Exhibit 99.1

Earnings Release

Centerspace Announces Financial and Operating Results for the Year Ended

December 31, 2020 and Provides 2021 Financial Outlook

MINNEAPOLIS, MN, February 22, 2021 – Centerspace (NYSE: CSR) announced today its financial and operating results for the year ended December 31, 2020. The tables below show Net Income (Loss), Funds from Operations (“FFO”)1, and Core FFO1, all on a per share basis, for the year ended December 31, 2020; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted Average Occupancy for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019 and the twelve months ended December 31, 2020 and 2019.

						Three Months Ended December 31,												Twelve Months Ended December 31,
Per Share						2020						2019						2020						2019
Earnings (loss) per share - diluted						$	(0.46)					$	3.95					$	(0.15)					$	6.00
FFO - diluted						0.97						0.90						3.47						4.05
Core FFO - diluted						1.02						0.96						3.78						3.72

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results						4Q20 vs 4Q19						4Q20 vs. 3Q20						CY20 vs. CY19
Revenues						2.3		%				1.4		%				2.1		%
Expenses						(0.4)		%				(5.1)		%				2.6		%
Net Operating Income (“NOI”)						4.2		%				6.3		%				1.8		%

						Three months ended																		Twelve months ended
Same-Store Results						December 31, 2020						September 30, 2020						December 31, 2019						December 31, 2020						December 31, 2019
Weighted Average Occupancy						95.0		%				94.4		%				94.0		%				94.8		%				94.4		%

(1)Net operating income, Funds from Operations, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" in the Supplemental Financial and Operating Data below.

Highlights for the Year Ended December 31, 2020

•Rebranded the Company as Centerspace in December 2020 to reflect both the transformation of the company and its vision for the future;

•Net Loss was $(0.15) per diluted share for the year ended December 31, 2020, compared to Net Income of $6.00 per diluted share for the year ended December 31, 2019;

•Core FFO increased to $3.78 per diluted share compared to $3.72 for the year ended December 31, 2019;

•Total collections for the year ended December 31, 2020 were 99.1% of expected residential revenue compared to 99.6% for the year ended December 31, 2019 while total collections for the quarter ended December 31, 2020 were 98.6% compared to 99.7% for the same period of 2019;

•Same-store revenue increased 2.1% driven by 1.7% growth in rental revenue and 0.4% increase in occupancy;

•Same-store operating expenses increased 2.6% year-over-year with a decline of 2.9% in same-store controllable expenses, offset by a increase of 13.6% in same-store non-controllable expenses;

1

•Same-store NOI growth of 1.8% for the year ended December 31, 2020;

•Acquired two new apartment communities in key growth markets of Minneapolis and Denver in the first and third quarter of 2020 consisting of 647 homes for an aggregate purchase price of $191.0 million;

•Funded $18.5 million of mezzanine/construction loans;

•Acquired the remaining noncontrolling interest in 71 France in the first quarter of 2020;

•Sold four apartment communities consisting of 690 homes in Grand Forks, North Dakota for an aggregate sale price of $42.5 million in the third quarter of 2020;

•Announced Nashville as one of our target markets in June 2020;

•Maintained an annual dividend of $2.80 per share to common shareholders and unitholders;

•Continued to strengthen the balance sheet by issuing 829,000 common shares at an average price of $71.39 per share for total consideration, net of commissions and issuance costs, of approximately $59.2 million in the year ended December 31, 2020; and

•Repurchased and retired approximately 237,000 of our 6.625% Series C preferred shares for an aggregate cost of $5.6 million or an average share price of $23.75.

Subsequent Events

Subsequent to December 31, 2020, Centerspace acquired Union Pointe Apartment Homes in Longmont, Colorado for an aggregate purchase price of $76.9 million. The company also issued $50.0 million of 2.7% unsecured Series C notes, due June 6, 2030. In concert with this issuance, Centerspace amended and expanded its Note Purchase Private Shelf Agreement (the "Agreement") with Prudential to increase the aggregate amount available under the Agreement from $150.0 million to $225.0 million. After the issuance of Series C notes, the company has $50.0 million remaining under the Agreement, which is excluded for purposes of reporting liquidity.

Balance Sheet

At December 31, 2020, Centerspace had $97.5 million of total liquidity on its balance sheet, including $97.1 million available on its lines of credit.

2021 Financial Overview

Centerspace is providing the following guidance for its 2021 calendar year performance.

2021 Calendar Year Financial Outlook
									Range for 2021
			2020 Actual						Low						High
Earnings per Share - diluted			$	(0.15)					$	(0.18)					$	0.45
FFO per Share - diluted			$	3.47					$	3.17					$	3.52
Core FFO per Share - diluted			$	3.78					$	3.29					$	3.62

Additional assumptions:

•Same-store capital expenditures of $912 per home to $1,012 per home

•Value-add expenditures of $15.0 million to $20.0 million

•Investments of $145.0 million to $170.0 million, which includes the January 2021 acquisition of Union Pointe in Longmont, Colorado

•Dispositions of $55.0 million to $75.0 million

•Proceeds of $50.0 million to $70.0 million from equity issuance

FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, please refer to "2021 Financial Outlook" in the Supplemental Financial and Operating Data below.

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COVID-19 Developments

The COVID-19 pandemic, including the associated economic disruptions, has continued to impact business and operations since March 2020. The company continues to prioritize the health and well-being of its residents, team members, and the communities it serves.

A discussion of the ongoing and potential effects of the COVID-19 pandemic on financial condition, results of operations, and cash flows can be found in "Management's Discussion and Analysis of Financial Conditions and Results of Operations" presented in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021. For a more detailed description of the risks and uncertainties affecting business, see the risk factors presented in Item 1A in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021.

Upcoming Events

Centerspace is scheduled to participate in the Raymond James & Associates' 42nd Annual Institutional Investors Conference, which will be held virtually on March 1-3, 2021.

