Exhibit 99.1

Earnings Release

Centerspace Reports Second Quarter 2023 Financial Results and Increases 2023 Core FFO Guidance

MINNEAPOLIS, MN, July 31, 2023 – Centerspace (NYSE: CSR) announced today its financial and operating results for the three and six months ended June 30, 2023. 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 six months ended June 30, 2023; Same-Store Revenues, Expenses, and Net Operating Income (Loss) (“NOI”)1 over comparable periods; and Same-Store1 Weighted-Average Occupancy for each of the three months ended June 30, 2023, March 31, 2023, and June 30, 2022.

						Three Months Ended June 30,												Six Months Ended June 30,
Per Common Share						2023						2022						2023						2022
Net income (loss) - diluted						$	(0.23)					$	(0.30)					$	2.55					$	(0.97)
FFO - diluted(1)						$	1.11					$	1.02					$	2.01					$	2.03
Core FFO - diluted(1)						$	1.28					$	1.12					$	2.36					$	2.10

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results						Q2 2023 vs. Q2 2022						Q2 2023 vs. Q1 2023						2023 vs. 2022
Revenues						8.5%						2.1%						9.5%
Expenses						3.3%						(4.9)%						6.6%
NOI(1)						12.1%						7.2%						11.6%

Three months ended

Six months ended

Same-Store Results

June 30, 2023

March 31, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Weighted Average Occupancy

95.2%

94.8%

95.0%

95.0%

94.5%

(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” in supplemental and financial operating data within.

Highlights

•Net loss increased 23.3% to $0.23 per diluted share for the second quarter of 2023, compared to Net loss of $0.30 per diluted share for the same period of 2022;

•Core FFO per diluted share increased 14.3% to $1.28 for the three months ended June 30, 2023, compared to $1.12 for the three months ended June 30, 2022;

•Same-store revenues increased by 8.5% for the second quarter of 2023 compared to the second quarter of 2022, driving a 12.1% increase in NOI compared to the same period of the prior year;

•Total expenses decreased by $3.4 million to $55.9 million for the three months ended June 30, 2023, compared to $59.3 million for the three months ended June 30, 2022; and

•Increased the 2023 financial outlook ranges for net income per diluted share, FFO per diluted share, and Core FFO per diluted share. Refer to page S-18 in the supplemental and financial operating date within for additional detail.

Balance Sheet

At the end of the second quarter, Centerspace had $246.7 million of total liquidity on its balance sheet, consisting of $237.0 million available under the lines of credit and cash and cash equivalents of $9.7 million.

1

Revised 2023 Financial Outlook

Centerspace revised its 2023 financial outlook upward. For additional information, see S-18 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2023 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 2023						Updated Outlook for 2023
			Low			High			Low			High
Net income per Share – diluted			$	2.73		$	3.62		$	2.84		$	3.64
Same-Store Revenue			6.00		%	8.00		%	6.50		%	8.00		%
Same-Store Expenses			4.75		%	6.25		%	4.00		%	5.25		%
Same-Store NOI			7.00		%	9.00		%	8.50		%	10.00		%
FFO per Share – diluted			$	4.03		$	4.33		$	4.14		$	4.35
Core FFO per Share – diluted			$	4.27		$	4.56		$	4.55		$	4.75

Additional assumptions:

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

•Value-add expenditures of $31.5 million to $34.5 million

•Investments from potential acquisitions of $95.0 million to $100.0 million

•Proceeds from potential dispositions of $220.0 million to $225.0 million

Earnings Call

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

Live Conference Call

Conference Call Replay

Tuesday, August 1, 2023, at 10:00 AM ET

Replay available until August 15, 2023

USA Toll Free Number

1-833-470-1428

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

474781

Conference Number

413439

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended June 30, 2023 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 June 30, 2023, Centerspace owned interests in 75 apartment communities consisting of 13,497 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

Forward-Looking Statements

Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on the company's current expectations and assumptions, and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “assumes,” “may,” “projects,” “outlook,” “future,” and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. As a result, reliance should not be placed on these forward-looking

2

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, 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, 2022, 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

Josh Klaetsch

Phone: 701-837-7104

Email: IR@centerspacehomes.com

Marketing & Media

Kelly Weber

Phone: 701-837-7104

Email: kweber@centerspacehomes.com

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Supplemental Financial and Operating Data

Table of Contents

June 30, 2023

			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-7
Funds From Operations and Core Funds From Operations			S-7
Adjusted EBITDA			S-10
Debt and Capital Analysis
Debt Analysis			S-11
Capital Analysis			S-12
Portfolio Analysis
Same-Store Comparisons			S-13
Portfolio Summary			S-16
Capital Expenditures			S-17
2023 Financial Outlook			S-18

Common Share Data (NYSE: CSR)

						2nd Quarter						1st Quarter						4th Quarter						3rd Quarter						2nd Quarter
						2023						2023						2022						2022						2022
High closing price						$	64.18					$	71.07					$	70.20					$	89.71					$	103.17
Low closing price						$	53.98					$	51.39					$	58.50					$	65.85					$	76.65
Average closing price						$	58.61					$	61.68					$	64.64					$	79.40					$	87.61
Closing price at end of quarter						$	61.36					$	54.63					$	58.67					$	67.32					$	81.55
Common share distributions – annualized						$	2.92					$	2.92					$	2.92					$	2.92					$	2.92
Closing dividend yield – annualized						4.8		%				5.3		%				5.0		%				4.3		%				3.6		%
Closing common shares outstanding (thousands)						14,949						15,032						15,020						15,376						15,373
Closing limited partnership units outstanding (thousands)						961						967						971						980						995
Closing Series E preferred units outstanding, as converted (thousands)						2,094						2,103						2,119						2,186						2,186
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)						18,004						18,102						18,110						18,542						18,554
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units and Series E preferred units, as converted (thousands)						$	1,104,725					$	988,912					$	1,062,514					$	1,248,247					$	1,513,079

