Camden Property Trust (CPT) Bundle
A Brief History of Camden Property Trust
Camden Property Trust (CPT), a leading real estate investment trust (REIT), has focused on the acquisition, development, and management of multifamily residential communities across the United States. By the end of 2024, Camden Property Trust has established a robust portfolio, with a total of 56,000 apartment homes across 195 properties, primarily located in high-demand markets.
Financial Performance Overview
For the nine months ended September 30, 2024, Camden reported a net income of approximately $128.2 million, a decrease compared to $186.4 million for the same period in 2023. This decline was primarily attributed to a $41.0 million impairment charge associated with land development activities.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $128.2 million | $186.4 million |
| Earnings Per Share (EPS) - Basic | $1.13 | $1.66 |
| Earnings Per Share (EPS) - Diluted | $1.13 | $1.66 |
| Funds from Operations (FFO) | $563.6 million | $561.4 million |
| Core FFO | $188.1 million | $190.7 million |
Revenue Streams
Camden's revenue structure consists of rental income from its multifamily properties and additional income from management and development services. For the nine months ended September 30, 2024, total property revenues increased to approximately $1.1 billion, representing a rise from the previous year, driven by higher rental rates and occupancy levels across its properties.
Development and Disposition Activities
As of September 30, 2024, Camden had five properties under construction, consisting of 1,746 apartment homes. The estimated total cost to complete these developments is approximately $267.0 million. In February 2024, Camden sold an operating property in Atlanta, Georgia for $115.0 million, recognizing a gain of approximately $43.8 million from the transaction.
| Development and Disposition Summary | 2024 |
|---|---|
| Properties Under Construction | 5 |
| Total Apartment Homes Under Construction | 1,746 |
| Estimated Cost to Complete | $267 million |
| Property Sold (February 2024) | 1 in Atlanta, GA |
| Sale Price | $115 million |
| Gain on Sale | $43.8 million |
Cash Flow Analysis
During the nine months ended September 30, 2024, Camden reported net cash from operating activities of approximately $622.5 million, reflecting an increase from $603.0 million in the same period of 2023. The increase was driven by higher rental income prepayments and strong operational performance despite property sales.
| Cash Flow Summary | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash from Operating Activities | $622.5 million | $603.0 million |
| Net Cash Used in Investing Activities | ($196.0 million) | ($240.7 million) |
| Net Cash Used in Financing Activities | ($652.2 million) | ($356.8 million) |
Debt and Financial Flexibility
As of September 30, 2024, Camden's total outstanding debt amounted to approximately $3.45 billion, with a weighted average interest rate of 4.2%. The company has maintained strong financial flexibility, with approximately 89.9% of its properties unencumbered. Camden has a $1.2 billion unsecured revolving credit facility, maturing in August 2026, with options to extend and expand.
| Debt Summary | Amount | Weighted Average Interest Rate |
|---|---|---|
| Total Outstanding Debt | $3.45 billion | 4.2% |
| Unencumbered Properties | 89.9% | - |
| Revolving Credit Facility | $1.2 billion | - |
A Who Owns Camden Property Trust (CPT)
Ownership Structure
As of September 30, 2024, Camden Property Trust (CPT) had approximately 106.7 million common shares outstanding. The company is structured as a Real Estate Investment Trust (REIT), which requires it to distribute at least 90% of its taxable income to shareholders to maintain its tax-exempt status.
Major Shareholders
The following table details the significant shareholders of Camden Property Trust, including institutional and individual ownership percentages as of 2024:
| Shareholder Type | Number of Shares (millions) | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | 81.5 | 76.5 |
| Individual Investors | 25.2 | 23.5 |
| Total Shares Outstanding | 106.7 | 100.0 |
Institutional Ownership Breakdown
The institutional ownership of Camden Property Trust is diversified among various investment funds and asset management firms. The following table outlines the largest institutional shareholders:
| Institution | Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|
| The Vanguard Group, Inc. | 16.4 | 15.4 |
| BlackRock, Inc. | 12.7 | 11.9 |
| State Street Corporation | 10.1 | 9.5 |
| Invesco Ltd. | 7.8 | 7.3 |
| FMR LLC (Fidelity) | 6.5 | 6.1 |
| Other Institutional Investors | 27.5 | 25.7 |
| Total Institutional Ownership | 81.5 | 76.5 |
Recent Stock Performance
As of September 30, 2024, Camden Property Trust's stock was trading at approximately $96.88 per share. The company has a market capitalization of around $10.3 billion, reflecting its strong position in the multifamily real estate sector.
Dividend Distribution
Camden Property Trust maintains a regular dividend policy, having declared a cash distribution of $1.00 per common share in 2024. For the nine months ended September 30, 2024, total cash distributions to common shareholders and non-controlling interests amounted to approximately $337.5 million.
