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Centerspace Reports Strong Second Quarter 2021 Financial Results; Improved Financial Outlook

Centerspace Reports Strong Second Quarter 2021 Financial Results; Improved Financial Outlook

Centerspace Reports Strong Second Quarter 2021 Financial Results; Improved Financial Outlook

PR Newswire

MINNEAPOLIS, Aug. 2, 2021

MINNEAPOLIS, Aug. 2, 2021 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the three and six months ended June 30, 2021. The tables below show Net Income, Funds from Operations ("FFO")1, and Core FFO1, all on a per share basis, for the three and six months ended June 30, 2021; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted-Average Occupancy for each of the three months ended June 30, 2021, March 31, 2021, and June 30, 2020.



Three Months Ended June 30,


Six Months Ended June 30,

Per Share


2021


2020


2021


2020

Net Income - diluted


$

1.48



$

(0.44)



$

1.02



$

(1.13)


FFO - diluted


$

0.95



$

0.93



$

1.87



$

1.58


Core FFO - diluted


$

0.98



$

0.91



$

1.93



$

1.81


 



Year-Over-Year

Comparison


Sequential

Comparison


YTD Comparison

Same-Store Results


Q2 2021 vs. Q2 2020


Q2 2021 vs. Q1 2021


2021 vs. 2020

Revenues


3.2

%


1.3

%


1.9

%

Expenses


6.2

%


0.9

%


2.1

%

NOI


1.2

%


1.6

%


1.7

%

 



Three months ended

Same-Store Results


June 30, 2021


March 31, 2021


June 30, 2020

Weighted Average Occupancy


94.9

%


94.9

%


94.5

%











(1)

NOI, FFO, Core FFO, and same-store results are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" below.

Highlights

  • Net Income was $1.48 per diluted share for the second quarter of 2021, compared to Net Loss of $(0.44) per diluted share for the same period of 2020;
  • Core FFO increased 7.7% to $0.98 per diluted share for the three months ended June 30, 2021, compared to $0.91 for the three months ended June 30, 2020 and 6.6% to $1.93 per diluted share for the six months ended June 30, 2021, compared to $1.81 for the six months ended June 30, 2020;
  • Same-store revenues increased by 3.2% for the second quarter of 2021 compared to the second quarter of 2020;
  • Same-store new lease over lease rates were 10.0% for the second quarter of 2021, compared to a decline of (1.2)% in the same period of the prior year. Same-store renewal lease over lease rates were 5.6% for the second quarter of 2021, compared to 3.2% for the same period the prior year;
  • Increased the mid-point of the earnings per share outlook by 123% and the mid-point of Core FFO by 7%;
  • Entered into Contribution Agreements with entities managed by KMS Management, Inc. ("KMS"), to acquire a portfolio of 17 communities funded through the issuance of up to $197.3 million Convertible Preferred Operating Partnerships Units and approximately $126.5 million in mortgage liabilities; and
  • Continued to strengthen the balance sheet by issuing 731,000 common shares under the 2019 ATM program for net proceeds of $54.6 million.

Acquisitions and Dispositions

During the quarter, Centerspace entered into Contribution Agreements with entities managed by KMS.  Upon closing, Centerspace will acquire a portfolio of 17 communities. Centerspace will fully fund the transaction through the issuance of up to  $197.3 million, which will be paid in the form of Convertible Preferred Operating Partnership units that pay a 3.875% dividend and are convertible, at the holder's option, into common units at an exchange rate of 1.2048 common units per Convertible Preferred Operating Units representing a conversion price of $83.00 per unit. The KMS partners will have the ability to receive up to an aggregate of $16.2 million  in cash in lieu of Convertible Preferred Operating Partnership Units. The Company will acquire real property assets subject to approximately $126.5 million in liabilities, a portion of which the company intends to refinance upon consummation of the transactions. The transaction is expected to close during the third quarter.

During the quarter, Centerspace disposed of 589 apartment homes in Rochester, Minnesota for an aggregate sale price of $60.0 million.

Balance Sheet

At the end of the second quarter, Centerspace had $168.2 million of total liquidity on its balance sheet, consisting of $163.0 million available under the line of credit and cash and cash equivalents of $5.2 million.

Improved 2021 Financial Outlook

Centerspace revised its 2021 financial outlook, which includes the anticipated acquisition of KMS during the third quarter. For additional information, see S-16 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2021 included at the end of this release. These ranges should be considered in their entirety. The revised outlook is:


Previous Outlook for 2021

Updated Outlook for 2021


Low

High

Low

High

Earnings per Share – diluted

$

0.10


$

0.50


$

0.58


$

0.76


Same-Store Revenue

0.0

%

3.0

%

2.0

%

3.5

%

Same-Store Expenses

3.0

%

5.0

%

4.0

%

6.0

%

Same-Store NOI

(1.5)

%

1.5

%

0.5

%

2.0

%

FFO per Share – diluted

$

3.38


$

3.62


$

3.64


$

3.83


Core FFO per Share – diluted

$

3.48


$

3.72


$

3.78


$

3.94


COVID-19 Developments

The COVID-19 pandemic, including the associated economic disruptions, has continued to impact business and operations since March 2020. The company continues to prioritize the health and well-being of its residents, team members, and the communities it serves.

A discussion of the ongoing and potential effects of the COVID-19 pandemic on financial condition, results of operations, and cash flows can be found in "Management's Discussion and Analysis of Financial Conditions and Results of Operations" presented in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021. For a more detailed description of the risks and uncertainties affecting business, see the risk factors presented in Item 1A in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021.

