In This Article:
Camden Property Trust CPT is slated to report fourth-quarter and full-year 2024 results on Feb. 6, after market close. The company’s quarterly results are likely to display a year-over-year decline in revenues and funds from operations (FFO) per share.
See the Zacks Earnings Calendar to stay ahead of market-making news.
In the last reported quarter, this residential real estate investment trust (REIT) reported an FFO per share of $1.71, beating the Zacks Consensus Estimate of $1.68. Results reflected higher same-property revenues and average rental rates. However, a rise in same-property expenses undermined the results.
In the preceding four quarters, CPT’s FFO per share outpaced the Zacks Consensus Estimate on all occasions, with the average beat being 1.34%. The graph below depicts this surprise history:
Camden Property Trust Price and EPS Surprise
Camden Property Trust price-eps-surprise | Camden Property Trust Quote
In this article, we will dive deep into the U.S. apartment market environment and the company's fundamentals and analyze the factors that may have contributed to its fourth-quarter 2024 performance.
US Apartment Market in Q4
Per RealPage data, U.S. apartment demand surged to its highest level in almost three years in the fourth quarter of 2024, comfortably surpassing the record-high new supply seen that year.
Between October and December 2024, the U.S. apartment market absorbed 230,819 market-rate units, while 155,408 new units were delivered during the same period. Annual supply hit 588,883 units, while demand led to 666,699 units.
As demand exceeded supply, U.S. apartment occupancy saw a notable annual increase, reaching 94.8% in December. The annual occupancy change was 0.7%. However, rent growth remained stagnant due to the pressure of historically high new supply levels. Rents rose 0.5% in 2024, and the monthly effective rent change was down 0.3%. The average effective rent was $1,823.
Factors at Play for Camden Property
Amid this surge in demand, Camden’s quarterly performance is likely to have benefited from its presence in high-growth markets with a superior product mix of A/B quality properties in urban and suburban markets. The markets are characterized by growing employment in high-wage sectors of the economy with in-migration trends.
However, the high supply of rental properties in some markets may have hurt the rent growth momentum, undermining the revenue and FFO performance to some extent for the fourth quarter.
Projections for CPT
For the fourth quarter, the Zacks Consensus Estimate for CPT’s revenues currently stands at $387 million, implying a decline of 0.2% from the year-ago reported number.