Exhibit 99.1

Earnings Release

Centerspace Reports Third Quarter 2023 Financial Results and Raises Mid-Point for 2023 Core FFO Guidance

MINNEAPOLIS, MN, October 30, 2023 – Centerspace (NYSE: CSR) announced today its financial and operating results for the three and nine months ended September 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 nine months ended September 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 September 30, 2023, June 30, 2023, and September 30, 2022.

						Three Months Ended September 30,												Nine Months Ended September 30,
Per Common Share						2023						2022						2023						2022
Net income (loss) - diluted						$	0.41					$	(0.14)					$	2.96					$	(1.11)
FFO - diluted(1)						$	1.15					$	1.13					$	3.15					$	3.16
Core FFO - diluted(1)						$	1.20					$	1.15					$	3.56					$	3.25

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results(2)						Q3 2023 vs. Q3 2022						Q3 2023 vs. Q2 2023						2023 vs. 2022
Revenues						5.7%						0.6%						8.3%
Expenses						6.1%						7.4%						6.6%
NOI(1)						5.4%						(3.7)%						9.5%

Three months ended

Nine months ended

Same-Store Results(2)

September 30, 2023

June 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

Weighted Average Occupancy

94.7%

95.2%

94.5%

94.9%

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.

(2)Same-store results are updated for disposition activity. Refer to “Non-GAAP Financial Measures and Reconciliations” in supplemental and financial operating data within.

Highlights

•During the three months ended September 30, 2023, Centerspace successfully executed the sale of four non-core apartment communities and associated commercial space in Minot, North Dakota for an aggregate sales price of $82.5 million, resulting in a gain on sale of $11.3 million;

•Net income increased to $0.41 per diluted share for the third quarter of 2023, compared to Net loss of $0.14 per diluted share for the same period of 2022;

•Core FFO per diluted share increased 4.3% to $1.20 for the three months ended September 30, 2023, compared to $1.15 for the three months ended September 30, 2022;

•Same-store revenues increased by 5.7% for the third quarter of 2023 compared to the third quarter of 2022, driving a 5.4% increase in NOI compared to the same period of the prior year; and

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

1

Balance Sheet

At the end of the third quarter, Centerspace had $285.7 million of total liquidity on its balance sheet, consisting of $256.0 million available under the lines of credit and cash and cash equivalents of $29.7 million.

As of September 30, 2023, the Company had no outstanding variable rate debt and only $30.6 million in debt maturing through 2025.

Subsequent Events

On October 11, 2023, the Company acquired Lake Vista Apartment Homes in Loveland, Colorado, for an aggregate purchase price of $94.5 million. The acquisition was financed through the assumption of $52.7 million in mortgage debt and cash.

Revised 2023 Financial Outlook

Centerspace revised its 2023 financial outlook. For additional information, see S-18 of the Supplemental Financial and Operating Data for the quarter ended September 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			$	2.84		$	3.64		$	2.90		$	3.56
Same-Store Revenue			6.50		%	8.00		%	7.00		%	7.50		%
Same-Store Expenses			4.00		%	5.25		%	4.00		%	4.50		%
Same-Store NOI			8.50		%	10.00		%	9.00		%	9.50		%
FFO per Share – diluted			$	4.14		$	4.35		$	4.20		$	4.27
Core FFO per Share – diluted			$	4.55		$	4.75		$	4.63		$	4.71

Additional assumptions:

•Same-store capital expenditures of $1,000 per home to $1,050 per home

•Value-add expenditures of $30.0 million to $31.5 million

•Acquisitions of $94.5 million

•Proceeds from dispositions of $226.8 million

Earnings Call

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

Live Conference Call

Conference Call Replay

Tuesday, October 31, 2023, at 10:00 AM ET

Replay available until November 14, 2023

USA Toll Free Number

1-833-470-1428

USA Toll Free Number

1-929-458-6194

International Toll Free Number

1-929-526-1599

International Toll Free Number

1-929-458-6194

Canada Toll Free Number

1-833-950-0062

Canada Toll Free Number

1-226-828-7575

Conference Number

775561

Conference Number

468138

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended September 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 September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 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.

2

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 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

3

Supplemental Financial and Operating Data

Table of Contents

September 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)

						3rd Quarter						2nd Quarter						1st Quarter						4th Quarter						3rd Quarter
						2023						2023						2023						2022						2022
High closing price						$	66.57					$	64.18					$	71.07					$	70.20					$	89.71
Low closing price						$	59.39					$	53.98					$	51.39					$	58.50					$	65.85
Average closing price						$	62.52					$	58.61					$	61.68					$	64.64					$	79.40
Closing price at end of quarter						$	60.26					$	61.36					$	54.63					$	58.67					$	67.32
Common share distributions – annualized						$	2.92					$	2.92					$	2.92					$	2.92					$	2.92
Closing dividend yield – annualized						4.8		%				4.8		%				5.3		%				5.0		%				4.3		%
Closing common shares outstanding (thousands)						15,052						14,949						15,032						15,020						15,376
Closing limited partnership units outstanding (thousands)						864						961						967						971						980
Closing Series E preferred units outstanding, as converted (thousands)						2,087						2,094						2,103						2,119						2,186
Total closing common shares, limited partnership units, and Series E preferred units, as converted, outstanding (thousands)						18,003						18,004						18,102						18,110						18,542
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)						$	1,084,861					$	1,104,725					$	988,912					$	1,062,514					$	1,248,247

S-1

CENTERSPACE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)

