Centerspace plans to sell 12 apartment communities for an estimated $240 million to $245 million [1] during 2026 [1].
The multifamily real estate investment trust is executing this plan following the completion of a strategic review. The move is intended to reduce company leverage, cut debt, and improve the net-debt/EBITDA ratio to maximize value for shareholders [3].
According to the company, the properties slated for disposition are located in Mountain West markets [4]. This divestiture follows a period of restructuring intended to streamline the company's holdings. Anne Olson said, "This process was initiated from a position of strength, having transformed Centerspace into a pure‑play ..." [3].
As part of its broader financial outlook for 2026, the company has targeted a core funds from operations (FFO) per share of $4.93 [5]. The sale of these 12 assets [1] is a key component of the strategy to maintain a leaner portfolio, while stabilizing the balance sheet.
While the company maintains a significant presence in other regions, including the Twin Cities [2], the current focus of the sales is the Mountain West [4]. The company expects the proceeds from these sales to provide a buffer against market volatility and lower the overall cost of capital.
“Centerspace plans to sell 12 apartment communities for an estimated $240 million to $245 million”
By divesting specific assets in the Mountain West, Centerspace is prioritizing balance sheet health over portfolio size. Reducing leverage through these sales allows the REIT to lower its debt-to-earnings ratio, which typically makes a company more attractive to investors and less vulnerable to interest rate fluctuations in the volatile multifamily real estate market.
