Exhibit 99.1

Earnings Release

Centerspace Announces Financial and Operating Results for the Year Ended

December 31, 2022 and Provides 2023 Financial Outlook

MINNEAPOLIS, MN, February 21, 2023 – Centerspace (NYSE: CSR) announced today its financial and operating results for the year ended December 31, 2022. The tables below show Net Income (Loss), Funds from Operations (“FFO”)1, and Core FFO1, all on a per share basis, for the year ended December 31, 2022; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted Average Occupancy for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021 and the twelve months ended December 31, 2022 and 2021.

						Three Months Ended December 31,												Twelve Months Ended December 31,
Per Share						2022						2021						2022						2021
Net loss per share - diluted						$	(0.24)					$	(0.61)					$	(1.35)					$	(0.47)
FFO - diluted(1)						1.16						1.07						4.32						3.54
Core FFO - diluted(1)						1.17						1.08						4.43						3.99

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results						4Q22 vs 4Q21						4Q22 vs. 3Q22						CY22 vs. CY21
Revenues						9.3		%				2.2		%				10.0		%
Expenses						14.2		%				3.3		%				11.6		%
Net Operating Income (“NOI”)(1)						6.1		%				1.4		%				9.0		%

						Three months ended																		Twelve months ended
Same-Store Results						December 31, 2022						September 30, 2022						December 31, 2021						December 31, 2022						December 31, 2021
Weighted Average Occupancy						94.9		%				94.5		%				93.4		%				94.5		%				94.3		%

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

Highlights for the Year Ended December 31, 2022

•Net Loss was $1.35 per diluted share for the year ended December 31, 2022, compared to Net Loss of $0.47 per diluted share for the year ended December 31, 2021;

•Core FFO(1) increased to $4.43 or 11.0% per diluted share for the year ended December 31, 2022, compared to $3.99 for the year ended December 31, 2021;

•Same-store year-over-year NOI(1) growth of 9.0% driven by same-store revenue growth of 10.0%; and

•Repurchased 432,000 common shares for total consideration of $29.1 million and an average of $67.23 per share.

Balance Sheet

Centerspace closed on a $100.0 million term loan which bears interest at a floating rate of 120 to 175 basis points over the Secured Overnight Financing Rate (“SOFR”) based upon its leverage ratio and has a 364-day term with an option to extend for an additional 364-day term.

At December 31, 2022, Centerspace had $153.0 million of total liquidity on its balance sheet, including $142.5 million available on its lines of credit.

1

Subsequent Events

Subsequent to December 31, 2022, we entered into definitive purchase and sale agreements for nine communities and believe they will close in the first quarter. The closing of pending transactions is subject to certain conditions and restrictions; therefore, there can be no assurance that the transactions will be consummated or that the final terms will not differ in material respects.

2023 Financial Outlook

Centerspace is providing the following guidance for its 2023 performance.

2023 Financial Outlook
									Range for 2023
			2022 Actual						Low						High
Net income (loss) per Share - diluted			$	(1.35)					$	2.37					$	3.25
FFO per Share - diluted			$	4.32					$	4.21					$	4.50
Core FFO per Share - diluted			$	4.43					$	4.27					$	4.56

Additional assumptions:

•Same-store capital expenditures of $1,100 per home to $1,150 per home

•Value-add expenditures of $24.5 million to $27.5 million

•Proceeds from potential dispositions of $155.0 million to $165.0 million

FFO and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, please refer to "2023 Financial Outlook" in the Supplemental Financial and Operating Data below.

Earnings Call

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

Live Conference Call

Conference Call Replay

Wednesday, February 22, 2023 at 10:00 AM ET

Replay available until March 8, 2023

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

831728

Conference Number

229148

Supplemental Information

Supplemental Operating and Financial Data for the year ended December 31, 2022, is available in the Investors section on Centerspace’s website at https://www.centerspacehomes.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of December 31, 2022, Centerspace owned 84 apartment communities consisting of 15,065 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2022 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

Forward-Looking Statements

Certain statements in this press release are based on the company's current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “assumes,” “may,” “projects,” “outlook,” “future,” and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations,

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financial conditions, or plans expressed or implied by the forward-looking statements. Although the company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the SEC, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in the company's Annual Report on Form 10-K, in quarterly reports on Form 10-Q, and in other reports the company files with the SEC from time to time. The company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

Contact Information

Investor Relations

Joe McComish

Phone: 701-837-7104

E-mail: IR@centerspacehomes.com

Marketing & Media

Kelly Weber

Phone: 701-837-7104

E-mail: kweber@centerspacehomes.com

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Supplemental Financial and Operating Data

Table of Contents

December 31, 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 Detail			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
Same-Store Capital Expenditures			S-16
2023 Financial Outlook			S-17

Common Share Data (NYSE: CSR)

						Three Months Ended
						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022						December 31, 2021
High closing price						$	70.20					$	89.71					$	103.17					$	108.27					$	111.26
Low closing price						$	58.50					$	65.85					$	76.65					$	89.01					$	96.58
Average closing price						$	64.64					$	79.40					$	87.61					$	97.15					$	103.29
Closing price at end of quarter						$	58.67					$	67.32					$	81.55					$	98.12					$	110.90
Common share distributions—annualized						$	2.92					$	2.92					$	2.92					$	2.92					$	2.88
Closing price dividend yield - annualized						5.0		%				4.3		%				3.6		%				3.0		%				2.6		%
Closing common shares outstanding (thousands)						15,020						15,376						15,373						15,365						15,016
Closing limited partnership units outstanding (thousands)						971						980						995						997						832
Closing Series E preferred units, as converted (thousands)						2,119						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)						$	1,062,514					$	1,248,247					$	1,513,079					$	1,819,930					$	1,999,971