S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)

						Three Months Ended																																	Six Months Ended
						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022									6/30/2023						6/30/2022
REVENUE						$	64,776					$	67,897					$	67,848					$	65,438					$	63,116								$	132,673					$	123,430
EXPENSES
Property operating expenses, excluding real estate taxes						17,872						21,342						21,755						20,290						19,011									39,214						38,025
Real estate taxes						7,174						7,581						7,464						7,039						7,205									14,755						14,064
Property management expense						2,247						2,568						2,358						2,563						2,721									4,815						4,974
Casualty loss						53						252						335						276						382									305						980
Depreciation and amortization						24,371						25,993						25,768						23,720						24,768									50,364						55,769
General and administrative expenses						4,162						7,723						3,276						4,519						5,221									11,885						9,721
TOTAL EXPENSES						$	55,879					$	65,459					$	60,956					$	58,407					$	59,308								$	121,338					$	123,533
Gain (loss) on sale of real estate and other investments						(67)						60,159						14						—						27									60,092						27
Loss on litigation settlement						(2,864)						—						—						—						—									(2,864)						—
Operating income (loss)						5,966						62,597						6,906						7,031						3,835									68,563						(76)
Interest expense						(8,641)						(10,319)						(9,603)						(7,871)						(7,561)									(18,960)						(15,276)
Interest and other income (loss)						295						49						132						70						(17)									344						1,046
Net income (loss)						$	(2,380)					$	52,327					$	(2,565)					$	(770)					$	(3,743)								$	49,947					$	(14,306)
Dividends to Series D preferred unitholders						(160)						(160)						(160)						(160)						(160)									(320)						(320)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units						712						(8,566)						753						439						950									(7,854)						3,107
Net income attributable to noncontrolling interests – consolidated real estate entities						(35)						(30)						(34)						(32)						(38)									(65)						(61)
Net income (loss) attributable to controlling interests						(1,863)						43,571						(2,006)						(523)						(2,991)									41,708						(11,580)
Dividends to preferred shareholders						(1,607)						(1,607)						(1,607)						(1,607)						(1,607)									(3,214)						(3,214)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	(3,470)					$	41,964					$	(3,613)					$	(2,130)					$	(4,598)								$	38,494					$	(14,794)
Per Share Data - Basic
Net income (loss) per common share – basic						$	(0.23)					$	2.79					$	(0.24)					$	(0.14)					$	(0.30)								$	2.57					$	(0.97)
Per Share Data - Diluted
Net income (loss) per common share – diluted						$	(0.23)					$	2.76					$	(0.24)					$	(0.14)					$	(0.30)								$	2.55					$	(0.97)

S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022
ASSETS
Real estate investments
Property owned						$	2,434,138					$	2,420,911					$	2,534,124					$	2,513,470					$	2,401,427
Less accumulated depreciation						(543,264)						(519,167)						(535,401)						(511,000)						(487,834)
Total real estate investments						1,890,874						1,901,744						1,998,723						2,002,470						1,913,593
Cash and cash equivalents						9,745						8,939						10,458						14,957						13,156
Restricted cash						566						48,903						1,433						1,417						1,914
Other assets						18,992						19,298						22,687						19,742						18,950
TOTAL ASSETS						$	1,920,177					$	1,978,884					$	2,033,301					$	2,038,586					$	1,947,613
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	56,713					$	56,639					$	58,812					$	58,322					$	48,077
Revolving lines of credit						18,989						143,469						113,500						171,500						73,000
Notes payable, net of unamortized loan costs						299,428						299,412						399,007						299,388						299,374
Mortgages payable, net of unamortized loan costs						563,079						474,999						495,126						496,530						497,917
TOTAL LIABILITIES						$	938,209					$	974,519					$	1,066,445					$	1,025,740					$	918,368
SERIES D PREFERRED UNITS						$	16,560					$	16,560					$	16,560					$	16,560					$	18,627
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,530						93,530						93,530						93,530
Common Shares of Beneficial Interest						1,169,501						1,176,059						1,177,484						1,209,732						1,207,849
Accumulated distributions in excess of net income						(522,796)						(508,420)						(539,422)						(524,905)						(511,552)
Accumulated other comprehensive loss						(1,758)						(1,917)						(2,055)						(2,158)						(2,362)
Total shareholders’ equity						$	738,477					$	759,252					$	729,537					$	776,199					$	787,465
Noncontrolling interests – Operating Partnership and Series E preferred units						226,294						227,920						220,132						219,466						222,528
Noncontrolling interests – consolidated real estate entities						637						633						627						621						625
TOTAL EQUITY						$	965,408					$	987,805					$	950,296					$	996,286					$	1,010,618
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	1,920,177					$	1,978,884					$	2,033,301					$	2,038,586					$	1,947,613

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 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 the company to evaluate the performance of existing apartment communities and their contribution to net operating 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, raising average rental revenue, renewing leases on existing residents, controlling operating costs, and making prudent capital improvements.

For the comparison of the six months ended June 30, 2023 and 2022, five apartment communities were non-same-store. Sold communities are included in “Dispositions,” while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties.

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 (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.

