Centerspace 2024年度报告

LETTER FROM THE CEO 2024 delivered stable revenue growth and strongoccupancy, and we diligently managed expenses toproduce sector-leading same-store growth in our netoperating income.“ Fellow Shareholders: During the year we simplified and strengthenedour balance sheet and leverage profile. We issued$114 million of shares on our ATM, using the pro-ceeds to fully redeem our Preferred C shares. Ourdebt profile includes a weighted average debt costof 3.6% and a weighted average time to maturityof 5.6 years. Centerspace is in a great position totake advantage of opportunities in 2025. Centerspaceoperates with a mantra of“Bet-ter Every Days” and 2024 was a year where wedemonstrated continued improvement on manyfronts. Our operational results were strong, weexecutedon balance sheet enhancements,weimproved our portfolio outlook with acquisitionactivity in Denver, and our commitment to ourresidents drove positive outcomes. 2024 delivered stable revenue growth and strongoccupancy, and we diligently managed expensestoproduce sector-leading same-store growthin our net operating income. Strong fundamen-tals in our Midwest and Mountain West marketspaved the way for these positive results. Whilewe did see supply headwinds during the year inour markets of Minneapolis and Denver, we an-ticipate diminishing new supply and strong ab-sorption in those markets will prove to be a tail-wind as we move through 2025 and into 2026. Our portfolio quality is important to us, and inOctober, we successfully executed on the acqui-sition of The Lydian in Denver in an off-markettransactionusing both operating partnershipunits issued at a premium to our stock price atthat time and the assumption of attractive debt.We are focused on delivering value to sharehold-ers through external growth, enhanced earningsgrowth profile, and disciplined capital allocation.The tools we have to improve the position of the 3.3% Increase in Same-StoreRevenue over 2023 company are full and varied, and our team hasdemonstrat-ed execution when opportunities arise. While there may be uncertainty about the macro econo-my, the appeal of our communities remains robust. In 2024,we experienced a near-record high retention rate of 56.6%acrossour portfolio.With housing affordability on theminds of many, our residents are finding great value in liv-ing in a Centerspace community: •Overall resident satisfaction scores increased by 5.3%over 2023;•We achieved a 16% increase in five-star reviews; and•Our aggregate online review scores increased 3.5%. I am incredibly proud of the efforts our team members un-dertake to produce our outstanding results, and gratefulfor their commitment to our organization. We are lookingforward to the opportunity to advance our mission in 2025– ensuring that we provide a great home for our residents,our team members and for all of you, our shareholders. Best, Anne OlsonTrustee and CEO THANKING JEFF CAIRA This May, Jeff Caira will retire from his position on the Centerspace Board of Trustees. Jeffhas served as a trustee of the Company since June 2015 and served as Chair from April 2017to December 2021. With more than 40 years of experience in the real estate industry and anextensive background in investment management, Jeff has made significant contributions tothe company’s portfolio strategy and overall growth. We are thankful for his years of serviceand wish him the best in his future endeavors. CENTERSPACE’S COMMITMENT TO ESG At Centerspace, we are committed to Better Every Days by providing a great home for our residents, team mem-bers, and investors. Our way forward to make each day brighter is understanding our impact as a company andhow we can enhance the lives of those we touch. Our business is to build healthy, equitable, sustainable, and vi-brant communities through actions that serve our residents and teams. We look to the future and embrace change, knowing that the opportunities that arise as we grow together willhelp set the stage for long-term success in improving our social and environmental impacts and the policies thatguide our business. Our commitment starts with the wellbeing of our residents, team members, and communitiesthat we serve. We also strive to monitor our use of natural resources to enhance corporate stewardship, as weknow continuous improvement is only possible when we back up our actions with robust and consistent mea-surements of progress. Finally, we aim to continue our long tradition of strong governance in our efforts to do theright thing, make positive contributions, and serve others with integrity. ENVIRONMENTAL ESG STRATEGY •We have implemented Smart Home Technologyat 68% of Centerspace communities.•Twelve of our communities (approximately 17%)now feature EV charging stations, with a goal of40% by the end of 2027.•We developed resident waste education resourc-es and other resident conservation resources.•We installed our first solar panels at two Cen-terspace communities. •We completed