S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share amounts)

						Three Months Ended																																	Twelve months ended
						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021									12/31/2022						12/31/2021
REVENUE						$	67,848					$	65,438					$	63,116					$	60,314					$	57,988								$	256,716					$	201,705
EXPENSES
Property operating expenses, excluding real estate taxes						21,755						20,290						19,011						19,014						16,852									80,070						57,753
Real estate taxes						7,464						7,039						7,205						6,859						6,654									28,567						24,104
Property management expenses						2,358						2,563						2,721						2,253						2,697									9,895						8,752
Casualty loss						335						276						382						598						280									1,591						344
Depreciation and amortization						25,768						23,720						24,768						31,001						30,418									105,257						92,165
General and administrative expenses						3,276						4,519						5,221						4,500						4,231									17,516						16,213
TOTAL EXPENSES						$	60,956					$	58,407					$	59,308					$	64,225					$	61,132								$	242,896					$	199,331
Gain (loss) on sale of real estate and other investments						14						—						27						—						678									41						27,518
Operating income (loss)						6,906						7,031						3,835						(3,911)						(2,466)									13,861						29,892
Interest expense						(9,603)						(7,871)						(7,561)						(7,715)						(7,456)									(32,750)						(29,078)
Interest and other income (loss)						132						70						(17)						1,063						1,117									1,248						(2,915)
Net income (loss)						$	(2,565)					$	(770)					$	(3,743)					$	(10,563)					$	(8,805)								$	(17,641)					$	(2,101)
Dividends to Series D preferred unitholders						(160)						(160)						(160)						(160)						(160)									(640)						(640)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units						753						439						950						2,157						1,793									4,299						2,806
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities						(34)						(32)						(38)						(23)						(36)									(127)						(94)
Net income (loss) attributable to controlling interests						(2,006)						(523)						(2,991)						(8,589)						(7,208)									(14,109)						(29)
Dividends to preferred shareholders						(1,607)						(1,607)						(1,607)						(1,607)						(1,607)									(6,428)						(6,428)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	(3,613)					$	(2,130)					$	(4,598)					$	(10,196)					$	(8,815)								$	(20,537)					$	(6,457)
Per Share Data - Diluted
Net earnings (loss) per common share – basic and diluted						$	(0.24)					$	(0.14)					$	(0.30)					$	(0.68)					$	(0.61)								$	(1.35)					$	(0.47)

S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021
ASSETS
Real estate investments
Property owned						$	2,534,124					$	2,513,470					$	2,401,427					$	2,390,952					$	2,271,170
Less accumulated depreciation						(535,401)						(511,000)						(487,834)						(465,752)						(443,592)
						1,998,723						2,002,470						1,913,593						1,925,200						1,827,578
Mortgage loans receivable						—						—						—						—						43,276
Total real estate investments						1,998,723						2,002,470						1,913,593						1,925,200						1,870,854
Cash and cash equivalents						10,458						14,957						13,156						13,313						31,267
Restricted cash						1,433						1,417						1,914						2,409						7,358
Other assets						22,687						19,742						18,950						24,651						30,582
TOTAL ASSETS						$	2,033,301					$	2,038,586					$	1,947,613					$	1,965,573					$	1,940,061
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	58,812					$	58,322					$	48,077					$	50,360					$	62,403
Revolving line of credit						113,500						171,500						73,000						46,000						76,000
Notes payable, net of unamortized loan costs						399,007						299,388						299,374						299,359						299,344
Mortgages payable, net of unamortized loan costs						495,126						496,530						497,917						521,536						480,703
TOTAL LIABILITIES						$	1,066,445					$	1,025,740					$	918,368					$	917,255					$	918,450
SERIES D PREFERRED UNITS						$	16,560					$	16,560					$	18,627					$	22,412					$	25,331
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,530						93,530						93,530						93,530
Common Shares of Beneficial Interest						1,177,484						1,209,732						1,207,849						1,203,685						1,157,255
Accumulated distributions in excess of net income						(539,422)						(524,905)						(511,552)						(495,732)						(474,318)
Accumulated other comprehensive income (loss)						(2,055)						(2,158)						(2,362)						(2,550)						(4,435)
Total shareholders’ equity						$	729,537					$	776,199					$	787,465					$	798,933					$	772,032
Noncontrolling interests – Operating Partnership and Series E preferred units						220,132						219,466						222,528						226,302						223,600
Noncontrolling interests – consolidated real estate entities						627						621						625						671						648
TOTAL EQUITY						$	950,296					$	996,286					$	1,010,618					$	1,025,906					$	996,280
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	2,033,301					$	2,038,586					$	1,947,613					$	1,965,573					$	1,940,061

S-3

CENTERSPACE

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)