S-4

			(in thousands, except percentages)
			Three Months Ended																					Sequential												Year-Over-Year
			6/30/2023						3/31/2023						6/30/2022									$ Change						% Change						$ Change						% Change
Operating income			$	5,966					$	62,597					$	3,835								$	(56,631)					(90.5)		%				$	2,131					55.6		%
Adjustments:
Property management expenses			2,247						2,568						2,721									(321)						(12.5)		%				(474)						(17.4)		%
Casualty loss			53						252						382									(199)						(79.0)		%				(329)						(86.1)		%
Depreciation and amortization			24,371						25,993						24,768									(1,622)						(6.2)		%				(397)						(1.6)		%
General and administrative expenses			4,162						7,723						5,221									(3,561)						(46.1)		%				(1,059)						(20.3)		%
(Gain) loss on sale of real estate and other investments(1)			67						(60,159)						(27)									60,226						*						94						(348.1)		%
Loss on litigation settlement			2,864						—						—									2,864						N/A						2,864						N/A
Net operating income			$	39,730					$	38,974					$	36,900								$	756					1.9		%				$	2,830					7.7		%
Revenue
Same-store			$	60,104					$	58,859					$	55,386								$	1,245					2.1		%				$	4,718					8.5		%
Non-same-store			3,629						3,639						2,050									(10)						(0.3)		%				1,579						77.0		%
Other properties			983						1,002						915									(19)						(1.9)		%				68						7.4		%
Dispositions			60						4,397						4,765									(4,337)						(98.6)		%				(4,705)						(98.7)		%
Total			64,776						67,897						63,116									(3,121)						(4.6)		%				1,660						2.6		%
Property operating expenses, including real estate taxes
Same-store			23,382						24,593						22,629									(1,211)						(4.9)		%				753						3.3		%
Non-same-store			1,348						1,310						769									38						2.9		%				579						75.3		%
Other properties			254						151						230									103						68.2		%				24						10.4		%
Dispositions			62						2,869						2,588									(2,807)						(97.8)		%				(2,526)						(97.6)		%
Total			25,046						28,923						26,216									(3,877)						(13.4)		%				(1,170)						(4.5)		%
Net operating income
Same-store			36,722						34,266						32,757									2,456						7.2		%				3,965						12.1		%
Non-same-store			2,281						2,329						1,281									(48)						(2.1)		%				1,000						78.1		%
Other properties			729						851						685									(122)						(14.3)		%				44						6.4		%
Dispositions			(2)						1,528						2,177									(1,530)						(100.1)		%				(2,179)						(100.1)		%
Total			$	39,730					$	38,974					$	36,900								$	756					1.9		%				$	2,830					7.7		%

(1)Current quarter activity relates to dispositions that occurred in a prior period.

* Not a meaningful percentage

S-5

			Six Months Ended June 30,
			2023						2022						$ Change						% Change
Operating income (loss)			$	68,563					$	(76)					$	68,639					*
Adjustments:
Property management expenses			4,815						4,974						(159)						(3.2)		%
Casualty loss			305						980						(675)						(68.9)		%
Depreciation and amortization			50,364						55,769						(5,405)						(9.7)		%
General and administrative expenses			11,885						9,721						2,164						22.3		%
Gain on sale of real estate and other investments			(60,092)						(27)						(60,065)						*
Loss on litigation settlement			2,864						—						2,864						N/A
Net operating income			$	78,704					$	71,341					$	7,363					10.3		%
Revenue
Same-store			$	118,964					$	108,635					$	10,329					9.5		%
Non-same-store			7,266						3,717						3,549						95.5		%
Other properties			1,985						1,831						154						8.4		%
Dispositions			4,458						9,247						(4,789)						(51.8)		%
Total			132,673						123,430						9,243						7.5		%
Property operating expenses, including real estate taxes
Same-store			47,976						44,998						2,978						6.6		%
Non-same-store			2,657						1,480						1,177						79.5		%
Other properties			404						560						(156)						(27.9)		%
Dispositions			2,932						5,051						(2,119)						(42.0)		%
Total			53,969						52,089						1,880						3.6		%
Net operating income
Same-store			70,988						63,637						7,351						11.6		%
Non-same-store			4,609						2,237						2,372						106.0		%
Other properties			1,581						1,271						310						24.4		%
Dispositions			1,526						4,196						(2,670)						(63.6)		%
Total			$	78,704					$	71,341					$	7,363					10.3		%

* Not a meaningful percentage

S-6

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

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

			(in thousands, except percentages)
			Three Months Ended June 30,																											Six Months Ended June 30,
			2023						2022						$ Change						% Change									2023						2022						$ Change						% Change
Controllable expenses
On-site compensation(1)			$	6,501					$	5,922					$	579					9.8		%							$	12,518					$	11,471					$	1,047					9.1		%
Repairs and maintenance			3,281						3,533						(252)						(7.1)		%							6,751						6,478						273						4.2		%
Utilities			3,431						3,635						(204)						(5.6)		%							8,409						8,419						(10)						(0.1)		%
Administrative and marketing			1,330						1,257						73						5.8		%							2,583						2,480						103						4.2		%
Total			$	14,543					$	14,347					$	196					1.4		%							$	30,261					$	28,848					$	1,413					4.9		%
Non-controllable expenses
Real estate taxes			$	6,591					$	6,319					$	272					4.3		%							$	13,356					$	12,293					$	1,063					8.6		%
Insurance			2,248						1,963						285						14.5		%							4,359						3,857						502						13.0		%
Total			$	8,839					$	8,282					$	557					6.7		%							$	17,715					$	16,150					$	1,565					9.7		%
Property operating expenses, including real estate taxes - non-same-store			$	1,348					$	769					$	579					75.3		%							$	2,657					$	1,480					$	1,177					79.5		%
Property operating expenses, including real estate taxes - other properties			254						230						24						10.4		%							404						560						(156)						(27.9)		%
Property operating expenses, including real estate taxes - dispositions			62						2,588						(2,526)						(97.6)		%							2,932						5,051						(2,119)						(42.0)		%
Total property operating expenses, including real estate taxes			$	25,046					$	26,216					$	(1,170)					(4.5)		%							$	53,969					$	52,089					$	1,880					3.6		%

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

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

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

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 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.