Earnings Call

Live webcast and replay:  https://www.ir.centerspacehomes.com

Live Conference Call

Conference Call Replay

Tuesday, February 23, 2021 at 10:00 AM ET

Replay available until March 9, 2021

USA Toll Free Number

1-877-509-9785

USA Toll Free Number

1-877-344-7529

International Toll Free Number

1-412-902-4132

International Toll Free Number

1-412-317-0088

Canada Toll Free Number

1-855-669-9657

Canada Toll Free Number

1-855-669-9658

Conference Number

10145476

Supplemental Information

Supplemental Operating and Financial Data for the year ended December 31, 2020, is available in the Investors section on Centerspace’s website at https://www.centerspacehomes.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of December 31, 2020, Centerspace owned 67 apartment communities consisting of 11,910 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2020 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

Forward-Looking Statements

Certain statements in this press release are based on the company's current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “assumes,” “may,” “projects,” “outlook,” “future,” and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the SEC, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in the company's Annual Report on Form 10-K, in quarterly reports on Form 10-Q, and in other reports the company files with the SEC from time to time. The company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

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Contact Information

Investor Relations

Emily Miller

Phone: 701-837-7104

E-mail: IR@centerspacehomes.com

Marketing & Media

Kelly Weber

Phone: 701-837-7104

kweber@centerspacehomes.com

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Supplemental Financial and Operating Data

Table of Contents

December 31, 2020

			Page
Common Share Data			S-1
Key Financial Data
Condensed Consolidated Statements of Operations			S-2
Condensed Consolidated Balance Sheets			S-3
Non-GAAP Financial Measures and Reconciliations
Net Operating Income Detail			S-4
Same-Store Controllable Expenses			S-5
Funds From Operations			S-6
Adjusted EBITDA			S-8
Debt and Capital Analysis
Debt Analysis			S-9
Capital Analysis			S-10
Portfolio Analysis
Same-Store Comparison			S-11
Portfolio Summary			S-14
Same-Store Capital Expenditures			S-15
2021 Financial Outlook			S-16

Common Share Data (NYSE: CSR)

						Three Months Ended
						December 31, 2020						September 30, 2020						June 30, 2020						March 31, 2020						December 31, 2019
High closing price						$	74.55					$	73.53					$	76.82					$	84.68					$	78.91
Low closing price						$	65.79					$	61.87					$	44.36					$	52.55					$	71.74
Average closing price						$	70.30					$	70.15					$	63.91					$	71.62					$	74.67
Closing price at end of quarter						$	70.64					$	65.17					$	70.49					$	55.00					$	72.50
Common share distributions—annualized						$	2.80					$	2.80					$	2.80					$	2.80					$	2.80
Closing price dividend yield - annualized						4.0		%				4.3		%				4.0		%				5.1		%				3.9		%
Closing common shares outstanding (thousands)						13,027						12,976						12,827						12,164						12,099
Closing limited partnership units outstanding (thousands)						977						1,018						1,022						1,044						1,058
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)						$	989,243					$	911,989					$	976,216					$	726,440					$	953,883

S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share amounts)

						Three Months Ended																																	Twelve months ended
						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019									12/31/2020						12/31/2019
REVENUE						$	45,540					$	44,138					$	43,910					$	44,406					$	45,777								$	177,994					$	185,755
EXPENSES
Property operating expenses, excluding real estate taxes						12,668						13,129						12,360						13,468						14,018									51,625						57,249
Real estate taxes						5,256						5,402						5,410						5,465						4,835									21,533						21,066
Property management expenses						1,460						1,442						1,345						1,554						1,634									5,801						6,186
Casualty loss						331						91						913						327						205									1,662						1,116
Depreciation/amortization						20,282						18,995						18,156						18,160						18,972									75,593						74,271
General and administrative expenses						3,733						3,077						3,202						3,428						3,647									13,440						14,450
TOTAL EXPENSES						$	43,730					$	42,136					$	41,386					$	42,402					$	43,311								$	169,654					$	174,338
Operating income (loss)						1,810						2,002						2,524						2,004						2,466									8,340						11,417
Interest expense						(6,903)						(6,771)						(6,940)						(6,911)						(7,357)									(27,525)						(30,537)
Loss on extinguishment of debt						(2)						(4)						(17)						—						(864)									(23)						(2,360)
Interest and other income (loss)						406						281						538						(2,777)						702									(1,552)						2,092
Income (loss) before gain (loss) on sale of real estate and other investments, and gain (loss) on litigation settlement						(4,689)						(4,492)						(3,895)						(7,684)						(5,053)									(20,760)						(19,388)
Gain (loss) on sale of real estate and other investments						17						25,676						(190)						—						57,850									25,503						97,624
Gain (loss) on litigation settlement						—						—						—						—						—									—						6,586
Net income (loss)						$	(4,672)					$	21,184					$	(4,085)					$	(7,684)					$	52,797								$	4,743					$	84,822
Dividends to preferred unitholders						(160)						(160)						(160)						(160)						(160)									(640)						(537)
Net (income) loss attributable to noncontrolling interest – Operating Partnership						460						(1,387)						447						692						(4,202)									212						(6,752)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities						(6)						(8)						(5)						145						223									126						1,136
Net income (loss) attributable to controlling interests						(4,378)						19,629						(3,803)						(7,007)						48,658									4,441						78,669
Dividends to preferred shareholders						(1,607)						(1,607)						(1,609)						(1,705)						(1,705)									(6,528)						(6,821)
Discount (premium) on redemption of preferred shares						—						(1)						25						273						—									297						—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	(5,985)					$	18,021					$	(5,387)					$	(8,439)					$	46,953								$	(1,790)					$	71,848
Per Share Data - Basic
Net earnings (loss) per common share – basic						$	(0.46)					$	1.40					$	(0.44)					$	(0.69)					$	3.95								$	(0.15)					$	6.06
Per Share Data - Diluted
Net earnings (loss) per common share – diluted						$	(0.46)					$	1.38					$	(0.44)					$	(0.67)					$	3.89								$	(0.15)					$	6.00

