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, and robust household formation in key markets.

• 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 completed on a new Texas community; two new developments started in Charlotte, NC, with five properties under construction and $297.9M in remaining costs.

• Camden Property Trust owns, manages, develops, and acquires 177 multifamily properties with 59,996 apartment homes as of June 30, 2024.

Financial highlights

• Core FFO for Q2 2024 was $1.71 per share, $0.04 above prior guidance midpoint, with full-year core FFO midpoint raised by $0.05 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.

Outlook and guidance

• 2024 same-store NOI growth guidance midpoint increased to 0.75%, and expense growth guidance lowered to 2.85%.

• Q3 2024 core FFO per share expected between $1.66-$1.70; full-year core FFO guidance midpoint at $6.79.

• No further development starts anticipated in 2024; $55M of development spend remains for the year.

• Plans to continue selective acquisitions/dispositions and maintain strong liquidity.