Camden Property Trust (CPT) Bank of America 2024 Global Real Estate Conference summary

Company overview and strategy

• Operates over 58,000 apartment homes in 15 major U.S. markets, with a $17B market cap and 30+ years as a public company.

• Focuses on high-growth Sun Belt markets, with 75% of assets there and 60% in suburban submarkets.

• Strategy centers on capital recycling, geographic and asset diversity, and maintaining a strong balance sheet with low leverage.

• Targets consistent earnings and dividend growth, with minimal acquisition/disposition activity planned for 2024.

• Recently started two new suburban developments in Charlotte, totaling $317M, and expects more in 2025.

Market conditions and operational performance

• Markets like DC Metro, Denver, Southeast Florida, and Houston are strong, while Austin and Nashville are softer.

• Resident retention is high, turnover is low, and move-outs for home purchases are under 10%.

• Bad debt and delinquencies have improved significantly, with bad debt trending down in California and Atlanta.

• 2024 guidance: core FFO per share of $6.79, same property revenue growth of 1.5%, expense growth of 2.85%, and NOI growth of 0.75%.

• New supply is peaking now but expected to fall sharply in 2025-2026, tightening the multifamily environment.

Supply, demand, and competitive landscape

• Supply absorption has been strong; only about 20% of assets face direct competition from new supply.

• New lease rates for assets facing new supply are 200 bps lower than those not facing supply.

• Most new starts are affordable or mission-driven, not directly competitive with market-rate assets.

• Merchant builder starts are down 80%, with high financing costs limiting new market-rate supply.

• Suburban assets are outperforming, with 70% of 25-34 year-olds in these markets living in suburbs.