S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019
ASSETS
Real estate investments
Property owned						$	1,812,557					$	1,805,390					$	1,694,033					$	1,687,436					$	1,643,078
Less accumulated depreciation						(399,249)						(380,392)						(383,917)						(366,307)						(349,122)
						1,413,308						1,424,998						1,310,116						1,321,129						1,293,956
Unimproved land						—						—						—						1,376						1,376
Mortgage loans receivable						24,661						17,986						10,961						16,775						16,140
Total real estate investments						1,437,969						1,442,984						1,321,077						1,339,280						1,311,472
Cash and cash equivalents						392						16,804						52,714						26,338						26,579
Restricted cash						6,918						2,199						2,535						2,344						19,538
Other assets						18,904						16,947						16,484						21,124						34,829
TOTAL ASSETS						$	1,464,183					$	1,478,934					$	1,392,810					$	1,389,086					$	1,392,418
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	55,609					$	58,596					$	54,883					$	52,337					$	47,155
Revolving line of credit						152,871						135,000						63,000						83,000						50,079
Notes payable, net of loan costs						269,246						269,202						269,155						269,106						269,058
Mortgages payable, net of loan costs						297,074						313,065						323,705						328,367						329,664
TOTAL LIABILITIES						$	774,800					$	775,863					$	710,743					$	732,810					$	695,956
SERIES D PREFERRED UNITS						$	16,560					$	16,560					$	16,560					$	16,560					$	16,560
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,530						93,579						96,046						99,456
Common Shares of Beneficial Interest						968,263						968,436						958,292						912,653						917,400
Accumulated distributions in excess of net income						(427,681)						(412,577)						(421,515)						(407,150)						(390,196)
Accumulated other comprehensive income (loss)						(15,905)						(17,256)						(18,139)						(17,360)						(7,607)
Total shareholders’ equity						$	618,207					$	632,133					$	612,217					$	584,189					$	619,053
Noncontrolling interests – Operating Partnership						53,930						53,669						52,558						54,777						55,284
Noncontrolling interests – consolidated real estate entities						686						709						732						750						5,565
TOTAL EQUITY						$	672,823					$	686,511					$	665,507					$	639,716					$	679,902
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	1,464,183					$	1,478,934					$	1,392,810					$	1,389,086					$	1,392,418

S-3

CENTERSPACE

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)

This release contains certain non-GAAP financial measures. The non-GAAP financial measures should not be considered a substitute for operating results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The definitions and calculations of these non-GAAP financial measures, as calculated by the company may not be comparable to non-GAAP measures reported by other REITs that do not define each of the non-GAAP financial measures exactly as Centerspace does.

The company provides certain information on a same-store and non-same-store basis. Same-store apartment communities are owned or in service for substantially all of the periods being compared, and, in the case of development properties, have achieved a target level of physical occupancy of 90%. On the first day of each calendar year, Centerspace determines the composition of the same-store pool for that year and adjusts the previous year, to evaluate full period-over-period operating comparisons for existing apartment communities and their contribution to net operating income. Measuring performance on a same-store basis allows investors to evaluate how a fixed pool of communities are performing year-over-year. Centerspace uses this measure to assess success in increasing NOI, renewing leases on existing residents, controlling operating costs, and making prudent capital improvements.

Reconciliation of Operating Income (Loss) to Net Operating Income

Net operating income, or NOI, is a non-GAAP financial measure which the company defines as total real estate revenues less property operating expenses, including real estate taxes. Centerspace believes that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by depreciation and amortization, financing costs, property management expenses, casualty losses, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income, net income available for common shareholders, or cash flow from operating activities as a measure of financial performance.

			(dollars in thousands)
			Three Months Ended																					Sequential												Year-Over-Year
			12/31/2020						09/30/2020						12/31/2019									$ Change						% Change						$ Change						% Change
Operating income (loss)			$	1,810					$	2,002					$	2,466								$	(192)					(9.6)		%				$	(656)					(26.6)		%
Adjustments:
Property management expenses			1,460						1,442						1,634									18						1.2		%				(174)						(10.6)		%
Casualty loss			331						91						205									240						263.7		%				126						61.5		%
Depreciation and amortization			20,282						18,995						18,972									1,287						6.8		%				1,310						6.9		%
General and administrative expenses			3,733						3,077						3,647									656						21.3		%				86						2.4		%
Net operating income			$	27,616					$	25,607					$	26,924								$	2,009					7.8		%				$	692					2.6		%
Revenue
Same-store			$	38,582					$	38,043					$	37,718								$	539					1.4		%				$	864					2.3		%
Non-same-store			6,353						4,420						3,191									1,933						43.7		%				3,162						99.1		%
Other properties and dispositions			605						1,675						4,868									(1,070)						(63.9)		%				(4,263)						(87.6)		%
Total			45,540						44,138						45,777									1,402						3.2		%				(237)						(0.5)		%
Property operating expenses, including real estate taxes
Same-store			15,370						16,198						15,432									(828)						(5.1)		%				(62)						(0.4)		%
Non-same-store			2,271						1,712						1,090									559						32.7		%				1,181						108.3		%
Other properties and dispositions			283						621						2,331									(338)						(54.4)		%				(2,048)						(87.9)		%
Total			17,924						18,531						18,853									(607)						(3.3)		%				(929)						(4.9)		%
Net operating income
Same-store			23,212						21,845						22,286									1,367						6.3		%				926						4.2		%
Non-same-store			4,082						2,708						2,101									1,374						50.7		%				1,981						94.3		%
Other properties and dispositions			322						1,054						2,537									(732)						(69.4)		%				(2,215)						(87.3)		%
Total			$	27,616					$	25,607					$	26,924								$	2,009					7.8		%				$	692					2.6		%

S-4

			(dollars in thousands)
			Twelve Months Ended December 31,
			2020						2019						$ Change						% Change
Operating income (loss)			$	8,340					$	11,417					$	(3,077)					(27.0)		%
Adjustments:
Property management expenses			5,801						6,186						(385)						(6.2)		%
Casualty loss			1,662						1,116						546						48.9		%
Depreciation and amortization			75,593						74,271						1,322						1.8		%
General and administrative expenses			13,440						14,450						(1,010)						(7.0)		%
Net operating income			$	104,836					$	107,440					$	(2,604)					(2.4)		%
Revenue
Same-store			$	152,790					$	149,615					$	3,175					2.1		%
Non-same-store			18,441						6,020						12,421						206.3		%
Other properties and dispositions			6,763						30,120						(23,357)						(77.5)		%
Total			177,994						185,755						(7,761)						(4.2)		%
Property operating expenses, including real estate taxes
Same-store			63,227						61,622						1,605						2.6		%
Non-same-store			6,817						2,287						4,530						198.1		%
Other properties and dispositions			3,114						14,406						(11,292)						(78.4)		%
Total			73,158						78,315						(5,157)						(6.6)		%
Net operating income
Same-store			89,563						87,993						1,570						1.8		%
Non-same-store			11,624						3,733						7,891						211.4		%
Other properties and dispositions			3,649						15,714						(12,065)						(76.8)		%
Total			$	104,836					$	107,440					$	(2,604)					(2.4)		%

Reconciliation of Same-Store Controllable Expenses to Property Operating Expenses, Including Real Estate Taxes

Same-store controllable expenses exclude real estate taxes and insurance, in order to provide a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP financial measure and should not be considered an alternative to total expenses or total property operating expenses and real estate taxes.

