What changed in this filing

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Item 1. Financial Statements

2026-08-03 compared with 2026-05-04 · 329 added, 113 removed, 517 unchanged (46% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

ASSETS (unaudited)

6 unchanged sentences

Other assets 38,993 46,620

Assets held for sale, net 135,111 —

TOTAL ASSETS $ 1,840,365 $ 1,926,167

4 unchanged sentences

Mortgages payable, net 513,975 566,660

Liabilities held for sale, net 1,460 —

TOTAL LIABILITIES $ 1,042,413 $ 1,080,411

COMMITMENTS AND CONTINGENCIES (NOTE 10)

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)

SERIES D PREFERRED UNITS (Cumulative convertible preferred units, $ 100 par value, 59 units issued and outstanding at June 30, 2026 and December 31, 2025, aggregate liquidation preference of $ 5,940 at June 30, 2026)

$ 5,940 $ 5,940

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)

Common Shares of Beneficial Interest ( Unlimited authorization, no par value, 16,792 shares issued and outstanding at June 30, 2026 and 16,761 shares issued and outstanding at December 31, 2025)

1,369,753 1,368,834

7 unchanged sentences

CENTERSPACE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited)

(in thousands, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

REVENUE $ 65,782 $ 68,549 $ 130,851 $ 135,642

7 unchanged sentences

TOTAL EXPENSES $ 57,269 $ 75,345 $ 127,731 $ 137,692

Gain on sale of real estate and other investments

Operating income (loss)

3 unchanged sentences

709 735 1,599 1,443

$ ( 1,130 ) $ ( 16,785 ) $ ( 16,103 ) $ ( 20,966 )

Distributions to Series D preferred unitholders ( 58 ) ( 160 ) ( 115 ) ( 320 )

Net loss attributable to noncontrolling interests – Operating Partnership and Series E preferred units

168 2,483 2,309 3,126

Net income attributable to noncontrolling interests – consolidated real estate entities

— ( 53 ) — ( 89 )

NET LOSS AVAILABLE TO COMMON SHAREHOLDERS

6 unchanged sentences

Net comprehensive loss attributable to noncontrolling interests – Operating Partnership and Series E preferred units

168 2,508 2,309 3,177

Net income attributable to noncontrolling interests – consolidated real estate entities

— ( 53 ) — ( 89 )

COMPREHENSIVE LOSS ATTRIBUTABLE TO CONTROLLING INTERESTS

8 unchanged sentences

(in thousands, except per share data)

Three Months Ended March 31, 2025 NUMBER

Six Months Ended June 30, 2025 NUMBER

SHARES COMMON

16 unchanged sentences

Equity rebalancing ( 223 ) 223 —

Contribution to noncontrolling interests - consolidated real estate entities — 1,428 1,428

Shares withheld for taxes ( 296 ) ( 296 )

Other — ( 306 ) ( 101 ) ( 407 )

Balance at March 31, 2025 16,735 $ 1,368,276 $ ( 631,855 ) $ ( 232 ) $ 127,251 $ 863,440

Three Months Ended March 31, 2026

Balance at June 30, 2025 16,757 $ 1,369,376 $ ( 659,266 ) $ ( 58 ) $ 123,530 $ 833,582

Six Months Ended June 30, 2026

Balance at December 31, 2025 16,761 $ 1,368,834 $ ( 649,678 ) $ — $ 120,660 $ 839,816

9 unchanged sentences

Equity rebalancing ( 61 ) 61 —

Shares repurchased ( 45 ) ( 2,516 ) ( 2,516 )

Shares withheld for taxes ( 423 ) ( 423 )

Other ( 1 ) ( 456 ) ( 79 ) — ( 535 )

Balance at June 30, 2026 16,792 $ 1,369,753 $ ( 689,530 ) $ — $ 111,789 $ 792,012

See accompanying Notes to Condensed Consolidated Financial Statements.

(in thousands, except per share data)

Three Months Ended June 30, 2025 NUMBER

SHARES COMMON

SHARES ACCUMULATED

DISTRIBUTIONS

NET INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE LOSS

NONCONTROLLING

INTERESTS TOTAL

Balance at March 31, 2025 16,735 $ 1,368,276 $ ( 631,855 ) $ ( 232 ) $ 127,251 $ 863,440

Net loss attributable to controlling interests and noncontrolling interests

( 14,515 ) ( 2,430 ) ( 16,945 )

Amortization of swap settlements 174 174

Distributions - common shares and Units ($ 0.77 per share and unit)

( 12,896 ) ( 746 ) ( 13,642 )

Distributions - Series E preferred units ($ 0.96875 per unit)

( 1,533 ) ( 1,533 )

Share-based compensation, net of forfeitures 10 833 833

Redemption of Units for common shares 5 201 ( 201 ) —

Redemption of Series E preferred units for common shares 8 323 ( 323 ) —

Equity rebalancing ( 129 ) 129 —

Contribution to noncontrolling interests - consolidated real estate entities 1,428 1,428

Shares withheld for taxes ( 4 ) ( 4 )

Other ( 1 ) ( 124 ) ( 45 ) ( 169 )