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

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

Reconciliation of Operating Income (Loss) to Net Operating Income

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

			(dollars in thousands)
			Three Months Ended																					Sequential												Year-Over-Year
			12/31/2022						9/30/2022						12/31/2021									$ Change						% Change						$ Change						% Change
Operating income (loss)			$	6,906					$	7,031					$	(2,466)								$	(125)					(1.8)		%				$	9,372					(380.0)		%
Adjustments:
Property management expenses			2,358						2,563						2,697									(205)						(8.0)		%				(339)						(12.6)		%
Casualty loss			335						276						280									59						21.4		%				55						19.6		%
Depreciation and amortization			25,768						23,720						30,418									2,048						8.6		%				(4,650)						(15.3)		%
General and administrative expenses			3,276						4,519						4,231									(1,243)						(27.5)		%				(955)						(22.6)		%
Gain (loss) on sale of real estate and other investments			(14)						—						(678)									(14)						N/A						664						(97.9)		%
Net Operating Income			$	38,629					$	38,109					$	34,482								$	520					1.4		%				$	4,147					12.0		%
Revenue
Same-store			$	51,337					$	50,253					$	46,980								$	1,084					2.2		%				$	4,357					9.3		%
Non-same-store			15,611						14,151						10,198									1,460						10.3		%				5,413						53.1		%
Other			900						1,034						810									(134)						(13.0)		%				90						11.1		%
Dispositions			—						—						—									—						N/A						—						N/A
Total			67,848						65,438						57,988									2,410						3.7		%				9,860						17.0		%
Property operating expenses, including real estate taxes
Same-store			21,063						20,389						18,436									674						3.3		%				2,627						14.2		%
Non-same-store			7,839						6,620						4,753									1,219						18.4		%				3,086						64.9		%
Other			317						317						312									—						—		%				5						1.6		%
Dispositions			—						3						5									(3)						(100.0)		%				(5)						(100.0)		%
Total			29,219						27,329						23,506									1,890						6.9		%				5,713						24.3		%
Net Operating Income
Same-store			30,274						29,864						28,544									410						1.4		%				1,730						6.1		%
Non-same-store			7,772						7,531						5,445									241						3.2		%				2,327						42.7		%
Other			583						717						498									(134)						(18.7)		%				85						17.1		%
Dispositions			—						(3)						(5)									3						(100.0)		%				5						(100.0)		%
Total			$	38,629					$	38,109					$	34,482								$	520					1.4		%				$	4,147					12.0		%

S-4

			(dollars in thousands)
			Twelve Months Ended December 31,
			2022						2021						$ Change						% Change
Operating income (loss)			$	13,861					$	29,892					$	(16,031)					(53.6)		%
Adjustments:
Property management expenses			9,895						8,752						1,143						13.1		%
Casualty loss			1,591						344						1,247						362.5		%
Depreciation and amortization			105,257						92,165						13,092						14.2		%
General and administrative expenses			17,516						16,213						1,303						8.0		%
Gain (loss) on sale of real estate and other investments			(41)						(27,518)						27,477						(99.9)		%
Net Operating Income			$	148,079					$	119,848					$	28,231					23.6		%
Revenue
Same-store			$	197,348					$	179,348					$	18,000					10.0		%
Non-same-store			55,602						16,276						39,326						241.6		%
Other			3,766						2,831						935						33.0		%
Dispositions			—						3,250						(3,250)						(100.0)		%
Total			256,716						201,705						55,011						27.3		%
Property operating expenses, including real estate taxes
Same-store			80,368						72,009						8,359						11.6		%
Non-same-store			27,063						7,087						19,976						281.9		%
Other			1,203						1,120						83						7.4		%
Dispositions			3						1,641						(1,638)						(99.8)		%
Total			108,637						81,857						26,780						32.7		%
Net Operating Income
Same-store			116,980						107,339						9,641						9.0		%
Non-same-store			28,539						9,189						19,350						210.6		%
Other			2,563						1,711						852						49.8		%
Dispositions			(3)						1,609						(1,612)						(100.2)		%
Total			$	148,079					$	119,848					$	28,231					23.6		%

S-5

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

Centerspace defines same-store controllable expenses as property operating expenses excluding real estate taxes and insurance. The company believes it provides a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP financial measure and should not be considered an alternative to total expenses or total property operating expenses and real estate taxes.

			(dollars in thousands)
			Three Months Ended December 31,																											Twelve Months Ended December 31,
			2022						2021						$ Change						% Change									2022						2021						$ Change						% Change
Controllable expenses
On-site compensation (1)			$	5,379					$	4,614					$	765					16.6		%							$	20,341					$	18,634					$	1,707					9.2		%
Repairs and maintenance			3,296						2,941						355						12.1		%							12,810						10,363						2,447						23.6		%
Utilities			3,458						2,950						508						17.2		%							13,902						11,762						2,140						18.2		%
Administrative and marketing			1,069						1,025						44						4.3		%							4,348						3,934						414						10.5		%
Total			$	13,202					$	11,530					$	1,672					14.5		%							$	51,401					$	44,693					$	6,708					15.0		%
Non-controllable expenses
Real estate taxes			$	5,672					$	5,226					$	446					8.5		%							$	21,746					$	21,267					$	479					2.3		%
Insurance			2,189						1,680						509						30.3		%							7,221						6,049						1,172						19.4		%
Total			$	7,861					$	6,906					$	955					13.8		%							$	28,967					$	27,316					$	1,651					6.0		%
Property operating expenses, including real estate taxes - non-same-store			$	7,839					$	4,753					$	3,086					64.9		%							$	27,063					$	7,087					$	19,976					281.9		%
Property operating expenses, including real estate taxes - other			317						312						5						1.6		%							1,203						1,120						83						7.4		%
Property operating expenses, including real estate taxes - dispositions			—						5						(5)						(100.0)		%							3						1,641						(1,638)						(99.8)		%
Total property operating expenses, including real estate taxes			$	29,219					$	23,506					$	5,713					24.3		%							$	108,637					$	81,857					$	26,780					32.7		%

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

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

•depreciation and amortization related to real estate;

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

•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; and

•similar adjustments for partially owned consolidated real estate entities.

