Centerspace (NYSE:CSR) Q4 2023 Earnings Call Transcript

Bhairav Patel: Some of the negative numbers related to some real estate tax related accrual adjustments. In certain years, we have upticks and in certain years, we have some credit — from some credits from appeals. So that’s really what’s driving some of the credits that you see on a year over year basis in Omaha. The other line item that is also comparing favorably is the non-reimbursable losses, where we really had an uptick in those losses in the Q4 of 2022, and they kind of normalize in 2023. So, that’s what is driving the Q4 2023 versus Q4 2022 comparison.

Operator: [Operator Instructions]. Our next question is from the line of Wesley Golladay of Baird. Wesley, your line is open.

Wesley Golladay: Just a quick question on the Denver market. We’re starting to see some slowing out there as a job growth, but then you did make the comment that multifamily, this fear maybe taking share with the fewer single family starts in one of your markets. Is that happening there as well? Just overall, what are you seeing from the demand side in Denver?

Anne Olson: We’ll have Grant help you out on that one.

Grant P. Campbell: Yes. So agree with your job growth comment, have seen some slowing in that market here recently. We do think long term the demand fundamentals in Denver and Colorado more broadly are very robust and continue to believe that over time what we’ve seen in the past decade will continue to play out. When I think about Denver, couple of ways from a fundamentals perspective that we think about it on the supply side, It is our market with the highest levels of existing supply and existing new construction. So I referenced 4.5% in Minneapolis earlier that would be about 9.5% today in Denver. It may be the case in this environment that all of that supply in that pipeline does not complete, given capital markets and fundamentals headwinds.

Concessions is another way that we really focus on what are we seeing in all of our markets, including Denver, and I would say our concession profile and concession story on the ground in Denver today is very favorable. We’ve been using concessions in very targeted and specific instances today in Denver, that’s that one community in our portfolio, which is a function of new supply in that submarket. So have seen slowdown in job growth, fundamentals are tapering, but that isn’t unique to Denver, that is happening nationwide and long term believe that the demand profile remains.

Operator: Thank you and we have no further questions in the queue at this time. So I would like to hand back over to Anne Olsen for any further remarks.

Anne Olson: Thanks, everyone, for joining, and have a great day.

Operator: This concludes today’s call. [Operator Closing Remarks].