S-7

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 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-8

						(in thousands, except per share amounts)
						Three Months Ended																																	Six Months Ended
						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022									6/30/2023						6/30/2022
Funds From Operations
Net income (loss) available to common shareholders						$	(3,470)					$	41,964					$	(3,613)					$	(2,130)					$	(4,598)								$	38,494					$	(14,794)
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units						(712)						8,566						(753)						(439)						(950)									7,854						(3,107)
Depreciation and amortization						24,371						25,993						25,768						23,720						24,768									50,364						55,769
Less depreciation – non real estate						(89)						(91)						(91)						(94)						(101)									(180)						(202)
Less depreciation – partially owned entities						(19)						(19)						(19)						(18)						(7)									(38)						(28)
(Gain) loss on sale of real estate and other assets						71						(60,159)						(14)						—						(27)									(60,088)						(27)
FFO applicable to common shares and Units						$	20,152					$	16,254					$	21,278					$	21,039					$	19,085								$	36,406					$	37,611
Adjustments to Core FFO:
Non-cash casualty (gain) loss						(52)						13						20						46						163									(39)						188
Loss on extinguishment of debt						—						—						—						—						5									—						5
Technology implementation costs(1)						—						—						89						234						447									—						550
Interest rate swap termination, amortization, and mark-to-market						159						138						104						204						205									297						(408)
Amortization of assumed debt						(116)						(116)						(117)						(116)						(116)									(232)						(231)
Pursuit costs						—						5						137						38						1,127									5						1,127
Severance and transition related costs						(19)						3,199						—						—						—									3,180						—
Loss on litigation settlement and one-time trial costs(2)						3,201						—						—						—						—									3,201						—
Other miscellaneous items(3)						(22)						49						(28)						17						100									27						96
Core FFO applicable to common shares and Units						$	23,303					$	19,542					$	21,483					$	21,462					$	21,016								$	42,845					$	38,938
FFO applicable to common shares and Units						$	20,152					$	16,254					$	21,278					$	21,039					$	19,085								$	36,406					$	37,611
Dividends to preferred unitholders						160						160						160						160						160									320						320
FFO applicable to common shares and Units - diluted						$	20,312					$	16,414					$	21,438					$	21,199					$	19,245								$	36,726					$	37,931
Core FFO applicable to common shares and Units						$	23,303					$	19,542					$	21,483					$	21,462					$	21,016								$	42,845					$	38,938
Dividends to preferred unitholders						160						160						160						160						160									320						320
Core FFO applicable to common shares and Units - diluted						$	23,463					$	19,702					$	21,643					$	21,622					$	21,176								$	43,165					$	39,258
Per Share Data
Net income (loss) per share and Unit - diluted						$	(0.23)					$	2.76					$	(0.24)					$	(0.14)					$	(0.30)								$	2.55					$	(0.97)
FFO per share and Unit - diluted						$	1.11					$	0.89					$	1.16					$	1.13					$	1.02								$	2.01					$	2.03
Core FFO per share and Unit - diluted						$	1.28					$	1.07					$	1.17					$	1.15					$	1.12								$	2.36					$	2.10
Weighted average shares - basic						14,949						15,025						15,027						15,373						15,369									14,987						15,233
Effect of redeemable operating partnership Units						965						968						974						984						995									967						978
Effect of Series D preferred units						228						228						228						228						228									228						228
Effect of Series E preferred units						2,103						2,118						2,185						2,186						2,186									2,111						2,186
Effect of dilutive restricted stock units and stock options						24						20						9						30						48									20						57
Weighted average shares and Units - diluted						18,269						18,359						18,423						18,801						18,826									18,313						18,682

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

(2)Consists of a $2.9 million loss on litigation settlement for a trial judgment entered against the Company and $340,000 in one-time trial costs related to the litigation matter.

(3)Consists of (gain) loss on investments.

S-9

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, financing costs, 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																																	Six Months Ended
						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022									6/30/2023						6/30/2022
Adjusted EBITDA
Net income (loss) available to controlling interests						$	(1,863)					$	43,571					$	(2,006)					$	(523)					$	(2,991)								$	41,708					$	(11,580)
Adjustments:
Dividends to Series D preferred unitholders						160						160						160						160						160									320						320
Noncontrolling interests – Operating Partnership and Series E preferred units						(712)						8,566						(753)						(439)						(950)									7,854						(3,107)
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units						$	(2,415)					$	52,297					$	(2,599)					$	(802)					$	(3,781)								$	49,882					$	(14,367)
Adjustments:
Interest expense						8,626						10,305						9,589						7,856						7,547									18,931						15,247
Loss on extinguishment of debt						—						—						—						—						5									—						5
Depreciation and amortization related to real estate investments						24,351						25,971						25,747						23,699						24,759									50,322						55,739
Non-cash casualty (gain) loss						(52)						13						20						46						163									(39)						188
Interest income						(248)						(92)						(92)						(82)						(74)									(340)						(538)
(Gain) loss on sale of real estate and other investments						71						(60,159)						(14)						—						(27)									(60,088)						(27)
Technology implementation costs(1)						—						—						89						234						447									—						550
Interest rate swap termination and mark-to-market						—						—						—						—						18									—						(564)
Pursuit costs						—						5						137						38						1,127									5						1,127
Severance and transition related costs						(19)						3,199						—						—						—									3,180						—
Loss on litigation settlement and one-time trial costs(2)						3,201						—						—						—						—									3,201						—
Other miscellaneous items(3)						(22)						49						(28)						17						100									27						96
Adjusted EBITDA						$	33,493					$	31,588					$	32,849					$	31,006					$	30,284								$	65,081					$	57,456

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

(2)Consists of a $2.9 million loss on litigation settlement for a trial judgment entered against the Company and $340,000 in one-time trial costs related to the litigation matter.

(3)Consists of (gain) loss on investments.

