Q3 2024 Centerspace Earnings Call Transcript
Key Points
- Centerspace (CSR) reported earnings of $1.18 per share of core FFO for the third quarter, driven by stable revenue growth and expense control initiatives.
- Same store revenue increased by 3% over the same period in 2023, with occupancy rising to 95.3%, a 70 basis point improvement over last year.
- The company expanded its presence in the Denver market with the acquisition of the Lydian, which is expected to generate an NOI yield in the mid to high 5% range.
- Centerspace (CSR) raised the midpoint of its full-year core FFO guidance by a penny to $4.86 per share, reflecting positive NOI growth.
- The company successfully issued approximately 1.5 million shares, raising $105 million to redeem its series C preferred shares, simplifying its capital structure and improving cash flow.
- Market rent softened more than expected, impacting revenue growth projections for the remainder of the year.
- Same store expenses increased by 3.2% year-over-year, driven by higher non-controllable expenses such as insurance premiums.
- The company anticipates increased interest expenses due to debt assumed in conjunction with the Lydian acquisition.
- Revenue growth guidance implies a substantial drop from Q3 to Q4, attributed to market rent softening and seasonal trends.
- Bad debt levels are trending towards the high end of expectations, with no significant improvement anticipated in the near term.
Good morning, Centerspace's form 10-Q for the quarter ended September 30th 2024 was filed with the FCC yesterday after the market closed. Additionally, our earnings release and supplemental disclosure dotcom and filed on form 8-K.
It's important to note that today's remarks will include statements about our business outlook and other forward-looking statements that are based on mailing under the section titled Risk factors and in our other filings with the SEC, we cannot guarantee that any forward-looking statements will materialize and you cautioned not to place undue reliance on these forward-looking statements.
Please refer to our earnings release for reconciliations of any non-GAAP information which may be discussed on today's call.
I'll now turn it over to Centerspace's President and CEO Anne Olson for the company's prepared remarks.
Good morning everyone. And thank you for joining Centerspace's third quarter. Earnings call with me this morning are
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