Balance at June 30, 2025 16,757 $ 1,369,376 $ ( 659,266 ) $ ( 58 ) $ 123,530 $ 833,582

Three Months Ended June 30, 2026

Balance at March 31, 2026 16,803 $ 1,370,461 $ ( 675,493 ) $ — $ 115,172 $ 810,140

Net loss attributable to controlling interests and noncontrolling interests

( 1,020 ) ( 168 ) ( 1,188 )

Distributions - common shares and Units ($ 0.77 per share and unit)

( 12,938 ) ( 680 ) ( 13,618 )

Distributions - Series E preferred units ($ 0.96875 per unit)

( 1,515 ) ( 1,515 )

Share-based compensation, net of forfeitures 10 1,078 1,078

Redemption of Units for common shares 19 790 ( 790 ) —

Redemption of Series E preferred units for common shares 5 243 ( 243 ) —

Equity rebalancing ( 12 ) 12 —

Shares repurchased ( 45 ) ( 2,516 ) ( 2,516 )

Other — ( 291 ) ( 79 ) 1 ( 369 )

Balance at June 30, 2026 16,792 $ 1,369,753 $ ( 689,530 ) $ — $ 111,789 $ 792,012

See accompanying Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES

2 unchanged sentences

Depreciation and amortization, including amortization of capitalized loan costs 52,277 55,425

(Gain) loss on sale of real estate and other investments

Share-based compensation expense 2,166 1,691

10 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from insurance 417 177

Net proceeds from sale of real estate and other investments

Payments for acquisitions of real estate investments — ( 150,076 )

Payments for improvements of real estate investments ( 12,951 ) ( 14,771 )

Other investing activities 359 379

Net cash used by investing activities

Net cash provided by (used by) investing activities

$ 16,934 $ ( 164,468 )

3 unchanged sentences

Principal payments on revolving lines of credit ( 86,471 ) ( 69,236 )

Repurchase of common shares ( 2,516 ) —

Redemption of Series D preferred units — ( 5,250 )

Distributions paid to common shareholders ( 25,830 ) ( 25,322 )

3 unchanged sentences

Other financing activities ( 181 ) ( 386 )

Net cash used by financing activities

Net cash provided by (used by) financing activities

$ ( 66,270 ) $ 118,838

12 unchanged sentences

Unrealized gain on investment ( 209 ) ( 48 )

Contribution to noncontrolling interests - consolidated real estate entities through issuance of note receivable — 1,428

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

2 unchanged sentences

Balance Sheet Description

March 31, 2026 December 31, 2025 March 31, 2025

June 30, 2026 December 31, 2025 June 30, 2025

Cash and cash equivalents $ 8,560 $ 12,833 $ 12,378

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

March 31, 2026

June 30, 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.

As of March 31, 2026, Centerspace owned interests in 61 apartment communities consisting of 12,263 apartment homes.

As of June 30, 2026, Centerspace owned interests in 60 apartment communities consisting of 12,090 apartment homes.

NOTE 2 • BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

17 unchanged sentences

RECLASSIFICATIONS

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.

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.

Certain previously reported amounts within net cash provided by operating activities and net cash provided by (used by) investing activities on the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current financial statement presentation.

These reclassifications had no impact on net loss as reported in the Condensed Consolidated Statements of Operations and Comprehensive 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

24 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.

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.

As of June 30, 2026 and December 31, 2025, restricted cash consisted of $ 1.9 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.

For the three months ended March 31, 2026 and 2025, rental income represented approximately 98.6 % and 98.4 % of total revenues, respectively.

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.

For the three months ended June 30, 2026 and 2025, rental income represented approximately 98.4 % and 98.2 % of total revenues, respectively.

For the three months ended June 30, 2026 and 2025, other property revenues represented the remaining 1.6 % and 1.8 %, respectively, of total revenues and are primarily driven by other fee income, which is typically recognized when earned, at a point in time.

For the six months ended June 30, 2026 and 2025, rental income represented approximately 98.5 % and 98.3 % of total revenues, respectively.

For the six months ended June 30, 2026 and 2025, other property revenues represented the remaining 1.5 % and 1.7 % of total revenues, respectively.

Some of the Company’s apartment communities have commercial spaces available for lease.

4 unchanged sentences

The combined components are included in lease income and are accounted for under ASC 842.

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:

The aggregate amount of future scheduled lease income on commercial operating leases, excluding any variable lease income and non-lease components, as of June 30, 2026, was as follows:

(in thousands)

2 unchanged sentences

Total scheduled lease income - operating leases (1)

(1) Excludes operating leases for assets classified as held for sale as of June 30, 2026.

REVENUES AND GAINS OR LOSSES ON SALE OF REAL ESTATE

2 unchanged sentences

Centerspace recognizes revenue for these rental related items not included as a component of a lease as earned.

The following table presents the disaggregation of revenue streams for the three months ended March 31, 2026 and 2025:

The following table presents the disaggregation of revenue streams for the three and six months ended June 30, 2026 and 2025:

(in thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

Revenue Stream Applicable Standard 2026 2025 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.

