Centerspace (NYSE: CSR) announced plans to sell approximately $245 million of assets in 2026 following a strategic review by its board of trustees. The real estate investment trust will dispose of twelve apartment communities, including a complete exit from the Bismarck and Rapid City markets and one community in Denver.

The company stated that each disposition is under contract with buyers and anticipates closing the sales in the second half of 2026. Centerspace expects to use proceeds to reduce total debt by $175-190 million, including repayment of its line of credit balance.

The asset sales are projected to improve the company's Annualized Net Debt to EBITDA ratio from 8.2x in the first quarter of 2026 to below 7x by the fourth quarter of 2026. Centerspace indicated there may be special distributions of $45-65 million, with declaration timing and exact amounts to be determined later in the year.

"The capital allocation initiative we are announcing today is an outcome of our review process," said Centerspace CEO Anne Olson. "We expect these actions to enhance shareholder value by capturing the discount between public and private market valuations, while materially strengthening our balance sheet."

The company's board declared a regular quarterly distribution of $0.77 per share, payable July 14, 2026, to shareholders of record on June 29, 2026.

Centerspace noted that its previously released earnings guidance did not include potential dispositions and plans to provide updated guidance with its second quarter 2026 earnings release. The company warned that transaction closings may not occur on the expected timeline or at all, according to the press release statement.