Camden Property Trust (CPT) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Strategic positioning and market outlook

• Portfolio spans 60,000 apartments in 15 major U.S. markets, with 75% in the Sun Belt and a focus on suburban, Class B properties.

• Markets benefit from strong job and population growth, with new supply peaking in 2023 and expected to decline, supporting revenue and NOI growth in 2026 and beyond.

• Balance sheet remains strong with low leverage and ample liquidity, enabling capital recycling and future growth opportunities.

• Corporate culture recognized for excellence, contributing to high resident retention and low turnover.

• 2025 is viewed as a transition year, with Q1 metrics meeting expectations and optimism for improved growth into 2026.

Capital allocation and development strategy

• $200 million in acquisitions completed in Austin and Nashville; older Houston property is being marketed for sale.

• Three development projects may start in 2026, totaling $175–$675 million.

• Capital recycling is prioritized, with front-loaded acquisitions for tax efficiency via reverse 1031 exchanges.

• Preference for buying newer assets and selling older ones to enhance growth profile, rather than timing stock buybacks.

• Development pipeline remains limited due to high construction costs, flat rents, and elevated interest rates; starts are down 60% year-over-year.

Market dynamics and supply-demand trends

• Sun Belt markets historically deliver above-inflation rent growth; recent supply boom is seen as unique and unlikely to repeat soon.

• New construction starts have dropped to 2014 levels, with most new supply in 2026–2027 expected to be subsidized, not market-rate.

• Rent growth of 5–7% is projected in several markets for 2027, with double-digit rent increases needed to spur new development if costs remain high.

• Demographic shifts, such as delayed homeownership and later family formation, support longer-term renting.