Three Months Ended December 31,
			
			 
			
			Twelve Months Ended December 31,
			
		
		
			
			Per Share
			
			 
			
			2020
			
			 
			
			2019
			
			 
			
			2020
			
			 
			
			2019
			
		
		
			
			Earnings (loss) per share - diluted
			
			 
			
			$
			
			
			(0.46)
			
			 
			 
			
			$
			
			
			3.95
			
			 
			 
			
			$
			
			
			(0.15)
			
			 
			 
			
			$
			
			
			6.00
			
			 
		
		
			
			FFO - diluted
			
			 
			
			0.97
			
			 
			 
			
			0.90
			
			 
			 
			
			3.47
			
			 
			 
			
			4.05
			
			 
		
		
			
			Core FFO - diluted
			
			 
			
			1.02
			
			 
			 
			
			0.96
			
			 
			 
			
			3.78
			
			 
			 
			
			3.72
			
			 
		
	









	
		
			 
			 
			
			Year-Over-Year
			Comparison
			
			 
			
			Sequential
			Comparison
			
			 
			
			YTD
			Comparison
			
		
		
			
			Same-Store Results
			
			 
			
			4Q20 vs 4Q19
			
			 
			
			4Q20 vs. 3Q20
			
			 
			
			CY20 vs. CY19
			
		
		
			
			Revenues
			
			 
			
			2.3
			
			
			%
			
			 
			
			1.4
			
			
			%
			
			 
			
			2.1
			
			
			%
			
		
		
			
			Expenses
			
			 
			
			(0.4)
			
			
			%
			
			 
			
			(5.1)
			
			
			%
			
			 
			
			2.6
			
			
			%
			
		
		
			
			Net Operating Income ("NOI")
			
			 
			
			4.2
			
			
			%
			
			 
			
			6.3
			
			
			%
			
			 
			
			1.8
			
			
			%
			
		
	









	
		
			 
			 
			
			Three months ended
			
			 
			
			Twelve months ended
			
		
		
			
			Same-Store Results
			
			 
			
			December 31,
			2020September 30,
			2020December 31,
			2019December 31,
			2020December 31,
			2019
			
		
		
			
			Weighted Average Occupancy
			
			 
			
			95.0
			
			
			%
			
			 
			
			94.4
			
			
			%
			
			 
			
			94.0
			
			
			%
			
			 
			
			94.8
			
			
			%
			
			 
			
			94.4
			
			
			%
			
		
		
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
		
	









	
		
			 
			 
		
		
			
			(1)
			
			
			Net operating income, Funds from Operations, 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 below.

Highlights for the Year Ended December 31, 2020

Rebranded the Company as Centerspace in December 2020 to reflect both the transformation of the company and its vision for the future;

Net Loss was $(0.15) per diluted share for the year ended December 31, 2020, compared to Net Income of $6.00 per diluted share for the year ended December 31, 2019;

Core FFO increased to $3.78 per diluted share compared to $3.72 for the year ended December 31, 2019;

Total collections for the year ended December 31, 2020 were 99.1% of expected residential revenue compared to 99.6% for the year ended December 31, 2019 while total collections for the quarter ended December 31, 2020 were 98.6% compared to 99.7% for the same period of 2019;

Same-store revenue increased 2.1% driven by 1.7% growth in rental revenue and 0.4% increase in occupancy;

Same-store operating expenses increased 2.6% year-over-year with a decline of 2.9% in same-store controllable expenses, offset by a increase of 13.6% in same-store non-controllable expenses;

Same-store NOI growth of 1.8% for the year ended December 31, 2020;

Acquired two new apartment communities in key growth markets of Minneapolis and Denver in the first and third quarter of 2020 consisting of 647 homes for an aggregate purchase price of $191.0 million;

Funded $18.5 million of mezzanine/construction loans;

Acquired the remaining noncontrolling interest in 71 France in the first quarter of 2020;

Sold four apartment communities consisting of 690 homes in Grand Forks, North Dakota for an aggregate sale price of $42.5 million in the third quarter of 2020;

Announced Nashville as one of our target markets in June 2020;

Maintained an annual dividend of $2.80 per share to common shareholders and unitholders;

Continued to strengthen the balance sheet by issuing 829,000 common shares at an average price of $71.39 per share for total consideration, net of commissions and issuance costs, of approximately $59.2 million in the year ended December 31, 2020; and

Repurchased and retired approximately 237,000 of our 6.625% Series C preferred shares for an aggregate cost of $5.6 million or an average share price of $23.75.

Subsequent Events

Subsequent to December 31, 2020, Centerspace acquired Union Pointe Apartment Homes in Longmont, Colorado for an aggregate purchase price of $76.9 million. The company also issued $50.0 million of 2.7% unsecured Series C notes, due June 6, 2030. In concert with this issuance, Centerspace amended and expanded its Note Purchase Private Shelf Agreement (the "Agreement") with Prudential to increase the aggregate amount available under the Agreement from $150.0 million to $225.0 million. After the issuance of Series C notes, the company has $50.0 million remaining under the Agreement, which is excluded for purposes of reporting liquidity.

Balance Sheet

At December 31, 2020, Centerspace had $97.5 million of total liquidity on its balance sheet, including $97.1 million available on its lines of credit.

2021 Financial Overview

Centerspace is providing the following guidance for its 2021 calendar year performance.

			2021 Calendar Year Financial Outlook
			
		
		
			 
			 
			 
			
			Range for 2021
			
		
		
			 
			
			2020 Actual
			
			 
			
			Low
			
			 
			
			High
			
		
		
			
			Earnings per Share - diluted
			
			
			$
			
			
			(0.15)
			
			 
			 
			
			$
			
			
			(0.18)
			
			 
			 
			
			$
			
			
			0.45
			
			 
		
		
			
			FFO per Share - diluted
			
			
			$
			
			
			3.47
			
			 
			 
			
			$
			
			
			3.17
			
			 
			 
			
			$
			
			
			3.52
			
			 
		
		
			
			Core FFO per Share - diluted
			
			
			$
			
			
			3.78
			
			 
			 
			
			$
			
			
			3.29
			
			 
			 
			
			$
			
			
			3.62
			
			 
		
	





Additional assumptions:

Same-store capital expenditures of $912 per home to $1,012 per home

Value-add expenditures of $15.0 million to $20.0 million

Investments of $145.0 million to $170.0 million, which includes the January 2021 acquisition of Union Pointe in Longmont, Colorado

Dispositions of $55.0 million to $75.0 million

Proceeds of $50.0 million to $70.0 million from equity issuance

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, please refer to "2021 Financial Outlook" in the Supplemental Financial and Operating Data below.

COVID-19 Developments

The COVID-19 pandemic, including the associated economic disruptions, has continued to impact business and operations since March 2020. The company continues to prioritize the health and well-being of its residents, team members, and the communities it serves.

A discussion of the ongoing and potential effects of the COVID-19 pandemic on financial condition, results of operations, and cash flows can be found in "Management's Discussion and Analysis of Financial Conditions and Results of Operations" presented in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021. For a more detailed description of the risks and uncertainties affecting business, see the risk factors presented in Item 1A in the company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 22, 2021.

Upcoming Events

Centerspace is scheduled to participate in the Raymond James & Associates' 42nd Annual Institutional Investors Conference, which will be held virtually on March 1-3, 2021.

• Centerspace