Exhibit 99.1

Earnings Release

Centerspace Reports Third Quarter 2021 Financial Results and Increases Financial Outlook

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

						Three Months Ended September 30,												Nine Months Ended September 30,
Per Share						2021						2020						2021						2020
Net Income - diluted						$	(0.81)					$	1.38					$	0.12					$	0.33
FFO - diluted						$	0.60					$	0.90					$	2.44					$	2.49
Core FFO - diluted						$	0.98					$	0.94					$	2.91					$	2.76

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results						Q3 2021 vs. Q3 2020						Q3 2021 vs. Q2 2021						2021 vs. 2020
Revenues						6.2		%				3.7		%				3.3		%
Expenses						4.4		%				3.6		%				2.9		%
NOI						7.5		%				3.8		%				3.6		%

						Three months ended
Same-Store Results						September 30, 2021						June 30, 2021						September 30, 2020
Weighted Average Occupancy						94.3		%				94.9		%				94.3		%

(1)NOI, FFO, Core FFO, and same-store results 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” below.

Highlights

•Net Loss was $(0.81) per diluted share for the third quarter of 2021, compared to Net Income of $1.38 per diluted share for the same period of 2020;

•Core FFO increased 4.3% to $0.98 per diluted share for the three months ended September 30, 2021, compared to $0.94 for the three months ended September 30, 2020 and 5.4% to $2.91 per diluted share for the nine months ended September 30, 2021, compared to $2.76 for the nine months ended September 30, 2020;

•Same-store revenues increased by 6.2% for the third quarter of 2021 compared to the third quarter of 2020;

•Same-store new lease over lease rates were 10.8% for the third quarter of 2021, compared to 0.0% in the same period of the prior year. Same-store renewal lease over lease rates were 7.2% for the third quarter of 2021, compared to 0.6% for the same period the prior year. Same-store blended lease over lease rates were 9.0% for the third quarter of 2021, compared to 0.4% for the same period the prior year;

•Full year earnings per share mid-point outlook of $(0.30) resulting in a 3% increase in Core FFO from our prior outlook;

•Continued to grow the portfolio through the strategic portfolio acquisition comprised of 14 communities in Minneapolis, Minnesota and three communities in St. Cloud, Minnesota totaling 2,696 apartment homes for an aggregate acquisition cost of $359.9 million;

•Issued $125.0 million of unsecured notes with a weighted average interest rate of 2.6% and weighted average maturity of 10.5 years with tranches of $35.0 million in 2030, $50.0 million in 2031, $25.0 million in 2032 and $15.0 million in 2034;

1

•Improved and extended $250.0 million revolving credit facility with an accordion feature for up to $400.0 million which matures in September 2025; and

•Continued to strengthen the balance sheet by issuing 199,000 common shares under the ATM program for net proceeds of $19.6 million.

Acquisitions and Dispositions

On September 1, 2021, Centerspace closed on its strategic portfolio acquisition in Minneapolis and St. Cloud, Minnesota for an aggregate acquisition cost of $359.9 million. The portfolio is comprised of 14 communities in Minneapolis, Minnesota and three communities in St. Cloud, Minnesota. The acquisition added 2,696 apartments homes to the portfolio. Centerspace fully funded the acquisition with the issuance of $181.4 million of Convertible Preferred Operating Partnership Units at $100.0 dollar par value that pay a 3.875% dividend rate and are convertible into common units at an exchange rate of 1.2048 common units per Convertible Preferred Operating Partnership Units representing a conversion price of $83.00 per unit. The acquired assets were subject to $126.5 million in mortgage liabilities of which $20.0 million was assumed at a rate of 4.31% with the remaining $106.5 million refinanced through a $198.9 million Fannie Mae Credit Facility. The Fannie Mae Credit facility includes tranches in 7, 10 and 12-year increments with a weighted average interest rate of 2.78%. The additional proceeds from the refinancing were used to reduce the outstanding balance under our bank credit facility.

Subsequent to the end of the quarter, Centerspace sold its sole remaining commercial property Minot IPS located in Minot, North Dakota on October 18th for an aggregate sale price of $2.3 million.

Balance Sheet

At the end of the third quarter, Centerspace had $219.8 million of total liquidity on its balance sheet, consisting of $199.0 million available under the line of credit and cash and cash equivalents of $20.8 million.

In the three months ended September 30, 2021, Centerspace issued $125.0 million of unsecured notes with a weighted average interest rate of 2.6% and weighted average maturity of 10.5 years.

During the quarter, Centerspace amended and extended our existing $250.0 million revolving credit facility. The new facility includes an accordion feature for up to $400.0 million and matures in September 2025 with two optional six-month extensions.

Revised 2021 Financial Outlook

Centerspace revised its 2021 financial outlook, which includes the acquisition of KMS on September 1, 2021. For additional information, see S-16 of the Supplemental Financial and Operating Data for the quarter ended September 30, 2021 included at the end of this release. These ranges should be considered in their entirety. The revised outlook is:

			Previous Outlook for 2021						Updated Outlook for 2021
			Low			High			Low			High
Earnings per Share – diluted			$	0.58		$	0.76		$	(0.36)		$	(0.24)
Same-Store Revenue			2.0		%	3.5		%	3.5		%	4.0		%
Same-Store Expenses			4.0		%	6.0		%	4.5		%	5.0		%
Same-Store NOI			0.5		%	2.0		%	3.0		%	3.5		%
FFO per Share – diluted			$	3.64		$	3.83		$	3.40		$	3.52
Core FFO per Share – diluted			$	3.78		$	3.94		$	3.92		$	4.02

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.

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Upcoming Events

Centerspace is scheduled to participate in the upcoming National Association of Real Estate Investment Trusts ("Nareit") REITworld 2021 Annual Conference, which will be held virtually November 9-11.

