Raymond James has upgraded Centerspace (CSR) from “Market Perform” to “Outperform,” setting a price target of $66. This move reflects renewed confidence in the company’s fundamentals, driven by noticeable improvements in rent growth across key markets like Denver and Minneapolis. Year-over-year lease growth is accelerating, and occupancy remains solid at 95.3%, signaling strong demand and efficient property management.
🏢 With a portfolio focused on the Midwest and select secondary markets, Centerspace is benefitting from tightening supply and resilient demand. These markets are showing signs of rental strength without the overhang of excessive new developments, creating a favorable operating environment. Analysts now view CSR as undervalued given the stability in earnings and the improving market backdrop.
💰 Centerspace offers a forward dividend yield of approximately 5.3%, translating to an annual dividend of $3.08 per share. Dividends are distributed quarterly, with a recent ex-dividend date of March 28, 2025, and the next payment scheduled for April 8, 2025. This consistent income stream adds a layer of security for investors looking for reliable cash flow in a REIT.
📉 Although the stock has declined 11.4% year-to-date, this dip presents a buying opportunity. The upgrade suggests Raymond James expects a reversal as macro conditions and localized rental trends turn in CSR’s favor. The stock’s current price level offers a compelling entry point for value and income seekers alike.
🧩 Overall, the upgrade of Centerspace reflects a combination of strengthening rent fundamentals, high occupancy, and a strong dividend profile. Investors looking for a steady income generator with improving prospects may find CSR a timely addition to their portfolios.