Centerspace (NYSE: CSR)(the "Company") announced today that the Company's Board of Trustees has, in connection with its comprehensive evaluation of strategic alternatives, approved a portfolio optimization and deleveraging plan designed to enhance portfolio quality, strengthen the balance sheet, preserve embedded shareholder value, and maximize strategic flexibility.  

The Board and management engaged in a thorough process with a broad range of potential counterparties and assessed numerous alternatives. The actions announced today, subject to their completion, will strengthen the Company's balance sheet while concentrating the portfolio in higher-quality, more liquid markets. The Company believes that upon their completion the transactions will position the Company for long-term success as multifamily fundamentals continue to recover following the elevated levels of supply delivered during 2023-2025.  

The plan includes approximately $240-245 million of targeted assets sales in 2026, comprising twelve communities, including a full exit from the Bismarck and Rapid City markets and one community in Denver. Each of these dispositions is under contract with buyers and the Company anticipates closing these sales in the second half of 2026.

Upon successful completion of these dispositions, the Company currently expects:

  • Total debt to decrease by $175-190 million, including repayment of the Company's line of credit balance, improving both the cost and duration of debt;
  • Improvement in proforma Annualized Net Debt to EBITDA, decreasing from 8.2x in Q1 2026 to an anticipated sub-7x level in Q4 2026; and
  • That there may be special distributions of $45-65 million, with a declaration, if any, of exact timing and amount anticipated later in the year.