Earnings Call

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

Live Conference Call

Conference Call Replay

Tuesday, November 2, 2021, at 10:00 AM ET

Replay available until November 16, 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

10160003

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended September 30, 2021 included herein (“Supplemental Information”), is available in the Investors section on Centerspace’s website at 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 September 30, 2021, Centerspace owned 79 apartment communities consisting of 14,275 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

Forward-Looking Statements

Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on the company's current expectations and assumptions, and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. Such risks, uncertainties, and other factors that might cause such differences include, but are not limited to those risks and uncertainties detailed from time to time in Centerspace's filings with the Securities and Exchange Commission, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in its Annual Report on Form 10-K for the year ended December 31, 2020, in its subsequent quarterly reports on Form 10-Q, and in other public reports. The company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

Contact Information

Investor Relations

Emily Miller

Phone: 701-837-7104

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

September 30, 2021

			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			S-4
Same-Store Controllable Expenses			S-5
Funds From Operations and Core 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
Capital Expenditures			S-15
2021 Financial Outlook			S-16

Common Share Data (NYSE: CSR)

						3rd Quarter						2nd Quarter						1st Quarter						4th Quarter						3rd Quarter
						2021						2021						2021						2020						2020
High closing price						$	105.42					$	79.71					$	73.42					$	74.55					$	73.53
Low closing price						$	78.42					$	67.28					$	68.00					$	65.79					$	61.87
Average closing price						$	94.10					$	71.99					$	71.37					$	70.30					$	70.15
Closing price at end of quarter						$	94.50					$	78.90					$	68.00					$	70.64					$	65.17
Common share distributions – annualized						$	2.88					$	2.80					$	2.80					$	2.80					$	2.80
Closing dividend yield – annualized						3.1		%				3.6		%				4.1		%				4.0		%				4.3		%
Closing common shares outstanding (thousands)						14,281						14,045						13,220						13,027						12,976
Closing limited partnership units outstanding (thousands)						845						881						950						977						1,018
Closing Series E preferred units outstanding, as converted (thousands)						2,186						—						—						—						—
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)						$	1,635,984					$	1,177,661					$	963,560					$	989,243					$	911,989

S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)

						Three Months Ended																																	Nine Months Ended
						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020									9/30/2021						9/30/2020
REVENUE						$	50,413					$	46,656					$	46,648					$	45,540					$	44,138								$	143,717					$	132,454
EXPENSES
Property operating expenses, excluding real estate taxes						14,434						13,018						13,449						12,668						13,129									40,901						38,957
Real estate taxes						5,916						5,742						5,792						5,256						5,402									17,450						16,277
Property management expense						2,203						2,085						1,767						1,460						1,442									6,055						4,341
Casualty (gain) loss						(10)						(27)						101						331						91									64						1,331
Depreciation/amortization						22,447						19,308						19,992						20,282						18,995									61,747						55,311
General and administrative expenses						4,279						3,797						3,906						3,733						3,077									11,982						9,707
TOTAL EXPENSES						$	49,269					$	43,923					$	45,007					$	43,730					$	42,136								$	138,199					$	125,924
Operating income						1,144						2,733						1,641						1,810						2,002									5,518						6,530
Interest expense						(7,302)						(7,089)						(7,231)						(6,903)						(6,771)									(21,622)						(20,622)
Interest and other income (loss)						(5,082)						619						431						404						277									(4,032)						(1,979)
Income (loss) before gain (loss) on sale of real estate and other investments						(11,240)						(3,737)						(5,159)						(4,689)						(4,492)									(20,136)						(16,071)
Gain (loss) on sale of real estate and other investments						—						26,840						—						17						25,676									26,840						25,486
Net income (loss)						$	(11,240)					$	23,103					$	(5,159)					$	(4,672)					$	21,184								$	6,704					$	9,415
Dividends to Series D preferred unitholders						(160)						(160)						(160)						(160)						(160)									(480)						(480)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units						1,930						(1,386)						469						460						(1,387)									1,013						(248)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities						(22)						(19)						(17)						(6)						(8)									(58)						132
Net income (loss) attributable to controlling interests						(9,492)						21,538						(4,867)						(4,378)						19,629									7,179						8,819
Dividends to preferred shareholders						(1,607)						(1,607)						(1,607)						(1,607)						(1,607)									(4,821)						(4,921)
Discount (premium) on redemption of preferred shares						—						—						—						—						(1)									—						297
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	(11,099)					$	19,931					$	(6,474)					$	(5,985)					$	18,021								$	2,358					$	4,195
Per Share Data - Basic
Net earnings (loss) per common share – basic						$	(0.79)					$	1.49					$	(0.49)					$	(0.46)					$	1.40								$	0.17					$	0.33
Per Share Data - Diluted
Net earnings (loss) per common share – diluted						$	(0.81)					$	1.48					$	(0.49)					$	(0.46)					$	1.38								$	0.12					$	0.33

S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020
ASSETS
Real estate investments
Property owned						$	2,203,606					$	1,838,837					$	1,883,407					$	1,812,557					$	1,805,390
Less accumulated depreciation						(426,926)						(407,400)						(408,014)						(399,249)						(380,392)
						1,776,680						1,431,437						1,475,393						1,413,308						1,424,998
Mortgage loans receivable						42,160						37,457						30,107						24,661						17,986
Total real estate investments						1,818,840						1,468,894						1,505,500						1,437,969						1,442,984
Cash and cash equivalents						20,816						5,194						10,816						392						16,804
Restricted cash						2,376						8,444						1,610						6,918						2,199
Other assets						34,919						17,218						18,427						18,904						16,947
TOTAL ASSETS						$	1,876,951					$	1,499,750					$	1,536,353					$	1,464,183					$	1,478,934
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	58,092					$	52,413					$	53,852					$	55,609					$	58,596
Revolving line of credit						57,000						87,000						181,544						152,871						135,000
Notes payable, net of loan costs						299,454						319,286						319,236						269,246						269,202
Mortgages payable, net of loan costs						489,140						287,143						293,709						297,074						313,065
TOTAL LIABILITIES						$	903,686					$	745,842					$	848,341					$	774,800					$	775,863
SERIES D PREFERRED UNITS						$	21,585					$	18,022					$	16,560					$	16,560					$	16,560
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,530						93,530						93,530						93,530
Common Shares of Beneficial Interest						1,092,130						1,033,940						980,453						968,263						968,436
Accumulated distributions in excess of net income						(454,691)						(433,310)						(443,409)						(427,681)						(412,577)
Accumulated other comprehensive income (loss)						(5,784)						(12,064)						(12,798)						(15,905)						(17,256)
Total shareholders’ equity						$	725,185					$	682,096					$	617,776					$	618,207					$	632,133
Noncontrolling interests – Operating Partnership and Series E preferred units						225,850						53,133						53,007						53,930						53,669
Noncontrolling interests – consolidated real estate entities						645						657						669						686						709
Total equity						$	951,680					$	735,886					$	671,452					$	672,823					$	686,511
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	1,876,951					$	1,499,750					$	1,536,353					$	1,464,183					$	1,478,934

