Exhibit 99.1

Earnings Release

Centerspace Reports Third Quarter 2022 Financial Results and Updates Financial Outlook

MINNEAPOLIS, MN, October 31, 2022 – Centerspace (NYSE: CSR) announced today its financial and operating results for the three and nine months ended September 30, 2022. The tables below show Net Income (Loss), Funds from Operations (“FFO”)1, and Core FFO1, all on a per common share basis, for the three and nine months ended September 30, 2022; 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, 2022, June 30, 2022, and September 30, 2021.

						Three Months Ended September 30,												Nine Months Ended September 30,
Per Common Share						2022						2021						2022						2021
Net income (loss) - diluted						$	(0.14)					$	(0.79)					$	(1.11)					$	0.12
FFO - diluted						$	1.13					$	0.60					$	3.16					$	2.44
Core FFO - diluted						$	1.15					$	0.98					$	3.25					$	2.91

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results						Q3 2022 vs. Q3 2021						Q3 2022 vs. Q2 2022						2022 vs. 2021
Revenues						11.1%						2.8%						10.4%
Expenses						10.6%						3.5%						10.7%
NOI						11.4%						2.4%						10.3%

Three months ended

Same-Store Results

September 30, 2022

June 30, 2022

September 30, 2021

Weighted Average Occupancy

94.5%

94.8%

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 $0.14 per diluted share for the third quarter of 2022, compared to Net loss of $0.79 per diluted share for the same period of 2021;

•Core FFO per diluted share increased 17.3% to $1.15 for the three months ended September 30, 2022, compared to $0.98 for the three months ended September 30, 2021;

•Same-store revenues increased by 11.1% for the third quarter of 2022 compared to the third quarter of 2021, driving an 11.4% increase in NOI compared to the same period of the prior year; and

•Revised 2022 financial outlook, our guidance range for net loss per share is $0.50 to $0.41 per diluted share. Our same-store NOI guidance for 2022 is 9.75% to 10.75%. Although we increased the mid-point of our revenue guidance for the same-store portfolio, persistent cost pressures were higher than we previously anticipated. We also experienced a higher than usual volume of noncontrollable unreimbursable losses across the portfolio, prompting us to increase our expense growth projections for both the same-store and non-same-store properties, thereby lowering our total NOI projections. As a result, our Core FFO guidance range is now $4.42 to $4.50 per diluted share. In addition to the impact of NOI, the acquisition of Lyra Apartments at the end of the third quarter of 2022 is expected to result in a reduction of $0.02 per share in the fourth quarter of 2022 relative to prior projections. Despite the near term dilution, we believe the acquisition of Lyra Apartments improves our overall portfolio and earnings quality, as well as continues our growth in Denver. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended September 30, 2022 included at the end of this release.

Acquisitions

On September 30, 2022, we acquired Lyra Apartments, a 215 home apartment community located in Centennial, Colorado for $95.0 million.

1

Subsequent Events

Through October 31, 2022, Centerspace repurchased 426,773 common shares for total consideration of $28.7 million and an average of $67.25 per share.

Balance Sheet

At the end of the third quarter, Centerspace had $99.5 million of total liquidity on its balance sheet, consisting of $84.5 million available under the lines of credit and cash and cash equivalents of $15.0 million.

Revised 2022 Financial Outlook

Centerspace revised its 2022 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended September 30, 2022 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the revised outlook.

			Previous Outlook for 2022						Updated Outlook for 2022
			Low			High			Low			High
Net income (loss) per Share – diluted			$	(0.31)		$	(0.14)		$	(0.50)		$	(0.41)
Same-Store Revenue			9.00		%	10.50		%	9.75		%	10.25		%
Same-Store Expenses			7.50		%	8.50		%	9.50		%	10.00		%
Same-Store NOI			10.00		%	12.00		%	9.75		%	10.75		%
FFO per Share – diluted			$	4.32		$	4.49		$	4.30		$	4.39
Core FFO per Share – diluted			$	4.45		$	4.61		$	4.42		$	4.50

Upcoming Events

Centerspace is scheduled to participate in the upcoming National Association of Real Estate Investment Trusts (“Nareit”) REITWorld 2022 Annual Conference which will be held in San Francisco, California November 15-16.

Centerspace is scheduled to participate in Jefferies 2022 Real Estate Conference which will be held in Miami, Florida December 14-15.

Earnings Call

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

Live Conference Call

Conference Call Replay

Tuesday, November 1, 2022, at 10:00 AM ET

Replay available until November 15, 2022

USA Toll Free Number

1-844-200-6205

USA Toll Free Number

1-866-813-9403

International Toll Free Number

1-929-526-1599

International Toll Free Number

44-204-525-0658

Canada Toll Free Number

1-833-950-0062

Canada Toll Free Number

1-226-828-7578

Conference Number

305489

Conference Number

825680

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended September 30, 2022 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, 2022, Centerspace owned interests in 84 apartment communities consisting of 15,064 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

2

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, 2021, 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

Joe McComish

Phone: 701-837-7104

IR@centerspacehomes.com

Marketing & Media

Kelly Weber

Phone: 701-837-7104

kweber@centerspacehomes.com

3

Supplemental Financial and Operating Data

Table of Contents

September 30, 2022

			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-6
Funds From Operations and Core Funds From Operations			S-6
Adjusted EBITDA			S-9
Debt and Capital Analysis
Debt Analysis			S-10
Capital Analysis			S-11
Portfolio Analysis
Same-Store Comparison			S-12
Portfolio Summary			S-15
Capital Expenditures			S-16
2022 Financial Outlook			S-17

Common Share Data (NYSE: CSR)

