Release Date: February 19, 2025
- Core FFO per Share: $4.88 for the year 2024; $1.21 for Q4 2024.
- Same-Store NOI Growth: Sector-leading growth, specific percentage not provided.
- Same-Store Revenue Growth: 3.1% increase in Q4 2024; 3.3% for the full year 2024.
- Same-Store Expenses: Increased by 4.6% year over year in Q4 2024.
- Occupancy Rate: 95.5% in Q4 2024, a 70 basis point improvement year over year.
- Dividend Increase: Quarterly dividend increased to $0.77 per share.
- Blended Leasing Spreads: Positive 45 basis points in Q4 2024.
- 2025 Core FFO Guidance: $4.98 at the midpoint, representing roughly 2% growth over 2024.
- 2025 Same-Store Revenue Growth Guidance: Expected to grow by 2.5%.
- 2025 Same-Store Expense Growth Guidance: Expected to grow by 3%.
- Interest Expense Guidance for 2025: Expected to range between $38.8 million and $39.4 million.
- Capital Expenditures for 2025: Value add expenditures expected between $16 million to $18 million.
- Weighted Average Debt Cost: 3.6% with a weighted average time to maturity of 5.6 years.
Positive Points
- reported a strong financial performance in 2024, with a core FFO of $4.88 per share, driven by sector-leading same-store NOI growth.
- The company successfully expanded its portfolio by acquiring properties in Denver and Fort Collins, enhancing operational efficiency and margins.
- achieved a high occupancy rate of 95.5% in Q4 2024, marking a 70 basis point improvement over the previous year.
- The company increased its quarterly dividend to $0.77 per share, reflecting confidence in its distributable cash flow.
- received six industry awards and was named a Great Workplace by the Minneapolis Star Tribune for the fifth consecutive year, highlighting strong team performance and resident satisfaction.
Negative Points
- Same-store new lease tradeouts were down 3.3% in Q4 2024, indicating challenges in maintaining new lease pricing.
- The company faced a 4.6% year-over-year increase in same-store expenses, primarily due to higher controllable expenses like repairs and maintenance.
- In Denver, blended leasing spreads were down 140 basis points, reflecting supply pressures in the market.
- Interest expense is expected to increase in 2025 due to debt assumed from the Lydian acquisition, impacting financial flexibility.
- The transaction market remains muted due to interest rate volatility and a bid-ask spread, limiting acquisition opportunities for Centerspace.
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