			(dollars in thousands)
			Three Months Ended December 31,																											Twelve Months Ended December 31,
			2020						2019						$ Change						% Change									2020						2019						$ Change						% Change
Controllable expenses
On-site compensation (1)			$	4,356					$	4,035					$	321					8.0		%							$	17,059					$	15,814					$	1,245					7.9		%
Repairs and maintenance			2,068						2,945						(877)						(29.8)		%							9,499						11,358						(1,859)						(16.4)		%
Utilities			2,579						2,453						126						5.1		%							10,096						10,336						(240)						(2.3)		%
Administrative and marketing			763						891						(128)						(14.4)		%							3,265						3,594						(329)						(9.2)		%
Total			$	9,766					$	10,324					$	(558)					(5.4)		%							$	39,919					$	41,102					$	(1,183)					(2.9)		%
Non-controllable expenses
Real estate taxes			$	4,350					$	4,067					$	283					7.0		%							$	18,379					$	16,805					$	1,574					9.4		%
Insurance			1,254						1,041						213						20.5		%							4,929						3,715						1,214						32.7		%
Total			5,604						5,108						496						9.7		%							23,308						20,520						2,788						13.6		%
Property operating expenses, including real estate taxes - non-same-store			$	2,271					$	1,090					$	1,181					108.3		%							$	6,817					$	2,287					$	4,530					198.1		%
Property operating expenses, including real estate taxes - other properties and dispositions			$	283					$	2,331					$	(2,048)					(87.9)		%							$	3,114					$	14,406					$	(11,292)					(78.4)		%
Total property operating expenses, including real estate taxes			$	17,924					$	18,853					$	(929)					(4.9)		%							$	73,158					$	78,315					$	(5,157)					(6.6)		%

(1)On-site compensation for administration, leasing, and maintenance personnel.

S-5

Reconciliation of Net Income (Loss) Available to Common Shareholders to Funds From Operations and Core Funds From Operations

Centerspace believes that FFO, which is a non-GAAP financial measurement used as a supplemental measure for equity real estate investment trusts, is helpful to investors in understanding operating performance, primarily because its calculation does not assume that the value of real estate assets diminishes predictably over time as implied by the historical cost convention of GAAP and the recording of depreciation.

Centerspace uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit defines FFO as net income or loss calculated in accordance with GAAP, excluding:

•depreciation and amortization related to real estate;

•gains and losses from the sale of certain real estate assets; and

•impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

The exclusion in Nareit's definition of FFO of impairment write-downs and gains and losses from the sale of real estate assets helps to identify the operating results of the long-term assets that form the base of the company's investments, and assists management and investors in comparing those operating results between periods.

Due to the limitations of the Nareit FFO definition, Centerspace has made certain interpretations in applying the definition. The company believes that all such interpretations not specifically provided for in the Nareit definition are consistent with the definition. Nareit's FFO White Paper - 2018 Restatement clarified that impairment write-downs of land related to a REIT's main business are excluded from FFO, and a REIT has the option to exclude impairment write-downs of assets that are incidental to the main business.

While FFO is widely used by Centerspace as a primary performance metric, not all real estate companies use the same definition of FFO or calculate FFO in the same way. Accordingly, FFO presented here is not necessarily comparable to FFO presented by other real estate companies. FFO should not be considered as an alternative to net income or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund all cash needs, including the ability to service indebtedness or make distributions to shareholders.

Core Funds from Operations ("Core FFO") is FFO adjusted for non-routine items or items not considered core to business operations. By further adjusting for items that are not considered part of core business operations, the company believes that Core FFO provides investors with additional information to compare core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income as any other GAAP measurement of performance, but rather should be considered an additional supplemental measure. Core FFO also does not represent cash generated from operating activities in accordance with GAAP, nor is it indicative of funds available to fund all cash needs, including the ability to service indebtedness or make distributions to shareholders. Core FFO is a non-GAAP and non-standardized financial measure that may be calculated differently by other REITs and that should not be considered a substitute for operating results determined in accordance with GAAP.

S-6

						(in thousands, except per share amounts)
						Three Months Ended																																	Twelve Months Ended
						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019									12/31/2020						12/31/2019
Net (loss) income available to common shareholders						$	(5,985)					$	18,021					$	(5,387)					$	(8,439)					$	46,953								$	(1,790)					$	71,848
Adjustments:
Noncontrolling interests - Operating Partnership						(460)						1,387						(447)						(692)						4,202									(212)						6,752
Depreciation and amortization						20,282						18,995						18,156						18,160						18,972									75,593						74,271
Less depreciation - non real estate						(87)						(85)						(88)						(93)						(88)									(353)						(322)
Less depreciation - partially owned entities						(33)						(31)						(33)						(282)						(454)									(379)						(2,059)
Gain on sale of real estate						(17)						(25,676)						190						—						(57,850)									(25,503)						(97,624)
FFO applicable to common shares and Units						$	13,700					$	12,611					$	12,391					$	8,654					$	11,735								$	47,356					$	52,866
Adjustments to Core FFO:
Casualty loss (recovery)						204						545						—						—						—									749						—
Loss on extinguishment of debt						2						4						17						—						864									23						2,360
Rebranding costs						402						—						—						—						—									402						—
Gain on litigation settlement						—						—						—						—						—									—						(6,586)
(Gain) loss on marketable securities						—						—						(175)						3,553						(113)									3,378						—
(Discount) premium on redemption of preferred shares						—						1						(25)						(273)						—									(297)						(113)
Core FFO applicable to common shares and Units						$	14,308					$	13,161					$	12,208					$	11,934					$	12,486								$	51,611					$	48,527
FFO applicable to common shares and Units						$	13,700					$	12,611					$	12,391					$	8,654					$	11,735								$	47,356					$	52,866
Dividends to preferred unitholders						160						160						160						160						160									640						537
FFO applicable to common shares and Units - diluted						$	13,860					$	12,771					$	12,551					$	8,814					$	11,895								$	47,996					$	53,403
Core FFO applicable to common shares and Units						$	14,308					$	13,161					$	12,208					$	11,934					$	12,486								$	51,611					$	48,527
Dividends to preferred unitholders						160						160						160						160						160									640						537
Core FFO applicable to common shares and Units - diluted						$	14,468					$	13,321					$	12,368					$	12,094					$	12,646								$	52,251					$	49,064
Per Share Data
Earnings (loss) per share and unit - diluted						$	(0.46)					$	1.38					$	(0.44)					$	(0.67)					$	3.89								$	(0.15)					$	6.00
FFO per share and unit - diluted						$	0.97					$	0.90					$	0.93					$	0.66					$	0.90								$	3.47					$	4.05
Core FFO per share and unit - diluted						$	1.02					$	0.94					$	0.91					$	0.90					$	0.96								$	3.78					$	3.72
Weighted average shares and units - diluted						14,222						14,143						13,558						13,401						13,188									13,835						13,182

S-7

Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted EBITDA

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain or loss on sale of real estate and other investments, impairment of real estate investments, gain or loss on extinguishment of debt, gain on litigation settlement, and gain/loss from involuntary conversion. Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP. The company considers Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, financing costs, or non-operating gains and losses.

