Q4 2025 Centerspace Earnings Call

February 18, 2026

Speaker #1: Hello everyone, and thank you for joining the CENTERSPACE Q4 2025 earnings call. My name is Gabrielle, and I will be coordinating your call today.

Operator: Hello, everyone, and thank you for joining the Centerspace Q4 2025 earnings call. My name is Gabrielle, and I will be coordinating your call today. During the presentation, you can register a question by pressing star, followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad. I will now hand over to your host, Josh Klaetsch. Please go ahead.

Speaker #1: During the presentation, you can register questions by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 on your telephone keypad.

Speaker #1: I will now hand over to your host, Josh Klaetsch. Please go ahead.

Speaker #2: Thank you. Good morning, everyone. CENTERSPACE has formed 10-K for the year ended December 31st, 2025, was filed with the FEC yesterday after the market closed.

Josh Klaetsch: Thank you, and good morning, everyone. Centerspace's Form 10-K for the year ended 31 December 2025 was filed with the SEC yesterday after the market closed. Additionally, our earnings release and supplemental disclosure package have been posted to our website at centerspacehomes.com and filed on Form 8-K. It's important to note that today's remarks will include statements about our business outlook and other forward-looking statements that are based on management's current views and assumptions. These statements are subject to risks and uncertainties discussed in our filing under the section titled Risk Factors, and in our other filings with the SEC. We cannot guarantee that any forward-looking statements will materialize, and you're cautioned not to place undue reliance on these forward-looking statements. Please refer to our earnings release for reconciliations of any non-GAAP information which may be discussed on today's call.

Speaker #2: Additionally, our earnings release and supplemental disclosure package have been posted to our website at CENTERSPACEhomes.com and filed on form 10-K. It's important to note that today's remarks will include statements about our business outlook and other forward-looking statements that are based on management's current views and assumptions.

Speaker #2: These statements are subject to risks and uncertainties discussed in our filing under the section titled Risk Factors and in our other filings for the FEC.

Speaker #2: We cannot guarantee that any forward-looking statements will materialize, and your cautions not to place undue reliance on these forward-looking statements. Please refer to our earnings release for reconciliations of any non-GAAP information which may be discussed on today's call.

Speaker #2: I'll now turn it over to CENTERSPACE's president and CEO, Anne Olson, for the company's prepared remarks.

Josh Klaetsch: I'll now turn it over to Centerspace's President and CEO, Anne Olson, for the company's prepared remarks.

Speaker #3: Thank you, Josh, and good morning, everyone. I'm here with our SVP of Investments and Capital Markets, Grant Campbell, and our CFO, Bhairav Patel. We're coming to you today live from our annual leadership conference, where our operating team is together to celebrate our 2025 wins and prepare to meet our 2026 goals.

Anne Olson: Thank you, Josh, and good morning, everyone. I'm here with our SVP of Investments in Capital Markets, Grant Campbell, and our CFO, Bhairav Patel. We're coming to you today live from our annual leadership conference, where our operating team is together to celebrate our 2025 wins and prepare to meet our 2026 goals. I'll start by addressing our strategic review. In November, we shared that our board of trustees is overseeing a formal evaluation of strategic alternatives to maximize shareholder value. This process was initiated from a position of strength, having transformed Centerspace into a pure-play multifamily REIT while improving profitability, operating scale, and our balance sheet. Our strategic review underscores our commitment to acting in the best interests of our shareholders, and this evaluation remains ongoing.

Speaker #3: I'll start by addressing our strategic review. In November, we shared that our board of trustees is overseeing a formal evaluation of strategic alternatives to maximize shareholder value.

Speaker #3: This process was initiated from a position of strength, having transformed Centerspace into a pure-play multifamily REIT while improving profitability, operating scale, and our balance sheet.

Speaker #3: Our strategic review underscores our commitment to acting in the best interests of our shareholders and this evaluation remains ongoing. As we said when we announced this evaluation, there can be no assurance that this process will result in CENTERSPACE pursuing a transaction or any other strategic outcome.

Anne Olson: As we said when we announced this evaluation, there can be no assurance that this process will result in Centerspace pursuing a transaction or any other strategic outcome, and we do not intend to provide further details on the process in connection with the discussion of our fourth quarter earnings results today. We sincerely appreciate the thoughtful conversations we've had with shareholders thus far, and thank you for your understanding today as we keep our comments focused on our results and outlook. Centerspace's fourth quarter capped a year of progress for the company and demonstrated the health and resilience of our markets. Importantly, our results for the year showed that our portfolio and approach yields results. With our Same-Store NOI growth of 3.5% outpacing peers on the back of steady occupancy and expense discipline.

Speaker #3: And we do not intend to provide further details on the process in connection with the discussion of our fourth-quarter earnings results today. We sincerely appreciate the thoughtful conversations we've had with shareholders thus far, and thank you for your understanding today as we keep our comments focused on our results and outlook.

Speaker #3: CENTERSPACE's fourth quarter capped a year of progress for the company, and demonstrated the health and resilience of our market. Importantly, our results for the year showed that our portfolio and approach yields results.

Speaker #3: With our same-store and year-over-year growth of 3.5%, outpacing peers on the back of steady occupancy and extensive discipline. Rent growth was strong, reflecting the durability of our resident base and our exceptional focus on resident experience and optimization of revenue.

Anne Olson: Rent growth was strong, reflecting the durability of our resident base and our exceptional focus on resident experience and optimization of revenue. Operationally, our portfolio benefits from Midwest exposure. Blended leasing spreads in the quarter were up 10 basis points. While new lease spreads were down 4.8%, renewal spreads showed their highest growth of the year at 3.9%, and retention of 55.2% moved the blended rate into positive territory. Retention for the full year was 58.2%, demonstrating relative affordability for our residents. Favorable absorption in Minneapolis, our largest market, led to positive blended increases of 1.1%, while in our other markets, North Dakota once again led the portfolio with blended increases of 4.5% in the quarter.

Speaker #3: Operationally, our portfolio benefits from Midwest exposure. Blended leasing spreads in the quarter were up 10 basis points. While new lease spreads were down 4.8%, renewal spreads showed their highest growth of the year at 3.9%.

Speaker #3: And retention of 55.2% moved the blended rate into positive territory. Retention for the full year was 58.2%, demonstrating relative affordability for our residents. Favorable absorption in Minneapolis, our largest market, led to positive blended increases of 1.1%, while in our other markets, North Dakota once again led the portfolio with blended increases of 4.5% in the quarter.

Speaker #3: In Denver, supply continues to put downward pressure on rent, with Q4 blended rent tradeouts down 4.3%. Absorption in the market has continued at rates above historical norms, with 2025 the second-highest year of absorption in the post-pandemic era.

