HOUSTON--(BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) today announced it has priced a $600 million offering of senior unsecured notes under its existing shelf registration. These 10-year notes were issued at 99.936% of par value with a coupon of 4.900%. Interest on the notes is payable semi-annually on February 28 and August 28, with the first payment becoming due and payable on August 28, 2026, and the notes will mature on February 28, 2036. Camden expects to use the net proceeds of appro. ...

Core Insights - Maverick Capital Ltd. established long positions in Google C, Applied Materials, Boston Scientific, Visa, and Camden Property during the fourth quarter [1] - The firm increased its holdings in TSMC, NVIDIA, GFL Environment, and Carvana [1] - Maverick Capital completely exited positions in Kenvue, US Bancorp, AMD, Danaher, and Insmed [1] - The company reduced its stakes in Nubank, Disney, Merit Medical, Acadia Health, and Sherwin-Williams [1] - The firm maintains significant positions in NVIDIA, Microsoft, Amazon, TSMC, and Google C [1]

Financial Performance - Net income attributable to common shareholders increased to $384.5 million for the year ended December 31, 2025, compared to $163.3 million in 2024, primarily due to gains on sales of operating properties[101]. - Net operating income (NOI) for the year ended December 31, 2025, was $1,006.8 million, representing a 2.2% increase from $985.0 million in 2024[121]. - Funds from operations (FFO) for 2025 were $744,829,000, slightly up from $738,020,000 in 2024[151]. - Core adjusted funds from operations (Core AFFO) were $649,051,000 in 2025, compared to $647,593,000 in 2024[151]. - Non-property income for the year ended December 31, 2025, was $32,483,000, representing a 34.3% increase from $24,186,000 in 2024[132]. Revenue and Expenses - Same store revenues increased by approximately 0.8% for the year ended December 31, 2025, compared to 2024, driven by higher revenues from other income and favorable changes in occupancy[99]. - Same store property revenues increased by $11.0 million (0.8%) for the year ended December 31, 2025, compared to 2024, driven by utility and ancillary income programs[125]. - Same store property expenses rose by $8.6 million (1.5%) for the year ended December 31, 2025, primarily due to higher salaries and benefits, and increased utilities[126]. - Total other expenses rose to $888,394,000 in 2025, a 6.1% increase from $837,354,000 in 2024[136]. - General and administrative expenses increased by approximately $7.0 million, or 9.6%, to $79,344,000 in 2025 from $72,365,000 in 2024, mainly due to higher legal and acquisition pursuit costs[139]. Acquisitions and Dispositions - The company acquired four operating properties in 2025 for approximately $422.9 million, including a 352-apartment community in Leander, Texas, and a 435-apartment community in Nashville, Tennessee[105]. - Five dispositions were completed in 2025 for a total of approximately $374.5 million, resulting in a total gain of approximately $260.9 million[106]. - The increase in non-same store NOI was primarily due to the acquisition of four operating properties completed in 2025 and the stabilization of additional properties[128]. - Dispositions/other property NOI decreased by approximately $2.3 million for the year ended December 31, 2025, due to lower NOI from five dispositions completed in 2025[131]. Construction and Development - The company had three projects under construction as of December 31, 2025, comprising 1,162 apartment homes, with an estimated remaining cost to complete of approximately $213.8 million[102]. - The company has a development pipeline of two communities with a total estimated cost of $491.0 million, with $96.1 million incurred to date[116]. - Future cash requirements include approximately $213.8 million to complete construction on three projects, with expected costs of $135 million to $155 million in 2026[168]. Debt and Liquidity - As of December 31, 2025, the company had approximately $1.2 billion available under its unsecured revolving credit facility, with $590.0 million outstanding under its commercial paper program[111]. - The company has a $1.2 billion unsecured revolving credit facility maturing in August 2026, with options to extend and expand the facility[159]. - As of December 31, 2025, the company had fixed rate debt of $2,766.9 million with an average interest rate of 3.7% and a weighted average maturity of 6.2 years, representing 70.9% of total debt[178]. - The company also has variable rate debt of $1,133.9 million with an average interest rate of 4.4% and a weighted average maturity of 0.4 years, accounting for 29.1% of total debt[178]. - The company plans to meet liquidity requirements through cash flows from operations, draws on credit facilities, and potential equity offerings[171]. Interest Rate Management - The weighted average interest rate on the commercial paper notes outstanding was 3.84% as of December 31, 2025[107]. - An interest rate swap with a notional amount of $500.0 million was used to convert fixed rate senior unsecured notes into a floating rate instrument, effectively hedging against interest rate changes[178]. - If interest rates on variable rate debt had been 100 basis points higher, annual interest costs would have increased by approximately $11.3 million in 2025 and $7.2 million in 2024[179]. - For fixed rate debt, a 100 basis point increase in interest rates would decrease the fair value by approximately $117.3 million as of December 31, 2025[180]. - The company follows established risk management policies to mitigate interest rate risk, including maintaining prudent levels of fixed and floating rate debt[178]. Impairments and Charges - An impairment charge of approximately $12.9 million was recorded in the fourth quarter of 2025 related to two undeveloped land parcels[103]. - The company recorded an impairment of approximately $12.9 million related to two undeveloped land parcels during the year ended December 31, 2025[175]. Dividends - The company declared a quarterly dividend of $1.05 per common share in December 2025, resulting in an annual dividend rate of $4.20 per share for the year ended December 31, 2025[172].

