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Camden(CPT) - 2025 Q2 - Quarterly Results
CamdenCamden(US:CPT)2025-07-31 20:33

Press Release Camden Property Trust announced its second quarter 2025 operating results, highlighting key financial metrics and providing updated guidance Operating Results Summary Camden reported diluted EPS of $0.74 in Q2 2025, driven by a property sale gain, while FFO and Core FFO met guidance Per Diluted Share | Per Diluted Share | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | EPS | $0.74 | $0.40 | $1.10 | $1.17 | | FFO | $1.67 | $1.71 | $3.37 | $3.37 | | Core FFO | $1.70 | $1.71 | $3.42 | $3.41 | | Core AFFO | $1.43 | $1.44 | $3.01 | $2.94 | - The Q2 2025 EPS of $0.74 included a significant gain of approximately $0.43 per diluted share from the sale of an operating property6 - Q2 2025 FFO of $1.67 met the company's guidance midpoint, while Core FFO of $1.70 slightly exceeded the guidance midpoint of $1.696 Same Property Performance Same-property NOI grew 0.2% year-over-year in Q2 2025, with improved occupancy and positive blended lease rates Same Property Results | Same Property Results | 2Q25 vs. 2Q24 | 2Q25 vs. 1Q25 | 2025 vs. 2024 | | :--- | :--- | :--- | :--- | | Revenues | 1.0% | 0.8% | 0.9% | | Expenses | 2.4% | 3.2% | 1.5% | | Net Operating Income ("NOI") | 0.2% | (0.6)% | 0.6% | Operating Statistics | Operating Statistics | 2Q25 | 2Q24 | 1Q25 | | :--- | :--- | :--- | :--- | | Occupancy | 95.6% | 95.3% | 95.4% | | Effective New Lease Rates | (2.1)% | (2.5)% | (3.1)% | | Effective Renewal Rates | 3.7% | 3.4% | 3.3% | | Effective Blended Lease Rates | 0.7% | 0.1% | (0.1)% | - Bad debt as a percentage of revenue decreased to 0.6% in Q2 2025 from 0.8% in Q2 2024. Annualized net turnover also decreased to 39% from 42% year-over-year9 Development, Acquisition & Disposition Activity Camden completed lease-up at one community, continued leasing at three others, acquired a property for $138.7 million, and disposed of properties for $60.0 million - Leasing is ongoing at three development communities: Camden Durham (95% leased), Camden Long Meadow Farms (75% leased), and Camden Village District (37% leased)101112 - The company acquired Camden Clearwater, a 360-unit community in the Tampa, FL area, for approximately $138.7 million13 - A 337-unit community in Houston, TX was sold for $60.0 million, resulting in a gain of approximately $47.3 million13 Liquidity and Earnings Guidance Camden reported $717.5 million in liquidity and updated full-year 2025 guidance, raising EPS, FFO, and same-property NOI growth midpoints - As of quarter-end, total liquidity was approximately $717.5 million, with $312.2 million remaining to be funded for the existing development pipeline14 2025 Full-Year Guidance | 2025 Full-Year Guidance | Current Midpoint | Prior Midpoint | Change | | :--- | :--- | :--- | :--- | | EPS | $2.38 | $1.16 | $1.22 | | FFO | $6.70 | $6.68 | $0.02 | | Core FFO | $6.81 | $6.78 | $0.03 | 2025 Same Property Growth Guidance | 2025 Same Property Growth Guidance | Current Midpoint | Prior Midpoint | Change | | :--- | :--- | :--- | :--- | | Revenues | 1.00% | 1.00% | 0.00% | | Expenses | 2.50% | 3.00% | (0.50)% | | NOI | 0.25% | 0.00% | 0.25% | Financial Statements and Portfolio Data This section presents detailed financial statements and portfolio statistics, including highlights, operating results, FFO reconciliation, balance sheets, and market-level portfolio data Financial Highlights Q2 2025 financial highlights show increased net income due to property sales, higher property revenues, and a rise in the Net Debt to EBITDAre ratio Key Financial Metrics (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Property revenues | $396,509 | $387,150 | | Net income attributable to common shareholders | $80,670 | $42,917 | | FFO per share - diluted | $1.67 | $1.71 | | Dividends per share | $1.05 | $1.03 | | Net Debt to Annualized Adjusted EBITDAre | 4.2x | 3.9x | - Total assets as of June 30, 2025, were $9.12 billion, a slight increase from $9.08 billion a year prior. Total debt increased to $3.83 billion from $3.55 billion over the same period25 Operating Results Q2 2025 consolidated operating results show property revenues of $396.5 million, with a $47.3 million gain on property sale contributing to $80.7 million net income Consolidated Operating Results (in thousands) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Property revenues | $396,509 | $387,150 | | Total property expenses | $143,672 | $138,889 | | Gain on sale of operating property | $47,293 | — | | Net income attributable to common shareholders | $80,670 | $42,917 | Funds from Operations Q2 2025 FFO was $184.2 million ($1.67/share), with Core FFO at $187.6 million ($1.70/share) and Core AFFO at $157.6 million ($1.43/share) FFO Reconciliation (in thousands) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $80,670 | $42,917 | | Funds from operations | $184,187 | $187,705 | | Core funds from