						(in thousands)
						Three Months Ended																																	Twelve Months Ended
						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019									12/31/2020						12/31/2019
Net income (loss) attributable to controlling interests						$	(4,378)					$	19,629					$	(3,803)					$	(7,007)					$	48,658								$	4,441					$	78,669
Adjustments:
Dividends to preferred unitholders						160						160						160						160						160									640						537
Noncontrolling interests – Operating Partnership						(460)						1,387						(447)						(692)						4,202									(212)						6,752
Income (loss) before noncontrolling interests – Operating Partnership						(4,678)						21,176						(4,090)						(7,539)						53,020									4,869						85,958
Adjustments:
Interest expense						6,888						6,756						6,926						6,764						7,112									27,334						29,461
Loss on extinguishment of debt						2						4						17						—						864									23						2,360
Depreciation/amortization related to real estate investments						20,250						18,964						18,123						17,878						18,518									75,215						72,213
Casualty loss (recovery)						204						545						—						—						—									749						—
Interest income						(328)						(256)						(331)						(597)						(415)									(1,512)						(1,626)
Gain (loss) on sale of real estate and other investments						(17)						(25,676)						190						—						(57,850)									(25,503)						(97,624)
Gain on litigation settlement						—						—						—						—						—									—						(6,586)
(Gain) loss on marketable securities						—						—						(175)						3,553						(113)									3,378						(113)
Adjusted EBITDA						$	22,321					$	21,513					$	20,660					$	20,059					$	21,136								$	84,553					$	84,043

S-8

CENTERSPACE

DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

						Future Maturities of Debt
						Secured Fixed Debt						Unsecured Fixed Debt(1)						Unsecured Variable Debt						Total Debt						% of Total Debt						Weighted Average Interest Rate(2)
2021						$	20,270					$	—					$	5,871					$	26,141					3.6		%				5.16		%
2022						33,515						50,000						97,000						180,515						25.0		%				2.66		%
2023						43,721						—						—						43,721						6.1		%				4.02		%
2024						—						70,000						—						70,000						9.7		%				3.65		%
2025						32,915						75,000						—						107,915						15.0		%				4.34		%
Thereafter						168,024						125,000						—						293,024						40.6		%				3.74		%
Total debt						$	298,445					$	320,000					$	102,871					$	721,316					100.0		%				3.62		%

(1)Term loans have variable interest rates that are fixed with interest rate swaps and $50.0 million of the variable interest rate, primary line of credit is fixed with an interest rate swap.

(2)Weighted average interest rate of debt that matures during the year, including the effect of interest rate swaps on the term loans and line of credit.

						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019
Debt Balances Outstanding
Secured fixed rate						$	298,445					$	314,511					$	325,230					$	329,988					$	331,376
Unsecured fixed rate line of credit(1)						50,000						50,000						50,000						50,000						50,000
Unsecured variable rate line of credit						102,871						85,000						13,000						33,000						79
Unsecured term loans						145,000						145,000						145,000						145,000						145,000
Unsecured senior notes						125,000						125,000						125,000						125,000						125,000
Debt total						$	721,316					$	719,511					$	658,230					$	682,988					$	651,455
Quarterly Weighted Average Interest Rates
Mortgage debt						3.93		%				3.99		%				4.01		%				4.01		%				4.02		%
Lines of credit (rate with swap)(1)						2.35		%				3.35		%				2.97		%				3.18		%				3.52		%
Term loan (rate with swap)						4.18		%				4.18		%				4.12		%				4.13		%				4.19		%
Senior notes						3.78		%				3.78		%				3.78		%				3.78		%				3.78		%
Total debt						3.62		%				3.68		%				3.87		%				3.92		%				3.97		%

(1)A portion of the primary line of credit is fixed through an interest rate swap.

Debt Maturity by Quarter for the Next Two Years

Year						First Quarter						Second Quarter						Third Quarter						Fourth Quarter						Total
2021						$	—					$	1,997					$	24,144					$	—					$	26,141
2022(1)						2,508						4,866						173,141						—						180,515
																														$	206,656

(1)Includes primary line of credit with a balance of $147.0 million which has a 12-month extension available, subject to customary terms.

S-9

CENTERSPACE

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019
Equity Capitalization
Common shares outstanding						13,027						12,976						12,827						12,164						12,099
Operating partnership units outstanding						977						1,018						1,022						1,044						1,058
Total common shares and units outstanding						14,004						13,994						13,849						13,208						13,157
Market price per common share (closing price at end of period)						$	70.64					$	65.17					$	70.49					$	55.00					$	72.50
Equity capitalization-common shares and units						$	989,243					$	911,989					$	976,216					$	726,440					$	953,883
Recorded book value of preferred shares						$	93,530					$	93,530					$	93,579					$	96,046					$	99,456
Total equity capitalization						$	1,082,773					$	1,005,519					$	1,069,795					$	822,486					$	1,053,339
Series D preferred units						$	16,560					$	16,560					$	16,560					$	16,560					16,560
Debt capitalization
Total debt						721,317						719,511						658,230						682,988						651,455
Total capitalization						$	1,820,650					$	1,741,590					$	1,744,585					$	1,522,034					$	1,721,354
Total debt to total capitalization(1)						39.6%						41.3		%				37.7		%				44.9		%				37.8		%

(1)Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet, market value of common shares and operating partnership units, and book value of Series C preferred shares and Series D preferred units outstanding at the end of the period.

