Camden Property Trust · NYSE:CPT
Camden Property Trust — Investor Presentation (September 2024)
38 slides from Camden Property Trust's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024 Camden Woodmill Creek – The Woodlands, TX
Slide 2: Table of Contents
Camden North End – Phoenix, AZ Table of Contents Company Overview 4‐16 2024 Guidance & Recent Updates 17‐22 Multifamily Fundamentals 23‐27 Other Information 28‐31 Appendix 32‐37 FORWARD‐LOOKING STATEMENTS – In addition to historical information, this presentation contains forward‐looking statements
Slide 3: Recent Highlights
Recent Highlights Same Property Occupancy 1Q24 2Q24 3Q24* Occupancy 95.0% 95.3% 95.6% Same Property New Lease and Renewal Data – Date Signed(1) 1Q24 2Q24 3Q24* New Lease Rates (4.1)% (1.8)% (2.4)% Renewal Rates 3.4% 3.7% 3.7% Blended Rates (0.9)% 0.8% 0.4% Same Property New Lease and Renewal Data –
Slide 4: Company Overview
Camden Buckhead– Atlanta, GA Company Overview 4
Slide 5: Camden's Strategy
Camden’s Strategy • Focus on high‐growth markets (employment, population, migration) • Deliver consistent earnings and dividend growth • Operate a diverse portfolio of assets (geographical, A/B, urban/suburban) and maintain a high‐quality resident profile • Recycle capital and create value through a
Slide 6: Focus on High-Growth Markets
Focus on High‐Growth Markets Employment Growth Population Growth Total Migration Estimated Gain 2024‐2026 Estimated Gain 2024‐2026 Actual 2022‐2023 1 New York City 240,000 1 Houston 618,000 1 Dallas 149,000 2 Houston 145,000 2 Dallas 477,000 2 Phoenix 132,000 3 Dallas 141,000 3 Atlanta 357,000 3 Atl
Slide 7: Earnings & Dividend Growth
Earnings & Dividend Growth $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 (1) 2020 2021 2022 2023 2024F Dividends per share Core AFFO per share Core FFO per share (1) Based on midpoint of 2024 guidance provided on 8/1/24 and announced 2Q24 annualized dividend rate. 7
Slide 8: Diverse Portfolio
Asset Class* Diverse Portfolio (as of 2Q24) 62% NOI Contribution by Market (includes all operating communities) 38% Class A Class B Washington DC Metro Location* 13.2% Raleigh Denver Charlotte 4.9% Los Angeles/Orange County Nashville 5.6% 6.0% 4.4% 1.4% Phoenix 58% 8.7% San Diego/Inland Empire 4.4%
Slide 9: Camden Resident Profile
Camden Resident Profile (results for total portfolio) Age Range of Camden Residents • Median Age: 31 years 50% 40% • Average Annual Household 30% Income of ~ $121K for New 20% Move‐Ins in 2024 to date 10% 0% 0‐17 18‐24 25‐34 35‐44 45‐64 65+ • Average Rent‐to‐Income Ratio of 19% for New Move‐ Ins in
Slide 10: Capital Recycling
Capital Recycling ($ 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(1) $2.7B Total Acquisitions(2) Average Age of 4 Years(5) $3.8B Total $4.1B Total Dispositions Deve
Slide 11: Development Value Creation
Development Value Creation Development Communities Completed and Stabilized (2011‐2024) Communities 41 Apartment Homes 12,482 Total Cost $3.0B Market Value* $4.1B Value Creation $1.1B Camden NoDa • Year Built 2023 Camden RiNo • Year Built 2020 Camden Lake Eola • Year Built 2021 * Estimated market va
Slide 12: Development Communities
Development Communities CURRENT DEVELOPMENT PIPELINE ESTIMATED/ACTUAL Name Location Total Total Cost Construction Initial Construction Stabilized Homes ($ in millions) Start Occupancy Completion Operations % Leased(1) Camden Woodmill Creek The Woodlands, TX 189 $71 3Q22 4Q23 2Q24 2Q25 71% Camden Dur
Slide 13: Current Development Communities
Current Development Communities Camden Durham – Durham, NC Camden Village District – Raleigh, NC Camden South Charlotte – Charlotte, NC Camden Blakeney – Charlotte, NC 13
Slide 14: Current BTR Development Communities
Current BTR Development Communities Camden Woodmill Creek – The Woodlands, TX Camden Long Meadow Farms – Richmond, TX 14
Slide 15: Reposition/Redevelopment/Repurpose Programs
Reposition/Redevelopment/Repurpose Programs Reposition: Renovate well‐located 15‐ to 20‐year‐old assets by updating kitchen and bath areas, appliances, flooring, fixtures, lighting, etc. Over 44,000 apartment homes completed through 2Q24 with a total cost of $718 million. Redevelopment: Upgrade 10‐
Slide 16: Strong Capital Structure
Strong Capital Structure ($ in millions – as of 8/31/24) Total Market Cap = $17B • $1.2B available under $1.2B Unsecured Senior Unsecured Credit Ratings Term Loans Notes unsecured credit facility $40 $3,191 Moody’s • Unencumbered asset pool of approximately $17B Secured A3 Debt Stable • 90.7% unsecu
Slide 17: 2024 Guidance & Recent Updates
Camden Tuscany – San Diego, CA Camden Lincoln Station – Denver, CO 2024 Guidance & Recent Updates 17
Slide 18: 2024 Guidance
2024 Guidance (as of 8/1/24) EARNINGS LOW MIDPOINT HIGH EPS per share $1.83 $1.88 $1.93 FFO per share $6.67 $6.72 $6.77 Core FFO per share $6.74 $6.79 $6.84 SAME PROPERTY PERFORMANCE LOW MIDPOINT HIGH Revenue Growth 1.00% 1.50% 2.00% Expense Growth 2.35% 2.85% 3.35% NOI Growth (0.25)% 0.75% 1.75% RE
Slide 19: Same Property Occupancy by Market
Same Property Occupancy by Market (Results reflect 2024 same property pool of 55,866 units) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24* Atlanta 94.4% 94.2% 94.1% 92.9% 93.7% 94.1% 95.1% Austin 95.0% 94.7% 95.7% 94.4% 93.7% 94.1% 94.7% Charlotte 94.8% 95.4% 95.6% 94.7% 93.6% 94.8% 95.7% Dallas 95.0% 95.5% 95
Slide 20: New Leases & Renewals – Signed & Effective
New Leases & Renewals – Signed & Effective (Results reflect 2024 same property pool of 55,866 units) DATE SIGNED(1) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24* New Leases & Renewals – Date Signed 7.0% New Lease Rates 2.0% 2.4% 0.2% (4.1)% (4.1)% (1.8)% (2.4)% 3.0% (1.0%) Renewal Rates 7.0% 6.0% 5.0% 3.9% 3.