						3rd Quarter						2nd Quarter						1st Quarter						4th Quarter						3rd Quarter
						2022						2022						2022						2021						2021
High closing price						$	89.71					$	103.17					$	108.27					$	111.26					$	105.42
Low closing price						$	65.85					$	76.65					$	89.01					$	96.58					$	78.42
Average closing price						$	79.40					$	87.61					$	97.15					$	103.29					$	94.10
Closing price at end of quarter						$	67.32					$	81.55					$	98.12					$	110.90					$	94.50
Common share distributions – annualized						$	2.92					$	2.92					$	2.92					$	2.88					$	2.88
Closing dividend yield – annualized						4.3		%				3.6		%				3.0		%				2.6		%				3.1		%
Closing common shares outstanding (thousands)						15,376						15,373						15,365						15,016						14,281
Closing limited partnership units outstanding (thousands)						980						995						997						832						845
Closing Series E preferred units outstanding, as converted (thousands)						2,186						2,186						2,186						2,186						2,186
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)						$	1,248,247					$	1,513,079					$	1,819,930					$	1,999,971					$	1,635,984

S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)

						Three Months Ended																																	Nine Months Ended
						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021									9/30/2022						9/30/2021
REVENUE						$	65,438					$	63,116					$	60,314					$	57,988					$	50,413								$	188,868					$	143,717
EXPENSES
Property operating expenses, excluding real estate taxes						20,290						19,011						19,014						16,852						14,434									58,315						40,901
Real estate taxes						7,039						7,205						6,859						6,654						5,916									21,103						17,450
Property management expense						2,563						2,721						2,253						2,697						2,203									7,537						6,055
Casualty (gain) loss						276						382						598						280						(10)									1,256						64
Depreciation and amortization						23,720						24,768						31,001						30,418						22,447									79,489						61,747
General and administrative expenses						4,519						5,221						4,500						4,231						4,279									14,240						11,982
TOTAL EXPENSES						$	58,407					$	59,308					$	64,225					$	61,132					$	49,269								$	181,940					$	138,199
Gain (loss) on sale of real estate and other investments						—						27						—						678						—									27						26,840
Operating income (loss)						7,031						3,835						(3,911)						(2,466)						1,144									6,955						32,358
Interest expense						(7,871)						(7,561)						(7,715)						(7,456)						(7,302)									(23,147)						(21,622)
Interest and other income (loss)						70						(17)						1,063						1,117						(5,082)									1,116						(4,032)
Net income (loss)						$	(770)					$	(3,743)					$	(10,563)					$	(8,805)					$	(11,240)								$	(15,076)					$	6,704
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						439						950						2,157						1,793						1,930									3,546						1,013
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities						(32)						(38)						(23)						(36)						(22)									(93)						(58)
Net income (loss) attributable to controlling interests						(523)						(2,991)						(8,589)						(7,208)						(9,492)									(12,103)						7,179
Dividends to preferred shareholders						(1,607)						(1,607)						(1,607)						(1,607)						(1,607)									(4,821)						(4,821)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	(2,130)					$	(4,598)					$	(10,196)					$	(8,815)					$	(11,099)								$	(16,924)					$	2,358
Per Share Data - Basic
Net income (loss) per common share – basic						$	(0.14)					$	(0.30)					$	(0.68)					$	(0.61)					$	(0.79)								$	(1.11)					$	0.17
Per Share Data - Diluted
Net income (loss) per common share – diluted						$	(0.14)					$	(0.30)					$	(0.68)					$	(0.61)					$	(0.79)								$	(1.11)					$	0.12

S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021
ASSETS
Real estate investments
Property owned						$	2,513,470					$	2,401,427					$	2,390,952					$	2,271,170					$	2,203,606
Less accumulated depreciation						(511,000)						(487,834)						(465,752)						(443,592)						(426,926)
						2,002,470						1,913,593						1,925,200						1,827,578						1,776,680
Mortgage loans receivable						—						—						—						43,276						42,160
Total real estate investments						2,002,470						1,913,593						1,925,200						1,870,854						1,818,840
Cash and cash equivalents						14,957						13,156						13,313						31,267						20,816
Restricted cash						1,417						1,914						2,409						7,358						2,376
Other assets						19,742						18,950						24,651						30,582						34,919
TOTAL ASSETS						$	2,038,586					$	1,947,613					$	1,965,573					$	1,940,061					$	1,876,951
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	58,322					$	48,077					$	50,360					$	62,403					$	58,092
Revolving lines of credit						171,500						73,000						46,000						76,000						57,000
Notes payable, net of loan costs						299,388						299,374						299,359						299,344						299,454
Mortgages payable, net of loan costs						496,530						497,917						521,536						480,703						489,140
TOTAL LIABILITIES						$	1,025,740					$	918,368					$	917,255					$	918,450					$	903,686
SERIES D PREFERRED UNITS						$	16,560					$	18,627					$	22,412					$	25,331					$	21,585
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,530						93,530						93,530						93,530
Common Shares of Beneficial Interest						1,209,732						1,207,849						1,203,685						1,157,255						1,092,130
Accumulated distributions in excess of net income						(524,905)						(511,552)						(495,732)						(474,318)						(454,691)
Accumulated other comprehensive income (loss)						(2,158)						(2,362)						(2,550)						(4,435)						(5,784)
Total shareholders’ equity						$	776,199					$	787,465					$	798,933					$	772,032					$	725,185
Noncontrolling interests – Operating Partnership and Series E preferred units						219,466						222,528						226,302						223,600						225,850
Noncontrolling interests – consolidated real estate entities						621						625						671						648						645
TOTAL EQUITY						$	996,286					$	1,010,618					$	1,025,906					$	996,280					$	951,680
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	2,038,586					$	1,947,613					$	1,965,573					$	1,940,061					$	1,876,951

