NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2026

Basic net loss per share is computed by dividing net 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, Units, 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 months ended March 31, 2026 and 2025.


	(in thousands, except per share data)
	Three Months Ended March 31,
	2026		2025
NUMERATOR


Net loss attributable to controlling interests	$	(12,889)	$	(3,734)


Numerator for basic and diluted loss per share – net loss available to common shareholders(1)	(12,889)		(3,734)





DENOMINATOR
Denominator for basic and diluted loss per share weighted average shares(1)	16,775		16,727








NET LOSS PER COMMON SHARE – BASIC AND DILUTED	$	(0.77)	$	(0.22)

(1)For the three months ended March 31, 2026 and 2025, distributions to Series D preferred unitholders and the impact of Units and Series E preferred units were excluded from the calculation of net loss per common share - diluted as they were anti-dilutive.

For the three months ended March 31, 2026, weighted average operating partnership units of 914,000, Series D preferred units of 82,000, as converted, Series E preferred units of 1.9 million, as converted, time-based RSUs and options of 29,000, and performance-based RSUs of 13,000 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 three months ended March 31, 2025, weighted average operating partnership units of 980,000, Series D preferred units of 228,000, as converted, Series E preferred units of 1.9 million, as converted, time-based RSUs and options of 35,000, and performance-based RSUs of 43,000 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.