Camden(CPT) - 2025 Q1 - Quarterly Report

PART I FINANCIAL INFORMATION Item 1. Financial Statements This section presents Camden Property Trust's unaudited condensed consolidated financial statements, encompassing Balance Sheets, Income, Equity, and Cash Flow Statements, along with accompanying notes for Q1 2025 and 2024 Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $8.99 billion from $8.85 billion at year-end 2024, driven by real estate growth, while total liabilities rose to $4.31 billion from $4.10 billion, leading to a slight decrease in total equity to $4.69 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate assets | $8,706,394 | $8,576,106 | | Total assets | $8,993,132 | $8,852,144 | | Total liabilities | $4,305,914 | $4,104,955 | | Total equity | $4,687,218 | $4,747,189 | Condensed Consolidated Statements of Income and Comprehensive Income For the three months ended March 31, 2025, net income attributable to common shareholders significantly decreased to $38.8 million from $83.9 million in the prior-year period, primarily due to the absence of a large gain on property sale in Q1 2024, despite property revenues growing to $390.6 million Q1 2025 vs Q1 2024 Income Statement (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Property revenues | $390,565 | $383,141 | | Total property expenses | $139,420 | $138,545 | | Net income | $40,767 | $85,759 | | Net income attributable to common shareholders | $38,822 | $83,889 | | Earnings per share – diluted | $0.36 | $0.77 | - The significant year-over-year decrease in net income is largely attributable to a $43.8 million gain on the sale of an operating property recognized in Q1 2024, which did not recur in Q1 2025[11] Condensed Consolidated Statements of Equity Total equity decreased from $4.75 billion at year-end 2024 to $4.69 billion at March 31, 2025, primarily driven by cash distributions of $116.0 million exceeding the net income of $40.8 million for the quarter - For the three months ended March 31, 2025, the company declared cash distributions of $1.05 per common share, totaling $114.3 million to common shareholders[13] Condensed Consolidated Statements of Cash Flows For Q1 2025, net cash from operating activities increased to $148.2 million from $135.9 million in Q1 2024, while investing activities used $275.9 million primarily for property acquisitions, and financing activities provided $133.3 million mainly from a new commercial paper program Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $148,216 | $135,890 | | Net cash from investing activities | ($275,945) | $6,890 | | Net cash from financing activities | $133,309 | ($309,904) | | Net (decrease)/increase in cash | $5,580 | ($167,124) | Notes to Condensed Consolidated Financial Statements The notes provide detailed information supporting the financial statements, covering business operations, accounting policies, acquisition and disposition activities, debt structure, and legal contingencies, including antitrust litigation related to RealPage software and the company's portfolio of 180 multifamily properties - As of March 31, 2025, the company owned, operated, or was developing 180 multifamily properties comprising 61,178 apartment homes, with four properties under construction[20] - In Q1 2025, the company acquired two operating properties in Austin, TX and Nashville, TN for a total of approximately $199 million, while in Q1 2024, it sold one property in Atlanta, GA for $115.0 million, recognizing a gain of $43.8 million[54][55] - In February 2025, the company established a commercial paper program of up to $600 million, with $425.8 million outstanding as of March 31, 2025[61][62] - The company is a defendant in several consolidated antitrust lawsuits alleging collusion to fix rents through the use of RealPage, Inc. revenue management software, which the company believes are without merit and intends to defend against vigorously[77] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial condition, results of operations, and liquidity, highlighting a 0.8% increase in same-store revenues for Q1 2025, recent property acquisitions, and the establishment of a new commercial paper program, while noting a significant year-over-year decrease in net income due to a prior-year property sale gain Executive Summary and Outlook The company focuses on high-growth markets, with 180 properties and 61,178 homes as of March 31, 2025, reporting a 0.8% increase in Q1 2025 same-store revenues driven by higher occupancy, and plans selective acquisitions, development, and dispositions while maintaining a strong balance sheet despite elevated new multifamily supply - Same store revenues increased by approximately 0.8% for Q1 2025 compared to Q1 2024, primarily due to higher occupancy[99] - The company established a commercial paper program in February 2025 and had $425.8 million outstanding at quarter-end[104] - Future liquidity will be met through cash from operations, the unsecured revolving credit facility, the commercial paper program, and potential debt/equity offerings, including