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.

During the three and six months ended June 30, 2026, the Company recognized a gain of $ 271,000 on the sale of real estate and other investments.

During the three and six months ended June 30, 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.

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).

During the three months ended June 30, 2026 and 2025, the Company recognized $ 61,000 and $ 95,000 , respectively, of amortization expense related to intangibles.

During the six months ended June 30, 2026 and 2025, the Company recognized $ 798,000 and $ 1.2 million, respectively, of amortization expense related to intangibles, included within depreciation and amortization in the Condensed Consolidated Statements of Operations and Comprehensive 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.

As of March 31, 2026, Centerspace held more than 10% of the carrying value of its real estate portfolio in the Minneapolis, Minnesota;

As of June 30, 2026, Centerspace held more than 10% of the carrying value of its real estate portfolio in the Minneapolis, Minnesota;

Denver, Colorado;

1 unchanged sentence

Collins, Colorado markets.

HELD FOR SALE

The Company classifies properties as held for sale when they meet the GAAP criteria, which include:

(a) management commits to and initiates a plan to sell the asset;

(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;

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.

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.

The Company presents the assets and liabilities of any properties held for sale separately in the Condensed Consolidated Balance Sheets.

Held for sale properties are reported at the lower of their carrying amount or estimated fair value less costs to sell.

Both the real estate assets and corresponding liabilities are presented separately in the accompanying Condensed Consolidated Balance Sheets.

Upon classifying an asset as held for sale, no further depreciation is recorded.

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.

The Company had 13 apartment communities with associated commercial space and tax increment financing (“TIF”) note receivable classified as held for sale at June 30, 2026.

During the six months ended June 30, 2026, the Company’s Board of Trustees approved a plan to sell a specific list of apartment communities which are expected to close during the third quarter of 2026.

The Company determined these apartment communities met the criteria to be classified as held for sale as of June 30, 2026 and did not meet the criteria for discontinued operations.

The Company did not have any apartment communities classified as held for sale at December 31, 2025.

The table below presents the major components of assets and liabilities for apartment communities held for sale as of June 30, 2026:

(in thousands)

June 30, 2026

Total real estate investments $ 130,538

Other assets 4,573

Assets held for sale, net $ 135,111

Accounts payable and accrued expenses

Liabilities held for sale, net

IMPAIRMENT OF LONG-LIVED ASSETS

6 unchanged sentences

Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

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.

During the three months ended March 31, 2025, the Company did not record a loss for impairment on real estate.

During the three months ended June 30, 2026, the Company did not record a loss for impairment on real estate.

During the six months ended June 30, 2026, the Company incurred a loss of $ 9.7 million for the impairment of one apartment community in Denver, Colorado.

During the three and six months ended June 30, 2025, the Company incurred a loss of $ 14.5 million for the impairment of five apartment communities in connection with classifying the communities as held for sale.

VARIABLE INTEREST ENTITIES

4 unchanged sentences

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.

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.

As of June 30, 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.

The note bears interest at a rate of 6.0 % and matures September 30, 2041.

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.

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.

As of June 30, 2026, the principal balance was $ 4.6 million, which appears within assets held for sale, net, in the Condensed Consolidated Balance Sheets at fair value.

As of December 31, 2025 the principal balance was $ 4.9 million and 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.

The note matures February 1, 2039, and may be prepaid in whole or in part at any time.

The note met the criteria to be classified as assets held for sale as of June 30, 2026.

In 2023, the Company originated a $ 15.1 million mezzanine loan for the development of an apartment community located in Inver Grove Heights, Minnesota.

The mezzanine loan bears interest at 10.0 % per annum, which accrues and is added to the principal balance and is payable at maturity.

As of March 31, 2026 and December 31, 2025, the Company had funded $ 15.1 million of the mezzanine loan.

As of March 31, 2026 and December 31, 2025, the principal balance was $ 18.4 million and $ 18.0 million, respectively.

As of June 30, 2026 and December 31, 2025, the Company had funded $ 15.1 million of the mezzanine loan.

As of June 30, 2026 and December 31, 2025, the principal balance was $ 18.9 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.

4 unchanged sentences

ADVERTISING COSTS

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.

During the three months ended March 31, 2026 and 2025, total advertising expense was $ 651,000 and $ 623,000 , respectively.

Advertising costs are expensed as incurred and reported on the Condensed Consolidated Statements of Operations and Comprehensive Loss within the property operating expenses, excluding real estate taxes line item.

During the three months ended June 30, 2026 and 2025, total advertising expense was $ 762,000 and $ 676,000 , respectively.

During the six months ended June 30, 2026 and 2025, total advertising expense was $ 1.4 million and $ 1.3 million, respectively.

INVOLUNTARY CONVERSION OF ASSETS

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.

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.

During the three months ended June 30, 2026, Centerspace recorded approximately $ 300,000 in net casualty recoveries due to the completion of previous claims, offset by $ 95,000 in casualty loss estimates.