						Three Months Ended																																	Twelve Months Ended
						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019									12/31/2020						12/31/2019
Debt service coverage ratio(1)						2.73		x				2.65		x				2.48		x				2.42		x				2.39		x							2.57		x				2.18		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.28		x				2.21		x				2.05		x				1.97		x				1.98		x							2.13		x				1.83		x
Net debt/Adjusted EBITDA(2)						8.07		x				8.17		x				7.33		x				8.18		x				7.19		x							8.53		x				7.23		x
Net debt and preferred equity/Adjusted EBITDA(2)						9.31		x				9.45		x				8.66		x				9.59		x				8.56		x							9.83		x				8.61		x
Distribution Data
Common shares and units outstanding at record date						14,004						13,994						13,849						13,208						13,157									14,004						13,157
Total common distribution declared						$	9,803					$	9,796					$	9,694					$	9,245					$	9,210								$	38,538					$	36,438
Common distribution per share and unit						$	0.70					$	0.70					$	0.70					$	0.70					$	0.70								$	2.80					$	2.80
Payout ratio (Core FFO per diluted share and unit basis)(3)						68.6		%				74.5		%				76.9		%				77.8		%				72.9		%							74.1		%				75.3		%

(1)Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization.

(2)Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). For the quarterly period presented, adjusted EBITDA is annualized. Net debt and adjusted EBITDA are non-GAAP measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section.

(3)Payout ratio (Core FFO per diluted share and unit basis) is the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per diluted share and unit. This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP.

S-10

CENTERSPACE

SAME-STORE FOURTH QUARTER COMPARISONS

(dollars in thousands)

						Homes Included						Revenues																		Expenses																		NOI
Regions												Q42020						Q42019						% Change						Q42020						Q42019						% Change						Q42020						Q42019						% Change
Denver, CO						664						$	3,777					$	3,820					(1.1)		%				$	1,115					$	1,134					(1.7)		%				$	2,662					$	2,686					(0.9)		%
Minneapolis, MN						1,987						8,978						8,867						1.3		%				3,893						3,907						(0.4)		%				5,085						4,960						2.5		%
North Dakota						2,422						8,011						7,724						3.7		%				3,070						2,987						2.8		%				4,941						4,737						4.3		%
Omaha, NE						1,370						3,891						3,751						3.7		%				1,648						1,721						(4.2)		%				2,243						2,030						10.5		%
Rochester, MN						1,711						6,357						6,385						(0.4)		%				2,771						2,571						7.8		%				3,586						3,814						(6.0)		%
St. Cloud, MN						1,190						3,656						3,550						3.0		%				1,602						1,719						(6.8)		%				2,054						1,831						12.2		%
Other Markets(1)						1,223						3,912						3,621						8.0		%				1,271						1,393						(8.8)		%				2,641						2,228						18.5		%
Same-Store Total						10,567						$	38,582					$	37,718					2.3		%				$	15,370					$	15,432					(0.4)		%				$	23,212					$	22,286					4.2		%

						% of NOI						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												Q42020						Q42019						Growth						Q42020						Q42019						% Change						Q42020						Q42019						% Change
Denver, CO						11.5		%				94.1		%				93.2		%				0.9		%				$	1,776					$	1,846					(3.8)		%				$	2,015					$	2,057					(2.0)		%
Minneapolis, MN						21.8		%				93.9		%				92.0		%				1.9		%				1,490						1,497						(0.5)		%				1,604						1,616						(0.7)		%
North Dakota						21.3		%				95.8		%				95.7		%				0.1		%				1,061						1,040						2.0		%				1,151						1,111						3.6		%
Omaha, NE						9.7		%				93.8		%				93.5		%				0.3		%				912						897						1.7		%				1,010						977						3.4		%
Rochester, MN						15.4		%				95.0		%				94.5		%				0.5		%				1,242						1,251						(0.7)		%				1,304						1,316						(0.9)		%
St. Cloud, MN						8.9		%				94.6		%				94.0		%				0.6		%				973						950						2.4		%				1,082						1,058						2.3		%
Other Markets(1)						11.4		%				98.1		%				95.7		%				2.4		%				980						945						3.7		%				1,087						1,031						5.4		%
Same-Store Total						100.0		%				95.0		%				94.0		%				1.0		%				$	1,177					$	1,171					0.5		%				$	1,282					$	1,266					1.3		%

(1)Includes apartment communities in Billings, Montana and Rapid City, South Dakota.

(2)Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. Scheduled rent represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.

(3)Average monthly rental rate is scheduled rent divided by the total number of apartment homes.

(4)Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.

S-11

CENTERSPACE

SAME-STORE SEQUENTIAL QUARTER COMPARISONS(1)

(dollars in thousands)

						Homes Included						Revenues																		Expenses																		NOI
Regions												Q42020						Q32020						% Change						Q42020						Q32020						% Change						Q42020						Q32020						% Change
Denver, CO						664						$	3,777					$	3,724					1.4		%				$	1,115					$	1,298					(14.1)		%				$	2,662					$	2,426					9.7		%
Minneapolis, MN						1,987						8,978						8,892						1.0		%				3,893						3,859						0.9		%				5,085						5,033						1.0		%
North Dakota						2,422						8,011						7,853						2.0		%				3,070						3,146						(2.4)		%				4,941						4,707						5.0		%
Omaha, NE						1,370						3,891						3,884						0.2		%				1,648						1,790						(7.9)		%				2,243						2,094						7.1		%
Rochester, MN						1,711						6,357						6,351						0.1		%				2,771						3,074						(9.9)		%				3,586						3,277						9.4		%
St. Cloud, MN						1,190						3,656						3,548						3.0		%				1,602						1,603						(0.1)		%				2,054						1,945						5.6		%
Other Markets						1,223						3,912						3,791						3.2		%				1,271						1,428						(11.0)		%				2,641						2,363						11.8		%
Same-Store Total						10,567						$	38,582					$	38,043					1.4		%				$	15,370					$	16,198					(5.1)		%				$	23,212					$	21,845					6.3		%

						% of NOI						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												Q42020						Q32020						Growth						Q42020						Q32020						% Change						Q42020						Q32020						% Change
Denver, CO						11.5		%				94.1		%				92.8		%				1.4		%				$	1,776					$	1,801					(1.4)		%				$	2,015					$	2,014					—
Minneapolis, MN						21.8		%				93.9		%				93.4		%				0.5		%				1,490						1,496						(0.4)		%				1,604						1,596						0.5		%
North Dakota						21.3		%				95.8		%				95.5		%				0.3		%				1,061						1,054						0.7		%				1,151						1,131						1.8		%
Omaha, NE						9.7		%				93.8		%				93.8		%				—						912						913						(0.1)		%				1,010						1,008						0.2		%
Rochester, MN						15.4		%				95.0		%				94.1		%				1.0		%				1,242						1,249						(0.6)		%				1,304						1,315						(0.8)		%
St. Cloud, MN						8.9		%				94.6		%				94.4		%				0.2		%				973						965						0.8		%				1,082						1,053						2.8		%
Other Markets						11.4		%				98.1		%				97.1		%				1.0		%				980						970						1.0		%				1,087						1,064						2.2		%
Same-Store Total						100.0		%				95.0		%				94.4		%				0.6		%				$	1,177					$	1,178					(0.1)		%				$	1,282					$	1,271					0.9		%

(1)Refer to footnotes on page S-11.

