Camden Property Trust (CPT) on Q2 2022 Results - Earnings Call Transcript
Kim Callahan: Good morning. And welcome to Camden Property Trust Second Quarter 2022 Earnings Conference Call. I am Kim Callahan, Senior Vice President of Investor Relations. Joining me today are Ric Campo, Camdenâs Chairman and Chief Executive Officer; Keith Oden, Executive Vice Chairman and President, and Alex Jessett, Chief Financial Officer. Todayâs event is being webcast through the Investor section of our website at camdenliving.com and a replay will be available this afternoon. We will have a slide presentation in conjunction with our prepared remarks and those slides will also be available on our website later today or by email upon request. All participants will be in listen-only mode during the presentation with an opportunity to ask questions afterward and please note this event is being recorded. Before we begin our prepared remarks, I would like to advise everyone that we will be making forward-looking statements based on our current expectations and beliefs. These statements are not guarantees of future performance and involve risk and uncertainties that could cause actual results to differ materially from expectations. Further information about these risks can be found in our filings with the SEC and we encourage you to review them. Any forward-looking statements made on todayâs call represent managementâs current opinions and the company assumes no obligation to update or supplement these statements because of subsequent events. As a reminder, Camdenâs complete second quarter 2022 earnings release is available in the Investors section of our website at camdenliving.com and it includes reconciliations to non-GAAP financial measures, which will be discussed on this call. We hope to complete our call within one hour and we ask that you limit your questions to two then rejoin the queue if you have additional items to discuss. If we are unable to speak with everyone in the queue today, we would be happy to respond to additional questions by phone or email after the call concludes. At this time, I will turn the call over to Ric Campo. Ric Campo: The theme for todayâs on-hold music was Together, which will resonate with team Camden. After two years of virtual meetings, this year Camden was able to be together for most of our important cultural events. In May, we held our Annual Leadership Conference, which brings together 400 plus Camden leaders for three days of learning, reconnecting and fun. A lot has changed in the world since May, which serves as a good reminder that real estate and financial markets will rise and fall, but companies with a great culture will thrive in all conditions. The following highlight reel from our leadership conference is an inside baseball view of a culture that has earned a place in Fortunes 100 Best Companies list for 15 consecutive years.
Camden Property Trust (NYSE:CPT) Shows Promising Growth and Analyst Optimism
- Camden Property Trust (NYSE:CPT) has seen an increase in its consensus price target, reflecting analyst optimism.
- The company reported a Core FFO of $1.72, surpassing expectations, and a revenue increase of 1.9% year-over-year.
- Despite macroeconomic uncertainties, Camden's strong balance sheet and profitability position it well for future growth.
Camden Property Trust (NYSE:CPT), a leading real estate investment trust (REIT) specializing in multifamily apartment communities, is expanding its portfolio with 7 new developments. With 167 properties and 56,850 apartment homes, Camden is recognized for its exceptional workplace culture, being named one of the 100 Best Companies to Work For® by FORTUNE magazine for 13 years.
The consensus price target for Camden has shown a positive trend, increasing from $128.62 last year to $137 last month. This reflects growing optimism among analysts, possibly due to Camden's expansion projects and strong workplace reputation. Despite this, Jefferies analyst Linda Tsai has set a lower price target of $117, indicating some caution.
Camden's second-quarter results are expected to show stable occupancy rates and revenue growth, although Funds From Operations (FFO) per share may decline slightly. The company reported Core FFO of $1.72, surpassing expectations by four cents, and revenue of $390.57 million, a 1.9% year-over-year increase. Camden declared a second-quarter dividend of $1.05 per share.
During REITWeek 2025, it was noted that Equity REITs, including Camden, are expected to see earnings growth in 2026-2027. Despite macroeconomic uncertainties, REITs are attractive for their resilient cash flows and potential for dividend growth. Camden's yield is approximately 3.6%, and it offers strong balance sheets and profitability.
Camden's Q1 2025 earnings call highlighted strong performance, with higher same-property revenues and occupancy growth. The company revised its 2025 outlook upward, with Core FFO exceeding guidance by $0.04 per share. This performance, along with favorable market conditions, supports the positive sentiment around Camden's stock.
