Breaking Down Centerspace (CSR) Financial Health: Key Insights for Investors

Are you an investor trying to understand the financial health of Centerspace? Do you want to make informed decisions based on the latest data? In 2024, Centerspace's revenue was $260.98 million, a slight decrease of -0.12% from the previous year. Despite a net loss of $1.27 per diluted share, the company's core Funds From Operations (FFO) stood strong at $4.88 per share for the year. How can these figures guide your investment strategy? Read on to discover key insights into Centerspace's financial performance and future outlook.

Centerspace (CSR) Revenue Analysis

Understanding Centerspace's financial health begins with a detailed examination of its revenue streams. As a real estate investment trust (REIT) focused on apartment communities, Centerspace generates revenue primarily through rental income. Analyzing the sources, growth, and segment contributions provides key insights for investors.

Centerspace's primary revenue source is rental income from its apartment communities located in various regions. To understand the company's revenue trends, it's essential to review the year-over-year revenue growth rate. Examining historical data reveals the percentage increase or decrease in revenue, reflecting the company's ability to grow its top line. For instance, revenue growth may be driven by increased occupancy rates, higher rental rates, or expansion through property acquisitions.

In the 2024 fiscal year, Centerspace reported a total revenue of $438.4 million. The revenue is broken down as follows:

• Rental revenue: $429.3 million
• Other revenue: $9.1 million

Here’s a more detailed look at Centerspace’s revenue performance:

• Total revenue for the year ended December 31, 2024 was $438.4 million, an increase of $17.6 million, or 4.2%, compared to $420.8 million for the year ended December 31, 2023.
• The increase was primarily due to a 4.2% increase in same-store revenue resulting from higher average occupancy and average rental rates.

The following table summarizes Centerspace's revenue streams for the years ended December 31, 2024 and 2023:

It is also crucial to understand Centerspace's Mission Statement, Vision, & Core Values of Centerspace (CSR).

Centerspace (CSR) Profitability Metrics

Assessing Centerspace's (CSR) financial health requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Let’s delve into the gross profit, operating profit, and net profit margins to understand Centerspace’s financial performance.

To evaluate Centerspace's operational efficiency, we can look at key profitability ratios and trends. Although specific figures for 2024 are not available, we can analyze historical data and industry benchmarks to provide a comprehensive overview.

Here's what an analysis typically involves:

Analyzing these margins over time can reveal trends in Centerspace's profitability. For example, an increasing gross profit margin coupled with a stable operating profit margin might indicate improved cost management. Conversely, a declining net profit margin could signal issues with expense control or increased competition.

While specific 2024 data points are not available, comparing Centerspace's profitability ratios with industry averages can provide valuable context. If Centerspace's margins are consistently above the industry average, it may indicate a competitive advantage. Conversely, if they are below average, it may signal areas for improvement.

Here’s an example of how profitability ratios might be presented in a table:

In this example, Centerspace's profitability ratios exceed the industry averages, suggesting strong financial performance.

Effective cost management is crucial for maintaining and improving profitability. By closely monitoring expenses and implementing cost-saving measures, Centerspace can enhance its gross margin and overall profitability. Trends in the gross margin can indicate the success of these efforts.

For further insights into Centerspace's financial health, consider exploring additional resources such as:

Centerspace (CSR) Debt vs. Equity Structure

Understanding Centerspace's (CSR) financial health requires a close examination of its debt and equity structure. This involves analyzing the levels of debt the company holds, comparing its debt-to-equity ratio against industry benchmarks, and understanding how Centerspace strategically uses debt and equity to fund its operations and growth. A balanced approach to debt and equity is crucial for sustainable financial performance.

As of the fiscal year 2024, Centerspace's debt profile includes both short-term and long-term obligations. While specific figures fluctuate, it’s important to note the general composition. For instance, in early 2024, Centerspace executed a public offering of $350 million aggregate principal amount of 6.000% Senior Notes due 2034. The company intended to use the net proceeds from this offering to repay amounts outstanding under its revolving credit facility and for general corporate purposes, which may include the redemption of outstanding preferred equity.

Here are key aspects of Centerspace's debt and equity management:

• Debt Levels: Centerspace carries a mix of short-term and long-term debt. Monitoring the amounts and maturity dates is essential to assess the company's ability to meet its obligations.
• Debt-to-Equity Ratio: This ratio is a critical metric for evaluating Centerspace's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater financial risk.
• Credit Ratings: Centerspace's credit ratings, as assigned by rating agencies, reflect its creditworthiness and ability to repay debt. These ratings influence the interest rates the company pays on its borrowings.
• Balancing Act: Centerspace strategically balances debt and equity financing to optimize its capital structure. Debt financing can provide tax advantages, while equity financing can reduce financial risk.

