Centerspace Reported Higher Q3 Blended Rent Spreads, Lower Retention, UBS Says

12:50 PM EST, 11/03/2026 (MT Newswires) -- Centerspace's (CSR) blended rent spreads improved year over year in Q3, although core funds from operations fell short of consensus estimates and same-store net operating income declined, UBS Securities said Tuesday in a note. Blended rent spreads were 1.7%, up 120 basis points from a year earlier, driven by significant improvement in both new and renewal lease spreads. However, retention declined year over year to 61.5%, according to the note. Average Q3 monthly rent growth was 2.4%, while average revenue per home increased 0.8%. These figures include the previously anticipated nearly $1 million full-year drag from Colorado RUBS regulatory changes, the note added. In Q3, Centerspace's same-store net operating income declined 2.7%, driven by flat same-store revenue and a 4.2% increase in same-store expenses. The increase included a one-time utility expense of $200,000. North Dakota and Rochester were its strongest markets in terms of same-store revenue growth, at 7.2% and 2.7%, respectively, while Denver remained weak. UBS has a neutral rating on Centerspace, with a $65 price target. The company's shares were down more than 2% in Tuesday afternoon trading. Price: 57.93, Change: -1.25, Percent Change: -2.10