CENTERSPACE

Certain Lending Requirements

In certain instances, in connection with the financing of investment properties, the lender may require, as a condition of the loan, that the properties be owned by a “single asset entity.” Accordingly, we have organized a number of wholly-owned subsidiary entities for the purpose of holding title in an entity that complies with such lending conditions. All financial statements of these subsidiaries are consolidated into our financial statements.

Management and Leasing of Our Real Estate Assets

We conduct our corporate operations from offices in Minot, North Dakota, and Minneapolis, Minnesota. The day-to-day management of our properties is generally carried out by our own employees. When properties acquired have effective pre-existing property management in place or when particular properties are, in our judgment, not attractive candidates for self-management, we may utilize third-party professional management companies for day-to-day management. In that case, however, all decisions relating to purchase, sale, insurance coverage, major capital improvements, annual operating budgets, and major renovations are made exclusively by our employees and implemented by the third-party management companies. Generally, our third-party management contracts are for terms of one year or less and provide for compensation ranging from 2.5% to 5.0% of gross rent collections and, typically, we may terminate these contracts upon 60 days or less notice for cause or upon the property manager’s failure to meet certain specified financial performance goals.

Summary of Communities Owned as of December 31, 2025

The following table presents information regarding our 61 apartment communities held for investment, as of December 31, 2025. We provide certain information on a same-store and non-same-store basis. Same-store communities are owned or stabilized for substantially all of the periods being compared, and, in the case of newly-acquired or constructed properties, have achieved a target level of physical occupancy of 90%, or re-positioned communities when they have achieved stabilized operations. We define re-positioned communities as having significant development and construction activity on existing buildings pursuant to an authorized plan, which has an impact on current operating results, occupancy and the ability to lease space with the intended result of improved community cash flow and competitive position through extensive unit and amenity

upgrades. We categorize a re-positioned community as same-store when the development and construction activity has been completed, and operations have stabilized. This is typically reaching an overall occupancy of 90%. Not all communities undergoing value add are considered a re-positioned community. Non-same store communities are communities not owned or stabilized as of the beginning of the previous year, including re-positioned communities, and excluding communities held for sale and the non-multifamily components of mixed-use properties.

On the first day of each calendar year, we determine the composition of our same-store pool for that year as well as adjust the previous year, which allows us to evaluate the performance of existing apartment communities. “Other” includes non-multifamily properties and non-multifamily components of mixed use properties. We own the following real estate through our wholly-owned subsidiaries. We account for these interests on a consolidated basis. Additional information is included in Schedule III to our financial statements included in this Report.

Number of · (initial cost plus · Occupancy

Apartment · improvements less · as of

Community Name and Location · Homes · impairment) · December 31, 2025

SAME-STORE

71 France - Edina, MN (1) · 241 · 69,024 · 98.3

Alps Park Apartments - Rapid City, SD · 71 · 6,448 · 98.6

Arcata Apartments - Golden Valley, MN (1) · 165 · 35,562 · 96.4

Ashland Apartment Homes - Grand Forks, ND · 84 · 9,194 · 95.2

Avalon Cove Townhomes - Rochester, MN · 187 · 41,582 · 97.9

Bayberry Place - Eagan, MN (2)(3) · 120 · 17,323 · 84.2

Burgundy & Hillsboro - New Hope, MN (2) · 250 · 36,952 · 96.4

Canyon Lake Apartments - Rapid City, SD · 109 · 6,805 · 92.7

Cardinal Point Apartments - Grand Forks, ND · 251 · 37,626 · 95.6

Cascade Shores Townhomes + Flats - Rochester, MN · 366 · 85,501 · 94.8

Castlerock Apartment Homes - Billings, MT · 165 · 7,695 · 94.6

Civic Lofts - Denver, CO · 176 · 48,637 · 90.3

Connelly on Eleven - Burnsville, MN · 240 · 27,796 · 96.3

Cottonwood Apartment Homes - Bismarck, ND · 268 · 25,582 · 94.0

Country Meadows Apartment Homes - Billings, MT · 133 · 10,064 · 91.7

Deer Ridge Apartment Homes - Jamestown, ND · 163 · 25,709 · 93.9

Donovan Apartment Homes - Lincoln, NE · 232 · 28,729 · 94.8

Dylan at RiNo - Denver, CO · 274 · 91,487 · 94.5

Evergreen Apartment Homes - Isanti, MN · 72 · 7,438 · 95.8

Gardens Apartments - Grand Forks, ND · 74 · 9,630 · 98.7

Greenfield - Omaha, NE · 96 · 8,437 · 94.8

Homestead Garden Apartments - Rapid City, SD · 152 · 18,697 · 96.1

Ironwood - New Hope, MN · 182 · 40,578 · 96.2

Lake Vista Apartment Homes - Loveland, CO (1) · 303 · 90,549 · 97.7

Lakeside Village Apartment Homes - Lincoln, NE · 208 · 25,161 · 93.8

Legacy Apartments - Grand Forks, ND · 360 · 34,860 · 97.2

Legacy Heights Apartment Homes - Bismarck, ND · 119 · 15,615 · 98.3

Lugano at Cherry Creek - Denver, CO · 328 · 105,759 · 93.0

• Centerspace, Inc. North Dakota³
• Centerspace, LP, a North Dakota Limited Partnership North Dakota³
• IRET - Canyon Lake, LLC North Dakota³
• IRET - Cardinal Point, LLC North Dakota³
• IRET - Grandeville, LLC North Dakota³
• IRET - Ironwood, LLC Minnesota³
• IRET - SH1, LLC North Dakota³
• IRET - South Fork Apartments, LLC North Dakota³
• IRET - West Stonehill Apartments, LLC North Dakota³
• IRET - Whispering Ridge Apartments, LLC Delaware³
• IRET-71 France, LLC North Dakota³
• IRET-Cypress Court Apartments, LLC North Dakota³
• IRET-QR, LLC Delaware³
• IRET-Quarry Ridge, LLC Delaware³
• IRET-RED 20, LLC North Dakota³