Upcoming Events

Centerspace is scheduled to participate in the BMO 2021 Real Estate Conference, which will be held in New York City on September 14, 2021.

Centerspace is scheduled to participate in the Bank of America 2021 Global Real Estate Conference, which will be held virtually on September 21-23, 2021. 

Earnings Call

Live webcast and replay:  https://ir.centerspacehomes.com




Live Conference Call


Conference Call Replay

Tuesday, August 3, 2021, at 10:00 AM ET


Replay available until August 17, 2021

USA Toll Free Number

1-877-509-9785


USA Toll Free Number

1-877-344-7529

International Toll Free Number

1-412-902-4132


International Toll Free Number

1-412-317-0088

Canada Toll Free Number

1-855-669-9657


Canada Toll Free Number

1-855-669-9658




Conference Number

10157697

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended June 30, 2021 included herein ("Supplemental Information"), is available in the Investors section on Centerspace's website at www.centerspacehomes.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.  

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2021, Centerspace owned 62 apartment communities consisting of 11,579 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

Forward-Looking Statements

Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on the company's current expectations and assumptions, and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Such risks, uncertainties, and other factors that might cause such differences include, but are not limited to those risks and uncertainties detailed from time to time in Centerspace's filings with the Securities and Exchange Commission, including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in its Annual Report on Form 10-K for the year ended December 31, 2020, in its subsequent quarterly reports on Form 10-Q, and in other public reports. The company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

Contact Information

Investor Relations
Emily Miller
Phone: 701-837-7104
IR@centerspacehomes.com

Marketing & Media
Kelly Weber
Phone: 701-837-7104
kweber@centerspacehomes.com

 

 

Common Share Data (NYSE: CSR)




2nd Quarter


1st Quarter


4th Quarter


3rd Quarter


2nd Quarter



2021


2021


2020


2020


2020

High closing price


$

79.71



$

73.42



$

74.55



$

73.53



$

76.82


Low closing price


$

67.28



$

68.00



$

65.79



$

61.87



$

44.36


Average closing price


$

71.99



$

71.37



$

70.30



$

70.15



$

63.91


Closing price at end of quarter


$

78.90



$

68.00



$

70.64



$

65.17



$

70.49


Common share distributions – annualized


$

2.80



$

2.80



$

2.80



$

2.80



$

2.80


Closing dividend yield – annualized


3.6

%


4.1

%


4.0

%


4.3

%


4.0

%

Closing common shares outstanding (thousands)


14,045



13,220



13,027



12,976



12,827


Closing limited partnership units outstanding (thousands)


881



950



977



1,018



1,022


Closing market value of outstanding common shares,
plus imputed closing market value of outstanding limited
partnership units (thousands)


$

1,177,661



$

963,560



$

989,243



$

911,989



$

976,216


 

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)




Three Months Ended



6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020

REVENUE


$

46,656



$

46,648



$

45,540



$

44,138



$

43,910


EXPENSES











Property operating expenses, excluding real estate taxes


13,018



13,449



12,668



13,129



12,360


Real estate taxes


5,742



5,792



5,256



5,402



5,410


Property management expense


2,085



1,767



1,460



1,442



1,345


Casualty (gain) loss


(27)



101



331



91



913


Depreciation/amortization


19,308



19,992



20,282



18,995



18,156


General and administrative expenses


3,797



3,906



3,733



3,077



3,202


TOTAL EXPENSES


$

43,923



$

45,007



$

43,730



$

42,136



$

41,386


Operating income


2,733



1,641



1,810



2,002



2,524


Interest expense


(7,089)



(7,231)



(6,903)



(6,771)



(6,940)


Interest and other income (loss)


619



431



404



277



521


Income (loss) before gain (loss) on sale of real estate and other
investments, and gain (loss) on litigation settlement


(3,737)



(5,159)



(4,689)



(4,492)



(3,895)


Gain (loss) on sale of real estate and other investments


26,840





17



25,676



(190)


Net income (loss)


$

23,103



$

(5,159)



$

(4,672)



$

21,184



$

(4,085)


Dividends to preferred unitholders


(160)



(160)



(160)



(160)



(160)


Net (income) loss attributable to noncontrolling interest – Operating
Partnership


(1,386)



469



460



(1,387)



447


Net (income) loss attributable to noncontrolling interests – consolidated
real estate entities


(19)



(17)



(6)



(8)



(5)


Net income (loss) attributable to controlling interests


21,538



(4,867)



(4,378)



19,629



(3,803)


Dividends to preferred shareholders


(1,607)



(1,607)



(1,607)



(1,607)



(1,609)


Discount (premium) on redemption of preferred shares








(1)



25


NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS


$

19,931



$

(6,474)



$

(5,985)



$

18,021



$

(5,387)













Per Share Data - Basic











Net earnings (loss) per common share – basic


$

1.49



$

(0.49)



$

(0.46)



$

1.40



$

(0.44)













Per Share Data - Diluted











Net earnings (loss) per common share – diluted


$

1.48



$

(0.49)



$

(0.46)



$

1.38



$

(0.44)


 

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)




6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020

ASSETS











Real estate investments











Property owned


$

1,838,837



$

1,883,407



$

1,812,557



$

1,805,390



$

1,694,033


Less accumulated depreciation


(407,400)



(408,014)



(399,249)



(380,392)



(383,917)