Anne Olson: In Denver, supply continues to put downward pressure on rents, with Q4 blended rent trade outs down 4.3%. Absorption in the market has continued at rates above historical norms, with 2025 the second highest year of absorption in the post-pandemic era. Additionally, new construction starts in the market have plummeted, tapering deliveries, and we expect Denver fundamentals to normalize as we progress through 2026 and into 2027. Before I turn it over to Grant to comment on the state of the transaction market and review our 2025 transactions, I'd like to offer a special thanks to many of you for your well wishes for Minneapolis and our communities there, and also to thank our Minneapolis team and all of our teams for their dedicated service to their communities and community members. Grant?

Speaker #3: Additionally, new construction starts in the markets have plummeted, tapering deliveries and we expect Denver fundamentals to normalize as we progress through 2026 and into 2027.

Speaker #3: Before I turn it over to Grant to comment on the state of the transaction market and review our 2025 transactions, I'd like to offer a special thanks to many of you for your well wishes for Minneapolis and our communities there, and also to thank our Minneapolis team and all of our teams for their dedicated service to their communities and community members.

Speaker #3: Grant.

Speaker #2: Thanks, Anne, and good morning, everyone. In 2025, CENTERSPACE executed a strategic transaction program that continued reshaping our portfolio while maintaining balance sheet strength. We executed $493 million of transaction activity which included entering the Salt Lake City market, expanding our presence in Fort Collins, exiting the St.

Grant Campbell: Thanks, Anne, and good morning, everyone. In 2025, Centerspace executed a strategic transaction program that continued reshaping our portfolio while maintaining balance sheet strength. We executed $493 million of transaction activity, which included entering the Salt Lake City market, expanding our presence in Fort Collins, exiting the St. Cloud, Minnesota market, and pruning our holdings in the city of Minneapolis. Over time, we have undertaken initiatives to improve our portfolio, and these 2025 transactions continue that, resulting in further diversification of our cash flow and improvements to our portfolio's average monthly rent per home, homes per community, age, and operating margin. Alongside these property transactions, Centerspace demonstrated disciplined balance sheet and shareholder capital management.

Speaker #2: Cloud, Minnesota market, and pruning our holdings in the city of Minneapolis. Over time, we have undertaken initiatives to improve our portfolio, and these 2025 transactions continue that.

Speaker #2: Resulting in further diversification of our cash flow and improvements to our portfolio's average monthly rent per home, homes per community, age, and operating margin.

Speaker #2: Alongside these property transactions, CENTERSPACE demonstrated disciplined balance sheet and shareholder capital management. The company expanded its unsecured credit facility by 150 million dollars and we assumed 76 million of attractively priced long-term debt in conjunction with our Fort Collins acquisition.

Grant Campbell: The company expanded its unsecured credit facility by $150 million, and we assumed $76 million of attractively priced long-term debt in conjunction with our Fort Collins acquisition, enhancing our liquidity and improving our debt profile. At the same time, we repurchased 3.5 million of common shares, reinforcing our belief in the value of our stock and willingness to explore multiple avenues to unlock value. Looking ahead to 2026, we expect momentum in many of our markets, driven by measured supply profiles, resident financial strength, and strong local economies. In Minneapolis, on-the-ground fundamentals are positioned well, compare favorably to most markets in the country, and we anticipate this year to be a year of stability and growth. In Denver, solid absorption is outweighed by the volume of new deliveries from late 2024 through 2025.

Speaker #2: Enhancing our liquidity and improving our debt profile. At the same time, we repurchased 3.5 million common shares, reinforcing our belief in the value of our stock and willingness to explore multiple avenues to unlock value.

Speaker #2: Looking ahead to 2026, we expect momentum in many of our markets, driven by measured supply profiles, resident financial strength, and strong local economies. In Minneapolis, on-the-ground fundamentals are positioned well, compare favorably to most markets in the country, and we anticipate this year to be a year of stability and growth.

Speaker #2: In Denver, solid absorption is outweighed by the volume of new deliveries from late 2024 through 2025. These supply dynamics, coupled with slow job growth and recent regulatory changes, have generally put Denver's transaction market in a wait-and-see environment.

Grant Campbell: These supply dynamics, coupled with slow job growth and recent regulatory changes, has generally put Denver's transaction market in a wait-and-see environment. Premium assets and locations are still commanding strong pricing, including recent trades at sub 5% in-place cap rates, though the divide between premium profile and the rest of the market has widened. We believe this theme will continue until growth indicators translate into hard data, providing investors more conviction in underwriting strengthening fundamentals. I'll now turn it over to Bhairav to discuss our financial results and guidance.

Speaker #2: Premium assets and locations are still commanding strong pricing, including recent trades at sub-5% in-place cap rates, though the divide between premium profile and the rest of the market has widened.

Speaker #2: We believe this theme will continue until growth indicators translate into hard data, providing investors more conviction in underwriting strengthening fundamentals. I'll now turn it over to Barab to discuss our financial results and guidance.

Speaker #4: Thanks, Grant. And hello, everyone. Last night, we reported fourth quarter core FFO of $1.25 per diluted share, driven by a 4.8% year-over-year increase in Q4 same-store and Y.

Bhairav Patel: Thanks, Grant, and hello, everyone. Last night, we reported Q4 Core FFO of $1.25 per diluted share, driven by a 4.8% year-over-year increase in Q4 same-store NOI. Revenues from same-store communities increased by 1% compared to the same quarter in 2024, driven by a 1.5% increase in average monthly revenue per occupied home, which offset a 40 basis point decline in occupancy. On the same-store expense side, Q4 numbers were down 5.1% year-over-year, with favorability in both controllable and non-controllable expenses. On the controllable side, decreases in repairs and maintenance, as well as administrative and marketing costs, were both drivers of the improvement. For non-controllable expenses, favorable tax assessments drove much of the improvement. Turning to 2026, we introduced our expectations for the year in last night's press release.

Speaker #4: Revenues from same-store communities increased by 1% compared to the same quarter in 2024, driven by a 1.5% increase in average monthly revenue per occupied home, which offset a 40-basis-point decline in occupancy.

Speaker #4: On the same-store expense side, Q4 numbers were down 5.1% year-over-year, with favorability in both controllable and non-controllable expenses. On the controllable side, decreases in repairs and maintenance, as well as administrative and marketing costs, were both drivers of the improvement.

Speaker #4: For non-controllable expenses, favorable tax assessments drove much of the improvement. Turning to 2026, we introduced our expectations for the year in last night's press release.