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 us, may not be comparable to non-GAAP financial 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 newly-constructed properties, have achieved a target level of physical occupancy of 90%. On the first day of each calendar year, Centerspace determines the composition of its same-store pool for that year as well as adjusts the previous year, which allows us to evaluate full period-over-period operating comparisons for existing apartment communities and their contribution to net income. The company believes that measuring performance on a same-store basis is useful to investors because it enables evaluation of how a fixed pool of its communities are performing year-over-year. Centerspace uses this measure to assess whether or not the company has been successful in increasing NOI, renewing the leases on existing residents, controlling operating costs, and making prudent capital improvements.

Reconciliation of Operating Income 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, amortization, financing, property management overhead, 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.

			(in thousands, except percentages)
			Three Months Ended																					Sequential												Year-Over-Year
			9/30/2021						6/30/2021						9/30/2020									$ Change						% Change						$ Change						% Change
Operating income			$	1,144					$	2,733					$	2,002								$	(1,589)					(58.1)		%				$	(858)					(42.9)		%
Adjustments:
Property management expenses			2,203						2,085						1,442									118						5.7		%				761						52.8		%
Casualty (gain) loss			(10)						(27)						91									17						(63.0)		%				(101)						(111.0)		%
Depreciation and amortization			22,447						19,308						18,995									3,139						16.3		%				3,452						18.2		%
General and administrative expenses			4,279						3,797						3,077									482						12.7		%				1,202						39.1		%
Net operating income			$	30,063					$	27,896					$	25,607								$	2,167					7.8		%				$	4,456					17.4		%
Revenue
Same-store			$	42,034					$	40,521					$	39,571								$	1,513					3.7		%				$	2,463					6.2		%
Non-same-store			7,214						4,436						1,117									2,778						62.6		%				6,097						545.8		%
Other properties			1,120						646						833									474						73.4		%				287						34.5		%
Dispositions			45						1,053						2,617									(1,008)						(95.7)		%				(2,572)						(98.3)		%
Total			50,413						46,656						44,138									3,757						8.1		%				6,275						14.2		%
Property operating expenses, including real estate taxes
Same-store			17,126						16,528						16,409									598						3.6		%				717						4.4		%
Non-same-store			2,940						1,439						491									1,501						104.3		%				2,449						498.8		%
Other properties			317						268						229									49						18.3		%				88						38.4		%
Dispositions			(33)						525						1,402									(558)						(106.3)		%				(1,435)						(102.4)		%
Total			20,350						18,760						18,531									1,590						8.5		%				1,819						9.8		%
Net operating income
Same-store			24,908						23,993						23,162									915						3.8		%				1,746						7.5		%
Non-same-store			4,274						2,997						626									1,277						42.6		%				3,648						582.7		%
Other properties			803						378						604									425						112.4		%				199						32.9		%
Dispositions			78						528						1,215									(450)						(100.0)		%				(1,137)						(93.6)		%
Total			$	30,063					$	27,896					$	25,607								$	2,167					7.8		%				$	4,456					17.4		%

S-4

			(in thousands, except percentages)
			Nine Months Ended September 30,
			2021						2020						$ Change						% Change
Operating income			$	5,518					$	6,530					$	(1,012)					(15.5)		%
Adjustments:
Property management expenses			6,055						4,341						1,714						39.5		%
Casualty (gain) loss			64						1,331						(1,267)						(95.2)		%
Depreciation and amortization			61,747						55,311						6,436						11.6		%
General and administrative expenses			11,982						9,707						2,275						23.4		%
Net operating income			$	85,366					$	77,220					$	8,146					10.5		%
Revenue
Same-store			$	122,555					$	118,627					$	3,928					3.3		%
Non-same-store			15,892						2,319						13,573						585.3		%
Other properties			2,415						2,208						207						9.4		%
Dispositions			2,855						9,300						(6,445)						(69.3)		%
Total			143,717						132,454						11,263						8.5		%
Property operating expenses, including real estate taxes
Same-store			50,032						48,631						1,401						2.9		%
Non-same-store			5,875						995						4,880						490.5		%
Other properties			873						759						114						15.0		%
Dispositions			1,571						4,849						(3,278)						(67.6)		%
Total			58,351						55,234						3,117						5.6		%
Net operating income
Same-store			72,523						69,996						2,527						3.6		%
Non-same-store			10,017						1,324						8,693						656.6		%
Other properties			1,542						1,449						93						6.4		%
Dispositions			1,284						4,451						(3,167)						(71.2)		%
Total			$	85,366					$	77,220					$	8,146					10.5		%

S-5

Reconciliation of Same-Store Controllable Expenses to Total 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.