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 (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, 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 (loss), net income (loss) 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
			9/30/2022						6/30/2022						9/30/2021									$ Change						% Change						$ Change						% Change
Operating income (loss)			$	7,031					$	3,835					$	1,144								$	3,196					83.3		%				$	5,887					514.6		%
Adjustments:
Property management expenses			2,563						2,721						2,203									(158)						(5.8)		%				360						16.3		%
Casualty (gain) loss			276						382						(10)									(106)						(27.7)		%				286						*
Depreciation and amortization			23,720						24,768						22,447									(1,048)						(4.2)		%				1,273						5.7		%
General and administrative expenses			4,519						5,221						4,279									(702)						(13.4)		%				240						5.6		%
(Gain) loss on sale of real estate and other investments			—						(27)						—									27						(100.0)		%				—						—
Net operating income			$	38,109					$	36,900					$	30,063								$	1,209					3.3		%				$	8,046					26.8		%
Revenue
Same-store			$	50,253					$	48,867					$	45,252								$	1,386					2.8		%				$	5,001					11.1		%
Non-same-store			14,151						13,334						3,836									817						6.1		%				10,315						268.9		%
Other properties			1,034						915						848									119						13.0		%				186						21.9		%
Dispositions			—						—						477									—						—						(477)						(100.0)		%
Total			65,438						63,116						50,413									2,322						3.7		%				15,025						29.8		%
Property operating expenses, including real estate taxes
Same-store			20,389						19,700						18,434									689						3.5		%				1,955						10.6		%
Non-same-store			6,620						6,286						1,632									334						5.3		%				4,988						305.6		%
Other properties			317						230						287									87						37.8		%				30						10.5		%
Dispositions			3						—						(3)									3						N/A						6						*
Total			27,329						26,216						20,350									1,113						4.2		%				6,979						34.3		%
Net operating income
Same-store			29,864						29,167						26,818									697						2.4		%				3,046						11.4		%
Non-same-store			7,531						7,048						2,204									483						6.9		%				5,327						241.7		%
Other properties			717						685						561									32						4.7		%				156						27.8		%
Dispositions			(3)						—						480									(3)						—						(483)						(100.6)		%
Total			$	38,109					$	36,900					$	30,063								$	1,209					3.3		%				$	8,046					26.8		%

* Not a meaningful percentage

S-4

			(in thousands, except percentages)
			Nine Months Ended September 30,
			2022						2021						$ Change						% Change
Operating income (loss)			$	6,955					$	32,358					$	(25,403)					(78.5)		%
Adjustments:
Property management expenses			7,537						6,055						1,482						24.5		%
Casualty (gain) loss			1,256						64						1,192						*
Depreciation and amortization			79,489						61,747						17,742						28.7		%
General and administrative expenses			14,240						11,982						2,258						18.8		%
(Gain) loss on sale of real estate and other investments			(27)						(26,840)						26,813						(99.9)		%
Net operating income			$	109,450					$	85,366					$	24,084					28.2		%
Revenue
Same-store			$	146,010					$	132,208					$	13,802					10.4		%
Non-same-store			39,992						6,079						33,913						557.9		%
Other properties			2,866						2,180						686						31.5		%
Dispositions			—						3,250						(3,250)						(100.0)		%
Total			188,868						143,717						45,151						31.4		%
Property operating expenses, including real estate taxes
Same-store			59,305						53,574						5,731						10.7		%
Non-same-store			19,234						2,333						16,901						724.4		%
Other properties			876						808						68						8.4		%
Dispositions			3						1,636						(1,633)						(99.8)		%
Total			79,418						58,351						21,067						36.1		%
Net operating income
Same-store			86,705						78,634						8,071						10.3		%
Non-same-store			20,758						3,746						17,012						454.1		%
Other properties			1,990						1,372						618						45.0		%
Dispositions			(3)						1,614						(1,617)						(100.2)		%
Total			$	109,450					$	85,366					$	24,084					28.2		%

* Not a meaningful percentage

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,
			2022						2021						$ Change						% Change									2022						2021						$ Change						% Change
Controllable expenses
On-site compensation(1)			$	4,985					$	4,820					$	165					3.4		%							$	14,963					$	14,021					$	942					6.7		%
Repairs and maintenance			3,887						2,692						1,195						44.4		%							9,514						7,421						2,093						28.2		%
Utilities			3,408						3,135						273						8.7		%							10,443						8,813						1,630						18.5		%
Administrative and marketing			1,174						1,052						122						11.6		%							3,280						2,908						372						12.8		%
Total			$	13,454					$	11,699					$	1,755					15.0		%							$	38,200					$	33,163					$	5,037					15.2		%
Non-controllable expenses
Real estate taxes			$	5,310					$	5,301					$	9					0.2		%							$	16,073					$	16,042					$	31					0.2		%
Insurance			1,625						1,434						191						13.3		%							5,032						4,369						663						15.2		%
Total			$	6,935					$	6,735					$	200					3.0		%							$	21,105					$	20,411					$	694					3.4		%
Property operating expenses, including real estate taxes - non-same-store			$	6,620					$	1,632					$	4,988					305.6		%							$	19,234					$	2,333					$	16,901					724.4		%
Property operating expenses, including real estate taxes - other properties			317						287						30						10.5		%							876						808						68						8.4		%
Property operating expenses, including real estate taxes - dispositions			3						(3)						6						(200.0)		%							3						1,636						(1,633)						(99.8)		%
Total property operating expenses, including real estate taxes			$	27,329					$	20,350					$	6,979					34.3		%							$	79,418					$	58,351					$	21,067					36.1		%

(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.