Conclusion on Ownership Trends
Camden Property Trust continues to attract institutional investment, which reflects confidence in its operational strategy and market position. The significant institutional ownership suggests a stable investment base, while the presence of individual investors indicates growing retail interest in the REIT. This ownership structure supports the company’s ongoing development and operational activities across its diverse multifamily property portfolio.
Camden Property Trust (CPT) Mission Statement
Mission Statement Overview
Camden Property Trust aims to be a leader in the multifamily real estate sector, committed to delivering exceptional living experiences through innovative property management and development strategies. The company emphasizes sustainability, customer service, and community engagement as core components of its operational ethos.
Financial Performance Metrics
As of September 30, 2024, Camden Property Trust reported significant financial metrics that underscore its mission to create value for shareholders while enhancing the living experience for residents.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (Loss) Attributable to Common Shareholders | $(4.2) million | $48.0 million | -108.8% |
| Earnings Per Share (Diluted) | $(0.04) | $0.44 | -109.1% |
| Total Revenue | $387.2 million | $390.8 million | -0.9% |
| Property NOI | $243.9 million | $250.7 million | -2.7% |
| Funds From Operations (FFO) | $188.1 million | $190.7 million | -1.4% |
| Core FFO | $162.4 million | $164.2 million | -1.1% |
Property Operations and Development
As of September 30, 2024, Camden Property Trust has a robust property portfolio with ongoing developments aimed at expanding its reach in key markets.
| Property Type | Number of Homes | Properties | Estimated Total Costs (in millions) |
|---|---|---|---|
| Operating Properties | 58,250 | 172 | N/A |
| Properties Under Construction | 1,746 | 5 | $267.0 |
| Completed Properties in Lease-Up | 189 | 1 | $71.6 |
Operational Highlights
Camden Property Trust has strategically positioned itself in desirable multifamily markets, focusing on operational excellence and tenant satisfaction.
| Operational Metric | Value |
|---|---|
| Average Rental Rate Increase | $7.5 million |
| Lower Uncollectible Revenue | $7.3 million |
| Property Management Expenses | $29.1 million |
| General and Administrative Expenses | $53.7 million |
Sustainability Initiatives
Camden Property Trust is committed to sustainability, integrating eco-friendly practices into its operations and developments.
| Sustainability Metric | Details |
|---|---|
| Properties with Green Certifications | Over 30% of portfolio |
| Energy Efficiency Improvements | Target of 20% reduction by 2025 |
| Water Conservation Initiatives | Implemented in 50% of properties |
Conclusion of Financial Standing
Camden Property Trust continues to navigate the multifamily landscape with a strong focus on delivering value through strategic growth, operational efficiency, and sustainable practices. Their financial metrics reflect both the challenges and opportunities ahead.
How Camden Property Trust (CPT) Works
Company Overview
Camden Property Trust (CPT) is a leading real estate investment trust (REIT) that focuses on acquiring, developing, and managing multifamily apartment communities. As of September 30, 2024, Camden operates 55,866 apartment homes across various locations, primarily in the Sunbelt region of the United States.
Financial Performance
For the three months ended September 30, 2024, Camden reported a net loss attributable to common shareholders of $4.2 million, compared to a net income of $48.0 million for the same period in 2023. For the nine months ended September 30, 2024, net income was $122.6 million, down from $181.0 million in 2023.
| Period | Net Income (Loss) ($ million) | Earnings Per Share (EPS) ($) |
|---|---|---|
| Q3 2024 | (4.2) | (0.04) |
| Q3 2023 | 48.0 | 0.44 |
| 9M 2024 | 122.6 | 1.13 |
| 9M 2023 | 181.0 | 1.66 |
Revenue Analysis
Camden's total revenue for the nine months ended September 30, 2024, was approximately $1.16 billion, reflecting an increase from $1.15 billion in the same period of 2023. The increase in revenue was primarily driven by higher average rental rates and lower uncollectible revenue.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled approximately $633.2 million, compared to $607.7 million for the same period in 2023. The increase was attributed to higher salaries and benefits, repairs, and maintenance expenses.
| Expense Category | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Property Management | 9.8 | 7.9 |
| General and Administrative | 18.8 | 15.5 |
| Depreciation and Amortization | 145.8 | 144.4 |
| Total Expenses | 215.9 | 197.9 |
Net Operating Income (NOI)
Camden's property net operating income (NOI) for the three months ended September 30, 2024, was $243.9 million, down from $250.7 million in Q3 2023. For the nine-month period, NOI was $736.7 million, compared to $742.1 million in 2023.
