Company Overview - Camden is a multifamily REIT with nearly 60,000 apartment homes located in 15 major markets across the U.S. [3] - The company is an S&P 500 entity with a total market capitalization of $16 billion and has been operating as a public company for over 30 years [3]. - Approximately 75% of Camden's portfolio is situated in Sunbelt markets, with the remainder in Washington, D.C. Metro, Southern California, and Denver [3]. Market Position - Roughly 60% of Camden's assets are located in suburban submarkets, and just over 60% are classified as Class B versus Class A in terms of price point [4]. - The markets where Camden operates lead the nation in job growth, population growth, in-migration, and overall demand for apartment homes, which has supported record levels of occupancy [4].

Company Overview - Camden is a multifamily REIT with nearly 60,000 apartment homes located in 15 major markets across the U.S. [3] - The company is an S&P 500 entity with a total market capitalization of $16 billion and has been operating as a public company for over 30 years [3] - Approximately 75% of Camden's portfolio is situated in Sunbelt markets, with the remainder in Washington, D.C. Metro, Southern California, and Denver [3] Market Position - Roughly 60% of Camden's assets are located in suburban submarkets, and just over 60% of the properties are classified as Class B versus Class A [4] - The markets where Camden operates lead the nation in job growth, population growth, in-migration, and overall demand for apartment homes [4]

Financial Data and Key Metrics Changes - Camden Property Trust has a total market cap of $16 billion and operates nearly 60,000 apartment homes across 15 major U.S. markets [2] - The company expects core FFO per share of $6.81 for 2025, with same-property growth rates projected at 1% for revenues, 2.5% for expenses, and 25 basis points for NOI at the midpoint of the range [4] Business Line Data and Key Metrics Changes - The company completed $338 million in acquisitions, adding newly built communities in Austin, Nashville, and Tampa, and $174 million in dispositions [5] - Resident retention remains high, with turnover low and move-outs for home purchases averaging just 10% since 2023 [4][11] Market Data and Key Metrics Changes - Approximately 75% of Camden's portfolio is located in Sunbelt markets, which are leading the nation in job growth, population growth, and demand for apartment homes [2][3] - The discount to rent versus buy in Camden's markets ranges from 50% to 60%, with Miami being the exception at a 20%+ discount [12][15] Company Strategy and Development Direction - Camden's strategy focuses on high-growth markets, recycling capital through acquisitions, dispositions, and redevelopment, while maintaining a strong balance sheet with low leverage [4][5] - The company is not expanding into single-family homes but is testing two build-to-rent communities in suburban Houston [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand in the Sunbelt, noting that existing supply can be absorbed with fewer jobs than previously anticipated [9][50] - The company does not foresee significant issues arising from job losses or economic downturns, as their average renter is financially strong and the demand for rentals remains robust [51] Other Important Information - The transaction market remains muted due to volatility in interest rates, with few real estate deals hitting the market [29][30] - Construction costs are beginning to decline, which may lead to a more favorable environment for new developments in the future [33] Q&A Session Summary Question: Insights on the spring-summer leasing season - Management noted that the leasing season was weaker than expected, but they absorbed a high level of new supply with fewer jobs than anticipated, which is a positive sign for future demand [8][9] Question: Move-outs for home purchases - Move-outs to home purchases have remained around 10%, which is lower than the historical average of 14%, indicating stability in the rental market [11][12] Question: Performance in Southern California and D.C. markets - Los Angeles is performing well for Camden, with high occupancy and reduced bad debt, while Northern Virginia continues to outperform due to strong demand [18][21] Question: Transaction market dynamics - The transaction market is currently limited due to interest rate volatility, but management expects more deals to emerge as rates stabilize [29][30] Question: Expansion into new markets - Camden is focused on existing markets with high population and employment growth, with no immediate plans for new market entries [59] Question: Regulatory environment - Management is not concerned about regulatory changes affecting their business, as the states they operate in are pro-business and low on regulations [61]

