Raymond James has upgraded Centerspace (CSR) from “Outperform” to “Strong Buy,” with a revised price target of \$69. The decision reflects renewed confidence in the company’s operational strength and regional focus, particularly in stable and growing Midwest markets like Minneapolis and Denver.
The upgrade follows encouraging performance metrics. Centerspace posted a 2.1% year-over-year increase in same-store net operating income, alongside a 3.5% rise in same-store revenue. Occupancy improved to 95.8%, and blended leasing spreads widened by 70 basis points, signaling robust tenant demand and effective pricing strategies.
The firm maintains solid financial footing with over \$223 million in liquidity and a manageable debt profile. Its average debt cost sits at 3.6%, offering flexibility in a fluctuating interest rate environment. These factors combine to give Centerspace the stability and agility needed to navigate market cycles while still delivering consistent performance.
💰 On the dividend side, Centerspace offers a compelling yield of approximately 4.79%, supported by an annual payout of \$3.02 per share. The dividend payout ratio stands at about 54.21%, striking a healthy balance between income distribution and capital retention for growth. Investors looking for reliable income with potential upside in real estate may find CSR particularly attractive after this upgrade.