S-10

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 (remainder)						$	22,385					$	—					$	—					$	22,385					2.5		%				4.12		%
2024						—						—						989						989						0.1		%				12.68		%
2025						30,851						—						18,000						48,851						5.5		%				4.56		%
2026						51,270						—						—						51,270						5.8		%				3.73		%
2027						50,309						—						—						50,309						5.7		%				3.47		%
Thereafter						411,714						300,000						—						711,714						80.4		%				3.42		%
Total debt						$	566,529					$	300,000					$	18,989					$	885,518					100.0		%				3.54		%

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

						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022
Debt Balances Outstanding
Secured fixed rate - mortgages payable - other						$	367,679					$	279,340					$	299,427					$	300,956					$	302,360
Secured fixed rate - Fannie Mae credit facility						198,850						198,850						198,850						198,850						198,850
Unsecured variable rate lines of credit						18,989						143,469						113,500						171,500						73,000
Unsecured term loans						—						—						100,000						—						—
Unsecured senior notes						300,000						300,000						300,000						300,000						300,000
Debt total						$	885,518					$	921,659					$	1,011,777					$	971,306					$	874,210
Mortgages payable - other rate						4.14		%				3.85		%				3.85		%				3.85		%				3.85		%
Fannie Mae Credit Facility rate						2.78		%				2.78		%				2.78		%				2.78		%				2.78		%
Lines of credit rate						7.35		%				6.39		%				5.23		%				4.13		%				3.04		%
Unsecured term loan rate						—						—						5.57		%				—						—
Unsecured senior notes rate						3.12		%				3.12		%				3.12		%				3.12		%				3.12		%
Total debt						3.54		%				3.71		%				3.62		%				3.45		%				3.27		%

S-11

CENTERSPACE 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						Three Months Ended
						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022
Equity Capitalization
Common shares outstanding						14,949						15,032						15,020						15,376						15,373
Operating partnership units outstanding						961						967						971						980						995
Series E preferred units (as converted)						2,094						2,103						2,119						2,186						2,186
Total common shares, Units, and Series E preferred units, as converted, outstanding						18,004						18,102						18,110						18,542						18,554
Market price per common share (closing price at end of period)						$	61.36					$	54.63					$	58.67					$	67.32					$	81.55
Equity capitalization-common shares and units						$	1,104,725					$	988,912					$	1,062,514					$	1,248,247					$	1,513,079
Recorded book value of preferred shares						$	93,530					$	93,530					$	93,530					$	93,530					$	93,530
Total equity capitalization						$	1,198,255					$	1,082,442					$	1,156,044					$	1,341,777					$	1,606,609
Series D Preferred Units						$	16,560					$	16,560					$	16,560					$	16,560					$	18,627
Debt Capitalization
Total debt						$	885,518					$	921,659					$	1,011,777					$	971,306					$	874,210
Total capitalization						$	2,100,333					$	2,020,661					$	2,184,381					$	2,329,643					$	2,499,446
Total debt to total capitalization(1)						42.2		%				45.6		%				46.3		%				41.7		%				35.0		%

(1)Total debt to total market capitalization, a non-GAAP financial measure, is total debt not adjusted for unamortized deferred financing costs 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. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP.

						Three Months Ended																																	Six Months Ended
						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022									6/30/2023						6/30/2022
Debt service coverage ratio(1)						3.33		x				2.70		x				2.99		x				3.35		x				3.39		x							2.99		x				3.16		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.83		x				2.35		x				2.58		x				2.81		x				2.83		x							2.57		x				2.64		x
Net debt/Adjusted EBITDA(2)						6.54		x				7.22		x				7.62		x				7.71		x				7.11		x							6.73		x				7.49		x
Net debt and preferred equity/Adjusted EBITDA(2)						7.36		x				8.09		x				8.46		x				8.60		x				8.03		x							7.57		x				8.47		x
Distribution Data
Common shares and Units outstanding at record date						15,910						15,999						15,991						16,356						16,368									15,910						16,368
Total common distribution declared						$	11,608					$	11,668					$	11,614					$	11,939					$	11,948								$	23,276					$	23,892
Common distribution per share and Unit						$	0.73					$	0.73					$	0.73					$	0.73					$	0.73								$	1.46					$	1.46
Payout ratio (Core FFO per diluted share and unit basis)(3)						57.0		%				68.2		%				62.4		%				63.5		%				65.2		%							61.9		%				69.5		%

(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. 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.

						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022
Total debt						$	885,518					$	921,659					$	1,011,777					$	971,306					$	874,210
Less: cash and cash equivalents						9,745						8,939						10,458						14,957						13,156
Net debt						$	875,773					$	912,720					$	1,001,319					$	956,349					$	861,054

(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-12

CENTERSPACE

SAME-STORE SECOND QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q2 2023						Q2 2022						% Change						Q2 2023						Q2 2022						% Change						Q2 2023						Q2 2022						% Change
Denver, CO						1,889						$	11,968					$	10,955					9.2		%				$	3,944					$	3,568					10.5		%				$	8,024					$	7,387					8.6		%
Minneapolis, MN						4,519						21,069						19,685						7.0		%				9,088						8,880						2.3		%				11,981						10,805						10.9		%
North Dakota						2,422						9,241						8,482						8.9		%				3,630						3,523						3.0		%				5,611						4,959						13.1		%
Omaha, NE						872						3,443						3,134						9.9		%				1,381						1,325						4.2		%				2,062						1,809						14.0		%
Rochester, MN						1,129						5,760						5,235						10.0		%				2,137						2,138						—		%				3,623						3,097						17.0		%
St. Cloud, MN						832						3,459						3,177						8.9		%				1,405						1,375						2.2		%				2,054						1,802						14.0		%
Other Mountain West(1)						1,222						5,164						4,718						9.5		%				1,797						1,820						(1.3)		%				3,367						2,898						16.2		%
Same-Store Total						12,885						$	60,104					$	55,386					8.5		%				$	23,382					$	22,629					3.3		%				$	36,722					$	32,757					12.1		%

