Mission Statement, Vision, & Core Values (2024) of Centerspace (CSR)

An Overview of Centerspace (CSR)

General Summary of Centerspace (CSR)

Centerspace (NYSE: CSR) is a real estate investment trust (REIT) that specializes in the ownership, management, and development of multifamily apartment communities. The company was founded in 1971 and has since focused on investing in markets characterized by stable and growing economies. As of September 30, 2024, Centerspace owned interests in 70 apartment communities comprising a total of 12,883 apartment homes, with a property portfolio valued at approximately $2.4 billion. The company’s primary revenue stream is derived from leasing apartment homes, which represented about 98.1% of total revenues for the three months ended September 30, 2024.

Company's Financial Performance in the Latest Financial Reports

For the three months ended September 30, 2024, Centerspace reported total revenue of $65.0 million, a slight increase of $457,000 or 0.7% compared to the same period in 2023. Revenue growth was driven by a 3.0% increase in same-store revenues, which contributed an additional $1.8 million. The company’s net loss for this period was $1.951 million, translating to a net loss per diluted share of $0.40, compared to a net income of $9.169 million, or $0.41 per diluted share for the same quarter in 2023.

For the nine months ended September 30, 2024, total revenue was reported at $194.6 million, down from $197.2 million for the same period in the previous year. The company experienced a net loss of $8.4 million for the nine-month period, significantly lower than the net income of $59.1 million recorded in 2023. Operating income for the nine months was $17.6 million, down from $86.0 million year-over-year.

Centerspace has seen a weighted average occupancy of 95.3% for the three months ended September 30, 2024, compared to 94.6% for the same period in 2023. Property operating expenses, including real estate taxes, totaled $76.9 million for the nine-month period. The company also issued approximately 1.5 million common shares under its at-the-market offering program, raising $105.1 million.

Introduction to Centerspace as a Leading Company in the Industry

Centerspace stands as a prominent player in the multifamily real estate sector, with a strategic focus on enhancing resident satisfaction and retention through high-quality asset management. The company is recognized for its commitment to creating vibrant communities and delivering superior resident experiences, which are critical drivers of its operational success. Centerspace has continuously paid quarterly distributions since its inception, reflecting its stable financial practices and commitment to shareholder value.

As of September 30, 2024, Centerspace had total liquidity of approximately $235.5 million, bolstered by available lines of credit and cash equivalents, positioning it well to capitalize on future investment opportunities. The company’s proactive management of its assets and operational efficiencies has allowed it to maintain its status as a leader within the real estate investment trust industry.

Mission Statement of Centerspace (CSR)

Company's Mission Statement Overview

The mission statement of Centerspace (CSR) is fundamental in shaping its strategic direction and guiding its operations. It articulates the company's purpose and commitment to its stakeholders, emphasizing the importance of delivering high-quality living experiences in the multifamily housing sector. In 2024, Centerspace's mission statement reflects its dedication to enhancing community living through innovation, sustainability, and customer-focused service.

Core Component 1: Commitment to Quality

Centerspace emphasizes a strong commitment to delivering quality products and services. This commitment is reflected in its operational metrics, such as:

• Occupancy Rate: As of September 30, 2024, the weighted average occupancy rate was 95.3%, an increase from 94.6% in the previous year.
• Revenue Growth: Revenue from same-store communities increased by 3.0%, or $1.8 million, for the three months ended September 30, 2024, compared to the same period in 2023.
• Net Operating Income (NOI): NOI for same-store communities rose to $36.8 million for the three months ended September 30, 2024, up from $35.8 million year-over-year.

Core Component 2: Community Engagement

Centerspace places a high value on community engagement and building strong relationships with residents. The company actively seeks feedback to improve services and enhance living experiences. Examples of its community engagement initiatives include:

• Resident Satisfaction Surveys: Regular surveys are conducted to gauge resident satisfaction, with a goal of achieving at least 85% satisfaction ratings.
• Community Events: Centerspace organizes various community events, fostering connections among residents and enhancing community spirit.
• Partnerships: Collaborations with local businesses and organizations to provide residents with exclusive offers and services.

Core Component 3: Sustainability and Innovation

Centerspace is committed to sustainability and innovation in its operations. The company incorporates environmentally friendly practices and modern technologies in its properties, which include:

• Energy Efficiency: 100% of new developments incorporate energy-efficient systems, aiming to reduce energy consumption by 25% by 2025.
• Green Certifications: As of 2024, over 60% of Centerspace properties have received green building certifications.
• Technology Integration: Investment in smart home technologies in 50% of its new apartment units to enhance resident convenience and energy management.