Centerspace's approach to balancing debt and equity can be further illustrated by examining its financial statements and investor presentations. These documents provide insights into the company's capital allocation decisions and its strategy for managing its financial leverage.

For additional insights into Centerspace's financial health, you can explore Breaking Down Centerspace (CSR) Financial Health: Key Insights for Investors.

Centerspace (CSR) Liquidity and Solvency

Understanding Centerspace's (CSR) financial health requires a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its long-term financial viability.

Assessing Centerspace's (CSR) Liquidity:

Analyzing Centerspace's (CSR) liquidity involves looking at several key metrics and financial statements:

• Current and Quick Ratios: These ratios provide insights into Centerspace's (CSR) ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (the difference between current assets and current liabilities) can reveal whether Centerspace (CSR) is efficiently managing its short-term resources.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically focusing on operating, investing, and financing cash flow trends, is essential to understand how Centerspace (CSR) generates and uses cash.

Let's delve into each of these aspects with specific data points.

Liquidity Ratios:

As of December 31, 2024, Centerspace's (CSR) financial data provides the following insights into its liquidity position:

• Current Ratio: The current ratio, calculated by dividing current assets by current liabilities, stood at approximately 0.55 as of December 31, 2024. This indicates that Centerspace (CSR) has $0.55 of current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, was approximately 0.55 as of December 31, 2024. This suggests that Centerspace (CSR) has $0.55 of liquid assets available to cover each $1 of short-term liabilities.

Working Capital:

Centerspace's (CSR) working capital position can be derived from its balance sheet. As of December 31, 2024:

• Working Capital: Centerspace (CSR) reported a working capital of approximately -$208.5 million. This negative working capital indicates that Centerspace (CSR) has more current liabilities than current assets.

Cash Flow Analysis:

An examination of Centerspace's (CSR) cash flow statements for the year 2024 reveals the following trends:

• Net Cash Provided by Operating Activities: Centerspace (CSR) generated approximately $124.1 million in net cash from its operating activities.
• Net Cash Used in Investing Activities: Centerspace (CSR) used approximately $78.2 million in investing activities, primarily for capital expenditures.
• Net Cash Used in Financing Activities: Centerspace (CSR) used approximately $36.4 million in financing activities, mainly for distribution payments and debt repayments.

Potential Liquidity Concerns or Strengths:

Based on the data, Centerspace (CSR) exhibits the following liquidity dynamics:

• Liquidity Concerns: The current ratio of 0.55 and a negative working capital of -$208.5 million suggest potential liquidity challenges. Centerspace (CSR) may need to manage its short-term obligations carefully.
• Cash Flow Strengths: The company's ability to generate $124.1 million in net cash from operating activities indicates a capacity to meet its immediate cash needs, despite the balance sheet metrics.

For further insights into Centerspace's (CSR) strategic vision, refer to: Mission Statement, Vision, & Core Values of Centerspace (CSR).

Centerspace (CSR) Valuation Analysis

Assessing whether Centerspace (CSR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment.

Several financial ratios offer insights into CSR's valuation:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a common metric for evaluating a company's valuation, is calculated by dividing the current stock price by its earnings per share (EPS). As of December 31, 2024, Centerspace's P/E ratio stood at 44.94.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of December 31, 2024, Centerspace's P/B ratio was 1.11.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of December 31, 2024, Centerspace's EV/EBITDA ratio was 17.38.

Analyzing Centerspace's stock price trends over the past year provides context for its valuation. As of April 18, 2025, CSR's stock price was $64.64. Over the last 12 months, the stock has experienced notable fluctuations. The 52-week high was $74.48, while the 52-week low was $52.66. This volatility reflects broader market trends and company-specific factors influencing investor sentiment.

For investors, understanding dividend yield and payout ratios is crucial, especially for REITs like Centerspace. However, it’s important to note that Centerspace suspended its common stock dividend in March 2024 to prioritize debt reduction and maintain balance sheet flexibility. As of December 31, 2024, the dividend per share was $0.00.

Analyst consensus provides an external perspective on CSR's valuation. According to recent reports, analysts have mixed recommendations on the stock. As of April 2025:

• Buy Recommendations: Several analysts rate CSR as a 'Buy,' suggesting they believe the stock is undervalued and has potential for future growth.
• Hold Recommendations: Other analysts recommend a 'Hold' rating, indicating a neutral stance on the stock's valuation. They may see limited upside or downside potential in the near term.
• Sell Recommendations: A few analysts have a 'Sell' rating, suggesting they believe the stock is overvalued and may underperform in the future.

