Centerspace filed a Form 8-K on August 26, 2026, disclosing that on August 21, 2026, it notified its administrative agent of its election to terminate a previously exercised accordion option, reducing its aggregate borrowing capacity under its credit agreement from $400.0 million to $250.0 million.

Key Highlights

  • Borrowing capacity reduced: Centerspace elected to terminate its accordion option, cutting aggregate credit facility capacity by $150.0 million, from $400.0 million to $250.0 million.
  • Effective date: The company expects the reduction to take effect on August 28, 2026.
  • Accordion option history: The $150.0 million accordion option had originally been exercised on May 29, 2025, increasing capacity from $250.0 million to $400.0 million.
  • Other terms unchanged: According to the filing, "other than the reduction in aggregate borrowing capacity described above, the material terms of the Credit Agreement remain unchanged."
  • Administrative agent: Bank of Montreal serves as administrative agent under the Credit Agreement.

Centerspace Elects to Terminate $150 Million Accordion Option on Credit Agreement

Centerspace (NYSE:CSR), a North Dakota-based real estate investment trust, disclosed that on August 21, 2026, it notified Bank of Montreal, as administrative agent, of its election to terminate an accordion option previously exercised under its Third Amended and Restated Credit Agreement. The Credit Agreement is held by Centerspace, LP, described in the filing as an indirect subsidiary of Centerspace, with the company itself listed among the guarantors.

According to the filing, the accordion option had been exercised on May 29, 2025, at which time the aggregate borrowing capacity under the Credit Agreement was increased by $150.0 million, from $250.0 million to $400.0 million. The termination of that option reverses the expansion, returning available capacity to $250.0 million. The company disclosed that the reduction is expected to become effective on August 28, 2026, seven days after the notification was sent.

The filing, signed by Anne Olson, President and Chief Executive Officer, states that all other material terms of the Credit Agreement remain unchanged as a result of this action. The Credit Agreement was originally entered into on September 30, 2021, and has been amended since that date. No further explanation for the decision to terminate the accordion option was provided in the filing.

What Was Disclosed

Centerspace reported the termination of a $150.0 million accordion option under its existing credit agreement, reducing total borrowing capacity from $400.0 million to $250.0 million, with the change expected to be effective August 28, 2026. All other credit agreement terms remain unchanged, according to the filing.