During the six months ended June 30, 2026, the Company recorded $ 1.0 million in casualty loss estimates resulting from two new loss events and updated loss estimates on previously reported events along with $ 729,000 in insurance receivables, reported within other assets on the Condensed Consolidated Balance Sheets, casualty recoveries due to the completion of previous claims, and receipt of insurance proceeds totaling $ 459,000 which was in excess of previously recorded receivables.

Any business interruption insurance and subrogation proceeds will be recognized when received in accordance with ASC 610-30.

During the three months ended June 30, 2025, Centerspace recorded $ 254,000 in casualty losses resulting from updated loss estimates on three previously reported events.

During the six months ended June 30, 2025, the Company recorded $ 776,000 in casualty losses resulting from two new insurance events and updated loss estimates from three previously reported events.

Any business interruption insurance proceeds will be recognized when received in accordance with ASC 610-30.

During the three and six months ended June 30, 2026, in connection with the disposition of an apartment community in June and the planned dispositions of 13 apartment communities which are classified as held for sale as of June 30, 2026, the Company incurred total severance costs of $ 880,000 for severance, benefits, and related costs.

These expenses are included within general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

NOTE 3 • NET INCOME (LOSS) PER SHARE

1 unchanged sentence

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.

Certain of the Company’s time-based RSUs receive nonforfeitable dividend equivalents prior to vesting that are similar to the common shares.

These unvested RSUs are participating securities.

We include the effect of participating securities in the basic and diluted net income (loss) per share using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method.

The Company calculates diluted net income (loss) per share using the treasury stock method for nonparticipating RSUs and ISOs and the if converted method for Series D preferred units and Series E preferred units.

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).

1 unchanged sentence

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.

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)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net loss attributable to controlling interests

$ ( 1,020 ) $ ( 14,515 ) $ ( 13,909 ) $ ( 18,249 )

Distributions allocated to participating securities ( 80 ) — ( 80 ) —

Numerator for basic and diluted loss per share – net loss available to common shareholders (1)

1 unchanged sentence

Denominator for basic and diluted loss per share weighted average shares 16,810 16,741 16,792 16,734

16,775 16,727

NET LOSS PER COMMON SHARE – BASIC AND DILUTED

$ ( 0.07 ) $ ( 0.87 ) $ ( 0.83 ) $ ( 1.09 )

(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.

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.

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.

(1) For the three and six months ended June 30, 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.

For the three months ended June 30, 2026, weighted average operating partnership units of 895,000 , Series D preferred units of 82,000 , as converted, Series E preferred units of 1.9 million, as converted, non-participating time-based RSUs and options of 7,000 , participating RSUs of 22,000 , and performance-based RSUs of 17,000 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.

For the three months ended June 30, 2025, weighted average operating partnership units of 971,000 , 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 25,000 , 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.

For the six months ended June 30, 2026, weighted average operating partnership units of 905,000 , Series D preferred units of 82,000 , as converted, Series E preferred units of 1.9 million, as converted, non-participating time-based RSUs and options of 11,000 , participating RSUs of 18,000 , and performance-based RSUs of 15,000 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.

For the six months ended June 30, 2025, weighted average operating partnership units of 975,000 , 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 25,000 , 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).

Series D preferred units outstanding were 59,400 at March 31, 2026 and December 31, 2025.

Series D preferred units outstanding were 59,400 at June 30, 2026 and December 31, 2025.

The Series D preferred units have a par value of $ 100 per preferred unit.

1 unchanged sentence

Each Series D preferred unit is convertible, at the holder’s option, into 1.37931 Units.

The Series D preferred units had an aggregate liquidation value of $ 5.9 million at March 31, 2026 and December 31, 2025.

The Series D preferred units had an aggregate liquidation value of $ 5.9 million at June 30, 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.

2 unchanged sentences

Operating Partnership Units.

The Operating Partnership had 901,000 and 920,000 outstanding Units at March 31, 2026 and December 31, 2025, respectively.

The Operating Partnership had 882,000 and 920,000 outstanding Units at June 30, 2026 and December 31, 2025, respectively.

Exchange Rights .

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.

Centerspace redeemed Units in exchange for common shares in connection with Unitholders exercising their exchange rights during the three and six months ended June 30, 2026 and 2025 as detailed in the table below.

(in thousands)

Three Months Ended March 31, Number of Units Total Book Value

Three Months Ended June 30, Number of Units Total Book Value

2026 19 $ 790

Six Months Ended June 30,

2026 38 $ 1,601

2025 12 $ 535

Series E Preferred Units (Noncontrolling Interests).

Centerspace had 1.6 million Series E preferred units outstanding as of March 31, 2026 and December 31, 2025.

Centerspace had 1.6 million Series E preferred units outstanding as of June 30, 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.

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 Series E preferred units had an aggregate liquidation preference of $ 155.9 million and $ 157.0 million as of June 30, 2026 and December 31, 2025, respectively.

The holders of the Series E preferred units do not have voting rights.

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.

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 six months ended June 30, 2026 and 2025 as detailed below.

(in thousands)

Three Months Ended March 31, Number of Series E Preferred Units Redeemed

Three Months Ended June 30, Number of Series E Preferred Units Redeemed

Number of Common Shares Issued

1 unchanged sentence

2025 6 8 $ 323

Six Months Ended June 30,

2026 12 14 $ 608

2025 6 8 $ 338

Common Shares and Equity Awards .