S-7

						(in thousands, except per share amounts)
						Three Months Ended																																	Nine Months Ended
						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021									9/30/2022						9/30/2021
Funds From Operations
Net income (loss) available to common shareholders						$	(2,130)					$	(4,598)					$	(10,196)					$	(8,815)					$	(11,099)								$	(16,924)					$	2,358
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units						(439)						(950)						(2,157)						(1,793)						(1,930)									(3,546)						(1,013)
Depreciation and amortization						23,720						24,768						31,001						30,418						22,447									79,489						61,747
Less depreciation – non real estate						(94)						(101)						(101)						(101)						(80)									(296)						(265)
Less depreciation – partially owned entities						(18)						(7)						(21)						(21)						(24)									(46)						(72)
(Gain) loss on sale of real estate and other investments						—						(27)						—						(678)						—									(27)						(26,840)
FFO applicable to common shares and Units						$	21,039					$	19,085					$	18,526					$	19,010					$	9,314								$	58,650					$	35,915
Adjustments to Core FFO:
Non-cash casualty (gain) loss						46						163						25						—						—									234						—
Loss on extinguishment of debt						—						5						—						2						530									5						533
Technology implementation costs(1)						234						447						103						535						625									784						1,485
Commercial lease termination proceeds						—						—						—						—						(450)									—						(450)
Acquisition related costs						—						—						—						90						140									—						140
Interest rate swap termination, amortization, and mark-to-market						204						205						(613)						(411)						5,353									(204)						5,353
Amortization of assumed debt						(116)						(116)						(115)						(26)						(27)									(347)						(27)
Pursuit costs						38						1,127						—						—						—									1,165						—
Other miscellaneous items						17						100						(4)						(61)						(3)									113						(3)
Core FFO applicable to common shares and Units						$	21,462					$	21,016					$	17,922					$	19,139					$	15,482								$	60,400					$	42,946
Funds from operations applicable to common shares and Units						$	21,039					$	19,085					$	18,526					$	19,010					$	9,314								$	58,650					$	35,915
Dividends to preferred unitholders						160						160						160						160						160									480						480
Funds from operations applicable to common shares and Units - diluted						$	21,199					$	19,245					$	18,686					$	19,170					$	9,474								$	59,130					$	36,395
Core funds from operations applicable to common shares and Units						$	21,462					$	21,016					$	17,922					$	19,139					$	15,482								$	60,400					$	42,946
Dividends to preferred unitholders						160						160						160						160						160									480						480
Core funds from operations applicable to common shares and Units - diluted						$	21,622					$	21,176					$	18,082					$	19,299					$	15,642								$	60,880					$	43,426
Per Share Data
Net income (loss) per share and Unit - diluted						$	(0.14)					$	(0.30)					$	(0.68)					$	(0.61)					$	(0.81)								$	(1.11)					$	0.12
FFO per share and Unit - diluted						$	1.13					$	1.02					$	1.01					$	1.07					$	0.60								$	3.16					$	2.44
Core FFO per share and Unit - diluted						$	1.15					$	1.12					$	0.98					$	1.08					$	0.98								$	3.25					$	2.91
Weighted average shares - basic						15,373						15,369						15,097						14,541						14,065									15,280						13,501
Effect of redeemable operating partnership units						984						995						965						838						865									980						917
Effect of Series D preferred units						228						228						228						228						228									228						228
Effect of Series E preferred units						2,186						2,186						2,186						2,186						705									2,186						239
Effect of dilutive restricted stock units and stock options						30						48						66						75						59									48						32
Weighted average shares and Units - diluted						18,801						18,826						18,542						17,868						15,922									18,722						14,917

(1)Costs are related to a two-year implementation.

S-8

Reconciliation of Net Income (Loss) Available to Controlling Interests 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
						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021									9/30/2022						9/30/2021
Adjusted EBITDA
Net income (loss) available to controlling interests						$	(523)					$	(2,991)					$	(8,589)					$	(7,208)					$	(9,492)								$	(12,103)					$	7,179
Adjustments:
Dividends to Series D preferred unitholders						160						160						160						160						160									480						480
Noncontrolling interests – Operating Partnership and Series E preferred units						(439)						(950)						(2,157)						(1,793)						(1,930)									(3,546)						(1,013)
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units						$	(802)					$	(3,781)					$	(10,586)					$	(8,841)					$	(11,262)								$	(15,169)					$	6,646
Adjustments:
Interest expense						7,856						7,547						7,700						7,440						7,287									23,103						21,578
Loss on extinguishment of debt						—						5						—						2						530									5						533
Depreciation and amortization related to real estate investments						23,699						24,759						30,980						30,397						22,423									79,438						61,676
Non-cash casualty (gain) loss						46						163						25						—						—									234						—
Interest income						(82)						(74)						(464)						(644)						(769)									(620)						(1,759)
(Gain) loss on sale of real estate and other investments						—						(27)						—						(678)						—									(27)						(26,840)
Technology implementation costs						234						447						103						534						625									784						1,486
Commercial lease termination proceeds						—						—						—						—						(450)									—						(450)
Acquisition related costs						—						—						—						90						140									—						140
Interest rate swap termination and mark-to-market						—						18						(582)						(359)						5,361									(564)						5,361
Pursuit costs						38						1,127						—						—						—									1,165						—
Other miscellaneous items						17						100						(4)						(61)						(3)									113						(3)
Adjusted EBITDA						$	31,006					$	30,284					$	27,172					$	27,880					$	23,882								$	88,462					$	68,368

S-9

CENTERSPACE

DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

						Future Maturities of Debt
						Secured Fixed Debt						Unsecured Fixed Debt						Unsecured Variable Debt						Total Debt						% of Total Debt						Weighted Average Interest Rate(1)
2022 (remainder)						$	—					$	—					$	—					$	—					—						—
2023						41,722						—						—						41,722						4.3		%				4.02		%
2024						—						—						—						—						—						—
2025						31,490						—						171,500						202,990						20.9		%				4.06		%
2026						52,395						—						—						52,395						5.4		%				3.73		%
Thereafter						374,199						300,000						—						674,199						69.4		%				3.21		%
Total debt						$	499,806					$	300,000					$	171,500					$	971,306					100.0		%				3.45		%

(1)Weighted average interest rate of debt that matures during the year.