1,431,437



1,475,393



1,413,308



1,424,998



1,310,116


Mortgage loans receivable


37,457



30,107



24,661



17,986



10,961


Total real estate investments


1,468,894



1,505,500



1,437,969



1,442,984



1,321,077


Cash and cash equivalents


5,194



10,816



392



16,804



52,714


Restricted cash


8,444



1,610



6,918



2,199



2,535


Other assets


17,218



18,427



18,904



16,947



16,484


TOTAL ASSETS


$

1,499,750



$

1,536,353



$

1,464,183



$

1,478,934



$

1,392,810













LIABILITIES, MEZZANINE EQUITY, AND EQUITY











LIABILITIES











Accounts payable and accrued expenses


$

52,413



$

53,852



$

55,609



$

58,596



$

54,883


Revolving line of credit


87,000



181,544



152,871



135,000



63,000


Notes payable, net of loan costs


319,286



319,236



269,246



269,202



269,155


Mortgages payable, net of loan costs


287,143



293,709



297,074



313,065



323,705


TOTAL LIABILITIES


$

745,842



$

848,341



$

774,800



$

775,863



$

710,743













SERIES D PREFERRED UNITS


$

18,022



$

16,560



$

16,560



$

16,560



$

16,560


EQUITY











Series C Preferred Shares of Beneficial Interest


93,530



93,530



93,530



93,530



93,579


Common Shares of Beneficial Interest


1,033,940



980,453



968,263



968,436



958,292


Accumulated distributions in excess of net income


(433,310)



(443,409)



(427,681)



(412,577)



(421,515)


Accumulated other comprehensive income (loss)


(12,064)



(12,798)



(15,905)



(17,256)



(18,139)


Total shareholders' equity


$

682,096



$

617,776



$

618,207



$

632,133



$

612,217


Noncontrolling interests – Operating Partnership


53,133



53,007



53,930



53,669



52,558


Noncontrolling interests – consolidated real estate entities


657



669



686



709



732


Total equity


$

735,886



$

671,452



$

672,823



$

686,511



$

665,507


TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY


$

1,499,750



$

1,536,353



$

1,464,183



$

1,478,934



$

1,392,810


 

CENTERSPACE
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)

This release contains certain non-GAAP financial measures. The non-GAAP financial measures should not be considered a substitute for operating results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The definitions and calculations of these non-GAAP financial measures, as calculated by us, may not be comparable to non-GAAP financial measures reported by other REITs that do not define each of the non-GAAP financial measures exactly as Centerspace does.

The company provides certain information on a same-store and non-same-store basis. Same-store apartment communities are owned or in service for substantially all of the periods being compared, and, in the case of newly-constructed properties, have achieved a target level of physical occupancy of 90%. On the first day of each calendar year, Centerspace determines the composition of its same-store pool for that year as well as adjusts the previous year, which allows us to evaluate full period-over-period operating comparisons for existing apartment communities and their contribution to net income. The company believes that measuring performance on a same-store basis is useful to investors because it enables evaluation of how a fixed pool of its communities are performing year-over-year. Centerspace uses this measure to assess whether or not the company has been successful in increasing NOI, renewing the leases on existing residents, controlling operating costs, and making prudent capital improvements.

Reconciliation of Operating Income to Net Operating Income

Net operating income, or NOI, is a non-GAAP financial measure which the company defines as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by depreciation, amortization, financing, property management overhead, casualty losses, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income, net income available for common shareholders, or cash flow from operating activities as a measure of financial performance.


(in thousands, except percentages)


Three Months Ended



Sequential


Year-Over-Year


6/30/2021


3/31/2021


6/30/2020



$ Change


% Change


$ Change


% Change

Operating income

$

2,733



$

1,641



$

2,524




$

1,092



66.5

%


$

209



8.3

%

Adjustments:















Property management expenses

2,085



1,767



1,345




318



18.0

%


740



55.0

%

Casualty (gain) loss

(27)



101



913




(128)



(126.7)

%


(940)



(103.0)

%

Depreciation and amortization

19,308



19,992



18,156




(684)



(3.4)

%


1,152



6.3

%

General and administrative expenses

3,797



3,906



3,202




(109)



(2.8)

%


595



18.6

%

Net operating income

$

27,896



$

27,407



$

26,140




$

489



1.8

%


$

1,756



6.7

%
















Revenue















Same-store

$

40,521



$

40,000



$

39,282




$

521



1.3

%


$

1,239



3.2

%

Non-same-store

4,436



4,241



931




195



4.6

%


3,505



376.5

%

Other properties

646



650



402




(4)



(0.6)

%


244



60.7

%

Dispositions

1,053



1,757



3,295




(704)



(40.1)

%


(2,242)



(68.0)

%

Total

46,656



46,648



43,910




8





2,746



6.3

%

Property operating expenses, including real estate taxes















Same-store

16,528



16,378



15,567




150



0.9

%


961



6.2

%

Non-same-store

1,439



1,496



385




(57)



(3.8)

%


1,054



273.8

%

Other properties

268



289



252




(21)



(7.3)

%


16



6.3

%

Dispositions

525



1,078



1,566




(553)



(51.3)

%


(1,041)



(66.5)

%

Total

18,760



19,241



17,770




(481)



(2.5)

%


990



5.6

%

Net operating income















Same-store

23,993



23,622



23,715




371



1.6

%


278



1.2

%

Non-same-store

2,997



2,745



546




252



9.2

%


2,451



448.9

%

Other properties

378



361



150




17



4.7

%


228



152.0

%

Dispositions

528



679



1,729




(151)



(100.0)

%


(1,201)



(69.5)

%

Total

$

27,896



$

27,407



$

26,140




$

489



1.8

%


$

1,756



6.7

%

 


(in thousands, except percentages)


Six Months Ended June 30,


2021


2020


$ Change


% Change

Operating income

$

4,374



$

4,528



$

(154)



(3.4)

%

Adjustments:








Property management expenses

3,852



2,899



953



32.9

%

Casualty (gain) loss

74



1,240



(1,166)



(94.0)

%

Depreciation and amortization

39,300



36,316



2,984



8.2

%

General and administrative expenses

7,703



6,630



1,073



16.2

%

Net operating income

$

55,303



$

51,613



$

3,690



7.1

%









Revenue








Same-store

$

80,521



$

79,056



$

1,465



1.9

%

Non-same-store

8,677



1,202



7,475



621.9

%

Other properties

1,296



1,375



(79)



(5.7)

%

Dispositions

2,810



6,683



(3,873)



(58.0)

%

Total

93,304



88,316



4,988



5.6

%









Property operating expenses, including real estate taxes








Same-store

32,906



32,222



684



2.1

%

Non-same-store

2,935



504



2,431



482.3

%

Other properties

557



530



27



5.1

%

Dispositions

1,603



3,447



(1,844)



(53.5)

%

Total

38,001



36,703



1,298



3.5

%









Net operating income








Same-store

47,615



46,834



781



1.7

%

Non-same-store

5,742



698



5,044



722.6

%

Other properties

739



845



(106)



(12.5)

%

Dispositions

1,207



3,236



(2,029)



(62.7)

%

Total

$

55,303



$

51,613



$

3,690



7.1

%

 

Reconciliation of Same-Store Controllable Expenses to Total Property Operating Expenses, Including Real Estate Taxes

Same-store controllable expenses exclude real estate taxes and insurance, in order to provide a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP financial measure and should not be considered an alternative to total expenses or total property operating expenses.



(in thousands, except percentages)


Three Months Ended June 30,



Six Months Ended June 30,


2021


2020


$ Change


% Change



2021


2020


$ Change


% Change


















Controllable expenses

















On-site compensation(1)

$

4,427



$

4,089



$

338



8.3

%



$

8,694



$

8,545



$

149



1.7

%

Repairs and maintenance

2,405



2,435



(30)



(1.2)

%



4,497



4,665



(168)



(3.6)

%

Utilities

2,367



2,174



193



8.9

%



5,298



5,080



218



4.3

%

Administrative and marketing

885



876



9



1.0

%



1,746



1,742



4



0.2

%

Total

$

10,084



$

9,574



$

510



5.3

%



$

20,235



$

20,032



$

203



1.0

%


















Non-controllable expenses

















Real estate taxes

$

4,929



$

4,784



$

145



3.0

%



$

9,853



$

9,719



$

134



1.4

%

Insurance

1,515



1,209



306



25.3

%



2,818



2,471



347



14.0

%

Total

$

6,444



$

5,993



$

451



7.5

%



$

12,671



$

12,190



$

481



3.9

%


















Property operating expenses, including
real estate taxes - non-same-store

$

1,439



$

385



$

1,054



273.8

%



$

2,935



$

504



$

2,431



482.3

%

Property operating expenses, including
real estate taxes - other properties

268



252



16



6.3

%



557



530



27



5.1

%

Property operating expenses, including
real estate taxes - dispositions

525



1,566



(1,041)



(66.5)

%



1,603



3,447



(1,844)



(53.5)

%

Total property operating expenses,
including real estate taxes

$

18,760



$

17,770



$

990



5.6

%



$

38,001



$

36,703



$

1,298



3.5

%

_______________________________________________

(1)

On-site compensation for administration, leasing, and maintenance personnel.

Reconciliation of Net Income (Loss) Available to Common Shareholders to Funds From Operations and Core Funds From Operations

Centerspace believes that FFO, which is a  non-GAAP financial measure used as a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding its operating performance, primarily because its calculation does not assume that the value of real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation.

Centerspace uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit defines FFO as net income or loss calculated in accordance with GAAP, excluding:

  • depreciation and amortization related to real estate;
  • gains and losses from the sale of certain real estate assets; and
  • impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

The exclusion in Nareit's definition of FFO of impairment write-downs and gains and losses from the sale of real estate assets helps to identify the operating results of the long-term assets that form the base of the company's investments, and assists management and investors in comparing those operating results between periods.

Due to the limitations of the Nareit FFO definition, Centerspace has made certain interpretations in applying this definition. The company believes that all such interpretations not specifically identified in the Nareit definition are consistent with this definition. Nareit's FFO White Paper 2018 Restatement clarified that impairment write-downs of land related to a REIT''s main business are excluded from FFO and a REIT has the option to exclude impairment write-downs of assets that are incidental to its main business.

While FFO is widely used by Centerspace as a primary performance metric, not all real estate companies use the same definition of FFO or calculate FFO in the same way. Accordingly, FFO presented here is not necessarily comparable to FFO presented by other real estate companies. FFO should not be considered as an alternative to net income or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund all cash flow needs, including the ability to service indebtedness or make distributions to shareholders.

Core Funds from Operations ("Core FFO") is FFO as adjusted for non-routine items or items not considered core to business operations. By further adjusting for items that are not considered part of core business operations, the company believes that Core FFO provides investors with additional information to compare core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income, or any other GAAP measurement of performance, but rather should be considered an additional supplemental measure. Core FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund the company's cash needs, including its ability to service indebtedness or make distributions to shareholders. Core FFO is a non-GAAP and non-standardized financial measure that may be calculated differently by other REITs and should not be considered a substitute for operating results determined in accordance with GAAP.