Speaker #4: We expect core FFO per diluted share to remain stable year-over-year, with an expectation of full-year core FFO per share of $4.93 at the midpoint.

Bhairav Patel: We expect Core FFO per diluted share to remain stable year over year, with an expectation of full-year Core FFO per share of $4.93 at the midpoint. Guidance assumes that at their midpoints, Same-Store NOI increases by 75 basis points, same-store revenues increase 88 basis points, and same-store expenses increase 150 basis points. Revenue growth assumes Blended Leasing Spreads of approximately 2%, with occupancy in the mid-95% range and retention of about 52%. We expect blended spreads will again be highest in our North Dakota communities, followed by Minneapolis and Omaha. That strength will bolster our Denver portfolio, where we expect spreads to be down for the year, though improving as the year progresses. Regulatory changes are expected to temper revenue growth in our Colorado portfolio, with expense recoveries expected to be down nearly $1 million.

Speaker #4: Guidance assumes that, at their midpoint, same-store NOI increases by 75 basis points, same-store revenues increase 88 basis points, and same-store expenses increase 150 basis points.

Speaker #4: Revenue growth assumes blended leasing spreads of approximately 2%, with occupancy in the mid-95% range and retention of about 52%. We expect blended spreads will again be highest in our North Dakota communities, followed by Minneapolis and Omaha.

Speaker #4: Back strength will bolster our Denver portfolio, where we expect spreads to be down for the year, though improving as the year progresses. Regulatory changes are expected to temper revenue growth in our Colorado portfolio, with expense recoveries expected to be down nearly $1 million.

Speaker #4: Within expenses, controllables are expected to increase by 1%, while non-controllables increase by 2%, both at their midpoints. I also want to highlight our expectation for the amortization of assumed debt, which we expect to be $1.5 million for the year.

Bhairav Patel: Within expenses, controllables are expected to increase by 1%, while non-controllables increase by 2%, both at their midpoints. I also want to highlight our expectation for the amortization of assumed debt, which we expect to be $1.5 million for the year. This amount will be higher in the first half of the year and then trail off in the second half upon the maturity of one of our mortgages in June. On CapEx, we expect value add expenditures of $2.5 million to $12.5 million, with recurring CapEx per home of $1,300 at the midpoint. Our guidance does not include any acquisitions or dispositions. Turning to our balance sheet. Following the Minneapolis disposition we completed in November, our leverage profile improved in the quarter to 7.5x net debt to EBITDA.

Speaker #4: This amount will be higher in the first half of the year and then trail off in the second half upon the maturity of one of our mortgages in June.

Speaker #4: On capex, we expect value-added expenditures of $2.5 million to $12.5 million, with recurring capex per home of $1,300 at the midpoint. Our guidance does not include any acquisitions or dispositions.

Speaker #4: Turning to our balance sheet, following the Minneapolis disposition we completed in November, our leverage profile improved in the quarter to 7.5 times net debt to EBITDA.

Speaker #4: We have a well-laddered debt maturity schedule, with a weighted average rate of 3.6% and weighted average maturity of 6.9 years. Our liquidity remains strong, with nearly $268 million of cash and line of credit availability compared to 99.2 million of debt maturing over the next two years.

Bhairav Patel: We have a well-laddered debt maturity schedule with a weighted average rate of 3.6% and weighted average maturity of 6.9 years. Our liquidity remains strong, with nearly $268 million of cash and line of credit availability, compared to $99.2 million of debt maturing over the next two years. To conclude, this was a successful year for Centerspace, with our results demonstrating our commitments to both operational excellence and financial discipline, and positioning us well for 2026. Operator, please open the line for questions.

Speaker #4: To conclude, this was a successful year for CENTERSPACE with our results demonstrating our commitments to both operational excellence and financial discipline and positioning us well for 2026.

Speaker #4: Operator, please open the line for questions.

Speaker #5: Thank you. To ask a question, please press star, followed by 1 on your telephone keypad now. If you change your mind, please press star, followed by 2.

Operator: ... Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. Our first question is from Jamie Feldman from Wells Fargo. Your line is now open. Please go ahead.

Speaker #5: When preparing to ask a question, please ensure your device is unmuted locally. Our first question is from Jamie Feldman from Wells Fargo. Your line is now open.

Speaker #5: Please go ahead.

Speaker #6: Hi, thank you. This is Conner on with Jamie. Can you talk us through some of your assumptions within the 2026 revenue guide? It'd be helpful to understand your blended lease rate growth outlook and how that breaks out between new and renewals, and any contribution from other income.

[Analyst] (Wells Fargo): Hi, thank you. This is Connor on with Jamie. Can you talk us through some of your assumptions within the 2026 revenue guide? It'd be helpful to understand your blended lease rate growth outlook, and how that breaks out between new and renewals, and any contribution from other income.

Connor Farrell: Hi, thank you. This is Connor on with Jamie. Can you talk us through some of your assumptions within the 2026 revenue guide? It'd be helpful to understand your blended lease rate growth outlook, and how that breaks out between new and renewals, and any contribution from other income.

Speaker #7: Sure. Good morning. Yeah. So, let's start with the building blocks for 2026. We had an earning of about 80 basis points at the end of the year, so that will be the first piece that goes into revenue.

Bhairav Patel: Sure. Good morning. Yeah, so let's start with the building blocks for 2026. You know, we had an earning of about 80 basis points at the end, at the end of the year, so that'll be the first piece, you know, that goes into revenue. We expect blended rent growth to be in the mid 1% range, resulting in about half of that showing up in revenue for 2026, and that will be offset by about a 40 basis point year-over-year decline in RUBS, or about $1 million, due to the change in regulations in Colorado. And then, our base case occupancy is a little bit lower than it was in 2025, so that contributes about 30 basis points. So that gives you about 90 basis points of year-over-year revenue growth.

Speaker #7: We expect blended rent growth to be in the mid-1% range, resulting in about half of that showing up in revenue for 2026. And that will be offset by about a 40 basis point year-over-year decline in RUBS, or about $1 million, due to the change in regulations in Colorado.

Speaker #7: And then our base case occupancy is a little bit lower than it was in 2025, so that contributes about 30 basis points. So that gives you about 90 basis points of year-over-year revenue growth.

Speaker #7: From a market perspective, we expect our Midwest markets to deliver growth that is in line with what we saw in 2025, with Denver obviously remaining pressured as the absorption of units delivered in 2024 and 2025 continues.