						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021
Debt Balances Outstanding
Secured fixed rate - other mortgages						$	300,956					$	302,360					$	326,113					$	284,934					$	293,547
Secured fixed rate - Fannie Mae credit facility						198,850						198,850						198,850						198,850						198,850
Unsecured fixed rate line of credit(1)						—						—						—						75,000						57,000
Unsecured variable rate line of credit						171,500						73,000						46,000						1,000						—
Unsecured senior notes						300,000						300,000						300,000						300,000						300,000
Debt total						$	971,306					$	874,210					$	870,963					$	859,784					$	849,397
Other mortgages rate						3.85		%				3.85		%				3.85		%				3.81		%				3.83		%
Fannie Mae Credit Facility rate						2.78		%				2.78		%				2.78		%				2.78		%				2.78		%
Lines of credit rate (rate with swap)(1)						4.13		%				3.04		%				2.56		%				4.22		%				2.79		%
Senior notes rate						3.12		%				3.12		%				3.12		%				3.12		%				3.12		%
Total debt						3.45		%				3.27		%				3.29		%				3.26		%				3.23		%

(1)The current rate on our line of credit is LIBOR plus 150 basis points. The LIBOR exposure on the line of credit was hedged using an interest rate swap with a notional of $75.0 million and a fixed rate of 2.81% which was terminated in February 2022.

S-10

CENTERSPACE 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						Three Months Ended
						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021
Equity Capitalization
Common shares outstanding						15,376						15,373						15,365						15,016						14,281
Operating partnership units outstanding						980						995						997						832						845
Series E preferred units (as converted)						2,186						2,186						2,186						2,186						2,186
Total common shares and units outstanding						18,542						18,554						18,548						18,034						17,312
Market price per common share (closing price at end of period)						$	67.32					$	81.55					$	98.12					$	110.90					$	94.50
Equity capitalization-common shares and units						$	1,248,247					$	1,513,079					$	1,819,930					$	1,999,971					$	1,635,984
Recorded book value of preferred shares						$	93,530					$	93,530					$	93,530					$	93,530					$	93,530
Total equity capitalization						$	1,341,777					$	1,606,609					$	1,913,460					$	2,093,501					$	1,729,514
Series D Preferred Units						$	16,560					$	18,627					$	22,412					$	25,331					$	21,585
Debt Capitalization
Total debt						$	971,306					$	874,210					$	870,963					$	859,784					$	849,397
Total capitalization						$	2,329,643					$	2,499,446					$	2,806,835					$	2,978,616					$	2,600,496
Total debt to total capitalization(1)						41.7		%				35.0		%				31.0		%				28.9		%				32.7		%

(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, operating partnership units, and the as converted Series E preferred 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
						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021									9/30/2022						9/30/2021
Debt service coverage ratio(1)						3.35		x				3.39		x				2.93		x				3.17		x				2.75		x							3.22		x				2.63		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.81		x				2.83		x				2.50		x				2.68		x				2.32		x							2.70		x				2.22		x
Net debt/Adjusted EBITDA(2)						7.71		x				7.11		x				7.89		x				7.43		x				8.67		x							8.11		x				9.09		x
Net debt and preferred equity/Adjusted EBITDA(2)						8.60		x				8.03		x				8.96		x				8.50		x				9.88		x							9.04		x				10.35		x
Distribution Data
Common shares and Units outstanding at record date						16,354						16,367						16,363						15,848						15,126									16,354						15,126
Total common distribution declared						$	11,939					$	11,948					$	11,944					$	11,411					$	10,890								$	35,831					$	31,257
Common distribution per share and Unit						$	0.73					$	0.73					$	0.73					$	0.72					$	0.72								$	2.19					$	2.12
Payout ratio (Core FFO per diluted share and unit basis)(3)						63.5		%				65.2		%				74.5		%				66.7		%				73.5		%							67.4		%				72.9		%

(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 outstanding 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. Refer to the Core FFO definition included within the Non-GAAP Financial Measures and Reconciliations section.

S-11

CENTERSPACE

SAME-STORE THIRD QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2022						Q3 2021						% Change						Q3 2022						Q3 2021						% Change						Q3 2022						Q3 2021						% Change
Denver, CO						1,457						$	8,922					$	8,012					11.4		%				$	3,121					$	2,764					12.9		%				$	5,801					$	5,248					10.5		%
Minneapolis, MN						2,538						13,057						12,132						7.6		%				5,768						4,991						15.6		%				7,289						7,141						2.1		%
North Dakota						2,422						8,784						8,183						7.3		%				3,457						3,378						2.3		%				5,327						4,805						10.9		%
Omaha, NE						1,370						4,703						4,166						12.9		%				2,084						1,933						7.8		%				2,619						2,233						17.3		%
Rochester, MN						1,129						5,451						4,874						11.8		%				2,039						1,924						6.0		%				3,412						2,950						15.7		%
St. Cloud, MN						1,192						4,370						3,683						18.7		%				2,154						1,750						23.1		%				2,216						1,933						14.6		%
Other Mountain West						1,222						4,966						4,202						18.2		%				1,766						1,694						4.3		%				3,200						2,508						27.6		%
Same-Store Total						11,330						$	50,253					$	45,252					11.1		%				$	20,389					$	18,434					10.6		%				$	29,864					$	26,818					11.4		%

