Centerspace (CSR) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 6, 2026 astatine 8:54 AM CDT 25 min read

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DATE

Tuesday, May 5, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Anne Olson

• Senior Vice President of Investments and Capital Markets — Grant Campbell

• Chief Financial Officer — Bhairav Patel

Full Conference Call Transcript

Anne Olson: Thank you, Josh, and bully morning, everyone. I'm present with our SVP of Investments and Capital Markets, Grant Campbell; and our CFO, Bhairav Patel. I'll commencement by addressing the strategical reappraisal which we initiated successful 2025. This process is ongoing, and we admit the feedback we person received from our stakeholders. The Board and its advisers proceed to marque progress, and we expect to supply shareholders with a much substantive update connected the presumption of the reappraisal process earlier oregon successful transportation with our 2nd 4th net release. There tin beryllium nary assurance arsenic to the timing oregon result of our process and nary assurance that the reappraisal process volition effect successful a transaction oregon different strategical alteration oregon outcome.

We bash not mean to supply further details successful transportation with treatment of our archetypal 4th net results today. Thank you for your knowing arsenic we support our comments focused connected our results and our outlook. Our revenues for Q1 were successful enactment with our expectations, supported by unchangeable request and continued execution by our leasing teams. First 4th results bespeak the antagonistic interaction of caller changes to Colorado regulations, timing of definite expenses and costs related to our strategical review. These were anticipated, and our expectations for afloat twelvemonth halfway FFO and its drivers stay substantially unchanged. We are reiterating our antecedently released net guidance, and Bhairav volition sermon this momentarily.

Operationally, we are starting to spot the expected seasonal pickup successful leasing. While blended leasing spreads successful the 4th were up 40 ground points implicit anterior leases, each period demonstrated improvement, expanding from antagonistic 90 ground points successful January to affirmative 140 ground points successful March. We've seen this inclination proceed into April with preliminary blended spreads of 1.8%. The Q1 blend was composed of a 2.1% alteration successful caller lease rents, combined with a 3.1% summation connected renewals, portion successful April, caller lease spreads broke into affirmative territory and renewal spreads accrued to 3.3%.

Retention of 54.1% successful our same-store portfolio was a 2 percent constituent betterment from the aforesaid 4th past year, and our nonmigratory basal remains healthy, with rent-to-income levels astatine 21.2% and atrocious indebtedness wrong our humanities range. Our Midwest markets proceed to spot rent maturation outpacing nationalist averages, and our largest marketplace of Minneapolis saw blended spreads of 1.3% successful Q1. Notably, Minneapolis has shown the champion acceleration into April with blended spreads of 3.8% and caller lease spreads of 4.3% successful the month. In Denver, Q1 blended rates were down 5.1%, and reimbursement revenues are exhibiting the interaction of regulatory changes successful the market.