CENTERSPACECSR
CENTERSPACE Debt Disclosure
DEBT
The following table summarizes the Company’s secured and unsecured debt at December 31, 2025 and December 31, 2024:
| (in thousands) | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
Carrying Amount | Weighted Average Interest Rate | Carrying Amount | Weighted Average Interest Rate | Weighted Average Maturity in Years at December 31, 2025 | |||||||||||||||||||
Lines of credit (1) | $ | 154,925 | 5.12 | % | $ | 47,359 | 5.86 | % | 2.56 | ||||||||||||||
Unsecured senior notes(2)(4) | 300,000 | 3.12 | % | 300,000 | 3.12 | % | 4.62 | ||||||||||||||||
| Unsecured debt | 454,925 | 347,359 | 3.92 | ||||||||||||||||||||
Mortgages payable - Fannie Mae credit facility(4) | 198,850 | 2.78 | % | 198,850 | 2.78 | % | 5.56 | ||||||||||||||||
Mortgages payable - other(3)(4)(5) | 400,134 | 3.88 | % | 420,414 | 4.02 | % | 11.03 | ||||||||||||||||
| Secured debt | $ | 598,984 | $ | 619,264 | 9.22 | ||||||||||||||||||
| Subtotal | $ | 1,053,909 | 3.64 | % | $ | 966,623 | 3.58 | % | 6.93 | ||||||||||||||
| Deferred financing costs, premiums, and discounts on mortgages payable, net | (32,324) | (10,758) | |||||||||||||||||||||
| Deferred financing costs on notes payable, net | (421) | (480) | |||||||||||||||||||||
| Total debt | $ | 1,021,164 | $ | 955,385 | |||||||||||||||||||
(1)Interest rates on lines of credit are variable and exclude any unused facility fees and amounts reclassified from accumulated other comprehensive income (loss) into interest expense from terminated interest rate swaps.
(2)Included within notes payable on the Consolidated Balance Sheets.
(3)Represents apartment communities encumbered by mortgages; 10 at December 31, 2025 and 15 at December 31, 2024.
(4)Interest rate is fixed.
(5)Includes mortgages payable of $76.5 million assumed as part of an acquisition discussed in Note 9 of the Notes to the Consolidated Financial Statements.
As of December 31, 2025, 44 apartment communities were not encumbered by mortgages and were available to provide credit support for the unsecured borrowings. The Company’s primary unsecured credit facility (the “Unsecured Credit Facility” or “Facility”) is a revolving, multi-bank line of credit, with Bank of Montreal serving as administrative agent. In May 2025, the Company exercised the accordion feature of the Facility, expanding the borrowing capacity by $150.0 million to $400.0 million. Prior to the exercise of the accordion feature, the line of credit had total commitments and borrowing capacity of up to $250.0 million, based on the value of unencumbered properties. As of December 31, 2025, the Company had additional borrowing availability of $246.0 million beyond the $154.0 million drawn under the Facility, priced at an interest rate of 5.12%. As of December 31, 2024, the Company had additional borrowing availability of $206.0 million beyond the $44.0 million drawn under the Facility, priced at an interest rate of 5.81%. This Facility matures in July 2028, with an option to extend maturity for up to two additional six-month periods.
The Secured Overnight Financing Rate (“SOFR”) is the benchmark alternative reference rate under the Facility. As amended, the interest rates on the line of credit are based on the consolidated leverage ratio, at the Company’s option, on either the lender’s base rate plus a margin, ranging from 20-80 basis points, or daily or term SOFR, plus a margin that ranges from 120-180 basis points with the consolidated leverage ratio described under the Third Amended and Restated Credit Agreement, as amended.
Centerspace has an operating line of credit agreement with US Bank, N.A. which has a borrowing capacity of up to $10.0 million and pricing based on SOFR. This operating line of credit terminates in September 2026 and is designed to enhance treasury management activities and more effectively manage cash balances. As of December 31, 2025 there was $925,000 outstanding on this line of credit, priced at an interest rate of 5.91%, compared to $3.4 million outstanding as of December 31, 2024, priced at an interest rate of 6.56%.
Centerspace has a private shelf agreement with PGIM, Inc., an affiliate of Prudential Financial, Inc., and certain affiliates of PGIM, Inc. (collectively, “PGIM”) under which the Company had issued $175.0 million in unsecured senior promissory notes (“Unsecured Shelf Notes”). On October 28, 2024, the shelf agreement was amended to extend the period of time during which the Company may borrow money to October 2027 and to increase the borrowing capacity to $300.0 million. The Company issued $125.0 million of senior unsecured promissory notes (“Unsecured Club Notes”, and, collectively with the Unsecured Shelf Notes, the “unsecured senior notes”) under a separate private note purchase agreement with PGIM and certain other lenders. The following table shows the notes issued under both agreements as of December 31, 2025 and 2024.
| (in thousands) | |||||||||||
| Amount | Maturity Date | Fixed Interest Rate | |||||||||
| Series A | $ | 75,000 | September 13, 2029 | 3.84 | % | ||||||
| Series B | $ | 50,000 | September 30, 2028 | 3.69 | % | ||||||
| Series C | $ | 50,000 | June 6, 2030 | 2.70 | % | ||||||
| Series 2021-A | $ | 35,000 | September 17, 2030 | 2.50 | % | ||||||
| Series 2021-B | $ | 50,000 | September 17, 2031 | 2.62 | % | ||||||
| Series 2021-C | $ | 25,000 | September 17, 2032 | 2.68 | % | ||||||
| Series 2021-D | $ | 15,000 | September 17, 2034 | 2.78 | % | ||||||
Centerspace has a $198.9 million Fannie Mae Credit Facility Agreement (“FMCF”). The FMCF is secured by mortgages on 7 and 11 apartment communities, respectively, as of December 31, 2025 and 2024. The notes are interest-only, with varying maturity dates of 7, 10, and 12 years, and a blended weighted average fixed interest rate of 2.78%. As of December 31, 2025 and 2024, the FMCF had a balance of $198.9 million. The FMCF is included within mortgages payable on the Consolidated Balance Sheets.
As of December 31, 2025, Centerspace owned 10 apartment communities that served as collateral for mortgage loans, in addition to the apartment communities secured by the FMCF. All of these mortgage loans were non-recourse to the Company other than for standard carve-out obligations. Interest rates on mortgage loans range from 2.78% to 5.04%, and the mortgage loans have varying maturity dates from June 1, 2026, through June 1, 2060. As of December 31, 2025 and 2024, the mortgage loans had a balance of $400.1 million and $420.4 million, respectively, excluding unamortized premiums and discounts. As of December 31, 2025, the Company believes there are no material defaults or instances of material noncompliance in regard to any of these mortgage loans.
The aggregate amount of required future principal payments on outstanding debt, as of December 31, 2025 is as follows:
| (in thousands) | ||||||||
| 2026 | $ | 57,432 | ||||||
| 2027 | 49,679 | |||||||
| 2028 | 268,224 | |||||||
| 2029 | 97,237 | |||||||
| 2030 | 89,159 | |||||||
| Thereafter | 492,178 | |||||||
| Total payments | $ | 1,053,909 | ||||||
| Deferred financing costs, premiums, and discounts on mortgages payable, net | (32,324) | |||||||
| Deferred financing costs on notes payable, net | (421) | |||||||
| Total | 1,021,164 | |||||||
The Company’s borrowings are subject to customary covenants and limitations. The Company believes that it was in compliance with all such covenants and limitations as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Jun 28, 2018 | |
| 2017 | Jun 28, 2017 | |
| 2016 | Jun 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.