			(in thousands, except percentages)
			Three Months Ended September 30,																											Nine Months Ended September 30,
			2021						2020						$ Change						% Change									2021						2020						$ Change						% Change
Controllable expenses
On-site compensation(1)			$	4,488					$	4,362					$	126					2.9		%							$	13,182					$	12,908					$	274					2.1		%
Repairs and maintenance			2,562						2,804						(242)						(8.6)		%							7,060						7,469						(409)						(5.5)		%
Utilities			2,941						2,609						332						12.7		%							8,239						7,689						550						7.2		%
Administrative and marketing			956						853						103						12.1		%							2,701						2,595						106						4.1		%
Total			$	10,947					$	10,628					$	319					3.0		%							$	31,182					$	30,661					$	521					1.7		%
Non-controllable expenses
Real estate taxes			$	4,812					$	4,795					$	17					0.4		%							$	14,665					$	14,513					$	152					1.0		%
Insurance			1,367						986						381						38.6		%							4,185						3,457						728						21.1		%
Total			$	6,179					$	5,781					$	398					6.9		%							$	18,850					$	17,970					$	880					4.9		%
Property operating expenses, including real estate taxes - non-same-store			$	2,940					$	491					$	2,449					498.8		%							$	5,875					$	995					$	4,880					490.5		%
Property operating expenses, including real estate taxes - other properties			317						229						88						38.4		%							873						759						114						15.0		%
Property operating expenses, including real estate taxes - dispositions			(33)						1,402						(1,435)						(102.4)		%							1,571						4,849						(3,278)						(67.6)		%
Total property operating expenses, including real estate taxes			$	20,350					$	18,531					$	1,819					9.8		%							$	58,351					$	55,234					$	3,117					5.6		%

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

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 measure used as a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding its 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 gains and losses from the sale of real estate assets and impairment write-downs 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 this definition. The company believes that all such interpretations not specifically identified in the Nareit definition are consistent with this 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 its 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

S-6

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 flow needs, including the ability to service indebtedness or make distributions to shareholders.

Core Funds from Operations (“Core FFO”) is FFO as 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, or 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 the company's cash needs, including its 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 should not be considered a substitute for operating results determined in accordance with GAAP.

						(in thousands, except per share amounts)
						Three Months Ended																																	Nine Months Ended
						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020									9/30/2021						9/30/2020
Funds From Operations
Net income (loss) available to common shareholders						$	(11,099)					$	19,931					$	(6,474)					$	(5,985)					$	18,021								$	2,358					$	4,195
Adjustments:
Noncontrolling interests – Operating Partnership						(1,930)						1,386						(469)						(460)						1,387									(1,013)						248
Depreciation and amortization						22,447						19,308						19,992						20,282						18,995									61,747						55,311
Less depreciation – non real estate						(80)						(87)						(98)						(87)						(85)									(265)						(266)
Less depreciation – partially owned entities						(24)						(24)						(24)						(33)						(31)									(72)						(346)
(Gain) loss on sale of real estate						—						(26,840)						—						(17)						(25,676)									(26,840)						(25,486)
FFO applicable to common shares and Units						$	9,314					$	13,674					$	12,927					$	13,700					$	12,611								$	35,915					$	33,656
Adjustments to Core FFO:
Casualty (gain) loss						—						—						—						204						545									—						545
Loss on extinguishment of debt						530						3						—						2						4									533						21
Rebranding costs						—						—						—						402						—									—						—
Technology implementation costs						625						447						413						—						—									1,485						—
(Gain) loss on marketable securities						—						—						—						—						—									—						3,378
(Discount) premium on redemption of preferred shares						—						—						—						—						1									—						(297)
Commercial lease termination proceeds						(450)						—						—						—						—									(450)						—
Acquisition related costs						140						—						—						—						—									140						—
Interest rate swap termination and amortization						5,353						—						—						—						—									5,353						—
Amortization of assumed debt						(27)						—						—						—						—									(27)						—
Other miscellaneous items						(3)						—						—						—						—									(3)						—
Core FFO applicable to common shares and Units						$	15,482					$	14,124					$	13,340					$	14,308					$	13,161								$	42,946					$	37,303
Funds from operations applicable to common shares and Units						$	9,314					$	13,674					$	12,927					$	13,700					$	12,611								$	35,915					$	33,656
Dividends to preferred unitholders						160						160						160						160						160									480						480
Funds from operations applicable to common shares and Units - diluted						$	9,474					$	13,834					$	13,087					$	13,860					$	12,771								$	36,395					$	34,136
Core funds from operations applicable to common shares and Units						$	15,482					$	14,124					$	13,340					$	14,308					$	13,161								$	42,946					$	37,303
Dividends to preferred unitholders						160						160						160						160						160									480						480
Core funds from operations applicable to common shares and Units - diluted						$	15,642					$	14,284					$	13,500					$	14,468					$	13,321								$	43,426					$	37,783
Per Share Data
Earnings (loss) per share and Unit - diluted						$	(0.81)					$	1.48					$	(0.49)					$	(0.46)					$	1.38								$	0.12					$	0.33
FFO per share and Unit - diluted						$	0.60					$	0.95					$	0.92					$	0.97					$	0.90								$	2.44					$	2.49
Core FFO per share and Unit - diluted						$	0.98					$	0.98					$	0.95					$	1.02					$	0.94								$	2.91					$	2.76
Weighted average shares and Units - diluted						15,922						14,514						14,282						14,222						14,143									14,917						13,704

S-7

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

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt, gain/loss from involuntary conversion; and other non-routine items or items not considered core to business operations. 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, the cost of debt, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for operating results determined in accordance with GAAP.

						(in thousands)
						Three Months Ended																																	Nine Months Ended
						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020									9/30/2021						9/30/2020
Adjusted EBITDA
Net income (loss) available to common shareholders						$	(9,492)					$	21,538					$	(4,867)					$	(4,378)					$	19,629								$	7,179					$	8,819
Adjustments:
Dividends to preferred unitholders						160						160						160						160						160									480						480
Noncontrolling interests – Operating Partnership						(1,930)						1,386						(469)						(460)						1,387									(1,013)						248
Income (loss) before noncontrolling interests – Operating Partnership						$	(11,262)					$	23,084					$	(5,176)					$	(4,678)					$	21,176								$	6,646					$	9,547
Adjustments:
Interest expense						7,287						7,075						7,216						6,888						6,756									21,578						20,446
Loss on extinguishment of debt						530						3						—						2						4									533						21
Depreciation/amortization related to real estate investments						22,423						19,284						19,969						20,250						18,964									61,676						54,965
Casualty (gain) loss						—						—						—						204						545									—						545
Interest income						(769)						(583)						(407)						(328)						(256)									(1,759)						(1,184)
(Gain) loss on sale of real estate and other investments						—						(26,840)						—						(17)						(25,676)									(26,840)						(25,486)
Technology implementation costs						625						447						413						—						—									1,486						—
(Gain) loss on marketable securities						—						—						—						—						—									—						3,378
Commercial lease termination proceeds						(450)						—						—						—						—									(450)						—
Acquisition related costs						140						—						—						—						—									140						—
Interest rate swap termination						5,361						—						—						—						—									5,361						—
Other miscellaneous items						(3)						—						—						—						—									(3)						—
Adjusted EBITDA						$	23,882					$	22,470					$	22,015					$	22,321					$	21,513								$	68,368					$	62,232

