Back to top

Image: Bigstock

Camden's Q4 FFO Beats Estimates, Same-Property NOI Rises

Read MoreHide Full Article

Camden Property Trust (CPT - Free Report) reported fourth-quarter 2024 core funds from operations (FFO) per share of $1.73, beating the Zacks Consensus Estimate of $1.68. The figure remained unchanged year over year.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The quarterly results reflect higher same-property revenues and same-property net operating income (NOI). However, a lower effective blended lease rate undermined the results to an extent. CPT issued guidance for the first quarter and full-year 2025 core FFO per share.

Property revenues in the quarter came in at $386.3 million, missing the Zacks Consensus Estimate of $387 million. The figure decreased marginally on a year-over-year basis.

For full-year 2024, the core FFO per share came in at $6.85, up year over year by a margin. It also surpassed the Zacks Consensus Estimate by 2.2%. Property revenues for full-year 2024 came in at $1.54 billion, rising marginally year over year.

CPT’s Fourth Quarter in Detail

In the reported quarter, same-property revenues increased 0.8% year over year to $365.6 million. Same-property expenses rose 0.2% to $127.2 million. As a result, the same-property NOI climbed 1.2% to $238.4 million.

The same-property occupancy came in at 95.3%, increasing 40 basis points (bps) year over year and declining 20 bps sequentially.

However, same-property effective blended lease rates declined 1.1% year over year.

CPT’s Portfolio Activity

In the fourth quarter, Camden completed the construction of two communities, namely Camden Durham in Durham, NC, with 420 units at a total cost of $144.8 million and Camden Long Meadow Farms in Richmond, TX, with 188 units at a total cost of $71.9 million.

Camden has three communities under development with a total of 1,138 units at an estimated cost of $455 million.

Subsequent to year-end 2024, Camden purchased an apartment community, Camden Leander, in Austin, TX, with 352 units for $67.7 million.

CPT’s Balance Sheet Position

CPT had around $21 million cash and cash equivalents and nearly $1.0 billion of availability under its unsecured credit facility as of Dec. 31, 2024.

Additionally, its net debt-to-annualized adjusted EBITDAre for the October-December period was 3.8 times, improving from 3.9 times on a sequential basis.

2025 Guidance by CPT

For the first quarter of 2025, CPT expects core FFO per share in the range of $1.66-$1.70. The Zacks Consensus Estimate presently stands at $1.67, within the projected range.

For the full year, CPT expects core FFO per share between $6.60 and $6.90, with the midpoint at $6.75. The Zacks Consensus Estimate presently stands at $6.80, within the projected range.

Management expects same-property revenue growth of 0-2% and an expense increase of 2.25-3.75%. Same-property NOI is projected between negative 1.5% and positive 1.5%.

CPT’s Dividend

Concurrent with its fourth-quarter earnings release, Camden declared its first-quarter 2025 dividend of $1.05 per share. The same will be paid out on April 17 to shareholders on record as of March 31, 2025.

CPT’s Zacks Rank

Camden currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Camden Property Trust Price, Consensus and EPS Surprise

Camden Property Trust Price, Consensus and EPS Surprise

Camden Property Trust price-consensus-eps-surprise-chart | Camden Property Trust Quote

Performance of Other Residential REITs

UDR Inc. (UDR - Free Report) reported fourth-quarter 2024 FFO as adjusted per share of 63 cents, in line with the Zacks Consensus Estimate. The figure remained unchanged year over year.

Results reflected year-over-year growth in same-store revenues and same-store NOI. However, a rise in property operating and maintenance and interest expenses acted as dampeners.  UDR increased its annualized dividend payment and issued 2025 guidance.

AvalonBay Communities (AVB - Free Report) reported a fourth-quarter 2024 core FFO per share of $2.80, missing the Zacks Consensus Estimate of $2.83. However, the figure climbed 2.2% from the prior-year quarter’s tally.

The quarterly results reflected higher property management, other indirect operating expenses and interest expenses. However, a year-over-year increase in same-store residential rental revenues and same-store NOI supported AVB’s results to an extent.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in