Common shares outstanding as of March 31, 2026 and December 31, 2025, totaled 16.8 million.

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).

Common shares outstanding as of June 30, 2026 and December 31, 2025, totaled 16.8 million.

During the three and six months ended June 30, 2026, Centerspace issued 9,545 and 24,667 common shares, respectively, with a total grant-date fair value of $ 609,000 and $ 1.8 million, respectively, as share-based compensation for employees and trustees under its 2015 and 2025 Incentive Plans (as defined below).

During the three and six months ended June 30, 2025, Centerspace issued 9,835 and 17,653 common shares, respectively, with a total grant-date fair value of $ 677,000 and $ 1.5 million, respectively, as share-based compensation for employees and trustees under its 2015 Incentive Plan.

These shares vested based on performance and service criteria.

Refer to Note 11 for additional details on share-based compensation.

At-the-Market Program.

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.

Equity Distribution Agreement.

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.

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.

There were no sales of common shares under the ATM Program during the three months ended March 31, 2026 and 2025.

As of March 31, 2026, common shares having an aggregate offering price of up to $ 262.9 million remained available under the ATM Program.

There were no sales of common shares under the ATM Program during the three and six months ended June 30, 2026 and 2025.

As of June 30, 2026, common shares having an aggregate offering price of up to $ 262.9 million remained available under the ATM Program.

Share Repurchase Program.

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.

There were no shares repurchased under these programs during the three months ended March 31, 2026 and 2025.

As of March 31, 2026, the Company had $ 96.5 million remaining authorized for purchase under the Share Repurchase Program.

The table below provides details on the shares repurchased under this program during the three and six months ended June 30, 2026.

There were no shares repurchased during the three and six months ended June 30, 2025.

As of June 30, 2026, the Company had $ 94.0 million remaining authorized for purchase under the Share Repurchase Program.

(in thousands, except per share amounts)

Three Months Ended June 30, Number of Common Shares Aggregate Cost (1)

Average Price Per Share (1)

2026 45 $ 2,516 $ 55.54

Six Months Ended June 30,

2026 45 $ 2,516 $ 55.54

(1) Amount includes commissions.

NOTE 5 • DEBT

The following table summarizes the Company’s secured and unsecured debt at March 31, 2026 and December 31, 2025.

The following table summarizes the Company’s secured and unsecured debt at June 30, 2026 and December 31, 2025.

(in thousands)

March 31, 2026 December 31, 2025

Carrying Amount Weighted Average Interest Rate Carrying Amount Weighted Average Interest Rate Weighted Average Maturity in Years at March 31, 2026

June 30, 2026 December 31, 2025

Carrying Amount Weighted Average Interest Rate Carrying Amount Weighted Average Interest Rate Weighted Average Maturity in Years at June 30, 2026

Lines of credit (1)

12 unchanged sentences

Total debt $ 989,583 $ 1,021,164

(1) Interest rates on lines of credit are variable and exclude any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps.

(1) Interest rates on lines of credit are variable and exclude any unused facility fees and amounts reclassified from accumulated other comprehensive loss into interest expense from terminated interest rate swaps.

(2) Included within notes payable on the Condensed Consolidated Balance Sheets.

(3) Represents apartment communities encumbered by mortgages;

10 at March 31, 2026 and December 31, 2025.

9 at June 30, 2026 and 10 at December 31, 2025.

(4) Interest rate is fixed.

As of March 31, 2026, 44 apartment communities were not encumbered by mortgages and were available to provide credit support for the unsecured borrowings.

As of June 30, 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.

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 %.

As of June 30, 2026, the Company had additional borrowing availability of $ 224.0 million beyond the $ 176.0 million drawn under the Facility, bearing interest at a rate of 4.87 %.

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 %.

As amended, this The Facility matures in July 2028, with an option to extend maturity for up to two additional six-month periods.

This Facility matures in July 2028, with an option to extend maturity for up to two additional six-month periods.

The Secured Overnight Financing Rate (“SOFR”) is the benchmark alternative reference rate under the Facility.

3 unchanged sentences

This operating line of credit terminates in September 2026 and is designed to enhance treasury management activities and more effectively manage cash balances.

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 %.

As of June 30, 2026 the interest rate on this line of credit was 5.87 % and no outstanding balance, 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.

The following table shows the notes issued under both agreements as of March 31, 2026 and December 31, 2025.

The following table shows the notes issued under both agreements as of June 30, 2026 and December 31, 2025.

(in thousands)

9 unchanged sentences

The FMCF is secured by mortgages on 7 apartment communities.

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 %.

As of March 31, 2026 and December 31, 2025, the FMCF had a balance of $ 198.9 million.

The notes are interest-only, with varying maturity dates between September 2028 and September 2033, and a blended, weighted average fixed interest rate of 2.78 %.

As of June 30, 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.

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.

As of June 30, 2026, Centerspace owned 9 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.

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.