S-8

CENTERSPACE

DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

						Future Maturities of Debt
						Secured Fixed Debt						Unsecured Fixed Debt(1)												Total Debt						% of Total Debt						Weighted Average Interest Rate(2)
2021 (remainder)						$	—					$	—											$	—					—						—
2022						29,822						—												29,822						3.5		%				4.07		%
2023						42,875						—												42,875						5.1		%				4.02		%
2024						—						—												—						—						—
2025						32,316						57,000												89,316						10.5		%				2.83		%
Thereafter						387,384						300,000												687,384						80.9		%				3.20		%
Total debt						$	492,397					$	357,000											$	849,397					100.0		%				3.23		%

(1)The 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.

						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020
Debt Balances Outstanding
Secured fixed rate - other mortgages						$	293,547					$	288,363					$	295,001					$	298,445					$	314,511
Secured fixed rate - Fannie Mae credit facility						198,850						—						—						—						—
Unsecured fixed rate line of credit(1)						57,000						50,000						50,000						50,000						50,000
Unsecured variable rate line of credit						—						37,000						131,544						102,871						85,000
Unsecured term loans						—						145,000						145,000						145,000						145,000
Unsecured senior notes						300,000						175,000						175,000						125,000						125,000
Debt total						$	849,397					$	695,363					$	796,545					$	721,316					$	719,511
Other mortgages rate						3.83		%				3.90		%				3.92		%				3.93		%				3.99		%
Fannie Mae Credit Facility rate						2.78		%				—						—						—						—
Lines of credit rate (rate with swap)						2.79		%				2.24		%				2.18		%				2.35		%				3.35		%
Term loan rate (rate with swap)						—						4.19		%				4.11		%				4.18		%				4.18		%
Senior notes rate						3.12		%				3.47		%				3.47		%				3.78		%				3.78		%
Total debt						3.23		%				3.70		%				3.37		%				3.62		%				3.68		%

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

S-9

CENTERSPACE 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						Three Months Ended
						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020
Equity Capitalization
Common shares outstanding						14,281						14,045						13,220						13,027						12,976
Operating partnership units outstanding						845						881						950						977						1,018
Series E preferred units (as converted)						2,186						—						—						—						—
Total common shares and units outstanding						17,312						14,926						14,170						14,004						13,994
Market price per common share (closing price at end of period)						$	94.50					$	78.90					$	68.00					$	70.64					$	65.17
Equity capitalization-common shares and units						$	1,635,984					$	1,177,661					$	963,560					$	989,243					$	911,989
Recorded book value of preferred shares						$	93,530					$	93,530					$	93,530					$	93,530					$	93,530
Total equity capitalization						$	1,729,514					$	1,271,191					$	1,057,090					$	1,082,773					$	1,005,519
Series D Preferred Units						$	21,585					$	18,022					$	16,560					$	16,560					$	16,560
Debt Capitalization
Total debt						$	849,397					$	695,363					$	796,545					$	721,317					$	719,511
Total capitalization						$	2,600,496					$	1,984,576					$	1,870,195					$	1,820,650					$	1,741,590
Total debt to total capitalization(1)						33.1		%				35.0		%				43.1		%				39.6		%				41.3		%

(1)Total 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																																	Nine Months Ended
						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020									9/30/2021						9/30/2020
Debt service coverage ratio(1)						2.75		x				2.62		x				2.53		x				2.73		x				2.65		x							2.63		x				2.52		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.32		x				2.21		x				2.14		x				2.28		x				2.21		x							2.22		x				2.08		x
Net debt/Adjusted EBITDA(2)						8.67		x				7.68		x				8.92		x				8.07		x				8.17		x							9.09		x				8.47		x
Net debt and preferred equity/Adjusted EBITDA(2)						9.88		x				8.92		x				10.17		x				9.31		x				9.45		x							10.35		x				9.80		x
Distribution Data
Common shares and Units outstanding at record date						15,126						14,926						14,171						14,004						13,994									15,126						13,994
Total common distribution declared						$	10,890					$	10,448					$	9,919					$	9,803					$	9,796								$	31,257					$	28,735
Common distribution per share and Unit						$	0.72					$	0.70					$	0.70					$	0.70					$	0.70								$	2.12					$	2.10
Payout ratio (Core FFO per diluted share and unit basis)(3)						73.5		%				71.4		%				73.7		%				68.6		%				74.5		%							72.9		%				76.1		%

(1)Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP financial measure 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.

(2)Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). Adjusted EBITDA is annualized for periods less than one year. Net debt and adjusted EBITDA are non-GAAP financial 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 ratio of 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 financial measure and should not be considered a substitute for operating results determined in accordance with GAAP.