(in thousands, except per share amounts)



Three Months Ended



Six Months Ended



6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020



6/30/2021


6/30/2020

Funds From Operations
















Net income (loss) available to common shareholders


$

19,931



$

(6,474)



$

(5,985)



$

18,021



$

(5,387)




$

13,457



$

(13,826)


Adjustments:
















Noncontrolling interests – Operating Partnership


1,386



(469)



(460)



1,387



(447)




917



(1,139)


Depreciation and amortization


19,308



19,992



20,282



18,995



18,156




39,300



36,316


Less depreciation – non real estate


(87)



(98)



(87)



(85)



(88)




(185)



(181)


Less depreciation – partially owned entities


(24)



(24)



(33)



(31)



(33)




(48)



(315)


(Gain) loss on sale of real estate


(26,840)





(17)



(25,676)



190




(26,840)



190


FFO applicable to common shares and Units


$

13,674



$

12,927



$

13,700



$

12,611



$

12,391




$

26,601



$

21,045


















Adjustments to Core FFO:
















Casualty (gain) loss






204



545









Loss on extinguishment of debt


3





2



4



17




3



17


Rebranding costs






402











Technology implementation costs


447



413










860




(Gain) loss on marketable securities










(175)






3,378


(Discount) premium on redemption of preferred
shares








1



(25)






(298)


Core FFO applicable to common shares and Units


$

14,124



$

13,340



$

14,308



$

13,161



$

12,208




$

27,464



$

24,142


















Funds from operations applicable to common shares and
Units


$

13,674



$

12,927



$

13,700



$

12,611



$

12,391




$

26,601



$

21,045


Dividends to preferred unitholders


160



160



160



160



160




320



320


Funds from operations applicable to common shares and
Units - diluted


$

13,834



$

13,087



$

13,860



$

12,771



$

12,551




$

26,921



$

21,365


















Core funds from operations applicable to common
shares and Units


$

14,124



$

13,340



$

14,308



$

13,161



$

12,208




$

27,464



$

24,142


Dividends to preferred unitholders


160



160



160



160



160




320



320


Core funds from operations applicable to common
shares and Units - diluted


$

14,284



$

13,500



$

14,468



$

13,321



$

12,368




$

27,784



$

24,462


















Per Share Data
















Earnings (loss) per share and Unit - diluted


$

1.48



$

(0.49)



$

(0.46)



$

1.38



$

(0.44)




$

1.02



$

(1.13)


FFO per share and Unit - diluted


$

0.95



$

0.92



$

0.97



$

0.90



$

0.93




$

1.87



$

1.58


Core FFO per share and Unit - diluted


$

0.98



$

0.95



$

1.02



$

0.94



$

0.91




$

1.93



$

1.81


















Weighted average shares and Units - diluted


14,514



14,282



14,222



14,143



13,558




14,402



13,482


 

Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted EBITDA

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt, gain/loss from involuntary conversion; and other non-routine items or items not considered core to business operations. The company considers Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, the cost of debt, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. 



(in thousands)



Three Months Ended



Six Months Ended



6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020



6/30/2021


6/30/2020

Adjusted EBITDA
















Net income (loss) available to common shareholders


$

21,538



$

(4,867)



$

(4,378)



$

19,629



$

(3,803)




$

16,671



$

(10,810)


Adjustments:
















Dividends to preferred unitholders


160



160



160



160



160




320



320


Noncontrolling interests – Operating Partnership


1,386



(469)



(460)



1,387



(447)




917



(1,139)


Income (loss) before noncontrolling interests –
Operating Partnership


$

23,084



$

(5,176)



$

(4,678)



$

21,176



$

(4,090)




$

17,908



$

(11,629)


Adjustments:
















Interest expense


7,075



7,216



6,888



6,756



6,926




14,291



13,690


Loss on extinguishment of debt


3





2



4



17




3



17


Depreciation/amortization related to real estate
investments


19,284



19,969



20,250



18,964



18,123




39,253



36,001


Casualty (gain) loss






204



545









Interest income


(583)



(407)



(328)



(256)



(331)




(990)



(928)


(Gain) loss on sale of real estate and other
investments


(26,840)





(17)



(25,676)



190




(26,840)



190


Technology implementation costs


447



413










860




(Gain) loss on marketable securities










(175)






3,378


Adjusted EBITDA


$

22,470



$

22,015



$

22,321



$

21,513



$

20,660




$

44,485



$

40,719


 

CENTERSPACE

DEBT ANALYSIS

(in thousands)


Debt Maturity Schedule

Annual Expirations




Future Maturities of Debt



Secured Fixed

Debt


Unsecured Fixed

Debt(1)


Unsecured
Variable Debt


Total

Debt


% of

Total Debt


Weighted

Average Interest Rate(2)

2021 (remainder)


$

12,814



$



$



$

12,814



1.8

%


5.73

%

2022


33,028



50,000



37,000



120,028



17.3

%


3.14

%

2023


43,163







43,163



6.2

%


4.02

%

2024




70,000





70,000



10.1

%


3.66

%

2025


32,518



75,000





107,518



15.5

%


4.34

%

Thereafter


166,840



175,000





341,840



49.1

%


3.58

%

Total debt


$

288,363



$

370,000



$

37,000



$

695,363



100.0

%


3.70

%

_______________________________________

(1)

Term loans have variable interest rates that are fixed with interest rate swaps and $50.0 million of the variable interest, line of credit is fixed with an interest rate swap.

(2)

Weighted average interest rate of debt that matures during the year, including the effect of interest rate swaps on the term loans and line of credit. 

