Centerspace (CSR) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 4.92%
• Average Volume (3M): 108.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -21.69%
• EPS Growth: -154.55%
• Country: US
• Employees: 374
• Sector: Real Estate
• Sector Strength: 76
• Industry: REIT - Residential
• EPS (TTM): -1.27
• Shares Outstanding: 16,735,008
• 10 Day Avg. Volume: 112,553
• 30 Day Avg. Volume: 108,494
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 15.37
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $71.86
• Price Target Upside: 17.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Centerspace's overall stock score reflects a stable but cautious outlook. The financial performance shows a need for profitability improvement and debt management, while technical indicators are mixed with moderate momentum. The valuation suggests a high risk due to negative earnings, but a high dividend yield is a positive aspect. The earnings call highlighted positive operational trends, supporting a stable outlook despite certain market challenges.

Positive Factors

Earnings

Centerspace reported Core FFO/sh of $1.21, which was $0.02 above our estimate.

Guidance

CSR provided FY2025 guidance with Core FFO/sh of $4.86-$5.10, which is above consensus estimates.

Valuation

CSR shares trade at a significant discount to NAV and large-cap multifamily sector averages, presenting a potential investment opportunity.

Negative Factors

Market Performance

CSR's two largest markets, Denver, CO and Minneapolis, MN, exhibited the weakest results for the portfolio.

Retention Rate

Retention rate decelerated significantly to 49.2%.

Supply Analysis

CSR scored worse than expected in our proprietary supply analysis despite a positive outlook in markets outside of Denver.

Centerspace Business Overview & Revenue Model

Company Description

Centerspace (CSR) is a real estate investment trust (REIT) specializing in the ownership, management, acquisition, and redevelopment of apartment communities. The company primarily operates in the residential real estate sector, focusing on multifamily housing properties in various markets across the United States. Centerspace is dedicated to providing quality living spaces and exceptional service to its residents, while also seeking to deliver strong returns to its shareholders.

How the Company Makes Money

Centerspace generates revenue primarily through the rental income it collects from its portfolio of multifamily housing properties. By leasing apartments to individual tenants, the company earns a steady stream of rental payments. Additionally, Centerspace may increase its earnings through property appreciation, which can lead to higher rental rates over time. The company also engages in the strategic acquisition and redevelopment of properties to enhance their value and appeal, potentially leading to increased occupancy rates and rental income. Partnerships with local developers and community organizations may further enhance property value and revenue potential. Centerspace's REIT structure allows it to distribute the majority of its taxable income as dividends to shareholders, providing an attractive income stream to investors.

Centerspace Financial Statement Overview

Summary

Centerspace presents a mixed financial picture with stable revenue growth but persistent profitability challenges. The high leverage poses a risk, though the company maintains a solid equity base. Cash flows remain robust, providing some cushion against operational hurdles. Overall, the financial health is stable but requires attention to debt levels and profitability improvement.

Income Statement

Centerspace shows moderate revenue growth over the periods, with a slight increase in TTM revenue. However, consistent net losses indicate profitability challenges. The gross profit margin remains strong, yet declining EBIT and EBITDA margins reflect operational cost pressures. Revenue growth is positive but slowing, suggesting stability with caution needed on profitability.

Balance Sheet

The balance sheet shows a stable equity position relative to total assets, indicating a solid foundation. However, the debt-to-equity ratio is high, suggesting significant leverage risk. The return on equity has fluctuated, with recent periods showing negative returns due to net losses, highlighting profit generation issues.