						% of NOI Contribution						Weighted Average Occupancy (1)																		Average Monthly Rental Rate (2)																		Average Monthly Revenue per Occupied Home (3)
Regions												Q3 2022						Q3 2021						Growth						Q3 2022						Q3 2021						% Change						Q3 2022						Q3 2021						% Change
Denver, CO						19.5		%				96.4		%				94.6		%				1.8		%				$	1,902					$	1,746					8.9		%				$	2,118					$	1,937					9.3		%
Minneapolis, MN						24.4		%				94.2		%				94.6		%				(0.4)		%				1,623						1,564						3.8		%				1,821						1,684						8.1		%
North Dakota						17.8		%				96.2		%				94.2		%				2.0		%				1,148						1,107						3.7		%				1,257						1,195						5.2		%
Omaha, NE						8.8		%				94.7		%				94.6		%				0.1		%				1,083						962						12.6		%				1,208						1,072						12.7		%
Rochester, MN						11.4		%				93.5		%				93.2		%				0.3		%				1,619						1,453						11.4		%				1,721						1,545						11.4		%
St. Cloud, MN						7.4		%				88.1		%				91.5		%				(3.4)		%				1,206						1,063						13.5		%				1,387						1,125						23.3		%
Other Mountain West						10.7		%				95.7		%				96.6		%				(0.9)		%				1,279						1,081						18.3		%				1,415						1,186						19.3		%
Same-Store Total						100.0		%				94.5		%				94.3		%				0.2		%				$	1,411					$	1,301					8.5		%				$	1,565					$	1,412					10.8		%

(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-12

CENTERSPACE

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2022						Q2 2022						% Change						Q3 2022						Q2 2022						% Change						Q3 2022						Q2 2022						% Change
Denver, CO						1,457						$	8,922					$	8,667					2.9		%				$	3,121					$	2,816					10.8		%				$	5,801					$	5,851					(0.9)		%
Minneapolis, MN						2,538						13,057						12,911						1.1		%				5,768						5,480						5.3		%				7,289						7,431						(1.9)		%
North Dakota						2,422						8,784						8,482						3.6		%				3,457						3,523						(1.9)		%				5,327						4,959						7.4		%
Omaha, NE						1,370						4,703						4,501						4.5		%				2,084						1,931						7.9		%				2,619						2,570						1.9		%
Rochester, MN						1,129						5,451						5,235						4.1		%				2,039						2,138						(4.6)		%				3,412						3,097						10.2		%
St. Cloud, MN						1,192						4,370						4,353						0.4		%				2,154						1,992						8.1		%				2,216						2,361						(6.1)		%
Other Mountain West						1,222						4,966						4,718						5.3		%				1,766						1,820						(3.0)		%				3,200						2,898						10.4		%
Same-Store Total						11,330						$	50,253					$	48,867					2.8		%				$	20,389					$	19,700					3.5		%				$	29,864					$	29,167					2.4		%

						% of NOI Contribution						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												Q3 2022						Q2 2022						Growth						Q3 2022						Q2 2022						% Change						Q3 2022						Q2 2022						% Change
Denver, CO						19.5		%				96.4		%				94.0		%				2.4		%				$	1,902					$	1,856					2.5		%				$	2,118					$	2,109					0.4		%
Minneapolis, MN						24.4		%				94.2		%				94.2		%				—						1,623						1,600						1.4		%				1,821						1,799						1.2		%
North Dakota						17.8		%				96.2		%				95.6		%				0.6		%				1,148						1,118						2.7		%				1,257						1,221						2.9		%
Omaha, NE						8.8		%				94.7		%				97.1		%				(2.4)		%				1,083						1,028						5.4		%				1,208						1,128						7.1		%
Rochester, MN						11.4		%				93.5		%				95.2		%				(1.7)		%				1,619						1,536						5.4		%				1,721						1,624						6.0		%
St. Cloud, MN						7.4		%				88.1		%				91.5		%				(3.4)		%				1,206						1,150						4.9		%				1,387						1,330						4.3		%
Other Mountain West						10.7		%				95.7		%				96.5		%				(0.8)		%				1,279						1,207						6.0		%				1,415						1,333						6.2		%
Same-Store Total						100.0		%				94.5		%				94.8		%				(0.3)		%				$	1,411					$	1,365					3.4		%				$	1,565					$	1,517					3.2		%

S-13

CENTERSPACE

SAME-STORE YEAR-TO-DATE COMPARISONS

For the Nine Months Ended

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												2022						2021						% Change						2022						2021						% Change						2022						2021						% Change
Denver, CO						1,457						$	26,047					$	23,549					10.6		%				$	8,404					$	7,838					7.2		%				$	17,643					$	15,711					12.3		%
Minneapolis, MN						2,538						38,359						34,928						9.8		%				16,647						14,935						11.5		%				21,712						19,993						8.6		%
North Dakota						2,422						25,423						24,209						5.0		%				10,633						9,848						8.0		%				14,790						14,361						3.0		%
Omaha, NE						1,370						13,567						12,229						10.9		%				5,913						5,580						6.0		%				7,654						6,649						15.1		%
Rochester, MN						1,129						15,689						14,227						10.3		%				6,274						5,847						7.3		%				9,415						8,380						12.4		%
St. Cloud, MN						1,192						12,888						10,972						17.5		%				6,230						4,967						25.4		%				6,658						6,005						10.9		%
Other Mountain West						1,222						14,037						12,094						16.1		%				5,204						4,559						14.1		%				8,833						7,535						17.2		%
Same-Store Total						11,330						$	146,010					$	132,208					10.4		%				$	59,305					$	53,574					10.7		%				$	86,705					$	78,634					10.3		%