						% of NOI Contribution						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												Q2 2023						Q2 2022						Growth						Q2 2023						Q2 2022						% Change						Q2 2023						Q2 2022						% Change
Denver, CO						21.8		%				96.1		%				94.2		%				1.9		%				$	1,928					$	1,820					5.9		%				$	2,198					$	2,053					7.1		%
Minneapolis, MN						32.6		%				94.9		%				95.0		%				(0.1)		%				1,463						1,394						4.9		%				1,637						1,528						7.1		%
North Dakota						15.3		%				96.1		%				95.6		%				0.5		%				1,201						1,118						7.4		%				1,323						1,221						8.4		%
Omaha, NE						5.6		%				94.7		%				97.2		%				(2.5)		%				1,262						1,126						12.1		%				1,389						1,232						12.7		%
Rochester, MN						9.9		%				95.0		%				95.2		%				(0.2)		%				1,688						1,536						9.9		%				1,790						1,624						10.2		%
St. Cloud, MN						5.6		%				91.7		%				90.8		%				0.9		%				1,343						1,229						9.3		%				1,512						1,401						7.9		%
Other Mountain West(1)						9.2		%				95.3		%				96.5		%				(1.2)		%				1,327						1,207						9.9		%				1,479						1,333						11.0		%
Same-Store Total						100.0		%				95.2		%				95.0		%				0.2		%				$	1,467					$	1,371					7.0		%				$	1,634					$	1,509					8.3		%

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

(2)Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental 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. Centerspace 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.

(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-13

CENTERSPACE

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q2 2023						Q1 2023						% Change						Q2 2023						Q1 2023						% Change						Q2 2023						Q1 2023						% Change
Denver, CO						1,889						$	11,968					$	11,740					1.9		%				$	3,944					$	4,035					(2.3)		%				$	8,024					$	7,705					4.1		%
Minneapolis, MN						4,519						21,069						20,805						1.3		%				9,088						9,588						(5.2)		%				11,981						11,217						6.8		%
North Dakota						2,422						9,241						8,879						4.1		%				3,630						3,814						(4.8)		%				5,611						5,065						10.8		%
Omaha, NE						872						3,443						3,356						2.6		%				1,381						1,433						(3.6)		%				2,062						1,923						7.2		%
Rochester, MN						1,129						5,760						5,648						2.0		%				2,137						2,228						(4.1)		%				3,623						3,420						5.9		%
St. Cloud, MN						832						3,459						3,351						3.2		%				1,405						1,691						(16.9)		%				2,054						1,660						23.7		%
Other Mountain West(1)						1,222						5,164						5,080						1.7		%				1,797						1,804						(0.4)		%				3,367						3,276						2.8		%
Same-Store Total						12,885						$	60,104					$	58,859					2.1		%				$	23,382					$	24,593					(4.9)		%				$	36,722					$	34,266					7.2		%

						% of NOI Contribution						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												Q2 2023						Q1 2023						Growth						Q2 2023						Q1 2023						% Change						Q2 2023						Q1 2023						% Change
Denver, CO						21.8		%				96.1		%				95.8		%				0.3		%				$	1,928					$	1,912					0.8		%				$	2,198					$	2,162					1.7		%
Minneapolis, MN						32.6		%				94.9		%				94.6		%				0.3		%				1,463						1,454						0.6		%				1,637						1,622						0.9		%
North Dakota						15.3		%				96.1		%				95.9		%				0.2		%				1,201						1,175						2.2		%				1,323						1,274						3.8		%
Omaha, NE						5.6		%				94.7		%				94.0		%				0.7		%				1,262						1,234						2.3		%				1,389						1,364						1.8		%
Rochester, MN						9.9		%				95.0		%				94.8		%				0.2		%				1,688						1,664						1.4		%				1,790						1,759						1.8		%
St. Cloud, MN						5.6		%				91.7		%				90.1		%				1.6		%				1,343						1,315						2.1		%				1,512						1,490						1.5		%
Other Mountain West(1)						9.2		%				95.3		%				95.1		%				0.2		%				1,327						1,319						0.6		%				1,479						1,457						1.5		%
Same-Store Total						100.0		%				95.2		%				94.8		%				0.4		%				$	1,467					$	1,450					1.2		%				$	1,634					$	1,606					1.7		%

(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 rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental 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. Centerspace 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.

(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-14

CENTERSPACE

SAME-STORE YEAR-TO-DATE COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												2023						2022						% Change						2023						2022						% Change						2023						2022						% Change
Denver, CO						1,889						$	23,708					$	21,580					9.9		%				$	7,979					$	6,743					18.3		%				$	15,729					$	14,837					6.0		%
Minneapolis, MN						4,519						41,874						38,689						8.2		%				18,677						17,880						4.5		%				23,197						20,809						11.5		%
North Dakota						2,422						18,119						16,638						8.9		%				7,444						7,176						3.7		%				10,675						9,462						12.8		%
Omaha, NE						872						6,799						6,192						9.8		%				2,815						2,652						6.1		%				3,984						3,540						12.5		%
Rochester, MN						1,129						11,409						10,238						11.4		%				4,365						4,235						3.1		%				7,044						6,003						17.3		%
St. Cloud, MN						832						6,810						6,226						9.4		%				3,095						2,874						7.7		%				3,715						3,352						10.8		%
Other Mountain West(1)						1,222						10,245						9,072						12.9		%				3,601						3,438						4.7		%				6,644						5,634						17.9		%
Same-Store Total						12,885						$	118,964					$	108,635					9.5		%				$	47,976					$	44,998					6.6		%				$	70,988					$	63,637					11.6		%

						% of NOI Contribution						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												2023						2022						Growth						2023						2022						% Change						2023						2022						% Change
Denver, CO						22.2		%				95.9		%				94.1		%				1.8		%				$	1,920					$	1,806					6.3		%				$	2,180					$	2,023					7.8		%
Minneapolis, MN						32.7		%				94.8		%				94.6		%				0.2		%				1,459						1,384						5.4		%				1,630						1,509						8.0		%
North Dakota						15.0		%				96.0		%				95.2		%				0.8		%				1,188						1,111						6.9		%				1,298						1,203						7.9		%
Omaha, NE						5.6		%				94.4		%				96.4		%				(2.0)		%				1,248						1,111						12.3		%				1,377						1,228						12.1		%
Rochester, MN						9.9		%				94.9		%				94.1		%				0.8		%				1,676						1,522						10.1		%				1,774						1,607						10.4		%
St. Cloud, MN						5.2		%				90.9		%				91.6		%				(0.7)		%				1,329						1,214						9.5		%				1,501						1,362						10.2		%
Other Mountain West(1)						9.4		%				95.2		%				95.3		%				(0.1)		%				1,323						1,180						12.1		%				1,468						1,298						13.1		%
Same-Store Total						100.0		%				95.0		%				94.5		%				0.5		%				$	1,459					$	1,358					7.4		%				$	1,620					$	1,487					8.9		%

(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 rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental 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. Centerspace 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.