• Our current or future insurance may not protect us against possible losses.
• Changes in federal or state laws and regulations relating to climate change could increase our costs, including capital expenditures to improve the energy efficiency of our existing communities or new development communities without a corresponding increase in revenue.
• Multifamily residential properties may be subject to rent stabilization regulations and other restrictions which limit our ability to raise rents above specified maximum amounts and could give rise to claims by residents that their rents exceed such specified maximum amounts.
• We may face opposition from governmental authorities or third parties alleging that our activities are anti-competitive.
• Competition could limit our ability to acquire attractive investment opportunities and could increase the costs of those opportunities, which may adversely affect our profitability and impede our growth.
• Because real estate investments are relatively illiquid and various other factors limit our ability to dispose of assets, we may be unable to sell properties when appropriate.
• Inability to manage growth effectively may adversely affect our operating results.
• Adverse changes in tax laws and other laws may affect our liabilities relating to our properties and operations.
• We may be unable to retain or attract qualified management.
• The failure of third-party management companies to properly manage our properties could adversely affect our results of operations.
• We face risks associated with cyber-attacks, cyber intrusions, or otherwise, which could pose a risk to our systems, networks, and services.
• Security breaches could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
• The development and use of artificial intelligence in the workplace presents risks and challenges that may adversely impact our business and operating results.
• We may be responsible for potential liabilities under environmental laws.
• Expanding social media usage could present new risks.
• Risks related to properties under development, redevelopment, or newly developed properties may adversely affect our financial performance.
• Complying with zoning and permitting law may affect our acquisition, redevelopment, and development costs.
• Future cash flows may be insufficient to ensure recoverability of the carrying value of our real estate assets.
• Complying with laws benefiting disabled persons or other safety regulations and requirements may affect our costs and investment strategies.
• A potential future pandemic or other outbreak of a highly infectious or contagious diseases may materially and adversely impact and disrupt our business, income, cash flow, results of operations, financial condition, liquidity, prospects, and ability to service our debt obligations, and our ability to pay dividends and other distributions to our equityholders.
• Risks Related to Our Indebtedness and Financings
• Our inability to renew, repay, or refinance our debt may prompt losses.
• Restrictive covenants in our debt agreements may limit our operating and financial flexibility, and our inability to comply with these covenants could have significant implications.
• Mortgage debt obligations expose us to the possibility of foreclosure, which could result in the loss of our investment in a property or group of properties subject to mortgage debt.
• Conditions in the capital and credit markets, including higher interest rates, may adversely affect our access to various sources of capital or financing and the cost of capital, which could affect our business activities and earnings.
• Financial and real estate market disruptions could adversely affect the multifamily property sector’s ability to obtain financing from Fannie Mae and Freddie Mac, which could adversely impact us.
• We hold a portion of our cash and cash equivalents in deposit accounts that could be adversely affected if the financial institutions holding such deposits fail.
• Interest rate hedging arrangements may lead to losses.
• Risks Related to Our Shares
• Corporate social responsibility, specifically related to ESG, may impose additional costs and expose us to new risks.
• Payment of distributions on our common shares is not guaranteed.
• We are a holding company with limited operations and, as such, we will rely on funds received from our Operating Partnership to pay liabilities, and the interests of our shareholders will be structurally subordinated to all liabilities and obligations of our Operating Partnership and its subsidiaries.
• Our future growth depends, in part, on our ability to raise additional equity capital, which could dilute the interests of our common shareholders.
• We may issue additional classes or series of our shares of beneficial interest with rights and preferences that are superior to the rights and preferences of our common shares.
• Certain provisions of our Declaration of Trust may delay, limit, or prevent a change in control and deter a takeover.
• Risks Related to Tax Matters
• We may incur tax liabilities if we were to fail to qualify as a REIT, which could force us to borrow funds during unfavorable market conditions.
• Failure of the Operating Partnership to qualify as a partnership would lead to corporate taxation and significantly reduce the amount of cash available for distribution.
• Partnership tax audit rules could have a material adverse effect on us.
• Dividends payable by REITs may be taxed at higher rates than dividends of non-REIT corporations, which could reduce the net cash received by our shareholders and may harm our ability to raise additional funds through any future sale of our stock.
• We have tax protection agreements in place on 21 properties.
• Complying with REIT requirements may force us to forgo otherwise attractive opportunities or liquidate otherwise attractive investments.
• Even if we qualify as a REIT, we may face other tax liabilities that reduce our cash flows.
• The tax imposed on REITs engaging in prohibited transactions and our agreements entered into with certain contributors of our properties may limit our ability to engage in transactions that would be treated as sales for federal income tax purposes.
• Our ownership of TRSs is limited, and our transactions with TRSs will cause us to be subject to a 100% penalty tax on certain income or deductions if those transactions are not conducted on arm’s-length terms.
• Federal, state and foreign income tax laws governing REITs and related interpretations may change at any time, and any such legislative or other actions affecting REITs could have a negative effect on us.