operations | $187,557 | $187,892 | | Core adjusted funds from operations | $157,589 | $158,297 | Per Share FFO Data | Per Share Data | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | FFO - diluted | $1.67 | $1.71 | | Core FFO - diluted | $1.70 | $1.71 | | Core AFFO - diluted | $1.43 | $1.44 | Balance Sheets As of June 30, 2025, total assets reached $9.12 billion, with liabilities increasing to $4.46 billion and equity slightly decreasing to $4.66 billion Consolidated Balance Sheet Summary (in thousands) | (In thousands) | Jun 30, 2025 | Dec 31, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Total real estate assets | $8,804,039 | $8,576,106 | $8,722,145 | | Total assets | $9,119,573 | $8,852,144 | $9,079,574 | | Total liabilities | $4,459,577 | $4,104,955 | $4,152,642 | | Total equity | $4,659,996 | $4,747,189 | $4,926,932 | Portfolio Statistics Camden's portfolio includes 61,203 homes, with D.C. Metro and Houston as top NOI contributors, and overall occupancy at 95.6% - The total portfolio consists of 56,781 same-property homes, 2,283 non-same-property homes, 608 homes in lease-up, and 1,531 homes under construction39 Top 5 Markets by Same Property NOI Contribution (Q2 2025) | Top 5 Markets by Same Property NOI Contribution (Q2 2025) | % of NOI | | :--- | :--- | | D.C. Metro | 14.0% | | Houston, TX | 11.7% | | Phoenix, AZ | 8.6% | | Dallas, TX | 8.2% | | SE Florida | 7.0% | - Total portfolio weighted average occupancy for Q2 2025 was 95.6%, showing improvement both sequentially (from 95.3%) and year-over-year (from 95.2%)41 Property Net Operating Income (NOI) Analysis This section analyzes Net Operating Income (NOI) components, sequential changes, and same-property comparisons by market, including operating expenses Components of Property Net Operating Income Total property NOI reached $252.8 million in Q2 2025, with Same Property NOI contributing $241.0 million and other segments showing significant growth Property Net Operating Income (in thousands) | Property Net Operating Income (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | "Same Property" Communities | $241,000 | $240,431 | $569 | | Non-"Same Property" Communities | $7,121 | $3,065 | $4,056 | | Development and Lease-Up Communities | $1,611 | $354 | $1,257 | | Total Property Net Operating Income | $252,837 | $248,261 | $4,576 | - Sequentially, total property NOI increased from $251.1 million in Q1 2025 to $252.8 million in Q2 2025. However, same-property NOI saw a slight sequential decrease of 0.6% from $242.4 million in Q1 202546 Same Property Comparisons Same-property NOI grew 0.2% year-over-year, led by Nashville and Los Angeles, but declined 0.6% sequentially due to expense increases - In the Q2 2025 vs Q2 2024 comparison, Los Angeles/Orange County (+4.6%) and D.C. Metro (+3.7%) led in revenue growth, while Austin (-3.1%) saw the largest decline49 - Sequentially (Q2 2025 vs Q1 2025), same-property revenue grew 0.8% while expenses increased by 3.2%, leading to a 0.6% decline in NOI. Atlanta experienced a 30.3% sequential increase in expenses52 - For the six months ended June 30, 2025, same-property NOI grew 0.6% year-over-year, with revenues up 0.9% and expenses up 1.5%. Los Angeles/Orange County (+6.1%) and Nashville (+5.4%) were the strongest markets for YTD NOI growth56 Same Property Operating Expense Detail Same-property operating expenses rose 2.4% year-over-year in Q2 2025, driven by marketing, G&A, and utilities, while property insurance costs decreased Quarterly Same Property Operating Expense Comparison (2Q25 vs 2Q24) | Quarterly Comparison (2Q25 vs 2Q24) | $ Change (thousands) | % Change | | :--- | :--- | :--- | | Property Taxes | $228 | 0.5% | | Salaries and Benefits | $1,241 | 5.1% | | Utilities | $1,304 | 5.2% | | Property Insurance | ($984) | (11.9)% | | Marketing and Leasing | $350 | 12.6% | | Total Same Property | $3,154 | 2.4% | - Sequentially, expenses rose 3.2% from Q1 2025, driven primarily by a 37.1% increase in Marketing and Leasing and a 15.4% increase in Repairs and Maintenance60 - Year-to-date, total same-property expenses are up 1.5%, with Property Insurance showing an 11.1% decrease, while Utilities are up 4.9%60 Development, Acquisitions & Dispositions This section outlines Camden's real estate investment activities, including current development projects, future pipeline, and recent acquisitions and dispositions Current Development Communities Camden has two communities in lease-up (89% leased) and four communities with 1,531 homes under construction, totaling $639.0 million in estimated costs - Completed communities in lease-up, Camden Durham and Camden Long Meadow Farms, were 95% and 75% leased, respectively, as of July 28, 202562 - There are four development communities under construction with a total of 1,531 homes and a total estimated cost of $639.0 million. The company has spent $326.8 million to date on these projects62 Development Pipeline Camden's future development pipeline includes