Company Overview - Camden Property Trust (CPT) is a Houston-based company that owns, manages, develops, and constructs multifamily apartment communities, with a market cap of $11.5 billion and 172 properties containing 58,250 apartment homes across the U.S. [1] Stock Performance - CPT shares have underperformed the broader market, declining 9.5% over the past year, while the S&P 500 Index has increased by nearly 15.6% [2] - Year-to-date in 2026, CPT stock is down 2%, compared to a 1.7% rise in the S&P 500 [2] Comparison with ETFs - CPT has also lagged behind the Residential REIT ETF (HAUS), which has declined about 3.5% over the past year, while the ETF has returned 2.2% year-to-date [3] Financial Results - For Q4, CPT reported a Funds From Operations (FFO) of $1.76 per share, exceeding Wall Street expectations of $1.73, but its revenue of $390.8 million fell short of forecasts of $394.6 million [5] - Analysts expect CPT's FFO per share to decline slightly to $6.84 for the current fiscal year ending in December [6] Analyst Ratings - Among 25 analysts covering CPT, the consensus rating is a "Moderate Buy," with seven "Strong Buy" ratings, one "Moderate Buy," 16 "Holds," and one "Strong Sell" [6] - The current analyst configuration is less bullish than a month ago, with eight analysts previously suggesting a "Strong Buy" [7] Price Targets - Colliers Securities analyst Barry Oxford maintains a "Buy" rating on CPT with a price target of $125, indicating a potential upside of 15.9% from current levels [7] - The mean price target is $115.61, representing a 7.2% premium to CPT's current price, while the highest price target of $134 suggests an upside potential of 24.2% [7]

