Camden(CPT) - 2025 Q2 - Quarterly Report

PART I FINANCIAL INFORMATION Item 1. Financial Statements 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 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 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 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 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] - 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][64] - 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] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 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] - As of June 30, 2025, the company had four properties under construction with an estimated additional cost to complete of $312.2 million[113] - 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] Results of Operations 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] Funds from Operations (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 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] - 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] - 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] Item 3. Quantitative and Qualitative Disclosures About Market Risk 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] Item 4. Controls and Procedures 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] - No material changes to internal control over financial reporting occurred during the quarter[182] 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 company is involved in several antitrust cases related to RealPage revenue management software, which are detailed in Note 10 of the financial statements[86][183] Item 1A. Risk Factors 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] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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]