 




6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020

Debt Balances Outstanding











Secured fixed rate


$

288,363



$

295,001



$

298,445



$

314,511



$

325,230


Unsecured fixed rate line of credit(1)


50,000



50,000



50,000



50,000



50,000


Unsecured variable rate line of credit


37,000



131,544



102,871



85,000



13,000


Unsecured term loans


145,000



145,000



145,000



145,000



145,000


Unsecured senior notes


175,000



175,000



125,000



125,000



125,000


Debt total


$

695,363



$

796,545



$

721,316



$

719,511



$

658,230













Mortgage debt weighted average interest rate


3.90

%


3.92

%


3.93

%


3.99

%


4.01

%

Lines of credit rate (rate with swap)


2.24

%


2.18

%


2.35

%


3.35

%


2.97

%

Term loan rate (rate with swap)


4.19

%


4.11

%


4.18

%


4.18

%


4.12

%

Senior notes rate


3.47

%


3.47

%


3.78

%


3.78

%


3.78

%

Total debt


3.70

%


3.37

%


3.62

%


3.68

%


3.87

%

______________________________________

(1)

A portion of the primary line of credit is fixed through an interest rate swap.

 

CENTERSPACE 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)




Three Months Ended



6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020

Equity Capitalization











Common shares outstanding


14,045



13,220



13,027



12,976



12,827


Operating partnership units outstanding


881



950



977



1,018



1,022


Total common shares and units outstanding


14,926



14,170



14,004



13,994



13,849


Market price per common share (closing price at end of period)


$

78.90



$

68.00



$

70.64



$

65.17



$

70.49


Equity capitalization-common shares and units


$

1,177,661



$

963,560



$

989,243



$

911,989



$

976,216


Recorded book value of preferred shares


$

93,530



$

93,530



$

93,530



$

93,530



$

93,579


Total equity capitalization


$

1,271,191



$

1,057,090



$

1,082,773



$

1,005,519



$

1,069,795













Series D Preferred Units


$

18,022



$

16,560



$

16,560



$

16,560



$

16,560













Debt Capitalization











Total debt


$

695,363



$

796,545



$

721,317



$

719,511



$

658,230


Total capitalization


$

1,984,576



$

1,870,195



$

1,820,650



$

1,741,590



$

1,744,585













Total debt to total capitalization(1)


35

%


43.1

%


39.6

%


41.3

%


37.7

%

________________________________________

(1)

Total debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet, market value of common shares and operating partnership units, and book value of Series C preferred shares and Series D preferred units outstanding at the end of the period.

 




Three Months Ended



Six Months Ended



6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020



6/30/2021


6/30/2020

Debt service coverage ratio(1)


2.62

 x


2.53

 x


2.73

 x


2.65

 x


2.48

 x



2.58

 x


2.45

 x

Adjusted EBITDA/Interest expense plus preferred
distributions and principal amortization


2.21

 x


2.14

 x


2.28

 x


2.21

 x


2.05

 x



2.17

 x


2.01

 x

Net debt/Adjusted EBITDA(2)


7.68

 x


8.92

 x


8.07

 x


7.97

 x


7.33

 x



7.76

 x


7.44

 x

Net debt and preferred equity/Adjusted EBITDA(2)


8.92

 x


10.17

 x


9.31

 x


9.25

 x


8.66

 x



9.01

 x


8.79

 x

















Distribution Data
















Common shares and Units outstanding at record date


14,926



14,171



14,004



13,994



13,849




14,926



13,849


Total common distribution declared


$

10,448



$

9,919



$

9,803



$

9,796



$

9,694




$

20,367



$

18,939


Common distribution per share and Unit


$

0.70



$

0.70



$

0.70



$

0.70



$

0.70




$

1.40



$

1.40


Payout ratio (Core FFO per diluted share and unit
basis)(3)


71.4

%


73.7

%


68.6

%


74.5

%


76.9

%



72.5

%


77.3

%

______________________________________

(1)

Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section.

(2)

Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). Adjusted EBITDA is annualized for periods less than one year. Net debt and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section.

(3)

Payout ratio (Core FFO per diluted share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per diluted share and unit. This term is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP.

 

CENTERSPACE

SAME-STORE SECOND QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)




Apartment
Homes
Included


Revenues


Expenses


NOI

Regions



Q2 2021


Q2 2020


% Change


Q2 2021


Q2 2020


% Change


Q2 2021


Q2 2020


% Change

Denver, CO


992



$

5,486



$

5,287



3.8

%


$

1,837



$

1,612



14.0

%


$

3,649



$

3,675



(0.7)

%

Minneapolis, MN


2,355



10,538



10,708



(1.6)

%


4,649



4,097



13.5

%


5,889



6,611



(10.9)

%

North Dakota


2,422



8,078



7,768



4.0

%


3,199



3,158



1.3

%


4,879



4,610



5.8

%

Omaha, NE


1,370



4,037



3,838



5.2

%


1,885



1,783



5.7

%


2,152



2,055



4.7

%

Rochester, MN


1,122



4,709



4,594



2.5

%


1,937



1,921



0.8

%


2,772



2,673



3.7

%

St. Cloud, MN


1,192



3,634



3,546



2.5

%


1,582



1,524



3.8

%


2,052



2,022



1.5

%

Other Mountain West


1,223



4,039



3,541



14.1

%


1,439



1,472



(2.2)

%


2,600



2,069



25.7

%

Same-Store Total


10,676



$

40,521



$

39,282



3.2

%


$

16,528



$

15,567



6.2

%


$

23,993



$

23,715



1.2

%

 



% of NOI
Contribution


Weighted Average Occupancy (1)


Average Monthly

Rental Rate (2)


Average Monthly

Revenue per Occupied Home (3)

Regions



Q2 2021


Q2 2020


Growth


Q2 2021


Q2 2020


% Change


Q2 2021


Q2 2020


% Change

Denver, CO


15.2

%


94.2

%


93.1

%


1.1

%


$

1,727



$

1,774



(2.6)