Core Viewpoint - Camden Property Trust is strategically selling its entire California portfolio to focus on growth opportunities in the Sun Belt region, which is expected to experience significant recovery and growth in the near future [2][3]. Group 1: Portfolio Strategy - Camden is marketing its California portfolio, which includes 11 properties totaling 3,600 units, as part of a strategy to reinvest in the Sun Belt region [1]. - The decision to sell is driven by a favorable market with "lots of buyers" interested in coastal properties, indicating a vibrant transaction environment [3]. - The sale is expected to allow Camden to redeploy capital into the Sun Belt and buy back its own shares, as the cap rate for the California portfolio is lower than the implied cap rate of Camden stock [3]. Group 2: Cost Management - Moving out of California is anticipated to reduce Camden's political advocacy expenses, as 92% of its advocacy activities were concentrated in California [4]. - The shift to the Sun Belt is expected to eliminate political advocacy costs in that region, streamlining operations [4]. Group 3: Market Outlook - Camden reported a year-over-year increase in same-property revenue for 2025, with expectations of improved conditions in 2026 as new apartment supply is absorbed [5]. - The company noted that new apartment deliveries peaked in 2024 and are projected to decline, leading to below-average supply years in 2026 and 2027 [6]. - Completions as a percentage of supply peaked at nearly 4% in 2024, with expectations of less than 2% in 2025 and around 1.5% in 2027 [6].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Camden Property Trust reported core funds from operations (Core FFO) for Q4 2025 at $193.1 million, or $1.73 per share, which was $0.03 ahead of the midpoint of prior guidance [34] - The company expects Core FFO per share for 2026 to be in the range of $6.60-$6.90, representing a decrease of $0.13 from 2025 results [35][36] - Same-property revenue growth for 2025 was reported at 76 basis points, slightly beating guidance [13] Business Line Data and Key Metrics Changes - Rental rates for Q4 2025 showed new leases down 5.3% and renewals up 2.8%, resulting in a blended rate of -1.6% [27] - The company disposed of 3 communities for $201 million and acquired 1 community for $85 million during Q4 2025 [29] - For the full year 2025, Camden sold 7 older communities for $375 million and acquired 4 newer assets for $423 million [30] Market Data and Key Metrics Changes - The company anticipates that new supply in its markets peaked in 2024 and will continue to decline, setting up for below-average years in 2026 and 2027 [14] - The D.C. Metro area achieved 3.5% revenue growth in 2025, with 96% occupancy heading into 2026 [19] - Houston is expected to exceed average portfolio growth again in 2026 due to limited supply [20] Company Strategy and Development Direction - Camden plans to market its California properties for sale to expand its footprint in the Sun Belt and simplify its operating platform [10][31] - The company intends to reinvest approximately 60% of the sales proceeds into high-demand Sun Belt markets and use the remainder for share repurchases [31] - The overall portfolio is graded as a B with a stable but improving outlook for 2026 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about the operating environment but noted strong apartment absorption rates and resilient residents [8][10] - The company expects modest acceleration in operating conditions in the second half of 2026, with a revenue growth midpoint of 75 basis points [16] - Management highlighted that the current economic conditions could lead to a significant recovery in rental rates once supply and demand dynamics shift [102][106] Other Important Information - The company anticipates $14 million in legal expenses as part of non-core adjustments, which are expected to normalize over time [70] - New legislation in Colorado has impacted utility rebilling, resulting in a loss of approximately $1.8 million in revenue, affecting same-store NOI [118] Q&A Session Summary Question: Why is now the right time to sell the Southern California portfolio? - Management believes there will be a pivot point in Sun Belt growth, and they want to be ahead of that trend [46][49] Question: How are you thinking about splitting the California portfolio for sale? - There are many buyers interested, and the company will maximize the purchase price through various sale structures [50] Question: What are your expectations for new and renewal rents throughout the year? - Slight improvements are expected in the first quarter, with more visibility during peak leasing seasons [55] Question: How will the timing of 1031 exchange acquisitions affect guidance? - The company expects no net impact on 2026 guidance from the California sale and anticipates redeployment of capital in mid-year [60] Question: What are the expectations for stabilized returns on new developments? - Costs are decreasing by 5%-8%, but developments remain challenging [66] Question: Can you provide more details on the $14 million in legal expenses? - This amount includes legal costs related to ongoing battles, which are expected to resolve and normalize over time [70] Question: How will the new Colorado legislation affect ancillary income? - The legislation will significantly impact revenue, accounting for about 19 basis points of same-store NOI [118]

Financial Data and Key Metrics Changes - Camden Property Trust exceeded its original guidance for Core FFO by $0.13 per share, reporting Core FFO for Q4 2025 at $193.1 million or $1.73 per share, which was $0.03 ahead of the midpoint of prior guidance [9][34] - Same-property revenue growth for 2025 was reported at 76 basis points, slightly beating the midpoint of guidance [13] - The company expects Core FFO per share for 2026 to be in the range of $6.60-$6.90, with a midpoint of $6.75, representing a $0.13 decrease from 2025 results [35] Business Line Data and Key Metrics Changes - Rental rates for Q4 2025 showed new leases down 5.3% and renewals up 2.8%, resulting in a blended rate of -1.6% [27] - The company disposed of three communities for $201 million and acquired one community for $85 million during Q4 2025 [29] - For 2025, Camden sold seven older communities for $375 million and acquired four newer assets for $423 million [30] Market Data and Key Metrics Changes - The company anticipates that new supply in its markets peaked in 2024 and will continue to decline, setting up for below-average years for new supply in 2026 and 2027 [14] - The Washington, D.C. Metro area achieved 3.5% revenue growth in 2025 and is rated A- with a moderating outlook for 2026 [19][20] - Austin is rated C+ with an improving outlook, as new supply is slowing, but it will take time for market-wide occupancy to improve [26] Company Strategy and Development Direction - Camden plans to expand its Sun Belt footprint by selling its California properties, with preliminary indications of value ranging from $1.5 billion to $2 billion [31] - The company intends to reinvest approximately 60% of the sales proceeds into high-demand Sun Belt markets and use the remainder for share repurchases [31] - The overall portfolio is graded as a B with a stable but improving outlook, with expectations for modest revenue growth in 2026 [18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertainty in the multifamily REIT sector but expressed confidence in the resilience of residents and the affordability of apartments compared to homeownership [8][11] - The company expects operating conditions to improve in the second half of 2026, with a slight acceleration in job growth primarily in Sun Belt markets [16] - Management noted that the current economic environment has led to a hiring freeze, but there is optimism for better job growth in 2026 [88] Other Important Information - The company is facing a new Colorado legislation that affects utility rebilling, which is expected to impact same-store NOI by approximately 19 basis points [120] - Legal expenses are becoming a significant part of the business, with $14 million in non-core adjustments anticipated for the year [70] Q&A Session Summary Question: Why is now the right time to sell the Southern California portfolio? - Management believes there will be a pivot point in Sun Belt growth, and they want to be ahead of that trend [46] Question: Can you discuss the guidance for new and renewal rents? - Slight improvements are expected in the first quarter of 2026, with more visibility during peak leasing seasons [55] Question: How will the timing of 1031 exchange acquisitions work? - The California sale is anticipated to close mid-year, with redeployment of capital happening in the summer [60] Question: What are the expectations for stabilized returns on new developments? - Costs are coming down by 5%-8%, but developments remain challenging [66] Question: How will the new legislation in Denver affect ancillary income? - The new legislation will impact utility rebilling, resulting in a loss of approximately $1.8 million in revenue [120]

