Financial Analysis

COMMITMENTS AND CONTINGENCIES Litigation . Centerspace is involved in various lawsuits arising in the normal course of business and believes that such matters will not have a material adverse effect on the Consolidated Financial Statements. Environmental Matters . It is generally the Companys policy to obtain a Phase I environmental assessment of each property that it seeks to acquire. Such assessments have not revealed, nor is the Company aware of, any environmental liabilities that it believes would have a material adverse effect on its financial position or results of operations. Centerspace owns properties that contain or potentially contain (based on the age of the property) asbestos, lead, or underground storage tanks. For certain of these properties, the Company estimated the fair value of the conditional asset retirement obligation and chose not to book a liability because the amounts involved were immaterial. With respect to certain other properties, Centerspace has not recorded any related asset retirement obligation as the fair value of the liability cannot be reasonably estimated due to insufficient information. The Company believes it does not have sufficient information to estimate the fair value of the asset retirement obligations for these properties because a settlement date or range of potential settlement dates has not been specified by others. These properties are expected to be maintained by repairs and maintenance activities that would not involve the re …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The following table summarizes the Companys secured and unsecured debt at December 31, 2025 and December 31, 2024: (in thousands) December 31, 2025 December 31, 2024 Carrying Amount Weighted Average Interest Rate Carrying Amount Weighted Average Interest Rate Weighted Average Maturity in Years at December 31, 2025 Lines of credit (1) $ 154,925 5.12 % $ 47,359 5.86 % 2.56 Unsecured senior notes (2)(4) 300,000 3.12 % 300,000 3.12 % 4.62 Unsecured debt 454,925 347,359 3.92 Mortgages payable - Fannie Mae credit facility (4) 198,850 2.78 % 198,850 2.78 % 5.56 Mortgages payable - other (3)(4)(5) 400,134 3.88 % 420,414 4.02 % 11.03 Secured debt $ 598,984 $ 619,264 9.22 Subtotal $ 1,053,909 3.64 % $ 966,623 3.58 % 6.93 Deferred financing costs, premiums, and discounts on mortgages payable, net (32,324) (10,758) Deferred financing costs on notes payable, net (421) (480) Total debt $ 1,021,164 $ 955,385 (1) Interest rates on lines of credit are variable and exclude any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps. (2) Included within notes payable on the Consolidated Balance Sheets. (3) Represents apartment communities encumbered by mortgages; 10 at December 31, 2025 and 15 at December 31, 2024. (4) Interest rate is fixed. (5) Includes mortgages payable of $76.5 million assumed as part of an acquisition discussed in Note 9 of the Notes to the Consolidated Financial Stateme …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the disaggregation of revenue streams for the years ended December 31, 2025, 2024, and 2023: (in thousands) Year ended December 31, Revenue Stream Applicable Standard 2025 2024 2023 Fixed lease income - operating leases Leases $ 252,918 $ 243,008 $ 243,931 Variable lease income - operating leases Leases 15,887 13,419 12,433 Other property revenue Revenue from contracts with customers 4,857 4,556 4,945 Total revenue $ 273,662 $ 260,983 $ 261,309

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SHARE-BASED COMPENSATION Share-based awards are provided to officers, non-officer employees, and trustees under the 2025 Incentive Plan approved by shareholders on May 14, 2025 (the 2025 Incentive Plan), which allows for awards in the form of cash, unrestricted and restricted common shares, stock options, stock appreciation rights, and restricted stock units (RSUs) up to an aggregate of 650,000 shares over the ten-year period in which the plan is in effect. Under the 2025 Incentive Plan, officers and non-officer employees may earn share awards under a long-term incentive plan (LTIP), which is a forward-looking program that measures long-term performance over the stated performance period. These awards are payable to the extent deemed earned in shares. The terms of the long-term incentive awards granted under the revised program may vary from year to year. Through December 31, 2025, awards under the 2025 Incentive Plan consisted of RSUs. The Company accounts for forfeitures of restricted and unrestricted common shares, RSUs, and stock options when they occur instead of estimating the forfeitures. Prior to the approval of the 2025 Incentive Plan, share based awards were provided to officers, non-officer employees, and trustees under the 2015 Incentive Plan approved by shareholders on September 15, 2015, as amended and restated on May 18, 2021 (the 2015 Incentive Plan), which allowed for awards in the form of cash, unrestricted and restricted common shares, stock options, stock …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS In determining the fair value of other financial instruments, Centerspace applies FASB ASC 820, Fair Value Measurement and Disclosures . Fair value hierarchy under ASC 820 distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (Levels 1 and 2) and the reporting entitys own assumptions about market participant data (Level 3). Fair value estimates may differ from the amounts that may ultimately be realized upon sale or disposition of the assets and liabilities. Fair Value Measurements on a Recurring Basis (in thousands) Balance Sheet Location Total Level 1 Level 2 Level 3 December 31, 2025 Assets Real estate related notes receivable Other assets $ 26,394 $ $ $ 26,394 December 31, 2024 Assets Real estate related notes receivable Other assets $ 25,092 $ $ $ 25,092 Centerspace utilizes an income approach with Level 3 inputs based on expected future cash flows to value the notes receivable. The unobservable inputs include market transactions for similar instruments, management estimates of comparable interest rates (range of 5.00% to 9.00%), and instrument specific credit risk (range of 0.5% to 1.0%). Changes in fair value of these receivables from period to period are reported in interest and other income on the Consolidated Statements of Operations and Comprehensive Income (Loss). (in thousands) Fair Value Measurement Other Gains (Losses) Interest Income Total Changes in Fair Valu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