						Three Months Ended																																	Nine Months Ended
						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022									9/30/2023						9/30/2022
REVENUE						$	64,568					$	64,776					$	67,897					$	67,848					$	65,438								$	197,241					$	188,868
EXPENSES
Property operating expenses, excluding real estate taxes						19,602						17,872						21,342						21,755						20,290									58,816						58,315
Real estate taxes						7,143						7,174						7,581						7,464						7,039									21,898						21,103
Property management expense						2,197						2,247						2,568						2,358						2,563									7,012						7,537
Casualty loss						937						53						252						335						276									1,242						1,256
Depreciation and amortization						24,697						24,371						25,993						25,768						23,720									75,061						79,489
General and administrative expenses						3,832						4,162						7,723						3,276						4,519									15,717						14,240
TOTAL EXPENSES						$	58,408					$	55,879					$	65,459					$	60,956					$	58,407								$	179,746					$	181,940
Gain (loss) on sale of real estate and other investments						11,235						(67)						60,159						14						—									71,327						27
Loss on litigation settlement						—						(2,864)						—						—						—									(2,864)						—
Operating income						17,395						5,966						62,597						6,906						7,031									85,958						6,955
Interest expense						(8,556)						(8,641)						(10,319)						(9,603)						(7,871)									(27,516)						(23,147)
Interest and other income						330						295						49						132						70									674						1,116
Net income (loss)						$	9,169					$	(2,380)					$	52,327					$	(2,565)					$	(770)								$	59,116					$	(15,076)
Dividends to Series D preferred unitholders						(160)						(160)						(160)						(160)						(160)									(480)						(480)
Net (income) loss attributable to noncontrolling interest – Operating Partnership and Series E preferred units						(1,204)						712						(8,566)						753						439									(9,058)						3,546
Net income attributable to noncontrolling interests – consolidated real estate entities						(31)						(35)						(30)						(34)						(32)									(96)						(93)
Net income (loss) attributable to controlling interests						7,774						(1,863)						43,571						(2,006)						(523)									49,482						(12,103)
Dividends to preferred shareholders						(1,607)						(1,607)						(1,607)						(1,607)						(1,607)									(4,821)						(4,821)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	6,167					$	(3,470)					$	41,964					$	(3,613)					$	(2,130)								$	44,661					$	(16,924)
Per Share Data - Basic
Net income (loss) per common share – basic						$	0.41					$	(0.23)					$	2.79					$	(0.24)					$	(0.14)								$	2.98					$	(1.11)
Per Share Data - Diluted
Net income (loss) per common share – diluted						$	0.41					$	(0.23)					$	2.76					$	(0.24)					$	(0.14)								$	2.96					$	(1.11)

S-2

CENTERSPACE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022
ASSETS
Real estate investments
Property owned						$	2,326,408					$	2,434,138					$	2,420,911					$	2,534,124					$	2,513,470
Less accumulated depreciation						(516,673)						(543,264)						(519,167)						(535,401)						(511,000)
Total real estate investments						1,809,735						1,890,874						1,901,744						1,998,723						2,002,470
Cash and cash equivalents						29,701						9,745						8,939						10,458						14,957
Restricted cash						22,496						566						48,903						1,433						1,417
Other assets						16,349						18,992						19,298						22,687						19,742
TOTAL ASSETS						$	1,878,281					$	1,920,177					$	1,978,884					$	2,033,301					$	2,038,586
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	62,674					$	56,713					$	56,639					$	58,812					$	58,322
Revolving lines of credit						—						18,989						143,469						113,500						171,500
Notes payable, net of unamortized loan costs						299,443						299,428						299,412						399,007						299,388
Mortgages payable, net of unamortized loan costs						539,245						563,079						474,999						495,126						496,530
TOTAL LIABILITIES						$	901,362					$	938,209					$	974,519					$	1,066,445					$	1,025,740
SERIES D PREFERRED UNITS						$	16,560					$	16,560					$	16,560					$	16,560					$	16,560
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,530						93,530						93,530						93,530
Common Shares of Beneficial Interest						1,169,025						1,169,501						1,176,059						1,177,484						1,209,732
Accumulated distributions in excess of net income						(527,586)						(522,796)						(508,420)						(539,422)						(524,905)
Accumulated other comprehensive loss						(1,434)						(1,758)						(1,917)						(2,055)						(2,158)
Total shareholders’ equity						$	733,535					$	738,477					$	759,252					$	729,537					$	776,199
Noncontrolling interests – Operating Partnership and Series E preferred units						226,205						226,294						227,920						220,132						219,466
Noncontrolling interests – consolidated real estate entities						619						637						633						627						621
TOTAL EQUITY						$	960,359					$	965,408					$	987,805					$	950,296					$	996,286
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	1,878,281					$	1,920,177					$	1,978,884					$	2,033,301					$	2,038,586

