CENTERSPACE

Previous wording

The following discussion and analysis should be read in conjunction with the unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the “Report”), the audited financial statements for the year ended December 31, 2024, which are included in our Annual Report on Form 10-K filed with the SEC on February 18, 2025, and the risk factors in Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

The following discussion and analysis should be read in conjunction with the unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the “Report”), the audited financial statements for the year ended December 31, 2024, which are included in our Annual Report on Form 10-K filed with the SEC on February 18, 2025, and the risk factors in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2024 and in Part II, Item 1A, “Risk Factors,” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 1, 2025.

Previous wording

•failure to reinvest proceeds from sales of properties into tax-deferred exchanges, which could necessitate special dividend and/or tax protection payments;

Current wording

•failure to reinvest proceeds from sales of properties into tax-deferred exchanges, which could necessitate special distribution and/or tax protection payments;

Previous wording

•inability to pay, or need to reduce, dividends on our common shares;

Current wording

•inability to pay, or need to reduce, distributions on our common shares;

Previous wording

We are a real estate investment trust, or REIT, that owns, manages, acquires, redevelops, and develops apartment communities. We primarily focus on investing in markets characterized by stable and growing economies, strong employment, and an attractive quality of life that we believe, in combination, lead to higher demand for apartment homes and retention of our residents. As of June 30, 2025, we owned interests in 72 apartment communities consisting of 13,353 apartment homes. Property owned, as presented in our Condensed Consolidated Balance Sheets at historical cost and excluding assets held for sale, was $2.4 billion at June 30, 2025 and $2.5 billion December 31, 2024.

Current wording

We are a real estate investment trust, or REIT, that owns, manages, acquires, redevelops, and develops apartment communities. We primarily focus on investing in markets characterized by stable and growing economies, strong employment, and an attractive quality of life that we believe, in combination, lead to higher demand for apartment homes and retention of our residents. As of September 30, 2025, we owned interests in 68 apartment communities consisting of 12,941 apartment homes. Property owned, as presented in our Condensed Consolidated Balance Sheets at historical cost and excluding assets held for sale, was $2.5 billion at September 30, 2025 and December 31, 2024.

Previous wording

•For the three months ended June 30, 2025, revenue increased by $3.5 million or 5.4% to $68.5 million, compared to $65.0 million for the three months ended June 30, 2024, primarily due to increased revenue from same-store and non-same-store communities.

Current wording

•For the three months ended September 30, 2025, revenue increased by $6.4 million or 9.8% to $71.4 million, compared to $65.0 million for the three months ended September 30, 2024, primarily due to increased revenue from same-store and non-same-store communities.

Previous wording

•Same-store revenues increased by 2.7% for the three months ended June 30, 2025, compared to the same period of the prior year, driving a 2.9% increase in same-store NOI compared to the same period of the prior year.

Current wording

•Same-store revenues increased by 2.4% for the three months ended September 30, 2025, compared to the same period of the prior year, driving a 4.5% increase in same-store NOI compared to the same period of the prior year.

Previous wording

•Net loss was $0.87 per diluted share for the three months ended June 30, 2025, compared to net loss of $0.19 per diluted share for the same period of the prior year.

Current wording

•Net income was $3.19 per diluted share for the three months ended September 30, 2025, compared to net loss of $0.40 per diluted share for the same period of the prior year.

Previous wording

•Non-GAAP Core Funds from Operations (“Core FFO”) per diluted share increased to $1.28 for the three months ended June 30, 2025, compared to $1.27 for the three months ended June 30, 2024. See the description of Core FFO on pages 33 and 34 and the reconciliation of net loss available to common shareholders to FFO and Core FFO on page 35. This increase was primarily due to dividends to preferred shareholders that occurred in the prior year that did not occur in the same period of the current year along with increased NOI, offset by increased interest expense. The drivers of these changes are discussed in more detail in the “Results of Operations” section below.

Current wording

•Non-GAAP Core Funds from Operations (“Core FFO”) per diluted share increased to $1.19 for the three months ended September 30, 2025, compared to $1.18 for the three months ended September 30, 2024. See the description of Core FFO on pages 35 and 36 and the reconciliation of net income (loss) available to common shareholders to FFO and Core FFO on page 37. This increase was primarily due to increased NOI along with distributions to preferred shareholders that occurred in the prior year that did not occur in the same period of the current year, offset by increased interest expense and general and administrative expense. The drivers of these changes are discussed in more detail in the “Results of Operations” section below.

