Centerspace (NYSE: CSR) reported its financial and operating results for the three and nine months ended September 30, 2026. The company reported diluted net income of $7.28 per share for the third quarter of 2026, a significant increase from $3.19 per share in the same period of the prior year. This year-over-year increase was primarily attributed to a higher gain on the sale of real estate and other investments, which totaled $150.3 million in the current period compared to $79.5 million in the prior year.
Core Funds from Operations (FFO) per diluted share decreased 6.7% to $1.11 for the third quarter of 2026, down from $1.19 in the prior year. The company attributed this decline to dispositions completed in 2026 and 2025, though this was partially offset by higher Net Operating Income (NOI) from non-same-store communities and lower casualty losses and interest expense.
Centerspace also provided an overview of its balance sheet and portfolio activity. During the third quarter, the company disposed of thirteen apartment communities containing 1,634 homes for an aggregate sales price of $288.8 million. This brings the total aggregate sales price for dispositions during the year to $318.8 million. The company fully repaid its line of credit balances, reducing its borrowing capacity to $250.0 million. This action contributed to a $4.6 million decrease in interest expense compared to the same period in the prior year and resulted in a net debt to Adjusted EBITDA ratio of 6.3x.
At the end of the third quarter, Centerspace had $366.2 million of total liquidity, consisting of $250.0 million available under its line of credit and $116.2 million in cash and cash equivalents. As of September 30, 2026, the company owned 47 apartment communities comprising 10,456 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and Utah.
In a significant development, Centerspace entered into a merger agreement with Independence Realty Trust, Inc. (IRT) on September 8, 2026. Under the agreement, each outstanding Centerspace common share is to be converted into the right to receive 3.8 shares of IRT common stock, subject to adjustments. The company has scheduled a special meeting of shareholders for November 10, 2026, to vote on the transaction. In light of this proposed merger, Centerspace stated that it will no longer provide financial guidance.