						% of NOI Contribution						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												2022						2021						Growth						2022						2021						% Change						2022						2021						% Change
Denver, CO						20.3		%				94.9		%				94.2		%				0.7		%				$	1,859					$	1,707					8.9		%				$	2,092					$	1,906					9.8		%
Minneapolis, MN						25.0		%				93.9		%				93.9		%				—						1,602						1,528						4.8		%				1,788						1,628						9.8		%
North Dakota						17.1		%				95.5		%				95.4		%				0.1		%				1,123						1,082						3.8		%				1,221						1,164						4.9		%
Omaha, NE						8.8		%				95.6		%				95.0		%				0.6		%				1,037						934						11.0		%				1,151						1,044						10.2		%
Rochester, MN						10.9		%				93.9		%				94.4		%				(0.5)		%				1,554						1,404						10.7		%				1,645						1,484						10.8		%
St. Cloud, MN						7.7		%				90.8		%				92.9		%				(2.1)		%				1,159						1,013						14.4		%				1,323						1,101						20.2		%
Other Mountain West						10.2		%				95.4		%				97.5		%				(2.1)		%				1,213						1,027						18.1		%				1,337						1,128						18.5		%
Same-Store Total						100.0		%				94.4		%				94.6		%				(0.2)		%				$	1,371					$	1,263					8.6		%				$	1,517					$	1,370					10.7		%

S-14

CENTERSPACE

PORTFOLIO SUMMARY(1)

						Three Months Ended
						9/30/2022						6/30/2022						3/31/2022						12/31/2021						9/30/2021
Number of Apartment Homes at Period End
Same-Store						11,330						11,319						11,319						10,672						10,676
Non-Same-Store						3,734						3,519						3,519						3,769						3,599
All Communities						15,064						14,838						14,838						14,441						14,275
Average Monthly Rental Rate(2)
Same-Store						$	1,411					$	1,366					$	1,339					$	1,314					$	1,279
Non-Same-Store						1,286						1,245						1,218						1,225						1,506
All Communities						$	1,381					$	1,337					$	1,292					$	1,291					$	1,293
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,565					$	1,518					$	1,471					$	1,463					$	1,392
Non-Same-Store						1,417						1,329						1,271						1,306						1,606
All Communities						$	1,530					$	1,473					$	1,424					$	1,423					$	1,397
Weighted Average Occupancy(4)
Same-Store						94.5		%				94.8		%				93.9		%				93.4		%				94.3		%
Non-Same-Store						94.6		%				95.0		%				94.5		%				94.7		%				95.1		%
All Communities						94.5		%				94.8		%				94.0		%				93.7		%				94.4		%
Operating Expenses as a % of Scheduled Rent
Same-Store						42.5		%				40.3		%				41.0		%				39.5		%				41.8		%
Non-Same-Store						48.7		%				47.1		%				50.6		%				44.1		%				39.9		%
All Communities						43.9		%				41.8		%				43.0		%				40.6		%				41.6		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	465					$	196					$	145					$	369					$	255

(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-15

CENTERSPACE

CAPITAL EXPENDITURES

($ in thousands, except per home amounts)

						Three Months Ended															Nine Months Ended
Same Store Capital Expenditures						9/30/2022						9/30/2021									9/30/2022						9/30/2021
Total Same-Store Apartment Homes						11,330						11,330									11,330						11,330
Building - Exterior						$	1,443					$	1,251								$	2,042					$	2,151
Building - Interior						214						205									250						348
Mechanical, Electrical, & Plumbing						1,178						155									2,038						572
Furniture & Equipment						120						(4)									312						103
Landscaping & Grounds						765						211									989						365
Turnover						1,544						991									3,490						2,377
Capital Expenditures - Same-Store						$	5,264					$	2,809								$	9,121					$	5,916
Capital Expenditures per Apartment Home - Same-Store						$	465					$	248								$	805					$	522
Value Add						$	10,536					$	6,837								$	22,336					$	14,017
Total Capital Spend - Same-Store						$	15,800					$	9,646								$	31,457					$	19,933
Total Capital Spend per Apartment Home - Same-Store						$	1,395					$	851								$	2,776					$	1,759
						Three Months Ended															Nine Months Ended
Capital Expenditures - All Properties						9/30/2022						9/30/2021									9/30/2022						9/30/2021
All Properties - Weighted Average Apartment Homes						14,981						12,472									14,882						11,874
Capital Expenditures						$	6,835					$	2,826								$	11,175					$	6,174
Capital Expenditures per Apartment Home						$	456					$	227								$	751					$	520
Value Add						10,752						6,837									22,610						14,024
Acquisition Capital						2,740						265									5,727						1,225
Total Capital Spend						20,327						9,928									39,512						21,423
Total Capital Spend per Apartment Home						$	1,357					$	796								$	2,655					$	1,804
						Three Months Ended															Nine Months Ended
Value Add Capital Expenditures						9/30/2022						9/30/2021									9/30/2022						9/30/2021
Interior - Units
Same-Store						$	7,564					$	4,574								$	14,520					$	9,380
Non-Same-Store						80						—									79						1
Total Interior Units						$	7,644					$	4,574								$	14,599					$	9,381
Common Areas and Exteriors
Same-Store						$	2,972					$	2,263								$	7,816					$	4,637
Non-Same-Store						136						—									195						6
Total Common Areas and Exteriors						$	3,108					$	2,263								$	8,011					$	4,643
Total Value-Add Capital Expenditures
Same-Store						$	10,536					$	6,837								$	22,336					$	14,017
Non-Same-Store						216						—									274						7
Total Portfolio Value-Add						$	10,752					$	6,837								$	22,610					$	14,024

S-16

CENTERSPACE

2022 Financial Outlook

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

Centerspace revised its outlook for 2022 in the table below.

