Core Viewpoint - Camden Property Trust is strategically selling its entire California portfolio to focus on growth opportunities in the Sun Belt region, which is expected to experience significant recovery and growth in the near future [2][3]. Group 1: Portfolio Strategy - Camden is marketing its California portfolio, which includes 11 properties totaling 3,600 units, as part of a strategy to reinvest in the Sun Belt region [1]. - The decision to sell is driven by a favorable market with "lots of buyers" interested in coastal properties, indicating a vibrant transaction environment [3]. - The sale is expected to allow Camden to redeploy capital into the Sun Belt and buy back its own shares, as the cap rate for the California portfolio is lower than the implied cap rate of Camden stock [3]. Group 2: Cost Management - Moving out of California is anticipated to reduce Camden's political advocacy expenses, as 92% of its advocacy activities were concentrated in California [4]. - The shift to the Sun Belt is expected to eliminate political advocacy costs in that region, streamlining operations [4]. Group 3: Market Outlook - Camden reported a year-over-year increase in same-property revenue for 2025, with expectations of improved conditions in 2026 as new apartment supply is absorbed [5]. - The company noted that new apartment deliveries peaked in 2024 and are projected to decline, leading to below-average supply years in 2026 and 2027 [6]. - Completions as a percentage of supply peaked at nearly 4% in 2024, with expectations of less than 2% in 2025 and around 1.5% in 2027 [6].