(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-15

CENTERSPACE

PORTFOLIO SUMMARY(1)

						Three Months Ended
						6/30/2023						3/31/2023						12/31/2022						9/30/2022						6/30/2022
Number of Apartment Homes at Period End
Same-Store						12,885						12,885						11,330						11,330						11,319
Non-Same-Store						612						612						3,735						3,734						3,519
All Communities						13,497						13,497						15,065						15,064						14,838
Average Monthly Rental Rate(2)
Same-Store						$	1,467					$	1,450					$	1,438					$	1,411					$	1,366
Non-Same-Store						1,894						1,890						1,352						1,286						1,245
All Communities						$	1,487					$	1,470					$	1,417					$	1,381					$	1,337
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,634					$	1,606					$	1,592					$	1,565					$	1,518
Non-Same-Store						2,072						2,066						1,471						1,417						1,329
All Communities						$	1,654					$	1,627					$	1,562					$	1,530					$	1,473
Weighted Average Occupancy(4)
Same-Store						95.2		%				94.8		%				94.9		%				94.5		%				94.8		%
Non-Same-Store						95.4		%				95.9		%				94.7		%				94.6		%				95.0		%
All Communities						95.2		%				94.9		%				94.9		%				94.5		%				94.8		%
Operating Expenses as a % of Scheduled Rent
Same-Store						41.2		%				43.9		%				43.1		%				42.5		%				40.3		%
Non-Same-Store						38.8		%				37.8		%				51.7		%				48.7		%				47.1		%
All Communities						41.1		%				43.5		%				45.1		%				43.9		%				41.8		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	258					$	115					$	364					$	465					$	196

(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-16

CENTERSPACE

CAPITAL EXPENDITURES

($ in thousands, except per home amounts)

						Three Months Ended															Six Months Ended
Same Store Capital Expenditures						6/30/2023						6/30/2022									6/30/2023						6/30/2022
Total Same-Store Apartment Homes						12,885						12,885									12,885						12,885
Building - Exterior						$	231					$	62								$	231					$	595
Building - Interior						64						225									64						230
Mechanical, Electrical, & Plumbing						775						308									1,059						533
Furniture & Equipment						153						113									178						193
Landscaping & Grounds						3						138									3						221
Turnover replacements						730						1,346									1,509						2,080
Work in progress						1,370						305									1,767						(205)
Capital Expenditures - Same-Store						$	3,326					$	2,497								$	4,811					$	3,647
Capital Expenditures per Apartment Home - Same-Store						$	258					$	194								$	373					$	283
Value Add						$	5,952					$	6,327								$	8,489					$	10,011
Total Capital Spend - Same-Store						$	9,278					$	8,824								$	13,300					$	13,658
Total Capital Spend per Apartment Home - Same-Store						$	720					$	685								$	1,032					$	1,060
						Three Months Ended															Six Months Ended
Capital Expenditures - All Properties						6/30/2023						6/30/2022									6/30/2023						6/30/2022
All Properties - Weighted Average Apartment Homes						13,497						14,838									14,019						14,838
Capital Expenditures						$	3,404					$	2,892								$	5,134					$	4,217
Capital Expenditures per Apartment Home						$	252					$	195								$	366					$	284
Value Add						5,976						6,367									8,606						10,051
Acquisition Capital						5,290						1,364									9,962						2,564
Total Capital Spend						14,670						10,623									23,702						16,832
Total Capital Spend per Apartment Home						$	1,087					$	716								$	1,691					$	1,134
						Three Months Ended															Six Months Ended
Value Add Capital Expenditures						6/30/2023						6/30/2022									6/30/2023						6/30/2022
Interior - Units
Same-Store						$	4,499					$	4,318								$	5,718					$	6,955
Non-Same-Store						—						—									—						—
Total Interior Units						$	4,499					$	4,318								$	5,718					$	6,955
Common Areas and Exteriors
Same-Store						$	1,330					$	1,917								$	2,555					$	4,850
Non-Same-Store						24						53									117						53
Total Common Areas and Exteriors						$	1,354					$	1,970								$	2,672					$	4,903
Work in Progress
Same-Store						$	123					$	92								$	216					$	(1,794)
Non-Same-Store						—						(13)									$	—					$	(13)
Total Work in Progress						$	123					$	79								$	216					$	(1,807)
Total Value-Add Capital Expenditures
Same-Store						$	5,952					$	6,327								$	8,489					$	10,011
Non-Same-Store						24						40									117						40
Total Portfolio Value-Add						$	5,976					$	6,367								$	8,606					$	10,051

S-17

CENTERSPACE

2023 Financial Outlook

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

Centerspace revised its outlook for 2023 in the table below.

