Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (September 2022)
41 slides from Camden Property Trust's investor presentation, September 2022
Slide 1: Investor Presentation September 2022
Camden Music Row – Nashville, TN Investor Presentation September 2022
Slide 2: Table of Contents
Camden Hillcrest – San Diego, CA Table of Contents Company Overview 3-5 Recent Highlights & Guidance 6-11 Multifamily Fundamentals 12-16 Camden’s Portfolio 17-21 Real Estate Transactions 22-28 Capital Structure & Liquidity 29-30 Other Initiatives 31-36 Appendix 37-40 FORWARD-LOOKING STATEMENTS – In
Slide 3: Company Overview
Camden Old Town Scottsdale – Scottsdale, AZ Company Overview 3
Slide 4: About Camden
About Camden • Publicly traded since 1993 • Experienced management team with sound business • S&P 500 Company plan and proven history of • Total Market Cap of $18B performance • Recognized by FORTUNE • Consistent long-term focus Magazine as one of the 100 and commitment to high- Best Companies to Wo
Slide 5: Camden's Strategy
Camden’s Strategy • Focus on high-growth markets (employment, population, migration) • Operate a diverse portfolio of assets (geographical, A/B, urban/suburban) • Recycle capital through acquisitions and dispositions • Create value through development, repositioning and investments in technology • M
Slide 6: Recent Highlights & Guidance
The Camden – Hollywood, CA Recent Highlights & Guidance 6
Slide 7: Recent Highlights
Recent Highlights • Stabilized one development community for a total cost of $125.3 million • Completed construction on one development community for a total cost of $162.2 million • Acquired three undeveloped land parcels for a total cost of $40.5 million for future development projects • Sold one
Slide 8: Operating Statistics
Operating Statistics (Results for 2022 same property pool) Same Property Occupancy 2Q22 Jul 2022 Aug 2022 Jul 2021 Aug 2021 Occupancy 96.9% 96.7% 96.7% 97.0% 97.3% Same Property New Lease and Renewal Data – Date Signed(1) 2Q22 Jul 2022 Aug 2022 Jul 2021 Aug 2021 New Lease Rates 16.2% 13.3% 12.2% 18.
Slide 9: New Leases & Renewals – Signed & Effective
New Leases & Renewals – Signed & Effective (Results for 2022 and 2021 reflect current same property pool of 46,151 units; Results for 2020 reflect former same property pool of 45,200 units) DATE SIGNED(1) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22* New Leases & Renewals – Date Signed 24.
Slide 10: Same Property Occupancy by Market
Same Property Occupancy by Market (Results for 2022 and 2021 reflect current same property pool; Results for 2020 reflect former same property pool) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22* Atlanta 95.6% 95.6% 96.0% 96.2% 96.6% 97.4% 97.4% 96.8% 97.0% 97.0% 96.8% Austin 96.1% 94.9% 95
Slide 11: 2022 Guidance
2022 Guidance (as of 7/28/22) EARNINGS LOW MIDPOINT HIGH EPS per share $5.87 $5.97 $6.07 FFO per share $6.48 $6.58 $6.68 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 10.75% 11.25% 11.75% Expense Growth 4.50% 5.00% 5.50% NOI Growth 13.75% 14.75% 15.75% FUTURE 2022 TRANSACTIONS LOW MIDPO
Slide 12: Multifamily Fundamentals
Camden RiNo – Denver, CO Multifamily Fundamentals 12
Slide 13: Multifamily Supply
Multifamily Supply • Starts should remain elevated until 2023. • Completions expected to peak by 2024. Multifamily Supply (Historical and Projected) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1Q91 1Q04 1Q22 1Q92 1Q93 1Q94 1Q95 1Q96 1Q97 1Q98 1Q99 1Q00 1Q01 1Q02
Slide 14: Strong Demand for Multifamily Rental Housing
Strong Demand for Multifamily Rental Housing Favorable Demographic Trends – Aged 20 to 34 Over 60% of this age group choose to rent • Young adults currently 70 65 number almost 68 million 60 and will remain a steady source of demand in the 55 near term 50 1991 1993 1995 1997 1999 2001 2003 2005 2007
