Camden(US:CPT)2026-02-12 21:21Financial Performance - Net income attributable to common shareholders increased to $384.5 million for the year ended December 31, 2025, compared to $163.3 million in 2024, primarily due to gains on sales of operating properties[101]. - Net operating income (NOI) for the year ended December 31, 2025, was $1,006.8 million, representing a 2.2% increase from $985.0 million in 2024[121]. - Funds from operations (FFO) for 2025 were $744,829,000, slightly up from $738,020,000 in 2024[151]. - Core adjusted funds from operations (Core AFFO) were $649,051,000 in 2025, compared to $647,593,000 in 2024[151]. - Non-property income for the year ended December 31, 2025, was $32,483,000, representing a 34.3% increase from $24,186,000 in 2024[132]. Revenue and Expenses - Same store revenues increased by approximately 0.8% for the year ended December 31, 2025, compared to 2024, driven by higher revenues from other income and favorable changes in occupancy[99]. - Same store property revenues increased by $11.0 million (0.8%) for the year ended December 31, 2025, compared to 2024, driven by utility and ancillary income programs[125]. - Same store property expenses rose by $8.6 million (1.5%) for the year ended December 31, 2025, primarily due to higher salaries and benefits, and increased utilities[126]. - Total other expenses rose to $888,394,000 in 2025, a 6.1% increase from $837,354,000 in 2024[136]. - General and administrative expenses increased by approximately $7.0 million, or 9.6%, to $79,344,000 in 2025 from $72,365,000 in 2024, mainly due to higher legal and acquisition pursuit costs[139]. Acquisitions and Dispositions - The company acquired four operating properties in 2025 for approximately $422.9 million, including a 352-apartment community in Leander, Texas, and a 435-apartment community in Nashville, Tennessee[105]. - Five dispositions were completed in 2025 for a total of approximately $374.5 million, resulting in a total gain of approximately $260.9 million[106]. - The increase in non-same store NOI was primarily due to the acquisition of four operating properties completed in 2025 and the stabilization of additional properties[128]. - Dispositions/other property NOI decreased by approximately $2.3 million for the year ended December 31, 2025, due to lower NOI from five dispositions completed in 2025[131]. Construction and Development - The company had three projects under construction as of December 31, 2025, comprising 1,162 apartment homes, with an estimated remaining cost to complete of approximately $213.8 million[102]. - The company has a development pipeline of two communities with a total estimated cost of $491.0 million, with $96.1 million incurred to date[116]. - Future cash requirements include approximately $213.8 million to complete construction on three projects, with expected costs of $135 million to $155 million in 2026[168]. Debt and Liquidity - As of December 31, 2025, the company had approximately $1.2 billion available under its unsecured revolving credit facility, with $590.0 million outstanding under its commercial paper program[111]. - The company has a $1.2 billion unsecured revolving credit facility maturing in August 2026, with options to extend and expand the facility[159]. - As of December 31, 2025, the company had fixed rate debt of $2,766.9 million with an average interest rate of 3.7% and a weighted average maturity of 6.2 years, representing 70.9% of total debt[178]. - The company also has variable rate debt of $1,133.9 million with an average interest rate of 4.4% and a weighted average maturity of 0.4 years, accounting for 29.1% of total debt[178]. - The company plans to meet liquidity requirements through cash flows from operations, draws on credit facilities, and potential equity offerings[171]. Interest Rate Management - The weighted average interest rate on the commercial paper notes outstanding was 3.84% as of December 31, 2025[107]. - An interest rate swap with a notional amount of $500.0 million was used to convert fixed rate senior unsecured notes into a floating rate instrument, effectively hedging against interest rate changes[178]. - If interest rates on variable rate debt had been 100 basis points higher, annual interest costs would have increased by approximately $11.3 million in 2025 and $7.2 million in 2024[179]. - For fixed rate debt, a 100 basis point increase in interest rates would decrease the fair value by approximately $117.3 million as of December 31, 2025[180]. - The company follows established risk management policies to mitigate interest rate risk, including maintaining prudent levels of fixed and floating rate debt[178]. Impairments and Charges - An impairment charge of approximately $12.9 million was recorded in the fourth quarter of 2025 related to two undeveloped land parcels[103]. - The company recorded an impairment of approximately $12.9 million related to two undeveloped land parcels during the year ended December 31, 2025[175]. Dividends - The company declared a quarterly dividend of $1.05 per common share in December 2025, resulting in an annual dividend rate of $4.20 per share for the year ended December 31, 2025[172].