Previous wording

Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total real estate revenues less property operating expenses, including real estate taxes and is reconciled to operating income (loss) below. We believe that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by sales of real estate and other investments, impairment, depreciation, amortization, financing costs, property management expenses, casualty gains (losses), loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.

Current wording

Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total real estate revenues less property operating expenses, including real estate taxes and is reconciled to operating income below. We believe that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by sales of real estate and other investments, impairment, depreciation, amortization, financing costs, property management expenses, casualty gains (losses), loss on litigation settlement, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income (loss), net income (loss) available for common shareholders, or cash flow from operating activities as a measure of financial performance.

Previous wording

For the comparison of the six months ended June 30, 2025 and 2024, three apartment communities and one apartment community, respectively, were non-same-store. Sold communities and communities designated as held for sale are included in “Held for sale and dispositions,” for all periods presented, while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties. For the six months ended June 30, 2025 and 2024, 12 apartment communities were designated as held for sale and included in “Held for sale and dispositions.” During the six months ended June 30, 2024, we disposed of two apartment communities, consisting of 205 apartment homes.

Current wording

For the comparison of the nine months ended September 30, 2025 and 2024, four apartment communities and one apartment community, respectively, were non-same-store. Sold communities and communities designated as held for sale are included in “Held for sale and dispositions,” for all periods presented, while “Other properties” includes non-multifamily properties and the non-multifamily components of mixed-use properties. For the nine months ended September 30, 2025 and 2024, seven apartment communities were designated as held for sale and included in “Held for sale and dispositions.” During the three and nine months ended September 30, 2025, we disposed of five apartment communities, consisting of 832 apartment homes. During the nine months ended September 30, 2024, we disposed of two apartment communities, consisting of 205 apartment homes.

Previous wording

Reconciliation of Operating Income (Loss) to Net Operating Income (non-GAAP)

Current wording

Reconciliation of Operating Income to Net Operating Income (non-GAAP)

Previous wording

The following table provides a reconciliation of operating income (loss) to NOI (non-GAAP), which is defined above.

Current wording

The following table provides a reconciliation of operating income to NOI (non-GAAP), which is defined above.

Previous wording

The following consolidated results of operations, including GAAP and non-GAAP metrics, cover the three and six months ended June 30, 2025 and 2024.

Current wording

The following consolidated results of operations, including GAAP and non-GAAP metrics, cover the three and nine months ended September 30, 2025 and 2024.

Previous wording

Same-store analysis. Revenue from same-store communities increased 2.7%, or $1.5 million, in the three months ended June 30, 2025, compared to the same period in the prior year. The increase was attributable to 2.1% growth in average monthly revenue per occupied home for the three months ended June 30, 2025 and an increase of 0.6% in occupancy as weighted average occupancy increased from 95.5% for the three months ended June 30, 2024 to 96.1% for the three months ended June 30, 2025. Property operating expenses, including real estate taxes, at same-store communities increased by 2.4% or $517,000 in the three months ended June 30, 2025, compared to the same period in the prior year. At same-store communities, controllable expenses (which exclude insurance and real estate taxes) increased by $418,000, primarily due to an increase in compensation and utilities. Non-controllable expenses at same-store communities increased by $99,000, due to real estate taxes and offset by a decrease in insurance-related costs. Same-store NOI increased by $1.0 million to $36.2 million for the three months ended June 30, 2025, compared to $35.2 million in the same period of the prior year.

Current wording

Same-store analysis. Revenue from same-store communities increased 2.4%, or $1.4 million, in the three months ended September 30, 2025, compared to the same period in the prior year. The increase was attributable to 2.2% growth in average monthly revenue per occupied home for the three months ended September 30, 2025 and an increase of 0.2% in occupancy as weighted average occupancy increased from 95.6% for the three months ended September 30, 2024 to 95.8% for the three months ended September 30, 2025. Property operating expenses, including real estate taxes, at same-store communities decreased by 0.8% or $179,000 in the three months ended September 30, 2025, compared to the same period in the prior year. At same-store communities, controllable expenses (which exclude insurance and real estate taxes) increased by $477,000, primarily due to an increase in repairs and maintenance, compensation, and utilities. Non-controllable expenses at same-store communities decreased by $656,000, due to real estate taxes and insurance-related costs. Same-store NOI increased by $1.5 million to $35.5 million for the three months ended September 30, 2025, compared to $34.0 million in the same period of the prior year.