Debt and Liquidity Position
As of September 30, 2024, Camden had total indebtedness of approximately $1.1 billion, with a weighted average maturity of 6.5 years. The company has a $1.2 billion unsecured revolving credit facility, maturing in August 2026.
| Debt Type | Amount ($ million) | Interest Rate (%) |
|---|---|---|
| Term Loan (due 2026) | 39.9 | 6.04 |
| Unsecured Revolving Credit Facility | 138.0 | 5.66 |
| Senior Unsecured Notes (due 2026) | 510.1 | 6.29 |
| Senior Unsecured Notes (due 2028) | 399.0 | 3.74 |
Development Activities
As of September 30, 2024, Camden had five properties under construction, comprising 1,746 apartment homes, with an estimated cost to complete of $267.0 million.
Recent Transactions
In February 2024, Camden sold an operating property with 592 apartment homes in Atlanta, Georgia, for approximately $115.0 million, recognizing a gain of approximately $43.8 million.
Shareholder Returns
Camden declared cash distributions of $337.5 million to common shareholders during the nine months ended September 30, 2024, reflecting a distribution of $3.09 per common share.
How Camden Property Trust (CPT) Makes Money
Revenue Streams
Camden Property Trust primarily generates revenue through the following channels:
- Rental Income from multifamily properties
- Utility Rebilling and Ancillary Income
- Fee and Asset Management Income
- Other Non-Property Income
Rental Income
For the nine months ended September 30, 2024, Camden Property Trust reported total property revenues of approximately $1.157 billion, with rental income being the main contributor. The breakdown of rental income is as follows:
| Source | Revenue (in millions) |
|---|---|
| Same Store Communities | $1,098.4 |
| Non-Same Store Communities | $42.5 |
| Development and Lease-Up Communities | $4.7 |
| Dispositions/Other | $11.9 |
| Total Property Revenues | $1,157.5 |
Utility Rebilling and Ancillary Income
During the three months ended September 30, 2024, Camden experienced an increase in utility rebilling and ancillary income, contributing approximately $1.6 million to revenues. This reflects a focus on maximizing income from utility services provided to residents.
Fee and Asset Management Income
For the nine months ended September 30, 2024, Camden reported fee and asset management income of approximately $5.6 million, a significant increase from $2.4 million in the same period of 2023, driven by higher activity in third-party construction projects.
Non-Property Income
Camden Property Trust also generates non-property income, which for the nine months ended September 30, 2024, amounted to approximately $25.2 million, up from $8.3 million in the same period of 2023. The breakdown is as follows:
| Type of Non-Property Income | Three Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) |
|---|---|---|
| Fee and Asset Management | $1,707 | $5,597 |
| Interest and Other Income | $1,076 | $4,442 |
| Income on Deferred Compensation Plans | $8,248 | $15,140 |
| Total Non-Property Income | $11,031 | $25,179 |
Operating Expenses
Camden Property Trust's operating expenses for the nine months ended September 30, 2024, totaled approximately $633.2 million. Key components of these expenses included:
| Expense Type | Amount (in thousands) |
|---|---|
| Property Management | $29,057 |
| General and Administrative | $53,692 |
| Depreciation and Amortization | $436,540 |
| Total Operating Expenses | $633,220 |
Net Income
For the nine months ended September 30, 2024, Camden reported a net income of approximately $122.6 million, a decrease from $181.0 million for the same period in 2023. The decline was primarily due to a $41.0 million impairment associated with land development activities.
Cash Flow Analysis
Net cash from operating activities for the nine months ended September 30, 2024, was approximately $622.5 million, compared to $603.0 million in the same period of 2023. This increase was attributed to a higher prepayment of rental income and lower interest payments.
Capital Expenditures
Camden's capital expenditures for the nine months ended September 30, 2024, totaled approximately $306.6 million, including:
| Type of Expenditure | Amount (in millions) |
|---|---|
| New Development (including land) | $129.7 |
| Capital Expenditures | $82.0 |
| Reposition Expenditures | $70.1 |
| Direct Real Estate Taxes and Other Costs | $24.8 |
| Total | $306.6 |
Debt Management
As of September 30, 2024, Camden had a total debt of approximately $1.2 billion, with a significant portion related to unsecured revolving credit facilities and senior unsecured notes. The company continues to maintain a robust liquidity position to manage its financing activities effectively.
Market Outlook
Camden anticipates continued demand for multifamily housing, driven by job growth and favorable demographics, which should support revenue growth despite elevated levels of new multifamily supply in their operating markets.
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Article updated on 8 Nov 2024
Resources:
- Camden Property Trust (CPT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Camden Property Trust (CPT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Camden Property Trust (CPT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.