The following table provides a brief description of Financial Accounting Standards Board (FASB) recent accounting standards updates (ASU). Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2024-03, Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses This ASU is intended to improve financial reporting by requiring public companies disclose additional information about specific expense categories in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The ASU will require additional disclosure but is not expected to have a material impact on the Consolidated Financial Statements. ASU 2025-10, Government Grants (Topic 832) - Accounting for Government Grants Received by Business Entities This ASU establishes authoritative guidance on the accounting for government grants received by business entities. This ASU is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. This ASU is not expected to have a material impact on the Consolidated Financial Statements. ASU 2025-11, Interim Reporting (Topic 270) - Narrow-Scope Improvements This ASU is intended to provide clarity on the current i …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT PLANS Centerspace sponsors a defined contribution 401(k) plan to provide retirement benefits for employees that meet minimum employment criteria. Centerspace currently matches, dollar for dollar, employee contributions to the 401(k) plan in an amount equal to up to 5.0% of the eligible wages of each participating employee. Matching contributions are fully vested when made. Centerspace recognized expense of approximately $1.4 million, $1.3 million, and $1.3 million, respectively, during the years ended December 31, 2025, 2024, and 2023.

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SEGMENTS Centerspace operates in a single reportable segment which includes the ownership, management, development, redevelopment, and acquisition of apartment communities. Each of the operating properties is considered a separate operating segment because each property earns revenues, incurs expenses, and has discrete financial information. The chief executive officer and chief financial officer are the chief operating decision-makers (CODM). The CODMs evaluate each propertys operating results using net operating income (NOI) to make decisions about resources to be allocated and to assess property performance, and do not group the properties based on geography, size, or type for this purpose. The Company defines NOI as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is an important measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation, amortization, financing costs, including interest and other income, losses on extinguishment of debt, interest expense, property management expenses, loss on litigation settlement, casualty gains (losses), and general and administrative expense. The apartment communities have similar long-term economic characteristics and similar operating characteristics, such as type and length of lease, services offered to residents, and property ma …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION Centerspace conducts a majority of its business activities through a consolidated operating partnership, Centerspace, LP, a North Dakota limited partnership (the Operating Partnership), as well as through a number of other consolidated subsidiary entities. The accompanying Consolidated Financial Statements include the Companys accounts and the accounts of all its subsidiaries in which it maintains a controlling interest, including the Operating Partnership, and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All intercompany balances and transactions are eliminated in consolidation. The Companys interest in the Operating Partnership as of December 31, 2025 and 2024 was 85.6% and 85.3%, respectively, of the limited partnership units of the Operating Partnership (Units), which includes 100% of the general partnership interest. The Consolidated Financial Statements also reflected the Operating Partnerships ownership of a joint venture entity in which the Operating Partnership had a general partner or controlling interest. The joint venture entity no longer held any assets or liabilities and was deconsolidated as of December 31, 2025. This entity was consolidated into the Companys operations with noncontrolling interests reflecting the noncontrolling partners share of ownership, income, and expenses. USE OF ESTIMATES The preparation of financial statements i …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