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 Company believes that there were no material defaults or instances of material noncompliance in regard to any of these mortgage loans as of June 30, 2026.

As of June 30, 2026 and December 31, 2025, the mortgage loans had a balance of $ 346.3 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.

The aggregate amount of required future principal payments on outstanding debt as of March 31, 2026, was as follows:

The aggregate amount of required future principal payments on outstanding debt as of June 30, 2026, was as follows:

(in thousands)

5 unchanged sentences

The Company’s borrowings are subject to customary covenants and limitations.

The Company believes that it was in compliance with all such covenants and limitations as of March 31, 2026.

The Company believes that it was in compliance with all such covenants and limitations as of June 30, 2026.

NOTE 6 • DERIVATIVE INSTRUMENTS

3 unchanged sentences

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.

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.

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.

As of June 30, 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.

The table below presents the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations and Comprehensive Loss as of June 30, 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)

Three months ended March 31, 2026 2025 2026 2025

Three months ended June 30, 2026 2025 2026 2025

Total derivatives in cash flow hedging relationships - Interest rate contracts $ — $ — Interest expense $ — $ ( 174 )

Six months ended June 30,

Total derivatives in cash flow hedging relationships - Interest rate contracts $ — $ — Interest expense $ — $ ( 349 )

NOTE 7 • FAIR VALUE MEASUREMENTS

5 unchanged sentences

Balance Sheet Location Total Level 1 Level 2 Level 3

March 31, 2026

June 30, 2026

Real estate related notes receivable Other assets $ 22,610 $ — $ — $ 22,610

Real estate related notes receivable Assets held for sale, net 4,504 — — 4,504

December 31, 2025

2 unchanged sentences

The unobservable inputs include market transactions for similar instruments, management estimates of comparable interest rates (range of 5.0 % to 9.0 %), and instrument specific credit risk (range of 0.5 % to 1.0 %).

Changes in the fair value of these receivables from period to period are reported in interest and other income on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Changes in the fair value of these receivables from period to period are reported in interest and other income on the Condensed Consolidated Statements of Operations and Comprehensive Loss.

(in thousands)

Fair Value Measurement Other Gains Interest Income Total Changes in Fair Value Included in Current-Period Earnings

Three months ended March 31, 2026

Six months ended June 30, 2026

Real estate related notes receivable $ 27,114 $ 18 $ 1,154 $ 1,172

Three months ended March 31, 2025

Six months ended June 30, 2025

Real estate related notes receivable $ 27,238 $ 18 $ 1,092 $ 1,110

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.

As of June 30, 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.

As of March 31, 2026, the Company had unfunded commitments of $ 650,000 .

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.

As of June 30, 2026, the Company had unfunded commitments of $ 598,000 .

The portion of unrealized gains and losses for the three and six months ended June 30, 2026 and 2025 related to equity securities still held at the reporting date is shown in the table below.

(in thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Unrealized gains and losses on equity securities still held at the reporting date $ — $ ( 19 ) $ 209 $ 48

Fair Value Measurements on a Nonrecurring Basis

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.

There were no non-financial assets measured at fair value on a nonrecurring basis at June 30, 2026.

Non-financial assets measured at fair value on a nonrecurring basis at December 31, 2025 consisted of real estate investments that were written down to estimated fair value in connection with the impairment recorded on one apartment community during the year ended December 31, 2025.

This asset was further impaired during the three months ended March 31, 2026 and sold during the three months ended June 30, 2026.

(in thousands)

Balance Sheet Location Total Level 1 Level 2 Level 3

March 31, 2026

Real estate investments measured at fair value Assets held for sale, net $ 29,500 $ — $ — $ 29,500

December 31, 2025

Real estate investments measured at fair value Assets held for sale, net $ 39,700 $ — $ — $ 39,700

Real estate investments measured at fair value Property owned $ 39,700 $ — $ — $ 39,700

Financial Assets and Liabilities Not Measured at Fair Value

2 unchanged sentences

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).

The estimated fair values of the Company’s financial instruments as of March 31, 2026 and December 31, 2025, respectively, are as follows:

The estimated fair values of the Company’s financial instruments as of June 30, 2026 and December 31, 2025, respectively, are as follows:

(in thousands)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Balance Sheet Location Amount

12 unchanged sentences

NOTE 8 • ACQUISITIONS AND DISPOSITIONS

Centerspace did not acquire new real estate during the three months ended March 31, 2026 and 2025.

Centerspace did not dispose of any real estate during the three months ended March 31, 2026 and 2025.

Centerspace did not acquire new real estate during the three and six months ended June 30, 2026.

Centerspace acquired $ 149.0 million of new real estate during the three and six months ended June 30, 2025 as detailed below.

(in thousands)

Form of Consideration

Investment Allocation

Building & Improvements

Intangible Assets (2)

341 homes - Sugarmont - Salt Lake City, UT

May 30, 2025 $ 149,000 $ 20,086 $ 124,649 $ 4,265

Total Acquisitions

$ 149,000 $ 20,086 $ 124,649 $ 4,265

(1) Excludes $ 1.1 million in capitalized transaction cost.

