Key Highlights

  • CSR reported third-quarter 2026 Net Income available to common shareholders of $123.3 million, or $7.28 per diluted share, versus $53.8 million, or $3.19, a year earlier.
  • Core FFO per diluted share and unit fell to $1.11 from $1.19, while FFO dropped 30.7% to $16.2 million.
  • Revenue decreased 16.6% to $59.5 million from $71.4 million after the sale of 13 apartment communities in the quarter.
  • Same-store NOI declined 2.7% to $29.7 million on flat same-store Revenue and 4.2% higher operating expenses.
  • Cash stood at $116.2 million and total Liquidity at about $366.2 million on Sep 30, 2026, with no balance on the Credit line.

Property Sale Gains of $150.3 Million Drive Net Income to $7.28 a Share

Centerspace (NYSE:CSR) filed its Quarterly Report on Nov 2, 2026 for the third quarter ended Sep 30, 2026. Net income available to common shareholders reached $123.3 million, or $7.28 per diluted share, compared with $53.8 million, or $3.19, in the same quarter of 2025. The company attributed the increase mainly to gains on the sale of real estate of $150.3 million, against $79.5 million a year earlier.

Centerspace is a North Dakota real estate Investment trust that owns, manages, acquires and redevelops apartment communities. At Sep 30, 2026 it held interests in 47 communities with 10,456 apartment homes.

The company sold 13 communities with 1,634 homes in the quarter for $288.8 million, lifting year-to-date sales to $318.8 million.

Core FFO Slips to $1.11 as Disposals and Flat Same-Store Revenue Weigh

Revenue fell by $11.9 million, or 16.6%, to $59.5 million, mainly because of the sales. Core funds from operations, a non-GAAP measure, was $21.8 million, or $1.11 per diluted share and unit, compared with $1.19 a year earlier. Reported FFO fell 30.7% to $16.2 million, or $0.83 per share, partly because of $5.0 million in merger-related professional fees.

Same-store revenue was unchanged, as average monthly revenue per occupied home rose 0.8% while weighted average occupancy slipped to 95.0% from 95.7%. Same-store operating expenses climbed 4.2%, including a one-time Utility charge of $200,000, so same-store net Operating Income (NOI) dropped 2.7% to $29.7 million.

Interest expense decreased 35.2% to $8.4 million after the company repaid its credit line balances.

Pending Merger Exchange Ratio of 3.8 Shares Shapes the Balance Sheet Outlook

On Sep 8, 2026 Centerspace agreed to combine with a multifamily REIT, with each common share converting into 3.8 shares of the acquirer. The deal could close as early as the end of the fourth quarter of 2026, subject to approval by both companies' shareholders and other conditions. A $45.0 million termination fee would be payable by Centerspace in certain circumstances, and about $17.5 million of advisory fees become payable only if the deal completes.

Total Debt was $812.6 million at Sep 30, 2026, versus $1.02 billion at year-end 2025, and the credit line capacity was cut by $150.0 million to $250.0 million. The agreement restricts new borrowing, share repurchases and certain distributions without the counterparty's consent.

Shareholder Vote and Fourth-Quarter Closing Window Are the Next Milestones

Centerspace declared distributions of $0.77 per common share and unit for the quarter, unchanged from a year ago, and did not issue guidance in the filing. The pending merger now frames the outlook: investors will watch for the Shareholder meeting, lender consents and any closing during or after the fourth quarter of 2026.