			Nine Months Ended						2022 Previous Outlook Range												2022 Revised Outlook Range
			September 30, 2022						Low						High						Low						High
			YTD Actual						Amount						Amount						Amount						Amount
Same-store growth
Revenue			$	146,010					9.00		%				10.50		%				9.75		%				10.25		%
Controllable expenses			38,200						10.00		%				11.50		%				13.50		%				14.50		%
Non-controllable expenses			21,105						3.00		%				3.50		%				3.00		%				3.50		%
Total Expenses			$	59,305					7.50		%				8.50		%				9.50		%				10.00		%
Same-store NOI			$	86,705					10.00		%				12.00		%				9.75		%				10.75		%
Components of NOI
Same-store NOI			$	86,705					$	118,200					$	119,800					$	117,900					$	118,800
Non-same-store NOI (1)			20,758						29,200						29,700						27,800						27,900
Other Commercial NOI			1,990						2,200						2,300						2,300						2,400
Other Sold NOI			$	(3)					$	—					$	—					$	—					$	—
Total NOI			$	109,450					$	149,600					$	151,800					$	148,000					$	149,100
Accretion (dilution) from investments and capital market activity, excluding impact from change in share count			$	—					—						—						(350)						(300)
Interest expense			$	(23,147)					(32,200)						(31,800)						(31,700)						(31,600)
Dividends to preferred shareholders			$	(4,821)					(6,400)						(6,400)						(6,400)						(6,400)
Gain (loss) on sale of real estate and other investments			$	27					—						—						—						—
Recurring income and expenses
Interest and other income			$	996					$	1,380					$	1,550					$	1,180					$	1,300
General and administrative and property management			(21,777)						(28,900)						(28,600)						(28,150)						(27,950)
Casualty losses			(1,256)						(1,800)						(1,700)						(1,700)						(1,600)
Non-real estate depreciation and amortization			(296)						(375)						(325)						(375)						(325)
Non-controlling interest			(46)						(110)						(100)						(110)						(100)
Total recurring income and expenses			$	(22,379)					$	(29,805)					$	(29,175)					$	(29,155)					$	(28,675)
FFO			$	59,130					$	81,195					$	84,425					$	80,395					$	82,125
Non-core income and expenses
Non-cash casualty (gain) loss			$	234					$	500					$	400					$	400					$	300
Technology implementation costs			784						1,000						900						1,100						1,000
Interest rate swap termination, amortization, and mark-to-market			(204)						(100)						(100)						(100)						(100)
Amortization of assumed debt			(347)						—						—						—						—
Pursuit costs			1,165						1,100						1,100						1,100						1,200
Other miscellaneous items			118						(100)						—						(300)						(350)
Total non-core income and expenses			$	1,750					$	2,400					$	2,300					$	2,200					$	2,050
Core FFO			$	60,880					$	83,595					$	86,725					$	82,595					$	84,175
EPS - Diluted			$	(1.11)					$	(0.31)					$	(0.14)					$	(0.50)					$	(0.41)
FFO per diluted share			$	3.16					$	4.32					$	4.49					$	4.30					$	4.39
Core FFO per diluted share			$	3.25					$	4.45					$	4.61					$	4.42					$	4.50
Weighted average shares outstanding - diluted			18,722						18,800						18,800						18,700						18,700
Additional Assumptions
Same-store capital expenditures (per home)			$	805					$	950					1,000						$	950					1,000
Value-add expenditures			$	22,610					$	26,000					$	29,000					$	26,000					$	29,000

S-17

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, 2022						December 31, 2022												December 31, 2022
			Actual						Low						High						Low						High
Net income (loss) available to common shareholders			$	(16,924)					$	2,002					$	5,172					$	(1,506)					$	164
Noncontrolling interests - Operating Partnership and Series E preferred units			(3,546)						(7,885)						(7,885)						(7,885)						(7,885)
Depreciation and amortization			79,489						86,923						86,923						89,631						89,631
Less depreciation - non real estate			(296)						(375)						(325)						(375)						(325)
Less depreciation - partially owned entities			(46)						(110)						(100)						(110)						(100)
(Gain) loss on sale of real estate			(27)						—						—						—						—
Dividends to preferred unitholders			480						640						640						640						640
FFO applicable to common shares and Units			$	59,130					$	81,195					$	84,425					$	80,395					$	82,125
Adjustments to Core FFO:
Non-cash casualty (gain) loss			234						500						400						400						300
Technology implementation costs			784						1,000						900						1,100						1,000
Interest rate swap termination, amortization, and mark-to-market			(204)						(100)						(100)						(100)						(100)
Amortization of assumed debt			(347)						—						—						—						—
Pursuit costs			1,165						1,100						1,100						1,100						1,200
Other miscellaneous items			118						(100)						—						(300)						(350)
Core FFO applicable to common shares and Units			$	60,880					$	83,595					$	86,725					$	82,595					$	84,175
Net income per share - diluted			$	(1.11)					$	(0.31)					$	(0.14)					$	(0.50)					$	(0.41)
FFO per share - diluted			$	3.16					$	4.32					$	4.49					$	4.30					$	4.39
Core FFO per share - diluted			$	3.25					$	4.45					$	4.61					$	4.42					$	4.50

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, 2022						December 31, 2022												December 31, 2022
			Actual						Low						High						Low						High
Operating income (loss)			$	6,955					$	31,977					$	34,577					$	28,519					$	29,919
Adjustments:
General and administrative and property management expenses			21,777						28,900						28,600						28,150						27,950
Casualty loss			1,256						1,800						1,700						1,700						1,600
Depreciation and amortization			79,489						86,923						86,923						89,631						89,631
(Gain) loss on sale of real estate and other investments			(27)						—						—						—						—
Net operating income			$	109,450					$	149,600					$	151,800					$	148,000					$	149,100

S-18