Previous wording

Revenue from same-store communities increased 3.1%, or $3.5 million, in the six months ended June 30, 2025, compared to the same period in the prior year. The increase was attributable to 2.2% growth in average monthly revenue per occupied home for the six months ended June 30, 2025 and an increase of 0.9% in occupancy as weighted average occupancy increased from 95.1% for the six months ended June 30, 2024 to 96.0% for the six months ended June 30, 2025. Property operating expenses, including real estate taxes, at same-store communities increased by 4.4% or $1.8 million in the six months ended June 30, 2025, compared to the same period in the prior year. At same-store communities, controllable expenses (which exclude insurance and real estate taxes) increased by $706,000, primarily due to an increase in utilities and compensation. Non-controllable expenses at same-store communities increased by $1.1 million, due to real estate taxes and offset by a decrease in insurance-related costs. Same-store NOI increased by $1.6 million to $71.5 million for the six months ended June 30, 2025, compared to $69.8 million in the same period of the prior year.

Current wording

Revenue from same-store communities increased 2.8%, or $4.8 million, in the nine months ended September 30, 2025, compared to the same period in the prior year. The increase was attributable to 2.2% growth in average monthly revenue per occupied home for the nine months ended September 30, 2025 and an increase of 0.6% in occupancy as weighted average occupancy increased from 95.3% for the nine months ended September 30, 2024 to 95.9% for the nine months ended September 30, 2025. Property operating expenses, including real estate taxes, at same-store communities increased by 2.6% or $1.7 million in the nine months ended September 30, 2025, compared to the same period in the prior year. At same-store communities, controllable expenses (which exclude insurance and real estate taxes) increased by $1.2 million, primarily due to an increase in utilities and compensation. Non-controllable expenses at same-store communities increased by $483,000, due to real estate taxes and offset by a decrease in insurance-related costs. Same-store NOI increased by $3.1 million to $107.0 million for the nine months ended September 30, 2025, compared to $103.8 million in the same period of the prior year.

Previous wording

Non-same-store analysis. Revenue from non-same-store communities increased by $1.4 million in the three months ended June 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes at non-same-store communities increased by $676,000. NOI at non-same-store communities increased by $763,000 for the three months ended June 30, 2025, compared to the same period of the prior year. The increase in revenue, property operating expenses, and NOI from non-same-store communities is due to the addition of two apartment communities, one during the fourth quarter of the prior year and the second during the second quarter of the current year, offset by a $214,000 decrease in NOI from repositioning a community by making full unit upgrades, resulting in lower occupancy and requiring relocation of residents.

Current wording

Non-same-store analysis. Revenue from non-same-store communities increased by $4.6 million in the three months ended September 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes at non-same-store communities increased by $1.9 million. NOI at non-same-store communities increased by $2.6 million for the three months ended September 30, 2025, compared to the same period of the prior year. The increase in revenue, property operating expenses, and NOI from non-same-store communities is due to the addition of three apartment communities, one during the fourth quarter of the prior year, one during the second quarter of the current year, and one in the third quarter of the current year, offset by a $334,000 decrease in NOI from repositioning a community by making full unit upgrades, resulting in lower occupancy and requiring relocation of residents.

Previous wording

Revenue from non-same-store communities increased by $2.2 million in the six months ended June 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes at non-same-store communities increased by $1.1 million. NOI at non-same-store communities increased by $1.1 million for the six months ended June 30, 2025, compared to the same period of the prior year. The increase in revenue, property operating expenses, and NOI from non-same-store communities is due to the addition of two apartment communities, one during the fourth quarter of the prior year and the second during the second quarter of the current year, offset by a $318,000 decrease in NOI from repositioning a community by making full unit upgrades, resulting in lower occupancy and requiring relocation of residents.