S-10

CENTERSPACE

SAME-STORE THIRD QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2021						Q3 2020						% Change						Q3 2021						Q3 2020						% Change						Q3 2021						Q3 2020						% Change
Denver, CO						992						$	5,565					$	5,372					3.6		%				$	1,899					$	1,916					(0.9)		%				$	3,666					$	3,456					6.1		%
Minneapolis, MN						2,355						11,361						10,547						7.7		%				4,548						4,462						1.9		%				6,813						6,085						12.0		%
North Dakota						2,422						8,183						7,852						4.2		%				3,378						3,146						7.4		%				4,805						4,706						2.1		%
Omaha, NE						1,370						4,166						3,884						7.3		%				1,933						1,790						8.0		%				2,233						2,094						6.6		%
Rochester, MN						1,122						4,874						4,577						6.5		%				1,924						2,064						(6.8)		%				2,950						2,513						17.4		%
St. Cloud, MN						1,192						3,683						3,548						3.8		%				1,750						1,603						9.2		%				1,933						1,945						(0.6)		%
Other Mountain West						1,223						4,202						3,791						10.8		%				1,694						1,428						18.6		%				2,508						2,363						6.1		%
Same-Store Total						10,676						$	42,034					$	39,571					6.2		%				$	17,126					$	16,409					4.4		%				$	24,908					$	23,162					7.5		%

						% of NOI Contribution						Weighted Average Occupancy (1)																		Average Monthly Rental Rate (2)																		Average Monthly Revenue per Occupied Home (3)
Regions												Q3 2021						Q3 2020						Growth						Q3 2021						Q3 2020						% Change						Q3 2021						Q3 2020						% Change
Denver, CO						14.7		%				94.5		%				93.4		%				1.1		%				$	1,779					$	1,750					1.7		%				$	1,978					$	1,932					2.5		%
Minneapolis, MN						27.3		%				94.6		%				93.1		%				1.5		%				1,558						1,504						3.6		%				1,699						1,603						6.2		%
North Dakota						19.3		%				94.2		%				95.5		%				(1.3)		%				1,107						1,054						5.0		%				1,195						1,131						5.5		%
Omaha, NE						9.0		%				94.6		%				93.8		%				0.8		%				962						913						5.4		%				1,072						1,008						6.5		%
Rochester, MN						11.8		%				93.2		%				93.8		%				(0.6)		%				1,462						1,385						5.6		%				1,554						1,450						7.1		%
St. Cloud, MN						7.8		%				91.5		%				94.4		%				(2.9)		%				1,063						963						10.4		%				1,125						1,051						6.7		%
Other Mountain West						10.1		%				96.6		%				97.1		%				(0.5)		%				1,080						970						11.3		%				1,185						1,064						11.3		%
Same-Store Total						100.0		%				94.3		%				94.3		%				—						$	1,279					$	1,215					5.3		%				$	1,392					$	1,311					6.2		%

(1)Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. Scheduled rental revenue 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.

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

(3)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

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2021						Q2 2021						% Change						Q3 2021						Q2 2021						% Change						Q3 2021						Q2 2021						% Change
Denver, CO						992						$	5,565					$	5,486					1.4		%				$	1,899					$	1,837					3.4		%				$	3,666					$	3,649					0.4		%
Minneapolis, MN						2,355						11,361						10,538						7.8		%				4,548						4,649						(2.2)		%				6,813						5,889						15.7		%
North Dakota						2,422						8,183						8,078						1.3		%				3,378						3,199						5.6		%				4,805						4,879						(1.5)		%
Omaha, NE						1,370						4,166						4,037						3.2		%				1,933						1,885						2.5		%				2,233						2,152						3.8		%
Rochester, MN						1,122						4,874						4,709						3.5		%				1,924						1,937						(0.7)		%				2,950						2,772						6.4		%
St. Cloud, MN						1,192						3,683						3,634						1.3		%				1,750						1,582						10.6		%				1,933						2,052						(5.8)		%
Other Mountain West						1,223						4,202						4,039						4.0		%				1,694						1,439						17.7		%				2,508						2,600						(3.5)		%
Same-Store Total						10,676						$	42,034					$	40,521					3.7		%				$	17,126					$	16,528					3.6		%				$	24,908					$	23,993					3.8		%

						% of NOI Contribution						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												Q3 2021						Q2 2021						Growth						Q3 2021						Q2 2021						% Change						Q3 2021						Q2 2021						% Change
Denver, CO						14.7		%				94.5		%				94.2		%				0.3		%				$	1,779					$	1,727					3.0		%				$	1,978					$	1,957					1.1		%
Minneapolis, MN						27.3		%				94.6		%				94.2		%				0.4		%				1,558						1,510						3.2		%				1,699						1,584						7.4		%
North Dakota						19.3		%				94.2		%				95.9		%				(1.7)		%				1,107						1,078						2.7		%				1,195						1,159						3.0		%
Omaha, NE						9.0		%				94.6		%				95.5		%				(0.9)		%				962						927						3.8		%				1,072						1,029						4.1		%
Rochester, MN						11.8		%				93.2		%				94.5		%				(1.3)		%				1,462						1,403						4.2		%				1,554						1,480						4.8		%
St. Cloud, MN						7.8		%				91.5		%				92.7		%				(1.2)		%				1,063						1,005						5.8		%				1,125						1,097						2.5		%
Other Mountain West						10.1		%				96.6		%				98.1		%				(1.5)		%				1,080						1,014						6.5		%				1,185						1,122						5.5		%
Same-Store Total						100.0		%				94.3		%				94.9		%				(0.6)		%				$	1,279					$	1,233					3.7		%				$	1,392					$	1,333					4.4		%

S-12

CENTERSPACE

SAME-STORE YEAR-TO-DATE COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												2021						2020						% Change						2021						2020						% Change						2021						2020						% Change
Denver, CO						992						$	16,459					$	16,170					1.8		%				$	5,604					$	5,332					5.1		%				$	10,855					$	10,838					0.2		%
Minneapolis, MN						2,355						32,365						32,024						1.1		%				13,627						13,125						3.8		%				18,738						18,899						(0.9)		%
North Dakota						2,422						24,209						23,331						3.8		%				9,848						9,791						0.6		%				14,361						13,540						6.1		%
Omaha, NE						1,370						12,229						11,536						6.0		%				5,580						5,199						7.3		%				6,649						6,337						4.9		%
Rochester, MN						1,122						14,227						13,910						2.3		%				5,847						5,922						(1.3)		%				8,380						7,988						4.9		%
St. Cloud, MN						1,192						10,972						10,705						2.5		%				4,967						4,883						1.7		%				6,005						5,822						3.1		%
Other Mountain West						1,223						12,094						10,951						10.4		%				4,559						4,379						4.1		%				7,535						6,572						14.7		%
Same-Store Total						10,676						$	122,555					$	118,627					3.3		%				$	50,032					$	48,631					2.9		%				$	72,523					$	69,996					3.6		%