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 nine months ended September 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 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 excludes gain (loss) on the sale of real estate and other investments, 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
			9/30/2023						6/30/2023						9/30/2022									$ Change						% Change						$ Change						% Change
Operating income			$	17,395					$	5,966					$	7,031								$	11,429					191.6		%				$	10,364					147.4		%
Adjustments:
Property management expenses			2,197						2,247						2,563									(50)						(2.2)		%				(366)						(14.3)		%
Casualty loss			937						53						276									884						*						661						239.5		%
Depreciation and amortization			24,697						24,371						23,720									326						1.3		%				977						4.1		%
General and administrative expenses			3,832						4,162						4,519									(330)						(7.9)		%				(687)						(15.2)		%
(Gain) loss on sale of real estate and other investments			(11,235)						67						—									(11,302)						*						(11,235)						N/A
Loss on litigation settlement			—						2,864						—									(2,864)						(100.0)		%				—						—
Net operating income			$	37,823					$	39,730					$	38,109								$	(1,907)					(4.8)		%				$	(286)					(0.8)		%
Revenue
Same-store			$	57,949					$	57,630					$	54,838								$	319					0.6		%				$	3,111					5.7		%
Non-same-store			3,556						3,629						2,219									(73)						(2.0)		%				1,337						60.3		%
Other properties			676						663						685									13						2.0		%				(9)						(1.3)		%
Dispositions			2,387						2,854						7,696									(467)						(16.4)		%				(5,309)						(69.0)		%
Total			64,568						64,776						65,438									(208)						(0.3)		%				(870)						(1.3)		%
Property operating expenses, including real estate taxes
Same-store			23,906						22,262						22,533									1,644						7.4		%				1,373						6.1		%
Non-same-store			1,469						1,348						806									121						9.0		%				663						82.3		%
Other properties			270						189						267									81						42.9		%				3						1.1		%
Dispositions			1,100						1,247						3,723									(147)						(11.8)		%				(2,623)						(70.5)		%
Total			26,745						25,046						27,329									1,699						6.8		%				(584)						(2.1)		%
Net operating income
Same-store			34,043						35,368						32,305									(1,325)						(3.7)		%				1,738						5.4		%
Non-same-store			2,087						2,281						1,413									(194)						(8.5)		%				674						47.7		%
Other properties			406						474						418									(68)						(14.3)		%				(12)						(2.9)		%
Dispositions			1,287						1,607						3,973									(320)						(19.9)		%				(2,686)						(67.6)		%
Total			$	37,823					$	39,730					$	38,109								$	(1,907)					(4.8)		%				$	(286)					(0.8)		%

* Not a meaningful percentage

S-5

			(in thousands, except percentages)
			Nine Months Ended September 30,
			2023						2022						$ Change						% Change
Operating income			$	85,958					$	6,955					$	79,003					*
Adjustments:
Property management expenses			7,012						7,537						(525)						(7.0)		%
Casualty loss			1,242						1,256						(14)						(1.1)		%
Depreciation and amortization			75,061						79,489						(4,428)						(5.6)		%
General and administrative expenses			15,717						14,240						1,477						10.4		%
Gain on sale of real estate and other investments			(71,327)						(27)						(71,300)						*
Loss on litigation settlement			2,864						—						2,864						N/A
Net operating income			$	116,527					$	109,450					$	7,077					6.5		%
Revenue
Same-store			$	172,071					$	158,886					$	13,185					8.3		%
Non-same-store			10,822						5,937						4,885						82.3		%
Other properties			2,014						1,885						129						6.8		%
Dispositions			12,334						22,160						(9,826)						(44.3)		%
Total			197,241						188,868						8,373						4.4		%
Property operating expenses, including real estate taxes
Same-store			69,791						65,461						4,330						6.6		%
Non-same-store			4,126						2,286						1,840						80.5		%
Other properties			546						691						(145)						(21.0)		%
Dispositions			6,251						10,980						(4,729)						(43.1)		%
Total			80,714						79,418						1,296						1.6		%
Net operating income
Same-store			102,280						93,425						8,855						9.5		%
Non-same-store			6,696						3,651						3,045						83.4		%
Other properties			1,468						1,194						274						22.9		%
Dispositions			6,083						11,180						(5,097)						(45.6)		%
Total			$	116,527					$	109,450					$	7,077					6.5		%

* 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 September 30,																											Nine Months Ended September 30,
			2023						2022						$ Change						% Change									2023						2022						$ Change						% Change
Controllable expenses
On-site compensation(1)			$	6,440					$	5,617					$	823					14.7		%							$	18,369					$	16,515					$	1,854					11.2		%
Repairs and maintenance			3,946						4,261						(315)						(7.4)		%							10,315						10,358						(43)						(0.4)		%
Utilities			3,513						3,670						(157)						(4.3)		%							11,555						11,709						(154)						(1.3)		%
Administrative and marketing			1,436						1,286						150						11.7		%							3,923						3,674						249						6.8		%
Total			$	15,335					$	14,834					$	501					3.4		%							$	44,162					$	42,256					$	1,906					4.5		%
Non-controllable expenses
Real estate taxes			$	6,334					$	5,856					$	478					8.2		%							$	19,099					$	17,663					$	1,436					8.1		%
Insurance			2,237						1,843						394						21.4		%							6,530						5,542						988						17.8		%
Total			$	8,571					$	7,699					$	872					11.3		%							$	25,629					$	23,205					$	2,424					10.4		%
Property operating expenses, including real estate taxes - non-same-store			$	1,469					$	806					$	663					82.3		%							$	4,126					$	2,286					$	1,840					80.5		%
Property operating expenses, including real estate taxes - other properties			270						267						3						1.1		%							546						691						(145)						(21.0)		%
Property operating expenses, including real estate taxes - dispositions			1,100						3,723						(2,623)						(70.5)		%							6,251						10,980						(4,729)						(43.1)		%
Total property operating expenses, including real estate taxes			$	26,745					$	27,329					$	(584)					(2.1)		%							$	80,714					$	79,418					$	1,296					1.6		%

