Group 1 - Camden Property Trust (CPT) shares have declined nearly 8% year-to-date, underperforming the broader market which is up over 6% [1] - The performance of Camden Property Trust is in line with the trend observed in the apartment REIT sector [1] Group 2 - The article does not provide specific financial metrics or future outlook for Camden Property Trust or the apartment REIT sector [2]

Financial Data and Key Metrics Changes - Core funds from operations (FFO) for Q2 2025 were reported at $187.6 million or $1.70 per share, which is $0.01 ahead of the midpoint of prior quarterly guidance [13] - Property revenues met expectations, and the company decreased its full-year same-store expense midpoint from 3% to 2.5%, leading to an increase in same-store net operating income (NOI) guidance from flat to positive 25 basis points [14][15] - The midpoint of full-year core FFO guidance was increased by $0.03 per share from $6.78 to $6.81, marking the second consecutive increase of this amount [15][16] Business Line Data and Key Metrics Changes - Effective new lease rates decreased by 2.1%, while renewals increased by 3.7%, resulting in a blended rate of 0.7% for the quarter, reflecting an 80 basis point improvement from the previous year [8][9] - Occupancy averaged 95.6% in Q2 2025, up from 95.4% in Q1 2025, with expectations for stability in the mid-95% range for the remainder of the year [10] Market Data and Key Metrics Changes - The company noted strong apartment demand in Sunbelt markets, with significant population and job growth continuing to support demand [5][6] - The Washington D.C. market showed the second highest quarter-over-quarter revenue growth at 3.7%, with the highest occupancy at 97.3% and rental rate growth at 4.1% [39][40] Company Strategy and Development Direction - Camden Property Trust is focused on asset recycling, with $139 million spent on acquisitions and $174 million from dispositions of older communities, indicating a strategy to optimize its portfolio [11] - The company anticipates a return to a more normal market and growth profile post-COVID, with projections of over 4% rent growth in Camden's markets in 2026, accelerating to 5% in 2027 and beyond [7][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the operating platform and the ability to maintain strong performance despite market uncertainties [22] - The company highlighted that the current economic environment, characterized by wage growth exceeding rent growth, supports continued apartment demand [5][44] Other Important Information - The company is actively pursuing kitchen and bath renovations, expecting an 8-10% return on these investments, which enhances competitiveness against new developments [79][81] - Management noted that the balance sheet remains strong, with no significant debt maturities until 2026 and low refinancing interest rate risk [16] Q&A Session Summary Question: Insights on July performance and expectations for the second half - Management indicated that blended rates increased from April to July, with expectations for the second half to be just under 1% [18][19] Question: Market performance and competitive concessions - Management acknowledged that some peers are becoming more aggressive with concessions, but Camden is positioned well in its markets, particularly in D.C. [31][32] Question: Performance of specific markets like D.C. and L.A. - D.C. showed strong performance with high occupancy and revenue growth, while L.A. also performed well, indicating market-specific strengths [39][40] Question: Rent growth outlook and historical comparisons - Management compared the current situation to post-Great Recession growth, suggesting potential for strong rent growth in the coming years due to demand outpacing supply [44][48] Question: Development outlook amidst economic uncertainty - Management remains cautious about new developments, focusing on ensuring reasonable yields and monitoring market conditions [50][52] Question: Concerns about private credit in real estate development - Management does not see significant risk from the growth of private credit in real estate, as high returns on mezzanine loans create pressure on developers [66][67] Question: Visibility on new lease rates for Q3 - Management expressed confidence in visibility for new lease rates, with good occupancy data supporting projections for Q3 and Q4 [69][70] Question: Impact of high supply and pricing on future demand - Management believes current demand is sustainable and not merely pulled forward due to attractive pricing, as household formation continues to drive demand [72][74]

Financial Data and Key Metrics Changes - The company reported core FFO for the quarter of $2.2 per diluted share, which was $0.04 per share above the midpoint of guidance [23] - Same store revenue growth for the quarter was 0.1%, driven by solid collections and occupancy [16][23] - Average physical occupancy increased to 95.6%, up 30 basis points compared to the same period in 2024 [16] Business Line Data and Key Metrics Changes - New lease pricing on a lease over lease basis for the first quarter was negative 6.3%, while renewal rates grew 4.5% [15][16] - The blended lease pricing for the first quarter was negative 0.5%, representing a 160 basis point improvement sequentially from the fourth quarter of 2024 [16] - The company completed 1,102 interior unit upgrades, achieving rent increases of $90 above non-upgraded units [19] Market Data and Key Metrics Changes - Virginia markets, including Richmond and Norfolk, outperformed the portfolio average, while Austin, Phoenix, and Nashville continued to struggle with supply pressure [17] - The company noted strong demand trends with record absorption levels in its markets, indicating a robust recovery as supply declines [21] - The occupancy for lease-up properties was at 71.6%, with one property reaching stabilization [18] Company Strategy and Development Direction - The company is focused on high growth markets and plans to start three to four new developments this year, with a suburban development in Charleston, South Carolina, on track for construction [10][11] - Investments in technology initiatives and property-wide WiFi are expected to enhance operational efficiencies and support future earnings growth [10][20] - The company aims to recycle its portfolio by selling underperforming assets and reallocating capital to markets with better growth potential [11][65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery cycle and the ability of the market to absorb new supply, citing a diversified and higher quality portfolio [12] - The company remains cautious about macroeconomic uncertainties but believes its operational efficiencies and market positioning will allow it to weather potential challenges [8] - Management indicated that the leasing environment is expected to improve, with new lease rates showing signs of acceleration [32] Other Important Information - The company maintains a strong balance sheet with $1 billion in cash and borrowing capacity, and 94% of outstanding debt is fixed [24] - The development pipeline is expected to remain in the $1 billion to $1.2 billion range, which is considered comfortable given the company's scale [11] Q&A Session Summary Question: Visibility on new lease spreads for late May or early June - Management indicated they have good visibility on new lease spreads, with a fair amount of data available for May and June [27][28] Question: Confidence in inflection in rent growth - Management noted that new lease rates have shown steady acceleration, with expectations for continued improvement into Q2 [32] Question: Impact of concessions on lease rates - Concessions have been relatively consistent, slightly down from the previous year, with most markets seeing half a month to a month of concessions [55] Question: Development cost locking and impact of tariffs - Management stated that development costs are generally locked in at around 95% when construction begins, with no significant impact from tariffs observed so far [41][42] Question: Performance of urban versus suburban markets - Management noted that urban markets may have more upside potential as supply normalizes, but performance between urban and suburban has been converging [46] Question: Improvement in Atlanta market - Atlanta has shown relative improvement, with new lease pricing and occupancy recovering compared to the previous year [50] Question: Expectations for leasing cadence and blended spreads - Management expects blended spreads to improve in Q2 and Q3, with a heavier weighting towards renewals [88]