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

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

S-6

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

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

S-7

						(in thousands, except per share amounts)
						Three Months Ended																																	Twelve Months Ended
						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021									12/31/2022						12/31/2021
Net (loss) income available to common shareholders						$	(3,613)					$	(2,130)					$	(4,598)					$	(10,196)					$	(8,815)								$	(20,537)					$	(6,457)
Adjustments:
Noncontrolling interests - Operating Partnership and Series E preferred units						(753)						(439)						(950)						(2,157)						(1,793)									(4,299)						(2,806)
Depreciation and amortization						25,768						23,720						24,768						31,001						30,418									105,257						92,165
Less depreciation - non real estate						(91)						(94)						(101)						(101)						(101)									(387)						(366)
Less depreciation - partially owned entities						(19)						(18)						(7)						(21)						(21)									(65)						(93)
(Gain) loss on sale of real estate						(14)						—						(27)						—						(678)									(41)						(27,518)
FFO applicable to common shares and Units						$	21,278					$	21,039					$	19,085					$	18,526					$	19,010								$	79,928					$	54,925
Adjustments to Core FFO:
Non-cash casualty loss (recovery)						20						46						163						25						—									254						—
Loss on extinguishment of debt						—						—						5						—						2									5						535
Technology implementation costs(1)						89						234						447						103						535									873						2,020
Commercial lease termination proceeds						—						—						—						—						—									—						(450)
Acquisition related costs						—						—						—						—						90									—						230
Interest rate swap termination, amortization, and mark-to-market						104						204						205						(613)						(411)									(100)						4,942
Amortization of assumed debt						(117)						(116)						(116)						(115)						(26)									(464)						(53)
Pursuit costs						137						38						1,127						—						38									1,302						39
Other miscellaneous items(2)						(28)						17						100						(4)						(99)									85						(103)
Core FFO applicable to common shares and Units						$	21,483					$	21,462					$	21,016					$	17,922					$	19,139								$	81,883					$	62,085
FFO applicable to common shares and Units						$	21,278					$	21,039					$	19,085					$	18,526					$	19,010								$	79,928					$	54,925
Dividends to Series D preferred unitholders						160						160						160						160						160									640						640
FFO applicable to common shares and Units - diluted						$	21,438					$	21,199					$	19,245					$	18,686					$	19,170								$	80,568					$	55,565
Core FFO applicable to common shares and Units						$	21,483					$	21,462					$	21,016					$	17,922					$	19,139								$	81,883					$	62,085
Dividends to Series D preferred unitholders						160						160						160						160						160									640						640
Core FFO applicable to common shares and Units - diluted						$	21,643					$	21,622					$	21,176					$	18,082					$	19,299								$	82,523					$	62,725
Per Share Data
Net earnings (loss) per share and unit - diluted						$	(0.24)					$	(0.14)					$	(0.30)					$	(0.68)					$	(0.61)								$	(1.35)					$	(0.47)
FFO per share and unit - diluted						$	1.16					$	1.13					$	1.02					$	1.01					$	1.07								$	4.32					$	3.54
Core FFO per share and unit - diluted						$	1.17					$	1.15					$	1.12					$	0.98					$	1.08								$	4.43					$	3.99
Weighted average shares - basic						15,027						15,373						15,369						15,097						14,541									15,216						13,803
Effect of redeemable operating partnership units						974						984						995						965						838									978						899
Effect of Series D preferred units						228						228						228						228						228									228						228
Effect of Series E preferred units						2,185						2,186						2,186						2,186						2,186									2,185						729
Effect of dilutive restricted stock units and stock options						9						30						48						66						75									38						45
Weighted average shares and units - diluted						18,423						18,801						18,826						18,542						17,868									18,645						15,704

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

(2)Consists of (gain) loss on investments

S-8

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

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

						(in thousands)
						Three Months Ended																																	Twelve Months Ended
						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021									12/31/2022						12/31/2021
Net income (loss) attributable to controlling interests						$	(2,006)					$	(523)					$	(2,991)					$	(8,589)					$	(7,208)								$	(14,109)					$	(29)
Adjustments:
Dividends to Series D preferred unitholders						160						160						160						160						160									640						640
Noncontrolling interests – Operating Partnership and Series E preferred units						(753)						(439)						(950)						(2,157)						(1,793)									(4,299)						(2,806)
Income (loss) before noncontrolling interests – Operating Partnership						(2,599)						(802)						(3,781)						(10,586)						(8,841)									(17,768)						(2,195)
Adjustments:
Interest expense						9,589						7,856						7,547						7,700						7,440									32,692						29,018
Loss on extinguishment of debt						—						—						5						—						2									5						535
Depreciation and amortization related to real estate investments						25,747						23,699						24,759						30,980						30,397									105,185						92,073
Non-cash casualty loss (recovery)						20						46						163						25						—									254						—
Interest income						(92)						(82)						(74)						(464)						(644)									(712)						(2,403)
Gain (loss) on sale of real estate and other investments						(14)						—						(27)						—						(678)									(41)						(27,518)
Technology implementation costs(1)						89						234						447						103						534									873						2,020
Commercial lease termination proceeds						—						—						—						—						—									—						(450)
Acquisition related costs						—						—						—						—						90									—						230
Interest rate swap termination and mark-to-market						—						—						18						(582)						(359)									(564)						5,002
Pursuit costs						137						38						1,127						—						38									1,302						39
Other miscellaneous items(2)						(28)						17						100						(4)						(99)									85						(103)
Adjusted EBITDA						$	32,849					$	31,006					$	30,284					$	27,172					$	27,880								$	121,311					$	96,248

