In This Article:
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Core Funds from Operations (FFO): $190.4 million or $1.73 per share for Q4 2024, $0.03 ahead of prior guidance.
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Same-Store Revenue Growth: 1.3% for 2024.
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Same-Store Expense Growth: 1.8% for 2024.
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Same-Store NOI Growth: 1.1% for 2024.
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Core FFO Guidance for 2025: $6.60 to $6.90 per share, midpoint of $6.75.
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2025 Revenue Growth Expectation: 1% for same-store properties.
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2025 Expense Growth Expectation: 3% for same-store properties.
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Debt to EBITDA Ratio: 3.8 times.
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Development and Acquisitions: $750 million anticipated for both acquisitions and dispositions in 2025.
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Net Debt: Less than $200 million outstanding on a $1.2 billion credit facility.
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Occupancy Rate: Expected to average 95.4% in 2025.
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Rental Income Growth: Budgeted at 1% for 2025.
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Interest Expense Increase: $0.10 per share increase anticipated for 2025.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Camden Property Trust (NYSE:CPT) anticipates a positive market backdrop in 2025, with new supply pressures expected to lessen, setting the stage for improved revenue and net operating income growth.
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The company exceeded its operating budgets in 2024 despite record supply, showcasing strong operational performance.
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Camden Property Trust (NYSE:CPT) plans to recycle capital by acquiring newer properties and disposing of older, more capital-intensive assets, aiming for long-term core FFO growth.
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The company reported core funds from operations for Q4 2024 of $1.73 per share, which was $0.03 ahead of the midpoint of prior guidance.
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Camden Property Trust (NYSE:CPT) maintains a strong balance sheet with net debt to EBITDA at 3.8 times, providing capacity for future opportunities.
Negative Points
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Camden Property Trust (NYSE:CPT) anticipates a decrease in core FFO per share for 2025, with a midpoint of $6.75, representing a $0.10 per share decrease from 2024.
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The company expects same-store revenue growth of only 1% for 2025, with some markets like Nashville and Austin facing continued challenges due to new supply.
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Camden Property Trust (NYSE:CPT) is experiencing slower leasing in its single-family rental communities, which could impact revenue growth.
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The company anticipates a 100 basis point negative FFO yield differential for matching acquisitions and dispositions in 2025.
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Camden Property Trust (NYSE:CPT) faces potential risks from economic downturns, which could impact overall performance despite a positive supply outlook.
Q & A Highlights
Q: Can you provide more color on your blend assumptions for new and renewal lease growth throughout the year? A: We anticipate a blend of 1% to 2% for the full year. New leases will be slightly negative, while renewals will likely be in the high 3% range. We expect positive new leases by the third quarter, continuing from that point on. (Alexander Jessett, CFO)