(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																																	Nine Months Ended
						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022									9/30/2023						9/30/2022
Funds From Operations
Net income (loss) available to common shareholders						$	6,167					$	(3,470)					$	41,964					$	(3,613)					$	(2,130)								$	44,661					$	(16,924)
Adjustments:
Noncontrolling interests – Operating Partnership and Series E preferred units						1,204						(712)						8,566						(753)						(439)									9,058						(3,546)
Depreciation and amortization						24,697						24,371						25,993						25,768						23,720									75,061						79,489
Less depreciation – non real estate						(56)						(89)						(91)						(91)						(94)									(236)						(296)
Less depreciation – partially owned entities						(20)						(19)						(19)						(19)						(18)									(58)						(46)
(Gain) loss on sale of real estate and other assets						(11,235)						71						(60,159)						(14)						—									(71,323)						(27)
FFO applicable to common shares and Units						$	20,757					$	20,152					$	16,254					$	21,278					$	21,039								$	57,163					$	58,650
Adjustments to Core FFO:
Non-cash casualty (gain) loss						854						(52)						13						20						46									815						234
Loss on extinguishment of debt						—						—						—						—						—									—						5
Technology implementation costs(1)						—						—						—						89						234									—						784
Interest rate swap termination, amortization, and mark-to-market						324						159						138						104						204									621						(204)
Amortization of assumed debt						(116)						(116)						(116)						(117)						(116)									(348)						(347)
Pursuit costs						—						—						5						137						38									5						1,165
Severance and transition related costs						—						(19)						3,199						—						—									3,180						—
Loss on litigation settlement and one-time trial costs(2)						34						3,201						—						—						—									3,235						—
Other miscellaneous items(3)						(129)						(22)						49						(28)						17									(102)						113
Core FFO applicable to common shares and Units						$	21,724					$	23,303					$	19,542					$	21,483					$	21,462								$	64,569					$	60,400
FFO applicable to common shares and Units						$	20,757					$	20,152					$	16,254					$	21,278					$	21,039								$	57,163					$	58,650
Dividends to preferred unitholders						160						160						160						160						160									480						480
FFO applicable to common shares and Units - diluted						$	20,917					$	20,312					$	16,414					$	21,438					$	21,199								$	57,643					$	59,130
Core FFO applicable to common shares and Units						$	21,724					$	23,303					$	19,542					$	21,483					$	21,462								$	64,569					$	60,400
Dividends to preferred unitholders						160						160						160						160						160									480						480
Core FFO applicable to common shares and Units - diluted						$	21,884					$	23,463					$	19,702					$	21,643					$	21,622								$	65,049					$	60,880
Per Share Data
Net income (loss) per share and Unit - diluted						$	0.41					$	(0.23)					$	2.76					$	(0.24)					$	(0.14)								$	2.96					$	(1.11)
FFO per share and Unit - diluted						$	1.15					$	1.11					$	0.89					$	1.16					$	1.13								$	3.15					$	3.16
Core FFO per share and Unit - diluted						$	1.20					$	1.28					$	1.07					$	1.17					$	1.15								$	3.56					$	3.25
Weighted average shares - basic						14,989						14,949						15,025						15,027						15,373									14,988						15,280
Effect of redeemable operating partnership Units						908						965						968						974						984									943						980
Effect of Series D preferred units						228						228						228						228						228									228						228
Effect of Series E preferred units						2,093						2,103						2,118						2,185						2,186									2,105						2,186
Effect of dilutive restricted stock units and stock options						28						24						20						9						30									23						48
Weighted average shares and Units - diluted						18,246						18,269						18,359						18,423						18,801									18,287						18,722

(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 $371,000 in one-time trial costs related to the litigation matter for the nine months ended September 30, 2023.

(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																																	Nine Months Ended
						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022									9/30/2023						9/30/2022
Adjusted EBITDA
Net income (loss) available to controlling interests						$	7,774					$	(1,863)					$	43,571					$	(2,006)					$	(523)								$	49,482					$	(12,103)
Adjustments:
Dividends to Series D preferred unitholders						160						160						160						160						160									480						480
Noncontrolling interests – Operating Partnership and Series E preferred units						1,204						(712)						8,566						(753)						(439)									9,058						(3,546)
Income (loss) before noncontrolling interests – Operating Partnership and Series E preferred units						$	9,138					$	(2,415)					$	52,297					$	(2,599)					$	(802)								$	59,020					$	(15,169)
Adjustments:
Interest expense						8,542						8,626						10,305						9,589						7,856									27,473						23,103
Loss on extinguishment of debt						—						—						—						—						—									—						5
Depreciation and amortization related to real estate investments						24,675						24,351						25,971						25,747						23,699									74,997						79,438
Non-cash casualty (gain) loss						854						(52)						13						20						46									815						234
Interest income						(187)						(248)						(92)						(92)						(82)									(527)						(620)
(Gain) loss on sale of real estate and other investments						(11,235)						71						(60,159)						(14)						—									(71,323)						(27)
Technology implementation costs(1)						—						—						—						89						234									—						784
Interest rate swap mark-to-market						—						—						—						—						—									—						(564)
Pursuit costs						—						—						5						137						38									5						1,165
Severance and transition related costs						—						(19)						3,199						—						—									3,180						—
Loss on litigation settlement and one-time trial costs(2)						34						3,201						—						—						—									3,235						—
Other miscellaneous items(3)						(129)						(22)						49						(28)						17									(102)						113
Adjusted EBITDA						$	31,692					$	33,493					$	31,588					$	32,849					$	31,006								$	96,773					$	88,462

(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 $371,000 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)						$	—					$	—					$	—					$	—					—						—
2024						—						—						—						—						—						—
2025						30,634						—						—						30,634						3.6		%				3.70		%
2026						50,889						—						—						50,889						6.0		%				3.73		%
2027						49,993						—						—						49,993						5.9		%				3.47		%
Thereafter						411,043						300,000						—						711,043						84.5		%				3.42		%
Total debt						$	542,559					$	300,000					$	—					$	842,559					100.0		%				3.46		%