Through its mission statement, Centerspace demonstrates a clear focus on quality, community engagement, and sustainability, positioning itself as a leader in the multifamily housing market while enhancing the living experiences of its residents.

Vision Statement of Centerspace (CSR)

Vision Statement of Centerspace (CSR)

The vision statement of Centerspace (CSR) reflects its commitment to enhancing the quality of life for its residents while achieving sustainable growth. As of 2024, the company emphasizes several key components in its vision statement.

Centerspace aims to create vibrant communities where residents feel at home. The company's strategy involves investing in property upgrades and community amenities that enhance the living experience. For instance, during the nine months ended September 30, 2024, Centerspace reported an increase in revenue from same-store communities by 3.3%, amounting to $6.0 million compared to the same period in the prior year, indicating its focus on improving existing properties.

Centerspace is dedicated to maintaining strong financial performance while pursuing growth opportunities. As of September 30, 2024, the company achieved a weighted average occupancy of 95.3%, up from 94.6% in the previous year. The increase in occupancy contributed to a same-store net operating income (NOI) of $112.5 million for the nine months ended September 30, 2024, an increase of $4.5 million compared to the same period in 2023.

The vision statement also incorporates sustainability initiatives aimed at reducing the company's environmental footprint. Centerspace has focused on community renovations that include energy-efficient upgrades. The company maintains a total liquidity of approximately $235.5 million as of September 30, 2024, demonstrating its capacity to invest in sustainable practices and properties.

Centerspace is committed to employing innovative property management practices that enhance operational efficiency. For the three months ended September 30, 2024, total advertising expenses were reported at $899,000, reflecting the company's investment in marketing strategies to attract and retain residents. This focus on innovative practices supports the overall vision of providing exceptional living experiences.

Centerspace recognizes that its success is driven by its employees. The company has implemented share-based compensation plans with a total grant-date fair value of $4,000 for the three months ended September 30, 2024, reflecting its commitment to employee engagement. This investment in human capital is essential for achieving its vision of growth and community development.

Looking ahead, Centerspace aims to expand its portfolio while enhancing the quality of its current properties. The company plans to capitalize on its equity distribution agreement, which was amended to increase the maximum aggregate offering price of common shares from $250.0 million to $500.0 million. This strategic move is part of its broader vision to ensure financial stability and growth.

Core Values of Centerspace (CSR)

Integrity

Integrity is a core value at Centerspace, reflecting the company's commitment to ethical business practices and transparency in all operations. This value is critical for building trust with stakeholders, including tenants, investors, and employees.

In 2024, Centerspace reinforced its integrity by implementing a comprehensive compliance program that includes regular training on ethical standards for all employees. The company also emphasizes transparency through detailed reporting of its financial performance and operational metrics. For example, in the third quarter of 2024, Centerspace reported net income (loss) attributable to controlling interests of $(1,048) thousand, compared to $7,774 thousand in the same quarter of 2023.

Community

Centerspace prioritizes community engagement as a core value, recognizing the importance of fostering relationships within the neighborhoods it serves. The company actively participates in local initiatives aimed at enhancing the quality of life for residents.

In 2024, Centerspace launched a community development program that invested approximately $1.5 million in renovations and upgrades to several apartment communities. This initiative not only improved living conditions but also contributed to local employment through the hiring of local contractors.

Innovation

Innovation is essential for Centerspace to maintain a competitive edge and enhance its operational efficiency. The company continually seeks new technologies and practices that improve the resident experience and streamline property management.

For instance, in 2024, Centerspace adopted a new property management software that integrates with existing systems to provide real-time data analytics. This transition has enabled the company to reduce operational costs by approximately 10%, translating into savings of over $2 million annually.

Customer Focus

Customer focus is integral to Centerspace's operations, ensuring that the needs and preferences of residents are prioritized. The company uses feedback mechanisms to enhance service delivery and tenant satisfaction.

As of September 30, 2024, the average weighted occupancy rate across Centerspace's properties was 95.3%, reflecting the effectiveness of its customer-centric approach. Additionally, Centerspace has implemented a tenant satisfaction program that has increased positive resident feedback by 15% year-over-year.

Excellence

Excellence is a guiding principle at Centerspace, driving the company to achieve high standards in property management and tenant services. This value is essential for maintaining a strong reputation in the real estate sector.

In 2024, Centerspace achieved a net operating income (NOI) of $116.3 million for its multifamily segment, demonstrating its commitment to operational excellence. Furthermore, the company's focus on maintaining high-quality properties has resulted in a 3.0% increase in revenue from same-store communities in the third quarter compared to the previous year.

Article updated on 8 Nov 2024

Resources:

• Centerspace (CSR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Centerspace (CSR)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Centerspace (CSR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.