Camden Property Trust (NYSE:CPT) Q2 2023 Earnings Conference Call August 4, 2023 11:00 AM ET Company Participants Kim Callahan – Senior Vice President-Investor Relations Ric Campo – Chairman and Chief Executive Officer Keith Oden – Executive Vice Chairman and President Alex Jessett – Chief Financial Officer Conference Call Participants Nick Kerr – Citi Austin Wurschmidt – KeyBanc Capital Markets Steve Sakwa – Evercore ISI Haendel St. Juste – Mizuho John Kim – BMO Capital Markets Alexander Goldfarb – Piper S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission file number: 1-12110 TX 76-6088377 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) 1 ...

Financial Data and Key Metrics Changes - Same-property revenue growth for Q1 2023 was 8%, exceeding expectations, leading to an increase in the midpoint of 2023 revenue guidance [6][56] - Core FFO and NAREIT FFO for Q1 2023 were reported at $1.66 per share, a 12% increase from Q1 2022 [28] - The balance sheet remains strong with a net debt to EBITDA ratio of 4.3x at the end of Q1 2023 [15] Business Line Data and Key Metrics Changes - New development lease-ups showed strong performance with Camden Atlantic averaging approximately 45 leases per month, Camden NoDa at 40 leases per month, and Camden Tempe II at 30 leases per month [9] - Renewal offers for May and June were sent out in the mid-6% range, indicating a slight moderation from previous record levels [7] Market Data and Key Metrics Changes - The highest growth rates were observed in Florida markets: Tampa, Orlando, and Southeast Florida, with Nashville also performing strongly [24] - Occupancy averaged 95.3% during Q1 2023, with a slight improvement in April [25] Company Strategy and Development Direction - The company anticipates a significant reduction in new development starts, projecting a 60% drop due to the impact of Federal Reserve policies and the banking crisis [23][64] - The company is positioned to take advantage of potential market opportunities in 2025 and 2026 due to a strong balance sheet and existing development pipeline [38][64] Management's Comments on Operating Environment and Future Outlook - Management noted that multifamily transactions have slowed dramatically, with activity down 74% from the previous year [5] - The company expects to see a return to normal seasonality in leasing activity, with overall market rent growth anticipated to be slightly above 3% for the year [75] Other Important Information - The company has updated its insurance expense forecast, now expecting a 35% increase in total insurance expenses for 2023 [14][31] - The company plans to contest property tax valuations, anticipating a reduction in property tax expectations [133] Q&A Session Summary Question: What is the outlook for rent growth in April compared to Q1? - Management indicated that April's rent growth moderated to 3.9% from 4.5% but expected normal seasonality to return [16] Question: Which market is underperforming? - Atlanta was identified as underperforming due to elevated skips and evictions, along with challenges related to fraud [36] Question: What is the expectation for bad debt impact in 2023? - The original expectation was about 140 basis points for the full year, now updated to approximately 120 basis points [48] Question: How is the company positioned for future acquisitions? - The company is well-positioned with a strong balance sheet and anticipates opportunities as cap rates adjust [102][103] Question: What is the company's stance on concessions? - The company does not typically use concessions except in new lease-ups, maintaining a pricing discipline [106] Question: How does the company view the competitive landscape in Houston? - Management believes Houston will experience steady growth despite supply challenges, with a strong rental rate increase of 6.4% in Q1 [99][100]

Table of Contents | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------|-------|-----------|-------|-----------------------------|-------|----------------|-------|------------|----------| | ($ in thousands) | at \n | 3/31/2023 | | Three Months March \n2023 | 31, | Ended \n2022 | | Change \n$ | % | | Property revenues: | | | | | | | | | | | Same store communities | | 48,137 | $ | 310,126 | $ | 287,206 | $ | 22,920 | 8.0 % | | Non-same store communities | | 10,5 ...

Less: Fee and asset management income Plus: Fee and asset management expense 4,511 Less: Gain on sale of operating properties NOI Other 18,526 Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (gain) loss on acquisition of unconsolidated joint venture interests, gain on acquisition of controlling interest in joint ventures, gain on sale ...