S-12

CENTERSPACE

SAME-STORE YEAR-TO-DATE COMPARISONS(1)

(dollars in thousands)

						Homes Included						Revenues																		Expenses																		NOI
Regions												2020						2019						% Change						2020						2019						% Change						2020						2019						% Change
Denver, CO						664						$	15,129					$	15,154					(0.2)		%				$	4,767					$	4,748					0.4		%				$	10,362					$	10,406					(0.4)		%
Minneapolis, MN						1,987						36,050						35,407						1.8		%				15,148						15,103						0.3		%				20,902						20,304						2.9		%
North Dakota						2,422						31,342						30,475						2.8		%				12,861						12,874						(0.1)		%				18,481						17,601						5.0		%
Omaha, NE						1,370						15,427						14,949						3.2		%				6,846						6,870						(0.3)		%				8,581						8,079						6.2		%
Rochester, MN						1,711						25,617						25,346						1.1		%				11,471						9,861						16.3		%				14,146						15,485						(8.6)		%
St. Cloud, MN						1,190						14,362						14,127						1.7		%				6,485						6,609						(1.9)		%				7,877						7,518						4.8		%
Other Markets						1,223						14,863						14,157						5.0		%				5,649						5,557						1.7		%				9,214						8,600						7.1		%
Same-Store Total						10,567						$	152,790					$	149,615					2.1		%				$	63,227					$	61,622					2.6		%				$	89,563					$	87,993					1.8		%

						% of NOI						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												2020						2019						Growth						2020						2019						% Change						2020						2019						% Change
Denver, CO						11.6		%				93.7		%				94.1		%				(0.4)		%				$	1,812					$	1,834					(1.2)		%				$	2,026					$	2,022					0.2		%
Minneapolis, MN						23.3		%				93.9		%				92.7		%				1.2		%				1,491						1,480						0.7		%				1,611						1,601						0.6		%
North Dakota						20.6		%				95.9		%				95.2		%				0.7		%				1,049						1,040						0.9		%				1,125						1,101						2.1		%
Omaha, NE						9.6		%				94.2		%				93.8		%				0.4		%				905						889						1.8		%				996						970						2.8		%
Rochester, MN						15.8		%				95.3		%				95.2		%				0.1		%				1,244						1,237						0.6		%				1,309						1,296						1.0		%
St. Cloud, MN						8.8		%				94.4		%				94.7		%				(0.3)		%				959						950						0.9		%				1,065						1,044						2.0		%
Other Markets						10.3		%				96.5		%				95.8		%				0.7		%				961						935						2.8		%				1,050						1,007						4.3		%
Same-Store Total						100.0		%				94.8		%				94.4		%				0.4		%				$	1,173					$	1,163					0.9		%				$	1,270					$	1,250					1.7		%

(1)Refer to footnotes on page S-11.

S-13

CENTERSPACE

PORTFOLIO SUMMARY (1)

						Three Months Ended
						12/31/2020						9/30/2020						6/30/2020						3/31/2020						12/31/2019
Number of Apartment Homes at Period End
Same-Store						10,567						10,567						11,257						11,257						10,402
Non-Same-Store						1,343						1,343						878						878						1,551
All Communities						11,910						11,910						12,135						12,135						11,953
Average Monthly Rental Rate(2)
Same-Store						$	1,177					$	1,178					$	1,142					$	1,135					$	1,085
Non-Same-Store						1,599						1,597						1,594						1,572						1,722
All Communities						$	1,225					$	1,210					$	1,175					$	1,163					$	1,168
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,282					$	1,271					$	1,232					$	1,237					$	1,169
Non-Same-Store						1,708						1,729						1,681						1,658						1,869
All Communities						$	1,330					$	1,307					$	1,264					$	1,263					$	1,260
Weighted Average Occupancy(4)
Same-Store						95.0		%				94.4		%				94.6		%				95.4		%				94.0		%
Non-Same-Store						92.3		%				93.9		%				93.9		%				93.3		%				93.0		%
All Communities						94.6		%				94.3		%				94.5		%				95.2		%				93.8		%
Operating Expenses as a % of Scheduled Rent
Same-Store						41.2		%				43.4		%				41.5		%				45.0		%				43.5		%
Non-Same-Store						35.3		%				39.7		%				36.1		%				37.0		%				33.8		%
All Communities						40.3		%				43.0		%				41.0		%				44.3		%				41.6		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	326					$	293					$	262					$	151					$	427

(1)Previously reported amounts are not revised for changes in the composition of the same-store properties pool.

(2)Average monthly rental rate is scheduled rent divided by the total number of apartment homes. Scheduled rent represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant apartment homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant apartment homes.

(3)Average monthly revenue per occupied apartment home is defined as total rental revenues divided by the weighted average occupied apartment homes for the period.

(4)Weighted average occupancy is the percentage resulting from dividing actual rental revenue by scheduled rent. The company believes that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy, and calculation of weighted average occupancy may not be comparable to that disclosed by other real estate companies.

S-14

CENTERSPACE

CAPITAL EXPENDITURES

(dollars in thousands, except per home amounts)