Slide 15: Young Adults Making Lifestyle Decisions Later
Young Adults Making Lifestyle Decisions Later Young Adult Lifestyle Choices Young Adult Households 36 70% 34 60% 32 50% 30 40% Age 28 26 30% 24 20% 22 10% 20 0% 1993 2002 1981 1984 1987 1990 1996 1999 2005 2008 2011 2014 2017 2020 1980 1990 2000 2010 2020 2021 Marriage First Child First Home Purchas
Slide 16: Higher Propensity to Rent
Higher Propensity to Rent Propensity to Rent Apartments by Age • Many people still choosing to rent rather than buy 50% 40% • Higher propensity to rent in 30% CPT markets vs. U.S. average 20% • Homeownership rate overall 10% remains near long-term 0% average of 65% <35 35-44 45-54 55-64 65+ • Homeow
Slide 17: Camden's Portfolio
Camden Washingtonian – Gaithersburg, MD Camden’s Portfolio 17
Slide 18: Portfolio Statistics
Asset Class* Portfolio Statistics (as of 2Q22) 37% NOI Contribution by Market (includes all operating communities) 63% Class A Class B Washington DC Metro Location* 12.6% Raleigh Denver Charlotte 4.9% Los Angeles/Orange County Nashville 5.6% 5.2% 6.5% 1.4% Phoenix 41% 8.1% San Diego/Inland Empire 3.
Slide 19: Camden Resident Profile
Camden Resident Profile (results for total portfolio) Age Range of Camden Residents • Median Age 50% 31 years 40% 30% • Average Annual 20% Household Income 10% 0% ~ $106K 0-17 18-24 25-34 35-44 45-64 65+ • Average Rent-to-Income Ratio Total Number of Occupants per Apartment Home 20.7% 50% 40% • Aver
Slide 20: Focus on High-Growth Markets
Focus on High-Growth Markets Population Growth Employment Growth Total Migration Estimated Gain 2022-2024 Estimated Gain 2022-2024 Actual 2020-2021 1 Houston 259,000 1 Dallas 238,000 1 Phoenix 164,000 2 Dallas 230,000 2 Phoenix 188,000 2 Dallas 114,000 3 Phoenix 220,000 3 Atlanta 187,000 3 Austin 10
Slide 21: Earnings & Dividend Growth
Earnings & Dividend Growth Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), and Dividends $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 (1) (2) (3) (4) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FFO per share AFFO per share Dividends per share (1) Excludes s
Slide 22: Real Estate Transactions
Camden Lake Eola – Orlando, FL Real Estate Transactions 22
Slide 23: Capital Recycling
Capital Recycling ($ in millions) Since 2011 we have significantly improved the quality of our portfolio with minimal cash flow dilution, using disposition proceeds to fund development and acquisitions. $3.4B Total Dispositions $4.3B Total Developments(1) $2.7B Total Acquisitions $475 $795 $635 $2,5
Slide 24: 2022 Acquisition of Fund Partnership Interests
2022 Acquisition of Fund Partnership Interests Gross Asset Valuation $2.1 billion Acquired Interest 68.7% Consideration Paid, Net of Assumed Secured Mortgage Debt $1.1 billion Communities Acquired 22 Average Age 12 years Apartment Homes 7,247 Average Monthly Rental Rate $1,509 per unit 24
Slide 25: Development Value Creation
Development Value Creation Stabilized Current Development Total (2011-2022) Communities Communities 36 7 43 Apartment Homes 10,931 2,340 13,271 Total Cost $2.4B $0.9B $3.3B Market Value* $4.3B $1.1B $5.4B Value Creation $1.9B $0.2B $2.1B Camden Montague – Tampa, FL • Year Built 2012 Camden Paces – A
Slide 26: Development Communities
Development Communities CURRENT DEVELOPMENT COMMUNITIES ESTIMATED Total Cost Construction Initial Construction Stabilized Name Location Total Homes % Leased(1) ($ in millions) Start Occupancy Completion Operations Camden Buckhead Atlanta, GA 366 $162 3Q18 1Q21 2Q22 4Q22 93% Camden Hillcrest San Dieg
Slide 27: Current Development Communities
Current Development Communities Camden Buckhead – Atlanta, GA Camden Hillcrest – San Diego, CA Camden Tempe II – Tempe, AZ Camden Atlantic – Plantation, FL Camden NoDa – Charlotte, NC Camden Village District – Raleigh, NC Camden Durham – Durham, NC 27