Current wording

Revenue from non-same-store communities increased by $6.8 million in the nine months ended September 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes at non-same-store communities increased by $3.0 million. NOI at non-same-store communities increased by $3.7 million for the nine months ended September 30, 2025, compared to the same period of the prior year. The increase in revenue, property operating expenses, and NOI from non-same-store communities is due to the addition of three apartment communities, one during the fourth quarter of the prior year, one during the second quarter of the current year, and one during the third quarter of the current year, offset by a $651,000 decrease in NOI from repositioning a community by making full unit upgrades, resulting in lower occupancy and requiring relocation of residents.

Previous wording

Other properties analysis. Revenue from other properties, which encompasses our commercial and mixed-use activity, increased by $246,000 in the three months ended June 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, at other properties increased by $13,000, compared to the same period in the prior year. NOI at other properties increased by $233,000, compared to the same period in the prior year. The increase in revenue, property operating expense, and NOI on other properties is due to the addition of an apartment community with commercial space during the fourth quarter of the prior year.

Current wording

Other properties analysis. Revenue from other properties, which encompasses our commercial and mixed-use activity, increased by $361,000 in the three months ended September 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, at other properties increased by $66,000, compared to the same period in the prior year. NOI at other properties increased by $295,000, compared to the same period in the prior year. The increase in revenue, property operating expense, and NOI on other properties is due to the addition of an apartment community with commercial space during the fourth quarter of the prior year.

Previous wording

Revenue from other properties, which encompasses our commercial and mixed-use activity, increased by $456,000 in the six months ended June 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, at other properties increased by $170,000, compared to the same period in the prior year. NOI at other properties increased by $286,000, compared to the same period in the prior year. The increase in revenue, property operating expense, and NOI on other properties is due to the addition of an apartment community with commercial space during the fourth quarter of the prior year

Current wording

Revenue from other properties, which encompasses our commercial and mixed-use activity, increased by $817,000 in the nine months ended September 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, at other properties increased by $235,000, compared to the same period in the prior year. NOI at other properties increased by $582,000, compared to the same period in the prior year. The increase in revenue, property operating expense, and NOI on other properties is due to the addition of an apartment community with commercial space during the fourth quarter of the prior year.

Previous wording

Held for sale and dispositions analysis. Revenue from held for sale and dispositions increased by $282,000 in the three months ended June 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, increased by $136,000 on held for sale and dispositions, compared to the same period in the prior year. NOI on held for sale and dispositions increased $146,000, compared to the same period in the prior year. We disposed of two apartment communities in the first quarter of 2024 and classified 12 properties as held for sale during the second quarter of 2025.

Current wording

Held for sale and dispositions analysis. Revenue from held for sale and dispositions increased by $88,000 in the three months ended September 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, decreased by $93,000 on held for sale and dispositions, compared to the same period in the prior year. NOI on held for sale and dispositions increased $181,000, compared to the same period in the prior year. We disposed of two apartment communities in the first quarter of 2024, disposed of five apartment communities during the third quarter of 2025, and had seven apartment communities classified as held for sale as of September 30, 2025.

Previous wording

Revenue from held for sale and dispositions increased by $1,000 in the six months ended June 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, on held for sale and dispositions decreased by $139,000, compared to the same period in the prior year. NOI on held for sale and dispositions increased $140,000, compared to the same period in the prior year. We disposed of two apartment communities in the first quarter of 2024 and classified 12 properties as held for sale during the second quarter of 2025.

Current wording

Revenue from held for sale and dispositions increased by $89,000 in the nine months ended September 30, 2025, compared to the same period in the prior year. Property operating expenses, including real estate taxes, on held for sale and dispositions decreased by $233,000, compared to the same period in the prior year. NOI on held for sale and dispositions increased $322,000, compared to the same period in the prior year. We disposed of two apartment communities in the first quarter of 2024, disposed of five apartment communities during the third quarter of 2025, and had seven apartment communities classified as held for sale as of September 30, 2025.

Previous wording

Property management expenses. Property management expenses, consisting of property management overhead and property management fees paid to third parties, increased by 7.7% to $2.4 million in the three months ended June 30, 2025, compared to $2.2 million in the same period of the prior year. The increase was primarily due to higher compensation related costs compared to the same period of the prior year and fees paid to third parties for management of an apartment community we acquired in the second quarter of 2025.

