NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2025

Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares of beneficial interest (“common shares”) outstanding during the period. Centerspace has issued restricted stock units (“RSUs”) and incentive stock options (“ISOs”) under its 2015 Incentive Plan, RSUs under its 2025 Incentive Plan (as defined below), Series D Convertible Preferred Units (“Series D preferred units”), and Series E Convertible Preferred Units (“Series E preferred units”), which could have a dilutive effect on net income (loss) per share upon the vesting of the RSUs, exercise of ISOs, or conversion of the Series D or Series E preferred units (refer to Note 4 for further discussion of the Series D and the Series E preferred units). The Company calculates diluted net income (loss) per share using the treasury stock method for RSUs and ISOs and the if converted method for Series D preferred units and Series E preferred units. Other than the issuance of RSUs, ISOs, Series D preferred units, and Series E preferred units, there are no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of net income (loss). Under the terms of the Operating Partnership’s Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”). Upon the exercise of Exchange Rights, and in Centerspace’s sole discretion, it may issue common shares in exchange for Units on a one-for-one basis.

The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted net income (loss) per share reported in the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2025 and 2024.


	(in thousands, except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
NUMERATOR


Net income (loss) attributable to controlling interests	$	53,783	$	(1,048)	$	35,534	$	(6,249)
Distributions to preferred shareholders	—		(1,607)		—		(4,821)
Redemption of preferred shares	—		(3,511)		—		(3,511)
Numerator for basic income (loss) per share – net income (loss) available to common shareholders	53,783		(6,166)		35,534		(14,581)
Noncontrolling interests – Operating Partnership and Series E preferred units (1)	9,197		—		6,071		—

Distributions to Series D preferred unitholders (2)	109		—		429		—
Numerator for diluted income (loss) per share (1)	$	63,089	$	(6,166)	$	42,034	$	(14,581)

DENOMINATOR
Denominator for basic income (loss) per share weighted average shares	16,726		15,528		16,731		15,143
Effect of operating partnership units(1)	966		—		972		—
Effect of Series D preferred units(2)	155		—		204		—
Effect of Series E preferred units(1)	1,898		—		1,903		—
Effect of dilutive restricted stock units and stock options	26		—		25		—
Denominator for diluted income (loss) per share	19,771		15,528		19,835		15,143



NET INCOME (LOSS) PER COMMON SHARE – BASIC	$	3.22	$	(0.40)	$	2.12	$	(0.96)



NET INCOME (LOSS) PER COMMON SHARE – DILUTED	$	3.19	$	(0.40)	$	2.12	$	(0.96)

(1)For the three and nine months ended September 30, 2024, the impact of Units and Series E preferred units was excluded from the calculation of net income (loss) per common share - diluted as they were anti-dilutive.

(2)For the three and nine months ended September 30, 2024, distributions to Series D preferred unitholders are excluded from the calculation of net income (loss) per common share - diluted as they were anti-dilutive.

For the three months ended September 30, 2024, operating partnership units of 818,000, Series D preferred units of 228,000, as converted, Series E preferred units of 2.1 million, as converted, time-based RSUs of 49,000, and performance-based RSUs of 41,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.

For the nine months ended September 30, 2024, operating partnership units of 836,000, Series D preferred units of 228,000, as converted, Series E preferred units of 2.1 million, as converted, time-based RSUs of 32,000, and performance-based RSUs of

41,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.