Camden Property Trust (CPT) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 performance exceeded expectations, with Core FFO per share at $1.71, driven by lower insurance and property tax expenses, strong demand in key markets, and robust household formation.

• Net income attributable to common shareholders was $42.9M for Q2 2024, down from $91.1M in Q2 2023, mainly due to lower gains on property sales.

• Construction started on two new Charlotte developments, with no further 2024 starts planned; five properties under construction with $297.9M in remaining costs.

• Camden completed Camden Woodmill Creek in Texas and sold one Atlanta property for $115M, recognizing a $43.8M gain.

• Issued $400M of 4.90% senior unsecured notes, repaid $300M term loan and $250M notes, and repurchased $50M in common shares YTD.

Financial highlights

• Core FFO for Q2 2024 was $1.71 per share, $0.04 above guidance midpoint, with full-year guidance midpoint raised to $6.79 per share.

• Q2 2024 property revenues were $387.2M, up 0.4% year-over-year; same property NOI grew 0.9% year-over-year.

• Net debt to EBITDA stands at 3.9x, with 85% of debt fixed rate and no outstanding balance on the $1.2B credit facility.

• Interest expense coverage ratio was 7.0 for Q2 2024; 89.9% of properties were unencumbered.

• Distributions declared per share were $1.03 in Q2 2024; annualized dividend rate is $4.12/share.

Outlook and guidance

• 2024 same-store NOI growth guidance midpoint increased to 0.75%; full-year Core FFO midpoint raised by $0.05 per share.

• Q3 2024 Core FFO per share expected between $1.66–$1.70; 2024 full-year Core FFO guidance is $6.74–$6.84 per share.

• 2024 same-store revenue growth guidance maintained at 1.5%; expense guidance lowered to 2.85% from 3.25%.

• No additional development starts anticipated in 2024; 2025 expected to be a more active year for new projects.

• Guidance assumes $250M acquisitions offset by $250M dispositions, $317M in development starts, and $55M remaining development spend.