%


$

1,957



$

1,908



2.7

%

Minneapolis, MN


24.5

%


94.2

%


93.9

%


0.3

%


1,510



1,496



0.9

%


1,584



1,615



(1.9)

%

North Dakota


20.3

%


95.9

%


95.9

%




1,078



1,044



3.3

%


1,159



1,114



4.0

%

Omaha, NE


9.0

%


95.5

%


94.9

%


0.6

%


927



904



2.5

%


1,029



984



4.6

%

Rochester, MN


11.6

%


94.5

%


95.4

%


(0.9)

%


1,403



1,386



1.2

%


1,480



1,431



3.4

%

St. Cloud, MN


8.6

%


92.7

%


93.7

%


(1.0)

%


1,005



953



5.5

%


1,097



1,059



3.5

%

Other Mountain West


10.8

%


98.1

%


94.4

%


3.7

%


1,014



952



6.5

%


1,122



1,023



9.7

%

Same-Store Total


100.0

%


94.9

%


94.5

%


0.4

%


$

1,233



$

1,209



2.0

%


$

1,333



$

1,298



2.8

%

_______________________________________

(1)

Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account.  Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.

(2)

Average monthly rental rate is scheduled rent divided by the total number of apartment homes.

(3)

Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.

 

CENTERSPACE

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)




Apartment
Homes
Included


Revenues


Expenses


NOI

Regions



Q2 2021


Q1 2021


% Change


Q2 2021


Q1 2021


% Change


Q2 2021


Q1 2021


% Change

Denver, CO


992



$

5,486



$

5,407



1.4

%


$

1,837



$

1,868



(1.7)

%


$

3,649



$

3,539



3.1

%

Minneapolis, MN


2,355



10,538



10,466



0.7

%


4,649



4,431



4.9

%


5,889



6,035



(2.4)

%

North Dakota


2,422



8,078



7,949



1.6

%


3,199



3,271



(2.2)

%


4,879



4,678



4.3

%

Omaha, NE


1,370



4,037



4,026



0.3

%


1,885



1,762



7.0

%


2,152



2,264



(4.9)

%

Rochester, MN


1,122



4,709



4,643



1.4

%


1,937



1,986



(2.5)

%


2,772



2,657



4.3

%

St. Cloud, MN


1,192



3,634



3,656



(0.6)

%


1,582



1,635



(3.2)

%


2,052



2,021



1.5

%

Other Mountain West


1,223



4,039



3,853



4.8

%


1,439



1,425



1.0

%


2,600



2,428



7.1

%

Same-Store Total


10,676



$

40,521



$

40,000



1.3

%


$

16,528



$

16,378



0.9

%


$

23,993



$

23,622



1.6

%

 



% of NOI
Contribution


Weighted Average Occupancy


Average Monthly

Rental Rate


Average Monthly

Revenue per Occupied Home

Regions



Q2 2021


Q1 2021


Growth


Q2 2021


Q1 2021


% Change


Q2 2021


Q1 2021


% Change

Denver, CO


15.2

%


94.2

%


94.5

%


(0.3)

%


$

1,727



$

1,715



0.7

%


$

1,957



$

1,922



1.7

%

Minneapolis, MN


24.5

%


94.2

%


92.9

%


1.3

%


1,510



1,494



1.1

%


1,584



1,595



(0.6)

%

North Dakota


20.3

%


95.9

%


96.2

%


(0.3)

%


1,078



1,061



1.6

%


1,159



1,138



1.9

%

Omaha, NE


9.0

%


95.5

%


95.1

%


0.4

%


927



912



1.6

%


1,029



1,030



(0.1)

%

Rochester, MN


11.6

%


94.5

%


95.5

%


(1.0)

%


1,403



1,374



2.1

%


1,480



1,444



2.4

%

St. Cloud, MN


8.6

%


92.7

%


94.6

%


(1.9)

%


1,005



970



3.6

%


1,097



1,081



1.3

%

Other Mountain West


10.8

%


98.1

%


97.7

%


0.4

%


1,014



985



2.9

%


1,122



1,075



4.4

%

Same-Store Total


100.0

%


94.9

%


94.9

%




$

1,233



$

1,212



1.7

%


$

1,333



$

1,316



1.3

%

 

CENTERSPACE

SAME-STORE YEAR-TO-DATE COMPARISONS

(in thousands, except property data amounts and percentages)




Apartment
Homes
Included


Revenues


Expenses


NOI

Regions



2021


2020


% Change


2021


2020


% Change


2021


2020


% Change

Denver, CO


992



$

10,893



$

10,798



0.9

%


$

3,704



$

3,416



8.4

%


$

7,189



$

7,382



(2.6)

%

Minneapolis, MN


2,355



21,004



21,477



(2.2)

%


9,080



8,663



4.8

%


11,924



12,814



(6.9)

%

North Dakota


2,422



16,027



15,479



3.5

%


6,470



6,645



(2.6)

%


9,557



8,834



8.2

%

Omaha, NE


1,370



8,063



7,652



5.4

%


3,647



3,409



7.0

%


4,416



4,243



4.1

%

Rochester, MN


1,122



9,353



9,333



0.2

%


3,923



3,858



1.7

%


5,430



5,475



(0.8)

%

St. Cloud, MN


1,192



7,289



7,157



1.8



3,217



3,281



(2.0)

%


4,072



3,876



5.1

%

Other Mountain West


1,223



7,892



7,160



10.2

%


2,865



2,950



(2.9)

