Camden(US:CPT)2022-02-04 22:30Financial Data and Key Metrics Changes - For Q4 2021, the company reported funds from operations (FFO) of $160.2 million or $1.51 per share, exceeding prior guidance by $0.02 per share [33] - Full year 2021 FFO was $5.39 per share, with same-property revenue growth of 4.3% and net operating income (NOI) growth of 4.8% [10][33] - The 2022 guidance projects FFO per share to be in the range of $6.09 to $6.39, with a midpoint of $6.24, representing an increase of $0.85 per share from 2021 results [34] Business Line Data and Key Metrics Changes - Same-property revenue growth for Q4 2021 was 8.5%, with top performers including Tampa, Phoenix, Southern California, Raleigh, and Southeast Florida, all achieving over 10% revenue growth [26] - Rental rates for Q4 2021 showed signed new leases up 16.7% and renewals up 14.1%, resulting in a blended rate of 15.5% [26] Market Data and Key Metrics Changes - The company anticipates overall same-property revenue growth in 2022 to be between 7.75% to 9.75%, with Phoenix and Florida markets expected to achieve double-digit revenue growth [14][16] - Job growth estimates for 2022 in the company's 15 major markets range from 1 million to 1.2 million, with new completions expected to be between 150,000 to 200,000 units [15] Company Strategy and Development Direction - The company is focusing on geographic diversification, particularly in Sunbelt markets, while reducing exposure in Houston and D.C. [49][50] - The strategy includes selling down assets in underperforming markets and reallocating capital to higher-growth areas [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, expecting it to be the best year on record for earnings and same-property growth [11] - The company noted strong demand for apartment homes, particularly in Sunbelt markets, despite challenges in D.C. and Houston [56][58] Other Important Information - The company completed acquisitions of four communities totaling approximately $633 million in 2021, exceeding its original acquisition guidance [29] - The balance sheet remains strong, with a net debt-to-EBITDA ratio of 3.8x and approximately $1.4 billion in liquidity [39] Q&A Session Summary Question: Divergence in new lease rates and renewals - Management noted that the gap between new leases and renewal rates fluctuates based on market conditions and renewal caps [42][44] Question: Long-term views on Houston and D.C. portfolio - The strategy involves reducing exposure in Houston and D.C. while increasing investments in higher-growth Sunbelt markets [49][50] Question: 2022 expense environment - Property taxes are expected to rise by about 3.3% in 2022, with significant refunds contributing to a mild increase [60][62] Question: Current loss to lease for the portfolio - Current loss to lease is in the 10% to 11% range, with expectations for strong numbers in the first half of 2022 [71] Question: Rent growth from the burn-off of free rent - The company does not offer concessions, so free rent is not a factor in their rent growth [97]