Core Insights - The U.S. apartment market is showing signs of softening, with mild rent cuts and easing occupancy rates indicating a shifting environment for landlords and investors [1][12] - Leading residential real estate investment trusts (REITs) like Equity Residential, AvalonBay Communities, and Camden Property Trust are still delivering steady performance despite market challenges [2][12] Apartment Market Conditions - U.S. apartment occupancy decreased slightly to 95.4% in August 2025, a 10 basis point drop month over month, but still 130 basis points higher than the previous year [3] - Effective asking rents fell by 0.2% year-over-year as of August 2025, marking the first annual rent cuts since March 2021, highlighting supply pressures and changing demand patterns [4] - The South and West regions are experiencing significant weakness due to high construction activity, with the South not seeing annual rent growth since mid-2023 [5] - Tourism-driven markets like Orlando and Las Vegas have been negatively impacted, while supply-heavy metros such as Austin, Denver, and Phoenix recorded some of the largest rent reductions [6] Performance of Coastal and High-Barrier Markets - Coastal and high-barrier-to-entry markets are performing well, with tech hubs like San Francisco, San Jose, and New York seeing rent increases between 3% and 7% year-over-year [7] Operating Updates of Residential REITs - Equity Residential reported that its same-store revenue growth is on track, expecting growth of 2.6% to 3.2% and physical occupancy of 96.4% for full-year 2025 [8] - AvalonBay Communities noted that its same-store residential revenue growth for July and August 2025 met expectations, with net operating income (NOI) growth running ahead of projections at 2.6% [10][11] - Camden Property Trust's third-quarter performance is consistent with prior expectations, indicating stable growth in its Sun Belt markets [12]

Group 1: Coca-Cola - Coca-Cola has a strong history of dividend payments, having paid dividends for over a century and increased its payout for 63 consecutive years, qualifying it as a Dividend King [4] - The current dividend yield for Coca-Cola is approximately 3%, which is more than double the S&P 500's yield of around 1.2% [5] - The company anticipates 4%-6% annual organic revenue growth in the long term, supporting mid- to high-single-digit annual earnings-per-share growth, backed by a strong balance sheet [6] Group 2: Camden Property Trust - Camden Property Trust is a REIT that owns nearly 60,000 apartment units in 15 major markets, focusing on areas with strong employment and population growth [8] - The REIT has maintained a stable and steadily rising dividend over the past 15 years, with a current yield of around 3.8% [9] - Camden expects consistent earnings and dividend growth due to high occupancy levels and steady rent growth, supported by its strong financial profile [10] Group 3: W.P. Carey - W.P. Carey is a diversified REIT that owns critical commercial real estate across North America and Europe, generating stable rental income with built-in rental escalation clauses [11] - The REIT has increased its dividend every quarter since the end of 2023, focusing on properties with better long-term growth potential after exiting the office sector [12] - W.P. Carey has invested $1.6 billion in new property investments last year and plans to maintain a similar investment rate, supporting mid-single-digit annual cash flow growth and dividend growth [13] Group 4: Investment Strategy - Coca-Cola, Camden Property Trust, and W.P. Carey are identified as excellent options for passive income investment due to their above-average dividend yields and steady growth [14] - An additional investment of $250 in these stocks is projected to add nearly $10 to the annual passive income total, contributing to financial independence goals [14]

Group 1 - The investment group High Yield Landlord, led by Jussi Askola, provides real-time insights into a REIT portfolio, including buy/sell alerts and direct access to analysts [2] - Jussi Askola is the President of Leonberg Capital, which specializes in consulting hedge funds and private equity firms on REIT investing, and has a strong academic background in the field [2] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1]

Core Viewpoint - Camden Property Trust (CPT) has not demonstrated impressive growth in its fundamentals or dividends, leading to questions about its investment potential compared to the S&P 500 [1] Performance Comparison - An investment of $1,000 in Camden in 2020 would have grown to $1,405, representing a 40% gain, which is significantly lower than the S&P 500's return of $1,907 over the same period [2] Portfolio and Growth Challenges - Camden manages a portfolio of 173 properties with over 59,000 apartment homes, making meaningful growth challenging due to high property prices and expensive rents [4] - The occupancy rate is just under 96%, leaving limited room for growth within the existing portfolio [6] Financial Metrics - In the latest quarter, Camden reported property revenue of $396.5 million, reflecting a year-over-year increase of just over 2% [5] - The funds from operations (FFO) decreased, with "core adjusted" FFO at $187.6 million, slightly down from the previous year [5] Dividend Insights - Camden's quarterly dividend is currently $1.55 per share, with a yield of 3.9%, which is considered low for the REIT sector [6] Investment Outlook - There are perceived to be better and higher-yielding investment opportunities than Camden, leading to a recommendation to pass on its stock [7]