Bhairav Patel: From a market perspective, we expect our Midwest markets to deliver growth that is in line with what we saw in 2025, with Denver obviously remaining pressured as the absorption of units delivered in 2024 and 2025 continues. We expect renewals to once again lead the way with renewal trade outs in the high 2% range. We do expect new lease trade outs to come in better than 2025 in most of the Midwest markets. Markets like North Dakota, Omaha, and other Mountain West are not really expected to see any supply, and the demand there remains robust. Even in markets like Rochester that saw some pressure in the second half of the year, we seem to be coming out on the other side, and we expect a strong showing in 2026 from that market.

Speaker #7: We expect renewals to once again lead the way with renewal tradeouts in the high 2% range. And we do expect new lease tradeouts to come in better than 2025, and most of the Midwest markets, markets like North Dakota, Omaha, and other Mountain West, are not really expected to see any supply.

Speaker #7: And the demand there remains robust. Even in markets like Rochester, that's also pressure in the second half of the year. We seem to be coming out on the other side.

Speaker #7: And we expect a strong showing in 2026 from that market. Minneapolis has shown pretty solid absorption in 2025, and is expected to improve in 2026, given that the deliveries will go down significantly.

Bhairav Patel: Minneapolis has shown, like, pretty solid absorption in 2025, and is expected to improve in 2026, given that the deliveries will go down significantly. So, you know, that's really what's underpinning our revenue guidance.

Speaker #7: So that's really what's underpinning our revenue guidance.

Speaker #6: Thank you. And maybe if we could talk a little bit more about what you're seeing in Denver. How do you see that market playing out in 2026?

[Analyst] (Wells Fargo): Thank you. And, maybe if we could talk a little bit more about what you're seeing in Denver. How do you see that market playing out in 2026? And any thoughts on when we could see an inflection, particularly in new lease rate growth?

Connor Farrell: Thank you. And, maybe if we could talk a little bit more about what you're seeing in Denver. How do you see that market playing out in 2026? And any thoughts on when we could see an inflection, particularly in new lease rate growth?

Speaker #6: And any thoughts on when we could see an inflection, particularly in new lease rate growth?

Speaker #7: Yeah. So I'll start off and maybe end and chime in. But with respect to our base case, we expect some concessionary pressure to continue.

Bhairav Patel: Yeah, so I'll start off, and maybe Anne can chime in. But with respect to our base case, we expect some concessionary pressure to continue. In the first half of 2026, we are seeing on average about 2 to 4 weeks of concessions on a per move-in basis, which we do expect will continue at least for the first half of the year. And that's really going to pressure year-over-year revenue growth. Another note on concessions is, you know, any concessions we gave out in the second half also get amortized over the lease term. So we'll see some of that pressure in 2026 as well. But overall, we do expect things to improve as we go through the year and work through some of the supply there.

Speaker #7: In the first half of 2026, we are seeing on average about 2 to 4 weeks of concessions on a per move-in basis, which we do expect will continue at least for the first half of the year.

Speaker #7: And that's really going to pressure year-over-year revenue growth. Another note on concessions is any concessions we gave out in the second half also get amortized.

Speaker #7: Over the lease terms, so we'll see some of that pressure in 2026 as well. But overall, we do expect things to improve as we go through the year and work through some of the supply there.

Bhairav Patel: The deliveries are supposed to be the lowest, since we've, you know, in the last few years. But I'll hand it off to Grant to comment a little bit on that in detail.

Speaker #7: The deliveries are supposed to be the lowest we've seen in the last few years. But I'll hand it off to Grant to comment a little bit on that in detail.

Bhairav Patel: The deliveries are supposed to be the lowest, since we've, you know, in the last few years. But I'll hand it off to Grant to comment a little bit on that in detail.

Speaker #8: Yeah. Thanks, Brad. Good morning. Regarding supply dynamics, about 16,000 units were delivered in 2025. An additional 9,000 units will be coming online or delivered in '26.

[Company Representative] (Centerspace): Yeah. Thanks, Rob. Good morning. Regarding supply dynamics, about 16,000 units were delivered in 2025. An additional 9,000 units will be coming online or delivered in 2026. So, some continued lease-up activity that that market will need to work through. When you look at forecasted, you know, supply pipeline, new construction starts, 2027 data, you know, really falling off in terms of new deliveries. So we do think that'll provide tailwinds for the market. When you look at foot traffic in downtown Denver, based on a couple different measurements, you know, we are seeing increases at year-end 2025, foot traffic levels that are comparable to 2019 data, so that gives us some positivity that things are turning.

Grant Campbell: Yeah. Thanks, Rob. Good morning. Regarding supply dynamics, about 16,000 units were delivered in 2025. An additional 9,000 units will be coming online or delivered in 2026. So, some continued lease-up activity that that market will need to work through. When you look at forecasted, you know, supply pipeline, new construction starts, 2027 data, you know, really falling off in terms of new deliveries. So we do think that'll provide tailwinds for the market. When you look at foot traffic in downtown Denver, based on a couple different measurements, you know, we are seeing increases at year-end 2025, foot traffic levels that are comparable to 2019 data, so that gives us some positivity that things are turning.

Speaker #8: So some continued lease-up activity that that market will need to work through. When you look at forecasted supply pipeline, new construction starts, 2027 data, really falling off in terms of new deliveries.

Speaker #8: So, we do think that'll provide tailwinds to the market. When you look at foot traffic in downtown Denver, based on a couple of different measurements, we are seeing increases at year-end 2025 foot traffic levels that are comparable to 2019 data.

Speaker #8: So that gives us some positivity that things are turning. There's also been some significant investments in bond funding without a property tax increase. That has been passed for a whole host of projects across the city: parks, bike lanes, expansions to libraries, etc.

[Company Representative] (Centerspace): There's also been some significant investments in bond funding, without a property tax increase, that has been passed for, you know, a whole host of projects across the city, parks, bike lanes, expansions to libraries, et cetera. So we do feel like, you know, the wheel is incrementally turning, looking to 2027 for true tailwind.

Grant Campbell: There's also been some significant investments in bond funding, without a property tax increase, that has been passed for, you know, a whole host of projects across the city, parks, bike lanes, expansions to libraries, et cetera. So we do feel like, you know, the wheel is incrementally turning, looking to 2027 for true tailwind.

Speaker #8: So, we do feel like the wheel is incrementally turning. Looking to ’27 for true tailwinds.

Operator: Thank you, Jamie. Our next question is from Brad Heffern, from RBC Capital Markets. Your line is now open. Please go ahead.

Speaker #5: Jamie. Our next question is from Brad Hessen from RBC Capital Markets. Your line is now open. Please go ahead.

Speaker #9: Hey, good morning, everyone. Thanks. No, we're not supposed to ask about the strategic review. This is kind of strategic review-adjacent. I'm wondering, is the underlying plan for the company sort of continuing in the background?

