Business UpdateJun 1, 2026, 04:30 PM
Centerspace to Sell $245M Assets, Reduce Debt by $190M
AI Summary
Centerspace announced the outcome of its strategic review, approving a portfolio optimization and deleveraging plan. The company intends to sell approximately $240-245 million of assets in 2026, including exiting the Bismarck and Rapid City markets, to strengthen its balance sheet and reduce leverage by an estimated $175-190 million. This is expected to improve pro forma Net Debt to EBITDA to below 7x by Q4 2026. Additionally, the company declared a regular quarterly distribution of $0.77 per share/unit.
Key Highlights
- Centerspace plans to sell approximately $240-245 million of assets in 2026, including a full exit from Bismarck and Rapid City markets.
- The company expects total debt to decrease by $175-190 million upon completion of asset sales.
- Pro forma Annualized Net Debt to EBITDA is expected to decrease from 8.2x in Q1 2026 to sub-7x in Q4 2026.
- Potential special distributions of $45-65 million are anticipated, with timing and amount to be determined later.
- The company declared a regular quarterly distribution of $0.77 per share/unit, payable on July 14, 2026.
- The dispositions are under contract with buyers, with anticipated closings in the second half of 2026.
Price Impact
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