Centerspace Revenue Falls 16.6% as Nine-Month Dispositions Weigh

Centerspace's third-quarter revenue fell 16.6% to $59.5 million as property dispositions during the first nine months weighed on results, while gains on sales lifted net income per share.

The company released results Nov. 2 for the quarter ended Sept. 30. Revenue was down $11.9 million from $71.4 million in the year-earlier quarter. Centerspace attributed the decline primarily to sales of 14 communities during the first nine months of 2026, compared with 12 during the same period a year earlier. Higher revenue from non-same-store communities partly offset the decline.

Core funds from operations (Core FFO), a non-GAAP measure, fell 6.7% to $1.11 per diluted share from $1.19 a year earlier. The company's separate funds from operations (FFO) measure was $0.83 per diluted share, compared with $1.19.

Same-store revenue was flat year over year. Property operating expenses increased 4.2%, and same-store net operating income fell 2.7%. A one-time $200,000 utility expense contributed to the increase in expenses.

Net income was $7.28 per diluted share, up from $3.19 a year earlier. Centerspace attributed the increase primarily to a $150.3 million gain on sales of real estate and other investments, compared with $79.5 million in the year-earlier quarter.

The company sold 13 apartment communities containing 1,634 homes for an aggregate $288.8 million during the quarter. As of Sept. 30, Centerspace owned 47 communities with 10,456 homes across Colorado, Minnesota, Montana, Nebraska, North Dakota and Utah.

With a merger agreement pending with Independence Realty Trust, Inc., Centerspace said it would stop providing 2026 guidance and would not reaffirm its previous outlook.