Brad Heffern: Hey, good morning, everyone. Thanks. I know we're not supposed to ask about the strategic review. This is kind of strategic review adjacent. I'm wondering, is the underlying plan for the company sort of continuing in the background? Obviously, the past few years, you've sold out of tertiary markets to build Denver and Salt Lake. Is that continuing on in the background while you're looking at the broader strategic plan, or is kind of the strategies the company just on hold until this is completed?

Speaker #9: Obviously, the past few years, you've sold out of tertiary markets to build Denver and Salt Lake. Is that continuing on in the background while you're looking at the broader

Speaker #1: Is that part of the strategic plan, or is kind of the strategy of the company just on hold until this is completed?

Speaker #2: Yeah. Good morning, Brad. You know, we feel great about what we executed on strategically in 2025. We highlighted some of those in our prepared remarks.

Anne Olson: Yeah, good morning, Brad. As you know, we feel great about what we executed on strategically in 2025. We highlighted some of those in our prepared remarks. So we feel great about that. The part of the strategic review really is reviewing, you know, what we wanna do with every dollar of capital. And so, you know, a little early in the year to tell, and still ongoing with that, so no further comment on what that might mean for us as we move in through 2026.

Speaker #2: So we feel great about that. But part of the strategic review really is reviewing what we want to do with every dollar of capital.

Speaker #2: And so , you know , a little early in the year to tell . And still ongoing with that . So no further comment on what that might mean for us as we move through 2026 .

Speaker #1: Okay, and then do you have any, like, January or quarter-to-date leasing stats that you can give?

Brad Heffern: Okay. And then do you have any, like January or quarter-to-date leasing stats that you can give?

Bhairav Patel: ... Yeah, I can, I can give you some details. Overall, blends were flat to slightly negative, which is not uncommon for this time of the year. Renewals remained pretty strong and in the mid-3% range, so that's a positive. And we clawed back some occupancy. So there's weakness on the new lease rate outside, which we expect, led by Denver.

Speaker #3: Yeah , I can I can give you some details . Overall , blends were flat to slightly negative , which is not uncommon for for this time of the year Renewals remained pretty strong .

Speaker #3: And in the mid 3% range . So that's a that's a positive . And the clawed back some occupancy . So there's there's weakness on the new lease trade out side which we expect led by Denver .

Speaker #2: Really small sample size in January. We have very few leases expiring this month.

Anne Olson: Really small sample size in January. We have very few leases expiring this month.

Speaker #1: Yeah, okay, okay. And then just one clarification. I feel like in the prepared remarks you said that blends for '26 were 2%.

Brad Heffern: Yeah. Okay. Okay, got it. And then just one clarification. I feel like in the prepared remarks, you said that blends for 2026 were 2%, but then, Bhairav, I think you said 1.5% later on. Maybe I heard it wrong, but just wanna clarify what that number is.

Speaker #1: But then I think you said one and a half later. Maybe I heard it wrong, but just want to clarify what that number is.

Speaker #3: Yeah , I would say mid 1% range in our base case . You know , in certain markets it can be in the twos .

Bhairav Patel: Yeah, I would say mid 1% range in our base case. You know, in certain markets it can be in the 2s, but overall for the portfolio, we expect it to be in the mid 1% range.

Speaker #3: But overall for the portfolio we expect it to be in the mid 1% range

Speaker #1: Okay . Thank you

Brad Heffern: Okay. Thank you.

Speaker #2: Thanks Brad

Anne Olson: Thanks, Brad.

Speaker #4: Thank you, Brad. Our next question is from Alexander Goldfarb from Piper Sandler. Your line is now open. Please go ahead.

Operator: Thank you, Brad. Our next question is from Alexander Goldfarb from Piper Sandler. Your line is now open. Please go ahead.

Speaker #5: Hey . Good morning out there . And an always good to hear North Dakota leading . We like that Two questions here . First , I guess going to the strategic review .

Alexander Goldfarb: Hey, good morning out there, and Anne, always good to hear North Dakota leading. We like that. Two questions here. First, I guess going to the strategic review, are you allowed or can you buy back stock while that process is going on? You highlighted the stock buybacks that you had performed, but are you able to go into the market, or you have to complete the process before you can resume buying back stock?

Speaker #5: Are you allowed, or can you buy back stock while that process is going on? You highlighted the stock buybacks that you had performed.

Speaker #5: But are you able to go into the market or do you have to complete the process before you can resume buying back stock

Speaker #2: Yeah . At this point we need to complete the process . Just given the rules about what kind of information that the company has available .

Anne Olson: Yeah, at this point, we need to complete the process, just given the rules about where, what kind of information that the company has available. We do have a current authorization for buyback. You know, at where we're trading today, I think that isn't the most attractive use of our capital. Our 2025 buybacks were executed more in the $54 range.

Speaker #2: We do have a current authorization for buyback. You know, where we're trading today, I think that isn't the most attractive use of our capital. Our 2025 buybacks were executed more in the $54 range.

Speaker #5: Okay . And second question is , you know , rent control regulations , legal costs , it's been a big growing topic . You know , you outlined Denver , you know , the situation , the contrast between Saint Paul and meny has been well documented as you're assessing other markets .

Alexander Goldfarb: Okay. And second question is, you know, rent control regulations, legal costs, it's been a big growing topic. You know, you outlined Denver, you know, the situation, the contrast between St. Paul and Minneapolis has been well documented. As you're assessing other markets, how has the experience in those two markets affected? Are you seeing other markets slowly roll out, whether it's overt rent control or utility restrictions or other restrictions that mean markets that formerly were on your radar or existing markets where you were looking to expand, you wanna dial back given the local politics, or the- or those two markets that I stated are really the standouts and the other markets that you either are currently in or thinking about expanding to, really don't have that political risk?

Speaker #5: How has the experience in those two markets affected ? Are you seeing other markets slowly roll out , whether it's overt rent control or utility restrictions or other restrictions that mean markets that formerly were on your radar or existing markets where you were looking to expand , you want to dial back , given the local politics or the or those two markets that I cited are really the standouts .

Speaker #5: And the other markets that you either are currently in or are thinking about expanding to really don't have that political risk.

Speaker #2: Yeah , this is great question . Certainly a hot topic . I would say , you know , across the nation , we're seeing either municipalities or states , you know , really start looking at everything .