Current wording

Property management expenses. Property management expenses, consisting of property management overhead and property management fees paid to third parties, increased by 11.0% to $2.5 million in the three months ended September 30, 2025, compared to $2.2 million in the same period of the prior year. The increase was primarily due to higher compensation related costs compared to the same period of the prior year and fees paid to third parties for management of an apartment community we acquired in the second quarter of 2025.

Previous wording

Property management expense, consisting of property management overhead and property management fees paid to third parties, increased by 6.0% to $4.8 million in the six months ended June 30, 2025, compared to $4.6 million in the same period of the prior year. The increase was primarily due to higher compensation costs resulting from new positions and increased pay rates compared to the same period of the prior year, along with fees paid to third parties for management of an apartment community we acquired in the second quarter of 2025.

Current wording

Property management expense, consisting of property management overhead and property management fees paid to third parties, increased by 7.7% to $7.3 million in the nine months ended September 30, 2025, compared to $6.8 million in the same period of the prior year. The increase was primarily due to higher compensation costs resulting from new positions and increased pay rates compared to the same period of the prior year, along with fees paid to third parties for management of an apartment community we acquired in the second quarter of 2025.

Previous wording

Casualty loss. Casualty loss was $399,000 in the three months ended June 30, 2025, compared to $510,000 in the same period of the prior year. The decrease is primarily due to fewer large loss claims activity in the current period compared to the same period of the prior year. See Note 2 of the Notes to the Condensed Consolidated Financial Statements in the report for more details.

Current wording

Casualty gain (loss). Casualty loss was $127,000 in the three months ended September 30, 2025, compared to a gain of $412,000 in the same period of the prior year. The increase is primarily due to claim activity in the prior year with losses in excess of our deductibles resulting in estimated recoveries compared to fewer large loss claims in excess of our deductibles and fewer recoveries in the current period. See Note 2 of the Notes to the Condensed Consolidated Financial Statements in the report for more details.

Previous wording

Casualty loss was $931,000 in the six months ended June 30, 2025, compared to $1.3 million in the same period of the prior year. The decrease is primarily due to fewer large loss claims activity in the current period compared to the same period of the prior year. See Note 2 of the Notes to the Condensed Consolidated Financial Statements in the report for more details.

Current wording

Casualty loss was $1.1 million in the nine months ended September 30, 2025, compared to $918,000 in the same period of the prior year. The increase is primarily due to claim activity in the prior year with losses in excess of our deductibles resulting in estimated recoveries compared to fewer large loss claims in excess of our deductibles and fewer recoveries in the current period. See Note 2 of the Notes to the Condensed Consolidated Financial Statements in the report for more details.

Previous wording

Depreciation and amortization. Depreciation and amortization increased by 5.4% to $27.1 million in the three months ended June 30, 2025, compared to $25.7 million in the same period of the prior year, primarily attributable to an increase in depreciation on apartment communities driven by the addition of two apartment communities, one in the fourth quarter of the prior year and one in the second quarter on the current year, along with value add and acquisition capital projects and amortization of in-place leases.

Current wording

Depreciation and amortization. Depreciation and amortization increased by 11.4% to $29.1 million in the three months ended September 30, 2025, compared to $26.1 million in the same period of the prior year, primarily attributable to an increase in depreciation on apartment communities driven by the addition of three apartment communities, one in the fourth quarter of the prior year, one during the second quarter of the current year, and one in the third quarter of the current year, along with value add and acquisition capital projects and amortization of in-place leases, offset by a decrease in depreciation from held for sale and sold communities.

Previous wording

Depreciation and amortization increased by 3.8% to $54.8 million in the six months ended June 30, 2025, compared to $52.7 million in the same period of the prior year, primarily attributable to an increase in depreciation on apartment communities driven by the addition of two apartment communities, one in the fourth quarter of the prior year and one in the second quarter of the current year, along with value add and acquisition capital projects.

Current wording

Depreciation and amortization increased by 6.3% to $83.8 million in the nine months ended September 30, 2025, compared to $78.8 million in the same period of the prior year, primarily attributable to an increase in depreciation on apartment communities driven by the addition of three apartment communities, one in the fourth quarter of the prior year, one during the second quarter of the current year, and one in the third quarter of the current year, along with value add and acquisition capital projects, offset by a decrease in depreciation from held for sale and sold communities.

