Centerspace REIT (CSR) Stock Forecast & Price Target

Centerspace has achieved a record occupancy rate of 96.0% in Q2 2025, reflecting a 60 basis point increase from Q1 2025, which highlights strong demand and effective management of its apartment communities. The company is experiencing upward adjustments in core funds from operations (FFO) per share estimates for 2025 and 2026, with increases of $0.06 and $0.02, respectively, primarily attributed to higher occupancy rates. Furthermore, Centerspace's strategic focus on expanding into markets with better liquidity and long-term growth prospects could enhance its overall financial stability and growth potential moving forward.

Centerspace reported a core FFO per share of $1.21 for 1Q25, which was consistent with internal estimates but fell short of consensus by $0.01, indicating potential weakness in market expectations despite higher occupancy rates. The company’s valuation remains heavily discounted compared to peers, with concerns that this discrepancy is excessively wide, particularly given its smaller scale and concentrated exposure to Minneapolis and Denver markets, which carry unique economic risks. Additionally, Centerspace's elevated leverage and reliance on a tenant base that skews lower-income heighten vulnerability to economic pressures such as inflation, further contributing to a cautious outlook on the stock.