v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
In determining the fair value of other financial instruments, Centerspace applies FASB ASC 820, “Fair Value Measurement and Disclosures.” Fair value hierarchy under ASC 820 distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (Levels 1 and 2) and the reporting entity’s own assumptions about market participant data (Level 3). Fair value estimates may differ from the amounts that may ultimately be realized upon sale or disposition of the assets and liabilities.
Fair Value Measurements on a Recurring Basis
(in thousands)
Balance Sheet LocationTotalLevel 1Level 2Level 3
June 30, 2026
Assets
Real estate related notes receivableOther assets$22,610 $— $— $22,610 
Real estate related notes receivableAssets held for sale, net4,504 — — 4,504 
December 31, 2025
Assets
Real estate related notes receivableOther assets$26,394 $— $— $26,394 
Centerspace utilizes an income approach with Level 3 inputs based on expected future cash flows to value the notes receivable. The unobservable inputs include market transactions for similar instruments, management estimates of comparable interest rates (range of 5.0% to 9.0%), and instrument specific credit risk (range of 0.5% to 1.0%). Changes in the fair value of these receivables from period to period are reported in interest and other income on the Condensed Consolidated Statements of Operations and Comprehensive Loss.
(in thousands)
Fair Value MeasurementOther GainsInterest IncomeTotal Changes in Fair Value Included in Current-Period Earnings
Six months ended June 30, 2026
Real estate related notes receivable$27,114 $18 $1,154 $1,172 
Six months ended June 30, 2025
Real estate related notes receivable$27,238 $18 $1,092 $1,110 
As of June 30, 2026 and December 31, 2025, Centerspace had investments totaling $3.7 million and $3.5 million, respectively, in real estate technology venture funds consisting of privately held entities that develop technology related to the real estate industry. These investments appear within other assets on the Condensed Consolidated Balance Sheets. The investments are measured at net asset value (“NAV”) as a practical expedient under ASC 820. As of June 30, 2026, the Company had unfunded commitments of $598,000.
The portion of unrealized gains and losses for the three and six months ended June 30, 2026 and 2025 related to equity securities still held at the reporting date is shown in the table below.
(in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Unrealized gains and losses on equity securities still held at the reporting date$— $(19)$209 $48 
Fair Value Measurements on a Nonrecurring Basis
There were no non-financial assets measured at fair value on a nonrecurring basis at June 30, 2026. Non-financial assets measured at fair value on a nonrecurring basis at December 31, 2025 consisted of real estate investments that were written down to estimated fair value in connection with the impairment recorded on one apartment community during the year ended December 31, 2025. This asset was further impaired during the three months ended March 31, 2026 and sold during the three months ended June 30, 2026.
(in thousands)
Balance Sheet LocationTotalLevel 1Level 2Level 3
December 31, 2025
Assets
Real estate investments measured at fair valueProperty owned$39,700 $— $— $39,700 
Financial Assets and Liabilities Not Measured at Fair Value
Cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses, and other liabilities are carried at amounts that reasonably approximate their fair value due to their short-term nature. For variable rate line of credit debt that re-prices frequently, fair values are based on carrying values.
The fair value of unsecured senior notes and mortgages payable is estimated based on the discounted cash flows of the loans using market research and management estimates of comparable interest rates, excluding any prepayment penalties (Level 3).
The estimated fair values of the Company’s financial instruments as of June 30, 2026 and December 31, 2025, respectively, are as follows:
(in thousands)
June 30, 2026December 31, 2025
Balance Sheet Location
Amount
Fair Value
Amount
Fair Value
FINANCIAL ASSETS
Cash and cash equivalents (Level 1)Cash and cash equivalents$8,560 $8,560 $12,833 $12,833 
Restricted cash (Level 1)Restricted cash$1,883 $1,883 $2,818 $2,818 
FINANCIAL LIABILITIES
Revolving lines of credit (Level 3)Revolving lines of credit$176,000 $176,000 $154,925 $154,925 
Unsecured senior notes (Level 3)(1)
Notes payable$300,000 $268,642 $300,000 $267,420 
Mortgages payable - Fannie Mae credit facility (Level 3)Mortgages payable$198,850 $175,757 $198,850 $175,996 
Mortgages payable - other (Level 3)(1)
Mortgages payable$346,297 $304,983 $400,134 $358,627 
(1)Excludes deferred financing costs, debt premiums, and discounts.