Property Operations - As of December 31, 2022, the company owned interests in, operated, or was developing 178 multifamily properties comprising 60,652 apartment homes across the United States[82]. - The average occupancy rate for operating properties in 2022 was 96.6%[89]. - The average monthly rental rate per apartment in 2022 was $1,594 for Camden Asbury Village, with rates varying across different properties[89]. - The company reported a total of 58,702 operating properties as of December 31, 2022, an increase from 58,300 in 2021[88]. - The average monthly rental rates for various properties ranged from $1,222 to $2,573, with occupancy rates generally above 90%[101]. - Same store property revenues increased by $115.1 million, primarily due to a 12.4% increase in average rental rates[114]. - Non-same store communities saw a revenue increase of 220.7%, totaling $264.8 million[112]. - Total property revenues for the year ended December 31, 2022, reached $1.42 billion, a 24.4% increase compared to the previous year[112]. - Property net operating income (NOI) increased by 27.3% to $924.7 million, driven by improved performance across various communities[112]. - Same store property NOI increased by approximately $96.2 million for the year ended December 31, 2022, driven by a $115.1 million increase in same store property revenues[137]. - Property NOI from non-same store and development communities rose by $114.8 million for the year ended December 31, 2022, attributed to acquisitions and stabilization of properties[139]. Financial Performance - Net income attributable to common shareholders increased to $653.6 million for the year ended December 31, 2022, compared to $303.9 million for the same period in 2021, primarily due to a $474.1 million gain from the acquisition of remaining ownership interests in two investment funds[124]. - The gain on sale of operating properties decreased significantly to $36.4 million in 2022 from $174.4 million in 2021, reflecting a lower number of properties sold[124][146]. - Funds from operations rose to $719.6 million in 2022, up from $559.4 million in 2021, marking a 28.7% increase[173]. - Adjusted funds from operations reached $628.9 million in 2022, compared to $485.7 million in 2021, an increase of 29.4%[173]. - Net cash from operating activities was approximately $744.7 million in 2022, compared to $577.5 million in 2021, reflecting a 29.0% increase[177]. - Net cash used in investing activities increased significantly to approximately $1.5 billion in 2022 from $804.4 million in 2021, primarily due to the acquisition of the Funds for approximately $1.1 billion[177]. - Cash inflows from financing activities totaled approximately $109.9 million in 2022, down from $421.4 million in 2021, indicating a decrease of 73.9%[178]. - The company declared a first quarter dividend of $1.00 per common share for Q1 2023, projecting an annualized dividend rate of $4.00 for 2023[183]. Debt and Financing - The company faces risks from rising interest rates, which could increase borrowing costs and negatively impact cash flows and shareholder distributions[80]. - The company has significant debt, which could limit its ability to make required payments and pay distributions to shareholders[80]. - Scheduled repayments of debt over the next 12 months are manageable at approximately $500 million, representing about 13.6% of total outstanding debt[104]. - Interest expense rose by approximately $16.1 million, primarily due to assuming $515 million of secured mortgage debt with an average interest rate of 4.7%[120]. - Interest expense increased by 16.6% to $113.4 million in 2022 from $97.3 million in 2021[169]. - The interest expense coverage ratio was approximately 7.4 times for the year ended December 31, 2022, compared to 6.7 times for 2021[150]. - The company amended its credit facility to include a $300 million unsecured term loan and increased the capacity of its revolving credit facility from $900 million to $1.2 billion[179]. - As of December 31, 2022, the company had approximately $1.1 billion available under its $1.2 billion unsecured revolving credit facility[104]. Development and Expansion - The company has six projects under construction, expected to add 1,950 apartment homes, with an estimated additional cost to complete of approximately $306.7 million[84]. - The company has plans for future market expansion and development of additional multifamily apartment communities[82]. - Total properties under development amount to 1,950 homes with an estimated cost of $661 million, of which $354.3 million has been incurred[107]. - The company expects to continue seeking opportunities for community development and acquisitions, subject to market conditions[127]. - In 2022, the company acquired two parcels of land totaling approximately 42.6 acres in Charlotte, North Carolina for about $32.7 million, and additional land in Nashville and Richmond for approximately $30.5 million and $7.8 million respectively[103]. Operational Challenges - Changes in rent control or rent stabilization laws could adversely affect the company's operations and property values[80]. - The increase in same store property expenses was approximately $18.9 million, primarily due to higher real estate taxes, repairs, and maintenance expenses[138]. - The company incurred approximately $1.0 million in storm-related expenses due to Hurricane Ian, with no insurance recoveries[118]. - General and administrative expenses decreased as a percentage of total revenues from 5.1% in 2021 to 4.2% in 2022[120]. - Equity in income of joint ventures decreased by approximately $6.7 million for the year ended December 31, 2022, due to the consolidation of the Funds[146]. - Income tax expense increased by approximately $1.1 million for the year ended December 31, 2022, primarily due to higher state income taxes following the acquisition of the remaining ownership interests in the Funds[146]. Strategic Focus - The company is focused on investing in markets characterized by high-growth economic conditions, strong employment, and attractive quality of life[82]. - The company aims to maintain a conservative capital structure to enhance financial flexibility and capitalize on investment opportunities[174]. - The company plans to maintain a strong balance sheet and financial flexibility by focusing on core fundamentals, including generating positive cash flows and controlling overhead costs[127]. - The company has a share repurchase plan authorized for up to $500 million, with no repurchases made in 2022 or through the date of the filing[103]. - The company has common shares with an aggregate offering amount of up to $500 million remaining available for sale under its current ATM program[103].

