csr-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 001-35624

CENTERSPACE

(Exact name of registrant as specified in its charter)

North Dakota

45-0311232

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

3100 10th Street SW

Post Office Box 1988

Minot

58702-1988

(Address of principal executive offices)

(Zip code)

(701) 837-4738

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for at least the past 90 days.

Yes

☑

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes

☑

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller Reporting Company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☑

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares of Beneficial Interest, no par value	CSR	New York Stock Exchange

The number of common shares of beneficial interest outstanding as of April 24, 2025, was 16,735,009.

Table of Contents

TABLE OF CONTENTS


			Page
Part I. Financial Information
Item 1. Financial Statements - First Quarter - 2025:			3
Condensed Consolidated Balance Sheets March 31, 2025 (unaudited) and December 31, 2024			3
Condensed Consolidated Statements of Operations and Com prehensive Income (Loss) (unaudited) For the Three Months ended March 31, 2025 and 2024			4

Condensed Consolidated Statements of Equity (unaudited) For the Three Months ended March 31, 2025 and 2024			5
Condensed Consolidated Statements of Cash Flows (unaudited) For the Three Months ended March 31, 2025 and 2024			6
Notes to Condensed Consolidated Financial Statements (unaudited)			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			31

Part II. Other Information
Item 1. Legal Proceedings			32
Item 1A. Risk Factors			32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
Item 3. Defaults Upon Senior Securities			33
Item 4. Mine Safety Disclosures			33
Item 5. Other Information			33
Item 6. Exhibits			34
Signatures			35

Table of Contents

PART I

Item 1. Financial Statements.

CENTERSPACE AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


	(in thousands, except per share data)
	March 31, 2025		December 31, 2024
ASSETS	(Unaudited)
Real estate investments
Property owned	$	2,484,111	$	2,480,741
Less accumulated depreciation	(652,368)		(625,980)



Total real estate investments	1,831,743		1,854,761
Cash and cash equivalents	11,916		12,030
Restricted cash	6,144		1,099
Other assets	43,281		45,817
TOTAL ASSETS	$	1,893,084	$	1,913,707
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	57,631	$	59,319
Revolving lines of credit	48,734		47,359

Notes payable, net	299,535		299,520
Mortgages payable, net	607,184		608,506
TOTAL LIABILITIES	$	1,013,084	$	1,014,704
COMMITMENTS AND CONTINGENCIES (NOTE 10)

SERIES D PREFERRED UNITS (Cumulative convertible preferred units, $100 par value, 166 units issued and outstanding at March 31, 2025 and December 31, 2024, aggregate liquidation preference of $16,560)	$	16,560	$	16,560
EQUITY

Common Shares of Beneficial Interest (Unlimited authorization, no par value, 16,735 shares issued and outstanding at March 31, 2025 and 16,719 shares issued and outstanding at December 31, 2024)	1,268,888		1,269,549
Accumulated distributions in excess of net income	(631,855)		(615,242)
Accumulated other comprehensive loss	(232)		(407)
Total shareholders’ equity	$	636,801	$	653,900
Noncontrolling interests – Operating Partnership and Series E preferred units	225,985		227,870
Noncontrolling interests – consolidated real estate entities	654		673
TOTAL EQUITY	$	863,440	$	882,443
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY	$	1,893,084	$	1,913,707

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

CENTERSPACE AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited)


	(in thousands, except per share data)
	Three Months Ended March 31,
	2025		2024
REVENUE	$	67,093	$	64,506
EXPENSES
Property operating expenses, excluding real estate taxes	19,068		18,764
Real estate taxes	7,663		6,305
Property management expense	2,433		2,330
Casualty loss	532		820
Depreciation and amortization	27,654		27,012

General and administrative expenses

SEC Form 10-Q filed by D/B/A Centerspace