Group 1 - Camden Property Trust (CPT) shares have declined nearly 8% year-to-date, underperforming the broader market which is up over 6% [1] - The performance of Camden Property Trust is in line with the trend observed in the apartment REIT sector [1] Group 2 - The article does not provide specific financial metrics or future outlook for Camden Property Trust or the apartment REIT sector [2]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Camden Property Trust as of June 30, 2025, and for the three and six-month periods then ended, including Balance Sheets, Statements of Income, Equity, and Cash Flows, with accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$9.12 billion** as of June 30, 2025, from **$8.85 billion** at December 31, 2024, driven by real estate growth, while total liabilities rose to **$4.46 billion** from **$4.10 billion**, primarily due to unsecured notes payable, resulting in a slight decrease in total equity from **$4.75 billion** to **$4.66 billion** Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total real estate assets** | $8,804,039 | $8,576,106 | | **Total assets** | **$9,119,573** | **$8,852,144** | | **Total liabilities** | **$4,459,577** | **$4,104,955** | | Unsecured Notes Payable | $3,495,487 | $3,155,233 | | **Total equity** | **$4,659,996** | **$4,747,189** | [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For Q2 2025, net income attributable to common shareholders nearly doubled to **$80.7 million** from **$42.9 million** in Q2 2024, largely due to a **$47.3 million** gain on property sale, while the six-month net income decreased to **$119.5 million** from **$126.8 million** year-over-year due to higher expenses Financial Performance Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Property revenues | $396,509 | $387,150 | $787,074 | $770,291 | | Net income attributable to common shareholders | $80,670 | $42,917 | $119,492 | $126,806 | | Earnings per share – diluted | $0.74 | $0.40 | $1.10 | $1.17 | | Gain on sale of operating property | $47,293 | $0 | $47,293 | $43,806 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities increased to **$378.9 million** from **$361.0 million**, investing activities used **$473.5 million** (up from **$100.5 million**), and financing activities provided **$106.9 million** (reversing a **$426.6 million** use), driven by commercial paper proceeds Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $378,879 | $360,959 | | Net cash from investing activities | ($473,457) | ($100,478) | | Net cash from financing activities | $106,914 | ($426,627) | | **Net change in cash** | **$12,336** | **($166,146)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial activities, including business description, acquisition and disposition activities, debt structure, share-based compensation, and ongoing antitrust litigation - As of June 30, 2025, Camden owned interests in, operated, or was developing **180 multifamily properties** comprising **61,203 apartment homes**, with **four properties** under construction[27](index=27&type=chunk) - During the first six months of 2025, the company acquired **three operating properties** for a total of **$337.7 million** and sold **one operating property** for **$60.0 million**, recognizing a gain of **$47.3 million**[62](index=62&type=chunk)[64](index=64&type=chunk) - The company is a defendant in several consolidated antitrust lawsuits alleging collusion with RealPage, Inc. and other multifamily operators to fix rents, which the company believes are without merit and intends to defend against vigorously[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a **0.9%** increase in same-store revenues for the first six months of 2025, driven by higher occupancy, and details consolidated results, property portfolio changes, development activities, and Net Operating Income (NOI), while maintaining a strong balance sheet and sufficient liquidity - Same store revenues increased by **1.0%** for Q2 2025 and **0.9%** for the first six months of 2025 compared to the same periods in 2024, primarily due to higher occupancy[110](index=110&type=chunk) - As of June 30, 2025, the company had **four properties** under construction with an estimated additional cost to complete of **$312.2 million**[113](index=113&type=chunk) - In February 2025, the company established a commercial paper program of up to **$600.0 million**, with **$515.6 million** outstanding as of June 30, 2025[116](index=116&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Total property NOI increased by **1.8%** in Q2 2025 and **2.3%** in the first six months of 2025 year-over-year, with same-store NOI growing **0.2%** in Q2 and **0.6%** in the six-month period, driven by revenue growth from higher occupancy partially offset by increased operating expenses, significantly supplemented by non-same store communities Property NOI Analysis (in thousands) | Category | Q2 2025 | Q2 2024 | % Change | Six Months 2025 | Six Months 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Same store communities NOI | $241,000 | $240,431 | 0.2% | $483,414 | $480,682 | 0.6% | | Non-same store communities NOI | $7,121 | $3,065 | * | $12,501 | $5,530 | * | | **Total property NOI** | **$252,837** | **$248,261** | **1.8%** | **$503,982** | **$492,857** | **2.3%** | - The increase in same-store property expenses for Q2 2025 was primarily due to higher utilities (**$1.3M**), salaries and benefits (**$1.2M**), and repairs and maintenance (**$0.6M**), partially offset by lower property insurance (**$1.0M**)[134](index=134&type=chunk) [Funds from Operations (FFO)](index=32&type=section&id=Funds%20from%20Operations%20(FFO)) Funds from Operations (FFO) for Q2 2025 was **$184.2 million**, a slight decrease from **$187.7 million** in Q2 2024, while for the six-month period, FFO was nearly flat at **$371.1 million**, with Core FFO for Q2 2025 at **$187.6 million** and increasing to **$377.4 million** for the six-month period FFO Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to common shareholders | $80,670 | $42,917 | $119,492 | $126,806 | | **Funds from operations (FFO)** | **$184,187** | **$187,705** | **$371,122** | **$371,505** | | **Core funds from operations (Core FFO)** | **$187,557** | **$187,892** | **$377,375** | **$375,494** | | **Core adjusted funds from operations (Core AFFO)** | **$157,589** | **$158,297** | **$331,309** | **$323,874** | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with primary sources including cash from operations, a **$1.2 billion** unsecured revolving credit facility, and a new **$600 million** commercial paper program, which are sufficient to meet future cash requirements of **$312.2 million** for properties under construction and **$527.5 million** in debt maturities over the next 12 months - As of June 30, 2025, the company had full availability of **$1.2 billion** under its unsecured revolving credit facility[170](index=170&type=chunk) - Future cash requirements include an estimated **$312.2 million** to complete **four properties** currently under construction, with the majority of costs to be incurred from late 2025 through 2028[176](index=176&type=chunk) - The company has a **$500.0 million** at-the-market (ATM) share offering program, under which no shares have been sold as of the filing date[173](index=173&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes to its exposures to market risk since its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to market risk exposures have occurred since the 2024 year-end 10-K filing[180](index=180&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of the end of the quarter, with no material changes in internal control over financial reporting during the most recent fiscal quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[181](index=181&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[182](index=182&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company incorporates by reference the litigation disclosures from Note 10 of the financial statements, which detail ongoing antitrust lawsuits related to the use of RealPage revenue management software - The company is involved in several antitrust cases related to RealPage revenue management software, which are detailed in Note 10 of the financial statements[86](index=86&type=chunk)[183](index=183&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the Risk Factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the 2024 Annual Report[184](index=184&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of its equity securities during the three months ended June 30, 2025 - There were no unregistered sales of equity securities in Q2 2025[185](index=185&type=chunk)