a $500 million ATM program[105] Property Portfolio and Development As of March 31, 2025, the company's portfolio comprised 176 operating properties and 4 properties under construction, with a total estimated cost of $350.7 million to complete the latter, alongside a development pipeline of two communities with 932 projected homes Properties Under Construction (as of March 31, 2025) | Location | Homes | Estimated Cost (in millions) | Cost Incurred (in millions) | | :--- | :--- | :--- | :--- | | Raleigh, NC | 369 | $138.0 | $131.5 | | Charlotte, NC | 420 | $163.0 | $66.8 | | Charlotte, NC | 349 | $154.0 | $45.7 | | Nashville, TN | 393 | $184.0 | $44.3 | | Total | 1,531 | $639.0 | $288.3 | - The company has two communities in its development pipeline in Denver, CO and Nashville, TN, with a total of 932 projected homes and a total estimated cost of $491.0 million[111] Results of Operations Total property NOI increased 2.7% to $251.1 million in Q1 2025, with same-store NOI growing 0.9% due to a 0.8% increase in revenues from higher occupancy, partially offset by a 0.5% rise in expenses, while non-same store and development properties contributed an additional $4.2 million to NOI growth Property-Level NOI (in thousands) | Category | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Same store communities | $243,369 | $241,165 | $2,204 | 0.9% | | Non-same store communities | $4,759 | $2,596 | $2,163 | 83.3% | | Development and lease-up | $2,013 | $2 | $2,011 | * | | Total property NOI | $251,145 | $244,596 | $6,549 | 2.7% | - The $2.9 million increase in same-store revenue was primarily due to higher occupancy ($1.7 million), increased utility and ancillary income ($1.1 million), and lower uncollectible revenues ($0.5 million)[119] - Depreciation and amortization expense increased by $4.5 million YoY, mainly due to the two property acquisitions in Q1 2025[132] Funds from Operations (FFO) Core Funds From Operations (Core FFO) for Q1 2025 slightly increased to $189.8 million from $187.6 million in Q1 2024, driven by higher Net Operating Income, while Core Adjusted Funds From Operations (Core AFFO) rose to $173.7 million from $165.6 million FFO Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $38,822 | $83,889 | | Real estate depreciation and amortization | $146,168 | $141,847 | | Gain on sale of operating property | — | ($43,806) | | Funds from operations (FFO) | $186,935 | $183,800 | | Core funds from operations (Core FFO) | $189,818 | $187,602 | | Core adjusted funds from operations (Core AFFO) | $173,720 | $165,577 | Liquidity and Capital Resources The company maintains a strong liquidity position, primarily funded by cash flows from operations, with full availability of its $1.2 billion unsecured revolving credit facility and a new $600 million commercial paper program, while facing $437.7 million in debt maturities and $350.7 million in construction costs over the next 12 months - Primary sources of liquidity are cash from operations, a $1.2 billion unsecured revolving credit facility, a $600 million commercial paper program, and a $500 million ATM program[142][151] - Upcoming cash requirements include $437.7 million in debt maturities over the next 12 months and an estimated $350.7 million to complete four properties under construction[154][155] - The company's senior unsecured debt is rated A3 by Moody's and A- by both Fitch and Standard & Poor's, all with stable outlooks[153] Item 3. Quantitative and Qualitative Disclosures About Market Risk The company states that there have been no material changes to its exposures to market risk since its 2024 Annual Report on Form 10-K - No material changes to market risk exposures have occurred since the year-ended December 31, 2024 Form 10-K[159] Item 4. Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[160] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[161] PART II OTHER INFORMATION Item 1. Legal Proceedings 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 report refers to Note 10 for details on legal proceedings, which primarily concern antitrust litigation involving RealPage software[162][77] Item 1A. Risk Factors The company reports that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the Risk Factors from the 2024 Annual Report on Form 10-K[163] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of the company's equity securities during the three months ended March 31, 2025 - No unregistered sales of equity securities occurred in Q1 2025[164] Item 3. Defaults Upon Senior Securities The company reported no defaults upon senior securities - None[165] Item 4. Mine Safety Disclosures This item is not applicable to the company - Not applicable[165] Item 5. Other Information The company reported no other information for this item - None[166] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including the Commercial Paper Dealer Agreement, CEO and CFO certifications, and XBRL data files - Exhibits filed include the Form of Commercial Paper Dealer Agreement and certifications from the CEO and CFO pursuant to Sarbanes-Oxley[167]