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

(2)Consists of (gain) loss on investments

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)
2023						$	41,425					$	—					$	100,000					$	141,425					14.0		%				5.11		%
2024						—						—						—						—						—		%				—		%
2025						31,279						—						113,500						144,779						14.0		%				4.03		%
2026						52,023						—						—						52,023						5.0		%				3.73		%
2027						50,933						—						—						50,933						5.0		%				3.47		%
Thereafter						322,617						300,000						—						622,617						62.0		%				3.19		%
Total debt						$	498,277					$	300,000					$	213,500					$	1,011,777					100.0		%				3.62		%

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

						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021
Debt Balances Outstanding
Secured fixed rate - mortgages payable - other						$	299,427					$	300,956					$	302,360					$	326,113					$	284,934
Secured fixed rate - mortgages payable - Fannie Mae credit facility						198,850						198,850						198,850						198,850						198,850
Unsecured fixed rate line of credit(1)						—						—						—						—						75,000
Unsecured variable rate line of credit						113,500						171,500						73,000						46,000						1,000
Unsecured term loans						100,000						—						—						—						—
Unsecured senior notes						300,000						300,000						300,000						300,000						300,000
Debt total						$	1,011,777					$	971,306					$	874,210					$	870,963					$	859,784
Quarterly Weighted Average Interest Rates
Mortgages payable - other rate						3.85		%				3.85		%				3.85		%				3.85		%				3.81		%
Mortgages payable - Fannie Mae Credit Facility rate						2.78		%				2.78		%				2.78		%				2.78		%				2.78		%
Lines of credit rate (rate with swap)(1)						5.23		%				4.13		%				3.04		%				2.56		%				4.22		%
Unsecured term loan rate						5.57		%				—						—						—						—
Unsecured senior notes rate						3.12		%				3.12		%				3.12		%				3.12		%				3.12		%
Total debt						3.62		%				3.45		%				3.27		%				3.29		%				3.26		%

(1)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%. The interest rate swap was terminated in February 2022.

S-10

CENTERSPACE

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021
Equity Capitalization
Common shares outstanding						15,020						15,376						15,373						15,365						15,016
Operating partnership units outstanding						971						980						995						997						832
Series E preferred units (as converted)						2,119						2,186						2,186						2,186						2,186
Total common shares and units outstanding						18,110						18,542						18,554						18,548						18,034
Market price per common share (closing price at end of period)						$	58.67					$	67.32					$	81.55					$	98.12					$	110.90
Equity capitalization-common shares and units						$	1,062,514					$	1,248,247					$	1,513,079					$	1,819,930					$	1,999,971
Recorded book value of preferred shares						$	93,530					$	93,530					$	93,530					$	93,530					$	93,530
Total equity capitalization						$	1,156,044					$	1,341,777					$	1,606,609					$	1,913,460					$	2,093,501
Series D preferred units						$	16,560					$	16,560					$	18,627					$	22,412					25,331
Debt capitalization
Total debt						1,011,777						971,306						874,210						870,963						859,784
Total capitalization						$	2,184,381					$	2,329,643					$	2,499,446					$	2,806,835					$	2,978,616
Total debt to total capitalization(1)						46.3		%				41.7		%				35.0		%				31.0		%				28.9		%

(1)Debt to total market capitalization is total debt not adjusted for unamortized deferred financing costs divided by the sum of total debt, market value of common shares and operating partnership units, Series E preferred units, as converted, and book value of Series C preferred shares and Series D preferred units outstanding at the end of the period.

						Three Months Ended																																	Twelve Months Ended
						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021									12/31/2022						12/31/2021
Debt service coverage ratio(1)						2.99		x				3.35		x				3.39		x				2.93		x				3.17		x							3.16		x				2.77		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.58		x				2.81		x				2.83		x				2.50		x				2.68		x							2.67		x				2.34		x
Net debt/Adjusted EBITDA(2)						7.62		x				7.71		x				7.11		x				7.89		x				7.43		x							8.25		x				8.61		x
Net debt and preferred equity/Adjusted EBITDA(2)						8.46		x				8.60		x				8.03		x				8.96		x				8.50		x							9.16		x				9.84		x
Distribution Data
Common shares and units outstanding at record date						15,991						16,354						16,367						16,363						15,848									15,991						15,848
Total common distribution declared						$	11,614					$	11,939					$	11,948					$	11,944					$	11,411								$	47,445					$	42,669
Common distribution per share and unit						$	0.73					$	0.73					$	0.73					$	0.73					$	0.72								$	2.92					$	2.84
Payout ratio (Core FFO per diluted share and unit basis)(3)						62.4		%				63.5		%				65.2		%				74.5		%				66.7		%							65.9		%				71.2		%

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

(2)Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). For the quarterly period presented, adjusted EBITDA is annualized. Net debt and adjusted EBITDA are non-GAAP measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section on page S-9.

(3)Payout ratio (Core FFO per diluted share and unit basis) is the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual Core FFO per diluted share and unit. Refer to the definition of Core FFO in the Non-GAAP Financial Measures and Reconciliations section on page S-6 for This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP.