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

						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022
Debt Balances Outstanding(1)
Secured fixed rate - mortgages payable - other						$	343,709					$	367,679					$	279,340					$	299,427					$	300,956
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
Unsecured term loans						—						—						—						100,000						—
Unsecured senior notes						300,000						300,000						300,000						300,000						300,000
Debt total						$	842,559					$	885,518					$	921,659					$	1,011,777					$	971,306
Mortgages payable - other rate						4.14		%				4.14		%				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(2)						—						7.35		%				6.39		%				5.23		%				4.13		%
Unsecured term loan rate						—						—						—						5.57		%				—
Unsecured senior notes rate						3.12		%				3.12		%				3.12		%				3.12		%				3.12		%
Total debt						3.46		%				3.54		%				3.71		%				3.62		%				3.45		%

(1)Excludes deferred financing costs and premiums or discounts.

(2)Weighted average interest rate includes amount reclassified from accumulated other comprehensive income into interest expense from terminated interest rate swaps and excludes any unused facility fees.

S-11

CENTERSPACE 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						Three Months Ended
						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022
Equity Capitalization
Common shares outstanding						15,052						14,949						15,032						15,020						15,376
Operating partnership units outstanding						864						961						967						971						980
Series E preferred units (as converted)						2,087						2,094						2,103						2,119						2,186
Total common shares, Units, and Series E preferred units, as converted, outstanding						18,003						18,004						18,102						18,110						18,542
Market price per common share (closing price at end of period)						$	60.26					$	61.36					$	54.63					$	58.67					$	67.32
Equity capitalization-common shares and units						$	1,084,861					$	1,104,725					$	988,912					$	1,062,514					$	1,248,247
Recorded book value of preferred shares						$	93,530					$	93,530					$	93,530					$	93,530					$	93,530
Total equity capitalization						$	1,178,391					$	1,198,255					$	1,082,442					$	1,156,044					$	1,341,777
Series D Preferred Units						$	16,560					$	16,560					$	16,560					$	16,560					$	16,560
Debt Capitalization
Total debt						$	842,559					$	885,518					$	921,659					$	1,011,777					$	971,306
Total capitalization						$	2,037,510					$	2,100,333					$	2,020,661					$	2,184,381					$	2,329,643
Total debt to total capitalization(1)						41.4		%				42.2		%				45.6		%				46.3		%				41.7		%

(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																																	Nine Months Ended
						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022									9/30/2023						9/30/2022
Debt service coverage ratio(1)						3.11		x				3.33		x				2.70		x				2.99		x				3.35		x							3.03		x				3.22		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.65		x				2.83		x				2.35		x				2.58		x				2.81		x							2.60		x				2.70		x
Net debt/Adjusted EBITDA(2)						6.41		x				6.54		x				7.22		x				7.62		x				7.71		x							6.30		x				8.11		x
Net debt and preferred equity/Adjusted EBITDA(2)						7.28		x				7.36		x				8.09		x				8.46		x				8.60		x							7.15		x				9.04		x
Distribution Data
Common shares and Units outstanding at record date						15,916						15,910						15,999						15,991						16,356									15,916						16,356
Total common distribution declared						$	11,615					$	11,608					$	11,668					$	11,614					$	11,939								$	34,891					$	35,831
Common distribution per share and Unit						$	0.73					$	0.73					$	0.73					$	0.73					$	0.73								$	2.19					$	2.19
Payout ratio (Core FFO per diluted share and unit basis)(3)						60.8		%				57.0		%				68.2		%				62.4		%				63.5		%							61.5		%				67.4		%

(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.

						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022
Total debt						$	842,559					$	885,518					$	921,659					$	1,011,777					$	971,306
Less: cash and cash equivalents						29,701						9,745						8,939						10,458						14,957
Net debt						$	812,858					$	875,773					$	912,720					$	1,001,319					$	956,349

(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 THIRD QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2023						Q3 2022						% Change						Q3 2023						Q3 2022						% Change						Q3 2023						Q3 2022						% Change
Denver, CO						1,889						$	11,805					$	11,260					4.8		%				$	4,172					$	3,824					9.1		%				$	7,633					$	7,436					2.6		%
Minneapolis, MN						4,519						21,167						20,328						4.1		%				9,722						9,530						2.0		%				11,445						10,798						6.0		%
North Dakota						1,710						6,912						6,404						7.9		%				2,718						2,395						13.5		%				4,194						4,009						4.6		%
Omaha, NE						872						3,580						3,263						9.7		%				1,545						1,399						10.4		%				2,035						1,864						9.2		%
Rochester, MN						1,129						5,779						5,451						6.0		%				2,245						2,039						10.1		%				3,534						3,412						3.6		%
St. Cloud, MN						832						3,528						3,166						11.4		%				1,522						1,580						(3.7)		%				2,006						1,586						26.5		%
Other Mountain West(1)						1,222						5,178						4,966						4.3		%				1,982						1,766						12.2		%				3,196						3,200						(0.1)		%
Same-Store Total						12,173						$	57,949					$	54,838					5.7		%				$	23,906					$	22,533					6.1		%				$	34,043					$	32,305					5.4		%

