Centerspace reported third quarter 2026 results that fell short of analyst estimates for both revenue and Core FFO, largely reflecting the impact of significant asset dispositions. The company is currently finalizing its pending all-stock merger with Independence Realty Trust (IRT), with a special shareholder meeting scheduled for November 10, 2026. Due to the pending combination, Centerspace has withdrawn its prior 2026 financial guidance.
Key Highlights
- Same-store Net Operating Income (NOI) declined 2.7% year-over-year, driven by flat revenues and a 4.2% increase in property operating expenses.
- The company completed the disposition of 13 apartment communities in the third quarter for $288.8 million, bringing total year-to-date disposition proceeds to $318.8 million.
- Core FFO per diluted share decreased 6.7% to $1.11 from $1.19 in the prior year, primarily due to the reduced asset base following strategic sales.
- Balance sheet deleveraging progressed with the full repayment of outstanding line of credit balances, bringing net debt to Adjusted EBITDA to 6.3x.