						% of NOI Contribution						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												2021						2020						Growth						2021						2020						% Change						2021						2020						% Change
Denver, CO						15.0		%				94.4		%				93.6		%				0.8		%				$	1,741					$	1,772					(1.7)		%				$	1,953					$	1,935					1.0		%
Minneapolis, MN						25.7		%				93.9		%				93.8		%				0.1		%				1,521						1,495						1.7		%				1,626						1,611						1.0		%
North Dakota						19.8		%				95.4		%				95.9		%				(0.5)		%				1,082						1,045						3.5		%				1,164						1,116						4.3		%
Omaha, NE						9.2		%				95.0		%				94.3		%				0.7		%				934						903						3.4		%				1,044						992						5.3		%
Rochester, MN						11.6		%				94.4		%				95.5		%				(1.1)		%				1,413						1,383						2.2		%				1,493						1,443						3.4		%
St. Cloud, MN						8.3		%				92.9		%				94.3		%				(1.4)		%				1,013						953						6.3		%				1,101						1,058						3.9		%
Other Mountain West						10.4		%				97.5		%				95.9		%				1.6		%				1,026						954						7.5		%				1,127						1,037						8.8		%
Same-Store Total						100.0		%				94.7		%				94.7		%				—						$	1,242					$	1,208					2.8		%				$	1,347					$	1,304					3.3		%

S-13

CENTERSPACE

PORTFOLIO SUMMARY(1)

						Three Months Ended
						9/30/2021						6/30/2021						3/31/2021						12/31/2020						9/30/2020
Number of Apartment Homes at Period End
Same-Store						10,676						10,676						11,265						10,567						10,567
Non-Same-Store						3,599						903						903						1,343						1,343
All Communities						14,275						11,579						12,168						11,910						11,910
Average Monthly Rental Rate(2)
Same-Store						$	1,279					$	1,233					$	1,200					$	1,177					$	1,178
Non-Same-Store						1,506						1,617						1,584						1,599						1,597
All Communities						$	1,293					$	1,263					$	1,229					$	1,225					$	1,210
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,392					$	1,333					$	1,302					$	1,282					$	1,271
Non-Same-Store						1,606						1,739						1,705						1,708						1,729
All Communities						$	1,397					$	1,365					$	1,332					$	1,330					$	1,307
Weighted Average Occupancy(4)
Same-Store						94.3		%				94.9		%				94.9		%				95.0		%				94.4		%
Non-Same-Store						95.1		%				94.2		%				91.8		%				92.3		%				93.9		%
All Communities						94.4		%				94.8		%				94.6		%				94.6		%				94.3		%
Operating Expenses as a % of Scheduled Rent
Same-Store						41.8		%				41.9		%				42.9		%				41.2		%				43.4		%
Non-Same-Store						39.9		%				32.9		%				34.9		%				35.3		%				39.7		%
All Communities						41.6		%				41.0		%				42.1		%				40.3		%				43.0		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	255					$	159					$	131					$	326					$	293

(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 rental revenue 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 revenue per occupied 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 the calculation of weighted average occupancy may not be comparable to that disclosed by other REITs.

S-14

CENTERSPACE

CAPITAL EXPENDITURES

($ in thousands, except per home amounts)

						Three Months Ended															Nine Months Ended
						9/30/2021						9/30/2020									9/30/2021						9/30/2020
Total Same-Store Apartment Homes						10,676						10,676									10,676						10,676
Building - Exterior						$	1,236					$	707								$	2,013					$	2,796
Building - Interior						128						154									431						370
Mechanical, Electrical, & Plumbing						145						—									476						—
Furniture & Equipment						13						19									76						237
Landscaping & Grounds						211						727
Turnover						989						1,071									2,371						2,553
Capital Expenditures - Same-Store						$	2,722					$	2,678								$	5,737					$	7,136
Capital Expenditures per Apartment Home - Same-Store						$	255					$	251								$	537					$	668
Value Add						$	7,209					$	4,118								$	14,384					$	10,267
Total Capital Spend - Same-Store						$	9,931					$	6,796								$	20,121					$	17,403
Total Capital Spend per Apartment Home - Same-Store						$	930					$	637								$	1,885					$	1,630
All Properties - Weighted Average Apartment Homes						12,475						11,600									12,140						11,456
Capital Expenditures						$	2,827					$	2,761								$	5,939					$	7,755
Capital Expenditures per Apartment Home						$	227					$	238								$	489					$	677
Value Add						7,209						4,118									14,396						10,267
Acquisition Capital						336						730									1,297						1,265
Total Capital Spend						10,372						7,609									21,632						19,287
Total Capital Spend per Apartment Home						$	831					$	656								$	1,782					$	1,684
Value Add Capital Expenditures
Interior - Units
Same-Store						$	4,823					$	2,228								$	9,622					$	4,581
Non-Same-Store						—						—									8						—
Total Interior Units						$	4,823					$	2,228								$	9,630					$	4,581
Expected Year 1 Annual ROI						16.0		%				17.3		%							16.3		%				17.0		%
Common Areas and Exteriors
Same-Store						$	2,386					$	1,890								$	4,762					$	5,686
Non-Same-Store						—						—									4						—
Total Common Areas and Exteriors						$	2,386					$	1,890								$	4,766					$	5,686
Expected Year 1 Annual ROI						8.6		%				11.7		%							8.4		%				11.8		%
Total Value-Add Capital Expenditures
Same-Store						$	7,209					$	4,118								$	14,384					$	10,267
Non-Same-Store						—						—									12						—
Total Portfolio Value-Add						$	7,209					$	4,118								$	14,396					$	10,267
Expected Year 1 Annual ROI						13.6		%				14.7		%							13.7		%				14.1		%

S-15

CENTERSPACE

2021 Financial Outlook

(in thousands, except per share and per home amounts)

Centerspace revised its outlook for 2021 in the table below.