Financial Data and Key Metrics Changes - The company reported core funds from operations (FFO) for Q2 2025 at $187.6 million or $1.70 per share, which is $0.01 ahead of prior guidance [14] - Property revenues met expectations, and the company decreased its full-year same-store expense midpoint from 3% to 2.5%, while increasing same-store net operating income guidance from flat to positive 25 basis points [15][16] - The midpoint of full-year core FFO guidance was increased by $0.03 per share from $6.78 to $6.81, marking the second consecutive increase [16][17] Business Line Data and Key Metrics Changes - Rental rates for Q2 showed effective new leases down 2.1% and renewals up 3.7%, resulting in a blended rate of 0.7%, which reflects an improvement from previous quarters [10] - Occupancy averaged 95.6% in Q2, slightly up from 95.4% in the previous year, with expectations to remain stable in the mid-95% range [11] Market Data and Key Metrics Changes - The company noted strong apartment demand, with the second quarter being one of the best in 25 years, supported by wage growth exceeding rent growth for 31 months [6][7] - The DC market showed the highest quarter-over-quarter revenue growth at 3.7%, while LA also performed well, indicating strong demand in these areas [38] Company Strategy and Development Direction - The company is focused on asset recycling, with $139 million spent on acquisitions and $174 million from dispositions, indicating a strategy to optimize its portfolio [12] - The company anticipates better than 4% rent growth in its markets in 2026, with expectations of a return to a more normal growth profile post-COVID [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the operating platform and the ability to maintain performance despite market uncertainties [22] - The company highlighted that the current economic environment has led to cautious behavior among operators, focusing on occupancy rather than pushing for higher rates [33][34] Other Important Information - The company has no significant debt maturities until 2026 and no dilutive debt maturities until 2027, positioning it well for future growth [17] - The customer sentiment score reached a record high of 91.6, reflecting strong resident satisfaction and retention [23] Q&A Session Summary Question: Insights on July data and expectations for the second half - Management indicated that blended rates increased from April to July, with expectations for the second half to be just under 1% [20] Question: Market performance and lease-up trends - Management noted that while some peers are facing challenges, their markets, particularly DC, are performing well with strong demand [31][38] Question: Development outlook amidst economic uncertainty - Management acknowledged a cautious approach to new developments due to market uncertainties but remains committed to starting projects when conditions are favorable [49] Question: Rent growth projections and underlying assumptions - Management expressed optimism about achieving projected rent growth due to strong demand and declining supply, with expectations for 4% growth in 2026 [45][84] Question: Impact of high supply and pricing on future demand - Management believes current demand is sustainable and not being pulled forward due to attractive pricing, as household formation continues to drive demand [68] Question: Renovation strategies and expected yields - The company plans to continue kitchen and bath renovations, expecting an 8-10% return on these investments [74][76]