MEZZANINE EQUITY AND EQUITY Series D Preferred Units (Mezzanine Equity). Series D preferred units outstanding were 59,400 and 165,600 preferred units as of December 31, 2025 and 2024, respectively. The Series D preferred units have a par value of $100 per preferred unit. The Series D preferred unit holders receive a preferred distribution at the rate of 3.862% per year and have a put option which allows the holder to redeem any or all of the Series D preferred units for cash equal to the issuance price. During the year ended December 31, 2025, the Company redeemed 106,200 Series D preferred units for an aggregate redemption price of $10.6 million. Each Series D preferred unit is convertible, at the holders option, into 1.37931 Units. The Series D preferred units have an aggregate liquidation value of $5.9 million and $16.6 million as of December 31, 2025 and 2024, respectively. Changes in the redemption value are based on changes in the trading value of common shares and are charged to common shares on the Consolidated Balance Sheets each quarter. The holders of the Series D preferred units do not have voting rights and do not participate in income or loss. Distributions to Series D unitholders are presented in the Consolidated Statements of Equity within net income (loss) attributable to controlling interests and noncontrolling interests. Series C Preferred Shares . On August 30, 2024, we delivered notice to holders of our Series C preferred shares that we intended to redeem …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Litigation. Centerspace is involved in various lawsuits arising in the normal course of business and believes that such matters will not have a material adverse effect on the Condensed Consolidated Financial Statements. Environmental Matters. Under various federal, state, and local laws, ordinances, and regulations, a current or previous owner or operator of real estate may be liable for the costs of removal of, or remediation of, certain hazardous or toxic substances in, on, around, or under the property. While the Company currently has no knowledge of any material violation of environmental laws, ordinances, or regulations at any of the properties, there can be no assurance that areas of contamination will not be identified at any of its properties or that changes in environmental laws, regulations, or cleanup requirements would not result in material costs. Limitations on Taxable Dispositions. Twenty-eight properties, consisting of approximately 5,445 apartment homes, are subject to limitations on taxable dispositions under agreements entered into with certain sellers or contributors of the properties and are effective for varying periods. Centerspace does not believe that the agreements materially affect the conduct of its business or its decisions whether to dispose of these properties during the limitation period because it generally holds these and other properties for investment purposes rather than for sale. In addition, where the Compan …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The following table summarizes the Companys secured and unsecured debt at September 30, 2025 and December 31, 2024. (in thousands) September 30, 2025 December 31, 2024 Carrying Amount Weighted Average Interest Rate Carrying Amount Weighted Average Interest Rate Weighted Average Maturity in Years at September 30, 2025 Lines of credit (1) $ 222,500 5.51 % $ 47,359 5.86 % 2.82 Unsecured senior notes (2)(4) 300,000 3.12 % 300,000 3.12 % 4.87 Unsecured debt 522,500 347,359 4.00 Mortgages payable - Fannie Mae credit facility (4) 198,850 2.78 % 198,850 2.78 % 5.81 Mortgages payable - other (3)(4)(5)(6) 455,934 3.87 % 420,414 4.02 % 10.05 Secured debt 654,784 619,264 8.77 Subtotal 1,177,284 3.80 % 966,623 3.58 % 6.65 Deferred financing costs, premiums, and discounts on mortgages payable, net (32,710) (10,758) Deferred financing costs on notes payable, net (436) (480) Total debt $ 1,144,138 $ 955,385 (1) Interest rates on lines of credit are variable and exclude any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps. (2) Included within notes payable on the Condensed Consolidated Balance Sheets. (3) Represents apartment communities encumbered by mortgages; 13 at September 30, 2025 and 15 at December 31, 2024. (4) Interest rate is fixed. (5) Includes mortgages payable of $12.7 million as of September 30, 2025, associated with apartment communities classified as held for sale (6) …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the disaggregation of revenue streams for the three and nine months ended September 30, 2025 and 2024: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, Revenue Stream Applicable Standard 2025 2024 2025 2024 Fixed lease income - operating leases Leases $ 65,984 $ 60,637 $ 191,286 $ 181,066 Variable lease income - operating leases Leases 4,040 3,172 12,102 10,017 Other property revenue Revenue from contracts with customers 1,375 1,216 3,653 3,491 Total revenue $ 71,399 $ 65,025 $ 207,041 $ 194,574