			Nine Months Ended						2021 Previous Outlook Range												2021 Revised Outlook Range
			September 30, 2021						Low						High						Low						High
			YTD Actual						Amount						Amount						Amount						Amount
Same-store growth
Revenue			$	122,555					2.0		%				3.5		%				3.5		%				4.0		%
Controllable expenses			$	31,182					3.0		%				5.0		%				3.8		%				4.3		%
Non-controllable expenses			$	18,850					5.5		%				7.5		%				6.3		%				6.8		%
Total Expenses			$	50,032					4.0		%				6.0		%				4.5		%				5.0		%
Same-store NOI			$	72,523					0.5		%				2.0		%				3.0		%				3.5		%
Components of NOI
Same-store NOI			$	72,523					$	95,100					$	96,300					$	97,300					$	97,800
Non-same-store NOI			$	10,017					$	11,800					$	12,000					$	17,200					$	17,800
Other Commercial NOI			$	1,542					$	1,800					$	1,900					$	2,100					$	2,200
Other Sold NOI			$	1,284					$	1,200					$	1,200					$	1,200					$	1,200
Total NOI			$	85,366					$	109,900					$	111,400					$	117,800					$	119,000
Accretion (dilution) from investments and capital market activity, excluding impact from change in share count			$	—					4,350						4,500						30						40
Interest expense			$	(21,622)					(28,700)						(28,500)						(29,100)						(28,900)
Preferred dividends			$	(4,821)					(6,430)						(6,430)						(6,430)						(6,430)
Recurring income and expenses
Interest and other income			$	(4,104)					2,580						2,580						(3,330)						(3,330)
General and administrative and property management			$	(18,037)					(23,500)						(23,000)						(25,100)						(24,800)
Casualty losses			$	(64)					(1,245)						(755)						(600)						(400)
Non-real estate depreciation and amortization			$	(265)					(280)						(280)						(320)						(330)
Non-controlling interest			$	(58)					(70)						(65)						(70)						(65)
Total recurring income and expenses			$	(22,528)					(22,515)						$	(21,520)					(29,420)						$	(28,925)
FFO			$	36,395					$	56,605					$	59,450					$	52,880					$	54,785
Non-core income and expenses
Casualty loss			$	—					$	280					$	120					$	280					$	120
Technology implementation costs			1,485						1,800						1,600						2,000						1,900
Interest rate swap termination and amortization			5,353						—						—						5,400						5,400
Other miscellaneous items			193						—						—						400						400
Total non-core income and expenses			$	7,031					$	2,080					$	1,720					$	8,080					$	7,820
Core FFO			$	43,426					$	58,685					$	61,170					$	60,960					$	62,605
EPS - Diluted			$	0.12					$	0.58					$	0.76					$	(0.36)					$	(0.24)
FFO per diluted share			$	2.44					$	3.64					$	3.83					$	3.40					$	3.52
Core FFO per diluted share			$	2.91					$	3.78					$	3.94					$	3.92					$	4.02
Weighted average shares outstanding - diluted			14,917						15,541						15,541						15,562						15,570
Additional Assumptions
Same-store capital expenditures (per home)			$	537					$	875					$	925					$	885					915
Value-add expenditures			$	14,396					$	15,000					$	20,000					$	22,000					$	23,000
Investments			$	400,000					$	400,000					$	400,000					$	401,000					$	401,000
Dispositions			$	60,000					$	60,000					$	60,000					$	62,300					$	62,300
Equity issuance proceeds			$	86,127					$	66,500					$	66,500					$	101,100					$	111,100

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.

									Previous Outlook												Revised Outlook
			Nine Months Ended						12 Months Ended												12 Months Ended
			September 30, 2021						December 31, 2021												December 31, 2021
			Actual						Low						High						Low						High
Net income (loss) available to common shareholders			$	2,358					$	10,479					$	13,324					$	(4,180)					$	(2,270)
Noncontrolling interests - Operating Partnership and Series E preferred units			(1,013)						(1,456)						(1,456)						(6,518)						(6,518)
Depreciation and amortization			61,747						74,157						74,157						90,452						90,452
Less depreciation - non real estate			(265)						(280)						(280)						(320)						(330)
Less depreciation - partially owned entities			(72)						(95)						(95)						(70)						(65)
(Gain) loss on sale of real estate			(26,840)						(26,840)						(26,840)						(27,124)						(27,124)
Dividends to preferred unitholders			480						640						640						640						640
FFO applicable to common shares and Units			$	36,395					$	56,605					$	59,450					$	52,880					$	54,785
Adjustments to Core FFO:
Casualty loss write off			—						280						120						280						120
Technology implementation costs			1,485						1,800						1,600						2,000						1,900
Interest rate swap termination and amortization			5,353						—						—						5,400						5,400
Other miscellaneous items			193						—						—						400						400
Core FFO applicable to common shares and Units			$	43,426					$	58,685					$	61,170					$	60,960					$	62,605
Earnings per share - diluted			$	0.12					$	0.58					$	0.76					$	(0.36)					$	(0.24)
FFO per share - diluted			$	2.44					$	3.64					$	3.83					$	3.40					$	3.52
Core FFO per share - diluted			$	2.91					$	3.78					$	3.94					$	3.92					$	4.02

Reconciliation of Operating Income 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, amortization, financing, property management overhead, 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.

									Previous Outlook												Revised Outlook
			Nine Months Ended						12 Months Ended												12 Months Ended
			September 30, 2021						December 31, 2021												December 31, 2021
			Actual						Low						High						Low						High
Operating income			$	5,518					$	10,998					$	13,488					$	1,648					$	3,348
Adjustments:
General and administrative and property management expenses			18,037						23,500						23,000						25,100						24,800
Casualty loss			64						1,245						755						600						400
Depreciation and amortization			61,747						74,157						74,157						90,452						90,452
Net operating income			$	85,366					$	109,900					$	111,400					$	117,800					$	119,000

S-17