S-11

CENTERSPACE

SAME-STORE FOURTH QUARTER COMPARISONS

(dollars in thousands)

						Homes Included						Revenues																		Expenses																		NOI
Regions												Q42022						Q42021						% Change						Q42022						Q42021						% Change						Q42022						Q42021						% Change
Denver, CO						1,457						$	9,262					$	8,163					13.5		%				$	2,923					$	2,657					10.0		%				$	6,339					$	5,506					15.1		%
Minneapolis, MN						2,538						13,217						12,572						5.1		%				5,747						5,145						11.7		%				7,470						7,427						0.6		%
North Dakota						2,422						8,919						8,155						9.4		%				3,790						3,273						15.8		%				5,129						4,882						5.1		%
Omaha, NE						1,370						4,729						4,222						12.0		%				2,389						1,888						26.5		%				2,340						2,334						0.3		%
Rochester, MN						1,129						5,593						4,996						11.9		%				2,365						2,174						8.8		%				3,228						2,822						14.4		%
St. Cloud, MN						1,192						4,498						4,576						(1.7)		%				2,079						1,820						14.2		%				2,419						2,756						(12.2)		%
Other Mountain West(1)						1,222						5,119						4,296						19.2		%				1,770						1,479						19.7		%				3,349						2,817						18.9		%
Same-Store Total						11,330						$	51,337					$	46,980					9.3		%				$	21,063					$	18,436					14.2		%				$	30,274					$	28,544					6.1		%

						% of NOI						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												Q42022						Q42021						Growth						Q42022						Q42021						% Change						Q42022						Q42021						% Change
Denver, CO						20.9		%				96.6		%				93.5		%				3.1		%				$	1,949					$	1,797					8.5		%				$	2,194					$	1,997					9.9		%
Minneapolis, MN						24.7		%				94.6		%				92.6		%				2.0		%				1,644						1,593						3.2		%				1,835						1,783						2.9		%
North Dakota						16.9		%				96.3		%				95.3		%				1.0		%				1,168						1,107						5.5		%				1,275						1,178						8.2		%
Omaha, NE						7.7		%				93.7		%				93.9		%				(0.2)		%				1,111						996						11.5		%				1,228						1,094						12.2		%
Rochester, MN						10.7		%				93.8		%				91.7		%				2.1		%				1,663						1,505						10.5		%				1,760						1,608						9.5		%
St. Cloud, MN						8.0		%				91.3		%				91.9		%				(0.6)		%				1,218						1,106						10.1		%				1,377						1,392						(1.1)		%
Other Mountain West(1)						11.1		%				95.8		%				94.5		%				1.3		%				1,314						1,132						16.1		%				1,458						1,240						17.6		%
Same-Store Total						100.0		%				94.9		%				93.4		%				1.5		%				$	1,438					$	1,333					7.9		%				$	1,592					$	1,480					7.6		%

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

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

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

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

S-12

CENTERSPACE

SAME-STORE SEQUENTIAL QUARTER COMPARISONS(1)

(dollars in thousands)

						Homes Included						Revenues																		Expenses																		NOI
Regions												Q42022						Q32022						% Change						Q42022						Q32022						% Change						Q42022						Q32022						% Change
Denver, CO						1,457						$	9,262					$	8,922					3.8		%				$	2,923					$	3,121					(6.3)		%				$	6,339					$	5,801					9.3		%
Minneapolis, MN						2,538						13,217						13,057						1.2		%				5,747						5,768						(0.4)		%				7,470						7,289						2.5		%
North Dakota						2,422						8,919						8,784						1.5		%				3,790						3,457						9.6		%				5,129						5,327						(3.7)		%
Omaha, NE						1,370						4,729						4,703						0.6		%				2,389						2,084						14.6		%				2,340						2,619						(10.7)		%
Rochester, MN						1,129						5,593						5,451						2.6		%				2,365						2,039						16.0		%				3,228						3,412						(5.4)		%
St. Cloud, MN						1,192						4,498						4,370						2.9		%				2,079						2,154						(3.5)		%				2,419						2,216						9.2		%
Other Mountain West						1,222						5,119						4,966						3.1		%				1,770						1,766						0.2		%				3,349						3,200						4.7		%
Same-Store Total						11,330						$	51,337					$	50,253					2.2		%				$	21,063					$	20,389					3.3		%				$	30,274					$	29,864					1.4		%

						% of NOI						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												Q42022						Q32022						Growth						Q42022						Q32022						% Change						Q42022						Q32022						% Change
Denver, CO						20.9		%				96.6		%				96.4		%				0.2		%				$	1,949					$	1,902					2.5		%				$	2,194					$	2,118					3.6		%
Minneapolis, MN						24.7		%				94.6		%				94.2		%				0.4		%				1,644						1,623						1.3		%				1,835						1,821						0.8		%
North Dakota						16.9		%				96.3		%				96.2		%				0.1		%				1,168						1,148						1.7						1,275						1,257						1.4		%
Omaha, NE						7.7		%				93.7		%				94.7		%				(1.1)		%				1,111						1,083						2.6		%				1,228						1,208						1.7		%
Rochester, MN						10.7		%				93.8		%				93.5		%				0.3		%				1,663						1,619						2.7		%				1,760						1,721						2.3		%
St. Cloud, MN						8.0		%				91.3		%				88.1		%				3.6		%				1,218						1,206						1.0		%				1,377						1,387						(0.7)		%
Other Mountain West						11.1		%				95.8		%				95.7		%				0.1		%				1,314						1,279						2.7		%				1,458						1,415						3.0		%
Same-Store Total						100.0		%				94.9		%				94.5		%				0.4		%				$	1,438					$	1,411					1.9		%				$	1,592					$	1,565					1.7		%

(1)Refer to footnotes on page S-12.

