Centerspace (NYSE:CSR) Announces Quarterly Earnings Results

Key Points

• Centerspace missed earnings: the company reported GAAP EPS of ($0.77) vs. a ($0.29) consensus (a $0.48 miss) and revenue of $65.07M, slightly below the $66.54M estimate.
• Generous but unsustainable dividend: Centerspace paid a $0.77 quarterly dividend (annualized $3.08) for a 4.5% yield, but the dividend payout ratio is an elevated 308%, signalling potential sustainability concerns.
• Stock and analyst backdrop: shares traded up to $68.85 (market cap ~$1.16B) with a high forward PE (~68.9) while analysts average a "Hold" rating and a target near $68.83, reflecting mixed sentiment on valuation and outlook.

Centerspace (NYSE:CSR - Get Free Report) issued its quarterly earnings data on Monday. The company reported ($0.77) earnings per share for the quarter, missing the consensus estimate of ($0.29) by ($0.48), FiscalAI reports. Centerspace had a net margin of 6.25% and a return on equity of 2.00%. The company had revenue of $65.07 million during the quarter, compared to the consensus estimate of $66.54 million.

Centerspace Stock Up 0.7%

NYSE:CSR traded up $0.47 on Monday, hitting $68.85. The stock had a trading volume of 92,600 shares, compared to its average volume of 128,070. The business's fifty day moving average is $62.05 and its 200 day moving average is $63.41. The company has a market cap of $1.16 billion, a PE ratio of 68.85 and a beta of 0.89. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.86. Centerspace has a 52 week low of $52.76 and a 52 week high of $69.61.

Centerspace Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Monday, March 30th were issued a $0.77 dividend. The ex-dividend date was Monday, March 30th. This represents a $3.08 annualized dividend and a yield of 4.5%. Centerspace's dividend payout ratio is presently 308.00%.

Analysts Set New Price Targets

A number of research firms have commented on CSR. Wells Fargo & Company lowered their price objective on Centerspace from $74.00 to $69.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 5th. UBS Group upped their price objective on shares of Centerspace from $63.00 to $66.00 and gave the stock a "neutral" rating in a research report on Thursday, January 8th. Wall Street Zen raised Centerspace from a "strong sell" rating to a "sell" rating in a research note on Saturday, April 11th. Cantor Fitzgerald reiterated a "neutral" rating and issued a $65.00 price target on shares of Centerspace in a research report on Monday, January 5th. Finally, Royal Bank Of Canada upped their price objective on shares of Centerspace from $68.00 to $72.00 and gave the company an "outperform" rating in a research note on Thursday, February 19th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $68.83.

Institutional Trading of Centerspace

Several hedge funds have recently bought and sold shares of the business. Van ECK Associates Corp lifted its stake in shares of Centerspace by 9.8% in the fourth quarter. Van ECK Associates Corp now owns 4,504 shares of the company's stock valued at $301,000 after buying an additional 403 shares in the last quarter. Captrust Financial Advisors lifted its stake in shares of Centerspace by 4.9% in the fourth quarter. Captrust Financial Advisors now owns 4,348 shares of the company's stock valued at $290,000 after buying an additional 202 shares in the last quarter. Engineers Gate Manager LP lifted its stake in shares of Centerspace by 6.4% in the fourth quarter. Engineers Gate Manager LP now owns 4,091 shares of the company's stock valued at $273,000 after buying an additional 246 shares in the last quarter. Abel Hall LLC bought a new position in shares of Centerspace in the third quarter valued at $260,000. Finally, Boothbay Fund Management LLC bought a new position in shares of Centerspace in the third quarter valued at $247,000. Institutional investors and hedge funds own 79.00% of the company's stock.

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.

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