Centerspace Plans $245M Asset Disposals to Cut Debt by $190M, Lower Leverage to Sub-7x
CSR•Centerspace will divest $245 million of assets in 2026—including full exits from Bismarck, Rapid City and Denver—to reduce debt by $175-190 million and lower net debt/EBITDA from 8.2x to below 7x by year-end. The REIT declared a quarterly distribution of $0.77 per share with potential $45-65 million special payouts.
1. Approved Portfolio Optimization and Dispositions
Centerspace's Board approved a strategic review outcome to sell twelve apartment communities totaling $240-245 million in 2026, including full exits from the Bismarck and Rapid City markets and one Denver property. All dispositions are under contract and expected to close in the second half of 2026, subject to customary conditions.
2. Leverage Reduction and Financial Metrics
Proceeds from the asset sales are anticipated to lower total debt by $175-190 million, fully repay the company’s line of credit and reduce cost and duration of debt. These actions should bring proforma annualized net debt/EBITDA from 8.2x in Q1 2026 to below 7x by Q4, strengthening financial flexibility.
3. Regular and Special Distribution Details
The Board declared its regular quarterly distribution of $0.77 per share/unit, payable July 14 to holders of record on June 29. Management also signaled potential special distributions totaling $45-65 million, with timing and amounts to be determined later in the year based on closing outcomes.