			Six Months Ended						2023 Previous Outlook Range												2023 Revised Outlook Range
			June 30, 2023						Low						High						Low						High
			YTD Actual						Amount						Amount						Amount						Amount
Same-store growth
Revenue			$	118,964					6.00		%				8.00		%				6.50		%				8.00		%
Controllable expenses			30,261						3.00		%				4.50		%				2.00		%				3.50		%
Non-controllable expenses			17,715						8.00		%				9.50		%				7.50		%				9.00		%
Total Expenses			$	47,976					4.75		%				6.25		%				4.00		%				5.25		%
Same-store NOI(1)			$	70,988					7.00		%				9.00		%				8.50		%				10.00		%
Components of NOI(1)
Same-store			$	70,988					$	138,300					$	141,300					$	137,000					$	139,000
Non-same-store			4,609						8,900						9,100						9,000						9,200
Other properties			1,581						2,000						2,400						1,700						1,800
Dispositions			1,526						$	2,500					$	2,800					$	7,200					$	7,400
Total NOI(1)			$	78,704					$	151,700					$	155,600					$	154,900					$	157,400
Accretion (dilution) from investments and capital market activity, excluding impact from change in share count			$	—					—						—						(400)						(200)
Other operating income and expenses
General and administrative and property management			(16,700)						(32,300)						(31,500)						(31,100)						(30,700)
Casualty loss			(305)						(1,500)						(1,300)						(1,300)						(1,100)
Loss on litigation settlement			(2,864)						—						—						(3,200)						(3,200)
Non-real estate depreciation and amortization			(180)						(375)						(325)						(375)						(325)
Non-controlling interest			(65)						(110)						(100)						(110)						(100)
Total other operating income and expenses			$	(20,114)					$	(34,285)					$	(33,225)					$	(36,085)					$	(35,425)
Interest expense			$	(18,960)					(37,400)						(36,900)						(37,000)						(36,600)
Interest and other income			310						$	160					$	350					$	600					$	800
Dividends to preferred shareholders			(3,214)						(6,400)						(6,400)						(6,400)						(6,400)
FFO applicable to common shares and Units - diluted(1)			$	36,726					$	73,775					$	79,425					$	75,615					$	79,575
Non-core income and expenses
Non-cash casualty (gain) loss			$	(39)					$	500					$	300					$	400					$	200
Interest rate swap amortization			297						900						1,000						900						1,000
Amortization of assumed debt			(232)						—						—						—						—
Pursuit costs			5						70						60						70						60
Severance and transition related costs			3,180						3,200						3,200						3,180						3,180
Loss on litigation settlement and one-time trial costs			3,201						—						—						3,200						3,200
Other miscellaneous items			27						(310)						(350)						(310)						(350)
Total non-core income and expenses			$	6,439					$	4,360					$	4,210					$	7,440					$	7,290
Core FFO applicable to common shares and Units - diluted(1)			$	43,165					$	78,135					$	83,635					$	83,055					$	86,865
EPS - Diluted			$	2.55					$	2.73					$	3.62					$	2.84					$	3.64
FFO per diluted share(1)			$	2.01					$	4.03					$	4.33					$	4.14					$	4.35
Core FFO per diluted share(1)			$	2.36					$	4.27					$	4.56					$	4.55					$	4.75
Weighted average shares outstanding - diluted			18,313						18,300						18,325						18,250						18,275
Additional Assumptions
Same-store capital expenditures (per home)			$	373					$	1,100					1,150						$	1,100					1,150
Value-add expenditures			$	8,606					$	24,500					$	27,500					$	31,500					$	34,500
Investments			$	—					$	—					$	—					$	95,000					$	100,000
Dispositions			$	144,255					$	155,000					$	165,000					$	220,000					$	225,000

(1)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-18

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
			Six Months Ended						12 Months Ended												12 Months Ended
			June 30, 2023						December 31, 2023												December 31, 2023
			Actual						Low						High						Low						High
Net income available to common shareholders			$	38,494					$	57,839					$	74,307					$	59,679					$	74,457
Noncontrolling interests - Operating Partnership and Series E preferred units			7,854						(7,795)						(7,885)						(7,795)						(7,885)
Depreciation and amortization			50,364						92,556						91,768						92,556						91,768
Less depreciation - non real estate			(180)						(375)						(325)						(375)						(325)
Less depreciation - partially owned entities			(38)						(110)						(100)						(110)						(100)
Gain on sale of real estate			(60,088)						(68,980)						(78,980)						(68,980)						(78,980)
Dividends to preferred unitholders			320						640						640						640						640
FFO applicable to common shares and Units - diluted			$	36,726					$	73,775					$	79,425					$	75,615					$	79,575
Adjustments to Core FFO:
Non-cash casualty (gain) loss			(39)						500						300						400						200
Interest rate swap termination, amortization, and mark-to-market			297						900						1,000						900						1,000
Amortization of assumed debt			(232)						—						—						—						—
Pursuit costs			5						70						60						70						60
Severance and transition related costs			3,180						3,200						3,200						3,180						3,180
Loss on litigation settlement and one-time trial costs			3,201						—						—						3,200						3,200
Other miscellaneous items			27						(310)						(350)						(310)						(350)
Core FFO applicable to common shares and Units - diluted			$	43,165					$	78,135					$	83,635					$	83,055					$	86,865
Net income per share - diluted			$	2.55					$	2.73					$	3.62					$	2.84					$	3.64
FFO per share - diluted			$	2.01					$	4.03					$	4.33					$	4.14					$	4.35
Core FFO per share - diluted			$	2.36					$	4.27					$	4.56					$	4.55					$	4.75

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 sales of real estate and other investments, depreciation, 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.

									Previous Outlook												Revised Outlook
			Six Months Ended						12 Months Ended												12 Months Ended
			June 30, 2023						December 31, 2023												December 31, 2023
			Actual						Low						High						Low						High
Operating income			$	68,563					$	94,324					$	110,012					$	96,060					$	109,948
Adjustments:
General and administrative and property management expenses			16,700						32,300						31,500						31,100						30,700
Casualty loss			305						1,500						1,300						1,300						1,100
Depreciation and amortization			50,364						92,556						91,768						92,556						91,768
Gain on sale of real estate and other investments			(60,092)						(68,980)						(78,980)						(68,980)						(78,980)
Loss on litigation settlement			2,864						—						—						2,864						2,864
Net operating income			$	78,704					$	151,700					$	155,600					$	154,900					$	157,400

S-19