Anne Olson, president and CEO of Centerspace (NYSE: CSR), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.
Olson discussed: operating fundamentals in Centerspace’s key markets of Denver and Minneapolis; the extent of leeway Centerspace has had to raise rents amid current economic volatility; the steps Centerspace has taken to support its balance sheet; and what the REIT will be watching most closely in the next few months.
Olson noted that:
- Operating fundamentals are “really strong” in Denver and Minneapolis. Denver is a higher growth market, while Minneapolis offers stability.
- Quarter to date rent increases have been “good.” Centerspace’s core markets are more protected from macroeconomic volatility, rent is at an affordable level for its tenants, and collection levels are high. “I think that’s going to lend itself well to our ability to continue to push rents.”
- Centerspace recently sold nine non-core assets to shore up the balance sheet, particularly its floating rate debt. Centerspace will watch its balance sheet closely and “make sure we use it when we feel there’s really good opportunities.” The REIT is hoping to see some transaction activity in the second half, enabling it to take advantage of market dislocation.