Cash Flow

Centerspace has shown positive operating cash flow throughout the periods, with recent improvements in free cash flow. However, the free cash flow growth rate is inconsistent. The operating cash flow covers net income, showcasing strong cash generation capability despite profitability issues. Financing activities show a decrease, indicating reduced external funding reliance.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
260.98M	261.31M	256.72M	201.71M	177.99M
	Gross Profit
148.61M	146.14M	138.18M	111.10M	99.03M
	EBIT
20.48M	84.45M	13.86M	2.72M	8.34M
	EBITDA
130.23M	188.83M	121.62M	122.06M	85.59M
	Net Income Common Stockholders
-10.69M	41.97M	-15.02M	-31.38M	-24.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.03M	8.63M	10.46M	31.27M	392.00K
	Total Assets
1.91B	1.93B	2.03B	1.94B	1.46B
	Total Debt
955.38M	916.02M	1.01B	856.05M	719.19M
	Net Debt
943.36M	907.39M	997.17M	824.78M	718.80M
	Total Liabilities
1.01B	978.78M	1.07B	918.45M	774.80M
	Stockholders Equity
670.46M	726.39M	746.10M	797.36M	634.77M
Cash Flow		Free Cash Flow
98.25M	89.52M	35.30M	48.15M	30.91M
	Operating Cash Flow
98.25M	89.52M	91.99M	84.03M	61.23M
	Investing Cash Flow
-50.72M	120.21M	-160.09M	-267.23M	-164.97M
	Financing Cash Flow
-43.67M	-212.35M	41.37M	214.51M	64.93M

Centerspace Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSR, the sentiment is Neutral. The current price of 61.42 is above the 20-day moving average (MA) of 58.88, below the 50-day MA of 61.77, and below the 200-day MA of 66.11, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 75.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSR.

Centerspace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMH	63 Neutral	$1.49B	538.79	3.45%	4.84%	8.88%	―
CSR	61 Neutral	$1.09B	―	-1.55%	4.92%	-21.69%	-154.55%
BRT	61 Neutral	$305.90M	―	-4.52%	6.19%	2.15%	-556.06%
Sector *	60 Neutral	$2.79B	11.37	0.20%	8519.74%	6.07%	-14.95%
VRE	58 Neutral	$1.52B	―	-2.76%	1.78%	-3.20%	76.43%
NXRT	58 Neutral	$989.60M	866.19	-7.19%	5.04%	-7.44%	-143.64%
AIV	41 Neutral	$1.17B	―	-44.01%	―	11.60%	36.23%

Centerspace Corporate Events

Centerspace Reports Q1 2025 Financial Results

Centerspace, a company listed on the NYSE under the ticker CSR, reported its financial and operational results for the first quarter of 2025 on May 1, 2025. The company experienced a 4.0% increase in revenue compared to the first quarter of 2024, reaching $67.1 million. Despite a net loss of $0.22 per diluted share, this was an improvement from the $0.37 loss per share in the same period last year. The Core FFO per diluted share slightly decreased to $1.21, attributed to a rise in same-store property taxes. Centerspace also updated its financial outlook for 2025, maintaining its previous guidance ranges.

Spark’s Take on CSR Stock

According to Spark, TipRanks’ AI Analyst, CSR is a Neutral.

Centerspace’s overall score reflects moderate financial performance, with strengths in cash flow and portfolio expansion. However, challenges in profitability consistency and high leverage weigh down the score. Technical indicators suggest caution, while valuation metrics are mixed, with a negative P/E offset by a strong dividend yield. The positive earnings call sentiment provides a boost, but expense and interest challenges persist.

To see Spark’s full report on CSR stock, click here.

Centerspace Board Member Jeffrey Caira Announces Retirement

On March 7, 2025, Jeffrey P. Caira, a member of Centerspace’s Board of Trustees, announced his decision to retire and not seek re-election at the upcoming Annual Meeting of Shareholders on May 14, 2025. Caira’s retirement marks a significant transition for the company, as he has played a crucial role in guiding Centerspace’s strategic focus towards multifamily operations since his appointment in 2015. The company has been actively refreshing its board, adding new members in 2024, which aligns with its ongoing commitment to growth and operational excellence.

Centerspace Unveils 2024 Financial Results and 2025 Outlook

On February 28, 2025, Centerspace released an investor presentation detailing its financial and operational results for the year ending December 31, 2024. The company reported growth in average rents despite economic volatility and outlined its strategic focus on increasing distributable cash flow and enhancing operational efficiencies. The presentation also highlighted Centerspace’s portfolio improvements since 2017, including strategic acquisitions and dispositions to optimize its market presence. The company’s financial outlook for 2025 includes guidance on revenue, expenses, and net income, with a focus on maintaining a strong balance sheet to support growth.