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) for Q4 2022 of $191.6 million or $1.74 per share, a 15% increase per share from Q4 2021 [96] - The expected FFO per share for 2023 is projected to be in the range of $6.70 to $7.00, with a midpoint of $6.85, representing a $0.26 increase from 2022 results [97] - The company anticipates same-store revenue growth of 5.1% for 2023, down from the record 11.2% growth in 2022 [63][84] Business Line Data and Key Metrics Changes - Same-property revenue growth was 9.9% for Q4 2022 and 11.2% for the full year 2022, with nine markets exceeding 10% revenue growth for the quarter [118] - The company expects same-store expense growth of 5.5% in 2023, driven primarily by increases in property taxes and insurance [15][122] Market Data and Key Metrics Changes - Occupancy averaged 95.8% during Q4 2022, down from 96.6% in the previous quarter and 97.1% in Q4 2021 [71] - The company projects a 100-basis-point decline in economic occupancy due to increased supply, leading to a 5.5% rental income growth forecast for 2023 [48][148] Company Strategy and Development Direction - The company plans to maintain a balanced approach with $250 million in acquisitions offset by $250 million in dispositions, expecting no net accretion or dilution [16][151] - The company is focusing on markets with strong demand, particularly in Florida, while being cautious about markets like Houston and LA due to varying economic conditions [64][117] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued demand for apartments in 2023, citing high mortgage rates and consumer reluctance to transition to homeownership [65][83] - The macroeconomic environment remains uncertain, with potential job growth or losses being a wildcard for the year [88] Other Important Information - The company noted that rental rates for Q4 had signed new leases up 4% and renewals up 8.4%, indicating a blended rate of 6.1% [94] - The company highlighted a significant increase in insurance expenses due to global losses, projecting a 12.5% increase in insurance costs [49] Q&A Session Summary Question: What is the outlook for blended spreads and concessions? - Management indicated they do not expect new leases to go negative in the next six to nine months, despite a significant negative second derivative on growth [40][41] Question: What is the outlook for Houston and LA markets? - Management noted that Houston's outlook is improving due to energy sector strength, while LA remains stable but cautious due to higher delinquencies [117][70] Question: How does the company view the transaction market? - Management acknowledged a wide bid-ask spread in the transaction market, indicating a standoff until buyers and sellers adjust their valuation expectations [81][154]

| --- | --- | --- | --- | --- | |-----------------|------------|----------------------|---------------------|---------------------| | | | | | | | Total Portfolio | A- GRADE | Moderating OUTLOOK | 4% - 6% REVENUE | 200,000 COMPLETIONS | EXPECTED GRADE OUTLOOK REVENUE | --- | --- | --- | --- | --- | |-------------------|-------|------------|-----------|--------| | Orlando | A+ | Moderating | 6% - 8% | 12,000 | | Southeast Florida | A+ | Moderating | 6% - 8% | 11,000 | | Tampa | A+ | Moderating | 6% - 8% | 6,0 ...

Camden Property Trust (NYSE:CPT) Q3 2022 Earnings Conference Call October 28, 2022 11:00 AM ET Company Participants Kim Callahan - Senior Vice President, Investor Relations Ric Campo - Chairman & Chief Executive Officer Keith Oden - Executive Vice Chairman & President Alex Jessett - Chief Financial Officer Conference Call Participants Jeff Spector - Bank of America Nicholas Joseph - Citi Austin Wurschmidt - KeyBanc Capital Markets Neil Malkin - Capital One Securities Rich Anderson - SMBC Alexander Goldfarb ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission file number: 1-12110 CAMDEN PROPERTY TRUST (Exact Name of Registrant as Specified in Its Ch ...