Previous wording

Impairment of real estate investments. Impairment of real estate investments was $14.5 million in the three and six months ended June 30, 2025. The impairment was the result of five apartment communities that were written down to estimated fair value in connection with their reclassification to assets held for sale.

Current wording

Impairment of real estate investments. Impairment of real estate investments was $8.7 million and $23.2 million in the three and nine months ended September 30, 2025, respectively. The impairment was the result of six apartment communities that were written down to estimated fair value in connection with updated market offers on these held for sale assets.

Previous wording

General and administrative expenses. General and administrative expenses increased by $166,000 to $4.4 million in the three months ended June 30, 2025, compared to $4.2 million in the same period of the prior year. The increase was primarily due to increased compensation costs from higher share-based compensation and other compensation related costs and legal fees, offset by a decrease in consulting fees in the three months ended June 30, 2025, compared to the same period of the prior year.

Current wording

General and administrative expenses. General and administrative expenses increased by $895,000 to $5.0 million in the three months ended September 30, 2025, compared to $4.1 million in the same period of the prior year. The increase was primarily due to increased compensation costs from higher share-based compensation and other compensation related costs and increased professional fees in the three months ended September 30, 2025, compared to the same period of the prior year.

Previous wording

General and administrative expenses increased by $540,000 to $9.4 million in the six months ended June 30, 2025, compared to $8.8 million in the same period of the prior year. The increase was primarily due to increased compensation costs from higher share-based compensation and other compensation related costs along with professional fees and administrative and office expenses in the six months ended June 30, 2025, compared to the same period of the prior year.

Current wording

General and administrative expenses increased by $1.4 million to $14.4 million in the nine months ended September 30, 2025, compared to $12.9 million in the same period of the prior year. The increase was primarily due to increased compensation costs from higher share-based compensation and other compensation related costs along with professional fees and administrative and office expenses in the nine months ended September 30, 2025, compared to the same period of the prior year.

Previous wording

Loss on sale of real estate and other investments. There was no gain or loss on the sale of real estate and other investments in the six months ended June 30, 2025, compared to a loss of $577,000 in the same period of the prior year. Refer to Note 8 in the Condensed Consolidated Financial Statements for more information.

Current wording

Gain on sale of real estate and other investments. Gain on sale of real estate and other investments was $79.5 million for the three months ended September 30, 2025, compared to no gain or loss in the same period of the prior year. Refer to Note 8 in the Condensed Consolidated Financial Statements for more information.

Previous wording

Interest expense. Interest expense increased by 14.9% to $10.7 million in the three months ended June 30, 2025, compared to $9.3 million in the same period of the prior year, primarily due to a higher outstanding balance on our lines of credit resulting from the acquisition of an apartment community in the second quarter of the current year along with higher mortgage interest and amortization of debt discount resulting from the assumption of a mortgage in connection with an acquisition in the fourth quarter of the prior year.

Current wording

Interest expense. Interest expense increased by 45.2% to $13.0 million in the three months ended September 30, 2025, compared to $8.9 million in the same period of the prior year, primarily due to a higher outstanding balance on our lines of credit resulting from the acquisitions of two apartment communities, one in the second quarter and one in the third quarter of the current year, along with higher mortgage interest and amortization of debt discount resulting from the assumption of mortgages in connection with an acquisition in the fourth quarter of the prior year and an acquisition in the third quarter of the current year.

Previous wording

Interest expense increased by 9.8% to $20.4 million in the six months ended June 30, 2025, compared to $18.5 million in the same period of the prior year, primarily due to a higher outstanding balance on our lines of credit resulting from the acquisition of an apartment community in the second quarter of the current year along with higher mortgage interest and amortization of debt discount resulting from the assumption of a mortgage in connection with an acquisition in the fourth quarter of the prior year.

Current wording

Interest expense increased by 21.3% to $33.3 million in the nine months ended September 30, 2025, compared to $27.5 million in the same period of the prior year, primarily due to a higher outstanding balance on our lines of credit resulting from the acquisitions of two apartment communities, one in the second quarter and one in the third quarter of the current year, along with higher mortgage interest and amortization of debt discount resulting from the assumption of mortgages in connection with an acquisition in the fourth quarter of the prior year and an acquisition in the third quarter of the current year.