Anne Olson: Yeah, this is a great question, certainly a hot topic. I would say, you know, across the nation, we're seeing either municipalities or states, you know, really start looking at everything, fee income, regulatory requirements, not just straight rent control. So while we're happy with the markets that we're in, you know, we have great operations and good operating scale in both Denver and Minneapolis so that we can really absorb and do a great job of handling those regulatory changes. I would say when we're looking at new markets, business friendliness is one of our key categories that we're looking forward at. And that includes things like, do they have a heavy regulatory environment? What's the tax, the taxation, both property taxes and income taxes? You know, how are they attracting new businesses? Subsidies, things like that.

Speaker #2: Fee income , regulatory requirements , not just straight rent control . So while we're happy with the markets that we're in , you know , we have great operations and good operating scale in both Denver and Minneapolis so that we can really absorb and do a great job of handling those regulatory changes .

Speaker #2: I would say when we're looking at new markets, business friendliness is one of our key categories that we're looking forward at.

Speaker #2: And that includes things like , do they have a heavy regulatory environment ? What's the tax , the taxation , both property taxes and income taxes .

Speaker #2: You know , how are they attracting new businesses , subsidies , things like that . So when when we're thinking about new markets , it's definitely I'd say one of the key categories that we're considering .

Anne Olson: So when we're thinking about new markets, it's definitely, I'd say, one of the key categories that we're considering, but we're happy with the status in our current markets. We haven't seen any movement in markets like, or in states like Nebraska, North Dakota, South Dakota, Montana, you know, to enhance any of their regulatory requirements. And, you know, we have seen some pullback on the federal level, particularly around environmental regulation.

Speaker #2: But we're happy with the status in our current markets . We haven't seen any movement in markets like or in states like Nebraska , North Dakota , South Dakota , Montana , you know , to enhance any of their regulatory requirements .

Speaker #2: And, you know, we have seen some pullback on the federal level, particularly around environmental regulation.

Speaker #5: Okay . Thank you

Alexander Goldfarb: Okay. Thank you.

Speaker #4: Thank you , Alexander . Our next question is from Amy Probert from UBS . Your line is now open . Please go ahead .

Operator: Thank you, Alexander. Our next question is from Amy Probandt from UBS. Your line is now open. Please go ahead.

Speaker #6: Good morning . Thank you . So far tax refunds are trending much higher this year . So understanding that the post Covid periods different from what we're currently having , I'm wondering if there are any parallels that you can draw to 2026 in terms of tax refunds compared to 2021 and 2022 , when refunds were also elevated ?

Ami Probandt: Morning. Thank you. So far, tax refunds are trending much higher this year. So understanding that the post-COVID period is different from what we're currently having, I'm wondering if there are any parallels that you can draw to 2026 in terms of tax refunds, compared to 2021 and 2022, when refunds were also elevated. Do you think that this could lead to an increase in demand or pricing power, or is it sort of a one-time boost that doesn't really have a big impact?

Speaker #6: Do you think that this could lead to an increase in demand or pricing power , or is it sort of a one time boost that doesn't really have a big impact

Speaker #2: Hi , Amy . You know , the taxation is more about the valuation cycle . You know , coming in , coming into 2021 , 20 .

Anne Olson: Hi, Amy. You know, the taxation is more about the valuation cycle. You know, coming in, coming into 2021, 20... And there's a lag-

Speaker #2: And there's a lag between when taxes go up. Sorry.

Ami Probandt: So, um-

Anne Olson: between when the tax go up. Sorry.

Speaker #6: I was going to say, in terms of individual tax refunds, not the property taxes. Yeah.

Ami Probandt: I was gonna say in terms of individual tax refunds, not the property tax.

Anne Olson: Okay.

Ami Probandt: No problem.

Anne Olson: Yeah. Yeah, that's an interesting question. I don't know that we think that it's gonna impact demand. You know, it's going to be more of a one-time item. And, you know, our bad debt looks great, and we feel good about the resident health. So we hope when we see those tax refunds that maybe we'll see a little bit more consumer demand, or better consumer credit overall. I think we're gonna see that disposable income on the consumer spending side, not necessarily creating any demand on the multifamily side.

Speaker #2: Yeah . This is that's an interesting question . I don't know that we're think that it's going to impact demand . You know , it's going to it's going to be more of a one time item .

Speaker #2: And you know , our bad debt looks great . And we feel good about the resident health . So we hope when we see those tax refunds that maybe we'll see a little bit more consumer demand or better consumer credit overall , I think we're going to see that disposable income on the consumer spending side , not necessarily creating any demand on the multifamily side

Speaker #6: Got it. Thanks. And my second question.

Ami Probandt: ... Got it. Thanks. And my second question-

Speaker #7: When we're talking about, while we're talking about, property tax refunds.

Anne Olson: Usually, when we're talking about tax-wise, we're talking about property tax refunds.

Speaker #6: Yeah , no , of course . So second question , it's been a while since growth in monthly revenue per unit has been below growth in monthly rent per unit .

Ami Probandt: Yeah. No, of course. So second question. It's been a while since growth in monthly revenue per unit has been below growth in monthly rent per unit. So in the fourth quarter, rent growth was ahead of revenue growth. Did the changes in Colorado rebilling impact that? What other dynamics could be driving that shift?

Speaker #6: So, in the fourth quarter, rent growth was ahead of revenue growth. Did the changes in Colorado rebuilding impact that? What other dynamics could be driving that shift?

Speaker #3: Yeah . In the fourth quarter we saw some occupancy pressure . So that's contributing to it a little bit . Amy , you know , the Colorado regulations really kicked off in Jan .

Bhairav Patel: Yeah, in the fourth quarter, we saw some occupancy pressure, so that's contributing to it a little bit, Amy. You know, the Colorado regulations really kicked off in January, so we expect the impact from that to be in 2026, not really in 2025. But we did see some occupancy pressure in a couple of our markets. I mentioned Rochester as one, but I think we've turned the corner there, and we are, you know, we've kind of regained some of the occupancy back in January. So that's really what was driving the difference there.

Speaker #3: So we expect the impact from that to to be in 2026 . Not really in 2025 , but we we did see some occupancy pressure in a couple of our markets .

Speaker #3: I mentioned Rochester as one , but I think we've turned the corner there and we are you know , we've kind of regained some of the occupancy back in Jan .

Speaker #3: So that's really what was driving the difference there.

Speaker #6: Got it . Thank you

Ami Probandt: Got it. Thank you.

Speaker #4: Thank you Amy . As a reminder to ask a question , please press star followed by one on your telephone keypad Our next question is from Mason .

Operator: Thank you, Amy. As a reminder, to ask a question, please press star followed by one on your telephone keypad. Our next question is from Mason Guell from Baird. Your line is now open. Please go ahead.

Speaker #4: Gale from Baird, your line is now open. Please go ahead.

Speaker #8: Hey . Good morning . Everyone . Looks like your retention rate was down . Both sequentially and year over year . And your forecasting it to be lower in 2026 .