Financial Data and Key Metrics Changes - Camden Property Trust reported Core Funds From Operations (FFO) for Q4 2025 at $193.1 million, or $1.73 per share, exceeding prior guidance by $0.03 per share [18] - Same-property revenue growth for 2025 was 76 basis points, slightly beating the midpoint of guidance [7] - The company expects Core FFO per share for 2026 to be in the range of $6.60-$6.90, representing a decrease of $0.13 from 2025 results [19] Business Line Data and Key Metrics Changes - Rental rates for Q4 2025 showed new leases down 5.3% and renewals up 2.8%, resulting in a blended rate of -1.6% [15] - The company disposed of 3 communities for $201 million and acquired 1 community for $85 million during Q4 2025 [16] - The overall portfolio is expected to see same-store net operating income (NOI) decline by 50 basis points in 2026, with revenue growth projected at 75 basis points [20] Market Data and Key Metrics Changes - The Sun Belt markets are expected to continue growing faster than the rest of the country, prompting the company to market its California properties for sale [5] - The Washington, D.C. Metro area achieved 3.5% revenue growth in 2025 and is rated A-minus with a moderating outlook for 2026 [11] - Austin is rated C-plus with an improving outlook, but faces challenges due to high levels of new supply [14] Company Strategy and Development Direction - The company plans to reinvest approximately 60% of the proceeds from the California sales into high-demand Sun Belt markets and use the remainder for share repurchases [17] - Camden aims to simplify its operating platform and expand its footprint in the Sun Belt by selling its California assets [5] - The company is optimistic about future lease rates and NOI growth, citing a strong balance sheet and resilient residents [6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the uncertain operating environment in 2025 but expressed confidence in the company's ability to navigate challenges [4] - The company anticipates modest acceleration in operating conditions in the second half of 2026, with expectations for job growth primarily in Sun Belt markets [9] - Management noted that the current rental market is experiencing flat growth, which is not sustainable long-term, indicating potential for future increases [75] Other Important Information - The company has begun to see improvements in some markets, with expectations for revenue growth in the range of 1%-2% for several regions [13] - Legal expenses are anticipated to be approximately $14 million, primarily related to ongoing legal battles [46] - The company plans to launch a new bond transaction worth $400 million-$500 million later this quarter [24] Q&A Session Summary Question: Why is now the right time to sell the Southern California portfolio? - Management believes there will be a pivot point in Sun Belt growth, and selling now allows them to capitalize on a vibrant transaction environment [26][27] Question: How are you thinking about splitting the California portfolio for sale? - There are many buyers interested, and the company will maximize the purchase price whether sold as a portfolio or individually [29] Question: What are your expectations for new and renewal rents throughout the year? - Slight improvements are expected in the first quarter, with more visibility during peak leasing seasons [32] Question: How will the timing of 1031 exchange acquisitions impact guidance? - The company anticipates that the California sale will close mid-year, with redeployment of capital occurring in the summer [36] Question: What are the expectations for stabilized returns on new developments? - Costs are decreasing by 5%-8%, but developments remain challenging, with rental rates expected to stabilize [40][43] Question: What impact will the new legislation in Denver have on utility rebilling? - The new legislation will significantly affect income from utility rebilling, amounting to about $1.8 million in lost revenue [89]

CAMDEN TABLE OF CONTENTS | | Page | | --- | --- | | Press Release Text | 3 | | Financial Highlights | 6 | | Operating Results | 7 | | Funds from Operations | 8 | | Balance Sheets | 9 | | Portfolio Statistics | 10 | | Components of Property Net Operating Income | 11 | | Sequential Components of Property Net Operating Income | 12 | | "Same Property" Fourth Quarter Comparisons | 13 | | "Same Property" Sequential Quarter Comparisons | 14 | | "Same Property" Year to Date Comparisons | 15 | | "Same Property" Oper ...