CENTERSPACECSR
CENTERSPACE Earnings Per Share Disclosure
NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares of beneficial interest (“common shares”) outstanding during the period. Centerspace has issued restricted stock units (“RSUs”) and incentive stock options (“ISOs”) under its 2015 Incentive Plan, RSUs under its 2025 Incentive Plan (as defined below), Series D Convertible Preferred Units (“Series D preferred units”), and Series E Convertible Preferred Units (“Series E preferred units”), which could have a dilutive effect on net income (loss) per share upon the vesting of the RSUs, exercise of the ISOs, or conversion of the Series D or Series E preferred units (refer to Note 4 for further discussion of the Series D and the Series E preferred units). Additionally, under the terms of the Operating Partnership’s
Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”). Upon the exercise of Exchange Rights, and in Centerspace’s sole discretion, it may issue common shares in exchange for Units on a one-for-one-basis.The Company calculates diluted net income (loss) per share using the treasury stock method for RSUs and ISOs and the if converted method for Series D preferred units and Series E preferred units. Other than the issuance of RSUs, ISOs, Units, Series D preferred units, and Series E preferred units, there are no outstanding options, warrants, convertible stock, or other contractual obligations requiring issuance of additional common shares that would result in a dilution of net income (loss).
The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted net income (loss) per share reported in the Consolidated Financial Statements for the years ended December 31, 2025, 2024, and 2023:
| (in thousands, except per share data) | ||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| NUMERATOR | ||||||||||||||||||||
| Net income (loss) attributable to controlling interests | $ | 17,101 | $ | (11,328) | $ | 41,325 | ||||||||||||||
| Distributions to Series C preferred shareholders | — | (4,821) | (6,428) | |||||||||||||||||
| Redemption of Series C preferred shares | — | (3,511) | — | |||||||||||||||||
| Numerator for basic income (loss) per share – net income (loss) available to common shareholders | 17,101 | (19,660) | 34,897 | |||||||||||||||||
Noncontrolling interests – Operating Partnership and Series E preferred units(1) | — | — | 4,877 | |||||||||||||||||
| Numerator for diluted income (loss) per share | $ | 17,101 | $ | (19,660) | $ | 39,774 | ||||||||||||||
| DENOMINATOR | ||||||||||||||||||||
| Denominator for basic income (loss) per share weighted average shares | 16,728 | 15,504 | 14,994 | |||||||||||||||||
Effect of Series E preferred units(1) | — | — | 2,100 | |||||||||||||||||
| Effect of diluted restricted stock awards and restricted stock units | 47 | — | 24 | |||||||||||||||||
| Denominator for diluted income (loss) per share | 16,775 | 15,504 | 17,118 | |||||||||||||||||
| NET INCOME (LOSS) PER COMMON SHARE – BASIC | $ | 1.02 | $ | (1.27) | $ | 2.33 | ||||||||||||||
| NET INCOME (LOSS) PER COMMON SHARE – DILUTED | $ | 1.02 | $ | (1.27) | $ | 2.32 | ||||||||||||||
(1)For the years ended December 31, 2025, 2024, and 2023, the impact of Units was excluded from the calculation of net income (loss) per common share - diluted as they were anti-dilutive. For the years ended December 31, 2025 and 2024, the impact of Series E preferred units was excluded from the calculation of net income (loss) per common share - diluted as they were anti-dilutive.
For the year ended December 31, 2025, operating partnership units of 966,000, weighted average Series D preferred units of 173,000, as converted, and Series E preferred units of 1.9 million, as converted, were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net income per share.
For the year ended December 31, 2024, operating partnership units of 870,000, Series D preferred units of 228,000, as converted, Series E preferred units of 2.1 million, as converted, time-based RSUs and options of 24,000, and performance-based RSUs of 31,000 were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net loss per share.
For the year ended December 31, 2023, operating partnership units of 925,000 and Series D preferred Units of 228,000, as converted, were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive as including these items would have improved net income per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 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 Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.