, respectively.
+Added: Total share-based compensation expense recognized in the Condensed Consolidated Financial Statements for all outstanding share-based awards was $ 1.1 million and $ 858,000 for the three months ended March 31, 2026 and 2025, respectively.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.