(2) Intangible assets consist of in-place leases valued at the time of acquisition.

During the three and six months ended June 30, 2026, Centerspace disposed of one apartment community and associated commercial space in one transaction for a sales price of $ 30.0 million.

Centerspace did not dispose of any real estate during the three and six months ended June 30, 2025.

(in thousands)

Dispositions Date

Disposed Sale Price Net Book Value and Transaction Costs

176 homes - Civic Lofts - Denver, CO

June 29, 2026 $ 30,000 $ 29,729 $ 271

Total Dispositions $ 30,000 $ 29,729 $ 271

NOTE 9 • SEGMENTS

1 unchanged sentence

Each of the operating properties is considered a separate operating segment because each property earns revenues, incurs expenses, and has discrete financial information.

The chief executive officer and chief financial officer are the chief operating decision-makers (“CODM”).

During the three months ended June 30, 2026, the Company reevaluated its reportable segments under ASC 280, Segment Reporting, including the aggregation of operating segments.

As a result of planned dispositions, including Held for Sale properties, and the impact of those dispositions, the Company changed the presentation of certain operating results within its segment disclosures.

The Company continues to have one reportable segment, Multifamily.

Activities that do not meet the criteria for inclusion in the Multifamily segment are presented in All Other or Unallocated, as applicable.

The Company determined that this revised presentation is consistent with the manner in which the chief operating decision-makers (“CODM”) evaluates the business.

In accordance with ASC 280, prior-period segment information presented herein has been recast to conform to the current-period presentation.

The recast had no impact on the Company’s Condensed Consolidated Financial Statements.

The chief executive officer and chief financial officer are the CODMs.

The CODMs evaluate each property’s operating results, using net operating income (“NOI”) to make decisions about resources to be allocated and to assess property performance, and do not group the properties based on geography, size, or type for this purpose.

4 unchanged sentences

Accordingly, the apartment communities are aggregated into a single reportable segment, Multifamily.

“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.

During the year ended December 31, 2025, the Company disposed of 12 communities which are included in “all other.”

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.

“All other” is composed of non-multifamily properties and non-multifamily components of mixed-use properties, which did not meet the aggregation criteria.

For the three and six months ended June 30, 2026, the Company disposed of one apartment community and associated commercial space which is included in “Unallocated”.

During the year ended December 31, 2025, the Company disposed of 12 communities which are included in “Unallocated,” as they no longer contribute to segment revenues or operating expenses.

For the three and six months ended June 30, 2026, 13 apartment communities designated as held for sale were included in “Multifamily” with any related commercial space included in “All Other”.

The following tables present NOI for the three and six months ended June 30, 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)

Three Months Ended March 31, 2026 Multifamily All Other Total

Three Months Ended June 30, 2026 Multifamily All Other Unallocated (3)

Revenue $ 64,208 $ 917 $ 657 $ 65,782

12 unchanged sentences

Depreciation and amortization ( 25,075 )

General and administrative expenses ( 5,659 )

Gain on sale of real estate and other investments

Interest expense ( 10,623 )

Interest and other income 709

(1) On-site compensation for administration, leasing, and maintenance personnel.

(2) Includes turnover expense.

(3) Apartment communities that have been sold are classified as unallocated, as they no longer contribute to segment revenues or operating expenses.

(in thousands)

Three Months Ended June 30, 2025 Multifamily All Other Unallocated (3)

Revenue $ 59,840 $ 779 $ 7,930 $ 68,549

Property operating expenses

On-site compensation (1)

6,106 — 984 7,090

Repairs and maintenance (2)

3,257 47 611 3,915

Utilities 3,095 35 634 3,764

Administrative and marketing 1,499 2 295 1,796

Insurance 1,942 22 324 2,288

Real estate taxes 6,707 131 840 7,678

Net operating income $ 37,234 $ 542 $ 4,242 $ 42,018

Property management expense ( 2,393 )

Casualty loss, net of recoveries ( 399 )

Depreciation and amortization ( 27,097 )

Impairment of real estate investments ( 14,543 )

4 unchanged sentences

(2) Includes turnover expense.

(3) Apartment communities that have been sold are classified as unallocated, as they no longer contribute to segment revenues or operating expenses.

(in thousands)

Three Months Ended March 31, 2025 Multifamily All Other Total

Six Months Ended June 30, 2026 Multifamily All Other Unallocated (3)

Revenue $ 127,563 $ 1,828 $ 1,460 $ 130,851

12 unchanged sentences

Depreciation and amortization ( 51,573 )

Impairment of real estate investments ( 9,700 )

General and administrative expenses ( 11,991 )

Gain on sale of real estate and other investments

Interest expense ( 21,093 )

2 unchanged sentences

(2) Includes turnover expense.

(3) Apartment communities that have been sold are classified as unallocated, as they no longer contribute to segment revenues or operating expenses.