						% of NOI Contribution						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												Q3 2023						Q3 2022						Growth						Q3 2023						Q3 2022						% Change						Q3 2023						Q3 2022						% Change
Denver, CO						22.4		%				95.4		%				96.1		%				(0.7)		%				$	1,957					$	1,866					4.9		%				$	2,185					$	2,067					5.7		%
Minneapolis, MN						33.6		%				94.2		%				94.3		%				(0.1)		%				1,480						1,427						3.7		%				1,657						1,590						4.2		%
North Dakota						12.3		%				95.8		%				96.9		%				(1.1)		%				1,276						1,182						8.0		%				1,406						1,289						9.1		%
Omaha, NE						6.0		%				95.1		%				94.9		%				0.2		%				1,299						1,192						9.0		%				1,439						1,314						9.5		%
Rochester, MN						10.4		%				94.4		%				93.5		%				0.9		%				1,711						1,619						5.7		%				1,808						1,721						5.1		%
St. Cloud, MN						5.9		%				92.2		%				85.8		%				6.4		%				1,349						1,296						4.1		%				1,532						1,478						3.7		%
Other Mountain West(1)						9.4		%				95.0		%				95.7		%				(0.7)		%				1,338						1,279						4.6		%				1,487						1,415						5.1		%
Same-Store Total						100.0		%				94.7		%				94.5		%				0.2		%				$	1,511					$	1,438					5.1		%				$	1,676					$	1,589					5.5		%

(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												Q3 2023						Q2 2023						% Change						Q3 2023						Q2 2023						% Change						Q3 2023						Q2 2023						% Change
Denver, CO						1,889						$	11,805					$	11,968					(1.4)		%				$	4,172					$	3,944					5.8		%				$	7,633					$	8,024					(4.9)		%
Minneapolis, MN						4,519						21,167						21,069						0.5		%				9,722						9,088						7.0		%				11,445						11,981						(4.5)		%
North Dakota						1,710						6,912						6,767						2.1		%				2,718						2,510						8.3		%				4,194						4,257						(1.5)		%
Omaha, NE						872						3,580						3,443						4.0		%				1,545						1,381						11.9		%				2,035						2,062						(1.3)		%
Rochester, MN						1,129						5,779						5,760						0.3		%				2,245						2,137						5.1		%				3,534						3,623						(2.5)		%
St. Cloud, MN						832						3,528						3,459						2.0		%				1,522						1,405						8.3		%				2,006						2,054						(2.3)		%
Other Mountain West(1)						1,222						5,178						5,164						0.3		%				1,982						1,797						10.3		%				3,196						3,367						(5.1)		%
Same-Store Total						12,173						$	57,949					$	57,630					0.6		%				$	23,906					$	22,262					7.4		%				$	34,043					$	35,368					(3.7)		%

						% of NOI Contribution						Weighted Average Occupancy (2)																		Average Monthly Rental Rate (3)																		Average Monthly Revenue per Occupied Home (4)
Regions												Q3 2023						Q2 2023						Growth						Q3 2023						Q2 2023						% Change						Q3 2023						Q2 2023						% Change
Denver, CO						22.4		%				95.4		%				96.1		%				(0.7)		%				$	1,957					$	1,928					1.5		%				$	2,185					$	2,198					(0.6)		%
Minneapolis, MN						33.6		%				94.2		%				94.9		%				(0.7)		%				1,480						1,463						1.2		%				1,657						1,637						1.2		%
North Dakota						12.3		%				95.8		%				96.4		%				(0.6)		%				1,276						1,242						2.7		%				1,406						1,368						2.8		%
Omaha, NE						6.0		%				95.1		%				94.7		%				0.4		%				1,299						1,262						2.9		%				1,439						1,389						3.6		%
Rochester, MN						10.4		%				94.4		%				95.0		%				(0.6)		%				1,711						1,688						1.4		%				1,808						1,790						1.0		%
St. Cloud, MN						5.9		%				92.2		%				91.7		%				0.5		%				1,349						1,343						0.4		%				1,532						1,512						1.3		%
Other Mountain West(1)						9.4		%				95.0		%				95.3		%				(0.3)		%				1,338						1,327						0.8		%				1,487						1,479						0.5		%
Same-Store Total						100.0		%				94.7		%				95.2		%				(0.5)		%				$	1,511					$	1,489					1.5		%				$	1,676					$	1,658					1.1		%

(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						$	35,514					$	32,840					8.1		%				$	12,151					$	10,567					15.0		%				$	23,363					$	22,273					4.9		%
Minneapolis, MN						4,519						63,040						59,017						6.8		%				28,399						27,410						3.6		%				34,641						31,607						9.6		%
North Dakota						1,710						20,189						18,456						9.4		%				8,071						7,501						7.6		%				12,118						10,955						10.6		%
Omaha, NE						872						10,379						9,455						9.8		%				4,360						4,051						7.6		%				6,019						5,404						11.4		%
Rochester, MN						1,129						17,188						15,689						9.6		%				6,610						6,274						5.4		%				10,578						9,415						12.4		%
St. Cloud, MN						832						10,338						9,392						10.1		%				4,617						4,454						3.7		%				5,721						4,938						15.9		%
Other Mountain West(1)						1,222						15,423						14,037						9.9		%				5,583						5,204						7.3		%				9,840						8,833						11.4		%
Same-Store Total						12,173						$	172,071					$	158,886					8.3		%				$	69,791					$	65,461					6.6		%				$	102,280					$	93,425					9.5		%

