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SEGMENT REPORTING | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Centerspace operates in a single reportable segment which includes the ownership, management, development, redevelopment, and acquisition of apartment communities. Each of the operating properties is considered a separate operating segment because each property earns revenues, incurs expenses, and has discrete financial information. The chief operating decision-makers evaluate each property’s operating results to make decisions about resources to be allocated and to assess performance and do not group the properties based on geography, size, or type for this purpose. The apartment communities have similar long-term economic characteristics and provide similar products and services to residents. No apartment community comprises more than 10% of consolidated revenues, profits, or assets. Accordingly, the apartment communities are aggregated into a single reportable segment. “All other” includes non-multifamily components of mixed-use properties and apartment communities the Company has sold. The members of the executive management team are the chief operating decision-makers. This team measures the performance of the reportable segment based on net operating income (“NOI”), a non-GAAP 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 expense. 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. The following tables present NOI for the three and six months ended June 30, 2022 and 2021, respectively, along with reconciliations to net income in the Condensed Consolidated Financial Statements. Segment assets are also reconciled to total assets as reported in the Condensed Consolidated Financial Statements.
| (in thousands)
Three Months Ended June 30, 2022 | Multifamily |  | All Other |  | Total
Revenue | $ | 62,201 |  |  | $ | 915 |  |  | $ | 63,116 |
Property operating expenses, including real estate taxes | 25,986 |  |  | 230 |  |  | 26,216 |
Net operating income | $ | 36,215 |  |  | $ | 685 |  |  | $ | 36,900 |
Property management |  |  |  |  | (2,721) |
Casualty gain (loss) |  |  |  |  | (382) |
Depreciation and amortization |  |  |  |  | (24,768) |
General and administrative expenses |  |  |  |  | (5,221) |
Gain (loss) on sale of real estate and other investments |  |  |  |  | 27 |
Interest expense |  |  |  |  | (7,561) |
Interest and other income |  |  |  |  | (17) |
Net income (loss) |  |  |  |  | $ | (3,743) |
| (in thousands)
Three Months Ended June 30, 2021 | Multifamily |  | All Other |  | Total
Revenue | $ | 44,957 |  |  | $ | 1,699 |  |  | $ | 46,656 |
Property operating expenses, including real estate taxes | 17,967 |  |  | 793 |  |  | 18,760 |
Net operating income | $ | 26,990 |  |  | $ | 906 |  |  | $ | 27,896 |
Property management |  |  |  |  | (2,085) |
Casualty gain (loss) |  |  |  |  | 27 |
Depreciation and amortization |  |  |  |  | (19,308) |
General and administrative expenses |  |  |  |  | (3,797) |
Gain (loss) on sale of real estate and other investments |  |  |  |  | 26,840 |
Interest expense |  |  |  |  | (7,089) |
Interest and other income |  |  |  |  | 619 |
Net income (loss) |  |  |  |  | $ | 23,103 |
| (in thousands)
Six Months Ended June 30, 2022 | Multifamily |  | All Other |  | Total
Revenue | $ | 121,599 |  |  | $ | 1,831 |  |  | $ | 123,430 |
Property operating expenses, including real estate taxes | 51,529 |  |  | 560 |  |  | 52,089 |
Net operating income | $ | 70,070 |  |  | $ | 1,271 |  |  | $ | 71,341 |
Property management expenses |  |  |  |  | (4,974) |
Casualty gain (loss) |  |  |  |  | (980) |
Depreciation and amortization |  |  |  |  | (55,769) |
General and administrative expenses |  |  |  |  | (9,721) |
Gain (loss) on sale of real estate and other investments |  |  |  |  | 27 |
Interest expense |  |  |  |  | (15,276) |
Interest and other income |  |  |  |  | 1,046 |
Net income (loss) |  |  |  |  | $ | (14,306) |
| (in thousands)
Six Months Ended June 30, 2021 | Multifamily |  | All Other |  | Total
Revenue | $ | 89,198 |  |  | $ | 4,106 |  |  | $ | 93,304 |
Property operating expenses, including real estate taxes | 35,841 |  |  | 2,160 |  |  | 38,001 |
Net operating income | $ | 53,357 |  |  | $ | 1,946 |  |  | $ | 55,303 |
Property management expenses |  |  |  |  | (3,852) |
Casualty gain (loss) |  |  |  |  | (74) |
Depreciation and amortization |  |  |  |  | (39,300) |
General and administrative expenses |  |  |  |  | (7,703) |
Gain (loss) on sale of real estate and other investments |  |  |  |  | 26,840 |
Interest expense |  |  |  |  | (14,320) |
Interest and other income |  |  |  |  | 1,050 |
Net income (loss) |  |  |  |  | $ | 17,944 |
Segment Assets and Accumulated Depreciation Segment assets are summarized as follows as of June 30, 2022, and December 31, 2021, respectively, along with reconciliations to the Condensed Consolidated Financial Statements:
| (in thousands)
As of June 30, 2022 | Multifamily |  | All Other |  | Total
Segment assets |  |  |  |  |
Property owned | $ | 2,374,726 |  |  | $ | 26,701 |  |  | $ | 2,401,427 |
Less accumulated depreciation | (480,113) |  |  | (7,721) |  |  | (487,834) |
Total property owned | $ | 1,894,613 |  |  | $ | 18,980 |  |  | $ | 1,913,593 |
Cash and cash equivalents |  |  |  |  | 13,156 |
Restricted cash |  |  |  |  | 1,914 |
Other assets |  |  |  |  | 18,950 |
Total Assets |  |  |  |  | $ | 1,947,613 |
| (in thousands)
As of December 31, 2021 | Multifamily |  | All Other |  | Total
Segment assets |  |  |  |  |
Property owned | $ | 2,244,250 |  |  | $ | 26,920 |  |  | $ | 2,271,170 |
Less accumulated depreciation | (436,004) |  |  | (7,588) |  |  | (443,592) |
Total property owned | $ | 1,808,246 |  |  | $ | 19,332 |  |  | $ | 1,827,578 |
Mortgage loans receivable |  |  |  |  | 43,276 |
Cash and cash equivalents |  |  |  |  | 31,267 |
Restricted cash |  |  |  |  | 7,358 |
Other assets |  |  |  |  | 30,582 |
Total Assets |  |  |  |  | $ | 1,940,061 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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