CENTERSPACE 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Market Information Our Common Shares of Beneficial Interest, no par value, are traded on the New York Stock Exchange under the symbol “CSR”. Shareholders As of February 15, 2021, there were approximately 2,573 common shareholders of record. Unregistered Sales of Shares Under the terms of Centerspace, LP’s Agreement of Limited Partnership, limited partners have the right to require Centerspace, LP to redeem their limited partnership units any time following the first anniversary of the date they acquired such Units (“Exchange Right”). When a limited partner exercises the Exchange Right, we have the right, in our sole discretion, to redeem such Units by either making a cash payment or exchanging the Units for our common shares, on a one-for-one basis. The Exchange Right is subject to certain conditions and limitations, including that the limited partner may not exercise the Exchange Right more than two times during a calendar year and the limited partner may not exercise for less than 100 Units, or, if such limited partner holds less than 100 Units, for less than all of the Units held by such limited partner. Centerspace, LP and some limited partners have contractually agreed to a holding period of greater than one year, a greater number of redemptions during a calendar year, or other modifications to their Exchange Right. During three months ended December 31, 2020, we issued an aggregate of 24,698 unregistered common shares to limited partners of Centerspace, LP upon exercise of their Exchange Rights for an equal number of Units. All such issuances of our common shares were exempt from registration as private placements under Section 4(a)(2) of the Securities Act, including Regulation D promulgated thereunder. We have registered the resale of such common shares under the Securities Act. Issuer Purchases of Equity Securities Maximum Dollar Total Number of Shares Amount of Shares That Total Number of Average Price Purchased as Part of May Yet Be Purchased Shares and Units Paid per Publicly Announced Under the Plans or Period Purchased (1) Share and Unit (2) Plans or Programs Programs (3) October 1 - 31, 2020 30 $ 70.01 — $ 44,371,557 November 1 - 30, 2020 — — — 44,371,557 December 1 - 31, 2020 — — — — Total 30 $ 70.01 — (1) Includes a total of 30 Units redeemed for cash pursuant to the exercise of exchange rights. (2) Amount includes commissions paid. (3) On December 5, 2019, the board authorized a new $50,000,000 repurchase program which expired on December 5, 2020. Comparative Stock Performance The information contained in this Comparative Stock Performance section shall not be deemed to be “soliciting material” or “filed” or “incorporated by reference” into our future filings with the SEC, or subject to the liabilities of Section 18 of the Exchange Act, except to the extent that we specifically incorporate it by reference into a document filed under the Securities Act or the Exchange Act. Set forth below is a graph that compares, for the five years commencing December 31, 2015 and ending December 31, 2020, the cumulative total returns for our common shares with the comparable cumulative total return of three indices, the Standard & Poor’s 500 Index (“S&P 500”), the FTSE Nareit Equity REITs Index, and the SNL U.S. REIT Multifamily Index, the latter of which is an index prepared by the FTSE Group for the National Association of Real Estate Investment Trusts, which includes all tax-qualified equity REITs listed on the NYSE and the NASDAQ Market. The performance graph assumes that, at the close 23 Table of Contents of trading on December 31, 2015, $100 was invested in our common shares and in each of the indices. The comparison assumes the reinvestment of all distributions. Period Ending Index 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 Centerspace 100.00 101.67 84.91 77.36 119.31 121.46 S&P 500 Index 100.00 113.51 138.29 132.23 173.86 205.85 FTSE Nareit Equity REITs 100.00 110.83 115.15 110.70 137.65 124.44 SNL U.S. REIT Multifamily 100.00 120.45 127.12 130.70 165.73 138.54 Source: S&P Global Market Intelligence 24 Table of Contents Item 6. Selected Financial Data Set forth below is selected financial data on a historical basis for the years ended December 31, 2020 and 2019, the eight months ended December 31, 2018, and the three most recent fiscal years ended April 30, 2018. This information should be read in conjunction with the consolidated financial statements and notes appearing elsewhere in this Report. (in thousands, except per share and apartment community data) Year Ended December 31, Eight Months Ended Fiscal Year Ended April 30, 2020 2019 December 31, 2018 2018 2017 2016 Consolidated Statement of Operations Data Revenue $ 177,994 $ 185,755 $ 121,871 $ 169,745 $ 160,104 $ 145,500 Impairment of real estate investments in continuing and discontinued operations — — 1,221 18,065 57,028 5,983 Gain (loss) on sale of discontinued operations and real estate and other investments 25,503 97,624 10,277 183,687 74,847 33,422 Income (loss) from continuing operations 4,743 84,822 (5,890) (37,194) (46,228) 9,182 Income (loss) from discontinued operations — — 570 164,823 76,753 67,420 Net income (loss) 4,743 84,822 (5,320) 127,629 30,525 76,602 Net income (loss) attributable to controlling interests 4,441 78,669 (4,398) 116,788 43,347 72,006 Net income (loss) available to common shareholders (1,790) 71,848 (8,945) 104,562 31,366 60,492 Consolidated Balance Sheet Data Total real estate investments 1,437,969 1,311,472 1,289,476 1,380,245 1,121,385 1,204,654 Total assets 1,464,183 1,392,418 1,335,997 1,426,658 1,474,514 1,755,022 Revolving lines of credit 152,871 50,079 57,500 124,000 57,050 17,500 Notes payable 269,246 269,058 143,991 69,514 — — Mortgages payable 297,074 329,664 444,197 509,919 565,978 648,173 Total shareholders’ equity 618,207 619,053 568,786 605,663 553,721 618,758 Consolidated Per Common Share Data (basic and diluted) Earnings (loss) from continuing operations – basic $ (0.15) $ 6.06 $ (0.79) $ (3.54) $ (3.01) — Earnings (loss) from discontinued operations – basic — — $ 0.04 $ 12.25 $ 5.59 $ 4.91 Net income (loss) per common share - basic $ (0.15) $ 6.06 $ (0.75) $ 8.71 $ 2.58 $ 4.91 Earnings (loss) from continuing operations – diluted $ (0.15) $ 6.00 $ (0.79) $ (3.54) $ (3.01) — Earnings (loss) from discontinued operations – diluted — — $ 0.04 $ 12.25 $ 5.59 $ 4.91 Net income (loss) per common share - diluted $ (0.15) $ 6.00 $ (0.75) $ 8.71 $ 2.58 $ 4.91 Distributions $ 2.80 $ 2.80 $ 2.10 $ 2.80 $ 4.60 $ 5.20 Other Data Total apartment communities 67 69 87 90 87 99 Total homes 11,910 11,953 13,702 14,176 13,212 12,974 Funds from operations applicable to common shares and units $ 47,356 $ 52,866 $ 30,559 $ 38,941 $ 55,207 $ 103,874 CALENDAR YEAR 2020 2019 2018 2017 2016 2015 Tax status of distributions Capital gain 13.62 % 38.53 % 100.00 % 48.87 % 87.57 % 11.99 % Ordinary income 7.91 % 23.43 % — 14.59 % 12.43 % 36.28 % Return of capital 78.47 % 38.04 % — 36.54 % — 51.73 % 25 Table of Contents