Slide 21: Effective Lease Rates by Market
Effective Lease Rates by Market (Results reflect 2024 same property pool of 55,866 units) 3Q24 Effective Lease Rates (1)(2) Market New Lease Renewal Blended Washington DC Denver San Diego / Inland Empire (2)% ‐ 5% 3% ‐ 6% 1% ‐ 5% Houston Raleigh Charlotte Southeast Florida(3) Orlando Dallas / Ft Wor
Slide 22: Bad Debt and High Balance Delinquencies
Bad Debt and High Balance Delinquencies • Net bad debt declined to approximately 0.8% in 2024 • Steady progress made in reducing high balance delinquencies Net Bad Debt – Same Property High Balance Delinquencies (as a % of rental revenues) (# of units delinquent ≥ 3 months at end of period) 1.6% 800
Slide 23: Multifamily Fundamentals
Camden Atlantic – Plantation, FL Multifamily Fundamentals 23
Slide 24: Multifamily Supply
Multifamily Supply • Starts began to fall in 2023 and are expected decline by more than 50% by 2025 • Completions are expected to peak in late 2024, then decline in 2025 and 2026 Multifamily Completions (Historical and Multifamily Starts (Historical and Projected) Projected) 700,000 700,000 600,000
Slide 25: Strong Demand for Multifamily Rental Housing
Strong Demand for Multifamily Rental Housing Favorable Demographic Trends – Aged 20 to 34 Nearly 70% of this age group choose to rent • Young adults currently 75 70 number more than 69 65 million and will remain a 60 growing source of demand 55 50 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 20
Slide 26: Higher Propensity to Rent
Higher Propensity to Rent • Many people still choose to Propensity to Rent Apartments Moveout Rates for Home Purchases Camden’s Portfolio rent rather than buy with by Age higher propensity to rent in 50% 30% CPT markets vs. U.S. average 40% 20% 30% • Homeownership rate overall 20% 10% remains near l
Slide 27: Young Adults Making Lifestyle Decisions
Young Adults Making Lifestyle Decisions Young Adult Lifestyle Choices • Young adults choosing to 38 36 marry and have children 34 32 later in life, delaying 30 Age 28 homeownership decisions 26 24 22 20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 28: Other Information
Camden Cypress Creek – Houston, TX Other Information 28
Slide 29: Workplace Excellence
Workplace Excellence Recognized by FORTUNE Experienced management Magazine as one of the team with sound business 100 Best Companies to plan and proven history of Work For® in America for performance 17 consecutive years, recently ranking #24 #1 GPTW – FORTUNE Best Workplaces in Real Estate 2023 #1
Slide 30: Sustainability
Sustainability 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. We strive to operate in an environmentally responsib
Slide 31: Technology
Technology Camden invests in innovation to increase revenues, reduce expenses, and enhance our residents’ living experience. Smart Centralization Bilt Access Mobile Peer Invest in Bulk Mainten‐ Enhance Space PropTech(1) Wi‐Fi ance ESG Optimize Adopt Control Increase Excel in Price New Tech Expenses
Slide 32: Appendix
Camden Pier District – Tampa, FL Appendix 32
Slide 33: 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 34: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations Reconciliation of FFO, Core FFO, and Core AFFO per share Three Months Ended June 30, Six Months Ended June 30, FFO/Core FFO/Core AFFO per share 2024 2023 2024 2023 Total Earnings Per Common Share ‐ Diluted $0.40 $0.84 $1.17 $1.22 Real estate
Slide 35: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations Expected FFO & Core FFO Expected FFO and Core FFO is calculated in a method consistent with historical FFO and Core FFO, and is considered appropriate supplemental measures of expected operating performance when compared to expected earnings
Slide 36: Non-GAAP Financial Measures Definitions & Reconciliations
Non‐GAAP Financial Measures Definitions & Reconciliations EBITDAre and Adjusted EBITDAre Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre are supplemental measures of our financial performance. EBITDAre is calculated in accordance wit
Slide 37: Other Definitions
Other Definitions Bad Debt: Represents bad debt expense and reserves as a percentage of rental revenues. Core FFO: Represents FFO as further adjusted for items not considered part of our core business operations, such as casualty‐related expenses, net of recoveries, severance, legal costs and settle
Slide 38: Camden
CAMDEN. ~ 38
Camden Property Trust — Investor Presentation (September 2024) on 6ix