On October 30, 2023, Centerspace (CSR, Financial) announced its financial and operating results for the three and nine months ended September 30, 2023. The company reported a net income of $0.41 per diluted share for Q3 2023, a significant turnaround from a net loss of $0.14 per diluted share in the same period of 2022. The company's Core FFO per diluted share also increased by 4.3% to $1.20 for Q3 2023, compared to $1.15 for Q3 2022.
Financial Performance and Highlights
Centerspace (CSR, Financial) successfully executed the sale of four non-core apartment communities and associated commercial space in Minot, North Dakota for an aggregate sales price of $82.5 million, resulting in a gain on sale of $11.3 million. The company's same-store revenues increased by 5.7% for Q3 2023 compared to Q3 2022, driving a 5.4% increase in NOI compared to the same period of the prior year.
Balance Sheet and Subsequent Events
At the end of Q3 2023, Centerspace (CSR, Financial) had $285.7 million of total liquidity on its balance sheet, consisting of $256.0 million available under the lines of credit and cash and cash equivalents of $29.7 million. The company had no outstanding variable rate debt and only $30.6 million in debt maturing through 2025. On October 11, 2023, the company acquired Lake Vista Apartment Homes in Loveland, Colorado, for an aggregate purchase price of $94.5 million.
Revised 2023 Financial Outlook
Centerspace (CSR, Financial) revised its 2023 financial outlook, narrowing the financial outlook ranges for net income per diluted share and FFO per diluted share and raising the mid-point for Core FFO per diluted share. The company now expects net income per share to be between $2.90 and $3.56, and Core FFO per share to be between $4.63 and $4.71.
Conclusion
The Q3 2023 financial results demonstrate Centerspace (CSR, Financial)'s strong operational performance and financial resilience. The company's strategic initiatives, including the sale of non-core assets and the acquisition of Lake Vista Apartment Homes, have contributed to its improved financial performance. With the revised 2023 financial outlook, Centerspace (CSR) continues to demonstrate its commitment to delivering value to its shareholders.
Explore the complete 8-K earnings release (here) from Centerspace for further details.