						% 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						22.9		%				95.7		%				94.8		%				0.9		%				$	1,932					$	1,826					5.8		%				$	2,182					$	2,038					7.1		%
Minneapolis, MN						33.9		%				94.6		%				94.5		%				0.1		%				1,466						1,398						4.9		%				1,639						1,536						6.7		%
North Dakota						11.8		%				96.3		%				96.0		%				0.3		%				1,244						1,150						8.2		%				1,363						1,249						9.1		%
Omaha, NE						5.9		%				94.6		%				95.9		%				(1.3)		%				1,265						1,138						11.2		%				1,397						1,257						11.1		%
Rochester, MN						10.3		%				94.7		%				93.9		%				0.8		%				1,688						1,554						8.6		%				1,786						1,645						8.6		%
St. Cloud, MN						5.6		%				91.4		%				89.6		%				1.8		%				1,336						1,241						7.7		%				1,511						1,400						7.9		%
Other Mountain West(1)						9.6		%				95.1		%				95.4		%				(0.3)		%				1,328						1,213						9.5		%				1,474						1,337						10.2		%
Same-Store Total						100.0		%				94.9		%				94.5		%				0.4		%				$	1,490					$	1,396					6.7		%				$	1,655					$	1,534					7.9		%

(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
						9/30/2023						6/30/2023						3/31/2023						12/31/2022						9/30/2022
Number of Apartment Homes at Period End
Same-Store						12,173						12,885						12,885						11,330						11,330
Non-Same-Store						612						612						612						3,735						3,734
All Communities						12,785						13,497						13,497						15,065						15,064
Average Monthly Rental Rate(2)
Same-Store						$	1,511					$	1,467					$	1,450					$	1,438					$	1,411
Non-Same-Store						1,907						1,894						1,890						1,352						1,286
All Communities						$	1,530					$	1,487					$	1,470					$	1,417					$	1,381
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,676					$	1,634					$	1,606					$	1,592					$	1,565
Non-Same-Store						2,072						2,072						2,066						1,471						1,417
All Communities						$	1,695					$	1,654					$	1,627					$	1,562					$	1,530
Weighted Average Occupancy(4)
Same-Store						94.7		%				95.2		%				94.8		%				94.9		%				94.5		%
Non-Same-Store						93.5		%				95.4		%				95.9		%				94.7		%				94.6		%
All Communities						94.6		%				95.2		%				94.9		%				94.9		%				94.5		%
Operating Expenses as a % of Scheduled Rent
Same-Store						43.3		%				41.2		%				43.9		%				43.1		%				42.5		%
Non-Same-Store						41.9		%				38.8		%				37.8		%				51.7		%				48.7		%
All Communities						43.3		%				41.1		%				43.5		%				45.1		%				43.9		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	389					$	258					$	115					$	364					$	465

(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															Nine Months Ended
Capital Expenditures						9/30/2023						9/30/2022									9/30/2023						9/30/2022
Total Same-Store Apartment Homes						12,173						12,173									12,173						12,173
All Properties - Weighted Average Apartment Homes						12,785						14,981									12,785						14,882
Same Store
Building - Exterior						$	975					$	1,302								$	1,181					$	1,891
Building - Interior						45						132									(17)						207
Mechanical, Electrical, & Plumbing						1,726						1,131									2,766						1,827
Furniture & Equipment						95						124									269						291
Landscaping & Grounds						112						709									28						900
Turnover replacements						1,341						2,237									2,737						4,127
Work in progress						443						(554)									2,291						(707)
Capital Expenditures - Same-Store						$	4,737					$	5,081								$	9,255					$	8,536
Capital Expenditures per Apartment Home - Same-Store						$	389					$	417								$	760					$	701
Capital Expenditures - All Properties						$	4,930					$	6,185								$	10,064					$	10,403
Capital Expenditures per Apartment Home - All Properties						$	386					$	413								$	787					$	699
Value Add
Same Store
Interior - Units						$	4,512					$	7,598								$	10,230					$	14,547
Common Areas and Exterior						$	1,734					$	2,970								$	4,288					$	7,821
Work in Progress						$	695					$	(142)								$	912					$	(1,936)
Total Value Add - Same Store						$	6,941					$	10,426								$	15,430					$	20,432
All Properties
Interior - Units						$	4,512					$	7,639								$	10,230					$	14,594
Common Areas and Exterior						$	1,750					$	3,114								$	4,408					$	8,017
Work in Progress						695						(142)									$	912					$	(1,949)
Total Value Add - All Properties						$	6,957					$	10,611								$	15,550					$	20,662
Acquisition Capital
All Properties						2,188						2,475									12,150						5,039
Total Capital Spend
Total Capital Spend - Same-Store(1)						$	11,678					$	15,507								$	24,685					$	28,968
Total Capital Spend per Apartment Home - Same-Store(1)						$	959					$	1,274								$	2,028					$	2,380
Total Capital Spend - All Properties						$	14,075					$	19,271								$	37,764					$	36,104
Total Capital Spend per Apartment Home - All Properties						$	1,101					$	1,286								$	2,954					$	2,426

(1)Excludes acquisition capital on same-store communities.

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.