%


5,027



4,210



19.4

%

Same-Store Total


10,676



$

80,521



$

79,056



1.9

%


$

32,906



$

32,222



2.1

%


$

47,615



$

46,834



1.7

%

 



% of NOI
Contribution


Weighted Average Occupancy


Average Monthly

Rental Rate


Average Monthly

Revenue per Occupied Home

Regions



2021


2020


Growth


2021


2020


% Change


2021


2020


% Change

Denver, CO


15.1

%


94.4

%


93.7

%


0.7

%


$

1,721



$

1,783



(3.5)

%


$

1,940



$

1,937



0.2

%

Minneapolis, MN


24.9

%


93.5

%


94.1

%


(0.6)

%


1,502



1,490



0.8

%


1,589



1,616



(1.6)

%

North Dakota


20.1

%


96.0

%


96.0

%




1,069



1,040



2.8

%


1,148



1,109



3.5

%

Omaha, NE


9.3

%


95.3

%


94.6

%


0.7

%


919



898



2.3

%


1,029



984



4.7

%

Rochester, MN


11.4

%


95.0

%


96.3

%


(1.3)

%


1,389



1,382



0.5

%


1,462



1,439



1.5

%

St. Cloud, MN


8.6

%


93.6

%


94.3

%


(0.7)

%


988



948



4.2

%


1,089



1,061



2.5

%

Other Mountain West


10.6

%


97.9

%


95.3

%


2.6

%


999



947



5.5

%


1,099



1,024



7.6

%

Same-Store Total


100.0

%


94.9

%


94.9

%




$

1,223



$

1,205



1.5

%


$

1,325



$

1,301



1.9

%

 


CENTERSPACE

PORTFOLIO SUMMARY(1)




Three Months Ended



6/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020

Number of Apartment Homes at Period End











Same-Store


10,676



11,265



10,567



10,567



11,257


Non-Same-Store


903



903



1,343



1,343



878


All Communities


11,579



12,168



11,910



11,910



12,135













Average Monthly Rental Rate(2)











Same-Store


$

1,233



$

1,200



$

1,177



$

1,178



$

1,142


Non-Same-Store


1,617



1,584



1,599



1,597



1,594


All Communities


$

1,263



$

1,229



$

1,225



$

1,210



$

1,175













Average Monthly Revenue per Occupied Apartment Home(3)











Same-Store


$

1,333



$

1,302



$

1,282



$

1,271



$

1,232


Non-Same-Store


1,739



1,705



1,708



1,729



1,681


All Communities


$

1,365



$

1,332



$

1,330



$

1,307



$

1,264













Weighted Average Occupancy(4)











Same-Store


94.9

%


94.9

%


95.0

%


94.4

%


94.6

%

Non-Same-Store


94.2

%


91.8

%


92.3

%


93.9

%


93.9

%

All Communities


94.8

%


94.6

%


94.6

%


94.3

%


94.5

%












Operating Expenses as a % of Scheduled Rent











Same-Store


41.9

%


42.9

%


41.2

%


43.4

%


41.5

%

Non-Same-Store


32.9

%


34.9

%


35.3

%


39.7

%


36.1

%

All Communities


41.0

%


42.1

%


40.3

%


43.0

%


41.0

%












Capital Expenditures











Total Capital Expenditures per Apartment Home – Same-Store


$

159



$

131



$

326



$

293



$

262


_______________________________________

(1)

Previously reported amounts are not revised for changes in the composition of the same-store properties pool.

(2)

Average monthly rental rate is scheduled rent divided by the total number of apartment homes. Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.

(3)

Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.

(4)

Weighted average occupancy is the percentage resulting from dividing actual rental revenue by scheduled rent. The company believes that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy and the calculation of weighted average occupancy may not be comparable to that disclosed by other REITs.

 

CENTERSPACE

CAPITAL EXPENDITURES

($ in thousands, except per home amounts)




Three Months Ended



Six Months Ended



6/30/2021


6/30/2020



6/30/2021


6/30/2020

Total Same-Store Apartment Homes


10,676



10,676




10,676



10,676






















Building - Exterior


$

416



$

582




$

900



$

761


Building - Interior


50



58




107



193


Mechanical, Electrical, & Plumbing


260



1,087




405



1,346


Furniture & Equipment


33



117




63



218


Landscaping & Grounds


87



356







Turnover


850



864




1,383



1,481


Capital Expenditures - Same-Store


$

1,696



$

3,064




$

3,017



$

4,451


Capital Expenditures per Apartment Home - Same-Store


$

159



$

287




$

283



$

417












Value Add


$

4,543



$

4,121




$

7,175



$

6,155


Total Capital Spend - Same-Store


$

6,239



$

7,185




$

10,192



$

10,606


Total Capital Spend per Apartment Home - Same-Store


$

584



$

673




$

955



$

993












All Properties - Weighted Average Apartment Homes


11,775



11,445




11,971



11,384












Capital Expenditures


$

1,791



$

3,373




$

3,346



$

5,183


Capital Expenditures per Apartment Home


$

152



$

295




$

280



$

455












Value Add


4,557



4,165




7,188



6,196


Acquisition Capital


403



(943)




961



535


Total Capital Spend


6,751



6,595




11,495



11,914


Total Capital Spend per Apartment Home


$

573



$

576




$

960



$

1,047












Value Add Capital Expenditures










Interior - Units










Same-Store


$

3,107



$

1,561




$

4,799



$

2,347


Non-Same-Store


9



17




8



13


Total Interior Units


$

3,116



$

1,578




$

4,807



$

2,360


Expected Year 1 Annual ROI


16.4

%


17.0

%



16.6

%


16.7

%