S-13

CENTERSPACE

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

(dollars in thousands)

						Homes Included						Revenues																		Expenses																		NOI
Regions												2022						2021						% Change						2022						2021						% Change						2022						2021						% Change
Denver, CO						1,457						$	35,309					$	31,712					11.3		%				$	11,326					$	10,494					7.9		%				$	23,983					$	21,218					13.0		%
Minneapolis, MN						2,538						51,576						47,659						8.2		%				22,395						20,080						11.5		%				29,181						27,579						5.8		%
North Dakota						2,422						34,342						32,365						6.1		%				14,423						13,121						9.9		%				19,919						19,244						3.5		%
Omaha, NE						1,370						18,297						16,451						11.2		%				8,302						7,468						11.2		%				9,995						8,983						11.3		%
Rochester, MN						1,129						21,281						19,223						10.7		%				8,639						8,021						7.7		%				12,642						11,202						12.9		%
St. Cloud, MN						1,192						17,386						15,548						11.8		%				8,309						6,788						22.4		%				9,077						8,760						3.6		%
Other Mountain West						1,222						19,157						16,390						16.9		%				6,974						6,037						15.5		%				12,183						10,353						17.7		%
Same-Store Total						11,330						$	197,348					$	179,348					10.0		%				$	80,368					$	72,009					11.6		%				$	116,980					$	107,339					9.0		%

						% of NOI						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						20.6		%				95.4		%				94.0		%				1.5		%				$	1,882					$	1,730					8.8		%				$	2,118					$	1,929					9.8		%
Minneapolis, MN						24.9		%				94.1		%				93.6		%				0.5		%				1,613						1,544						4.5		%				1,800						1,672						7.7		%
North Dakota						17.0		%				95.7		%				95.4		%				0.3		%				1,134						1,088						4.2		%				1,234						1,167						5.7		%
Omaha, NE						8.5		%				95.1		%				94.7		%				0.4		%				1,055						949						11.2		%				1,170						1,056						10.8		%
Rochester, MN						10.8		%				93.9		%				93.7		%				0.2		%				1,581						1,429						10.6		%				1,674						1,515						10.5		%
St. Cloud, MN						7.8		%				90.9		%				92.6		%				(1.8)		%				1,174						1,036						13.3		%				1,336						1,174						13.8		%
Other Mountain West						10.4		%				95.5		%				96.7		%				(1.2)		%				1,238						1,053						17.6		%				1,367						1,156						18.3		%
Same-Store Total						100.0		%				94.5		%				94.3		%				0.2		%				$	1,388					$	1,281					8.4		%				$	1,536					$	1,399					9.8		%

(1)Refer to footnotes on page S-12.

S-14

CENTERSPACE

PORTFOLIO SUMMARY (1)

						Three Months Ended
						12/31/2022						9/30/2022						6/30/2022						3/31/2022						12/31/2021
Number of Apartment Homes at Period End
Same-Store						11,330						11,330						11,319						11,319						10,672
Non-Same-Store						3,735						3,734						3,519						3,519						3,769
All Communities						15,065						15,064						14,838						14,838						14,441
Average Monthly Rental Rate(2)
Same-Store						$	1,438					$	1,411					$	1,366					$	1,339					$	1,314
Non-Same-Store						1,352						1,286						1,245						1,218						1,225
All Communities						$	1,417					$	1,381					$	1,337					$	1,292					$	1,291
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,592					$	1,565					$	1,518					$	1,471					$	1,463
Non-Same-Store						1,471						1,417						1,329						1,271						1,306
All Communities						$	1,562					$	1,530					$	1,473					$	1,424					$	1,423
Weighted Average Occupancy(4)
Same-Store						94.9		%				94.5		%				94.8		%				93.9		%				93.4		%
Non-Same-Store						94.7		%				94.6		%				95.0		%				94.5		%				94.7		%
All Communities						94.9		%				94.5		%				94.8		%				94.0		%				93.7		%
Operating Expenses as a % of Scheduled Rent
Same-Store						43.1		%				42.5		%				40.3		%				41.0		%				39.5		%
Non-Same-Store						51.7		%				48.7		%				47.1		%				50.6		%				44.1		%
All Communities						45.1		%				43.9		%				41.8		%				43.0		%				40.6		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	364					$	465					$	196					$	145					$	369

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

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

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

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

S-15

CENTERSPACE

CAPITAL EXPENDITURES

(dollars in thousands, except per home amounts)

						Three Months Ended															Twelve Months Ended
						12/31/2022						12/31/2021									12/31/2022						12/31/2021
Total Same-Store Apartment Homes						11,330						11,330									11,330						11,330
Building - Exterior						$	601					$	982								$	2,643					$	3,133
Building - Interior						424						1,371									490						1,719
Mechanical, Electrical, & Plumbing						627						274									2,850						845
Furniture & Equipment						126						83									439						186
Landscaping & Grounds						747						354									1,737						719
Turnover Replacements						1,353						925									4,842						3,303
Work in progress						244						706									(520)						706
Capital Expenditures - Same-Store						$	4,122					$	4,695								$	12,481					$	10,611
Capital Expenditures per Apartment Home - Same-Store						$	364					$	414								$	1,102					$	937
Value Add						$	10,032					$	5,921								$	30,432					$	20,310
Total Capital Spend - Same-Store						$	14,154					$	10,616								$	42,913					$	30,921
Total Capital Spend per Apartment Home - Same Store						$	1,249					$	937								$	3,788					$	2,729
						Three Months Ended															Twelve Months Ended
Capital Expenditures - All Properties						12/31/2022						12/31/2021									12/31/2022						12/31/2021
All Properties - Weighted Average Homes						15,065						14,324									14,914						12,486
Capital Expenditures						$	4,322					$	5,062								$	14,725					$	11,226
Capital Expenditures per Apartment Home						$	287					$	353								$	987					$	899
Value Add						10,698						5,922									31,361						20,328
Acquisition Capital						6,199						$	1,523								11,237						2,818
Total Capital Spend						$	21,219					$	12,507								$	57,323					$	34,372
Total Capital Spend per Apartment Home						$	1,408					$	873								$	3,844					$	2,753
						Three Months Ended															Twelve Months Ended
Value Add Capital Expenditures						12/31/2022						12/31/2021									12/31/2022						12/31/2021
Interior - Units
Same-Store						$	4,337					$	1,923								$	18,857					$	11,304
Non-Same-Store						326						1									404						1
Total Interior Units						$	4,663					$	1,924								$	19,261					$	11,305
Common Areas and Exteriors
Same-Store						$	5,425					$	2,433								$	13,241					$	7,070
Non-Same-Store						340						—									536						6
Total Common Areas and Exteriors						$	5,765					$	2,433								$	13,777					$	7,076
Work in Progress
Same-Store						$	270					$	1,565								$	(1,666)					$	1,937
Non-Same-Store						—						—									(11)						11
Total Work in Progress						$	270					$	1,565								$	(1,677)					$	1,948
Total Value-Add Capital Expenditures
Same-Store						$	10,032					$	5,921								$	30,432					$	20,311
Non-Same-Store						666						1									929						18
Total Portfolio Value-Add						$	10,698					$	5,922								$	31,361					$	20,329