(in thousands)

Six Months Ended June 30, 2025 Multifamily All Other Unallocated (3)

Revenue $ 118,287 $ 1,580 $ 15,775 $ 135,642

Property operating expenses

On-site compensation (1)

11,999 — 1,961 13,960

Repairs and maintenance (2)

5,921 93 1,090 7,104

Utilities 7,134 80 1,407 8,621

Administrative and marketing 2,806 4 546 3,356

Insurance 4,102 42 736 4,880

Real estate taxes 13,340 345 1,656 15,341

Net operating income $ 72,985 $ 1,016 $ 8,379 $ 82,380

Property management expense ( 4,826 )

Casualty loss, net of recoveries ( 931 )

Depreciation and amortization ( 54,751 )

Impairment of real estate investments ( 14,543 )

General and administrative expenses ( 9,379 )

Interest expense ( 20,359 )

Interest and other income 1,443

(1) On-site compensation for administration, leasing, and maintenance personnel.

(2) Includes turnover expense.

(3) Apartment communities that have been sold are classified as unallocated, as they no longer contribute to segment revenues or operating expenses.

Segment Assets and Accumulated Depreciation

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:

Segment assets are summarized as follows as of June 30, 2026, and December 31, 2025, respectively, along with reconciliations to the Condensed Consolidated Financial Statements:

(in thousands)

As of March 31, 2026 Multifamily All Other Total

As of June 30, 2026 Multifamily (1)

All Other Unallocated Total

Segment assets

5 unchanged sentences

Other assets 38,993

Assets held for sale, net (2)

Total Assets $ 1,840,365

(1) During the three months ended June 30, 2026, 13 apartment communities were classified as held for sale.

As described in Note 2, we present certain assets and liabilities of apartment communities classified as held for sale separately in the Condensed Consolidated Balance Sheets.

Therefore, the held for sale assets are not included in the segment assets as of June 30, 2026.

The assets for these apartment communities remain in Multifamily segment assets as of December 31, 2025.

Refer to Note 2 for the balance sheet of held for sale communities.

(2) Includes the assets for the 13 apartment communities designated as held for sale as of June 30, 2026.

(in thousands)

As of December 31, 2025 Multifamily All Other Total

As of December 31, 2025 Multifamily (1)

All Other Unallocated (1)

Segment assets

6 unchanged sentences

Total Assets $ 1,926,167

(1) Includes the segment assets for the 13 apartment communities designated as held for sale as of June 30, 2026.

Apartment communities sold during the six months ended June 30, 2026 were recast to Unallocated as they are no longer segment assets.

NOTE 10 • COMMITMENTS AND CONTINGENCIES

9 unchanged sentences

Unfunded Commitments.

As of March 31, 2026, Centerspace had unfunded commitments of $ 650,000 in two real estate technology venture funds.

As of June 30, 2026, Centerspace had unfunded commitments of $ 598,000 in two real estate technology venture funds.

Refer to Note 7 - Fair Value Measurements for additional information regarding these investments.

NOTE 11 • SHARE-BASED COMPENSATION

Share-based awards are provided to officers, non-officer employees, and trustees under the 2025 Incentive Plan approved by shareholders on May 14, 2025 (the “2025 Incentive Plan”), which allows for awards in the form of cash, unrestricted and restricted common shares, stock options, stock appreciation rights, and RSUs up to an aggregate of 650,000 shares over the ten-year period in which the plan is in effect.

year period in which the plan is in effect.

Under the 2025 Incentive Plan, officers and non-officer employees may earn share awards under a long-term incentive plan (“LTIP”), which is a forward-looking program that measures long-term performance over the stated performance period.

These awards are payable to the extent deemed earned in shares.

The terms of the long-term incentive awards granted under the revised program may vary from year to year.

Through March 31, 2026, awards under the 2025 Incentive Plan consisted of RSUs.

The terms of the long-term incentive awards granted under the program may vary from year to year.

Generally, time-based RSUs include the right to receive dividend equivalents either upon vesting or as distributions are declared on common shares.

Through June 30, 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.

Through March 31, 2026, awards under the 2015 Incentive Plan consisted of restricted and unrestricted common shares, RSUs, and stock options.

Through June 30, 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.

Awards granted to trustees on May 13, 2026, under the 2025 Incentive Plan, consist of 7,472 time-based RSUs, which vest on May 13, 2027.

These awards are classified as equity awards.

Share-Based Compensation Expense

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.

Total share-based compensation expense recognized in the Condensed Consolidated Financial Statements for all outstanding share-based awards was $ 1.1 million and $ 833,000 for the three months ended June 30, 2026 and 2025, respectively, and $ 2.2 million and $ 1.7 million for the six months ended June 30, 2026 and 2025.

NOTE 12 • SUBSEQUENT EVENTS

On July 9, 2026, Centerspace completed the disposition of five apartment communities, consisting of 474 homes, located in Rapid City, South Dakota, for an aggregate sale price of $ 66.0 million.

On July 14, 2026, Centerspace completed the disposition of two apartment communities, consisting of 312 homes, located in Minneapolis, Minnesota, with associated commercial space and TIF note receivable for an aggregate sale price of $ 73.8 million.

The Company expects to use the proceeds from these dispositions to paydown its line of credit and for general working capital purposes.

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.

What changed 10-Q

Item 1. Financial Statements