Camden(CPT) - 2025 Q1 - Quarterly Results

Q1 2025 Operating Results & Outlook This section details Camden Property Trust's Q1 2025 financial performance and updated full-year guidance Q1 2025 Performance and Full-Year Guidance Camden reported strong Q1 2025 Core FFO per share of $1.72, exceeding guidance, and raised full-year 2025 Core FFO guidance to $6.78 per share due to lower borrowing costs Q1 2025 Per Share Performance vs. Prior Year and Guidance | Per Diluted Share | 1Q 2025 | 1Q 2024 | 1Q25 Guidance Midpoint | Variance from Midpoint | | :--- | :--- | :--- | :--- | :--- | | EPS | $0.36 | $0.77 | $0.34 | $0.02 | | FFO | $1.70 | $1.67 | $1.66 | $0.04 | | Core FFO | $1.72 | $1.70 | $1.68 | $0.04 | - The company raised its full-year 2025 Core FFO guidance midpoint to $6.78 per share, up from $6.75, primarily due to expected lower borrowing costs for the remainder of the year resulting from a new commercial paper program[6] Q1 2025 Same Property Performance | Same Property Results | YoY Growth (1Q25 vs. 1Q24) | Sequential Growth (1Q25 vs. 4Q24) | | :--- | :--- | :--- | | Revenues | 0.8% | 0.4% | | Expenses | 0.5% | 2.2% | | Net Operating Income (NOI) | 0.9% | (0.5)% | | Metric | 1Q25 | 1Q24 | | Occupancy | 95.4% | 95.0% | Q1 2025 Same Property Leasing Trends | Lease Rate Type | 1Q25 | 1Q24 | 4Q24 | | :--- | :--- | :--- | :--- | | Effective New Lease Rates | (3.1)% | (4.2)% | (4.6)% | | Effective Renewal Rates | 3.3% | 4.0% | 3.3% | | Effective Blended Lease Rates | (0.1)% | (0.8)% | (1.1)% | Updated 2025 Full-Year and Q2 2025 Guidance (Per Share) | Per Diluted Share | 2Q25 Range | 2025 Current Range | 2025 Current Midpoint | 2025 Prior Midpoint | | :--- | :--- | :--- | :--- | :--- | | EPS | $0.27 - $0.31 | $1.01 - $1.31 | $1.16 | $1.15 | | FFO | $1.65 - $1.69 | $6.53 - $6.83 | $6.68 | $6.65 | | Core FFO | $1.67 - $1.71 | $6.63 - $6.93 | $6.78 | $6.75 | Financial Highlights & Consolidated Statements This section presents Camden's key financial metrics, consolidated income statements, FFO reconciliations, and balance sheet data Financial Highlights For Q1 2025, Camden reported $390.6 million in property revenues, $38.8 million net income, and a Core FFO per share of $1.72 Q1 2025 Key Financial Metrics (vs. Q1 2024, in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Property revenues | $390.6 | $383.1 | | Adjusted EBITDAre | $227.3 | $224.0 | | Net income attributable to common shareholders | $38.8 | $83.9 | | Core FFO per share - diluted | $1.72 | $1.70 | | Dividends per share | $1.05 | $1.03 | Key Ratios and Balance Sheet Data (as of March 31, in billions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Debt to Annualized Adjusted EBITDAre | 4.1x | 3.9x | | Interest expense coverage ratio | 6.7x | 6.9x | | Total assets | $9.0 | $9.1 | | Total debt | $3.74 | $3.55 | Operating Results (Consolidated Statements of Income) Q1 2025 consolidated income statements show property revenues of $390.6 million, but net income decreased to $38.8 million due to a non-recurring gain in Q1 2024 Consolidated Operating Results (in millions) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Property revenues | $390.6 | $383.1 | | Total property expenses | $139.4 | $138.5 | | Gain on sale of operating property | — | $43.8 | | Net income attributable to common shareholders | $38.8 | $83.9 | | Total earnings per common share - diluted | $0.36 | $0.77 | Funds from Operations (FFO) This section reconciles net income to FFO, Core FFO, and Core AFFO, with Q1 2025 FFO at $186.9 million ($1.70/share) Reconciliation of Net Income to FFO, Core FFO, and Core AFFO (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $38.8 | $83.9 | | Real estate depreciation and amortization | 146.2 | 141.8 | | Funds from operations (FFO) | $186.9 | $183.8 | | Non-core adjustments | 2.9 | 3.8 | | Core funds from operations (Core FFO) | $189.8 | $187.6 | | Less: Recurring capitalized expenditures | (16.1) | (22.0) | | Core adjusted funds from operations (Core AFFO) | $173.7 | $165.6 | Balance Sheets As of March 31, 2025, total assets were $9.0 billion, total liabilities $4.3 billion, and total equity $4.7 billion Key Balance Sheet Items (in billions) | As of | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Total real estate assets | $8.71 | $8.58 | $8.76 | | Total assets | $8.99 | $8.85 | $9.10 | | Unsecured Notes payable | $3.41 | $3.16 | $3.22 | | Total liabilities | $4.31 | $4.10 | $4.11 | | Total equity | $4.69 | $4.75 | $4.99 | Portfolio & Operations This section details Camden's property portfolio, including regional distribution, occupancy, and net operating income analysis Portfolio Overview As of Q1 2025, Camden's portfolio includes 61,178 apartment homes, with D.C. Metro as the largest NOI contributor and 95.3% overall occupancy Portfolio by Region (Apartment Homes as of March 31, 2025) | Region | Same Property | Under Construction | Grand Total | | :--- | :--- | :--- | :--- | | D.C. Metro | 6,192 | — | 6,192 | | Houston, TX | 9,154 | — | 9,531 | | Phoenix, AZ | 4,426 | — | 4,426 | | Dallas, TX | 6,226 | — | 6,226 | | Charlotte, NC | 3,123 | 769 | 4,279 | | Total Portfolio | 57,116 | 1,531 | 61,178 | Q1 2025 NOI Contribution and Occupancy by Region | Region | "Same Property" NOI % | Q1 2025 Occupancy % | Q1 2024 Occupancy % | | :--- | :--- | :--- | :--- | | D.C. Metro | 13.4% | 97.1% | 96.6% | | Houston, TX | 11.9% | 95.1% | 94.6% | | Phoenix, AZ | 8.7% | 95.4% | 95.2% | | Dallas, TX | 8.2% | 95.0% | 94.6% | | Total Portfolio | 100.0% | 95.3% | 94.8% | Net Operating Income (NOI) Analysis Total property NOI for Q1 2025 increased to $251.1 million, with same-property NOI up 0.9% year-over-year Components of Property NOI - Q1 2025 vs Q1 2024 (in millions) | Category | Q1 2025 NOI | Q1 2024 NOI | Change | | :--- | :--- | :--- | :--- | | "Same Property" Communities | $243.4 | $241.2 | $2.2 | | Non-"Same Property" Communities | $4.8 | $2.6 | $2.2 | | Development and Lease-Up | $2.0 | $0.0 | $2.0 | | Total Property NOI | $251.1 | $244.6 | $6.5 | Sequential Same Property NOI (in millions) | Quarter | Revenues | Expenses | NOI | | :--- | :--- | :--- | :--- | | 1Q 2025 | $376.3 | $133.0 | $243.4 | | 4Q 2024 | $374.7 | $130.1 | $244.6 | | 3Q 2024 | $376.6 | $136.0 | $240.6 | Same Property Performance Same-property NOI increased 0.9% year-over-year due to revenue growth, but sequentially declined 0.5% due to higher expenses Year-over-Year Comparison (1Q25 vs 1Q24) Same-property NOI grew 0.9% year-over-year, driven by revenue increases, with Atlanta and Los Angeles showing strong performance Same Property YoY Growth by Top/Bottom Markets (1Q25 vs 1Q24) | Market | Revenue Growth | Expense Growth | NOI Growth | | :--- | :--- | :--- | :--- | | Atlanta, GA | (0.7)% | (15.9)% | 7.4% | | Los Angeles/Orange County, CA | 3.6% | (2.2)% | 6.8% | | San Diego/Inland Empire, CA | 4.5% | 2.0% | 5.6% | | Phoenix, AZ | (0.1)% | 9.9% | (3.4)% | | SE Florida | (1.7)% | 2.4% | (4.0)% | | Austin, TX | (3.3)% | (0.7)% | (5.2)% | | Total Same Property | 0.8% | 0.5% | 0.9% | Sequential Comparison (1Q25 vs 4Q24) Same-property NOI decreased 0.5% sequentially, as revenue gains were offset by a 2.2% increase in expenses, despite Atlanta's rebound Same Property Sequential Growth by Top/Bottom Markets (1Q25 vs 4Q24) | Market | Revenue Growth | Expense Growth | NOI Growth | | :--- | :--- | :--- | :--- | | Atlanta, GA | 0.9% | (24.9)% | 17.6% | | Nashville, TN | (0.1)% | (16.8)% | 9.7% | | Los Angeles/Orange County, CA | 2.3% | (0.5)% | 3.8% | | Raleigh, NC | 0.0% | 11.4% | (4.7)% | | Orlando, FL | 1.0% | 12.9% | (5.0)% | | Houston, TX | 0.4% | 11.1% | (6.7)% | | Total Same Property | 0.4% | 2.2% | (0.5)% | Operating Expense Analysis Total same-property operating expenses increased 0.5% year-over-year but rose 2.2% sequentially, primarily due to property insurance and taxes Same Property Operating Expense Changes | Expense Category | YoY Change (1Q25 vs 1Q24) | QoQ Change (1Q25 vs 4Q24) | % of 1Q25 Expenses | | :--- | :--- | :--- | :--- | | Property Taxes | (0.8)% | 3.3% | 35.6% | | Utilities | 4.5% | 1.7% | 20.2% | | Salaries and Benefits | 3.9% | (1.5)% | 18.5% | | Property Insurance | (10.4)% | 13.7% | 6.1% | | Total Same Property | 0.5% | 2.2% | 100.0% | Investment Activities This section covers Camden's development pipeline, recent acquisitions, and capital expenditure details Development Activities Camden has 797 homes in lease-up and 1,531 homes under construction, with an additional 932 homes in the future pipeline - During Q1 2025, construction commenced at Camden Nations in Nashville, TN, and leasing began at Camden Village District in Raleigh, NC[9] Development Projects in Lease-Up (as of 4/28/2025) | Community Name | Location | Homes | Total Cost ($M) | % Leased | | :--- | :--- | :--- | :--- | :--- | | Camden Woodmill Creek | Spring, TX | 189 | $72.4 | 94% | | Camden Durham | Durham, NC | 420 | $145.2 | 90% | | Camden Long Meadow Farms | Richmond, TX | 188 | $72.1 | 64% | Development Projects Under Construction | Community Name | Location | Homes | Estimated Cost ($M) | | :--- | :--- | :--- | :--- | | Camden Village District | Raleigh, NC | 369 | $138.0 | | Camden South Charlotte | Charlotte, NC | 420 | $163.0 | | Camden Blakeney | Charlotte, NC | 349 | $154.0 | | Camden Nations | Nashville, TN | 393 | $184.0 | | Total | | 1,531 | $639.0 | Future Development Pipeline | Pipeline Community | Location | Projected Homes | Estimated Cost ($M) | | :--- | :--- | :--- | :--- | | Camden Baker | Denver, CO | 434 | $191.0 | | Camden Gulch | Nashville, TN | 498 | $300.0 | | Total | | 932 | $491.0 | Acquisition Activity In Q1 2025, Camden acquired two apartment communities for $199.0 million, adding 787 homes in Austin and Nashville Q1 2025 Acquisitions | Property | Location | Purchase Price ($M) | Homes | Year Built | | :--- | :--- | :--- | :--- | :--- | | Camden Leander | Leander, TX | $67.7 | 352 | 2023 | | Camden West Nashville | Nashville, TN | $131.3 | 435 | 2020 | | Total/Average | | $199.0 | 787 | | Capital Expenditures Q1 2025 saw $16.1 million in recurring capital expenditures and $19.7 million for repositioning 589 units - Total recurring capitalized expenditures for Q1 2025 were $16.1 million, or $273 per weighted average apartment home[73] - The company spent an additional $19.7 million on repositioning 589 apartment homes to enhance their rental income potential[73][75] Debt & Capital Structure This section outlines Camden's liquidity, capital market activities, and detailed debt composition and compliance Liquidity and Capital Markets As of March 31, 2025, Camden maintained $772.9 million in liquidity and established a $600 million commercial paper program - The company established a new commercial paper program allowing for the issuance of up to $600 million in notes. As of March 31, 2025, $425.8 million was outstanding[11] - Total liquidity as of March 31, 2025, was approximately $772.9 million, comprised of $26.2 million in cash and $746.7 million available under its unsecured credit facility and commercial paper program[12] Debt Analysis Camden's total debt was $3.74 billion with a 5.7-year weighted average maturity and 4.1% interest rate, primarily unsecured and fixed-rate Debt Composition as of March 31, 2025 (in millions/billions) | Debt Type | Balance | % of Total | Weighted Avg. Interest Rate | Time to Maturity | | :--- | :--- | :--- | :--- | :--- | | Floating rate debt | $970.6 million | 26.0% | 5.2% | 2.0 Years | | Fixed rate debt | $2.77 billion | 74.0% | 3.7% | 7.0 Years | | Total Debt | $3.74 billion | 100.0% | 4.1% | 5.7 Years | - The company's debt is 91.2% unsecured, and unencumbered real estate assets (at cost) cover unsecured debt by a ratio of 3.6x[64] - Camden is in compliance with all debt covenants for its Unsecured Line of Credit and Senior Unsecured Notes, with actual performance significantly exceeding required thresholds[70][71] Supplemental Information This section provides definitions for non-GAAP financial measures, reconciliations, and other key investor data Non-GAAP Financial Measures & Reconciliations This section defines and reconciles key non-GAAP metrics like FFO, Core FFO, NOI, and EBITDAre to GAAP net income - Provides definitions for key non-GAAP metrics including Funds from Operations (FFO), Core FFO, Net Operating Income (NOI), and EBITDAre, as well as reconciliations from these measures to Net Income[77][78][83][85] Reconciliation of EPS to FFO and Core FFO Guidance (2025 Midpoint) | Per Diluted Share | 2025 Midpoint | | :--- | :--- | | Expected EPS - diluted | $1.16 | | Expected real estate depreciation and amortization | 5.45 | | Expected income allocated to non-controlling interests | 0.07 | | Expected FFO per share - diluted | $6.68 | | Anticipated Adjustments to FFO | 0.10 | | Expected Core FFO per share - diluted | $6.78 | Other Definitions and Data This section clarifies operational terms, presents unsecured debt ratings, and details the Q1 2025 dividend payment - Provides definitions for key operational terms, including Same Property Communities, various lease rate metrics (Effective, Signed, Blended), and turnover calculations (Gross, Net)[92][96][98][104] Unsecured Debt Ratings | Agency | Senior Debt | Outlook | Commercial Paper | | :--- | :--- | :--- | :--- | | Fitch | A- | Stable | NA | | Moody's | A3 | Stable | P-2 | | Standard & Poor's | A- | Stable | A-2 | - The Q1 2025 dividend was $1.05 per share, paid on April 17, 2025[111]