			Nine Months Ended						2023 Previous Outlook Range												2023 Revised Outlook Range
			September 30, 2023						Low						High						Low						High
			YTD Actual						Amount						Amount						Amount						Amount
Same-store growth
Revenue			$	172,071					6.50		%				8.00		%				7.00		%				7.50		%
Controllable expenses			44,162						2.00		%				3.50		%				2.00		%				2.50		%
Non-controllable expenses			25,629						7.50		%				9.00		%				8.00		%				8.50		%
Total Expenses			$	69,791					4.00		%				5.25		%				4.00		%				4.50		%
Same-store NOI(1)			$	102,280					8.50		%				10.00		%				9.00		%				9.50		%
Components of NOI(1)
Same-store			$	102,280					$	137,000					$	139,000					$	137,750					$	138,250
Non-same-store			6,696						9,000						9,200						8,900						9,000
Other properties			1,468						1,700						1,800						1,700						1,800
Dispositions			6,083						$	7,200					$	7,400					$	6,000					$	6,000
Total NOI(1)			$	116,527					$	154,900					$	157,400					$	154,350					$	155,050
Accretion (dilution) from investments and capital market activity, excluding impact from change in share count			$	—					(400)						(200)						100						150
Other operating income and expenses
General and administrative and property management			(22,729)						(31,100)						(30,700)						(30,900)						(30,700)
Casualty loss			(1,242)						(1,300)						(1,100)						(1,700)						(1,600)
Loss on litigation settlement			(2,864)						(3,200)						(3,200)						(2,900)						(2,900)
Non-real estate depreciation and amortization			(236)						(375)						(325)						(375)						(325)
Non-controlling interest			(96)						(110)						(100)						(110)						(100)
Total other operating income and expenses			$	(27,167)					$	(36,085)					$	(35,425)					$	(35,985)					$	(35,625)
Interest expense			$	(27,516)					(37,000)						(36,600)						(36,000)						(35,800)
Interest and other income			620						$	600					$	800					$	600					$	700
Dividends to preferred shareholders			(4,821)						(6,400)						(6,400)						(6,400)						(6,400)
FFO applicable to common shares and Units - diluted(1)			$	57,643					$	75,615					$	79,575					$	76,665					$	78,075
Non-core income and expenses
Non-cash casualty (gain) loss			$	815					$	400					$	200					$	950					$	1,000
Interest rate swap amortization			621						900						1,000						900						1,000
Amortization of assumed debt			(348)						—						—						(219)						(219)
Severance and transition related costs			3,180						3,180						3,180						3,180						3,180
Loss on litigation settlement and one-time trial costs			3,235						3,200						3,200						3,300						3,300
Other miscellaneous items			(97)						(240)						(290)						(81)						(131)
Total non-core income and expenses			$	7,406					$	7,440					$	7,290					$	8,030					$	8,130
Core FFO applicable to common shares and Units - diluted(1)			$	65,049					$	83,055					$	86,865					$	84,695					$	86,205
EPS - Diluted			$	2.96					$	2.84					$	3.64					$	2.90					$	3.56
FFO per diluted share(1)			$	3.15					$	4.14					$	4.35					$	4.20					$	4.27
Core FFO per diluted share(1)			$	3.56					$	4.55					$	4.75					$	4.63					$	4.71
Weighted average shares outstanding - diluted			18,287						18,250						18,275						18,275						18,300
Additional Assumptions
Same-store capital expenditures (per home)			$	760					$	1,100					1,150						$	1,000					1,050
Value-add expenditures			$	15,550					$	31,500					$	34,500					$	30,000					$	31,500
Investments			$	—					$	95,000					$	100,000					$	94,500					$	94,500
Dispositions			$	226,755					$	220,000					$	225,000					$	226,800					$	226,800

(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
			Nine Months Ended						12 Months Ended												12 Months Ended
			September 30, 2023						December 31, 2023												December 31, 2023
			Actual						Low						High						Low						High
Net income available to common shareholders			$	44,661					$	59,679					$	74,457					$	60,729					$	72,957
Noncontrolling interests - Operating Partnership and Series E preferred units			9,058						(7,795)						(7,885)						(7,795)						(7,885)
Depreciation and amortization			75,061						92,556						91,768						92,556						91,768
Less depreciation - non real estate			(236)						(375)						(325)						(375)						(325)
Less depreciation - partially owned entities			(58)						(110)						(100)						(110)						(100)
Gain on sale of real estate			(71,323)						(68,980)						(78,980)						(68,980)						(78,980)
Dividends to preferred unitholders			480						640						640						640						640
FFO applicable to common shares and Units - diluted			$	57,643					$	75,615					$	79,575					$	76,665					$	78,075
Adjustments to Core FFO:
Non-cash casualty loss			815						400						200						950						1,000
Interest rate swap termination, amortization, and mark-to-market			621						900						1,000						900						1,000
Amortization of assumed debt			(348)						—						—						(219)						(219)
Severance and transition related costs			3,180						3,180						3,180						3,180						3,180
Loss on litigation settlement and one-time trial costs			3,235						3,200						3,200						3,300						3,300
Other miscellaneous items			(97)						(240)						(290)						(81)						(131)
Core FFO applicable to common shares and Units - diluted			$	65,049					$	83,055					$	86,865					$	84,695					$	86,205
Net income per share - diluted			$	2.96					$	2.84					$	3.64					$	2.90					$	3.56
FFO per share - diluted			$	3.15					$	4.14					$	4.35					$	4.20					$	4.27
Core FFO per share - diluted			$	3.56					$	4.55					$	4.75					$	4.63					$	4.71

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
			Nine Months Ended						12 Months Ended												12 Months Ended
			September 30, 2023						December 31, 2023												December 31, 2023
			Actual						Low						High						Low						High
Operating income			$	85,958					$	96,060					$	109,948					$	95,310					$	107,098
Adjustments:
General and administrative and property management expenses			22,729						31,100						30,700						30,900						30,700
Casualty loss			1,242						1,300						1,100						1,700						1,600
Depreciation and amortization			75,061						92,556						91,768						92,556						91,768
Gain on sale of real estate and other investments			(71,327)						(68,980)						(78,980)						(68,980)						(78,980)
Loss on litigation settlement			2,864						2,864						2,864						2,864						2,864
Net operating income			$	116,527					$	154,900					$	157,400					$	154,350					$	155,050

S-19