Slide 28: Repositioning Program
Repositioning Program (results for total portfolio includes former JVs) • Select well-located 15- to 20- before – kitchen after – kitchen year-old communities • Update kitchen and bath areas, appliances, flooring, fixtures, lighting, etc. • $554 million spent to date through 2Q22 • Over 38,000 apart
Slide 29: Capital Structure & Liquidity
Camden Downtown – Houston, TX Capital Structure & Liquidity 29
Slide 30: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 8/31/22) Total Market Cap = $18B • 3.7% weighted average Unsecured Senior Strong Credit Ratings Unsecured Unsecured interest rate on all debt Term Loan $40 Notes Revolving Credit Moody’s Facility $3,132 • 93.0% fixed rate debt $35 A3 • 86.2% unsecured
Slide 31: Other Initiatives
Camden Buckhead Square – Atlanta, GA Other Initiatives 31
Slide 32: Technology
Technology • Completed the installation of smart access gates and door locks to reduce the use of physical keys, improve customer experience, provide efficiencies for maintenance teams, and facilitate self-guided tours • Completed the rollout of mobile maintenance and improved self-service online fu
Slide 33: Corporate Social Responsibility
Corporate Social Responsibility Camden’s purpose is to improve the lives of our team members, customers and shareholders, one experience at a time. We are committed to creating long-term value and integrating sustainable practices into all aspects of our business. Camden’s most recent Corporate Soci
Slide 34: ESG Highlights – Environmental
ESG Highlights – Environmental • Formed energy taskforce to focus on reducing 21 Green Building energy usage (electric, gas, water, waste) Certifications • Completed historical utility data collection to facilitate future benchmarking, and established goals and targets Over 150 electric • Performed
Slide 35: ESG Highlights – Social
ESG Highlights – Social Total Employment Male 58% • Established DEI committee and appointed Ric Female 42% (as of 12/31/21) Campo as Chair of DEI Committee • Ric Campo signed the CEO Action for Diversity and Inclusion™ pledge • Donated to organizations furthering DEI efforts 6.2 YRS 11.7 YRS • Enhan
Slide 36: ESG Highlights – Governance
ESG Highlights – Governance • Expanded Proxy Access Board Diversity • Appointed Ric Campo as Chair of Sustainability Committee African American 10% • Added ESG oversight to duties and responsibilities of Camden’s Nominating and Corporate Governance Indian American 10% Committee Hispanic 30% • Comple
Slide 37: Appendix
Camden Central – St. Petersburg, FL Appendix 37
Slide 38: Non-GAAP Financial Measures Definitions & Reconciliations
Non-GAAP Financial Measures Definitions & Reconciliations This document contains certain non-GAAP financial measures management believes are useful in evaluating an equity REIT's performance. Camden's definitions and calculations of non-GAAP financial measures may differ from those used by other REI
Slide 39: Non-GAAP Financial Measures Definitions & Reconciliations
Non-GAAP Financial Measures Definitions & Reconciliations Expected FFO Expected FFO is calculated in a method consistent with historical FFO, and is considered an appropriate supplemental measure of expected operating performance when compared to expected earnings per common share (EPS). Guidance ex
Slide 40: Non-GAAP Financial Measures Definitions & Reconciliations
Non-GAAP Financial Measures Definitions & Reconciliations Adjusted EBITDA Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization, including net operating income from discontinued operations, excluding equity in (income) loss of joint ventures, (ga
Slide 41: Camden
CAMDEN © 41
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