Centerspace (CSR) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 18, 2026 astatine 10:19 AM CST 26 min read

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Wednesday, Feb. 18, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — Anne M. Olson

• Senior Vice President, Investments and Capital Markets — Grant P. Campbell

• Chief Financial Officer — Bhairav Patel

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Anne M. Olson: Thank you, Josh, and bully morning, everyone. I americium present with our SVP of Investments and Capital Markets, Grant P. Campbell, and our CFO, Bhairav Patel. We are coming to you unrecorded from our yearly enactment conference, wherever our operating squad is unneurotic to observe our 2025 wins and hole to conscionable our 2026 goals. I volition commencement by addressing our strategical review. In November, we shared that our Board of Trustees is overseeing a ceremonial valuation of strategical alternatives to maximize shareholder value. This process was initiated from a presumption of strength, having transformed Centerspace into a pure-play multifamily REIT portion improving profitability, operating scale, and our equilibrium sheet.

Our strategical reappraisal underscores our committedness to acting successful the champion involvement of our shareholders, and this valuation remains ongoing. As we said erstwhile we announced this evaluation, determination tin beryllium nary assurance that this process volition effect successful Centerspace pursuing a transaction oregon immoderate different strategical outcome, and we bash not mean to supply further details connected the process successful transportation with the treatment of our 4th fourth net results today. We sincerely admit the thoughtful conversations we person had with shareholders frankincense acold and convey you for your knowing contiguous arsenic we support our comments focused connected our results and outlook.

Centerspace's 4th fourth capped a twelvemonth of advancement for the institution and demonstrated the wellness and resilience of our markets. Importantly, our results for the twelvemonth showed that our portfolio and attack output results, with our same-store NOI maturation of 3.5% outpacing peers connected the backmost of dependable occupancy and disbursal discipline. Rent maturation was strong, reflecting the durability of our nonmigratory basal and our exceptional absorption connected nonmigratory acquisition and optimization of revenue. Operationally, our portfolio benefits from Midwest exposure. Blended leasing spreads successful the 4th were up 10 ground points.

While caller lease spreads were down 4.8%, renewal spreads showed their highest maturation of the twelvemonth astatine 3.9%, and retention of 55.2% with the blended complaint successful affirmative territory. Retention for the afloat twelvemonth was 58.2%, demonstrating comparative affordability for our residents. Favorable absorption successful Minneapolis, our largest market, led to affirmative blended increases of 1.1%, portion successful our different markets, North Dakota erstwhile again led the portfolio with blended increases of 4.5% successful the quarter. In Denver, proviso continues to enactment downward unit connected rents, with Q4 blended rent trade-outs down 4.3%. Absorption successful the marketplace has continued astatine rates supra humanities norms, with 2025 the second-highest twelvemonth of absorption successful the post-pandemic era.