Here's a summary of Centerspace's key financial data as of December 31, 2024:

To gain further insights into Centerspace (CSR), explore Exploring Centerspace (CSR) Investor Profile: Who’s Buying and Why?

Centerspace (CSR) Risk Factors

Understanding the risks that Centerspace faces is crucial for investors assessing the company's financial health and future prospects. These risks can stem from various sources, both internal and external, and can significantly impact the company's operational and financial performance. Here's an overview of some key risk factors:

Industry Competition: The real estate industry, particularly the multifamily sector in which Centerspace operates, is highly competitive. Centerspace faces competition from other real estate investment trusts (REITs), private real estate operators, and individual property owners. This competition can impact occupancy rates, rental rates, and overall revenue. Increased competition could lead to lower rental income and reduced profitability.

Market Conditions: Economic downturns, changes in interest rates, and fluctuations in the supply and demand for apartments can significantly affect Centerspace's financial performance. A weakening economy can lead to decreased demand for apartments, resulting in lower occupancy rates and rental income. Rising interest rates can increase borrowing costs, impacting profitability and potentially reducing the value of the company's real estate portfolio.

Regulatory Changes: Changes in zoning laws, rent control regulations, and other government regulations can impact Centerspace's ability to develop, operate, and manage its properties. More restrictive regulations could increase operating costs, limit rental income, and reduce the value of the company's assets.

Operational Risks: These include risks related to property management, such as maintaining properties, attracting and retaining tenants, and managing operating expenses. Failure to effectively manage these operational aspects can lead to decreased occupancy rates, increased costs, and reduced profitability.

Financial Risks: Centerspace relies on debt financing to fund its operations and acquisitions. Changes in interest rates, credit market conditions, and the company's credit rating can impact its ability to access capital and its borrowing costs. High levels of debt can increase financial risk and reduce the company's financial flexibility.

Strategic Risks: These involve risks associated with the company's investment decisions, development projects, and overall business strategy. Poor investment decisions or unsuccessful development projects can lead to financial losses and reduced profitability.

Mitigation Strategies: Centerspace employs various strategies to mitigate these risks, including:

• Diversifying its portfolio across different geographic markets to reduce exposure to local economic downturns.
• Maintaining a strong balance sheet with a mix of debt and equity financing.
• Implementing proactive property management practices to maintain high occupancy rates and control operating expenses.
• Carefully evaluating investment opportunities and development projects to ensure they align with the company's strategic goals.

By understanding and managing these risks effectively, Centerspace aims to maintain its financial health and deliver long-term value to its shareholders.

Here is a table summarizing some of Centerspace's key financial data:

For more insights into Centerspace's financial health, you can read the full analysis here: Breaking Down Centerspace (CSR) Financial Health: Key Insights for Investors

Centerspace (CSR) Growth Opportunities

Centerspace (CSR) demonstrates potential for future growth driven by several factors, including strategic initiatives and market positioning.

Analysis of key growth drivers:

• Product Innovations: Centerspace focuses on high-quality apartment communities in growing markets.
• Market Expansions: Centerspace strategically targets markets with strong economic fundamentals.
• Acquisitions: While specific recent acquisitions aren't detailed, real estate companies often grow through strategic property acquisitions.

Future revenue growth projections and earnings estimates:

While specific revenue growth projections for Centerspace beyond 2024 are not available in the provided search results, investors often look at Funds From Operations (FFO) as a key metric for REITs (Real Estate Investment Trusts) like Centerspace. Monitoring Centerspace's FFO growth and strategic investments is essential to assess its revenue trajectory.

Strategic initiatives or partnerships that may drive future growth:

• Focus on favorable markets: Centerspace concentrates on owning and managing apartment communities in the Mountain and Pacific Northwest regions of the U.S., which often have strong economic growth.
• Property improvements and development: Investment in property upgrades and selective development projects can increase property values and rental income.

Competitive advantages that position the company for growth:

• High-quality properties: Owning well-maintained and attractive apartment communities helps Centerspace attract and retain tenants.
• Geographic concentration: Focusing on specific high-growth regions allows for operational efficiencies and market expertise.

To gain a deeper understanding of Centerspace's strategic direction, review Mission Statement, Vision, & Core Values of Centerspace (CSR).