S-16

CENTERSPACE

2023 Financial Outlook

(in thousands, except per share amounts)

Centerspace is providing guidance for 2023.

			Twelve Months Ended						2023 Full-Year Guidance Range
			December 31, 2022						Low						High
			Actual						Amount						Amount
Same-store growth (1)
Revenue			$	220,630					6.00		%				8.00		%
Controllable expenses			58,571						3.00		%				4.50		%
Non-controllable expenses			32,682						8.00		%				9.50		%
Total Expenses			$	91,253					4.75		%				6.25		%
Same-store NOI (1)(2)			$	129,377					7.00		%				9.00		%
Components of NOI(2)
Same-store(1)			$	129,377					$	138,300					$	141,300
Non-same-store(1)			5,892						8,900						9,100
Other(1)			2,558						2,000						2,400
Dispositions(1)			10,252						2,500						2,800
Total NOI(2)			$	148,079					$	151,700					$	155,600
Interest expense			$	(32,750)					(37,100)						(36,700)
Dividends to preferred shareholders			$	(6,428)					(6,400)						(6,400)
Recurring income and expenses
Interest and other income (loss)			$	1,175					160						350
General and administrative and property management			(27,411)						(29,100)						(28,300)
Casualty losses			(1,591)						(1,500)						(1,300)
Non-real estate depreciation and amortization			(379)						(375)						(325)
Non-controlling interest			(127)						(110)						(100)
Total recurring income and expenses			$	(28,333)					(30,925)						(29,675)
FFO(2)			$	80,568					$	77,275					$	82,825
Non-core income and expenses
Non-cash casualty (gain) loss			$	254					$	500					$	300
Technology implementation costs			873						—						—
Interest rate swap termination, amortization, and mark-to-market			(100)						900						1,000
Pursuit costs			1,302						70						60
Other miscellaneous items			(374)						(310)						(350)
Total non-core income and expenses			$	1,955					$	1,160					$	1,010
Core FFO(2)			$	82,523					$	78,435					$	83,835
Net income (loss) per share - diluted			$	(1.35)					$	2.37					$	3.25
FFO per diluted share(2)			$	4.32					$	4.21					$	4.50
Core FFO per diluted share(2)			$	4.43					$	4.27					$	4.56
Weighted average shares outstanding - diluted			18,645						18,375						18,400
Additional Assumptions
Same-store capital expenditures (per home)			$	1,102					$	1,100					$	1,150
Value-add expenditures			31,361						24,500						27,500
Proceeds from potential dispositions			—						155,000						165,000

(1)Amounts for the year ended December 31, 2022 reflect the 2023 same-store pool.

(2)NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" in the Supplemental Financial and Operating Data" above.

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.

												Outlook
			Twelve Months Ended									Twelve Months Ended
			December 31, 2022									December 31, 2023
			Amount									Low						High
Net income (loss) available to common shareholders			$	(20,537)								$	51,339					$	67,707
Noncontrolling interests - Operating Partnership and Series E preferred units			(4,299)									(7,795)						(7,885)
Depreciation and amortization			105,257									92,556						91,768
Less depreciation - non real estate			(387)									(375)						(325)
Less depreciation - partially owned entities			(65)									(110)						(100)
(Gain) loss on sale of real estate			(41)									(58,980)						(68,980)
Dividends to preferred unitholders			640									640						640
FFO applicable to common shares and Units			$	80,568								$	77,275					$	82,825
Adjustments to Core FFO:
Non-cash casualty (gain) loss			254									500						300
Loss on extinguishment of debt			5									—						—
Technology implementation costs			873									—						—
Interest rate swap termination, amortization, and mark-to-market			(100)									900						1,000
Pursuit costs			1,302									70						60
Other miscellaneous items			(379)									(310)						(350)
Core FFO applicable to common shares and Units			$	82,523								$	78,435					$	83,835
Net income (loss) per share - diluted			$	(1.35)								$	2.37					$	3.25
FFO per share - diluted			$	4.32								$	4.21					$	4.50
Core FFO per share - diluted			$	4.43								$	4.27					$	4.56

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.

									Outlook
			12 Months Ended						12 Months Ended
			December 31, 2022						December 31, 2023
			Actual						Low						High
Operating income			$	13,861					$	87,524					$	103,212
Adjustments:
General and administrative and property management expenses			27,411						29,100						28,300
Casualty loss			1,591						1,500						1,300
Depreciation and amortization			105,257						92,556						91,768
(Gain) loss on sale of real estate and other assets			(41)						(58,980)						(68,980)
Net Operating Income			$	148,079					$	151,700					$	155,600

S-18