Previous wording

Interest and other income. Interest and other income increased to $735,000 in the three months ended June 30, 2025, compared to $477,000 in the same period of the prior year. The increase was primarily due to interest income on a real estate related note receivable in the current period that was not fully funded by the end of second quarter of 2024 and a note receivable acquired in the fourth quarter of 2024.

Current wording

Interest and other income. Interest and other income increased to $1.2 million in the three months ended September 30, 2025, compared to $645,000 in the same period of the prior year. The increase was primarily due to a real estate related note receivable which has a higher principal balance in the current period compared to the same period of the prior year and a note receivable acquired in the fourth quarter of 2024.

Previous wording

Interest and other income increased to $1.4 million in the six months ended June 30, 2025, compared to $817,000 in the same period of the prior year. The increase was primarily due to interest income on a real estate related note receivable in the current period that was not fully funded by the end of second quarter of 2024 and a note receivable acquired in the fourth quarter of 2024.

Current wording

Interest and other income increased to $2.6 million in the nine months ended September 30, 2025, compared to $1.5 million in the same period of the prior year. The increase was primarily due to a real estate related note receivable which has a higher principal balance in the current period compared to the same period of the prior year, a note receivable acquired in the fourth quarter of 2024, and a larger gain on investments in the current period compared to the same period of the prior year.

Previous wording

Net loss available to common shareholders. Net loss available to common shareholders was $14.5 million for the three months ended June 30, 2025, compared to a net loss of $2.9 million in the three months ended June 30, 2024.

Current wording

Net income (loss) available to common shareholders. Net income available to common shareholders was $53.8 million for the three months ended September 30, 2025, compared to a net loss of $6.2 million in the three months ended September 30, 2024.

Previous wording

Net loss available to common shareholders was $18.2 million for the six months ended June 30, 2025, compared to a net loss of $8.4 million in the six months ended June 30, 2024.

Current wording

Net income available to common shareholders was $35.5 million for the nine months ended September 30, 2025, compared to a net loss of $14.6 million in the nine months ended September 30, 2024.

Previous wording

Net loss available to common shareholders for the three months ended June 30, 2025, was $14.5 million compared to net loss of $2.9 million for the same period of the prior year. FFO applicable to common shares and Units for the three months ended June 30, 2025, increased to $24.5 million compared to $22.1 million for the comparable period of the prior year, representing an increase of 10.8%. This FFO increase was primarily due to increased NOI along with dividends to preferred shareholders that occurred in the prior year that did not occur in the same period of the current year, offset by increased interest expense.

Current wording

Net income available to common shareholders for the three months ended September 30, 2025, was $53.8 million compared to net loss of $6.2 million for the same period of the prior year. FFO applicable to common shares and Units for the three months ended September 30, 2025, increased to $23.3 million compared to $18.7 million for the comparable period of the prior year, representing an increase of 24.7%. This FFO increase was primarily due to increased NOI along with distributions to preferred shareholders that occurred in the prior year that did not occur in the same period of the current year, offset by increased interest expense and general and administrative expense.

Previous wording

Net loss available to common shareholders for the six months ended June 30, 2025, was $18.2 million compared to net loss of $8.4 million for the same period of the prior year. FFO applicable to common shares and Units for the six months ended June 30, 2025, increased to $47.7 million compared to $43.0 million for the comparable period of the prior year, representing an increase of 10.9%. This FFO increase was primarily due to increased NOI along with dividends to preferred shareholders that occurred in the prior year that did not occur in the same period of the current year, offset by increased interest expense.

Current wording

Net income available to common shareholders for the nine months ended September 30, 2025, was $35.5 million compared to net loss of $14.6 million for the same period of the prior year. FFO applicable to common shares and Units for the nine months ended September 30, 2025, increased to $71.1 million compared to $61.7 million for the comparable period of the prior year, representing an increase of 15.1%. This FFO increase was primarily due to increased NOI along with distributions to preferred shareholders that occurred in the prior year that did not occur in the same period of the current year, offset by increased interest expense and general and administrative expense.

Previous wording

(2)Refer to Note 3 of the Notes to the Condensed Consolidated Financial Statements for additional details on net loss per share.

Current wording

(2)Refer to Note 3 of the Notes to the Condensed Consolidated Financial Statements for additional details on net income (loss) per share.