Centerspace: Operating Momentum Improves As Shares Underperform (Rating Upgrade)

May 23, 2025 4:26 PM ETCenterspace (CSR) StockVNQ, CSR
Ivo Kolchev
1.05K Followers
(8min)

Summary

  • Centerspace is a residential REIT managing 13,012 apartments, primarily in Minneapolis, Denver, and North Dakota.
  • Q1 2025 and April 2025 leasing spreads point to a strong improvement relative to Q4 2024.
  • Even so, Core FFO growth remains muted due to past share issuance and higher property taxes.
  • Centerspace employs conservative leverage and trades at a discount to private market transactions, warranting a Strong Buy rating.
  • Key risks to consider include the notable weakness in the Colorado portfolio and the durability of the recent improvement in leasing spreads.
Minneapolis, Minnesota, USA SKyline at Dusk

Sean Pavone

Introduction

So far in 2025, Centerspace (NYSE:CSR) has marginally underperformed the Vanguard Real Estate Index Fund ETF (VNQ), delivering a loss of ~6%:

I previously covered CSR back in February 2025 with a Buy rating, highlighting the REIT's attractive valuation even

This article was written by

Ivo Kolchev
1.05K Followers
I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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