UPDATE: Piper Sandler Downgrades Centerspace (CSR) to Neutral

Piper Sandler analyst Alexander Goldfarb downgraded Centerspace (NYSE: CSR) from Overweight to Neutral with a price target of $70.00 (from $85.00).

The analyst comments "Quick take: While G&A drove headline miss to PSC, the bigger issue is expense pressure, which we think could get worse given energy concerns into the winter. YTD, R&M is now up 28% with insurance, utilities, and regional expenses all up midteens. CSR battled increased utilities last winter, as most of its apartments do not have individual billing (even RUBS), but the counter was rising rents. Opex guidance is now 9.5% - 10.0% versus previous 7.5% - 8.5%, while revenue guidance mid-point increased 25bps. Management also expects its recent Colorado acquisition to be $0.02 less accretive because of higher than original funding assumptions. Clearly expenses will be a focus for Tuesday's call. Thus, with rents moderating and expense pressure not easing, we no longer can see the stock outperforming and thus are downgrading to Neutral from Overweight."

For an analyst ratings summary and ratings history on Centerspace click here. For more ratings news on Centerspace click here.

Shares of Centerspace closed at $69.30 yesterday.

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