two planned communities, Camden Baker and Camden Gulch, totaling 932 homes with an estimated cost of $491.0 million Development Pipeline Communities | Pipeline Communities | Homes | Estimated Cost ($M) | Cost to Date ($M) | | :--- | :--- | :--- | :--- | | Camden Baker (Denver, CO) | 434 | $191.0 | $38.5 | | Camden Gulch (Nashville, TN) | 498 | $300.0 | $54.2 | | Total | 932 | $491.0 | $92.7 | Acquisitions & Dispositions In 2025, Camden acquired three properties for $337.7 million and disposed of three properties for $173.5 million, actively recycling its portfolio - Total 2025 acquisitions amount to $337.7 million for 1,147 homes, with the latest being Camden Clearwater in Florida for $138.7 million69 - Total 2025 dispositions (including post-quarter activity) amount to $173.5 million for 963 homes, primarily in Houston and Dallas metro areas69 Debt and Capital Structure This section details Camden's $3.8 billion debt profile, including maturities, interest rates, covenant compliance, and capitalized expenditures Debt Analysis and Maturities Camden's total debt is $3.83 billion, with 72.3% fixed-rate and 91.4% unsecured, and a weighted average maturity of 5.4 years - Total debt is $3.83 billion with a weighted average interest rate of 4.1% and a weighted average maturity of 5.4 years71 Debt Type Breakdown | Debt Type | Balance (thousands) | % of Total | Weighted Avg. Interest Rate | | :--- | :--- | :--- | :--- | | Floating rate | $1,060,316 | 27.7% | 5.1% | | Fixed rate | $2,765,647 | 72.3% | 3.7% | | Unsecured | $3,495,487 | 91.4% | 4.1% | | Secured | $330,476 | 8.6% | 3.9% | - 92.5% of the company's apartment homes are unencumbered, representing 93.7% of the total Q2 2025 NOI71 Debt Covenant Analysis Camden remains in compliance with all debt covenants, demonstrating significant headroom across key financial ratios for both unsecured credit and notes Unsecured Line of Credit Covenant Compliance | Unsecured Line of Credit Covenant | Required | Actual | Compliance | | :--- | :--- | :--- | :--- | | Total Consolidated Debt to Gross Asset Value | < 60% | 23% | Yes | | Consolidated Adjusted EBITDAre to Total Fixed Charges | > 150% | 544% | Yes | Senior Unsecured Notes Covenant Compliance | Senior Unsecured Notes Covenant | Required | Actual | Compliance | | :--- | :--- | :--- | :--- | | Total Unencumbered Asset Value to Total Unsecured Debt | > 150% | 367% | Yes | | Consolidated Income Available for Debt Service to Total Annual Service Charges | > 150% | 565% | Yes | Capitalized Expenditures & Maintenance Expense Camden incurred $30.0 million in Q2 2025 recurring capitalized expenditures ($503 per unit) and an additional $21.7 million for repositioning 726 homes - Total recurring capitalized expenditures for Q2 2025 were $29.97 million, or $503 per unit81 - Year-to-date recurring capitalized expenditures totaled $46.1 million, or $776 per unit81 - The company spent an additional $21.7 million in Q2 2025 on repositioning 726 apartment units, averaging $29,942 per repositioned home81 Definitions and Reconciliations This section defines non-GAAP financial measures like FFO and NOI, provides their reconciliations to GAAP, and includes other operational terms and corporate data Non-GAAP Financial Measures - Definitions & Reconciliations This section defines and reconciles key non-GAAP metrics, including FFO, Core FFO, and Core AFFO, to their GAAP equivalents - Provides the NAREIT definition of FFO and explains how Camden calculates Core FFO by adjusting for non-core items and Core AFFO by further subtracting recurring capital expenditures858687 - Includes a detailed reconciliation of Net Income to FFO, Core FFO, and Core AFFO for the three and six months ended June 30, 2025 and 202487 - Provides a reconciliation of the company's Q3 2025 and full-year 2025 guidance for EPS to its guidance for FFO and Core FFO per share89 Other Definitions and Data This section defines operational and financial terms, including 'Same Property Communities', and provides corporate data such as unsecured debt ratings - Defines 'Same Property Communities' as communities wholly owned and stabilized since January 1, 2024, excluding those under redevelopment or held for sale111 Unsecured Debt Ratings | Unsecured Debt Ratings | Senior Debt | Outlook | Commercial Paper | | :--- | :--- | :--- | :--- | | Fitch | A- | Stable | NA | | Moody's | A3 | Stable | P-2 | | Standard & Poor's | A- | Stable | A-2 | Community Table This section provides a detailed, property-by-property listing of Camden's portfolio as of June 30, 2025, including location, homes, occupancy, and rental rates - Provides a comprehensive list of all 176 operating properties, detailing key statistics for each, including location, size, occupancy, and rental rates as of June 30, 2025124125130 - The data is aggregated by market, providing totals for regions such as Arizona, California, Colorado, D.C. Metro, Florida, Georgia, North Carolina, Tennessee, and Texas125128130