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SHARE-BASED COMPENSATION Share-based awards are provided to officers, non-officer employees, and trustees under the 2025 Incentive Plan approved by shareholders on May 14, 2025 (the 2025 Incentive Plan), which allows for awards in the form of cash, unrestricted and restricted common shares, stock options, stock appreciation rights, and RSUs up to an aggregate of 650,000 shares over the ten-year period in which the plan is in effect. Under the 2025 Incentive Plan, officers and non-officer employees may earn share awards under a long-term incentive plan (LTIP), which is a forward-looking program that measures long-term performance over the stated performance period. These awards are payable to the extent deemed earned in shares. The terms of the long-term incentive awards granted under the revised program may vary from year to year. Through September 30, 2025, awards under the 2025 Incentive Plan consisted of RSUs. The Company accounts for forfeitures of restricted and unrestricted common shares, RSUs, and stock options when they occur instead of estimating the forfeitures. Prior to the approval of the 2025 Incentive Plan, share based awards were provided to officers, non-officer employees, and trustees under the 2015 Incentive Plan approved by shareholders on September 15, 2015, as amended and restated on May 18, 2021 (the 2015 Incentive Plan), which allowed for awards in the form of cash, unrestricted and restricted common shares, stock options, stock appreciation rights, and …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Cash and cash equivalents, restricted cash, accounts payable, accrued expenses, and other liabilities are carried at amounts that reasonably approximate their fair value due to their short-term nature. For variable rate line of credit debt that re-prices frequently, fair values are based on carrying values. In determining the fair value of other financial instruments, Centerspace applies FASB ASC 820, Fair Value Measurement and Disclosures. Fair value hierarchy under ASC 820 distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (Levels 1 and 2) and the reporting entitys own assumptions about market participant data (Level 3). Fair value estimates may differ from the amounts that may ultimately be realized upon sale or disposition of the assets and liabilities. Fair Value Measurements on a Recurring Basis (in thousands) Balance Sheet Location Total Level 1 Level 2 Level 3 September 30, 2025 Assets Real estate related notes receivable Other assets $ 27,466 $ 27,466 December 31, 2024 Assets Real estate related notes receivable Other assets $ 25,092 $ 25,092 Centerspace utilizes an income approach with Level 3 inputs based on expected future cash flows to value the notes receivable. The unobservable inputs include market transactions for similar instruments, management estimates of comparable interest rates (range of 5.00% to 9.00%), and instrument specific credit risk (range of …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

The following table provides a brief description of Financial Accounting Standards Board (FASB) recent accounting standards updates (ASU). Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2024-03, Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses; ASU 2025-01 , Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) - Clarifying the Effective Date This ASU is intended to improve financial reporting by requiring public companies disclose additional information about specific expense categories in the notes to the financial statements. In 2025, an additional ASU was issued to provide clarification on the effective date of the original ASU. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The ASU will require additional disclosure but is not expected to have a material impact on the Company. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

SEGMENTS Centerspace operates in a single reportable segment which includes the ownership, management, development, redevelopment, and acquisition of apartment communities. Each of the operating properties is considered a separate operating segment because each property earns revenues, incurs expenses, and has discrete financial information. The chief executive officer and chief financial officer are the chief operating decision-makers (CODM). The CODMs evaluate each propertys operating results, using net operating income (NOI) to make decisions about resources to be allocated and to assess property performance, and do not group the properties based on geography, size, or type for this purpose. The Company defines NOI as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is an important measure of operating performance for real estate because it provides a measure of operations that excludes gain (loss) on the sale of real estate and other investments, impairment, depreciation, amortization, financing costs, including interest and other income, losses on extinguishment of debt, and interest expense, property management expenses, loss on litigation settlement, casualty gains (losses), and general and administrative expense. The apartment communities have similar long-term economic characteristics and similar operating characteristics, such as type and length of lease, services offered to residents, and proper …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION Centerspace conducts a majority of its business activities through a consolidated operating partnership, Centerspace, LP, a North Dakota limited partnership (the Operating Partnership), as well as through a number of other consolidated subsidiary entities. The accompanying Condensed Consolidated Financial Statements include the Companys accounts and the accounts of all its subsidiaries in which it maintains a controlling interest, including the Operating Partnership. All intercompany balances and transactions are eliminated in consolidation. The Condensed Consolidated Financial Statements also reflect the Operating Partnerships ownership of a joint venture entity in which the Operating Partnership has a general partner or controlling interest. This entity is consolidated into the Companys operations, with noncontrolling interests reflecting the noncontrolling partners share of ownership, income, and expenses. UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Centerspaces unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with GAA …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

MEZZANINE EQUITY AND EQUITY Series D Preferred Units (Mezzanine Equity). Series D preferred units outstanding were 59,400 and 165,600 preferred units at September 30, 2025 and December 31, 2024, respectively. The Series D preferred units have a par value of $100 per preferred unit. The Series D preferred unit holders receive a preferred distribution at the rate of 3.862% per year and have a put option which allows the holder to redeem any or all of the Series D preferred units for cash equal to the issuance price. During the three and nine months ended September 30, 2025, the Company redeemed 53,700 and 106,200 Series D preferred units, respectively, for an aggregate redemption price of $5.4 million and $10.6 million, respectively. Each Series D preferred unit is convertible, at the holders option, into 1.37931 Units. The Series D preferred units had an aggregate liquidation value of $5.9 million and $16.6 million at September 30, 2025 and December 31, 2024, respectively. Changes in the redemption value are based on changes in the trading value of common shares and are charged to common shares on the Condensed Consolidated Balance Sheets each quarter. The holders of the Series D preferred units do not have voting rights. Distributions to Series D unitholders are presented in the Condensed Consolidated Statements of Equity within net income (loss) attributable to controlling interests and noncontrolling interests. Series C Preferred Shares. On August 30, 2024, we delivered not …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing