Centerspace reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. Total revenue for the three months reached $65.0 million, a slight increase of $457,000 (0.7%) from $64.6 million in the same period of 2023. However, for the nine months, revenue decreased to $194.6 million from $197.2 million, reflecting a decline of $2.7 million (1.4%).
The company's operating income for the third quarter fell significantly to $6.4 million, down 63.5% from $17.4 million in the prior year. For the nine months, operating income also decreased sharply to $17.6 million from $86.0 million, a decline of 79.5%. This downturn in profitability was mirrored in net income, which reported a loss of $1.9 million for the third quarter, compared to a profit of $9.2 million in 2023. For the nine months, net income dropped to a loss of $8.4 million from a profit of $59.1 million, marking a substantial decrease of $67.5 million (114.2%).
The decline in profitability was attributed to several factors, including a lack of gains from real estate sales, with no gains recognized in the third quarter of 2024 compared to $11.2 million in the same period of 2023. Additionally, the company recorded a loss of $577,000 on real estate sales for the nine months, contrasting sharply with a gain of $71.3 million in the previous year.
Centerspace's total assets as of September 30, 2024, were reported at $1.9 billion, a decrease from $1.9 billion at the end of 2023. Cash and cash equivalents increased to $14.5 million from $8.6 million, while total shareholders' equity decreased to $672.5 million from $709.8 million.
Strategically, Centerspace completed the redemption of all outstanding Series C preferred shares for $97.0 million on September 30, 2024. The company also amended its equity distribution agreement, increasing the maximum offering price of common shares available for sale from $250 million to $500 million. Furthermore, Centerspace entered into a new line of credit agreement in September 2024 with a borrowing capacity of $10 million.
The company continues to focus on its real estate portfolio, owning interests in 70 apartment communities with a total of 12,883 apartment homes as of September 30, 2024. Despite the challenges faced in the current fiscal period, Centerspace remains committed to its operational strategies and financial management.
About CENTERSPACE
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