Mason Guell: Hey, good morning, everyone. Looks like your retention rate was down both sequentially and year-over-year, and you're forecasting it to be lower in 2026. Is this due to focusing more on rates instead of occupancy, or what is driving the lower retention rate?

Speaker #8: Is this due to focusing more on rate instead of occupancy? Or what is driving the lower retention rate?

Speaker #3: Yeah , you know we've we've seen it come down a little bit overall from a base case perspective for 2026 . We're just being measured in what we expect from retention standpoint .

Bhairav Patel: Yeah, you know, we've, we've seen it come down a little bit. Overall, from a base case perspective for 2026, we're just being measured in what we expect from a retention standpoint. We expected the same level for 2025. We outperformed a little bit. We saw a little bit of a downtick in Q4, so we're just kind of building in a little bit of, you know, I would say, we're just being measured about retention being a little conservative to start off the year, because, well, we want to see what happens in the first couple of quarters before we adjust our assumptions there.

Speaker #3: We expect the same level for 2025 . The outperformed a little bit . We saw a little bit of a downtick in Q4 .

Speaker #3: So we're just kind of building in a little bit of , you know , I would say we just being measured about retention , being a little conservative to start of the year because what we want to see what happens in the first couple of quarters before we adjust our assumptions .

Speaker #3: There

Speaker #8: Great . And then your outlook for value add seems like it's a wider range than you previously had in your outlook . And midpoints expected to be lower than 2025 , I guess why the wider range and what's driving the lower expected value add

Mason Guell: Great. And then your outlook for Value Add seems like it's a wider range than you previously had in your outlook, and the midpoint's expected to be lower than 2025. I guess, why, why the wider range, and what's driving the lower expected Value Add?

Speaker #3: Sure . Yeah . So from a value add perspective , we're kind of holding back projects for a couple of reasons . I mean , one , you know , just being extremely selective in the projects we greenlight due to the higher cost of capital and execution risk , we want to see some improvement in the marketplace before we do that .

Bhairav Patel: Sure. Yeah. So from a value add perspective, we're, we're kind of holding back projects for a couple of reasons. I mean, one, you know, just being extremely selective in the projects we greenlight due to the higher cost of capital and execution risk. We want to see some improvement in the marketplace before we do that. And secondly, we are holding back approvals due to the ongoing process of evaluating strategic alternatives. We would hate to begin a project that we cannot complete as a result of any decision that comes out of that review. So, you know, that's really driving, you know, the range there. On the low end, we have about $2.5 million, which is really completion of projects we started in prior years.

Speaker #3: And secondly, we're holding back approvals due to the ongoing process of evaluating strategic alternatives. You would hate to begin a project that we cannot complete as a result of any decision that comes out of that review.

Speaker #3: So , you know , that's really driving , you know , the range there on the low end , we have about 2.5 million , which is really completion of projects .

Speaker #3: We've started in prior years, so at the very least we will be starting to put capital out later this year than we typically do.

Bhairav Patel: So at the very least, we will be starting to put capital out later, this year than we typically do. That would drive the range lower. So that's, that's what you're seeing in that range.

Speaker #3: That would drive the range lower. So that's— that's what you're seeing in that range.

Speaker #8: Great . Thank you

Mason Guell: Great. Thank you.

Speaker #4: Thank you . Mason As a final reminder to ask a question , please press star , followed by one on your telephone keypad .

Operator: Thank you, Mason. As a final reminder, to ask a question, please press star followed by one on your telephone keypad. We have a follow-up question from Amy Probandt from UBS. Your line is now open. Please go ahead.

Speaker #4: We have a follow-up question from Amy Probert from UBS. Your line is now open. Please go ahead.

Speaker #6: Thanks . So , a quick one on the consumer you mentioned no changes in bad debt , but for some of the markets where you've had consistent CPI plus renewal growth , is there any concern about affordability

Ami Probandt: Thanks. So a quick one on the consumer. You mentioned no changes in bad debt, but for some of the markets where you've had consistent CPI plus renewal growth, is there any concern about affordability?

Speaker #2: You know , we're seeing great affordability . I think our rental income is held steady . If not lowered slightly over the course of the year .

Anne Olson: You know, we're seeing great affordability. I think our rent to income is held steady, if not lowered slightly over the course of the year. Really, that's been driven by, incomes increasing faster than we're seeing rent increases. So even in those markets like North Dakota, where we're getting really great, renewal spreads and seeing positive new leasing, the incomes there are growing faster, than the rent amount. So, we've seen really strong income growth, wage growth across our markets.

Speaker #2: Really , that's been driven by incomes increasing faster than we're seeing rent increases . So even in those markets like North Dakota , where we're getting really great renewal spreads and seeing positive new leasing incomes , there are growing faster than than the rent amount .

Speaker #2: So we've seen really strong income growth , wage growth across our markets

Speaker #6: Great . Thanks . That's all for me

Ami Probandt: Great. Thanks. That's all for me.

Speaker #4: Thank you, Amy. Our next question is a follow-up question from Alexander Goldfarb from Piper Sandler. Your line is now open.

Operator: Thank you, Amy. Our next question is a follow-up question from Alexander Goldfarb from Piper Sandler. Your line is now open. Please go ahead.

Speaker #4: Please go ahead .

Alexander Goldfarb: Hey, thank you for taking the follow-up. Just quickly, a number of your markets, you guys always talk about the, you know, lack of labor, tight markets, you know, heavy, you know, tough getting people to work on site. And yet, I saw that your, you know, your on-site comp was basically flat for the year. In fact, it was a little down in the fourth quarter. But I'm just curious, you know, what's going on there, just given, again, you guys have spoken about the tight labor markets in a number of the places that you operate.

Speaker #5: Hey , thank you for taking the follow up . Just quickly , a number of your markets , you guys always talk about the , you lack of labor , tight markets , you know , heavy you know , tough getting people to work on site .

Speaker #5: And yet I saw that your you know your your on site comp was basically flat for the year . In fact it was a little down in the fourth quarter .

Speaker #5: But I'm just curious what's going on there . Just given again , you guys have spoken about the tight labor markets in , in in a number of the places that you operate

Speaker #2: I think just like we've seen Alex in our in our company , most of our vendors have also experienced , you know , less turnover .

Anne Olson: I think just like we've seen, Alex, in our company, most of our vendors have also experienced, you know, less turnover. And so across our markets there, it is very strong employment, very low unemployment. There's the opposite of that. But what we've seen is a lot less turnover, more steadiness in that employment. And so in the past, when we've had vendors and they lose someone, it's very hard for them to replace it, but people are staying in the jobs longer. We saw that in our company as well. Tenure is up, and turnover is lower. So I think that really helped us in 2025, and we saw that trend throughout the year.

