Centerspace Announces Outcome of Strategic Review; $245 Million of Planned Dispositions (Form 8-K)

Centerspace Announces Outcome of Strategic Review; $245 Million of Planned Dispositions

Company plans to dispose of approximately $245 million of assets in 2026, including a full exit from the Bismarck and Rapid City markets

Proceeds will be utilized to strengthen the balance sheet by significantly reducing leverage

Company declares a regular quarterly distribution of $0.77 per share/unit

MINNEAPOLIS, MN, June 1, 2026 - Centerspace (NYSE: CSR)(the "Company") announced today that the Company's Board of Trustees has, in connection with its comprehensive evaluation of strategic alternatives, approved a portfolio optimization and deleveraging plan designed to enhance portfolio quality, strengthen the balance sheet, preserve embedded shareholder value, and maximize strategic flexibility.

The Board and management engaged in a thorough process with a broad range of potential counterparties and assessed numerous alternatives. The actions announced today, subject to their completion, will strengthen the Company's balance sheet while concentrating the portfolio in higher-quality, more liquid markets. The Company believes that upon their completion the transactions will position the Company for long-term success as multifamily fundamentals continue to recover following the elevated levels of supply delivered during 2023-2025.

The plan includes approximately $240-245 million of targeted assets sales in 2026, comprising twelve communities, including a full exit from the Bismarck and Rapid City markets and one community in Denver. Each of these dispositions is under contract with buyers and the Company anticipates closing these sales in the second half of 2026.

Upon successful completion of these dispositions, the Company currently expects:

•Total debt to decrease by $175-190 million, including repayment of the Company's line of credit balance, improving both the cost and duration of debt;

•Improvement in proforma Annualized Net Debt to EBITDA, decreasing from 8.2x in Q1 2026 to an anticipated sub-7x level in Q4 2026; and

•That there may be special distributions of $45-65 million, with a declaration, if any, of exact timing and amount anticipated later in the year.

"The capital allocation initiative we are announcing today is an outcome of our review process. We expect these actions to enhance shareholder value by capturing the discount between public and private market valuations, while materially strengthening our balance sheet and positively evolving our market exposures," said Centerspace CEO Anne Olson.

"The Board undertook this process with one objective: determining the best alternatives for maximizing value for our shareholders," said Centerspace Board of Trustees Chair John Schissel. "We believe the approved plan will unlock intrinsic asset value, strengthen the balance sheet, create a more focused portfolio and preserve the flexibility to capture future value creation."

The Company's previously released earnings guidance did not contemplate any potential dispositions. While the Company's operational outlook remains materially unchanged, it is still evaluating the impact of these transactions on financial results and plans to provide updated guidance in conjunction with its second quarter 2026 earnings release.

Centerspace's Board of Trustees has declared a regular quarterly distribution of $0.77 per share/unit, payable on July 14, 2026, to common shareholders and unitholders of record at the close of business on June 29, 2026.

The closing of the transactions described above may not occur on the expected timeline, or at all. The Company cannot assure that the conditions set forth in any purchase agreement and the related transactions will be satisfied (or waived, if permitted) in a timely manner, or at all, or that an effect, event, development, or change will not transpire that could delay or prevent these transactions from closing.

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 March 31, 2026, Centerspace owned 61 apartment communities consisting of 12,263 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a Top Workplace in 2026 by USA TODAY and for the sixth consecutive year in 2025 by the Minnesota Star Tribune. For more information, please visit www.centerspacehomes.com.