						Three Months Ended															Twelve Months Ended
						12/31/2020						12/31/2019									12/31/2020						12/31/2019
Total Same-Store Apartment Homes						10,567						10,567									10,567						10,567
Building - Exterior(1)						$	1,510					$	1,287								$	3,106					$	1,802
Building - Interior(1)						32						191									234						340
Mechanical, Electrical, & Plumbing(1)						436						762									1,888						1,408
Furniture & Equipment						73						146									316						365
Landscaping & Grounds						357						713									1,523						1,546
Turnover						1,033						836									3,586						2,992
Capital Expenditures - Same-Store						$	3,441					$	3,935								$	10,653					$	8,453
Capital Expenditures per Apartment Home - Same-Store						$	326					$	372								$	1,008					$	800
Value Add						$	2,975					$	1,712								$	10,280					$	4,090
Total Capital Spend - Same-Store						$	6,416					$	5,647								$	20,933					$	12,543
Total Capital Spend per Apartment Home - Same Store						$	607					$	534								$	1,981					$	1,187
All Properties - Weighted Average Homes						11,910						11,909									11,570						12,862
Capital Expenditures						$	3,968					$	4,939								$	12,159					$	11,128
Capital Expenditures per Apartment Home						$	333					$	415								$	1,051					$	865
Value Add						3,496						2,014									13,901						5,011
Acquisition Capital						302						$	1,814								1,567						3,713
Total Capital Spend						$	7,766					$	8,767								$	27,627					$	19,852
Total Capital Spend per Apartment Home						$	652					$	736								$	2,388					$	1,543
Value Add Capital Expenditures
Interior - Units
Same-Store						$	875					$	1,072								$	4,321					$	2,501
Non-Same-Store						390						18									1,684						67
Total Interior Units						$	1,265					$	1,090								$	6,005					$	2,568
Expected Year 1 Annual ROI						16.0		%				17.3		%							17.0		%				16.7		%
Common Areas and Exteriors
Same-Store						$	2,100					$	640								$	5,959					$	1,589
Non-Same-Store						131						284									1,937						854
Total Common Areas and Exteriors						$	2,231					$	924								$	7,896					$	2,443
Expected Year 1 Annual ROI						9.0		%				14.6		%							11.2		%				14.7		%
Total Value-Add Capital Expenditures
Same-Store						$	2,975					$	1,712								$	10,280					$	4,090
Non-Same-Store						521						302									3,621						921
Total Portfolio Value-Add						$	3,496					$	2,014								$	13,901					$	5,011
Expected Year 1 Annual ROI						11.5		%				16.1		%							13.7		%				15.7		%

(1)Previously disclosed amounts for capital expenditures related to mechanical, electrical, and plumbing were reclassified from Building - Exterior and Building - Interior into Mechanical, Electrical, & Plumbing.

S-15

CENTERSPACE

2021 Financial Outlook

(in thousands, except per share amounts)

Centerspace is providing guidance for 2021.

			12 Months Ended						2021 Full-Year Guidance Range
			December 31, 2020						Low						High
			Actuals						Amount						Amount
Same-store growth (1)
Revenue			$	165,807					(0.5)		%				3.0		%
Controllable expenses			$	42,902					5.0		%				8.5		%
Non-controllable expenses			$	24,990					2.5		%				6.0		%
Total Expenses			$	67,892					4.0		%				7.5		%
Same-store NOI (1)			$	97,915					(3.5)		%				(0.5)		%
Components of NOI
Same-store NOI (1)			$	97,915					$	94,200					$	97,600
Non-same-store NOI (1)			$	3.272					$	7,900					$	8,200
Other Commercial NOI			$	1,770					$	1,700					$	1,800
Other Sold NOI			$	1,879					—						—
Total NOI			$	104,836					$	103,800					$	107,600
Accretion from investments and capital market activity, excluding impact from change in share count			$	—					1,300						990
Interest expense			$	(27,525)					(28,650)						(30,000)
Preferred dividends			$	(6,528)					(6,430)						(6,430)
Recurring income and expenses
Interest and other income			$	(1,657)					2,580						2,580
General and administrative and property management			$	(19,241)					(23,670)						(22,000)
Casualty losses			$	(1,662)					(1,750)						(1,250)
Non-real estate depreciation and amortization			$	(353)					(280)						(280)
Non-controlling interest			$	126					(65)						(70)
Total recurring income and expenses			$	(22,787)					(23,185)						$	(21,020)
FFO			$	47,996					$	46,835					$	51,140
FFO per diluted share			$	3.47					$	3.17					$	3.52
Non-core income and expenses
Casualty loss			$	749					$	580					$	420
Technology implementation costs			—						1,190						990
Other miscellaneous items			3,507						—						—
Total non-core income and expenses			$	4,256					$	1,770					$	1,410
Core FFO			$	52,252					$	48,605					$	52,550
Core FFO per diluted share			$	3.78					$	3.29					$	3.62
EPS - Diluted			$	(0.15)					$	(0.18)					$	0.45
Weighted average shares outstanding - diluted			13,835						14,773						14,515

(1)Amounts for the year ended December 31, 2020 reflect the 2021 same-store pool.

Additional assumptions:

•Same-store capital expenditures of $912 per home to $1,012 per home

•Value-add expenditures of $15.0 million to $20.0 million

•Investments of $145.0 million to $170.0 million, which includes the January 2021 acquisition of Union Pointe in Longmont, Colorado

•Dispositions of $55.0 million to $75.0 million

•Proceeds of $50.0 million to $70.0 million from equity issuance

S-16

Reconciliation of Net Income (Loss) Available to Common Shareholders to FFO and Core FFO

The following table presents reconciliations of Net income (loss) available to common shareholders to FFO and Core FFO, which are non-GAAP financial measures described in greater detail under "Non-GAAP Financial Measures and Reconciliations." They should not be considered as alternatives to net income or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO and Core FFO also do not represent cash generated from operating activities in accordance with GAAP, nor are they indicative of funds available to fund all cash needs, including the ability to service indebtedness or make distributions to shareholders. The outlook and projections provided below are based on current expectations and are forward-looking.

												Outlook
			12 Months Ended									12 Months Ended
			December 31, 2020									December 31, 2021
			Amount									Low						High
Net income (loss) available to common shareholders			$	(1,790)								$	(1,274)					$	8,031
Noncontrolling interests - Operating Partnership			(212)									(1,456)						(1,456)
Depreciation and amortization			75,593									71,424						71,424
Less depreciation - non real estate			(353)									(280)						(280)
Less depreciation - partially owned entities			(379)									(95)						(95)
(Gain) loss on sale of real estate			(25,503)									(22,124)						(27,124)
Dividends to preferred unitholders			$	640								$	640					$	640
FFO applicable to common shares and Units			$	47,996								$	46,835					$	51,140
Adjustments to Core FFO:
Casualty loss write off			749									580						420
Loss on extinguishment of debt			23									—						—
Rebranding costs			402									—						—
(Gain) loss on marketable securities			3,378									—						—
(Discount) premium on redemption of preferred shares			(297)									—						—
Technology implementation costs			—									1,190						990
Core FFO applicable to common shares and Units			$	52,251								$	48,605					$	52,550
Earnings per share - diluted			$	(0.15)								$	(0.18)					$	0.45
FFO per share - diluted			$	3.47								$	3.17					$	3.52
Core FFO per share - diluted			$	3.78								$	3.29					$	3.62

S-17