Speaker #2: And so across our markets there it is very strong employment , very low unemployment . This is opposite of that . And but what we've seen is a lot less turnover , more steadiness in that employment .

Speaker #2: And so, in the past when we've had vendors and they lose someone, it's very hard for them to replace it. But people are staying in the jobs longer.

Speaker #2: We saw that in our company as well. Tenure is up and turnover is lower, so I think that really helped us in 2025.

Speaker #2: And we saw that trend throughout the year.

Speaker #3: Yeah , and specifically in Q4 . Alex , there was a health reserve adjustment that came through in the last quarter when we kind of adjust our health reserves based on , you know , the the projections for actual expenses .

Bhairav Patel: Yeah, and specifically in Q4, Alex, there was a health reserve adjustment that came through in the last quarter when we kind of adjust our health reserves based on, you know, the projections for actual expenses. So that also contributed to that comparison on a year-over-year basis.

Speaker #3: So that also contributed to that comparison on a year over year basis .

Speaker #5: Okay . And you expect that the low turnover and to to continue in 26 .

Alexander Goldfarb: Okay, and you expect that the low turnover, Anne, to continue in 2026?

Speaker #2: We are expecting low turnover for for us . And I think that we've seen that extrapolated out with our vendors , you know , just more consistency and who's who's coming on site and their ability to service to service our needs from a vendor perspective .

Anne Olson: We are expecting low turnover for us, and I think that we've seen that extrapolated out with our vendors. You know, just more consistency in who's coming on site and their ability to service our needs from a vendor perspective.

Speaker #5: Okay . Cool . Listen . Thank you

Alexander Goldfarb: Okay, cool. Listen, thank you.

Speaker #4: Thank you Alexander . Our next question is a follow up question from Brad Heffern from RBC Capital Markets . Your line is now open .

Operator: Thank you, Alexander. Our next question is a follow-up question from Brad Heffern from RBC Capital Markets. Your line is now open. Please go ahead.

Speaker #4: Please go ahead

Speaker #1: Yeah . Thanks , everybody . Thanks for taking the follow up on Minneapolis . You know , you mentioned the comments , of course , been the headlines a lot of turmoil and unrest over the past few months .

Brad Heffern: Yeah, thanks, everybody. Thanks for taking the follow-up. On Minneapolis, you know, you mentioned that the comments, of course, been in the headlines, a lot of turmoil and rest over the past few months. Did leasing activity look any different as a result? I know it's not a heavy leasing time of year, but I'm curious if you saw an impact. And then do you--are you expecting, like, any sort of longer-term impact, or did your, you know, forecast for Minneapolis for this year change versus maybe what it would have been a few months ago?

Speaker #1: Did leasing activity look any different as a result ? I know it's not a heavy leasing time of year , but I'm curious if you saw an impact and then do you are you expecting , like any sort of longer term impact , or did your forecast for Minneapolis for this year change versus maybe what it would have been a few months ago

Speaker #2: Yeah , we not that we've seen any real change . I think in late 2025 , you know , we kind of assess the state of of the immigration enforcement actions .

Anne Olson: Yeah. Not that we've seen any real change. I think in late 2025, you know, we kind of assessed the state of, of the immigration enforcement actions. What we saw in January was, you know, had started a couple a few months before. So we have seen very little activity at our communities. We do monitor. We have a system where that's reported, and it's really limited to just a couple of communities where we've seen some interruption, and that interruption would be from leasing all the way to, you know, resident skips. But so far it's been really a minimal impact. And, you know, I think the key thing, as you noted, is that it's, there's very low turnover, lease expirations in January, and not a lot of people looking in January anyway.

Speaker #2: What we saw in January was , you know , had started a few months before . So we have seen very little activity at our communities .

Speaker #2: We do monitor . We have a system where it's reported and it's really limited to just a couple of communities where we've seen some interruption and that interruption would be from leasing all the way to , you know , resident skips .

Speaker #2: But so far it's been really minimal impact . And , you know , I think the , the key thing as you noted , is that there's very low turnover lease expirations in January and that a lot of people looking in January anyway .

Speaker #2: So, hard to tell if there's any real impact. We would see that more once we have, you know, leasing season underway.

Anne Olson: So hard to tell if there's any real impact. We would see that more once we have, you know, leasing season underway. One of the things that you may have seen about Minnesota is that for the first time, we turned the corner where we actually had good migration into the state. I think we've finally cracked that U-Haul list, number 14, of people moving here, and so that really did offset this year. Our population growth was offset by kind of the net of lack of immigrant migration in. So we think demand is gonna hold up in Minneapolis, and as Grant and Bhairav have noted, you know, very little supply there and good projected growth across the board.

Speaker #2: One of the things that you may have seen about Minnesota is that for the first time , we turned the corner where we actually had good migration into the state .

Speaker #2: I think we finally cracked that U-Haul list, number 14 of people moving here. And so that really did offset this year. Our population growth was offset by, kind of, the net of lack of immigrant migration in.

Speaker #2: So, we think demand is going to hold up in Minneapolis. And as Grant and Bhairav have noted, you know, very little supply there and good projected growth across the board.

Speaker #2: So not much impact that we can see right now . And , and we're monitoring closely things like whether or not there'll be any moratoriums or , or on evictions or things like that .

Anne Olson: So, not much impact that we can see right now, and we're monitoring closely things like whether or not there'll be any moratoriums or on evictions or things like that. I think it's settled down, and it's a little bit of a wait and see on that front.

Speaker #2: I think it's settled down and it's a little bit of a wait and see on that front

Speaker #1: Okay . Thank you

Brad Heffern: Okay, thank you.

Speaker #4: Thank you . Brad . We currently have no further questions , so I will hand back to Anne for closing remarks

Operator: Thank you, Brad. We currently have no further questions, so I will hand back to Anne for closing remarks.

Speaker #2: Thank you . Well thanks everyone for joining us today . And thank you again to our team for our tireless pursuit of better every days we're going to have a great time at our leadership conference here in Vegas .

Anne Olson: Thank you. Well, thanks, everyone, for joining us today, and thank you again to our team for our tireless pursuit of better every days. We're gonna have a great time at our leadership conference here in Vegas, and we look forward to talking with you all very soon. Have a great day.

Speaker #2: And we look forward to talking with you all very soon . Have a great day

Operator: This concludes today's Centerspace Q4 2025 earnings call. Thank you for joining. You may now disconnect your lines.

Q4 2025 Centerspace Earnings Call

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