CENTERSPACE

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 8✗ 27▾

  No clean pass — all 16 investors flag at least one profitability criterion

  Net income / market capitalization+4.63%; #1799/6340 (top 28.4%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)18/28 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)22/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)1.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)23.6% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$144.5M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE11.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value2.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.2%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.89%

  ✓PiotroskiROA > 0

  ROA Change YoY-0.59% -> 0.89% (delta: +1.48%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=5.11%, ROA=0.89%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY96.5% -> 96.5%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity11.5%

  ✗Dreman> 12%

  Margin of SafetyP/FFO=18.3x

  ✗PabraiP/FFO < 15

  Return on Equity2.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-450.1% (IV=$10.35 vs Price=$56.94)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency22/26 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue56.1%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity11.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend32.3% (2023) -> 23.6% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 96.4% -> 96.5%, operating margin 32.3% -> 23.6%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+13.71%; #2512/3702 (top 67.9%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+11.48%; #1585/5226 (top 30.3%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0106; #872/5884 (top 14.8%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/9 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)2.0%

  ✗Buffett> 10%

  ROIC - WACC-8.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.14x -> 0.14x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital7.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=4.1%; FY2024: ROIC=0.9%; FY2025: ROIC=2.9%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC3.1% (RR=43% x ROIC=7.1%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 2.9%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 5▾

  CSR overvalued: all 5 models price fair value below $56.94 (median $31.36)

  Graham fair value$31.37

  ✗Graham-81.5% margin vs $56.94

  Greenblatt fair value$26.60

  ✗Greenblatt-114.0% margin vs $56.94

  Dreman fair value$10.35

  ✗Dreman-450.1% margin vs $56.94

  Pabrai fair value$43.16

  ✗Pabrai-31.9% margin vs $56.94

  Akre fair value$31.36

  ✗Akre-81.6% margin vs $56.94
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag CSR's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.03, IC: 3.5x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.03

  ✗Lynch< 0.33

  Cash - Long-term Debt$-696.4M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change49.92% -> 53.02%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.03

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.03

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=3.5x, D/EBITDA=3.3x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.03

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0250; #3249/4210 (top 77.2%)

  ✗AsnessTop 30% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag CSR's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency22/26 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth1.8%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 96.4% -> 96.5%, operating margin 32.3% -> 23.6%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR9.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation15% pass✓ 6✗ 19▾

  11 of 13 flag CSR's valuation — Graham, Lynch, Greenblatt +8 more

  Price / FFO per Share18.3x

  ✗Graham<= 15x✗Dreman< 12x✓Ackman<= 25

  Price / Book Value per Share1.3x

  ✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Net income / market capitalization+4.63%; #1799/6340 (top 28.4%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value2.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.2%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / (CFO / Shares)9.7x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=55.8x, OE Yield=13.8%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/FFO or FFO YieldP/FFO=18.3x, FFO Yield=2.7%

  ✗PabraiP/FFO < 15 or FFO Yield > 10%

  P/B or P/E vs. Historical AverageP/E=55.8x, P/B=1.3x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-450.1% (IV=$10.35 vs Price=$56.94)

  ✗Marks>= 20% below intrinsic value

  Price / EPS55.8x

  ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price vs. Trailing Low108% of trailing low ($52.48)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.4035; #3259/6449 (top 50.5%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS55.8x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.33x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-9.5%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1308; #4165/5247 (top 79.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-10.92%; #3489/6202 (top 56.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts31% pass✓ 4✗ 9▾

  Split decision: 9 FAIL · 4 PASS · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 5)✗DremanFAIL (1/10)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)•MarksNEUTRAL (4/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)•SleepNEUTRAL (4/6)✗AsnessFAIL (Rank #1285/2370 (Top 54.2%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow50% pass✓ 4✗ 3▾

  3 of 6 pass — Dreman, Neff and Oshaughnessy object

  Free Cash Flow Proxy$144.5M

  ✓BuffettPositive and growing

  Operating Cash Flow$98.5M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=5.11%, ROA=0.89%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)9.7x

  ✗Dreman< 8x

  Positive Operating Cash Flow frequency24/24 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section